Outside In | China is the world leader in special economic zones but the results are erratic at best, with many being underused or failing to benefit the wider economy
- In a country where liberalisation is contentious and vested interests are many, SEZs have provided Beijing with avenues for experimentation. As a result, China has more than half the world’s total special economic zones, with dozens in Shanghai alone
Today, an estimated 147 countries host special zones of one kind or another, but none has taken them so firmly to the heart of their development strategy as China. As of last year, it was home to 2,543 zones – more than half the world’s total.
Asia boasts more than three-quarters of all special zones, putting it at the epicentre of global growth strategies based on foreign investment and export processing. It is also the principle platform for development of the complex international supply chains created by the world’s leading multinationals, which are being so vilified by the US administration.
It’s ironic, therefore, that the US has one of the world’s largest populations of special zones – over 260 – which are in most economies emblematic of state-driven economic growth strategies. In the US, they are often called “opportunity zones” and mainly developed by city and state governments rather than Washington.
