Shenzhen special economic zone aims to be 5 times bigger

BEIJING, May 22 -- The Shenzhen government has drawn up a blueprint to expand the country's first special economic zone (SEZ) to the whole city - as a restructuring strategy to increase its competitiveness amid the economic downturn.

The Shenzhen government has drawn up a blueprint to expand the country's first special economic zone (SEZ) to the whole city - as a restructuring strategy to increase its  competitiveness amid the economic downturn.(Photo: Chinadaily)

"Legislators are working on the proposal to expand the scope of Shenzhen SEZ to the whole city, but it needs the approval of the State Council," an official with the legislative affairs office of the Shenzhen People's Congress, who did not want to be identified, told China Daily on Thursday.

Earlier this month, the State Council added the city to the list of two more areas to pilot comprehensive reforms. But "important reforms regarding the scope of the SEZ, land and finance should get approval case by case," the document specifies.

If the proposal is approved, Bao'an and Longgang districts, which make up four-fifths of the city's land mass, will become part of the SEZ, whose area will swell from the current 395.81 sq km to more than 1,900 sq km.

"In the face of the economic downturn, the SEZ has been retooling its strategy to bring in more high-tech enterprises in place of labor-intensive industries.

The economic restructuring will sharpen its competitive edge," explained Cheng Jiansan, an economist with the Guangdong Academy of Social Sciences.

In the land-strapped SEZ, where the government also needs to develop commercial facilities and green areas for residents, IT enterprises like Huawei have hardly any room for expansion, he said.

Huawei is moving its production base to Longgang district, which is not yet part of the SEZ. "But, if in the future, Longgang district becomes part of the SEZ, IT companies like Huawei will be able to enjoy preferential policies like lower income tax," he said.