Lin Min

linmin67@hotmail.com

WHEN Shenzhen was named a special economic zone 43 years ago, it was tasked with blazing a trail for a poverty-stricken nation with a broken industrial system. Four years ago this Friday, it was designated as a pilot demonstration zone for socialism with Chinese characteristics — in short, to serve as a model for Chinese modernization.

For most cities, or even individuals, four years would not make a noticeable difference. But in Shenzhen’s tech world, it is a sea change.

Only four years ago, BYD sold 229,500 new energy vehicles (NEVs) a year. In the first half of this year, it managed to sell a staggering 1.25 million units of NEVs. On Aug. 9, the company reached an impressive milestone as its 5 millionth NEV rolled off the production line.

BYD now stands as a global leader in electric car and battery technology, embodying Shenzhen’s success in nurturing emerging strategic industries. Another Shenzhen-based company, Mindray, a global leader in providing advanced medical device solutions, reported 18 billion yuan (US$2.49 billion) in revenue in the first six months of this year, after its revenue grew to 30.37 billion yuan in 2022. In 2019, the figure was 16.56 billion.

DJI, the world’s largest manufacturer of civilian drones, experienced a remarkable surge in operating revenue from over 25.50 billion yuan in 2019 to an astonishing 170 billion in 2022.

To gain a broader perspective, the added value of emerging strategic industries in Shenzhen skyrocketed from 1.0155 trillion yuan in 2019 to 1.33 trillion in 2022, a 32.69% growth in just four years. Shenzhen is currently home to over 23,000 companies accredited as national high-tech firms. For 19 consecutive years, Shenzhen has maintained its position as the top city in China for PCT patent applications, exemplifying the role of indigenous innovation in driving the city’s economic and industrial development.

Beyond these lifeless figures, as residents, we personally experience the profound changes tech innovation in this city has brought to our lives. In parts of the city, we now have the luxury of riding in a driverless taxi. We are able to own a world-class electric car produced by BYD at a much lower price than in other parts of the world.

In some neighborhoods, we are able to order a takeout meal delivered by a drone. And of course, backed by fiscal revenue from fast-growing industries, the city is able to put on a new face almost every day, with new Metro lines, new parks, renovated communities, new schools, and new hospitals serving hardworking citizens who deserve a better life.

As the name “pilot demonstration zone” implies, Shenzhen shoulders the task of exploring new ways and setting an example for other cities to follow.

Over the years Shenzhen has provided generous incentives to cultivate technological innovation and has created an ideal environment where innovation thrives and innovators are rewarded. In June 2022, Shenzhen issued a directive outlining support for the development of 20 emerging strategic industrial clusters and eight future industries.

In recent months, Western media outlets and China naysayers in the West have been badmouthing the country’s economic prospects, claiming it is on the verge of experiencing Japan-style lost decades, as China is facing economic headwinds as manifested in a troubled housing market, rising unemployment, decreasing foreign trade, and other problems.

There is no doubt that the decades of rapid growth fueled by soaring exports, a booming property market, and extensive infrastructure construction are now a bygone era. China is now at a critical juncture for avoiding falling into the “middle-income trap.”

Shenzhen, now pursuing high-quality growth with all-out effort, can offer valuable experience for the country to find new economic engines and models.

The flourishing emerging industries in Shenzhen show that technological innovation is key to the future of China’s economic growth and epitomize the true meaning of high-quality development. They also embolden the country to rely on itself in technological development and stave off the United States’ tech stranglehold.

(The author is a deputy editor-in-chief of Shenzhen Daily.)