Shenzhen seeks more miracles with plan to lure foreign talent

In 45 years, Shenzhen has grown from a fishing village in mainland China, across the river from Hong Kong, into a large, affluent and liveable city that has been likened to Singapore, though more hi-tech. Shenzhen’s economic output has grown faster than the GDP of China as a whole and the country’s other first-tier cities.

The “Shenzhen Miracle” began when it was designated a special economic zone where China could try out different aspects of capitalism. For a while, foreigners saw it as proof that China could play catch up with the west, but not be as innovative: the city was best-known for its vast product assembly sweat shops, with harsh conditions that led to worker suicides at iPhone contractor, Foxconn, for example. Today, it is home to several world-leading corporate innovators, including consumer electronics giant Huawei, social media pioneer Tencent (owner of WeChat), electric vehicle manufacturer BYD and drone maker DJI.

As you might expect of a “pilot demonstration area for socialism with Chinese characteristics”, city authorities attribute much of its success to “complex planning”. Last week, ambitious new plans were unveiled, including improving collaboration between industry and academia and developing the human capital pipeline for advanced manufacturing and emerging high-growth industries. Already a magnet for talented workers across China, Shenzhen will increasingly try to attract the best from abroad. Priority areas for growth will be financial innovation, data, and – unsurprisingly for a city where it is now routine to have your fast food delivered by drone – the so-called “low-altitude economy”.

Can a miracle built on globalisation continue in an era of rising protectionism and politicisation of economic activity? Huawei is already politically toxic in the US. DJI awaits an official national security review that could result in its drones being banned there. And even as it doubles down on its efforts to compete in Europe, concerns are growing at home about the health of BYD’s finances. One thing seems certain, whatever happens in Shenzhen will continue to say a lot about the economic prospects of China as a whole.

Photograph by Getty