Shenzhen Sets off on a New Journey

China Economic Weekly Issue 18， 2019

Shenzhen， once a fishing village adjoining Hong Kong， became the launch pad of Chinas reform and opening-up on August 26， 1980， when it was formally declared a special economic zone. In 2019， granted with a new historical mission to build a pilot demonstration area of socialism with Chinese characteristics， Shenzhen has again embarked on a trailblazing journey.

In 1979， Shenzhens economic aggregate was only RMB 197 million with a per capita GDP of RMB 606， less than one percent of Hong Kongs number. By 2018， Shenzhens economic aggregate had soared to RMB 2.42 trillion， exceeding Hong Kongs for the first time. Its adjacency to Hong Kong is definitely the citys huge geographic advantage. Without the historical prosperity of Hong Kong， it would not have been possible for Shenzhen to develop to its current status. Today， Hong Kong and Shenzhen have become even more intertwined socially， culturally， and economically.

Shenzhen is now moving to become an international innovation center for science and technology， which will buttress and enhance Hong Kongs status as an international financial center. Hong Kongs financial capacity， coupled with Shenzhens strength in science and technology， augurs well for the development of the GuangdongHong Kong-Macao Greater Bay Area in finance as well as science and technology， and accelerates formation of a hi-tech industrial chain for the entire region. This chain is a prime example of the Chinese model of development.

Orchestrated Opening-up

Xinmin Weekly Issue 33， 2019

Lingang Special Area， a newly added part of the China （Shanghai） Pilot Free Trade Zone， was officially launched on August 20， 2019. Lingang， 75 km from downtown Shanghai， is poised to become a new driver for Chinas deepening opening-up. Its a new town abundant in high-end resources and an attractive option for foreign investment. With its strong competitiveness， the special area will exert great influence on the international market.

Its creation can be traced back to November 5， 2018， when President Xi Jinping， in his keynote speech at the first China International Import Expo outlined the decision to expand the China （Shanghai） Pilot Free Trade Zone， in order to maximize Shanghais role in the countrys opening-up process.

In the view of Quan Heng， Party secretary of Shanghai Federation of Social Science Associations， Chinas journey in building an open economy has been marked by four landmarks， respectively the establishment of the Shenzhen Special Economic Zone， Pudongs development and opening-up， the setup of the China （Shanghai） Pilot Free Trade Zone， and the latest launch of the Lingang Special Area.

Shanghai and Shenzhen have been assigned great missions in turn. Their development has made people come to the conclusion that a citys status is not unchangeable and no preferential policy can guarantee everlasting development. Now the two cities rapid rise is reshaping the development pattern of cities in the Asia-Pacific and even the world at large.

Summertime Reading

Sanlian Life Weekly Issue 35， 2019

Written letters， old-fashioned and endearing， have long been discarded as the most popular means of non-verbal communication. However， picking up a collection of letters can unveil wonderful discoveries.

In Letters to Milena， more than just a lovers prattle， Franz Kafka revealed his quest for answers to issues that had obsessed him in his last years， including the source of his fear， creative nature of novels， and how to assess his painful and disintegrated life. From The Letters of E. B. White， the reader can feel Whites love for the countryside and gain insight into the rural life that inspired him. In Letters： Summer 1926， the struggling pain of Boris Leonidovich Pasternak and Marina Ivanovna Tsvetaevas sonorous expressions are vividly depicted. In contrast， Rainer Maria Rilkes Letters to a Young Poet， in a calm and introverted tone， provided a platform for the open and free confiding exchanges between two young poets.

Letters can also expand our knowledge about a person， by revealing unknown particulars about their life. In ancient Greece， letters were regarded as the eyes of the soul. Those who have not read the letters of a celebrity will not truly know them. Readers and researchers wanting to uncover something new in a certain span of history are well advised to read the valuable tidbits of information found in their letters rather than poring through orthodox history books.

Bracing for a Global Recession

Caixin Weekly Issue 34， 2019

Economic cycles are always punctuated by booms and recessions， which means a recession is inevitable. This time it is not coming quickly. The United State， the worlds largest economy， with its GDP accounting for 24 percent of the global total， has seen growth for 40 consecutive quarters， the longest economic expansion in its history.

However， even if delayed， a recession will still come. In the past month， a recession has become the new trending topic in the U.S. and Europe. Searches on Google show how major economies， including the U.S.， Germany， and Britain， are worried about a recession with its search frequency sharply rising since midAugust.

The iconic event signaling a recession is the U.S. treasury two-year/10-year yield curve inversion. On August 14 this year， the yield on the benchmark 10-year treasury note fell below the two-year rate for the first time in 10 years， triggering growing concern over a recession. The same day saw the Dow Jones Industrial Average plummet sharply， the worst drop this year.

The Union Bank of Switzerlands statistics show that since 1960， the timespan from the day that the treasury yield curve inverted to an economic recession averaged out at one year and nine months.