An area within the territory of a state where normal regulatory practices, such as foreign exchange and remittance restrictions, and export levels, do not apply. By 2002, there were more than 5 000 SEZs in China (Chen (2008) Urb. Studs 45, 2). Li et al. (2005) Pacif. Econ. Rev. 10, 4, find that foreign investment has played an important role in Chinese SEZs, but that the future of the Chinese open-door policy will depend on improving the Chinese political system. See Tantri (2012) India Qly.: A. J. of Int. Affairs 68, 3, 231 on China’s Policy for SEZs.
See also free trade zone.