Shenzhen success story continues despite difficulties

Shenzhen set a target of 6.5 percent for its gross domestic product growth in 2020, according to the annual government report released on Wednesday at the eighth session of the sixth Shenzhen Municipal People's Congress.

Delivering the report, Mayor Chen Rugui said the city has experienced "an extraordinary journey" last year and achieved stable and high-quality growth amid risks from both domestic and overseas sources.

Shenzhen, as the cradle of many high-tech firms such as Huawei and drone maker DJI, is a key hub of international trade and under direct pressure due to recent trade disputes.

Despite these difficulties, exports still climbed 2.3 percent. The quality of growth is also improving, as total profit of large enterprises accelerated more than 10 percent.

The mayor believes such growth derives from reforms to improve the business environment and preferential policies to ease companies' burdens. In 2019, tax and fee reductions in the city have amounted to 110 billion yuan, accounting for 4 percent of GDP.

To fulfill the growth target, the official said "stability is the priority and reform is our foundation to growth."

Based on an initial estimate, Shenzhen's GDP reached 2.6 trillion yuan in 2019, with a slowed growth rate of about 7 percent.