a duty-free enclave that is considered to be foreign territory for purposes of trade operations, duties and tariffs

small coastal areas established beginning in 1979 with Shenzhen, to promote economic development and the introduction of advanced technology through foreign investment. Special preferential terms and facilities are offered to outside investors in taxation, land-use fees, and entry and exit control for joint ventures, cooperative ventures, and enterprises with sole foreign investment. Special economic zones have greater decision-making power in economic activities than provincial-level units.

A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. Usually the goal is an increase in foreign investment. One of the earliest and the most famous Special Economic Zones were founded by the government of the People's Republic of China under Deng Xiaoping in the early 1980s.