By OECD Organisation for Economic Co-operation and Develop
ISBN-10: 926401182X
ISBN-13: 9789264011823
ISBN-10: 9264011838
ISBN-13: 9789264011830
OECD's first Economic Survey of China records the encouraging quantity to which structural reforms in China have caused a sturdy strategy of monetary improvement. while, the record issues out the place extra reform is needed. The significant topics of the report include bettering the framework for the personal area, labour marketplace reforms, growing older, and reform of the general public quarter and the economic system.
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Extra info for OECD Economic Surveys: China 2005
Sample text
The economy was decisively opened to world trade both through the encouragement of foreign investment, and the reduction of effective tariffs on imported inputs as well as through the abolition of multiple exchange rates and the introduction of convertibility for current account transactions. Domestically, a framework for private enterprises was created with a new company law. The state sector of the economy was also modernised through the introduction of public corporations and the listing of a number of these companies on a newly created stock market.
The first is that Chinese labour is becoming more expensive, the second is that, following entry into the WTO, the government is committed to equalising the corporate tax rates on domestic and foreign controlled companies and so ending the discrimination against domestic entrepreneurs, favourably impacting on the allocation of resources. So far increases in labour productivity have meant that significantly higher wages have not resulted in a marked increase in unit labour costs. The competitiveness of China could be worsened if the unification of the corporate tax rate is not handled carefully.
Looking forward, the flow of FDI will be affected by two factors. The first is that Chinese labour is becoming more expensive, the second is that, following entry into the WTO, the government is committed to equalising the corporate tax rates on domestic and foreign controlled companies and so ending the discrimination against domestic entrepreneurs, favourably impacting on the allocation of resources. So far increases in labour productivity have meant that significantly higher wages have not resulted in a marked increase in unit labour costs.
OECD Economic Surveys: China 2005 by OECD Organisation for Economic Co-operation and Develop
by William
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