(Bloomberg) -- China published the full text on Sunday of the decision on further deepening reform and advancing Chinese modernization, the policies discussed at a plenum held last week by the central committee of the Chinese Communist Party.
- NOTE: Xi Vows Tax Reform, to Improve Budget in New Economic Blueprint
Private sector
- China will focus on building a high-level socialist market economy and will let the market play a decisive role in resources allocation
- Will formulate law about promoting private sector development
- Will support competent private firms to lead in major technological breakthroughs
- Will improve policies to support private firms’ financing
- Will improve the mechanism of determining the price of production factors’ mainly through market supply and demand and prevent improper government intervention in price formation
- Aims to establish a “highly-effective” management system to protect intellectual property, set up system to protect business secrets
- Improve policies and governance systems for promoting development of strategic industries such as new-generation information technology, artificial intelligence, aerospace, new energy, new materials, high-end equipment, biomedicine, quantum technology, etc.
Housing
- To speed up establishment of new housing system that promotes renting and purchasing together; Will fully give each city autonomy in regulating real estate market
Government budget
- Will deepen fiscal and taxation reform and improve budget system
- China will deepen reform of investment and operations of state capital
- To fully include incomes obtained through administrative power, government credit and state-owned resources in government budget management
- Will transfer some non-tax revenue collection to local governments
- Raise proportion of central fiscal expenditure in government spending
- Will set up system to monitor, regulate local govt debts
Social policy
- Steadily push forward reform on gradually postponing retirement age
- Aims to improve support and incentives to boost births
- To provide basic social services where people live and ensure eligible workers can access welfare
- Will regulate income distribution order and mechanism of wealth accumulation
- Increase urban and rural residents’ incomes from various assets
- Deepen reforms of salaries of workers at state-owned enterprises, set up reasonable salaries for state-owned firms’ executives
- Explore rules governing personal bankruptcy
Other policies
- Will strengthen antitrust work
- China to encourage development of angel investing, venture capital and private equity investment
- Improve the mechanism ensuring resilience and security of the industrial supply chain, build an independent and controllable industrial chain and supply chain
- Improve the mechanism for developing key industrial chains for integrated circuits, medical equipment and advanced materials.
- Will deepen reform on defense science and technology industry
- China to deepen reform on Internet management system
- Improve system on generative artificial intelligence development and management
- Will set up AI security supervision system
- China will strive for revolutionary breakthroughs in technology
- China will improve operations and oversight of major industrial funds
- Push ahead with national anti-corruption legislation and legislation on controlling cross-border graft
- In a separate readout of Chinese President Xi Jinping’s explanation on the decisions, Xi stressed importance of national security for Chinese modernization
- Says China will strengthen coordination for national security work
(Updates with more details on supply chains)
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