The Shenzhen Special Economic Zone (SEZ) desperately needs more space to allow high-technology enterprises to develop, the China Daily reported, citing local officials.
An unnamed official at the Shenzhen legislature said, ‘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 [Cabinet],’ .
If the plan is approved, it will allow an increase in the size of the zone from its current 396km² to just short of 2,000km², nearly the size of Luxembourg.
Taipei Times reported that Shenzhen authorities need to find space not just for businesses, but also for residential areas and therefore the area’s flagship enterprises are being seriously squeezed.
For example, telecoms equipment maker Huawei Technologies has decided to move its production base out of the zone to neighboring Longgang district.
The Shenzhen SEZ was set up in 1980 along with three other zones that all offered lower taxes and less cumbersome bureaucratic procedures in order to attract foreign investors.