Controls on the growth of special economic development zones will end this year despite there still being too many across the country, the South China Morning Post reported, citing Liu Peiqiang, chairman of the China Association of Development Zones under the National Development and Reform Commission. There are now 54 central government-level zones, such as Shenzhen and Shanghai's Pudong, about 230 national-level zones and between 1,300 and 1,400 provincial economic zones. The move will end a government clampdown started in late 2003 to curb "irrational" creation and expansion of the zones. However, the future of the zones is uncertain as continued liberalization reduces their competitive advantage and the government begins eliminating preferential policies designed to attract foreign direct investment, such as preferential tax rates for overseas investors.
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