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China's governance structures will have to be reformed deeply for its recent growth to be sustainable. This report examines the many challenges of governance which China is facing. In addition to the lack of openness in government and intellectual property rights, this book also looks at the delivery of public services, management of state assets, regulatory management, e-government, taxation and public expenditure, fighting corruption, and producing reliable information.
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Governance in China Governance is the next issue to tackle on the development path of the People’s Republic of China. Further adapting institutions and the functioning of the state to an increasingly market-oriented economy is crucial to maintain economic dynamism. Governance reform is also fundamental to address emerging strains related to rising inequalities and environmental deterioration. During the past two decades, China has taken important steps to reform its state: it has started to adapt its tax system to market mechanisms, designed a budgeting process and laid bases for a modern civil service. But various governance weaknesses still persist, such as fragmentation of authority and co-ordination problems. Corruption continues to be a widespread problem, undermining public action and affecting the efficiency of market allocation. Although China has adopted new sets of regulations close to international standards in various areas such as intellectual property rights, the enforcement of these regulations remains a major issue. China in the Global Economy China in the Global Economy This report goes beyond the general statement that governance matters. It shows how, in practice, governance impacts on public action by looking at different policy sectors, such as agriculture, higher education, labour market and social protection, foreign investment, environment p