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China's Special Economic Zones (SEZs) and Economic and Technological Development Zones (ETDZs) have served as catalysts in the country's economic transformation, according to a report from ProLogis, the world's largest owner, manager and developer of distribution facilities.
The report, titled "China's Special Economic Zones and National Industrial Parks-- Door Openers to Economic Reform," highlights the key role played by these zones.
China unveiled wide-ranging economic reforms in 1979, and its economy has flourished during the subsequent 30 years. The report credits China's SEZs and ETDZs for attracting foreign companies to invest in China and thereby nurturing China's economic revitalization."
China's economy has unergone a phenomenal transformation," says Leonard Sahling, first vice president of research for ProLogis. "Thirty years ago, it was a struggling, third-world country. Today, it is a manufacturing powerhouse, the fourth largest industrial country and a world-class economic player."
Today, there are five SEZs and 54 ETDZs throughout China. Foreign enterprises establishing operations in these zones are granted tax breaks, the ability to repatriate profits and capital investments, below-market lease rates for land, government-financed hiring/training, employee housing and various customs exemptions. These zones are particularly attractive to manufacturers, third-party logistics providers and other companies that are engaged heavily in importing and exporting goods to and from China.
Moving forward, ProLogis predicts that China's economic revitalization will serve as an example to other, less-developed countries. "What SEZs and ETDZs have done for China, they can also do for other aspiring nations," Sahling adds.
For a copy of the report, visit http://prologisresearch.com/chinaspecialzones.
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