Case Study: SEZs in China
Geography: Cambridge International GCSE (2027 Exams), topic 9.2.5
China's Production of Digital Goods
China created Special Enterprise Zones to encourage economic development.
SEZ locations
- In 1980, China created Special Enterprise Zones (SEZs).
- E.g. Shenzhen (Guangdong Province)
- Special Enterprise Zones covered every state capital and every city on China’s coast by 1992.
What do SEZs do?
- SEZs offered incentives for international companies to locate there.
- Incentives were things like good tax rates, fewer regulations and special systems to improve management.
Impact of SEZs
- By 1999, 40% of China’s exports were high-tech goods. This amounted to $12.9 billion and China benefited from this foreign capital (money).
- Because there is so much industry activity, Chinese cities have problems with water and air pollution.
- Smog conditions in Beijing have started to affect the tourism levels.
- Air pollution PM2.5 levels are well above the safety level set by the UN.
Test yourself on Case Study: SEZs in China
What has China created to encourage economic development?
When did China create Special Enterprise Zones (SEZs)?