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.