Chen Xiaoshuo (2nd R), CEO of Shenzhen Everwin Precision Technology, introduces intelligent manufacturing workshops to Apple CEO Tim Cook in Shanghai in March. Apple announced that it would set up an applied research lab in Shenzhen later this year. Photo provided by Apple

During a March interview with Shenzhen Daily, Taylor Ogan, CEO of U.S. hedge fund Snow Bull Capital, cited Shenzhen's rapid technological development as the main reason for relocating his company from Boston to the booming city in southern China in January 2023.

"Shenzhen represents the future. There is no city that is newer and greener and has more technology than Shenzhen," he said.

Founded in Boston in 2018, Snow Bull Capital focuses on investing in high-tech, clean-tech, and green-tech companies, which, according to Ogan, truly make people's lives better.

Shenzhen has a lot of those companies, and many of them are undiscovered. "As an investor, I see opportunities here," he said.

Technological innovation

Dubbed China's Silicon Valley, Shenzhen is the country's tech hub and home to many of China's leading tech companies, including gaming giant Tencent Holdings, telecom champion Huawei Technologies, drone maker DJI, humanoid robot maker UBTech Robotics, and new energy vehicle giant BYD Co.

As a world pioneer in promoting the adoption of new energy vehicles (NEVs), Shenzhen has led China's surge in NEV adoption. The city's NEV adoption rate soared from 1.3% in 2015 to 50.39% by April of this year. Additionally, Shenzhen recorded the highest number of NEVs on its roads when compared to other Chinese cities, with 970,000 units in the previous year, according to official figures. Ogan, who closely follows the NEV sector, is very bullish on its prospects.

Ogan said that he views the growing prevalence of NEVs, robotaxis, and charging facilities as examples of Shenzhen's innovative environment, which also appeals to other foreign investors seeking development opportunities.

As China further opens up its market to foreign investors and promotes new quality productive forces aimed at sparking a technology and innovation-fueled economic transformation, Shenzhen is at the forefront. Known as the original testing ground for China's reform and market-opening initiatives, the city has demonstrated its commitment to attracting foreign investment by creating a market-oriented, law-based, and internationalized business environment.

In the past, Shenzhen's economy was mainly driven by labor-intensive and capital-intensive industries, but it is now increasingly fueled by technological innovation.

Shenzhen's culture of innovation attracts brilliant minds from around the world and fuels technological breakthroughs. From hardware manufacturing to artificial intelligence and robotics, the city has become a hotbed of innovation that offers foreign investors a compelling investment landscape characterized by various industries, technological prowess, a favorable business environment, and remarkable growth potential.

Apple lab

In its latest move to leverage Shenzhen's manufacturing and research and development (R&D) prowess, U.S. tech giant Apple Inc. announced March 12 that it would establish an applied research lab in the city later this year.

The new lab is expected to boost Apple's testing and research capabilities for major products like the iPhone, iPad, and Vision Pro mixed-reality headset. It will also strengthen Apple's collaboration with local suppliers. Furthermore, the U.S. firm plans to deepen cooperation with local companies to cultivate a complete industrial chain covering design, R&D, commercial transformation, and production for new products.

Shenzhen firms have played an indispensable role in Apple's supply chain, and the city remains an important manufacturing center for the company.

During his latest visit to China in March, Tim Cook, CEO of Apple, met with three heads of Apple's key Chinese suppliers in Shanghai. Two of them are from Shenzhen — Wang Chuanfu, chairman and chief executive of BYD, and Chen Xiaoshuo, CEO of electronic components manufacturer Shenzhen Everwin Precision Technology.

After a sharing session in which the three suppliers showcased their latest achievements and progress in smart and green manufacturing and talent training, Cook praised the "high level of modernization in Chinese factories," noting their highly advanced manufacturing capabilities and well-trained workers. "There's no supply chain in the world that's more critical to us than China," Cook added.

Shenzhen's vibrant tech ecosystem and manufacturing prowess are believed to be the main factors behind Apple's decision to select the city for its new lab. This also reflects the U.S. firm's intention of tapping into local talent and resources to strengthen its innovation capabilities, analysts said.

R&D centers

In recent years, Shenzhen has emerged as a preferred destination for internationally renowned foreign-funded firms to establish R&D and innovation centers.

Currently, Shenzhen has attracted 15 of the world’s top scientific research and technology service firms such as Intel, Qualcomm, Apple, and ARM. These firms are involved in intellectual property services, inspection and testing, strategic consulting, aerospace, biomedicine, high-end equipment manufacturing, and chip manufacturing and design.

By embracing openness, inclusivity, and innovation, Shenzhen has become a hotbed for global investment. In 2023, the number of newly established foreign-funded firms in Shenzhen recorded an 86.6% increase year on year, reaching 8,002. The actual use of foreign investment in the city reached 62.62 billion yuan (US$8.70 billion), ranking Shenzhen first in Guangdong Province.

Shenzhen's efforts to promote high-quality foreign investment have proven fruitful. Official data show that in 2023, the number of newly launched foreign firms in the city's manufacturing industry increased by 53.8% year on year, while the number of new foreign firms in high-tech industries jumped by 60.6% year on year.

The momentum of foreign capital flowing into Shenzhen remains strong this year. In the first two months alone, the number of newly launched foreign-funded firms expanded by 29.8% year on year to 1,121, representing about 15.7% of the country's total. Additionally, the actual use of foreign capital reached 7.04 billion yuan, accounting for 32% of Guangdong's total.

"Shenzhen is a very modern city. It has a lot of innovative companies in the technology sector. I think there's a very bright future for Shenzhen," said Siegfried Boerst, regional managing director of Legoland China, which is planning to open the world's largest Legoland resort in Shenzhen.