Growth Strategy
Three Policy Goals – Reform, Development and Stability
China’s unique conditions
OECD/APEC WORKSHOP
September 19, 2001
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----Non shock therapy approach
----Experimental area
----Interim measures to ensure smooth
transition
----A Chinese way
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September 19, 2001
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First phase(1978-1987): Open door policy to absorb
foreign investment, and reform to decentralize
decision-making power
Second phase(1987-1992): an economic system of
market-mechanism combined with planning, further
decentralization in industry, trade and other sectors
Third phase(1992-now): A market economy with
Chinese characteristics
OECD/APEC WORKSHOP
September 19, 2001
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Foreign investment (in 2000)
----Foreign Investment: 10% of total investment in fixed asset ;
----Import & Export: 49.9%
----Taxation: 17.5%
----More sectors/fields opened to foreign investors
Foreign Trade:
----Right to trade: granted to more companies(State-owned and
non-state owned)
----Tariff reduction: from 35% in 1995 to 15% in 2001
----Administrative approval to be further slashed
OECD/APEC WORKSHOP
September 19, 2001
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Legislation Mechanism Reform
1. Legislation Law—basic principle:
----Procedures for legislation making
----Public participation
----Transparency and democracy
To be continued
OECD/APEC WORKSHOP
September 19, 2001
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Legislation Mechanism Reform
2. WTO rules and regulatory reform: Drafting or
amending legislation procedures according to the
WTO rules
----Ministries of the State Council: to abolish more
than 800, amend 300;
----MOFTEC: to abolish more than 500, amend
120 and draft 26 new of its 1400 laws, regulations,
decrees and rules
OECD/APEC WORKSHOP
September 19, 2001
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Administrative Approval Reform
--Drafting Administrative Approval Law
-- Reducing the existing administrative approvals:
--Ministries of the State Council
--Local government at all level
OECD/APEC WORKSHOP
September 19, 2001
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Follow-up Administrative Review System
Administrative Review Law:(compared with the
Regulations of Administrative Review)
----More cases to be received
---- Case must be accepted and reviewed in a
shorter time
----74,448 review cases came up in 2000,
68,957 accepted and reviewed.
OECD/APEC WORKSHOP
September 19, 2001
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