1-2 Evaluation and Adjustment of China's Industrial Policies Project Scope and Relationship to China's Agenda 21 This project reviews Ch ina's industrial policies in light of the requirements of sustainable development and evaluates the requirements for any policy changes and for enforcement of legislation. It is based on programme areas 2A, 2B, the overall strategy for China's sustainable development, and is also related to programme areas 3A, 4A, 4B, 4C, 6A, 11, 12 and 13B of China's Agenda 21. 1 . Background Sociai and economic development is a top priority for China. Eradicating poverty and meetings the needs of poople will require economic development that is environmentally sustainable for economic growth will continue to place greater stresses on the environment. Harmonizing economic growth and the environment can only be achieved by a balanced mix of regulatory and market mechanisms, and by the effective enforcement of legislation and laws. As the industrial sector will continue to be the engine for China's economic development, it is important that the utilization of natural resources and protection of tlie environment become part of the country's industrial policies. Thus it is necessary to review China's industrial policies andto evaluate them in the light of the requirements of sustainable development. The Cbinese government has worked out a series of special policies for industries since the late 1980's. These policies are aimed at developing infrastructure and the basic industry, guiding foreign investment and foreign trade, and establishing large enterprise groups. At present, China is reviewing and formulating new industrial policies which are mainly divided into two categories` directional industrial policy (for example, the guidelines for national industrial policy in the 1990's ) and differentiated industrial policy for specific industries (for example, the automotive industry, communication and transport, construction material, electronic industry, and telecommunications industry). These pol icies embody the principle of protection of the environment and promotion of the rational util ization of resources. In order to strengthen the formulation of China's industrial policies, further research needs to be carried out to provide the basis for preparing, enacting and enforcing these policies. 2.Objectives Long-term Objectives To evaluate China's industrial policy and its achievements,and to conduct comparative studiets with other countries' development models, to provide the basis for fi)rmulating and ad.justing China's industrial policies for medium and long-term planning. Immediate Objectives To review China's previous industrial policies, To research criteria for selection of China's industrial policies and its production patterns; To evaluate the enforcement system for implementing China's industrialpolicies. To establish a technical support system for adjustment ofindustrial policy, Capacity building of industrial policy makers and other personnel. 3. Activities 3.1 Review and evaluation of China's current industrial policies: Research on the theoretical and methodological framework for China's industrial policies. Investigation of China's current industrial policies and the achievements of industrial development. The major objectives of industrial policies in the 1990s include: - strengthening the agricultural base; - enriching the social capital; - developing pill ar industries; - adjusting trade structures; - looking at the impact on the environment and resources; - analysis of advantages for exporting by forming specialized divisions; - reform of industries with high energy and material consumptions. Evaluation of the impact of China's present industrial policies on sustainable patterns of production that minimize the impact on the environment and rational utilization of natural reSources. Studies on implementation mechanisins of industrial policies and analysing factors affecting the results of these policies. Studies on consuinption patterns of urban and rural residents, Capacity of retsources and environment to cope with the stresses of economic activities, with emphasis on primary energy supply, land, water resources, oil production, population pressure. Supply of capital and technology and their influence on adjustment ofindustrial policies. Impact of open trading systems on a4justinent of industrial pol icies. Analyses of regional differences on industrial development. These include: - resources and environmentalconditions in coastal and inland areas; - rational development and utilization of local resources; - income dilTerences between coastal and inland areas; - balancing the nee(Js of different regions; - role of central government in promoting development in poor areas. Urbanization, economic and social development in rural areas and the influence on adjustment of industrial policies. Market mechanisms and adjustment of industrial organization policy The duration of this activity will be two years. 3.2 Choice of Ch ina's sustainable developinent model Macro-analysis of d ifferent development models. International comparison of different models. Prospects for foture world economic environinent and its impact on China's development model. The duration for this activity will be one year. 3.3 Research and design of enforcement of industrial policies. Measures for implementation of existing industrial policies aiid their evaluation. The 1990's nationai industrial policies are based on market forces and stress economic means, such as finance, tax, banking, economic legislation, aiid accounting methods for valuing resources and environment. Ecouomic system reforming and macro-environment changes Policies for future industrial structure adjustment. These include: - direct government investment; - subsidy (including cutting those unfavourable to enviromnent and resource proteciion); - tax rate and tax rate difference; - environment and resource taxes; - diversified capital infiow; - legislation on industrial development, environment improvement and resources protection and enforcement of these laws. The duration of this activity will be one year. 3.4 Establishment of a supporting system for decision-making for industriai policies. Standardization of working rules and methods for industrial policies. Study test and feedback system for industrial policies. Development of a data base for decision-making on industriai policies. This includes the establishment of a national information network; analysis aiid release of related information; practical and regulatory use of input-output table. The duration of this activity will be two years. 3 .5 Training One-year international exchange and training: 5 persons. Threemonth international training: 10 persons. Onesmonth international training: 20-30 persons. Foreign experts to China presenting lectures and demonstrations: 5 persons each year aiid . total 10 persons. The duration of this activity will be two years. This project will be organized by the State Planning Commission and executed under the Department of Long-term Planning and industrial Policy. 4. Inputs The implementation of the above activities will require US $ 4.0 millioiis, US $ 2.0 million of which will come from international aid and US$2.0 million from domestic sources (Contribution from Long-term Planning and Industrial Policy Department of State Planning). Budget (in million US dollars) Activity Chinese Input External Grant Total 3.1 0.40 0.35 0.75 3.2 0.35 0.25 0.60 3.3 0.20 0.25 0.45 3.4 0.35 0.25 0.60 3.5 0.40 0.40 0.80 3.6 0.30 0.50 0.80 Total 2.00 2.00 4.00 Text Browser Utilities: [Back ACCA21 Home] For more information about ACCA21 contact: web@acca21.edu.cn Address: 109 Wanquanhe Road, Haidian District, Beijing 100089, People's Republic of China Telephone: +86-10-82636193, +86-10-82634400 Ext.2401 Fax: +86-10-82636192