Examining the Legislation in China's Special Economic Zones: Framework, Practice and Prospects

Abstract

The delegation of flexible legislative powers to China's five Special Economic Zones (SEZs) (经济特区) in the reform era was attributed to both the endorsement of the Chinese central government and the strong commitment of SEZ officials. SEZs serve as a petri dish where market-oriented legislation was introduced and practiced, and later spread to elsewhere in the country. They ultimately gathered the momentum for turning the tide of contestation in the domains of ideology, economy and policy in favor of a market system, and created conditions favorable for the market-oriented legislation at national level. A more significant impact of SEZ legislation is that it serves as one of the main sources of reference for national legislation on the market economy. The SEZ legislation provides a series of rules on the market economy that are later written into national laws and regulations. Consistent with the increase of national legislation in number, SEZ legislation tends to lose its significance. Nevertheless, after three decade’s legislative practice, SEZ officials have created a unique reformist identity that is crucial for introducing legislative reforms in other domains critical to China’s long-term stability and development.