Model Cities




Shenzhen (IPA: [ʂə́ntʂə̂n]) is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. Owing to China's economic liberalization, the area became China's first—and arguably one of the most successful—Special Economic Zones. It currently also holds sub-provincial administrative status, with powers slightly less than a province.

Shenzhen's novel and modern cityscape is the result of the vibrant economy made possible by liberal economic policies and rapid foreign investment since the institution of the policy of "reform and opening" establishment of the Special Economic Zone in the late 1970s. Before this, Shenzhen was a small village. Since the late seventies, both Chinese and foreign nationals have invested enormous sums in the economy of Shenzhen. More than US$30 billion in foreign investment has gone into both fully foreign owned and joint ventures, initially mainly in manufacturing but recently increasingly in service industries. Shenzhen is now reputedly one of the fastest growing cities in the world.[2] Being southern mainland China's major financial centre, Shenzhen is home to the Shenzhen Stock Exchange as well as the headquarters of numerous high-tech companies. Shenzhen is also the third busiest container port in China, ranking only after Shanghai and Hong Kong.

Located in the centre of the SEZ and adjacent to Hong Kong, Luohu is the financial and trading centre. It covers an area of 78.89 km². Futian, where the Municipal Government is situated, is at the heart of the SEZ and covers an area of 78.04 km². Covering an area of 164.29 km², Nanshan is the centre for high-tech industries and it is situated in the west of the SEZ. Outside the SEZ, Bao'an (712.92 km²) and Longgang (844.07 km²) are located to the north-west and north-east of Shenzhen respectively. Yantian (75.68 km²) is known for logistics. Yantian Port is the second largest deepwater container terminal in China and 4th largest in the world.

Economic Background:

In 2001, the working population reached 3.3 million. Though the secondary sector of industry had the largest share (1.85 million in 2001, increased by 5.5%), the tertiary sector of industry is growing fast (1.44 million in 2001, increased by 11.6%). Shenzhen's GDP totaled CNY 820.1 billion in 2009, up by 10.7 percent over the previous year, with a GDP per capita of US$13,581 as of 2009. Its economy grew by 16.3 percent yearly from 2001 to 2005 on average. The proportion of the three industries to the aggregate of GDP was 0.1:46.7:53.2 in 2009. The proportion of the primary industry to GDP was down by 13.4%, and the tertiary industry was up by 12.5%.[10] Shenzhen is in the top ranks among mainland Chinese cities in terms of comprehensive economic power. It ranked fourth in GDP among mainland Chinese cities in 2001, while it ranked the top in GDP per capita during the same period. Its import and export volumes have been first for the last nine consecutive years. It is the second in terms of industrial output. For five consecutive years, its internal revenue within local budget ranks third. It also ranks third in the use of foreign capital.[11]

Shenzhen is a major manufacturing centre in China. In the 1990s, Shenzhen was described as constructing "one highrise a day and one boulevard every three days". The Shenzhen skyline has 13 buildings at over 200 metres tall, including the Shun Hing Square (the 8th tallest building in the world).[12]

Shenzhen is home to some of China's most successful quality brand high-tech companies, such as BYD, Dingoo, G'Five, Hasee, Huawei, JXD, Konka, Netac, Skyworth, Tencent and ZTE. BYD, Hasee and Huawei are headquartered in the Longgang District.[13] Baidu, China's biggest and largest search engine plans to build its international headquarters in Shenzhen. A number of foreign IT companies also have facilities in the city. Taiwan's largest company Hon Hai Group has a manufacturing plant based in Shenzhen. Many foreign high-tech companies have their operations in the Science and Technology park in Nanshan District or outside the core districts where labor and land are much cheaper. CSG Holding is the largest architectural glass manufacturer in China. Vanke is the largest residential real estate developer in China. In the financial sector, Shenzhen Development Bank, China Merchants Bank and Shenzhen City Commercial Bank are some of the largest banks in China, with headquarters in Shenzhen. Ping An Insurance, Ikea and Wal-Mart are also based in the city.

Shenzhen Convention & Exhibition Center is a super large public construction with multi-functions of hosting business activities, celebrations, conferences, conventions, entertainment events, exhibitions, restaurants and all kinds of shows.

In 2009, the GDP reached a record high of 820.1 billion yuan, an increase of 10.7% over 2008. Shenzhen's economic output is ranked fourth among the 659 Chinese cities (behind Beijing, Shanghai and Guangzhou), and it is comparable to that of a medium sized province in China. In 2009, Shenzhen's GDP per capita was 92,771 yuan (US$13,581), making it one of the richest of all Chinese cities.

On 1 July 2010 the Shenzhen special economic zone was expanded from 396 square kilometres (153 sq mi) to 1,953 square kilometres (754 sq mi) and border controls with the rest of China relaxed.

Shenzhen Service Outsourcing Industry Development


Software outsourcing is the underpinning of Shenzhen's service outsourcing industry. "The Development Plan of Shenzhen's Software Industry in the Eleventh Five-Year Plan Period" indicates that Shenzhen is determined to be an important software base city in China as well as an internationalized software export base.

Shenzhen will reach the following goals in 2010:

First: the annual value of software production will reach 180 billion Yuan, keeping a growth rate of 27% on a yearly basis.

Second: software annual export will reach US$6 billion, keeping an annual growth rate of 30%.

Third: software staff will reach 300,000.

Fourth: the output value of software will reach 50 billion Yuan.

Shenzhen is accelerating the pace of building up a service base for financial industry. In the next five years, Shenzhen will further display its advantage in location and attract Hong Kong's financial institutions to establish regional headquarters, supporting centers, R&D centers, customer centers and data backup centers there.

Political Support:

Shenzhen Government has issued several preferential policies, such as "the Notice on Accelerating the Development of Shenzhen's Service Outsourcing Industry", The No. 1 Document in 2004, "the Decision on the Optimization of Regional Innovation System for A Fast and Sustainable Development of High and New Technology Industry", "Several Regulations on Providing Further Support for the Development of New and High Technology Industry", "Regulations on the Cultivation of Talents in High and New Technology Industry and on the Introduction of Talents" and "Measures on the Implementation of 'Providing Further Support to the Development of High and New Technology'".

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