Ping An Finance Center，the tallest building in Shenzhen．（VCG）

Shenzhen has long been a staple of most discussions of China's reform and opening-up．Across a short 40 years，Shenzhen emerged from a small fishing village hidden in a southern corner of China to an international metropolis shining at the core of the Guangdong-Hong Kong-Macao Greater Bay Area.

Forty years ago，the Chinese government seized the innovation of establishing the Shenzhen Special Economic Zone．Over the past four decades，Shenzhen has spearheaded China's reform and opening-up and traveled a development path sated with reforms and innovations，driving China's wider urban modernization and setting the standard for urban renewal.

How did Shenzhen create such an impressive economic miracle worthy of global admiration？As the special economic zone celebrated its 40th birthday，China Report ASEAN journalists conducted field interviews in Shenzhen to dig for the secrets behind its success.

HOW SHENZHEN CAME TO BE

Shenzhen is consistently exploring the possibilities of China's reform and development

By Xu Hao

On August 24，2020，Shenzhen Stock Exchange holds a listing ceremony for the first round of enterprises under the growth enterprise market reform and pilot registration system．（MAO SIQIAN）

It is hard to define Shenzhen．The city is a book that never ends.

“Forty years of tireless efforts have been rewarded with fruitful achievements，”declared Chinese President Xi Jinping．“It seems as if the sounds of the construction sites in Shekou are still reverberating through the air．Today's vibrant Shenzhen Special Economic Zone（SEZ）shows the world the tremendous power of China's reform and opening-up as well as the bright prospects of socialism with Chinese characteristics.”In a speech at a celebration of the 40th anniversary of establishment of the Shenzhen SEZ，President Xi，also general secretary of the Communist Party of China（CPC）Central Committee，reviewed the leapfrog development of the SEZ and its precious experience accumulated across four decades of reform，opening-up，and innovation.

What made Shenzhen what it is today？

A Tale of Two Cities

Still popular today，the song “Story of Spring”describes how Deng Xiaoping，chief architect of China's reform and opening-up，decided to build the Shenzhen SEZ on the shore of the South China Sea in the spring of 1979 and how the SEZ emerged from almost nothing to achieve miraculous development．Atop Lotus Hill in Shenzhen stands a bronze statue of Deng．Posed as if steadily moving forward，the statue has inspired millions.

“A coastal city in southern China，Shenzhen is adjacent to Hong Kong.”This is how the official website of the municipal government of Shenzhen describes the city's geographical location．In fact，Shenzhen and Hong Kong have inseparable bonds．On March 5，1979，the State Council of China ratified renaming Bao’an County in Guangdong Province as Shenzhen City，a name inspired by Shenzhen Town near Hong Kong．Since the day it was born，Shenzhen City has looked to Hong Kong as its benchmark.

In April 1979，the CPC Guangdong Provincial Committee suggested the central government give preferential policies to Shenzhen，Zhuhai，and Shantou to develop export-oriented industrial parks because they are close to Hong Kong and are the hometowns of numerous Chinese people living abroad．The suggestion won strong support from Deng，who suggested those places could be built into special zones． On August 26，1980，the 15th meeting of the Fifth Standing Committee of the National People's Congress（NPC），China's top legislature，approved a proposal to set up SEZs and passed Provisional Regulations on Special Economic Zones in Guangdong Province，marking the birth of SEZs in China.

Back then，most of Shenzhen remained empty beaches and barren hills，a striking contrast to Hong Kong on the other side of the Shenzhen River and its numerous high-rises and the dazzling night view of Victoria Harbour．Known as the “Pearl of the East，”Hong Kong was one of the world's three major financial centers and undergoing an industrial transformation at the time．Some Hong Kong businesspeople crossed the Luohu Bridge to build manufacturing plants in Shenzhen．Because of its location close to Hong Kong and relatively affordable real estate and labor costs，Shenzhen became a hub of manufacturing enterprises engaged in “assembling with supplied parts，processing with supplied materials and samples，and compensation trade”during the 1980s.

Shenzhen's successful development couldn’t have been achieved without Hong Kong.

After returning to the motherland in 1997，Hong Kong embarked on a path of shared development with the Chinese mainland．Even after the 1998 Asian financial crisis，Shenzhen still maintained strong economic development momentum，and Hong Kong began to actively seek cooperation with Shenzhen．Contrasting former illegal immigration from the mainland to Hong Kong，more and more Hong Kong residents are now choosing to start businesses and settle in Shenzhen.

After years of complementary development，Shenzhen emerged as a tech hub and startup destination，while Hong Kong completed a transition into a hub for high-end services as an international financial，trade，and logistics center．Today，Shenzhen is a hotbed for Chinese economic development，technological innovation，commerce，and logistics as well as a regional financial center with constantly expanding international reputation and influence.

Stories about the two central cities in the Guangdong-Hong Kong-Macao Greater Bay Area，Shenzhen and Hong Kong，will surely continue.

Continuous Reform

In December 2012，Xi Jinping chose Guangdong as the first place outside Beijing to inspect after the 18th CPC National Congress．Shenzhen was the first stop of his inspection tour of Guangdong．He climbed Lotus Hill to leave a flower basket at the statue of Deng Xiaoping and plant a Ficus altissima tree nearby.

In October 2020，Xi returned to Lotus Hill in Shenzhen to leave a flower basket and bow at Deng's statue to express his respect for the late leader．The tree Xi planted eight years earlier had become sturdy and vigorous，with wide-spreading branches and luxurious foliage.

Deng was the chief architect of China's reform and opening-up and a key driver of the introduction of SEZs．During a 1984 visit to Shenzhen，Deng wrote: “The development experience of Shenzhen indicates that the policy to establish special economic zones was right.”In the spring of 1992，Deng visited Shenzhen again and delivered a series of important speeches．“We should dare to experiment and blaze new paths，”he said．“That is the important lesson to be learned from Shenzhen．Without the pioneering spirit，we would be afraid to take risks．Without energy and drive，we cannot break new ground，blaze trails，or accomplish anything new…When the people realize that socialism is good and that reform and the opening-up policy is good as well，our cause will flourish forever.”

The UK-based The Economist magazine once marveled at the “miracle of Shenzhen，”calling it the greatest success story of the more than 4，000 special economic zones around the world.

Reform is the calling card of Shenzhen．With pioneering spirit and ambition，it has broken through barriers of outdated ideas and institutions，creating the world-shaking “miracle of Shenzhen.”

Over the past four decades，Shenzhen has built a reputation for pioneering new ideas and new approaches and working hard．It was the first city in China to launch market-oriented economic reform，break away from outdated employment and distribution systems，abolish food ration coupons，organize land auctions，build export-oriented industrial parks and high-tech parks，set up a securities market，and issue governmental regulations to encourage scientific and technological workers to establish private tech startups．Shenzhen has led the country through more than 1，000 reforms.

Shenzhen has not slowed down its pace of reform and opening-up．It has endeavored to push reform to a broader and deeper level，making remarkable achievements in many major reforms such as the business environment reform，institutional reform of science and technology，second-board market reform，IPO registration pilot reform，and trial integrated reform of regional state capital and state-owned enterprises.

By fully leveraging international and domestic markets and resources，Shenzhen has spared no effort to explore overseas resources，accelerate financing through lPOs in overseas stock markets，and promote overseas research and development．It has also strengthened efforts to align with international investment and trade rules．So far，it has capitalized on foreign investment totaling US$117.76 billion and attracted nearly 300 of the Global Top 500 to set up operations in the city．In addition，its overseas investments reached US$145.08 billion，tops among Chinese cities.

After serving as a window for China's reform and opening-up，Shenzhen has become the country's pioneer in embracing and integrating with the outside world and staying abreast of international norms．Alongside the implementation of such national strategies as the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area，Shenzhen created several key opening-up platforms including the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and the Qianhai and Shekou Area of China（Guangdong）Pilot Free Trade Zone．It seeks comprehensive opening-up with global vision at a broader and deeper level.

Endless Innovation

When people discuss Shenzhen's economic development today，they don’t tend to mention processing and compensation trades，OEMs or copycatting．On 23.8 square kilometers of land in the Yuehai Sub-district of Nanshan District in Shenzhen are 212 industrial parks housing more than 1，000 high-tech companies including world-renowned Huawei，ZTE，Tencent，and DJI．The industrial parks have incubated 94 listed companies and nine unicorn startups and contributed more than 300 billion yuan（US$45.87 billion）to Shenzhen's GDP.

“We have always strived to be the first to innovate，insisted on laying a solid foundation for long-term development，and endeavored to promote innovation especially technological innovation，with focus on key R&D projects such as scientific instruments，industrial machine tools，computer chips，and key parts and components，”said Wang Weizhong，secretary of the CPC Shenzhen Municipal Committee.

Innovation is in Shenzhen's genes．In 2019，the city invested more than 100 billion yuan（US$15.29 billion）in research and development，about 4 percent of its GDP．The ratio was top in China and close to global leaders Israel and South Korea．It filed 18，081 PCT patent applications，more than any other city in China for 16 consecutive years，and the number even exceeded that of countries like the UK，South Korea，and Singapore．Added value of new industries accounts for more than 40 percent of Shenzhen's GDP，four times higher than the national average.

Innovation has driven Shenzhen to concentrate on development of high-tech industries，emerging strategic industries，and futuristic industries．Its Litchi Festival was replaced by the China Hi-Tech Fair．From export-oriented manufacturing to intelligent manufacturing，Shenzhen has achieved several rounds of industrial transformation．Many innovative enterprises have sprouted，matured，and flourished in Shenzhen．The city has become known as China's Silicon Valley and a “paradise for makers.”

In 2000，Shenzhen became the first Chinese city to transform from processing trade to high-tech development．In 2008，it became first in China to develop emerging strategic industries such as biotechnology，new energy，and the internet．In 2009，it formulated a plan to develop emerging strategic industries such as new-generation storage and processing technology and new materials．In 2013，it led the incubation of futuristic industries such as healthcare and wearable devices．Shenzhen has never abandoned its spirit of innovation.

The economic miracle alone did not make Shenzhen a successful city．If so，people would have come here for fortune and then left with the money they earned．However，due to the pulse of Shenzhen，people chose to stay and develop alongside the city.

Innovation is the secret of Shenzhen's consistent development over four decades.

Shared Development

Since its establishment，the Shenzhen SEZ has seen such rapid economic development that the phrase “Shenzhen Speed”was coined．The fruits of Shenzhen's development are being shared by all its citizens.

It took 30 years for Shenzhen's GDP to grow from 196 million yuan（about US$30 million）in 1979 to more than 1 trillion yuan（US$152.9 billion）in 2011．It took only six years for the figure to surpass 2 trillion yuan（US$305.8 billion）in 2017．In 2019，its GDP reached 2.69 trillion yuan（US$411.3 billion），increasing 13，000 times compared to that in 1979．The same year，per capita GDP in Shenzhen hit US$30，000，ranking first in China．Moreover，its output per capita unit of land and registered business entities（nearly 3.2 million in total）also ranked first in the country.

Shenzhen also takes pride in its service-oriented government．“Quick approval，”“zero costs”and “online business registration”have become keywords to describe the city's business environment．In February 2018，Shenzhen launched a 20-point reform to improve its business environment，with developed countries and regions like Singapore and Hong Kong as the benchmark and the World Bank's “ease of doing business index”as reference．It has introduced 126 measures to create a more favorable business environment through robust，pragmatic reforms.

Over the past 40 years，Shenzhen's permanent population has increased from about 300，000 to more than 13 million．However，the average age of its permanent residents is only 33 years old，and the average age of startup owners is 36，making Shenzhen the “youngest first-tier city”in China for many years．Shenzhen has no lines between natives and those born outside the city．The “city of immigrants”has lured young talent from around the world，which has been key for the “miracle of Shenzhen.”

Small concerts in parks or on the streets of Shenzhen are frequent．The city's “urban culture menu”offers 160，000 public cultural activities each year，with each month uniquely themed．A plethora of cultural events such as the Shenzhen Belt and Road International Music Festival and the Shenzhen Design Week enrich life in Shenzhen．The city has organized Reading Month for 20 years，and the China（Shenzhen）International Cultural Industries Fair has become the most famous exhibition in China's cultural industry.

The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area released in February 2019 designated Shenzhen as a “core engine”for regional development．Then，in August of the same year，the CPC Central Committee and the State Council issued guidelines on supporting Shenzhen to build a demonstration pilot zone for socialism with Chinese characteristics，which outline a three-step development path for Shenzhen．According to the guidelines，Shenzhen will evolve into a modern，international and innovative city by 2025 and become a national model of high-quality development by 2035.

In 1986，Dongmen Old Street remained lined with traditional Cantonese style buildings despite China's first McDonald's opening there．（ZHENG DONGSHENG）

Nantou Section of National Highway 107 in 1984.

Visitors take photos with the statue of Deng Xiaoping at Lianhuashan Park．（GUO SHASHA）

CITY OF IDEAS

Shenzhen's 40-year journey to innovation hub

By Verena Menzel（Germany）

Ping An Finance Center in Shenzhen．（LI HAN）

From a quiet fishing village to a modern high-tech metropolis in southern China，Shenzhen is globally famous as an urban planning Cinderella story．A short time ago，30，000 ordinary people went about their daily business in the small town of Bao’an，oblivious to most of the outside world．Today，those huts have been replaced by the shiny glass facades of modern office towers scratching the cloud cover，and the fishing industry overtaken by the Chinese tech elite of tomorrow hustling in pursuit of dreams.

Exactly 40 years ago in the year 1980，China's central government deemed the city of Shenzhen，which had only been founded in 1979，the country's first special economic zone．It was the starting gun for an unprecedented pilot project that would result in a development miracle of mythical proportions of economic growth.

For a long time，Shenzhen was primarily a magnet for the manufacturing industry and considered the “workbench of the world.”But those days are long gone．Today，the 13-million metropolis adjacent to Hong Kong is not only one of the fastest growing cities in the world，but also a global electronics and communications hub．In 2008，Shenzhen became the first Chinese city to become a UNESCO City of Design and join the Creative Cities Network．Today's Shenzhen is a metropolis of makers and inventors，innovations and ideas.

I hail from a mid-sized German city near Frankfurt and am almost as old as the pilot city of Shenzhen．However，I have not seen much change at home in my four decades of existence．I can still roam the almost identical streets of my childhood 37 years later，while in Shenzhen everything seems new and dynamic.

So how did this happen，and what is driving the vibrant metropolis to keep going more than 40 years after the start of reform and opening-up？What spirit is flowing through the coastal city，making it a driving force for technical and cultural innovation in the 21st Century，not only in China but worldwide？With these questions in tow，I set off for Shenzhen.

I have been living in China for 10 years now，in Beijing to be precise．However，it was my first visit to Shenzhen．But I quickly realized that any trip to Shenzhen will seem like a first—construction cranes and scaffolding abound．The Shenzhen of tomorrow is knocking at the door while I’m trying to process today's Shenzhen．The city is still developing so rapidly that every visit will only be a fleeting snapshot.

Spirit of the City

I got my first glimpse of the entire metropolis from the observation deck of the Ping An Finance Center Tower，which has only been around since 2017．Its dizzying 599 metres make the building the second highest skyscraper in the People's Republic right after the famous Shanghai Tower．From the 116th floor，I could look down on the roofs of surrounding skyscrapers，which are well sorted and arranged，and peer into the street canyons between them，pulsing with sedans，electric buses and taxis.

While digging around for the spirit of the city，I met Han Wangxi，an official from Shenzhen's public relations department．“The development history of a city ultimately shapes its mentality，”he said．“And in the case of Shenzhen，this mentality has been shaped to a large extent by the policy of reform and opening-up and its status as a special economic zone．Over the past 40 years，many new ideas have taken root in people's minds here in Shenzhen．Time being money and the vital importance of efficiency have become rote．Shenzhen locals think empty words only hinder development．You have to have the courage to pioneer and achieve new breakthroughs.”

The fact that Shenzhen，already one of the biggest cities in the world，is still undergoing rapid change relates to Shenzhen's history of change and the culture of change that has sprouted over the years．“Shenzhen has done courageous pioneering work in many areas，”added Han．“The concepts of reform and innovation are deeply rooted in people's minds．The result is a maker mentality that still shapes the spirit of the city today.”

A leader of this trend is Da-Jiang Innovations Science and Technology，DJI for short．The company was founded in 2006 by a young university graduate in Shenzhen．From a garage firm to a global market leader，its astounding success story is reminiscent of the rise of early tech icons like Microsoft．But in Shenzhen，such storybook material abounds today.

While still in school，DJI founder Frank Wang was already working with fellow students on remote-controlled flying drones．After years of development in a small Shenzhen workshop，they finally achieved the necessary technical breakthrough．Today，DJI is setting global standards for drone photography technology.

Their devices are used not only by amateur photographers and professional filmmakers，but also in agriculture and disaster relief operations．DJI has paved the way for a whole new industry by developing technology and today dominates the sector globally.

“Innovation is not produced by capital，”said Shenzhen resident Xie，who arrived in 2012．“It needs the right environment．In Shenzhen，many people work on their own projects purely out of interest．There is an enthusiasm for tinkering with things and trying out ideas，regardless of their potential for profitability．If the DJI founders had only been interested in profits，DJI would not exist today.”

“The city creates an environment in which young people can afford not to look for immediate profit，”he continued．“They can try out exciting ideas until one day something works.”

Policy Support

Such an environment exists in Shenzhen in large part due to policy．The city government supports young start-ups with well-directed support measures and tries to make it easier for young people to enter working life，with aims to attract talented people from across the country and even from abroad.

“In 2019 alone，Shenzhen awarded subsidies of more than 28 billion yuan [US$4.3 billion] for start-ups and the development of new businesses，”said Han Wangxi．“Shenzhen was a good hub back in 2006 when our company was founded，and still is today，”said DJI's Xie，confirming that the measures have paid off．“It is a magnet for talent from Hong Kong，China's mainland，and abroad.”

Many factors have fueled Shenzhen's great success，according to Han，but the ability to attract talented people from all over the world has been huge．“Diverse cultural influences come together here，which ultimately gives birth to new ideas．This applies to technical as well as cultural innovations.”

But financial support alone will not lure young people with dreams to take the plunge．Shenzhen government officials know this．To score points with young university graduates，promising talent，and young entrepreneurs in competition with other big cities，Shenzhen touts a comprehensive package of municipal services that create a living and working environment that makes the transition as pleasant as possible for newcomers and young professionals.

“Shenzhen clearly sees businesses and people as the basis for development，and the government is fully committed to serving them，”said Han．“With a strong service mentality，the government offers targeted support measures for issues such as buying a home，finding a suitable pension scheme，and placing students in schools.”

In this context，the new possibilities of the internet are increasingly being used in the field of city administration to make living and working in the metropolis even more comfortable．One example is the free app “I Shenzhen，”launched in January 2019 by the insurance，finance，and technology giant Ping An Insurance Group with support from the municipal government.

A total of 40 municipal authorities now offer services online via the new service app．More than 7，700 official procedures can be conveniently handled via the internet without visits to administrative offices and time-consuming queuing．Especially in times of COVID-19，the new platform has made many things easier in the metropolis．“More than 96 percent of personal matters and more than 70 percent of business services can be handled online via this app，”said Wayne Hu，deputy director of Ping An Smart City Technologies.

Hu provided a concrete example to illustrate how the app helps to cut red tape: “Last year，130，000 university graduates came to Shenzhen looking for jobs．In the past，it used to take up to two months for young job seekers to get a residence permit．Ten original documents and 14 copies had to be submitted to up to eight different authorities．Processing cost about 500 yuan [about US$76]．We simplified this process enormously with our application in cooperation with the government．After merging the data，it now only takes about one to a maximum of seven days to obtain the necessary approval．And the application process is completely free of charge and does not require a single face visit to authorities．This has been an enormous relief for the public.”

“We are working to remove red tape and restrictions wherever possible so they don’t impede young people's enthusiasm，”Han added.

Rather than thinking in rigid categories，Shenzhen people seek viable solutions，according to Shang Linlin，managing director of Fantawild Holdings，China's animation industry leader and operator of numerous theme and entertainment parks throughout the country.

At Fantawild's headquarters in Shenzhen，creative minds work on high-tech entertainment products reaching for an audience beyond the country's borders．For Shang Linlin，Shenzhen is the ideal place to spread creative cartoons from China to the rest of the world.

“We have already received many offers to move our headquarters to other cities，”she revealed，“but our roots are in Shenzhen．We also think that the city is simply the best place for us．Shenzhen is a creative and innovative city; innovation is a state of mind here．For a company like ours，which combines the latest technology with modern culture，creativity and innovation are essential factors．Shenzhen is simply very open，tolerant，and full of energy.”

In 2007，the year of its founding，Fantawild faced a big problem．Combining cultural products and technology was still uncharted territory in China at the time．During the registration process with municipal authorities，administrators were unsure how to categorize the company.

“We wanted to combine cultural products with tech，”Shang Linlin recalled．“At the time，however，different departments were responsible for each of those areas．So it was not even possible to register a company like ours the regular way．But we explained to the authorities what we wanted to do exactly，and eventually，we were able to register our company．In other cities，this would have been much more difficult for sure.”

“The city government's dual strategy is simple: provide freedom while offering assistance，”said Manager Wayne Hu of Ping An Smart City Technologies．“The government follows the principle of avoiding interfering in business development unless absolutely necessary to create the necessary freedom．However，if help and support is needed，companies can always reach out to the authorities for any reason.”

In the case of Fantawild，this principle has worked．Business is flourishing，and the company is now regarded by young employees as a tech playground with excellent career opportunities．Every morning，big crowds of young creatives toting laptops and plastic coffee cups and clad in t-shirts and sneakers stream across the pavement into the modern office complex.

A Sense of Belonging

Especially for young folks，Shenzhen seems to be a very attractive place．If you walk through the city's busy business districts in the morning，you will hardly meet anyone over 40．Moreover，the majority of young people in the metropolis come from elsewhere，which is rather unusual for Chinese cities.

“The Chinese are traditionally very attached to their homeland and reluctant to seek fortune elsewhere，”said Hu．“Here in Shenzhen，all we have is people who have left their hometowns to pursue careers．These people bring great idealism and ambitions to create something professionally．They are all united by great motivation to launch a career here in Shenzhen．And that creates a very special atmosphere.”

Concentration of so many like-minded people also simplifies integration and strengthens feelings of belonging．The lines between locals and foreigners are fading in Shenzhen，a city that has grown from 30，000 to 13 million inhabitants in just four decades.

Xie Weidi from drone manufacturer DJI，who also moved to Shenzhen from elsewhere，is convinced that his personal development and the development of the company are intimately linked to the development of the city．“Thanks to the past development，new talent can find teachers and necessary inspiration here today to create new things and develop existing things further，”he said.

And so，in this young metropolis，the seeds of the future are being sown，and new technical inventions that could shape tomorrow are emerging constantly．Just how far such new technology can eventually change everyday life and the old familiar world has been impressively demonstrated by DJI in recent years.

“Ultimately，we are changing the way we perceive the world and thus making a deep impact on our culture，”Xie added．“In the future，we will be able to use the air as a resource to fuel our lives and working environment.”

On July 23，2020，visitors look over Macao and Zhuhai from the Shenzhen Shimao Qianhai Center．（CHEN WEN）

RAGS-TO-RICHES TALE OF A CITY

Shenzhen is evolving from the world's factory into an innovative center with a thriving cultural scene

By Vanessa Intan（Indonesia）

A showroom inside Ping An Finance Center in Shenzhen．（GUO SHASHA）

DJI releases two new drone models for plant protection in Shenzhen on November 9，2020.（MAO SIQIAN）

The “Diverse Homology—Four Historical Angles at the Pearl River Estuary Area”exhibition in Nantou Ancient Town.（GUO SHASHA）

The immense crowds，the technicolor buildings，the labyrinthine markets..．No，we are not in Tokyo．We are in Shenzhen．The sprawling megalopolis in south China's Guangdong Province is often touted as China's Silicon Valley，but unlike San Francisco，this city offers far more than tech campuses and hipster joints.

In 1980，Shenzhen was transformed from mere farming and fishing communities in the Pearl River Delta into a Special Economic Zone，one of four cities chosen by central authorities to undergo a pilot economic experiment.

Economic incentives enabled Shenzhen to boom at an unparalleled speed．Between 1979 and 2019，its GDP grew at an average annual rate of 28 percent to 2.69 trillion yuan（US$409 billion）．The city's permanent population rose from 310，000 to more than 13 million，with migrants currently accounting for over 63 percent of its total residents.

Innovation-led Growth

Late Chinese leader Deng Xiaoping sought to leverage Shenzhen's proximity to Hong Kong to support the city's economy．Hong Kong could be the market for the world and Shenzhen the factory．However，in 2018，Shenzhen's GDP of US$370 billion surpassed that of Hong Kong，US$360 billion，for the first time based on the official exchange rate.

This skyrocketing economy is largely thanks to the tens of millions of young people who have poured into the city．While the age demographics of migrants have hardly changed—young people in their 20s—the norm has shifted from factory workers to engineers and people in the hi-tech field．Investment has moved away from traditional manufacturing into research and development.

Shenzhen's hi-tech industrial development zone was set up in September 1996，originally occupying 11.5 square kilometers of land．In 2019，the government announced plans to expand the zone to 159.5 square kilometers to house an additional 2，000 enterprises．Currently，innovative businesses in areas such as internet，biotechnology，and telecom account for more than 40 percent of the city's economic output.

Walking into company offices in Shenzhen is like stepping into the future．Drone manufacturer DJI，which was initially funded in 2006 by its founder's university scholarship，has grown into a mammoth US$3-billion empire．Amidst a technology boom in which every other tech company in China was focused on software，the company stayed true to its hardware calling．Manufacturing drone parts requires tooling and engineering skills of the highest degree．Shenzhen has both: factories of all shapes and sizes right on the doorstep，as well as skilled engineers.

With a strong research and development（R&D）department and a nimble production line，DJI had captured 74 percent of the world's drone market by 2018．In addition to photography and filmmaking drones，its products are used to spray pesticides，fertilizers，and herbicides in farms across the world at a precision variable rate．Future projects include Terra，a 3D modeling and drone mapping software package that captures，visualizes，and analyzes aerial images．The technology can be applied anywhere from public safety，construction，infrastructure，agriculture to the film industries．For DJI，the sky is the limit.

Alongside product development，DJI hosts RoboMaster，an annual international robotics competition for aspiring engineers to design and build next-generation robots．Winners are awarded tens of thousands of dollars and most importantly，a job offer from DJI or another up-and-coming company.

In Shenzhen，agility is not only for tech companies．Even the 32-year-old Ping An Insurance has evolved from a simple insurer into an artificial intelligence（AI）-powered force．Its machine learning-powered customer service line now supports its workforce．The voice of the company's customer service sounds strikingly human，with a tinge of a northeastern accent and subtle imperfections despite being an AI-powered machine.

The company's smart car insurance claim app helps process minor damage claims with only a car ID code and photo uploads of the damage．The app，backed by a data model of 60，000 car types and 25 million car parts，then assesses the damage based on photo recognition software before providing a precise report．In 2018，Ping An paid 1.9 trillion yuan（US$289 billion）in 11 million car insurance claims．With this technology，98.7 percent of the claims were paid within a day.

To put that into perspective，insurance companies worldwide usually take one to two weeks to pay out any insurance claims．This efficiency has drawn interest from Swiss and Italian firms alike，with which Ping An is now sharing its technology.

Ping An has also invested in smart city programs．The iShenzhen smartphone app developed by the company consolidates 40 of the city's public services，speeding up municipal administrative processes.

The company's Smart City Department Director，Hu Wei，said residence registration in Shenzhen used to take more than a month，costing 500 yuan（US$76）and requiring 10 original documents and 14 document copies．With iShenzhen，it now takes between half a day and a week to process，and is free of charge.

During the first half of the year when the coronavirus epidemic caused a slump in car sales，Ping An did not twiddle its thumbs．It not only grew its financing and loan services but also developed a tool to estimate costs for car manufacturers．Most remarkably，the company's previously award-winning pulmonary module CT scan algorithm was used by doctors to find and locate nodules in the lungs of suspected coronavirus patients in seconds.

Habitable City

For a city almost three times the size of Singapore，Shenzhen is built to be human-friendly．It could be mistaken for Tokyo from high up，but closer to the ground，Shenzhen resembles the very walkable city Singapore.

Previously rapidly built according to a car-oriented tradition，Shenzhen launched a pedestrian plan in 2007．Now in the city's central business district，the roads allow residents，old and young，to cross safely．Landscaped raised medians have replaced turn lanes in the city．In this way，instead of trying to rush across eight lanes in under a minute（an impossible task for many elderlies），people in Shenzhen can cross four lanes and wait on the raised platform，often in the shade，before crossing the next four.

All these strategies make the city safe and accessible for people．At the 22nd annual Shenzhen Hi-Tech Fair from November 11 to 15，2020，an entire segment was dedicated to smart cities，wherein several companies showcased slow traffic management—a strategy to make cities more habitable for humans，not cars.

The Smart City Department of Ping An attempts to crack traffic problems by combining new communications technology with the power of AI to crunch vast amounts of data in real time to detect congestion in certain parts of the city．The data can be used by the local government to apply a booking system to ease clogged roads.

Shenzhen is now one of the 13 pilot cities promoting alternative-energy public transportation in China.

Like many cities around the world，Shenzhen has seen its fair share of pollution．Official data shows that the city experienced 177 days with dusty haze in 2004，almost 10 times the number in the 1980s．To tackle this problem，the city ambitiously adopted electric vehicles（EVs）．All buses and 99 percent of taxi fleets in the city run on electricity．Its 20，000 battery-powered taxis are estimated to cut 856，000 tons of carbon emissions per year.

The program has solid fiscal and industry backing．The Central Government subsidizes the purchase of each electric taxi with up to 60，000 yuan（US$9，150）while Shenzhen formulates its own subsidy plans．Moreover，EV supplier BYD is headquartered in Shenzhen，which has a healthy supply of vehicle maintenance and repair locations．According to the Shenzhen Municipal Transport Commission，this public-private cooperation not only cuts smog but also fuels the development of the alternative energy industry.

A Cultural Hub

For many years，Shenzhen was a place people came to work．Now，the city wants to transform itself into a destination for living.

Nantou Ancient Town is a mixture of both Shenzhen's ancient and its more recent urban histories．While the site's history can be traced back to 331，only the southern gate remains from the historical period．This gateway leads to a 330-meter-long alleyway where 88 buildings have been refurbished into cafes，shops，galleries，exhibition spaces and digital museums．Instead of being demolished，ancient histories were preserved，an old town was revived，and new public squares and green spaces were created—forming a supercharged experimental urban design zone that both represents a cultural layer of the city and improves the quality of life for residents.

Another Shenzhen cultural destination is the OCT-LOFT complex．Located in the tourist resort Overseas Chinese Town，the abandoned factory buildings underwent two years of renovation by local architecture firm Urbanus．It now serves as a focal point for the megacity's burgeoning art and design scene．It was the site of the first Bi-City Biennale of Urbanism/Architecture，which was organized by the Shenzhen Municipal Government in 2005，and has since drawn wide interest for its art and design events．In 2008，the year the October Art and Design Gallery opened，Shenzhen was dubbed a UNESCO City of Design，the first city in China to join the UNESCO Creative Cities Network.

In 2017，the Shenzhen Design Society was launched．It remains China's first and so far only museum dedicated to design（in collaboration with the Victoria and Albert Museum in London）．In 2019，over 1，000 designers from over 30 countries and regions brought more than 2，500 works to the Design for the Future event.

Shenzhen has also been proactive in exporting Chinese culture by hosting 15 editions of the China（Shenzhen）International Cultural Industries Fair，a platform to help Chinese culture go global.

“Daring to experiment”is the spirit of the people，enterprises，and government of Shenzhen．The city remains an export-import hub，but its output has diversified from cheap electronics to innovative technology and now cultural products.

Constant reinvention is required for a city to thrive，and that is exactly what the 40-year-old Shenzhen is doing.

SHENZHEN'S SECRET TALENT

The city's lightning development from a humble village to a global megalopolis happened because of hardworking Shenzhen people

By Chen Ke

Erxianguan，or “Second Line Border，”was constructed 35 years ago when the Shenzhen Special Economic Zone（Shenzhen SEZ）was first established.

Erxianguan was a 2.8-meter-tall barbed wire fence stretching 84.6 kilometers from east to west along a granite patrol route as a control line for Shenzhen SEZ．It was so named to differentiate it from Yixianguan，the “First Line Border”between Shenzhen and Hong Kong．After it was installed in 1985，people had to pass through the checkpoint with their ID and a border pass from the government to be admitted into the Shenzhen SEZ．In January 2018，the State Council approved removal of the line.

The barricade restricting the flow of people was completely removed．The population of Shenzhen has increased from 314，100 in 1979 to 13 million now.

Pooling Talent

In the early stage of the reform and opening-up，many manufacturing operations from Hong Kong transferred to Shenzhen because of the geographic proximity．The two cities embraced a business cooperation model known as “stores at the front and plants at the back，”through which the goods produced by manufacturers in Shenzhen were transported for retail sale in stores in Hong Kong．Seeing the economic opportunity，many migrant workers flocked to Shenzhen to make a fortune．In 1989，the labor inflow reached a million，making Shenzhen one of the earliest cities to become a magnet for migrant workers.

Some say that potential riches were the dominant factor attracting so many to Shenzhen years ago，but people now stay because of the exciting pulse of the city．“To see how Chinese mindsets are changing in modern times，Shenzhen is absolutely the place to look，”said an essay published in China Youth Daily．“The city has generated many ideas that have changed the country's appearance and shaped its modern image.”Among all the ideas practiced and promoted by the city during the past four decades，inclusiveness has become most representative.

During the four decades since the establishment of Shenzhen SEZ，the city has set more than 1，000 records as the first in China to practice trial policies or pilot projects．Such policy inclusiveness laid the foundation for market reform and comprehensive opening-up．More importantly，such an inclusive environment generated a free and open culture that not only shaped the inclusive nature of the city，but also enhanced the sense of identity Shenzhen residents now have.

After graduating from university in 2011，Zhang Yingying，who suffers from a leg disability caused by polio，decided to go to Shenzhen first．“The moment I got off the plane，volunteers rushed to help me，”she recalled．“They grabbed the luggage out of my hands and helped me on and off the bus.”Because of the disability，Zhang Yingying is quite sensitive to her environment，and that moment she knew that Shenzhen was where she belonged.

At the end of 2015，Longyueju Community，the largest public rental housing complex in Shenzhen，began accepting applications from people with disabilities．Over 300 households with disabled family members，including Zhang，moved into the new houses．“Doors are usually only 70 centimeters wide，but ours are a full meter，”said Zhang of her home equipped with a wide range of disability-friendly facilities.

“I wanted to do something to pay forward the kindness the city gave me.”That year，Zhang quit her job to establish the Shenzhen Yuyan Care Center for the Disabled and started engaging in government projects to help individuals with disabilities participate in social activities by providing training and cooperating with companies．With help from a team of people with disabilities，Zhang has established four social organizations and two companies，providing jobs for over 2，700 people with disabilities．In 2019，Zhang Yingying was honored as a National Self-improvement Model.

Shenzhen has a greater migrant population than any other city in China．The local government has been committed to providing equitable social services to native and non-registered households alike．In 1984，Shenzhen first rolled out a system of temporary residential permits and included migrant workers in its social security system．In August 2008，Shenzhen introduced a residence card system through which non-registered people could enjoy the same services as Shenzhen citizens．Since the 18th CPC National Congress in 2012，the Shenzhen government has been exploring methods to establish a comprehensive social security system．It ensures free basic public health services to migrant workers，provides compulsory education for children of non-registered Shenzhen residents，welcomes qualified migrant workers into the government-subsidized housing system，and established a modern social assistance system.

Keeping Talent

The leapfrog development positioned Shenzhen as the vanguard of China's progress and inspired many to ponder the city's future.

On November 16，2002，Guo Zhongxiao，a 28-year-old Shenzhen citizen，wrote an article titled “Who Abandoned You，Shenzhen？”and posted it on the internet．In the 18，000-character piece，the author summarized the city's development over the 22 years since the reform and opening-up and expressed concern for issues including a perceived diminishing attractiveness to talent and exodus of businesses to other places．Two months later，the then-mayor of Shenzhen conducted a two-and-a-half-hour discussion with Guo，which became a huge story.

The piece remains insightful even after nearly 20 years．Although most of the worried predictions in the essay did not happen，people still reference it when considering the future of Shenzhen．As reform and opening-up enters a new stage，the strategic direction for Shenzhen's future development has become clearer．Shenzhen will serve as a new pillar for the development of the Guangdong-Hong Kong-Macao Greater Bay Area and become a pilot zone for socialism with Chinese characteristics．“For Shenzhen SEZ，pursuing change，reform，and innovation has become the norm，”said Guo Wanda，executive vice president of the China Development Institute.

Favorable policies continue to benefit new Shenzhen arrivals．Wang Gaolei，a staff member of the Communist Youth League of Futian District of Shenzhen，highlighted Youth Inns，a Shenzhen Communist Youth League charity project launched in 2013．“For up to a year after graduation，university graduates can stay in a Youth Inn for free for seven days and enjoy services including employment assistance，medical examination for employment，and guidance for living in Shenzhen，”Wang said.

In the seven years since its establishment，16 Youth Inns with a total of 365 beds have been built across the city．More than 28，000 fresh graduates have stayed in the Youth Inns．In August 2014，Gao Yan adjusted to Shenzhen smoothly while staying at the Shixia Youth Inn．“Only after I left did I realize that the Youth Inn was the best place I ever stayed，”she later wrote in an essay.

Today，the municipal governments of many Chinese cities are rolling out preferential policies to attract young talented people，but Shenzhen is maintaining its lead in the race placing value on talent．Over the past decade，government departments of Shenzhen have been enacting new talent policies almost yearly to improve the city's talent introduction system and guarantee that talented people receive government assistance to start businesses，secure housing，and enroll their kids in school.

Youibot Robotics，an innovative high-tech company founded by Zhang Zhaohui，is located in Huaqiangbei，a major electronics manufacturing hub in Shenzhen．“Rent in this place is about 120 yuan [US$18] per square meter，but the preferential price I get is 50 yuan [US$7.6] per square meter，which saves me nearly 2 million yuan [US$300，000] each year，”revealed Zhang．In 2017，a development team cooperating with the government of Futian District helped them solve the problems related to business venue approval，client introduction，and application for subsidies．Eventually，HAX，the world's leading hardware accelerator company，started working with his company.

“By leveraging the advantages of the complete industrial chain in Huaqiangbei，it took us barely a month to launch the world's first commercial robot for vehicle inspection，”he said．“We have already secured million-yuan orders from Michelin Group.”The industrial mobile robots developed by Zhang Zhaohui's company are now used in intelligent manufacturing，intelligent inspection，and maintenance and sold in more than 20 countries.

The year Zhang Zhaohui arrived in Shenzhen，the government of the city officially issued Regulations of Shenzhen Special Economic Zone on the Work of Talent，which first made talent policies and innovative practices into law，and set November 1 as Shenzhen Talent Day．In 2019，Measures for the Selection and Training of Distinguished Talented People in Shenzhen（for Trial Implementation） was issued to serve as a guidance for selecting talented people in accordance with national strategies and the development needs of key areas and industries in Shenzhen．The latest data shows that the current total number of university graduates in Shenzhen exceeds 6 million，among whom 17，000 hold advanced degrees and over 140，000 were educated overseas.

Shenzhen attracts young people from all over the country.（SU DAN）

Dogs and their owners participate in a pet marathon in Shenzhen on October 4，2019．（CHEN WEN）

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The population of Shenzhen has increased from 314，100 in 1979 to 13 million now.
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The latest data shows that the current total number of university graduates in Shenzhen exceeds 6 million，among whom 17，000 hold advanced degrees and over 140，000 were educated overseas.