Organization for Economic Co-operation and Development's China: Progress & Reform Challenges (OECD Investment and PDF

By Organization for Economic Co-operation and Development

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Extra info for China: Progress & Reform Challenges (OECD Investment and Policy Reviews)

Sample text

Initial success: progress of trade and FDI in 1980s The “open door” policy was highly successful. 8 per cent in 1990. The changing composition of exports and imports demonstrated an expansion both of the capacity to manufacture a greater quantity and variety of items and also an expansion of consumer choice in the domestic market. In 1979, trade consisted largely of bulk commodities and relatively simple products such as textiles and bicycles. 7 billion (Annex II, Table 2). The bulk of these flows came from Hong Kong (China), sourced either in the territory itself or in the global Chinese diaspora – and some had also started to come from China itself (so-called “round-tripping”).

Limited information is also available on investments by Chinese entities abroad. MOFCOM does not compile FDI position (stock) data; cumulative flows are used as a proxy. While the statistics on FDI flows provide indicators relating to the present economic climate, stock figures can be used as structural indicators designating the interdependence of national economies. Flows describe the current attractiveness of countries and sectors for new investment as well as withdrawal of investments. Stocks, on the other hand, measure the share of foreign ownership in the national enterprises and of national ownership in foreign enterprises.

Closing down wholesale markets in which counterfeit goods are predominant. Corruption China has made some progress in tackling corruption and has also made a positive contribution to the ADB-OECD Anti-Corruption Initiative for AsiaPacific. Further progress will be greatly enhanced by implementing the recommendations of this report regarding increased transparency and rule of law, in particular reducing regulatory ambiguity and the scope of official discretion, and raising the pay of state officials.

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