Special Economic Zones
- 1979 four special economic zones were opened for trade and investment with the west
- Foreign firms were allowed to operate here
- Cheap labour was provided
- New technology and management practices were introduced
- Most firms come from Hong Kong to take advantage of the cheap labour
Interesting Fact
These were the beginning of China becoming the main place for making articles for large American companies.
Quote
"Until the Nineteen-Eighties, when Deng Xiaoping designated the area as China's first special economic zone, Shenzhen had been a tiny fishing village. Suddenly, eleven million people appeared, seemingly out of nowhere; factories sprang up, often housed in hastily constructed tower blocks."
-Michael Specter
-Michael Specter
Subjunctive Question
How did these special economic zones change China's economy for the future?
Summary
In 1979 Deng opened up four special economic zones that were for trade and investment with the west. At these zones, foreign firms were allowed, cheap labour was provided and new technology and managment practices were introduced. Many of the firms came from Hong Kong and took advantage of the cheap labour.