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Local officials gave their final approval to three new export processing zones in Shanghai Sunday, allowing them to start searching for investment.

Officials from various government departments surveyed the zones Sunday before giving them the final go-ahead to open for business.

The officials also approved the expansion of the Songjiang Export Processing Zone, one of the country's most successful zones.

The new Qingpu, Caohe-jing and Minhang export processing zones are expected to boost the city's exports of processed goods.

The city is now home to five such zones, which are expected to export goods worth US$10 billion next year, according to Shanghai Vice Mayor Zhou Yupeng.

"The new zones will help Shanghai seize the opportunity of global industry transfer and attract more multinationals to manufacture and place export orders here," said Gong Zheng, deputy director of China's General Administration of Customs.

China started to establish export processing zones in 1999 as a way to attract overseas investment and boost exports.

Export-oriented companies located in the zones can enjoy tax breaks on imported production and office equipment, preferential export-tax rebates and foreign currency control and faster Customs clearance.

Shanghai's Songjiang Export Processing Zone was approved by the State Council in April 2000 and was put into full operation at the beginning of last year.

The processing trade, which involves importing raw materials to assemble into final products that are then exported, currently accounts for 52 percent of the city's total exports. About 90 percent of exported electronic and machinery goods are dealt in this way.

China has approved 38 export processing zones with 29 already open for business.

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