Tashkent, Uzbekistan (UzDaily.com) -- Experts from the Institute for Forecasting and Macroeconomic Research (IPMI) studied China’s experience in developing special economic zones (SEZs).

Special Economic Zones (SEZs) in China are aimed at creating "points of economic growth" by attracting foreign investment and technology based on the incentive mechanism.

About 22% of the country’s GDP is generated in Chinese SEZs. They also account for 45% of the total volume of foreign direct investment entering the country and 60% of exports.

In China, SEZs began to be located in the coastal regions of the Pacific Ocean, and then in the basins of the Yangtze and Yellow Rivers. This form of placement entered the history of the world economy under the name "T-shaped strategy". The full implementation of this strategy in the future will bring China an increase in GDP per capita to US$30,000 by 2035.

What is the secret of the rapid development of Chinese SEZs?

Since 1984, initially in 15 coastal and 4 large cities, and since 2020 in medium-sized cities of the country, 15 free trade zones, 32 macroeconomic and technological development zones, and 53 high-tech industry development zones have been created. As a result, these SEZs began to play the role of an "accelerator" of economic development.

According to the results of the study, it was found that the following main factors contribute to the accelerated development of SEZs in China:

1. SEZ directorates were allowed to make decisions on the development of their infrastructure without the consent of the central government;

2. Enterprises in the SEZ independently make most of their investment, innovation, production and marketing decisions;

3. Providing special tax incentives for foreign investment in SEZs, whose products are mainly export-oriented;

4. Economic activity in SEZs is mainly governed by market principles and they are given greater independence in international trade.

5. 24 New Cross-Border e-commerce Zones opened in China in 2019-20;

6. SEZs in China are mainly focused on the production of high-tech industrial products.

Given the experience of China, when developing SEZs in Uzbekistan, it is advisable to give local authorities the authority to make independent decisions regarding freedom of trade, investment, innovation and infrastructure, as well as paying attention to such factors as: tax and customs benefits and aspects of the rational system placement of SEZs.