A Special Economic Zone (SEZ) is a geographical region that has economic laws different from a country’s typical economic laws. Usually the goal is an increase in foreign investment. Special Economic Zones have been established in several countries, including the People’s Republic of China, India, Jordan, Poland, Kazakhstan, the Philippines and Russia. North Korea has also attempted this to a degree.

In the People’s Republic of China
‘’Main articles: Special Economic Zones In the People’s Republic of ChinaThe word “special” mainly means special economic systems and policies. In the People’s Republic of China, the central government gives SEZs special policies and flexible measures, allowing SEZs to utilize a special economic management system.
1. Special tax incentives for foreign investments in the SEZs.
2. Greater independence on international trade activities.
3. Economic characteristics are represented as “4 principles”:
1. Constructions primarily relies on attracting and utilizing foreign capitals
2. Primary economic forms are sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises
3. Products are primarily export-oriented
4. Economic activities are primarily driven by market
SEZs are lited separately in the national planning (including financial planning) and have province-level authority on economic administration. SEZs local congress and government have legislation authority.

List of PRC’s SEZs
PRC’s SEZ’s are located in:
· Guangdong Province: Shenzhen, Zhuhai and Shantou
· Fujian Province: Xiamen
· Hainan Province (whole province)