Shenzhen’s changing fortunes: from “city of young migrants” to uncertain future

Shenzhen, the birthplace of China’s first special economic zone, just across the river from Hong Kong, is facing a potential shift in its fortunes.

In 2022, the city experienced a population decline for the first time, attributed to the COVID-19 pandemic and changes in local government policies.

The population decline is expected to alleviate issues like traffic congestion and high rents.

However, the city’s former appeal to young people across China is no longer the main driving force behind its growth.

Established in 1979, Shenzhen received strong support from the government and became known as the “City of Young Migrants.”

It attracted motivated young individuals and fostered innovative companies like Huawei, BYD, and Tencent. Its population surpassed 10 million in 2010.

In 2022, the population declined by 0.1% to 17.66 million due to the strict zero-COVID policy and halted factory operations.

Migrant workers returned home, and the unregistered population decreased.

Despite the expectation of population recovery in 2023, the natural decline in China’s overall population poses a challenge.

Local government policies, such as tightened registration requirements, have also deterred migration to Shenzhen.

Historically high population growth strained public infrastructure, leading to issues like traffic congestion and rising rents.

Changes were deemed necessary to address overwhelming public services and problems like pollution.

The promises of employment, lenient registration policies, and economic success were once key elements of Shenzhen’s appeal.

However, as the population shrinks, doubts arise about the city’s ability to fulfill these promises.

The success of the film “Nice View” in 2022, which portrayed a young entrepreneur overcoming obstacles in Shenzhen, played on the notion that anyone can achieve success in the city.

With the population decline, some question if it was just a pipe dream.

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