China
Shenzhen
“Shenzhen is accelerating its transformation into a globally-influential industrial and technological innovation center. A vibrant collaborative environment encourages major corporations to work with startups, especially in Deep Tech and Advanced Manufacturing.”
Highlights
Shenzhen has proposed to build a global advanced manufacturing center and innovation center. In 2023, Shenzhen’s economy outperformed Beijing, Shanghai, and Guangzhou, and was named top exporter by volume for the 31st year in a row, with its export volume increasing by 12.5%. The city is also the location of China’s premier Special Economic Zone for foreign investment.
The Global Innovation Index 2023 ranked the Shenzhen-Hong Kong-Guangzhou science and technology cluster second globally for the fourth consecutive year. Foreign capital in manufacturing reached $2.4 billion in 2023, a 186% increase year-on-year, with the high-tech industry growing by 16%. Investment in high-tech manufacturing increased by 64% in 2023, with three new national laboratories and eight national enterprise technology centers added. In December 2023, Amazon announced it would open an innovation hub in Shenzhen.
Shenzhen is also working to become a global logistics center. In October 2023, Chongqing Xiyong Comprehensive Bonded Zone and Shenzhen Anxun Logistics Group announced the launch of an import-export allocating center within the Xiyong Comprehensive Bonded Zone to facilitate the transportation of approximately 6,000 High Cube Containers annually, boosting foreign trade values to $1.4 billion. Cainiao Network, the logistics arm of Alibaba Group Holding Limited, announced in 2023 that it would partner with Shenzhen Bao’an International Airport to establish an air cargo center with loading capacity of over 220 tons per flight and more international cargo routes originating from Shenzhen.
The Venture Capital Day of Shenzhen and the China Hi-Tech Fair took place here in November 2023, and the 2023 Shenzhen Global Investment Promotion Conference was held the following month.
Ecosystem by the Numbers
Sub-Sector Strengths
AI, Big Data & Analytics
Shenzhen issued a roadmap for accelerating the development and application of AI technology with efforts from government, enterprises, research institutes, and universities to co-build a computing power management platform in 2023. The 5th International Conference on Artificial Intelligence and Electromechanical Automation was held in Shenzhen in June. AI-based supply chain management platform Qianhai Yueshi Information Technology raised a $87.3 million July 2023 Series B round. Unicorns Cainiao Network, valued at $20 billion, and Lalamove, valued at $13 billion, utilize smart logistics enabled by digital technology.
Fintech
The municipal financial regulatory authority aims to make Shenzhen an international Fintech center by 2025, calling for Shenzhen to build five Fintech industrial parks and cultivate 10+ leading Fintech firms. The government of Shenzhen supports the development of the financial industry through targeted policies. For example, newly registered financial enterprises will be granted up to $7.9 million as an incentive. Fintech startup OH Credit raised a $45 million seed round in May 2023. Unicorn WeBank reached a $21.6 billion valuation.
Advanced Manufacturing & Robotics
High-tech manufacturing accounts for 70% of the manufacturing industry in Shenzhen. Shenzhen plans to establish four industry clusters valued at over $140 billion each by 2025 and to build 20 additional Advanced Manufacturing parks in coming years. Advanced packaging materials manufacturer Simetric Semiconductor raised $14 million in a November 2023 Series A round. Intelligent service robots developer Hanyang Technology raised $20 million in a May 2023 Series A round.
Reasons to Move Your Startup to Shenzhen
Business-Friendly Environment
Shenzhen is the first special economic zone in China, and the most market-oriented mainland city in the country. Shenzhen has ranked first nationwide by entrepreneurial density for eight consecutive years. Its government has introduced reforms, optimized business processes, and streamlined administration that prioritize marketization, globalization, and legalization. In 2024, the Qianhai's 15% corporate income tax preferential policy was extended to the entire Qianhai Cooperation Zone.
Openness to Trade
Shenzhen’s Qualified Domestic Investment Enterprise program allows both domestic and foreign entities to apply and has a quota of $10 billion. A September 2023 enhancement to the Cross-border Wealth Management Connect Scheme improved investor eligibility criteria, expanding the scope of products and raising the investment quota to improve financial market interconnectedness and bolster cross-border asset management business growth.
Educated Talent
In November 2023, Shenzhen unveiled new measures to attract high-quality global talent in sectors including AI, Biomedicine, EVs, and the Blue Economy. The measures include eased entry and exit policies, living allowance grants, funds to support domestic and international scientific talents in conducting proof-of-concept activities, and the introduction of cutting-edge courses in science and technology innovation from local universities.
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