Report on the Work of the Government

Delivered at the Fifth Session of the Fifth People’s Congress

of Shenzhen Municipality

15 January 2013, Shenzhen

Mayor Xu Qin

(For Reference)


Fellow Deputies,

On behalf of the People’s Government of Shenzhen Municipality, I now present to you my report on the work of the government for your deliberation and approval. I also invite the members of the Chinese People’s Political Consultative Conference (CPPCC) Shenzhen Municipal Committee and others present at the meeting to submit their comments and suggestions.

I. Review of the Work in 2012

In 2012, officials and people in Shenzhen worked in unison to overcome all the difficulties and make outstanding achievements in scientific development and reforms and opening up. In the face of world economy in downturn and complex and volatile external environment, under the strong leadership of the CPC Central Committee, the State Council, the CPC Guangdong Provincial Committee, the Guangdong Provincial People’s Government, and the CPC Shenzhen Municipal Committee, centering on the main theme and thread, taking the requirement of ‘Shenzhen Quality’, we adopted series of targeted and forward-looking measures to strengthen innovation-driving, accelerate transformation and upgrading and improve people’s wellbeing. Major targets and tasks identified at the third session of the fifth People’s Congress of Shenzhen Municipality were completed. We realized steady quality growth and general sustainable development.

Preliminary estimate indicates that an increase of GDP in Shenzhen was around 10%. Investment on fixed assets was RMB 231.4 billion, increased by 12.3%. The total volume of import and export reached USD 466.78 billion, up by 12.7%, ranking first in the major cities of Chinese mainland and export volume alone stood at USD 271.36 billion, topping other cities in the mainland of China for 20 consecutive years. Total government revenue was RMB 450.2 billion, among which, general budget revenue of local government reached RMB 148.2 billion, an increase of 10.6%. Consumer Price Index (CPI) was controlled at 102.8%, which was 1.2 percentage points lower than the expected target.

First, improvement of quality ensured greater economic development. Three indicators made breakthroughs. GDP in Shenzhen exceeded USD 200 billion. Total amount of social retail goods exceeded RMB 400 billion and per capita disposable income exceeded RMB 40,000. Economic benefits continued to increase. Per capita GDP was close to USD 20,000, output per square kilometer was more than USD 100 million and tax accounted for 90% of governmental fiscal revenue, all leading among big and medium-sized cities in the mainland of China. Strategic emerging industries and modern service industries served as two driving forces. We placed emphasis on supporting over 2000 projects related to strategic emerging industries. With the growth rate of six major strategic emerging industries over twice of that of economic development and output value accounting for 25% of the total in the City, Shenzhen was one of the cities in China boasting largest scale and highest agglomeration of strategic emerging industries. The ratio of GDP service industries accounting for to GDP in the City was increased to 56% and 68% of service industry belonged to modern service industries. Indigenous innovation served as the inherent engine for economic growth. R&D input accounted for 3.81% of GDP, leading in China. With 8024 PCT international patent applications, accounting for 40.3% in the country, Shenzhen stood at the 1st place in China for nine consecutive years. The output value of high-tech industry reached RMB 1.29 trillion, 61% among which enjoyed independent intellectual property rights. Domestic demand played a more important role in driving forward economic growth. The growth rate of consumption and investment respectively was 6.5 percentage points and 2.3 percentage points higher than that of GDP in the City. While economic volume increased rapidly, recourses and energy conservation appeared to realize reduction in the following respects. The total volume of consumption of water, gas and diesel sales and electricity used by manufacturing industry dropped respectively by 0.61%, 1.79% and 1.06%. The figures indicated that significant achievements were scored in the transformation of the pattern of economic development in Shenzhen.

Second, optimization of economic structure stimulated steady economic growth. Polices were introduced in a timely manner, including Measures for Promoting Steady Economic and Trade Development through Optimizing Services and Enhancing Quality, Opinions on Supporting Development of Real Economy through Improving Financial Services, Supporting Policies on Accelerating Transformation and Upgrading and Tentative Measures on Encouraging the Development of Headquarters Enterprises. The mechanism of hierarchical coordination in major projects and serving enterprises by designated special leaders was established, then 284 major projects were coordinated and 1480 key enterprises enjoyed services. We promoted the above-mentioned policies at over 40 occasions and encouraged enterprises to carry out economic and trade promotion activities. We helped enterprises solve their problems and accelerated economic growth by quarters. The industrial structure was optimized constantly. Manufacturing industry accelerated its move towards high end. We supported 693 projects related to industrial transformation and upgrading and eliminated 1575 enterprises with high energy consumption, high pollution but low added value. Advanced manufacturing industry took up around 70% of the added value of industries above designated scale. Brand strength turned out overwhelming in industries of clothing, clock and watch, gold and jewelry. There were 103 famous brand products in Shenzhen, which made it the first city at sub-provincial level with more than 100 brands. Modern service industries accelerated its development. Total assets of financial industry exceeded RMB 5 trillion, and 129 more enterprises were listed at Shenzhen Stock Exchange in 2012, ranking first in the world for another year. Throughput of containers at the port was more than 23million TEU, ranking fourth for 10 consecutive years. Investment structure was greatly improved. Social investment accounted for as high as 78% of the total investment. Investment outside of the original Special Economic Zone (SEZ) accounted for 72%. Foreign trade structure was optimized. Export of trade in services grew by 37.6%, a 3.5 times increase of that of the total export. The export of goods processed with the imported material in the same enterprise increased by 32 percentage points more than that of goods processed for others. Over 2000 enterprises engaged in processing with material supplied realized transformation without stopping their production. Headquarter economy continued to concentrate in Shenzhen. 18 headquarters were located in Shenzhen, such as China Resources Chinese Mainland Headquarter, Hisense Group Southern China Headquarter and China Electronics Corporation (CEC) International Headquarter. Local enterprises including PingAn, Huawei and China Merchants Bank entered the world’s top 500, 189 among which had their investment in Shenzhen. Major projects accelerated development. CSOT realized full capacity ahead of schedule and projects of AGC and Century Display (Shenzhen) Co., Ltd and the 1st metamaterials production line in the world were put into operation. CAPSA project entered equipment installation and debugging stage.

Third, indigenous innovation enhanced core competitiveness. Great progress was made in the building of a national innovation city. Daya Bay Neutrino Laboratory discovered the third oscillation of neutrino, which was listed by the Science as one of the top 10 global scientific breakthroughs. Wang Jun, a scientist from BGI, was chosen by the Nature as one of the top 10 scientists in the world. We feel proud and honored to be the only city in China with the two laurels in one year. The construction of innovation carriers was accelerated. The National Supercomputing Center in Shenzhen was put in operation and the National Gene Bank started its construction. With an increase of 180 key laboratories, engineering laboratories, engineering centers and technical centers at national, provincial and municipal levels, the total number reached 757. Innovation on science & technology was more cutting-edge and high-end. Technologies such as 4G mobile communication, gene sequencing, metamaterials and new energy vehicles are leading in the world. Patents applied by Kuang-Chi Institute of Advanced Technology took up 85% of the global metamaterials field. The fundamental patents in terms of LTE applied by Huawei and ZTE accounted for 1/5 of the total in the world. The number of approved key national scientific and technological projects and National Natural Science Foundation of China (NSFC) projects saw an increase of 35%. Local enterprises played a leading or participatory role in establishing 416 international, national and professional standards, 137 among which were international standards. The innovation ecological system was improved. Strengthen innovative supporting polices through formulating relevant documents on the construction of a national independent innovation demonstration area. New R&D institutes accelerated knowledge innovation, technology innovation and industrialization. The coordinated innovation in Compass, tech-web and metamaterials was made through alliance of industries, universities, research, capital and institutes. Emerging industrial clusters kept emerging. Finance played a prominent role in serving technology innovation. With added 1450 equity investment enterprises, the total number reached 3500. We continued to implement the Peacock Plan. 16 high-level talent groups were introduced from overseas. The 14th China Hi-Tech Fair and the 11th Conference on International Exchange of Professionals were successfully held.

Fourth, green low carbon development mode promoted sustainable urban development. Energy and water consumption per RMB 10,000 of GDP decreased by 4.25% and 11.4% respectively. Chemical oxygen demand (COD) and emissions of ammonia nitrogen, sulfur dioxide and nitric oxide continued to reduce and exceeded the planned reduction targets. Energy conservation and emission reduction yielded remarkable achievements. 2.92million square meters of green buildings were newly constructed and Shenzhen is leading in China with a total of 12.65million square meters of green buildings. 480,000 tons of standard coals were saved by buildings per year. 2100 energy vehicles were put into use and the total number of such vehicles in use reached more than 5000, thus, Shenzhen maintained its first place among cities across the world. The international low carbon city was listed as a flagship project on sustainable urbanization collaboration between China and EU, and construction of the start-up area was steadily improved. Laws and regulations on carbon emissions in Shenzhen SEZ were implemented and efforts were made to check carbon emissions. The preparation work of carbon exchange went well. Effectiveness of recycling was enhanced. With newly built 323-km sewer network, the City is capable of handling 4.695million tons of sewage daily due to an added capacity of 795,000 tons. The daily capacity of wastewater reclamation reached 1.36 million tons, an increase of 13.3%. The waste construction reuse amounted to 3.5million tons, an increase of 16.6%. Electricity generated by burning waste reached 450million KWH, ranking first in China. Efforts were made to launch reducing and sorting waste pilot programs in 500 residence areas. Construction of an ecologically livable city was accelerated. Thanks to the urban landscaping program, we built and connected 1012-km greenways and developed an ecological landscape forest belt with 142 km long and a total area of 44,000 Mu. The total number of parks reached 841 with an added 64 newly built parks. We intensively treated major sources of PM2.5 such as motor vehicles and power plants, and consequently air quality continued to improve. Great efforts were made to treat trans-boundary rivers pollution and as a result, Longgang River, Pingshan River and Guanlan River reached the provincial water qualified standard and passed the examination. Thanks to progress made in improving urban environment, Shenzhen passed the 3rd check of national model cities for environmental protection.

Fifth, integration of Shenzhen SEZ enhanced urban functions. Since the implementation of the three-year Shenzhen SEZ integration program, investment on fixed assets outside of the original SEZ reached RMB 442.9 billion, accomplishing around 1.6 times of the target. The coverage of bus stops at every 500 meters increased from 78% to 90%. The number of vacancies in schools per 1000 persons increased from 78 to 98. Guangming, Pingshan and Longhua New Districts accelerated transformation from industry functional zones to new urban districts. Dapeng New District launched planning and construction of the international coastal ecological tourist holiday resort. Bao’an District and Longgang District enhanced its urban modernization. Basic infrastructure facilities were more improved. The main part of T3 terminal building was completed. Shenzhen North Railway Station and East Railway Station were put in operation. Rail transit phase III started construction. 14 arterial roads such as Shenzhen-Shanwei phase II and Longbu Road phase II were constructed and open to traffic and 32 dead-end roads were connected. Efforts were made to accelerate the construction of a public transportation city. There were altogether 165 newly added and optimized public transportation routes and added 100-km long bus lanes, 855 new bus shelters and 101-km bicycle lanes. Daily public transportation capacity of carrying passengers was more than 10 million person-times. The West-East natural gas transmission line II supplied gas to local residents. There were newly built 140-km LNG pipelines and an increase of 100,000 households using gas. Power grid projects such as 500-KV Kunpeng Substation were put into use. Work on Gongming and Qinglinjing water conservation projects was progressing as scheduled. Six building projects such as Shenzhen Universiade Sports Center and Buji Sewage Treatment Plant were awarded with six Luban Prizes and other five ones were awarded national top quality engineering prizes. City operation was more intelligent. Shenzhen took the lead in establishing 4G mobile communication experimental network. The urban network TV channel expanded its influence. The popularity rate of internet, home broadband and wireless broadband reached 83%, 80.8% and 85% respectively. Thanks to the application of the intelligent transportation system, digital city management, digital environmental protection and science and technology in strengthening police, the City has enhanced its level of intelligence. Land space was used in a more intensified way. We proactively carried out the second development of land, started urban renewal 60 projects and reserved 67 square kilometers of land. Urban renewal and land consolidation and reserve served as the main source of construction land. A host of old industrial districts, business districts and urban villages accelerated their transformation to emerging industrial clusters and modern communities.

Sixth, improve people’s wellbeing through strengthening social progress.