Shenzhen was chosen by China to become a tech hub due to its strategic location, economic policies, and its role as a model city for China’s reform and opening-up strategy. Over the past four decades, Shenzhen has transformed from a fishing village into a global innovation powerhouse. Here’s why China chose Shenzhen:

1. Strategic Location

• Proximity to Hong Kong:

• Shenzhen is directly adjacent to Hong Kong, a global financial and trade hub. This location allowed Shenzhen to benefit from Hong Kong’s capital, expertise, and international connections.

• Early in its development, Shenzhen leveraged its geographic closeness to Hong Kong for trade, investment, and knowledge transfer.

• Gateway to the Pearl River Delta:

• Shenzhen serves as a bridge between mainland China and the world, connecting the manufacturing powerhouse of the Pearl River Delta to global markets.

2. Economic Reform Policies

• Special Economic Zone (SEZ):

• In 1980, Shenzhen was designated as China’s first Special Economic Zone (SEZ) under the leadership of Deng Xiaoping.

• The SEZ allowed for experimental economic reforms, including foreign direct investment (FDI), market-oriented policies, and relaxed regulations.