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The central government plans to make the Shenzhen Special Economic Zone the third "experimental zone for comprehensive reforms," after Tianjin's Binhai New Area and Shanghai's Pudong New Area, a move that experts say would enhance the city's status as a pilot city for more reforms.

While the new title is yet to bring any immediate practical benefits to Shenzheners, it is a boost for the city's confidence in continuous support from the central government, amid fear that the city may be losing its edge against the rising new zones of Tianjin and Shanghai.

Last year, Tianjin's Binhai New Area got approval from the central government for piloting foreign exchange reforms. Under the reforms, foreign exchange control will be loosened, with the yuan ultimately becoming convertible in the capital account.

Under the new policies, banks will be able to develop offshore finance in Binhai.

"The experimental comprehensive reforms in the Shenzhen Special Economic Zone and Shanghai Pudong New Area will be pushed ahead," the National Development and Reform Commission writes in a draft report on the economic and social development plan for the year 2007.

It is the first time the Shenzhen Special Economic Zone has been mentioned as an experimental zone for the "comprehensive reforms" in a central government report. The report will be sent to the ongoing National People's Congress meeting for approval.

Le Zheng, director of the Shenzhen Academy of Social Sciences, said the move meant Shenzhen would become one of the three reform pilot cities together with Tianjin and Shanghai.

The new title, if granted, would keep and even enhance Shenzhen's function and status in the reform and opening up progress of the city, he said.

"Shenzhen has always been regarded as a forefront for the economic reforms. But with the new title it may go further to reform comprehensively --- in administration, culture, and so on," said Le.

However, Le said the Central Government was unlikely to offer more favorable policies to Shenzhen. "The point is that the city should reform actively and create new systems by itself. It (Whether Shenzhen will benefit from the new status) depends on its own efforts," Le said in a telephone interview with Shenzhen Daily yesterday.

Lan Ling, director of the reform office of the Shenzhen Municipal Government, said Shenzhen Special Economic Zone had been carrying out comprehensive reform, and the national development and reform commission always supported Shenzhen in this aspect.

With the deepening of the economic reform, it has become urgent to push ahead reforms in the cultural and social administration systems, and these reforms have to undergo in an all-round way, said Lan. "Therefore, it is goes without saying that piloting comprehensive reform is important for Shenzhen," said Lan. "Writing the title into an official file will greatly push ahead Shenzhen's reform and innovation," Lan was quoted as saying by the Shenzhen Special Zone Daily yesterday.

(Shenzhen Daily March 7, 2007)