Q: Why did China choose Shenzhen and three other coastal cities to experiment with its special economic zones? What are the differences between the special economic zones and export-oriented processing districts in some countries? What kinds of exemplary roles have these special economic zones played in China's opening up?

A: China turned Shenzhen and three other cities into special economic zones for their geographical advantages. Shenzhen and Shantou are close to Hong Kong; Zhuhai borders Macao; and Xiamen faces Taiwan across Taiwan Straits. These cities can be administered independently as places for absorbing investments from overseas Chinese and businessmen from Hong Kong and Macao. In addition, there are political considerations. In the words by Deng Xiaoping, the general designer of China's reform and opening-up, “We can carry out a trial which can serve as a window for the whole country as well as a pioneer for a larger-scale opening up. If it fails, such a small area will bring no influence to economic development of the whole country.”

The establishment of special economic zones is a creation in China's effort to open its door to the outside world. These special economic zones feature in two fields in comparison with those in other countries and regions. First they are integrated with industry, commerce, agriculture, livestock, real estate and tourism, not single-product trade zones or export-oriented processing zones. Secondly, they are economic zones, not political zones. That means they have adopted more opening-up policies and flexible methods in absorbing foreign investment. They are neither the special administrative zones like Hong Kong or Macao, nor foreign concessions or colonies in the past.

In general, special economic zones were established to attract foreign investment, advanced technology and managerial measures, create more jobs and increase foreign earnings. Except for these reasons, there are also other reasons:

Firstly, these special economic zones are experimental centers of China's socialist market economy. It is an innovation unparalleled in history to combine market economy with socialism and should be tested in special economic zones first to achieve experiences before being popularized throughout the country. It is of important significance for minimizing the risks in building socialist market economic system.

Secondly, these special economic zones are windows of the reform in China. They have played an exemplary role in attracting foreign capital and advanced technology and bringing in modern management from foreign countries. They also set examples in perfecting legal frame for socialist market economy, increasing government efficiency and the reform of distribution system.

Thirdly, these special economic zones are the pioneers of China's opening up to the outside world. If you say China's economic reform began in rural areas, China's opening-up developed from these special economic zones. The success of these special economic zones has helped open China further to the outside world.

Fourthly, these special economic zones have pushed forward the national economic development greatly and especially their high-speed development has direct influence on the continuous economic growth in the two decades after China implemented the reform and the open policy