Innovation continues to fuel Shenzhen's growth

Bankruptcy ruling

China's first regulation on individual bankruptcy, for example, can provide a second chance for businesspeople. Since the regulation took effect on March 1, 2021, the Shenzhen court had reviewed more than 940 individual bankruptcy cases as of the beginning of this year, covering the three procedures of liquidation, restructuring and reconciliation under the new regulation.

In June 2021, the Shenzhen Intermediate People's Court made the nation's first bankruptcy ruling regarding an individual.

A business owner surnamed Hu had to close her store six years ago due to external reasons, and owed 4.8 million yuan to creditors. In 2018, she sold her house and used all of the 2.6 million yuan in proceeds to help pay her debts.

She continued to pay more each month since then, but her income was cut off entirely in 2020.

"I still want to pay off my debts, but the reality is I just can't make it," she is quoted as saying in a news release from the court.

Her payment was overdue for more than a year, and the accumulated debt pushed her to "the darkest days" of her life, she said.

The individual bankruptcy judgment gave Hu a chance by exempting her from paying any remaining debt following a three-year observation period, during which she needs to report her income and spending, and continue to make payments toward her debts.

Hu said it was like being "reborn".

"In a few years, we will be free from debt. ...Regulations and laws are not ruthless, and we really need to believe in the law."

The regulation sets up a system for entities to withdraw from the market by rule of law, but it does not help them avoid paying debts, said Cao Qixuan, chief judge of the Shenzhen Bankruptcy Court at the Shenzhen Intermediate People's Court.

He said he believes that Shenzhen "needs such a system and should take more responsibility for making new rules, because the city has diversified and prosperous commercial activities.

"We have fully activated the personal bankruptcy system design, popularized the concept of individual bankruptcy and protected the vitality of innovation and entrepreneurship," Cao said.

"Shenzhen has accumulated valuable experience for the national practice of an individual bankruptcy system," he added.

Innovative reform measures have also brought down-to-earth benefits to people's lives. The University of Hong Kong-Shenzhen Hospital, which opened in 2012, was built and funded by the Shenzhen government and has become an integral part of the nation's medical reform process.

It is the first hospital to pilot the Hong Kong and Macao Medicine and Equipment Connect policy, which was issued by the National Medical Products Administration in November 2020.

The program allows designated mainland hospitals to use Hong Kong-approved drugs and medical devices without prior certification from the National Medical Products Administration, which otherwise could take years for approval.

According to the hospital, 13 urgently needed drugs and four medical devices had been imported as of March under the program, benefiting more than 450 people.

The innovative medical policy benefits not only local residents but also patients in other areas of the mainland. The first medical device obtained under the medical connect program was used to perform an operation on a 9-year-old boy who is from a small town in Hebei province and who has severe scoliosis, a medical condition in which a person's spine has a sideways curve.

While conventional treatment would involve inserting a growth rod into the child's back, a surgical procedure that would need to be repeated every six months until the boy fully recovered, the new treatment introduced from Hong Kong required a single minimally invasive operation that was performed at the University of Hong Kong-Shenzhen Hospital.

Integration explored

Moreover, Lo Chung-mau, secretary for health of the sixth-term Hong Kong SAR government and former chief executive of the University of Hong Kong-Shenzhen Hospital, said the hospital is exploring new ways to integrate the mainland and international medical training systems in order to bring in more top international medical professionals.

Lo said that he is encouraged by the central government's reform measures supporting Shenzhen's building of a pilot zone for socialism with Chinese characteristics, since the measures mention medical care in particular.

The next mission is to further promote cross-boundary medical cooperation and training, Lo said.

"In the past decade of reform, we remained true to the original aspiration of exploring more innovative methods in order to provide pilot experiences to cross-boundary healthcare and building in Shenzhen a pilot demonstration area for socialism with Chinese characteristics," he said.

The CPC Central Committee and the State Council, China's Cabinet, unveiled a guideline in 2019 on supporting Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics. In 2020, a detailed implementation plan for the guideline was released to support Shenzhen with 40 major reform measures.

"In the next stage, we will firmly shoulder the historic mission of building a pilot demonstration zone and take the lead in building a world-class international, innovative and modern city," Vice-Mayor Huang Min said earlier this year.

International talent and industry heavyweights are swarming to the thriving city. In 2021, Shenzhen's import and export of goods reached a record high of 3.54 trillion yuan, ranking first in China for the 29th consecutive year, according to Shenzhen Customs data. More than 6,000 foreign-invested enterprises have been established in the city.

In particular, the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, approved in 2010 by the State Council, has become a hub for Hong Kong and Macao enterprises and investors, as well as for cross-boundary cooperation breakthroughs, Huang said.

In 2021, the number of Hong Kong-invested enterprises in Qianhai totaled 11,900－double the number in the previous year.

Qianhai has launched a variety of pioneer measures to promote the integration of Shenzhen and Hong Kong, including the first joint venture between the mainland and Hong Kong in the legal profession, an international arbitration center, and the first investments under the Cross-boundary Wealth Management Connect program.