The story appears on

Page A3

November 13, 2013

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Nation

Reforms to yield ‘decisive results’ by 2020

China is to let markets play a “decisive” role in allocating resources as it unveiled a reform agenda for the next decade yesterday, seeking to overhaul the world’s second-largest economy to drive future growth.

China aims to achieve “decisive results” in its reform push by 2020, with economic changes a central focus of overall reforms, the Party said in a communique released at the end of the four-day closed-door Third Plenum of the 18th CPC Central Committee.

“The core issue is to straighten out the relationship between government and the market, allowing the market to play a decisive role in allocating resources and improving the government’s role,” the communique said.

“Both public and non-public sectors of the economy are important components of the socialist market economy and significant bases for economic and social development,” according to the document.

China will stick to the dominant role of public ownership, playing the leading role of the state-owned economy, while encouraging, supporting and guiding the non-public sector, enhancing its vitality and creativity, it said.

A united and open market system with orderly competition will be built so that the market will play a “decisive” role in allocating resources, according to the communique.

Government functions must be transformed in a manner to build a law-based and service-oriented government, it said.

It added that China would set up a central leading team for “comprehensively deepening reform,” responsible for “designing reform on an overall basis, arranging and coordinating reform, pushing forward reform as a whole, and supervising the implementation of reform plans.”

Historically, such third plenary sessions of a newly installed Central Committee have acted as a springboard for key economic reforms, and this one will also serve as a first test of the new leadership’s commitment to reform.

Among the issues singled out for reform, the Party said that China would work to deepen fiscal and tax reform, establish a unified land market in cities and the countryside, set up a sustainable social security system, and give farmers more property rights — all measures seen as necessary to put the nation’s economy on a more sustainable footing.

Out of a long list of areas that the meeting was expected to tackle, most analysts have singled out a push toward a greater role of markets in the financial sector and reforms to public finances as those most likely to get immediate attention.

As part of that, China is expected to push forward with capital account convertibility, and the 2020 target date for making significant strides on reform could set off expectations that the government will be looking to achieve breakthroughs on freeing up the closely managed yuan by then.

Another key area reformers say is ripe for change is control of land. The Party said farmers should have more property rights.

China will “push forward land reform and give farmers more property rights,” it said, including having one market for development land in both cities and the countryside.

It did not mention China’s one-child policy, which had been trialed as a possible area for reform, and only obliquely addressed the divisive hukou residency system, which denies people who have migrated from the countryside to the cities equal access to benefits.

A state security committee will be set up to “improve systems and strategies to ensure national security,” the communique said, pointing out the need to “effectively prevent and end social disputes and improve public security.”

“The Party must give full play to its core role of commanding the whole situation and coordinating the efforts of all quarters, and improve the leadership and governance to ensure the success of reform,” it said.

Modern armed forces with Chinese characteristics will be built, the communique said.

“Great effort should be put to solving outstanding conflicts and problems that hinder development of national defense and the army,” it said.

The communique also called for the building of a comprehensive system for ecological progress that protects the environment.

Highlights of the Communique of the Third Plenum

Improving the market system

China will deepen its economic reform to ensure that the market plays a decisive role in allocating resources. The country will work to improve the modern market system, macro-regulatory system and an open economy, the Party said. Businesses should be allowed to operate independently and compete fairly while consumers should be free to choose and spend, and merchandise traded freely and equally.

Team in charge of reform

The Party is to set up a central leading team for “comprehensively deepening reform.” It will be in charge of designing reform on an overall basis, arranging and coordinating reform, pushing forward reform as a whole, and supervising the implementation of reform plans. Party committees at all levels are urged to fulfill their duties in leading reform. 

Diverse forms of ownership

China is to promote an economy with diverse forms of ownership. “Both public and non-public sectors of the economy are important components of the socialist market economy and significant bases for economic and social development,” the Party said. Development in the non-public sector will be encouraged which will stimulate vitality and creativity in the economy.

Protection for environment

The Party has vowed to establish a sound system to protect the environment. “It is imperative to build a sound system and to protect the ecological environment through the system,” it said, adding that the system concerning property rights of natural resources and the administration of their use should be improved.

Better budget management

A financial system that supports the initiative of both central and local authorities should be set up, the Party said. China needs to improve its budget management and taxation systems in a bid to make responsibilities of government agencies match what they spend. It is essential China improves legislation and ensures that budgeting is transparent.

Expanding free trade zones

China is to relax investment restrictions and accelerate construction of free trade zones. Such zones will be expanded in inland and border areas. New policies will apply to both domestic and international ventures, with the strategies of “bringing in” and “going global” combined to adapt to globalization. Cultivation of new competitive advantages will be a priority. 

More rights for farmers

A new, integrated system of urban-rural relations will allow people living outside cities equal participation in modernization and better property rights, the Party said. This will allow farmers to “equally participate in the modernization drive and share its fruits.” New agribusiness systems will be formed and more property rights should be given to farmers.

Reforming judicial system

China is to reform its judicial system to better protect the rights and interests of the people. In a bid to build the country under the rule of law, it is imperative to build a fair, efficient and authoritative socialist judicial system and safeguard the rights and legitimate interests of the people, the Party said.

 




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend