The Curtain Goes up
A clearly confident China has rolled up a large section of its bamboo curtain, declared itself "open to the outside world" and hung signs on nearly all its cites inviting foreign investors to. come and do serious business.
The four special economic zones(SEZs) in Guangdong and Fujian provinces,14 costal cities and Hainan island have specifically designed tax and other incentives for the foreign investor. But every provincial capital is doing its best to attract foreign investment.
In April 1984, after the country's top leaders had visited the Shenzhen, Zhuhai and Xiamen SEZs, the State Council declared 14 cities along the entire coast plus Hainan island open to foreign investment, thus introducing a real element of competition into the country^’s economic-development programme. Then came the much-publicized" decision on reform of the economic structure" and suddenly, the race to get foreign technology and funds was on.
Stock-taking of the open policy will come later this year when the National People's Congress discusses the seventh five-year plan, which will run to the end of the decade.
Foreign direct investment is regarded as a real element of competition introduced into Chinese market in 1984.