Shenzhen's reforms open up opportunities

As a trailblazer of China's reform and opening-up, Shenzhen in Guangdong province has been tasked with exploring innovative approaches in talent cultivation, technology advancements and institutional models, providing replicable templates for the rest of the country.

The general offices of the Communist Party of China Central Committee and the State Council unveiled guidelines in June aimed at further advancing comprehensive reforms in Shenzhen, and pushing for greater innovation and opening-up in the city.

According to the guidelines, Shenzhen will introduce measures that focus on breaking through institutional barriers in education, technology and talent development, strengthening the deep integration of innovation, industrial, capital and talent chains, and expanding new pathways, scenarios and platforms for cooperation between Guangdong, Hong Kong and Macao.

Back in 2020, China launched a five-year plan to turn Shenzhen into a demonstration zone for comprehensive reform. From 2022 to last year, the National Development and Reform Commission promoted various innovative initiatives across the country learned from Shenzhen's trials.

Shenzhen's GDP grew from 2.78 trillion yuan ($387.5 billion) in 2020 to 3.68 trillion yuan last year, at an average annual increase of 5.5 percent. Total social research and development investment in the city has increased from 151.08 billion yuan in 2020 to 223.66 billion yuan in 2023, an average annual growth of 13.9 percent, data from the local government showed.

"The newly issued guidelines are an upgraded version of those released in 2020, and also an important statement of China's unwavering determination to deepen reform and opening-up," said Li Chunlin, deputy head of the National Development and Reform Commission.

Key measures in Shenzhen's latest reform package include joint university-enterprise programs to nurture skilled tech talent, allowing Hong Kong-listed firms to go public in Shenzhen, implementing international trade innovations like electronic documents, and expanding the use of digital renminbi in more scenarios, according to Li.

These measures are not just about Shenzhen's own development, but are also intended to set new benchmarks that can be replicated elsewhere in China, Li said.

As artificial intelligence and the low-altitude economy experience a boom, the new guidelines have made specific reform deployments focused on these emerging sectors.

Shenzhen has nurtured over 2,600 major AI enterprises and enacted China's first local legislation on the low-altitude economy. The city has launched nearly 300 drone routes with over 1.7 million cargo flights, according to Qin Weizhong, the city's mayor.

The innovation ecosystem is thriving, with R&D input accounting for 6.46 percent of Shenzhen's GDP in 2023. Home to over 25,000 national high-tech enterprises, the city has led the country in patent authorizations for the last seven years, with 241,900 patents granted in 2024.

For the low-altitude economy, Shenzhen has pioneered the country's first local specialized regulation, Qin said, noting that the city is actively promoting full-coverage, integrated air-space-ground low-altitude perception facilities across the city.

"Shenzhen has the foundation, conditions and capability to lead in building a comprehensive innovation system," said Zhang Hu, executive vice-governor of Guangdong province, noting that the well-timed guidelines will inject powerful momentum into Shenzhen's sci-tech structural reform.