Page 60 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
in the world by 2035. The document projects that insurance will be upgraded with the launch of a
Shenzhen will be a model city replicated by not only one-stop platform. Sustainable development of the
the rest of the country but also the world. housing market will be ensured through a multi-
layer market including social housing and affordable
Beyond Economic Reforms housing for eligible talent.
Building on the City’s Advantage in Technology □ Government services will be further
decentralized and marketized through negative lists
We noted that the document was drafted in and digitalization of government service interfaces.
accordance with the unique advantages enjoyed Social credit will become part of a government
by the city. First, technology and innovation have regulatory framework as Shenzhen develops into a
always been Shenzhen’s strong suit, and the world-class smart city. The Government will promote
document pledges to reinforce this advantage a law-respecting and law-abiding culture.
through favorable policies and new infrastructure.
Specifically, the document pledges to strengthen □ Shenzhen will launch a business rating
Shenzhen’s foundational research by 1) creation of system through compulsory disclosure of
national-level laboratories in such strategic new areas environmental impacts, a public review system and
as 5G, artificial intelligence, cyberspace technology an environment credit rating system. Farmland and
and biomedical technology; 2) welcoming foreign coastlines will be protected through collaboration
talent through favorable immigration policies; with nearby cities. A low carbon-emission economy
and 3) protecting intellectual property (IP) through will be promoted through green financing and
regulations and establishment of a trading platform technological innovation.
to facilitate IP securitization.
Fig 1 Five focus areas to become a demonstration
Modernize the City’s Economic Structure and area of socialism with Chinese characteristics
Business Environment
Fig 1 Five focus areas to become a demonstration area of socialism with Chinese characteristics
Second, being a demonstration area also means
that Shenzhen must expedite its efforts to improve Shenzhen as a demonstration area of socialism with Chinese characteristics
the city’s business environment. The Government
has pledged to step back to take a more conservative Economic Political Cultural Social Environmental
and flexible regulatory approach to accommodate Innovation Democractic Creation of
innovation and entrepreneurship. This will also Modern and legal Education and Public
enhance the protection of ownership rights, further industry structure urban outlook health care awareness
reform the state-owned enterprise structure, Government and culture
achieve breakthroughs in legal reform, pilot digital services Cultural Social welfare Green urban
currency and partner with Hong Kong and Macao in industry and protection development
financial and logistics market opening. tourism
Ensuring a High Quality of Life Market opening Modern
adminstration
Third, to become a demonstration area of China’s
success, another key aspect is supporting a high Greater Bay
quality of life through public services, rule of law and Area
ecological environment. Specifically, the document
pledged to: Source: Central Committee of the Communist Party of China
□ Launch comprehensive reforms of the oAf pCSihooiunnraeceer: iCnesnttrruacltCuoraml mtraitntesefoormf tahteioCnommunist Party
education and healthcare systems to achieve world-
leading quality of service. Elderly services and social Development bottleneck
We believe that Shenzhen has been chosen as a demonstration area not only due to its track record as a pioneer
in China’s economic reform, but also because after 40 years of largely uninterrupted expansion it is now also at
A Pioneer in Structural Transforma-a crossroads. Its challenges, such as slowing economic growth momentum and resource shortages, are
common among other cities in coastal areas. As such, Shenzhen’s success as a demonstration area will also be
a model for sustainable and high-quality economic growth.
tionShenzhen, first designated as an SEZ in 1979 by the then-leader Deng Xiaoping, is the most successful of its
contemporaries such as Shantou, Xiamen and Zhuhai. In the 10 years between 1987 and 1996, Shenzhen’s
economy expanded at around 28.7% YoY per year, primarily driven by labor-intensive manufacturing with
support from foreign investors, with a strong focus on re-exports. In 1993, the secondary sector (mainly the
Development Bottleneckmanufacturing industry) contributed two-thirds of Shenzhen’s economic growth compared to one-third in more
recent years.
We believe that Shenzhen has been chosen as a
demonstration area not only due to its track record
as a pioneer in China’s economic reform, but also
because after 40 years of largely uninterrupted
expansionitisnow alsoatacrossroads.Itschallenges,
60
in the world by 2035. The document projects that insurance will be upgraded with the launch of a
Shenzhen will be a model city replicated by not only one-stop platform. Sustainable development of the
the rest of the country but also the world. housing market will be ensured through a multi-
layer market including social housing and affordable
Beyond Economic Reforms housing for eligible talent.
Building on the City’s Advantage in Technology □ Government services will be further
decentralized and marketized through negative lists
We noted that the document was drafted in and digitalization of government service interfaces.
accordance with the unique advantages enjoyed Social credit will become part of a government
by the city. First, technology and innovation have regulatory framework as Shenzhen develops into a
always been Shenzhen’s strong suit, and the world-class smart city. The Government will promote
document pledges to reinforce this advantage a law-respecting and law-abiding culture.
through favorable policies and new infrastructure.
Specifically, the document pledges to strengthen □ Shenzhen will launch a business rating
Shenzhen’s foundational research by 1) creation of system through compulsory disclosure of
national-level laboratories in such strategic new areas environmental impacts, a public review system and
as 5G, artificial intelligence, cyberspace technology an environment credit rating system. Farmland and
and biomedical technology; 2) welcoming foreign coastlines will be protected through collaboration
talent through favorable immigration policies; with nearby cities. A low carbon-emission economy
and 3) protecting intellectual property (IP) through will be promoted through green financing and
regulations and establishment of a trading platform technological innovation.
to facilitate IP securitization.
Fig 1 Five focus areas to become a demonstration
Modernize the City’s Economic Structure and area of socialism with Chinese characteristics
Business Environment
Fig 1 Five focus areas to become a demonstration area of socialism with Chinese characteristics
Second, being a demonstration area also means
that Shenzhen must expedite its efforts to improve Shenzhen as a demonstration area of socialism with Chinese characteristics
the city’s business environment. The Government
has pledged to step back to take a more conservative Economic Political Cultural Social Environmental
and flexible regulatory approach to accommodate Innovation Democractic Creation of
innovation and entrepreneurship. This will also Modern and legal Education and Public
enhance the protection of ownership rights, further industry structure urban outlook health care awareness
reform the state-owned enterprise structure, Government and culture
achieve breakthroughs in legal reform, pilot digital services Cultural Social welfare Green urban
currency and partner with Hong Kong and Macao in industry and protection development
financial and logistics market opening. tourism
Ensuring a High Quality of Life Market opening Modern
adminstration
Third, to become a demonstration area of China’s
success, another key aspect is supporting a high Greater Bay
quality of life through public services, rule of law and Area
ecological environment. Specifically, the document
pledged to: Source: Central Committee of the Communist Party of China
□ Launch comprehensive reforms of the oAf pCSihooiunnraeceer: iCnesnttrruacltCuoraml mtraitntesefoormf tahteioCnommunist Party
education and healthcare systems to achieve world-
leading quality of service. Elderly services and social Development bottleneck
We believe that Shenzhen has been chosen as a demonstration area not only due to its track record as a pioneer
in China’s economic reform, but also because after 40 years of largely uninterrupted expansion it is now also at
A Pioneer in Structural Transforma-a crossroads. Its challenges, such as slowing economic growth momentum and resource shortages, are
common among other cities in coastal areas. As such, Shenzhen’s success as a demonstration area will also be
a model for sustainable and high-quality economic growth.
tionShenzhen, first designated as an SEZ in 1979 by the then-leader Deng Xiaoping, is the most successful of its
contemporaries such as Shantou, Xiamen and Zhuhai. In the 10 years between 1987 and 1996, Shenzhen’s
economy expanded at around 28.7% YoY per year, primarily driven by labor-intensive manufacturing with
support from foreign investors, with a strong focus on re-exports. In 1993, the secondary sector (mainly the
Development Bottleneckmanufacturing industry) contributed two-thirds of Shenzhen’s economic growth compared to one-third in more
recent years.
We believe that Shenzhen has been chosen as a
demonstration area not only due to its track record
as a pioneer in China’s economic reform, but also
because after 40 years of largely uninterrupted
expansionitisnow alsoatacrossroads.Itschallenges,
60
