'Development zone' refers to a designated area—often established by local or national government—to attract investment, foster industrial growth, and promote economic reform. These zones typically offer tax incentives, streamlined administrative procedures, and improved infrastructure. The term combines three characters: 开 (kāi, 'to open' or 'to develop'), 发 (fā, short for 'fāzhǎn', meaning 'development' or 'to develop'), and 区 (qū, 'zone' or 'district'). Together, they literally mean 'opening-development zone,' reflecting the idea of opening up new areas for economic activity.

Development zones are common across China and include types such as Economic and Technological Development Zones (ETDZ), High-Tech Industrial Development Zones, and Export Processing Zones. They often house factories, R&D centers, logistics hubs, and corporate headquarters. While originally concentrated in coastal cities like Shenzhen and Shanghai, many inland provinces have since established their own development zones to stimulate regional growth.