After a year studying the economic zones of Shenzhen and Faisalabad at Tsinghua University, I had the opportunity to observe China’s economic laboratory up close, where a border issue transformed first into politics, then into industry, and finally into technology. Inside a display case at the Shenzhen Museum of Reform and Opening Up lay some old documents. Their color had faded with time, and the seals looked like relics from a bygone era. These weren’t ordinary travel documents, but border permits. They were once used to determine who could enter the territory and who was allowed to approach the border. I stood for a while in front of the documents. The permits inside the display case represented a Shenzhen where the movement of people was restricted and border management was a major problem for the state. Just a few rooms away, the same exhibit showed how the area later became China’s most important economic gateway to the world.
At LEJU Robotics, I encountered a different system. Now, instead of paper permits, a software platform assigned tasks to robots. The platform determined which robot would retrieve goods, sort parts, pack products, or assist on an automobile assembly line. On one hand, there were the old documents that regulated human movement, and on the other, the modern system that determined the movements and responsibilities of robots in factories. There was a gap of almost half a century between these two scenes. For me, the true story of Shenzhen lay hidden in that gap.
This wasn’t my first visit to China. I have visited China in various capacities since 2023, traveling through several provinces as a journalist and completing a master's degree in International Public Policy at Tsinghua University. My final research thesis at Tsinghua focused on the Shenzhen Special Economic Zone, which I studied in comparison with the Allama Iqbal Industrial City in Faisalabad. My main question was how a special economic zone can move beyond industrial land, roads, and tax incentives to become a functioning economic system. During this research, Shenzhen was presented to me in the form of policy documents, academic articles, and economic statistics. Now, standing in the museum, I can see the same policy reflected in old photographs, permits, architectural models, and historical artifacts. The city that had been the case study for my dissertation a year earlier was now telling its own story.
One image in the museum, from August 1978, caught my eye. It showed the then-leader of Guangdong, Xi Zhongxun, alongside local officials and citizens. The caption in Chinese indicates that Xi Zhongxun was inspecting the Huang area. In the photograph, I could also see his son, China’s current president, Xi Jinping. inspecting the Huang area. Decades later, that same Xi Jinping would assume the leadership of China. Two generations of Chinese political history and a key moment in the era of early reforms were captured in a single image.
The exhibition text describes the need to restore production and social order, prevent illegal border crossings, improve the quality of life for the population, and develop the economies of the border areas. Here, an aspect of Chinese reform is revealed that is often lost amidst mentions of high growth rates and modern cities. On the other side of the border, Hong Kong enjoyed better economic opportunities, while the population of the Chinese border areas suffered from poverty and limited prospects. Some people tried to cross the border in search of a better life. This situation could not be permanently resolved solely through surveillance or force. The fundamental question the state faced was, if people were moving across the border in search of better opportunities, why weren't economic opportunities also being created on this side? Thus, a border and social problems became a matter of economic reform.
In 1980, Shenzhen was granted special economic zone status. It was given relatively wide latitude to experiment with foreign investment, export industries, land use, business management, and market-oriented methods. This was the basic principle of China’s development approach. First, try policies in a limited area, observe the results, identify mistakes, improve the methods, and if successful, expand them to other areas. The central government provided political permission and general direction, while local governments were given the opportunity to try new ways of investing, manufacturing, and urban development. The market tested these experiments in practice, and policies changed based on the results. Shenzhen did not emerge from a single, perfect plan. It was the result of continuous experimentation, improvement, and adaptation.
An important question remains, who was the political mind behind this transformation? It was Deng Xiaoping, who set China on the path of reform and opening up. His vision was translated into practice in Guangdong by leaders such as Xi Zhongxun, but the foundational idea that enabled Shenzhen’s transformation from a border region into a global industrial hub came from Deng Xiaoping.
Shenzhen's location was decisive in its selection. Its proximity to Hong Kong provided access to capital, global trade, export markets, business expertise, and the international economy. China has created a base for export manufacturing to its vast workforce and low production costs. But success wasn't solely based on offering tax breaks to foreign companies. Investors were provided with land, electricity, roads, ports, customs, labor, housing, local suppliers, and a decision-making administration. This combination transformed an economic zone into an industrial system. First fans and radios, then robots. The museum recreated the scene of an old-fashioned grocery store. The shelves were overflowing with televisions, radios, fans, clothing, and everyday items. Above them were the message, this scene was key to understanding modern-day Shenzhen. China’s industrial journey didn’t begin with artificial intelligence, 5G, or humanoid robots. It began with the fundamental problem of how to increase production and provide the population with essential goods. First came fans, radios, clothing, and household items. Then came electronics, mobile phones, and telecommunications. After that, local companies turned to research, software, and artificial intelligence. It was a gradual development; each new stage built upon the capabilities of the previous one.
“Once here, you’re from Shenzhen forever.”
A phrase was prominently displayed on the airport’s giant screen upon arrival in Shenzhen. This isn’t just a welcoming slogan, but an expression of the city’s social identity. Much of Shenzhen’s population came from other cities and provinces. Young workers, engineers, entrepreneurs, and technicians flocked to the city in search of better opportunities. Shenzhen wasn’t built with capital alone, It was built on the labor of millions of people who left their home countries to start a new life here. This success came at a price. Urban settlements, which provided affordable housing for migrant workers, were an important, albeit informal, part of industrial development. Over time, problems arose, such as reconstruction, the high cost of housing, labor pressure, and the displacement of low-income workers. Thus, the story of Shenzhen is not limited to policymakers and large corporations, it is also about the anonymous workers who ran its factories.
A visit to Huawei's headquarters represented the next stage in Shenzhen's development. The initial success of an economic zone can be seen in the arrival of factories and increased exports. However, the true test of long-term success lies in whether the local economy manages to move beyond manufacturing foreign products and generate its own research, technology, and brands. Huawei is a symbol of this industrial evolution. Shenzhen began by manufacturing products for global companies, then developed local supply chain and engineering capabilities, and from that environment emerged companies that competed globally.
LEJU Robotics envisioned the next step on that path. The company included warehouse retrieval, parts sorting, packaging, screwing, vehicle assembly, and express sorting among the potential industrial tasks for robots. These robots were being developed not to wave at trade shows, but to work in factories. Shenzhen once needed millions of human hands to operate its factories. Now, that same city is developing machines that will be able to perform some of the work of those same factories in the future.
Lessons from Shenzhen for Pakistan’s Special Economic Zones
A direct comparison between Shenzhen and Allama Iqbal Industrial City is not appropriate because the political, historical and economic contexts of the two are different. However, some basic principles can be learned from Shenzhen.
A special economic zone is not limited to land, roads and tax incentives. Reliable energy, an efficient one stop service system, a skilled workforce, strong logistics and policy continuity are essential for its success. It is also crucial to link foreign investment with local industries, universities and suppliers so that knowledge, skills and technology are transferred within the country rather than simply accumulated. The success of Allama Iqbal Industrial City and other special economic zones in Pakistan should not be measured by land sales, contracts or inauguration ceremonies. The right measure should be how many industries became operational, how many jobs were created, how many local suppliers were integrated into the global value chain, and how much exports increased.
As I left the Shenzhen Museum, an image from 1978 flashed through my mind, Xi Zhongxun surveying the scene, a young Xi Jinping standing behind him. At that time, the focus was on providing economic opportunities for people. Today, Shenzhen is working on the future of artificial intelligence and robotics.
The real lesson for Shenzhen is not to copy its buildings, but to understand the problem, experiment on a small scale, learn from mistakes and maintain policy continuity for decades. The real test of Pakistani economic zones will not come in their early days, but when they move beyond simply acquiring land and offering incentives to build local industries, fostering new skills, exports and future technologies. Otherwise, the word “special” will remain in their names, not in their results.