Shenzhen still on the frontline of reform and opening-up

ACCORDING TO SHENZHEN STATISTICS BUREAU, Shenzhen’s GDP growth rate in the first three quarters of 2019 declined to 6.6 percent, lower than expected. However, we should not worry too much about the decline in Shenzhen’s GDP growth rate in the short term considering the city’s economic resilience and the support offered by the plan to establish the Guangdong-Hong Kong-Macao Greater Bay Area. China Daily writer Wang Yiqing comments:

As the most successful domestic city, thanks to its pioneering role in reform and opening-up, Shenzhen’s economic slowdown has drawn wide public concern. Over the past four decades, Shenzhen’s average economic growth rate has been more than 20 percent, and as a result its per capita GDP ranks first among all the major cities in China.

But given the global economic situation, it is unreasonable to expect Shenzhen to maintain the same high growth rate as before, especially considering that as an important import-export trade city it has been seriously affected by the Sino-US trade conflict.

Yet even though Shenzhen’s economic growth is slower than it was, the city’s growth rate is still higher than the national average level and higher than that of Beijing and Shanghai.

The decline in Shenzhen’s GDP growth has much to do with its industrial adjustment as it is transitioning to high-tech industries and modern services. In this sense, the pain of economic slowdown will promote economic structural adjustment that will ensure economic development in the future.

In February, the State Council, China’s cabinet, released the outline of the plan for the Guangdong-Hong Kong-Macao Greater Bay Area. And in August, the State Council issued a document on supporting Shenzhen to build the pilot demonstration area of socialism with Chinese characteristics. These documents not only set out preferential policies for Shenzhen’s further reform and opening-up, but also creating a better surrounding environment for Shenzhen.

The support of the central authorities and the integrative development of the Guangdong-Hong Kong-Macao Greater Bay Area promises to further promote Shenzhen’s development, so there is no need to worry too much about Shenzhen’s economic prospects in the long run considering its advantages and potential.