China ’s Special Economic Zones Research Articles

China s Special Economic Zones, Hainan Province New Free Trade Zone: Review of Policies that Minimize the Regional Gap

This research article begins with the illustration of China’s special economic zone and regional inequity. We concluded that the decision to make Hainan free trade zone is one of the concrete step for the country to strengthen international trade and investment. However, shorten the negative list of foreign investment, can help to facilitate and attract the overseas investment. Until the attempt of special regional policies, the catching up and transformation did succeed in achieving the purpose of increase the development of the special economic zones, for this reason the coastal area advantages disproportionately. The Western Development policy that made better prosperous environment for foreign capitals in the western provinces did not show substantial absolute impact on encourages the growth and development in this region so far. The solution to this growing problem is to increase more special economic zones in China with regard to captivate foreign direct investment and stimulate the economy.

Evaluation Method of Customs' Price Evaluation Risks in China's Coastal Special Economic Zones

Dai, H. and Yin, W., 2020. Evaluation method of customs' price evaluation risks in China's coastal special economic zones. In: Yang, Y.; Mi, C.; Zhao, L., and Lam, S. (eds.), Global Topics and New Trends in Coastal Research: Port, Coastal and Ocean Engineering. Journal of Coastal Research, Special Issue No. 103, pp. 151–154. Coconut Creek (Florida), ISSN 0749-0208.The traditional Chinese coastal special economic zone customs price assessment risk assessment method has a large evaluation error. To this end, a method for assessing the customs valuation risk of China's coastal special economic zones is designed. Collecting relevant data on customs price evaluation in China's coastal special economic zones, determining risk factors for customs price evaluation in China's coastal special economic zones, calculating risk index weights for each indicator, and using a weighted average fuzzy synthesis calculation method to comprehensively evaluate customs price evaluation risks in China's coastal special economic zones. The experimental comparison results show that this design of the China coastal special economic zone customs' price assessment risk assessment method has less error than traditional methods, and can be applied to the actual China coastal special economic zone customs price assessment risk assessment.

Comparing the spatial and temporal dynamics of urban expansion in Guangzhou and Shenzhen from 1975 to 2015: A case study of pioneer cities in China’s rapid urbanization

The distinct urbanization process of China has attracted worldwide attention because of its impressive speed, massive scale, and policy intervention. However, the interrelationship between urban expansion and government policies is still not well understood. The Pearl River Delta Urban Agglomeration of China is the first national pioneering urbanization area since the implementation of the policy “Reform and Opening-up” in the late 1970s. Here we compared the spatial and temporal patterns of urbanization in two leading cities of the Pearl River Delta (i.e., Guangzhou and Shenzhen, the provincial capital and the first Special Economic Zone of China, respectively) from 1975 to 2015, using Landsat data integrated with urban growth and landscape metrics analysis, and examined possible footprints of major economic and urbanization policies. Our results illustrated that urban land areas in both Guangzhou and Shenzhen have experienced magnificent annual growth rates at 8.1% and 11%, respectively between 1975 and 2015. On average, Shenzhen witnessed substantially higher urban growth rate than Guangzhou during the past four decades, particularly in the initial period (1978–1990) when the Reform and Opening-up policy was launched and Shenzhen was designated as the first Special Economic Zone in China in the late 1970s. However, the speed of urban expansion in Shenzhen became considerably lower than Guangzhou from 2005 to 2015, subject to physical conditions and a series of urban land use policies. Both cities showed a generally similar dynamics of urban growth forms with leapfrogging as the predominant type of urban growth at first and then edge-expansion while the contribution of infilling in Shenzhen was higher than that in Guangzhou, especially since 2005. The urbanization processes characterized by landscape and urban growth metrics revealed that a diffusion-coalescence-diffusion-coalescence process was identified for Guangzhou, while Shenzhen was generally consistent with the diffusion-coalescence urban growth hypothesis.

Assessing Synergies, Linkages and the Role of Hainan Special Economic Zone in Development of Natural Rubber Ecosystem

China has successfully created value and wealth, by integrating its industrial and technological development with Global Value Chains through deployment of economic zones. This paper looks at Hainan Special Economic Zone (‘HSEZ’), which was established as the largest special economic zone in China and has grown into second largest contributor of Natural Rubber (‘NR’) production in China. HSEZ has played a key role in design and development of socio-economic policies by acting as a ‘greenhouse’ to test these policies, and in process delivering extraordinary results. The application of triple helix structure to design policies, utilize institutions and implement initiatives by the HSEZ has allowed it to develop some key clusters within the zone where NR ecosystem is regarded as a great accomplishment. This paper identifies the output variables for socio-economic impact rendered by the HSEZ, and output variables of the local NR ecosystem. It then correlates and regresses them to gain insight on the synergies and linkages between the HSEZ’s vibrant environment and the local NR ecosystem. It also looks into new technologies and innovations that are being diffused from universities and research centers with the help of the private sector, under liberal but protective regulations instituted by the government agencies, and seamlessly flowing into the local NR ecosystem. These innovations are helping to address challenges and transforming this traditional but strategic agricultural industry in China, thereby opening venues for its growth and sustainability. This study builds up on primary data collected from visit to the province, discussions with stakeholders in Hainan and analysis of secondary data from various public sources. The results show that HSEZ, has successfully created a ‘collaborative and conducive environment’ that binds key ingredients of the natural rubber ecosystem together. On one hand, NR based entrepreneurial ecosystem has formed significant linkages within the HSEZ thereby influencing its gross regional product, government revenue, employment, investments, trade and innovation. On the other hand, NR based entrepreneurial ecosystem retains its uniqueness, and strengthens its contribution to the global and regional trade supply chains. Keywords: Trade & Environment, Government Policy, Agriculture, Technological Change JEL: F18, L78, O13, O33

Impact of Urbanization on Ecosystem Health: A Case Study in Zhuhai, China.

The past decades have witnessed rapid urbanization around the world. This is particularly evident in Zhuhai City, given its status as one of the earliest special economic zones in China. After experiencing rapid urbanization for decades, the level of ecosystem health (ESH) in Zhuhai City has become a focus of attention. Assessments of urban ESH and spatial correlations between urbanization and ESH not only reveal the states of urban ecosystems and the extent to which urbanization affected these ecosystems, but also provide new insights into sustainable eco-environmental planning and resource management. In this study, we assessed the ESH of Zhuhai City using a selected set of natural, social and economic indicators. The data used include Landsat Thematic Mapper images and socio-economic data of 1999, 2005, 2009 and 2013. The results showed that the overall ESH value and ecosystem service function have been on the decline while Zhuhai City has continued to become more urbanized. The total ESH health level trended downward and the area ratio of weak and relatively weak health level increased significantly, while the areas of well and relatively well healthy state decreased since 1999. The spatial correlation analysis shows a distinct negative correlation between urbanization and ESH. The degree of negative correlation shows an upward trend with the processes of urban sprawl. The analysis results reveal the impact of urbanization on urban ESH and provide useful information for planners and environment managers to take measures to improve the health conditions of urban ecosystems.

La experiencia china con las Zonas Económicas Especiales y sus enseñanzas para el desarrollo regional del sureste mexicano

This paper seeks to analyze the key teachings to be learn from the Special Economic Zones (SEZ) in China and its success factors useful for other developing countries, particularly, the implications for the SEZ Project in South-Southeast Mexico. This research first conceptualizes the SEZ and presents their history. Next, it summarizes the experiences of development and lessons from the SEZ in China. Then, it characterizes the Mexican SEZ Project. The analysis section identifies the lessons that planners can learn from the Chinese SEZ. Although it may seem that economic policies, through enabling legislation to facilitate the foreign direct investment (FDI), will result in an improvement in the quality of life and in a reduction of poverty. Such a phenomenon does not work automatically and its impacts are not always clear and evident. The main challenges of the SEZ include a weak regulatory and institutional framework, the lack of effective strategic planning, weak governance and poor implementation capacity and inadequate infrastructure.

Improving socially inclusive development in fast urbanized area: Investigate livelihoods of immigrants and non-immigrants in Nansha Special Economic Zone in China

Social inclusion poses challenges in many areas, especially regarding immigrants. This study contributes to the understanding of the multidimensional nature of livelihoods of immigrants and non-immigrants and their associated satisfaction, with an empirical study of Nansha Special Economic Zone in China. Overall levels of immigrants’ livelihoods were found to be lower than those of non-immigrants, especially in the social and physical dimensions. Immigrants with higher livelihood capital were more satisfied than those with lower livelihood capital, and they were generally less satisfied with their livelihoods than non-immigrants at similar livelihood levels. These results advance our understanding of the situations of immigrants compared to non-immigrants, informing the policy-making process better dealing with provisions to improve living conditions in desired ways towards socially inclusive development.

Do Special Economic Zones Induce Developmental Spillovers? Evidence from India's States

Do special economic zones induce local development? Research drawing on the case of China's special economic zones suggests that subnational polities can target the location of export zones in order to catalyze local and regional socioeconomic development. Since 2006, a number of Indian states have pushed forward similar zones in the face of accusations of land grabbing, arguing that the zones will be engines for improvement in exports, employment, and infrastructure. I argue that local development spillovers are an important, albeit previously understudied, dimension by which to evaluate the effects of special economic zones. I then present the first systematic analysis of the developmental effects of India's SEZs, leveraging an original dataset on their locations, together with 2001 and 2011 census data containing a host of social and economic developmental variables. The findings show these SEZs have failed to bring about local socioeconomic development. To explain this absence of developmental spillovers, I provide a theoretical framework based on the crucial role of political economy incentive structures facing local politicians. I outline the mechanism through which Indian state politicians use state-owned development corporations for rent capture, undermining the potential effectiveness of SEZs and leading to their developmental failures. The combination of available means for extracting rents and the limited political constraints on such rent extraction leads to a lack of developmental spillovers. This framework can also help to explain the difference in the effects of SEZs in India and in China. These findings have theoretical importance for understanding the conditions under which subnational polities can use export zones and other export policies to catalyze development, and practical implications for understanding the mixed pattern of SEZ success across the world.

Spatial-Temporal Analysis and Stability Investigation of Coastline Changes: A Case Study in Shenzhen, China

Coastlines are some of the most important dynamic linear features on the Earth's surface. Conducting research on coastline changes is essential to improve the environmental management and development of the coast. In this study, Landsat satellite images that cover the entire coastal zone of Shenzhen, which was the first special economic zone in China, are used to study coastline changes. Multitemporal coastline information for Shenzhen from 1988 to 2015 is extracted based on the object-oriented classification approach. The overall classification accuracy of this approach can reach 85% or more when it is used to classify the land-use types present within the coastal zone in this study. Moreover, coastline change rates are calculated using a point-based approach. Coastline stability changes are analyzed, and driving rules are explored, using a data-mining approach that addresses natural and social factors. The research results demonstrate that the object-based approach can extract accurate coastline information from Landsat images and that the coastlines in Shenzhen have varied with time and location. The coastline changes in Shenzhen from 1988 to 2015 can be divided into two stages: one displays accelerated change (1988–2003), whereas the other displays decelerated change (2003–2015). Completely different change characteristics of coastline stability are found between the eastern and western coastlines in Shenzhen, and the differences are mainly reflected in the coastline's morphological changes and varying rules.

(Trends in China's Special Economic Zones and Suggestions for Korean Economy)

Korean Abstract: 이 논문은 최근 중국 경제개발구에 어떠한 변화가 일어나고 있는지를 분석하고, 이것이 한국경제에 어떠한 시사점을 주는가를 정책적인 시각에서 알아보고자 한다. 지역경제구조의 관점에서 볼 때, 중국의 경제발전은 외국인직접투자 자본을 적극적으로 이용하기 위한 경제개발구를 중심으로 하는 지역발전모형으로 요약될 수 있다. 성장거점으로서 중심적인 역할을 하는 경제개발구는 동부 중심의 지역구조, 제조업 위주의 산업구조, 조세정책 위주의 우대정책구조, 그리고 다양한 관리형태라는 구조적 특징을 가지고 있다. 최근 중국의 WTO 가입을 전후해서 경제개발구는 새로운 변화를 맞고 있다. 동부지역의 경제개발구는 질적 고도화 단계로 접어들고 있으며, 중서부지역의 경제개발구는 새로운 발전기회를 맞이하고 있다. 특히 서부대개발정책은 경제개발구의 환경변화에 주요한 요인으로 작용하고 있다. 이 논문은 외국직접투자를 중심으로 중국 경제개발구와 한국경제가 어떠한 관계가 있는가를 분석한다. 먼저 한국의 對중국 직접투자의 구조적 특징을 살펴본 후, 한국의 對중국 직접투자의 결정요인과 영향 그리고 문제점을 분석한다. 공간적으로는 중국 동부지역에 그리고 산업은 제조업에 집중하고 있는 한국의 對중국 직접투자는 지난 10년간 중국과의 경제교류에서 큰 발전을 보이고 있다. 그러나 현지조사에서도 나타나듯이 최근의 환경변화는 한국투자기업 특히 중소기업에게 커다란 압력으로 작용하고 있다. 중국 경제개발구의 발전 추세를 고려해 볼 때, 한국의 對중국 직접투자의 경우 첫째, 양국간 지속적인 교류 확대 필요, 둘째, 한국의 對중국 직접투자구조의 개선 필요, 셋째, 한국 국내투자환경 개선 필요, 넷째, 경제개발구 협력체제 구축 등이 필요한 것으로 보인다. English Abstract: China's Special Economic Zones(SEZs) have been entering a new development stage after China's entry into WTO. China has been developing ‘China's economic development model’, in which SEZs have ideally been combined with FDIs. China's SEZs concentrated in the east coastal region geographically, specialized in secondary industry, and put in practice many important favourable policies. China's SEZs also play an important role in regional development with the growth pole. At the time of entering the WTO, China's SEZs have been faced with new changes. This paper analyses this new change in China's SEZs, and considers the effect to Korea in the view of policy. In the past ten years, Korea has acquired a better development in the field of economic cooperation. The industrial structure of the two countries has become more and more closed. Especially, the FDI cooperation of the past ten years mostly concentrated on China's SEZs. From the view of country's spatial division, Korea needs to adjust FDI its strategy more diversely in investment regions and industries, and it needs more joint cooperation.

The Course of China’s Special Economic Zone and the Choice of Xiong’an New Metropolitan Zone

After the Third Plenary Session of the Eleventh Central Committee in 1978, the concept of special economic zones began to flourish in China. Following the concept of building socialism with Chinese characteristics, China's special economic zones have gone through the premier stages of Shenzhen, Xiamen, Zhuhai special zones, the transition stage of traditional market economy and international market, and a relatively mature stage of economic globalization. From the geographical point of view, for Shenzhen, Xiamen, Zhuhai, Hainan, Shantou, Kashi and Horgos these seven China special economic zones, the difference of targeted policies, determines its directions of unique development. From the vertical and horizontal perspectives, the development of China's special economic zones can be all-round observed. And the Xiong'an New Area, as the first special economic zone established under the leadership of General Secretary of the Communist Party of China, its great geographical resources, the great attention from the government draw significant concern. On the road of environmental protection development and scientific and technological development, the Xiong’an New Area should take a solid step.

Examining the Legislation in China's Special Economic Zones: Framework, Practice and Prospects

The delegation of flexible legislative powers to China's five Special Economic Zones (SEZs) (经济特区) in the reform era was attributed to both the endorsement of the Chinese central government and the strong commitment of SEZ officials. SEZs serve as a petri dish where market-oriented legislation was introduced and practiced, and later spread to elsewhere in the country. They ultimately gathered the momentum for turning the tide of contestation in the domains of ideology, economy and policy in favor of a market system, and created conditions favorable for the market-oriented legislation at national level. A more significant impact of SEZ legislation is that it serves as one of the main sources of reference for national legislation on the market economy. The SEZ legislation provides a series of rules on the market economy that are later written into national laws and regulations. Consistent with the increase of national legislation in number, SEZ legislation tends to lose its significance. Nevertheless, after three decade’s legislative practice, SEZ officials have created a unique reformist identity that is crucial for introducing legislative reforms in other domains critical to China’s long-term stability and development.

Impacts of land use and planning on island ecosystem service values: a case study of Dinghai District on Zhoushan Archipelago, China

Recently designated as a new special economic zone in China, Zhoushan Archipelago is going through a rapid land use change that is expected to have significant impacts on ecosystem services. However, there is no baseline of ecosystem service value (ESV) of the Zhoushan Archipelago up to date, making it impossible to assess any impacts of land use changes. In this study, we adopted the concept of “equivalent value per unit area of ecosystem services in China” and computed the ESV for 2006, 2012, and 2020 of a representative district, Dinghai, on the Zhoushan Archipelago. We then analyzed the spatial and temporal patterns of land use changes and their impacts on ESV. The results indicated that the ESV of Dinghai District declined by 59.3 M Chinese yuan ($9.5 M US dollars) from 2006 to 2012 and would further decrease by an additional 30.9 M yuan ($5 M US dollars) by 2020 according to its planned land uses. These declines in ESV were primarily due to increases in buildup areas and losses in wetland, farmland, and water areas. The results imply that more attention should be paid to controlling urban growth and protecting coastal wetlands in order to preserve valuable ecosystem services of the Archipelago.

Assessing special economic zones in China with the multi-sided platform model

Although many special economic zones (hereinafter SEZs) currently identified themselves as a “platform (often as physical constrictions for zone enterprises),” the academic support is inadequate. This paper offers an introduction to the burgeoning literature on two-sided (or multi-sided) markets and illustrates a feasible analysis on how to adopt this model in designing a well-operated system focusing on the land rentals within a apecial economic zone (SEZ), and provides some theoretical support in this research area. In many industries, platforms match relevant parties, e.g. customers to retailers, advertisers to readers, and facilitate interactions between them. Based on this, the paper tries to design a structure for analysing SEZs, which is considered as an efficient method for economic growth. Key characteristics of these markets, regarding network externalities, fee charging strategies and the relation between platform users are discussed first. Afterwards, the possibility of introducing this model into SEZs land use fee charging policies is examined. Finally, the paper provides some key economic insights on SEZs development under the suggested platform model.

Analysis of Business Development and Entrepreneurship in Fujian Province, China, with Recommendations for Policy Responses

As one of four coastal Special Economic Zones in China, business an entrepreneurship in Fujian has its own characteristics, especially the small the medium enterprises. Fujian Government has made great efforts to support the business and entrepreneurship development. Based on the policy review and qualitative study, many preferential financial policies have been made to reduce the difficulties of starting capital of business establishment. It is considered that these policies should be more specific to SMEs and entrepreneurship to get more resources, including ventures capital, innovation and business network. It should also focus on managerial aspects, including employee training, marketing, product service and supply chain. Entrepreneurship development conditions should be created to encourage new university graduates and unemployed people to be self-employed. Transforming business ideas into business action is important in that process.

Secular Trends in Growth and Nutritional Outcomes of Children under Five Years Old in Xiamen, China.

The purpose of this study was to examine secular changes in growth and nutritional outcomes of Chinese urban children under five years old, in 2009, 2012, and 2015. Cluster random sampling methods were used to select children under five years old in Xiamen, one of five special economic zones in China. Subjects (N = 71,229) under five years old (39,413 boys, 31,816 girls) were examined at three different times (22,576 in 2009, 24,816 in 2012, and 23,837 in 2015). Significant differences in the boys’ height and weight (p < 0.05) were found across the three time points; subjects in the 2015 sample were the heaviest and tallest, and they had the highest BMI (2009 < 2015; 2012 < 2015). Among the girls, those in the 2015 sample were similar to the boys (2009 < 2012; 2012 < 2015). In general, similar patterns were observed when mean values were analyzed by age. An increasing trend was found in the prevalence of overweight and obesity and a decreasing trend for stunting, underweight, and wasting. The results revealed that the burden of childhood under- and over-nutrition might constitute a public health concern in modern China.

Coastal Subsidence Monitoring Associated with Land Reclamation Using the Point Target Based SBAS-InSAR Method: A Case Study of Shenzhen, China

Shenzhen, the first special economic zone of China, has witnessed earth-shaking changes since the late 1980s. In the past 35 years, about 80 km2 of land has been reclaimed from the sea in Shenzhen. In order to investigate coastal vertical land motions associated with land reclamation, we proposed an elaborated Point Target (PT) based Small Baseline Subset InSAR (SBAS-InSAR) strategy to process an ENVISAT ASAR ascending and descending orbits dataset both acquired from 2007 to 2010. This new strategy can not only select high density PTs but also generate a reliable InSAR measurement with full spatial resolution. The inter-comparison between InSAR-derived deformation velocities from different orbits shows a good self-consistency of the results extracted by the elaborated PT-based SBAS-InSAR strategy. The InSAR measurements show that the reclaimed land is undergoing remarkable coastal subsidence (up to 25 mm/year), especially at the Shenzhen Airport, Bao’an Center, Qianhai Bay and Shenzhen Bay. By analyzing the results together with land reclamation evolution, we conclude that the ground deformation is expected to continue in the near future, which will amplify the regional sea level rise.

Do Place-Based Policies Work? Micro-Level Evidence from China's Economic Zone Program

Exploiting two geo-coded firm censuses, this paper examines the impact of China's Special Economic Zones on economic activity in the targeted areas. We find that economic zones have a positive effect on employment, output and capital, and increase the number of firms. We also find that firm births and deaths play a larger role in explaining the zones' effects than incumbents and relocations. Finally, a zone's effectiveness depends on a program's features. Capital-intensive industries exhibit larger positive zone effects than labor-intensive ones. Location characteristics such as market potential and transportation accessibility are not critical factors in enhancing the program effects.

Tourism-Led Land-Use Changes and their Environmental Effects in the Southern Coastal Region of Hainan Island, China

Wang, J. and Liu, Y., 2013. Tourism-led land-use changes and their environmental effects in the southern coastal region of Hainan Island, China. Journal of Coastal Research, 29(5), 1118–1125. Coconut Creek (Florida), ISSN 0749-0208. Tourism has been often considered as an effective way to promote economic growth for coastal areas in developing countries. As the most important tourist destination and the largest Special Economic Zone in China, Hainan chose tourism-led development and achieved rapid economic growth. This paper analyzes land-use changes driven by tourismled development and their environmental effects during a period of time from 1991 to 2007 in Sanya City, southern coastal region of Hainan Island. High-resolution remote sensing and detailed socioeconomic data were used in the study. Based on a combination of remote sensing and geographic information systems methods, a matrix of land-use change was constructed to identify land-use changes between 1991 and 2007. The outcomes indicate that the changes from farmland to construction land and from forestland to orchard are the main transformation types. From 1991 to 2007, farmland and forestland decreased by 15% and 29% respectively; on the contrary, construction land and orchard increased by 242% and 258%. The transformation from farmland to construction land mainly occurred in plains along the coastline, while the changes from forestland to orchard mainly occurred in middle platform areas. Booming tourism not only led to the increased demand for tourism infrastructure and rapid urban expansion, but also boosted the demand for tropical fruit products quickly. However, rapid increases of tourism infrastructures occupied large fertile farmland, urban expansion caused construction land increase and farmland loss, and forest was converted to orchard, driven by the high speed of market demand of fruit products. Tourism-led development restructured the land-use pattern dramatically, which brought about landscape fragmentation, vegetation degeneration, and coastal erosion. Irrational tourism and land development have destroyed Sanya’s tourism resources and dissipated its initial advantage to some extent, which will hinder the sustainable development of tourism. Finally, some suggestions are given to coordinate the tourism-led land development in coastal regions.

South Africa‟s Special Economic Zones – Inspiration from China?

Special Economic Zones (SEZ) have become investment- and industrial hubs for developing countries seeking economic growth and development since China successfully established its first economic zones in its southern region, mainly in Shenzhen, Xiamen, Shantou and Zhuhai in the 1980s. The „model‟ is sought after for application across Africa. Recently, South Africa, through its Department of Trade and Industry (DTI) has issued a draft bill which considers creating SEZs. What is the experience with SEZs in China and Africa and what are lessons from other such zones for South Africa? Special Economic Zones are designated geographic areas with specifically designated liberal commercial and economic policies aiming at attracting more foreign investments. China for many African countries is seen as an economic growth model; the „middle kingdom‟ ranks as the world‟s second largest economy. The increasing density of Sino-African relationships over the last decade has boosted investments and trade in Africa, and it has contributed to China‟s modernisation and its rise on the international scene. For example Shenzhen, which was a small village, has rapidly become a modern city right next to Hong Kong. With its Special Economic Zones, China has attracted outward Foreign Direct Investment which has enhanced the creation of employment, generated investments and technology transfer. Such success was achieved through economic reforms following the “open door” policy in the late 1970s, namely trade liberalisation and market openness, as well as extremely liberal labour regulations.