THE State Council has confirmed that the Qianhai area in Shenzhen will have independent planning power, the city s development planner said yesterday.
The government intends for Qianhai to be developed into a demonstration plot, showcasing Guangdong and Hong Kong s cooperation in the service industries.
The State Council s decision means the area whose development planning is directly subject to the administration of the Central Government, rather than the Shenzhen and Guangdong governments, according to Song Ding, a professor with the China Development Institute (Shenzhen).
Only three other areas in the country that have the same privilege: Shanghai Pudong New Zone, Tianjin Binhai New Zone and Zhuhai Hengqin New Zone.
The approval removes political and legal obstacles for development in the area, Song said.
The area will be entitled to pilot policies and will be used to explore policies regarding taxes, currency value and administration of justice, Shenzhen s development and reform commission said.
Shenzhen will work with Hong Kong to develop the Qianhai area, in Shenzhen s Nanshan District, into South China s Manhattan, becoming one of the foremost service industry centers in the Pearl River Delta (PRD) area.
Shenzhen plans to invest 40 billion yuan (US$5.88 billion) in the 15-square-kilometer area over the next three years, earlier reports said.
The government is looking at the possibility of offering a low tax regime similar to Hong Kong s and of allowing free convertibility of the yuan in the area, according to the reports.
The State Council approved the general development plan for Qianhai in August. In plans submitted by Shenzhen to the central authorities, Qianhai will cooperate with Hong Kong on the joint development of a yuan offshore center in Shenzhen, according to news sources Sept. 6. (Vivian Li)
