SHEN-CHEN

Pinyin Shenzhen, city, south-central Kwangtung sheng (province), southeastern China. It lies along the coast of the South China Sea and immediately north of Hong Kong. Shen-chen was a small border city that served as a customs stop into China from Hong Kong until in 1979 it was declared to be a special economic zone, i.e., one of several cities along the coast of China that were opened to foreign investment, technology, and managerial expertise through the establishment of foreign-owned, joint-venture, and other business enterprises without the prior approval of the central government. The fledgling city also received sizable loans from Chinese banks that were used to build new roads, housing, schools, and water, power, and communications facilities for its burgeoning population. During the 1980s the city grew at a phenomenal rate, both as a tourist stopover for visitors to Hong Kong and as a manufacturer of electronics, pharmaceuticals, chemicals, textiles, building materials, and processed foods. Intensive investment likewise increased the surrounding agricultural area's production of poultry, livestock, and vegetables. The special economic zone had wages and standards of living significantly higher than average in China, and the success of the project prompted the Chinese government to convert several other coastal cities into special economic zones. Pop. (1988 est.) city, 245,000; economic zone, 1,600,000.