China’s Export Product Gaige Kaifang. Opening-up and roll-out of Special Economic Zones within the Belt and Road Initiative as part of the relationship between the European Union and China

Abstract

With a rule-based international order less obvious than before, this thesis aims to analyse the likelihood of a stable alliance between the European Union and China. This thesis looks into the development of Special Economic Zones as a driver of Chinese economic growth since its opening-up and reform in 1979. Additionally, it looks at how the relationship between the EU and China has developed during that time. Furthermore, it delves into how the EU was connected with non-Chinese SEZs and draws up similarities and differences with Chinese SEZs. An outline of the recent Belt and Road Initiative will be given, which is relevant as China has placed SEZs within this initiative. Four theoretical concepts will be evaluated to determine the most appropriate theory for encompassing China’s global rise, political and economic clout, its regional outreach and the export of SEZs as part of the BRI. Ultimately, the EU must review and engage with SEZs within the BRI with more scrutiny. The role China plays in the international order will increase due to its expanding position as a regional hegemon which is enabled by the growth potential of the BRI and specifically by using SEZs as an export product, which in turn allows for domestic economic growth to continue, and domestic stability ensures.