Everything Everywhere Daily · Friday, August 14, 2026
Deng Xiaoping's reformist agenda included embracing foreign investment by establishing Special Economic Zones (SEZs) starting in 1980, offering incentives like tax breaks and duty-free imports. This program was highly successful, leading to the rapid expansion of SEZs and attracting Western companies like Jeep and KFC.
“Perhaps the biggest change was the shedding of centuries of isolation and the embrace of foreign investment through the establishment of special economic zones or SEZs.”
“Established in 1980, China's SEZs offered tax incentives, limited regulation, and duty-free imports of raw materials to attract investment.”
“The program was incredibly successful, as Western companies flocked to China to seize these opportunities in the four special economic zones.”