What are export-processing zones in China?

Export-Processing Zones are essentially smaller and simplified Free Trade Zones – generally located within a development zone for the purpose of export processing. The keys advantages for Export-Processing Zones are that companies can be exempted from import and export duties, refunded their value-added taxes and have more convenient foreign exchange and customs declaration procedures. Also, there are no quota limitations for business operating therein. These zones, however, are subject to heavy regulations in terms of manufacturing of goods for sale in local markets.