commercial consolidated tax.
4. Shenzhen registered an 80 per cent increase in its industrial output value in 1985 to reach 2.67 billion yuan. The volume of direct export commodities accounted for 43 per cent of its total sales as against 33 per cent in 1984. It plans to increase its total industrial and agricultural output value by an annual average of 22 per cent over the next five years. The total value of goods and services produced in 1985 was 7 times that of 1980. Six billion yuan was spent on developing its infrastructure between 1980 and 1985, 20 per cent of which was financed by foreign funds. Infrastructure expenditure has been significantly cut in 1986: expenditure in 1985 was around 2.4 billion yuan but only 1.65 billion yuan is planned for 1986. The average income of peasants and workers in 1985 were approximately 140 and 200 yuan per month, much higher than in the rest of China.
5. Of the US $840 million of foreign investment put to use in the 4 SEZS between 1980 and the end of 1984, US $580 million was utilised in Shenzhen. (US $840 million represents approximately 15 per cent of the total foreign investment put to use in China over that period.) In the first 11 months of 1985, foreign investment totalled US $780 million, of which US $216 million was actually put to use. This covered 441 individual projects indicating that the average size of projects is still small. The largest single category of project is assembly and processing, numbering 191. In 1986 it was officially claimed that 85 per cent of the established enterprises jointly owned by Chinese and foreign businessmen or owned solely by foreign businessmen have made a profit.
6.
Shenzhen is divided into 18 districts, one of which is Shekou. Shekou, whose original area of 2.1 sq kilometres has been increased to 8.2 sq kilometres, is independently run by the China Merchants Steam Navigation Co, a Hong Kong-based subsidiary of Peking's Ministry of Communications. Shekou has been more successful in achieving the ultimate goals of the SEZS than have the SEZs proper (see paragraph 14). Most of the deals it has struck with multi- nationals have provided for the transfer of relatively modern technologies. Approximately 70 per cent of the US $335 million worth of investments it had attracted by 1985 were in non-assembly- type manufacturing. In 1985 about 70 per cent of its total production was exported.
Xiamen (Amoy)
7. The Xiamen Special Economic Zone originally covered only 2.5 sq kilometres on the island of the same name but in 1984 the zone was extended to cover all of the island's 131 sq kilometres. Between 1980 and 1985, 500 million yuan was spent on infrastructure projects. Its airport, which was expected to be able to accommodate Boeing 747s in 1986, has direct flights to Hong Kong, the Philippines and Japan as well as Chinese cities. It has an imported direct dialling telephone system connecting Xiamen with 24 Chinese cities, Hong Kong, Japan and the USA. By the end of 1985, Xiamen had attracted US $650 million worth of overseas investment (not all
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