Abstract

Special Economic Zones (SEZs) are considered the backbone of rapid economic development in China, the epicenter of reform, and the testing ground for the introduction of new business models and activities for long-term learning and value ladder up gradation. In fact, the Chinese SEZs are not only “windows” to promote exchange between China and the rest of the world but also testing laboratories to experiment with economic, social, and political reform. The objective of this research is to study how the SEZ acts as a change agent for sustainable economic development by serving as a role model of a green economy incubator that provides inspiration to other economic agents of the country. A focus group was organized with executives from the SEZs in this effect. We explore how companies operating in these SEZs perceive their role in the development and promotion of a green economy in China. Based on the results of a focus group discussion with 26 Chinese managers from SEZs, as well as secondary data from reliable sources, this research shows that, given the importance of these SEZs in the industrial production of the country, all these zones need to face up to major ecological challenges. However, China would need to not only introduce more regulations on the development of a green economy based on these SEZs but also promote a true green culture via education and outreach programs to create an overall understanding of environmental concerns for short-, mid-, and long-term economic growth and the public good. The contributions of this research are twofold: first, it reveals the characteristics of Chinese SEZs; second, it identifies the major challenges and key factors for the development of a green economy in China. Future research should include broad based samples and rigorous analysis with mixed method approach for generalizable results.

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