Economic zone's expansion to turn Shenzhen into powerhouse

The expansion of the Shenzhen special economic zone will sharpen the city's competitive edge and help it keep pace with the mainland's other economic powerhouses, experts say.

The expansion - which would see the zone increase from 395 sq km to 1,948 sq km - nearly twice the size of Hong Kong - is a key plank in the city's restructuring plan that was endorsed by the State Council.

More than 1,500 sq km of suburbs - Baoan , Longgang and the new Guangming districts - will be rolled into the reform laboratory and enjoy the economic benefits. Shenzhen's development has long been held back as only a limited part of it is within the special economic zone.

'A fivefold expansion of the special economic zone will transform Shenzhen from a key city in the Pearl River delta into an international metropolis,' Tan Gang , deputy dean of Shenzhen's Communist Party School, said.

'Although Shenzhen ranks among the top economic powerhouses, the other cities [Beijing, Shanghai and Guangzhou] are several times larger than it. Beijing is eight times the size of Shenzhen.'

Mr Tan said the development of the suburbs would accelerate with the economic privileges they would be accorded, while cheap land would attract hi-tech and other value-added industries.