Shenzhen Possible to Top Hong Kong Based on Gross Domestic Product
A recent report from Bloomberg that Shenzhen might overtake Hong Kong based on Gross Domestic Product. For the first quarter of the year Shenzhen reported a 7.8 percent increase in Gross Domestic Product therefore topping even the biggest Chinese cities. There is no more shadow of a model of cheap labor and foreign investment that was pioneered by Deng Xiaoping is driven by a newer force that is replicated across China by Premier Li Keqiang.
Deng Xiaoping used Shenzhen as a testing ground for a market based economy in 1980 and has succeeded beyond his expectations, for example in Nanshan district which is considered the technology heartland of the city the per capita Gross Domestic Products was at 308,700 yuan which is higher than Japan, Hong Kong and Germany. Furthermore Shenzhen is home to a majority of China’s successful companies such as Tencent Holdings Ltd., Ping An Insurance Group and Huawei Technologies.
While places in the rust belt found in the northern or coal mine area of Shanxi are almost in economic stagnation, Shenzhen offers a new hope as its growth is relying on innovation, efficient use of capital and technology. The change in to innovation and finance has helped the city’s economy double in size in just five years at the rate it is going it will possibly overtake Hong Kong whose economy have slowed down.
Behind the growth in Shenzhen are several companies such as SZ DJI Technology CO., a maker of phantom drones and One Plus a smart phone manufacturer that is rapidly taking on Samsung and Apple.