Where Should Shenzhen Go In Information Technology

Shenzhen is famous in China as a Special Economic Zone, so there are a lot of high tech companies located in Shenzhen. People come here from difference provinces; most of them have their own dreams and have ambitions to create world-class companies. One such company, Huawei—one of the biggest telecommunications solutions providers in the world—is a symbol of  Shenzhen.

This is already the old Shenzhen. As China is becoming more and more open, Shenzhen is not special any more. Regarding IT, Shenzhen is way behind Beijing and Shanghai. Beijing has many good internet and media companies like Sina, Sohu and Baidu. Shanghai has SNDA, 9City and many other good gaming companies. Dalian and Chengdu are becoming the software outsourcing cities. What is Shenzhen’s position? Will it just be a manufacturing city?

Shenzhen is receiving serious challenges. First of all, the costs to live here are going higher and higher everyday. That means human resource costs are becoming higher. A lot of people don’t like to live in Shenzhen any more, preferring to move to other cities. Secondly, there is no good University in Shenzhen, which means the city will not have enough talent to build a creative environment. Third of all, Shenzhen cannot attract investments like Shanghai and Beijing did. Where should Shenzhen go in IT?

I think Shenzhen should focus on telecommunications, mobile technology and internet. Forget about B2B, B2C, portal and search engines; forget about becoming an outsourcing city. Shenzhen has it own advantages in this area.

There are several things to focus on:

1. More than 20% of cell phones are made in Shenzhen; that includes the iPhone. Shenzhen is the first choice as a location to build the premier mobile device. You don’t need to go to another city; you can get all your products ready here.

2. There are many good developers working on mobile technology in Shenzhen; they can copy the iPhone in two months. Currently, they are copying ideas from other people, but one day they will create their own.

3. Huawei and ZTE are the top telecommunications solutions providers in the world. That means Shenzhen can control the chain of the telecommunications and mobile internet. Don’t be surprised if these two companies create their own internet one day.

4. Shenzhen is a young city; all the young people here are willing to try to new things. If there are any new products or software available, Shenzhen will be the best market to go to.

I hope we can see more  mobile devices made in Shenzhen; and more amazing applications we can use for communication, entertainment and business. This is just one area Shenzhen should use more resources to develop. The local government should have a better policy and support for the start-ups. Of course, that can be another direction. For now, Shenzhen just need to focus.

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