Friday, July 11, 2025

Shenzhen, The Silicon Valley of the East"

 

AI praises: “strong and engaging”

 

China’s remarkable economic success owes much to the relentless hard work of its people. From students to professionals to factory workers, everyone contributes—something I discuss in my other article, “My Coconut Theory.”

 

Chinese high school education is often described as about four years ahead of its U.S. counterpart. Luckily for us, we can still attract top talent from around the world. But if we don’t recognize our own shortcomings, we can’t hope to fix them.


Watch: Professor X’s Perspective

Start by watching this insightful video—it offers context on the cultural and educational differences that help explain Shenzhen’s rise.:

 

From Fishing Village to Tech Hub

In just a few decades, Shenzhen has transformed from a small fishing village into a modern metropolis with over 12 million residents. Often called the “Silicon Valley of the East,” it’s possible that one day we’ll be calling Silicon Valley the “Shenzhen of the West.

 

Shenzhen is a pioneer in green transportation. It may be the first major city where all buses are electric, along with most taxi cabs. If you’d invested in the entire Shenzhen Stock Exchange years ago, you might be so rich you wouldn’t need to read any of my investing books!


The Speed Advantage

In many places, developing a new product can take nine months. In Shenzhen, it might take just three. Why? Because suppliers, manufacturers, and skilled labor are all next door—or even down the street.

 

Shenzhen’s advantage is no longer about cheap labor or tax incentives. It’s about highly trained engineers, technicians, and researchers. That’s why tech companies from around the world flock there to set up shop—they know they need Shenzhen to stay competitive.

 


High-Tech Exports and Narrowing Gaps

Products designed in Shenzhen and built in a town close by are sold all over the world. If you’ve been living in a cave for the last decade (a joke), you might not realize how quickly China is closing the gap in technology, science, and infrastructure.

 

Thanks to Deng Xiaoping’s vision, Shenzhen has become one of China’s wealthiest cities—if not the wealthiest.


Your Homework

Learn more about Shenzhen:
Wikipedia - Shenzhen

 

Extra Credit Questions:

  • Why is copying existing technology (to improve it or adapt it for new uses) both creative and profitable?
  • Can other countries replicate Shenzhen’s model? Will they succeed?
  • Do you agree with the idea in the video that open source promotes copying technology without direct compensation?
  • What is a 9-year-old here likely doing with no homework?
  • Is it really ‘too early’ for a Chinese 9-year-old to be studying electronics and programming?

 

Have a good day, class. And no video games today.


My Experience in Shenzhen

Shenzhen is clean, modern, and arguably has a higher living standard than many other Chinese cities. Seniors enjoy plenty of public benefits. The streets are safe (with all the cameras in every street and facial recognition technology) and tidy. I didn’t even see a single beggar—and even there’s a rumor that they might accept e-pay! I didn’t find homeless folks either.

 

Entire blocks in Shenzhen are home to major tech companies—companies that our government is actively fighting.


Recommended Videos

https://www.youtube.com/watch?v=bcVOGq4e3-8


Sidebar: Time to Revise the Business Textbook

 

Before we wrap up, let’s talk about what Shenzhen’s rise says about our own business education.

 

Our college business textbooks still teach us “buy and make” and “just-in-time inventory.”

 

Outsourcing nearly everything to China didn’t just cost us jobs—it also eroded entire supply chains and even threatened national security. Globalization made corporations rich, but now we’re confronting its downsides.

 

We need to preserve at least some domestic manufacturing capacity—even if “buying” seems cheaper than “making.” The pandemic and other disruptions have shown us how a single missing component from overseas can halt an entire production line.

 

 

AI Reviews: TonyP4Idea: AI Reviews: my article "Shenzhen, The Silicon Valley of the East"

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