active with the people's republic of china

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CHINAACTIVE WITHTHE PEOPLES REPUBLIC OF


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China and the OECDA mutually beneficial partnership

Chinas economy has continued to grow strongly in recent years despite

a difficult international environment. Keeping up this performance in the

future, and ensuring that the benefits are enjoyed by all the population,

will require a new round of reforms in critical areas such as financial and

labour markets, land use, and the tax system, among many others.

The countrys new leadership has shown its determination to step up reforms and to further integrate China inthe global economy. Rebalancing is ongoing, externally and internally, paving the way for a more consumption-

led growth, and a new growth model based on higher value added products and innovation, as China catches up

with the global technological frontier. Considerable efforts have also been made to improve energy efficiency and

raise environmental standards. However, challenges remain and China is now at a crossroad to advance the reforms

needed to ensure broad, sustainable and equitable growth in the years to come.

The OECD continues to strengthen its cooperation with China in support of the countrys reform agenda.

Achieving prosperity through economic and social development has indeed been at the heart of our work since the

foundation of the Organisation more than fifty years ago. Together with our Member and Partner countries, we workto build a stronger, cleaner and fairer world economy. By bringing together the expertise of a wide range of countries

and policy communities, our evidence-based analysis and the accumulated experience of our Members and Partners,

we aim at informing and improving policy making in countries around the world, to the benefit of all.

The OECD has relevant expertise in many policy areas which feature as priorities for the Chinese leadership,

such as structural reform, social inclusion, urbanisation, education, green growth and good governance. As a major

economy and a source of innovative policy practices, China is a Key Partner to the OECD. The participation of Chinese

government officials in OECD Bodies and horizontal projects has increased over the years, enriching the policy debatewith new perspectives. China itself benefits from its active participation in the work of the Organisation, in areas such

as taxation and fiscal affairs, transport, science and technology and innovation policy.

The OECD takes pride in its co-operation with China. Today, with Chinas increasing importance as a dynamic

engine for the world economy, this partnership is more relevant than ever. We look forward to continuing to

strengthen and deepen this partnership. This brochure provides just a glimpse of the scope, depth and richness of our

joint work and highlights the great potential that lies ahead for our future cooperation in order to design, promote

and implement BETTER POLICIES FOR BETTER LIVES.

ANGEL GURRA, OECD Secretary-General


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CONTENTS. 1

EMPLOYMENT AND SOCIAL DEVELOPMENT 31

Seeking Best Practices of Social and Health Policies 32

Improving the Labour Market Prospects of Youth 34

Supporting SME Development and Strengthening

Local Skills 35

Fostering Skills through Education and Training 36

Promoting Effective Consumer Policy 37

INDUSTRY AND INNOVATION 38

Building a Knowledge Economy 39

Meeting Transport Infrastructure Needs 40

Developing First-Class Shipbuilding and Steel Capacities 41

Enhancing Chemical Safety 43

Boosting Tourism 45

ENVIRONMENT AND ENERGY 46

Towards a Cleaner and Healthier Environment 47

Combating Climate Change 48

Water 49

Providing Clean and Affordable Energy 50

Developing Clean and Safe Nuclear Power 51

ANNEXES

Participation in OECD Bodies and Related Organisations 52

Adherence to OECD Instruments 52

Participation in OECD Asian Networks 52

THE OECD AND CHINA 2

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH 8

Maintaining Economic Resilience 9

Supporting Green Growth Initiatives 10

Promoting Regional Development and Urbanisation 11

Increasing Agricultural Productivity and Food Security 12

Promoting Development and Effective

Cooperation Worldwide 13

Better Data for Better Policies 15

SMOOTH FUNCTIONING OF MARKETS 16

Enhancing Cooperation on International Investment 17

Promoting Trade and Upgrading in Global Value Chains 18

Regulating Export Credits 19Promoting Sound Competition 20

Developing a Robust Financial System 21

Improving Financial Education 22

PUBLIC AND CORPORATE GOVERNANCE 23

Regulatory Reform and Administrative Simplification 24

Budgeting and Public Expenditures 25

Improving Tax Transparency and Compliance 26

Fighting Transnational Corruption 28

Enhancing Public Sector Integrity 29

Raising the Bar on Corporate Governance 30

CONTENTS

Contents


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2. ACTIVE WITH THE PEOPLES REPUBLIC OF CHINA

The OECDs Global Relations strategy seeks to make the Organisation a more effective and

inclusive global policy network, in particular through the close cooperation with five Key

Partners (Brazil, China, India, Indonesia and South Africa) and other dynamic emerging

economies worldwide. The OECD and China have a longstanding and mutually beneficial

relationship that has steadily developed since the mid-1990s.


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China participates in the substantive work of many of the OECDs specialised

Committees, where senior officials from member and partner countries meet to

advance ideas and review progress in specific policy areas, such as economics,

trade, science, employment, education or financial markets. China is Associate,

i.e. participating on equal footing with OECD members, in the Project on BaseErosion and Profit Shifting (BEPS), International Transport Forum and the Global

Forum on Transparency and Exchange of Information for Tax Purposes. China is also

Participant in the Programme for International Student Assessment, the Committee

on Fiscal Affairs and its subsidiary bodies as well as the Committee for Scientific and

Technological Policy and its subsidiary bodies.

Moreover, information on China is now systematically incorporated in many of

the OECDs statistical databases, for instance the OutlooksandAt a Glanceseries.

Country-specific Policy Reviews of China such as the biennial Economic Surveysare

regularly produced, which allows the OECD to deepen its understanding of Chinas

policy environments and integrate its perspectives and innovative practices. China

also enjoys the opportunity to participate in all stages of discussions of key OECD

projects, especially those related to G20 mandates such as the BEPS project.

THE OECD AND CHINA. 3

JWang Jun, Commissioner of the Chinese State Administration of Taxation, and Angel Gurra, Secretary-General of the OECD, after Chinas signingof the Convention on Mutual Administrative Assistance in Tax Matters, August 2013, in Paris.

THEOECDANDCHINA
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The Ministry of Commerce (MOFCOM) is the key interlocutor coordinating the

cooperation between the OECD and the Chinese Government, with teams based

respectively in the Department of International Trade and Economic Affairs inBeijing, and in the Chinese Embassy in France. Over the years, it has played an

important role in developing and guiding this cooperation, which involves a broad

range of ministries and agencies. On the OECD side, the Global Relations Secretariat

coordinates OECDs relations with China and other non-members, as well as other

international organisations.

In November 2013, a joint OECD-MOFCOM Seminar on China-OECD Cooperation

was held in Beijing. 26 ministries and agencies were represented, as well as 18 OECD

countries and the EU. During the seminar, representatives of the MOFCOM, the

Office of the Central Leading Group for Financial and Economic Affairs, the Ministryof Education as well as the Development Research Centre of the State Council

expressed appreciation for the fruitful cooperation with the OECD.

OECD plays an influential role internationally in economic and social policy research. Its research

results, along with experiences of its member countries, provide valuable references for China in

deepening reform, further opening up and participating in global economic governance. In recent years,OECD has worked together with more partners and in more fields. It has not only extended its bilateral

communication and cooperation with non-members, but also actively engaged in global affairs. I believe

China and OECD hold great potentials in dialogues and cooperation. We can further win-win cooperation

on such issues as trade, investment, global value chain and green growth.

WANG SHOUWEN, ASSISTANT MINISTER OF COMMERCE

Keynote speech at the Seminar on China-OECD cooperation, 7 November 2013, in Beijing.



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In order to keep playing a key role

in global governance, the OECD must

adapt to globalisation. In a timewhen emerging countries including

China in particular are playing an

increasing role on the international

scene, we should find ways to work

with these new partners. Our cooperation with China

thus constitutes a priority in the relations between the

Organisation and the rest of the world.

PASCALE ANDREANI

Ambassador of France to the OECD

Chair of the External Relations Committee (which oversees the

Organisations overall global relations)

Chinas partnership with the

OECD has been long and fruitful.

As China enters an exciting newphase of market reforms, and all of

our countries seek more balanced,

inclusive and sustainable economic

approaches, there is scope for a

deepening of the relationship. The OECDs strengths in

domestic structural reform and standard-setting can lead

to enhanced and mutually beneficial cooperation in areas

such as urbanisation, healthcare, corporate governance,tax and green growth. I look forward to the China

Informal Reflection Group contributing to this effort in

2014 and beyond.

NICK BRIDGE

Ambassador of the United Kingdom to the OECD

Chair of the China Informal Reflection Group


THEOECDANDCHINA


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Multilateral Convention on Mutual Administrative

Assistance in Tax Matters, Paris Declaration on Aid

Effectiveness, Declaration on Access to Research Data

from Public Funding, Declaration on International

Science and Technology Cooperation for Sustainable

Development and Agricultural Schemes and Codes:

Official Testing of Agriculture and Forestry Tractors.

Bringing China and other partner countries closer to

OECD instruments is an important priority for the

Organisation. Currently, a concerted effort is being

made to further integrate the perspectives of China

and other partner countries in the OECDs standard-

setting activities. In particular, the participation

of China and other Key Partner countries in the

development of new instruments and the revisionof existing ones is crucial to ensure their global

relevance. For China, a special programme has been

set up, supported and coordinated by MOFCOM, to

facilitate the participation of Chinese officials in the

discussion concerning the revision and development of

OECD instruments.

Instruments: Facilitating international coordinationand diffusion of best practices

The OECD has created several legal instruments,

which derive from the substantive work carried out

in the Organisations Committees. They are based on

in-depth analysis and reporting undertaken within

the Secretariat and cover a wide range of topics from

anti-corruption to environment. These instruments

are of different types. They can be formal agreements

ratified by countries, such as the OECD Conventionon Combating Bribery of Foreign Public Officials in

International Business Transactions, and the Codes of

Liberalisation of Capital Movements and of Current

Invisible Operations. They can be standards and

models, for example the Standards of Transparency

and Exchange of Information for Tax Purposes, or

Recommendations, for example the Recommendation

on Fighting Bid Rigging in Public Procurement. Theymay also take the form of Guidelines, for example the

Guidelines for Multinational Enterprises.

In many cases, norms developed within the OECD

have become standards applicable worldwide.

China currently adheres to five OECD instruments:

http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://www.oecd.org/corruption/oecdantibriberyconvention.htmhttp://www.oecd.org/corruption/oecdantibriberyconvention.htmhttp://www.oecd.org/tax/transparency/exchangeoftaxinformationagreements.htmhttp://www.oecd.org/tax/transparency/exchangeoftaxinformationagreements.htmhttp://www.oecd.org/tax/transparency/exchangeoftaxinformationagreements.htmhttp://www.oecd.org/daf/competition/RecommendationOnFightingBidRigging2012.pdfhttp://www.oecd.org/daf/competition/RecommendationOnFightingBidRigging2012.pdfhttp://www.oecd.org/daf/inv/mne/oecdguidelinesformultinationalenterprises.htmhttp://webnet.oecd.org/OECDACTS/Instruments/ShowInstrumentView.aspx?InstrumentID=157&InstrumentPID=153&Lang=en&Book=http://www.oecd.org/daf/inv/mne/oecdguidelinesformultinationalenterprises.htmhttp://www.oecd.org/daf/competition/RecommendationOnFightingBidRigging2012.pdfhttp://www.oecd.org/tax/transparency/exchangeoftaxinformationagreements.htmhttp://www.oecd.org/corruption/oecdantibriberyconvention.htm


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To cultivate like-mindedness and reinforce ties between

the Chinese administration and the OECD, a Programme

of Temporary Assignments for Chinese Government

Officials to the OECD was set up in 2012, co-financed by

the Gesellschaft fr Internationale Zusammenarbeit (GIZ).

The Programme gives Chinese mid-level officials the

opportunity to take part in the activities of the OECDin Paris for several months, on a specific assignment in

relation to their area of work. Through these stay, the

Chinese officials help their Ministry of origin gain a better

understanding of the OECD and its work, and in return

help the OECD better integrate Chinas perspectives in its

analyses.

In 2012-13, the Programme welcomed 11 Chinese officialsto work on policy issues identified as priority of the

governments 12th Five-Year Plan for National Economic

and Social Development. The assignments have covered a

wide range of policy areas, from urbanisation, innovation,

green growth and environment, to measuring well-being,

governments revenue management, aid effectiveness,

services trade restrictiveness index, and the latest project

on PISA for development. These officials have been sent

from the National Development and Reform Commission,

the Development Research Centre of the State Council,

Ministries of Finance, Commerce, Science and Technology,

Environmental Protection and Transport. They also form

the basis of the OECD-China alumni network.

Working in the OECD through temporary assignment

helps benefit the secondee with regard to gaining

knowledge, building network with experts inside

and outside the OECD, and improving professional

capacity. Moreover, it will contribute to the cooperation

between the OECD and the sending organisation when

the secondee can play a catalytic role in coordination

between both sides.

SHI XIAOYONG, Ministry of Science and Technology

Seconded to the OECD Directorate for Science, Technology and

Industry. Between March 2013 and February 2014

Secondees:OECD-China alumni

THEOECDANDCHINA



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Like many countries in the world, China is confronted with the

challenges of transforming economic growth into sustainabledevelopment that benefits all citizens. Creating resilient economic

structures that can withstand external shocks, building liveable

cities and lowering urban-rural divides, improving agricultural

efficiency, and promoting global stability and prosperity through

effective development cooperation are all important issues for

China in moving towards a more balanced and inclusive growth.

SU


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How can economies increase resilience to resist to

economic shocks or recover quickly from them?

Does structural reform positively impact a countrys

economic resilience?

Through three series of publications, the OECD

examines macroeco nomic and structural policies

and developments, as well as their interaction. TheEconomic Outlook, released twice a year, analyses recent

developments in the global economy and provides

economic projections for 41 economies, including China.

Going for Growthprovides a comparative overview of

structural policy developments and reform priorities for

maintaining strong and stable growth across economies.

The 2013 edition highlighted the gains China could reap

from further education reform, stronger social protectionof migrants, and easier private sector entry in sectors

dominated by state-owned enterprises.

The Economic Surveys, published biennially for each

OECD member and Key Partner country, analyse major

economic challenges in those countries and propose

reform options drawing on international best practices.

The Third Economic Survey of China, prepared incooperation with Chinas State Information Centre, was

released in Beijing in March 2013. It focused on how to

keep growth strong and environmentally sustainable,

with an in-depth analysis of Chinas urbanisation process.

It also examined the need to reform the fiscal policy

framework in order to promote smooth growth while

ensuring governments at all levels can fund essential

public goods.

Maintaining economicresilience

The Surveywas well received by the Chinese authorities

and public, with appreciation expressed publicly by core

State entities such as the Office of the Central Leading

Group for Financial and Economic Affairs, the Research

Office of the State Council and the Central Party School of

China. Moreover, the reforms discussed in this Survey are

needed for China to become a high income country by the

end of the current decade. These include implementingfurther financial sector reforms, strengthening innovation

and competition, fostering inclusive urbanisation,

reforming sub-national finance to promote geographical

equity and facilitate urbanisation, and greening the

economy through concerted efforts. The next Survey,

scheduled to be released in 2015, will focus on human

capital and innovation, as well as on agriculture and rural

development.

www.oecd.org/eco

SUSTAINABLE, BALANCED AND INC LUSIVE GROWTH. 9

USTAINABLEGROWTH

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SURVEY
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The world faces two major challenges: making lives

better for a global population set to rise to around

9 billion by 2050, and addressing environmental

pressures that, if left unchecked, could undermine

growth and development. Implementing green

growth policies can thus respond to these two

challenges.

The OECDs Green Growth Strategyis built upon

three reports Towards Green Growth, Towards Green

Growth: Monitoring Progress OECD Indicatorsand

Tools for Delivering on Green Growth through which

the OECD provides concrete and targeted advice to

member and partner countries as they design and

implement economic, environmental, investment

and innovation policies. When tailoring green growthstrategies to developing countries, the OECD assesses

the links between green growth and poverty reduction,

and identifies the changes needed in sectors such as

agriculture and infrastructure to make these more

supportive of sustainable development.

The OECD participates in the Task Force on Evaluation

and Prospects for a Green Transition Process in Chinaunder the China Council for International Cooperation

on Environment and Development (CCICED). The CCICED,

a high-level advisory body composed of leading experts

in the field of environment and development, has been

providing extensive support for China since 1992 in

building a resource-saving and environmentally friendly

society. So far, The OECD has hosted several expert

seminars with the Task Force members on issues relatedto green growth.

Supporting green growthinitiatives

China is also included in the research project Towards

Green Growth in Emerging and Developing Asia,

which seeks to promote green growth in countries of the

Association of Southeast Asian Nations (ASEAN) in line

with the regions development objectives. The final report,

together with a database of green-growth indicators for

Asian countries, will be released in 2014. Beyond that, the

OECD has also been assessing policies for green growthin Asias fast-growing cities in the project Urban Green

Growth in Dynamic Asia.

www.oecd.org/greengrowth

www.oecd.org/greengrowth/asia.htm


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REPORT

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The OECD examines how territorial development

policies can best promote regional competitiveness

and effective and innovative territorial governance.

The OECD also sets standards to promote good

practices in regional policy.

Urban development is a key policy concern in China,

with the environmental and social sustainability ofcities increasingly prominent on the policy agenda.

In partnership with the China Development Research

Foundation, the OECD produced in 2013 a joint report

on Urbanisation and Green Growth in China, which

focused on how the central government could facilitate

the implementation of urban green growth policies

to meet the objectives highlighted in both the green

development and urbanisation pillars of Chinas 12thFive Year Plan. The 2013 report on The Competitiveness

of Global Port-Citiesincluded two case studies on how

to improve the port performance and governance of

Shanghai and Hong Kong, China.

In cooperation with the National Development and

Reform Commission (NDRC), the OECD is actively

conducting a National Urban Policy Review of China,which is expected to be completed by end-2014. The

Review will consider a wide range of national policies

affecting Chinas urban development.

The OECDs first territorial review of a Chinese region

was devoted to Guangdong Province, in 2010. The review

discussed how some OECD principles and best practices

on regional development could help address the

Promoting regional developmentand urbanisation

economic and environmental challenges the province

faced. In addition, several Chinese cities such as Dalian,

Tianjin, Qingdao and Yantai had also been included

in the study Trans-border Urban Cooperation in the Pan

Yellow Sea Region(2009).

To facilitate comparative analysis at a sub-national

level, the OECD has established comprehensive regionaland metropolitan databases on demographic, economic,

labour market and innovation. The OECD is working

actively with Chinas National Bureau of Statistics (NBS)

to incorporate Chinese data into these databases.

www.oecd.org/gov/ruraldevelopment

www.oecd.org/gov/cities

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH. 11

STAINABLEGROWTH

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China has made major progress on food security: the

number of undernourished fell from 254 million in

1990-92 to 158 million in 2010, representing 73% of

the worldwide drop. Access to sufficient food remains

still a struggle for many households, especially among

the poorest in rural areas.

OECDs collaboration with China on agriculture-relatedissues has intensified in the past year. In October 2013, the

OECD and the Agricultural Trade Promotion Centre of the

Ministry of Agriculture organised in Beijing the workshop on

Policies to Enhance Agricultural Innovation and Productivity:

Focus on China. Participants discussed ways to ensure

that global agricultural productivity growth, particularly in

China, is sufficient to meet growing demand in a sustainable

manner. This effort falls within the context of Chinas keyagricultural directive (Document No.1) issued in 2012, which

focused on investment in agricultural science and technology

to help boost agricultural production and farmers incomes.

Policymakers and other stakeholders are interested in

knowing how much support governments provide to

agriculture and in what form, how this support has changed

over time, and how it compares between countries. TheOECD publishes its annual update of trends in the Producer

Support Estimatesindicator to monitor and evaluate the

level and composition of support provided to agriculture,

for member countries and a growing number of emerging

economies, including China. The results are published in

the reportAgricultural Policy Monitoring and Evaluation.The

2013 edition examined Chinas government interventions

in agricultural commodity markets in 2011-12, and the

corresponding impacts on trade and domestic economy.

Increasing agricultural productivityand food security


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CHAPTER ONCHINA

The OECD and the UN Food and Agriculture Organisation

(FAO) publish jointly an annual Agricultural Outlook, which

includes detailed projections of the medium-term outlook

for commodities for major economies. The 2013 edition,

released in Beijing at the World Agricultural Outlook

Conference in June, featured a chapter on the prospects

and challenges in Chinas agro-food sector in the next

decade, which was prepared with the Chinese Academy ofAgricultural Sciences (CAAS). Collaboration with the CAAS

has further expanded in 2014: CAAS placed an analyst with

the OECD to work on the Outlook this year.

The OECD is also a key reference for the certification and

standardisation of certain agricultural and forestry inputs

and commodities, which aim to facilitate international trade.

China has been an active member of the OECD Tractor Codessince 1988, and is currently nearing completion of its formal

application to join the OECD Seed Schemes in 2014.

www.oecd.org/agriculture

www.oecd.org/agriculture/code

SUS
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The OECD Strategy on Development, adopted in the

2012 Ministerial Council Meeting, gives fresh impetus

to OECDs founding mission of contributing to the

development of all countries by sharing knowledge and

policy experiences. As Chinas international assistance

continues to expand, the OECD stands ready to support

China to improve its management of the South-South

Cooperation and the effectiveness of its foreign aid.

The OECDs Development Assistance Committee (DAC) is

a unique international forum where bilateral providers

of development cooperation and multilateral agencies

work together to improve the quantity and quality of their

development cooperation. It is actively engaging with China,

in particular through the China-DAC Study Group which was

formed in 2009 to share knowledge and exchange experienceson promoting growth and reducing poverty in developing

countries. The current focus of the Study Group is on the

evaluation of the effectiveness of development cooperation.

China participates in DAC High and Senior-Level Meetings, as

well as in the OECD Global Forum on Developmentand in the

OECD-WTOs work on tracking of aid for trade. Building on the

findings from two joint study visits to Tanzania and Zimbabwe,the China-DAC Study Group organised in Beijing in 2013 the

Roundtable on Effective Development Cooperation: Drawing

Lessons from Agricultural Development in Africa. The OECD

also organised in September 2013 with the PRC Embassy in

France a seminar to share views on promoting development.

www.oecd.org/dac

www.oecd.org/dac/cdsg

Promoting developmentand effective cooperation worldwide

Knowledge sharing through the Development Centre

As an independent platform for knowledge-sharing

between the OECD and non-member countries, the OECD

Development Centre works closely with developing

economies worldwide, through policy dialogues in areas

such as growth, poverty alleviation and the reduction of

inequality. Current members of the Centre include non

OECD countries such as Brazil, India, Indonesia, SouthAfrica, Thailand and Viet Nam.

The Centre has been collaborating with China since

the early 1980s. In recent years, cooperation has been

strengthened with the Development Research Centre (DRC)

of the State Council in the area of competitiveness in the

services industries, with focus on how productivity and

efficiency in services industries can be boosted to becomea more prominent driver of economic growth, employment

creation and more equitable income distribution. This

work will feed into the publication Perspectives on Global

Development2014, which will also include an analysis on

the different development paths of Brazil, Russia, India,


STAINABLEGROWTH

SCAN TOREAD THE

REPORT
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Indonesia, South Africa and China. The publication is

regularly presented at DRC, the Chinese Academy of Social

Sciences (CASS) and more recently Renmin University.

The Perspectives on Global Development Industrial

Policies in a Changing Worldoffers a solid basis for

well-informed social and economic policies that

could facilitate Chinas transmission to a high income

country.

GAO SHI-JI: Director General, Institute for Resources

and Environmental Policy Studies, Development

Research Centre of the State Council, at the seminar onthe Perspectives on Global Development 2013 organised

with the DRC, 18 November 2013, in Beijing.

In addition, there have been continuous interactions

between China and the Centre regarding the latters

regional work in Emerging Asia, Africa and Latin

America. An Economic Outlook is published annually

for each region. The 2014 edition of the EconomicOutlook for Southeast Asia, China and Indiawas

dedicated to policy priorities for growing beyond

middle-income trap in Emerging Asia, with a country

note on China addressing in particular the role of local

governments in fiscal reforms. Beyond the Outlook,

China also plays an active role in the Regional

Roundtable on Macroeconomic Policies, Economic

and Development Planning, which is a platformfor open dialogue among Asian countries on near-

term macroeconomic and structural policies, jointly

organised by the OECD, the ASEAN+3 Macroeconomic

Research Office (AMRO) and the Asian Development

Bank (ADB). In Africa, Chinas growing impact has been

at the core of the analysis on theAfrican Economic

Outlook: the 2013 edition discussed the potential of

Chinese foreign investments and trade in the natural

resources sector for Africas structural transformation.

Finally, cooperation with China on the Latin American

Outlookhas benefitted from frequent collaboration with

CASS in recent years.

The Centre launched in 2007 its Emerging Markets

Network (EmNet) initiative, which serves as a

platform for experience-sharing among OECD-based

multinational corporations and their counterparts in

emerging countries. China is active in EmNet through

the China International Council for the Promotion of

Multinational Corporations (CICPMC), an association

for business promotion linked to the Ministry ofCommerce. CICPMC-EmNet joint sessions have been

organised since 2010 in Beijing.


FROM LEFT TO RIGHT:Zhang Shaogang, Director General, MOFCOMs

Department of International Trade and Economic Affairs; Rintaro Tamaki,

Deputy Secretary General of the OECD; Carl Dahlman, Head of Global

Research of the OECD Development Centre, during an EmNet meeting in

Beijing, November 2013.

SUST
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The OECD maintains comprehensive databases

of comparable statistics to support its analytical

and policy work. The Organisation also develops

and promotes international statistical standards

and coordinates statistical activities with other

international organisations.

China has been included, for a number of yearsnow, in some of the most high profile and important

OECD databases.These include a range of short-

term economic statistics, for example, international

trade, monthly financial statistics such as monetary

aggregates and interest rates, balance of payments,

production indices, and prices. These frequently-

consulted statistics provide an overview and

comparison of recent international economicdevelopments and are used in the modelling of the

business cycle. Additionally, China has been included

in the National Accounts databases and in 2012 its

quarterly GDP in volume terms were published for the

first time. The OECD Factbook,an extensive, annual

compilation of economic, environmental and social

statistics, features a growing range of Chinese statistics

covering a widening selection of statistical topics.

A crucial element of the deeper engagement between

the OECD and China is the development of the full

range of standardised, comprehensive statistical

indicators as the basis for making meaningful

comparisons between China and OECD partner

countries.To this end, a technical dialogue with Chinas

NBS has been ongoing since 1996, in particular in the

Better datafor better policies

area of National Accounts. Furthermore, the OECD is

leading work in areas such as international trade in

value added (TiVA), green growth and gender indicators

that will help to ensure international statistics to

remain relevant and meaningful.

In 2013, China was included in the OECD publication

Hows Life? Measuring Well-being.Representatives ofthe Development Research Centre of the State Council

participated through secondment to work closely with

the Organisation for the OECD Better Life Initiative.

www.oecd.org/std

www.oecd.org/statistics/howslife .htm


TAINABLEGROWTH

SCAN TO READTHE REP ORT
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Well-functioning markets are essential to growth

and development. In China, reform and opening-

up has been the key to its economic success

over the past three decades. While the public

sector remains a pillar of the Chinese economy,

the market is expected to play a decisive role in

allocating resources. Making rules more open, fair,

transparent and predictable for trade, investment,

competition and financial sector is key to the

success of reform in China.

16. SMOOTH FUNCTIONING OF MARKETS

FUNCT


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International investment has played a central role in

Chinas successful integration in the global economy.

China is now a major investor abroad, especially

in developing regions. As such, China has a strong

interest in an open, fair and rules-based international

investment regime.

The OECD promotes investment policy reform andinternational investment cooperation, with a view to

enhancing the contribution of international investment

to growth and sustainable development. In particular,

the OECD monitors investment protectionism in the

context of the G20, produces statistics on foreign direct

investments, and develops international instruments and

tools which are used worldwide, such as the Declaration

on International Investment and MultinationalEnterprises, the Codes of Liberalisation of Capital

Movements, the Due Diligence Guidance for Responsible

Supply Chains of Minerals from Conflict-Affected

and High-Risk Areas, and the Policy Framework for

Investment. The OECD also hosts the inter-governmental

Freedom of Investment (FOI) Roundtable, through which

governments exchange information and experiences on

investment policies and emerging issues for instance,recipient countries policies towards sovereign wealth

funds, international investment law and the investor-state

dispute settlement system.

Enhancing cooperationon international investment

China, as a major capital-importing and exporting

country, has made important contributions to enriching

the discussions in investment-related areas in the OECD.

China has contributed throughout the years to a wide

range of OECD activities, including the FOI Roundtable

and the Global Forum on International Investment, and

is expected to be involved in the update of the Policy

Framework for Investment. At the invitation of theChinese government, the OECD is also a permanent co-

sponsor of two major annual investment events in China,

the China International Fair for Investment and Tradeand

the China Overseas Investment Fair.

www.oecd.org/daf/investment

SMOOTH FUNCTIONING OF MARKETS. 17

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Trade liberalisation has played a key role in Chinas

economic transformation. Developing the multilateral

trading system and keeping markets open is of

mutual interest for the OECD and China, as both share

a strong interest in promoting a better understanding

of global value chains (GVCs) and their trade policy

implications.

The OECD has a long history of studying value chain

dynamics. Most recently, the OECD-WTO Trade in Value

Added (TiVA) database was developed to measure trade in

value added terms and to generate new insights about the

commercial relations among economies and the process

of value creation. The second release of the database in

May 2013 provided metrics that more precisely measure

the value of goods and services traded in 57 economies,including China, covering the years 1995, 2000, 2005, 2008

and 2009 and broken down by 18 industries. Further work

on the mapping of GVCs will provide additional evidence

on the position and role of China in GVCs. In addition,

the policy implications of GVCs across different domains

trade, investment, upgrading and competiveness are

also under examination.

At the invitation of the Chinese government, the OECD

is a co-sponsor of the China Beijing International Fair for

Trade in Services and is invited to co-organise a Global

Forum on Services in GVCs with MOFCOM at the event

this year. Additionally, the OECD is compiling a regulatory

database of services regulations, encompassing 17

services sectors and sub-sectors in 40 countries, including

China. This qualitative database is being complementedby quantified indices of services trade restrictiveness

Promoting trade and upgradingin global value chains

(the Services Trade Restrictiveness Index STRI) which

provide the information needed to assess the impact of

planned domestic reforms, and to guide their sequencing

and successful implementation. The indices will be

indispensable for trade negotiators as they consider

different options and approaches to liberalisation. An

official from MOFCOM worked on the STRI project at the

OECD in 2013.

The OECD Trade Facilitation Indicatorsidentify priority

areas for reform in order to improve border procedures

and reduce trade costs for countries at various stages of

development. The OECD-MOFCOM conference on trade

facilitation, which took place in Beijing in July 2013,

allowed the exchange of information on related OECD

work and Chinas endeavours to modernise the customsand border process and promote trade facilitation.

www.oecd.org/trade

http://oe.cd/gvc

http://oe.cd/tiva


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Eliminating subsidies and unfair practices in economiccompetition helps form the foundation of a healthy

and dynamic global economy. OECD export credits

work is precisely one of the basic building blocks of

the ever growing structure of global trade agreements

that aim to maintain open and efficient markets.

The OECD provides a forum for discussion and

coordination of national export credit policies relating to

Regulating exportcredits

good governance issues, such as anti-bribery measures,environmental and social due diligence, and sustainable

lending. OECD-housed rules ensure that export credit

programmes conform to anti-subsidy obligations made

under the auspices of the WTO and contribute to open

markets and fair trade.

The Arrangement on Officially Supported Export

Credits stipulates the most generous financial terms

and conditions for officially supported export credits.

The resulting export credits disciplines apply first and

foremost to OECD members. However, many non-

members, including Brazil, China, India and South Africa,

are invited to participate and/or observe meetings of the

Working Party on Export Credits and Credit Guarantees

and of the Participants of the Arrangement.

www.oecd.org/trade/xcred


ONINGMARKETS

The discussion on global value

chains (GVCs) has made significant

progress. It has established the

positive correlation between trade

and peoples welfare, growth andemployment. It has also highlighted

the many areas that need to be

improved in trade statistics and policies. These findings

will help foster an international trade environment

of greater freedom, equality and inclusiveness ()

China has taken an active part in the study on GVCs.

We will work closely with the WTO and the OECD and

further participate in the discussion on the impact of

GVCs on trade policies.

H.E. AMBASSADOR YU JIANHUA,

Deputy International Trade Representative of China

and Former Assistant Minister of Commerce

Intervention during the Trade Session at the Ministerial Council

Meeting, 30 May 2013, Paris
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Regulatory barriers to competition can potentially

hamper development and prevent consumers from

benefiting from economic growth.

In order to promote sound competition principles

and build mutual understanding and cross-border

convergence, the OECD has developed international best

practices on cooperation between competition enforcers,on hard core cartels and on assessment of government

policies for anti-competitive effects. A Competition

Assessment Toolkit provides a checklist methodology

to review laws and regulations that could restrain

competition. The OECD has also developed Guidelines

for Fighting Bid Rigging in Public Procurement to assist

governments in raising awareness of the risks and costs of

collusion in public procurement.

Promoting soundcompetition

During the early stages of implementation of Chinas

Anti-Monopoly Law, the OECD held a series of capacity

building events with judges from Chinas Supreme

Peoples Court and officials from MOFCOM, NDRC and the

State Administration for Industry and Commerce. In 2010

and 2011, OECD, ADB and MOFCOM jointly hosted the

first meetings on competition policy of the State Councils

Anti-Monopoly Commission, bringing together seniorofficials from a wide range of State entities.

Since then, cooperation with China has expanded

as Chinas competition authorities increase their

enforcement capabilities. Officials from China frequently

attend meetings of the Competition Committee and

participate in the Competition Programme of the OECD/

Korea Policy Centre. Following a training session incompetition law provided by the Korea Centre in 2012 in

Beijing, another workshop is now being planned in 2014

specifically for the Chinese authorities.

In 2013, the OECDs Competition Committee embarked

on an ambitious programme to promote and improve

cross-border cooperation in enforcing competition law.

As business becomes more globalised, competitionauthorities increasingly face the need to work together.

Further simplifying and improving cooperation will

remain a focus of the OECDs work in competition

through, and most likely beyond, 2014.

www.oecd.org/competition


FUNCTIO
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The OECD promotes efficient, open, stable and sound

market-oriented financial systems, based on high

levels of transparency, confidence and integrity. It

monitors and surveys current market developments

and structural changes, publishing its key findings in

the biannual publication Financial Market Trends.

The OECD also assesses and develops reform measuresrelated to banking, securities and institutional investors

(in particular, insurance companies and private pension

schemes). In addition, it facilitates policy dialogue and

exchange of experiences, for instance, on capital market

reform, financial education and financial consumer

protection.

In China, good macroeconomic fundamentals, soundregulations and a limited exposure to international

markets have helped to promote the smooth functioning

of the financial system and to shield it from major

Developing a robustfinancial system

repercussions of the global economic and financial

crisis. However, strong credit growth risks have been

accumulating, especially in the shadow banking sector,

which will bear watching and may require further policy

action. Moving forward, China will continue to integrate

and gain importance in world financial markets as

a result of its economic growth and rising shares in

world trade and investment.

China participates in the OECD/ADB Institute

Roundtable on Capital Market Reform in Asia, the

OECD Global Forum on Public Debt Managementas

well as the OECD/World Bank/IMF Global Bond Market

Forum. China attended the first Asian Roundtable on

Financial Consumer Protection and has contributed to

and supported the work of the G20/OECD Task Force onFinancial Consumer Protection.

www.oecd.org/daf/fin


ONINGMARKETS

URL FOR THIS PAGE www.oecd.org/daf/fmt
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The global financial crisis brought to the forefront

the need for comprehensive financial education

programmes in economies at different stages of

development. Financial education is necessary to

develop awareness and skills among both consumers

and investors.

China in particular needs to enhance access to and useof financial services for its citizens, particularly in remote

and underserved areas of the country. It should also

support investor education in order to promote better

investment habits by its middle class and the wealthier

members of society.

China is currently developing its National Strategy for

Financial Education, which follows the recommendationsof the OECD in this respect and is based on the

cooperation between public authorities with an interest

and mandate in financial consumer empowerment,

as detailed in Chinas contribution to the G20-OECD

PublicationAdvancing National Strategies for Financial

Educationunder the Russian Presidency in 2013.

Shanghai-China also participated in 2012 in the first ever

Financial Literacy Assessment in the OECD Programmefor International Student Assessment (PISA).

Improving financialeducation

The OECD formulates recommendations through the

International Network on Financial Education (INFE)

and through its participation in the work of the G20.

Established in 2008, the OECD/INFE brings together public

experts from more than 270 public institutions and 107

economies in order to undertake analytical work and

develop good practices. China has a strong presence in

this network. Official members include the Peoples Bankof China, the China Banking Regulatory Commission and

the China Institute for Educational Finance Research.

www.oecd.org/finance/financial-education


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China is committed to develop a modern legal,

institutional and regulatory framework for a market

economy. Good governance of the public and privatesectors requires streamlining the administration,

reforming tax and fiscal relations across levels of

government, combating corruption in business and

public sectors, and strengthening the efficiency and

transparency of corporate practices for both private

and state-owned enterprises.

PUBLIC AND CORPORATE GOVERNANCE. 23


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Regulatory policy touches many aspects in every

sector of the economy and affects the everyday life of

businesses and citizens.

Through the Guiding Principles for Regulatory Quality and

Performance and the APEC-OECD Integrated Checklist on

Regulatory Reform, the OECD helps countries to design

and implement regulations to enhance the functioningof markets, protect health, safety and environment,

deregulate when appropriate and encourage more open

competition. The OECD also works on administrative

simplification, regulatory compliance and enforcement,

regulatory impact assessment, transparency and

communication, and alternatives to regulation.

While China has made enormous progress in developinga modern legal and regulatory foundation for a market

economy, important challenges remain. These include

further clarification of the scope of state ownership,

reform of relations among central and local governments

to ensure greater policy coherence, firmer establishment

of the rule of law, and the strengthening of regulatory

institutions and processes.

Regulatory reform andadministrative simplification

The Regulatory Reform Review of China, conducted

in cooperation with the NDRC in 2009, advised the

government to improve its regulatory capabilities,

ensure transparency of regulation and simplify, revise

or eliminate regulation when necessary. In March

2013, the Plan on Structural Reforms and Functional

Transformation of the State Council set out a new

institutional framework for regulating various sectorsand announced important administrative and regulatory

reforms in terms of reducing the States intervention in

economic activities. The OECD is currently developing

a set of Best Practice Principles for the Governance

of Regulators, which can provide a useful reference

for China as to the level of independence, funding,

management and organisation of regulators.

www.oecd.org/gov/regref

24. PUBLIC AND CORPORATE GOVERNANCE

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Maintaining fiscal discipline, allocating resources to

where they are most valued, and achieving greater

efficiency in government operations have a crucial

impact on overall national economic performance.

The OECD carries out research across the full range of

budgeting issues through reviews of country budgeting

systems and comparative analysis of specific aspects ofthe budgeting, and maintains a comprehensive Database

on International Budget Practices and Procedures. The

results of this work are published in the OECD Journal on

Budgeting.

The OECD has collaborated with the Chinese Ministry

of Finance on the design of reforms for the budget

formulation and implementation process since the1990s. In addition, the OECD has worked with the

Budgeting andpublic expenditures

National Peoples Congress in reforming the budget

approval process. Currently, cooperation with China

focuses on the issue of the public governance of public-

private partnership (PPPs) arrangements.

China is also an active participant in the OECDs Senior

Budget Officials Regional Network for Asia, which brings

together budget directors and senior officials from Asianand OECD countries in order to share policy experiences

and discuss common budgetary issues. The work of

this Network is based on three pillars: cross-country

analytical studies in order to identify best practices; peer

reviews or profiles of the budgeting systems of countries

in the region; and a database of budget institutions and

practices in the Asian region.

www.oecd.org/gov/budgeting


GOVERNANCE
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Since the mid-1990s, the OECD is committed to

interaction with China on domestic tax reform and

on enhancing international tax cooperation in a

partnership, through which tax officials work at the

front line to exchange opinions on key policy issues

and to shape together the international tax landscape.

In the past 20 years, cooperation with China has resultedin the delivery of around 120 technical training events

on taxation, attended by more than 15,000 Chinese

tax officials. The events have helped China implement

taxation and administrative measures that are in line

with international best practices and standards.

Since 2004, China has been a regular and active

Participant in the OECD Committee on Fiscal

Affairs. China is also a member of the Forum on

Tax Administration, which brings together the Tax

Commissioners from over 40 economies to improve tax

compliance, as well as an Associate in the joint OECD/

G20 project on Base Erosion and Profiting Shifting, which

aims to give governments the domestic and international

instruments to prevent corporations from paying little or

no taxes.

China plays a leading role in the Global Forum on

Transparency and Exchange of Information for Tax

Purposes as Vice-Chair of the Steering Group. The Forum,

gathering about 120 OECD and non-OECD jurisdictions,

monitors the implementation of internationally-agreed

standards on transparency and exchange of information

for tax purposes through country peer reviews.

Additionally, China is also a member of the Steering

Improving tax transparencyand compliance

Group of the newly launched Global Forum on Transfer

Pricing as well as the Global Forum on Value Added Tax.

In April 2013, the State Administration of Taxation and

the OECD signed a Memorandum of Understanding

which sets out a wide range of areas of cooperation on

tax policies. In August 2013, China signed the Multilateral

Convention on Mutual Administrative Assistance in TaxMatters, which is a multilateral agreement designed

to facilitate international cooperation among tax

authorities to improve their ability to tackle tax evasion

and avoidance and ensure full implementation of their

national tax laws, while respecting the fundamental

rights of taxpayers.

www.oecd.org/taxation

www.oecd.org/tax/globalrelations


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REPORT

G
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Commissioner of Chinas State Administration of Taxation WANG Jun, with the OECD Secretary-General Angel Gurra, at the signing ceremony of

Chinas adherence to the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters, on 27 August 2013 in Paris.

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As China expands its global trade and investment

network, Chinese companies encounter increased risk

of corruption in the global marketplace.

China has participated in meetings of the WGB since 2007.

In October 2010, the OECD and the Ministry of Supervision

(MOS) jointly organised a technical seminar on foreign

bribery and the Convention. In May 2011 Chinas foreign

bribery offence came into effect. As a member of the G20

Anti-Corruption Working Group, China has joined other

G20 members in formally calling for active engagement

with the WGB with a view to exploring adherence to the

Convention. In addition, China has been a member of the

ADB/OECD Anti-Corruption Initiative for Asia and the

Pacific since 2005, and has endorsed the ADB/OECD Anti-

Corruption Action Plan for Asia and the Pacific. In August

2014 in Harbin, the OECD will co-organise with MOS a

workshop on the bribery of foreign public officials in the

margins of the meeting of the APEC Anti-Corruption Task

Force Working Group.

Becoming a Party to the Anti-Bribery Convention

would enable China to more effectively contribute

to international standards and policy making on

foreign bribery, and actively participate in monitoring

implementation of these standards by its trade and

investment partners and competitors. The reputation for

clean and transparent conduct by Chinese enterprises

in cross-border business would increase with Chinas

adherence to the Convention. Meanwhile, foreign

companies doing business in China would be more

reluctant to engage in corrupt activities in China,

thus contributing to sustainable economic growth.

Fighting transnationalcorruption

Enforcement of Chinas bribery laws would also be

enhanced, due to the Convention framework for providing

effective legal assistance in trans-border bribery

investigations and proceedings, including confiscation

of bribe proceeds. Moreover, accession to the Convention

would provide China with an important platform for

sharing its good practices, including for preventing and

detecting corrupt activities by state-owned enterprises

conducting business in foreign markets.

www.oecd.org/daf/anti-bribery/

www.oecd.org/site/adboecdanti-corruptioninitiative/

www.oecd.org/corruption


GO
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There are growing concerns in China to ensure that

the integrity of public decisions is not compromised

by public officials private interests, and that waste in

the public sector is minimised.

The new leadership of the Central Commission for

Discipline Inspection (CCDI) have vowed to speed up

anti-corruption efforts in the public sector and proposedto improve regulations governing the conduct of public

servants. The OECD stands ready to support the CCDI and

the Ministry of Supervision by providing hands-on policy

advice on the instruments, processes and structures to

effectively map and mitigate integrity risks, implement

a code of conduct, support education and manage asset

disclosures in order to build a culture of integrity in the

public sector.

More widely, Asian countries have paid increasing

attention to the need to enhance public sector integrity

systems. In supporting these efforts, in July 2013 in Dili,

Timor-Leste, the 12th Regional Seminar of the ADB/

OECD Anti-Corruption Initiative for Asia and the Pacific

shared experiences of Asian countries in designing and

implementing an effective whistle-blower protection

system. The seminar also discussed ways to strengthen

anti-corruption agencies in the region.

www.oecd.org/gov/ethics

Enhancing public sectorintegrity

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The rapid growth of the Chinese economy and the

expansion of Chinas equity markets have pushed

corporate governance high on the national reform

agenda. Healthy capital markets and efficient,

transparent corporate practices are essential for

growth and innovation. The degree of state ownership

in both listed and unlisted companies is a source of

concern to domestic and foreign competitors. As China

is an important player in the world economy, efforts to

reform its governance practices are of global relevance.

For over a decade, the OECD has engaged closely with China

to support its reform efforts and benefit from its experience.

This cooperation takes place through the Corporate

Governance Committee, the Working Party on State

Ownership and Privatisation Practices, the Asian Roundtable

on Corporate Governance and the China-OECD Policy

Dialogue on Corporate Governance. Two OECD instruments,

the Principles of Corporate Governance(Principles) and the

OECD Guidelines on Corporate Governance of State-Owned

Enterprises(Guidelines) serve as references for this work.

The Principles, used across the globe as a reference point for

domestic reforms, are intended to help countries evaluate

and improve their legal, institutional and regulatory

framework for corporate governance, and to provide

guidance and suggestions for stock exchanges, investors,

corporations and other parties involved in the development

of good corporate governance. They are recognised by the

Financial Stability Board (FSB) as one of the key standards

for international financial stability, and form the basis for

the corporate governance component of the World Bank

Report on the Observance of Standards and Codes.

Raising the baron corporate governance

The Guidelines, developed based on the Principles, take

as a starting point that state-owned enterprises (SOEs)

should be as accountable to the general public as private

enterprises should be to their shareholders. They help

governments organise their ownership and regulatory

roles, while ensuring efficient and transparent governance

of individual SOEs. Well-governed SOEs can in turn help

boost national competitiveness and limit the risk of

fiscal drainage. Furthermore, SOEs which operate with

higher standards of governance are also better equipped

to pursue commercial and non-commercial priorities

instructed by their government owners.

In 2014, the OECD is undertaking a review of the Principles

and the Guidelines. China, alongside other FSB members,

has been invited to participate in the review as an

Associate, i.e. on an equal footing with OECD members, so

as to ensure that the updated standards truly reflect an

international perspective. In autumn 2013, two seminars

were organised in Beijing to facilitate Chinas participation

in the revision of the two instruments by deepening its

understanding of the review process, the relevance of the

instruments and possible issues for review. Both seminars

featured high-level representatives of the relevant Chinese

government organs. The Chinese Securities Regulatory

Commission and the State-owned Assets Supervision

and Administration Commission of the State Council

respectively have confirmed a willingness to take part in

the revision processes of the two instruments.

www.oecd.org/daf/corporateaffairs
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China has increased its efforts to put in place an efficient andequitable welfare model, covering a greater proportion of its

population. Health, pensions, education, vocational training

and consumer policy are key components of the Chinese

social security system. All these are essential to enhancing

human capital, increasing social cohesion and achieving more

inclusive economic growth.

EMPLOYMENT AND SOCIAL DEVELOPMENT. 31


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SOCIETY

OECDs work on social policy

covers a wide range of issues

and continuously seeks new best

practices with regard to changing

socio-demographic factors and

labour market conditions.

In December 2011, the OECD published jointly with

the OECD/Korea Policy Centre Society at a Glance

Asia/Pacific, which includes a special focus on unpaid

work and the ways to facilitate womens access to

employment in China. A new edition is scheduled for

publication in the coming summer, which will feature

a special chapter on gender equality in education,

employment and entrepreneurship (the three Es) in

Asian countries, as well as 25 social indicators.

In the context of the OECD Gender Initiative, a report

on Closing the Gender Gap: Act Nowwas published in

Seeking best practicesof social and health policies

December 2012, together with the new OECD Gender

Data portal that covers OECD members and Brazil,

China, India, Indonesia, Russia and South Africa. The

report examined latest trends on gender equality in

the three Es and discussed ways to best close the

remaining gender gaps in these areas.

www.oecd.org/els/social/indicators/asia

www.oecd.org/gender/equality

PENSIONS

China is facing considerable

socioeconomic and demographic

shifts that call for continued

pension reforms to offer greater

protection to citizens while

keeping costs in check.

The OECD analyses retirement income systems,

providing a reference for pension comparison across the

32. EMPLOYMENT AND SOCIAL DEVELOPMENT

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REPORT

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SOCIALDEVE
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OECD and the Asia-Pacific region. The OECD also works

with Chinese authorities on general pension reform and

risk awareness and reduction initiatives. The biennial

publication Pensions at a Glance Asia/Pacificcovers 11

economies within the Asian region, including China, and

presents key pension indicators such as replacement

rates and pension wealth. The 2013 edition provided a

reference for pension comparison throughout the region

www.oecd.org/els/social/pensions

HEALTH

As the global financial and

economic crisis is forcing countries

to seek ways to rein in public

spending, health systems need

to increase their efficiency and

deliver value for money.

The OECD monitors health-related data such as health

status, health care resources, expenditure and financing,

as well as indicators on the quality of care in OECD and

Asia/Pacific economies. It advises countries on policies

to prevent disease and improve health-system efficiency

through care coordination and the implementation of

information technologies. The OECD also helps countries

design pharmaceutical policies and address future

health workforce and long-term care needs.

The OECD is increasing its reach to China and other

countries in the region. Much of this work with Chinas

health authorities has been conducted through the Korea

Policy Centre, which organises meetings and workshops

to exchange policy experience between China and the

region to promote the use of health expenditure data

and foster quality improvement programmes. The 2012

edition of Health at a Glance: Asia/Pacificpresented a set

of key indicators on health systems for 27 Asia/Pacific

economies. The report showed notably that Chinas

per capita health expenditure was still lower than the

regional average in 2010, although the figure had been

progressing rapidly over the past 10 years. China

active with the people's republic of china

Documents