Bulletin Number Five 1985

Research Projects Specia l Economic Zone s of China Introduction The research project on China's special economic zones was initiated in the spring of 1980 by staff of the Geography Department with the primary aim of providing a comprehensive geographical survey of the planning and development of these zones. In the first three years, the focus of study was centred on the Shenzhen Special Economic Zone for various reasons. First, the geographic location of Shenzhen across the border of Hong Kong will undoubtedly lead to growing interaction between the two areas, and hence, Shenzhen's development will have important implications not only to China but also to Hong Kong. Second, among the special economic zones so far designated, Shenzhen has experienced the most prominent economic development and progress. Third, Shenzhen is the largest 'export processing zone' type of establishment, not only in China but also in the developing countries of the world. Extensive field surveys have been carried out in Shenzhen, including interviews with top government officials. Results of the research appeared in a number of journal articles an d in three books: Shenzhen Special Economic Zone: China's Experiment in Modernization (Hong Kong Geographical Association, January 1982); The Largest Special Economic Zone of China - Shenzhen (Wide Angle Press, July 1983) (in Chinese); and Modernization in China: The Case of the Shenzhen Special Economic Zone (Oxford University Press, June 1985). The second stage of the project, which is now in active progress, started in 1984 with financial support from the Board of Trustees of Lingnan University, New York and is affiliated wit h the Centre for Contemporary Asian Studies. It is an extension of previous wor k conducted in Shenzhen, making use of the Geography Department' s accumulated experience to examine in similar fashion the other geographic areas proposed by the Chinese authorities for extensive development. These include the Zhuhai, Shantou and Xiamen Special Economic Zones and the Island of Hainan. A further extension of the study will be concerned with identifying the interregional linkages which are likely to occur between these special economic zones in the course of their development, with the ultimate aim of assessing how th e various areas, together with th e existing economic centres of Guangzhou, Hong Kong an d Macau, might be integrated into a single urban/economi c system covering the whole of South China. Under the auspices of the Centre for Contemporary Asian Studies, a multidisciplinary research project on China's open policy in general and the special economic zones in particular was proposed in early 1985 , with participation of scholars from the Departments of Economics, General Business Management and Personnel Management, Geography, Government and Public Administration, Psychology, Social Work and Sociology. Research funding from the Cable & Wireless and The Chinese University of Hong Kong has now been obtained. The whol e programme, entitled 'China's Open Policy and Special Economic Zones', is composed of three sub-projects : (1) Integrated Development of the South China Region: A Geographical Appraisal; (2) Urbanization in the Special Economic Zones: Evolution, Causes and Consequences; and (3) Policy and Management in Special Economic Zones: Dynamics, Reform and Evaluation. China's Special Economic Zone Models China's special economic zones (SEZs) are being conceptualized as viable development models in the course of modernization in a socialist country. Unlike the export processing zones (EPZs) in developing nations with a market economy, the main objectives of setting up SEZs are: (1 ) to observe and understand capitalism at wor k and to follow the trend of modem economic developmen t in the capitalist world; (2) to test different economic policies and systems , by creating these special zones as laboratories; and (3) to acquire modem technology and management skills. Primarily as experimental stations, the optimal siting of these zones calls for special deliberations. Two contrasting views have generally been held in deciding the location of EPZs/SEZs: one view is to establish these zones near existing metropolitan RECENT DEVELOPMENTS 33

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