Special economic area of Zhuhai, China, to be extended as of Friday

30 September 2010

Macau, China, 30 Sept – The special economic area of Zhuhai, next to Macau, will see its area extended as of Friday with the inclusion of the entire urban area of the municipality, under the terms of a decision by the Chinese State Council announced recently.

The decision, in practice, means that the total area of the special economic area will increase from 227.5 square kilometres to 1,687.8 square kilometres, although companies classified as being innovative that set themselves up in the extension area will not have the right to the same tax benefits as those that are provided in the current area.

The cities of Shenzhen, next to Hong Kong, and Zhuhai are this month celebrating 30 years since the creation, by then President Deng Xiaoping, of the special economic areas of China, which served as a laboratory for the introduction of economic reforms, giving rise to the “one country, two systems,” slogan.

The special economic area of Zhuhai covered an area of 6.8 square kilometres when it was set up on 26 August, 1980, and was expanded to 15 square kilometres in June of 1986, with all of the services of the municipal government excluded from the area.

In 1988 the area was again expanded to 121 square kilometres and the following expansion took place in 2009 in order to include Hengqin island.

According to the Macau press, the Zhuhai municipal government hopes that the new expansion will bring an end to the confusion resulting from the different regulations applied inside and outside the special area, given that the whole city will now be part of it.

The Macau government is set to build a new campus for the University of Macau on Hengqin Island and also announced that the island will house an industrial park linked to Chinese medicine as a result of a joint venture with Guangdong province. (macauhub)

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