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37 countries regard China's market economy status
(People's Daily Online)
Updated: 2005-01-06 10:49

37 countries now regard China as a full market economy, declared Chinese Commerce Minsiter Bo Xilai recently.

Studies by research institutions including the Development Research Center of the State Council show that China is a typically inclusive economy in which public ownership plays a leading role and various ownership enjoy equal chance of prosperity. A commodities market which is extensively accessible, offers perfect services and supplies a whole array of resources is in place. Competition decides prices of most products and services.

Economic tools, such as policies of taxation, interest rate, price and investment, are used to leverage the national economy. The diversified distribution system built on take-on-give principle is still evolving.

Progress has been made on social security system which is focused on insurance covering the old age, unemployment, and health care, as well as the minimum living allowance for the underprivileged in urban areas. An independent social security system detached from businesses has taken shape.

Professor Hu Angang with Tsinghua University has not seen any perfect 100 percent market economy in the world and regards China a 70 to 80 percent market economy.

Li Xiaoxi with Beijing Normal University basically agrees with Hu. He said China's market economy reached 69 percent in 2001, which is comfortably above the world benchmark of 60 percent.

Qin Chijiang, Vice Secretary-general of China Finance Society, is confident on the prospect of China being recognized as a full market economy by more and more countries. He insisted it was the truth that after 25 years of reform, China has succeeded in building a market economic system. And it is the reality, he added.

New Zealand is the first country to extend the market economy status to China. The 10 ASEAN nations signed an agreement with China to recognize China's full market economy status. It was followed by Russia's recognition.

China has repeatedly urged the EU, its largest trade partner to solve the issue as early as possible. Chinese products which are thought to be from a non-market economy are vulnerable to dumping charges on the world market. Chinese companies have to deal with more anti-dumping investigations than their competitors in any other country in the world.

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