China's reform and opening up most failed? 'This city's' dire situation exposed, mocked as 'economically backward special zone'

Shantou, established as one of China's initial special economic zones (SEZs) alongside Shenzhen, Zhuhai, and Xiamen, has followed a markedly different development path. While its counterparts have flourished into economic powerhouses, Shantou has struggled, with its economy now lagging behind the national average. Locals wryly refer to it as an "economically backward special zone."

Analysis points to several critical factors behind Shantou's stagnation. Beyond a failed industrial transition, deep-seated issues of corruption, a closed-off local culture unwelcoming to outsiders, and a continuous brain drain have plagued the city. Despite having a population of approximately 5.6 million and a history as an early trading port, Shantou's per capita GDP in 2024 was only about 54,000 yuan, far below the national average of 100,000 yuan and less than a quarter of Shenzhen's figure. This economic disparity is stark, especially considering Shantou's GDP was four times that of Shenzhen in 1980.

The city's economic woes are further exacerbated by a downturn in China's real estate sector, with fixed asset investment in real estate plummeting by 38.8% in 2024. Shantou's economy has long relied on labor-intensive industries like toy manufacturing and textiles, which have seen declining exports. In 2025, toy exports fell 8.6% and apparel exports dropped 18.3%, contributing to an overall export decline of 9.1%.

However, Shantou is experiencing a modest resurgence in tourism. The local government has actively renovated old districts, transforming them into tourist attractions. In 2025, overnight visitors increased by 12.8%, and tourism revenue grew by 23.9%, providing a vital boost to the local economy. This development highlights that while policy support can accelerate growth, sustainable success hinges on robust systems, an open culture, industrial upgrading, and an environment that attracts and retains talent.