Almost half of all foreign investment in China now has been invested in the economic zones. The industrial production in all economic zones has grown faster than the rest of China. There are many economic development zones in China today. They are named differently and create much confusion for the researcher or investor Their names are many for example, FTZ, SEZ, ETW, OEZ, CEOA, COC, OEZ, T17Z and bonded warehouses. This paper will discuss them in detail, by explaining the logic behind the FTZ concept. The aim of all zones is to provide tax holidays, customs duties exemptions, preferential tax rates, and lower corporate taxes as special incentives to encourage foreign investment. On the …