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CPPCC Members Call for Credit System to Drive Economic Growth    
   MON, JAN 28, 2002    

The establishment of a credit system is essential for the sound development of China's market economy, said members attending the fifth session of the Ninth Beijing Municipal Committee of the Chinese People's Political Consultative Conference (CPPCC) over the weekend.

The credit issue is part of the aftermath of the long-term planned economy, said Wang Angeng, chief engineer of China International Trust and Investment Corporation. "Under the planned economy, the government used to back all commercial ventures of enterprises and individuals," he said, "The individuals did not have to have their own credit standing."

Statistics show that 80 percent of business transactions in China rely on cash settlement, compared to only 10 percent in developed countries.

"The awareness of the credit issue, however, shows that China's market economy is becoming more mature," said Li Qingyun, a professor of economics at Beijing University.

The issue has gained the attention of the government since China's entry to the World Trade Organization, said Ji Shiying, head of a Beijing-based association for entrepreneurs in science and technology sectors.

The Beijing municipal government has made straightening out the order of the market economy its top priority this year.

The municipal administration of industry and commerce recently set up an alarm system that can detect any corporate behavior in violation of relevant laws and regulations.

The Zhongguancun high-tech industrial park, known as Beijing's silicon valley, has adopted a credit rating system for its enterprises.

"The establishment of the credit system relies on the joint efforts of enterprises and the market itself, rather than the government alone," said Zhou Jinfeng, vice-president of the Beijing Federation of Industry and Commerce.





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