Special Economic Zones Established

After the Third Plenary Session, China took steps toward opening to the outside world. To attract foreign capital, bring in advanced technology and management experience and expand exports, in 1979 the Party Central Committee and State Council approved special policies and flexible measures for Guangdong and Fujian and decided to try out “export special zones” at Shenzhen, Zhuhai, Shantou and Xiamen. In August 1980 the Standing Committee of the Fifth National People’s Congress approved the Regulations on Special Economic Zones in Guangdong Province, formally establishing zones at Shenzhen, Zhuhai and Shantou, and in October it approved the Xiamen zone as well. The zones applied special economic policies and management systems, relied mainly on foreign investment, were built mainly on joint ventures, cooperative ventures and wholly foreign-owned enterprises, and produced mainly for export. They became China’s windows on the world and “testing grounds” for reform and opening-up. Shenzhen was originally a border town of just over 30,000 people. After the zone was established, the Shekou Industrial Zone raised the slogan “Time is money, efficiency is life” and created “Shenzhen speed,” building a floor every three days. After decades of development Shenzhen has become an international metropolis of more than 17 million people. The zones greatly advanced reform, opening-up and socialist modernization. In 1984, after touring Shenzhen, Zhuhai and Xiamen, Deng Xiaoping inscribed: “The development and experience of Shenzhen prove that our policy of establishing special economic zones is correct.” In 2019 the Central Committee and State Council backed Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics.