The Shenzhen Model: From world factory to China's Silicon Valley

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02:59

The import expo will be a chance for China to again highlight its efforts to open up to the world over the past four decades. During that time, Shenzhen has been a prime example of this reform and opening up. The city's growth model has changed several times and continues to evolve. Our reporter Ge Yunfei finds out what keeps the city rolling.

This high-rise complex sits Shenzhen's border with Hong Kong. Yumin Village is one of the richest communities in the southern Chinese city. 77-year-old Deng Zhibiao is the former village chief. He says 40 years ago, everybody here wanted to leave and go to Hong Kong.

DENG ZHIBIAO FMR. VILLAGE CHIEF OF YUMIN, SHENZHEN "Back in those days, most villagers fled to Hong Kong. There were only about 100 people who stayed here."

Soon after though, China's reform and opening up began, and Shenzhen entered a new era as the frontier of the country's experiment. In its early years, Shenzhen's economy boomed on introducing Hong Kong capitals, factories, and minds. And Deng's village also found its first pot of gold.

DENG ZHIBIAO FMR. VILLAGE CHIEF OF YUMIN, SHENZHEN "We copied many business models from Hong Kong. Some people started shipping businesses importing goods from Hong Kong. Some opened restaurants. And some people sold river sand to construction sites."

And in just a few years, Yumin became China's first village to reach annual per capita income of 10,000 yuan. Millions of people migrated to Shenzhen for opportunities in factories, offices and business. That made the city a world factory, producing cell phones, computers, electronics, and apparel for domestic and foreign consumers. In 2007, Shenzhen's overseas exports reached over 150 billion USD.

XIE TIANDI SENIOR MANAGER, DJI "In this export-oriented era, a complete supply chain of the tech sector was established in Shenzhen."

32-year-old Xie Tiandi is a senior manager of DJI, the world's largest drone maker. He said the company's latest industrial thermal camera is widely used in the US, China, and Africa for fire-fighting, power line inspection, anti-poaching and even anti-terrorism. In fact, experts now put DJI as a symbol of Shenzhen's transformation into an innovation-driven economy.

XIE TIANDI SENIOR MANAGER, DJI "I came to Shenzhen at the eve before the explosion of mobile Internet and smart hardware. Thanks to the industrial capabilities nurtured in previous decades, when the new era came, new technologies quickly empowered Shenzhen's industries to upgrade. So Shenzhen became the so-called Chinese Silicon Valley."

Xie adds that thanks to the industrial environment in both the city and the surrounding region, DJI's continued success will unfold in Shenzhen. And the city's innovation-driven model can make Shenzhen a global leader in the world's tech sector for the years to come. Ge Yunfei, CGTN, Shenzhen.