National economic and technological development zones have served as an important platform during China's reform and opening up to attract foreign capital.

By 1988, the State Council had approved 14 such zones in 12 coastal cities. From 1992 to 1993, another 18 economic and technological zones were established in areas along the Yangtze River and hinterland areas. Today the number has gone up to 219. In 2015, their GDP reached 7.76 trillion yuan ($1.12 trillion), accounting for 11.5 percent of the country's total.

These zones were designed to attract foreign capital and technology to establish joint ventures, foreign companies and research institutes. The Central Government aims to improve the management of state-owned enterprises through the industrial modernization of such zones.

Approval processes for foreign-funded projects in the zones are relaxed and they enjoy favorable tax policies. The zones start to think about attracting foreign investment by improving their business environment once the favorable policy period ended.

After over 30 years' development, they have now entered a critical period of strategic transformation amid rising land and labor costs. They need to reform their management system, including the land transfer system and approval procedures.

As practitioners and promoters of reform and opening up, the development of China's market economy, urbanization and industrialization, the zones have an important role to play in China's future development.

(This is an edited excerpt of an article published in China Newsweek on October 15)