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Industrial Policies Highlights of P.R.China for 2003
2004/06/09



I. The research and designing of industrial policies should center on the overall economic restructuring and realization of “New-type Industrialization”.
1.Policy preferences should lean towards the renovation and rejuvenation of traditional industries through the application of state-of-the-art technologies. Focus should be placed on the equipment manufacturing sector and other primary industries.
2.Based on the Policy Initiatives Concerning the Encouragement of Bio-technology Industry Development approved by the State Council, positive policy measures should be put into full implementation to speed up the development of China’s bio-technology industry.
3.The development of new materials industry should be given fresh incentives through more preferential policies.
4.The obsolete production capacity and techniques should be eliminated.
5.The study on “Policies on the Appropriate Exploration and Utilization of Mineral Resources” should be continued and policy measures should be developed on the basis of previous research results.
6.Tourism Industry Policy Guideline has been submitted to the State Council and further study should be conducted in consultation with National Tourism Administration.

II. Responding to the needs of auto industry development, the reform on the auto industry administration should be accelerated.
1.In response to the new issues arising from China’s WTO membership, policy suggestions concerning the auto service trade should be worked out based on the fruits of previous studies.
2.The administration on the market access to vehicles production should be amended. Motorcycles production and automobiles production market access should be regulated. The Vehicle Identification Number (VIN) system should be set up nation wide to regulate the vehicles. The administration of rural transport vehicles should be integrated into the vehicle management.
3.The motorcycle industry should be further regulated through implementation of industry regulations.
4.The study on the improvement of auto fuel quality should be conducted in accordance with State Council ordinance.

III. The work on debt-to-equity swaps should be continued with a focus on the transformation of management of reformed enterprises.
1.Research and coordination should be carried out to seek solution to the new problems in debt-to-equity reform.
2.The enterprises which have undertaken debt-to-equity reforms should establish corporate governance structure as required and shed the unnecessary social obligations of enterprises and lay off surplus labor force.
3.The debt-to-equity reform should include military-industry enterprises and qualified enterprises in Tibetan Autonomous Region.
4.The monitoring of debt-to-equity performance should be strengthened by putting in place information tracking and evaluation system.

IV. The development of industry associations should be encouraged.
1.The reform and development of industry associations should be further explored.
2.The self-construction of industry associations should be promoted to display their functions.
3.The legal construction of industry associations should be paid attention to.
4.With the transformation of government functions, industry associations should improve self-management.

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