Legislators are planning laws on finance, taxation, budgeting
and investment in a bid to better regulate the country's economic
development and refine its macroeconomic controls.
"The rapid pace of economic development in the country demands
more specified laws and regulations," said An Jian, deputy director
of the Legal Affairs Commission of the National People's Congress
(NPC), the top legislature.
He made these comments at the International Symposium on China's
Rule of Law yesterday in Beijing.
"As we continue to improve the country's social legislation, we
still place economic legislation at the top of our agenda to
provide a solid legal foundation for a healthy economy," he
said.
In a report detailing the legislative plan for the next 10
years, the commission said China would gradually enact laws
governing foreign exchange, futures trading and financing and
leasing.
Better financial legislation would help diversify the financial
products available, optimize the distribution of financial
resources, strengthen financial supervision and prevent financial
risks, the report said.
A securities law is also on the waiting list. The commission
said a law is needed to maintain a balance between promoting the
development of the securities market and preventing risk.
Protecting investors' rights and strengthening penalties for market
frauds are other issues to be addressed.
In addition, the commission said it is necessary to enact a
basic law on tax collection. Legislation should also be drawn up to
address as-yet unregulated taxes, such as value-added and
consumption taxes.
"A simplified taxation system, bigger tax base, lower tax rates
and stricter tax collections" are the basic principles for any form
of tax legislation.
The report also mentioned investment laws, saying it was
necessary to have either individual laws or stipulations added to
existing ones to define investors' rights and obligations, to
reform the investment management system and to check disorderly
competition.
The revision of the Budget Law, the draft of the fiscal transfer
payment law, the law on State-owned assets, the anti-monopoly law
and the laws on telecommunications, post and railways should also
be finished in the next 10 years, according to the commission.
The country entered a period of unprecedented legislative action
on the economy starting in 1992, when the authorities officially
decided to establish a socialist market economy.
Official figures show that from 1992 to 2003, the NPC and its
Standing Committee approved 109 laws and legal decisions relating
to economic issues, accounting for 45 percent of the 242 laws and
decisions passed during the period.
"It (the legislative pace) was very fast, and will remain fast,"
said Bian Yaowu, former deputy director of the NPC's Legal Affairs
Commission in charge of economic legislation.
He added that drafting legislation was not a one-off solution,
but part of a process requiring continuous adaptation as the
country implemented more features of a market economy.
Arthur Mitchell, general counsel of the Asian Development Bank,
which organized the two-day symposium, said developing the legal
system was a critical part of efforts to reform the market and
drive economic growth.
"But faced with such a big and rapidly growing economy, the
further development of economic laws and the regulatory system is
still necessary," he said.
(China Daily May 15, 2007)