The Chinese socialist market economy is an open economy. Since the establishment of socialist market economy system, the multi-level echelon-shaped opening-up strategy of "attaching importance to opening coastal regions and gradually opening the hinterland" has been clearly confirmed to form an all-directional, multi-layered and wide-ranging opening pattern. The detailed contents include: creating special economic zones, opening up coastal port cities, establishing open coastal economic area, and opening-up regions along large rivers and borders and hinterland opening-up capital cities.
1. Special economic zones
Special economic zone is the forward position of opening-up and a special channel for China to introduce foreign capitals and advanced technologies and advance toward international markets. The Chinese government implements special economy policies and the economic management system in special economic zones different from that in the hinterland, mainly including:
1). The construction of special economic zones mainly resort to using foreign investments, of which the economic ownership system structure is a syntheses with diverse sectors of the economy under the leadership of the socialist economy including state-owned enterprises, collective enterprises, private enterprises and foreign-invested enterprises;
2). There are more preferential treatments and exit and entry convenience for foreign investors;
3). The governments of special economic zones have more economic management authorities. The State Council has determined to set Shenzhen, Zhuhai, Shantou, Xiamen and Hainan as comprehensive special economic zone in 1988.
2. Open coastal cities
Since 1984, China has further opened coastal cities, namely Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Pudong Area of Shanghai, Ningbo, Fuzhou, Guangzhou, Zhanjiang, Beihai and so on. Thanks to comparatively solid industrial foundation the economic efficiency in the coastal cities are evidently higher than national average level. Moreover connected with inland railways the open coastal cities are important trade ports with convenient transportation and large outward harbors.
3. State-level economic and technological development zones
It is an important measure to establish state-level economic and technological development zones for the implementation of opening-up policy. From 1984 to 2002, the State Council has ratified 49 economic and technological development zones including Dalian, Tianjin, Ningbo, Beijing and Harbin in order to create a beneficial investment situation to attract foreign investment and speed up the economic development of the cities by the advantages of the local cities.
4. Coastal economic open zones
Since China determined to establish coastal economic open zones at Yangtze River Delta, Zhujiang Delta and South Fujian Province Delta (Xianmen, Zhangzhou and Quanzhou) in 1985, the coastal economic open zones involve 40 cities under provincial governments and 215 counties. Just like special economic zones and coastal open cities, coastal economic open zones act as the bridge and window for foreign economic trades and the base of earning foreign exchange through exports. The aim of establishing open zones is to promote local science and technology advancement and economic development by attracting foreign investment and advanced technologies, and using and absorbing modern operation and management experiences of other countries.
5. High-tech industrial development zones
Driven by the development technology industrial revolution, high-tech industrial development zones come into being. With the rapid development of global science and technology and economy, high technology and its industrial development become the core of international competition, backbone of economic development, symbol of comprehensive national strength. By sizing up the situation the Chinese government selects a number of intelligence-intensive regions and adopts special policies to gradually form various high-tech development zones with different characteristics. At present there are 53 state-level high-tech development zones ratified by the State Council. As an important part of national high-tech industrial development strategy, with the support and attention from the Chinese government, these high-tech development zones undergo rapid and healthy development and become bases of high-tech industrialization.
6. Export processing zones
The establishment of export processing zones aims at implementing the management of "optimizing stock, controlling growth, regulating management and improving level" on processing trades, changing the current scattered management to concentrated management, gradually guiding the increased volume of processing trade into the closed processing zones and realizing concentrated and normative management to promote its healthy development. Meanwhile, measures shall be adopted to strictly control the sale of processing trade products in domestic market to protect related domestic industrials. Simplified, fast and convenient custom clearance service shall be provided for enterprises that observe Chinese laws. Measures shall be adopted to drive the export of raw material and components and parts to make contribution to expanding of foreign trade export.
Since China announced to set up the first series of export processing trial zones on June 21, 2000, the following 15 zones have been ratified by State Council: Dalian, Tianjin, Tianzhu of Beijing, Yantai, Weihai, Kunshan and Suzhou of Jiangsu Province, Songjiang of Shanghai, Hangzhou, Xinglin of Xiamen, Shenzhen, Guangzhou, Wuhan, Chengdu, Huichun of Jilin Province. By 2002 State Council has ratified 25 export-processing zones.
7. Bonded area
Since the Chinese government ratified to establish bonded area in Shanghai Pudong New Area to facilitate the production of foreign-invested enterprises and speed up the exploitation of key regions in 1990 some bonded areas in Tianjin, Shenzhen Futian, Dalian, Guangzhou, Qingdao and Zhangjiagang have been ratified. The function of bonded area is to develop the entrepot trade and export processing service to promote the development of the export-oriented economy.
8. Shanghai Pudong New Area
With an area of 518 square km and 1.38 million population, Shanghai Pudong New Area is located on a triangle area at the east of Huangpu River, southwest of Yangtze River mouth, and near to Shanghai urban area. Adjacent to the East Sea and to Yangtze River in the north, Pudong New Area is rest on the intersection of alleged golden coast and golden water channel, overlooking the central Shanghai Bund across the sea.
Because of the self-supported industrial system and well-established infrastructure Pudong New Area has attracted a great number of domestic and foreign investors. Its development aim is to develop Pudong as export-oriented, multi-functional and modern new area of top grade in the world.
