Shenzhen on the brink
              Home    |    About    |    Foreign company registers    |    Accounting and tax agency    |    Hong Kong company registers    |    Shenzhen company registers    |    
              Overseas company registers    |    H.K. trademark agency    |    Business personal finance loans    |    Payroll, social security registration bid
 中文简体 | 中文繁体 | English Keyword: Search Way:
 News More...
 Answer To Questions More...
 ·How to apply for residence permit
 ·Apply for a working(Z)visa in shenzhen?
 · ShenZhen Taxation & Fees
 ·Which Signs shall not be Registered as T
 ·Which Signs shall not be Used as Tradema
 ·Which Signs can be Registered as Tradema
 ·Meet the Small-Biz-Friendly China
 ·Documents Required of Trademark Registra
 ·Why Register Trademark in China?
 ·How is VAT calculated
 ·What is the VAT rate in China
 ·What is the scope of the Chinese value-a
 ·What are the options for foreign enterpr
 ·What is an equity joint venture
 ·What is a cooperative joint venture
 On-Line Message More...
 ·SZ state tax bureau
 ·SZ bureau of trade and industry
 ·SZ administration for industry
 ·HK Inland revenue department
 ·HK Companies registry
Shenzhen on the brink
Author:xcd   Article source: From network  Hits:1041  Add time:2009-5-28  

The 25 years of breakneck expansion that have turned a tiny border village into the modern city of Shenzhen have strained the special economic zone's economy to the point where it is going to have to undergo a profound restructuring.

With few natural resources, Shenzhen's development has relied almost entirely on favorable policies handed down by Beijing to attract foreign investment in manufacturing, mainly from Hong Kong.

But now that the SEZ has grown so large, resources such as energy, water and available land can no longer sustain the high-speed growth that drove it in the past.

Energy shortages have become endemic in recent years as rapid growth has come particularly at the expense of wastefully high consumption of energy. According to SEZ government statistics, US$1 million (HK$7.8 million) in gross domestic product in 2000 consumed energy equivalent to burning 289.9 tonnes of coal. By comparison, Hong Kong in 1997 consumed the energy equivalent of just 91.5 tonnes for US$1 million GDP.

By this yardstick, Shenzhen's energy consumption would reach the equivalent of 8.32 million tonnes of coal this year, rising to more than 25 million tonnes in 2015 as government planners try to push GDP to one trillion yuan (HK$943 billion).

The coal, of course, is being burnt to generate electricity. Shenzhen's increasingly acute power shortages serve as a warning that the current growth patterns may be reaching their limit.

Last year, GDP totaled 342.28 billion yuan with annual electricity consumption of 38 billion kilowatt-hours. Thus one kilowatt-hour of energy is being consumed for every nine yuan of GDP. If such a growth pattern doesn't change, energy consumption would skyrocket to 10 billion kilowatt-hours in 2015 if GDP indeed hits one trillion yuan.

That means Shenzhen has to triple its power supply over the next decade. This looks rather like Mission Impossible. Even if Shenzhen were to increase its energy purchases from other sources, including Hong Kong, it would still have to expand its energy grid and related facilities tremendously. But the SEZ is obviously in feverish competition with other mainland areas seeking to increase their own power supply as they face the same problems.

Shenzhen's population explosion has now increased its thirst for water to the point where it is listed among China's top seven water-short cities, with per capita available water just 470 cubic meters, only about a quarter of the country's average and a fifth of that in Guangdong province.

It might be even worse. As with other per capita figures provided by the Shenzhen government, it is not clear whether the per-capita water resource figures take into account Shenzhen's horde of migrant workers.

The government recently acknowledged that more than 10 million people (a more accurate estimate based on annual food supply puts Shenzhen's regular population at 13 million) are dwelling in Shenzhen, of whom only 1.5 million are in registered households, with another 3.5 million listed as permanent residents, while all others are migrant workers.

Thus, if Shenzhen were likened to a country, the 1.5 million people with household registrations are nationals, the 3.5 million with permanent residency are green-card holders, and the others are ``foreigners'' with work permits.

In any case, according to the Shenzhen water resources bureau, water consumption in Shenzhen in 2003 reached 1.23 billion cubic meters and is growing by 70 million cubic meters each year. So by 2010, Shenzhen will need 1.943 billion cubic meters although its maximum supply by then is projected at just 1.912 cubic meters.

Land resources are becoming equally scarce. Total land area is 1,953 square kilometers, yielding a population density of about 6,200 people per square kilometer, almost equaling Hong Kong's 6,300 per square kilometer. Certainly, Shenzhen is now the most densely populated area on the mainland. Developable land is reaching its limits. Shenzhen mayor Li Hongzhong told a party meeting in the SEZ last week that only 200 square kilometers of land are available in the city for development, most of it outside its second border.

Shenzhen must keep its economy growing at a 13 percent annual pace over the next 10 years to attain the government goal of one trillion yuan in GDP by 2015. But unless Beijing launches more special policies to help, which is very unlikely, Shenzhen must tackle its own problems.

Under these circumstances, a profound economic restructuring seems inevitable, including allowing energy-hungry manufacturing facilities to move out and to boost the development of a service economy.

In short, Shenzhen now may have to do what Hong Kong began to do from the

 late 1970s. 

Otherwise, it faces being buried by its own success.
         Related Articles  
Documents for record and registration of a Foreign-, Hong Kong-, Macao- or Taiwan-Invested enterprise (one copy for each)
Rules for the Implementation of the Provisional Regulations on Value Added Tax of the People's Republic of China
Why do business in Shenzhen
Shenzhen Facts
Registration service &business consulting firm
Documents Required of Trademark Registration
Shenzhen Investment Guide
Rules of the Shenzhen Special Economic Zone on Management of Enterprises Undertaking Construction
Rules of Shenzhen Special Economic Zone on Requirements and Procedures for Incorporation of Joint-Stock Limited Company
Factory closure impact limited
The insurance industry in China and opening up to open the door Shenzhen Special Economic Zone
Shenzhen on the brink
Shanghai realty sector rises
Casinos pay taxes
Quick development
HK inflation up
Sweet return for candy
High-tech loans
IATA gloomy outlook
Industrial growth to exceed 10%
Pace of lending fell last month
Hong Kong exports and imports fall
Electronics exports lose spark
Warning call from maker of mobiles
World Bank cuts China GDP outlook
Home price corrections boost deals
Taiwan LCD firms bank on mainland
Foreign reserves fall month on month
Su sees more room to cut rate
Ban lifted to revitalize land market
Online game firms predict growth
HK budget offers few handouts
Another Japanese store eyes Shanghai
Road control set for east beaches
Flight-bus service to HK launched
50% polled favor property tax levy
German business chamber sets up office in Shenzhen
West-CBD completes main construction
China aims to keep export share: vice premier
Steelmakers may reject 33% iron ore price cut
May loans to be 600b yuan
Recovery may have lost steam, economists say
Growth board may launch by late summer
Insurance launched for H1N1
Mainland, Taiwan plan cross-trading of stocks
Currency swings add to trade uncertainty
Vanke property sales up 22% in April
Canton Fair woos domesticparticipation
Wal-Mart accused of forcing job cuts
Jewelry center will encourage originality
Power-use contraction slows in March
City to hold fair to promote logistics equipment
Yuan edges into place as global trade currency
China buys more U.S. securities
Medical expo to display latest devices
Risks rise, companies flinch at Canton Fair
China’s economy bottoming out: researcher
Housing sales may drop after March boom
Warning on illegal taxis
10,000 products to go on show
Rotterdam invites Shenzhen investors
Tour prices surge 20 percent for May Day holiday
Tour prices surge 20 percent for May Day holiday
Man faces heavy fine for car pool
HK-SZ land stays mostly green
At a Glance
Decline in foreign trade slows, minister says
Regulator says bill financing soars
Special fund to handle health emergencies
Medical insurance premiums to be lowered
Savings-type insurance attracts rich residents
Law enforcers besieged for hours in conflict
Dinner date with expert debated online
Wal-Mart enters China’sconvenience store market
Central bank pledges ample liquidity
Quake killed 5,335 students
Ex-China bank managers jailed in U.S.
100 firms picked for yuan clearing
Rail linking SZ, HK airports to cost RMB52b
8,000 vacancies available at job fair
At a Glance 2009 May
Mainland opens further to HK banks, securities firms
Fewer orders at Canton Fairshow sign of trouble ahead
New oil pricing mechanism explained
Futian estate sold for mixed development
Sticker madness
Bank lending cools, consumer prices decline
Happy money to you...
Factory limits bathroom time
SZ exports fewer shoes to U.S., Europe
5 SZ firms offer consumer loans
Crackdown on crime on Binhai Thoroughfare near Xiasha in Futian District
Forex regulator eases approvals
Govt. pledges more help for exporters as FDI falls
Man U rejects SZ sponsorship offer
SZ airport opens two check-in halls in Dongguan City
Shenzhen bank plans bond sale
Japan’s GDP shrinks at record pace
Imports Procurement Fair
Intl. school recruiting to start in June
Wage defaulters face credit restrictions
From activist to ombudsman
68% of Shenzheners feel happy
Handy taxicab service begins at Futian Checkpoint
Englishman has humble coaching goal
Private capital’s role stressed in reform
SZ to unify bilingual public signs
Guangming New Zone pilots city’s comprehensive reforms
New reform plan highlighted
SZ assigned a historic task
Plastic bags still widely used at wet markets
Nanhai E-cool launches Art Season
Recovery not yet assured: central bank
The State Administration of Taxation Proclaims the Anti-tax Avoidance Policy to Transnational Corporations Directly
13 injured in Nanshan gas explosion
Report sparks probe into Internet cafes
Wenzhou-Fuzhou railway to open to traffic
Property market gains fresh govt. impetus
Trade fair to help firms tap China’s market
SZ, HK to build Qianhai service park
38 SZ firms ready for growth board IPOs
Land auctioned at high price
SZ, HK hold promotion in NYC
City’s housing prices rise 20% this year
SZ Residential land sells for record
5,000 graduates attend job fair
City to grant talent awards
SZ 3rd-biggest mainland finance center
Huaqiangbei Subdistrict Office set up
Air check-in, free parking at hub
Amnesty rumor triggers tide of human smuggling
Ground broken for largest industrial computer base
Taiwan benefits from economic stimulus
Numbers to be displayed to discourage beachgoers
Court scrutinizes property deals
SZU to enrol more foreign students
Shenzhen apparel fair expands its waistline
Qianhai Bonded Port Area opens
Electronic RFID card for poultry
Authorities deny visa controls tightened
Useful Phone Numbers in SZ
Useful Phone Numbers in SZ
Global turmoil deepens China's chipmaker woes
Export Enterprises to Receive Reminder in Process of Export Tax Rebate
Taxpayers to Handle Tax-related Issues on Line in 2012
How to Apply for Tax Registration?
How to apply to cancel tax registration?
Interim Provisions on the Takeover of Domestic Enterprises by Foreign Investors
Acts in Violation of the Law on Tax Collection And the Corresponding Punishments
Small and Low-profit Enterprises Accessible to Preferential One-year Tax Treatment
ShenZhen Taxation & Fees
ShenZhen Taxation & Fees
ShenZhen Policy Advantages
ShenZhen Policy Advantages
Guidelines for Employment of Taiwan, Hong Kong and Macao Residents in Shenzhen
Documents subject to Stamp Duty
Chargeable and Non-chargeable Income
Guide to Customs Clearance of Reporting Equipment Carried by Foreign Journalists
setting up the advantages and conditions of the BVI company
Bank account FAQs
Application flow chart
Five kinds of common examples of English invitation for your reference:
Hongkong intellectual property rights protection
Virtual office service
In shenzhen, the set up of a foreign partnership conditions
FAQ of Hongkong company striking off and winding up
Notice about the New Service Hotline
HK accounts and offshore accounts
Galeries Lafayette plans to open 10 to 15 shops in China
Families in China can apply for such as ju "Z visa notification by the authorized unit" table of?
All the document needed for forming a BVI company
Visa Application
Apply for a working(Z)visa in shenzhen?
How to apply for a visa in ShenZhen
Shenzhen Initiates Commercial Registration Reform
Organization Structuring of People's Government of Shenzhen Municipality
How to apply for residence permit
How to apply residence permit in Shenzhen
Applying alien employment permit
ShenZhen's Financial Services
Visa replacement and extension procedures
Working Visa
2014 holiday plan removes Chinese NYE
15 Qianhai projects under way
State Council approves policies for Qianhai
Shenzhen to switch to service industry
Labor Contract Law of the People's Republic of China
Applying for a residence permit as a working foreigner
Visa and Residence Permit Application Form
Notice to Foreign Citizens Applying for Permanent Residence Permit in China
Important Information for Foreigner
Set Up and Your Company in Shenzhen
Register a Company in Shenzhen
Some expressway tolls removed
Qianhai tax incentive approved
Flow Chart for Foreigners Applying to Work in Shenzhen
21 stand trial in tax scam
Download    |    On-line message    |    Case    |    Websitemap    |
Shenzhen business registration /company register /SZ Accounting & Tax service/86-755-83702077 All rights reserved 粤ICP备05044913号  
Tel:0755-83702077,83702525,83702505,83702506 MSN:LSH734@HOTMAIL.COM SKYPE:XCD-LAN
Fax:(+86) 0755-83702506
Add:28E, HaiXing Tower,shopping center ,NanShan Technology park ShenZhen 518057, GuanDong ,China (Metro:Line 1 ,ShenZhen University)