China's first special economic zone celebrated its 25th anniversary, which falls on August 26, by pledging yesterday to consolidate its leading position with further reform.

The Shenzhen "experimental field" was launched in 1980. With a good investment environment, capital input and policy support, it developed from a small southern Chinese fishing village into the fifth largest city in terms of gross domestic product (GDP) on the mainland in 2004 -- 342.3 billion yuan (US$42.2 billion) -- and the highest per capita GDP in the country, US$7,100.

However, the rapid development of other cities, especially those in the Pearl River Delta area, east China's Yangtze River Delta and north China's Circum Bohai Bay economic ring, has stolen much of the limelight from Shenzhen in recent years.

"With the changing situation, we should be bolder in reform, be more innovative and open up wider to make the special zone distinctly special," Shenzhen Party Secretary Li Hongzhong told a press conference while unfolding a blueprint.

Mayor Xu Zongheng said the government has set up a special office to spearhead reform and innovation.

It will deepen reform in nine areas including the market economy, fiscal and tax systems, and the running of state-owned enterprises, Xu said.

Nan Ling, head of the office, said that the team is working on five major projects, one of them being to make the decision-making process more democratic.

To achieve this, the government might streamline duplicate departments and introduce an accountability system for officials.

"We expect reform in Shenzhen to make big strides in the next three to five years," Nan said.

Li Luoli, president of the China Development Institute, a leading think tank in Shenzhen, said the government's decision on deepening reform is "far-sighted."

"Shenzhen's flourishing economy is not just due to preferential policies. It is also a result of a free development environment and pioneering spirits," Li said.

The central government has allowed Shenzhen to be a pioneer in many fields to break away from the rigid command economy. It was the country's first zone to start land auctions, launch a stock exchange, and establish private insurance companies.

Li suggested the Shenzhen government appeal to become the first special zone under the direct control of central government, rather than Guangdong Province.

(China Daily August 18, 2005)