Special economic zones of China

The Special Economic Zones of China (SEZ) are designated areas with economic policies and regulations designed to attract foreign business. These zones have more market-oriented business regulations compared to the rest of the country.

They were established to attract foreign investment, boost different forms of economic growth, and facilitate experimentation with market reforms. Many of these zones can be attributed to the policy of paramount leader of China Deng Xiaoping during the early 1980s.

One of the larger reforms under Deng was establishing four SEZs along the South-eastern coast of China, with Shenzhen, Shantou, and Zhuhai located in Guangdong province and Xiamen located in Fujian province. These initial SEZs were all established from 1980 to 1981. As of 2024, there have been 3 additional special economic zones. In 1988, Hainan became 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 in an effort to be more attractive to foreign and domestic businesses.

In SEZs, foreign and domestic trade and investment are conducted with tax and business incentives to attract foreign investment and technology.^[1] Trade was originally controlled by China's centralized government, however, these special zones allowed market-driven capitalist policies to be implemented to entice foreign capital investments in China. In 1986, China then added 14 additional cities to the list of special economic zones. By the 2020s, the combined number of SEZs, national-level new areas, and free trade zones in China reached 45.

As of 2025, China has significantly expanded its SEZs and become standardized across the country, leading to both futurist speculation of the country and criticism. Many similar areas are in development in hopes to promote economic development in key industries and attract further foreign investment.