How to Enter China

Abstract

In late 1990s, the real significance of Special Economic Zones (SEZs) became effective. At that time, eight kinds of SEZs were focused on the implementation of economic reforms introduced during the next three decades after 1970s. Meanwhile, these zones have become the most attractive regions for foreign investments in Mainland China because importing and exporting goods are not as strictly regulated by customs and provides a tax heaven for firms who are involved in the Asia Pacific. Specifically, 15 bonded zones that aimed at driving regional development and optimizing soft environment of investment in China have been set up across the country. These SEZs share the characteristics of enjoying the most beneficial economic policies regime as well as the highest level of market liberalization, which are virtual factors of gaining acceptance from global trading partners of China. This model triggered the economic growth of China in the aftermath of the WTO accession, reflecting the procedure of China’s exploration to stimulate domestic economy, while stepping into the global trade. A key feature shown from the very beginning was the high engagement in trade and manufacture sectors. In fact, services carry with them the nonphysical feature; this has always resulted into a biased view that services were both non-storable and non-tradable, and finally constraining the entire system to an effective service development. In the attempt to address the difference underlying the types of SEZs, Economic and Technological Development Areas, Bonded Zones, and Free Trade Zones (FTZs) will be discussed.