Global Times - 21.08.2019

http://www.globaltimes.cn WEDNESDAY AUGUST 21, 2019

BUSINESS

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By Wang Cong

Four decades ago, a small fishing vil-

lage started groundbreaking reform

and opening-up policies that changed

the fate of China. Today, Shenzhen in

South China’s Guangdong Province is

a technology powerhouse that’s being

asked once again to lead the country

into a new era of high-quality growth.

But beyond its long-term signifi-

cance for the country’s future, Shen-

zhen has also become a key ground

for China to tackle tricky issues from a

seemingly never-ending trade and tech-

nological battle with the US to chaos in

the Hong Kong Special Administrative

Region (HKSAR) that’s increasingly

detrimental to the HKSAR’s future.

So it was fitting when the central

government on Sunday released a mas-

ter plan that aims to build Shenzhen

into a “model city” for the country with

global competiveness in a wide range

of areas from technological innovation

to financial services to the legal system

to the environment. To achieve this

goal, the plan promised to carry out

in Shenzhen reforms and opening-up

measures that have never been tested

elsewhere in the country.

“In a way, you can say that this plan

is an answer to the current challenges,”

said Gao Lingyun, an expert at the Chi-

nese Academy of Social Sciences in

Beijing, though he stressed that the

plan – long in the making – serves a

much bigger and longer-term purpose.

Gao, who is familiar with the pro-

cess of the plan, said that the plan could

also prepare the country in the long run

to deal with an increasingly aggressive

US and help boost the Hong Kong’s

economy to address social issues.

Response to US

Shenzhen is at the forefront of the

China-US trade and technology war.

Many Chinese technology companies

targeted by the US crackdown, includ-

ing telecom enterprises Huawei Tech-

nologies and ZTE Corp and dronemak-

er DJI, are based in the city. Electronics

and other products produced in Shen-

zhen have also been hit by the US pro-

tectionist policies.

Seemingly doubling down its crack-

down on Huawei, the US on Monday

added 46 additional organizations af-

filiated with the company to its Entity

List, even as it granted another 90-day

reprieve for Huawei in wake of domes-

tic pressure.

Though the company on Monday

responded by harshly criticizing the

move and saying the US decision will

have no substantial impact on its busi-

ness, CEO Ren Zhengfei acknowledged

the difficulties the company faces. In

a speech posted on Monday, Ren said

that Huawei is in “a life and death” situ-

ation and called for reforms and other

remedial measures.

Huawei’s situation reflects a chal-

lenge for the whole country, as the US

appears determined to contain China’s

rise in crucial technologies of the fu-

ture from 5G to artificial intelligence to

biotech.

But the Shenzhen plan offered a di-

rect response, as it calls for enhanced

research and development in those

areas, better protection of intellectual

property rights and attraction of global

companies and talent.

“While it is unlikely to be a direct

response to the trade war, it has every-

thing to do with what we fight for in

the war: China’s own development,”

said Huo Jianguo, a vice chairman of

the China Society for World Trade Or-

ganization Studies. “The most impor-

tant thing is that we don’t change our

focus on development just because of

the trade war. The plan is proof that we

are on the right track.”

While many are still assessing the

plan and its meaning, the reaction

in the technology sector not only in

Shenzhen but in surrounding cities

has been “very positive,” Chen Liang,

a business owner in the neighoboring

manufacturing hub of Dongguan, told

the Global Times on Tuesday.

“Many companies have been affect-

ed by the US trade war and the mood

here has been low, so this offers much-

needed guidance and a confidence

boost,” said Chen, who is well-connect-

ed in the area.

Help Hong Kong

The plan to boost Shenzhen, which

is in close proximity to Hong Kong,

could also offer opportunities for the

HKSAR, whose economic prospects

have been severely dimmed by recent

riots and chaos.

The Hong Kong economy is already

facing recessionary pressure and offi-

cials have warned of further deteriora-

tion.

Though the central government

has taken a hands-off approach to the

situation in Hong Kong, it continues to

include the HKSAR in major national

economic development plans such as

the Guangdong-Hong Kong-Macao

Greater Bay Area plan, in an appar-

ent bid to ensure long-term prosper-

ity in the city. The plan for Shenzhen,

contrary to speculation that it aims to

replace Hong Kong, also called for fur-

ther integrated development.

“The situation in Hong Kong is very

complicated but ensuring economic

growth will definitely help address

some of the issues,” Gao said. “I think

that’s also a consideration for the plan.”

At a news conference on Tuesday,

Hong Kong Chief Executive Carrie

Lam suggested that the Shenzhen plan

brings opportunities rather than com-

petition (to Hong Kong). Given the

close cooperation between the two cit-

ies, if Shenzhen becomes a model city,

“there will definitely be some benefits

for Hong Kong,” Lam said.

POLICY

Shenzhen key to tech war, HK situation

“In a way, you can say

that this plan is an

answer to the current

challenges.”

Gao Lingyun

Expert at the Chinese Academy of Social

Sciences in Beijing

 Master plan will help beat back US aggression

Page Editor:

[email protected]

The CBD of Futian district in Shenzhen, South China’s Guangdong

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