SEZs: China's Modernization Pacemakers

With the approaching of the 20th anniversary of China's four earliest special economic zones (SEZs) on August 26, the cities of Shenzhen, Xiamen, Zhuhai and Shantou, and Hainan Province have all mapped out development blueprints for the new century.

Zhang Gaoli, secretary of the Communist Party of China's Shenzhen committee, said that the goal of Shenzhen is to basically realize modernization by 2005 and reach the level of moderately developed countries by 2010 and that of developed countries in 2030.

Zhang's counterpart in Xiamen, Hong Yongshi, pledged that his city would make progress in modernization with indexes regarding the economy, science and technology, and social development meeting or closing to the requirements of modernization in five years.

In Zhuhai, officials vowed to realize modernization in 2007 while their colleagues in Shantou promised to build the city into a modernized port city in the world by 2008.

Hainan Province, the largest of China's SEZs set up 12 years ago, has a new ambitious plan to streamline its agriculture, marine economy and tourism while promoting urbanization.

Analysts believe that by setting the goals for modernization, the SEZs are still leading other parts of the country in development as they were 20 years ago.

Two decades ago, local authorities in Shenzhen, encouraged and supported by senior Chinese leaders including Deng Xiaoping, were determined to blaze a trail for China's reform and opening-up drive.

Shenzhen has then become a window of the country to the outside world and a platform for reform measures, along with Xiamen, Zhuhai and Shantou.

To ensure successful reform and opening-up in the SEZs, China introduced a wide range of special preferential policies.

As the opening-up drive swept other parts of the country, the preferential policies were applied to more regions. The saying that special economic zones are no longer special prevails in the country.

However, the SEZs have not lost their vitality. And observers say that the SEZs still shoulder a historical mission today.

In recent years, the SEZs have been focusing on improving the overall economic quality and on developing high-tech industries and other economies with special features.

Compared with other parts of China, the SEZs still hold an edge in utilizing domestic and overseas resources and markets and in adapting themselves to international common practices to boost economic development.

While fully expanding economic cooperation with multinationals, Shenzhen is tightening ties with Hong Kong, and Xiamen and Hainan with Taiwan. In Shantou, efforts have been made to attract overseas Chinese, one of the major channels of overseas investment to the Chinese mainland.

Experts say that improving overall economic performance is a necessary choice for the SEZs as China will face fiercer competition after its entry into the World Trade Organization. It is the only way for them to realize modernization.

To hit the goal, analysts say, the SEZs should give national treatment to overseas investors for more funding while making efforts to open up overseas markets for their own companies products.

By changing the past practice of offering preferential policies to overseas investors in certain fields, the SEZs have lifted all restrictions for them.

According to officials, the expansion of reform in the SEZs will focus on systematic innovations, including adjustments in the ownership structure, and transformation of functions of government departments in accordance with international common practices.

The government should also simplify procedures to make it easier to get businesses up and running and give a bigger role to the market, while improving services, experts say.

At the same time, efforts must be made to improve the social security system and the financing system, and have intermediary organs operating according to standards.

The forthcoming 50 years will be an important historical period in China's drive to realize modernization and make the Chinese nation's long-cherished dream of building a powerful China come true.

Experts are confident that Shenzhen, Zhuhai, Shantou, Xiamen, and Hainan will set the pace in China's drive toward modernization.



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