Export processing zone (出口加工区) refers to those special industrial zones designated or opened up by the state for manufacturing, processing, and assembling export commodities. Usually, various local tax reduction and exemption policies are introduced in these areas. During the 60s, such a zone was already established in Kaohsiung, Taiwan. It was after the Chinese economic reform that mainland China started to establish EPZ in some coastal cities. In April 2000, the first 15 pilot zones were announced by the government. Now the approximate number of the approved EPZ has reached 40, with 70% of which being set in the coastal regions and 30% in Midwest China.