:
5.
3-
Full, "equity joint-ventures" are thus the more formal and more
closely regulated. Tax laws and "detailed rules and regulations" for the
taxation of such ventures were promulgated on 10 September 1980 and
17 December 1980 respectively. However, the number of equity joint- ventures in China so far approved remains very small (22) and none is
located in an SEZ. The form of investment more suitable to the SEZs,
where a developed infrastructure is generally lacking, has therefore been
under co-operative production or compensation trade arrangements. With
the notable exception of construction projects for hotels and tourist
resorts, investment in the SEZS has been generally restricted to small-
scale, light-industrial and part-processing enterprises.
Shenzhen SEŻ
6.
The most important of the SEZs, and certainly the most
significant for Hong Kong, is the one at Shenzhen. This SEZ also includes
the "Special Industrial Zone" (SIZ) at Shekou, which is built and managed
by the Chinese-owned but Hong Kong-based China Merchants Steam Navigation
Co. Ltd.
7.
Land area.
The total area of the Zone, including Shekou, is 327 sq. kms. about one seventh the area of the municipality) of which
*
up to 98 sq. kms. have been designated suitable for industrial development. On its east/west axis it extends some 49 kms. and has an average depth of about 7 kms. (see Map: Annex A).
8.
Population. Shenzhen SEZ currently has a population or about
71,000, concentrated in the old town area between Shenzhen and Lo Wu.
There are plans to increase the Zone's population to some 500,000 as early as 1990 (however, see below paragraph 18). At the same time, the
population of the whole municipality is expected to rise from its present 330,000 (230,000 in 1969) to about 1 million.
CONFIDENTIAL
19.
•