Active with - OECD · 2017. 12. 13. · Three reports form the basis of the Strategy (i) Towards Green Growth, (ii) Towards Green Growth: Monitoring Progress – OECD Indicators,

CHINABetter Policies for Better Lives

Active withThe People’s Republic of

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www.oecd.org/china

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Foreword

China has weathered the global economic and financial crisis very well. Activity is gradually picking up,

following a slowdown over the past two years. Crucially, domestic demand is becoming a powerful driver

of growth, contributing to a much needed rebalancing of the economy. To sustain this progress and achieve

vigorous and inclusive growth over the longer run, renewed reform momentum is required.

Achieving prosperity through economic and social development has been at the heart of our work since the

foundation of the Organisation more than fifty years ago. Together with our Member and partner countries,

we work to build a stronger, cleaner and fairer world economy. By bringing together the expertise of a wide

range of policy communities, our evidence-based analysis and the accumulated experience of our members

and partners, we aim at informing and improving policy making in countries around the world, to the benefit

of all.

The OECD takes pride in its co-operation with China since the mid-1990s. Today, with China’s increasing

importance as a dynamic engine for the world economy, this partnership is more relevant than ever. The

work of the OECD is particularly pertinent in many policy areas which feature as priorities in China’s 12th

Five Year Plan (2011-15), such as structural reform, social inclusion, urbanisation, education, green growth and

energy efficiency.

Angel Gurría

OECD Secretary-General

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As a major economy and a source of innovative policy practices, China is a key partner to the OECD. The participation of Chinese

government officials in OECD Bodies and horizontal projects has increased over the years. China itself benefits from its active

participation in the work of the Organisation, in areas such as taxation and fiscal affairs, transport, science and technology and

innovation policy, to name just a few.

We look forward to continuing to strengthen and deepen our partnership with China. This brochure provides a glimpse of the scope

and depth of our joint work and highlights the great potential that lies ahead for our future cooperation in order to design, promote

and implement “better policies for better lives”.

Angel Gurría

OECD Secretary-General

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Coordinating the oeCd-China Co-operation

The Ministry of Commerce of the People’s Republic of China (MOFCOM) is the coordination agency of the cooperation between the

OECD and the Chinese Government. Over the years, it has played a very important role in developing and guiding this cooperation,

which involves a broad range of ministries and agencies.

In December 2012, the OECD and the

MOFCOM jointly held a Seminar on

China-OECD Cooperation. 28 ministries

and agencies were represented, as well

as several OECD countries and the EU.

During the seminar, representatives of the

MOFCOM, the Ministry of Finance, the State

Administration of Taxation, and the Ministry

of Science and Technology gave positive

feedback about their experience in working

with the OECD.

“China has developed a positive policy dialogue and cooperation with the OECD. Currently China is in a critical stage of the economic and social development, while the OECD is working at the same time to expand relations with non-member economies. It’s hoped that

the dialogue between China and OECD will be further developed.”

Assistant Minister of Commerce Yu Jianhua Keynote speech at the Seminar on China-OECD Co-operation, December 2012

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On the OECD side, tthe Global Relations Secretariat (GRS) assists the Secretariat-General in the strategic planning and prioritisation of our

global relations with non-Members and with other international organisations. The GRS promotes non-Members’ participation in OECD

Committees and adherence to OECD standards and instruments and acts as their general contact point in the Organisation. It also serves

the OECD’s External Relations Committee, which oversees the OECD’s overall Global Relations.

“The relationship between China and the OECD must be a mutually beneficial one. While the OECD, with its best practices and evidence-based policy advice, can certainly contribute to China’s reform toward more sustainable and inclusive development,

China’s input into this Organisation is vital to develop more relevant and effective policies for addressing global challenges. It is high time to broaden and deepen this mutually beneficial partnership. We welcome China’s active participation in global debates in the global policy network.”

Kyung Wook Hur Ambassador of Korea to the OECDChair of the Informal Reflection Group on China

“In order to keep playing a key role in global governance, the OECD must adapt to globalisation. In a time when emerging countries including

China in particular are playing an increasing role on the international scene, we should find ways to work with these new partners. Our cooperation with China thus constitutes a priority in the relations between the Organisation and the rest of the world.”

Pascale Andreani Ambassador of France to the OECDChair of the External Relations Committee

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SUStainaBLe, BaLanCed and inCLUSiVe growth

Maintaining Economic Resilience 7

Supporting Green Growth Initiatives 9

Promoting Regional Development and Urbanisation 11

Increasing Agricultural Productivity and Food Security 13

Promoting Effective Development Co-operation 15

Better Data for Better Analyses and Policies 21

SMooth FUnCtioning oF MarKetSEnhancing Co-operation on International Investment 23

Promoting Trade 25

Regulating Export Credits 27

Promoting Sound Competition 28

Financial Markets and Consumer Protection 30

Improving Financial Education Efficiency 31

pUBLiC and Corporate goVernanCeRegulatory Reform and Administrative Simplification 33

Budgeting and Public Expenditures 34

Improving Tax Transparency and Compliance 35

Fighting Corruption 37

Enhancing Public Sector Integrity 39

Supporting Public Sector Reforms 40

Strengthening Corporate Governance 41

eMpLoYMent and SoCiaL deVeLopMentSeeking Best Practices of Social Policies 43

Adapting to the Demographic Shift 47

Tackling Inequalities and Unemployment 48

Strengthening Skills and Employability 50

Fostering Skills through Education and Training 52

Surfing a New Wave of International Migration 54

Promoting Effective Consumer Policy 56

Table of Contents

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indUStrY and innoVationBuilding a Knowledge-Based Economy 57

Meeting Transport Infrastructure Needs 59

Developing First-Class Shipbuilding and Steel Capacities 61

Enhancing Chemical Safety 63

Boosting Tourism 64

enVironMent and energYTowards a Cleaner and Healthier Environment 65

Combating Climate Change 67

Water 69

Providing Clean and Affordable Energy 70

Developing Safe and Quality Nuclear Power 72

anneXeSParticipation in OECD Bodies and Related Organisations 73

Adherence to OECD Instruments 73

Participation in OECD Asian Networks 74

Feedback? Questions ? [email protected]

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SUStainaBLe, BaLanCed and inCLUSiVe growth

Maintaining eConoMiC reSiLienCe

The OECD examines macroeconomic and structural policies and developments, as well as the interaction between them. It undertakes

regular Economic Surveys of Member and key partner countries, providing an in-depth analysis of key economic challenges in those

countries and proposing reform options that draw on international best practices.

The third survey of China, prepared in co-operation with the State Information Centre of China, was released in March 2013. It focuses

on the challenge of maintaining strong and environmentally sustainable growth, with an in-depth analysis of China’s urbanisation

process. It also examines the need to reform the fiscal policy framework in order to ensure that it helps promote smooth growth

while ensuring governments at all tiers can fund essential public goods. The reforms discussed in this survey are needed for China to

become a high income country by the end of the current decade.

Twice a year, the OECD also releases its Economic Outlook which presents an analysis of recent developments in the global economy and

provides economic projections for 41 economies, including China. A separate publication, Going for Growth, provides a comparative

overview of structural policy developments and reform priorities for maintaining strong and stable growth across different economies.

The 2013 edition of Going for Growth highlights the gains China could reap from further education reform, stronger social protection

of migrants, and easier private sector entry in sectors dominated by state-owned enterprises.

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Î www.oecd.org/eco

March 2013

Consult this publication on line at http://dx.doi.org/10.1787/eco_surveys-chn-2013-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.Visit www.oecd-ilibrary.org for more information.

OECD Economic Surveys

ChinaSPECiaL FEaTURE:

Most recent editions

iSbn 978-92-64-18259-2 00 2013 04 1 P

iSSn 0376-64382013 SUbSCRiPTiOn (18 iSSUES)

iSSn 2072-5035SUbSCRiPTiOn by COUnTRy

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Volume 2013/1March 2013

OECD Economic SurveysChina

MARCH 2013

Australia, December 2012Austria, July 2011Belgium, July 2011 Brazil, October 2011 Canada, June 2012 Chile, January 2012 China, March 2013Colombia, January 2013Czech Republic, November 2011Denmark, January 2012 Estonia, October 2012Euro area, March 2012European Union, March 2012 Finland, February 2012France, March 2011Germany, February 2012Greece, August 2011Hungary, March 2012Iceland, June 2011 India, June 2011 Indonesia, September 2012Ireland, October 2011

Israel, December 2011Italy, May 2011Japan, April 2011Korea, April 2012Luxembourg, December 2012Mexico, May 2011Netherlands, June 2012New Zealand, April 2011Norway, February 2012Poland, March 2012Portugal, July 2012 Russian Federation, December 2011Slovak Republic, December 2012 Slovenia, February 2011South Africa, July 2010Spain, November 2012Sweden, December 2012Switzerland, January 2012Turkey, July 2012 United Kingdom, February 2013United States, June 2012

Consult this publication on line at http://dx.doi.org/10.1787/growth-2013-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Economic Policy Reforms

Going for Growth

Economic Policy Reforms

Going for Growth 2013Going for Growth is the OECD’s annual report highlighting developments in structural policies in OECD countries. It identifies structural reform priorities to boost real income for each OECD country and key emerging economies (Brazil, China, India, Indonesia, Russia and South Africa). The Going for Growth analysis also regularly takes stock of reform implementation in all the countries covered.

This report provides internationally comparable indicators that enable countries to assess their economic performance and structural policies in a wide range of areas.

ContentsChapter 1. Taking stock of reform action and identifying priorities in 2013

Chapter 2. The effect of growth-enhancing structural reforms on other policy objectives

Chapter 3. Country notes

Chapter 4. Structural policy indicators

isbn 978-92-64-16828-2 12 2013 03 1 P

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2013

OECD Economic Surveys: China 2013

ISBN 9789264182592

OECD Economic Outlook

November 2012

ISBN 9789264130623

Economic Policy Reforms 2013

Going for Growth

ISBN 9789264168374

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SUpporting green growth initiatiVeS

The Green Growth Strategy, delivered at the 2011 OECD Ministerial Council Meeting , launched the longer term agenda to support

national and international efforts to achieve green growth. Three reports form the basis of the Strategy (i) Towards Green Growth, (ii)

Towards Green Growth: Monitoring Progress – OECD Indicators, and (iii) Tools for Delivering on Green Growth.

The OECD can provide concrete and targeted advice to Member

and partner countries as they design and implement economic,

environmental, investment and innovation policies. When

tailoring green growth strategies to the context of developing

countries, the work of the OECD can include assessing the

links between green growth and poverty reduction, as well as

identifying the changes needed in sectors such as agriculture

and infrastructure to make these more supportive of sustainable

development.

As cities are home to over half of the global population and

characterise many of today’s environmental challenges, the

OECD has developed peer-reviewed recommendations for cities

Towards Green Growth

ISBN 9789264094970

Towards Green Growth:

Monitoring Progress

OECD Indicators

ISBN 9789264111349

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Tools for Delivering on Green Growth

OECD Green Growth Papers

www.oecd.org/greengrowth

Green Growth and Developing CountriesCONSULTATION DRAFT

June 2012

Tools for Delivering on Green Growth Green Growth and Developing

Countries

to achieve green growth. In particular, the OECD has actively

supported China’s own green economy initiatives, for example,

through the publication of a Territorial Review on Guangdong

(2010) and Urbanisation and Green Growth in China (2013),

further detailed in the next section. The 2013 Economic Survey

of China also devotes a chapter to urbanisation, growth and

social inclusion.

The OECD also participated in a special Task Force on Green

Economy under the China Council for International Co-operation

on Environment and Development. At the end of 2011, this Task

Force made several recommendations to China’s State Council

on ways to develop a green economy. In March 2011, the OECD

hosted a Workshop for the Task Force experts to present OECD work on key topics related to green growth.

China will also be the country of reference and serve as benchmark for the ongoing research project Towards Green Growth in

Emerging and Developing Asia. The report will be released in 2014.

Î www.oecd.org/greengrowth

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proMoting regionaL deVeLopMent and UrBaniSation

The OECD examines through comparative analysis and country

peer reviews how territorial development policies can best

promote regional competitiveness as well as effective and

innovative territorial governance. The OECD also sets standards

to promote good practices in regional policy.

Urban development is a key policy concern in China, with

environmental sustainability of cities prioritised in the current

policy agenda. The OECD, in partnership with the China

Development Research Foundation, has produced a joint

report on Urbanisation and Green Growth in China. Built

upon previous work on urban trends and policies, this report

focuses on how the central government could facilitate the

implementation of urban green growth policies to meet the

objectives highlighted in both the “green development” and

“urbanisation” pillars of China’s 12th Five Year Plan. The report also constitutes one of the major pillars of our ongoing work on green

growth in cities, both within and beyond the OECD area, and thus represents an important contribution to international learning

about urban and environmental policies.

Trends in Urbanisation and Urban

Policies in OECD Countries

What Lessons for China?

ISBN 9789264092259

OECD Territorial Reviews:

Guangdong, China 2010

ISBN 9789264090071

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The OECD’s first territorial review of a Chinese region was devoted to Guangdong Province, in

2010. The review discussed how some OECD principles and best practices on regional development

could help address the economic and environmental challenges the province faces. In addition,

several Chinese cities such as Dalian, Tianjin, Qingdao and Yantai had also been included in the

study Trans-border Urban Co-operation in the Pan Yellow Sea Region (2009).

The OECD and the National Development and Reform Commission are currently laying the

groundwork for the next step, a National Urban Policy Review, which will examine China’s national

urban policy.

To facilitate comparative analysis at a sub-national level, the OECD has established comprehensive

regional and metropolitan databases on demographic, economic, labour market, innovation and

other statistics. The OECD is working actively with the National Bureau of Statistics of China to

incorporate Chinese data into these tools, which now contain a large and growing number of key

indicators for Chinese regions and cities.

Î www.oecd.org/gov/ruraldevelopment Î www.oecd.org/gov/cities

OECD Territorial Reviews: Trans-

border Urban Co-operation in the

Pan Yellow Sea Region, 2009

ISBN 9789264076112

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inCreaSing agriCULtUraL prodUCtiVitY and Food SeCUritY

Raising agricultural productivity growth represents one of

China’s major agriculture-related policy objectives. The OECD

has been working closely with G20 economies, including China,

to identify and promote policies that enhance food security

and increase agricultural productivity. Last year, the OECD and

the UN Food and Agriculture Organisation (FAO) coordinated

a G20 report on Sustainable Agricultural Productivity Growth

and Bridging the Gap for Small-Family Farms. The report

was a key input into the G20 Los Cabos Leaders Declaration,

which called on the OECD to develop a framework for analysis

of best policy approaches to increase in a sustainable manner

agricultural productivity growth, and options to improve the

efficiency of water use in agriculture.

The OECD and the FAO also publish annually the OECD-FAO

Agricultural Outlook. The 2012 edition includes detailed projections of the medium-term outlook for commodities for OECD

countries and emerging economies for 2012-2021, including China, and has a special chapter on increasing agricultural productivity

sustainably. The 2013 edition will include a special feature on Chinese agriculture, to be prepared in close collaboration with the

Chinese Academy of Agricultural Sciences (CAAS). The OECD is also collaborating with the FAO to support China’s capacity to

SUSTAINABLE AGRICULTURAL PRODUCTIVITY GROWTH

AND

BRIDGING THE GAP FOR SMALL-FAMILY FARMS

Interagency Report to the Mexican G20 Presidency

With contributions by Bioversity, CGIAR Consortium, FAO, IFAD, IFPRI, IICA, OECD, UNCTAD, Coordination team of UN High Level Task Force on the Food Security Crisis, WFP, World Bank, and WTO.

12 June 2012

UN-HLTF on

Global Food Security

OECD-FAO Agricultural Outlook

2012-2021

ISBN 9789264173026

Sustainable Agricultural Productivity

Growth and Bridging the Gap for

Small-Family Farms

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Î www.oecd.org/agriculture Î www.oecd.org/agriculture/code

develop models and tools to monitor agricultural markets as

well as produce agricultural outlook reports with the aim of

improving China’s capacity to develop strategies to ensure a

stable domestic food supply.

The publication Agricultural Policy Monitoring and Evaluation

provides biennial assessment of agricultural policy support

instruments and policy developments in China. The 2011 edition

examined China’s government interventions in agricultural

commodity markets in 2009-10 and the corresponding

impacts on trade and the domestic economy. A new edition

will be released in 2013, with a section focusing on developing

economies including China.

Risk management in agriculture has also become a policy priority

for China. The OECD is engaged in a research project with the

CASS on farm-level analysis of risk management in agriculture.

The final report on risk management in developed and emerging economies, including China, will be published in 2013.

The OECD is a key reference for the certification and standardisation of certain agricultural and forestry inputs and commodities,

which aim to facilitate international trade. China has been an active member of the OECD Tractor Codes since 1988.

Agricultural Policy Monitoring and

Evaluation 2011

OECD Countries and Emerging

Economies

ISBN 9789264106178

OECD Green Growth Studies:

Food and Agriculture

ISBN 9789264111233

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proMoting eFFeCtiVe deVeLopMent Co-operation

China has a long tradition of providing development co-operation. As its international

assistance expands further, China is working to optimise its systems for managing South-

South co-operation and to improve the quality of its foreign aid.

With the OECD’s new Development Strategy, the organisation is focusing on sharing knowledge and policy experiences, useful

analytical tools, and to learn and partner with those having different policy experiences and traditions, including in the field of

development co-operation. There are no “one size fits all” solutions for today’s challenges and the benefits from better sharing

and learning from others can be significant. The OECD offers its experience of 50 years of “better policies for better lives” and of its

development work with both Member and non-Member countries across the world.

The OECD’s Development Assistance Committee (DAC) provides a unique international forum where bilateral donors and multilateral

agencies work together to improve the quantity and quality of their aid through policy reviews and partnerships for development

co-operation. It is engaging co-operation with China in view of the importance of knowledge sharing with this important actor. The

China-DAC Study Group is an example of this engagement, which is currently promoting a sharing of experiences on providing

effective international support for agricultural development and on strengthening evaluation capacity.

China has attended several DAC High and Senior-Level Meetings. It regularly participates in the OECD Global Forum on Development,

and in the OECD-WTO’s work on tracking of aid for trade. In 2012, the OECD co-organised a seminar on aid statistics with the

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Î www.oecd.org/dac Î www.oecd.org/dac/cdsg

Department of Aid to Foreign Countries of the Chinese Ministry of Commerce in Beijing. In 2011, China endorsed the Busan Partnership

for Effective Development Co-operation which sets out shared principles, common goals and differential commitments for effective

international development.

oeCd development Centre

Since its inception, the OECD Development Centre has been a bridge between OECD and non-Member countries to support

development, stability and growth in the world economy. Recognising the growing interdependence of world economies, the Centre

has served as a platform for policy dialogue and mutual learning between developed, developing and emerging economies. Current

members of the Development Centre include non OECD countries such as Brazil, India, Indonesia, South Africa, Thailand and Viet

Nam, to name just a few. The Centre’s in-depth understanding of the dynamics in developing economies and the multi-dimensional

factors effecting development and policy outcomes offer a solid foundation for informed and impactful knowledge sharing.

The Centre has been collaborating with China since the early 1980s. In recent years, the Centre has been strengthening co-operation

with the Development Research Centre (DRC) of the State Council in the area of competitiveness, in particular in the services

industries. The analyses of productivity and efficiency as well as competitive pressures in China’s services industries using state-of-the

art techniques will be complemented with policy discussions of how to boost productivity and efficiency in services to make them a

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African Economic Outlook 2011:

Africa and its Emerging Partners

ISBN 9789264111752

more prominent driver of economic growth, employment creation and more equitable distribution of income. The joint work with

DRC will feed into the Centre’s flagship publication Perspectives on Global Development 2014.

Today, the fruitful relationship focuses on mutual learning between China, the Centre and its members, and is articulated around the

Centre’s regional work in Africa, Latin America, and Southeast Asia.

China and the Centre’s Regional Work

China’s growing impact on Africa’s development has been at the core of the Centre’s analysis. Chinese

experts, policy makers and scholars have been invited to contribute to key publications such as Africa’s

Emerging Economic Partners - African Economic Outlook (2011). The Centre’s research in this area

continues to be shared with stakeholders in Beijing , most recently in June 2012, highlighting the

ongoing role of the Centre’s analysis as a tool for knowledge sharing.

Co-operation with China on Latin America has benefitted from frequent collaboration with the

Chinese Academy of Social Sciences (CASS) in recent years, and builds on the Centre’s analysis of

China’s impact in the region. Development challenges and opportunities in Latin America, such as

the emergence of the middle class or the important role small and medium enterprises can play in

development are relevant experiences for China. In 2012, the Centre contributed to an annual flagship

report which focused on how to avoid the ‘middle income trap’ by providing input on structural

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Latin American Economic Outlook

2012: Transforming the State for

Development

ISBN 9789264121706

Southeast Asian Economic

Outlook 2013

With Perspectives on China and India

ISBN 9789264180765

transformation and productive development policies in Latin America

and East Asia. This report was presented jointly with the Chinese

version of the Latin America Outlook 2012 in Beijing , which will again

be presented at the CASS High-level meeting on Latin America.

The Centre’s analysis on and co-operation with China has been

rapidly increasing due to the major role China plays in Southeast

Asia. The yearly publication on Southeast Asian Economic Outlook

with Perspectives on China and India (SAEO) is a regional economic

outlook on Asia’s economic growth, development and integration

focusing on the ten countries of the Association of Southeast Asian

Nations (ASEAN) and addresses relevant economic issues in China and

India. Co-operation with China has been strengthened further through

ASEAN+3 Macroeconomic Research Office (AMRO). China played an active role in the inaugural OECD Development Centre-AMRO

Joint Asian Regional Roundtable in September 2012 that discussed the euro-area economic uncertainty and its implications for the

near-term macroeconomic policies and medium-term growth of Asian economies. The second edition of this joint Roundtable will

be organised in later this year.

Î www.oecd.org/dev Î www.oecd.org/devasiapacific

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Emerging Markets Network

In 2007, the Development Centre launched an Emerging Markets Network (EmNet) which is an initiative dedicated to the business

sector and serves as a platform for dialogue and experience-sharing among OECD-based multinational corporations and their

counterparts in emerging countries.

China is active in this network through the China International Council for the Promotion of Multinational Corporations (CICPMC),

an association for business promotion linked to China’s Ministry of Commerce. In the framework of the Business Leaders Roundtable,

a yearly event gathering executives from Chinese and foreign leading companies, CICPMC-EmNet joint sessions have been organised

since 2010. Previous meetings have focused on: China’s economic structural adjustment and the world economy sustainable

development (2010); business contacts and investment opportunities between China and emerging countries (2010); and the

development of China’s Western provinces and the policy efforts needed to achieve cleaner and more sustainable development

(2012). The next joint seminar will be held in Beijing in November 2013.

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EmNet-CICPMC Meeting on 6 November 2010

Î www.oecd.org/dev/emnet

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Better data For Better anaLYSeS and poLiCieS

The OECD maintains comprehensive databases of comparable statistics to support its analytical and policy work. The Organisation also

develops and promotes international statistical standards and co-ordinates statistical activities with other international organisations.

China has been included, for a number of years now, in some of the most high profile and important OECD databases. These include a

range of short-term economic statistics, for example, international trade, monthly financial statistics such as monetary aggregates and

interest rates, balance of payments, production indices, and prices. These frequently-consulted short-term economic statistics provide

an overview and comparison of recent international economic developments and are used in the modelling of the business cycle.

Additionally, China has been included in National Accounts databases and in 2012 quarterly GDP in volume terms were published

for the first time. The OECD Factbook, an extensive, annual compilation of economic, environmental and social statistics, features a

growing range of Chinese statistics covering a widening selection of the statistical topics.

A crucial element of the deeper engagement between the OECD and China is development of the full range of standardised,

comprehensive statistical indicators as the basis for making meaningful comparisons between China and other countries. To this end,

the OECD has been developed a technical dialogue with the National Bureau of Statistics (NBS) since 1996, in particular in the area of

national accounts. Furthermore, the OECD is leading work in areas such as international trade in value added (TiVA), green growth and

gender indicators that will help to ensure international statistics to remain relevant and meaningful.

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In 2013, the first Revenue Statistics, Trends and Policy Challenges

in Asia will be published. It will provide detailed internationally

comparable data on the tax revenues received by governments

in Asia. The publication will provide international comparisons

on fiscal performance and tax mix across countries, not only

among Asian countries, but also, for the first time, between

them and OECD countries.

How’s Life?Measuring Well-being

ISBN 9789264111615

OECD Factbook 2013

Economic, Environmental and Social

Statistics

ISBN 9789264177062

Î www.oecd.org/std

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SMooth FUnCtioning oF MarKetS

enhanCing Co-operation on internationaL inVeStMent

China has become highly integrated in the global economy through international trade and investment. It is now a major investor

abroad. As such, China has a strong interest in an open, fair, and rules-based international investment regime. The OECD promotes

investment policy reform and supports international investment co-operation with a view to enhancing the contribution of

international investment to growth and sustainable development. In particular, the OECD produces statistics on foreign direct

investments (FDI), monitors investment protectionism in the context of the G20, hosts the inter-governmental Freedom of Investment

process to exchange information and experiences on investment policies, and develops international instruments and tools which are

used worldwide. These include the Declaration on International Investment and Multinational Enterprises, the Codes of Liberalisation

of Capital Movements, Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk

Areas, and the Policy Framework for Investment.

China participates in a wide range of these activities, including the Policy Framework for Investment, the Working Party on

International Investment Statistics, and the Global Forum on International Investment. China also regularly participates in the OECD-

hosted Freedom of Investment Roundtables. Many of the policy issues discussed – for example, on recipient countries’ policies toward

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sovereign wealth funds, investment protectionism, and international investment law and investor

state dispute settlement – are of importance to China given its role as a major capital importing

and exporting country.

The fourth investment policy review of China is planned for 2013. The OECD is also a permanent

co-sponsor in both the annual China International Fair for Investment and Trade and the China

Overseas Investment Fair.

Î www.oecd.org/daf/investment

OECD Investment Policy Reviews: China 2008

Encouraging Responsible Business Conduct

ISBN 9789264053663

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proMoting trade

Trade liberalisation has played a key role in China’s economic transformation. Keeping open markets is of mutual interest for the

OECD and China. OECD and China share a strong interest in promoting a better understanding of global value chains and their

trade policy implications. The MOFCOM-WTO-UNCTAD-OECD conference on global value chains, which took place in Beijing in

September 2012, provided a useful platform for presenting related OECD work, sharing data and learning from Chinese officials and

experts in this important area.

In addition, the OECD-WTO initiative to measure trade in value-added terms will underpin further analysis of global value chains.

This new OECD-WTO database, launched in mid-January 2013, provides metrics that more precisely measure the value of goods and

services traded in China and other major economies.

The OECD has examined the relationship between trade, growth and jobs in OECD and emerging economies in the context of the

International Collaborative Initiative on Trade and Employment (ICITE). The results of this work have been published in Policy Priorities

for International Trade and Jobs. The OECD also collaborates with the WTO on aid for trade. The publication, Aid for Trade at a

Glance 2011: Showing Results, provides analysis of trends and developments in aid that aim to help developing countries integrate

into the global economy and benefit from trade opportunities.

www.oecd.org/china

26

Policy Priorities for International

Trade and Jobs

ISBN 9789264180178

Aid for Trade at a Glance 2011:

Showing Results

ISBN 9789287037800

Î www.oecd.org/trade

The OECD has served as a co-sponsor of the China Beijing International Fair for Trade in Services (CIFTIS). The OECD is developing

Services Trade Restrictiveness Indexes that can help participating economies identify regulatory best practices in specific services

sectors. China could both benefit from and contribute to this initiative.

www.oecd.org/china

27

regULating eXport CreditS

Governments provide official export credits through Export Credit Agencies that support national exporters selling overseas. The

OECD provides a forum for discussion and co-ordination of national export credit policies relating to good governance issues, such as

anti-bribery measures, environmental and social due diligence, and sustainable lending. OECD-housed rules ensure that export credit

programs conform to anti-subsidy obligations made under the auspices of the World Trade Organisation (WTO) and contribute to

open markets and fair trade.

The Arrangement on Officially Supported Export Credits stipulates the most generous financial terms and conditions for officially

supported export credits. The resulting export credits disciplines apply first and foremost to OECD Members; however, several key

non-Members, such as Brazil, China, India and South Africa, regularly observe meetings of the Working Party on Export Credits and

Credit Guarantees and of the Participants of the Arrangement. Their adherence to any of the OECD export credits disciplines is

welcomed.

Non-Members are also invited to fully participate in negotiating and administering these rules, and may do so without assuming any

non-export credit obligations.

Î ⇒ www.oecd.org/trade/xcred

www.oecd.org/china

28

Competitive Neutrality

Maintaining a Level Playing Field

between Public and Private Business

ISBN 9789264178946

proMoting SoUnd CoMpetition

The OECD promotes sound competition principles and helps build mutual understanding and

international convergence. It has developed international best practices on international co-

operation between competition enforcers, on hard core cartels and on assessment of government

policies for anti-competitive effects.

Regulatory barriers to competition remain somewhat high in many sectors in China compared to

OECD countries, potentially hampering development and preventing consumers from benefiting

from the country’s rapid economic growth. The OECD has developed a Competition Assessment

Toolkit that provides a general methodology (or checklist) to review laws and regulations that could

restrain competition. The Organisation has also developed Guidelines for Fighting Bid Rigging in

Public Procurement to assist governments in raising awareness of the risks and costs of collusion in

public procurement.

In 2012, the OECD published a report on Competitive Neutrality, which considers the approaches

available to competition agencies to counter anti-competitive practices by state-owned enterprises, and the policies available to

government to ensure competitive neutrality between private and public providers.

www.oecd.org/china

29

Co-operation between China and the OECD on competition

policy has expanded in recent years as China’s competition

authorities increase their enforcement capabilities. China

frequently attends meetings of the OECD’s Competition

Committee, and officials participate in the Competition

Programme of the OECD-Korea Policy Centre, exchanging

knowledge and experience with their counterparts in the region.

In Beijing in 2012, the OECD-Korea Policy Centre provided

training in competition law to judges in China.

During the early stages of implementation of China’s Anti-

Monopoly Law, the OECD held a series of capacity building

events with judges from China’s Supreme People’s Court and

staff from the Ministry of Commerce, the National Development

and Reform Commission as well as the State Administration for Industry and Commerce. In 2010 and 2011, the OECD, the Asian

Development Bank and the Chinese Ministry of Commerce jointly hosted the first meetings of the State Council’s Anti-Monopoly

Commission, which brought the subject of competition policy to senior officials from a wide range of State organisations.

Î www.oecd.org/competition

Ken DangerCompetition DivisionOECD2, Rue André Pascal75016 Paris FranceTel: +33 1 45 24 82 50Fax: +33 1 45 24 96 [email protected]

Antonio CapobiancoCompetition DivisionOECD2, Rue André Pascal75016 Paris FranceTel: +33 1 45 24 98 08Fax: +33 1 45 24 96 [email protected]

www.oecd.org/competition

For further information about the Guidelines for Fighting Bid Rigging in Public Procurement, please contact:

COMPETITION – THE KEY TO PRODUCTIVITY AND GROWTH

GUIDELINES FOR FIGHTING BID RIGGING IN PUBLIC PROCUREMENTHelping governments to obtain best value for money

THE COMPETITIONASSESSMENT TOOLKIT“Increasing productivity is by far the most important ingredient in economic

development. It solves almost all other economic problems. From the vast amount

of economic experience in countries all over the world for the past 50 years, we

have learned without doubt that the most important condition necessary for rapid

productivity growth is fair and intense competition in all the sectors of an economy.”

William W. Lewis, Founding Director, McKinsey Global Institute Author of The Power of Productivity

Guidelines for Fighting Bid Rigging in

Public Procurement

Competition Assessment Toolkit

www.oecd.org/china

30

Î www.oecd.org/daf/fin Î www.oecd.org/daf/fmt

FinanCiaL MarKetS and ConSUMer proteCtion

The OECD promotes efficient, open, stable and sound market-oriented financial systems, based on high levels of transparency,

confidence and integrity. It monitors and surveys current market developments and structural changes, publishing its key findings in

the OECD’s biannual publication Financial Market Trends.

The OECD also assesses and develops reform measures related to banking, securities and institutional investors (in particular, insurance

companies and private pension schemes). In addition, it facilitates policy dialogue and exchange of experiences, for instance, on capital

market reform, financial education and financial consumer protection.

China has come through the global economic crisis relatively healthy compared to many OECD countries. Good macroeconomic

fundamentals, sound regulations and a limited exposure to international markets have helped to promote the smooth functioning

of the financial system. Going forward, China will continue to gain importance in world financial markets as a result of its economic

growth and rising shares in world trade and investment.

China participates in the OECD/Asian Development Bank Institute Roundtable on Capital Market Reform in Asia and the OECD

Global Forum on Public Debt Management, as well as the OECD/World Bank/IMF Global Bond Market Forum. China attended the

first Asian Roundtable on Financial Consumer Protection and has contributed to and supported the work of the G20/OECD Task

Force on Financial Consumer Protection.

www.oecd.org/china

31

iMproVing FinanCiaL edUCation eFFiCienCY

The global financial crisis brought to the forefront the need for comprehensive financial education programmes in economies at

different stages of development. Financial education is necessary to develop financial awareness and skills among both consumers

and investors. China in particular needs to enhance access to and use of financial services for its citizens, particularly in remote and

underserved areas of the country. It should also support investor education in order to promote better investment habits by its middle

class and the wealthier members of society.

The OECD formulates recommendations through the International Network on Financial Education (INFE) and the International

Gateway for Financial Education, as well as in its role as participant in the work of the G20. Established in 2008, the INFE brings

together public experts from more than 200 public institutions and over 100 economies in order to undertake analytical work and

develop good practices. China has a strong presence in this OECD Network. Official members include the People’s Bank of China, the

China Banking Regulatory Commission and the China Institute for Educational Finance Research. Thanks to this active participation,

Chinese officials can benefit from the expertise of the OECD and of INFE delegates in the development and implementation of

effective financial education strategies, and from the guidelines, tools and recommendations developed by the Network.

www.oecd.org/china

32

Î www.financial-education.org Î www.oecd.org/daf/financialeducation

1

Organisation for Economic Co-operation and Development, 2 rue André-Pascal, 75775 Paris cedex 16, France www.oecd.org

August 2012

OECD/INFE HIGH-LEVEL PRINCIPLES ON NATIONAL STRATEGIES FOR FINANCIAL EDUCATION

The High-level Principles on National Strategies for Financial Education were developed by the OECD International Network on Financial Education (OECD/INFE) (which comprises representatives from over 100 economies, including all G20 members and relevant international organisations). They are based on an international survey and an in-depth iterative review process. This final version of the High-level Principles was approved by the OECD/INFE and by the OECD bodies in charge of financial education (i.e. the Committee on Financial Markets and the Insurance and Private Pensions Committee) in the course of April 2012. At the initiative of the G20 Mexican presidency and the request of the G20 Finance Ministers and Central Bank Governors, meeting in February and April 2012, they were submitted to, and endorsed by the G20 Leaders at the Los Cabos Summit. At the request of the APEC Russian Presidency, these Principles were also transmitted to APEC Ministers of Finance whom welcomed their endorsement by APEC leaders at their meeting on 30 August 2012. For further information, please contact Mr. André Laboul, Head of the Financial Affairs Division, OECD; Chair of the INFE [tel: +33 1 45 24 91 27; Fax +33 1 44 30 61 38; E-mail [email protected]] or Ms. Flore-Anne Messy, Senior Policy Expert, Financial Affairs Division, OECD and INFE Executive Secretary [tel: +33 1 45 24 96 56; Fax: +33 1 44 30 61 38; E-mail: [email protected]]

Please cite this paper as:

Grifoni, A. and F. Messy (2012), “Current Status ofNational Strategies for Financial Education: A ComparativeAnalysis and Relevant Practices”, OECD Working Paperson Finance, Insurance and Private Pensions, No. 16,OECD Publishing.http://dx.doi.org/10.1787/5k9bcwct7xmn-en

OECD Working Papers on Finance,Insurance and Private Pensions No. 16

Current Status of NationalStrategies for FinancialEducation

A COMPARATIVE ANALYSIS AND RELEVANTPRACTICES

Andrea Grifoni, Flore-Anne Messy

JEL Classification: D14, D18, I28, O16, O19

OECD/INFE High-Level Principles

on National Strategies for Financial

Education

Current Status of National Strategies

for Financial Education

www.oecd.org/china

33

pUBLiC and Corporate goVernanCe

regULatorY reForM and adMiniStratiVe SiMpLiFiCation

The OECD examines and promotes regulatory quality by examining and disseminating best practice in regulatory policy, institutions and tools. It helps countries to design and implement regulations to enhance the functioning of markets, or to protect health, safety and the environment, to deregulate when appropriate and to encourage more open competition. To do this, the OECD develops international instruments and tools -- for example, the Guiding Principles for Regulatory Quality and Performance and the Asia Pacific Economic Co-operation (APEC)-OECD Integrated Checklist on Regulatory Reform, conducts country peer reviews and facilitates policy dialogue among OECD and emerging economies. OECD work also covers administrative simplification, regulatory compliance and enforcement, regulatory impact assessment, transparency and communication, and alternatives to regulation.

The OECD conducted a Regulatory Reform Review of China in 2009, in co-operation with China’s National Development and Reform Commission. The review examined the overall context for regulatory reform and the government’s capacity to manage such reform, as well as reforms in competition policy and market openness. Policy recommendations included the need to improve the government’s regulatory capabilities through the establishment of a body or network to promote high-quality regulation, the development of procedures to ensure regulatory transparency, and the setting-up of mechanisms to simplify, revise or eliminate regulation when necessary, for example, by measuring the effects of regulations through regulatory impact analysis.

Further reduction of regulatory complexity and entry barriers to service and infrastructure sectors for domestic and foreign businesses will increase the benefits of market openness. While China has made enormous progress in developing a modern legal and regulatory foundation for a market economy, important challenges remain, such as further clarification of the scope of state ownership, reform of relations among central and local governments to ensure greater policy coherence, firmer establishment of the rule of law, and the strengthening of regulatory institutions and processes.

Î www.oecd.org/gov/regref

www.oecd.org/china

34

BUdgeting and pUBLiC eXpenditUreS

The OECD carries out research across the full range of budgeting issues through reviews of country budgeting systems, comparative

analysis of specific aspects of the budgeting systems across countries, and maintains a comprehensive Database on International

Budget Practices and Procedures. The results of this work are published in the OECD Journal on Budgeting. The latest edition of the

Journal includes an article entitled The Fiscal Stimulus Programme and Public Governance Issues in China.

The OECD has collaborated with the Chinese Ministry of Finance on the design of reforms for the budget formulation and

implementation process. In addition, the OECD has worked with the National People’s Congress in reforming the budget approval

process.

China is also an active participant in the OECD’s Senior Budget Officials’ Regional Network for Asia. This Network brings together

budget directors and senior officials from Asian and OECD countries in order to share policy experiences and discuss common

budgetary issues. The work of this Network is based on three pillars: cross-country analytical studies in order to identify best practices,

e.g. in the area of budgeting for natural disasters; peer reviews, or profiles, of the budgeting systems of countries in the region; and a

database of budget institutions and practices in the Asian region.

Î www.oecd.org/gov/budget

www.oecd.org/china

35

iMproVing taX tranSparenCY and CoMpLianCe

China has a strong relationship with the OECD in the tax area. A joint “Centre for Tax Policy and

Administration-China State Administration of Taxation Management Meeting” was held in Beijing in

April 2012. This set the basis for enhancing the relationship and developing a three year partnership

providing greater opportunities for structured dialogue and closer co-operation on international

tax issues. Since 2004, China has been a regular and active participant in the OECD Committee

on Fiscal Affairs (which oversees OECD’s tax work). China is also a member of the Forum on Tax

Administration, which brings together the Tax Commissioners from over 40 economies to improve

tax compliance.

China plays a leading role in the Global Forum on Transparency and Exchange of Information for Tax

Purposes as Vice-Chair of the Steering Group. The Forum, which brings together about 120 OECD

and non-OECD jurisdictions, monitors the implementation of internationally-agreed standards on

transparency and exchange of information for tax purposes through country peer reviews. China is

also a member of the Steering Group of the newly launched Global Forum on Transfer Pricing as

well as the Global Forum on VAT.

Global Forum on Transparency and

Exchange of Information for Tax

Purposes Peer Reviews: People’s

Republic of China 2012

ISBN 9789264178250

www.oecd.org/china

36

Since the mid 1990’s, China’s partnership with the OECD has resulted in the delivery of around 120 technical training events on taxation,

attended by more than 15,000 Chinese tax officials, which have helped China implement taxation and administrative measures that

reflect international best practices and standards developed by OECD.

The OECD is consequently committed to interaction with China on domestic tax reform and on enhancing international tax

co-operation in a partnership, through which tax officials work at the front line to a dialogue on key policy issues and to shape

together the international tax landscape.

Î www.oecd.org/taxation Î www.oecd.org/tax/globalrelations

www.oecd.org/china

37

Fighting CorrUption

As China expands its global trade and investment network, Chinese companies encounter increased risk of corruption in the global

marketplace.

The OECD leads the global fight against bribery in international business transactions, through its 40-member Working Group on

Bribery (WGB), which consists of the 34 OECD countries plus Argentina, Brazil, Bulgaria, Colombia, Russia and South Africa. The

Working Group monitors implementation of the Convention on Combating Bribery of Foreign Public Officials in International

Business Transactions through a rigorous peer-review process. Becoming a Party to the Convention would enhance China’s ability

to enforce its foreign bribery law, and strengthen the global framework for combating transnational bribery. Co-operation between

China and the other Parties to the Convention in cross-border bribery investigations would be increased, and China would strengthen

the recovery of the proceeds of corruption through international confiscation. Moreover, China would help create a level playing field

in international business transactions.

China has participated in meetings of the WGB since 2007. In October 2010, the OECD and the Ministry of Supervision jointly organised

a technical seminar on foreign bribery and the Convention. In May 2011 China’s foreign bribery offence came into effect. China has also

agreed to the G20 Anti-Corruption Action Plan, endorsed by the G20 Anti-Corruption Working Group at the June 2012 Los Cabos

Summit. In addition, China has been a member of the Asian Development Bank (ADB)/OECD Anti-Corruption Initiative for Asia

and the Pacific since 2005, and has endorsed the ADB/OECD Anti-Corruption Action Plan for Asia and the Pacific.

www.oecd.org/china

38

Î www.oecd.org/corruption Î www.oecd.org/corruption/asiapacific

CONVENTION ON COMBATING BRIBERY OF FOREIGN PUBLIC OFFICIALS IN INTERNATIONAL BUSINESS TRANSACTIONS and Related Documents

1

BOOSTINGINTEGRITY

FIGHTINGCORRUPTION

www.CleanGovBiz.org

The OECD Anti-Bribery Convention CleanGovBiz Initiative ADB/OECD Anti-Corruption Initiative

for Asia and the Pacific

The Criminalisation of Bribery in Asia

and the Pacific

ISBN 9789264097438

www.oecd.org/china

39

enhanCing pUBLiC SeCtor integritY

Ensuring that the integrity of public decisions is not compromised by public officials’ private interests, and minimising government

waste, are growing concerns in China. The new leadership of the Standing Committee, and the Central Commission for Discipline

Inspection (CCDI), have vowed to speed up anti-corruption efforts. The OECD stands ready to support the CCDI by providing hands-

on policy advice on the instruments, processes and structures to effectively map and manage integrity risks in the public sector and

embed high-standards of conduct among public officials.

Asian countries have paid increasing attention

to the need to enhance public sector integrity

systems. In supporting these efforts, the OECD,

together with the Asian Development Bank,

organised a seminar in October 2012 in Hanoi,

Vietnam to share experiences and good practices

of Asian countries in designing and implementing

disclosure of financial interests. Work is also

underway to improve procurement practices.

Î www.oecd.org/gov/ethics

Public Sector Integrity

A Framework for Assessment

ISBN 9789264010598

OECD Principles for Integrity

in Public Procurement

ISBN 9789264055612

Lobbyists, Governments and

Public Trust, Volume 2

Promoting Integrity through

Self-regulation

ISBN 9789264084933

www.oecd.org/china

40

SUpporting pUBLiC SeCtor reForMS

Effective public institutions contribute substantially to economic prosperity, social cohesion and

poverty reduction. China has embarked on an ambitious programme of institutional reform of its 1.2

million “public institutions” which employ 30 million people. In this context, establishing a strategic

vision for the overall set up and priorities of the public sector and ensuring a central capacity to

lead the reform will be critical to enable effective and sustainable implementation of the reforms.

The OECD Governance and Functional reviews support governments in their decision making

process regarding policy choices in institutional reforms to ensure that their public sectors best meet

the needs of citizens and support sustained economic growth and stability. Undertaking a functional

and public management review enables governments to enhance efficiency and effectiveness of

their streamline operations and improve service delivery models and capacities. It can also help

them enhance performance of their institutions by ensuring that the skills, resources and use of

information technology fit their new institutional set up and priorities. The OECD Government at

a Glance also provides comparative benchmarks in strengthening and assuring quality and productivity of the public sector, with the

ultimate objective to build a stronger, cleaner and fairer economy and society. The OECD welcomes further collaboration with China

in this field.

Government at a Glance

ISBN 9789264096578

www.oecd.org/china

41

Strengthening Corporate goVernanCe

The rapid growth of corporate China and the expansion of

Chinese equity markets have pushed corporate governance

high on the national reform agenda. Healthy capital markets and

efficient, transparent corporate practices are essential for growth

and innovation. The degree of state ownership in both listed

and unlisted companies also attracts considerable attention. As

an important player in the world economy, China’s corporate

governance framework and practices are of global relevance.

For over a decade, the OECD has supported China in its reform

efforts. This co-operation is multidimensional and takes place

through the OECD Corporate Governance Committee (CGC),

OECD Working Party on State Ownership and Privatisation

Practices, regional Asian Roundtable on Corporate Governance

and bilateral China-OECD Corporate Governance Policy

Dialogue.

Corporate Governance of Listed

Companies in China

Self-Assessment by the China Securities

Regulatory Commission

ISBN 9789264119086

Taking Corporate Governance to a Higher Level

reform priorities in Asia

2011

Reforms Priorities in Asia

Taking Corporate Governance to a

Higher-Level

www.oecd.org/china

42

In July 2012 in Beijing , the OECD co-hosted a workshop with

the China Securities and Regulatory Commission (CSRC) on

corporate governance, growth and innovation. The high-

level discussion highlighted the importance China attaches

to developing its capital markets to promote new growth

companies and better paid jobs.

Since 2010, China, represented by the CSRC, has participated

actively in meetings of the CGC. In 2011, the CSRC and the OECD

co-published a Self Assessment Corporate Governance of Listed

Companies in China, which looked at the institutional framework

for corporate governance of listed companies in China through

the prism of the OECD Principles of Corporate Governance. The

Self-Assessment was discussed during a meeting of the CGC in

the same manner as standard OECD peer reviews. By assessing

the legal and regulatory framework, it provides a valuable

reference for understanding how much has been achieved in

China; it will also form the basis for future activities.

OECD Guidelines on Corporate Governance of State-owned Enterprises

OECD Guidelines on Corporate Governance of State-owned Enterprise

The new OECD Guidelines on the Corporate Governance of State-owned Enterprises provide an internationally agreed benchmark to help governments assess and improve the way they exercise their ownership functions in state owned enterprises. They build on a wealth of concrete experience from a large number of OECD and non-OECD countries around the world and offer concrete advice on corporate governance challenges that need to be addressed when the state is a corporate owner.

Good corporate governance of state-owned enterprises is becoming a reform priority in many countries. Improved efficiency and better transparency in the state owned sector will result in considerable economic gains especially in countries where state ownership is important. In addition, creating a level-playing field for private and state owned enterprises to compete will encourage a sound and competitive business sector. The Guidelines thus provide a tool for national and international efforts to improve corporate governance of state owned enterprises.

For any question or information concerning the OECD Guidelines on the Corporate Governance of State-owned Enterprises, please contact the Corporate Affairs Division of the OECD at: [email protected]. For more information for OECD’s work in the area of privatisation and corporate governance of state-owned assets and the Guidelines, visit: www.oecd.org/daf/corporate-affairs/soe/.www.oecd.org/daf/corporate-affairs/soe/.www.oecd.org/daf/corporate-affairs/soe/

www.oecd.org

«OECD Principles of Corporate

Governance

ISBN 9789264015975

OECD Guidelines on Corporate

Governance of State-Owned

Enterprises

ISBN 9789264116061

Î www.oecd.org/daf/corporateaffairs

www.oecd.org/china

43

eMpLoYMent and SoCiaL deVeLopMent

SeeKing BeSt praCtiCeS oF SoCiaL poLiCieS

Society

OECD’s work on social policy covers a wide range of issues and continuously seeks new best

practices with regard to changing socio-demographic factors and labour-market conditions. As

the global financial situation continues to put additional stress on social protection systems, the

OECD is undertaking well-targeted work that aims to address the human dimension of the crisis in

emerging economies.

In December 2011, the OECD published jointly with the OECD/Korea Policy Centre Society at a

Glance – Asia/Pacific 2011 which includes a special focus on unpaid work and the ways to facilitate

women’s access to employment in China. A new edition is scheduled for publication in 2013. In

addition, the OECD/Korea Policy Centre has co-organised with the Asian Development Bank (ADB)

and the International Labour Organisation (ILO) several workshops on social accounting data. Society at a Glance: Asia/Pacific 2011

ISBN 9789264105690

www.oecd.org/china

44

In the context of the OECD Gender Initiative, a joint ADB/

OECD workshop on gender equality took place in February

2012 in Manila. The workshop brought together academics and

policymakers who discussed potential barriers and identified

good practices towards greater gender equality in education,

employment and entrepreneurship – the three “Es” – in China,

India and Indonesia.

In December 2012, the OECD published a report on Closing the

Gender Gap: Act Now, which examines latest trends on gender

equality in the three “Es” and discusses how best to close the

remaining gender gaps in these areas. The report was launched

together with the new OECD Gender Data portal that covers

OECD member countries and the BRICS.

GENDER EQUALITY IN EDUCATION,

EMPLOYMENT AND ENTREPRENEURSHIP:

FINAL REPORT TO THE MCM 2012

Meeting of the OECD Councilat Ministerial Level

Paris, 23-24 May 2012

Closing the Gender Gap: Act Now

ISBN 9789264179363

Gender Equality in Education,

Employment and Entrepreneurship

Final Report to the MCM 2012

Î www.oecd.org/els/social/indicators/asia Î www.oecd.org/gender/equality

www.oecd.org/china

45

pensions

In the area of pensions, the OECD collects data and analyses

retirement income systems, providing a reference for pension

comparison across the OECD and the Asia-Pacific region. The

OECD also works with Chinese authorities on general pension

reform and risk awareness and reduction initiatives. The biennial

publication Pensions at a Glance Asia/Pacific covers 11 economies

within the Asian region, including China, and presents key pension

indicators such as replacement rates and pension wealth. The latest

edition was released in January 2012, and the next edition will be

released in November 2013.

In addition, the OECD/Korea Policy Centre organises meetings

annually in Seoul for pension experts from different economies as

well as from international organisations such as the ILO and ADB.

Over the last two years, the OECD has contributed to the ADB project on pensions in Asia, culminating in the publication Pension

Systems and Old Age Income Support in East and Southeast Asia, released in December 2011.

Î www.oecd.org/els/social/pensions

Pension Systems and Old-Age Incom

eSupport in East and Southeast Asia

Edited by D

onghyun Park

Pension Systems and Old-Age IncomeSupport in East and Southeast Asia

Overview and reform directions

Edited by Donghyun Park

Old-age income support will be one of the biggest social and economic challenges facing Asia in

the 21st century. The growing spotlight on old-age income support is largely due to exceptionally

rapid population aging which is fundamentally reshaping Asia’s demographic pro�le. A young

continent reaping the demographic dividend of a large youthful workforce is giving way to a

greying continent where the ratio of retirees to workers is on the rise.

In contrast to industrialized countries, most Asian countries do not yet have mature, well-

functioning pension systems. As a result, they are ill prepared to provide economic security for

the large number of retirees who loom on the region’s horizon. This book takes a close look

at the pension systems of eight countries in East and Southeast Asia – namely, the People’s

Republic of China, Indonesia, Republic of Korea, Malaysia, Philippines, Singapore, Thailand and

Viet Nam – which encompass a wide range of income and development levels. The book

provides a comprehensive overview of pension systems in the eight countries, including an

in-depth diagnosis to identify their major weaknesses and shortcomings.

On the basis of the diagnosis, the book sets forth concrete and speci�c policy options for

reforming Asia’s pension systems. Many policy options for reform are country-speci�c. For

example, a top priority in the People’s Republic of China is to extend the pension system to rural

areas. At the same time, a number of reforms – such as the need to extend coverage – resonate

across the entire region. Appropriate reform will enable the region’s pension systems to deliver

affordable, adequate and sustainable old-age economic security.

Donghyun Park is currently Principal Economist at the Economics and Research Department of

the Asian Development Bank (ADB), which he joined in April 2007. Prior to joining ADB, he was

a tenured Associate Professor of Economics at Nanyang Technological University in Singapore.

Dr Park has a Ph.D. in economics from UCLA, and his main research �elds are international

�nance and trade. His research, which has been published extensively in journals and books,

focuses on policy-oriented topics relevant for Asia’s long-term development, including Asian

sovereign wealth funds and Asian pension reform. Dr Park plays a leading role in the production

of the Asian Development Outlook, one of ADB’s �agship annual publications.

ECONOMICS

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.orgISBN: 9780415692700 www.routledge.com

Cover image: © DAJ / Getty Images

14mm

Pension Systems and Old-Age Income

Support in East and Southeast Asia

Overview and Reform Direction

ISBN 9780415692700

Pensions at a Glance Asia/Pacific 2011

ISBN 9789264106994

www.oecd.org/china

46

health

The OECD monitors health-related data such as health status, health care resources and health

expenditure and financing, as well as indicators on the quality of care in OECD and Asia/Pacific

economies. It advises countries on policies to prevent disease and improve health-system efficiency

through care co-ordination and the implementation of information technologies. The OECD also

helps countries to design pharmaceutical policies and address future health workforce and long-

term care needs.

Much of OECD’s work with China’s health authorities has been conducted through the OECD/

Korea Policy Centre, which organises meetings and workshops to exchange policy experience

between China and other countries in the region.

Through the OECD/Korea Policy Centre and jointly with the World Health Organisation, the OECD

published the second edition of Health at a Glance: Asia/Pacific, in 2012 with a special chapter

on quality of health care. This publication presents a set of key indicators on health systems for 27

Asia/Pacific economies. It shows notably that China’s per capita health expenditure was still lower than the regional average in 2010,

even though the figure has been progressing rapidly over the past 10 years.

Î www.oecd.org/health Î www.oecdkorea.org

Health at a Glance: Asia/Pacific

2012

ISBN 9789264183728

www.oecd.org/china

47 Î www.oecd.org/cfe/leed/demographicchange.htm

Demographic Change and Local Development:

Shrinkage, Regeneration and Social Dynamics

ISBN 9789264180468

adapting to the deMographiC ShiFt

Many countries have been experiencing important demographic shifts over the past few decades.

This brings important challenges in a number of policy areas, including urban policy, education,

healthcare, social policy, to name a few. The report Demographic Change and Local Development:

Shrinkage, Regeneration and Social Dynamics released in March 2012 devoted a chapter to the

analysis of social exclusion of the elderly in China – a challenge resulting from rapid migration and

ageing. The census conducted in China in 2010 shows that the proportion of people aged 65 and

over accounted for 8.87% of the population by 2010. According to the United Nation’s World

Population Prospects in 2010, the proportion of people aged 65 and over in China will reach 14% of

the population by 2025. In order to face the rapid population ageing, researchers and policy makers

have paid great attention to elderly-related issues.

By the end of the year 2010, China’s domestic migrants had reached 2.2 million. Given the

importance of family members in the provision of support to the elderly, the enormous migration

from rural areas to urban areas has also brought great challenges to the fight against social exclusion

in China’s countryside. As revealed in this report, out-migration of family members who are mainly the younger ones has weakened

the family’s function in raising its old members. As a result, the family has become an “Empty Nest”. As more and more rural workers

leave the countryside, it is expected that more and more “Empty Nests” will appear in China’s rural areas.

www.oecd.org/china

48

taCKLing ineqUaLitieS and UneMpLoYMent

The OECD monitors and compares developments in employment and labour markets across member and key partner countries

including China. The annual Employment Outlook analyses labour market trends and monitors reforms in areas such as active labour

market policies, employment protection and the minimum wage. The OECD also provides country-specific analysis and policy

recommendations to help governments create jobs, particularly for vulnerable groups, such as younger, older and disabled workers.

Labour market conditions in China were reviewed in the 2010 Economic Survey of China, while the labour market effects of social

protection systems in China as well as other emerging economies were examined in the OECD’s 2011 Employment Outlook. The

Outlook finds that extending social protection coverage can, if well-designed, contribute to improved labour market outcomes.

Negative incentives to work less or to work in the informal sector can be avoided by targeting income support to those who need it

most and by promoting self-insurance among those who can afford it.

The OECD report Divided We Stand – Why Inequality Keep Rising (2011) discusses inequality patterns and related key policy

challenges in OECD and key partner countries, including China. The report complemented a previous one on Tackling Inequalities

in Brazil, China, India and South Africa: What Role for Labour Market and Social Policies?, undertaken jointly with the European

Commission and involving close co-operation with experts from the Institute of Population and Labour Economics of the Chinese

Academy of Social Sciences. It provided an in-depth study of labour market developments and their impact on income inequality

in China, and found that labour mobility in China has played an important role in narrowing the rural-urban income gap and more

generally in reducing income inequality.

www.oecd.org/china

49

Î www.oecd.org/els Î www.oecd.org/els/social/inequality/emergingeconomies

OECD Employment Outlook 2012

ISBN 9789264166684

Divided We Stand – Why Inequality

Keeps Rising

ISBN 9789264111639

Tackling Inequalities in Brazil, China,

India and South Africa

The Role of Labour Market and Social

Policies

ISBN 9789264088351

www.oecd.org/china

50

Strengthening SKiLLS and eMpLoYaBiLitY

The OECD analyses and disseminates best practices on the

design, implementation and evaluation of initiatives to promote

entrepreneurship (including women’s entrepreneurship), the

growth of small and medium-sized enterprises (SME) and

local economic development and employment. China has

participated since 2000 in the related policy dialogue, the OECD

Bologna Process on SME and Entrepreneurship Policies. This

Process brings together high-level policymakers from OECD

countries and emerging economies to debate policy successes

and failures, promote co-operation, and design a roadmap in the

area of SME and Entrepreneurship Policy.

China also plays an active role in the Initiative on Employment

and Skills Strategies in Southeast Asia (ESSSA), conducted jointly

by the OECD Local Economic and Employment Development

Programme (LEED), the International Labour Organisation (ILO) and the Association of Southeast Asian Nations (ASEAN). The Initiative

aims to help policymakers design effective cross-cutting (multidisciplinary) policies, develop adequate governance mechanisms and

strengthen government capacities to implement effective local employment and skills development strategies.

skills.oecd: transforming better skills into better outcomes

SKILLSPATHWAYS

ASIA

PAKISTANPHILIPPINESNEPAL

THAILANDHONG KONG

MALAYSIAJAPAN AUSTRALIA

MONGOLIAPR CHINA

KOREA

VIETNAMNEW ZEALAND

CAMBODIA

INDIA

eMPLOYMENTINTEGRATION

PARTNERSHIPSTRAININGS

DESIGN GREEN

ENTERPRISES

JOBS

SMES

SINGAPORE

Skills Development Pathways in Asia

OECD Local Economic and Employment

Development (LEED) Working Papers

2012/12

Skills Development Pathways in Asia

Job-rich Growth in Asia

Strategies for Local Employment, Skills

Development and Social Protection

ISBN 9789264110977

www.oecd.org/china

51

Î www.oecd.org/cfe/leed/employmentesssa.htm Î www.community.oecd.org/community/esssa

In 2011, the 4th ESSSA experts’ meeting held in Shanghai and jointly organised with the Asian Development Bank Institute and the

Asia-Pacific Finance and Development Centre of China’s Ministry of Finance, discussed integrated approaches to skills strategies and

their design and financing. In 2012, the ESSSA initiative held several meetings in the region. A highlight is the ADB-OECD workshop on

‘Does Asia need a unique model for skills development?’ held in Manila on 10th December 2012. The 2012 ESSSA report focused on

Skills Development Pathways in Asia and discussed skills development policies in 15 countries, presenting innovative data in how the

Asia-Pacific region is moving towards the knowledge economy.

www.oecd.org/china

52

FoStering SKiLLS throUgh edUCation and training

The OECD helps policymakers foster human and social capital skills, and

leverage education and training systems for dynamic and sustainable

economies. Through comparative data and policy analysis, it strives to

promote efficient and effective systems and improve learning outcomes.

China aims to make senior high school education universal by 2020. It has

placed an emphasis on learning quality and will participate in the 2015 Round

of the Programme for International Student Assessment (PISA), which

compares learning performance in the areas of reading, mathematics and

science, and involves half a million 15-year olds in 70 economies. Some parts

of China have already participated in previous rounds of this three-yearly

exercise.

China is also included in the annual Education at a Glance flagship

publication, which is also available in Chinese. The indicators provide deep

insights into how education systems operate, how much is spent on education, who participates in education and what the outcomes

of education are.

“China follows the principle of promoting educational reform through opening up and advancing educational development through reform.

We are willing to have enhanced exchange and cooperation with OECD, draw reference from its advanced educational concept, models and evaluation methods, and keep advancing and improving China’s education through innovation.”

Yuan Guiren Minister of Education

www.oecd.org/china

53

Î www.oecd.org/education Î www.pearsonfoundation.org/oecd/

Education at a Glance 2012

OECD Indicators

ISBN 9789264177154

OECD Reviews of Vocational Education

and Training: A Learning for Jobs

Review of China 2010

ISBN 9789264113749

Better Skills, Better Jobs, Better Lives

A Strategic Approach to Skills Policies

ISBN 9789264177338

Through independent reviews, the OECD has examined China’s tertiary education and higher education systems, as well as its

vocational education and training system in upper secondary schools. The 2010 Learning for Jobs review highlighted strengths and

challenges in China’s vocational education and training system.

www.oecd.org/china

54

SUrFing a new waVe oF internationaL Migration

The OECD collects data on international migration flows and stocks through its International

Migration Database, and also analyses recent international migration trends and policies in OECD

countries through its annual International Migration Outlook. The 2012 edition devotes a special

chapter to the changing role of Asia in international migration. China has long been the principal

country of origin of immigrants to OECD countries. In 2010, 508 000 Chinese immigrated to OECD

countries, representing nearly one in ten migrants. More than 450 000 Chinese were studying in

OECD countries in 2009, comprising 18% – the largest share – of international students. Skilled

labour migration in many OECD countries draws heavily on China.

The Database of Immigrants in OECD Countries (DIOC), currently being updated with data for

2010/11, provides comprehensive information on a broad range of demographic and labour market

characteristics of immigrants from China living in OECD countries. International Migration Outlook

2012

ISBN 9789264177208

www.oecd.org/china

55

Î www.oecd.org/migration Î www.oecd.org/migration/dioc

Managing Migration to Support

Inclusive and Sustainable Growth

ISBN 9784899740361

Since 2011, the OECD, Asian Development Bank Institute (ADBI) and the ILO have jointly organised

an annual Roundtable on Labour Migration in Asia to discuss trends, policies and specific issues in

migration. The Roundtable brings together representatives from China and about 15 other Asian

countries – both origin and destination countries of labour migrants. OECD and ADBI publish a

report covering key regional issues and migration statistics for each country.

www.oecd.org/china

56

proMoting eFFeCtiVe ConSUMer poLiCY

The OECD helps governments around the world to design effective consumer policies to support

the development of principles which promote efficient, transparent and fair global markets for

consumers. OECD work in this area currently focuses on e-commerce, product safety, and dispute

resolution and redress issues. In 2010, the Organisation published a Consumer Policy Toolkit, which

provides recommendations on how 12 principle policy instruments can best be used to improve

consumer policy making.

China has been actively involved in OECD work on consumer product safety. The country’s General

Administration of Quality Supervision, Inspection and Quarantine has participated in a number of

OECD events and has expressed interest in working with the OECD Working Party on Consumer

Product Safety (WPCPS) to enhance information sharing with OECD and other non-member

economies. The WPCPS launched a web-based global database in October 2012 which draws

together information on product recalls worldwide. A second database has been developed to help

track policy and regulatory developments; a third will provide a platform for sharing information on injuries. Co-operation between

the OECD and China on these fronts will help enhance co-operation and policy responses when safety concerns arise.

Î www.oecd.org/sti/consumer-policy Î www.oecd.org/sti/consumer-policy/productsafety

Consumer Policy Toolkit

ISBN 9789264079656

www.oecd.org/china

57

indUStrY and innoVation

BUiLding a KnowLedge-BaSed eConoMY

The OECD work on science, technology and innovation (STI)

develops evidence-based policy advice on the contribution of

science, technology and innovation to well-being and economic

growth.

China is presently implementing its mid-term strategy to become

an innovation-based economy and enhance its participation in

global value chains, and the OECD is working closely with China to

contribute to policy development in these areas. For more than a

decade, China has been engaged in the OECD STI work through its

Participant status in the Committee for Scientific and Technological

Policy and through its participation in the work of other Committees,

and in projects on global value chains and knowledge-based capital.

Cao Jianlin, Vice Minister of China’s Ministry of Science and Technology, and Richard Boucher, Deputy Secretary General of the OECD, at the opening ceremony of the High-Level Roundtable on Innovation Policies jointly organised by the OECD and China’s Ministry of Science and Technology, in celebration of the 10th anniversary of China’s observership to the OECD Committee for Scientific and Technological Policy (Beijing, October 2011).

www.oecd.org/china

58

Î www.oecd.org/sti/stpolicy Î www.oecd.org/sti/ict Î www.oecd.org/sti/industryandglobalisation


De Backer, K. and N. Yamano (2012), “InternationalComparative Evidence on Global Value Chains”, OECDScience, Technology and Industry Working Papers,2012/03, OECD Publishing.http://dx.doi.org/10.1787/5k9bb2vcwv5j-en

OECD Science, Technology andIndustry Working Papers 2012/03

International ComparativeEvidence on Global ValueChains

Koen De Backer, Norihiko Yamano

OECD Science, Technology and Industry

Outlook 2012

ISBN 9789264170322

International Comparative Evidence on

Global Value Chains

OECD Science, Technology and Industry

Scoreboard 2011

Innovation and Growth in Knowledge

Economies

ISBN 9789264111653

www.oecd.org/china

59

Meeting tranSport inFraStrUCtUre needS

In November 2011, China became the 53rd member of the International

Transport Forum (ITF), an intergovernmental organisation based at the

OECD that helps shape the transport policy agenda on a global level.

A special feature of the ITF’s annual Summit in 2012 was China’s membership

of the Forum, which was celebrated in the presence of Vice Minister of

Transport Feng Zhenglin. Vice Minister also participated in a Ministers’

Roundtable during the Summit. High level representation from China is also

anticipated at the 2013 Summit, which will focus on Funding Transport and

consider the rapidly growing demand for high-quality transport networks

and services, the need for continued expenditure and investment in the

context of scarce public funds and for securing private sector investment for

long-term trade, growth and prosperity.

“ITF is one of the most influential intergovernmental organisations in the transport sector in the world. It serves as an important platform for

the transport ministers to explore issues critical to the present situation and the future direction of the sector (…) China, as one of the rising economies in the world, values the significance of ITF, and we will continue to work closely with other members to make due contributions to the future direction of ITF.”

Feng Zhenglin, Vice Minister of Transport, at ITF 2012 Annual Summit, Leipzig, Germany

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60

In November 2012, ITF participated in the expert workshop on “Prospects for National-Level Programmes and Funds for Sustainable

Urban Transport in China”, organised by the China Urban Sustainable Transportation Research Center of the Ministry of Transport,

and other partners. The ITF worked to identify strategies to overcome barriers to urban transport financing in China.

China’s transport statistics are being progressively integrated into the ITF’s databases and policy analysis.

Î www.internationaltransportforum.org

Transport OutlookSeamless Transport for Greener Growth

International Transport Forum2 rue André Pascal75775 Paris Cedex 16FranceT +33 (0)1 45 24 97 10F +33 (0)1 45 24 13 22 Email : [email protected]: www.internationaltransportforum.org

Transport OutlookSeamless Transport for Greener Growth

The mobility projections in this Transport Outlook indicate that global passenger transport volumes in 2050 could be up to 2.5 times as large as in 2010, and freight volumes could grow by a factor of four. Emissions of CO2 grow more slowly because of increasing energy effi ciency, but may nevertheless more than double.

The projected evolution of mobility depends on income and population growth, and on urbanization. The relation between framework conditions and mobility is uncertain and not immutable and the Transport Outlook examines a number of plausible policy scenarios including the potential eff ects of prices and mobility policies that are less car-oriented in urban settings. In this scenario, two-wheeler use in particular could contribute signifi cantly to mobility growth in non-OECD regions. Low car ownership with increased two-wheeler use and somewhat lower overall mobility results in much lower emissions of CO2.

More generally, the future growth of global mobility and of CO2 emissions depends strongly on the development of urban mobility. Mobility policies can slow down CO2 emission growth but cannot by themselves stop it; energy technology is the key to actually reducing the transport sector’s global carbon footprint.

Phot

o cr

edit

: Joh

n Re

nste

n/Fa

ncy/

Gra

phic

Obs

essi

on

2012

Strategic Transport Infrastructure Needs

to 2030

ISBN 9789264095212

Transport Outlook 2012: Seamless

Transport for Greener Growth

Trends in the Transport

Sector 2012

ISBN 9789282103715

www.oecd.org/china

61

deVeLoping FirSt-CLaSS ShipBUiLding and SteeLMaKing CapaCitY

Shipbuilding

China is now the world’s largest shipbuilder in terms of delivery volumes, and the shipbuilding

industry plays an important role in China’s economic development. Consistent with this, China has

historically been involved in key activities of the OECD shipbuilding programme and, until talks

were terminated in December 2010, had participated actively in negotiations on a multilateral

shipbuilding agreement aimed at bringing normal competitive conditions to the shipbuilding

sector. The OECD has also analysed industry developments in China through its 2008 report The

Shipbuilding Industry in China.

In recognition of China’s importance in the global shipbuilding market, the OECD’s Council Working

Party on Shipbuilding (WP6) aims to intensify its interaction with the country. In 2012, the Ministry

of Industry and Information Technology (MIIT) reaffirmed the value of dialogue with the WP6 and

expressed particular interest in OECD’s work on green growth issues and peer reviews of policies.

Over the next few years, the WP6 will seek to deepen co-operation with MIIT and other relevant agencies on matters of mutual

interest, to help governments deal with the challenges of the shipbuilding industry in a post-crisis world.

Î www.oecd.org/sti/industry-issues

From:OECD Journal: General Papers

Access the journal at:http://dx.doi.org/10.1787/1995283x

The shipbuilding industry in China

Yin-Chung Tsai

Please cite this article as:

Tsai, Yin-Chung (2011), “The shipbuilding industry in China”, OECDJournal: General Papers, Vol. 2010/3.http://dx.doi.org/10.1787/gen_papers-2010-5kg6z7tg5w5l

The Shipbuilding Industry in China

www.oecd.org/china

62

Steel

Over the past decade, the global steel industry experienced an unprecedented expansion in

production capacity, in response to a growing demand from many developing economies entering

a metal-intensive stage of growth like that experienced by OECD countries several decades before.

China has been at the forefront of this development and continues to play a growing role in the

global steel market. The country now accounts for close to 45% of global consumption and

production of steel.

The OECD has a long and fruitful relationship with China, which participates actively in official

meetings and workshops of the Steel Committee. Represented by officials from the Ministry of

Commerce, representatives from the China Iron and Steel Association, and other key industry

stakeholders, China helps shape the international debate on a wide range of issues including steel

trade policies, government support measures for steel, structural changes occurring in the industry,

raw materials availability, and environmental aspects.

China’s steel industry is covered extensively in OECD analyses and publications on steel and raw materials. The Steelmaking Capacity

Developments in Non-OECD Economies (2013 edition forthcoming) provides in-depth information on investment projects taking

place in the Chinese steel industry, including the technologies invested in and their capacity for steel production. In the area of

steelmaking raw materials, China contributed to the 2012 report Steelmaking Raw Materials: Market and Policy Developments,

which includes extensive analysis of China’s mining sector and mineral policies.

Developments in Steelmaking Capacity

of Non-OECD Economies 2010

ISBN 9789264110915

Î www.oecd.org/sti/steel

www.oecd.org/china

63

enhanCing CheMiCaL SaFetY

nanomaterials and Biotechnology

OECD countries are currently working together with the European Commission and China, as well as business and industry, to assess

the safety of nine manufactured nanomaterials which are either on the market already or expected to be used in products in the near

future. China supports OECD’s work on iron nanoparticles.

China also plays an active role in the OECD programme that seeks international harmonisation in the area of regulatory assessment

of novel foods and feeds in order to ensure the protection of human and animal health. Additionally, China participates in the OECD

Working Group on the Harmonisation of Regulatory Oversight in Biotechnology, which aims to ensure that the information and

methods used in risk and safety assessment of genetically engineered crops are as similar as possible, with a view to increasing mutual

understanding and avoiding duplication.

pesticides

China is active in the OECD Pesticides programme, which helps governments co-operate in assessing and reducing the risks

of agricultural pesticides. In particular, China has translated into Chinese the OECD Test Guidelines on Pesticide Residues, and is

disseminating and promoting the use of these Guidelines around the country. China is also working with countries to establish a

framework to improve co-operation among governments on fighting international trade of counterfeit pesticides.

Î www.oecd.org/env/pesticides

Î www.oecd.org/ehs Î www.oecd.org/env/nanosafety

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64

BooSting toUriSM

Tourism is an important industry in the Chinese economy and plays a significant role in expanding

domestic demand and promoting economic growth. The share of tourism expenditure in exports

of goods was 2.9%, while the share of tourism expenditure in exports of services was 28.9%. China

is the third most popular tourism destination in the world, with over 57.6 million overnight visitors in

2011 (up 3.4% from 2010), and also a growing source of visitors for many OECD countries.

The OECD monitors policies and structural changes affecting the development of international

tourism, and promotes the sustainable economic growth of tourism. It regularly invites

representatives from the China National Tourism Administration to participate in meetings of

the OECD’s Tourism Committee. The 2014 edition of the OECD publication Tourism Trends and

Policies will analyse tourism policies and data from over 50 countries, including OECD and EU

members, and major emerging tourism economies such as China.

Î www.oecd.org/cfe/tourism

OECD Tourism Trends and Policies 2012

ISBN 9789264177550

www.oecd.org/china

65

enVironMent and energY

towardS a CLeaner and heaLthier enVironMent

In co-operation with China’s Ministry of Environmental Protection

(MEP), joint activities are carried out in several areas of mutual

interest, such as environmental taxation, enforcement and policies.

The report Innovation, Taxation and Environment, published in

Chinese in 2011, provides insights into the use of environmentally

related taxes and their relationship with innovation. In November

2011, a Memorandum of Understanding was signed between the

OECD and the MEP to identify priority issues of mutual interests and

support China’s efforts to move towards greener economy and build

an “environment-friendly, resource-saving society”.

China has contributed to the OECD/European Environment Agency Database on Instruments Used for Environmental Policies and

Natural Resource Management. A workshop on Measuring Performance of Environmental Enforcement Authorities in China held in

Nanjing in December 2012 discussed the MEP’s pilot programme on enforcement performance measurement. Follow-up activities in

2013-2014 will help the MEP to implement its enforcement performance index.

“We appreciate the OECD’s contributions to strengthening and improving China’s resources and environment management, and we expect that the OECD will continue to provide support to China in moving toward green development.”

Environmental Performance Reviews: Mid-Term Progress Report: China (Document prepared by the Chinese authorities)

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66

Î www.oecd.org/environment

The OECD’s 2007 Environmental Performance Review (EPR) of

China provided 51 recommendations that have been endorsed

by the Chinese authorities. In October 2012, the Chinese

authorities presented to the OECD a report on measures taken

to implement these recommendations as well as a review of

environmental policy initiatives in China since the EPR was

prepared.

The 2012 OECD Environmental Outlook provides analyses of

economic and environmental trends to 2050 and simulations of

policy actions to address the key challenges in four priority areas.

China participated in some of the preparatory meetings for this

report.

The OECD Secretariat has also supported the China Council of International Co-operation on Environment and Development and its

three Task Forces (on Green Economy, China Environmental and Development Outlook and Policy Mechanism towards Implementing

of Environmental targets for the 12th Five-Year Plan).

OECD Environmental Outlook to 2050

The Consequences of Inaction

ISBN 9789264122161

OECD Environmental Performance

Reviews: China 2007

ISBN 9789264031159

www.oecd.org/china

67

CoMBating CLiMate Change

As many other countries, China faces the major challenge

of reducing growth in greenhouse gases emissions while

simultaneously lowering its own vulnerability to the impacts of

climate change. The OECD is assisting countries in their efforts

to find lasting solutions to finance action on climate change,

and to improve the performance of such finance over time. An

OECD Green Investment Policy Framework was developed to

help governments provide the conditions to scale-up private

investment in low-carbon climate-resilient infrastructure. This led

to a 2012 report Towards a Green Investment Policy Framework:

The Case of Low-Carbon, Climate-Resilient Infrastructure; case

studies are being developed to apply the Framework to specific

sectors (e.g. urban transport) and countries (including China).

In 2013, the OECD will also work with China’s National Centre

for Climate Change Strategy and International Co-operation affiliated to the National Development and Reform Commission on

financing instruments to support a sustainable urbanisation.


Agrawala, S. et al. (2010), “Plan or React? Analysisof Adaptation Costs and Benefits Using IntegratedAssessment Models”, OECD Environment WorkingPapers, No. 23, OECD Publishing.http://dx.doi.org/10.1787/5km975m3d5hb-en

OECD Environment Working PapersNo. 23

Plan or React? Analysisof Adaptation Costs andBenefits Using IntegratedAssessment Models

Shardul Agrawala, Francesco Bosello,Carlo Carraro, Kelly de Bruin, Enrica DeCian, Rob Dellink, Elisa Lanzi

JEL Classification: Q50, Q54, Q59


Corfee-Morlot, J. et al. (2012), “Towards a GreenInvestment Policy Framework: The Case of Low-Carbon,Climate-Resilient Infrastructure”, OECD EnvironmentWorking Papers, No. 48, OECD Publishing.http://dx.doi.org/10.1787/5k8zth7s6s6d-en

OECD Environment Working PapersNo. 48

Towards a Green InvestmentPolicy Framework

THE CASE OF LOW-CARBON, CLIMATE-RESILIENT INFRASTRUCTURE

Jan Corfee-Morlot, Virginie Marchal,Celine Kauffmann, Christopher Kennedy,Fiona Stewart, Christopher Kaminker,Geraldine Ang

JEL Classification: G11, G18, O44, Q01, Q54

Plan or React? Analysis of Adaptation

Costs and Benefits Using Integrated

Assessment Models

Towards a Green Investment Policy

Framework: The Case of Low-Carbon,

Climate-Resilient Infrastructure

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68

Î www.oecd.org/env/cc

The OECD also provides evidence and guidance to support the integration of climate change adaptation into policymaking. The 2010

paper Plan or React? Analysis of Adaptation Costs and Benefits Using Integrated Assessment Models provided estimates of the costs

and benefits of climate adaptation for China, as well as other countries and regions.

The OECD and the International Energy Agency (IEA) jointly provide the secretariat for the Climate Change Expert Group on the

United Nations Framework Convention on Climate Change (CCXG). This Expert Group provides analytical input to the international

climate change negotiations. China regularly participates in the CCXG seminars to share their experiences with other countries.

www.oecd.org/china

69

water

The OECD Horizontal Water Programme brings together experts and policy makers with hands-on experience in reforming water

policies. It promotes the design and implementation of integrative water policies which contribute to people’s health, as well as to

green growth. The Programme explores the various mechanisms used by governments to bridge co-ordination and capacity gaps.

It aims to strengthen institutional and regulatory frameworks as well as co-ordination among stakeholders involved in water policy

design and implementation at different levels of government, while assessing water governance arrangements and providing guidance

for effective public action in water policy.

Furthermore, the Programme puts emphasis on two fronts: the economic dimensions of water management (e.g. foregone benefits

of water misallocation; potential economic, social and environmental benefits of improved water management); and the design and

choice of economic instruments to allocate water where it is most needed, to signal scarcity, promote low-cost options, and generate

revenues to support water policies and investments.

Opportunities for further co-operation on these and related issues are being explored with the Chinese Ministry of Environmental

Protection and the Ministry of Water Resources.

Î www.oecd.org/water

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70

proViding CLean and aFFordaBLe energY

The International Energy Agency (IEA), a sister organisation of the OECD, acts as an energy policy

advisor to 28 member countries in their effort to ensure reliable, affordable and clean energy

for their citizens. Work focuses on diversification of energy sources, renewable energy, climate

change policies, market reform, energy efficiency, development and deployment of clean energy

technologies, and outreach to the rest of the world, especially major consumers and producers of

energy like China, India, Russia and the OPEC countries.

In 1996, China and the IEA concluded a “Memorandum of Policy Understanding in the Field of

Energy”. The key objectives of the IEA-China co-operation are to assist China in its transition to a

more-sustainable energy economy, to engage China more closely in the work of the IEA and the

exchanges it facilitates on energy policy experience, and to provide a greater understanding among

OECD countries of China’s energy system.

At the IEA’s Ministerial meeting of October 2011, China signed an updated Joint Statement with the IEA, reflecting the need to

work for a better common future for energy security, economic growth and environmental sustainability. In the past year, major

collaborative initiatives have provided support to China’s efforts to advance reform of the natural gas market and to explore the

feasibility of a carbon emissions trading system.

Gas Pricing and Regulation

China’s Challenges and IEA Experience

PARTNER COUNTRY SERIES

Gas Pricing and Regulation, China’s

challenges and IEA experiences

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71

The IEA is now the world’s most authoritative source of energy market analysis and projections, providing critical analytical insights into

trends in energy demand and supply and what they mean for energy security, environmental protection and economic development

with its annual World Energy Outlook and medium-term oil, gas, coal and renewable energy market outlooks, and its monthly Oil

Market Report.

Î www.iea.org

The views expressed in this IEA Insights paper do not necessarily reflect the views or policy of the International Energy Agency (IEA) Secretariat or of its individual member countries. This paper is a work in progress and/or is produced in parallel with or contributing to other IEA work or formal publication; comments are welcome, directed to [email protected] or [email protected].

© OECD/IEA, 2012

©OEC

D/IEA

2012

Policy Options for Low‐Carbon Power Generation in China

Designing an emissions trading system for China’s electricity sector

International Energy Agency:

Richard BARON, André AASRUD, Jonathan SINTON and Nina CAMPBELL

Energy Research Institute:

JIANG Kejun, ZHUANG Xing

Policy Options for Low-Carbon Power

Generation in China

World Energy Outlook 2012

ISBN 9789264180840

Medium-Term Oil Market Report 2012

Market Trends and Projections to 2017

ISBN 9789264188471

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Î www.oecd-nea.org Î www.gen-4.org

deVeLoping SaFe and qUaLitY nUCLear power

The Nuclear Energy Agency (NEA) is a specialised agency within the OECD that assists its 31 member countries in maintaining and

further developing the scientific, technological and legal bases required for the safe, environmentally friendly and economical use of

nuclear energy for peaceful purposes. With the accession of Russia on 1 January 2013, the Agency’s membership now accounts for

90% of the world’s nuclear electricity generating capacity.

China is very actively pursuing the development of nuclear power as a low-carbon, baseload energy source to meet its electricity

needs along a sustainable development path. The country is currently the largest market for new nuclear builds in the world, but

nuclear energy provides less than 2% of its electricity. As part of the 12th Five Year Plan (2011-2015), new nuclear build will continue to

be developed at a steady pace in order to increase the share of non-fossil fuels.

Following the 2011 Fukushima Daiichi nuclear accident, all NEA member countries using nuclear power carried out comprehensive

safety reviews of their nuclear power plants. In China, similar reviews were organised by the National Nuclear Safety Administration of

the Ministry of Environmental Protection. Advanced international studies are being carried out by the NEA committees and expert

groups in related areas, in particular as regards nuclear safety, nuclear regulation and radiological protection.

China participates on an ad hoc basis in a selection of such NEA activities, and a Joint Declaration on Cooperation is currently under

discussion between the NEA and the Chinese authorities in order to facilitate greater interaction between both parties. China takes

full part in the Multinational Design Evaluation Programme (MDEP) and the Generation IV International Forum (GIF), for which the

NEA acts as the Technical Secretariat.

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participation in oeCd Bodies and related organisations

Member of:

International Transport Forum (since 2011)

Global Forum on Transparency and Exchange of Information for Tax Purposes (since 2009)

Joint IEA/NEA ad hoc Expert Group on Electricity Generating Costs (since 2009)

Participant in:

Programme for International Student Assessment (Shanghai (China), since 2006)

Committee on Fiscal Affairs and its subsidiary bodies (since 2004)

Committee for Scientific and Technological Policy and its subsidiary bodies (since 2001)

adherence to oeCd instruments

Busan Partnership for Effective Development Co-operation (since 2011)

Statement on the Global Financial Crisis and Export Credits (since 2009)

Paris Declaration on Aid Effectiveness (since 2005)

Declaration on Access to Research Data from Public Funding (since 2004)

Declaration on International Science and Technology Co-operation for Sustainable Development (since 2004)

Internationally Agreed Tax Standard (Transparency and Exchange of Information) (since 2004)

Agricultural Schemes and Codes: Official Testing of Agriculture and Forestry Tractors (since 1988)

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participation in oeCd asian networks

OECD/ADBI Roundtable on Capital Market Reform in Asia (“Tokyo Roundtable”)

Asian Roundtable on Corporate Governance

ADB/OECD Anti-Corruption Initiative for the Asia-Pacific

APEC/OECD Cooperative Initiative Regulatory Reform

Network of Senior Budget Officials for Asia

OECD-Asia Network on Corporate Governance of State-Owned Enterprises

OECD/ADBI Roundtable on Labour Migration in Asia

OECD Employment and Skills Strategies in Southeast Asia (ESSSA)

OECD Development Centre-AMRO Joint Asian Regional Roundtable

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www.oecd.org/china

The OECD’s Global Relations Secretariat (GRS) helps coordinate the OECD’s relations with non-Member countries and with other international organisations

Global Relations SecretariatOECD, 2 rue André Pascal

75775 Paris Cedex 16France

www.oecd.org/[email protected]

The Organisation for Economic Co-operation and Development (OECD) is an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy. It provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice

and work to co-ordinate domestic and international policies.

The OECD Member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland,

Turkey, the United Kingdom and the United States of America.

March 2013