Building Engines for Growth and Competitiveness in China : Experience With Special Economic Zones and Industrial Clusters

In the past 30 years, China has achieved an unprecedented development 'miracle' in human history. How did China achieve this? What are the key drivers for such a rapid growth? And most importantly, what can be learned from China’s success? While many factors could be identified to explain China's success, it is no doubt that the numerous Special Economic Zones (SEZs) and industrial clusters that emerged after the country’s reforms are two important engines that have been driving China’s rapid development. The key experiences of China's SEZs and industrial clusters could be best summarized as: gradualism with experimental approach; strong commitment; and an active facilitating state with strong pragmatism. This book reviews the development experiences of China's SEZs and industrial clusters through extensive research, field visits, and case studies in an attempt to benefit the policy-makers, development practitioners, scholars from developing countries, and the global development community in general. It contains five detailed case studies – three SEZs in the broadest sense (Shenzhen, Tianjin and Kunshan) and two industrial clusters (Wenzhou footwear cluster in Zhejiang and Xiqiao textile cluster in Guangdong). This volume represents the most comprehensive volume to date on China's experiences with both its SEZ and cluster experiences.

This book reveals fascinating insights into the two remarkable engines fueling China's economic success: special economic zones (SEZs) and industrial clusters. Douglas Zeng provides an excellent overview of China's SEZs and clusters, their background, success factors, challenges, and possible solutions. The five well-written case studies delve into the rich detail of the evolution and success of SEZs and clusters in key growth regions of China. The views on the distinctions and convergence of SEZs and clusters are fresh and in-depth. As China celebrates the 30th anniversary of its SEZ policy, the publication of this book could not have been more timely. With growing interest in ChinaA?s experience, this book is a must-read for policy makers, development practitioners, business leaders, and scholars worldwide who are eager to learn from China's success. --Eric Rolf Hansen, President of Economic Transformations Group, Inc

China's economic rise continues to amaze. This book provides important new insights into two dimensions that, when combined, are emblematic of the nature of China's economic transformation. The creation of special economic zones (SEZs) has been a core element of the government's strategy to drive growth through a process of selective reforms in specific regions. The emergence of clusters has been a market-driven response to the new opportunities opening up in China. The case studies in this book suggest that Chinese SEZs and clusters have often been successful precisely because pragmatic policies allow them to become mutually reinforcing. This book will help researchers and policy makers better understand China's growth, past and current, as well as the lessons the country holds for the effective use of SEZs and clusters in organizing economic policies. --Christian Ketels, Principal Associate of the Institute for Strategy and Competitiveness at Harvard Business School and Director of The Competitiveness Institute (TCI)