More Opportunities for Global Enterprises in Shenzhen: What Does the Future Hold?

More Opportunities for Global Enterprises in Shenzhen: What Does the Future Hold?

Shenzhen has come a long since its days as just another fishing town in China. The economic zones in the city have been a huge influence on its growing economy. These progressive reforms turned the city into one of the main hubs for foreign investment.

It’s no wonder that Chinese leaders have referred to the city as a “miracle” as it continues to become a center of China’s technological development. The increase in resident population from just 30,000 in 1979 to nearly 13 million in 2019 has only boosted industrial growth and created countless opportunities for job seekers, entrepreneurs and investors.

Where Does Shenzhen Stand Right Now?

In December 2019, the city signed 128 investment deals worth USD $80 billion (560 billion yuan) to attract foreign corporations and truly convert Shenzhen into a powerhouse of South China.

Let’s take a look at a few changes that Shenzhen is making to become a global city of the future.

Industrial Land

Currently, the city has decided to dedicate more space for industrial development. The 30 sq. km are divided into 36 zones, all of which offer different functions, such as manufacturing, research, development, education, tourism and cultural exchange, etc.

Startups and Entrepreneurs

With changes in business set-up and work policies, Shenzhen is creating a more transparent environment that sets a level playing field for both domestic and global investors.

Investors who were previously worried about the region’s forced technology transfer and intellectual property policies can also find some relief with phase one of the trade deal underway.

The agreement will change the obligations for FIEs by allowing them to work with domestic partners on joint ventures without having to transfer technology in order to gain market access or acquire administrative approvals.

The high-quality development and infrastructure is also major news for entrepreneurs working in advanced fields such as aerospace engineering, robotics and artificial intelligence.

Currently, a number of globally recognized startups and tech giants are operating Shenzhen including Tencent and Huawei.

Why Should Foreign Investors Invest in Shenzhen?

Shenzhen is a land of plenty for both domestic and foreign firms. It offers a friendly business environment and with low corporate taxes compared to the US market so it’s a perfect expansion region, especially for investors and companies just entering the Chinese market, without any experience.

Whether it’s manufacturing, retail industry, electronics, commercial markets or high-end drones, Shenzhen caters to everyone and everything.

The city has some of the country’s best commercial street electronic markets and hardware manufacturing businesses ready to handle any challenges. With 90% of the world’s electronics coming out of Shenzhen, electronic suppliers, manufacturers, shipping and packaging companies and online delivery stores can’t find a better market with such a huge potential.

If you’re an investor and want to form a joint venture in Shenzhen with a local partner, Business China can offer expert support!

From company formation and registration to post-formation services such as accounting and management, Business China has been working with international clients in China for over a decade.

Feel free to contact them at +86-020-2917 9715 to get started. You can also learn more about their services here!

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