Summary Report of the Terminal Evaluation
1. Outline of the ProjectCountry: People's Republic of China Project Title: Economic Legal Infrastructure(China)Development ProjectType of assistance: Technical Cooperation
Sector: Legal and judicial development
Project
Division in Charge: JICA China officeTotal Cost: 509 million
1)
Implementing Agency: Ministry ofCommerce (MOFCOM)
2)
Partner Organizations: Legislative
Affairs Commission of the National People's(R/D): November 18, Congress (NPC) Standing Committee, NPC
2004 - November 17, Financial and Economic Affairs Committee,
2007
Supreme People's Court, State-owned Assets
Supervision and Administration Commission,
Cooperation
State Administration for Industry &PeriodCommerce (SAIC), Securities Regulatory
Commission, etc.
Supporting Organizations in Japan: Ministry(Extension): Novemberof Economy Trade and Industry(METI),
18, 2007 - November
Japan Fair Trade Commission, Ministry of
17, 2009
Justice
Other related cooperation:(F/U) :(E/N)（No charge）
1-1 Background and Outline of the Project
Based on the record of discussion ("R/D") agreed by Chinese and Japanese sides on
November18, 2004, JICA implemented the Economic Legal Infrastructure Development
Project (“the Project”) with MOFCOM as an implementing organization and the
Financial and Economic Affairs Committee of NPC, the Legislative Affairs
Commission of the NPC Standing Committee, and the Legislative Affairs Office of theState Council as supporting organizations for three years from November in 2004 toNovember in 2007. The purpose of the Project was to support revision of the company
Law, development of the Anti-monopoly Law and laws on markets and distribution,
which are urgent along with the development of market economy in China, and humanresources development in legislative and enforcement organizations.
Although the evaluation team in November 2007 regarded then results highly, it
recommended that the Project should be extended for the Anti-monopoly Law
sub-project and the Laws on market and distribution sub-project. It was because that theanti-monopoly sub-project could not support the enforcement system as originallyscheduled due to delays in the law development and that there emerged new challenges
relating the Laws on market and distribution as the Chinese market system developed.
After discussion between related organizations of Japan and China, extension R/D wasconcluded on May 14, 2008 to extend the Project until November 17, 2009. An external
consultant conducted the evaluation on the extension period in November 2009.

1-2 Project Overview
The Project aimed to support revision of the Company Law, development of theAnti-monopoly Law and as laws on market and distribution circulation and humanresources development in legislative and enforcement organizations. It carried out
activities such as training in Japan and seminar in China for five years from November
18, 2004 to November 17, 2009.
(1) Overall goal
Companies, an important player in Chinese economy, enjoy opportunities of startingand developing their business in a sound economic order; far and free competition ofcompanies is promoted; and thereby, consumers’ interests are protected and national
economy’s sound and sustainable development is realized. Besides, exchange andmutual understanding are promoted between experts and practitioners of economic law
and company law in Japan and China.
(2) Project purposes
The capacities of officers in legislative organizations and law enforcement
organizations in China are developed and the establishment of transparent economic
law and company law systems is promoted, which utilize knowledge of Japan andadvance harmonization with international rules.
(3) Outputs
Sub-project 1: Development of the Company Law[Output 1-1] Legislative officers understand the following points; the bill using thatknowledge is drafted and enacted.
1） Promoting the investment and starting a business
2） Sound management of company (standardization of establishment of company
and corporate governance)
3） Sound mechanism to protect the legitimate rights and interests of stockholders
and creditors
4） Legal consistency between Company Law and related laws (e.g., Securities
Law, laws on three kinds of enterprises with foreign investment, Law onEnterprise Bankruptcy, M&A related laws, Measures for the State-owned
Assets Management.)[Output 1-2] Enterprise registration system and its operational framework areestablished in following manners :1） The establishment of regulation on enterprise registration is promoted based on
knowledge of Japan in accordance with the purpose of the revised Company
Law.
2） The development of training materials on enterprise registration practice arepromoted based on knowledge of Japan.
[Output 1-3] Development of enforcement system for conflict resolution andagainst violations based on the legislative purpose of the revised Company Law.
Sub-project 2: Legislation of the Anti-monopoly Law[Output 2-1] Legislative officers understand the following points and, utilizing thatknowledge, the Anti-monopoly Law is drafted and enacted.
1） Prevention of abuse of dominant market position
2） Prevention of merges and acquisitions which lead to excessive concentration of
economic power
3） Harmonization with the Price Law and the AntiUnfair Competition Law

4） Independence of enforcement system of the Anti-monopoly Law
5） Non-discriminatory treatment of domestic and foreign capital[Output 2-2] Enforcement system is established based on the legislative purpose of
the Anti-monopoly Law and the following points and the Anti-monopoly Law istransparently, fairly and effectively enforced.
1） Coordination of the Anti-monopoly Law enforcement ministries and ministries
supervising specific industry
2） Minimization of the scope of exclusion from application of the Anti-monopoly
Law3） Development and disclosure of related regulations and guidelines
Sub-project 3 Joint study on laws on market and distribution[Output 3] Knowledge of legislative officers about laws and regulations on markets
and distributions is accumulated.
(4) Inputs (as of November 2009)
Japan:
Short-term experts (advisors and speakers): 92 persons
Consultants for project management since May 2005
Trainees: 248 persons
Administrative cost for the symposium in China
China:Counterparts: 248 trainees to Japan
Seminar participants: 394 persons in total
Symposium participants: 317 persons in total
Office for Japanese experts
Arrangement of venue for seminar
2. Evaluation Team
(1) Terminal evaluation (November 2007)
Japanese Evaluation Team
1）
Leader: Masato Watanabe, Deputy Representative, JICA China Office2）
Anti-monopoly Law: Ryohei Tamura, Deputy Director, International
Affairs Division, Japan Fair Trade Commission
3）
Evaluation planning: Akira Okubo, Representative, JICA China
Office4）
Economic law / evaluation analysis: Eri Habu, Associate professor,
Department of Economics, Graduate School of Economics of Yamaguchi
Members University
Chinese Evaluation Team
1)
Leader: Wu Zhen Guo, Deputy Director General, Department of Treaty& Law, MOFCOM
2)
Deputy leader: Feng Yan, Division Director, Department of Treaty &Law, MOFCOM
3)
Evaluation planning: Zhao Li Li, Anti-monopoly Law Office,Department of Treaty & Law, MOFCOM(2) Terminal Evaluation on extension period (November 2009)
Japanese Evaluation Team1） Leader: Michiyo Hamada, Commissioner, Japan Fair Trade Commission2） Anti-monopoly Law (enforcement and guidelines): Ryohei Tamura,
Deputy Director, International Affairs Division, Japan Fair Trade
Commission3） Anti-monopoly Law (curriculum on training and seminar): Toshiyuki
Igarashi, International Affairs Division, Japan Fair Trade Commission4） Economic Law / evaluation analysis: Eri Habu, Associate professor,
Department of Economics, Graduate School of Economics of Yamaguchi
University
November 18 - December 1, 2007
Periods November 4 - November 13, 2009 (Extension Type: Terminal Evaluation
Period)3. Summary Results of Evaluation
3-1 Achievement of Outputs
The actual number of Japanese experts, Chinese counterparts and Trainees in Japan
were more than that of the original plan so that more outputs were produced than expectedin the Project Design Matrix (PDM).
Legislation of the anti-monopoly Law delayed than the original plan and it waspromulgated in August, 2007 and enforced in August, 2008. Deliberation of the NPC
Standing Committee delayed almost one year, so the output 2 such as “Recommendation
on organization of development of the Anti-monopoly Law enforcement organizations”
and “Identification and recommendation on challenges in enforcement of theAnti-monopoly Law” were expected to achieve in the extention period. The extended
Project assisted in establishment of an enforcement system of the Anti-monopoly Law andformulation of guidelines on the Anti-monopoly Law for MOFCOM, National
Development and Reform Commission NDRC and SAIC. In addition, ministries in chargeof Companies and the Supreme People’s Court were added to a list of partner organizations
so that the outputs were produced than those of PDM.
Activities were basically implemented according to the originals plan and Japaneselaws on markets and distribution. Regarding laws on markets and distributions, werecomprehensively introduced with training materials. As a result, it was confirmed that
Chinese needs this filed include: the Commercial law, commercial transaction law, the Act
on commercial transaction law on intellectual property right, electronic commerce law,various business laws and credit transaction law, etc.

3-2 Summary of Evaluation Results(1) Relevance
The Project is deemed relevant from the following points.
1) Consistency with China’s development policy and Japan’s aid policy(i) China set establishment of “the Socialist System of Laws with Chinesecharacteristics” until 2010 as a national goal. In the legislative plan for the 10th NPC
Standing Committee (2003-2006), the Company Law and the Anti-monopoly Law wereclassified as Category I. Development of laws on markets and distributions was alsourgent to meet the commitments for the WTO accession protocol.
(ii) Japan’s Ministry of Foreign Affairs published the "Economic Cooperation
Program for China" in October 2001 and prioritized "Support of Reform and Open-up
Policy” including "Improving efficiency and transparency in government and rule oflaw". Based on this policy, JICA carried out project formulation study on promotion ofprivate sector in March 2002 and confirmed a strong need for cooperation onlegislation of economic laws and judicial human resources development.
2) Improvement of knowledge and abilities of legislative officers met with the needs ofChinese government which aimed for prompt enactment of legislation. Introduction ofJapan’s comprehensive system from legislation to implementation and typical cases
based on original requests also met the needs of China.
3) The Project, through seminar, symposium, and training in Japan, introduced the legal
system of Japan and provided legislative advice on drafting laws for Chinese officers
who are responsible for legislation, review, and application and enforcement of laws.
Comparative law method was appropriate because it deepened Chinese legal
professionals’ understanding of the whole process from drafting to legislation todevelop laws suitable to the current Chinese situation and contributed to humanresources development in China.

Overall, the Project met strong needs from China and its relevance is very high.
(2) Effectiveness
Although the Project is considered relatively effective based on the achievement ofproject purpose and the relation between the outputs and project purpose, some activities
were not implemented due to unexpected external factors. Residual activities were
implemented by extending the cooperation period. Timely training and information were
provided to introduce rules and guidelines and organization, function and operational
process of enforcement authorities, which were utilized by Chinese side as reference.
Regarding laws on markets and distribution, the Project achieved the planned output by
assisting MOFCOM in its most urgent issues: automobile circulation; unfair transaction;and distribution policy.
Meanwhile, transfer of counterpart officials did not hinder the progress of the Project
because of smooth takeover.
The Project purpose and outputs were properly related and outputs were sufficient.
Overall, the effectiveness of the Project is very high because satisfaction of Chineseparticipants is high and the Project appropriately responded to their needs.
(3) Efficiency
Decision of adoption and extension by Japanese government were unprecedentedly fast
so that the Project could start in a timely manner to meet requirements of the legislation
plan of the NPC and needs of Chinese organizations which strived for legislation andimplementation at a high pace. Therefore, the efficiency of the Project is high as a whole,
except for cancellation of a symposium on the Company Law due to busy schedule on bothsides.
The Company Law sub-project shifted its main activities flexibly from legislation to
implementation because the Company Law was enacted shortly after the Project started.
The shift also improved efficiency.
For the Anti-monopoly Law sub-project, the intensive inputs to the needs of China at
the most important period of finalizing legislative work made efficiency very high. In
addition, just before and after beginning of enforcement of the Anti-monopoly Law, theProject introduced Japan’s regulations and guidelines as the key for law enforcement andcarried out timely training activities and offered information on organization, function andoperations of the Japan Fair Trade Commission, to which China referred when it developed
corresponding regulations, guidelines and operational procedures.
The sub-project on laws on markets and distribution sub-project also made inputs
sequentially in response to the needs of China. The Project organized training activities inJapan and seminars on the "Law concerning Recycling Measures of End-of-Life Vehicles".
Besides, it offered timely training activities in Japan and seminars on distribution
immediately after the second Japan-China High-Level Economic Dialogue in June 2009,
which announced to launch the Japan-China Distribution Dialogues.
(4) Impact
The revised Company Law became effective in January 2006 and the Anti-monopoly
Law was promulgated in August 2007 and enforced in August 2008. Regarding laws onmarkets and distribution, MOFCOM revised regulations on retail and further legislative
work is ongoing. The progress of legislation proves the impact of the Project towardachievement of the overall goal.
As “support for private sector activities”, one of priority areas in Japanese Economic
Cooperation Program for China, the Project held law dissemination seminars andconferences on the laws relating to the Project for Japanese companies operating in China.
In addition, the Project broadly was aware of the problems which many Japanesecompanies had questioned, so that there is an impact from a new angle.
A comparative law study approach in the Project offered opportunities for Chinese
legal experts to understand the significance of each law through the entire process fromdrafting to legislation, and they highly regarded the approach. As a result, understanding ofJapanese law has deeply prevailed in China and gave it a turning point to comparative
study in China, which has been mainly about the European civil law and Anglo-Americancommon law. According to the partner organizations in the Project (NPC Legislative
Affairs Commission, Finance and Economy’s Affairs Committee, State Council Legislative
Affairs Office, Supreme People's Court, Securities Supervisory Board and so on.), they had
previously managed to study Japanese law only by obtaining the limited translatedmaterials. The Project provided them with chances to advance the comprehensive
understanding of Japanese law greatly. The partner organizations recognize that the Projectcontributed significantly to the legislation and implementation process for establishment ofChina's market economy and hoped continued legal cooperation between Japan and China.
Thus the Project has produced a huge impact.
Chinese participants in training, symposia and seminar brought about continuous ripple
effects of intellectual cooperation by reporting their study and research in theirorganizations even after the Project.
(5) Sustainability
Sustainability of the Project is based on factors of policy, organization and humanresources.
Sustainability on policy is high because the Chinese government prioritizes and willprioritize legislation and revision of laws related to economic activities.
In terms of organization, MOFCOM as a main partner organization of the Project, has
strengthened its influence to other organizations and demonstrated the ability of across-ministerial coordination. A communication tool through MOFCOM has been
established among the participating organizations, and thus capacity of coordination on
legal development is expected to be enhanced. Although three enforcement organizationsof MOFCOM, NDRC and SAIC are independently responsible for particular issues on
Anti-monopoly Law, officers in those organizations jointly participated in training
activities in Japan and seminars so that collaboration among three organizations has beenpromoted.
As noted on impact, all partner organizations in the Project Legislative Affairs Officeof the State Council deepened the comprehensive understanding of Japanese laws. The factthat they expressed a strong demand for continuous legal cooperation between Japan and
China indicates high sustainability.
Since legal cooperation on particular law has strong ripple effects, the Project
unearthed the needs of further cooperation on other law areas. As a characteristic of legal
cooperation, the greater sustainability leads to the more needs of cooperation. It is urgent
for JICA to establish long-term cooperation.
In terms of human resources, counterparts and officers in partner organizations haveexercised their abilities and are involved in the Project even after they were promoted tohigher positions. Those efforts would contribute to sustainability of the Project greatly.
3-3 Positive Factors(1) Planning
The Project adjusted PDM and Plan of Operation (PO) according to the NPC

Legislative plan. The Project responded to Chinese needs properly.
(2) Implementation process
The Chinese government clarified revision of the Company Law, enactment of theAnti-monopoly Law and improvement of laws on market and distribution as importantnational goals. Chinese organizations’ efforts according to the NPC legislative plan ensured
the predictable outcome of the Project.
In addition, MOFCOM’s improved cross-ministerial coordination capacity also
contributed to the Project.
3-4 Challenges(1) Planning
In China, legislation is done according to the legislative schedule which is issued every
5 years. The laws on the NPC Legislative plan must be promulgated within 5 years so that
support to drafting those laws requires flexibility and speed. Therefore, the lead time fromrequest to implementation hinders timely cooperation. It is necessary to establish a system
to various needs flexibly.
(2) Implementation process
Coordination is a key to the success of legal assistance plan. Consultants for coordination
he must have wide knowledge for legislation policies, processes, schedule and techniquesof Japan and partner countries and collect information on legal enforcement system,
organizational, external conditions for legal system. Coordinators should convey the
information to experts on specific laws. As the Project went on, consultants improved
coordination work which led to smoother implementation of the Project.
3-5 Conclusion
The Project improved capacity of Chinese counterparts on understanding, legislationand enforcement of the Company Law, .the Anti-monopoly Law and Laws on markets anddistribution. The revised Corporation Law was enforced in January, 2006 and theAnti-monopoly Law was promulgated in August, 2007 and enforced in August, 2008.
Development of laws on markets and distribution is also ongoing.
In conclusion, based on a "comparative study” approach, Chinese Counterparts in the
Project could develop their capacities so that the Project has carried a huge significance. In
addition, understanding of Japanese law prevailed in Chinese counterparts and the Projectgave an impact on Comparative lave studies in China which mainly had studied
Continental law in Europe and Anglo-American law. Chinese partner organizations in the
Project expressed their strong needs of continuous Japan-China legal cooperation.
3-6 Recommendations(1) In China, legislation is done according to the legislative schedule which is issued every
5 years. The laws on the NPC Legislative plan must be promulgated within 5 years sothat support to drafting those laws requires flexibility and speed. Therefore, the leadtime from request to implementation hinders timely cooperation. It is necessary toestablish a system to various needs flexibly. Other international organizations adopts
flexible operation mechanism which identifies area of laws broadly rather than specificlaw. JICA also should consider such mechanism.
(2) In China, there are various needs of law development and cooperation with Japan. As
China becomes more important in global economy, Japan’s legal cooperation
contributes to not only Chinese companies but also foreign companies includingJapanese ones. It is necessary to discuss a long-term plan of Japan-China legal
cooperation.
(3) It is difficult to apply the DAC evaluation criteria based on traditional PCM method tolegal assistance. It is necessary to methodology of evaluation indicators.
(4) It is desirable for a long-term expert with legal professional ability to support overallmanagement of legal assistance.
(5) The Project contributed to interpersonal communication between Japan and China andmore favorable business environment of Chinese and Japanese enterprises. In addition,
Subproject on laws as markets and distribution promoted commissions between
responsible officers of Japan and China in advance of official governmental discussion.
In this sense, the Project can be identified as a model of J&CA’s legal assistance.
Therefore, ex-post evaluation is necessary to prove impact and sustainability.
3-7 Lessons(1) The translated materials, cases and commentaries about Japanese law created by the
Project could be used for training young officials who will be responsible for drafting,legislation and dissemination. Correct translation of materials is often unnoticeable but
most important in legal cooperation because the definition of articles in law is the key
to legislation skills. Taking the lesson by the past projects, the Project was well
prepared with enough budgets for translation.
(2) It is necessary that materials for training in Japan should be distributed in advance toserve the participants for their preparation and to increase the efficiency of short-term
training courses.
(3) In legal cooperation, coordination is also the key to its success. A coordinator needs
extensive knowledge about policies, processes, plans and skills of legislation in Japanand in a partner country. In addition to complicated coordination work, a coordinatorshould also collect information on law enforcement system, governance and personnel
structure of enforcement organizations, legal environment in a partner country to input
the appropriate information to academics and experts in Japan, who are responsible foradvices on a particular law.