A senior official from China's top planning house vowed yesterday
to smash regional protectionism and to further build an integrated
market.
Breaking down local protectionism and setting up a unified, fair
and orderly national market are urgent and important tasks facing
the government, said Wang Yang, vice-minister of the State
Development Planning Commission.
Tackling these changes is even more important now that China has
become a member of the World Trade
Organization and its economic restructuring has entered the
stage of system innovation, he said.
Wang said the government will push integration of the market from
three approaches -- law enforcement, system improvement and
economic development.
Wang made the remarks on the 2002 China Development
Forum.
He
further said that a number of new laws and rules in line with the
market economy will be enacted, while those that conflict with
market rules will be cancelled or modified.
"A
comprehensive legal system is the starting point for the breaking
up of local barriers," he pointed out.
Anti-trust laws and rules to control individual and enterprise
credit are being drafted, and the laws against unfair competition
and the commercial bank law need modification.
In
addition to legislation, the judicial system should be improved to
enhance co-ordination in law enforcement, he said.
The strength of law enforcement in local jurisdictions is expected
to be increased to cut down on local protectionism, which severely
disrupts the market system.
Wang said the regional tax collection system also needs further
improvement during the reform of the national fiscal and tax
systems.
The division of state and local tax collection often results in
local governments protecting local enterprises.
The restructuring of monopolistic industries such as power, the
railways, civil aviation, telecom and public services will be
speeded up, in a bid to form a unified, open and transparent
market, he said.
Systems which impose obstacles on the rational flow of the labor
force will be eradicated, Wang said.
"The household registration system, which restricts movement of
people, will be further changed to build a unified national labor
market and social security system," he said.
Administrative examination and approval procedures will be
streamlined, with the aim of slashing local government's power to
provide protectionism to local firms, Wang said.
Wang also noted that rapid economic development is key to
eliminating the country's local protectionism.
"Strong economic power provides the central government with a
material foundation to co-ordinate fiscal support and shorten
regional gaps," he said.
Wang considers local protectionism a key factor weakening the
international competitiveness of Chinese enterprises, as it
protects the backward, blocks the natural allocation of resources,
increases trade costs and hinders the formation of large-scale
economies.
(China
Daily March 26, 2002)