China’s meteoric economic rise over the last three decades has made the unprecedented “growth miracle” in human history.Since the open-door and reform policies in 1978，China’s GDP has been growing at an average rate of over 9%，with its global share increasing from 1% in 1980 to almost 6.5% in 2008（chart 1）；and the per capita GDP increased from ＄193 to ＄3，263（current US＄，chart 2）.Total exports have been growing at an average rate of 13%（21.5% from 1998-2007），with its global share increasing from 1.7% in 1980 to 9.5% in 1980（chart 3）.In 2007，China’s incremental growth in real GDP actually exceeded its entire real GDP in 1979.In 2010，China is set to outpace Japan to become the world’s second largest economy，and has become an important growth engine of global economy and a leader in international trade and investment.Rapid growth in the past decades has helped to lift over 400 million people out of poverty.These are truly impressive results.

Diagram 1 China’s GDP Growth （1980-2008）

Diagram 2 China’s GDP Per Capita（1980-2008）

Diagram 3 China’s Exports of Goods and Services（1980-2008）

While China’s rapid rise has become a hot topic for development debate among policy makers，business people and scholars all over the world，it is no doubt that the numerous Special Economic Zones（SEZs） and industrial clusters mushroomed after the country’s reforms are two important engines that have been driving China’s growth.This chapter is intended to briefly summarize the development experiences of China’s SEZs and industrial clusters based on some case studies，interviews，field visits，and extensive reviews of existing literatures，in an attempt to benefit the developing countries and the global development community in general.