Shenzhen (Guangdong) City Information

Major Economic Indicators

Notes:
¹ In renminbi real terms
² For all state-owned and other forms of enterprises with annual sales over RMB20 million
Source: Shenzhen Municipal Bureau of Statistics

General Background

Shenzhen is located on the east bank of the Pearl River Estuary, with the river providing a natural boundary with Hong Kong. The city covers an area of 1,992 sq km and, as of the end of 2017, its permanent population stood at 12.53 million. In 1980, Shenzhen was designated as China’s first Special Economic Zone, serving as a pioneer and trial zone for the country’s subsequent reform, opening up and contemporary re-development.

According to the 2016 Report on China’s Urban Competitiveness, as published by the Chinese Academy of Social Sciences, Shenzhen is ranked as number one on the mainland in terms of “overall economic competitiveness”. It is also regarded as one of China’s most important high-tech R&D and manufacturing bases, while additionally being home to the world’s third largest container port and China’s fourth largest airport. Shenzhen’s per capita GDP is the highest in Guangdong.

Industries

Dating back as far as 2008, the GDP share of Shenzhen’s tertiary industries has exceeded the 50% mark. In 2017, such industries accounted for 58.6% of the total. Overall, the city has four pillar industries – high-tech, financial services, modern logistics and the cultural sector. In the case of its high-tech industries their overall value-added output has risen from RMB305.9 billion in 2010 to RMB735.9 billion in 2017, an average annual growth rate of 13.4%.

Composition of GDP (%)

Source: Shenzhen Municipal Bureau of Statistics

“Indigenous innovation” has long been seen as the cornerstone of Shenzhen’s development. In 2016, its overall R&D expenditure amounted to 4.1% of its GDP, a figure significantly higher than the national average of 2.1%. In terms of total PCT international patent filings and invention patent ownership per 10,000 people, it ranks first among all of China’s medium to large-sized cities. It is also seen as a global pioneer in several high-tech sectors, including 4G technology, DNA sequencing, metamaterials and 3D displays.

In 2016, 3,791 of Shenzhen’s businesses were designated as national high-tech enterprises, taking the city’s overall total to 8,037. Among these newly designated enterprises, 54% were engaged in the development of electronic information systems, 18% had a focus on advanced manufacturing and automation, while the remaining 28% were spread across six other technological sectors – biotechnology and new pharmaceuticals, new energy and energy conservation, resources and the environment, aviation and aerospace, new materials and high-tech services.

Shenzhen’s “maker” population has also enjoyed continuous growth over recent years, with thousands of such businesses now active in the city, including Chaihuo Maker Space, Makeblock and Seeed Studio. In addition, a number of globally-renowned high-tech enterprises have established R&D centres or regional headquarters in Shenzhen, including ZTE, Huawei Technologies, Tencent and Apple Inc.

In April 2015, the Qianhai-Shekou Area of China (Guangdong) Pilot Free Trade Zone officially began operating in Shenzhen, with one of its key roles seen as providing a platform for the trial opening up of China’s financial sector to the outside world. This is in line with the city’s own 13th Five-year Plan (2016-2020), which sees it developing into an international financial innovation centre, as well as acting as China’s principal centre for the trialling of financial innovations.

With regard to the wider development of the Guangdong-Hong Kong-Macau Bay Area, there is an ongoing commitment to developing the Shenzhen-Hong Kong Innovation Circle. This would see Shenzhen and Hong Kong jointly establishing a technology transfer centre, an international technology trading platform, a venture capital funding services platform and a technology service centre. In addition to this, Shenzhen is also looking to strengthen the service sectors of its external traffic and transport facilities, accelerate the establishment of a global shipping network, upgrade its airport into an international hub and expedite the construction of its external railway network.

Foreign Trade and Investment

For 2017, Shenzhen’s exports accounted for 39.2% of all of Guangdong’s exports and 10.8% of China’s total exports. In the latter case, it has been the largest single contributor among all the mainland cities for 25 consecutive years. In terms of the total value of the city’s exports, 46.7% was derived from the high-tech sector.

Of Shenzhen’s actually utilised FDI in 2017, 21.7% was allocated to rental and business services, 27.6% to the real estate sector, 12% to the financial sector, 14.8% to the wholesale and retail sector and 7.2% to the manufacturing industries. For 2016, 88% of Shenzhen’s utilised FDI was sourced from Hong Kong.

In terms of tourism and entertainment resources, Shenzhen is home to two of the world’s largest miniature landscapes – the Splendid China Folk Village and the Window of the World. Among its other facilities are the Happy Valley Theme Park, the beaches of Dameisha and Nan Ao and several other popular bathing destinations. In 2017, Shenzhen’s tourism hospitality facilities welcomed 60.22 million overnight visitors, of which 12.07 million were overseas (including Hong Kong) tourists.

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