China's Export Processing Zone Development Assessment And Policy Research

Ever since the economic reform of our country in 1979, our foreign trade has grown by leaps and bounds which is exemplified by the fact that by the end of 2005, our imports and exports totaled US$1422.1 billion, registering an annual growth rate of over 20% for 5 consecutive years and occupying the 3^rd place in the global trade two years in a row During the period in which China has evolved from the 32nd place in 1979 to the 3rd place in 2004, the Export Processing Area (hereinafter referred to as "EPA") has placed a very important role.Focusing on the current status and development trend of EPA, this paper consists of two parts. The first part evaluates the present situation of EPA from three aspects, the general situation, the achievement and the problems. On the one hand, the author recognizes EPAs positive role in utilizing foreign capital, accelerating the development of our foreign trade, upgrading the industrial structure, increasing employment opportunities, promoting regional economy and utilizing land intensively On the other hand, the author illustrates some problems in practice such as single function, inefficient management system, deficient overall arrangement, weak capability in developing harmoniously with regional economy In the second part of this paper, the author presents some viewpoints to the perspectives of EPA in the long run and gives some suggestions concerning policies. The success of those counterparts in other countries proves it true that improving function is one of the most important ways for continuous and stable development after the initial phase which is characterized by scale expansion. Thus for better development, we should learn from international experience, know the law of development, adjust our thoughts in time to the general requirement on national economy development during the Eleventh Five-year Plan period. We should seize the opportunity of a new adjustment and transition of international industrial structure, bring EPA's pioneer role into full play and, through improving the industrial level of processing trade and deepening its processing degree, promote the adjustment and upgrading of regional industrial structure, increase regional economy all-around, and achieve harmonious development between urban and rural regions.In general, EPA will still play an important role in our country's economic development. However, it can develop continuously and stably and promote the economy of the region where it lies only if it is oriented not only to global but also to domestic market.