Title: Open Door Policy - Wikipedia
Headings: Open Door Policy
Open Door Policy
Contents
Background
History
Formation of policy
Subsequent development
In modern China
Applications in 20th and 21st centuries
See also
Notes
References and further reading
External links

Content: Special Economic Zones (SEZ) were set up in 1980 in his belief that to modernize China's industry and boost its economy, he needed to welcome foreign direct investment. Chinese economic policy then shifted to encouraging and supporting foreign trade and investment. It was the turning point in China's economic fortune, which started its way on the path to becoming 'The World's Factory'. Four SEZs were initially set up in 1980: Shenzhen, Zhuhai and Shantou in Guangdong, and Xiamen in Fujian. The SEZs were strategically located near Hong Kong, Macau ,and Taiwan but with a favorable tax regime and low wages to attract capital and business from these Chinese communities. Shenzhen was the first to be established and showed the most rapid growth, averaging a very high growth rate of 40% per annum between 1981 and 1993, compared to the average GDP growth of 9.8% for the country as a whole. Other SEZs were set up in other parts of China. In 1978, China was ranked 32nd in the world in export volume, but by 1989, it had doubled its world trade and became the 13th exporter. Between 1978 and 1990, the average annual rate of trade expansion was above 15 percent, and a high rate of growth continued for the next decade.