The Shenzhen Special Economic Zone was established in May 1980, and is the first special economic zone in the People's Republic of China.
Four SEZs – Guangdong, Fujian, Shenzhen and Hainan – were established in China in the 1980s, strategically placed away from the capital of Beijing to minimise potential negative impacts and very close to bordering capitalist hubs, Hong Kong, Taiwan, and Macao.
Before Shenzhen became a special economic zone, it existed as a small city containing only 310,000 residents and less than 30,000 workers. By the end of 2000, however, the population had grown to 4.33 million and its labor force to 3.09 million.
Shenzhen is now the world's hub of electronics manufacturing. Including for big name like Apple, Hewlett-Packard and DJI. It is often referred to as “the world's factory”. It has been reported that 90% of the world's electronics come from Shenzhen, including toys, televisions, air conditioning units, mobile phones and drones.
Not content to be the manufacturing base of the world, Shenzhen has its sights set on becoming a world leader in hi-tech innovation, and the rising star of the move from “Made in China” to “Designed in China”.
Less than 30 percent of the population is permanent residents. The other 70 percent are temporary residents, mainly migrant laborers from rural areas who lack official household registration and citizenship.
The majority of migrants in Shenzhen are female. It has been, suggests that the rapid economic development of Shenzhen and the advancement of its position in the global economy are dependent on extracting female workers from the rural areas, and there are concerns that women face inhumane working conditions and receive low wages for extensive hours.
Shenzhen was known for spewing out dark clouds of toxic smoke, but in the last decade it has transformed into China’s most sustainable city, the city has cut pollution by 50 per cent and rolled out an all-electric bus fleet, with the target to replace all fuel-powered taxis by 2020. Today, the city has three times more electric buses than the entire fleet of all buses in New York, and nearly eight times the total of Los Angeles.
In the city, things like livability and lifestyle have undergone enormous changes – with new parks (covering 39,320 hectares) and restaurant areas, better housing and improved air quality. Walking down the streets in Futian or Nanshan, the finance and tech areas, is a cleaner experience than being in the congested streets in Central or Causeway Bay in Hong Kong. The Shenzhen government has been very aggressive in cutting roadside air pollution and planting trees along the streets.
The manufacturing industries inthe Pearl River Delta employ 30 million people in an area the same size as Belgium and is known as the ‘workshop of the world’. The Shenzhen region produces 70% of the worlds photocopiers and 80% of the worlds artificial Christmas trees. The Dongguan region specialises in running shoes, employing 80,000 people in one factory.
Why have industries located there?
Cheap Labour Force – China’s population is one of its main resources, and because there are so many people it means that the cost of hiring them is low.
Few Environmental Regulations – China is big on developing, not on protecting the environment, so it is cheaper for companies to locate here as they don’t have to pay as much to get rid of their waste.
Flat land – Flat land at the delta of the Pearl river (the lower course) means that it is easy to build factories.
Space to expand – there is plenty of space to expand the buildings for the factories.
Good Access – there are five major airports in the region (in particular Shenzhen airport so shoes can be air freighted easily). There are 6 deep water ports and 13 shallow water ports so it is easy to transport products to the rest of the world.
How has this been beneficial to China?
MNCs have followed each other to locate there, making it the ‘workshop of the world’.
Lots of job opportunities for locals, causing a rise in income for its people.
More tax (paid by the MNCs) for government to spend on health, education and infrastructure improvements.
More transport links (airports, roads, railways) built – so beneficial for the development of the region.
More recently, due to huge environmental problems in the area, environmental regulations have been toughened up.