U.S.-China Economic Relations: Present and Future

By Richard H. Holton; Wang Xi et al. | Go to book overview

11. Prospective U.S. Investment in China's Special Economic Zones and Open Coastal Cities

CHEN BAOSEN

In 1984, at a seminar on China's offshore oil prospects at an American university, the speaker--a government economist--held that the prospects for China's offshore oil exploration efforts were still uncertain. Success in these efforts can greatly strengthen the Sino-American economic relationship. Four years have elapsed since then. Although there have been no major oil discoveries yet, Sino-American economic and trade ties have strengthened remarkably. This development is inseparable from China's open-door policy, the preferential treatment offered to foreign capital, and the cooperation extended by the American government and American companies. Cooperation between China and the United States is by no means limited to oil exploration.


The Establishment of Special Economic Zones

The Chinese government's coastal areas policy has led to the establishment of four Special Economic Zones in Shenzhen, Zhuhai, and Shantou in Guangdong Province and in Xiamen in Fujian Province. In 1984, fourteen coastal cities (Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang, and Beihai) and Hainan Island were opened, where economic and technological development areas have been constructed. In 1985, the Yangtze River Delta, the Pearl River Delta, and the Minnan triangle were opened to the outside world. In 1988, the Chinese government again announced that an across-the-board experiment with the open-door policy and economic reform will be conducted in the Pearl River Delta and

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*
All data cited are from the Ministry of Foreign Relations and Trade sources, published and unpublished.

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