Cross-border trade has become vital growth engine for the city’s economy
Major companies in Shenzhen are expanding to cope with growth opportunities thrown up from the Belt and Road Initiative.
International projects are opening up for businesses in industries such as i nfrastructure, logistics, information technology and financial services.
“To reap the benefits from its harbor location, Shenzhen is boosting connectivity with countries and regions related to the Belt and Road Initiative by implementing projects in trade, logistics, air transport and the information sector,” said Wu Sikang , director of the Shenzhen Development Research Center.
Shenzhen is one of China’s most vibrant cities and is actively encouraging Chinese companies to develop a Going Global strategy.
Already many firms are involved in putting together logistic networks, Wu confirmed.
Shenzhen Yantian Port Group Co Ltd has signed a memorandum of understanding to take part in the Melaka Gateway Port project in Malaysia.
China Merchants Group has also announced plans to roll out offices in 47 ports in 18 countries.
Local enterprise groups continue to be in the forefront of the Belt and Road Initiative, which connects Asia, Africa and Europe to a modern version of the ancient Silk Road.
Shenzhen airport has invested heavily i n i nfrastructure renovation and launched new flights. It has added 12 international routes, including to Sydney, Dubai and Jakarta.
It has also increased the number of flights to major Southeast Asia cities. Last year, about 2.23 million international travelers visited the airport, which was up one third year-on-year.
Other sectors are also experiencing a boom.
“To serve the city’s crossborder financial and logistics business, Shenzhen is working full swing on its booming IT sector,” Wu said.
“It has increased the speed levels of its internet connection with Qianhai, the pilot zone for service industry cooperation. And it will also build a cross-border e-commerce customs clearance platform,” he added.
Wu pointed out that stimulating cross-border trade was crucial to the economy.
Last year, 216 foreign companies started up i n Shenzhen, an i ncrease of 46.9 percent year-on-year. The city ’s international trade with Belt and Road
Shenzhen is working full swing on its booming IT sector.” Wu Sikang, director of the Shenzhen Development Research Center
economies also reached 482.7 billion yuan ($70.9 billion) during the same period, an increase of 7 percent compared to 2015.
“Cross-border trade has become a vital growth engine for the city’s economy,” Wu said. “The city has seen an increase in import and export activity, and bilateral i nvestment since last year.”
In 2016, Shenzhen attracted $280 million of foreign investment, a jump of 175 percent compared to the previous year.
Domestic companies such as Huawei Technologies Co Ltd and ZTE Corp are also scrambling to expand their global presence.
Huawei, the multinational telecommunications equipment and smartphone manufacturer, has invested $12.5 billion in Belt and Road-related economies.
Now its products and ser- vices are available in more than 170 countries and regions.
ZTE, another multinational telecommunications equipment company, has moved into overseas markets. It recently bought a major share i n a l eading Turkish telecoms company Netas for $101.3 million.
Shenzhen Energy Group has pursued opportunities in Europe and is involved in a wind power project i n Greece.
Closer to home, Wu stressed that Shenzhen would accelerate cross-border financial collaboration through the Qianhai pilot zone.
China Merchants Bank has provided a 341 billion yuan fund for 1,186 clients involved i n the i nitiative, which includes cross-border renminbi loans, bilateral bonds and equity i nvestments.
The city has also set up a 10 billion yuan pool to support overseas acquisitions and infrastructure projects.
Cultural companies are also promoting the Going Global development strategy.
Shenzhen Broad Link Cultural & Creative Co Ltd has held exhibitions in Pakistan, Canada and the United States.
“We want to use cuttingedge digital technologies to re-create Chinese culture and expand its influence in the world,” said Joe Ye, managing director of Shenzhen Broad Link.
R&D spending now accounts for about 10 percent of our total expenditure.” Lily Fu, senior acting general sales manager of Motorola Solutions China
The company’s portable communications products range from police radios, business handhelds, to familyfriendly walkie-talkies.
Fu said the China was an important market for Motorola Solutions and she was confident about the company’s growth in the country, adding that China’s 13th Five-Year Plan (2016-20) would also boost its development.
“China is a highly diverse and complex market where we work closely with our customers and partners to clearly understand their challenges in order to design and co-create solutions that meet their specific needs,” Fu said.
Fu added that her company would continue to increase its R&D and innovative resources and enhance the features of its digital mobile radio portfolio.
“R&D spending now accounts for about 10 percent of our total expenditure,” she said.
Currently Motorola’s digital radio systems are deployed in many industries across China, ranging from transportation, the oil and gas industry, to forestry, hospitality and retail sectors.
The company recently conducted a survey of 300 users, which found that reliability, voice quality and battery life were the most important drivers in choosing digital radio technology.
US technology giant Motorola Inc divided its business into the mobile phone division Motorola Mobility and Motorola Solutions in 2011.
Motorola Mobility was acquired by Chinese personal computer maker and smartphone group Lenovo Group Ltd from Google Inc for $2.9 billion in October 2014.
Motorola Solutions, as a global leader in critical communications, was among the first multinational technology companies to set up an office in Chinese mainland in 1987.
According to the company’s earnings results for the first quarter, its sales reached $1.3 billion, up 7 percent from a year ago. It expects revenue growth of 2 to 3 percent in the second quarter compared with the same period last year.
Fu Liang, an independent telecoms expert, said Motorola has a traditional strength in the two-way radio field, but it faces Chinese competitors such as Huawei Technologies Co Ltd and ZTE Corp, which are making efforts in radio communications networks and terminals.