# What makes Shenzhen what it is?
- Close proximity to high skill, low cost manufacturing labor
- Reasons for people all across the supply chain to be there
- Low cost of living
- A bunch of companies that are willing to accept very low margins
- Universities close to factories
- Huge gravity well for highly educated people
- Huge tacit knowledge importation via people making iPhones for Foxconn
- Massive infrastructure to get supplies there
- Close proximity to a financial center
- Close proximity to shipping centers
- Low Regulations
- Government subsidies
- Culture (which is frustratingly nebulous but real)
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