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By Jan Joost Teunissen

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Extra resources for China's role in Asia and the world economy: fostering stability and growth

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Government regulations rather than government administrative instructions can also make the SOEs accomplish some social goals. Other reforms in state sectors should involve the ongoing dissolution of state-monopolised industries (public utilities in particular), as has recently occurred in the power industry, telecom industry and aviation industry, and the continuous retreat of SOEs from competitive industries. Social Security Reform A basic social security system is gradually taking shape in China.

Government Reform China has proposed a new government reform package aimed at shifting the government’s role in line with the market system and China’s WTO accession. As China’s market economy develops, the government will be required to focus more on management at the macro-level and less on concrete cases and details. org Gang Fan and Xiaojing Zhang 29 the economy in many ways in order to conform to international standards. The State Council has scrapped the approval formalities on more than 1000 items since China’s entry into WTO.

Or they may wonder what would be best, gradualism or shock therapy? These questions remain open. References China Reform Foundation (2001), The Barrier and Supply of Institutions: A Research on Non-State Economy’s Development, Shanghai Far East Press (in Chinese). The Economist (2003), “China’s Financial Market: Bank on Growth”, January 18th-24th. Fan, Gang (1994), “Incremental changes and dual-track transition: understanding the case of China”, In: Economic Policy, December. ––––– and Wing T. Woo (1996), “State Enterprise Reform as a Source of Macroeconomic Instability: The Case of China”, In: Asian Economic Journal, Vol 10, No.

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