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Extra info for European Yearbook of International Economic Law 2012
Trainings on doing business in China recall that in China the signature of a contract marks the beginning of the real negotiations: in other words, the contract sets out the shared objectives of the parties and lays down the frame of reference for their relationship, but does not define in precise detail the rights and obligations of the parties, which can change according to circumstances. 42 More generally, however, and perhaps more fundamentally, this also begs the question of what ‘rule of law’ means in China.
From a more structural point of view, important elements of China’s trade and industrial policies betray a mercantilist orientation, with more than a trace of Communist belief in planned industrialisation at all cost. The process of privatisation of state-owned enterprises has virtually halted, replaced by a process of consolidation and efficiency-seeking that sees SOEs not as burdensome relics of the centrally planned economy, whose main residual value was the employment they provided, but rather as the core of new national champions, to be provided with the resources (financial, human and technological) and the know-how to succeed both in China and eventually abroad.
Finally, this view holds that there is still much to learn from the West, but less than one may think, as shown by the fact that the much vaunted western financial system not only does not work well when exported to other parts of the world, but is capable of sudden collapse on its home turf. Given this worldview, the real concerns of Chinese economic policy makers have to do primarily with the efficiency of the economy and its autonomy: the debate about re-balancing the Chinese economy away from exports as the main motor of economic growth and towards domestic consumption is not new, but only with the recent global financial and economic crisis it seems to have acquired real political urgency in Beijing,22 as outlined in the 12th Five-Year Plan, which puts 22 Indications of increased focus include: (1) the Health Reform plan issued in January 2009 with plans to spend RMB 850 billion by 2011 to provide universal medical service to the whole population and make health care more accessible and affordable.