Economic Policies, Essay Example

The establishment of the Special Economic Zone policies in China is one among the most comprehensive procedures of strategic economic growth that the nation has ever adapted. From the years 1975 to 2013, the drastic economic growth in the county could be fully accounted for the implementation of the SEZ policy. This policy basically aided local workers and industries to thrive better through becoming highly noted for their performance in the market especially in relation to boosting the nation’s economy. What made the SEZ policy effective is that it created two competent factors that aided economic development among members of the nation which includes preferential business policies as well as strong government assistance.

The involvement of the government within the process gave foreign investors the proper vision of being fully protected by the highest command in the country. Relatively, this developed a more definite system of economic development that allowed for the chance of tax incentives to be given to loyal investors in the country. With the rate of 15-24 %, China has become a top choice for investors among all other nations surrounding it. Giving these investors proper incentives from dealing with  local businesses through insisting that local firms pay at least 33% of the total tax that must be paid by foreign business investors. Along with these assumptions of support from the government, foreign investors are also allowed to bear zero custom duties which allow them to enjoy free allowances that provide them a much larger arena for growth and production development. .

Land Use options for investors is also carefully planned which naturally gives a more definite insistence on how these factors could help create a more definite value that investors would basically invite them to establish transactions with local business owners. With exclusive land rights, investors from foreign land see the robust possibilities of business growth with less cost of expenses as they enter the Chines arena of business operations. The competence that the policy gives them creates a distinct assumption of success that investors are especially giving high regard for. The money they are going to release for the sake of creating alliances with local business operators in China are is expected to come back at a much higher rate of profit; hence making the process more inviting for the said individuals. Land use right for those who have at least $10 million USD contract with local Chinese operators is a definite form of invitation that investors cannot simply ignore. Truly, the SEZ project directed for the economic growth of the country has created a more defined insistence of progress especially for the sake of providing the investors with housing incentives, research funding, assistance on the public building innovation, with fully legislative authority provided for the sake of improving the capacity of each investor to work on the business they hope to grow along with.

Apart from the capacity of the policy to invite more investors, SEZ systems of industrial operations also made it possible for the increase of local and neighboring immigrants to be interested in working in specific areas as they offer specific skills that help out in the process of segregating resources according to where they are needed. This way, the industries are able to properly thrive in recognition with the need to be fully supported by ample workmen [human resources] who are ready to provide their skills for he completion of the work they have primarily been hired to do.

Centralizing the system of economic growth that aids the whole nation towards development; this is what SEZ is all about, somehow, it is the same consideration that other nations are trying to consider to implement in their own areas of responsibilities. The response of both the local and international market to the system basically puts China back into the pages of worldwide economic history.