China's Special Economic Zones and Industrial Clusters: The Engines for Growth

The numerous special economic zones (SEZs) and industrial clusters that emerged after the country's reforms are without doubt two important engines of China's remarkable development. However, after 30 years of development, they also face many significant challenges in moving forward. This paper summarizes the development experiences of China's SEZs and industrial clusters (their formation, success factors, challenges, and possible areas or measures for policy intervention), based on case studies, interviews, field visits, and extensive reviews of the existing literature in an attempt to benefit other developing countries.