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china economy tips
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Shenzen - this place has problems
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As the limits of the Shenzhen model have grown more and more apparent, eastern cities are increasingly trying to differentiate themselves, emphasizing better working and living conditions for factory workers or paying more attention to the environment.
Some inland cities have started to provide migrants social security, including pension and other insurance and in Chengdu, in Sichuan Province, residency controls are loosening up and education for migrant children is getting more attention.
In cities farther west, where the race for development got off to a later start, Shenzhen is now seen as all but irrelevant: too wasteful, too polluted, too dependent on foreign capital and on the ceaseless turnover of migrant labor.
"This path is now a dead end," said Zhao Xiao, an economist and former adviser to the Chinese State Council. After cataloguing the city's problems, he said, "Governments can't count on the beauty of investment covering up 100 other kinds of ugliness."
Some people , are drawn to Shenzhen by the promise of $100-a- month sweatshop salaries end up being trapped here, literally too poor to leave.
But others come from far away and are quickly disillusioned by how little they are able to save living in mainland China's most expensive city or quickly tire of the difficult work under often abusive factory bosses and return home.
Although the sweatshops built Shenzhen, the problems with the Shenzhen model are not limited to its factories.
While the city is dependent on migrant labor to keep its factories running, onerous residency rules discourage migrants from settling in the city and make it difficult for them to attain public services, from education to health care.
"The government has evaded its responsibilities toward migrant workers," Jin Cheng, a member of an influential local civic forum, Interhoo, said bluntly.
The resulting rootlessness has fed crime of a sort little seen elsewhere in China. Gunfights, kidnappings and gang warfare are rampant, and the signs of social dislocation are everywhere.
Crime rates are skyrocketing. Although the city does not publish data on crime, The Southern Metropolitan News, one of China's most reputable newspapers, reported that there were a lot of robberies in Bao'an, one of six districts in Shenzhen. By comparison, in Shanghai, a city of about 18 million, there were nearly no reported robberies for according to figures compiled by the city.
Stay tuned.
Shenzen, berlinstartup.de Asia-Pacific, Jens Hoffmann.
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