Since the end of 1980s, China has actively executed her reforming policy, especially in economic reform to attract foreign capital enrolling in. This study accomplished the fieldwork two times during 1999 and 2000 and got the first-hand data from Suzhou region to highlight the economic policies of local governments, such as the outward-looking economic strategies and the development of economic development zones. Some interesting and important findings from the research are: (1) After the central government decided to release the economic interests in the early of 1980s, the economic and financial autonomy of local government in China was beginning during this time. They have played an important role in local economic development, even in promotion the “ownership localization” and “political right businesslike” such as an alliance model of politics and economy. (2) To local governments including Suzhou, Kunshan and Wujiang cities, the purpose of opening the economic development zones is to learn the new high technology and improve the economic upgrade. Therefore, they utilized the advantages of investment conditions of these districts to attract the foreign capital. At the same time, they gradually abandoned the famous development policy, so called ‘Southern Jiangsu Model,’ in which the collectively ownership local enterprises had the lion’s share and played significant role. (3) And the Suzhou governments have many special offers in these districts like the “enterprise zone” in England, such as the preferential tax policy, new labor management regulation, land utilization, infrastructure, and so on. However, it is only a bipartite relationship of local government and foreign capital, but not any local capital involves in these zones. It is unlike Peter Evans described the “triple alliance” relations. Hence it is disadvantageous to the local industrial development. Besides, this study had discovered two features in these economic development zones: one is an aggregative phenomenon could be observed. For example, there are many Taiwanese enterprises concentrate in Wujiang and Kunshan Economic Development Zones. The other one is the outward-looking economics in Suzhou more like Taiwan Export Processing Zone model than Hsinchu Science-based Industrial Park model. The latter is a real tripartite cooperation model of government, business and academia.