For those who are unfamiliar with the name, Shenzhen is one of the most important cities in the Pearl River Delta, which is one of the most populated regions on the entire planet. For proof, look no further than the fact that the region is home to more than a 100 million residents, which is close to a third of the total population of the United States. However, it should be noted that there is much more to Shenzhen and the rest of the Pearl River Delta than their population numbers, as shown by the fact that Shenzhen was one of the first special economic zones set up by the Chinese government.
In short, the special economic zones of China are regions that have more flexible rules and regulations that are intended to make them more appealing to both Chinese and non-Chinese businesses. As a result, it should come as no surprise to learn that the special economic zones of China received the lion’s share of the rewards of China’s economic expansion, which has had an enormous effect on their current state. For example, Shenzhen and the rest of the Pearl River Delta is considered to be one of the most dynamic regions in the whole of China, so much so that some are suggesting that it might become a super-sized version of the Bay Area at some point in the future. Something that is intended as a reference to the tech companies that are clustered in Silicon Valley.
Could Shenzhen Become the Next Bay Area for Tech?
It is impossible to predict whether Shenzhen and the rest of the Pearl River Delta will become a super-sized version of the Bay Area or not. After all, no one can predict the future with perfect accuracy, particularly not when it comes to something so complicated. However, there are a number of reasons to believe that this might not be an impossible outcome.
For example, it should be noted that there are strong signs that China has started the transition from a manufacturing economy to a service economy. One excellent example is how the service sector now makes up more than half of the Chinese economy. However, the stronger evidence might be the fact that the service sector is now responsible for the biggest share of economic growth that is happening in China, meaning that it promises to become more and more important as time passes. Regardless, the Chinese economy’s transition from a manufacturing economy to a service economy is important because it means that there are more and more successful Chinese tech companies out there.
In fact, some successful Chinese tech companies might have rather familiar names. One example is Huawei, which is the single biggest manufacturer of telecommunications equipment that can be found in the entire world. Meanwhile, another example is Tencent, which produces a huge volume of Internet-related products and services. So far, most of these tech companies are still best-known in China, but in recent times, a lot of them have been making progress when it comes to carving out their shares of the international market.
Shenzhen is relevant because it is home to a significant number of China’s most successful tech companies. For example, both Huawei and Tencent have their headquarters situated in Shenzhen, which is something that they share with a number of other successful Chinese tech companies. Furthermore, it should be noted that even those Chinese tech companies that aren’t headquartered in Shenzhen often have important operation centers situated there because of Shenzhen’s status as a major transportation hub. Finally, it should be mentioned that a lot of foreign tech companies have their Chinese headquarters located in Shenzhen as well, which is a direct result of the special economic zone’s attractive business policies.
Summed up, Shenzhen possesses the ability to support a huge concentration of tech companies, as shown by the sheer number of both Chinese and non-Chinese tech companies that operate there right now. As a result, as the Chinese economy continues to mature, it is not unreasonable to speculate that Shenzhen could become more and more important as a tech center not just in China but also throughout the rest of the world. Granted, nothing is guaranteed, but considering how the Chinese economy has continued to produce respectable numbers in spite of constant doomsaying over the decades, Shenzhen’s chances of becoming the Greater Bay Area are looking pretty good.