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officials explored the possibility of setting up in Bao'an county, Guangdong province, across the border from Hong Kong, an export processing zone—a place where materials could be brought from abroad to be manufactured by Chinese laborers and then exported without any tariffs or other restrictions. Within a few months, the State Council formally approved the establishment of such an area, which later would become the Shenzhen Special Economic Zone (SEZ).
Deng Xiaoping and the Transformation of China
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