Shenzhen is located on the east bank of the Pearl River Estuary, with the river providing a natural boundary with Hong Kong. The city covers an area of 1,992 sq. km and, as of the end of 2017, its permanent population stood at 12.53 million. In 1980, Shenzhen was designated as China’s first Special Economic Zone, serving as a pioneer and trial zone for the country’s subsequent reform, opening up and contemporary re-development.
Major Development Areas
National level: Qinghai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Shenzhen High-Tech Industrial Development Zone, Shenzhen Bonded Zone, Yantian Port Bonded Logistics Park, Shenzhen Export Processing Zone, and Shenzhen Qianhaiwan Free Trade Port Area
Positioning
The four pillar industries of Shenzhen are advanced technology, modern logistics, financial services and cultural industry. Shenzhen focuses on the development of seven emerging industries of strategic importance, namely biotechnology, Internet, new energy, new materials, cultural and creative industries, new generation information technology, as well as energy conservation and environmental protection, plus future industries on life and health, marine, aerospace and aviation, robots, wearable devices, and smart equipment.
Core Competencies
Indigenous innovation” has long been seen as the cornerstone of Shenzhen’s development. In 2016, its overall R&D expenditure amounted to 4.1% of its GDP, a figure significantly higher than the national average of 2.1%. In terms of total PCT international patent filings and invention patent ownership per 10,000 people, it ranks first among all of China’s medium to large-sized cities. It is also seen as a global pioneer in several high-tech sectors, including 4G technology, DNA sequencing, metamaterials and 3D displays.
In 2016, 3,791 of Shenzhen’s businesses were designated as national high-tech enterprises, taking the city’s overall total to 8,037. Among these newly designated enterprises, 54% were engaged in the development of electronic information systems, 18% had a focus on advanced manufacturing and automation, while the remaining 28% were spread across six other technological sectors – biotechnology and new pharmaceuticals, new energy and energy conservation, resources and the environment, aviation and aerospace, new materials and high-tech services.
Shenzhen’s “maker” population has also enjoyed continuous growth over recent years, with thousands of such businesses now active in the city, including Chaihuo Maker Space, Makeblock and Seeed Studio. In addition, a number of globally-renowned high-tech enterprises have established R&D centres or regional headquarters in Shenzhen, including ZTE, Huawei Technologies, Tencent and Apple Inc.
In April 2015, the Qianhai-Shekou Area of China (Guangdong) Pilot Free Trade Zone officially began operating in Shenzhen, with one of its key roles seen as providing a platform for the trial opening up of China’s financial sector to the outside world. This is in line with the city’s own 13th Five-year Plan (2016-2020), which sees it developing into an international financial innovation centre, as well as acting as China’s principal centre for the trialling of financial innovations.
With regard to the wider development of the Guangdong-Hong Kong-Macau Bay Area, there is an ongoing commitment to developing the Shenzhen-Hong Kong Innovation Circle. This would see Shenzhen and Hong Kong jointly establishing a technology transfer centre, an international technology trading platform, a venture capital funding services platform and a technology service centre. In addition to this, Shenzhen is also looking to strengthen the service sectors of its external traffic and transport facilities, accelerate the establishment of a global shipping network, upgrade its airport into an international hub and expedite the construction of its external railway network.