Special economic zones of China

Last updated

When Deng took over as the Prime Minister of China, he presented himself as a pragmatic contrast to his predecessor Mao, who was more of a theorist and an ideologist. Deng's main goal was to lift people out of poverty and significantly improve the lives of ordinary Chinese people. In justifying opening up and the series of economic reforms that ensued, Deng referred to Marx and his theories, which predicted that nations need to undergo urbanization and a stage of capitalism for a natural socialist transition. One of the most renowned reforms under Deng was establishing four "special economic zones" along the Southeastern coast of China, with Shenzhen, Shantou, and Zhuhai located in Guangdong province and Xiamen located in Fujian province. Special economic zones (SEZs) in mainland China are granted more free market-oriented economic policies and flexible governmental measures by the government of China, compared to the planned economy elsewhere. This allows SEZs to utilize economic management which is more attractive to foreign and domestic businesses. In SEZs, "...foreign and domestic trade and investment are conducted without the authorization of the Chinese central government in Beijing" with "tax and business incentives to attract foreign investment and technology". [1] Trade was originally controlled by China's centralized government. However, These special zones are where market-driven capitalist polices are implemented to entice foreign investments in China. In 1986, China then added 14 additional cities to the list of special economic zones.

Contents

History

In the late 1970s, and especially at the 3rd Plenary Session of the 11th Central Committee of the Chinese Communist Party in December 1978, the Chinese government initiated its policy of reform and opening up, as a response to the failure of Maoist economic policy to produce economic growth which would allow China to be competitive against not only industrialized nations of the west but also rising regional powers: Japan, Korea, Singapore, Taiwan, and Hong Kong. [2] Officials in Guangdong Province led by Provincial Party Secretary Xi Zhongxun seized the initiative, starting with an investment project in Shekou prepared by Yuan Geng on behalf of the Hong Kong-based China Merchants Steam Navigation Company. This project, initially a ship breaking facility, was approved by Li Xiannian on January 31, 1979. In April 1979, Xi Zhongxun and other Guangdong officials presented in Beijing a proposal to give broader flexibility to the coastal provinces of Guangdong and Fujian to attract foreign investment, with additional exemptions in four cities, namely Shenzhen in the Pearl River Delta region, Zhuhai and Shantou in Guangdong and Xiamen (Amoy) in Fujian Province. For these, Chinese Paramount leader Deng Xiaoping coined the name "special zones" [3] [4] with reference to the designation of another border region during the Chinese Civil War. The proposal was approved on July 15 and the four special zones were officially established on August 26, 1979. [5]

In 1984, China further opened 14 coastal cities to overseas investment: Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai. Since 1988, mainland China's opening to the outside world has been extended to its border areas, areas along the Yangtze River and inland areas. First, the state decided to turn Hainan Island into mainland China's biggest special economic zone (approved by the 1st session of the 7th NPC in 1988) and to enlarge the other four special economic zones.

Shortly afterwards, the State Council expanded the open coastal areas, extending into an open coastal belt the open economic zones of the Yangtze River Delta, Pearl River Delta, Xiamen-Zhangzhou-Quanzhou Triangle in south Fujian, the Shandong Peninsula, the Liaodong Peninsula (in Liaoning Province), Hebei Province and Guangxi autonomous region. In June 1990, the Chinese government opened the Pudong New Area in Shanghai to overseas investment, and additional cities along the Yangtze River valley, with Shanghai's Pudong New Area as its "dragon head." [6]

Since 1992, the State Council has opened a number of border cities and, in addition, all the capital cities of inland provinces and autonomous regions. In addition, 15 free trade zones, 32 state-level economic and technological development zones, and 53 new and high-tech industrial development zones have been established in large and medium-sized cities. As these open areas adopt different preferential policies, they play the dual roles of "windows" in developing the foreign-oriented economy, generating foreign exchanges through exporting products and importing advanced technologies and of "radiators" in accelerating inland economic development.

Primarily geared to exporting processed goods, the five SEZs are foreign trade-oriented areas which integrate science, industry and innovation with trade. Foreign firms benefit from preferential policies, such as lower tax rates, reduced regulations and special managerial systems. In 1999, Shenzhen's new and high-tech industry reached an output value of 81.98 billion yuan, making up 40.5% of the city's total industrial output value.

Since its founding in 1992, the Shanghai Pudong New Area has made progress in both absorbing foreign capital and accelerating the economic development of the Yangtze River valley. The government has extended special preferential policies to the Pudong New Area that are not currently enjoyed by the special economic zones. For instance, in addition to the preferential policies of reducing or eliminating Customs duties and income tax common to the economic and technological development zones, the state also permits the zone to allow foreign business people to open financial institutions and run tertiary industries. In addition, the state has given Shanghai permission to set up a stock exchange, expand its examination and approval authority over investments and allow foreign-funded banks to engage in RMB business. In 1999, the GDP of the Pudong New Area came to 80 billion yuan, and the total industrial output value, 145 billion yuan.

In May 2010, the PRC designated the city of Kashgar in Xinjiang a SEZ. Kashgar's annual growth rate was 17.4 percent in 2009, and Kashgar's designation has since increased tourism and real estate prices in the city. Kashgar is close to China's border with the independent states of former Soviet Central Asia and the SEZ seeks to capitalize on international trade links between China and those states. [7]

In 2015, then-magistrate of Kinmen County (ROC) Chen Fu-hai, along with a non-profit Taiwan organization "with close ties to the CCP", [8] proposed a referendum in which Kinmen would become a special economic zone and obtain free trade and free investment between it and neighboring SEZ Xiamen on the mainland. The plan received controversy due to PRC investment in the ROC being otherwise strictly controlled; it was praised by a Xiamen government official and PRC state media, but the referendum did not[ citation needed ] receive approval from the government of Taiwan before Chen's term ended in 2018.

List of the SEZs and Open Coastal Cities

As part of its economic reforms and policy of opening to the world, between 1978 and 1984 China established special economic zones (SEZs) in Shantou, Shenzhen, and Zhuhai in Guangdong Province and Xiamen in Fujian Province as well as designating the entire island province of Hainan as a special economic zone. [9]

In 1984, China opened 14 other coastal cities to overseas investment (listed from north to south): Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang, and Beihai. These coastal cities have been designated as the "Open Coastal Cities" (simplified Chinese :沿海开放城市; traditional Chinese :沿海開放城市; pinyin :Yánhǎi Kāifàng Chéngshì). [10] [11]

Then, beginning in 1985, the central government expanded the coastal area by establishing the following open economic zones (listed from north to south): the Liaodong Peninsula, Hebei Province (which surrounds Beijing and Tianjin; see Jing-Jin-Ji), the Shandong Peninsula, Yangtze River Delta, Xiamen-Zhangzhou-Quanzhou Triangle in southern Fujian Province, the Pearl River Delta, and Guangxi Zhuang Autonomous Region.

In 1990, the Chinese government decided to open the Pudong New Area in Shanghai to overseas investment, as well as more cities in the Yang Zi River Valley.

Since 1992, the State Council has opened a number of border cities and all the capital cities of inland provinces and autonomous regions.

In addition 15 free-trade zones, 32 state-level economic and technological development zones, and 53 new and high-tech industrial development zones have been established in large and medium-sized cities. As a result, a multilevel diversified pattern of opening and integrating coastal areas with river, border, and inland areas has been formed in China. [12]

Type City Province
Special Economic Zone – Province Hainan
Special Economic Zone – City Xiamen Fujian
Shantou Guangdong
Shenzhen
Zhuhai
Kashgar Xinjiang
Open Coastal City Shanghai
Tianjin
Fuzhou Fujian
Guangzhou Guangdong
Zhanjiang
Beihai Guangxi
Qinhuangdao Hebei
Lianyungang Jiangsu
Nantong
Dalian Liaoning
Qingdao Shandong
Yantai
Ningbo Zhejiang
Wenzhou

Economic policies of the SEZs

  1. Special tax incentives for foreign investments in the SEZs.
  2. Greater independence from the central government on international trade activities.
  3. Economic characteristics are represented as "4 principles":
    1. Construction primarily relies on attracting and utilizing foreign capital
    2. Primary economic forms are Sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises
    3. Products are primarily export-oriented
    4. Economic activities are primarily driven by market forces

SEZs are listed separately in the national planning (including financial planning) and have province-level authority on economic administration. SEZs local congress and government have authority to legislate.

Leong (2012) investigates the role of special economic zones (SEZs) in liberalizing the Chinese economies and their impact on economic growth. The policy change to a more liberalized economy is identified using SEZ variables as instrumental variables. The results indicate that export and FDI growth have positive and statistically significant effects on economic growth in these countries. The presence of SEZs increases regional growth but increasing the number of SEZs has negligible effect on growth. The key to faster economic growth appears to be a greater pace of liberalization.

A 2022 study in the American Economic Journal found that SEZs in China led to increased human capital investment with improved educational outcomes. [13]

Shenzhen's Economic Transformation

Out of the special zones, perhaps the most successful was Shenzhen. It transformed from 126 square miles of villages into a business metropolis. [14] As seen by the table below, the ten years of economic reform from 1980 to 1990 increased population in Shenzhen by six-fold, GDP by around sixty-fold, and Gross Industrial Output by two-hundred fold. Before 1980, Shenzhen's GDP was just 0.2 percent of Hong Kong's. In 2018, the city's GDP hit 2.42 trillion yuan (US $372 billion), overtaking Hong Kong. [15]

YearPopulation (thousands people)GDP (Million Yuan)Gross Industrial Output (Million Yuan)
1980332.927099
1982449.5826424
1985881.539023119
19902019.417,16720,912

Overseas SEZs

From 1990 to 2018, Chinese enterprises established eleven SEZs in sub-Saharan Africa and the Middle East including: Nigeria (two), Zambia, Djibouti, Kenya, Mauritius, Mauritania, Egypt, Oman, and Algeria. [16] Generally, the Chinese government takes a hands-off approach, leaving it to Chinese enterprises to work to establish such zones (although it does provide support in the form of grants, loans, and subsidies, including support via the China Africa Development Fund). [16] Such zones fall within the Chinese policy to go out and compete globally. [17] The Forum on China-Africa Cooperation promotes these SEZs heavily. [16]

The first Chinese overseas SEZs facilitated the offshoring of labor-intensive and less competitive industries, for example in textiles. [16] As Professor Dawn C. Murphy summarizes, these zones now "aim to transfer China's development successes to other countries, increase business opportunities for China manufacturing companies, avoid trade barriers by setting up zones in countries with preferential trade access to important markets, and create a positive business environment for Chinese small and medium-sized enterprises investing in these regions." [16] Overseas SEZs also foster support for China in the international system and help advocate for developing country causes through South-South cooperation. [17] They "help China demonstrate it is acting as a responsible great power in these regions." [17]

Effectiveness and Legacy

Many scholars argue that SEZs were played a decisive role in the development of China and the success of Communism as implemented in China. Since their inception, SEZs have contributed 22% of China’s GDP, 45% of total national foreign direct investment, and 60% of exports. SEZs are estimated to have created over 30 million jobs, increased the income of participating farmers by 30%, and accelerated industrialization, agricultural modernization, and urbanization. [18] One of the primary theoretical foundation of SEZs is its ability to cultivate a form of innovation that is uniquely top-down (supported by government) and bottom-up (characterized by local problem solving), while utilizing resources and research at every level. SEZs reflected a desire for Deng Xiaoping's CCP to be experimental, fluid, and localized when implementing Communist reforms.

However, issues like prioritizing the short-term gains, encompassing a limited number of industries, and lack of entrepreneurial promotion are pointed out by critics of the SEZs. Others, like Gopalakrishnan, point out that "Left out of the picture are inequities in development, arable land loss, real estate speculation and labour violence", as well as significant transparency problems in bureaucracy. [19] Indeed, the aforementioned successes of SEZs in the Chinese economy fail to account for the vast variation in success among the many SEZs, focusing instead on the aggregate effect. This parallels a critique of modern American capitalism, which states that a growing GDP may not be worth the adverse effects regarding an ever-increasing wealth gap.

See also

Notes

  1. "Special economic zone (SEZ) - Chinese economics". Encyclopedia Britannica.
  2. Worden, Robert L.; Savada, Andrea M.; Dolan, Ronald E. (1987-07-01). "China: A Country Study". Fort Belvoir, VA. doi: 10.21236/ada205396 .{{cite journal}}: Cite journal requires |journal= (help)
  3. Stoltenberg, Clyde D. (1984). "China's Special Economic Zones: Their Development and Prospects". Asian Survey. 24 (6): 637–654. doi:10.2307/2644396. ISSN   0004-4687. JSTOR   2644396.
  4. Holmes, Frank (21 Apr 2017). "China's New Special Economic Zone Evokes Memories Of Shenzhen". Forbes. Retrieved 22 March 2019.
  5. Vogel, Ezra F. (2011). Deng Xiaoping and the Transformation of China . The Belknap Press of Harvard University Press. p. 398.
  6. Chen, Yawei (2020-10-06). "Financialising urban redevelopment: Transforming Shanghai's waterfront". Land Use Policy. 112: 105126. doi: 10.1016/j.landusepol.2020.105126 . ISSN   0264-8377.
  7. Fish, Isaac Stone (2010-09-25). "A New Shenzhen". Newsweek . Retrieved 2011-07-29.
  8. Lee, Yimou; Hung, Faith (October 8, 2015). "China turns firepower to soft power to try to win tiny Taiwan-held island". Reuters. Archived from the original on June 6, 2019. Retrieved June 6, 2019.
  9. "China in Brief - china.org.cn". www.china.org.cn. Retrieved 2020-12-02.
  10. "Special economic zone | Chinese economics". Encyclopedia Britannica. Retrieved 2020-12-02.
  11. Verde, Giacomo (2020-10-26). "Learn All About Special Economic Zones In China". FDI China. Retrieved 2020-12-02.
  12. Desk, Magazine (2020-11-01). "China and the history of its Special Economic Zones". Global Village Space. Retrieved 2020-12-02.
  13. Lu, Fangwen; Sun, Weizeng; Wu, Jianfeng (2022). "Special Economic Zones and Human Capital Investment: 30 Years of Evidence from China". American Economic Journal: Economic Policy. doi:10.1257/pol. ISSN   1945-7731.
  14. Ding, Xuejie (2001). "Shenzhen Yearbook 2001".
  15. "Why China's tech megacity is at risk of being a high-income trap". South China Morning Post. 2021-03-16. Retrieved 2022-10-04.
  16. 1 2 3 4 5 Murphy, Dawn C. (2022). China's rise in the Global South : the Middle East, Africa, and Beijing's alternative world order. Stanford, California: Stanford University Press. p. 177. ISBN   978-1-5036-3060-4. OCLC   1249712936.
  17. 1 2 3 Murphy, Dawn C. (2022). China's rise in the Global South : the Middle East, Africa, and Beijing's alternative world order. Stanford, California: Stanford University Press. p. 182. ISBN   978-1-5036-3060-4. OCLC   1249712936.
  18. "China's Special Economic Zones" (PDF).
  19. Gopalakrishnan, Shankar (2007). "Negative Aspects of Special Economic Zones in China". Economic and Political Weekly. 42 (17): 1492–1494. ISSN   0012-9976.

Related Research Articles

<span class="mw-page-title-main">Guangdong</span> Most populous province of China, on the coast of the South China Sea

Guangdong, alternatively romanized as Canton or Kwangtung, is a coastal province in South China on the north shore of the South China Sea. The capital of the province is Guangzhou. With a population of 126.01 million across a total area of about 179,800 km2 (69,400 sq mi), Guangdong is the most populous province of China and the 15th-largest by area as well as the second-most populous country subdivision in the world. Its economy is larger than that of any other province in the nation and the third largest sub-national economy in the world with a GDP (nominal) of 1.95 trillion USD in 2021. The Pearl River Delta Economic Zone, a Chinese megalopolis, is a core for high technology, manufacturing and foreign trade. Located in this zone are two of the four top Chinese cities and the top two Chinese prefecture-level cities by GDP; Guangzhou, the capital of the province, and Shenzhen, the first special economic zone in the country. These two are among the most populous and important cities in China, and have now become two of the world's most populous megacities and leading financial centres in the Asia-Pacific region.

<span class="mw-page-title-main">Shenzhen</span> City in Guangdong, China

Shenzhen, also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern province of Guangdong, bordering Hong Kong to the south, Dongguan to the north, and Huizhou to the northeast. With a population of 17.56 million as of 2020, Shenzhen is the fourth most populous city proper in China. Shenzhen is a global center in technology, research, manufacturing, business and economics, finance, tourism and transportation, and the Port of Shenzhen is the world's fourth busiest container port.

A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays, where upon establishing themselves in a zone, they are granted a period of lower taxation.

<span class="mw-page-title-main">Fujian</span> Province of China

Fujian is a province on the southeastern coast of China. Fujian is bordered by Zhejiang to the north, Jiangxi to the west, Guangdong to the south, and the Taiwan Strait to the east. Its capital is Fuzhou, while its largest city by population is Quanzhou, both located near the coast of the Taiwan Strait in the east of the province.

<span class="mw-page-title-main">Xiamen</span> City in Fujian province, China

Xiamen, also known as Amoy, is a sub-provincial city in southeastern Fujian, People's Republic of China, beside the Taiwan Strait. It is divided into six districts: Huli, Siming, Jimei, Tong'an, Haicang, and Xiang'an. All together, these cover an area of 1,700.61 square kilometers (656.61 sq mi) with a population of 5,163,970 as of 2020 and estimated at 5.28 million as of 31 December 2021. The urbanized area of the city has spread from its original island to include most parts of all six of its districts, and with 4 Zhangzhou districts, form a built-up area of 7,284,148 inhabitants. This area also connects with Quanzhou in the north, making up a metropolis of nearly ten million people. The Kinmen Islands (Quemoy) administered by the Republic of China (Taiwan) which lie less than 6 kilometers (4 mi) away separated by Xiamen Bay.

<span class="mw-page-title-main">Zhuhai</span> City in Guangdong, China

Zhuhai, also known as Chuhai is a prefecture-level city located on the west bank of Pearl River estuary on the central coast of southern Guangdong province, People's Republic of China, on the southeastern edge of Pearl River Delta. Its name literally means "pearl sea", which originates from the city's location at the mouth of the Pearl River meeting the South China Sea. Zhuhai borders Jiangmen to the west, Zhongshan to the north and Macau to the southeast, and shares maritime boundaries with Shenzhen and Hong Kong to the northeast across the estuary.

<span class="mw-page-title-main">Open Door Policy</span> Late 19th/early 20th-century U.S. foreign policy seeking to open trade with China

The Open Door Policy is the United States diplomatic policy established in the late 19th and early 20th century that called for a system of equal trade and investment and to guarantee the territorial integrity of Qing China. The policy was enunciated in US Secretary of State John Hay's Open Door Note, dated September 6, 1899 and circulated to the major European powers. In order to prevent them from "carving of China like a melon," as they were doing in Africa, the Note asked the powers to keep China open to trade with all countries on an equal basis and called upon all powers, within their spheres of influence to refrain from interfering with any treaty port or any vested interest, to permit Chinese authorities to collect tariffs on an equal basis, and to show no favors to their own nationals in the matter of harbor dues or railroad charges. The policy was accepted only grudgingly, if at all, by the major powers, and it had no legal standing or enforcement mechanism. In July 1900, as the powers contemplated intervention to put down the violently anti-foreign Boxer uprising, Hay circulated a Second Open Door Note affirming the principles. Over the next decades, American policy-makers and national figures continued to refer to the Open Door Policy as a basic doctrine, and Chinese diplomats appealed to it as they sought American support, but critics pointed out that the policy had little practical effect.

Regional policy is the sum of a series of policies formulated according to regional differences to coordinate regional relations and regional macro operation mechanism, which affects regional development at the macro level. It includes regional economic policy, regional social policy, regional environmental policy, regional political policy, regional cultural policy, etc.Regional policy aims to improve economic conditions in regions of relative disadvantage, either within a nation or within a supranational grouping such as the European Union. Additionally, a regional policy may try to address high levels of unemployment and lower-than-average per capita incomes. Its main tool is public investment.

The Shenzhen Special Economic Zone is a special economic zone (SEZ) of China. One of four special economic zones (SEZ) established in May 1980, it was the first SEZ created by Deng Xiaoping, and, like the other three zones, was modeled after Ireland's Shannon Free Zone.

Trade is a key factor of the economy of China. In the three decades following the formation of the Communist Chinese state in 1949, China's trade institutions at first developed into a partially modern but somewhat inefficient system. The drive to modernize the economy that began in 1978 required a sharp acceleration in commodity flows and greatly improved efficiency in economic transactions. In the ensuing years economic reforms were adopted by the government to develop a socialist market economy. This type of economy combined central planning with market mechanisms. The changes resulted in the decentralization and expansion of domestic and foreign trade institutions, as well as a greatly enlarged role for free market in the distribution of goods, and a prominent role for foreign trade and investment in economic development.

The National Economic and Technological Development Zones are the special areas of the People's Republic of China where foreign direct investment is encouraged. They are usually called the "Economic and Technological Development Zones" or simply the "Development Zones".

<span class="mw-page-title-main">Western Taiwan Straits Economic Zone</span> Proposed special economic zone in China

Western Taiwan Straits Economic Zone or West Coast Economic Zone is the proposed economic development zone for the economic region west of the Taiwan Straits by the Fujian government and the Chinese central government. This include the coastal cities of Xiamen, Zhangzhou, Quanzhou and Fuzhou along Fujian province.

<span class="mw-page-title-main">Economy of Guangdong</span>

The Economy of Guangdong is one of the most prosperous in China. Guangdong is located in southern China, bordering on Fujian Province to the east, Hunan Province to the north, Guangxi Autonomous Region to the west and the special administrative regions of Hong Kong and Macau to the south. It is also the 1st economy of a sub-national entity in terms of GDP almost US$2.0 trillion in all of Asia and 3rd largest sub-national entity in the world.

The Chinese economic reform or reform and opening-up, known in the West as the opening of China, is the program of economic reforms termed "Socialism with Chinese characteristics" and "socialist market economy" in the People's Republic of China (PRC). Led by Deng Xiaoping, often credited as the "General Architect", the reforms were launched by reformists within the Chinese Communist Party (CCP) on December 18, 1978, during the "Boluan Fanzheng" period. The reforms went into stagnation after the military crackdown on 1989 Tiananmen Square protests, but were revived after Deng Xiaoping's Southern Tour in 1992. In 2010, China overtook Japan as the world's second-largest economy by nominal GDP and in 2017 overtook the United States by becoming the world's largest economy by GDP (PPP).

Xu Shijie was a Chinese Communist revolutionary and politician. He held many positions in his native province of Guangdong, including as Party Chief of the provincial capital Guangzhou. He came out of retirement in 1988 to serve as the inaugural Party Chief of the newly established province and special economic zone of Hainan. In Hainan he worked closely with Governor Liang Xiang to implement reformist policies, but they were both dismissed in the aftermath of the Tiananmen Square protests of 1989 and the fall of the liberal leader Zhao Ziyang. He died soon afterwards in 1991.

<span class="mw-page-title-main">Guangdong–Hong Kong–Macao Greater Bay Area</span> Pearl River Delta metropolitan region

The Guangdong–Hong Kong–Macao Greater Bay Area also referred to as the Greater Bay Area (GBA), is a megalopolis, consisting of nine cities and two special administrative regions in South China. It is envisioned as an integrated economic area aimed at taking a leading role globally by 2035.

Foreign direct investment (FDI) has been an important part of Chinese economy since the 1980s. During the Mao period, most foreign companies halted their operations in China, though China remained connected to world economy through a limited scale of international trade. Since 1978, China was again open to foreign investment and within two decades it became the largest recipient of foreign direct investment among developing countries. While China's acceptance of foreign investment is commonly associated with Deng Xiaoping’s policies, Chinese leaders including Mao Zedong and Hua Guofeng already acknowledged the need to import foreign capital and technology in the early 1970s. The investments from the 1970s up till the 2000s mainly focused on the manufacturing sector, earning China the label “world’s factory”. However, female migrant workers who contributed to the growth through participation in the foreign-owned manufacturing sector had to work in poor conditions, with insufficient labor protection, and under restricted migration opportunities due to the hukou system.

<span class="mw-page-title-main">Deng Xiaoping's southern tour</span> 1992 tour of southern China by retired Paramount Leader Deng Xiaoping

Deng Xiaoping's southern tour, or 1992 southern tour, was the tour of Deng Xiaoping, retired Paramount leader of China, in southern China, including in Shenzhen, Zhuhai, Guangzhou and Shanghai, from January 18 to February 21, 1992. The talks and remarks made by Deng during the tour resumed and reinforced the implementation of his "Reforms and Opening-up" program in mainland China, which came to a halt after the military crackdown on 1989 Tiananmen Square protests ordered by Deng himself. The 1992 Southern Tour is widely regarded as a critical point in the modern history of China, as it saved the Chinese economic reform as well as the capital market, and preserved the stability of the society.

References