Shenzhen: from the 30,000th village to the 11 millionth city of the future
In the late 1970s, 30 thousand people lived in the Chinese village of Shenzhen. The basis of the economy was fishing, and to the west of the city mined salt. Of the advantages of the village was only convenient for trade location of the port in the Pearl River Delta.
Today it is the 11 millionth city where Apple phones are made, where Samsung, Huawei, ZTE, Lenovo factories are located, where in the market you can buy all the components and assemble an iPhone for a hundred dollars. This is one of the most technologically advanced cities in the world with a developed production and innovative ecosystem aimed at copying, reproducing and creating new technologies. The idea of ​​communities is implemented here, incubators work, and foreign investments flow into this city to China.
I propose to talk about the policy that led to the creation of Shenzhen, the development institute responsible for this, and the existing innovation ecosystem in the city, which was created under the conditions of communism.
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Pingan International Finance Center (Pingan International Finance Center) is on the 4th line in the ranking of the highest skyscrapers
In the late 1950s, Mao Zedong in China launched the “ Great Leap ” economic and political campaign. The authorities are absolutely agrarian at the time the country set a plan for fifteen years to build an industrial economy - for example, to increase steel production by 10 times and overtake the UK on this indicator, as well as to raise agriculture. People were divided into communes in which workdays were used instead of money.
The main role in the smelting of metal was given to the peasants. Workshops have appeared all over the country, where in small clay ovens workers without any knowledge and experience made low-quality cast iron, suitable only for plows and hoes. But there was not enough time and energy for farming in the communes. Success reports were tampered with.
Coal consumption for metallurgy caused interruptions in electricity. In some regions, because of this, light industry enterprises were closed.
Chinese peasants melt cast iron
Problems with agriculture were aggravated by the use of the developments of the Soviet academician Lysenko, the founder of the pseudoscientific direction of Michurin agrobiology. Seeds were planted deeply with the expectation that they would avoid competition with other plants. As a result, they did not germinate. Due to the mass extermination of sparrows, launched "from above", the population of insects that destroyed crops. And in 1960 there was a drought.
The result - about 45 million deaths for the years 1958-1962 .
One of the politicians who tried to correct the mistakes of the “Great Leap Forward” was Deng Xiaoping . In 1976, after the death of Mao, he became the de facto leader of China. Xiaoping began to hold meetings with Western leaders and establish diplomatic relations with other countries. Inside China, as an experiment, he founded a special economic zone in Shenzhen.
In China in the late 1970s, they began to pursue a policy of reform and openness. In the West, it was perceived as a transition to capitalism. The government empowered local managers and allowed international trade and foreign investment.
In 1979, the law “On Chinese-foreign joint venture capital enterprises” was passed, and in 1988, on “On Chinese-foreign joint cooperation enterprises”. In the first case, a legal entity, similar to a Russian LLC, CJSC or JSC, is necessarily created, and the profit is distributed in proportion to the capital contributions. In the second case, you can do without the creation of a legal entity, distribute profits as agreed, and instead of contributing to the share capital, use cooperative conditions - for example, the right of access to the market.
The enterprise of the Chinese-foreign joint capital is created for 30 years, and then this period can be extended by receiving a special decision of the State Council of the PRC.
Shenzhen in 1979
Deng Xiaoping, on his policy of reform and openness, said: "Crossing the river, we feel the stones." Shenzhen, a special economic zone since 1980, has become one of such stones. At this test site, the authorities began to test economic transformations. While in all of China, bread and electricity were rationed, money was used in Shenzhen. Here came those who wanted to feel more freedom.
Shenzhen is one of the cities located in the Pearl River Delta . On its territory long before it became a city, the center of the state salt monopoly (3rd century BC), a port for trade in spices, salt and pearls (XIV century), was located. In the 16th century, salt, tea, spices and rice formed the basis of the territory’s economy. In the late 1970s, when Shenzhen had the status of a settlement, 30 thousand people lived in it, mainly engaged in fishing.
Since 1989, the development of the region has been the development institute of China - China Development Institute. About 100 scientists and experts solve issues related to the policy of reform and openness, provide expert support to Chinese and foreign companies and promote new practices in working with the market.
In 2017, the International Financial Center Penan , a 599-meter 115-storey skyscraper, the 4th tallest in the world and 2 tallest in China, were completed in Shenzhen in 2017
In less than 30 years since the start of the China Development Institute, Shenzhen has become China's economic leader, including in the telecommunications industry. Shenzhen attracts foreign investment: Samsung, Foxconn, where they make iPhones and iPads, components for Canon, Sony, Microsoft, Cisco, IBM's research center, and DuPont, PepsiCo, and Hewlett-Packard.
For 2015, Shenzhen is the world's third largest container port in the world, with only ports in Shanghai and Singapore overtaking it.
The population of the agglomeration is 11 million people, and GDP is growing at 9% annually. But what is especially interesting is that Shenzhen accounts for half of the patents registered in China.
The Development Institute develops financial and tax measures to stimulate entrepreneurship and production. He also conducts reforms at the local level. Their goal is to simplify the lives of startups and businessmen as much as possible: they try to provide services in a “one window”, and to use the intellectual system for tax accounting.
The administrative authorities of Shenzhen have extended powers, the central authorities of China are trying not to interfere in their work. This allows you to quickly respond to situations on the ground, to develop and implement new ways to support companies. If successful, such practices are transferred to other regions.
Shenzhen is one of the most technologically advanced cities in the world according to Tech Insider. It collects 90% of household appliances in the world .
The influx of people in the opinion of the executive vice president of the China Development Institute, Wanda Guo, is one of the most important factors for high-tech industries. In 1990, the city’s population was 875,000, and in 2014 it reached 10,680,000. In terms of population growth, Shenzhen is among the top five cities. People come to the city for a new experience, a profession, to open startups.
Shenzhen began with the production of the simplest products. The main focus was on simple mass production. Then he faced competition from other Chinese cities in which they implemented practices that successfully worked in Shenzhen. Cities competed in production, and Shenzhen needed to be ahead of them again. Then the government began to make “Silicon Valley” out of it, supporting not so much production as innovation.
Boji's factory in Shenzhen , which, according to data for 2006, exported 1.6 million Christmas trees to the USA
Some entrepreneurs start with a simple copy, but eventually comes to unique products. Counterfeits are called the word “shanzhai”, which means “mountain fortress” - this is what the gangster lair was called. Russian equivalent of "pirates". Such people in China are the most “innovative” and “creative”; they disassemble a foreign product, copy it and sell it at times cheaper. In Shenzhen, there is room for experimentation: you can buy any components on the market, and if they are not available, you can make them to order at one of the production sites. The focus of "Shanzhaya" shifted from copying products of well-known brands to create new products that are sold throughout the world.
Workers at the Foxconn factory, where they produce iPhones, iPads, accessories for Playstation, Wii,
Xiaomi, Huawei, Intel and Cisco
In the center of Shenzhen is the most famous electronics market in southern China - Huachbei (HuaQiangBei) . On several blocks they sell phones, speakers, computers, covers and accessories, from which, probably, you can assemble even a huge humanoid robot. There are original new parts, parts from used phones, there is a huge amount of fakes. Here you can assemble your iPhone 6S 16GB.
The world's largest hardware accelerator is based in Shenzhen and San Francisco, which accepts projects at the seed stage - HAX . Start-ups after passing through the accelerator claim for $ 100,000 of investments for 10% of the capital. HAX helps with design, engineering, and expert support. Start-ups are helped by the fact that the accelerator is located near real production, which shortens the delivery time of almost any parts: in the morning the order is delivered in the evening. A test batch of products comes in a few days, not months, as in most other regions or countries. As a result, start-ups in HAX need 3 months before entering the market, when in Europe it would take 9 months.
The production unit with which HAX works. A source
The city has a developed community makers. In hubs like X.Factory , people gather to learn new skills in the design and manufacture of wood, metal and plastic products, using equipment from saws to a 3D printer. Every year since 2014, Maker Faire has been held in Shenzhen. Among the visitors of such events is Sexy Cyborg , about which several times already wrote on Geektimes. Below is a fresh video from her in 360 format from the Maker Week Expo in Shenzhen, a great tour.
The growing solvency of the population, the influx of people from other cities and causes an increase in demand for education, entertainment and tourism.
Sexy Cyborg, enthusiast designer
Successful strategies of decentralization of power and stimulation of entrepreneurship and production in Shenzhen have been developed in other regions - Xiamen, Zhuhai, Shantou and Hainan special economic zones. Shenzhen needed to cope with the competition of other Chinese cities in terms of production, and the authorities decided to develop innovations in it. The government pushes production outside of Shenzhen to bring it into the category of City 3.0 - a center of knowledge, technology and education.
Today it is the 11 millionth city where Apple phones are made, where Samsung, Huawei, ZTE, Lenovo factories are located, where in the market you can buy all the components and assemble an iPhone for a hundred dollars. This is one of the most technologically advanced cities in the world with a developed production and innovative ecosystem aimed at copying, reproducing and creating new technologies. The idea of ​​communities is implemented here, incubators work, and foreign investments flow into this city to China.
I propose to talk about the policy that led to the creation of Shenzhen, the development institute responsible for this, and the existing innovation ecosystem in the city, which was created under the conditions of communism.
')
Pingan International Finance Center (Pingan International Finance Center) is on the 4th line in the ranking of the highest skyscrapers
Prerequisites
In the late 1950s, Mao Zedong in China launched the “ Great Leap ” economic and political campaign. The authorities are absolutely agrarian at the time the country set a plan for fifteen years to build an industrial economy - for example, to increase steel production by 10 times and overtake the UK on this indicator, as well as to raise agriculture. People were divided into communes in which workdays were used instead of money.
The main role in the smelting of metal was given to the peasants. Workshops have appeared all over the country, where in small clay ovens workers without any knowledge and experience made low-quality cast iron, suitable only for plows and hoes. But there was not enough time and energy for farming in the communes. Success reports were tampered with.
Coal consumption for metallurgy caused interruptions in electricity. In some regions, because of this, light industry enterprises were closed.
Chinese peasants melt cast iron
Problems with agriculture were aggravated by the use of the developments of the Soviet academician Lysenko, the founder of the pseudoscientific direction of Michurin agrobiology. Seeds were planted deeply with the expectation that they would avoid competition with other plants. As a result, they did not germinate. Due to the mass extermination of sparrows, launched "from above", the population of insects that destroyed crops. And in 1960 there was a drought.
The result - about 45 million deaths for the years 1958-1962 .
One of the politicians who tried to correct the mistakes of the “Great Leap Forward” was Deng Xiaoping . In 1976, after the death of Mao, he became the de facto leader of China. Xiaoping began to hold meetings with Western leaders and establish diplomatic relations with other countries. Inside China, as an experiment, he founded a special economic zone in Shenzhen.
Money instead of cards
In China in the late 1970s, they began to pursue a policy of reform and openness. In the West, it was perceived as a transition to capitalism. The government empowered local managers and allowed international trade and foreign investment.
In 1979, the law “On Chinese-foreign joint venture capital enterprises” was passed, and in 1988, on “On Chinese-foreign joint cooperation enterprises”. In the first case, a legal entity, similar to a Russian LLC, CJSC or JSC, is necessarily created, and the profit is distributed in proportion to the capital contributions. In the second case, you can do without the creation of a legal entity, distribute profits as agreed, and instead of contributing to the share capital, use cooperative conditions - for example, the right of access to the market.
The enterprise of the Chinese-foreign joint capital is created for 30 years, and then this period can be extended by receiving a special decision of the State Council of the PRC.
Shenzhen in 1979
Deng Xiaoping, on his policy of reform and openness, said: "Crossing the river, we feel the stones." Shenzhen, a special economic zone since 1980, has become one of such stones. At this test site, the authorities began to test economic transformations. While in all of China, bread and electricity were rationed, money was used in Shenzhen. Here came those who wanted to feel more freedom.
Shenzhen is one of the cities located in the Pearl River Delta . On its territory long before it became a city, the center of the state salt monopoly (3rd century BC), a port for trade in spices, salt and pearls (XIV century), was located. In the 16th century, salt, tea, spices and rice formed the basis of the territory’s economy. In the late 1970s, when Shenzhen had the status of a settlement, 30 thousand people lived in it, mainly engaged in fishing.
Since 1989, the development of the region has been the development institute of China - China Development Institute. About 100 scientists and experts solve issues related to the policy of reform and openness, provide expert support to Chinese and foreign companies and promote new practices in working with the market.
In 2017, the International Financial Center Penan , a 599-meter 115-storey skyscraper, the 4th tallest in the world and 2 tallest in China, were completed in Shenzhen in 2017
The role of the development institution
In less than 30 years since the start of the China Development Institute, Shenzhen has become China's economic leader, including in the telecommunications industry. Shenzhen attracts foreign investment: Samsung, Foxconn, where they make iPhones and iPads, components for Canon, Sony, Microsoft, Cisco, IBM's research center, and DuPont, PepsiCo, and Hewlett-Packard.
For 2015, Shenzhen is the world's third largest container port in the world, with only ports in Shanghai and Singapore overtaking it.
The population of the agglomeration is 11 million people, and GDP is growing at 9% annually. But what is especially interesting is that Shenzhen accounts for half of the patents registered in China.
The Development Institute develops financial and tax measures to stimulate entrepreneurship and production. He also conducts reforms at the local level. Their goal is to simplify the lives of startups and businessmen as much as possible: they try to provide services in a “one window”, and to use the intellectual system for tax accounting.
The administrative authorities of Shenzhen have extended powers, the central authorities of China are trying not to interfere in their work. This allows you to quickly respond to situations on the ground, to develop and implement new ways to support companies. If successful, such practices are transferred to other regions.
Ecosystem
Shenzhen is one of the most technologically advanced cities in the world according to Tech Insider. It collects 90% of household appliances in the world .
The influx of people in the opinion of the executive vice president of the China Development Institute, Wanda Guo, is one of the most important factors for high-tech industries. In 1990, the city’s population was 875,000, and in 2014 it reached 10,680,000. In terms of population growth, Shenzhen is among the top five cities. People come to the city for a new experience, a profession, to open startups.
Shenzhen began with the production of the simplest products. The main focus was on simple mass production. Then he faced competition from other Chinese cities in which they implemented practices that successfully worked in Shenzhen. Cities competed in production, and Shenzhen needed to be ahead of them again. Then the government began to make “Silicon Valley” out of it, supporting not so much production as innovation.
Boji's factory in Shenzhen , which, according to data for 2006, exported 1.6 million Christmas trees to the USA
Some entrepreneurs start with a simple copy, but eventually comes to unique products. Counterfeits are called the word “shanzhai”, which means “mountain fortress” - this is what the gangster lair was called. Russian equivalent of "pirates". Such people in China are the most “innovative” and “creative”; they disassemble a foreign product, copy it and sell it at times cheaper. In Shenzhen, there is room for experimentation: you can buy any components on the market, and if they are not available, you can make them to order at one of the production sites. The focus of "Shanzhaya" shifted from copying products of well-known brands to create new products that are sold throughout the world.
Workers at the Foxconn factory, where they produce iPhones, iPads, accessories for Playstation, Wii,
Xiaomi, Huawei, Intel and Cisco
In the center of Shenzhen is the most famous electronics market in southern China - Huachbei (HuaQiangBei) . On several blocks they sell phones, speakers, computers, covers and accessories, from which, probably, you can assemble even a huge humanoid robot. There are original new parts, parts from used phones, there is a huge amount of fakes. Here you can assemble your iPhone 6S 16GB.
The world's largest hardware accelerator is based in Shenzhen and San Francisco, which accepts projects at the seed stage - HAX . Start-ups after passing through the accelerator claim for $ 100,000 of investments for 10% of the capital. HAX helps with design, engineering, and expert support. Start-ups are helped by the fact that the accelerator is located near real production, which shortens the delivery time of almost any parts: in the morning the order is delivered in the evening. A test batch of products comes in a few days, not months, as in most other regions or countries. As a result, start-ups in HAX need 3 months before entering the market, when in Europe it would take 9 months.
The production unit with which HAX works. A source
The city has a developed community makers. In hubs like X.Factory , people gather to learn new skills in the design and manufacture of wood, metal and plastic products, using equipment from saws to a 3D printer. Every year since 2014, Maker Faire has been held in Shenzhen. Among the visitors of such events is Sexy Cyborg , about which several times already wrote on Geektimes. Below is a fresh video from her in 360 format from the Maker Week Expo in Shenzhen, a great tour.
The growing solvency of the population, the influx of people from other cities and causes an increase in demand for education, entertainment and tourism.
Sexy Cyborg, enthusiast designer
Future of the city
Successful strategies of decentralization of power and stimulation of entrepreneurship and production in Shenzhen have been developed in other regions - Xiamen, Zhuhai, Shantou and Hainan special economic zones. Shenzhen needed to cope with the competition of other Chinese cities in terms of production, and the authorities decided to develop innovations in it. The government pushes production outside of Shenzhen to bring it into the category of City 3.0 - a center of knowledge, technology and education.
Source: https://habr.com/ru/post/373823/
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