Opening to the Outside World } 375
displayed in Figure 13-2. For the years 1978–1998, the first twenty years of
China’s opening, Guangdong’s average annual share of China’s total national
utilization of foreign capital was 11.5 percent, more than double Shanghai’s
4.1 percent, let alone Jiangsu’s 3 percent or Zhejiang’s 1.3 percent. (Jiangsu and
Zhejiang are other coastal provinces that played leading roles in China’s early
openi ng.)
By 1984, the rapid economic development of Shenzhen had inspired cities
up and down the coast to demand comparable autonomy to engage global mar-
kets. A two-week vacation by Deng Xiaoping to the southern SEZs in January
1984 helped disseminate knowledge about what was happening in Shenzhen.
In May, an additional fourteen coastal cities were declared open, with fairly
wide autonomy to incentivize and welcome foreign investment. The new
zones thus created were named Economic and Technological Development
Zones, the addition of “technology” being a response to Chen Yun’s criticism
that the SEZ’s were attracting mainly low-tech investment. Regulations for the
new open cities stated that the purpose was especially to encourage high-tech
investments.^46 But these regulations were interpreted very broadly, and even
low-tech assembly investments were welcomed. Gradually, the provinces
forming China’s east coast began engaging global markets—and forming a
powerful constituency for continued opening and reform.
Year Guangdong Jiangsu Shanghai Zhejiang
1978–1982 4.3% 0.4% 0.2% N.A.
1983 11.9% 0.0% 0.5% 1.0%
1984 13.4% 0.9% 0.9% 1.0%
1985 9.3% 0.9% 1.2% 0.7%
1986 12.2% 1.6% 2.2% 0.4%
1987 10.0% 1.8% 5.8% 0.9%
1988 15.2% 1.7% 8.3% 1.2%
1989 20.9% 3.3% 10.4% 2.3%
1990 16.7% 3.6% 6.5% 1.3%
1991 13.2% 2.4% 4.4% 0.9%
1992 7.0% 2.5% 3.2% 0.6%
1993 7.8% 2.7% 2.6% 1.0%
1994 12.2% 4.8% 4.3% 1.5%
1995 11.7% 5.1% 5.1% 1.5%
1996 17.0% 6.7% 9.2% 2.9%
1997 23.3% 11.1% 10.4% 5.0%
1998 23.9% 11.0% 7.6% 3.8%FIGU R E 13-2 Guangdong’s Leading Role in Utilization of Foreign Capital.
(Percentages of all FDI and foreign loans by 4 leading provinces)
Source: Xin zhongguo wushi nian tong ji ziliao huibian (Comprehensive statistical data on
50 years of new China), Beijing: China Statistics Press, 1999, pp. 63, 360, 385, 411, 610.