China’s Silicon Valley benefits from hi-tech focus as output, investment shine
Shenzhen’s strong performance is in sharp contrast with China’s overall sluggish economic momentum
Shenzhen’s hi-tech economic activities have emerged as a bright spot amid China’s sluggish economy, with the southern Chinese city posting strong growth in advanced industrial output and investment.
The value-added output of the city’s large-scale computer, communications and other electronic equipment manufacturing rose by 16.5 per cent year on year in the first seven months of 2024, outgrowing the overall industrial output of 11.5 per cent, the Statistics Bureau of Shenzhen Municipality said on Wednesday.
The city, known as China’s Silicon Valley, saw more pronounced hi-tech related investment activities, with funding in hi-tech manufacturing growing by 61.8 per cent year on year, including a 76.5 per cent increase in the electronics and communications sector.
Total industrial investment also surged by 45.1 per cent year on year, with manufacturing sector investment increasing by 51.2 per cent.
“Shenzhen is a key beneficiary of China’s hi-tech focused policy. It is about the growth of domestic demand in tech and the greater focus on the overseas market,” said Gary Ng, a senior economist at Natixis.
“It is likely to achieve reasonably good economic growth this year, especially as it has successfully attracted tech talent from the rest of China.”
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