Top Technological Firms to Keep Headquarters in Shenzhen
Shenzhen government is challenging the claims that several top technological firms are planning to move their headquarters out of the city. both Huawei Technologies Co. and ZTE Corp. have assured Mayor Xi Qin that their headquarters and research and development centers will remain in Shenzhen, but these firms are planning to transfer their manufacturing operations to nearby cities.
Huawei and ZTE stated in official letters that they have no intention of moving their headquarters and research and development centers out of the city, but will be shifting some of its manufacturing operations outside of the city as part of their strategic plans that are in accordance with the government policy in optimizing the local industrial structure. Huawei said that this is normal business practice that adjusts to the responsibility of different duties of the company by relocating part of the business to other cities. Huawei has long been setting up different kinds of branches and research institutions across China and overseas for several years now in better support of the company’s plan for global expansion.
Huawei realized that 395 billion yuan in revenue last year, built a manufacturing company in Dongguan Songshanshu Industrial Park in 2012 and since have increased their investment in the city which is only an hour’s drive away from Shenzhen. According to Shenzhen’s mayor, 17,000 manufacturers have closed in the past five years in Shenzhen because of the plans of upgrading the industries by local authorities. Those manufacturing plants that closed were not of top quality and not competitive in the global market.
ZTE is planning to move their manufacturing and processing business for mobile devices to Heyuan, which is 170 kilometers away from Shenzhen. Shenzhen will then become a global innovative center in the years ahead by investing in the research and development in the technology sector in hopes to attract more high end domestic and foreign business in to the city.