"The labor cost is almost 20 percent lower than in Huizhou, and here we are able to enjoy the relevant incentives for tax rebates, which make our products more competitive in international markets," said Jing Wentao, Director of the Executive Department of Yongchang Group (Beihai).

Resource complementarities

Covering almost one fifth of the country's total area, the members differ greatly in their resources and advantages. Guizhou, Guangxi and Fujian are rich in hydropower resources. The hydropower capacity of the Wujiang River in Guizhou alone is three times more than that of the Gezhouba Hydropower Station, one of the major parts of the Three Gorges Dam project.

From 2001 to 2005, Guizhou transmitted 34.1 billion kwh of electricity to Guangdong, and from 2002 to 2006, 3.67 billion kwh to Hunan, making power generation its biggest industry, according to Wang Xiaodong, Vice Governor of Guizhou Province.

Meanwhile, Guizhou, Yunnan, Guangxi, Hunan and Sichuan have large reserves and rich varieties of mineral resources. Jiangxi's reserves of 12 minerals, including silver, copper and uranium, are the most abundant in China.

The vast differences and strong complementarities in advantageous resources among the members have provided an excellent foundation for intra-regional financial and economic cooperation, Zeng said. For instance, Hainan, which has the largest gas field in China, provides half of its gas to Hong Kong. In turn, Hong Kong has become a powerful accelerator in promoting the Pan-Pearl River Delta by drawing on its free port system, abundant capital resources and strong international trade, he said. As of last year, Hong Kong had invested more than $349.5 billion on the mainland, making it China's biggest offshore investor, said Donald Tsang, Chief Executive of the Hong Kong Special Administrative Region. This has helped make the Pan-Pearl River Delta the gateway to international markets, he added.

Guangxi, with the Beibu Gulf on the south and bordering Viet Nam on the west, has been a major gateway for countries that are members of the Association of Southeast Asian Nations (ASEAN). The China-ASEAN Expo held every October in Nanning has become an important stage for the country to strengthen its economic links with the 10 ASEAN countries.

For landlocked provinces such as Hunan, Jiangxi, Sichuan and Guizhou, the Beibu Gulf Port will be an important platform for tapping international markets and expanding global trade. This June, Hunan decided to build a port-based industrial park and dock in Qinzhou of Guangxi. Compared with provinces in east China, Hunan is much less dependent on exports, but conversely offers room for expanding them. Building a port-based industrial park and dock will promote its opening and export-oriented economy, said Zhou Qiang, Governor of Hunan Province.

In the meantime, Yunnan, bordering Viet Nam, Laos and Myanmar, is the only province in China that provides a land link between Southeast Asia and South Asia.

"Yunnan is striving to provide a new platform for the Pan-Pearl River Delta to expand in international markets, especially the South Asian market," said Qin Guangrong, Governor of Yunnan Province.

Unified efforts

Amid the financial crisis, the Pan-Pearl River Delta members have vowed to work together and build up what they refer to as the "nine-plus-two" region (eight provinces and Guangxi Zhuang Autonomous Region on the mainland, and two special administrative regions). They should enhance their infrastructure construction and build a comprehensive transportation network to improve regional competitiveness, said Zeng.

Generally speaking, the Pan-Pearl River Delta still suffers from limited railway transport capacity, a small-scale rail network and an irregular line structure, Wang Zhiguo, Vice Minister of Railways, said at the forum. The government plans to enhance its investment in railway construction in the Pan-Pearl River Delta, he added. As of 2012, the rail lines in the region will reach 30,000 km. By 2020, the length of the rail lines will total 44,000 km, Wang said.

With a total population of 457 million, the Pan-Pearl River Delta is also the biggest market in China. The 11 members have made efforts to forge a unified market in the region with their respective quality supervision administrations by setting up an information notification system and provincial-level mutual recognition system of famous brand products. Such a unified market will permit the free flow of major production factors, including labor. Cross-provincial migrant workers, for example, might be able to transfer their pension payments from one province in the region to another in a few years, according to the Labor Service Cooperation Conference, one of the sessions of the Fourth Pan-Pearl River Delta Region Cooperation Forum.

Six cities in Guangdong and Guangxi, including Guangzhou, Foshan, Zhaoqing, Guilin, Hezhou and Wuzhou, have created a unified tourist zone since 2004. It allows guides from one province to lead tours in another and exempts buses traveling between the cities from road tolls. As one of the beneficiaries of these efforts, Hezhou saw its tourist revenue in the first four months of the year hit 897.8 million yuan ($132 million), an annual increase of 46.08 percent.