The Guangdong cities of Zhuhai and Shenzhen signed strategic cooperation agreements with yacht maker Sea Expandary on February 24, as Liu Qiangdong, founder of Chinese e-commerce giant JD, announced a five billion yuan (USD 700 million) personal investment marking his entry into the maritime industry.
While Liu's "childhood dream of being a captain" has captured headlines, industry insiders are more focused on his strategic decision to headquarter the venture in Guangdong Province, the heart of China's maritime innovation.
The "dual-city" strategy—Shenzhen and Zhuhai
Sea Expandary's footprint is a masterclass in leveraging regional strengths. The brand has established its R&D and operational headquarters in Shenzhen, tapping into the city's unparalleled talent pool in software, AI, and smart hardware. Meanwhile, manufacturing will be centered in Zhuhai, a city that already boasts one of China's most mature yacht-building clusters.
"As far as I know, Guangdong was the first in China to propose developing the yacht industry as early as 20 years ago," Liu stated during a recent briefing. The province offers a supply chain unmatched by any other region. By combining Shenzhen's "tech brain" with Zhuhai's "industrial muscle," Liu aims to bridge the gap between traditional luxury and modern smart manufacturing.
Guangdong's marine economy policies also played a pivotal role. With the provincial government pushing for a multi-trillion yuan maritime sector by 2030, Liu's investment aligns perfectly with local policy incentives and infrastructure development.
A "price revolution" driven by Guangdong's supply chain
One of the most striking elements of Liu's plan is the "100,000 yuan yacht" (USD 14,000) initiative. To achieve car-like pricing for a traditionally luxury product, Liu is banking on Guangdong's world-class manufacturing efficiency. "We want to do for yachts what the EV industry did for cars — bringing mass-market accessibility through localized, high-tech production," he said.
The focus will be on new energy yachts. By utilizing the Pearl River Delta's dominant electric battery and propulsion supply chains (the same networks supporting major EV manufacturers), Sea Expandary hopes to produce vessels that are not only more affordable, but also quieter, smoother, and more environmentally friendly.
According to Liu, Sea Expandary has secured orders for five large yachts, with each yacht costing approximately 60 million euros.
Author: Dong Han
Photo: Shenzhen Press Group
