Although the China (Shanghai) Pilot Free Trade Zone (FTZ) administration announced its organizational structure soon after the zone launched in September, it has not yet publicly released the responsibilities of its ten departments.
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In January, the International Monetary Fund projected that China’s GDP would grow 7.5 percent in 2014. But how China hits that target has important implications for the future the country’s economy, says David Dollar, a senior fellow at the Brookings Institution’s John L. Thornton China Center.
Two key ministries responsible for China’s economic and industrial development have said they would advance policies to promote a more sustainable, innovative, and technologically advanced economy.
China’s financial regulators in recent months have given the private sector a greater role in banking, licensing new private banks and enlarging the scope of innovative financial services like Internet banking. Such shifts present challenges to traditional banks, but they could also provide opportunities for private capital owners and companies seeking financing.
Following the first session of the 12th National People’s Congress in March 2013, Premier Li Keqiang announced that reforming China’s administrative approval system is a top priority, and vowed to eliminate or decentralize around 500 items during his administration.
Chinese government agencies have recently taken steps to advance economic reform, from establishing a high-level leading group headed by President Xi Jinping to releasing new plans for financial and administrative licensing changes in the Shanghai Free Trade Zone (FTZ).
The National Development and Reform Commission (NDRC) issued new guidelines in December that trim its role in foreign investment approvals, but not in sectors that currently have foreign investment ownership restrictions.
Describing corruption as a “disease that calls for powerful drugs,” Chinese President Xi Jinping promised members of the Central Commission for Discipline Inspection (CCDI) an even stronger crackdown on graft when he addressed the group on January 14.
In a sign that China’s leaders are increasingly serious about economic reform, the Ministry of Commerce (MOFCOM) and the Ministry of Finance (MOF) released work plans for the next year that prioritize easing restrictions on
Companies investing in any market must deal with administrative licensing—or getting official government approval—for everything from selling products to building new manufacturing facilities. But in China, the extensive, complex, and at times onerous licensing system at all levels of government can result in significant delays, added costs, and lost revenue for companies.
