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China and the OECD

A mutually beneficial partnership
After more than three decades of sustained double-digit growth, China is undergoing
a period of rebalancing and structural adjustment. Creating the conditions for
the emergence of new growth engines, supported by dynamic innovation and
entrepreneurship, and the shift towards a more inclusive and environmentally sustainable
development path are key priorities of the 13th Five-Year Plan. Good policy choices will
be essential for China to achieve these objectives and realise its vision of a moderately
prosperous society by 2020.
The OECD and China celebrated last year the 20th anniversary of a fruitful and mutually beneficial co-operation, aimed at
supporting the countrys economic and social development while encouraging its contribution to global governance. A Key Partner
and a central pillar of the world economy, China greatly enhances the OECD policy debate on global challenges such as achieving
sustainable and inclusive growth, creating jobs, fighting protectionism, developing green development models and eradicating
extreme poverty. In turn, the Organisations ability to bring together expertise and evidence-based analysis from a wide range of
policy communities benefits China by informing its policy choices.
Chinese Premier LI Keqiangs visit to OECD Headquarters in July 2015 marked a new milestone in our partnership, with the signing
of a joint Programme of Work and by China becoming a member of the OECD Development Centre.
In 2016, our co-operation is intensifying as the OECD works closely with China in support of its G20 presidency, to build together an
Innovative, Invigorated, Interconnected and Inclusive World Economy. In an increasingly challenging global environment facing
elusive growth prospects, the OECD supports Chinas G20 Presidency in the quest to harness new sources of growth like innovation,
skills, the digital economy, new production methods and green finance. Of equal importance is the shared goal to kick-start the
growth engines of trade and investment by improving the respective frameworks, advancing the structural reform agenda and
developing fairer and more effective global standards in the fields of taxation, SMEs, corporate governance and anti-corruption. To
underpin these efforts the Organisation is honoured with the agreement between the OECD and Chinas Ministry of Foreign Affairs
on the OECD-China G20 Skills Development Programme which is designed to learn from each other to our mutual benefit. We also
work together in the G20 to foster more inclusive global development, in line with the Sustainable Development Goals.
The OECD takes pride in its co-operation with China. This brochure provides just a glimpse of the scope, depth and richness of our
joint work. It illustrates the broad range of policy challenges on which the OECD and China collaborate.
Two decades of sharing good practices and policy perspectives have strengthened our mutual understanding. We look forward to
further deepening our engagement in the years to come, and to joining forces to design, develop and implement better policies
for better lives.
ANGEL GURRA, OECD Secretary-General


Celebration of 20 years of partnership
Official visit of Premier LI Keqiang to the OECD

Collaboration in the G20 and other multilateral processes
Joint Programme of Work for 2015-2016
The OECD-China Skills Development Programme
The OECD Development Centre and China
Secondment programme: Chinese Government
Officials at the OECD
Maintaining economic balancing and resilience
Enhancing Chinas economic partnerships
Fostering inclusive growth
Greening growth
Promoting responsible business conduct
Boosting regional development and improving
urbanisation 23
Increasing agricultural productivity and food security
Better data for better policies
Fostering dialogue on development co-operation
Enhancing co-operation on international investment
Facilitating trade and upgrading in global value chains
Promoting sound competition
Developing a robust financial system
Improving financial education
Implementing effective consumer policy


Strengthening regulatory policy
Enhancing budgeting and public expenditure efficiency
Improving tax transparency and compliance
Fighting transnational corruption
Enhancing public sector integrity
Raising the bar on corporate governance and SOEs
Seeking best practices of social and health policies
Improving the labour market prospects of youth
Supporting SME development and strengthening local skills 45
Fostering skills through education and training

Building a knowledge economy
Restructuring in the shipbuilding and steel sectors
Meeting transport infrastructure needs
Enhancing chemical safety
Towards a cleaner and healthier environment
Combating climate change
Improving water management
Providing affordable and clean energy
Developing clean and safe nuclear power

Chinas adherence to OECD instruments
Chinas participation in OECD bodies
Dialogue and data



While celebrating the 20th anniversary of co-operation, China and the OECD achieved new
consensus and outcomes during my visit on strengthening policy dialogues, communication
and co-operation, sending a signal to the rest of the world that China and the OECD share the
same vision of focusing on development for prosperity.
Chinese Premier LI Keqiang


Two decades of partnership and beyond

Initiated in the mid-1990s, the co-operation between China and the OECD has
progressively expanded to a broad array of policy areas including macroeconomic
monitoring, trade and investment, competition policy, science and technology,
agriculture, environment and sustainable development, fiscal affairs, education,
social policies and many more. Over the past two decades, more than 30 Chinese
ministries and agencies have taken part in the activities of the OECD, with the
Ministry of Commerce playing an important coordinating role. Today, China is an
active and valued Key Partner for the OECD. China contributes in many important
ways to the work of OECD Committees and participates as an Associate on an
equal footing with OECD Members in a number of significant projects and bodies
described throughout this brochure.
The year 2015 was a milestone in the OECD-China partnership, as it marked the
twentieth anniversary of our collaboration. To commemorate two decades of
accomplishments and pave the way for even closer co-operation in the years to
come, the OECD and China organised a series of events throughout the year and
launched several strategic and far-reaching new initiatives.
J LI Keqiang, Premier of the Peoples Republic of China with Angel Gurra, OECD Secretary-General, during his official visit to OECD Headquarters,
July 2015

Celebration of 20th Anniversary

of the OECD-China Partnership
Twentieth anniversary celebrations kicked off with a high-level
event hosted by the Chinese Government in Beijing in March
2015. Chinese Vice Premier WANG Yang and OECD SecretaryGeneral Gurra opened the event in a session moderated by
Commerce Minister GAO Hucheng, underlining the value of
the mutually beneficial partnership that the OECD and China
have forged. A commemorative brochure issued for the event
retraced two decades of achievements and milestones and
included testimonials from more than 45 Chinese and OECD
officials. During this important official visit, the OECD SecretaryGeneral also presented the 4th edition of the OECD Economic
Survey of China and two reports initiated by the National
Development and Reform Commission of the Peoples Republic
of China (NDRC), which provide policy recommendations for the
formulation and implementation of Chinas 13th Five-Year Plan
for Economic and Social Development.

OECD Secretary-General
Angel Gurra and
Chinese Vice Premier
WANG Yang discuss the
OECD-China partnership
and review the 20th
Anniversary brochure.

I truly believe the future development of China will not only call
for more co-operation with the OECD, but will also create new
opportunities for both sides to collaborate. () The 20th anniversary
marks both a milestone and a new starting point for an even higher
level of co-operation between China and the OECD and I wish it even
greater success in the years to come!
LIU He, Minister, Office of the Central Leading Group on Financial and Economic
Affairs (excerpt from OECD-CHINA 20th anniversary brochure)


Official Visit of Chinese Premier LI Keqiang

to OECD Headquarters
In the context of the 20th anniversary of the OECD-China
collaboration, Premier LI Keqiang made an official visit to the
OECD in July, becoming the first Chinese Leader to visit the
OECDs Paris Headquarters. He was accompanied by a number
of ministers and high-ranking officials from the Ministry of
Commerce, National Development and Reform Commission,
Ministry of Foreign Affairs, Research Office of the State Council,
Development Research Centre of the State Council and the
Chinese Ambassador to France.
During the visit, Premier LI delivered a keynote speech Keep
Development in Focus and Create Prosperity for All that
highlights Chinas perspectives on international co-operation
and affirms the shared vision between China and the OECD.
Important new agreements were signed that will further
strengthen the OECD-China co-operation in the years to come:
l A Medium-Term Vision Statement and a joint Programme

of Work for 2015-2016 foresee enhanced co-operation in 20

policy areas, signed by Minister of Commerce GAO Hucheng
and OECD Secretary-General Angel Gurra.
l China, represented by the Development Research Centre

Premier LI Keqiang
delivering a keynote
address at OECD
headquarters during his
official visit in July 2015.

(DRC) of the State Council, became a member of the OECD

Development Centre in a signing ceremony with DRC
President LI Wei and OECD Secretary-General Angel Gurra.
l A Memorandum of Understanding for the OECD China Skills

Development Programme provides support for Chinas role

in global governance with a focus on its G20 Presidency in
2016, signed by Minister of Foreign Affairs WANG Yi and OECD
Secretary-General Angel Gurra.
These agreements, described in further detail in the following
pages, lay the foundations for the continued deepening of
OECD-China partnership, which will be key for effectively
addressing evolving global challenges in the years ahead.

J Mrs Lulu Gurra and Ms CHENG

Hong, wife of Premier LI Keqiang.



L Mrs Lulu Gurra (left), Ms CHENG Hong (middle)

and Minister of Foreign Affairs WANG Yi listening to
Premier LI Keqiangs keynote speech.

L Premier LI Keqiang and Secretary-General Angel

Gurra (centre left, right) with high-ranking OECD and
Chinese officials, July 2015, Paris.

Finding global solutions

at the G20
The OECD collaboration with China in important
intergovernmental processes such as G20 and APEC offers
new opportunities to strengthen joint approaches to global
economic governance. In 2016, the OECD works closely
with the Chinese G20 Presidency to further coordinate
global solutions to help accelerate the economic recovery
and promote a dynamic, inclusive and rules-based global

The OECD co-operates closely with the Presidencies of the G20, in

framing, developing and carrying out their priorities. Over the past
few years, the OECD has been supporting the definition, adoption
and implementation of G20 commitments over the years, including
the G20 National Growth Strategies, the G20 gender and youth
employment targets, the definition and implementation of new
global standards for the automatic exchange of tax information
(AEoI) and reforming the international tax architecture to address

Family photo of the G20 Finance Ministers and Central Bank Governors Meeting, 27 February 2016, Shanghai.


Base Erosion and Profit Shifting (BEPS), the G20/OECD corporate

governance standards, the monitoring of protectionist trade
and investment measures, further understanding the policy
implications of Global Value Chains (GVCs), and implementing the
G20 development agenda, to name just a few.
Since 2009, the G20 has become an essential conduit for the OECD
to build a closer relationship with Key Partner economies, including

China. China has been strongly engaged with the OECD to support
the G20 in tackling tax evasion and improving tax transparency.
It has played a leading role in key OECD/G20 initiatives such as
the Base Erosion and Profit Shifting (BEPS) project, in which China
participates on an equal footing with OECD Member countries, and
has endorsed several important instruments such as the OECD
Declaration on Automatic Exchange of Information (AEOI), which
commits countries to implement the new single global standard
on automatic exchange of information endorsed by G20 Finance
Ministers in February 2014. China has also conveyed strong interest
in the OECDs innovative work on trade in value-added, GVCs
and services trade. More recently, China invited the OECD to be a
member of the peer review team of its fossil fuel subsidies exercise,
carried out under the G20 in 2015.
The Chinese G20 Presidency in 2016 represents a breakthrough
opportunity for the OECD to consolidate its engagement with
China on many key policy issues, including Chinas priorities
to promote an Innovative, Invigorated, Interconnected and
Inclusive World Economy. The OECDs expertise on innovation,
the digital economy and the new production revolution will
help the G20 maximise the contribution of technological and
ICT innovations to inclusive productivity and growth. The
Organisation is taking the lead in providing the analytical basis
and the policy options for a G20s reinvigorated structural reform
agenda and to support Chinas ambitious international trade
and investment agenda in the newly established G20 Trade and
Investment Working Group. The OECD is also partnering with
the G20 Presidency to ensure an inclusive and comprehensive
implementation of the G20/OECD BEPS project and of the
new AEoI standards. Furthermore, China will also rely on the
OECDs expertise to support its priorities in other areas, such as
development, green and climate finance, energy, employment and
anticorruption. These avenues of co-operation provide the OECD
with an opportunity to demonstrate the wide coverage of its tools
that are of particular relevance to the Chinese G20 agenda. A joint
OECD/China G20 Skills Development Programme developed

together with the Chinese Ministry of Foreign Affairs was

launched in 2015, with the aim of supporting Chinas role in global
governance, focusing on its G20 Presidency in 2016.
On a regional scale, collaboration between China and the OECD
took one step forward through the Asia-Pacific Economic Cooperation (APEC), with the aim of achieving sustainable economic
growth and prosperity in the Asia-Pacific region. Under Chinas
APEC Presidency in 2014, the OECD supported the APEC process and
agenda-setting, particularly on economic and financial reforms,
investment and infrastructure, tax, trade and GVCs. The OECD
has also been working closely with the Chinese government on
the APEC TiVA Initiative to develop TiVA data in the APEC region,
and on open and competitive services sectors to support industrial
upgrading. Furthermore, the OECDs expertise was instrumental
to the development of the APEC Strategic Blueprint for Promoting
GVCs Development and Co-operation, which was endorsed by

APEC Leaders in 2013. In 2015, the Organisation supported APEC

on trade, inclusive growth, SME internationalisation, disaster
risk management, financial integration and transparency,
infrastructure investment delivered in the Cebu Action Plan.
The Organisation has also been assisting APEC members in the
development of a Services Competitiveness Roadmap. Currently,
the OECD is supporting the 2016 Peru Chairmanship and is already
working with Viet Nam (2017 APEC Host). These ever closer links
with APEC constitute additional opportunities to forge a meaningful
and fruitful partnership with China.
The OECD supports China in channelling its G20 Presidency
into a full success. China can count on the OECD to strengthen
its contribution to global governance to make a globalisation a
more harmonious process.

OECD Secretary-General
Angel Gurra and
Chinese Minister of
Finance LOU Jiwei
jointly launched the 2016
OECD Going for Growth
report during the G20
Finance Ministers and
Central Bank Governors
Meeting, 26 February
2016, Shanghai.


Joint Programme of Work for

Minister of Commerce
GAO Hucheng with
Angel Gurra, SecretaryGeneral of the OECD
after the signing of the
OECD-China Programme
of Work, in the presence
of Premier LI Keqiang,
July 2015, Paris.

The OECD and China, represented by Minister of Commerce

GAO Hucheng, signed in July 2015 A Vision for Medium Term
and a Programme of Work for 2015-2016, in the presence of
Premier LI Keqiang.
This joint work programme opens an important new chapter in
the OECD-China relationship, lays out the blueprint and draws a
roadmap for enhanced co-operation in the years to come.
Building on more than 20 years of mutually beneficial cooperation in a wide range of policy areas, the Programme of
Work will further deepen the engagement between the OECD
and China, specifically in 20 priority areas which include
national growth strategies, energy efficiency, food security,
innovation, the development of services, fiscal affairs, taxation,

trade, investment, financial education, consumer protection,

anti-corruption, employment and gender.
Through this Programme of Work, the OECD puts its evidencebased expertise at Chinas disposal to support the country in
tackling complex policy challenges and advancing structural
adjustment. In return, Chinas perspectives will enrich policy
discussions at the OECD and will contribute to the development
of global rules.
Since the signature, the OECD has been working closely with the
Ministry of Commerce and other partner ministries to support
the implementation of the far-reaching and ambitious 20152016 programme of work.

The OECD-China Skills

Development Programme
The OECD launched a Skills Development Programme with
China in March 2015 under the leadership of the G20 Sherpas
from China and the OECD. It was enshrined in July 2015 via a
Memorandum of Understanding, signed by Minister of Foreign
Affairs WANG Yi and Secretary-General Angel Gurra in the
presence of Premier LI Keqiang.

the University of Pennsylvania, it provides officials with training

in areas such as communication, negotiation and leadership.
The training is complemented by a four-week secondment at
the OECD Secretariat, during which Chinese officials have the
opportunity to contribute to and learn from OECD evidencebased working methods and expertise.

The Programme is tailored to Chinese officials involved in

international and multilateral economic discussions and
negotiations, with a focus on Chinas G20 Presidency this year.
Building on the OECD partnership with the Wharton School of

To date, the Skills Development Programme has offered training to

20 Chinese officials from the Ministry of Foreign Affairs and other
ministries. It will continue to provide support to Chinas 2016 G20
Presidency and the countrys increasing role in global governance.

OECD and Chinese officials, at the launch of OECD-China Skills Development

Programme, March 2015, Beijing.


Minister of Foreign Affairs WANG Yi with Angel Gurra, Secretary-General of the OECD during the signing of the MOU for the OECD China Skills Development Programme,
July 2015, Paris.

The OECD Development Centre

and China
The OECD Development Centre occupies a unique place within
the OECD and in the international community. It is a forum
where countries come to share their experience of economic and
social development policies. With its objective to help decision
makers find policy solutions to stimulate growth and improve
living conditions in developing and emerging economies, the
Centre contributes expert analysis to the development policy
debate. It co-operates closely with the other parts of the OECD,
particularly those also working on development issues.
The OECD Development Centre membership is open to both
OECD and non-OECD countries. Members set the programme of
work and budget of the Centre through its Governing Board and
finance the Centre. Today, the Centre comprises 50 countries,
of which 26 are OECD Members and 24 are developing and
emerging economies.
Represented by the Development Research Center (DRC) of
the State Council, China became a member of the OECD

DRC President LI Wei

with Angel Gurra,
Secretary-General of
the OECD during the
signature of Chinas
Membership to the
OECD Development
Centre, in presence of
Premier LI Keqiang,
July 2015, Paris.

Development Centre on 1st July 2015. This membership

recognises both Chinas sound experience in development and
the OECD Development Centres role in convening a policy
dialogue to advance policy solutions and best practices for an
inclusive and sustainable development. Chinas accession to
the OECD Development Centre also opened new opportunities
for co-operation. For instance, in October 2015, the OECD
Development Centre was invited to join other founding
members in launching the SiLKS, a network of Think Tanks of
the Silk Road which is devoted to facilitate exchanges, mutual
understanding and joint research across countries along the
Silk Road.
The OECD Development Centre has carried out significant research
and dialogue on inclusive growth, economic restructuring, poverty
reduction, the United Nations post-2015 agenda, the G20, global
value chains, and sustainable development and has achieved
remarkable results.
LI Wei, President of Chinas Development Research Center of the State Council

In todays interconnected world, the effectiveness of

governmental co-operation in the global arena depends on
mutual understanding and trust. To foster knowledge-sharing and
reinforce ties between the OECD and the Chinese administration,
the OECD set up a Programme of Temporary Assignments for
Chinese Government Officials to the OECD in 2012.
The Programme gives Chinese mid-level officials the
opportunity to work in the OECD Secretariat in Paris for several
months, on a specific assignment in relation to their area of
work. Through these secondments, the Chinese officials help
their Ministry of origin gain a better understanding of the OECD
and its work and how it can support Chinas reform efforts, and
in return help the OECD better integrate Chinas perspectives
into its analyses.
Since 2012, the Programme has welcomed 26 Chinese officials
who worked on policy issues identified as priority in the
governments 12th Five-Year Plan for National Economic and

Social Development. Their assignments cover a wide range of

policy areas, from reviews of Chinas urban policy, research on
sustainable agriculture productivity, to the measuring of wellbeing, comparative research on global value chains and policy
exchange on tax matters, and more.
These officials have been sent from more than ten key
Chinese ministries and institutions, which include the National
Development and Reform Commission; the Development
Research Centre of the State Council; Ministries of Commerce,
Finance, Science and Technology, Environmental Protection,
Water Resources, Agriculture, and Transport; the State-owned
Assets Supervision and Administration Commission; the State
Administration of Taxation; and the Peoples Bank of China.
They form the basis of an effective, sustainable and inclusive
platform through which the OECD and China can enhance
policy dialogue and mutual learning.
Working in the OECD is a precious opportunity as well as a
challenging experience for me. During the relatively short period, I
acquired plenty of expertise while at the same time, shared Chinas
experience with OECD colleagues. The expertise, preciseness and
efficiency of OECDs experts impressed me most. Government
officials from across the world will, through the excellent platform
provided by the OECD, have in-depth co-operation so as to make
greater contributions to the development of the worlds economy.
I sincerely hope to work at the OECD again in the future.
ZHU Kai, State-owned Assets Supervision and Administration Commission
Seconded to the OECD Directorate for Financial and Enterprise Affairs
October 2014 - January 2015



Secondment Programme: Chinese Government Officials

working with the OECD Secretariat

Over the last 20 years, OECD has been strengthening and shaping a common and
mutually beneficial agenda with China, in the national and multilateral context.
Last year, Prime Minister LI Keqiang made a historic visit to the OECD, a Joint Work
Programme was established, implementing our ambitious Framework Agreement, and
China joined the Development Centre. This year, OECD will be working with the Chinese
G20 Presidency to further develop, at a global level, better policies for better lives in several
areas, including green growth, sustainable development and better investment climate for
jobs and growth.
Paulo Vizeu Pinheiro, Ambassador of Portugal to the OECD
Chair of the External Relations Committee

As permanent representatives of Australia and The Netherlands, we are thrilled to be the

new chairs of the OECDs Informal Reflection Group on China. It will be another big and
substantial year for the China and OECD relationship. Looming large is Chinas presidency
of the G20 for which the OECD will provide substantial inputs through the provision of
key data and expert analysis. This year will also see the OECD conduct a further Economic
Survey of China. The strong interest of OECD Member States in the impact of China on
the world economy, financial markets, energy, trade and investment will ensure a great
appetite to engage in lively discussions on all things China in 2016 and beyond.
Joint statement from Co-Chairs of the China Informal Reflection Group No van Hulst, Ambassador of the
Kingdom of the Netherlands to the OECD and Brian Pontifex, Ambassador of Australia to the OECD

The OECDs Global Relations Strategy seeks to make the Organisation a more effective and
inclusive global policy network, through close co-operation with China and other partners.
Building on 20 years of mutually beneficial co-operation, the OECD and China signed a joint
Programme of Work for 2015-2016, in the presence of Premier LI Keqiang. This Programme
will deepen our engagement in a broad range of policy areas where Chinas perspectives
will enrich the global policy debates at the OECD, and will contribute to the development of
global rules. Our collaboration in important intergovernmental processes such as APEC and
G20 also offers new opportunities to strengthen joint work on global governance.
Marcos Bonturi, OECD Director of Global Relations





Maintaining economic balancing

and resilience
After more than thirty years of sustained double-digit growth,
China is facing the challenges of rebalancing and structural
adjustment. The OECD provides policy makers with rigorous
analyses of Chinas macroeconomic and structural policies
and emerging trends to guide policy reform.

comprehensive assessment of how government policy reforms

affect economic performance and their citizens well-being. It
identifies new priorities to revive growth and underscores the
importance of synergies among policies in designing reform

Through different publication series, the OECD examines

macroeconomic and structural policies and developments, as
well as their interaction. Twice a year, the Economic Outlook
analyses recent global economic developments and provides
projections for 45 economies, including China.

The Economic Surveys, published biennially for each OECD

Member and Key Partner economy, analyse major economic
challenges and propose reform options drawing on international
best practices. The fourth Economic Survey of China, prepared
in co-operation with Chinas State Information Centre of the
National Development and Reform Commission, was released
in Beijing in March 2015. It offers recommendations on how to
promote more sustainable and inclusive growth, with a focus
on providing the right skills to all and bridging the gap for rural
areas. The next edition of the Survey will be released in March

Going for Growth provides an annual comparative overview

of structural policy developments and reform priorities for
maintaining long-term growth, improving competitiveness and
productivity and creating jobs. The 2015 edition highlights the
outcome China could achieve relying on further education reform,
stronger social protection of migrants, easier private sector entry
in sectors dominated by state-owned enterprises and better
enforcement of the rule of law. Going for Growth 2016 offers a





Enhancing Chinas
economic partnerships
Chinas growing impact on developing countries has been at
the core of the OECDs regional economic outlooks on Africa,
Latin America and Southeast Asia.
The African Economic Outlook is a joint product of the African
Development Bank, UNDP and the OECD Development Centre.
It is discussed annually with Chinese and international
stakeholders in Beijing, and assesses the economic and
social performance of the continent and its 54 countries.
The 2015 edition focusses on rural development and spatial
inclusion, featuring analysis on the success and applicability of
Chinas economic corridors policy for African countries rural
development strategies.
The Latin American Economic Outlook, jointly produced with
the Development Bank of Latin America (CAF) and the
United Nations Commission for Latin America, has been
translated into Chinese since 2009. The report is presented each
year at an annual conference organised by the CAF and the
Chinese Academy of Social Sciences (CASS). The 2016 edition,

Towards a new partnership with China, launched during

the China Development Forum in March 2016, focuses on the
evolving relationship between China and Latin America as well
as its prospects in the long term.
The annual Economic Outlook for Southeast Asia, China and India,
produced by the OECD Development Centre in collaboration
with the ASEAN Secretariat, provides medium-term economic
forecasts, country notes of structural policy and topic-focused
analysis on China and other emerging economies in Asia. The
2016 edition of the Outlook focuses on strengthening regional
ties. The analysis regularly informs the OECD-AMRO-ADB Joint
Asian Regional Roundtable organised annually to discuss nearterm macroeconomic and structural policy challenges in the
region and promote knowledge sharing on better policies.



Fostering inclusive growth

Rapid growth has transformed China over the past three

decades. Yet, there is a need to address the quality and the
inclusiveness of economic growth to ensure the benefits of
growing prosperity are shared evenly. The OECD provides
evidence-based analysis, shares international best practices
and identifies policy options in support of Chinas efforts to
foster inclusive growth.
The OECD works with governments to identify policy
solutions to break down the barriers to inclusive growth. All
on Board: Making Inclusive Growth Happen in China, a report
commissioned by the National Development and Reform
Commission (NDRC), and praised by Premier LI Kegiang during
his visit to the OECD in July 2015, provides valuable insights to
the development of the countrys 13th Five Year Plan (FYP). It
examines the key drivers of multidimensional living standards
in China and proposes a roadmap for promoting inclusive
growth, through policies to reduce the urban-rural income
gap, improve access to quality health care for all, make the
tax-benefit system more equitable, and enhance educational
attainment and skills of the labour force. OECDs work on
inclusive growth and development also cover other countries
such as India, Mexico, Korea, and OECD Members.
Given the important role of cities and metropolitan areas in
making inclusive growth happen, the OECD will launch the
Inclusive Growth in Cities Campaign in late March 2016 to
increase awareness of rising inequalities, refocus the debate on
concrete solutions and empower local governments as leaders
in the transition towards more inclusive growth.



Greening growth

Like many other countries, China faces the challenge of

handling the trade-off between economic growth and
environmental pressure. Through in-depth research and
collaborative projects with the Chinese authorities, the OECD
has been increasing its support for Chinas efforts to promote
a green transition of the countrys growth.
The OECD provides concrete and targeted advice to its Members
and partner countries through the OECD Green Growth Strategy
and its three landmark reports - Towards Green Growth, Towards
Green Growth: Monitoring Progress OECD Indicators and Tools
for Delivering on Green Growth. In addition, a report titled
Towards Green Growth? Tracking Progress was published in June
2015, which synthesised OECD analysis and country experience
including from Key Partner countries. When tailoring green growth
strategies to developing countries, the OECD assesses in particular
the links between green growth and poverty reduction, and
identifies the changes needed in sectors such as agriculture and
infrastructure to promote sustainable development. Addressing
the abovementioned challenges also requires good alignment
of existing policies. Aligning Policies for a Low-Carbon Economy
published in July 2015, points to a number of misalignments in
policy domains such as finance, taxation, trade policies, innovation
and adaption, as well as in three specific sectors electricity, urban
mobility and land-use. Examples from China and other emerging
economies helped enrich this policy diagnosis process.
In 2015, the Organisation embarked on a collaborative project
on Fostering Green Growth in China in a Context of Industrial
Upgrading, with the Development Research Center (DRC) of the
State Council. The project aims to identify the most effective
policy mix and institutional settings to foster a green transition
of Chinas industrial sector over the 20162020 period and
beyond, in line with the objectives of the 13th Five-Year Plan.

and Development (CCICED), a high-level advisory body composed

of leading Chinese and international senior officials and experts
in the field of environment and development. In recent years, the
OECD has hosted several expert seminars on green growth with
the CCICED Task Force members. In 2015 the OECD participated
in the meeting of the Task Force on Green Finance and presented
findings of the OECD report Climate Change Reporting Schemes
in G20 Countrieshighlighting the importance of improving
climate-related information by companies.
Chinas important role in green growth and in the region is
reflected in the OECD 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 its development objectives. The
final report, together with a database of green-growth indicators
for Asian countries, was released in 2014. Beyond that, the OECD
has also been assessing policies for green growth in Asias fastgrowing cities through its Urban Green Growth in Dynamic
Asia project, which places particular emphasis on ten ASEAN
countries, China and India.


The OECD also participates in and contributes to the work of the

China Council for International Co-operation on Environment

Promoting responsible business

In 2015, the release of the Chinese Due Diligence Guidelines
for Responsible Minerals Supply Chains which draws upon
OECD instruments, and a number of important co-organised
events have strengthened the OECDs co-operation with China
on responsible business conduct (RBC). The OECD will support
to the improvement of the business environment in China,
the countrys Go Abroad strategy and its efforts to align with
international standards.
In collaboration with the Ministry of Commerce (MOFCOM),
the OECD actively supports Chinese companies alignment to
international standards in business responsibility. The OECD also
has been strengthening its relationship with Chinese industry
partners such as the China Chamber of Commerce Metals,
Minerals & Chemicals Importers and Exporters (CCCMC), a key
interlocutor to promote responsible mineral supply chains, and
with the China National Apparel and Textile Council (CNTAC).
In May 2015, the OECD and the Chinese Academy of
International Trade and Economic Co-operation (CAITEC) of
MOFCOM held a joint workshop to exchange experiences and
share information between the National Contact Points (NCPs)
for the OECD Guidelines for Multinational Enterprises and
the Chinese authorities, businesses and other stakeholders
that work on responsible business. In December 2015, CCCMC
launched the Chinese Due Diligence Guidelines for Responsible

Minerals Supply Chains. The Chinese Guidelines are based on

the OECD Due Diligence Guidance for Responsible Minerals
Supply Chains from Conflict-Affected and High-Risk Areas and
the UN Guiding Principles on Business and Human Rights.
In 2016, the OECD will further assist China in understanding
and using the Guidelines for Multinational Enterprises, by, inter
alia, conducting joint research mapping Chinese standards for
RBC against relevant international standards; developing an
audit programme for the Chinese Due Diligence Guidelines for
Responsible Minerals Supply Chains; promoting responsible
supply chains in the agricultural, and garment/footwear sectors;
and encouraging meaningful stakeholder engagement in the
extractive sector.

Roel Nieuwenkamp, Chair of the OECD Working Party on Responsible

Business Conduct at the 2015 International Workshop on Responsible Mineral
Supply Chains, co-hosted by the OECD and CCCMC, December 2015, Beijing.




Boosting regional development and

improving urbanisation
The OECDs work on policies to promote regional
competitiveness and effective regional governance
can support Chinas effort to bridge differences in
the development of its different territories and foster
urbanisation as a major driver of economic growth.

OECD has established comprehensive regional and 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

The environmental and social sustainability of cities is

prominent on Chinas policy agenda as highlighted in the
Urbanisation Plan 2014-2020. In co-operation with the NDRC,
the OECD produced an Urban Policy Review of China in 2015
to promote a smart, sustainable and people-centred urban
development model. Built on a joint report on Urbanisation and
Green Growth in China (2013) produced in partnership with the
China Development Research Foundation, this review defines
urban areas in China, assesses the main challenges to overcome
urban governance and provides policy recommendations to
increase intergovernmental co-ordination and foster capacity
for urban development. Other recent work includes a report on
The Competitiveness of Global Port-Cities (2013), which provides
two case studies on improving the performance and governance
of the port of Shanghai and Hong Kong, China.

The OECD devoted its first regional review of a Chinese region

to Guangdong Province. The 2010 review discussed how selected
OECD principles and good practices on regional development
could help the province address priority economic and
environmental challenges. In addition, several Chinese cities
such as Dalian, Tianjin, Qingdao and Yantai had also been
included in the 2009 study Trans-border Urban Co-operation
in the Pan Yellow Sea Region. In 2015, in collaboration with
Chinese Academy of Social Sciences, the OECD organised the
International Forum on the Yangtze River Economic Zone and
the Construction of Three Gorges Urban Cluster, to exchange
international experience and best practices in promoting
integrated regional development and fostering new growth
powerhouse, as well as to provide practical advices based on
actual regional circumstances.
To facilitate comparative analysis at a sub-national level, the


Stefan Kapferer, OECD Deputy

Secretary-General during the launch
of the Urban Policy Review of China
in China International Urbanisation
Forum, April 2015, Shanghai.



Increasing agricultural productivity and

ensuring food security
China has made major progress on food security: the number
of undernourished fell from 289 million in 1990-1992 to an
estimated 134 million in 2014-2016, representing 72% of
the worldwide drop. Access to sufficient food still remains a
struggle for many households, especially among the poorest
in rural areas.
The collaboration between the OECD and China on agriculturerelated issues is strong. The OECD is currently working in
collaboration with the Development Research Centre of
the State Council and the Ministry of Agriculture (MOA) to
conduct a joint country study on agriculture policy, including
a comprehensive review of policies to improve agriculture
productivity growth sustainably. In October 2015, the OECD and
the Agricultural Trade Promotion Centre of MOA, in co-operation
with the International Centre for Trade and Sustainable
Development organised a workshop titledAgro-food Trade
and Food Security, which addressed policy options to enhance
positive and minimise potential negative implications of trade
openness on food security, in view of the evolving agricultural
markets and experiences of various countries.

was released in Beijing at the World Agricultural Outlook

Conference. Chinas agricultural sector is also a major focus of
the 2015 OECD Economic Survey of China, with one of the two
thematic chapters focusing on agricultural reforms to improve
productivity and rural living standards.
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 Codes
since 1988. Recently, China was offered the position of Bureau
Member of the OECD Tractor Codes Committee, and is currently
in discussions with the OECD on the matter. Discussions are
also ongoing between the two sides on China joining the OECD
Schemes for the Varietal Certification or the Control of Seed
Moving in International Trade (Seed Schemes).

The annual OECD publication Producer Support Estimates

provides monitoring and evaluation of the level and
composition of government support to agriculture in OECD
member countries and emerging economies, including China.
These results are compiled in the report Agricultural Policy
Monitoring and Evaluation. China has been included in every
other edition since 2005, most recently in 2015.
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 featured
a chapter on the prospects and challenges facing Chinas
agro-food sector in the next decade, which was prepared with
the Chinese Academy of Agricultural Sciences (CAAS), and



Better data
for better policies
The OECD maintains comprehensive databases of internationally
comparable statistics to support its analytical and policy work
and countries policy making process. The Organisation also
develops and promotes international statistical standards
and coordinates statistical activities with other International
For over a decade, China has been included in some of the most
high profile and important OECD databases. These include a
range of short term economic statistics, for instance, 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 economic developments
and are used in the modelling of the business cycle. Additionally,
China has been included in the National Accounts databases,
and since 2012 its quarterly GDP in volume terms have also been
included. 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. Our co-operation on statistics was also
reflected in OECDs work on social development. Officials from the
Development Research Centre of the State Council participated
through secondment and worked closely on the OECD Better
Life Initiative. In 2015, the OECD flagship publication Hows Life?
Measuring Well-being included data of China, which has enriched
the evidence-based analysis and policy discussion at the OECD.
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 international comparisons between China and OECD
partner countries. To this end, a technical dialogue with Chinas
National Bureau of Statistics (NBS) has been ongoing since 1996,
in particular in the area of National Accounts, and in March
2015 a Memorandum of Understanding was signed to frame
future co-operation. While pursuing contacts with NBS to get

estimates from the Integrated Household Survey based on OECDspecifications, the OECD computes estimates based on micro-data
from the China Family Panel Studies, an annual longitudinal
survey of Chinese families and individuals launched in 2010 by
the Institute of Social Science Survey (ISSS) of Peking University.
Analysis of data comparability and consistency is ongoing; the
results could be useful to inform policy design and decisions.
Playing a leading role in policy areas of international trade in
value added (TiVA) and global value chains, the OECD works in
close collaboration with China to develop a TiVA database for the
APEC region.
With the support of the Ford Foundation, the OECD is currently
developing a set of pertinent and comparable indicators in the
area of income inequality for emerging economies, including
China, which will be integrated into the OECD Income Distribution



Strengthening dialogue on development

The OECD Strategy on Development, adopted in OECDs
2012 Ministerial Council Meeting, aims at strengthening the
Organisations contributions to higher and more inclusive
growth in the widest array of countries. Policy dialogue and
knowledge sharing will be enhanced to promote mutual
learning with partner countries and institution.
Through inclusive partnerships for development, the OECDs
Development Assistance Committee (DAC) helps ensure better
lives for people in the developing world by strengthening aid
delivery and effectiveness. The OECD has been supporting
China in maximising the potential of its foreign assistance,
while also learning from Chinas extraordinary success in

poverty reduction and development. The China-DCD Study

Group was formed in 2009, precisely for the purpose of sharing
knowledge and experience between China and DAC community
on promoting growth and alleviating poverty in developing
countries. Since then, nine roundtables, policy symposia and
high-level forums have been held on a number of critical
issues, such as the promotion of ethical business, private-public
partnership for development, aid evaluation and infrastructure,
bringing together a wide variety of stakeholders.
In addition to these ad hoc activities, China also enriches
discussion at the OECD by participating in DAC meetings, the
OECD Global Forum on Development and by contributing
to the OECD-WTOs work on tracking of aid for trade. As
countries start to implement the 2030 Agenda for Sustainable
Development, closer collaboration between China and the
OECD, including through the Global Partnership for Sustainable
Development, will be beneficial for supporting the achievement
of sustainable development goals in particularly developing





Enhancing co-operation
on international investment
International investment has played an important 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 and co-operation
on international investment to foster wellbeing, prosperity
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
Multinational Enterprises, 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
(PFI). Through the Freedom of Investment Roundtable (FOI)
hosted by the OECD, governments exchange information and
experiences on a broad range of investment policies, including,
for example, international investment law, the investor-state
dispute settlement system, or recipient countries policies
towards sovereign wealth funds.
The OECD 2016 Better Policies Series brochure on China focuses
on investment policies, describes the main policy issues China
is facing in its efforts to raise the efficiency and the quality of
its inward and outward investment and proposes ways that the
OECD instruments, experience and range of analytical tools
may assist China in performing this endeavour.It examines how
the macro-economic policy framework impacts investment
and, discusses measures for market functioning, focusing on
financial sector reform, capital account opening, regulatory
reform to enhance the framework conditions for domestic
and foreign private investment and reform of the state-owned
enterprises sector. The input also looks into the mainstreaming
of responsible business conduct and the greening of

infrastructure investment to contain the environmental

damages of growth.
As a major capital-importing and exporting country, China has
made important contributions to enriching the discussions on
investment-related issues at the the OECD. It has contributed
throughout the years to a wide range of OECD activities,
including the FOI Roundtable and the Global Forum on
International Investment, and has been involved in the update
of the PFI, in particular as 2014 APEC Chair. The country also
promotes international investment co-operation through two
major annual events in China - the China International Fair for
Investment and Trade and the China Overseas Investment Fair,
to which the OECD is a permanent co-sponsor.
Chinas Belt and Road initiative offers new opportunities to
increase the OECDs engagement with China in the investment
policy area. A founding member of the SiLKS, a network of Think
Tanks of the Silk Road, the OECD contributes to the creation of
an open and inclusive network for the sharing of best practices
and knowledge within and across countries along the Silk Road.


Facilitating trade and upgrading

in global value chains
Trade liberalisation has played a key role in Chinas economic
transformation. Keeping markets open is a share interest
among OECD countries and China. China participates in
OECDs work to develop a better understanding of global
value chains (GVCs) and their policy implications.
The OECD-WTO Trade in Value Added (TiVA) database was
recently 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 2015
release measures more precisely the value of goods and services
traded in 61 economies, including China, across 34 industries.
Further work on the mapping of GVCs will provide additional
evidence on the position and role of China in GVCs. The OECD
worked with China throughout 2014 as it hosted the Asia-Pacific
Economic Co-operation (APEC) to bring OECD trade-related
policy analysis to APEC discussions on a major GVC initiative,
and continues to support APEC trade policy efforts.

Represented by the Ministry of Commerce, China also

participated in 2014 and 2015 in meetings of the OECD Initiative
for Policy Dialogue on GVCs, Production Transformation and
Development. This platform gathers OECD and non-OECD
countries to share knowledge and identify good practices to
promote industrial development and upgrading of domestic
production and innovation capabilities.
A G20-OECD Stocktaking Seminar on Small and Medium
Enterprises (SMEs) and Low Income Developing Countries
(LIDCs) took place at the OECD on 2 June 2015, where a report
on the policy options in trade and complementary areas for
GVC Integration by SMEs and LIDCs was released.

At the invitation of the Chinese government, the OECD is a

permanent co-sponsor of the annual China Beijing International
Fair for Trade in Services (CIFTIS). In 2014, the OECD launched
a regulatory database of services regulations, encompassing
19 services sectors and sub-sectors in 42 countries, including
China. This qualitative database is complemented by quantified
indices of services trade restrictiveness (the Services Trade
Restrictiveness Index STRI) which provide the information
needed for policymakers to scope out reform options, benchmark
them and assess their likely effects; for trade negotiators to clarify
the restrictions that most impede trade, growth and employment;
and for businesses to shed light on the requirements that traders
must comply with when entering foreign markets.
In addition, China is included in the OECD Trade Facilitation
Indicators (TFIs) with over 160 other countries. The TFIs identify
priority areas for reform to improve border procedures and reduce
trade costs for countries at various stages of development.



Promoting sound
The OECD works with China to break down barriers to rulesbased competition and ensure consumers can benefit 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 co-operation
between competition enforcers, on hard core cartels, and on
assessment of government policies for anti-competitive effects.
The OECD Competition Assessment Toolkit provides a checklist
for policy makers to review laws and regulations that could
restrain competition. The Operational Manual for Competition
Assessment, available in 2015, provides a step-by-step guide
for performing competition assessments. 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.



Co-operation with China has strengthened in the last few years

as Chinas competition authorities increase their enforcement
capabilities. Officials from China attend meetings of the
OECD Competition Committee. In addition, during 2015, the
translation into Chinese of 56 executive roundtable summaries
was published in a book by the China Law Press. This will allow
Chinese officials and the antitrust community more broadly to
use and benefit from OECD competition policy work.
In 2015, the three Chinese competition enforcement agencies
were also closely involved in OECD activities, for example,
via workshops organised by the OECD/Korea Policy Centre
Competition Programme for the Asia-Pacific region.


Developing a robust
financial system
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 OECD Business and Finance
Outlook and the OECD Journal Financial Market Trends.
The OECD also assesses and develops reform measures related
to banking, securities, capital market reforms, institutional
investors (in particular, insurance companies and private
pension schemes), long-term investment (ranging from
infrastructure to SME financing), green finance and growth, as
well as financial consumer protection and financial education.
In addition, it facilitates policy dialogue and exchange of
experiences in these areas.

Markets and, more recently, in the Advisory Task Force on the

OECD Codes of Liberalisation. Furthermore, China attended
the first Asian Roundtable on Financial Consumer Protection
and related follow-up events and has been contributing and
supporting the work of the G20/OECD Task Force on Financial
Consumer Protection. China has also been involved in the work
of the International Network on Financial Education (INFE).

Over the past decade or so, good macroeconomic fundamentals,

sound regulations and a limited exposure to international
markets have helped to promote the smooth functioning
of the Chinese financial system and to shield it from major
repercussions during the global economic and financial crisis.
However, more recently, along with structural changes in the
Chinese economic and financial system, strong credit growth
risks have been accumulating, especially in the shadow
banking sector, and the renminbis rising role in currency
markets has generated concern that has had repercussions on
global markets. These developments 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 Management as well as the OECD/World Bank/IMF
Global Bond Market Forum. China has also been participating
as an invitee in meetings of the OECD Committee on Financial

Improving financial
China needs to enhance access to and use of financial services
for its citizens. Investor education also could be improved to
promote better investment. The OECDs best practices and
its range of tools can support Chinas effort in developing a
national framework to promote effective financial inclusion
and stability.
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 to
undertake analytical work and develop good practices. The
network currently focuses on a wide range of topics including
the development of financial education for micro, small and
medium-sized enterprises, and support for current and future
users of digital financial services. China has a strong presence
in this network. Official members include the Peoples Bank
of China, the China Banking Regulatory Commission, and the
China Institute for Educational Finance Research.

China is currently developing its National Strategy for

Financial Education, which follows the recommendations of
the OECD and is based on the co-operation between public
authorities with an interest and mandate in financial consumer
empowerment, as detailed in Chinas contribution to the G20OECD Publication Advancing National Strategies for Financial
Education in 2013. Information about China including specific
details regarding Hong Kong, China are also included in the
OECD/INFE Policy Handbook on the implementation of national
strategies for financial education, developed in response to a
call from G20 leaders in 2013 and delivered to the 2015 Leaders

Shanghai-China participated in 2012 in the first ever Financial

Literacy Assessment in the OECD Programme for International
Student Assessment (PISA), and in 2015, three more Chinese
cities and provinces participated in the second assessment
(Beijing, Guangdong and Jiangsu). In addition, Hong Kong,
China is participating in the current OECD/INFE international
measurement exercise designed to survey the levels of financial
literacy and financial inclusion among adults, and other parts of
China may join this exercise in the future.




Implementing effective
consumer policy
The OECD helps governments, including China, design
effective consumer policies to support the development of
efficient, transparent and fair global markets for consumers.
In 2014, the OECD adopted a Recommendation of the Council
on Consumer Policy Decision Making, which provides a
framework for assessing consumer problems and developing
effective policy responses. The recommendation draws on
governments experiences in using the OECD Consumer Policy
Toolkit, developed in 2010. Work in this area also focuses on
e-commerce and product safety. In the field of e-commerce,
policy guidance was finalised in 2014 that addresses issues in

the fields of mobile and online payments and digital content

products. Efforts are also underway to update the basic
Guidelines for Consumer Protection in the Context of Electronic
Commerce, developed in 1999.
China has been involved in OECD work on consumer product
safety. The countrys General Administration of Quality
Supervision, Inspection and Quarantine has participated in a
number of OECD events and follows the work of the Working
Party on Consumer Product Safety to share information with
the OECD Members and other non-Member economies. A webbased global database was launched by the Working Party in
October 2012 to gather information on global product recalls. A
second database has also been developed to help track policy
and regulatory developments. A third database will provide a
platform for sharing information on injuries.





Strengthening regulatory
The OECD provides its Member and Partner countries with
evidence-based research, globally recognised instruments
and inclusive initiatives to strengthen regulatory governance.
Through the Guiding Principles for Regulatory Quality and
Performance and the APEC-OECD Integrated Checklist on Regulatory
Reform, the OECD helps its Member and partner countries to
design and implement regulations to enhance the functioning of
markets, protect health, safety and environment, deregulate when
appropriate and encourage more open competition.
While China has made enormous progress in developing
a 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.

Many of these challenges were identified in the Regulatory

Reform Review of China, conducted in co-operation with the
NDRC in 2009, and they still hold today. The 2009 Review also
advised the government to improve its regulatory capabilities,
ensure transparency of regulation and simplify, revise or
eliminate regulation when necessary. The OECD also recently
developed a set of Best Practice Principles for Regulatory
Policy, which can support Chinas efforts to develop rulesbased, effective and coherence regulatory governance.
They OECD is currently exploring collaboration with relevant
Chinese authorities, in particular the Ministry of Commerce,
on how to introduce the Recommendation of the Council on
Regulatory Policy and Governance to China, as well as encourage
Chinas participation in the Network of Economic Regulatory
and related activities.



Enhancing budgeting and public

expenditure efficiency
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 collaborates with
the Chinese Ministry of Finance on budgeting system reforms.
The OECD carries out research across the full range of
budgeting issues through reviews of country budgeting systems
and comparative analysis of specific aspects of the 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.
China is an active participant in the OECDs Senior Budget
Officials Regional Network for Asia, which brings together
budget directors and senior officials from Asian and OECD
countries to share policy experiences and discuss common
budgetary issues. The work of this Network is based on three
pillars: cross-country analytical studies to identify best
practices, peer reviews of the budgeting systems of countries in
the region, and a database of budget institutions and practices
in Asia.
Currently, co-operation with China focuses on the issues of
budget transparency and public governance of public-private
partnership (PPPs) arrangements. The OECD and China are
co-operating on two pieces of research highlighting trends and
experiences in budget transparency, from both an institutional
and methodological perspective, and on tools, institutions and
experiences of PPPs from key OECD countries. The OECD also
contributed to the Chinese APEC Chairmanships focus on PPP
in Fuzhou and in Dalian in 2014.




Improving tax transparency

and compliance
For two decades, the OECD has been working with China
on domestic tax reform and on enhancing international tax
co-operation. In 2015, a number of key tax initiatives have
increased Chinas engagement with the OECD.
In the past 20 years, co-operation with China has resulted in the
delivery of around 120 technical events under the Global Relations
Programme on tax policy and administration issues, attended by
more than 15,000 Chinese tax officials. The events have helped
China integrate into the global tax community and implement
taxation and administrative measures that are in line with
international best practices and standards. Building on this cooperation, China became Participant on the Committee on Fiscal
Affairs (CFA) in 2005. In April 2013,an MOU was signed between
the State Administration of Taxation (SAT) and the OECD setting
out areas of co-operation on tax issues. This MOU was renewed in
December 2015 and a second MOU was signed simultaneously to
establish an OECD-SAT Multilateral Tax Centre in Yangzhou.

role in the FTA work including capacity building. In addition,

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 130 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.

In 2013, China became an Associate in the OECD/G20 project

on Base Erosion and Profiting Shifting (BEPS), as well as in
the Working Party 10 on Exchange of Information and Tax
Compliance. China, as a G20 country, plays a major role in the
BEPS project as Bureau Plus member of the CFA and vice-chair
of Ad Hoc Group on Multilateral Instrument.
In August 2013, China signed the Multilateral Convention on
Mutual Administrative Assistance in Tax Matters, which is
designed to improve the ability of tax authorities to tackle
tax evasion and avoidance. In order to ensure the practical
implementation of the Convention, China and the OECD signed a
Multilateral Competent Authority Agreement in December 2015.
China is also a Bureau member of the Forum on Tax Administration
(FTA), which brings together Tax Commissioners from 46 economies
to improve tax compliance. China will host the next FTA Plenary
meeting in May 2016 in Beijing and is currently playing a key

Secretary-General Angel Gurra handed over

OECD work on BEPS and its guiding documents
(in Chinese) to Commissioner of Chinas State
Administration of Taxation WANG Jun, after a
bilateral meeting in March 2015, Beijing.



Fighting transnational
Effectively combating transnational bribery can enhance
Chinas fast growing outbound investment. China would
benefit tremendously from joining its economic peers in the
fight against international bribery as a Party to the AntiBribery Convention.
The Anti-Bribery Convention is the keystone of international
anti-bribery efforts. Accession to the Convention would enhance
Chinas enforcement of transnational bribery and facilitate
stronger international co-operation in these cases. China would
also directly contribute to international standards and policy
making, and actively participate in monitoring implementation
of these standards by its trade and investment partners and
competitors. The Convention helps countries to advance
antibribery as a matter of transnational public policy and to
enhance trust in the global economy, public institutions and
private industries.

for sharing its good practices, including for preventing and

detecting corrupt activities by state-owned enterprises
conducting business in foreign markets.

Parties to the Anti-Bribery Convention have a long tradition

of welcoming China to the meetings of the Working Group on
Bribery (WGB), which monitors Parties implementation of the
Convention. Most recently, a delegation from Chinas Ministry
of Supervision attended the December 2015 WGB meeting and
presented on Chinas priorities during its Presidency of the G20.
As a member of the G20 AntiCorruption 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. China also participated in the OECDs Global
Network of Law Enforcement Practitioners against Corruption
meeting in December 2015.
Enforcement of Chinas bribery laws would also be enhanced
through accession to the Convention, due to the Convention
framework for providing effective legal assistance in transborder bribery investigations and proceedings, including
confiscation of bribe proceeds. Moreover, accession to the
Convention would provide China with an important platform



Enhancing public sector

The OECD works with its Member and Partner countries to help
ensure that public decisions are not biased by private interests,
and minimise resource waste in the public sector.
The new leadership of the Central Commission for Discipline
Inspection of China (CCDI) is speeding up anti-corruption efforts
in the public sector and is improving regulations governing
the conduct of public servants. The OECD stands ready to
support the CCDI and the Ministry of Supervision of China 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 to build a culture of integrity in the public sector.

and its Pilot Meeting of the Asia-Pacific Law Enforcement

Practitioners Network in Ulaanbaatar, Mongolia on 19-20
November 2015. During these meeting, experts representing
governments, leading enterprises and business associations,
civil society, and multilateral and donor organisations, shared
their experiences on ways to fight corruption in various
areas, including in development projects. The meetings also
contributed to the exchange of best practices in investigations
and law enforcement. Chinese delegates participated in
both meetings. The OECD is also supporting China during its
presidency of the G20 at the Anti-Corruption Working Group.

More widely, Asian countries have paid increasing attention

to the need of enhancing public sector integrity systems.
In supporting these efforts, the ADB/OECD Anti-Corruption
Initiative for Asia and the Pacific held its 13th Regional Seminar


Raising the bar on corporate governance

and state owned enterprises
The rapid growth of the Chinese economy and changes in
Chinas equity markets have pushed corporate governance
high on the national reform agenda. Healthy capital markets,
where enterprises can access finance that supports long-term
value creation, are essential for innovation and growth.
For over a decade, the OECD has engaged closely with China
to support its reform efforts and benefit from its experience.
This involves the OECD Corporate Governance Committee, the
Working Party on State Ownership and Privatisation Practices,
the OECD-Asian Roundtable on Corporate Governance and
the China-OECD Policy Dialogue on Corporate Governance.
Two OECD instruments, the G20/OECD Principles of
Corporate Governance (Principles) and the OECD Guidelines
on Corporate Governance of State-Owned Enterprises
(Guidelines) serve as references for this work. In 2015,
both instruments were revised taking into account recent
developments in financial markets and the corporate sector.
The Principles were endorsed by China as well as all other G20
countries in November 2015. In the case of the Guidelines, the
revision took place with Chinas active participation throughout
the process.

The Guidelines aim to make state-owned enterprises (SOEs)

transparent and accountable to the general public. They help
governments organise their ownership and regulatory roles as
well as the governance of individual SOEs. In 2015, the Stateowned Assets Supervision and Administration Commission of
the State Council (SASAC) began a pilot project with the OECD
in the area of SOE governance and reform, which continues in
2016. The purpose of the project is to bring OECD and partner
countries experience to the attention of Chinese decision
makers, through joint research projects and workshops
organised in China.

The Principles are intended to help countries evaluate and

improve their legal, institutional and regulatory framework for
corporate governance, and to provide guidance inter alia for
stock exchanges, investors and corporations. They are one of the
key standards for sound financial systems used by the Financial
Stability Board and form the basis for the corporate governance
component of the World Bank Report on the Observance of
Standards and Codes.





Seeking best practices

of social and health policies
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.

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.

In October 2014, the OECD published

jointly with the OECD/Korea Policy Centre the third edition of
Society at a Glance Asia/Pacific, which includes a special focus
on progress with gender equality in education, employment and
entrepreneurship (the three Es) to facilitate womens access to
employment in Asian countries.

The OECD provides analysis on retirement

income systems, providing a reference for pension comparison
across the 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/Pacific covers 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. In All on Board: Making
Inclusive Growth Happen in China, the OECD set out policy
suggestions to consolidate the existing many local pension

The OECD Gender Data Portal, updated every year on

Womens Day on the 8th of March provides a wealth of
indicators of gender equality in education, employment and
entrepreneurship in OECD Member and partner countries,
including Brazil, China, India, Indonesia, Russia and South
Africa. In 2014 the OECD also released a background paper
for the China Development Research Foundation project
on Enhancing Womens Economic Empowerment through
Entrepreneurship and Leadership in the Midst of Chinas New




China is entering a crucial phase in which
unprecedented accomplishments, as
the achievement of universal healthcare
coverage, should be further strengthened
and supported to secure high quality
services and value for money. The Chinese
healthcare system should also be prepared
to address the changing needs of an ageing population.
The OECD monitors health system performance through
indicators on health status, health care resources and quality
of care in OECD and Asia/Pacific economies. It collects data on
expenditure and financing, and develops innovative approaches
to produce health expenditure projections that take into
account aging, morbidity and medical technology. It advises
countries on policies to prevent disease and improve healthsystem efficiency through care co-ordination and strengthening
of community care. The OECD also helps countries design
pharmaceutical policies and address future health workforce
and long-term care needs of an ageing population.
The OECD is increasing its reach to China and other countries in
the region. Much of this effort 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 results of the survey Evaluating
Quality Strategies in Asia-Pacific Countries provide a useful
overview of strategies and policies to improve the quality of
health care, and show increasing commitment to quality of care
in the Asia/Pacific region. The 2015 edition of Health at a Glance
presents a set of key indicators on health and health systems
for OECD Member and Partner countries, including China. The
2014 edition of Health at a Glance: Asia/Pacific presents indicators
on health systems for 27 Asia/Pacific economies and shows
notably that Chinas per capita health expenditure is still lower

than the regional average, although the figures have progressed

rapidly over the past 12 years. The OECD working paper Public
Expenditure Projections for Health and Long-Term Care for
China Until 2030 released in October 2015 looks at the main
drivers of future growth in health spending in the medium term,
to assess the possible impact on public budgets, for OECD and
key emerging economies, including China.
Lung cancer is now the leading cause of death from malignant
tumours in China. Collaborative OECD and WHO work has
shown that investing in preventive measures to reduce tobacco
consumption, harmful use of alcohol and an unhealthy diet is a
highly cost-effective strategy for China. Furthermore, OECD work
shows that this strategy can substantially reduce the burden of
chronic diseases at an annual cost of less than US$ 2 per capita.



Improving the labour market

prospects of youth
The OECD monitors and compares developments in
employment and labour markets across OECD Member and
Partner countries, including China.
The annual Employment Outlook analyses labour market trends
and monitors reforms in areas such as active labour market
policies, employment protection and the minimum wage.
The OECD also provides country-specific analysis and policy
recommendations to help governments create jobs, particularly
for vulnerable groups, such as younger, older and disabled
In May 2013, Ministers from OECD Member countries endorsed
the OECD Youth Action Plan, which detailed actions that can
help bring down youth unemployment from its current recordhigh levels, as well as structural changes to improve school-towork transitions in the medium-long term. Different activities
have been organised, ranging from short reports focusing on
country-specific challenges to fully-fledged reviews of youth
labour market outcomes. Some of these activities have been
completed or are underway, notably: i) the reports to assist
European countries in the implementation of the EU Youth
Guarantee; ii) the series of Investing in Youth reports in both
advanced and emerging economies that discuss challenges and
policies for better youth integration in education and the labour
market; and iii)the organisation of international workshops on
apprenticeships in 2014 and 2015.
The OECD is working closely with China in support of the
G20 Employment Working Group (EWG) under the Chinese
Presidency in 2016. In particular, the OECD is preparing
background papers in co-operation with other International
Organisations on generating adequate job opportunities,
enhancing employability, and promoting decent work. This
builds on the extensive work done by the OECD with the G20
(EWG) in past years, covering China in a number of reports on
youth labour market outcomes, active labour market policies,

job quality, skills and quality apprenticeships. In particular, an

OECD-G20 Conference on Quality Apprenticeships was organised
in February 2015, when a background paper was prepared to
review recent initiatives to strengthen apprenticeship systems
for youth in G20 countries, including China.


Supporting SME development

and strengthening local skills
Addressing the financing challenge for small and mediumsized enterprises (SMEs) is imperative to create new jobs and
foster innovation in China.

The OECD analyses best practices in terms of design,

implementation and evaluation of initiatives to promote
entrepreneurship, growth of SMEs and local economic and
employment development. China has participated since 2000
in the OECD Bologna Process on SME and Entrepreneurship
Policies, which brings together high-level policy makers from
OECD countries and emerging economies to debate policy
successes and failures in the area of SME and entrepreneurship
policy. In 2014, China also participated in the work on the
Scoreboard on Financing SMEs and Entrepreneurs.
China plays an active role in the Initiative on Employment and
Skills Strategies in Southeast Asia (ESSSA), conducted jointly
by the OECD, GIZ, the International Labour Organisation
(ILO) and ASEAN. This Initiative helps policy makers design
policies, develop adequate governance mechanisms and
strengthen government capacities to implement effective local
employment and skills development strategies. In November
2015, the 7th ESSSA experts meeting on Better Connecting
the Skills System to Work was hosted in Siem Reap, Cambodia
to discuss how effective employment and skills strategies can
help national economies adjust to changes in working practices,
advances in technology, and challenges associated with
In the context of its G20 work under the Chinese presidency, the
OECD is producing a report on enhancing employability, which
highlights the importance of local approaches to skills to boost
job creation and productivity. The report provides examples
of how to inject flexibility into the vocational education and
training system at the local level to ensure that institutions and
programmes adapt to the needs of employers (including SMEs),
individuals, and the local labour market more generally.



Fostering skills through education

and training
Skills have become the global currency of the 21st century.
The OECDs work on education and skills can help countries
make informed investments in skills and education to
promote stronger and more inclusive economic growth within
an increasingly knowledge-based global society.
China has put education and skills at the centre of its
development strategy. Through its growing collaboration with
the OECD, the government has been able to benchmark progress
in raising performance against other countries and join an
international dialogue on successful policies and practices to
further enhance achievement in education.
The OECDs Programme for International Student Assessment
(PISA) measures the learning performance of 15-year olds in
reading, mathematics and science. Following Shanghais successful
participation in PISA 2009, where its students ranked first in


reading performance among all economies surveyed, China has

expanded its representation in PISA 2015 to include three other
cities and regions (Beijing, Guangdong and Jiangsu). Countrywide participation in PISA would help policy makers identify and
promote the strategies that are driving excellence in the Chinese
school system and achieve greater equity in skills development.
With the expansion of PISA to include over 80 economies, the
OECD is working through the PISA for Development initiative to
adapt the survey to a wider range of country contexts. Chinas
recent experience in developing national assessment capacity,
and its growing influence in international development cooperation, make it a valuable partner in this project. In support of
the seven countries currently engaged in PISA for Development,
China would be helping to forge a global metric for measuring
progress towards the 2030 Sustainable Development Agenda and
its goals of ensuring all learners leave school with basic skills.


Shanghai, which has been at the forefront of Chinas education

reform efforts, is considering becoming the first Chinese
city to take part in the OECDs 2018 Teaching and Learning
International Survey (TALIS). The TALIS survey analyses the
working conditions of teachers to inform policies for better
teaching and will deliver valuable insights on the teaching
practices that lie behind Shanghais PISA achievements.
Through participation in TALIS, China will also be able to
compare its teaching environment with that of other topperforming systems and gain robust data on classroom factors
that influence student learning.
Through independent reviews, the OECD has also examined
Chinas tertiary education system, and vocational education and
training (VET) in upper secondary schools. The 2010 Learning for
Jobs review highlighted strengths and challenges in upgrading
Chinas training system and offered recommendations from
international experience on how to leverage skills policies
to enhance productivity and competitiveness. Through the
G20 and other fora, the OECD will co-operate with China to
strengthen policy dialogue around the factors that can advance
the development and activation of skills in emerging economies.
China will also remain a key partner of the OECDs efforts to
measure and benchmark the quality of tertiary education
systems and enhance their labour market outcomes.
China follows the principle of promoting educational reform
through opening up and advancing educational development
through reform. We are willing to have enhanced exchange and cooperation with OECD, draw reference from its advanced educational
concept, models and evaluation methods, and keep advancing and
improving Chinas education through innovation.
YUAN Guiren, Minister of Education

YUAN Guiren, Chinese Minister of

Education meeting Secretary General
Angel Gurra, November 2013, Paris.






Building a knowledge
The OECD provides evidence-based policy advice on the
contribution of science, technology and innovation to wellbeing and economic growth. China is presently implementing
its mid-term and long-term strategy (MLS) to become an
innovation-based economy by 2020, and to enhance its
participation in global value chains (GVCs). The OECD is
working closely with China to develop policies in these areas.
For more than a decade, China has been an active Participant
in the work of the OECD Committee for Scientific and
Technological Policy, and has worked with the OECD in projects
on GVCs and knowledge-based capital (KBC). In late 2015, China
adopted the OECD Daejeon Ministerial Declaration on Science,
Technology and Innovation Policies for the Global and Digital
Age. It also actively participated in the Global Science Forums
work on International Research Infrastructures, including
hosting a meeting at the Institute of High Energy Physics of the
Chinese Academy of Sciences in May 2015. A seconded official
from the Ministry of Science and Technology (MOST) has been
supporting OECD work on research infrastructures, as well
as on the OECD the Next Production Revolution. Following a
long tradition of co-operation with the OECD on Science and
Technology indicators work, China will translate the 7th revised
edition of the OECD Frascati Manual (2015) into Chinese.

Andrew Wyckoff, Director of the Directorate for Science, Technology and

Innovation of the OECD giving a presentation in the World Internet Conference on
the OECD-China co-operation on digital economy, December 2015, Wuzhen.

The OECD and the Development Research Centre of the State

Council of China signed a Memorandum of Understanding
(MOU) in 2013 to strengthen collaboration on investment in
knowledge-based capital, which is of growing importance for
China in upgrading its participation in GVCs. In late 2014,
a framework agreement was signed between the OECD and
the Ministry of Commerce, and together with the secondee
programme with MOST, these provide a long-term mechanism
for further fruitful collaboration. Since June 2015, a seconded
official from the Ministry of Science and Technology (MOST)
has been supporting OECD work on research infrastructures,
as well as on the OECDs Next Production Revolution project


for sustainable growth and jobs. This work will look at the
potential impact of new technologies on sustainable production
and business dynamics, and has clear relevance for Chinas
evolving role in GVCs, with potential contributions to Chinas
G20 Presidency in 2016.

Signing ceremony of the co-operation MOU between the OECD and the Cyberspace
Administration of China, 17 December 2015, Wuzhen.

China leads the world in many areas of information and

communications technology (ICT). It became the largest
exporter of ICT products in 2004, has the worlds largest
mobile phone market and, in more recent years, the worlds
fastest growing e-commerce market. In 2015, China and the
OECD intensified collaboration in the area of digital economy
policy: the OECD hosted an official from the Cyberspace
Administration of China (CAC); China translated the OECD
publication Measuring the Digital Economy into Chinese, the
OECD participated in the World Internet Conference in Wuzhen;
and the CAC and the OECD signed a MOU on increasing cooperation, including in the context of the OECD Ministerial
event on the Digital Economy, to be held in June 2016 in Mexico,
as well as in view of Chinas G20 Presidency in 2016.





Promoting structural adjustment in the

shipbuilding and steel sectors
The OECD is working closely with China to promote structural
adjustment in its steel and shipbuilding sectors, with a view
to reducing overcapacity and promoting more efficient
Chinas shipbuilding and steel industries have experienced
faster output and capacity growth compared to that of any
other country since 2000. As a consequence, China is now
the worlds largest shipbuilder and steel producer. The rapid
expansion of these industries has been linked to the fast
development of Chinas manufacturing, construction and trade
activity. However in the aftermath of the financial crisis, the
Chinese shipbuilding industry has suffered from the slowdown
in global trade and has started to also experience lower capacity
utilisation ratio. Moreover, steel demand in China is declining
and the sector is suffering from significant excess capacity,
which has depressed prices, profitability and efficiency in the
industry, and has led to increased trade frictions with steel
trading partners. To cope with the rising excess capacity,
Chinese authorities have initiated policies such as the
Guidelines for Resolving Overcapacity in 2013 and the threeyear plan (2013-15) to resolve the overcapacity problem in the
shipbuilding industry.

Currently, the OECD is working jointly with the Development

Research Center of the State Council of China to develop
recommendations on efficiently managing industrial
restructuring, addressing excess capacity, and fostering a green
transition of Chinas industrial sector over the 2016-2020 period
and beyond, in line with the objectives of the 13th Five-Year
Plan. The project Fostering Green Growth in China in a Context
of Industrial Upgrading consists of dedicated research teams
working on industry restructuring and excess capacity issues,
including secondment of DRC staff to the OECD to work on
restructuring in the shipbuilding and steel sectors, as well
as several workshops in Beijing and Paris to discuss research
results. A policy report is expected for 2017.

The OECD Council Working Party on Shipbuilding (WP6) and

the Steel Committee are closely monitoring market and policy
developments in China, benefiting from active participation
of government representatives from the Ministry of Industry
and Information Technology (MIIT), the Ministry of Commerce
(MOFCOM) and industry representatives reporting on the
latest developments in their country. China has historically
been involved in key activities of the OECD shipbuilding and
steel programmes, and participated in past negotiations on
multilateral shipbuilding and steel agreements aimed at
reducing market distortions and bringing normal competitive
conditions to these sectors.


Meeting transport
infrastructure needs
In November 2011, China became the 53rd member of the
International Transport Forum (ITF), an intergovernmental
organisation based at the OECD that helps shape the
transport policy agenda at a global level.
China has been participating at Vice-Ministerial level in the
ITF Annual Summits in Leipzig, Germany since 2009, and is
invited to participate in the 2016 Summit, which will focus on
green and inclusive transport. In the past, the ITF welcomed
two secondees from Chinas Ministry of Transport (MOT). The
ITF 2014 Young Researcher of the Year Award winner was a
Chinese national, whose paper focused on applying recent
economic developments on congestion mitigation in Beijing.
In September 2014, the ITF chaired a panel on the logistics
integration of air cargo facilitation at the ICAO China Air
Cargo Development Forum in Zhengzhou. This provided an
opportunity to discuss issues related to air freight and trade
facilitation issues in China.


In July 2015, the ITF convened a Roundtable on Integrated

Transport Development Experience in Global City Clusters, in
Beijing. This roundtable, hosted by the MOT and co-organised by
the MOTs Transport Planning Research Institute, was the first
ITF roundtable ever held in China. It brought together around 30
Chinese and foreign experts to discuss the rationale for, and the
assessment of, investment in transport network development
within large, multi-polar urban regions. In conjunction with this
trip, the Secretary General of the ITF, Jos Viegas, met with Mr.
Weng Mengyong, Chinese Vice Minister of Transport.
Upon the formal invitation of the MOT, the ITF organised
a seminar in December 2015 on the ECMT Multilateral
Quota. Over the seminar, discussions furthered co-operation
between ITF and China in relation to regulatory framework of
international road haulage, safety and quality standards.
The China Academy of Transport Sciences and Transportation
Planning Research Institute provided support in developing


methodology and data for the development of urban passenger

transport scenarios up to 2050 for Chinese cities, which
forms part of the ITF Transport Outlook 2015. The ITF has
also engaged in co-operation with the Shanghai International
Shipping Institute (SISI) to jointly produce a report on
Governance and regulation of ports in China.
The China Communications Construction Company Group and
the China Ocean Shipping Group Company are members of
ITFs Corporate Partnership Board (CPB), which brings expert
knowledge from 18 multinational companies in transport and
related areas for ITFs policy analysis, and have participated
actively in both the CPB and the annual Summit.

ITF is one of the most influential intergovernmental organisations

in the transport sector in the world. It serves as an important
platform for the transport ministers to explore issues critical to the
present situation and the future direction of the sector () China,
as one of the rising economies in the world, values the significance
of ITF, and we will continue to work closely with other members to
make due contributions to the future direction of ITF.
FENG Zhenglin, Vice Minister of Transport
at the ITF Annual Summit, 2-4 May 2012, Leipzig, Germany

DAI Dongchang, Acting Vice Minister and CPC Leadership Member of the Ministry
of Transport, China in discussion at the Opening Plenary: Transport, Trade and
Tourism: Mobility for a connected world taking place during the International
Transport Forums 2015 Summit on Transport, Trade and Tourism in Leipzig, Germany
on 27 May 2015.

Enhancing chemical
The OECD supports its Members and
non-Members, including China, in
protecting human health and the
environment by improving chemical
safety, making chemical control policies
more transparent and efficient, saving
resources for government and industry,
and preventing unnecessary distortions in the trade of
chemicals and chemical products.

OECD Members are currently working
together with the European Commission
and China, as well as the business and
industry sectors, to assess the safety
of nine manufactured nanomaterials
which are either currently present on the
market or expected to be used in products in the near future.
China contributes to OECDs work on iron nanoparticles.

The OECD Mutual Acceptance of Data (MAD) system is a

multilateral agreement which allows sharing the results of
non-clinical safety testing on chemicals and chemical products
across adhering economies. This helps to avoid duplicative
testing and saves adhering governments and chemical
producers over EUR 150 million every year.

China is also active in the OECD programme that seeks

international harmonisation in the area of regulatory
assessment of novel foods and feeds in order to ensure the
protection of human and animal health. In addition, China
has participated from time to time in the work of the OECD
Working Group on the Harmonisation of Regulatory Oversight
in Biotechnology which aims to ensure that the information
and methods used in risk and safety assessment of genetically
engineered crops are as similar as possible in order to increase
mutual understanding and avoiding duplication.

There has been a long series of discussions with China on the

MAD system. The OECD is currently discussing with China
possible steps to achieve full adherence to the MAD system which
could improve Chinas access to international chemical markets
by ensuring that safety data developed in China for regulatory
submissions to adhering countries will be acceptable for
registration or notification of chemicals and chemical products.




China is active in the OECD Pesticides
Programme, which helps governments
co-operate in assessing and reducing the
risks of agricultural pesticides.
In particular, China has translated into
Chinese the OECD Test Guidelines on
Pesticide Residues, and is disseminating and promoting the
use of the Guidelines in the country. China is also working
to establish a framework to improve co-operation among
governments on fighting international trade of counterfeit





Towards a cleaner and

healthier environment
China faces high social costs caused by environmental
degradation, air and water pollution. Economic growth
will not be sustainable if pollution and depletion of natural
resources are not addressed. A number of collaborative
initiatives on promoting a healthier environment and a
greener growth have deepened Chinas engagement with
the OECD.
Built upon the OECDs Environmental Performance Review of
China conducted in 2007, a Memorandum of Understanding
between the OECD and Chinas Ministry of Environmental
Protection (MEP) identifies priority areas where the OECD can
support Chinas efforts to move towards a greener economy
and build an environment-friendly, resource-saving society.
In 2015, activities with China spanned several areas, from
a joint project on fostering green growth in the context of
industrial upgrading, to a seminar on waste management
and collaboration on extended producer responsibility (EPR)
Specifically in relation to the EPR schemes, a case study on How
Chinese E-waste Disposal Fund Scheme Work, developed by MEP,
will be featured in a major OECD publication to be launched
in mid-2016. In May 2015, an event on EPR for e-waste was
organised with MEP in Beijing, which brought together a broad

range of stakeholders from government, academia and the

private sector, as well as a number of OECD experts. The event
provided recommendations to help the government identify
ways in which the current e-waste management system in
China could be further improved.
Since 2015, the OECD has been working on a collaborative
project on Fostering Green Growth in China in a Context of
Industrial Upgrading, with the Development Research Center
(DRC) of the State Council. The project aims to identify the most
effective policy mix and institutional settings to foster a green
transition of Chinas industrial sector over the 20162020 period
and beyond, in line with the objectives of the countrys 13th
Five-Year Plan.
We appreciate the OECDs contributions to strengthening and
improving Chinas resources and environment management, and we
expect that the OECD will continue to provide support to China in
moving toward green development.
extracted from the Environmental Performance
Reviews: Mid-Term Progress Report: China
(document prepared by the Chinese authorities)



climate change
China is scaling up its efforts to address the major challenge
of reducing its greenhouse gas emissions and lowering
its vulnerability to the impacts of climate change, while
simultaneously ensuring strong economic growth. China
can benefit from OECDs espertise and best practices on
mobilising green investment, monitoring adaptation and
aligning policies.
In the process of the COP 21 which took place in December
2015 in Paris, the OECD committed to helping its Members
and partner countries obtain a comprehensive picture of their
performance on climate change. The OECD has mainstreamed
climate change into its Economic Surveys, including for China.
A recent report, Climate Change Mitigation: policies and
progress, provides an overview of current policies to reduce
greenhouse gas (GHG) emissions in all OECD member
countries and 10 partner economies, including China. The
study examines recent developments in carbon pricing
instruments such as energy and carbon taxation and
emissions trading systems, as well as fossil fuel support
reforms. It also reviews key domestic policy settings in the
energy and non-energy sectors (agriculture, forestry, industry
and waste).
Another major challenge is shifting and scaling up investment
in green infrastructure. The OECD is assisting countries in
their efforts to find lasting solutions to finance action against
climate change, and to improve the quantity and performance
of such finance over time. In this regard, the OECD has carried
out work in two specific areas: green investment banks
and green bonds. The OECD report Green Investment Banks:
Scaling up private Investment in low-carbon, climate -resilient
Infrastructure (released in April 2016) describes how national
and sub-national governments have created public green
investment banks (GIBs) and GIB-like entities to leverage the
impact of relatively limited public resources and facilitate
investment in areas such as commercial and residential

energy efficiency retrofits, rooftop solar photovoltaic systems

and municipal-level, energy-efficient street lighting. The OECD
also contributed its research on GIBs to the China Council for
International Co-operation on Environment and Development
(CCICED), which in November 2015 proposed the establishment
of Chinas National Green Development Fund. The forthcoming
OECD report on Green Bonds: Mobilising the debt capital markets
for a low carbon transition will contains analysis related to
China. Furthermore, the OECD has become a lead contributor
to the G20 Green Finance Study Groups work on green bonds
under the Chinese G20 Presidency.
With regard to climate change adaptation, China can benefit
from the guidance and best practices of the OECD report on
Emerging Practices in Monitoring and Evaluation in National
Climate Change Adaptation, published in 2015. The report
presents case studies from both developed and developing
countries and identifies key tools that countries can draw
upon in their own assessment frameworks. Building on the
experience of OECD countries, the report Climate Change Risks
and Adaptation: Linking Policy and Economics illustrates the
latest economic evidence on adaptation costs and benefits and
the various tools to enable a risk-based approach to adaptation
planning and financing.
In addition, the OECD and the International Energy Agency (IEA)
jointly support the Climate Change Expert Group on the United
Nations Framework Convention on Climate Change (CCXG),
which provides analytical input to the international climate
change negotiations. China regularly participates in the CCXG
seminars to share its experiences with other countries.


Improving water
The OECD Horizontal Water Programme promotes the
design and implementation of integrated water policies that
contribute to peoples health and green growth.
The Programme aims to strengthen institutional and regulatory
frameworks and co-ordination among stakeholders involved
in the design and implementation at different levels of
government, while providing guidance for effective public action
in water policy and assessing governance arrangements. It
emphasises the economic dimension of water management and
the use of economic instruments to allocate water where it is
most needed.
In recent years, co-operation has been established between the
OECD and Chinas Ministry of Water Resources. The Minister for
Water Resources, Mr. Chen Lei, is a member of both the Global
Dialogue on Water Security for Sustainable Growth, a joint
initiative by the OECD and the Global Water Partnership, and
the High-Level Panel on Infrastructure Financing for a Water
Secure World, a joint initiative by the OECD and the World
Water Council.

and Zibo, participated in the recent OECD survey on water

governance for future cities, and the report was launched during
the Mayors and Water conference on 11 February 2016 in
Leeuwarden. In addition, the Development Research Centre of
the Ministry has recently become a member of the OECD Water
Governance Initiative, which is a multi-stakeholder network
bringing together public, private and not-for profit actors in a
policy forum to advance on the global water governance agenda.
In June 2015, OECD Members and many Partners welcomed the
OECD Principles on Water Governance during the Ministerial
Council Meeting. The Principles provide integrated and inclusive
perspectives for countries including China, to strengthen their
efforts on climate adaptation and sustainable development, and
build a solid base for the OECD to further consolidate existing
water policies.
China is also a member of the newly established OECD Nitrogen
Expert Group (NEG), which provides advice on the development of
a policy paper in 2016 on human impacts on the nitrogen cycle.

The Ministry has contributed to an OECD inventory on water

resources allocation regimes that was released in 2015. With
the Ministrys recommendation, two Chinese cities, Suzhou



Providing affordable and

clean energy
The International Energy Agency (IEA), an autonomous
body within the OECD, works to ensure reliable, affordable
and clean energy for its 29 member countries and beyond.

to provide a platform for closer collaboration with emerging

economies, in view of their critical expanding role across the range
of global energy issues.

Widely recognised as the worlds most authoritative source

of energy market analysis and projections, the IEA provides
critical insights into trends in energy demand and supply and
their impact on energy security, environmental protection
and economic development. The IEAs work covers major
energy consumers and producers such as China, India, Russia
and the OPEC countries. Core IEA publications include the
annual World Energy Outlook, Energy Technology Perspectives,
medium-term oil, gas, coal, renewables, energy efficiency
market outlooks, the monthly Oil Market Report and more.

In 1996, China and the IEA concluded a Memorandum of

Policy Understanding in the Field of Energy, which assisted
China in its transition to a more-sustainable energy economy
and provided a greater understanding for IEA Members of
Chinas energy system. 2016 marks the 20th anniversary of IEAChina co-operation, during which has strengthened since 1996.
At 2015 IEA Ministerial meeting, an updated Joint Statement
with China was issued, aiming to collaborate for a better
common future for energy security, technological research
and development, higher quality statistics and environmental
sustainability. In addition, high-level visits have been
increasingly frequent. In September 2015, during his first official
foreign visit as IEA Executive Director, Dr. Fatih Birol called for
a new era of institutional ties between China and the agency.
In remarks to the Chinese Academy of Social Sciences (CASS),
he said his visit to Beijing was a tangible demonstration of his
vision to open the doors of IEA further to emerging economies.
From a multilateral perspective, China became IEAs
Association Country at the 2015 Ministerial meeting, along
with Indonesia and Thailand. This status has been created

L Dr Fatih Birol, IEA Executive Director,

after his bilateral meeting with HE Nur
Bekri, Administrator of the National
Energy Administration (NEA), Beijing,
September 2015.



Developing clean and safe

nuclear power
The Nuclear Energy Agency (NEA) facilitates international cooperation for the safe, environmentally friendly and economical
use of low-carbon nuclear energy for peaceful purposes.

and to reduce CO2emissions. Pursuing that development on a

safe and technically sound basis is a goal shared by both China
and the NEA member countries.

The Nuclear Energy Agency (NEA) is a specialised agency within

the OECD that supports its 31member countries in maintaining
and further developing the scientific, technological and legal
bases required for the safe, environmentally friendly and
economical use of nuclear energy for peaceful purposes. The
NEAs membership currently accounts for 86% of the worlds
nuclear electricity generating capacity. China and India are key
strategic partners for co-operation with the NEA.

Co-operation with China on safety and other nuclear energy

matters is being strengthened following the conclusion of a
Joint Declaration on Co-operation in the Field of Peaceful Uses
of Nuclear Energy between the China Atomic Energy Authority
(CAEA) and the NEA in September 2013, and of A Memorandum
of Understanding on Co-operation between the National Nuclear
Safety Administration (NNSA) and the NEA in May 2014. China was
included in the 2015 edition of the NEA/IEA report on Projected
Costs of Generating Electricity. It also takes full part in several NEA
joint projects as well as some platforms programmes serviced by
the NEA, such as the Generation IV International Forum (GIF), the
International Framework for Nuclear Energy Co-operation (IFNEC)
and the Multinational Design Evaluation Programme (MDEP).

China is very actively pursuing the development of nuclear

power as a low-carbon, baseload energy source to meet its
electricity needs along a sustainable development path. China is
currently the largest market for new nuclear build in the world,
with 21 reactors under construction at the beginning of 2016.
In line with the countrys 13th Five Year Plan and the recent
statements at COP-21, nuclear energy is being deployed at a
steady pace in order to increase the share of non-fossil fuels





China currently adheres to six OECD instruments:

Instruments: Facilitating International Coordination and

Diffusion of Best Practices

l D
 eclaration on Automatic Exchange of Information in Tax

The OECD has created several legal instruments based on the

substantive work of the Organisations Committees, many of
which have become worldwide standards. They are based on
in-depth analysis by the Secretariat and cover a wide range of
topics, from anti-corruption to environment. These instruments
can be formal agreements ratified by countries, such as the
OECD Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, or standards and
models, such as the Standards of Transparency and Exchange
of Information for Tax Purposes, or Recommendations, for
example the Recommendation on Fighting Bid Rigging in Public
Procurement. They may also take the form of Guidelines, for
example the Guidelines for Multinational Enterprises.

l M
 ultilateral Convention on Mutual Administrative Assistance in

Bringing China and other partner countries closer to OECD

instruments is an important priority for the Organisation.
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 developing new
instruments and revising existing ones is crucial to ensure their
global relevance. For China, a special programme was set up in
2013, supported and coordinated by MOFCOM, to facilitate the
participation of Chinese officials in the discussion concerning the
revision and development of OECD instruments.


Matters (since 2014)

Tax Matters (since 2013)
l P
 aris Declaration on Aid Effectiveness (since 2005)
l D
 eclaration on Access to Research Data from Public Funding

(since 2004)
l Declaration

on International Science and Technology

Co-operation for Sustainable Development (since 2004)

l A
 gricultural Schemes and Codes: Official Testing of Agriculture

and Forestry Tractors (since 1988)



Member in:
l O
 ECD Development Centre and its Governing Board (since

l International Transport Forum and Joint OECD/ITF Transport

Research Committee (since 2011)

l G
 lobal Forum on Transparency and Exchange of Information for

Tax Purposes (since 2009)

l O
 ECD Standard Codes for the Official Testing of Agriculture and

Forestry Tractors (since 1988)

Participation in OECD Asian Networks:

l O
 ECD/ADBI Roundtable on Capital Market Reform in Asia

(Tokyo Roundtable)
l O
 ECD-Asian Roundtable on Corporate Governance
l A
 DB/OECD Anti-Corruption Initiative for the Asia-Pacific
l A
 PEC/OECD Cooperative Initiative Regulatory Reform
l N
 etwork of Senior Budget Officials for Asia
l O
 ECD/ADBI Roundtable on Labour Migration in Asia
l O
 ECD Employment and Skills Strategies in Southeast Asia

l O
 ECD Development Centre-AMRO Joint Asian Regional

Associate in:
l W
 orking Party No. 10 on Exchange of Information and Tax

Compliance of the Committee on Fiscal Affairs (since 2014)

China is also an Association Country of the International
Energy Agency (since 2015)

l P
 roject on Base Erosion and Profit Shifting (since 2013)

Participant in:
l P
 rogramme for International Student Assessment (since 2006)
l C
 ommittee on Fiscal Affairs and its subsidiary bodies (since

l C
 ommittee for Scientific and Technological Policy and its

subsidiary bodies (since 2001)



The OECD discusses its data and analyses with Chinese
stakeholders through a range of channels.
The Trade Union Advisory Committee to the OECD (TUAC)
and the Business and Industry Advisory Committee to the
OECD (BIAC) bring their perspectives to the policy dialogue. In
particular, the BIAC China Task Force supports OECD-China cooperation by providing OECD business expertise and advice.
Taking stock of Chinas increasing importance as a source and
destination of FDI, the OECD Development Centres Emerging
Market Network (EMnet) and the China International Council
for the Promotion of Multinational Corporations (CICPMC), a
business association supervised by the Ministry of Commerce,
decided to join forces to provide a setting for discussions
between CEOs from Chinese and foreign companies and
high-level government officials. Since 2010, this joint venture
enables companies to benefit from the OECDs expertise and
to discuss the constraints they face in Chinese markets or
when investing abroad. The meeting is held during the annual
International Roundtable of Multinational Corporations Leaders;
the 2015 session, entitled Doing Green Business in an Evolving
Economic Landscape saw participants discuss the prospects
and constraints for green investments.

In addition, the China Development Research Foundation is an

official Knowledge Partner of the OECD Forum since 2009. This
strategic co-operation allows for the organisation of joint events
and common activities.

News and information

about OECD work and
events involving China are
available at

Discover reports, data and analysis about China alongside the

worlds leading economies on OECD iLibrary, the global knowledge

The OECD: A Global Policy Network

The OECD Member countries are: Australia, Austria, Belgium,

Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea,
Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland,
Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Turkey, the United Kingdom and the United States of America.

Brochure design by

The Organisation for Economic Co-operation and Development

(OECD) is an international organisation helping governments tackle
the economic, social and governance challenges of a globalised
economy. It provides a setting where governments can compare
policy experiences, seek answers to common problems, identify good
practice and work to co-ordinate domestic and international policies.

Global Relations Secretariat

OECD, 2 rue Andr Pascal
75775 Paris Cedex 16
March 2016