OECD-China: 20 years of partnership

Chinese Vice-Premier Wang Yang with OECD Secretary-General Angel Gurría, 11 November 2014, Beijing.

TABLE OF CONTENTS
1995 - 2015
TABLE OF CONTENTS
1995 - 2015
02-03 FOREWORD
Angel Gurría, OECD Secretary-General
Gao Hucheng, Minister of Commerce,
People’s Republic of China
04-05 VOICES
06-27 1995-2005
THE FIRST TEN YEARS:
Gradually building mutual trust and confidence

28-63 2006-2015
THE SECOND TEN YEARS:
Strengthening the co-operation towards
a comprehensive partnership

64-65 CHINA-OECD:
LOOKING TO THE FUTURE
1

The OECD is proud to have China as a Key Partner since 2007. China is
a central pillar of the world economy and greatly enhances the OECD
policy debate on global challenges such as achieving sustainable and
inclusive growth, creating jobs and developing skills, fighting protectionism,
developing green growth policies and eradicating extreme poverty. In
today’s rapidly changing global environment, there is a need to foster
exchange of knowledge and experiences in order to establish appropriate
standards and policies that underpin stronger, fairer growth. This can
only be achieved by active engagement with partners such as China.
Trade and investment were the focus of the agenda in 1995 when China
and the OECD initiated their co-operation with a first workshop. The
partnership now extends across the broad range of core OECD policy
areas (macroeconomic monitoring, science and technology, agriculture,
environment, tax, budgeting, pensions, health, regional development,
regulatory governance, statistics, corporate governance, education), and
includes more than 30 Chinese ministries and government institutions.
The Ministry of Commerce plays an important coordination role.
The OECD supports China’s reforms towards a sustainable and inclusive
development through the provision of analysis and policy recommendations on
China’s core challenges. OECD Economic Surveys and Policy Reviews serve a
dual purpose: they provide a comparative analysis of what worked and what
did not in OECD countries; they also help OECD countries better grasp the
complexities of China’s socio-economic development process. Recent work on
competition and corporate governance policies, as well as new approaches
to promote innovation and domestic tax compliance and transparency,
show the real impact of this work on the formulation of China’s policies.
Member countries and other Key Partners also benefit. China’s active
engagement in OECD bodies (e.g. Committee for Science and Technology Policy,
Committee for Fiscal Affairs) enriches the discussion and makes the work
undertaken by the Organisation more relevant and valuable. China’s actions,
like adherence to OECD instruments (Declaration on International Science
and Technology Co-operation for Sustainable Development), can reinforce
the efforts made by countries at different stages of development to address
common challenges. International taxation is another area where China’s active
participation has been invaluable in the global battle against tax evasion.
Relations between the OECD and China are entering a new era. The
collaboration now extends beyond the OECD to important intergovernmental
processes where the OECD plays a leading role, and in which China is
involved. Groups like APEC, G7 and G20 offer new opportunities to strengthen
relations. As China and the OECD celebrate 20 years of mutually beneficial
co-operation, the Memorandum of Understanding signed with the Ministry
of Commerce can serve as a platform to identify joint priorities.
China can count on the OECD to support its efforts to improve
the lives of its citizens and to strengthen its contribution to global
governance for a better and more harmonious world.
Angel Gurría
OECD Secretary-General
FOREWORD
2
OECD
CHINA

It has been precisely two decades since China and the Organisation
for Economic Co-operation and Development (OECD) officially
started their policy dialogue and co-operation in 1995. During this
period, thanks to the joint efforts of both sides, the collaboration
between China and the OECD, which started from scratch, has
kept expanding and become more and more substantive. A
multi-level and diverse co-operation pattern has taken shape,
covering a wide array of areas ranging from macro-economic
policy, global governance, trade, investment, development, finance
and taxation, to science and technology, education, agriculture,
statistics, anti-corruption and competition, and fruitful results
have also been achieved. Today, over 30 Chinese ministries and
agencies have been engaged in co-operation with the OECD.
In the past 20 years, the research results of the OECD and the good
practices of its member countries have been introduced to China
through exchange of high-level visits, joint research, policy reviews,
conferences and workshops as well as capacity building activities,
and have been instrumental to China’s efforts in deepening the
“reform and opening up” process and promoting social and economic
development. In the meantime, the experience and effectiveness of
China’s developmental approach have in turn influenced OECD’s
research and analysis with a unique perspective and contributed
to enriching ideas for international development with “Chinese
elements”. The past two decades of co-operation have forged a
mutually beneficial partnership that answers the needs of both sides.
Currently, the international community is exploring a path towards
a robust, sustainable and balanced growth of the global economy.
Global value chains, regional integration and the new agenda of
international development all have profound impact on the process of
globalisation. Under such circumstances, dialogue and co-ordination
between economies at different stages of development have become
all the more important as global governance is marching towards
greater equality and inclusiveness. At the same time, China is also
making efforts to accelerate its reform process, build a new open
economy, accommodate to and lead the “New Normal” and further
deepen its co-operation with countries around the world. It was
against this backdrop that the Ministry of Commerce of China and
the OECD signed for the first time a comprehensive Memorandum
of Understanding for co-operation in November 2014. This MOU
has not only identified the orientation and working mechanism
for future co-operation, but has also demonstrated the goodwill
of both sides to further expand and deepen the collaboration.
Looking into the future, I believe that in the next two decades,
the partnership between China and the OECD will enjoy an
even broader prospect, going beyond the co-operation between
a country and an international organisation by making new
contributions to the common development of the world.
Gao Hucheng
Minister of Commerce,
3
20 years of partnership

TESTIMONIALS FROM
LIU He
Minister, Office of the Central
Leading Group for Financial and
Economic Affairs of China
Page 9.
YUAN Guiren
Minister of Education
Page 30.
LOU Jiwei
Minister of Finance
Page 13.
ZHOU Shengxian
Minister of Environmental Protection
Page 23.
HAN Changfu
Minister of Agriculture
Page 11.
ZHANG Yi
Chairman of the State-Owned Assets
Supervision and Administration
Commission of the State Council
Page 53.
MA Jiantang
Commissioner of National
Bureau of Statistics
Page 10.
WANG Weiguang
President of Chinese Academy
of Social Sciences
Page 59.
LI Wei
President of the Development
Research Centre of the State Council
Page 17.
XIAO Gang
Chairman of China Securities
Regulatory Commission
Page 15.
LI Baodong
Vice Minister of Foreign Affairs
Page 63.
CAO Jianlin
Vice Minister of Science
and Technology
Page 20.
FENG Zhenglin
Vice Minister of Transport
Page 47.
ZHANG Zhiyong
Deputy Commissioner of State
Administration of Taxation of China
Page 25.
ZHANG Boli
Vice President of the Party School
of the Central Committee of the
Communist Party of China
Page 55.
LU Mai
Secretary-General of China
Development Reform Foundation
Page 38.
ZUO Changsheng
Director-General of the International
Poverty Reduction Centre in China
Page 39.
XUE Lan
Dean of the School of Public Policy and
Management of Tsinghua University
Page 36.
VOICES TESTIMONIALS FROM
OECD
CHINA
Mikkel AARO-HANSEN
Deputy Permanent Secretary, Danish
Ministry of Environment Chair of the
Environment Policy Committee (EPOC)
Page 19.
Masatsugu ASAKAWA
Deputy Vice Minister for Policy Planning
and Coordination, Japanese
Ministry of Science Chair of the
Committee on Fiscal Affairs (CFA)
Page 12.
Dr Christoph BEIER
Vice Chair of the Managing Board /
Chief Operating Officer, Deutsche
Gesellschaft für Internationale
Zusammenarbei (GIZ)
Page 49.
Marcello BIANCHI
Chair of the Corporate
Governance Committee
Page 46.
4
OECD
CHINA

Lorenzo BINI SMAGHI
Former Chair of Working Party No.3
on Policies for the Promotion of Better
International Payments Equilibrium
of the Economic Policy Committee
Page 27.
Marcos BONTURI
Director, OECD Global Relations
Page 17.
Nick BRIDGE
Ambassador of the United Kingdom
to the OECD, Chair of the OECD
China Informal Reflection Group
Page 61.
Fernando DE MATEO
Ambassador, Permanent Mission
of Mexico to the WTO, Chair
of the Trade Committee
Page 49.
Martine DURAND
OECD Chief Statistician
Director of the OECD Statistics Department
Page 10.
Nick GIBB MP
Minister of State for School
Reform, United Kingdom
Page 59.
Teruyoshi HAYAMIZU
Counsellor of Minister’s Secretariat,
Japanese Ministry of Environment
Chair of the Chemicals Committee
Page 22.
Irène HORS
Head of Division, Strategic
Partnerships and New Initiatives,
OECD Global Relations Secretariat
Page 33.
Aart JACOBI
Ambassador of the Kingdom
of the Netherlands to the
Page 34.
Drago KOS
Chair of the Working Group on Bribery
in International Business Transactions
Page 33.
Paul J. LEBLANC
Deputy Minister, President of
Atlantic Canada Opportunities
Agency Chair of the Territorial
Development Policy Committee
Page 41.
Øyvind LONE
Former Chair of the Working Party
on Environmental Performance
of EPOC (1998-2012)
Page 33.
Catherine MANN
OECD Chief Economist
Director of the OECD Economics Department
Page 31.
Roel NIEUWENKAMP
Chair of the Working Party on
Responsible Business Conduct
Page 58.
Gabriela RAMOS
OECD Chief of Staff and Sherpa to the G20
Page 63.
Hendrik J. RIPHAGEN
Chair of the Committee for Agriculture
Page 55.
Manfred SCHEKULIN
Director for Export and Investment Policy,
Federal Ministry of Economics and Labour of
Austria Chair of the Investment Committee
Page 45.
Luis SANZ-MENÉNDEZ
Director of the Institute of Public Goods and
Policies from the Spanish National Research
Council (CSIC) Chair of the Committee
for Scientific and Technological Policy
Page 45.
Eduardo SOJO GARZA ALDAPE
President of the Mexican National
Institute of Statistics and Geography
(INEGI) Chair of the Committee on
Statistics and Statistical Policy
Page 61.
Erik SOLHEIM
UNEP’s Special Envoy for Environment,
Conflict and Disaster Chair of the
Development Assistance Committee
Page 39.
Niels THYGESEN
Former Chair of the Economic and
Development Review Committee (2000-2008)
Page 21.
Paulo VIZEU PINHEIRO
Ambassador of Portugal to the OECD,
Chair of the External Relations Committee
Page 62.
William WHITE
Chair of the Economic and
Development Review Committee
Page 60.
5

1995-2005
The 1990s paved the way for a new era of global co-operation and
economic interconnectedness. The OECD responded to this chang-
ing context by deepening its co-operation with selected countries
around the world. The co-operation between the OECD and the Peo-
ple’s Republic of China was launched in Paris in March 1995 with a
first workshop on trade and investment links between OECD coun-
tries and China, and broadened over the years to meet the growing
need for policy analysis and recommendations. In particular, sub-
stantive co-operation took off in a number of areas such as energy,
agriculture, environment, statistics, tax, corporate governance and
science and technology. The deeper engagement took place through
reciprocal visits, seminars, workshops or joint studies, co-ordinated
by the Chinese Ministry of Foreign Trade and Economic Co-operation
(now the Ministry of Commerce), which started to play an important
role in supporting OECD/China co-operation.
These early activities laid the groundwork for future reinforced en-
gagement, which started with Observer status in OECD Committees
(Scientific and Technological Policy [2001]; Committee for Fiscal Af-
fairs [2004] and evolved into a much more active role for China in
OECD bodies and initiatives. Some key milestones during the first
decade of the co-operation include China’s adoption of three OECD
instruments (Declaration on International Science and Technology
Co-operation for Sustainable Development; Declaration on Acces-
sion to Research Data from Public Funding in 2004, Paris Declaration
on Aid Effectiveness), and its participation in OECD regional initia-
tives (OECD Asian Roundtable on Corporate Governance [1999];
OECD/ADB Anti-corruption Action Plan [2005]). It also underwent
an in-depth assessment of its legal and institutional anti-corruption
policies in 2005 as part of the OECD-ADB Anti-Corruption Initiative
for Asia Pacific, and participated in high-level multilateral negotia-
tions, such as steel and shipbuilding subsidy agreements.
Beyond ongoing work in specific policy areas, increased co-operation
also spurred interest on both sides to have a better understanding
of key issues affecting China’s domestic economic policies and their
impact on the global economy. In 2002 and 2005 two reports were
published (China in the World Economy: Domestic Policy Challenges;
Governance in China) which were the result of a horizontal, OECD-
wide effort to foster dialogue and co-operation with a multitude of
Chinese ministries. The first report reviewed the policies needed
for China to reap the benefits of its further integration in the world
THE FIRST
TEN YEARS:
Gradually building mutual
trust and confidence
6
OECD
CHINA

economy, and showed the government’s determination to shift towards
a competitive and market-based economy. The second report provided
a unique set of insights on governance practices in China and enriched
OECD’s work in this field.
As co-operation deepened and relations of trust developed between min-
istries and the OECD secretariat, China started engaging in OECD policy
reviews. Through these exercises, China was able to benchmark its poli-
cy practices against best practices in OECD countries. In 2003, the OECD
published the first Investment Policy Review of China, prepared in col-
laboration with the Ministry of Commerce. In 2005, reviews on China’s
agriculture and budgeting policies were conducted, and three more were
initiated on environmental performance, innovation policy and regulato-
ry reform. Following the tradition of surveys of OECD economies, which
focus on policy and structural reforms to improve macroeconomic perfor-
mance, the OECD conducted its first Economic Survey of China in 2005, in
close co-operation with the National Development and Reform Commis-
sion. The Survey assessed main economic challenges faced by China and
provided recommendations in improving the productivity of the business
sector and reforming the financial system and public finances to better
support growth.
During this first decade of the OECD-China partnership, China’s increas-
ing participation in the Organisation’s activities helped to foster a better
understanding among OECD countries of China’s policy perspectives and
challenges. In turn, the OECD was pleased to respond to China’s increas-
ing request for the Organisation’s expertise and experience to support the
country’s economic and social development, such as the modernisation of
competition law in the early 2000s (Ministry of Commerce and the State
Administration for Industry and Commerce), the 2002 Codes of Conduct
(China Securities Regulatory Commission and the State Economic and
Trade Commission), and the anti-monopoly law in 2005 (State Council
Legislative Affairs Office).
At the end of the first ten years of a mutually enriching collaboration,
co-operation efforts were bearing fruit and setting the stage for the next
dynamic ten years. New areas of co-operation emerged as China further
adjusted the role of its State and market forces and became more closely
integrated into the global economic system. In May 2005, China and the
OECD issued a joint statement during the OECD Ministerial Council Meet-
ing confirming the mutual desire to further strengthen the co-operation in
the years to come.
7

Launch of the
“Strategy of
invigorating
the nation by
developing science
and technology”.
9th
Five-Year
Plan sets out a
fundamental
transition for the
Chinese economy:
from the traditional
planning system
to a socialist
market economy.
OECD Ministerial meeting gives
mandate for the OECD to establish
a country programme of dialogue
and co-operation with China.
OECD-ChinarelationsPoliticalandeconomicdevelopmentsinChina
1994 — One of the very first OECD Secretariat missions to
China : Dinner with Assistant Minister of Foreign Trade and
Economic Co-operation (MOFTEC) Long Yongtu, Beijing
1995
TIMELINE
OECD press releases
announcing first steps
taken to strengthen
OECD-China engagement
8
OECD
CHINA

Launch of the
OECD-China
co-operation
project on “Trade
and Investment
Links between
OECD Countries
and China”.
1995 — First OECD-China meeting featuring MOFTEC Assistant Minister Long
Yongtu and OECD Deputy Secretary-General Makoto Taniguichi, Paris
LIU He
Minister, Office of the Central Leading Group
on Financial and Economic Affairs
At the 20th
anniversary of establishing the policy dialogue relationship
between China and the OECD, I would like to congratulate both
sides on the success of past collaboration and thank the OECD
for sharing its expertise in policy making with China.
It is an integral part of China’s opening up process to co-operate with
international organisations, such as the OECD. This co-operation has
provided an important platform for China to learn from international
experiences and best practices. In the past two decades, the Chinese
government and related think tanks have developed a fruitful collaboration
with the OECD in a multitude of areas. This has been a mutual learning
process and has been instrumental in enhancing China’s policy-making
capacity. As a long-time participant in economic policy making in China,
I can personally attest to the benefits I gained from co-operating with
the OECD and from engaging in peer dialogue with OECD colleagues.
Looking ahead, China will continue deepening comprehensive reforms
and further opening up of the economy and will strive to fulfill, by the
middle of this century, the “Chinese dream” advanced by President Xi
Jinping. 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 in such areas as environment and climate
change, human capital, aging, urbanisation, income distribution and
poverty reduction. 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!
9

1996OECD-ChinarelationsPoliticalandeconomicdevelopmentsinChina
1996 — MOFTEC Assistant Minister Long Yongtu
and Peking University Professor Justin Yifu Lin
at the OECD Forum “China in the 21st
Century:
Long-Term Global Implications”, Paris
The OECD/IEA
concludes with
China’s then
State Planning
Commission
(now the NDRC)
a “Memorandum
of Policy
Understanding
in the Field of
Energy” to assist
China in its
transition to a
more-sustainable
energy economy.
Commencement
of a series of
agricultural
policy
workshops
jointly organised
over the years
with the Ministry
of Agriculture
and its affiliated
agencies.
Commencement of a
series of joint seminars
and workshops in China
organised over the
years with the State
Environmental Protection
Administration (now the
Ministry of Environmental
Protection), on topics such
as environmental taxation,
monitoring and indicators,
and national coherence of
environmental enforcement
and performance.
State Council
issues decision
to alleviate
burdens on
farmers.
Breakthroughs
in foreign
exchange reform
as China fulfils
the conditions
of IMF’s Article
VIII on achieving
current account
convertibility.
State Council
issues a
“Decision on
Several Issues
Concerning
Environmental
Protection”.
First annual
workshop
on national
accounts, held
in Beijing with
the National
Bureau of
Statistics. 2015
will see the 18th
consecutive
workshop
take place.
Martine DURAND
OECD Chief Statistician Director
of the OECD Statistics Department
Building on almost twenty years of collaboration in the
area of statistics, in March 2015, the OECD Statistics
Directorate and China’s National Bureau of Statistics
(NBS) signed a Memorandum of Understanding
(MoU) that is paving the way for an even broader
and more sustainable co-operation between our two
institutions. The MoU frames our future partnership on
the development of good statistics, their transmission
and dissemination, allowing us to better compare how
OECD and Chinese citizens consume, learn, work and
live. This renewed co-operation will not only foster
greater exchange of information and data but it will also
provide for joint research and studies, staff exchanges
and study visits between our institutions. The OECD is
proud of its longstanding, and future, collaboration with
China to develop “Better Statistics for Better Lives”.
MA Jiantang
Commissioner of the
National Bureau of
Statistics of China
Along with the collaboration between China
and OECD, the NBS and the OECD’s Statistics
Directorate have been working with each
other fruitfully since 1996. A typical example
is that we have jointly held 18 annual
seminars on national accounts. To measure
our progress towards the Chinese Dream
and better the lives of people, we are looking
forward to working with the OECD more
closely, to help people understand China and
the rest of the world with better statistics.
10
OECD
CHINA

Some early OECD publications dedicated
to China, published in 1996
HAN Changfu
Minister of
Agriculture
of China
The Chinese Government has persistent-
ly attached great importance to agricultural
development. Ensuring food supply for a pop-
ulation of 1.3 billion people has always been
the government’s top priority. Over the years,
China has achieved remarkable accomplish-
ments by following a new path of agricultural
modernisation with Chinese characteristics.
In 2014, China’s grain production grew for the
eleventhconsecutiveyear,withmorethan600
million tons of output to ensure the sufficient
supply of a large number of major agricul-
tural commodities. Farmers have seen their
income increase for the eleventh consecutive
year; social services and infrastructure devel-
opment have been significantly improved; so
have farmers’ living and production condi-
tions. The sustained and rapid development
of China’s agriculture and rural economy has
managed to meet the population’s growing
demand for agricultural products, effectively
supported the world’s largest and fastest in-
dustrialisation and urbanisation process and
significantly contributed to ensuring food se-
curity worldwide.
Agriculture plays an important part in the
co-operation between China and the OECD.
Over the past two decades, the two sides
have maintained effective collaboration in
agricultural policies, pesticide safety and
agro-machinery testing. The experience of
OECD countries in agricultural development
has provided a helpful reference for China in
agricultural development and rural reform.
Meanwhile, China has also shared with the
OECD its practical experience in developing
modern agriculture, ensuring national food
security and reducing rural poverty, improv-
ing understanding of China’s agriculture
among OECD members and non-OECD
economies.
Today, China is at a critical stage where in-
dustrialisation, IT application, urbanisation
and agricultural modernisation are advanc-
ing simultaneously. To transform traditional
agriculture and develop modern agriculture
is a long-term task. We are committed to
pursuing the path of agricultural moderni-
sation with Chinese characteristics, as well
as a new national food security strategy
that mainly relies on domestic resource and
production capacity, with moderate imports
and technology support. We will also strictly
protect arable land, accelerate progress in
agricultural science and technology, and pro-
mote farm mechanisation and IT application.
Meanwhile, efforts will be made to deepen
rural reform, develop moderate-scale opera-
tion of agriculture, and nurture new types of
agricultural operators and professional farm-
ers.Wewilltrytoreduceagriculturalnon-point
pollution and improve overall agricultural
production capacity and sustainability.
As an important international organisation,
the OECD has strong policy research and
analysis capacity. China would like to engage
in more exchange and co-operation with the
OECD in the area of agriculture and establish
a stable collaboration mechanism to share
experience in rural reform and development.
China and the OECD could work together to
promote modern agriculture, improve the
level of agricultural production worldwide
and strengthen global food security. I believe,
through our joint efforts, more measures will
be taken to boost China-OECD co-operation
in agriculture for more fruitful outcomes.
1996 — OECD Secretary-General Jean-Claude
Paye with MOFTEC Assistant Minister Long
Yongtu, at the OECD Forum “China in the 21st
Century: Long-Term Global implications”, Paris
11

China’s increasing role in the global economy
has been reflected in the modernisation of
its tax administration, its major tax reform
initiatives and its increased leadership
role in the global tax dialogue.
Partnership between China and the OECD’s
Committee on Fiscal Affairs (CFA) started
in the mid-1990’s when the co-operative
technical training programme on taxation
was established. Since then, our co-operation
has grown from strength to strength:
- in 2004, China became an Observer/
Participant in the CFA, and has
been participating in the CFA and
all its subsidiary bodies;
- in 2009, China became a member of
the Global Forum on Transparency and
Exchange of Information – a multilateral
framework within which work in the
area of tax transparency and exchange
of information is carried out by 120
jurisdictions which participate in the work
of the Global Forum on an equal footing –
and has been playing an important role
as Vice-Chair of the Steering Group;
- in 2011, China was elected as Vice-Chair
of Working Party 10 on Exchange of
Information and Tax Compliance.
Our collaboration gained further momentum
when, in 2013, China and the CTPA concluded
a three-year MOU for co-operative activities
in the tax area, the CTPA published a report
on Tax Policy and Tax Reform in the People’s
Republic of China, and China signed the
OECD Multilateral Convention on Mutual
Administrative Assistance in Tax Matters.
China also became an Associate in the OECD/
G20 Base Erosion and Profit Shifting (BEPS)
project, working together with OECD Members
on an equal footing on all aspects of the BEPS
project. China is taking a leadership role in the
CFA Bureau Plus, and we appreciate China’s
contribution in enriching our discussions.
In 2014, China joined the Declaration on
Automatic Exchange of Information in Tax
Matters adopted at the OECD Ministerial
Council. The CFA welcomes the partnership with
China in carrying out the challenging task of
modernising the current international tax rules
through the BEPS project, and implementing
new international standard on automatic
exchange of information. There is no doubt
that China’s contribution is indispensable
to achieve these goals. Looking ahead, we
hope to strengthen China’s collaboration in
all of the CFA’s work and develop a fairer
international tax system which will enhance
global sustainable and balanced growth.
1997
1997 — Spring blossoms at the
Yangzhou Tax Centre campus
Co-operation established with the State Administration
of Taxation, and commencement of regular technical
seminars hosted in the Yangzhou Tax Centre.
China and the OECD
hold a maritime policy
workshop in Paris.
Deng Xiaoping
Theory
entrenched into
the Communist
Party of China’s
Constitution as a
guiding ideology.
Jiang Zemin
re-elected as
the General
Secretary of the
CPC Central
Committee.
Goal set for establishing an
adequate financial system for
a socialist market economy.
Masatsugu ASAKAWA
Deputy Vice Minister for Policy
Planning and Coordination,
Japanese Ministry of Science
Chair of the Committee
on Fiscal Affairs (CFA)
12
OECD
CHINA

1998
Co-operation initiated with
the Ministry of Finance on the
consolidation of China’s budget
process, following a visit of
the Vice Minister of Finance
Lou Jiwei to the OECD.
Beginning
of a major
reform of the
organisational
structures of the
State Council.
Jiang Zemin
re-elected as
President of the
People’s Republic
of China, and
Zhu Rongji, the
Prime Minister.
LOU Jiwei
Minister of Finance
of China
The twenty-year co-operation between
the Ministry of Finance of China and
the OECD has witnessed continuous
development and improvement in
China’s public finance system. In the
past two decades, the two sides have
conducted pragmatic and effective
co-operation in various areas including
taxation, budgeting and capacity
building etc. Such co-operation has
helped China better understand
development policies and practices
applied by advanced economies.
Meanwhile, China’s development
philosophies and experiences are widely
shared through the platform of the OECD.
Building on these achievements, we
would like to work jointly with the
OECD to further expand and upgrade
our win-win co-operation in the area
of public finance and taxation.
1998 — OECD Secretary-General Donald Johnston
with the Ambassador of the People’s Republic
of China to France Cai Fangbo, Paris
1998 — Official mission of OECD Deputy Secretary-
General Kumiharu Shigehara to China, in a meeting
with Vice Minister of MOFTEC Sun Zhenyu, Beijing
1998 — OECD Secretary-General Johnston receiving Vice
Minister of Finance Lou Jiwei and Ambassador of the
People’s Republic of China to France Wu Jianmin, Paris
13

1999 — OECD Secretary-General Johnston with
Li Xiuji, Director of the Standing Committee of
the People’s Congress of Xiamen, Beijing
1999
China, through
China Securities
Regulatory
Commission
(CSRC), starts
participating
actively in the
OECD Asian
Roundtable
on Corporate
Governance.
Two early studies
on China released
under the “China
in the Global
Economy” series,
Agriculture
in China and
OECD Countries
– Past Policies
and Future
Challenges, and
Environmental
Taxes: Recent
Developments
in China and
OECD Countries.
OECD Secretary-
General Donald
J. Johnston makes
official visit to China, to
attend the Third China
Fair for International
Investment and
Trade in Xiamen,
and hold talks with
high-level Chinese
officials in Beijing.
Non-state sector
upgraded to
an “important
component”
of the socialist
market
economy.
“Western
Development
Strategy”
launched to
accelerate
development
of the Western
regions.
State Council
enacts a “Decision
on Deepening
Education Reform
and Promoting
Essential-
Qualities-Oriented
Education”.
50th
anniversary
of the foundation
of the People’s
Republic of China.
Beginning of a
series of major steps
in state-owned
enterprise reforms.
International
seminar on
“China in the
21st
century:
challenges
of global
and national
economic
integration”,
organised jointly
by the OECD
Development
Centre, the
Chinese
Academy of
Social Sciences
and the
Government of
Yunnan Province,
in Kunming.
1999 — OECD Secretary-
General Johnston shaking
hands with Minister of Finance
Xiang Huaicheng, Beijing
14
OECD
CHINA

XIAO Gang
Chairman of the China Securities
Regulatory Commission
More than a decade has passed since the China Securities
Regulatory Commission (CSRC) began to work with the OECD
in corporate governance and other areas of interest. Thanks
to the assistance from the OECD, over the years, the CSRC
has made remarkable progress in improving the corporate
governance of listed companies, by drawing upon standards
internationally accepted and experiences in mature markets,
while fully recognising that the Chinese capital market is still in
the emerging and transitioning stages. We have established a
sound legal framework for corporate governance, completed
the reform on the separation of equity ownership and trading
rights, improved the information disclosure-related regulations,
and strengthened the protection of minority shareholders.
These actions have played a crucial role in promoting modern
corporate practices, improving the quality of listed companies
and enabling the capital market to better serve the real economy.
The past few years have seen the capital market rapidly growing
in China, with increasingly diversified market layers, products,
listed companies and investor bases. It poses severe challenges
to regulatory authorities. The CSRC will, in line with the national
reform roadmap, continue improving corporate governance of
listed companies and amend the Code of Corporate Governance
for Listed Companies, as appropriate. The CSRC looks forward to
carrying on co-operation with the OECD in this regard and stands
ready to explore new areas of exchanges, including due diligence
and the protection of financial consumers, to keep updated on
the international regulatory landscape and contribute to the
steady and sound development of the Chinese capital market.
General Johnston
greeting Governor of the
People’s Bank of China
Dai Xianglong, Beijing
1999 — MOFTEC representative
attending a conference on trade
and competition at the OECD, Paris
General Johnston shaking
hands with Minister of
Science and Technology
Zhu Lilan, Beijing
Some early OECD
publications dedicated to
China, published in 1999
15

2000
OECD starts
participating
at high-level
in the China
Development
Forum.
Close co-operation
with the Development
Research Centre
(DRC) of the State
Council to develop the
first Chinese dynamic
computable general
equilibrium model
assessing the impact
of accession to WTO
on China’s economy.
Special
Administrative
Region of Hong
Kong joins the
Programme for
International
Student Assessment
(PISA).
Publication of
National Accounts
for China: Sources
and Methods.
Jiang Zemin
first puts forth
the important
thought of
the “Three
Represents”
while on an
inspection tour
in Guangdong.
China launches
pilot reforms to
rural fee and
tax system.
10th
Five-Year Plan.
First inclusion of
data on China in
the OECD annual
publication
Education at
a Glance, as
the first step
in deepening
collaboration
between the
OECD and
China in the
development
of education
indicators and
data collection.
2000 — Assistant Minister of MOFTEC Ma
Xiuhong speaking at the OECD Forum
“Partnerships in the New Economy”, Paris
2000 — DRC President Wang Mengkui attending a conference on China and World Economy at the OECD, Paris
16
OECD
CHINA

LI Wei
President of the Development Research
Centre of the State Council of China
Twenty years have passed since the Development Research
Centre of the State Council (DRC) began to work with the OECD.
The DRC and the OECD have developed fruitful co-operation
in many fields, such as macroeconomic forecasts, agriculture
and rural development, modern services industry, global value
chain, innovations in science and technology, the “Happy Life
Index”, corporate governance and intellectual property rights.
OECD’s authoritative data, forward-looking global perspectives
and rich experiences in international comparison studies have
contributed positively to our policy research. In addition, a
regular exchange mechanism has been established between
us. Secretaries-Generals of the OECD have attended our China
Development Forum for the last 15 consecutive years, sharing
their wisdom and suggestions for the reform and development
of China. At the 20th
anniversary of this co-operation, I would
like to extend our sincere gratitude on behalf of the DRC to
the OECD for its active participation in and great support
to the research in economic and social policies in China.
As the policy research and consulting organ for the Central
Government of China, the DRC has been working to build a
new think tank with Chinese characteristics to widen and
deepen international exchanges and co-operation. As an
authoritative global think tank, the OECD has been the initiator
or advocate for a number of governance rules worldwide.
As we both are committed to promoting social progress and
improving people’s lives through policy research, it is our
shared wish to learn from each other, broaden exchanges and
deepen co-operation. I believe, through our joint efforts, our
co-operation will level up and grow even further, to provide
better intellectual support for China and the rest of the world.
2000 — Farewell visit of Minister Counsellor Tong Jiemin to the OECD,
with OECD Secretary-General Johnston and the team of OECD
Centre for Co-operation with Non-Members (CCNM), Paris
Marcos BONTURI
Director of OECD
Global Relations
The OECD’s Global Relations
Strategy seeks to make
the Organisation a more
effective and inclusive global
policy network, through close
co-operation with our five
Key Partners (Brazil, China,
India, Indonesia and South
Africa) and strengthened
engagement with all regions
of the world. Over the years,
this engagement has led
to a better understanding
of the challenges faced by
large emerging economies
and has enriched the
global policy debate at
the OECD. Looking ahead,
we will continue working
towards an ever closer
relationship. I am convinced
that co-operation between
the OECD and China is of
mutual interest, as well
as to the benefit of the
broader global community.
17

2001
Beginning of
China’s regular
participation in
the ministerial
meetings of
the OECD
Environmental
Policy Committee,
held approximately
every four years.
China acquires
its first OECD
Observer (now
Participant) status
in the Committee
for Scientific and
Technological
Policy.
“Framework for
Energy Technology
Co-operation”
signed between
OECD/IEA and
Ministry of Science
and Technology
of China.
State Council
releases Outline
for Poverty
Reduction and
Development
of China’s
Rural Areas.
Declaration and
first summit of
the Shanghai
Co-operation
Organisation.
80th
anniversary
of the foundation
of the Communist
Party of China.
China becomes
WTO’s 143rd
member after
15 years of
negotiations.
General Johnston
speaking to Assistant
Minister of MOFTEC
Long Yongtu, at the
OECD Ministerial
Council Meeting, Paris
2001 — Vice Minister of the
State Environmental Protection
Administration Wang Xinfang
attending the ministerial meeting
of the OECD Environmental
Policy Committee, Paris
18
OECD
CHINA

Mikkel AARO-HANSEN
Deputy Permanent Secretary, Danish Ministry of Environment
Chair of the Environment Policy Committee (EPOC)
Taking into account the importance of China to the global economy and its challenges in
the field of environment, the OECD Environment Policy Committee (EPOC) has been very
committed to promoting environmental co-operation with China over the last 20 years.
Through a series of joint activities agreed on an annual basis, EPOC has shared
OECD country experiences, best practices and guidelines in order to assist China
to identify those which might best be adapted to the Chinese context. At the
same time, EPOC members have gained insights into the major environmental
challenges facing China, and the measures being taken to address them.
Over the years the co-operation has focused on engaging Chinese experts and officials in
several dimensions of the OECD Environment Programme. This includes seminars and
publications on environmental taxation and use of economic instruments in environmental
policies, environmental monitoring and indicators, environmental financing in the water
sector, environmental compliance and enforcement. More recently, China has been engaged
in the work on extended producer responsibility schemes and contributing to the OECD
Database on Instruments used for Environmental Policies. A particular highlight of past
co-operation was the 2007 OECD Environmental Performance Review (EPR) of China.
China has also shown high-level commitment to EPOC and its work. Since
2001, the Chinese Deputy Ministers on Environment have participated in all
EPOC Ministerial Meetings, which are held every four years. We are looking
forward to China’s participation in the next EPOC Ministerial in 2016.
Since 2008, EPOC’s aim has been to continue to actively engage China in the
work of EPOC and its subsidiary bodies in order to support China in achieving its
environmental objectives and to contribute to the development and implementation
of effective and efficient environmental policies that foster green growth in China.
EPOC encourages China to continue to develop and implement progressive
environmental policies and to draw upon OECD experience in doing so.
2001 — OECD Deputy
Secretary-General
Seichii Kondo shaking
hands with Han Jun,
DG of DRC’s Research
Department of Rural
Economic Development, at
a special meeting on OECD
horizontal study on China of
the Economic Development
Review Committee, Paris
19

2001
CAO Jianlin
Vice Minister of Science and Technology of China
The 21st
century has witnessed
remarkable progress that China
has made in economy, science and
technology as well as its ever-growing
contribution to the global knowledge
creation. From 2001 to 2014, China’s
GDP jumped from the world’s No.6
to No.2, its SCI papers from the
world’s No.8 to No.2, and its patent
applications from the world’s No.12
to No.1. In 2013, its RD spending
amounted to 2.08% of that year’s GDP.
Collaboration between the OECD and
China has been mutually rewarding.
In 2001, the Ministry of Science and
Technology (MOST), on behalf of
the Chinese government, acquired
its first “Participant” status in the
OECD Committee for Scientific and
Technological Policy (CSTP). Since then, a
number of fruitful co-operative activities
have been conducted in innovation
policy evaluation and inclusive
innovation. We produce joint research
reports and share China’s experience.
The Oslo Manual and the OECD Science,
Technology and Industry Scoreboard
were translated and introduced in
China, to provide understanding of the
evolution and trends of international
measurements for innovation, and to
guide innovation surveys in China. The
China-OECD Roundtable on Innovation
Policies was held to exchange ideas
on innovation policy-related practices
and outcomes. Chinese professionals
were seconded to work at the OECD
Secretariat on short-term assignments
to enhance our mutual trust and
interaction. The “China-OECD Science,
Technology and Innovation Co-
operation Liaison Office” was created
in 2011 and the related information
network was launched soon after.
The OECD’s prospective research in
innovation policies, such as innovation
surveys, governance of public
organisations, and RD tax incentives,
has positively influenced China’s reform
and policymaking in these fields.
On behalf of my Ministry, I would
like to extend congratulations on the
20th
anniversary of the China-OECD
partnership in policy dialogues. China
is now stepping into a new phase to
build a moderately prosperous society,
comprehensively deepen reforms
and promote the rule of law. China
is evolving towards a New Normal
of economy that is better structured
under a more advanced pattern and
a more complex division of labour. It is
transforming from high-speed growth to
medium-high-speed growth and from
the extensive growth of size and speed
to the intensive growth of quality and
efficiency. It is putting more emphasis
on the driving role of innovation and
the improvement of people’s lives. In
the current slow recovery of the world
economy, it is the common task for
every country to use innovation and
address social and global challenges.
The Chinese government is committed
to an innovation-driven development
strategy. To deepen the reform of the
scientific and technological system,
we need to review the elaboration of
innovation policies and flexibly utilise
the tool to improve the efficiency
of public funding and research
activities. In the new context, the co-
operation between China and the
OECD will become more essential.
In the years to come, we look forward
to even closer co-operation with
the OECD in science, technology
and innovation (STI), especially in
formulating the measurement system
for STI policies, driving economic
growth and generating benefits to and
for the people through innovation.
20
OECD
CHINA

China participates
in the negotiation
of the OECD
Steel Subsidy
Agreement.
China participates
in the negotiation
of the OECD
Shipbuilding
Agreement.
Beginning
of China’s
participation in
the OECD-Asian
Senior Budget
Officials Network.
Publication of China
and the World
Economy: Domestic
Policy Challenges.
Construction of
the West-East Gas
Pipeline kicks off.
Notion of a
“moderately
prosperous
society” is first put
forward at the 16th
Party Congress.
Jiang Zemin’s
“Three Represents”
thought ratified
as a guiding
ideology by CPC.
Hu Jintao elected
as the Secretary-
General of the CPC.
Framework
Agreement on
China-ASEAN
Comprehensive
Economic Co-
operation signed
in Phnom Penh,
Cambodia.
Niels THYGESEN
Former Chair of the OECD Economic and
Development Review Committee (2000-2008)
The OECD started its analytical work on the Chinese
economy more than 15 years ago, leading initially
to its major background study “China in the World
Economy”, published in 2002. Since then three
Economic Surveys of China have appeared – at
somewhat irregular intervals in 2005, 2010 and
2013 – following the traditional pattern of finalising
a draft prepared by the OECD Secretariat in a
lengthy meeting of the Economic Development
and Review Committee (EDRC), with the active
participation of government representatives from
the country studied, in the case of China its NDRC.
I had the privilege of chairing the EDRC at the time
of the first of these surveys nearly a decade ago and
vividly recall the country’s eagerness to engage in this
new enterprise. There was no difficulty in persuading
colleagues to take the role of lead discussants;
this was a unique learning process for us to look
at a wide-ranging list of policy issues for China and
to reflect on the applicability of traditional OECD
policy recommendations. Looking back at the topics
treated at the time, it is now even more obvious than
it was in 2005 that there was much to be learnt from
the Chinese experience: structural reforms seemed
to work, financial stability had been largely restored
after a difficult period, and the Chinese currency
began to appreciate slowly – a recommendation
in the Survey - shortly after our discussion.
The interaction of the OECD with the Chinese
authorities in Paris in the EDRC as well as
elsewhere has become more intense since 2005 in
step with the rapidly growing role of China in the
world economy, but the fruitfulness of the OECD
engagement, contributing to how China can best
design her economic policy in the light of relevant
international experience has stood the test of time.
2002
21

2003
First Investment
Policy Review of
China published,
in collaboration
with MOFCOM.
Representatives
from China
participate
in the OECD
consultations
on the first
revision of the
OECD Principles
of Corporate
Governance and
the development
of new SOE
Guidelines.
Special
Administrative
Region of
Macao joins the
Programme for
International
Student Assessment
(PISA).
First MOU on co-
operation in the
field of environment
signed with the
State Environmental
Protection
Administration,
renewed
consecutively in
the following years
to define issues of
common interest.
Beginning of
increasing
engagement with
the China Council
for International
Cooperation on
Environment and
Development
(CCICED).
First incorporation
of Chinese short-
term economic
data into OECD
Main Economic
Indicators database
and publication
(including
National Accounts
data) renewed
consecutively in
the following years
to define issues of
common interest.
Seminar co-hosted
with DRC on
competition and
reform in the rail
sector, which helps
advance debates
at vice minister
and ministerial
level in China.
Hu Jintao elected
as President of the
People’s Republic
of China, and
Wen Jiabao, the
Prime Minister.
State Council
issues the plan
to “Revitalise the
Old Northeast
Industrial Bases”.
China sends its first manned
spacecraft “Shenzhou V” into orbit
and becomes the third country
to send a human into space.
Teruyoshi HAYAMIZU
Counsellor of Minister’s Secretariat,
Japanese Ministry of Environment Chair of the Chemicals Committee
The OECD system on Mutual Acceptance of Data
(MAD) allows countries to share results of safety
tests on chemicals, reduces duplicative industry
testing and government assessments, creates jobs
for testing labs and saves adhering governments
and industry over EUR 150 million every year. Since
2003, China has expressed its interest in exploring
adherence to MAD, and OECD and China have been
working together since then on a technical basis.
During this period, China has translated the OECD
Test Guidelines/Principles of Good Laboratory
Practice (GLP), established GLP monitoring
authorities, which are key components of MAD,
and attended OECD training courses for GLP
inspectors. The OECD Chemicals Committee would
welcome China’s adherence to MAD which would be
mutually beneficial to China and OECD countries.
22
OECD
CHINA

ZHOU Shengxian
Minister of Environmental Protection of China
Throughout the extensive evolution process of
the infinite universe, only the Earth, a blue little
planet in the space, is known to cradle humanity.
Who by the riverside first saw the moon arise?
When did the moon first see a man by riverside?
Wise men at all times from China and abroad
were baffled by such philosophical questions.
However, properly handling the relationships
between human and nature will surely become
a crucial achievement of human civilisation.
With the vicissitudes of time, environmental and
resource issues have become historical problems
that human society has to face. Environmental
protection has been attracting more and more
attention from all nations around the world.
As the largest developing country, China is faced
with unprecedented challenges of resources
and the environment in the course of rapid
economic growth. The environmental problems
that occurred in stages in developed countries
a few centuries ago have concentrated and
emerged in China in structured, compressed and
complex forms during the last three decades. As
new environmental issues emerge before pre-
existing ones have been properly addressed,
there remains a big gap between improvement
of the environment and the public expectation.
Faced with the severe environmental situation,
the Chinese Government is placing environmental
protection in a strategic position more important
than ever before, and giving tremendous support
to the construction of ecological civilisation.
President Xi Jinping said that building a new era
of ecological civilisation and a more beautiful
China is an essential part of the Chinese Dream
to rejuvenate the nation. Premier Li Keqiang also
“declared war” against pollution and called for
stringent measures to accomplish the tough job, in
order to achieve ecological civilisation and a more
beautiful homeland. These show the strong will and
determination of the Chinese Government to build
ecological civilisation and protect the environment.
Today, the Chinese economy has entered into the
New Normal. As new features and trends begin to
emerge in ecological civilisation construction and
environmental protection, priority is given to the
harmony between socio-economic development and
environmental protection, environmental protection
and prevention, the recuperation of over-taxed
resources and the environment, the satisfaction of
the expectation of the public for a sound ecological
environment, the systematic treatment of the
problems concerning mountains, rivers, forests,
farmlands and lakes, the total pollution prevention
throughout the whole reproduction process, the
reliance on legislation and rule of law to protect
the environment, and the enforcement of the
environmental accountability of local governments
and Party committees. Among them, the most
fundamental and crucial task is to properly
address the relationship between environmental
protection and economic development, to explore
new paths and develop new thinking, measures
and methods to protect the environment.
A new state of mind is needed to navigate the
New Normal. We should gain knowledge and
pro-actively adapt ourselves to the emerging
situation. We should follow it, not without making
breakthroughs, to continually improve the level
of ecological civilisation. First of all, in terms of
approaches, we should positively explore new ways
to protect environment while integrating economic
and environmental objectives. Secondly, in terms of
the stage of development, the improvement of the
environmental quality should work as our guide to
push ahead the transformation of environmental
management strategies. Thirdly, in terms of
priorities, we should win the battle against the
pollution of air, water and soil while pushing forward
pollution prevention, ecological conservation and
nuclear and radioactive safety supervision. Fourthly,
in terms of working methods, the market and
legislation should be allowed to have free play, with
innovative ways of environmental management.
Finally, in terms of mind-set, the style of work
should be continually improved, to be “strict with
self-development, the exercise of power and self-
discipline and earnest in making plans, opening up
new undertakings and upholding personal integrity.”
In the process of ecological civilisation construction,
China is open and willing to continue working
with the OECD and its members to foster mutual
trust and build consensus. We will promote policy
dialogue, deepen the mutually beneficial and
pragmatic co-operation and scale up collaboration
in a broader range of areas. We will work jointly
with the OECD towards building a beautiful earth.
23

2004
China, through
its State
Administration of
Taxation, becomes
a member of the
OECD Forum on
Tax Administration,
as well as
Participant in the
Committee on
Fiscal Affairs.
China joins the
OECD Declaration
on Access to
Research Data from
Public Funding.
Report Income
Disparities in
China – An OECD
Perspective
published, after a
joint seminar with
the NDRC, held in
Paris in 2003.
Beginning of regular
co-operation
on China-OECD
Policy Dialogue
on Corporate
Governance.
Two events on
intellectual property
rights (IPRs) and
enforcement
organised in Beijing,
the first in co-
operation with the
State Intellectual
Property Office
and DRC, and the
second with the
Ministry of Science
and Technology.
China joins the
OECD Ministerial
Declaration on
International
Science and
Technology
Co-operation
for Sustainable
Development.
State Council
issues the
landmark “Nine
Measures”
document to
unlock the
development of
capital market
in China.
“Protection of
private property”
and “respect
and protection
of human rights”
are written into
the Constitution.
Bank of China
and China
Construction
Bank
successfully
undergo
shareholding
reform.
2004 — Li Shantong, Director of
DRC’s Development Strategy
Regional Economy Department,
participating in the OECD Forum
“The World Economy in 2004”, Paris
2004 — Zhu Xiangdong, Deputy Commissioner of
China’s National Bureau of Statistics attending the first
meeting of the OECD Committee on Statistics, Paris
OECD Information
Technology Outlook
released in Chinese
24
OECD
CHINA

ZHANG Zhiyong
Deputy Commissioner of State
Administration of Taxation of China
The year 2015 marks the 20th
anniversary of the
co-operation between the People’s Republic of
China and the Organisation for Economic Co-
operation and Development (OECD). These two
decades also witnessed the pragmatic, rich, varied
and remarkable co-operation between the State
Administration of Taxation (SAT) and the OECD.
Particularly in June 2004, together with the Ministry
of Finance (MOF), the SAT became an Observer of
the Committee on Fiscal Affairs (CFA) of the OECD.
Since then, we have been an active participant in
the research of tax-related issues in all the working
groups of the CFA, and subsequently global forums
initiated by the OECD, including on transfer pricing,
tax transparency and exchange of information, tax
treaties and value-added tax (VAT). On the other
hand, the OECD has provided us with long-term and
invaluable expertise and technical support in relation
to personnel training and legislative consultation.
It has indeed played an active role in improving
our tax policies and administrative system.
Mandated by the G20 in September 2013, the OECD
has launched the Base Erosion and Profit Shifting
(BEPS) Project and the Automatic Exchange of
Information (AEOI) Project. As an Associate, China
has been deeply involved in all 15 BEPS action plans
and the formulation of the AEOI Common Reporting
Standard. We are working together on an equal
footing with OECD and non-OECD countries to create
international tax regulations, push ahead with the
co-operation between jurisdictions in the tax field,
and assist developing and low-income economies
in enhancing their tax administration capacity. The
final completion of these projects will be essential
to the establishment of a sound and equitable
international tax system and the safeguarding
of tax bases of all participating jurisdictions.
The tax administrations worldwide are faced
with common challenges in the era of accelerated
economic globalisation in the aftermath of the
recent financial crisis. In 2014, G20 leaders called
for enhancing international tax co-operation
and cracking down on cross-border tax evasion
and avoidance. We wish for an increasing
role of the OECD in promoting international
tax co-operation and in formulating equitable
international tax rules. We look forward to
further co-operation and collaboration with
the OECD to generate even greater outputs.
2004 — OECD Deputy Secretary-General Herwig
Schlögl and Adrian Paterson, Chief Operating Officer
of the Department of Science and Technology of South
Africa, in interview during a special programme on
intellectual property rights of the CCTV, Beijing
As a large developing country with a
history of only two decades of intellectual
property development, China should consider
in depth how to make use of the intellectual
property system to promote economic and
social progress and achieve a win-win result
in international co-operation and exchange.
Hence, we are always ready to learn from the
most advanced and successful experiences
in intellectual property policy-making and in
management of intellectual property rights
from governments and enterprises of other
countries as well as from relevant
international organisations.
Written remarks at the High-level Workshop
on Intellectual Property Rights Economic
Development in China, Beijing, April 2004.
WU Yi
Former Vice Premier of China
25

2005
Beginning
of China’s
participation
(at Vice Minister
level) in the
OECD Working
Party 3 for the
Promotion of Better
International
Payments
Equilibrium.
Publication of
Governance in
China, final report
of the China
Governance
Project.
China becomes
the 25th
member
of the ADB/OECD
Anti-Corruption
Initiative for
Asia-Pacific.
China participates
in the Forum on
Partnership for
More Effective
Development Co-
operation, as a first
step in the build-
up of a structured
and sustained
dialogue with non-
DAC partners, and
endorses the Paris
Declaration on Aid
Effectiveness.
Two forums in
China to improve
public debt
management and
the development
of government
securities markets,
in co-operation
with the Ministry
of Finance.
First ever OECD
Economic Survey
of China published,
prepared in close
co-operation
with the NDRC.
Agricultural
Policies Review of
China published,
conducted in
co-operation
with DRC.
OECD becomes a
permanent co-
sponsor of the
annual China
International Fair
for Investment and
Trade (CIFIT).
China attends at
minister-level the
OECD Ministerial
Council Meeting
for the first time
and issues the
Joint China-OECD
Statement.
State Council
issues the
“36-point
proposals” to
encourage and
support the
development
of the non-
state sector.
China moves
into a managed
floating
exchange rate
system based on
market supply
and demand,
with reference
to a basket of
currencies.
11th
Five-Year Plan.
2000-year-old
agricultural
tax officially
abolished,
benefiting as
many as 900
million farmers
across China.
Concept of
“New Socialist
Country”
put forward,
kicking start a
new round of
reforms in the
rural areas.
2005 — OECD Secretary-General Johnston presenting the
results of the OECD report “China in the World Economy:
The Domestic Policy Challenges”, at a joint symposium with
the DRC during the China Development Forum, Beijing
26
OECD
CHINA

Lorenzo BINI SMAGHI
Former Chair of the OECD Working Party No.3 on Policies for the Promotion of
Better International Payments Equilibrium of the Economic Policy Committee
WP3 is one of the few OECD working groups with
a special restricted composition, being limited to
the representatives of Central banks and Finance
ministries of the Group of 10. This was justified by
the fact that the G10 countries represented a large
part of the OECD’s economy. Furthermore, the group
discussed issues related to Balance of Payment
adjustment and macroeconomic policies in a rather
informal way, benefitting from confidentiality.
Over time, the emergence of new economic powers
that became associated with the OECD raised the
issue of participation in WP3 meetings. China was the
obvious candidate to join, as it was already member
of the G20 and the IMF’s Multilateral Consultation.
The G7 had already expanded informally some of
the meetings to include Chinese representatives.
Indeed, China was not only becoming one of the
largest economies, but it also recorded a very large
current account surplus which made its integration
in the world economy particularly relevant. The
decision was taken to invite representatives from
the Chinese Finance ministry and the central
bank to WP3 meetings, once a year. This gave
the Chinese representatives the opportunity to
interact with the other members on relevant
policy issues, such as macroeconomic policies,
structural adjustment, financial liberalisation.
This also enabled the other WP3 members to put
their own policies into a broader perspective.
2005 — Secretary-General Johnston with NDRC Vice Chairman
Wang Chunzheng, surrounded by officials of NDRC and
OECD Economics Department, Beijing
2005 — Joint OECD-NDRC Press conference
on the occasion of the launch of the first
OECD Economic Survey of China, Beijing
2005 — Presentation of the Economic
Survey of China at Renmin
University, Beijing
27

2006-2015
Much of the developing world experienced high growth rates in
the 2000s, with strong performance in emerging economies like
China and India that significantly changed the global economic
landscape. The OECD responded to these trends by bolstering its
relations with major emerging economies. In May 2007, the Min-
isterial Council decided to strengthen its links with Brazil, China,
India, Indonesia and South Africa through a process of “Enhanced
Engagement”. This transition toward deeper OECD global outreach
also took place at the onset of the global financial crisis, and came
at the moment when concerted efforts and closer intergovern-
mental co-operation became essential to address the challenging
economic environment.
When the OECD celebrated its 50th
anniversary in 2011, the Organi-
sation had grown from a transatlantic community in the immediate
post-war era to a more inclusive global policy network, expanding
its membership to 34 countries and engaging in a varied and flexible
relationship with countries and economies around the world and at
different stages of development. In 2012, an “open door” policy was
endorsed, integrating the five Key Partners in all OECD Committees’
mainstream work and creating the possibility of near-equality with
Member countries under the new forms of partnership.
During the second decade of the OECD-China relations, engagement
continued to deepen in existing areas, notably in environment, sci-
ence and technology, taxation, transport and energy. For instance,
in 2007, co-operation with the State Environmental Protection Ad-
ministration (now Ministry of Environmental Protection) culminated
in an Environmental Performance Review of China, which offered
some 51 recommendations to the Chinese authorities to strengthen
effectiveness in implementing environmental laws and to mobilise
financing for environmental infrastructure. In 2008, the Innovation
Policy Review of China was released after three years of intense
preparation together with the Ministry of Science and Technology.
It assessed the status of China’s national innovation systems and
provided recommendations for promoting innovation through a
market-based approach.
Important headways were made in the area of taxation, further ce-
menting China’s institutional engagement with the OECD. In 2009,
China joined as Vice Chair the Steering Group of the OECD Global
Forum on Transparency and Exchange of Information. In the fol-
lowing years, China became a member of the Steering Group of the
THE SECOND
TEN YEARS:
Strengthening the co-operation towards
a comprehensive partnership
28
OECD
CHINA

newly launched Global Forum on Transfer Pricing and the Global Forum on Value
Added Tax, joined as an Associate the OECD/G20 Project on Base Erosion and Profit
Shifting and the Working Party 10 on Exchange of Information and Tax Compliance
of the Committee on Fiscal Affairs, and adopted the Convention on Mutual Admin-
istrative Assistance in Tax Matters and the Declaration on Automatic Exchange of
Information in Tax Matters. Additionally, China became a member of the Interna-
tional Transport Forum, and joined other Key Partner countries and Russia under the
“Association Initiative” of the International Energy Agency.
At the end of 2010, China reached upper middle income country status (as measured
by World Bank standards) and was faced with socio-economic development chal-
lenges similar to those in many OECD countries, in particular regarding how to foster
and sustain more inclusive, greener and productivity growth. The scope of OECD/
China co-operation was further expanded to reflect the evolving paradigm of China’s
development trajectory, catalysing joint work in an array of new areas such as educa-
tion, urbanisation, development co-operation, ageing, social inclusion and wellbeing,
state-owned enterprise reform, responsible business conduct and trade in value
added measurement and global value chains.
Great strides have been in education as a result of the deepened co-operation. In
2006, the Ministry of Education started a pilot Programme for International Student
Assessment (PISA) in several provinces, starting with Shanghai, as preparation for a
broader participation of China in the survey, including Beijing, Jiangsu and Guang-
dong (2015 survey). The OECD has also examined through specific policy reviews
China’s tertiary education and higher education systems, as well as its vocational
education and training system in upper secondary schools.
The OECD has been able to provide a leading role helping China to cope with urban
management as a result of the unprecedented scale and speed of urbanisation in
the country. Between 2009 and 2013, the OECD conducted a series of joint studies on
urbanisation trends and urban policies with the China Development Research Foun-
dation. Since 2013, the OECD is partnering with the NDRC on a National Urban Policy
Review of China to assess the main governance challenges facing Chinese cities and
examine a wide range of national policies affecting China’s urban development, par-
ticularly in areas like rural-urban migration, land management and urban planning.
Furthermore, substantive co-operation in the area of development co-operation
started relatively late in 2009 with the establishment of the China-DAC Study Group,
but has gained increasing momentum in recent years, bringing together a growing
number of national and international officials, experts, private sector and civil soci-
ety actors to generate mutual learning on delivering quality aid, promoting growth
and reducing poverty in developing countries. By 2014, the Study Group had organ-
ised eight thematic conferences and action-oriented roundtables or policy symposia,
as well as several study visits to Africa.
29

While new areas of co-operation continue to emerge and OECD-China relations are mov-
ing towards a more comprehensive partnership, China is also progressing in its “learning
curve” of OECD good practices. China’s application of OECD concepts and standards is
a remarkable acknowledgement of their value. For example China has embodied OECD
approaches such as “Polluter Pays” and “User Pays” principles through environmental
charges of water pricing. It also took the OECD Principles of Corporate Governance as
the basis for the 2011 self-assessment by China Securities Regulatory Commission, which
conducted a thorough review of all laws, regulations and codes of listed companies in
China. The OECD Guidelines on Corporate Governance of State-Owned Enterprises, the
OECD Guidelines for Multinational Enterprises, and the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas are
also good examples of how China is applying OECD standards. The Guidance on Supply
Chains of Minerals is especially important as was promoted in China to help Chinese
companies respect human rights and avoid contributing to conflict through their mineral
purchasing decisions and practices.
The OECD is active in China. It has established regular interactions with over 30 Chinese
ministries and agencies over the last few years. The Secretary-General has participated
in almost all meetings of the China Development Forum, and dramatically raised the Or-
ganisation’s level of contact with the Chinese government through bilateral meetings and
encounters with Chinese leaders. As a result, the OECD is recognised by a broad spectrum
of people in China as the voice for “Better Policies for Better Lives”. In 2014, the OECD was
even invited by the National Development and Reform Commission to contribute to the
policy discussions leading up to the launch of the forthcoming 13th
Five-Year Plan, iden-
tifying policy options for fostering inclusive growth in China as well as adjusting the role
of the state in the transition towards a stronger and better-functioning market-based
economy.
Twenty years of fruitful co-operation further crystallised in November 2014 into the
“Memorandum of Understanding between the OECD and the Ministry of Commerce”. In
a spirit of mutually beneficial partnership, the MOU maps out a common blueprint for
future co-operation, taking OECD-China relations to a whole new level of collaboration.
2006-2015 YUAN Guiren
Minister of Education of China
Education is the cornerstone of national
rejuvenation and social development. In
order to modernise its education systems and
meet citizens’ expectations, China is leading
comprehensive education reforms through
the prism of rule of law. Working closely with
globally influential organisations like the
OECD can help us push forward reforms and
development of China’s education system with
international perspectives and experience.
The co-operation between the Chinese Ministry
of Education and OECD dates back to the 1990’s.
The past two decades have witnessed the fruitful
results achieved jointly in areas such as higher
education, vocational education, pre-school
education and educational data analysis.
Our co-operation has been carried out in various
forms, such as joint research studies, forums and
translation of OECD publications into Chinese.
In 2009 and 2012, Shanghai participated in
OECD’s Programme for International Student
Assessment (PISA) and performed remarkably.
Currently, the Chinese Ministry of Education is
organising the participation of a wider range of
provinces and municipalities in PISA 2015.
On the occasion of the 20th
anniversary of
OECD-China partnership, we fully recognise
the accomplishments achieved in co-operation
in the area of education, and we look forward
to continuing strengthening our pragmatic
collaboration in the future. We are also pleased
to share our experiences in education reforms
and development with a wider range of
countries in the world through the OECD.
30
OECD
CHINA

2006
Concept of
“harmonious
society” first
introduced.
China
surpasses
Japan to
hold the
world’s
largest
foreign
reserves.
China (Shanghai)
becomes a
Participant in
the 2009 round
of Programme
for International
Student
Assessment
(PISA) Survey.
Second Investment
Policy Review of
China published.
Publication of
Challenges for
China’s Public
Spending:
Towards Greater
Effectiveness
and Equity. First inclusion of
Chinese indicators
in the OECD best-
selling publication
the OECD Factbook.
China signs the
Charter of the
Generation IV
International
Forum, of which
the OECD
NEA acts as
the technical
secretariat.
2006 — OECD Deputy Secretary-General Kiyotaka
Akasaka receives a Chinese delegation led by
Wang Maolin, President of China’s International
Institute for Multinational Enterprises and
member of the Standing Committee of
the National People’s Congress, Paris
Catherine MANN
OECD Chief Economist Director of the OECD Economics Department
When I became the Chief Economist of the
OECD in October 2014, the overall global
economy was running in low gear, with weak
trade growth and sluggish business investment.
Given these circumstances, inequality is rising,
and future generations face challenging
prospects. To boost quality growth, with widely
shared and sustainable prosperity, we need
both supportive macroeconomic policy and
bolder structural actions in all economies.
Economic and social development have been at
the heart of OECD and China co-operation for
the last 20 years, and they will continue to shape
our growing engagement, as China moves closer
to being a “moderately prosperous society” by
2020. The OECD’s closer dialogue with Chinese
policymakers is reflected in the flagship OECD
publications, including the Economic Outlook and
the Going for Growth report. The 2015 Economic
Survey of China (the fourth such Survey of China)
benefits from close co-operation with China’s State
Information Centre, and offers recommendations
to the authorities 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. At the same time, China’s greater
engagement in our activities benefits the OECD
membership, as their economies interact with
China on many levels and through many channels.
Standing at this 20-year milestone, the
solid foundation of our mutual trust and
co-operation portends an even stronger
and deeper relationship between the OECD
membership and China, to the benefits of
all as we collectively address the evolving
challenges of the interconnected 21st
century.
31

2007
China becomes
a member of the
Financial Affairs
Task Force (FATF).
Conference
on “Review of
China’s National
Innovation
System: Domestic
Reform and
Global Challenges”
and high-level
international
business
symposium on
“China and RD
Globalisation:
Integration and
Mutual Benefits”,
organised in co-
operation with
Ministry of Science
and Technology.
MOU signed with
the Ministry of
Labour and Social
Security (now
Ministry of Human
Resources and
Social Security), to
initiate co-operation
through a series of
reports in the area
of occupational
pensions to improve
the regulatory
framework of
enterprise annuities
and encourage
the development
of private pension
system in China.
OECD
Environmental
Performance
Review of China
published,
conducted in co-
operation with
the (then) State
Environmental
Protection
Administration.
Opening of the
OECD Secretariat’s
contact point in
Beijing, hosted by
the Embassy of
the Kingdom of
the Netherlands
to China.
“Enhanced
Engagement”
decision opens a
new era in OECD’s
co-operation with
China and four other
Key Partners (Brazil,
India, Indonesia and
South Africa), with
a view to possible
membership.
First OECD
seminar in China
International Fair
for Investment
and Trade (CIFIT),
on “Measuring
FDI to promote
a harmonious
society”, organised
in co-operation
with MOFCOM.
China’s Property
Law adopted
after 14 years of
intense debates.
New Corporate
Income Tax
Law passed.
Labour Contract
Law adopted.
China releases
its first national
plan to address
climate change
and reduce
greenhouse
gas emissions.
China’s first ever
Anti-Monopoly
Law enacted.
Hu Jintao’s
“Scientific
Development
Concept” ratified
into the CPC’s
Constitution at the
17th
Party Congress.
2007 — Group meeting with
Vice Minister Liu He at the OECD, Paris
2007 — OECD Secretary-General Angel Gurría
receiving Vice Minister Liu He, Vice Chairman
of the Office of the Central Leading Group on
Financial and Economic Affairs, Paris
2007 — Chinese delegation led by Liu Xielin,
Professor of Chinese Academy of Science, and
Xue Lan, Professor of Tsinghua University,
in a meeting of the OECD Committee for
Scientific and Technological Policy, Paris
2007 — OECD
Secretary-General
Gurría meeting
with Vice Minister
of Commerce Yi
Xiaozhun, Paris
32
OECD
CHINA

Øyvind LONE
Former Chair of the
OECD Working Party on
Environmental Performance
of EPOC (1998-2012)
Irène HORS
Head of Strategic Partnerships
and New Initiatives Division, OECD
Global Relations Secretariat
Drago KOS
Chair of the OECD Working
Group on Bribery in International
Business Transactions
One of the major
achievements in
environmental co-operation
between the OECD and China
was the publication of the
Review (EPR) of China in
2007. It was the culmination
of 10 years of co-operation
and reinforced the trust and
mutual understanding that
had been developing over
that time. The significance
of a non-OECD country like
China opening itself to a
critical examination by other
countries in a potentially
sensitive policy area should
not be underestimated.
Building on this example,
the OECD has now carried
out EPRs of two other
major emerging economies,
South Africa and Brazil.
The review was prepared
using the same methodology
as for the reviews of OECD
countries and presented 51
recommendations. One of the
key recommendations was to
upgrade China’s Environment
Agency to a Ministry. This
was implemented soon after
the EPR was published,
signalling the higher priority
assigned to the environment
by the Chinese authorities.
In 2012, China presented a
report documenting the steps
it had taken to implement
the recommendations. The
OECD Working Party on
looks forward to conducting
a second EPR of China in
the not-too-distant future.
Between 2007 and 2013,
I served as OECD’s contact
point in Beijing. These six
years were an unforgettable
chapter in my life, as they
offered me the opportunity to
observe first-hand the Chinese
government’s unique approach
to steering the world’s second
largest economy and to grasp
its unwavering determination
to improve the lives of its
almost 1.4 billion citizens.
I personally witnessed
the growing co-operation
between China and the OECD,
and I can only say that this
progress would not have been
possible without the sustained
enthusiasm and support of
many Chinese colleagues
and friends in the Ministry of
Commerce and other partner
institutions. Many times did I
hear them praise the OECD,
its unique Committee-based
structure, its increasing
contribution to global
governance and its forward-
looking policy analysis on a
wide range of challenges that
are common to nations around
the world. I am honoured to
have been in the forefront when
we started collaboration with
important institutions such as
the Central Party School and
initiated collaboration with
the NDRC on the planning
process. Looking ahead, I
believe the MOU signed by
Secretary-General Gurría
with Minister of Commerce
Gao Hucheng will give a new
impetus to our collaboration,
ensuring its effectiveness
and reinforcing its enduring
impact over the years to come.
The Working Group on Bribery
in International Business
Transactions highly values its
strong collaboration with China.
China began participating in
meetings of the Working Group
in 2007 and our partnership
has grown steadily ever since.
In recent years, China has
made progress in combating
bribery in international
business transactions. This
progress most notably
includes the criminalisation
of foreign bribery in May 2011
and China’s commitments
under the 2013-2014 G20
Anti-Corruption Action Plan,
which include ongoing active
engagement with the Working
Group, ensuring the high
standards of criminalisation
and enforcement of the OECD
Convention on Combating
Bribery of Foreign Public
Officials in International
Business Transactions, and
exploring adherence to the
Convention. In August 2014,
our partnership culminated
in a highly successful joint
OECD-China workshop on
combating transnational
business bribery held in Beijing.
I look forward to building on
this strong momentum to
the mutual benefit of China,
the OECD, the Working
Group and the fight against
transnational business bribery.
33

2007
Aart JACOBI
Ambassador of the Kingdom of the Netherlands
to the People’s Republic of China
The Netherlands was one of the
founding members of the OECD
in 1961. Both the collaborative
approach of the OECD as well as
its focus on a broad approach
of sustainable development are
important to the Dutch government.
I am convinced that, against a
background of development and
challenges worldwide, sustainable
development will become an
even more important and
binding topic in the collaboration
between China, the OECD and
the Netherlands in the future.
Also in the bilateral relationship
between the Netherlands and China,
the OECD’s work is relevant. For
example, Dutch businesses here
are expected to comply with the
OECD Guidelines for multinational
enterprises. Dutch businesses
offer innovative approaches and
technologies that support greener
growth, while providing a safe and
healthy working environment.
Furthermore, the Netherlands
embassy literally provides a home
for the OECD by housing the OECD
representative office in the embassy
building. This illustrates our close
relationship – and makes our
contact very straightforward.
Building on the past twenty years of
collaboration between the OECD and
China, I stand ready to support it in the
future in order to reach tangible results
to the benefit of all parties involved.
2007 — Tsinghua University
professor Xue Lan speaking at the
High-Level International Business
Symposium on “China and
RD Globalisation: Integration
and Mutual Benefits”, Beijing
2007 — OECD Deputy Secretary-General
and Chief Economist Pier Carlo Padoan in
a bilateral meeting with Vice Minister of
Science and Technology Li Xueyong, Beijing
2007 — Vice Minister Li Xueyong speaking
at the conference on “Review of China’s
National Innovation System: Domestic
Reform and Global Integration”, Beijing
34
OECD
CHINA

2008 — OECD Secretary-General Angel
Gurría receiving Vice Minister of Finance
Li Yong, at the OECD Economic Policy
Committee Working Party 3, Paris
OECD Secretary-
General Angel
Gurría makes
an official visit
to China, to
attend the China
Development
Forum.
Third
Investment
Policy Review
of China
published.
Innovation Policy Review of
China published after three
years of preparation, conducted
at the request of Ministry of
Science and Technology.
State Council
undergoes a
second round of
organisational
reform to
continue fine-
tuning the basic
administrative
structure.
Hu Jintao
re-elected as
President of
the People’s
Republic of
China, and
Wen Jiabao,
the Prime
Minister.
Beijing Summer
Olympic Games.
China attends
the first G20
leaders’ summit in
Washington DC.
State Council
announces a
4-trillion yuan
stimulus package,
as an attempt
to minimise the
impact of the
global financial
crisis on the
Chinese economy.
30th
anniversary
of China’s
“reform and
opening-
up” process,
starting from the
Third Plenary
Session of the
11th
CPC Central
Committee
in 1978.
2008 — OECD Secretary-General
Angel Gurría receiving Vice Minister of
Environmental Protection Zhou Jian, Paris
2008 — OECD Secretary-General Angel Gurría in a
bilateral meeting with Minister of Commerce Chen
Deming, at the China Development Forum, Beijing
35

XUE Lan
Professor and Dean of School of Public Policy
Management, Tsinghua University, China
I am very fortunate to have been involved in
working with the OECD since the early days of
its collaboration with China. In 1997, a friend in
the Ministry of Science and Technology (MOST),
Feng Xuan, sent me a report published by the
OECD in 1996, which was entitled “Knowledge-
Based Economy”. We were excited by the
new ideas presented in the report and began
to translate it into Chinese very quickly. In
addition, under the leadership of Feng Zhijun,
President of the Chinese Association of Science
and ST policy, a few of us worked together
and published an edited book Knowledge
Economy and China’s Development. Little did
we realise back then that these two publications
would trigger a wave of “knowledge economy
fever” in China that would later have a
tremendous impact on China’s development
philosophy around the turn of the century.
Another project I participated in working with
the OECD was the review of China’s innovation
system from 2006-2008. Entrusted by the
Ministry of Science and Technology of China,
I served as the convener on the Chinese side,
along with Jean Guinet and his team on
the OECD side. Activities of the joint OECD-
MOST taskforce involved many innovation
scholars in both China and OECD countries.
A major conference on the “Review of China’s
National Innovation System: Domestic
Challenges and Global Integration”, and a
high-level international business symposium
on “China and RD Globalisation: Integration
and Mutual benefits” were held in Beijing in
August 2007. The final report OECD Reviews
of Innovation Policy: China was published in
2008 and translated into Chinese in 2012,
and was widely recognised as a standard
reference on China’s innovation system.
I have also been involved in many other
collaboration activities between the OECD
and China and learned a great deal from the
innovative spirit, dedicated professionalism
and multilateral consultation process
that are signatures of OECD’s work. In
recent years, the OECD has increased its
collaboration with China and other non-
OECD countries. Its work on these countries
has also expanded to include issues other
than economic development, such as social
development and governance. In many ways,
OECD’s influence has gone far beyond the
national borders of its member countries.
It has become a think tank of the world.
2008
2008 — OECD Deputy Secretary-General
Thelma Askey receiving a group of Chinese
officials on training at the OECD, Paris
2008 — China invited to the steering
committee meeting of the Heiligendamm
Dialogue Process, Paris
36
OECD
CHINA

OECD-DAC and
the International
Poverty Reduction
Centre in China
(IPRCC) jointly
establish China-
DAC Study Group.
Rural Policy
Review of China
published,
prepared jointly
with DRC.
The Global Forum
on Transparency
and Exchange
of Information
for Tax Purposes
is established,
laying a firmer
basis for an active
involvement
of all Key
Partners in the
OECD’s work on
taxation. China,
through its State
Administration of
Taxation, becomes
a member of the
Global Forum
as well as Vice
Chair of its
Steering Group.
The Regulatory
Reform Review of
China: Defining the
Boundary between
the Market and the
State published.
Review conducted
in collaboration
with the NDRC.
China joins the
Steering Group of
the CSTP project
on governance
for international
co-operation on
science, technology
and innovation for
global challenges.
Knowledge
partnership
established between
the OECD Forum
and the China
Development
Research
Foundation (CDRF).
Seminar on
response to the crisis
co-organised with
MOFCOM, in Beijing.
Amended law
on earthquake
prevention and
disaster relief
enters into force,
one year after the
deadly Wenchuan
earthquake.
Inaugural
BRIC Summit
takes place in
Yekaterinburg,
Russia.
60th
anniversary
of the foundation
of the People’s
Republic of China.
China leapfrogs
past the US as the
world’s largest
automobile
market, with
13.5 million
vehicles sold in
China in 2009.
China becomes
the world’s biggest
goods exporter.
The year ends
with the Chinese
economy
regaining lost
momentum,
rebounding at
8.7% growth rate
well above the
8% bottom line.
2009 — Press Conference of the
Third International Tax Dialogue
Global Conference, Beijing,
2009 — Vice Minister of Commerce
Yi Xiaozhun speaking at the OECD
Ministerial Council Meeting, Paris
37

OECD-Chinarelations
Joint Statement
signed between
China’s National
Energy Administration
and IEA, reaffirming
the value and direction
of co-operation.
First China-DAC Study Group
conference on development
partnerships held in Beijing.
2009 — China participating in the OECD Global
Forum on Tax Treaties and Transfer Pricing, Paris
LU Mai
Secretary-General of the China
Development Research Foundation
As an intergovernmental organisation, the
OECD has been well known as one of the world’s
most influential policy research institutions.
Methodologically, the OECD focuses on
global comparative analyses and empirical
studies. It aims to assist governments around
the world in improving policy formulation
and strengthening international policy
co-ordination, so that its member states can
share experiences and seek for solutions to
common issues. The OECD has acted as a
valuable reference for China ‘in various fields,
including economic development, fiscal and
tax reform, technical innovation, education,
corporate governance, and anti-corruption.
The China Development Research Foundation
(CDRF) was fortunate to establish a connection
and initiate co-operation with the OECD
long ago. Since 2002, the OECD has had two
Secretaries-General that participated in the
annual China Development Forum (CDF)
every year, bringing us the latest research
findings of the OECD. The OECD’s expertise
has further benefitted our research programs
regarding the safety of school buildings in
earthquakes, early childhood development,
regional development and urbanisation.
The Chinese government plans to sign a two-
year work plan with the OECD, which will
promote the co-operation between the two
sides even further. This will contribute directly
to improving China’s governance system and
enhancing its capacity. Moreover, as China
becomes increasingly involved in activities of
international organisations, it will share its
research and experience and have its voice
and expectations heard throughout the world.
2009 — OECD Secretary-General Angel
Gurría receiving Cheng Siwei, Vice
Chairman of the Standing Committee of
the 10th
National People’s Congress, Paris
2009
38
OECD
CHINA

ZUO Changsheng
Director-General of the
International Poverty
Reduction Centre in China
Erik SOLHEIM
UNEP’s Special Envoy for Environment,
Conflict and Disaster Chair of the
Since 2009, the
China-DAC Study
Group has played
an important role in
sharing knowledge
and experiences on
development and
poverty reduction,
promoting exchange
between China and
DAC members on
improving the quality
of development aid. We
would like to continue
improving the research
quality of the Study
Group in the future.
China’s rapid development over
the past decades is unprecedented
in human history. China has
become the biggest exporter
in the world and the largest
economy by some measures. Six
hundred million people have been
brought out of extreme poverty
as a result. Economic power and
recent experiences as a transition
economy makes China a hugely
important development co-
operation partner. China is now
one of the most important global
development actors and a big
provider of development assistance.
Co-operation between China
and the OECD Development
Assistance Committee has gained
momentum in the last few years.
China regularly participates in
high level meetings. Chinese
officials have been observers in
peer reviews of Switzerland and
the United Kingdom’s development
co-operation programmes. Joint
analytical work on aid for trade,
statistics, South-South co-operation
and policies for poverty reduction
is taking place in the China-DAC
study group and other platforms for
sharing knowledge and experience.
Global development co-operation
improves policies for poverty
eradication and development.
We can all learn from each other
and do more of what works on
the ground. Valuable lessons
can be learned from Chinese
companies manufacturing in
Africa, which are helping to
provide jobs for some of the one
million Africans joining the labour
market each month. We can be
inspired by Chinese infrastructure
investments in railroads that link
countries across Africa and in
dams and wind farms all over
the world. The members of the
OECD Development Assistance
Committee have good systems
for effective development co-
operation and workable standards
for businesses operating in
developing countries. The OECD
provides statistical expertise
and analytical work to improve
policies for poverty reduction
and development. I look forward
to even greater collaboration
and hope, in this 20th
year of
OECD-China co-operation, that
China will consider becoming a
Participant in the Development
Assistance Committee.
2009 — First China-DAC Study Group
conference on “Development Partnerships
for Growth and Poverty Reduction”, Beijing
2009 — First meeting of the China-
DAC Study Group, Beijing
39

2010
2010 — China-OECD Roundtable on Innovation Strategy, Beijing
2010 — President of the China
Investment Corporation Gao Xiqing
speaking at the OECD Forum, Paris
Second OECD
Economic Survey
of China published,
prepared in
partnership with
the NDRC’s State
Information Centre.
Second China-
DAC Study Group
conference on
agriculture, food
security and rural
development
held in Bamako.
Release of OECD
Vocational
Education and
Training Review
of China: Learning
for Jobs.
Third China-DAC
Study Group
conference on
infrastructure
held in Beijing.
Release of joint
OECD-CDRF
report Trends in
Urbanisation and
Urban Policies in
OECD Countries:
What Lessons
for China?
Technical
seminar on
bribery of
foreign public
officials and
the OECD
Anti-Bribery
Convention
jointly
organised with
Ministry of
Supervision,
in Beijing.
China-ASEAN
Free Trade Area
(FTA) comes into
effect. It is the
world’s largest
FTA in terms
of population
and the third
largest in terms
of nominal GDP.
National Energy
Commission
established to co-
ordinate overall
energy policies
for China.
First National
Census on Pollution
Sources completed.
China becomes
the third largest
shareholder in
the World Bank.
Medium-to-Long-
Term Education
Reform and
Development
Plan 2010-2020
announced.
State Council
issues 36
guidelines for
supporting and
guiding non-
public economic
development.
Shanghai
World Expo.
China
surpasses
Japan as
the world’s
second largest
economy.
40
OECD
CHINA

OECD-China: 20 years of partnership

OECD-China: 20 years of partnership

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