Shenzhen

James Laurenceson, Deputy Director, Australia-China Relations Institute, University of Technology Sydney

Can China become an innovation-led, high income country? Shenzhen, a Prefecture-level city bordering Hong Kong SAR, provides some answers.

1. In 2014 Shenzhen’s per-capita income was RMB149,497, or $US24,259.[1] In Nanshan district, described by Bloomberg as the technology heartland of Shenzhen, it was $49,730.[2] This compares with:

• The World Bank threshold for classification as a high-income country in 2014 of $12,735.[3]
• OECD countries such as Portugal: $22,132 and Korea: $27,971.[4]
• Hong Kong SAR: $40,170 and Singapore: $56,285.[5]

2. Previously known as a low value-added manufacturing hub, in 2014 the services sector accounted for 57.3 percent of Shenzhen’s GDP.[6] 

3. In 2014 Shenzhen displaced Hong Kong SAR to become ranked as Greater China’s most competitive city. Hong Kong SAR had previously held the top spot since 2005.[7]

4. In 2015 Shenzhen was named as a global top five start-up hub for the future by US magazine Inc., a publication focusing on small and medium fast-growing businesses.[8]  

5. In 2014, research and development expenditure accounted for 4.02 percent of Shenzhen’s GDP. [9] In Hong Kong SAR it was 0.74 percent.[10]

6. In Patent Cooperation Treaty applications, Shenzhen hosts five companies that rank in the top 50.[11]  

7. Shenzhen now serves as the global headquarters of leading manufacturing and tech companies including: [12]

• Tencent, which has over one billion monthly active users across its desktop platform QQ and mobile instant message app Wechat.
• Huawei, the world’s largest telecommunications equipment manufacturer.  
• BGI, the supplier of 50 percent of the world’s gene sequencing capacity.
• BYD, the world’s largest supplier of rechargeable batteries.
• DJI, which produces 70 percent of the world’s civilian drones.  

Author

Professor James Laurenceson, Deputy Director, Australia-China Relations Institute, University of Technology Sydney