Legislators are planning laws on finance, taxation, budgeting and investment in a bid to better regulate the country's economic development and refine its macroeconomic controls.

"The rapid pace of economic development in the country demands more specified laws and regulations," said An Jian, deputy director of the Legal Affairs Commission of the National People's Congress (NPC), the top legislature.

He made these comments at the International Symposium on China's Rule of Law yesterday in Beijing.

"As we continue to improve the country's social legislation, we still place economic legislation at the top of our agenda to provide a solid legal foundation for a healthy economy," he said.

In a report detailing the legislative plan for the next 10 years, the commission said China would gradually enact laws governing foreign exchange, futures trading and financing and leasing.

Better financial legislation would help diversify the financial products available, optimize the distribution of financial resources, strengthen financial supervision and prevent financial risks, the report said.

A securities law is also on the waiting list. The commission said a law is needed to maintain a balance between promoting the development of the securities market and preventing risk. Protecting investors' rights and strengthening penalties for market frauds are other issues to be addressed.

In addition, the commission said it is necessary to enact a basic law on tax collection. Legislation should also be drawn up to address as-yet unregulated taxes, such as value-added and consumption taxes.

"A simplified taxation system, bigger tax base, lower tax rates and stricter tax collections" are the basic principles for any form of tax legislation.

The report also mentioned investment laws, saying it was necessary to have either individual laws or stipulations added to existing ones to define investors' rights and obligations, to reform the investment management system and to check disorderly competition.

The revision of the Budget Law, the draft of the fiscal transfer payment law, the law on State-owned assets, the anti-monopoly law and the laws on telecommunications, post and railways should also be finished in the next 10 years, according to the commission.

The country entered a period of unprecedented legislative action on the economy starting in 1992, when the authorities officially decided to establish a socialist market economy.

Official figures show that from 1992 to 2003, the NPC and its Standing Committee approved 109 laws and legal decisions relating to economic issues, accounting for 45 percent of the 242 laws and decisions passed during the period.

"It (the legislative pace) was very fast, and will remain fast," said Bian Yaowu, former deputy director of the NPC's Legal Affairs Commission in charge of economic legislation.

He added that drafting legislation was not a one-off solution, but part of a process requiring continuous adaptation as the country implemented more features of a market economy.

Arthur Mitchell, general counsel of the Asian Development Bank, which organized the two-day symposium, said developing the legal system was a critical part of efforts to reform the market and drive economic growth.

"But faced with such a big and rapidly growing economy, the further development of economic laws and the regulatory system is still necessary," he said.

(China Daily May 15, 2007)