A Brief Introduction of National Economic and Technological Development Zones

At the beginning of 1984, to further open to the outside world, China government decided to establish economic and technological development zones (Hereinafter referred to ETDZ) along seas by using successful experiences of special economic zones in the previous period.

From 1984 to 1988, 14 ETDZs including Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Minhang, Hongqiao, Caohejing, Ningbo, Fuzhou, Guangzhou, Zhanjiang are the first that had been established after the approval of the State Council.

In 1992 and 1993, eighteen other national ETDZs including Yingkou, Changchun, Shenyang, Harbin, Weihai, Kunshan, Hangzhou, Xiaoshan, Wenzhou, Rongqiao, Dongshan, Guangzhou Nansha, Huizhou Dayawan, Wuhu, Wuhan, Chongqing, Beijing, Urumchi are the second to be set up.

From 2000 to 2002, the State Council decided to build the third group including Hefei, Zhengzhou, Xi'an, Changsha, Chengdu, Kunming, Gunyang, Nanchang, Shihezi, Xining, Huhhot, Taiyuan, Nanning, Yinchuan, Lanzhou, Lasa, Lanzhou.

Besides, it also ratified Suzhou Industrial Park, Hainan Yangpu ETDZ, Shanghai Jinqiao Export Processing Zone, Ningbo Daxie ETDZ and Xiamen Haicang Investment Zone to enjoy the same preferential policies with these national ETDZs.

The state-level ETDZ is a relatively small piece of land carved up in the coastal cities and other open cities. It attaches great importance to improving hard and soft investment environment and adheres to the policy of "mainly developing the high-tech industry, focusing on industrial projects, absorbing foreign fund and building up export-oriented economy" to strive for a fast and sound development. Serving as "Windows and bases" in the fields of opening-up, capital attraction, export enlargement, hi-tech development and regional economy promotion, it now becomes a powerful engine in developing regional economy and plays an important role in adjusting regional economy and industry structure. As a matter of fact, The ETDZs have scored great achievements and become the hot places of foreign investment and main forces of export.

The ETDZs of coastal cities have achieved remarkable success. By summarizing the experience of fast and sound development of national development zones, as a major component of a strategy to develop the western area, the State Council made a decision in 1999 that middle west provinces, autonomous regions and municipalities directly under the central government could choose one qualified and established provincial-level ETDZ from its capital city to bid for a national ETDZ.

To date, there are 54 national-level ETDZ, among which, eastern coastal regions 34, Middle West regions 21. The pattern of national ETDZs in various provinces, cities, autonomous regions and other open cities is quite reasonable especially the newly established national ETDZs, which will play an active role in implementing the strategy of developing the west strengthening the economic cooperation between eastern and middle western regions and promoting the coordinated growth of regional economy.

Government offices and Organizations which are in charge of ETDZs affairs in China

Classification and function of economic development zones

Up till now, the development zones in China has been developed into eight kinds which were classified by their different function in use. The eight kinds of development zone are:

- National Economic and Technology Development Zone (ETDZ)
- National Free Trade Zone (FTZ)
- National Hi-Tech Industrial Development Zone (HIDZ)
- National Border and Economic Cooperation Zone (BECZ)
- National Export Processing Zone (EPZ)
- National Tourist and Holiday Resort (THR)
- Taiwanese Investment Zone (TIZ)
- National Agricultural Hi-Tech Industrial Demonstration Zone (AHIDZ)

- National Economic and Technology Development Zone (ETDZ)
The Economic Technological Development Zones(ETDZ) constitutes part of China's policy of Opening-up to the outside world. By carving up a relatively small piece of land in the open city and building perfect infrastructures in this locality, an investment surrounding conforming to international standards will be created. By way of absorbing and taking advantage of foreign capital, the modernized industrial configuration with new, and high technology as its mainstay will eventually take shape and become the essential territory in developing foreign economic and trade in the local urban and it surrounding areas. Up to the present, there are State Council approved ETDZs. (including several economic areas such as Shanghai Lujiazui Finance and Trade Zone, Suzhou Industrial Park, Shanghai Pudong Jinqiao Export Processing Zone, Ningbo Daxie Development Zone, Xiamen Haicang Investment Zone and Yangpu Development Zone. The open policies are also carried out in these zones.)

- National Free Trade Zone (FTZ)
Approved by the State Council, and like the free trade zone in the world, China free trade zone(FTZ) is a specialized area for international trade and bonded operations within the area, activities of foreign investment, international trade, bonded warehouses and processing for re-export are allowed. Presently all 13 free trade zones in China are in operation. They are the new junctures welding China's economy with the world's economy.

- National Hi-Tech Industrial Development Zone (HIDZ)
The establishment and development of new/high tech industrial development zones(HIDZ) are an important component of the Torch Programmed and an inevitable outcome of reform, opening to the outside world and the social development of the socialist market economy. The new/high tech industrial development zones are based on intensive intelligence and open environment and mainly depend on China's own scientific and technological and economic strength. They are concentrated zones established for purposes of transforming achievements of science and technology into practical productive force to the maximum extent through local optimization of soft and hard environments, orienting to both domestic and overseas markets and developing China's new/high tech industries. Up to the present, there are altogether 53 State Council approved HIDZs.

- National Border and Economic Cooperation Zone (BECZ)
For the open cities along the border, the BECZ is the area to develop frontier trade and carry out processing for re-export. Opening to the outside world along the border areas in China's central and western parts is our important policy to develop trade, economy and good-neighbor relationship with the surrounding countries. It also plays positive roles in flourishing the economy of the national minority areas. The State Council has approved 14 BECZs since 1992.

- National Export Processing Zone (EPZ)
Based on a through investigation in the practice of the developed countries in management of processing trade, the State Council selected and approved 15 cities such as Guangzhou, Beijing and Dalian to pilot enclosed management schemes over export processing zones or EPZ in April 2000. The EPZ is intended to be a special enclosed area supervised by the Customs. As a matter of fact, the establishment of EPZ is one of the major steps taken by China to expand its involvement in the international market and further open its market to the outside world. It is most helpful in the promotion of export, improvement in the management of processing trade, utilization of foreign capital in a more active, practical, and effective way, and development of the local economy.

- National Tourist and Holiday Resort (THR)
In order to further open its market to the outside world, exploit rich tourist resources and speed up the tourist industry, the State Council decided to choose the regions with ripe conditions as National Holiday and Tourist resort, where the enterprises and the tourist equipment and projects invested by foreign businessmen are encouraged. To date, there are 11 national holiday and tourist resorts by the approval of the State Council.

- Taiwanese Investment Zone (TIZ)
With the rapid development of intercourse between the two sides of the strait, Fujian Province took the lead in being the investment hot spot for Taiwanese business people. To further develop the economic and trade relations between the two sides of the strait, the following three investment zone were approved the State Council in 1989, Fuzhou Taiwanese Investment Zone, Xilin Taiwanese Investment Zone, Haicang Taiwanese Investment Zone. Jimei become the fourth in December, 1992. To date, Four Taiwanese Investment Zone are all in Fujian province approved by the State Council.

- National Agriculture High-Tech Industry Demonstration Zone (AHIDZ)
Up till now, there is only one national grade agriculture high-tech industry demonstration zone in China, its name is Yangling Agriculture High-tech Industry Demonstration Zone which is located near Xian, Shaanxi Province, it was founded in 1997 after approval by the State Council. The decision of setting up the Yangling Agriculture High-Tech Industry Demonstration Zone is a great measure by which , aiming to 21st century, the agriculture of arid and semi-arid are developed radically, the Chinese West Development is carried out, and the emphases of Chinese national development strategy shifted to middle and west in China, is achieved.

China Development Zone is the general name of some different zones with different functions. It consists of