China Sticks by its Tough Policies

Jiang Enzhu, spokesman of China's National People's Congress (NPC) session said on Tuesday at a press conference that the new economic policy is to regulate the business behavior in China more normative, foreign companies should adapt to these rules.

China began to implement reducing export tax rebates, much strict sewage management, the new labor law and some other economic policies over the past year, trying to gradually diminish its reliance on low-cost manufacturing. Although the manufacturing promoted economic development in the past, it created a serious impact on the environment.

South China's industrial hinterland exporters warned in recent weeks that the new policies, as well as the appreciation of Yuan increased the costs of exports, which could lead to thousands of small export companies close down or shifted to cheaper areas.

"Although some Foreign-funded enterprises and investors could not adapt to the above adjustment in China, the majority expressed understanding." Jiang said. He believes that the adjusted policies are beneficial to foreign-invested enterprises to improve the competitiveness and healthy development in the long term.

To protect the employees better as well as control the most serious pollution industry is the key for Chinese President Hu Jintao to promote a "harmonious society".