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(a) because the SEZs are so export-oriented,
conditions within them are easily influenced by the "international market" (particularly the markets of Hong Kong and Macau). There- fore the SEZs will be clearly and distinctly segregated from the non-SEZ areas of China in order to "safeguard the latter from the
former;"
(e) any preferential treatment granted to foreign
businessmen and investors will be carefully
defined by various regulations.
Noting that the SEZs at Shenzhen and Zhuhai have been designated "trial points" or forerunners of this economic experiment, Fang reviews the five main forms of economic co-operation to be found in the SEZs and provides a useful round-up of statistics about such ventures in Shenzhen.
are:
(a)
These
Co-operative venture/joint management (hezuo jingying). The foreign partner provides funds and machinery whilst the Chinese side provides land and labour. The venture is then jointly
managed under a contractual, profit-sharing arrangement. Under the terms of such an agreement, the Chinese side repays the capital (plus interest) invested by the foreigner, so that the whole venture ultimately reverts to Chinese ownership. Most ventures of this sort relate to housing or hotel projects.
By the
end of 1980, this form of foreign investment represented the largest proportion of all such investments in Shenzhen. By this date, Shenzhen had a total of 581 projects based on foreign participation, with a total of
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/HK
*