Question

Special Economic Zones (SEZs) were established in China to attract:

• A. Rural workers
• B. Foreign Direct Investment (FDI)
• C. Agricultural technology
• D. Political support

Hint:

Inspired by China's success, India also enacted the SEZ Act in 2005 to attract investment and promote exports. Shenzhen is the most famous example of a Chinese SEZ that transformed from a fishing village to a major global city.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
SEZs are designated areas within a country that have different economic laws than the rest of the country to promote growth.
Step 2: Detailed Explanation:
China introduced SEZs in the late 1970s and early 1980s as part of its "Open Door Policy".
These zones offered tax incentives, better infrastructure, and relaxed labor laws to foreign companies.
The main goal was to attract Foreign Direct Investment (FDI), gain access to foreign technology, and boost exports.
Cities like Shenzhen became global manufacturing hubs because of this strategy.
Step 3: Final Answer:
SEZs in China were primarily established to attract Foreign Direct Investment (FDI).