Overview

This work analyzes the domestic policy challenges facing China in the context of trade and investment liberalization. After more than two decades of progress in market reforms and trade and investment liberalization, China's entry into the World Trade Organization marks a new era for its integration into the world economy. Drawing on the experiences of OECD members since the 1950s, and the WTO's extensive work with nonmember economies around the world, this study provides a comprehensive view of the interrelated domestic policy issues at stake and offers specific recommendations as to actions to be taken. Topics covered include: agricultural prospects and policies; rural industries; implications for the rural economy; overview of industry prospects; priorities for industry reorganization and restructuring; technology challenges for China's industries; challenges to the banking industry; the development of the insurance industry; prospects for the distribution sector; foreign direct investment: prospects and policies; an OECD perspective on regulatory reform in China; the role of competition; law and policy; establishing effective governance for China's enterprises; and developing the financial system and financial regulatory policies. It also looks at priorities for development of China's capital markets; labour market and social benefit policies; environmental priorities for China's sustainable development; the current tax system and priorities for reform; public sector budget management issues; issues concerning central-local government fiscal relations; China's regional development - prospects and policies; macroeconomic policy priorities; summary of China's commitments under the WTO; and a summary of studies of the impact of the WTO on China. This publication is part of the OECD's ongoing cooperation with nonmember economies around the world.

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