On April 8, 1979, Xi delivered a speech on the work conference of the CPC central committee. On behalf of the Guangdong provincial committee of the CPC, he requested the central government grant preferential policies for Guangdong's reform and opening-up, and delegate powers to Guangdong's government so that the province could boldly take the first steps. He suggested setting up some special zones in coastal regions near Hong Kong and Macao, especially for exchange and cooperation with foreign countries and to attract foreign investments. He believed that Guangdong would develop rapidly by relying on its advantageous location.

    He reported the idea to Deng Xiao-ping, widely known as the principal decision-maker in the establishment of SEZs. After listening to Xi's report, Deng said: "China's reform and opening-up should be initiated in southeast coastal regions. The southeast coastal regions' reform and opening-up should be initiated in Guangdong and Fujian. And Guangdong's reform and opening-up should start with an experimental plot...... You can mark out a piece of land and call it a special zone. The central government has no money, so you should do this by relying on your own resources." The comment later made Chinese history.

    From that point these reforming pioneers never stopped their innovation and hard work. Nowadays, few people can remember the name "Bao'an." In January 1979, Bao'an County was renamed Shenzhen. On July 2, 1979, Yuan Geng, executive vice board chairman of China Merchants Group, the Ministry of Communications' business arm in Hong Kong, led locals to reclaim land from the sea and founded the Shekou Industrial Zone in Nanshan District, Shenzhen, a move that marked the start of China's economic reforms and a turning point in China's economic growth.

    The speedy construction of Shenzhen Special Economic Zone represents something of a miracle. In the early period, every Shenzhen resident worked under the slogan, "Time is money and efficiency is life," as they engaged in large-scale construction of the city's infrastructure. The building of the National Trade Plaza was the pride of Shenzhen, because the builders set a record by "completing one story in three days," a fitting symbol of the "Shenzhen tempo."

    In the decade from 1979 to 1989, Shenzhen's GDP enjoyed a 35 percent average growth, unprecedented not only in China, but anywhere in the world. As early as 1984, Deng Xiao- ping openly confirmed the success of the Shenzhen experiment. Soon after that, the Chinese government expanded reforms from the four SEZs to 14 port cities in China's coastal area, based on Shenzhen's experience.

    Because Shenzhen was an experimental area, the central government lent strong support to the city and granted many preferential policies. In 1988, the State Council gave approval for Shenzhen, along with some other major cities, to be listed as independent entities in the state development plan, meaning these cities were given the rights of provincial-level economic administrations.

    However, due to the backward legal system in China at that time, more and more things required control and regulation. "Unregulated" market operations worried the government, ordinary people and foreign investors as they impeded the newly emerging economy. After more than a year's arduous work, in July 1992 the Standing Committee of the Shenzhen Municipal People's Congress and the Shenzhen Municipal People's Government were given the right by the Standing Committee of the National People's Congress (NPC) to draft local laws and set local regulations.

    While formulating local laws, Shenzhen legislators paid much attention to laws in other countries, as well as Shenzhen's local conditions. The laws and regulations set for Shenzhen covered five areas: regulating the behavior of individual traders and trade organizations, cultivating the market and the market system, encouraging fair competition, enhancing management of intermediary institutions, and establishing and improving a social security system. Authorities also learned from Hong Kong property management and set regulations for residential areas in Shenzhen. They advocated that house owners and professionals working in property management companies should deal with housing management together. They also decided to establish residents' committees, assisting property management companies to better manage communities. Their new management methods were appraised and supported by the Ministry of Construction (now the Ministry of Housing and Urban-Rural Development).