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Shenzhen: Innovation and Governments’ Roles in Reform and Development

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Development and Planning in Seven Major Coastal Cities in Southern and Eastern China

Part of the book series: GeoJournal Library ((GEJL,volume 120))

Abstract

Shenzhen’s unprecedented pace of development from a small town to a mega city has been highly praised. The contribution of foreign investment has usually been considered the major factor of the successful socio-economic and urban development of the Shenzhen Special Economic Zone. However, if we consider the government’s intangible contribution such as various innovative trials in development approaches and concepts that subsequently transformed the institutional system in China completely, its leading role is very clear. Thus, this chapter’s analytical focus is on the role of both local and central governments in forming the innovative strategies and steering the development. The chapter argues that governments are playing two major roles in Shenzhen’s development. While they are reformers to carry out innovative changes in the urban system, such as the land regime, employment system, and social welfare and security systems, they are also pro-growth governments actively pursuing the economic success of Shenzhen. To maintain Shenzhen’s leadership and success in urban development, the city should continue in innovation. The Shenzhen government can be the pioneer not only in economic reforms but also in social, environmental, public administration, and political reforms.

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Notes

  1. 1.

    The year-end permanent population of Shenzhen in 2013 was 10.63 million (Statistics Bureau of Shenzhen Municipality 2014a). According to the United Nations’ definition, a mega city is a city with over 10 million inhabitants.

  2. 2.

    Shenzhen was divided into SEZ part and non-SEZ part until 1 July 2010. The whole city is now a SEZ.

  3. 3.

    Degree of dependence on foreign trade = total value of imports and exports/GDP. The figures in 2013 were US$ 537.47 billion * 6.1932 (annual average exchange rate)/RMB 1450.02 billion.

  4. 4.

    Export values of Guangdong and China in 2013 were US$ 636.364 billion and US$ 2209.00 billion respectively (National Bureau of Statistics of China 2014; Statistics Bureau of Guangdong Province 2014).

  5. 5.

    The four modernizations are the modernizations of agriculture, industry, national defense, and science and technology.

  6. 6.

    For the details of this new civil service system, see Wang and Zhu (1990).

  7. 7.

    In 1982, one joint venture enterprise applied a new employment system that broke the traditional fixed salary system and pay scale. The enterprise offered jobs and pays according to the need and the negotiation with the applicant (Shenzhen Museum 1999, p. 107). Prudent trials of new strategies and policies were also first carried out in some enterprises, such as the China Merchants Group (CMG), a Hong Kong-based state-owned company under the administration of the then Ministry of Communications of China, and other enterprises like China Travel Service (Hong Kong) Limited (CTSHK) with close relations with the government.

  8. 8.

    Such as no money could be borrowed for infrastructure development (Shenzhen Museum 1999).

  9. 9.

    Urban Construction and Planning Committee of the Shenzhen Municipality was set up in May 1980.

  10. 10.

    After years of negotiation, a cross-border e-payment system—“Hu Tong Xing”—that links Hong Kong and Shenzhen was on sale from 11 September 2012 onwards, see Octopus’s homepage, http://www.octopus.com.hk/get-your-octopus/choose-your-octopus/cross-border-octopus/overview/en/index.html.

  11. 11.

    Deng Xiaoping was officially recognized as the chief architect of China’s economic reforms and socialist modernization.

  12. 12.

    Gu Mu was a then vice-premier of the State Council, Li Xiannian was also at the time a vice-premier of the State Council and the president of the country, and Xi Zhongxun was the then governor of Guangdong and the Secretary of the Guangdong Provincial Committee of the CPC.

  13. 13.

    Yuen Geng was assigned by the then Transportation Bureau to be the head of the CMG and Shekou Industrial Zone, Liang Xiang was the first mayor of Shenzhen, and Li Hao was Liang Xiang’s successor.

  14. 14.

    For example, the minimum wage policy leads to rapid rise in the cost of labour in consecutive years and Shenzhen’s minimum wage is the highest in China. In 2015, the minimum monthly wage is RMB 2030 (http://www.chinadaily.com.cn/dfpd/sh/2015-04/03/content_19991364.htm).

  15. 15.

    For example, while Huawei and ZTE ranked top in the list of patent granted in China in 2014, Shenzhen topped in the list of all Chinese cities (State Intellectual Property Office, 2015a, b).

  16. 16.

    For details of the China Hi-tech Fair, see http://www.chtf.com/english.

  17. 17.

    Please refer to http://www.sustc.edu.cn/about4.asp and http://baike.baidu.com/view/1215910.htm.

  18. 18.

    Please refer to http://qhsk.china-gdftz.gov.cn/zwgk/cxyzc/201507/t20150723_18141542.html.

  19. 19.

    Please refer to the homepage of Shenzhen 2040 Development Strategy, http://www.sz2040.com/default.aspx.

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  1. Department of Geography and Resource Management, The Chinese University of Hong Kong, Shatin, NT, Hong Kong

    Jianfa Shen

  2. Hong Kong Institute of Asia-Pacific Studies, The Chinese University of Hong Kong, Shatin, NT, Hong Kong

    Gordon Kee

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Shen, J., Kee, G. (2017). Shenzhen: Innovation and Governments’ Roles in Reform and Development. In: Development and Planning in Seven Major Coastal Cities in Southern and Eastern China. GeoJournal Library, vol 120. Springer, Cham. https://doi.org/10.1007/978-3-319-46421-3_3

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  • DOI: https://doi.org/10.1007/978-3-319-46421-3_3

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-46420-6

  • Online ISBN: 978-3-319-46421-3

  • eBook Packages: Social SciencesSocial Sciences (R0)

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