The index was created on the basis of five aspects: the relationship between local governments and markets; the development of non-state sectors; product markets; production factors markets; intermediaries and business legal environments.

The top ten ranking regions were Guangdong, Zhejiang, Fujian, Jiangsu, Shandong, Shanghai, Tianjin, Hainan, Anhui and Liaoning.

Among them, Guangdong, Zhejiang, Fujian, Jiangsu and Shandong have confirmed their leading positions since 1999, and Shanghai enjoyed the highest boost. The average score for the top ten provinces was 7.30 points, 0.27 points higher than for the previous year.

Generally, rankings didn’t change too much. Beijing climbed five places in 2000. Shanghai and Liaoning rose two places, while Hunan and Gansu fell two places.

With higher scores in the majority of provinces, market openness has improved in most regions.

The provinces ranked 11 to 20 were Hebei, Chongqing, Guangxi, Beijing, Sichuan, Henan, Hubei, Jilin, Hunan, Jiangxi. The average score for the ten provinces and autonomous regions was 5.78 points, 0.13 points higher than for the previous year. These regions achieved lower growth compared with provinces in east China, and their market openness showed less progress.

The score on relationships between local governments and markets was lower than compared with 1999, but other aspects received higher scores. The non-state sector has contributed greatly to market openness.

Comparatively, provinces in central China and west China have lower levels of market openness. A gap between east and west China still exists in non-state sectors and markets of essential production factors. West China has achieved higher levels of progress in non-state sectors and product markets, but remains sluggish in the production factors market. Central China has a more open market than west China, but still needs to catch-up with east China.

(China.org.cn by Tang Fuchun December 17, 2002)