China
The first four special economic zones were created in 1980 in southeastern coastal China and consisted of what were then the small cities of Shenzhen, Zhuhai, and Shantou in Guangdong province and Xiamen (Amoy) in Fujian province.
Who created special economic zones?
leader Deng Xiaoping
For these, Chinese Paramount leader Deng Xiaoping coined the name “special zones” with reference to the designation of another border region during the Chinese Civil War. The proposal was approved on July 15 and the four special zones were officially established on August 26, 1979.
What is the special economic zone in China?
China’s special economic zones (SEZs) are defined as small geographical areas that allow the integration of free-market principles to attract additional foreign investment.
How many special economic zones are there in China?
38 special economic zones
They are usually called “Special Economic Zones” (SEZs) in China; sometimes development areas. Initially introduced in the 1980s by the Chinese government within the scope of a policy change, the current number has grown to about 38 special economic zones (or similar) in mainland China, usually located at the coast.
Why are special economic zones important for investment?
Zones are a key investment promotion tool. The advantages of clustering and co-location economies are an important attraction for investors. In many countries, the incentives, infrastructure support and business facilitation in SEZs are meant to compensate for weaknesses in the investment climate.
When did special economic zones come into force?
In order to attract huge foreign investments into the country, the government announced the Policy. The Parliament passed the Special Economic Zones Act in 2005 after many consultations and deliberations. The Act came into force along with the SEZ Rules in 2006.
Who are the countries with special economic zones?
Following the Chinese examples, SEZs have been established in several countries, including Brazil, India, Iran, Jordan, Kazakhstan, Pakistan, the Philippines, Poland, South Korea, Russia, Ukraine, United Arab Emirates, Cambodia and North Korea. A single SEZ can contain multiple ‘specific’ zones within its boundaries.
How are regional development zones help the economy?
Regional development zones and cross-border zones spanning two or three countries are becoming a feature of regional economic cooperation. SEZs can help attract investment, create jobs and boost exports – both directly and indirectly, where they succeed in building linkages with the broader economy.
