Lin Min

linmin67@hotmail.com

SINCE Donald Trump launched a trade war against China in 2018, U.S. containerized ocean freight imports from China have dropped from 46% of total imports to 39%. However, China remains firmly established as the world’s largest exporter of goods, as shipments to other regions such as Latin America, Africa and the Persian Gulf have continued to grow.

Meanwhile, green tech products have become the main driver of China’s exports. Between January 2019 and June 2023, China’s global share of lithium-ion battery exports grew from 48% to 61% in terms of value. Its share of solar panel exports rose from 44% to 62% and that of electric vehicle shipments soared from 1% to 24%.

Shenzhen is the poster child for China’s green tech boom. Topping the list of mainland cities in terms of exports for 30 years running, Shenzhen has shown it is able to adapt itself to meet evolving challenges. From labor-intensive products such as clothing, footwear and toys in the 1990s, to higher-value-added products such as electronic devices and telecom gears in the 2000s and 2010s, and now new energy products, Shenzhen has been able to upgrade its industries through continuous innovations, climb the value ladder, and build up well-developed industrial chains.

In the first 10 months of this year, Shenzhen’s exports of lithium-ion batteries, electric vehicles and solar cells surged by 21.6%, 376.8% and 28.8% year on year, respectively. The spectacular growth of green tech industries contributed significantly to the city’s 14.4% increase in exports in the January-October period this year, when the country’s total exports struggled to register a 0.4% increase amid global economic headwinds and geopolitical tensions.

The full-fledged industrial chains in Shenzhen in turn attract global investment.

“Shenzhen is the city with the most complete electric vehicle (EV) industry chain in the world, and this is the reason why gas and oil giant Shell has joined hands with the city in its foray into sustainable energy,” Chen Lin, executive chairperson of Shell Companies in China, said in a video speech at the 2023 Shenzhen Global Investment Promotion Conference on Friday. A joint venture between Shell and Shenzhen-based EV maker BYD is now operating more than 13,000 EV charging terminals in the city.

Shenzhen’s robust manufacturing base, coupled with an emphasis on research and development, attracts businesses seeking innovation and production capabilities. More than 15 multinational tech giants including Intel, Qualcomm, Apple and ARM have established top-level research and technological service centers in Shenzhen. The dynamic R&D investment well illustrates the tech innovation vitality in Shenzhen, the foundation of strategic emerging industries.

Pro-business policies are another factor underpinning Shenzhen’s robust manufacturing base. Meng Fanli, Shenzhen’s Party chief, said at the Friday conference that Shenzhen’s business environment, innovation ecosystem, and living conditions are continually improving.

In his speech, Meng showed the city government’s respect to the market. Shenzhen has been lauded for its tenet of “没事不扰，有事必到”: Businesses are left alone when government intervention is not wanted, but when enterprises need help, government services are readily available. With a sophisticated combination of the “invisible hand” and the “visible hand,” Shenzhen has topped a national business environment survey by the All-China Federation of Industry and Commerce for three consecutive years.

In her video speech at the conference, Shell’s Chen revealed that the special team from the government has provided much-needed services to the EV charging joint venture. Special teams assigned to serve major companies to address their concerns and issues demonstrate the great lengths the city government has gone to help businesses navigate around obstacles and grow.

Even as some Western media outlets are badmouthing China as “uninvestable,” Shenzhen continues to be a magnet for investment from around the globe. Between January and October, a total of 6,469 new foreign-funded enterprises were established in Shenzhen, representing a year-on-year increase of 69%. Friday’s signing of over 380 investment projects worth more than 1 trillion yuan (US$139.5 billion) capped a fruitful year for Shenzhen against the backdrop of an uneven path to post-pandemic recovery.

(The author is a deputy editor-in-chief of Shenzhen Daily.)