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Special Economic Zones in China

Updated:2018-1-22 11:27:29    Source:www.tannet-group.comViews:180

Special economic zones in China (SEZs) are special economic zones located in mainland China. The government of China gives SEZs special economic policies and flexible governmental measures. This allows SEZs to utilize an economic management system that is more attractive for foreign and domestic firms to do business in than the rest of mainland China. SEZs offer tax and business incentives to attract foreign investment and technology.

Importance of Special Economic Zones (SEZs)
The opportunity for foreign investors to do business in China with relatively no government intervention and with the freedom to implement market-driven economics was an exciting new venture.

Policies regarding Special Economic Zones were meant to encourage foreign investors by providing low-cost labor, specifically planning Special Economic Zones with ports and airports so that goods and materials could be easily exported, reducing corporate income tax, and even offering tax exemption.

China is now a huge player in the global economy and has made large strides in economic development in a concentrated period of time. Special Economic Zones were instrumental in making China's economy the way it is today. Successful foreign investments galvanized capital formation and spurred urban development what with the proliferation of office buildings, banks, and other infrastructures.

Economic Policies of SEZs
1. Special tax incentives for foreign investments in the SEZs.
2. Greater independence on international trade activities.
3. Economic characteristics are represented as "4 principles":
   (1) Construction primarily relies on attracting and utilizing foreign capital;
  (2) Primary economic forms are Sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises;
   (3) Products are primarily export-oriented;
   (4) Economic activities are primarily driven by market forces.

Shenzhen Special Economic Zones (SEZs) Overview
A small village from ancient times, the modern city of Shenzhen was established in 1979 and designated as China’s first special economic zone (SEZ) in 1980. Since then, it has grown into one of the world’s most modern cities.

Shenzhen is a leading business, innovation and financial center in China. Shenzhen’s fast growing economy is characterized by three industries: shipping and logistics, high technology and financial services. Shenzhen is a world leader in shipping and supply chain with the world's third busiest container port. Its massive industrial parks, like Huawei Tech City, and a high levels of R&D investment make it a global innovation center. To service the growing needs of the shipping and high-tech industries, and given its role as the principal access point for foreign investment into mainland China from Hong Kong, Shenzhen has grown into one of the leading financial centers in China. For more information about business setup in Shenzhen, feel free to contact Tannet.

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If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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