China is prioritizing reforms to enable better economic vitality and higher living standards for people.
The State Council’s executive meeting on April 5 comes with an outline for specific plans for this year’s economic reform, with areas that require focused reform. The meeting was presided over by Premier Li Keqiang.
“The Chinese economy is fundamentally driven by the country’s reform efforts,” Premier Li said. “To deliver results we have projected for the year, it is still down to how well we carry on with reforms.”
He points out that reform will inevitably touch upon special interests, and joint efforts are needed from all government departments.
Efforts to expand economic reform will be carried out in several aspects in 2017.
Improvements are urged in areas such as cutting overcapacity, destocking, deleveraging, reducing corporate costs and shoring up weak links, aiming for a more effective economic growth with high quality using forces of the market and with law-based measures.
Efforts in transforming government functions and streamlining administration will continue with a stricter and more comprehensive compliance regulation, creating a more inviting business environment for real economy.
Innovation and entrepreneurship will be further encouraged with incentives. The government will also come up with wider and more effective regulation on protecting private property.
Fiscal and tax reform as well as reform in State-owned enterprises (SOEs) are also urged. The country will also enhance reform measures on widening opening up, environmental protection and supply-side reform in agriculture.
The new guideline also suggests inviting private capital participation in social welfare, including medical care, education reform, and social organizations.
“The government needs to focus on key reform steps that lead to overall impact. This is similar to clenching our fist firmly while holding something vital,” Premier Li said.
“The key to reform is to unleash the potential of productivity,” the Premier added. “Our job is to make big businesses stronger, small businesses more vibrant, through means firmly adhering to market principles and the rule of law. Given greater latitude for their own initiatives, all businesses, big or small, will work together to invigorate the Chinese economy.”