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New Export Processing Zone Set up
China has recently approved a plan to establish an export-processing zone in Henan province, the most populous provincial region in the country.

Officials from the Henan provincial government said the 2.7-square-kilometer zone will be located in the Zhengzhou Economic and Technological Development Zone and will have about 300 export-oriented processing firms and supporting companies.

It will be the first of its kind in the province that has a population of 92.56 million.

Local economists said the planned zone would help the province absorb overseas investment and develop an export-oriented economy.

Export processing zones are exempt from tariffs in China and goods produced there are free of value-added tax.

(People’s Daily July 31, 2002)

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