Bulletin Number Five 1985

necessarily unique of the area, also deserve mentioning. For example, the separation of commercial function from the state and government department has started very early in Shenzhen, especially in Shekou with the so-called 'companies' responsible for their own assets and liabilities. The 'Shekou model' has been widely heralded as a show case for other SEZs and cities in China. In the enactment of laws and the enforcement of a legal system, the Shenzhen SEZ is among one o f the areas in China that has made satisfactory progress. In the financial field, experi- mentation with the issue o f a special zone currency for Shenzhen is under serious consideration. It is believed that the innovative measures teste d and implemented in Shenzhen may bear important implications on the future policy of th e Chinese government and the spillover effect to other parts of China should not be underestimated. At the same time, social problems brought about by such changes may also be unprecedented in other parts of the country. The recruitment of labour from other districts and provinces has, for example, attracted a large number of young workers to Shenzhen, thus producing an exceptionally young population structure, with an average age of twenty-two. Other social problems resulting from such imported contract labour (such as accident insurance, entitlement to local medical/social benefits, etc.) are also issues that deserve further study. Zhuhai SEZ bears some similarity to Shenzhen in being a frontier settlement experimentin g with new economic concepts and systems. Being much smaller in size and less well endowe d geographically, Zhuhai's development has been carried out in a smaller scale as compared with that of Shenzhen. But with much o f the investment coming from Hong Kong and neighbouring Macau, Zhuhai has constant exposure to foreign economic practices. Serving as an experimental station on a similar basis as Shenzhen, the success of the Zhuhai SEZ has been less spectacular. But still the Chinese leaders have high hopes for these zones and are generally quite satisfied with their performances. Deng Xiaoping's visit to these two special economic zones in January 1984 was a boost in spirit and his remarks wer e equally encouraging. His comments were: ‘The development and experience of Shenzhen have proved that our policy of establishing special economic zones is correct' and 'Zhuhai SEZ is good'. Shantou SEZ, situated at the northeastern comer of Guangdong Province, seems to have escaped the attention of Deng for he did not visit Shantou at all in his last round of SEZ tour. The original plan for the Shantou SEZ was the 1.6 sq. km. Longhu Industrial District (a newly 'reclaimed' area 3 km. to the east of Shantou Old City) which was to be developed into an export-processing type of establishment. As such, the role that Longhu could play will not be able to be compared with that of Shenzhen. Given th e fact that Shantou was at one time the third most important trading port of China, and supported by an efficient labour force and traditional light manufacturing infrastructure, the policy of seclusion in the Maoist period has suffocated the economic growth of the area. With such background, the adoption of an open policy is essential for the revival of the region and the establishment of the SEZ is therefore perceived as a means to revitalize the economy of the Chao-shan Plain, with the SEZ acting as a catalyst for modernization. As early as 1981 ， it hasbeen recognized that economic growth o f the region should include a variety of activities other than export processing industries in the Longhu District; but it was much later that decision was made to expand the area of the SEZ to includ e other activities so that it can fulfi l its role as a regional growth centre in various aspects. Thus, apart from the Longhu Distirct, 1.7 sq. km. of port and warehouse space has been earmarked for port industries, and an area of more than 19.3 sq. km. has been designated as a modem agricultural experimentation area for the production of market gardening and horticultural products, pork, poultry, snakes an d marine products for export. And in lat e 1984 ， the area of the Shantou SEZ was further expanded to include the 30 sq. km. Guangao district designated for the development of a petrochemical complex. Up to now ， progress of the Shantou SEZ has been made steadily but probably not up to the expectations of the Chinese leaders. There are undoubtedly a number of inherent problems that require immediate solution, such as poor transportation facilities, shortage of water and energy supplies, etc. It may therefore be concluded that the significance of the Shantou SEZ, at least up to the present ， is probably more at the regional rather than at the national level. Indications are that the SEZ would serve as a centre of regional development for the Chao-shan Plain. Xiamen is the only SEZ in Fujian Province and like Shantou, started as an export processing area in the Huli Industrial District with an area of 2.5 sq. km. In 1984 ， it was proposed that the area of the SEZ is to be expanded to cover the whole of Xiamen Island plus Gulangyu (an offshore island with good tourism potentials), making a total area of 125.5 sq.km. Quit e different from the other SEZs, the extended Xiamen SEZ would include the old city area with a sizable indigenous population (population of Xiamen Island RECENT DEVELOPMENTS 35