Special Economic Zones and Open Coastal Cites（2）
2 min readPrimarily geared to exporting processed goods，the five special economic zones are foreign-oriented areas which integrate science and industry with trade，and benefit from preferential policies and special managerial systems.They have summe up their rich experiences in absorbing foreign investment and developing foreign trade for China to open up to the international market.In recent years，the specia economic zones have led the country in establishing new systems，upgrading industries and opening wider to the outside world，serving as national models. In 1999，Shenzhen’s new-and high-tech industry became one with best prospects，and the output value of new-and high-teach products reached 81.98 billion Yuan，making up 40.5 percent of the city’s total industrial output value and coming out in front in the country.
Since its founding in 1992，the Shanghai Pudong New Zone has made great progress in both absorbing foreign capital and accelerating the economic development of the Yangtze River valley.The state has extended special preferential policies to the Pudong New Zone that are not yet 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 the economic and technological development zones and certain special economic 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 the Pudong New Zone came to 80 billion Yuan，and the total industrial output value，145 billion Yuan.Up to now，78 Chinese and foreign-funded financial institutions have been set up in Lujiazui，Pudong，of which 24 foreign-funded banks have been approved to engage in RMB business.The 5，900 foreign-funded enterprises，with a total investment of nearly US $30 billion，and over 5000 domestic enterprises from all over the country，with a total registered capital of about 20 billion Yuan，have formed six pillar industries:automobiles and spare parts and components，microelectronics and computers，household electrical appliances，bio-medicines，and optical，mechanical and electrical products.A large number of projects funded by business people from more than 60 countries and regions have taken root and blossomed there.Pudong’s “dragon-head”role of radiating and leading the whole country is becoming more and more prominent.
