World Economy

OECD Underscores China’s Structural Reform

The report observed a steady rise in total spending on research and development in China.The report observed a steady rise in total spending on research and development in China.

A recently released OECD report highlighted the achievements of China’s structural reform, including the continued growth of per capita income, narrowed rural-urban inequality and streamlined administrative procedures.

The growth of China’s income per capita remains high, said the OECD Technical Report on Progress on Structural Reform Under the G20 Enhanced Structural Reform Agenda, Xinhua reported.

GDP growth in the country largely followed developments in labor productivity with the employment ratio being stable at a relatively high level, said the report measuring performance of G20 structural reform as a collective.

“Inequality, as measured by the Gini index, decreased since 2007 and the gap between rural and urban populations has narrowed,” said the report of the Organization for Economic Cooperation and Development.

The report observed a steady rise in total spending on research and development in China since the early 2000s and a gradual increase on national education expenses in the meantime.

In 2015, total national education expenses in China amounted to 3.6 trillion RMB, or $530 billion, with an annual growth rate of over 10%, according to the report.

Meanwhile, it observed that barriers to entry in the country have eased significantly as reforms to simplify administrative procedures in the past couple of years have substantially reduced the burden for new entrants and increased overall efficiency.

“The unification of three licenses in the registration process has substantially reduced the burden on start-ups, be it firms or sole proprietorships,” it said. The report mentioned the Jiangxi province as a pilot in achieving a one-stop shop for start-ups.

By undertaking supply-side structural reforms, the Chinese government will continue to streamline administration, said Chinese Premier Li Keqiang on Thursday on the sidelines of the Annual Meeting of the New Champions 2017, or Summer Davos, in Dalian, China.

“It will continue to delegate its power, widen market access and enhance compliance oversight to create a level playing field,” he said.

“We will ease corporate burdens by reducing taxes and administrative fees to unleash the vitality of the market,” said the premier.

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