At the initial stage, most of the national economic and technological development zones (NETDZ) were founded in underdeveloped areas, far from the city and with poor industrial development environment. The Chinese people didn't know the newly appeared development zone at all, which was defined as an export-oriented industrial zone or an economic zone, rather than an administrative district. The real reason for the definition was, at that time when China's economy and administrative system didn't meet the requirement of China to implement opening-up policy, China had to carry out reform and promote the progress of foreign economic cooperation through "establishing imitated international investment environment". Therefore, a special "quasi-government" administrative mode, administration committee system, was established. This new system includes the following features:

1. Specially authorized by local people's congress or government, the administration committee represents the city's government to manage the development zone. Formally, the administration committee is a branch of the local government, acting its function of economic administration. Accordingly, the local Party Committee appoints work committee to the development zone. No branches from NPC and CPPCC were established, which is different from the general district administrative system.

2. Highly streamlined organizations are set up within the administration committee, and relevant functional departments work side by side. The departments do not accord with those in the government. Cadres of the administration committee are appointed rather than elected, other staff members are employed.

3. The first-level financial bureau is set up in NETDZ, which is able to draw up fiscal budget and conduct regular project expenditure. The public security bureau, procuratorate, and law court are established in the zone. Specified administrative regulations are laid down for the zone so as to effectively manage the zone in conformity with laws and regulations.

It is the highly-authorized and development-oriented managerial system, and the formation of the reform experimental zones with relatively independent management system that has ensured a series of concrete reforms to be carried out.

(For more biz stories, please visit Industry Updates)