ABSTRACT
Shenzhen presented a picture of success under China's policies of opening up to the outside world. Central government leaders knew from the outset that China had to provide Shenzhen extensive subsidies in both infrastructure and project capital investment. Development in Shenzhen was led by foreign capitalism, rather than by state plan. Without doubt the state subsidies of Shenzhen's infrastructure, the capital investment by interior firms, and flow of trained manpower to Shenzhen helped stimulate other parts of China. The most important reason for Shenzhen's failure to introduce advanced equipment was the inadequacy of the investment environment despite intensive infrastructure development. As authorities in Shenzhen emphasize, Beijing's decisions made the Zone possible, and would determine its future. The most revealing measure Beijing took was to make the boundary between Shenzhen and the Chinese interior into a physical "control line." National unity and unification took priority over state controls that would destroy a fruitful growth of local capitalism.
