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Govt policy moves in the past week (Aug 21-27)

Updated: Aug 28,2017 8:34 PM

Step up deleveraging at central SOEs

China will further reduce leverage at central State-owned enterprises, the State Council decided at an executive meeting chaired by Premier Li Keqiang on Aug 23.

It was noted at the meeting that central SOEs are the backbone of the national economy, which play a leading and demonstration role in SOE reform. Those at the meeting decided that the government will take deleveraging at central SOEs as a top priority, and develop multiple channels to reduce corporate debts.

Details:>>China to step up deleveraging at central SOEs

Expand incentives for scientific researchers

At the State Council executive meeting on Aug 23, Premier Li received a briefing about incentives in place for scientific researchers and the reform of sci-tech projects’ funds management.

Next, measures will be rolled out to expand incentives concerning equities, options and dividends of sci-tech SOEs, and implement preferential policies on R & D and tax incentives for sci-tech enterprises. This is to further stimulate the enthusiasm and creativity of sci-tech personnel.

Details:>>Quick view: State Council executive meeting on Aug 23

China to further regulate financing guarantee companies

The State Council issued a regulation on the supervision and management of financing guarantee companies.

According to the regulation, which will take effect Oct 1, a government financing guarantee system will be established. The regulation sets the basic operations rules for such companies, especially clarifying the corresponding responsibilities of supervision authorities and specific supervision measures.

Details:>>China to tighten supervision over financing guarantee companies

Regulate unlicensed business operations

The State Council has adopted regulations on investigating and punishing unlicensed business operations, according to a circular issued on Aug 23.

The rules, which will take effect on Oct 1, are aimed at safeguarding market order, promoting fair competition and encouraging entrepreneurship and innovation.

The regulations state the scope of unlicensed business operations, and clarify the supervision responsibilities of related authorities. The regulations also ask all authorities to perform their duties and improve regulation efficiency in the investigation and punishment of unregistered businesses.

Details:>>China to strengthen efforts to regulate unlicensed business operations

China to further promote information consumption

The State Council on Aug 24 issued a circular to promote and upgrade information consumption, aimed at further unleashing the potential of domestic demand.

The key fields and categories involved in the circular include those closely related to people’s daily lives, public services, industrial information, and new information products.

To achieve the goal by 2020, related departments and industries were encouraged to enhance the supply and quality of information products and services, expand consumption coverage and optimize the development environment.

Details: >>China to further promote information consumption

China to strengthen efforts on prevention of work-related injuries

The Ministry of Human Resources and Social Security and several other departments, including the Ministry of Finance, jointly issued interim measures on the management of work-related injury prevention funds.

The funds are mainly used for training and promotion programs for preventing work-related injuries and occupational diseases.

According to the measures, the amount of used prevention funds should not surpass 3 percent of the insurance funds for work-related injuries in the last year.

Authority clarifies four VAT-related issues

The State Administration of Taxation has issued an announcement to clarify management measures for four issues of VAT: VAT exemption on cross-border taxable activities; input tax for refined oil purchased by logistics companies; invoice for rental of personal property; and discount and rediscount operations by financial institutions.

Plan issued to optimize and integrate national sci-tech innovation bases

The Ministry of Science and Technology, the Ministry of Finance and the National Development and Reform Commission (NDRC) jointly released a plan on optimizing and integrating national science and technology innovation bases.

The plan divides national innovation bases into three categories: science and engineering research, technological innovation and transformation of achievement, and fundamental support.

Plan on building a national government information platform

The NDRC recently revealed a plan on establishing a national government information platform by the end of the 13th Five-year Plan period

According to the plan, a management and service system for national government information resources will be built, and breakthroughs will be made in sharing government data and the integration with social big data. The accuracy and efficiency of government and public services will be significantly improved.

China to further prevent food and drug crimes

The China Food and Drug Administration and the Ministry of Finance have revised a regulation on rewarding those who report illegal activities related to food and drugs.

The upper limit of reward for a single report has been increased to 500,000 yuan from 300,000 yuan.