Despite Shenzhen’s reputation for openness, foreign companies still encounter various barriers such as local protectionism, preferences for domestic firms and requirements to buy Chinese products, said Allan von Mehren, chief China analyst at Danske Bank.
“You can argue that Shenzhen as a symbol of openness often contrasts with the reality many foreign businesses meet when they enter the Chinese market,” he added.
THE SHENZHEN ADVANTAGE
Yet for foreign businesses to navigate and overcome those barriers, Shenzhen offers an advantage over other Chinese cities – the ability to develop ideas quickly and turn them into products.
When Singaporean entrepreneur Amit Kumar arrived at Shenzhen’s Chaihuo Makerspace in June, he brought two bare circuit boards and a 3D-printed casing, according to its general manager, Ye Yu.
Kumar, founder of Singapore-based robotics and edtech firm Farm2Future Innovations, was developing an AI-powered tutor designed to answer school questions in multiple Indian languages.
Despite having no previous soldering experience, Kumar managed to assemble two working prototypes, Ye said – also developing firmware for an animated interface and launching a pre-order page within 48 hours.
He planned to return to Shenzhen to develop production moulds, build a supply chain and finalise the product, Ye added.
