Four laws and two judicial interpretations, all aimed to further regulate economic and trade activities, came into force on Jan 1, 2003.
To curb corruption in the process of government procurement, the Standing Committee of the National People's Congress (NPC), China's top legislature, passed a law in June of last year to regulate and improve the efficiency of the use of funds for procurement, safeguard national and public interests, protect the legitimate rights of various parties participating in procurement and prevent corruption.
China started to conduct government procurement in 1995. In 2001, the volume reached 65.3 billion yuan (about 7.896 billion US dollars), and the figure was estimated to exceed 100 billion yuan (about 12.09 billion US dollars) in 2002.
A law on promoting small and medium-sized enterprises (SME) has affirmed the role of the SMEs in the national economy, stipulated the duties of government departments in promoting their development and laid down some specific measures for their promotion.
To date, there are more than eight million SMEs in China, which create 75 percent of jobs in cities and towns, and generate 60 percent of the country's total gross industrial output and 40 percent of tax revenue.
The law stipulates that the legitimate investment and relevant profits of the SMEs and their investors should be protected. It also lays down that the government should lessen the limitations on market access for domestic private capital and create a fair and competitive environment for the SMEs in various fields like investment, taxation, the use of land and foreign trade.
By implementing a law promoting clean production, the country will tighten efforts in economic restructuring and technological innovation with clean production being a major factor, encourage the popularization of pollution-prevention technologies and ban a series of polluters and factories making poor-quality products or with poor security conditions.
With China's entry into the World Trade Organization (WTO), the NPC Standing Committee revised the insurance law in June last year to adapt it to the rapid growth of the insurance business in China and to WTO rules.
According to the law, with approval of relevant supervision offices, property insurance companies are allowed to handle the insurance for accidents. It also stipulates more severe punishments on those insurance agents and policyholders who cheat on their insurance.
To fulfill China's promises on WTO entry, the two judicial interpretations have, for the first time, designated the duties of courts in handling administrative cases involving the anti-dumping and anti-subsidy actions taken by government departments. They also protect the legitimate right and interests of parties involved in such actions.
In China, judicial interpretations are issued by the Supreme People's Court, the final court of the country, and judicial interpretations have the same force and effect as laws made by the NPC or its Standing Committee.
(Xinhua News Agency January 2, 2003)
