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China’s economic development zones (EDZs) are areas with preferential business policies that differ from those governing the country as a whole. First experimented with in the 1970s, Chinahas created a range of EDZs to attract foreign direct investment (FDI) and boost domestic growth.
EDZs provide a broad range of FDI incentives, which vary depending on the specific EDZ. Businesses operating in EDZs can expect, among other incentives, a higher level of autonomy over their operations, a variety of tax exemptions, land and building subsidies, and preferential employment policies.