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Government policies: Special Economic Zones (SEZ)

Government policies: Special Economic Zones (SEZ). China’s Regional Policy 5-year plans. What is a Special Economic Zone?. 1980 – Shenzhen SEZ set up – 1 st of many Designed to attract investors – foreign Special tax incentives for foreign investors Some joint ventures – Sino-British etc

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Government policies: Special Economic Zones (SEZ)

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  1. Government policies:Special Economic Zones (SEZ) China’s Regional Policy 5-year plans

  2. What is a Special Economic Zone? • 1980 – Shenzhen SEZ set up – 1st of many • Designed to attract investors – foreign • Special tax incentives for foreign investors • Some joint ventures – Sino-British etc • Provincial level government • Mainly export-oriented • Market-driven • Largely labour-oriented • Increasing no’s of high-tech industries

  3. China’s first SEZ

  4. http://news.xinhuanet.com/english/2009-05/22/content_11416541.htmhttp://news.xinhuanet.com/english/2009-05/22/content_11416541.htm

  5. Why Shenzen? • Close to Hong Kong – attract investment from established firms there • Experiment in “socialism with Chinese characteristics” • City population now over 8 million • Considered a successful project – taken up elsewhere • Focus of Pearl River Delta area – China’s economic powerhouse • 1990s - Shenzhen "one high-rise a day and one boulevard every three days".

  6. Shenzen, & from Hong Kong

  7. Rapid growth • 1982 – 350,000 • 1990 – 1.3 mill i.e., a 245% increase • 2000 – 2 mill, i.e., a 477% increase • 2010 – 10.4 mill (approx 48% increase)

  8. Which firms? Primarily manufacturing (often very high technology) but also, increasingly, tertiary industries: • IBM • Huawei (telecommunications) • Skyworth (electronic components) • Apple - Taiwanese firm makes iPods, iPhones etc • Walmart • Ping An Insurance • Banking – China Merchants Bank • 2010’s GDP - 95,000 yuan (US$14,615), 4th in country (same as Argentina & Malaysia, more than Lebanon & Mexico!)

  9. What about the rest of the country? • The core-periphery concept applied to China: • Core – the eastern coastline & southern China to Hong Kong • Periphery – the rest of the country • http://news.bbc.co.uk/1/hi/programmes/impact_asia/8655134.stm • What is the Core & Periphery concept?

  10. https://www.youtube.com/watch?v=y0pq1qM5rJU • https://www.youtube.com/watch?v=a70tmppdo_I

  11. Government strategic plans first begun in 1953 Each focuses on a particular strategic development need. 1st Plan – State ownership;collectivisation of farming along Soviet lines; centralised planning. Current (12th) 2011 – 2015. Current Plan includes: secure economic growth & economic structure, urbanise the population – 52% Develop HEP & nuclear energy encourage sound, sustainable developments Increase length of high speed rail line, roads, new airport for Beijing New development inland Coastal areas = R & D & high end manufacturing, services. Affordable housing Encourage FDI – agriculture, high-tech inds, environmental practices Control population @ 1.3bn. 5-year plans

  12. Since the 1978 Reforms national & regional development have been the main focus of policy making. Regional policies/strategies: Coastal Development Strategy, Metropolitan Growth Pole Strategy, Western Development Strategy, Rejuvenating Northeast Strategy Developing the Middle Area Strategy

  13. January 2012 • 13. Examine the factors responsible for the growth of China’s economy. [25] • Deadline: Thursday 15th January

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