China figures Shenzhen for ‘socialist demonstration area’

Beijing is planning to develop the neighboring city of Shenzhen into a pilot demonstration area for socialism with Chinese characteristics, according to state media.

Shenzhen will be granted favorable policies including privileges in yuan internationalization, China Central Television reported on Sunday, citing guidelines issued by the Chinese Communist Party central committee and the State Council.

Shenzhen is encouraged to build manufacturing innovation centers for sectors including advanced communication devices and medical instruments. Digital currency research and mobile payments will be supported in the city too, as will technology sub-sectors including 5G, artificial intelligence and cyberspace technology.

The city will also establish a maritime university and a national deep sea research center, and explore the establishment of a maritime development bank.

China will also promote the connection of the financial markets of Shenzhen, Hong Kong and Macau, including with regards to fund recognition. No details were provided.

The southern Chinese city was told to work toward giving “citizen treatment” to Hong Kong and Macau residents who work there, and was also encouraged to allow talented foreigners with permanent residency in China to start businesses in the city, according to the guidelines.

The new framework comes as Hong Kong is embroiled in the 11th week of demonstrations that show no signs of abating. Hong Kong’s Financial Secretary Paul Chan warned of a looming “economic typhoon” for the city on Sunday.

The central government also outlined a roadmap for the city’s development over the next three decades.

According to the official document, by 2025, Shenzhen should become one of the leading cities in the world in terms of economic strength and quality of development. Then by 2035, Shenzhen should become a national model of high-quality development, as well as a hub of innovation, entrepreneurship and creativity with international influence.

State media agency Xinhua reported that by the mid-21st century, Shenzhen is to become “one of the top cosmopolis in the world and a global pacesetter with outstanding competitiveness, innovative capacity and influence.”

Shenzhen, a major city in south China’s Guangdong Province, was the country’s first special economic zone. It has a population of about 13 million and its gross domestic product hit 2.42 trillion yuan (about $346 billion or MOP2.77 trillion) in 2018, up 7.6 percent year on year. DB/Agencies