The coming of the new year has been the catalyst for the introduction of several new laws in China.
The laws on small and medium-sized enterprises, government procurement and clean production, in addition to a revision on insurance law, are expected to spur on the nation's economic development, make government administration more transparent and effectively protect China's environment.
Among the changes, the Small and Medium-sized Enterprises (SMEs) Promotion Law will give China's millions of SMEs an extra boost and further protection.
"The Chinese Government is giving much attention to the development of SMEs," said a senior official with the State Economic and Trade Commission (SETC).
Many SMEs in China have long suffered from capital shortages, preventing their further development.
"The law on SME promotion will effectively settle the problem as it has simplified the process of loan applications," the official said.
The number of registered SMEs in China has exceeded 8 million and both their industrial output and export volume make up 60 per cent of China's total, according to the commission.
In addition, China took a decisive step in adopting transparent and indiscriminative practices in government procurement under World Trade Organization rules as the country's legislature passed the Government Procurement Law in September.
Zhang Tong, a Ministry of Finance official, said the adoption of the law, which also took effect yesterday, was crucial for making the sector more transparent and closer to international practices.
In the past, government units purchased products or services with funds granted by superior departments.
The new method of getting products or services through open invitation and bidding saves the government money and prevents corruption through "under table" operations, with the assistance of supervising and auditing institutions.
The Law of Cleaner Production also came into effect yesterday.
SETC Minister Li Rongrong said the law, together with other environmental laws and regulations, will play a bigger role in China's industrialization process, which is expected to feature decreased energy consumption and environment pollution but higher economic returns.
(China Daily January 2, 2003)
