Endnotes

¹ Even though the figure does not suffice to prove that the quality of PRC’s regulatory framework has worsened, it signifies that the PRC government lags behind other countries in improving regulatory quality.

² The 205 countries and regions include 86 for which relevant data is missing. See (The World Bank, 2006).

³ At the end of June 2006, US$1 = 8 yuan.

⁴ For details about the system of evaluating local leaders in PRC, see (Zhong, 2003; Edin, 2003).

⁵ These six sectors are: 1) Industries involving “national security, public safety, macro-economic management, environmental protection, public health, personal safety and property protection”; 2) Industries involving scarce natural resources exploitation and public resources allocation; 3) Professions involving public interest and service provision to public (such as legal and accounting professions); 4) Sale of equipment, facilities, products involving public safety, public health, and personal safety and property; 5) Restricted industries; 6) Other industries covered by other laws promulgated by the National People’s Congress and its Standing Committee and administrative decrees by State Council.

⁶ In recent years, the PRC government partially centralized some administrative authority from subprovincial to provincial governments. The control of bureaucracies of administrative regulation, financial regulation and commodities management such as the bureaus for industry and commerce, quality technology supervision bureaus, pharmaceutical supervision bureaus, and securities supervision commissions have been removed from sub-provincial governments. These bureaus are made to report to superior functional bureaucracies which, in turn, are responsible to provincial-level governments. For detail, see Mertha (2005), pp.791-810; Heilmann (2005), pp.643-668.

⁷ In 2003 administrative reform and merging of central ministries, price control bureau was put under National Development and Reform Commission. The details of the directive can be found in: (Guowuyuan, 2005).

⁸ For details about PRC bureaucrats’ coping strategies in dealing with close monitoring, see (Huang, 2002).

⁹ For details about how private entrepreneurs influenced local governments and their institutional positions in the policy process, see (Saito, 2003; Dickson, 2003).

¹⁰ In reality, this provision can be applied in different ways. In 2005, the Standing Committee of NPC received a petition from a peasant in Hebei province protesting that the provincial regulations on land management violated the national Law of Land Management. Before the State Committee of NPC took actions, Hebei provincial people’s congresses amended the provincial regulations to keep them consistent with the Law. For detail, see (Yang, 2005).

¹¹ A more comprehensive evaluation of the Law of Legislation can be found in (Zou, 2004: pp.50-53).

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