Hong Kong is technically a Chinese Special Economic Zone, under the Chinese "One Country/Two Systems" regime. China opened a dozen more such places, more or less, such as Zhejiang, after recognizing the success of Hong Kong. A better name for what China has is Free Trade Zones, since the Chinese Government has such a laissez faire, hands-off approach to Hong Kong.
Almost all countries have "free trade" zones of some sort, a tribute to the fact that their economic systems are somewhat lacking.
The USA has foreign trade zones, FTZs. which are pretty useless since the rules and regs rather overwhelm any benefits. Essentially, you can bring parts in from around the world, assemble them into something else, and then ship them into the USA or back out to 3rd countries. The classic example is radio parts have a higher duty than radios, so people would import radio parts into an FTZ, assemble radios, and then import radio-parts-as-radios in the USA at the lower duty. This scheme lasted about 15 minutes.
What makes FTZs useless in the USA is people may not live in them (except government workers) and the heavy regulation. if the USA could have an FTZ of say about 500 square miles, with self-government, and freedom to live within the zone, then there might be some value.
§ 81o. Residents of zone
Some residents of Louisiana have the right idea, turning the entire state into a free trade zone.
Feel free to forward this by email to three of your friends.
Almost all countries have "free trade" zones of some sort, a tribute to the fact that their economic systems are somewhat lacking.
The USA has foreign trade zones, FTZs. which are pretty useless since the rules and regs rather overwhelm any benefits. Essentially, you can bring parts in from around the world, assemble them into something else, and then ship them into the USA or back out to 3rd countries. The classic example is radio parts have a higher duty than radios, so people would import radio parts into an FTZ, assemble radios, and then import radio-parts-as-radios in the USA at the lower duty. This scheme lasted about 15 minutes.
What makes FTZs useless in the USA is people may not live in them (except government workers) and the heavy regulation. if the USA could have an FTZ of say about 500 square miles, with self-government, and freedom to live within the zone, then there might be some value.
§ 81o. Residents of zone
- (a) Persons allowed to reside in zoneNo person shall be allowed to reside within the zone except Federal, State, or municipal officers or agents whose resident presence is deemed necessary by the Board.
Some residents of Louisiana have the right idea, turning the entire state into a free trade zone.
Feel free to forward this by email to three of your friends.
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