China`s economy is in "chaos" and plagued by rampant counterfeiting, fraud, securities manipulation and protectionism, the government admitted on Tuesday, hours after the country joined the World Trade Organisation (WTO). Authorities had made great efforts to tackle the problems but despite some successes, "it is clear that chaos still exists in certain areas and industries", said a report by the State Council, China`s cabinet.
Bringing order to the economy had become an urgent task, Minister for the State Economic and Trade Commission, Li Rongrong told a news conference to launch the report.
WTO membership will not only require China to lower tariffs and lift investment restrictions but also to play by global trade rules, such as protecting intellectual copyright. Foreign companies have long complained about insufficient efforts to stop piracy and copyright violations.
The financial market is also in dire need of regulation, the report said. Measures need to be carried out to outlaw illegal financial organizations and ban financial fraud, security market manipulation, black market deals and debt evasion.
Embezzlement of public funds and fraudulent accounting also persist, the report said. Bureau Report