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China is one of the most successful countries in terms of leveraging SEZs to achieve far-reaching economic transformations. It started with four zones at the initial stage to experiment with marketoriented economic reforms which involves laws, regulations, taxation, land, labor, finance, customs, immigration, etc. After being successful, the zone program and relevant reforms were gradually rolled out throughout the nation in more diversified forms, and some of the zones were designed with more sophisticated agenda, such as the high-tech industrial parks. Together with the numerous industrial clusters, the SEZs have contributed significantly to national GDP, employment, exports, and attraction of FDIs. It was estimated that in recent years, SEZs at national 4 level accounted for about 22% of national GDP, 46% of FDI, and 60% of exports and generated in excess of 30 million jobs (Zeng 2010). The SEZs have also played important roles in bringing new technologies to China and in adopting modern management practices. While most lessons in China are positive, such as gradualism with a pragmatic and experimental approach; reform-oriented mindset; strong commitment and active facilitation of the state; openup to FDIs; sound infrastructure; effective marketing and investment promotion; and continuous technology learning and upgrading, etc. (Zeng 2010), there are also some adverse lessons for the late-comers to avoid, such as the “mushroom approach” at the local levels and high-level overlaps of various zones with vicious competitions at the later stage; environmental degradation; and limited urban-industry integration, with some exceptions such as the Suzhou Industrial Park.
Access and download the full World Bank Trade and Competitiveness Global Practice paper at: http://www.worldbank.org/content/dam/Worldbank/Event/Africa/Investing%20in%20Africa%20Forum/2015/investing-in-africa-forum-global-experiences-with-special-economic-zones-with-a-focus-on-china-and-africa.pdf