1. OECD/APEC WORKSHOP September 19, 20011 Growth Strategy China’s unique conditions Three Policy Goals – Reform, Development and Stability

2. OECD/APEC WORKSHOP September 19, 20012 ----Non shock therapy approach ----Experimental area ----Interim measures to ensure smooth transition ----A Chinese way

3. OECD/APEC WORKSHOP September 19, 20013 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

4. OECD/APEC WORKSHOP September 19, 20014 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

5. OECD/APEC WORKSHOP September 19, 20015 Legislation Mechanism Reform 1. Legislation Law—basic principle: ----Procedures for legislation making ----Public participation ----Transparency and democracy To be continued

6. OECD/APEC WORKSHOP September 19, 20016 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

7. OECD/APEC WORKSHOP September 19, 20017 Administrative Approval Reform --Drafting Administrative Approval Law -- Reducing the existing administrative approvals: --Ministries of the State Council --Local government at all level

8. OECD/APEC WORKSHOP September 19, 20018 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.