News Center



Home News Center News

Understanding ‘Shenzhen Miracle’

Jul 29-2020   



China’s development has been a miracle since its reform and opening up 42 years ago, and Shenzhen’s can truly be called “miracle of miracles”, said Prof. Justin Lin Yifu in a recent TV interview examining the secrets of the city’s exponential growth. He’s the Honorary Dean of the NSD and deputy director of the Economic Committee of the Chinese People’s Political Consultative Conference (CPPCC). “In terms of growth rate, Shenzhen has been a miracle; yet the fundamentals behind its success are rather common,” he said.

 

What has been at simultaneous play in Shenzhen, said Prof. Lin, is efficient market and effective government. On one hand, entrepreneurs are trusted and given the free rein to do what they are best at. On the other hand, the government stands ready to do what entrepreneurs are incapable of and help them solve problems. This recipe is at the core of Prof. Lin’s new structural economics theory, which draws inspirations from Shenzhen’s development.

 

Shenzhen has been bent on creating a sound business environment where entrepreneurs can play their due roles. Now that some industries in Shenzhen are world-leading, exemplified by Huawei, Tencent, and DJI, the government should work on building up a favorable basic research environment so that more talents will come work here to collaborate with companies, which tend to focus on new product development and not basic research.

 

In the 1980s and 1990s, Chinese industries had late-mover advantage. Nowadays some still need to catch up with their international counterparts, while some others lead the world and must create their own competitive advantages. China still lags behind developed countries in capital accumulation, but it can count on its vast pool of talents, the size of domestic market and the completeness of industrial chains.

 

To further realize its potential, Shenzhen must tap both domestic and international markets, and utilize both domestic and international resources, said Prof. Lin. The Guangdong-Hong Kong- Macao Big Bay Area offers plenty of possibilities for generating competitive advantages in various cities through coordination. For instance, Shenzhen can take advantage of Hong Kong’s finance and high-tech research as well as well as the industrial chains in neighboring cities such as Guangzhou, Foshan, and Zhongshan.

Understanding ‘Shenzhen Miracle’

Jul 29-2020   



China’s development has been a miracle since its reform and opening up 42 years ago, and Shenzhen’s can truly be called “miracle of miracles”, said Prof. Justin Lin Yifu in a recent TV interview examining the secrets of the city’s exponential growth. He’s the Honorary Dean of the NSD and deputy director of the Economic Committee of the Chinese People’s Political Consultative Conference (CPPCC). “In terms of growth rate, Shenzhen has been a miracle; yet the fundamentals behind its success are rather common,” he said.

 

What has been at simultaneous play in Shenzhen, said Prof. Lin, is efficient market and effective government. On one hand, entrepreneurs are trusted and given the free rein to do what they are best at. On the other hand, the government stands ready to do what entrepreneurs are incapable of and help them solve problems. This recipe is at the core of Prof. Lin’s new structural economics theory, which draws inspirations from Shenzhen’s development.

 

Shenzhen has been bent on creating a sound business environment where entrepreneurs can play their due roles. Now that some industries in Shenzhen are world-leading, exemplified by Huawei, Tencent, and DJI, the government should work on building up a favorable basic research environment so that more talents will come work here to collaborate with companies, which tend to focus on new product development and not basic research.

 

In the 1980s and 1990s, Chinese industries had late-mover advantage. Nowadays some still need to catch up with their international counterparts, while some others lead the world and must create their own competitive advantages. China still lags behind developed countries in capital accumulation, but it can count on its vast pool of talents, the size of domestic market and the completeness of industrial chains.

 

To further realize its potential, Shenzhen must tap both domestic and international markets, and utilize both domestic and international resources, said Prof. Lin. The Guangdong-Hong Kong- Macao Big Bay Area offers plenty of possibilities for generating competitive advantages in various cities through coordination. For instance, Shenzhen can take advantage of Hong Kong’s finance and high-tech research as well as well as the industrial chains in neighboring cities such as Guangzhou, Foshan, and Zhongshan.