Shenzhen’s mayor, Chen Rugui, sees no cause for concern in the city’s recent economic slowdown, pointing out that quality is more important than quantity. Industrial upgrading is causing some challenges as traditional industries either become more valuable through infusions of technology, or move out of the city, yet the mayor is upbeat about the future.
“The fundamentals for stability and quality improvement have not changed,” Chen was quoted as saying by local media, adding that this was in the face of US-China trade friction, which had impacted the city’s trade performance.
Shenzhen was no longer a small, up-and-coming economy, the mayor noted, as its GDP had already surpassed Malaysia’s, at around US$380 billion last year. Its companies were moving quickly up the value chain, and this was showing up in improved corporate results., Two-thirds of companies are engaged in “new economy” sectors, he said.
Huawei Technology’s 18% rise in revenue last year was one indicator of the city’s resilience, Chen said, noting that the company’s supply chain had done much better, rising by 35% overall.
There were seven key factors at play, the mayor said. We won’t list them here. They can be read easily with machine translation from Shenzhen Daily.