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Special Economic Zones of the People's Republic of China

Special Economic Zones
PR China-SAR & SEZ-English.png
A map showing the locations of the Special Economic Zones
Simplified Chinese 经济特区
Traditional Chinese 經濟特區

Special economic zones of China (SEZs) are special economic zones located in mainland China. The government of China gives SEZs special (more free market-oriented) economic policies and flexible governmental measures. This allows SEZs to utilize an economic management system that is more attractive for foreign and domestic firms to do business in than the rest of mainland China. In SEZs, "...foreign and domestic trade and investment are conducted without the authorization of the Chinese central government in Beijing." SEZs offer "tax and business incentives to attract foreign investment and technology".

Since the late 1970s, and especially since the 3rd Plenary Session of the 11th CPC Central Committee in 1978, the Chinese government decided to reform the national economic setup. The basic state policy has focused on the formulation and implementation of overall reform and opening to the outside world. During the 1980s, China passed several stages, ranging from the establishment of special economic zones and open coastal cities and areas, and designating open inland and coastal economic and technology development zones.

Since 1980, China has established special economic zones in Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province, and designated the entire province of Hainan as a special economic zone. In August 1980, the National People's Congress (NPC) passed "Regulations for The Special Economy Zone of Guangdong Province" and officially designated a portion of Shenzhen as the Shenzhen Special Economy Zone (SSEZ).

In 1984, China further opened 14 coastal cities to overseas investment: Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai. Since 1988, mainland China's opening to the outside world has been extended to its border areas, areas along the Yangtze River and inland areas. First, the state decided to turn Hainan Island into mainland China's biggest special economic zone (approved by the 1st session of the 7th NPC in 1988) and to enlarge the other four special economic zones.


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