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57 Besides Shenzhen, Beijing estab-


lished other SEZs in Zhuhai and Shan- tou in Guangdong province, at the port of Xiamen in the south-eastern province of Fujian and on the southern island of Hainan.


Last century’s model But 30 years later, some analysts wonder whether the model still makes sense. One of the main questions is if man-


ufacturing for export is as benefi cial as it once was. The model has shortcom- ings, with social services in these spe- cial zones not matching the economic progress achieved. Wages have changed little and the


workforce is on edge. The offi cial news agency Xinhua reported that some low- level workers in Shenzhen have not had any pay increases in the past decade. The secretary of the Shenzhen Mu-


nicipal Committee of the Communist Party of China, Wang Rong, believes the model is still relevant and that the city will continue to play the role of “fi rst mover” and strive to be at the “vanguard of China’s scientifi c development”.


There are high expectations that Shenzhen will pave the way towards wider political reform, setting an example for the rest of the mainland


In August, the State Council de-


creed the city to be “a national econom- ic centre” and “a city of global clout” in cultural, economic and technological exchange. During his recent Shenzhen visit,


Mr Hu outlined a role in politics, saying Beijing would “support the brave explo- ration of the special economic zone as


well as its role of testing and carrying out reforms ahead of others”. Qin Xiaoying, a researcher at the


China Foundation for International and Strategic Studies, is more cautious, ar- guing that to keep its leading position in economic development, Shenzhen should rely on the judgment of its people in charting its future. There are high expectations that the


city will pave the way towards wider po- litical reform, setting an example for the rest of the mainland. Shenzhen is changing and correcting


some of the faults it has grown up with. After a series of strikes and worker


suicides earlier this year, the city has drafted new labour rules to smooth indus- trial relations. The proposals include the establishment of a mechanism for collec- tive negotiation of periodic pay increases in order to reduce labour disputes. The city’s future as an internation-


al city is just “around the corner”, says billionaire Li Ka-shing, chairman of Cheung Kong Holdings. There remains an air of optimism about Shenzhen’s development.


OCTOBER 2010


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