Shanghai Improves Legal System to Serve the Economy

A transparent legal framework is taking shape in Shanghai, China's economic and financial center, to promote the growth of a market economy, according to local lawmakers.

"Shanghai needs a legal system to safeguard its reform and development," said Chen Tiedi, chairwoman of the Standing Committee of the Shanghai Municipal People's Congress (MPC). "And the legislation work should serve economic growth as the core of development."

She noted a good legal system should maintain a fair, just, and open market, regulate the system of socialist market conomy, enhance urban development and management, and sharpen the city's competitive edge.

Following these principles, the Shanghai MPC has formulated or amended 22 laws and regulations on supervision of product quality, traffic management, encouragement of innovation, and social security since 1998, Chen said.

Zhang Yan, a member of the Shanghai MPC, said that in formulating economic laws, the local legislature has considered the requirements of regulating economic activities and protection of legitimate rights and interests of all parties, and tried to reduce intervention of the government in economic activities.

The Shanghai Regulation on Brokers, which became effective last May, has facilitated those who are qualified to become licensed brokers, which previously was rather difficult due to red-tape and heavy restrictions by the government.

The legislation also provides protection for the brokers' rights and interests.

The regulation allows a brokers association to replace the government in the management of the profession, which is responsible for examining brokers' qualifications, issuing certificates, protecting brokers' rights, training, and setting up professional and ethical standards.

Feng Liangtu, vice president of the Shanghai Association of Licensed Brokers, said that about 6,000 brokers have registered at the association only six months after the association was established, and the number is expected to reach 20,000 at the end of this year.

Statistics show that in the first half of this year, the value of property rights brokerage amounted to 62.6 billion yuan, up 175 percent from that of the same period of last year.






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