The Chinese government is drafting a law to promote employment and has agreed
to further expand Renminbi (RMB) business in Hong Kong.
The government discussed and passed in principle the draft of a law on the
promotion of employment at an executive meeting of the State Council presided
over by Premier Wen Jiabao on Wednesday.
The meeting stressed that adequate employment is a key index of social and
economic development. The Communist Party of China and the central government
have paid close attention to the issue and implemented active employment
policies, making real progress in finding jobs for the swelling numbers of
job-seekers in both urban and rural areas.
However, given China's huge population, employment pressures will not
disappear in the short term. It is necessary to formulate a special law to
institutionalize principles and policies for promoting employment.
The draft contains clear provisions on various aspects of employment
including principles, mechanisms, government responsibility, policy support, the
labor market, vocational education and training, employment service and
assistance, supervision and inspection, and legal responsibility.
The meeting decided that after further revision, the draft will be submitted
to the Standing Committee of the National People's Congress for discussion.
Also at the meeting the State Council agreed to extend clearing and
settlement arrangements for RMB business carried out by local banks in Hong Kong
to cover funds raised in Hong Kong by mainland financial institutions through
the issuance of RMB-denominated financial bonds.