Editing Open Door Policy (section)

===In modern China===
{{main|Chinese economic reform}}
In China's modern economic history, the Open Door Policy refers to the new policy announced by [[Deng Xiaoping]] in December 1978 to open the door to foreign businesses that wanted to set up in China.<ref name="bbc">{{cite web |url= http://news.bbc.co.uk/1/shared/spl/hi/asia_pac/02/china_party_congress/china_ruling_party/key_people_events/html/open_door_policy.stm |title= Open Door Policy |publisher=BBC}}</ref><ref>{{cite book |url=https://books.google.com/books?id=-ab47HrgioMC&pg=PA1 |title=The China-Hong Kong Connection: The Key to China's Open Door Policy|author=Yun-Wing Sung | publisher=Cambridge University Press |date=1992|isbn= 978-0-521-38245-8}}</ref> [[Special Economic Zones of the People's Republic of China|Special Economic Zones]] (SEZ) were set up in 1980 in his belief that to modernize China's industry and boost its economy, he needed to welcome foreign direct investment. Chinese economic policy then shifted to encouraging and supporting foreign trade and investment. It was the turning point in China's economic fortune, which started its way on the path to becoming 'The World's Factory'.<ref name="Routledge">{{cite book |url=https://books.google.com/books?id=PN5CDwAAQBAJ&pg=PT30 |title=From World Factory to Global Investor: Multi-perspective Analysis on China's Outward Direct Investment |date=2017 |editor= Xuedong Ding, Chen Meng |isbn=978-1-315-45579-2 |publisher=Routledge}}</ref>

Four SEZs were initially set up in 1980: [[Shenzhen Special Economic Zone|Shenzhen]], [[Zhuhai]] and [[Shantou]] in [[Guangdong]], and [[Xiamen]] in [[Fujian]]. The SEZs were strategically located near [[Hong Kong]], [[Macau]], and [[Taiwan]] but with a favorable tax regime and low wages to attract capital and business from these Chinese communities.<ref name="bbc"/><ref>{{cite book |url=https://books.google.com/books?id=DhIcTvNRt-MC&pg=PA85 |title=Regional Economic Development in China |year=2009 |editor= Swee-Hock Saw, John Wong |publisher=Institute of Southeast Asian Studies |pages=85–86 |isbn=978-981-230-941-9 }}</ref> Shenzhen was the first to be established and showed the most rapid growth, averaging a very high growth rate of 40% per annum between 1981 and 1993, compared to the average GDP growth of 9.8% for the country as a whole.<ref>{{cite book |chapter-url=https://books.google.com/books?id=WavczgJafA0C&pg=PA67 |title=Special Economic Zones and the Economic Transition in China|author= Wei Ge |chapter=Chapter 4: The Performance of Special Economic Zones |pages=67–108 |publisher=World Scientific Publishing Co Pte Ltd |year= 1999 |isbn=978-981-02-3790-5}}</ref> Other SEZs were set up in other parts of China.

In 1978, [[China]] was ranked 32nd in the world in export volume, but by 1989, it had doubled its world trade and became the 13th exporter. Between 1978 and 1990, the average annual rate of trade expansion was above 15 percent,<ref>{{cite web|url=https://www.researchgate.net/publication/5033597|last=Wei|first=Shang-Jin|title=The Open Door Policy and China's Rapid Growth: Evidence from City-Level Data|date=February 1993|access-date=30 October 2018}}</ref> and a high rate of growth continued for the next decade. In 1978, its exports in the world market share was negligible and in 1998, it still had less than 2%, but by 2010, it had a world market share of 10.4% according to the [[World Trade Organization]] (WTO), with merchandise export sales of more than $1.5 trillion, the highest in the world.<ref>{{cite web |title=China's Fare Share? The Growth of Chinese Exports in World Trade|url=http://www.ewi-ssl.pitt.edu/econ/files/faculty/wp/120316_wp_HustedSteven_Chinaexports_March%2015%202012%20final_shu.pdf |author=Steven Husted and Shuichiro Nishioka}}</ref>  In 2013, China overtook the United States and became the world's biggest trading nation in goods, with a total for imports and exports valued at US$4.16 trillion for the year.<ref>{{cite news |url=https://www.telegraph.co.uk/finance/economics/10565166/China-overtakes-US-to-become-worlds-biggest-goods-trading-nation.html  |title=China overtakes US to become world's biggest goods trading nation |work=The Telegraph |author= Katherine Rushton|date=10 Jan 2014}}</ref>

On 21 July 2020, [[Chinese Communist Party]] [[General Secretary of the Chinese Communist Party|general secretary]] [[Xi Jinping]] made a speech to a group of public and private business leaders at the entrepreneur forum in Beijing. Xi emphasized that "We must gradually form a new development pattern with the domestic internal circulation as the main body and the domestic and international dual circulations mutually promoting each other."<ref>{{cite web |last1= Xinhua Net |title= (Authorized to publish) Xi Jinping's Speech at the Entrepreneur Forum |url=http://www.xinhuanet.com/politics/leaders/2020-07/21/c_1126267575.htm|website=Xinhua Net |access-date=10 August 2020 |archive-url=https://web.archive.org/web/20200811045300/http://www.xinhuanet.com/politics/leaders/2020-07/21/c_1126267575.htm | archive-date=11 August 2020}}</ref>
Since then "internal circulation" became a hot word in China.