China (People's Rep.) - Does the Special Tax Zone Policy Still Matter for Foreign Investment in China? An Analysis Based on the Evolution of China’s Special Tax Zones

This article reviews the evolution of China’s policies on special tax zones since 1980. It discusses the change in the country’s approach upon the introduction of the Enterprise Income Tax Law in 2008. The author argues that China modified its special tax zone policies from that year to comply with World Trade Organization requirements, to conform with international norms and to address increasing regional disparity in its domestic economic growth, without giving up its economic development strategy of attracting foreign investment.