- _Import-export service_ . The park provides free import-export services, including customs declaration, bonded warehouse, and so on.

- _Human resources support_ . The park has a labor market, which holds three big recruiting events each month and has a human resource database. In addition, some recruiting firms also help to identify qualified people.

- _Management consulting services_ . University professors and successful entrepreneurs give management and business training, including seminars and case studies. To promote products, the park set up networks to help relevant enterprises introduce their products, organizes public media visit, and hosts exhibitions. Most importantly, enterprises gain membership in the Shanghai Technology Stock Exchange, thus obtaining investment, projects, new products, and market-related information.

Source: Zeng 2001; Hong Kong Trade Development Council 2014.

In addition, the SEZ governments are able to make timely adjustments to relevant policies and regulations based on business needs and market conditions, as well as on development stage. For example, after the zones were successful, the governments began to put more emphasis on the technology-intensive or high–value-added sectors and to adjust their FDI policies to create a level playing field for both foreign and domestic firms. In 2007, China established a common effective tax rate of 25 percent for both foreign and domestic companies.

**_Land Reforms._** In China, the land reforms started from Shenzhen has played an important role in the SEZs’ success.  Before 1981, all land belonged to the State in the urban areas and, in rural areas, land was “collectively” owned. In November 1981, the Guangdong government passed the Provisional Regulations of Land Control in the Shenzhen SEZ which allowed investors to apply to the SEZ authorities for a Land Use Certificate, which was good between 20-50 years depending on the sector and type of activity. It also provided standard land use fees within the SEZ, which provided important initial finance for infrastructure and real estate development.  By 1987, all coastal SEZs were allowing foreign investors to lease land from governments.

To further establish a market-based land allocation mechanism, the Shenzhen government decided to set up an “open bidding” system for land allocation, and held China’s first state land auction on December 1, 1987. By 2002, this practice was adopted nationwide. In 2007, this new practice was extended to all industrial land as well. In parallel, Shenzhen SEZ also led China in adopting the Western concept and practice of land use planning and zoning system to meet market needs (Shen and Xu 2011). These reforms yielded invaluable returns for the entire nation’s economic transition and helped to establish a modern land market which has transformed the whole of China’s urban landscape.

**_Investment incentives and institutional autonomy._** To encourage firms (especially FDI) to invest in the zones, the SEZs had in place various fiscal and non-fiscal incentives<sup>1</sup> and preferential policies, including streamlined administrative process, sound infrastructure, inexpensive land and facility use, rapid customs clearance, the ability to repatriate profits and capital investments, reduced duties on imports, concessionary tax rates, export tax exemption, flexibility in hiring and firing workers, depreciation allowances, and a limited license to sell into the domestic market, among others (Ge 1999; Enright, Scott, and Chung 2005). Favorable policies were also in place to attract skilled labor, including the

> 1 Some of these incentives were applied to all firms but many are only for FDI. For example, for FDI, the corporate tax rate was especially generous—15 percent as opposed to 30 percent for domestic firms—plus exemption from local income tax. This was streamlined later – 25% for both foreign and domestic firms as mentioned above.

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