Xi Jinping Visits Shenzhen District on the 13th..."Designated as a Socialist Pilot Demonstration Zone"

Celebrating the 40th Anniversary of Shenzhen Special Economic Zone Designation: Showcasing Reform and Opening-up Achievements
Chinese State Council Announces "Relaxation of Shenzhen Overseas Capital Regulations" Measures

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese President Xi Jinping is expected to visit the Shenzhen Special Economic Zone in Guangdong Province as early as tomorrow to showcase the achievements of his reform and opening-up policy both domestically and internationally. This will be Xi’s first visit to Shenzhen since October 2018. The timing is particularly notable as it comes two weeks before the 5th Plenary Session of the 19th Central Committee of the Chinese Communist Party (19th 5th Plenary Session).

According to the South China Morning Post (SCMP) in Hong Kong on the 12th, President Xi will visit the region on the 13th to commemorate the 40th anniversary of the Shenzhen Special Economic Zone. It is highly likely that Hong Kong officials, including Chief Executive Carrie Lam, will accompany him on this visit.

This appears to be related to the Chinese government’s designation of Shenzhen, Guangdong Province?known as the “number one place for reform and opening-up” and a “hub of advanced technology”?as a pilot demonstration zone for socialism. Following its development as a symbol of reform and opening-up, China plans to apply socialist-style development here, drawing attention to the direction of this initiative.

On the 12th, according to the state-run People’s Daily and Xinhua News Agency, the General Office of the State Council announced the “Comprehensive Reform Implementation Plan for Building Shenzhen into a Pilot Demonstration Zone of Socialism with Chinese Characteristics.” This plan includes Shenzhen’s development blueprint for the next five years starting this year.

The People’s Daily reported on its front page that “Shenzhen has been a model of reform and opening-up that created the history of China’s economic development,” and “going forward, it will become a pilot demonstration zone of socialism with Chinese characteristics.” Both People’s Daily and Xinhua stated that the Chinese government plans to establish the basic system by 2022, conduct pilot operations, and complete the fundamental pilot work by 2025. The government’s basic policy is to expand Shenzhen’s successful model across the entire country.

The designation of Shenzhen as a pilot demonstration zone for socialism is interpreted as significant because it presents a new development direction. Shenzhen is a representative special economic zone developed by Deng Xiaoping, the architect of China’s reform and opening-up. In August 1980, the Chinese government designated three locations in Guangdong Province?Shenzhen, Zhuhai, and Shantou?as special economic zones.

Forty years after being designated as a special economic zone, the Chinese government has concretized plans to remodel Shenzhen into China’s “hub of advanced technology and innovation.” To this end, substantial investments are being made to complete IT infrastructure, including the deployment of 5th generation mobile communication networks (5G) throughout the city. According to the government’s announced plan, Shenzhen will be developed primarily on the premise of internationalization and openness. Additionally, strategies to maximize the synergy effects between Shenzhen and neighboring Hong Kong are also being discussed.

To facilitate this, the Chinese government will reform the land management system by delegating land-use conversion approval authority to the Shenzhen municipal government. This grants Shenzhen the right to approve land development, excluding permanent basic farmland. Labor mobility will also be improved to suit the characteristics of a major city. The household registration system will be reformed to increase labor flexibility and mobility, meaning that labor supply will be sufficiently ensured.

Regulations will be relaxed to attract foreign capital inflows. A financial innovation platform will be established to facilitate the entry of domestic and foreign capital such as private equity funds, venture capital, and real estate funds.

In particular, plans have been made to test the digital yuan within Shenzhen through the Digital Currency Research Institute of the People’s Bank of China, the country’s central bank, aiming to make Shenzhen a forward base for digital currency usage. In line with the plan to develop Shenzhen as a hub of advanced technology and innovation, foundational systems for data intellectual property protection and personal information protection will also be established. A data trading market will be fostered, and corresponding accounting procedures will be put in place.

Chinese authorities, led by President Xi and the Central Committee of the Communist Party, decided in August last year to build pilot demonstration zones of socialism with Chinese characteristics and have conducted a year-long study on Shenzhen’s development.

SCMP, citing mainland sources, reported that “when President Xi visits Shenzhen, he will reiterate China’s commitment to continuous opening-up,” and that Shenzhen’s development plan is related to Hong Kong’s development.

This content was produced with the assistance of AI translation services.