TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 176

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Introduction

WENTAL 18 2

TX

Shenzhen Special Economic Zone (SSEZ) "How successful has it been to-date?"

The objective of this paper is to assess, to the extent possible, how successful to-date the Shenzhen

Special Economic Zone (SSEZ) has been. It is too early to make a definitive assessment, as the formal approval for its setting up was given only in 1980. Further the extent to which the SSEZ can be regarded as a success may vary depending on the criterion used. This problem is

discussed in detail below.

Against what criteria should the performance of the SSEZ

be assessed?

2.

In order to address the above question properly, the underlying motives of the Chinese authorities in setting up the Special Economic Zones (SEZS) have to be

considered. It is difficult to be certain about their precise motives and the following are no more than educated guesses based on reported statements by Chinese leaders and other reports and articles. First, the four SEZs were intended to be models for the economic growth and development of the country generally. Second, the

SEZS were intended to be the locomotive for economic growth which would help to pull the national economy forward, particularly in respect of commercial and industrial development. Third, the SEZs were intended to develop into free trade zones so as to attract foreign capital and technological investment, and in the process, to facilitate the acquisition of training in industrial

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CONFIDENTIAL # 3

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