China Releases New Master Plan for Shenzhen as a Model City
September 05, 2019 | BY
Marilyn RomeroBeijing has announced its plan for wide-ranging legal, financial, and social reforms to be implemented in Shenzhen to make it an example for other Chinese cities
Shenzhen China
Shenzhen is now to become a "model of high-quality development," according to a recent policy announcement by the Chinese government, and will take on a key role in science and technology innovation in the Guangdong-Hong Kong-Macau Greater Bay Area. The unexpected announcement came as Hong Kong's leaders continue to struggle with containing the huge protests that have been sweeping the city in recent weeks, and are threatening its status as a global financial hub.
Shenzhen is already a major city in south China's Guangdong province, with a population of about 13 million. Last year, its gross domestic product hit Rmb2.42 trillion or $368 billion at that time; and up 7.6% year-on-year. For the first time, the city's GDP exceeded that of Hong Kong which grew only by 3% to $363 billion, in comparison.
The new plan is to make Shenzhen highly competitive globally in terms of comprehensive economic abilities by 2035; and to become a global "benchmark" for competitiveness, innovation and influence by the middle of the century. The city will be granted special leeway to carry out reform and opening-up policies "from a higher starting point, higher levels and with higher goals", according to state-run newspaper Global Times.
International companies will be encouraged to set up branches or headquarters in the city, and the city authorities will be allowed to "make flexible changes to laws, regulations and local ordinances according to authorization and based on Shenzhen's need for reform and innovation," according to state media. Significantly, political change will also be allowed, but with the guidance of the ruling Communist Party. According to a CCTV report, the plan would "expand people's orderly political participation under the guidance of the party" while improving the work of the National People's Congress.
Hongkongers who live or work in Shenzhen will also be granted residential status. New cultural activities will be launched in Shenzhen in coordination with Hong Kong and Macau, "enriching compatriots in Hong Kong and Macau's sense of belonging and cohesion".
The timing of the announcement has inevitably been seen by some as a wake-up call to Hong Kong from Beijing, intended to send a clear message to the authorities that the city could fall behind its neighbor if the current unrest continues.
Tian Feilong, a professor at Beihang University, told the Global Times that Hong Kong is at risk of falling behind. "If Hong Kong is still not ready to embrace opportunities to join the country's development… the city's development would be very limited in the future while Shenzhen is running at a much faster speed."
However, Cheng Dawei, a professor of economics at the Renmin University of China in Beijing, believes that the development plan is not aimed at pushing Hong Kong aside. If anything, Cheng says it will help Hong Kong because it will bring many new opportunities to its firms and residents. "The door is open for Hong Kong, but it will be up to Hong Kong to seize the opportunity," says Cheng.
Hong Kong's South China Morning Post also points out that city is not being targeted in some punitive way as a result of the recent unrest; in fact, the plan is very much in keeping with the Chinese government's Greater Bay Area blueprint, released in February, and well before the current spate of unrest in Hong Kong. This aims at transforming the Pearl Delta area into a combined economic powerhouse, with Hong Kong, Macau, Shenzhen, and Guangzhou identified as the four 'pillars' of the development. The plans announced for Shenzhen are very much aligned with that.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now