China

The Reform Plan and the Economy


Published

In its usual piecemeal fashion the Chinese government has released bits and pieces of the full text of the decisions taken and the final report of the third plenary session of the 18th Communist Party of China (CPC) Central Committee.

Below is the Xinhua report on President Xi’s explanation of the report followed by a second release entitled “China to further open up its economy”. But you can find much more by going to this link.

“BEIJING, Nov. 15 (Xinhua) — Xi Jinping’s explanation of the decision on major issues concerning comprehensively deepening reforms was published on Friday.

Entrusted by the Political Bureau of the Communist Party of China (CPC) Central Committee, Xi, general secretary of the CPC Central Committee, explained the decision to the Third Plenary Session of the 18th CPC Central Committee, which was held from Nov. 9 to 12.

Since 1978, the third plenary session of a CPC central committee, including its agendas, decisions, measures and signals, has served as a major reference for people to understand the new leadership’s policies and priorities, and has been important for the work in the coming five to ten years, Xi said.

To reach the strategic goals set at the 18th CPC National Congress last year, comprehensive reforms must be firmly promoted, he said.

It has been 35 years since the CPC made the landmark decision to shift the focus to economic development and adopt opening-up policies at the Third Plenary Session of the 11th CPC Central Committee.

Persistent reform and opening-up efforts have deeply changed the image of the country, its people and the Party and enabled China to become a significant member of the international community, Xi said.

Recalling Deng Xiaoping’s reform speeches in 1992, Xi said only socialism can save China, and only reform and opening-up can develop China, socialism and Marxism.

Reform and opening-up will decide the destiny of modern China. It is also the key to realizing the dream of national rejuvenation, Xi said.

In April, the political bureau set reform as the theme of the Third Plenary Session of the 18th CPC Central Committee.

A team headed by Xi was set up to draft the decision on reforms. Opinions were widely solicited within the CPC and among other parties and organizations.

During the drafting, it was made clear that the strategic mission of comprehensively deepening reforms and opening-up, proposed by the 18th National Congress of the CPC, should be implemented with the decision, Xi said.

It was also made clear that the decision should respond to the hopes as well as complaints of the people, while the reform measures should be bold in mind but steady in steps.

The reform roadmap has been designed to be met by 2020, when decisive results should have been achieved in key sectors, he added.

KEY DECISIONS

A significant theory of the session was to acknowledge the market’s decisive role in allocating resources, Xi said.

Economic reform is the key of the entire reform drive while a proper relationship between the market and government remains the core of China’s economic reform, Xi explained.

China has to follow the basic law of the market economy and work on the problems of an underdeveloped market system, excessive government intervention and weak supervision of the market, he said.

However, Xi noted that to let the market decide does not mean to let it decide all. “The socialist market economy needs both the market and government but they play different roles.”

The government is to maintain a stable macro-economy, provide public service, safeguard fair competition, supervise the market, keep market order, promote sustainable development and step in when the market fails, he added.

To ensure the smoothness of the reform, the CPC decided to set up a leading group for overall reform as it is hard for certain or several departments to push forward such a complicated systematic project, Xi said.

The group will be in charge of designing national, major reform on an overall basis, arranging and coordinating reforms in relevant aspects, pushing forward reform as a whole, and supervising the implementation of reform plans.

Talking about the to-be-established national security commission aimed at strengthening the unified leadership to the state security work, Xi said its main responsibilities include stipulating and implementing state security strategies, pushing forward the construction of the rule of law system concerning state security, setting security principles and policies, as well as conducting research.

“National security and social stability are the preconditions for reform and development”, Xi said.

Xi also pointed at strengthening Internet management to ensure its accurate use and cyber security.

Citing rapid growth of social networking services and instant messaging tools, he said concerted efforts should be made to manage the Internet regarding technologies, content and security.

Xi also clarified decisions on the basic economic system which allows more private capital into the market to develop a mixed ownership economy, fiscal system reform, rural-urban integration, promoting consultative democracy, improvement of the judicial system, anti-corruption as well as natural resources management and supervision.

COURAGE & ACTION

Reform and opening-up is the most significant feature of modern China and the CPC, Xi said. He called for greater political courage and wisdom as well as stronger measures to promote reforms.

Except for deepening reforms, there is no other way to dissolve risks and challenges from all the sides and show the advantage of socialism with Chinese characteristics, he said.

He emphasized on the emancipation of mind, which is the top priority for breaking the barriers from entrenched interest groups.

While thorough research and argumentation is necessary, the reform needs activeness and bold efforts. It is impossible to reform without any risk or changes of current institutions.

He urged strengthening top-level design and comprehensive planning so that all the aspects concerning economy, politics, culture, society and ecological progress could coordinate well.”

“CPC: China to further open up its economy

BEIJING, Nov. 15 (Xinhua) — China will further open up its economy by broadening market access, boosting regional cooperation and opening up its interior and border cities, according to a policy document published by the Communist Party of China (CPC) Central Committee on Friday.

The document, with the title “decision on major issues concerning comprehensively deepening reforms,” was approved by the Third Plenary Session of the 18th CPC Central Committee, a four-day key meeting which ended on Nov. 12.

According to the document, China will widen market access for foreign investors. The country will keep investment policy stable, transparent and predictable.

It said more efforts will be made to open up services sectors including finance, education, culture and health.

Investment restrictions will be eased for child-care and old-age care, architectural design, accounting and auditing, commercial logistics and e-commerce, and the general manufacturing sector will also become more open.

The document acknowledged the China (Shanghai) Pilot Free Trade Zone as a significant move to push forward reform and opening-up, saying the government will choose a number of other eligible locations to develop free trade zones on the basis of existing experiment.

It said China will encourage enterprises and individuals to invest overseas.

China will allow companies and individuals to contract overseas construction and labor service projects at their own risks and endorse innovative ways of going abroad that include greenfield investment, mergers and acquisitions, portfolio investment and joint investment. < It will speed up negotiations on signing investment agreements with related countries and regions, reforming investment approval process and improving the system of consular protection. Starting from its neighbors, China will quicken its pace of implementing the strategy of free trade area (FTA), it said. Systems on market access, customs control, inspection and quarantine will be reformed, and talks concerning issues such as environmental protection, investment protection, government procurement and e-commerce will be launched. The mainland will also further open up and cooperate with Hong Kong, Macau and Taiwan. To seize opportunities amid changes of global industrial landscape, China will push forward the coordinated development of trade, investment and technological innovation of interior China, the document said. Current practices of processing trade in inland regions will be innovated to boost local industrial clusters and hinterland cities will enjoy more international passenger and freight routes. Ports, cities and economic cooperation zones on borders will enjoy special policies concerning person-to-person exchange, logistics and tourism, it said.”

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