- David Burton, Wanda Tseng, Kalpana Kochhar, Hoe Khor, and Dubravko Mihaljek
- Published Date:
- September 1994
© 1994 International Monetary Fund
Library of Congress Cataloging-in-Publication Data
Economic reform in China: a new phase / Wanda Tseng . . .[et al.].
p. cm.—(Occasional Papers (International Monetary Fund),
ISSN 0251-6365; 114)
Includes bibliographical references.
1. China—Economic Policy—1976- 2. Foreign exchange—China.
3. Monetary policy—China. 4. Fiscal policy—China. I. Tseng, Wanda. II. Series.
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The following symbols have been used throughout this paper:
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist.
– between years or months (e.g., 1991–92 or January–June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 1991/92) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This Occasional Paper discusses China’s current reform program to transform its economy to a fully market-based system; the strategy for this new phase of reform was adopted during the Third Plenum of the Fourteenth Central Committee in November 1993. The paper is based largely on research papers prepared in connection with the 1993 Article IV consultation with China, updated to reflect developments through mid-1994.
The authors would like express their appreciation for the assistance provided by the Chinese authorities during the consultation and subsequent discussions. They also wish to thank Yusuke Horiguchi for valuable comments and support and Douglas Scott for insightful views, especially on the foreign exchange balancing requirement of foreign-funded enterprises. The technical assistance work of colleagues in the Fiscal Affairs Department, Monetary and Exchange Affairs Department, and the Statistical Department of the IMF is also gratefully acknowledged. Anjali Kumar of the World Bank and Mingwei Yuan, a summer intern in 1993, contributed to the sections on the investment system and SOEs, and the empirical work on China’s import demand, respectively. Thanks are also due to Viola Chou for research assistance and Rosanne Heller for editorial assistance, and Prabha Job and Graciela Martin for secretarial assistance. Tom Walter of the External Relations Department edited the paper for publication and coordinated production.
The opinions expressed in the paper are those of the authors and should not be construed as representing the views of the IMF, its Executive Directors or other IMF staff members, or the Chinese authorities.
Glossary of AbbreviationsABC
Agricultural Bank of ChinaADF
augmented Dickey-Fuller testBOC
Bank of ChinaCCP
Chinese Communist PartyCFETS
China Foreign Exchange Trading SystemCRS
contract responsibility systemCSRC
China Securities Regulatory CommissionFECs
foreign exchange certificatesFFEs
foreign trade corporationsGATT
General Agreement on Tariffs and TradeICBC
Industrial and Commercial Bank of ChinaITICs
international trust and investment companiesMOFTEC
Ministry of Foreign Trade and Economic CooperNBFIs
nonbank financial intermediariesNTS
National Tax ServiceOLS
ordinary least squaresPBC
People’s Bank of ChinaPCBC
People’s Construction Bank of ChinaRCCs
rural credit cooperativesSAEC
State Administration of Exchange ControlSDB
State Development BankSICs
state industrial corporationsSOEs
State Planning CommissionSTB
State Tax BureauTICs
trust and investment companiesUCCs
urban credit cooperativesVAR