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分税制 Tax Sharing System (来源:英语杂志 http://www.EnglishCN.com)

A policy arrangement between the central government and local governments on collecting and spending of different taxes.

Popular in many market economies, the

三来一补企业 Enterprises of Three Import and Compensation Trade

A shorthand for enterprises that process imported raw materials, manufacture products according to imported samples, assemble imported parts and those that repay loans for imported equipments and technologies with products. Emerging in the coastal area in the late 1980s, all these enterprises export their products abroad. By taking the processing fee, they become the major force in the processing trade, which forms a big proportion in the country's total trade volume. They played a key role in fostering the development of China's trade.

利改税 Tax for Profits

A reform measure requiring State-owned enterprises (SOEs) to pay taxes instead of submitting their profits to the administration.

The State Council introduced this reform in 1983 by levying a 55 percent income tax on medium and large SOEs rather than taking their profits. Other measures soon followed, creating a complete tax scheme to encourage competition.

This was one of the earliest steps taken to reform SOEs and establish a national tax system, showing that a mature market might be an effective way to improve industrial efficiency.

兴边富民行动 Program to Revitalize Border Areas and Enrich Residents' Lives

A State campaign to boost social and economic development of regions along the land borderline. In 1998, the State Ethnic Affairs Commission started the program to improve the lives of the ethnic people who comprise 48 percent of the 21 million residents in 135 counties along the borderline.www.rr365.com

Favorable policies and direct financial investment were granted to improve the infrastructure and public facilities, develop education, promote literacy, boost trade and nurture industries. By 2005, the government spent at least 15 billion yuan in the border areas through the program.

绿色信贷 Green Credit

A policy to encourage the businesses to observe the rules and regulations about environmental protection with the leverage of bank credits. Initiated by the former State Environmental Protection Administration, currently the Ministry of Environmental Protection, and China Banking Regulatory Commission in July, 2007, the policy requires the commercial banks, when reviewing the application for bank credits, to consider whether the applying businesses have followed the environmental rules. The violators have less chance to get the approval, while the green businesses would get favorable treatment in this regard. The policy marks a start for the central government to step up the country's environmental protection through market-oriented means.

廉租房 Low-rent Housing

State-owned houses are rented out at modest prices to low-income families who do not have proper housing in the cities.

In 1998, the ce

In each city, the standards for a family's per capita living floor space and minimum income are set by the local governments. Families whose living space and income are both below the standards are given low-rent houses. If the governments do not have enough houses, they offer financial subsidy to these families. The rent is set at about 5 percent of the family's income.

家庭联产承包责任制 Household Contract Responsibility System

The system allows farming households to manage agricultural production on their own initiatives while the farmland remains in the ownership of the rural collective. Started in Xiaogang village in Anhui province in the late 1970s, the system enables farmers to use land through long-term contracts and keep the produce after paying taxes. It raised productivity and increased agricultural output, both of which were preconditions for nurturing the economic takeoff, and comprehensive industrialization and urbanization. The start of this system is widely accepted as a milestone in the economic opening up.

 
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