Shenzhen, city in southern China, in Guangdong province. Located on the border with Hong Kong on the Hong Kong-Guangzhou Railway, Shenzhen and the area around it became China's first Special Economic Zone in 1980. The Chinese government established Special Economic Zones when it began to open the economy to foreign investors. These zones offer lower tax rates than the rest of China and other incentives to investment.
Before 1980, Shenzhen, then called Bao'an, was an undeveloped town of 20,000 inhabitants. It grew rapidly once it became a Special Economic Zone. Its central location between Hong Kong and Guangzhou also made it an ideal place to locate industry. Light industry, especially the production of arts and crafts, textiles, footwear, clothing, medicines, and building materials, is important to the city's economy. Shenzhen also supplies food and water to Hong Kong. Population (1991) 204,972.
