Shenzhen: China's Pathfinder to International Competition

Shenzhen Special Economic Zone (SEZ) in south China has been striving to participate in international competition, following Deng Xiaoping's instruction of "fighting one's way out of a hard environment" some 20 years ago, when he proposed to establish the economic zone.

Zhang Gaoli, secretary of the CPC Shenzhen Municipal Committee, pointed out that in the light of economic globalization, China should advocate its opening up policy to a wider extent as the nation prepares to enter the World Trade Organization (WTO).

Local enterprises are now encouraged to leave the territory to explore the world market through all kinds of business cooperation with foreign investors.

Zhang led a business group to visit Kenya, Zimbabwe and Mauritius in Africa this year, for the purpose of investigating the local investment environment and the business prospects there.

Large companies in Shenzhen, such as Konca Electronic Group Co. Ltd, Huawei Technology Co. Ltd and Zhongxing Telecom Co. Ltd, export technology and equipment and operate processing industry in India, Pakistan, Russia and some other countries.

"It's not enough to just do business within the country", said Li Tingsong from the international advertising department of Huawei, "our products have entered over 30 countries, thanks to the company's efforts in exploring the world market."

"We expect more opportunities than challenges after China joins the WTO", said Li.

Huawei invests over 10 percent of its annual sales income in product development and more than 40 percent of its total employees are engaged in the research and development process.

The local banking industry also attaches great importance to business performance in the world market. Banks in Shenzhen SEZ have involved themselves in international competition since the 1980s with high quality products and services, according to Yan Xuewang, vice director of the Shenzhen-based China Merchants Bank.

Last year the bank initiated an on-line banking service system for enterprises and local residents. So far, the Merchants Bank has established business cooperation with over 630 world banks and it has been ranked among the world's top 300 large banks by the British magazine of the Banker.

"Chinese banks may have more opportunities to jointly operate large loan projects with foreign banks after China's accession into the WTO", said Yan.

Shenzhen is accelerating the speed of adjustment in its industrial structure. The high-tech industry has now become the most rapid growth sector of the local economy.

The production value of the local high-tech sector recorded more than 80 billion yuan (nearly 10 billion US dollars) last year, accounting for 40.5 percent of Shenzhen's gross industrial output value.

Shenzhen started the operation of a venture capital last year, in an attempt to foster the local capital market for the development of high-tech industry in foreign countries.



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