Transport Minister
Ye Fei asked Yuan Geng to direct his attention to the
China Merchants Steam Navigation Company in
Hong Kong, a
Qing dynasty-era commercial enterprise which the
PRC government had taken over in 1949 and kept in operation. Based on his in-depth knowledge of Hong Kong, Yuan Geng became convinced of the immense potential for market-led economic development on the mainland. His report on how to make better use of China Merchants was forwarded by the Transports Ministry to the
State Council on 9 October 1978, recommending opening up the mainland economy to the international market using
China Merchants as an instrument. This proposal was approved after three days. The policy context became even more favorable following the
Third Plenum meeting of December 1978, which cemented the political leadership of
Deng Xiaoping and the policy direction of
reform and opening up. Losing no time, in early January 1979 Yuan Geng prepared a pilot project in the form of an industrial zone supported by China Merchants, initially focused on
ship breaking, with exemptions from the mainland's constraints on economic activity. Yuan Geng chose to start with a geographically limited area as the Shekou Industrial Park (SIP), which later became the
Shekou Industrial Zone. The project was supported by
Transport Minister Ye Fei and Guangdong Revolutionary Commission chairman Zheng Sheng. It was swiftly approved in a meeting on 31 January 1979 in
Zhongnanhai attended by Party Vice Chairman
Li Xiannian, Vice Premier
Gu Mu, Vice Minister of Communications Peng Deqing, and Yuan Geng. Li Xiannian circled the
Nantou Peninsula, on which Shekou is located, on Yuan Geng's map of the Hong Kong area, to mark approval of the project and extension of its perimeter. Following this episode, the project was nicknamed "circled SIP." In 1985 he organized local elections in the Shekou Industrial Park, in which 2,000 residents and workers participated. In 1981 Yuan Geng coined the slogan "
time is gold and efficiency is life." It was endorsed by Deng Xiaoping during his visit of Shenzhen in January 1984 and subsequently approved as Shekou's slogan on February 24, 1984. Yuan's slogan was inscribed on a giant billboard in Shekou and became a motto of the
reform era. ==Later ventures==