Oecd Economic Surveys: China 2010

This 2010 edition of OECD's periodic review of China's economy finds that China's spectacular expansion has continued in recent years, making for impressive improvements in living standards. The slowdown associated with the global financial and economic crisis was contained by massive fiscal and monetary policy stimulus, which has boosted domestic demand. This survey includes chapters on recent achievements and prospects, monetary policy, financial reforms, product market regulation and competition, inequality, the labour market, old-age security and the health care system.

Basic Statistics of China Executive summary Assessment and recommendations Chapter 1. Achievements, prospects and further challenges -Keeping up robust growth -Weathering the global crisis -The social policy challenge Chapter 2. Further monetary policy framework reform -Monetary policy has come a long way -The modus operandi of the PBoC -The influence of the PBoC on the interbank market -How responsive is bank lending to money market conditions? -The way forward for interest rate reform -How sensitive is the real economy to interest rate changes? -Do changes in aggregate demand influence inflation in China? -China's exchange rate regime -The benefits of moving towards a flexible inflation target Chapter 3. Progress on financial reforms an update -Financial reforms have accelerated and broadened since 2005 -Banking reforms are coming to fruition -Capital market development is accelerating on a firmer foundation -Greater priority is being given to credit access for underserved segments -The financial system is gradually opening up internationally -Conclusions and recommendations Chapter 4. Product market regulation and competition -Product market regulation has been transformed but could be improved further -The OECD's PMR indicators -Product market regulation is still restrictive in China -But competition is increasingly robust in most markets -SOE governance has been comprehensively reformed -SOE performance has improved but still lags the private sector -Detailed PMR indicator results and policy recommendations Chapter 5. A pause in the growth of inequality? -Regional development policies -Policies in favour of rural areas -Government policies to reduce household income inequality -Measuring household inequality -Measuring spatial inequality -Conclusions Chapter 6. A labour market in transition -Labour market developments: job creation, migration, and persistent segmentation -New labour laws -Conclusions and recommendations Chapter 7. Providing greater old-age security -The demographic and social context -The rural old-age support system -The urban old-age support system -Overall conclusion: further reform directions Chapter 8. Improving the health care system -Health performance -The health system -Financing health care -Government initiatives -Assessment and conclusions