What was the Chinese government's short-term objective in creating Special Economic Zones (SEZs)?

• A. To eliminate all trade barriers across the entire country
• B. To attract foreign investment and boost economic growth in targeted regions
• C. To achieve full employment nationwide
• D. To immediately privatize all state-owned enterprises

Answer: (B)

Verified step by step guidance

1. Understand the concept of Special Economic Zones (SEZs): SEZs are designated areas within a country that have different economic regulations than the rest of the country, often to encourage foreign investment and economic activity.
2. Identify the short-term objective of the Chinese government when creating SEZs: The primary goal was to attract foreign direct investment (FDI) by offering favorable policies such as tax incentives, relaxed regulations, and improved infrastructure in specific regions.
3. Recognize that SEZs were not intended to eliminate all trade barriers nationwide, but rather to create pilot areas with more open economic policies to stimulate growth.
4. Note that SEZs were not aimed at immediate full employment or immediate privatization of all state-owned enterprises, but rather at boosting economic growth and modernization in targeted regions.
5. Conclude that the short-term objective was to attract foreign investment and boost economic growth in these targeted regions, serving as experimental zones for economic reform.