[Answer] Why were free trade zones created in China?

Answer: to attract investments by foreign countries

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Why were free trade zones created in China? Special economic zones (SEZs) in mainland China are granted more free market-oriented economic policies and flexible governmental measures by the government of China compared to the planned economy elsewhere. This allows SEZs to utilize economic management which is more attractive to foreign and domestic businesses. In SEZs "...foreign and domestic trade and investment are c… Special economic zones (SEZs) in mainland China are granted more free market-oriented economic policies and flexible governmental measures by the government of China compared to the planned economy elsewhere. This allows SEZs to utilize economic management which is more attractive to foreign and domestic businesses. In SEZs "...foreign and domestic trade and investment are conducted without the authorization of the Chinese central government in Beijing" with "tax and business incentives to attract foreign investment and technology". In the late 1970s and especially at the 3rd Plenary Session of the 11th Central Committee of the Communist Party of China in December 1978 the Chinese government initiated its policy of reform and opening up . As a response to the failure of Maoist economic policy that failed to produce economic growth which would allow China to be competitive against not only industrialized nations of th… In the late 1970s and especially at the 3rd Plenary Session of the 11th Central Committee of the Communist Party of China in December 1978 the Chinese government initiated its policy of reform and opening up . As a response to the failure of Maoist economic policy that failed to produce economic growth which would allow China to be competitive against not only industrialized nations of the west but also rising regional powers: Japan Korea Singapore Taiwan and Hong Kong. Officials in Guangdong Province led by Provincial Party Secretary Xi Zhongxun seized the initiative starting with an investment project in Shekou prepared by Yuan Geng on behalf of the Hong Kong -based China Merchants Steam Navigation Company . This project initially a ship breaking facility was approved by Li Xiannian on January 31 1979. In April 1979 Xi Zhongxun and other Guangdong officials presented in Beijing a proposal to give broader flexibility to the coastal provinces of Guangdong and Fujian to attract foreign investment with additional exemptions in four cities namely Shenzhen in the Pearl River Delta region Zhuhai and Shantou in Guangdong and Xiamen (Amoy) in Fujian Province. For these Chinese Paramount leader Deng Xiaoping coined the name "special zones" with reference to the designation of another border region during the Chinese Civil War . The proposal was approved on July 15 and the four special zones were officially established on August 26 1979. In 1984 China further opened 14 coastal cities to overseas investment: Dalian Qinhuangdao Tianjin Yantai Qingdao Lianyungang Nantong Shanghai Ningbo Wenzhou Fuzhou Guangzhou Zhanjiang and Beihai . Since 1988 mainland China's opening to the outside world has been extended to its border areas areas along the Yangtze River and inland areas. First the state decided to turn Hainan Island into mainla… Read more on Wikipedia The zone is being used as a testing ground for a number of economic and social reforms. For example the sale of video game consoles banned in China since ...

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