Источник изображения: Bloomberg

China will make its Silicon Valley more attractive to foreigners in response to US sanctions

For forty years, there has been a special economic zone in the Chinese city of Shenzhen. This made it possible to turn this part of China into some kind of Silicon Valley: for example, the headquarters of Huawei Technologies and Tencent Holdings are located here. To help China more successfully resist US sanctions, Shenzhen will receive even more autonomy.

Image source: Bloomberg

Image source: Bloomberg

The Chinese authorities, as noted by Bloomberg, have recently published a list of reforms and changes that will add autonomy to Shenzhen and increase its attractiveness for foreign investors. First, their intellectual property rights will be better protected. Secondly, the ban on the work of telecommunications companies with foreign capital in the PRC will be lifted. Third, specifically to attract talent from all over the world to Shenzhen, visa concessions will be made.

The city will be able to issue debt securities on the international market, a futures index will appear on the local exchange in Shenzhen. Young companies will be able to place their shares on this site through the system of depositary receipts. Chinese state-owned companies will be given more freedom to carry out market reforms. Finally, Shenzhen will be included in a single cluster with Hong Kong and Macau, which will allow, among other things, the introduction of medicines that are available only in the last two regions of China. In a pandemic, this is an important moment that empowers Shenzhen residents to receive modern medical care.

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