The decentralized, experimental nature of early economic reform is clear in Chinese establishment of Special Economic Zones – export-oriented enclaves that were allowed to detach themselves partially from the central administrative apparatus and to operate with considerable autonomy. Guangdong, which was allowed to set up its own foreign trade corporations, was a pioneer. On the eve of reform, Guangdong seemed to have few advantages. It had few natural resources, a low ratio of arable land per capita, and high rates of rural unemployment. But its coastal location and proximity to Hong Kong presented the opportunity to.
