Title: The Development of China’s Special Economic Zones | Internships China
Headings: SEZs for China’s Economic Growth
The Development of China’s Special Economic Zones
SEZs for China’s Economic Growth
The Fast Development of Shenzhen
Attract Foreign Investments
Special Economic Zones Classifications
Economic and Technological Development Zones (ETDZ)
Free Trade Zones (FTZ)
The Growth of Free Trade Zones Across China
Free Trade Zone Investment Restrictions

Content: These improvements led to a sharp increase in overseas investment in SEZs and ultimately contributed towards the success of the zones in China. Another factor that can be attributed to the eventual success of SEZs in mainland China was the fixed 15% income tax applied to partly foreign owned enterprises. Previously, such enterprises paid a 33% tax in the rest of China or 17% in Hong Kong. This was a huge incentive to overseas investors. Companies were also given exemptions from other local taxes and were allowed to export goods duty-free. Since 1982 China’s SEZs have been developing at an incredible speed. Shenzhen itself has been especially successful. In 1992 Shenzhen attracted 14% ($4.3billion) of China’s total foreign investment. The city is now one of China’s main import-export hubs as well as a leading manufacturing base. The initial success of the SEZs led the Chinese government to sanction more foreign trade areas in cities including Shanghai, Dalian, Ningbo and Tianjin.