The role of Free Economic Zones in China's externally oriented economic policy

Abstract

In the article, the types and features of China's Free Economic Zones (FEZ) functioning are investigated as an important tool for implementation of ‘open door' policy. The main types of Chinese FEZ in terms of occurrence time, economic orientation, location, role and position in the country's foreign policy were determined, and the examples of their different types were given. Based on the legal documents analysis confirming the changing management of the FEZ development, as well as on the special scientific economic literature, five stages of the FEZ formation in China were specified. The defining criteria for stages separating were: differences in the objectives and tasks of their functioning in different reforms' implementation periods, stimulation of certain FEZ types and their total number, historical peculiarities of FEZs state regulation. The authors describe the changes in the main economic and administrative mechanisms for the creation of different types of FEZs, coordination of sectoral and territorial priorities in changing the overall strategy of the state's foreign policy. The paper notes that the phased implementation of state measures on the basis of FEZ activities has become productive to attract foreign direct investment, technology and management in certain sectors of the economy and regions.