China’s local governments urged to use legislation ‘propeller’ to power economy

China’s local governments should use their legislative power to support private companies, recruit talent and encourage technological innovation to develop their economies, Communist Party mouthpiece People’s Daily said in a commentary on Tuesday.

“The reason local legislation can serve as a propeller in economic and social development is that it establishes a stable and open system, where all types of market entities can operate within the framework of the rule of law,” the article said.

The commentary praised the Hangzhou government in Zhejiang province for legislation on the Hangzhou West Science and Technology Innovation Corridor, which it said focused on serving talent and helping industries grow.

As a result, the corridor, which stretches 39km (24 miles), has seen the birth of more than 140,000 companies, including the headquarters of industry giants such as Alibaba, which owns the South China Morning Post, and CETHIK Group, a leading enterprise in the field of the Internet of Things.

Chinese cities were given more power after the legislation on drafting laws was modified in 2015, expanding its coverage from 49 large cities to 293 cities and 30 autonomous prefectures. A government memo at the time said the change was to ensure these cities could draft local laws on “issues concerning urban and rural development, environmental protection and heritage preservation”.

People’s Daily said that over a decade, creative legislation tailored to the realities of local cities had played a crucial role in reaching the public, and cities had shifted from relying on direct orders from above to using the law when dealing with economic issues.

“Whether local legislation can secure long-term benefits depends on whether it adapts to the needs of economic and social developments,” it said.

  

​Read More