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53-498: Haicang and Xinglin districts were designated " Taiwan Businessmen Investment Zones" on 20 May 1989, and Jimei District was designated in 1992. Foreign investment enjoys the same economic policies as in the special economic zone. Xiamen is in southeastern Fujian, China, beside the Taiwan Strait. The Kinmen Islands administered by Taiwan lie roughly 10 km away. Xiamen is next to Hong Kong, Macau and Taiwan. Xiamen has

106-820: A "reversal of fortunes" in China's dealings with foreigners since the century of humiliation . Researcher Zongyuan Zoe Liu writes that "[t]he success of these cities as 'red' treaty ports represented another step in China's overall reform and opening-up plan while legitimizing the leadership of the CPC over the Chinese state and people." Primarily geared to exporting processed goods, the five SEZs are foreign trade -oriented areas which integrate science, industry and innovation with trade. Foreign firms benefit from preferential policies, such as lower tax rates , reduced regulations and special managerial systems. Since its founding in 1992,

159-564: A center for international trade. Xiamen’s GDP growth rate as of 2019 was 7.9% which outpaces almost all other Chinese cities. Xiamen’s GDP also passed Taiwans in 2020. A decade following its establishment as a Special Economic Zone, Xiamen has witnessed remarkable economic growth. According to the Fujian Provincial Bureau of Statistics, the total gross domestic product (GDP) of Xiamen has increased by approximately sixteenfold, while GDP per capita has quadrupled in comparison to

212-671: A focus on manufacturing consumer goods with the goal of transitioning to producing machinery, photovoltaic materials, and chemicals. It received support from China's Ministry of Commerce and the Export-Import Bank of China . As of March 2020, the Sihanoukville Special Economic Zone had 174 factories employing more than 30,000 people. The RIP is China's largest industrial cluster and manufacturing export area in Thailand. As of late 2018,

265-559: A good harbor, with a depth of 12 meters or more. The harbor is wide and rarely foggy or frozen and less silted, so cargo ships can enter and leave at essentially any time. Since the Ming and Qing dynasties, Xiamen has been one of the important ports for foreign transportation and trade in China. The Xiamen Special Economic Zone, which originally covered a boundary of 2.5 km in Xiamen City, was expanded to 131 km in 1984, encompassing

318-596: A national demonstration zone for Reform and Opening Up, starting with an investment project in Shekou prepared by Yuan Geng on behalf of the Hong Kong -based China Merchants Steam Navigation Company . This project, initially a ship breaking facility, was approved by Li Xiannian on January 31, 1979. In April 1979, Xi Zhongxun and other Guangdong officials presented in Beijing a proposal to give broader flexibility to

371-651: A percent more of the cities GDP to R&D spending. Xiamen will also continue to invest in the core of their industries, including "trade and logistics, financial services, software, information and technology services, and creative cultural tourism". With each Special economic zones and its own set of preferential policies, Xiamen’s most recent incentive plan April 13, 2018 encapsulates: Opening Wider to Foreign Investments Attract and retain Foreign Talents Optimizing Business Environment Xiamen Airlines

424-507: A positive business environment for Chinese small and medium-sized enterprises investing in these regions." Overseas SEZs also foster support for China in the international system and help advocate for developing country causes through South–South cooperation . They "help China demonstrate it is acting as a responsible great power in these regions." Deng described China's SEZs as "social and economic laboratories where foreign technologies and managerial skills could be observed", including in

477-425: A result, a multilevel diversified pattern of opening and integrating coastal areas with river, border, and inland areas has been formed in China. Economic policies of SEZs included tax exemptions, reduced custom duties, reduced priced land, and increased flexibility to negotiate labor contracts and financial contracts. SEZs were also authorized to develop their own legislation. The Shenzhen Special Economic Zone

530-503: A subset of preferential policies, tax incentives, and infrastructure foundations. This shift in ideology promoted the transition to more of a market system promoting foreign direct investment and transition to rapid modernization. The preferential policies are set to execute the country wide 5 year development plan. With the release of the cities most recent 5 year plan, the 14th one, the city has committed to invest more in national innovation platforms and research centers. The SEZ will add half

583-606: A world class port, which serves as an industrial and agricultural base for exports. The Haicang District Investment Zone is located on the lowermost left (or northern) bank of the Jiulongjiang River , to the west of Xiamen Island . The left bank provides 5 kilometres (3.1 mi) of coastline with shallow water of 10 metres (33 ft). The urban (eastern) area of the District is separated from Xiamen Island by an 870 metres (2,850 ft)-stretch of water crossed by

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636-588: Is one of the six county-level districts of Xiamen , People's Republic of China, and one of the four located on the mainland proper, as opposed to on Xiamen Island . Haicang has always been the port of call for incoming trade to Xiamen. In May 1989, the Chinese government established the Haicang investment zone as a petrochemical industrial area within Xinglin District for Taiwanese business magnate Wang Yongqing . Since then, Haicang has developed into

689-802: The Haicang Bridge . The Haicang District was established in 2003 on the bulk of the territory of the old Xinglin District , which had already pipelined a Taiwanese-invested Investment Zone ( 台商投资区 ). During its planning, the district executive divided its Investment Zone into functional areas: The government of the Haicang Investment Zone actively invites foreign investment in high technology and capital intensive industries with emphasis on electronics, manufacturing, petrochemicals, machinery, refined chemicals, new building materials, biotechnology and pharmaceuticals. Special economic zones of China In justifying opening up and

742-883: The Shandong Peninsula , the Liaodong Peninsula (in Liaoning Province), Hebei Province and Guangxi autonomous region. In June 1990, the Chinese government opened the Pudong New Area in Shanghai to overseas investment, and additional cities along the Yangtze River valley, with Shanghai's Pudong New Area as its " dragon head." Since 1992, the State Council has opened a number of border cities and, in addition, all

795-623: 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. Shortly afterwards, the State Council expanded the open coastal areas, extending into an open coastal belt the open economic zones of the Yangtze River Delta , Pearl River Delta , Xiamen - Zhangzhou - Quanzhou Triangle in south Fujian,

848-469: The "Economic Zone Development Plan for the West Coast of the Taiwan Strait". This Plan clearly states that Xiamen should be supported to establish a regional financial service center across the Taiwan Strait, expand pilot financial reforms, and take the lead in experimenting with Taiwan's offshore finance and fund clearing. Xiamen continues to enjoy benefits from being an early SEZ with it being known as

901-639: The Chinese government decided to open the Pudong New Area in Shanghai to overseas investment, as well as more cities in the Yang Zi River Valley. Since 1992, the State Council has opened a number of border cities and all the capital cities of inland provinces and autonomous regions. In addition 15 free-trade zones, 32 state-level economic and technological development zones, and 53 new and high-tech industrial development zones have been established in large and medium-sized cities. As

954-527: The Chinese government initiated its policy of reform and opening up , as a response to the failure of Maoist economic policy to produce economic growth which would allow China to be competitive against not only industrialized nations of the west but also rising regional powers: Japan, Korea, Singapore, Taiwan, and Hong Kong. Officials in Guangdong Province led by Provincial Party Secretary Xi Zhongxun and Yang Shankun sought to make Guangdong

1007-612: The Chinese government takes a hands-off approach, leaving it to Chinese enterprises to work to establish such zones (although it does provide support in the form of grants, loans, and subsidies, including support via the China Africa Development Fund ). Such zones fall within the Chinese policy to go out and compete globally. The Forum on China-Africa Cooperation promotes these SEZs heavily. In southeast Asia, both state-owned and private Chinese companies are active in developing SEZs abroad consistent with

1060-492: The Chinese government's strategic priorities. Efforts in these SEZs are often viewed as part of the Belt and Road Initiative . China is involved in southeast Asia SEZs that include industrial parks, special export processing zones, technology parks, and innovation areas. From the Chinese government perspective, Chinese participation in overseas SEZs helps to increase demand for Chinese machinery and equipment and helps restructure

1113-596: The Pudong New Area came to 80 billion yuan, and the total industrial output value, 145 billion yuan. In May 2010, the PRC designated the city of Kashgar in Xinjiang a SEZ. Kashgar's annual growth rate was 17.4 percent in 2009, and Kashgar's designation has since increased tourism and real estate prices in the city. Kashgar is close to China's border with the independent states of former Soviet Central Asia and

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1166-641: The RIP has more than 120 Chinese--owned companies, employs 35,000 (largely Thai nationals), and its gross industrial output was $ 12 billion. The first Chinese overseas SEZs facilitated the offshoring of labor-intensive and less competitive industries, for example in textiles. As Professor Dawn C. Murphy summarizes, these zones now "aim to transfer China's development successes to other countries, increase business opportunities for China manufacturing companies, avoid trade barriers by setting up zones in countries with preferential trade access to important markets, and create

1219-650: The ROC being otherwise strictly controlled; it was praised by a Xiamen government official and PRC state media, but the referendum did not receive approval from the government of Taiwan before Chen's term ended in 2018. As part of its economic reforms and policy of opening to the world, between 1978 and 1984 China established special economic zones (SEZs) in Shantou , Shenzhen , and Zhuhai in Guangdong Province and Xiamen in Fujian Province as well as designating

1272-556: The SEZ seeks to capitalize on international trade links between China and those states. In 2015, then-magistrate of Kinmen County (ROC) Chen Fu-hai , along with a non-profit Taiwan organization "with close ties to the CCP", proposed a referendum in which Kinmen would become a special economic zone and obtain free trade and free investment between it and neighboring SEZ Xiamen on the mainland. The plan received controversy due to PRC investment in

1325-497: The Shanghai Pudong New Area has made progress in both absorbing foreign capital and accelerating the economic development of the Yangtze River valley. The government has extended special preferential policies to the Pudong New Area that are not currently enjoyed by the special economic zones. For instance, in addition to the preferential policies of reducing or eliminating Customs duties and income tax common to

1378-614: The State Council approved the expansion of the Xiamen Special Economic Zone (SEZ) to the whole city of Xiamen, and the inclusion of four districts outside the island, namely Jimei, Haicang, Tongan and Xiangan, into the SEZ, making the Xiamen SEZ 12 times larger. Xiamen has entered a new stage of integrated development within and outside the island. On March 8, 2011, the State Council officially approved

1431-534: The authorization of the Chinese central government in Beijing" with " tax and business incentives to attract foreign investment and technology". Trade was originally controlled by China's centralized government. However, these special zones are where market-driven capitalist policies are implemented to entice foreign investments in China. In 1986, China then added 14 additional cities to the list of special economic zones. The concept of Special Economic Zone arose in

1484-690: The capital cities of inland provinces and autonomous regions. In addition, 15 free trade zones , 32 state-level economic and technological development zones, and 53 new and high-tech industrial development zones have been established in large and medium-sized cities. As these open areas adopt different preferential policies, they play the dual roles of "windows" in developing the foreign-oriented economy , generating foreign exchanges through exporting products and importing advanced technologies and of "radiators" in accelerating inland economic development. Most of China's SEZs are located in former treaty ports and therefore have symbolic significance in demonstrating

1537-497: The central government expanded the coastal area by establishing the following open economic zones (listed from north to south): the Liaodong Peninsula , Hebei Province (which surrounds Beijing and Tianjin ; see Jing-Jin-Ji ), the Shandong Peninsula , Yangtze River Delta , Xiamen - Zhangzhou - Quanzhou Triangle in southern Fujian Province , the Pearl River Delta , and Guangxi Zhuang Autonomous Region . In 1990,

1590-567: The coastal provinces of Guangdong and Fujian to attract foreign investment , with additional exemptions in four cities, namely Shenzhen in the Pearl River Delta region, Zhuhai and Shantou in Guangdong and Xiamen (Amoy) in Fujian Province. For these, Chinese Paramount leader Deng Xiaoping coined the name "special zones" and characterized them as experiments in the mold of the pre-1949 Communist base areas. The proposal

1643-441: The development of manufacturing technology, a private real estate market, and management techniques. Many scholars argue that SEZs played a decisive role in the development of China and the success of Communism as implemented in China. Since their inception, SEZs have contributed 22% of China's GDP, 45% of total national foreign direct investment, and 60% of exports. SEZs are estimated to have created over 30 million jobs, increased

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1696-894: The domestic Chinese industrial value chain by moving low-end production activity abroad. It can also help bypass trade barriers during periods of friction such as the U.S.-China trade war by facilitating exports to Europe and North America. The Chinese government has identified certain southeast Asian SEZs as highlighted destinations for Chinese investment. These highlighted overseas SEZs include: Kawasan Industri Terpadu Indonesia-China, Sihanoukville Special Economic Zone in Cambodia, Thailand-China Rayong Industrial Park (RIP), Longjiang Industrial Park in Vietnam, Vientiane Saysettha Development Zone in Laos, and Malaysia-China Kuantan Industrial Park. The Sihanoukville Special Economic Zone began with

1749-502: The economic and technological development zones, the state also permits the zone to allow foreign business people to open financial institutions and run tertiary industries . In addition, the state has given Shanghai permission to set up a stock exchange , expand its examination and approval authority over investments and allow foreign-funded banks to engage in RMB business. In 1999, the GDP of

1802-419: The entire Xiamen Island, including Gulangyu Island , with a total area of 131 square kilometers in 1985. In 1988, the State Council approved the establishment of Xiamen as a planned city, giving it economic management authority equivalent to that of a province. In 1989 and 1992, the State Council approved the establishment of three Taiwan investment zones, namely Haicang , Xinglin and Jimei , with investments in

1855-552: The entire island province of Hainan as a special economic zone. In 1984, China opened 14 other coastal cities to overseas investment (listed from north to south): Dalian , Qinhuangdao , Tianjin , Yantai , Qingdao , Lianyungang , Nantong , Shanghai , Ningbo , Wenzhou , Fuzhou , Guangzhou , Zhanjiang , and Beihai . These coastal cities have been designated as the "open coastal cities" ( simplified Chinese : 沿海开放城市 ; traditional Chinese : 沿海開放城市 ; pinyin : yánhǎi kāifàng chéngshì ). Then, beginning in 1985,

1908-544: The fifth SEZ. In 1990, Pudong district in Shanghai became the sixth "SEZ". In 2009, Binhai district in Tianjin became the seventh SEZ. Special economic zones in mainland China are granted more market-oriented economic policies and flexible governmental measures by the government of China . This allows SEZs to utilize economic management which is more attractive to foreign and domestic businesses. In SEZs, "...foreign and domestic trade and investment are conducted without

1961-456: The five major industries such as manufacturing, wholesale and retail, accommodation and catering, construction and social services is about 90%. The city has experienced rapid population growth since it was designated as a SEZ in 1980. During the Song and Yuan Dynasties, Xiamen was a hub of contraband trade and pirate activity. It was fortified, in 1387 to try and ward off pirates which is also when

2014-463: The general trend of offshoring more simple manufacturing as globalization increased. Successes in the initial SEZs led to the establishment of additional SEZs in 14 coastal cities: 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

2067-759: The income of participating farmers by 30%, and accelerated industrialization, agricultural modernization, and urbanization. However, issues like prioritizing the short-term gains, encompassing a limited number of industries, and lack of entrepreneurial promotion are pointed out by critics of the SEZs. Others, like Gopalakrishnan, point out that "Left out of the picture are inequities in development, arable land loss, real estate speculation and labour violence", as well as significant transparency problems in bureaucracy. China has benefitted from SEZs through foreign enterprises bringing in expertise, technology, and equipment. In turn, private firms have benefitted from inexpensive labor,

2120-684: The late 1950s in Ireland. The Irish government established the Shannon Free Zone to encourage foreign investment through tax incentives. Various Chinese leaders visited Shannon Free Zone, including Jiang Zemin (in 1980) and later Zhu Rongji , Wen Jiabao , and Xi Jinping . In the late 1970s, and especially at the 3rd plenary session of the 11th Central Committee of the Chinese Communist Party in December 1978,

2173-681: The late 1990s. Furthermore, the registered population in Xiamen has doubled over the same period. Regarding the inflows of actual foreign capital utilization reported by the Xiamen Bureau of Statistics, Siming district had relatively lower figures in the early 20th century than the other two districts. However, the district experienced the most significant increase and became the most actually-utilized foreign capital after 2010. Special Economic Zones of China are intended to serve as special zones for accelerated economic development by employment of

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2226-509: The name "Xiamen" was first used. During the Qing dynasty, after the opium wars, trade with Europeans opened as Xiamen was designated as a treaty port and it continued its dynastic characteristic of being a maritime trade hub. British trade expanded from 380,000 silver dollars in 1843 to over 2 million in 1852. It was also a migration hub of the time as more than 100,000 Chinese annually returned or left China through this treaty port from 1866 through

2279-408: The region, including Taiwan and other key trade partners around the globe. The local government is also looking to increase the recreational maritime economy with cruises, fishing, and sailing, which will in turn increase tourism. Haicang District Haicang ( simplified Chinese : 海沧区 ; traditional Chinese : 海滄區 ; pinyin : Hǎicāng Qū ; Pe̍h-ōe-jī : Hái-chhng-khu )

2332-842: The republic era World War two, the Sino Japanese war, and the Chinese civil war put an end to Xiamen's economic prosperity during the pre revolution time period. In October 1980, the State Council of the People’s Republic China approved the establishment of the Xiamen Special Economic Zone, designating 2.5 square kilometers of land in the Huli area in the northwest of Xiamen Island. Xiamen was one of five Special Economic Zones designated in 1980. Continuing from its dynastic period, Xiamen became an important maritime cargo and container port to allow shipping from major world ports into China. The Xiamen Special Economic Zone has expanded to cover

2385-685: The same 10 year span. In November 1992, the State Council approved the establishment of Xiangyu Free Trade Zone in Xiamen. In February 1994, the Central Government determined Xiamen as a sub-provincial city . In March 1994, the Second Session of the Eighth National People's Congress granted Xiamen the power to make laws and regulations within the scope of the Special Economic Zone. In June 2010,

2438-881: The series of economic reforms that ensued in China , Deng Xiaoping referred to Karl Marx and his theories, which predicted that nations need to undergo urbanization and a stage of capitalism for a natural socialist transition. One of the most renowned reforms under Deng was establishing four special economic zones (SEZ) along the Southeastern coast of China, with Shenzhen , Shantou , and Zhuhai located in Guangdong province and Xiamen located in Fujian province . The four aforementioned special economic zones were all established from 1980 to 1981. As of 2024, there have been 3 additional special economic zones. In 1988, Hainan became

2491-419: The whole Xiamen Island, including Huli District and Siming District. Becoming a special economic zone has greatly influenced Xiamen's demographics and economy. Xiamen Special Economic Zone has a resident population of about 5.1 million, according to the 2020 census. However, it has a large floating population of temporary residents estimated to be around 2.7 million. The share of the mobile population employed in

2544-442: The zones being handled in accordance with the current special economic zone policies. Fujian is responsible for 32.1% of all Taiwanese funds in the mainland. Xiamen's gross national product increased by 4.9 times over the 10 years since it opened in 1980 to 5.016 billion RMB. Other statistical increases include a 6.3 times increase in industrial and agricultural output value and per capita income increased from 631 RMB to 3720 RMB over

2597-782: Was approved on July 15 and the four special zones were officially established on August 26, 1979. As part of an effort to overcome domestic political resistance, the name "special economic zone" was ultimately chosen over "special zone" to emphasize that only economic, not political, experiments should be carried out. Within these SEZs, export-focused businesses had the leeway to quickly respond to demand in foreign markets. These initial SEZs successfully attracted foreign capital, primarily from ethnic Chinese in Taiwan, Hong Kong, and Southeast Asia. Foreign businesses in these areas were generally motivated to move production to China's SEZs because of lower labor costs, preferential economic policies, and

2650-417: Was founded in 1984 as a joint private public venture. It had the goal of modernizing China’s aviation industry during the opening up and reform period. Currently, it has a market capitalization of 5.072 billion RMB and is rated the 4th best airline in China as of 2022 by Skytrax. It has more than 145 airplanes serving 320 domestic and international routes and is now a Star Alliance member. 496.7 billion RMB

2703-578: Was just 0.2 percent of Hong Kong's. In 2018, the city's GDP hit 2.42 trillion yuan (US$ 372 billion), overtaking Hong Kong. Successes in Shenzhen prompted Chinese central authorities to instruct provincial officials to learn from Shenzhen. From 1990 to 2018, Chinese enterprises established eleven SEZs in sub-Saharan Africa and the Middle East including: Nigeria (two), Zambia, Djibouti, Kenya, Mauritius, Mauritania, Egypt, Oman, and Algeria. Generally,

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2756-561: Was the most active SEZ for legislative experiments over the period 1979-1990 and these had a significant role in shaping national economic legislation on foreign trade and investment. Out of the special zones, perhaps the most successful was Shenzhen. It transformed from 126 square miles of villages into a business metropolis. As seen by the table below, the ten years of economic reform from 1980 to 1990 increased population in Shenzhen by six-fold, GDP by around sixty-fold, and gross industrial output by two-hundredfold. Before 1980, Shenzhen's GDP

2809-461: Was the total output from these industries which is 70% of the industrial output of Xiamen. It has a growth rate of 9.9% per year which is relatively high. Some large companies operating in this space in Xiamen are Toshiba, Fujitsu, and LG. Maritime trade accounts for 22% of the local GDP, which is mainly processed through the Port of Xiamen. This port is the 8th largest in China and is a crucial port for

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