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Over the past decade, there has been a sea change in China’s economic policies. Like other developing countries which are attemp
Over the past decade, there has been a sea change in China’s economic policies. Like other developing countries which are attemp
admin
2010-11-29
73
问题
Over the past decade, there has been a sea change in China’s economic policies. Like other developing countries which are attempting to become more export- orientated, China has started to set up free trade zones. These zones are called "Special Economic Zones" (SEZ’s) and feature various
incentives
designed to encourage foreign investment. What is the significance of these zones? Have they really played an important role in the development of the economy of China? I will discuss these questions below.
Historically, China has adopted an inward-looking strategy to its economic development. Successive Chinese governments thought that the economy could grow purely through self-reliance (Jao & Leung 1996). However, there are always limitations to what a country can do by itself, for example, limitations in raw-materials, natural resources, technology, etc. These can hold back the growth of an economy and certainly China’s economic growth lagged far behind much of the rest of the world up to the 1970’s.
By contrast, countries like the USA were achieving significant economic growth in this period because they were practicing foreign trade policies which facilitated free trade (Crane 1990). Any shortages in the domestic economy, for example, oil in the USA or Japan, wheat in the Soviet Union or cars in India could be compensated for by imports. Foreign trade, then, could help to aid economic growth.
The export trade is also vital. Not only can exports be a means of paying for imports, but they also help to earn foreign exchange. Since 1979, the Chinese government has recognized the importance of exports as a means of fostering economic growth. Economic policies and special incentive programmes have been introduced to increase exports. One measure taken was the opening of the five special economic zones. They were Shenzhen, Zhuhai, Shantou in Guangdong province, Xiamen in Fujian province and Hainan Island. In order to attract foreign investors and develop foreign trade, the five SEZ’s offer similar packages of favourable incentives to foreign firms. One of the most attractive points of these packages is that income tax is fixed at the rate of 15 per cent, lower than that in other parts of China. Other advantages such as tax exemptions, land use rights, and banking and finance privileges are not available to firms operating outside the SEZ’s.
Many other non-financial advantages are provided inside the SEZ’s. Firms are provided relatively free-market environments with minimal government intervention. This means that private and joint-venture enterprises are free to hire their own workers. They are also free to set wages to reflect market conditions. Bonuses can be awarded to workers for outstanding performance.
After thirty years, it has been clear that the favourable impact of the SEZ’s on the economy of China is fivefold: They attract foreign investment, they help the growth of the export industry, they earn foreign exchange, they provide employment opportunities and lastly they help the indigenous economy improve to level of technology.
Why is the USA mentioned in Paragraph 3?
选项
A、To set up an example for China to learn from
B、To contrast with the policies used in SEZ in China
C、To illustrate how successful the USA is
D、To illustrate that free trade can benefit economy
答案
D
解析
推理题。此处提到美国,旨在对比并说明自由贸易政策对经济发展的积极影响。
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0
专业英语四级
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