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REPORT ON THE IMPLEMENTATION OF THE 2017 PLAN FOR
NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON
THE 2018 DRAFT-PLAN FOR NATIONAL ECONOMIC AND
SOCIAL DEVELOPMENT
Delivered at the First Session ef the
Thirteenth National People's Congres.r on March 5, 2018
National Development and Reform Commission
The official version of this report will be released by Xinhua News Agency.
Esteemed Deputies,
The National Development and Reform Commission has been enttusted by the State
Council to deliver this report on the implementation of the 2017 plan and on the 2018 draft
plan for national economic and social development to the First Session of the 13th National
People's Congress (NPC) for your deliberation. It also invites comments from the members of
the National Committee of the Chinese People's Political Consultative Conference (CPPCC).
I. Implementation of the 2017 Plan for
National Economic and Social Development
Last year, in the face of complex and volatile situations at home and abroad, all regions
and departments, under the strong leadership of the Central Committee of the Communist
Party of China (CPC) with Comrade Xi Jinping at its core, continued to strengthen their
consciousness of the need to maintain political integrity, think in big-picture terms, follow the
leadership core, and keep in alignment, and thoroughly studied and implemented Xi Jinping
Thought on Socialism with Chinese Characteristics for the New Era and the guiding principles
from the 19th National Party Congress. In accordance with the arrangements of the Central
Economic Work Conference and the Report on the Work of the Government, we continued
to apply the underlying principle of pursuing progress while ensuring stability, stuck firmly to
the new vision of development, and earnestly implemented the 2017 Plan approved at the
Fifth Session of the 12th NPC, while also acting in line with a review of the Plan by the NPC's
Financial and Economic Affairs Committee. With the focus on improving the quality and
effect of development and pursuing supply-side sttuctural reform as our main task, we made
coordinated moves to maintain stable growth, promote reform, make sttuctural adjustments,
improve living standards, and guard against risks. Economic performance was stable but
strong, sustained good momentum, and surpassed expectations. The main targets and tasks in
economic and social development for the year were accomplished, and implementation of the
2017 Plan was successful overall.
1. We jot11sed on developing new and improved methods of macro n:gulation, and ensured the economy
operated within an appropriate range.
Thanks to the solid strides we made in economic monitoring, forecasting, and early
warning, we were able to correctly grasp the trends and changes in both the international and
domestic economic environments. On the basis of range-based regulation, we strengthened
targeted, well-timed, and precision regulation. We made greater use of a combination of fiscal,
monetary, consumption, investment, and other macro policies, ensured continuity and stability
between these policies, and focused closely on preventing and controlling risks in key areas,
thus ensuring a stable economic performance.
1
1) Economic growth was kept within an appropriate range.
China's gross domestic product (GDP) reached 82.7 ttillion yuan, an increase of6.9% and
in line with our projected target.
Trillion Yuan
25
20
15
10
5
0
Figure 1. GDP and Growth Rate
-GDP -0-Growth Rate
Quarter I Quarter2 Quarter3
%
23.4582 8 7.8 7.6 7.4 7.2 7 6.8 6.6 6.4 6.2 6
Quarter4
Fiscal policy was made more proactive and effective, the structure of government
expenditures was adjusted and improved, and guarantees for expenditures on key projects and
the people's wellbeing were strengthened. Revenue in China's general public budgets totaled
17.26 ttillion yuan, an increase of 7.4%; and the fiscal deficit was 2.38 ttillion yuan, which is the
same as the budgeted figure. A prudent and neutral monetary policy stance was maintained,
with liquidity remaining basically stable and growth of aggregate financing and credit staying at
a steady and appropriate level. We made use of differential policies, such as targeted cuts to
required reserve ratios and relending to support agriculture, small and micro businesses, and
pov~rty reduction efforts; and we increased financial support for key sectors and weak links. At
the end of December 2017, the M2 money supply had increased by .8.2% and aggregate
financing in the economy by 12%. There was a marked improvement in the performance of
enterprises: Large industrial enterprises (those with annual revenue from their main business
operations of 20 million yuan or more) recorded profits of 7.52 ttillion yuan in 2017, a 21%
increase, and 12.5 percentage points higher than the previous year.
The fundamental role of consumption in driving economic growth was continuously
enhanced. Service consumption in wellbeing industries, such as tourism, culture, sports, health,
elderly care, and education and training, further improved both in terms of quality and scale.
Total retail sales of consumer goods grew by 10.2% in 2017, and the contribution of final
consumption to economic growth reached 58.8%.
2
Tourism
Culture
Sports
Health
Elderly Care
Education&
Training
Box 1: Consumption in Wellbeing Industries
• Implemented the campaign on improving and upgrading rural tourism, supported the construction of facilities for farm-based recreation and rural tourism, improved
the management system for motorhomes, continued to encourage the development
of cruise-liner and·yacht tours, and promoted the integrated development of sports and tourism
•
•
•
•
•
Supported the conversion of bookstores into cultural complexes, steadily pushed
forward trials to boost cultural consumption among urban and rural residents,
carried out pilot projects to see cultural heritage organizations develop creative
cultural products, and promoted the development of the digital culture industry
Formulated development plans for sports industries such as marathons, cycling, and
going on camping excursions by car, and provided support to nongovernmental sectors in organizing large-scale ·sports evonts for the general public .
Encouraged nongovernmental sectors to provide multi-tiered and multifaceted
medical and health services, extended the implementation of policies on income tax
credits for commercial health insurance, and promoted health tourism
· Improved the quality of elderly care services, relaxed access to · the elderly' care
services market, and increased the supply of high-quality products and services
catering to senior citizens' daily needs in areas like housing, food, and
transportation; advanced the reform of state-run elderly care institutions,
enc_ouraged the developm,ent of new management practices and service models in
state-level pilot areas for providing combined medical and care services for the.
elderly; and launched initiatives to boost quality and capacity in the domestic services sector
Deepened reform of educational institutions run by state-owned enterprises, acted
to make education and training activities more geared toward starting businesses and
making innovations, encouraged the investment of private capital in such education
and training programs, and oversaw high-level demonstrations of Chinese-foreign cooperation on running schools
Multiple measures were taken to increase effective investment; the public-private
partnership (PPP) model was extended to more areas in a well-regulated and orderly way; and
total fixed-asset investment rose by 7%. The structure of investment was continually improved,
and investment in living standards, high technology, and industrial technological
transformation grew at a consistently rapid rate, with growth in high-tech manufacturing and
equipment manufacturing hitting 17% and 8.6% respectively.
3
%
80
70 ·
60 ·
50 ·
40
30
Figure 2. Contribution of Consumption and Investment to Economic Growth
--o-- Contribution of final consumption • • •O• • Contribution of grosS capital formation
66.5 59.7 4 58.8
55.3 ~ 0•••• 48 8 . . . ... .
o • ., '········ 41~ 43.1 47 469 ............. 1() .............................. -o •• . •• " ••• •... 32.1
•••·o
20 +-----~-----.-----~----~----~, 2013 2014 2015 2016 2017
2) The general employment sit11ation was positive. The Employment Promotion Plan for the 13th Five-Year Plan Period came into full effect,
and ongoing improvements were made to the system of more proactive employment policies.
Employment and business-startup services were enhanced, better guarantees were set down to
ensure the employment of key groups, and strong progress was recorded in initiatives to
cultivate highly skilled personnel and provide vocational training for migrant workers. A total
of 13.51 million urban jobs were added over the year, and the registered urban unemployment
rate stood at 3.90% at year-end 2017.
Million Jobs
16
14
12
10
8
6
4
2
2013
Figure 3. Urban Jobs Created
11 Increase over the target ,., Annual target
13.22 13.12 13.14 13.51
2014 2015 2016 2017
4
Per capita disposable personal income reached 25,974 yuan, a 7.3% increase in real terms,
and 0.4 percentage point higher than GDP growth. The growth of rural income was yet again
faster than that of urban income.
Yuan 30000
25000
20000
15000
10000
5000
0
Figure 4. Per Capita Disposable Personal Income Levels and Growth Rates
- Per capita disposable personal income -0-Actual growth rate
25974
2013 2014 2015 2016 2017
3) Overall price levels were basicalfy stable.
% 30
25
20
15
10
5
0
Price monitoring, analysis, early warning, and regulation were consistently enhanced. We
continued to intensify pricing oversight and law enforcement to tackle monopolistic pricing.
We responded proactively to emergencies such as the fluctuations in natural gas prices, and
carried out special oversight and inspection activities to ensure supply and price levels
remained stable. The consumer price index (CPI) rose by 1.6% for the year.
4) Risk prevention and control in kry areas made steatfy progress.
Efforts to prevent and control local government debt risks moved forward in an orderly
manner, overall stability was maintained in the markets for stocks, bonds, futures, and
insurance, and coordination was strengthened for financial oversight. In the real estate sector,
we saw transaction volumes and price levels stabilize in popular cities. The national reserve
system was further improved. And by managing expectations better and making policies more
open and transparent, we were able to boost confidence in the market.
2. We farther advanced mppfy-side str11ct11ral reform and cvnsistentfy raised the quali!J and effect ef development.
Focusing on the composition of supply, we moved to reduce ineffectiveness and expand
effectiveness, thus achieving a sustained boost in the efficiency of resource allocation.
1) Signijicant progress was made in the jive priori!)' tasks ef cutting overcapaci!J, reducing excess inventory,
deleveraging, lowering costs, and strengtheningpoints ef weakness. 5
Annual targets for reducing excess steel and coal production capacity were surpassed,
substandard steel products were banned outright, and operations were terminated, or
construction was suspended or postponed, for 65 million kilowatts of coal-fired power
generation capacity. As we sped up implementation of trials to develop the housing rental
market in large and medium-sized cities that have'net population inflows, decreases in China's
housing inventory continued, and, at year-end 2017, the area of commodity housing for sale
was 15.3% less than at year-end 2016. Enterprise leverage ratios, while remaining stable, were
trending downward, with the debt-to-asset ratio of large industrial enterprises, which stood at
55.5% at year-end, registering a 0.6 percentage point decrease year on year.
We stepped up efforts to reduce taxes and fees, helping ease the burden on market entities
by more than one trillion yuan for the year. We made a proactive push to address weaknesses in
key sectors and areas in need of attention: Investment in environmental protection,
infrastructure, public service facilities in poor areas, and other sectors grew rapidly. Specifically,
investment in ecological conservation and environmental governance, water conservancy
management, and agriculture recorded respective increases of 23.9%, 16.4%, and 16.4% year
on year, to exceed the overall rate of investment growth by 16.7, 9.2, and 9.2 percentage points
respectively.
2) Positive results were achieved in revitalizing the real economy.
We made solid strides in building China into a manufacturer of quality, speeding up
implementation of the Made in China 2025 initiative and making steady advances in major
projects to build manufacturing innovation centers, strengthen the industrial foundation,
support green manufacturing, and develop intelligent manufacturing; this has helped to boost
the pace of transformation and upgrading in industries like machinery and equipment,
petrochemicals and pharmaceuticals, metallurgy and building materials, new materials, and
textiles. The State Council issued Guidelines on Deepening Implementation of the Internet
Plus Advanced Manufacturing Model and Developing the Industrial Internet (G.F. [2017]
No.SO). Significant results were achieved in promoting the use of new-energy vehicles.
Consistent progress was made in implementing the three-year action plan to enhance core
competitiveness in key industries, including rail transit equipment and industrial robots. We
established Chinese Brands Day.
3) The service sector took strong strides toward achieving high quality and efficien,y.
We accelerated the development of producer and consumer services, introduced and
implemented guidelines on the innovation-driven development of the service sector, and made
solid progress in carrying out a new round of trials on integrated reforms in the service sector.
As a result, the value-added of the sector grew by 8% and its contribution to economic growth
was 58.8%, up 1.3 percentage points over the previous year.
6
%
100
90 80
70
60
50
40
30
20
10
Figure 5. Contribution of Primary, Secondary, and Tertiary Industries to GDP
• Primary industry • Secondary industry mTertiary industry
0 +.--JL___C9:._::.3c.__,__,___._-'9'-".1=---,__,___._-'8"".8"----'--r--'--'8<C.6,,__,__,___.__7,.,_.9"---'----, 2013 2014 2015 2016 2017
4) Infrastructure prqjects produced greater benefits.
Of 172 major water conservancy and supply projects, construction has started on 122,
including 16 last year. We moved faster to unprove the modern comprehensive transportation
system, and continuously optimized the layout of the country's transportation networks.
Investments in railway construction over the year exceeded 800 billion yuan, over 2 trillion
yuan was put into highway and waterway projects, and 82.5 billion yuan was invested in civil
aviation. Further, multimodal transportation developed at a faster pace, with growth of over 20%
in the volume of combined container transport by both rail and sea. The strategy to
revolutionize energy generation and consumption was also unplemented across the board, and
coordinated progress was made in the development of energy infrastructure networks.
•
Railways
• Highways
•
Waterways
Box 2: Major Infrastructure Construction
With 3,038 kilometers of new railway lines coming into operation, China now has a
total of 127,000 kilometers of railway lines in service,\vith 25,000 kilometers of
high-speed lines. The Wuhan-Jiujiang, Baoji-Lanzhou, - - Xi'an-Chengdu,
ShijiazhuangcJinan high0 speed lines and the Jiujiang-Jingdezhen-Quzhou line were
put into operation.
A total of 4. 77 million kilometers of highways are now open to traffic, of which
136,000 kilometers are expressways. The Hong Kong-Zhuhai-Macao Bridge was
fully completed, and is basically ready to come into service.
A total of' 127,000 kilometers of inland waterways are open to navigation .
Construction on the 12.5-meter deepwater channel on the lower Yangtze River
beginning at Nanjing is basically completed. Phase IV of the Yangshan Port· in
Shanghai, the biggest single fully-automated container terminal in the world, came
_ into operation. --
7
Airports
Energy
Water
Conservancy
Information .
•
•
•
•
The total number of China's civil airports in service reached 229. Construction on
the new airports in Beijing and Chengdu was accelerated. 11 airports, including ones
in Songyuan in Jilin, Lancang in Yunnan, and Zunyi in Guizhou, were built and
opened.
Installe_d capacity . stands at 340 million. kilowatts of hydropower, 160 million
kilowatts of wind power, and BO million kilowa.tts of solar power.
Construction began on a number of major water conservancy projects, including the
project to divert water from the Jinsha River to central Yunnan. Of 172 planned
major projects, work has begun on 122, with the total investment in ongoing
projects exceeding 900 billion yuan. Finer-optic networks have been built in all prefectui:e-level cities. As part of
. ru1tionwide trials to provide ,wversal telecommunications services in rural areas,
fiber-optic broadba:nd was extended· to 32,000 villages. Mobile rates for domestic·
roaming and long-distance calls were cancelled nationwi4e, and· average download
-speeds for 4G. mobile communications subscribers rose by 40%.
3. We made positive headwqy in suppfy-side structural reform in the agricultural sector, and saw new
drivers for agricultural and rural development coming on stream more quickfy.
We made solid progress in modernizing agriculture, steadily increased the proportion of
agricultural products that are of high quality, and further strengthened the foundation of
agriculture.
1) Structural aefjustments in agriculture were accelerated.
Grain output reached 618 million metric tons; the area of land used for corn kernel
cultivation was reduced by 1.32 million hectares; and the initiative to replace grain crop with
feed crop was expanded to cover over 866,700 hectares. We made strong progress in
developing high-quality farmland and building a number of high-quality demonstration zones
for water-efficient agriculture. The development of functional zones for grain production,
protective areas for the production of major agricultural products, and areas for growing
high-quality, distinctive local agricultural products was advanced. In addition, trials to utilize
and protect China's chernozem soils, develop crop rotation and fallow land practices, and treat
soil contaminated with heavy metals saw further progress, thus helping to better protect and
improve the quality of cultivated land.
2) Agricultural and rural reform registered steacfy progress. We improved the minimum purchase price policy for rice and wheat, deepened the reform
of the corn purchase and storage system, and refined the policy for ensuring base prices for
cotton and soybeans. Excess stockpiles of grain and cotton decreased more rapidly, and
markets for staple agricultural products like grain, cotton, edible oil, and sugar remained stable.
Further, we leveraged the role of the reserves of agricultural materials like chemical fertilizers
and pesticides, and ensured that supply was adequate and prices were basically stable in the
8
agricultural materials market. In terms of the rural collective property-rights system, reform
registered steady progress; so far, contracted rural land-use rights have been determined and
registered for 7 4 million hectares of land. Meanwhile, the rural land reforms for separating
land ownership rights, contract rights, and management rights moved forward in a prudent
manner.
3) New industries and new farms of business in rural areas saw strong development.
E-commerce for agricultural products developed rapidly; farm-based recreation and rural
tourism experienced robust growth; and new types of agribusinesses emerged in ever greater
numbers. We accelerated the integrated development of the primary, secondary, and tertiary
industries in rural areas, established comprehensive demonstrations for introducing
e-commerce into rural areas, fully implemented the "100 counties, 1,000 townships, 10,000
villages" pilot demonstration project to promote rural industrial integration, and built a
number of national modern agricultural industrial parks. From the direct supply and sale of
agricultural products to creative agriculture, educational farms, intelligent agriculture, and
multifunctional agricultural estates, new forms of business are mushrooming in rural areas, and
new drivers for agricultural and rural development are very quickly coming together.
4) Rural living standards and work conditions continued to improve.
We made rapid progress in water conservation in agriculture, with the area of cropland
covered by efficient water-saving irrigation increasing by 1.44 million hectares. Making
headway on the project to build 1 million kilometers of rural roads, a further 285,000
kilometers were built or upgraded, and the dilapidated houses of 1. 906 million rural poor
households were renovated. We sped up the implementation of projects to develop farmland
irrigation and water conservancy, to consolidate and build on progress made in providing safe
drinking water in rural areas, and to build storage and logistics facilities for grain and edible oil,
cold-chain logistics facilities for agricultural products, and public-welfare wholesale markets for
farm produce. We took active steps to develop information infrastructure in rural areas in the
central and western regions and sped up efforts to improve logistics networks at county-,
township-, and village-levels. Work is fully under way on the project to relocate and provide
new housing for residents on the flood plains of the Yellow River's lower reaches.
4. We worked intensive/y on implementing the innovation-driven development strategy, and spurred the
rapid development of new drivers far economic growth.
Focusing on building China into a country of innovators, we further bolstered the role of
innovation as the primary driver of development.
1) Innovation capaci(y continued to improve.
China's investment in research and development (R&D) reached 2.12% of GDP, while the
contribution of scientific and technological progress to economic growth hit 57.5%.
9
% 60.0
59.0
58.0
57.0
56.0
55.0
54.0
53.0
52.0
51.0
Figure 6. Contribution of Scientific and Technological Progress to Economic Growth
54.2
57.5
50.0 +------~----~---~----~---~ 2013 2014 2015 2016 2017
We saw a constant stream of major scientific and technological advances throughout the
year: China's first x-ray astronomy satellite Hutyan was successfully launched; the large
passenger aircraft C919 completed its maiden flight; major breakthroughs were made in the
field of quantum computing; China's first homecmade aircraft carrier successfully took to the
seas; and the first test project for extracting gas from "flammable ice" was successfully
completed in the South China Sea.
Pilot reforms on all-around innovation made further progress as we achieved full
implementation of preliminary trials for 169 measures, of which 13 were implemented on a
nationwide basis. Efforts were sped up to help Beijing and Shanghai build themselves into
science and technology innovation centers, and construction on three comprehensive national
science centers in Huairou . in Beijing, Zhangjiang in Shanghai, and Hefei in Anhui moved
along at a faster pace.
We began work on establishing national laboratories, and made consistent inroads in the
construction of major science and technology infrastructure. There was rapid development in
major national _science and technology projects, and the Programs for Sci-Tech Innovation
2030 Agenda got off the ground. We further fleshed out policies on additional tax deductions for R&D costs, equity-based
incentives for innovation, income tax incentives for personnel who become shareholders
through R&D contributions, and improved methods for defining .new- and high-tech
enterprises. The 17 national innovation demonstration zones and 156 national new- and
high-technology development zones around the country are serving as major platforms and
engines for regional innovative development.
• Communications
Box 3: Major Scientific and Technological Advances
The world's first photon quantum computer, which goes far beyond early classic com uters, was built; the Bei"in -Shan hai Backbone Network, a
10
gender discrimination and discrimination against disadvantaged groups. We will improve the
mechanisms for determining pay levels, allowing for pay rises and ensuring salary payment,
carry out trails to increase personal income and implement special incentive programs, and
deepen reforms in support of change in the income distribution system, to see personal
incomes growing steadily and the income gap between urban and rural residents growing
smaller.
2) We will promote the development ef the multi-tiered social securi!J !JStem.
We will carry out reforms to improve the basic old-age insurance system, and increase
basic pension payments for retirees of enterprises, Party and government bodies, and public
institutions, and basic pension benefits for rural and non-working urban residents. Subsistence
allowances and subsidies for entitled groups will also be increased appropriately. We will pilot
commercial pension schemes that allow for deferred payment of individual income tax, and
transfer in tranches a portion of state capital to top up social security funds. We will take
further steps to integrate the basic medical insurance systems for rural and non-working urban
residents, and improve the insurance scheme for major diseases. We will consolidate and
further improve the mechanism allowing for direct settlement of inpatient medical bills
wherever they are incurred via medical insurance accounts, and connect more community-level
medical institutions to the national information network for basic health insurance. Per capita
government subsidies for basic medical insurance for rural and non-working urban residents
will be further increased. We will develop a nationally unified social security public service
platform, and further improve the systems for social assistance and charity. We will continue to
rebuild dilapidated houses in rural areas and to renovate old residential communities in cities.
3) We will strengthen the capaci!J to supp!J public goods and services.
We will make access to basic public services more equitable, and formulate guidelines on a
system of standards for basic public services. Continuing to prioritize education, we will
deepen comprehensive educational reform, promote coordinated development of compulsory
education in urban and rural areas, and keep working to improve basic conditions in badly built
or poorly operated schools. We will focus on solving pronounced problems in education such
as the heavy extracurricular burdens on elementary and secondary school students, excessively
large numbers of students vying to enroll in popular schools, and large class sizes. We will
increase the provision of public-interest preschool education, and strengthen childcare and
early education services. Further steps will be taken toward making senior secondary education
universal. With a view to deepening integration between vocational education and industry, we
will widen the channels for nongovernmental investment in vocational education and expand
trials of a new type of corporate apprenticeship system as well as a modern apprenticeship
system. We will speed up the development of world-class universities and disciplines. We will
improve education for ethnic minorities, and develop special needs education, continuing
55
education, and online education. In 2018 the retention rate of nine-year compulsory education
is expected to reach 94.2%; the gross enrollment ratio for · senior secondary education is
expected to reach 88.9%; and regular institutions of higher learning are projected to enroll 7 .55
million undergraduate students.
We will go further in implementing the Healthy China initiative, deepen reform of the
medicine and healthcare systems, and promote tiered diagnosis and treatment services. We will
develop community-level medical and healthcare services, build up the ranks of general
practitioners, carry out a new round of plans to improve medical services, and work on
enhancing China's abilities in diagnosing and treating difficult and complicated diseases. We
will improve the system for ensuring medicine sut,plies, and promote and develop traditional
Chinese medicine. The Food Safety Strategy will be implemented.
The elderly care market will be fully opened up, and strong measures will be taken to
ensure the provision of social services for groups that are most in need. We will take concrete
measures to protect the rights and interests of women, minors, persons with disabilities, and
other groups. We will implement the National Population Development Plan, formulate a
medium-to-long-term plan to deal with population aging, improve supporting policies for
allowing couples to have two children, and refine the mechanism for predicting population
trends and issuing early warnings.
We will ensure that the Law on Guaranteeing Public Cultural Services is fully enforced and
a modern public cultural services system is put in place. We will initiate cultural programs
designed to benefit the public, promote the building of community-level comprehensive
cultural service centers, and take solid steps to develop key state cultural programs like the
National Library's national archive of strategically important documents. We will do more to
see that fine traditional Chinese culture is kept alive and further developed. We will ensure that
philosophy and the social sciences flourish, and develop new types of distinctively Chinese
think tanks. We will implement the Fitness for All initiative, raise the popularity of community
sports, and boost development of the sports industry. We will strictly enforce the workplace
safety responsibility system, move forward systemic and institutional reforms on disaster
prevention, mitigation, and relief, strengthen community governance systems, and improve the
public safety system.
4) We will reform the housing {)'Stem and build long-term mechanisms at a faster pace.
In line with the principle that housing is for living in, not for speculation, we will continue
to exercise regulation on a categorized basis and implement policies railored to local conditions,
in order to meet personal-use housing demand and firmly rein in speculative demand. We will
reform. the housing provident fund system, and carry out exploratory work on establishing
state policy-backed financial institutions that specialize in housing. We will develop a sound
long-term mechanism to facilitate the stable and healthy development of the real estate market,
56
Aerospace
Transportation
Energy
Biology
Marine technology
quantum-secured communication network, came into service; and the BeiDou Navigation SateJlite System started to exp'!fid into a global network.
• The Tianzhou-1 cargo spaceship completed a successful flight into space; the first large hard X-ray modulation telescope Hufyan, was successfully launched; and China's Dark Matter Particle Explorer Wukong, detected traces of what are suspected to be dark matter.
• China's homemade airliner, the C919, made its maideo flight; the AG600, an . amphibious'aircraft for firefighting and marine rescue,. completed its first test
flight; and the Chinese0standard high-speed train Renaissance EMU ( electric multiple-unit) for which intellectual propetty rights are under full Chinese ownership, went into s~ce.
• China's artificial sun, the Experimental Advanced Superconducting Tokamak, set a new world record; and the first trial to mine gas from flammable ice was completed successfully in the South China Sea.
• Domestically-developed "sea rice," or saline:alkali tolerant. rice, successfully passed production test; the Chinese Academy of Scieoces unveiled a new germplasm of high-yield rice; and Chinese scientists succeeded in assembling complete active chromosomes through chemi.cal synthesis,
• China's first homebuilt aircraft carrier was launched; the new 10,000-tonne destroyer eotered the water; and the Chinese-made underwater glider Sea Wings set a new world record bv reaching a depth of 6,329 meters below sea level.
2) Entrepreneurship and innovation initiatives rontinued to build momentum.
The State Council Guidelines on Sttengthening the . Implementation of the
Innovation-driven Development Sttategy and Further Advancing Enttepreneurship and
Innovation Initiatives (G.F. (2017] No.37) were promulgated. We supported the establishment
of 92 new national enttepreneurship and innovation demonstration centers, developed 4,298
maker-spaces, 3,255 incubators for technology enterprises, and over 400 business accelerators,
and held the third National Enttepreneurship and Innovation Week and the Innovating China
Tour. A total of 6.074 million enterprises were registered in 2017, a year-on-year increase of
9.9% or an average of 16,600 new businesses per day.
Ten Thousand
1.90
1.70
1.50
1.30
1.10
0.90
0.70
0.50
Figure 7. Number of New Companies Registered per Day
1.66
2013 2014 2015 2016 2017
11
3) Emerging industries flourished. The Development Plan for China's Strategic Emerging Industries during the 13th
Five-Year Plan Period was fully implemented. Major projects progressed smoothly in a variety
of fields, such as integrated circuits, artificial intelligence, big data, the digital economy,
next-generation information infrastructure, civil space infrastructure, general aviation, and new
public-interest health technologies. The value-added of large enterprises in high-tech
manufacturing, strategic emerging industries, and equipment manufacturing grew by 13.4%,
11 %, and 11.3% respectively, which is 6.8, 4.4, and 4.7 percentage points higher than the
value-added of large industrial enterprises.
We worked intensively on the "Internet Plus" initiative, helping to revitalize the real
economy and speed up its transformation and upgrading. Last year saw China setting the pace
for the development of the sharing economy, online shopping, mobile payments, genetic
testing, and other new sectors. The proportion of the population using mobile broadband
reached 81.4%. Online retail sales totaled 7.18 trillion yuan in 2017, an increase of 32.2%.
5. We comprehensively deepened economic structural reform, and unleashed new impetus for economic and
social development. Centering on developing an efficient market and an effective government, we worked
consistently to increase the coverage and depth of reform in major areas and key sectors.
1) &forms to streamline administration, delegate powers, and improve regulation and services made
farther headwqy. In 2017, 127 items of administrative approval by State Council departments or local
governments on behalf of the central government were abolished. Trials to grant market
access on the basis of a negative list were extended to 15 provinces. We released and
implemented the national catalog of professional qualifications and the catalog of
government-set business service fees.
We fully implemented reforms to merge all business licenses and certificates into one
certificate, and made steady progress in extending trials to separate operating permits and
business licenses. The Measures for Managing the Approval and Filing of Enterprise-Funded
Projects were introduced, and 12 sets of laws and regulations were revised, thus helping to
reduce to two the number of preconditions for projects requiring government review and
approval and making possible simultaneous processing for other items requiring preliminary
review and approval. The oversight model drawing on inspections of randomly selected entities by randomly
selected inspectors and the public release of inspection results has been fully adopted in a
range of areas, including pricing, industry and commerce administration, quality inspection,
taxation, and customs. We pressed ahead with the integration of government information
systems and the sharing of government information, achieving the initial outcomes of
12
connecting 71 departments and 32 localities online and implementing data sharing and
joined-up services across 16 key sectors.
2) Reform of State-owned Enterprises (SO Es) and state capital saw positive advances.
Three groups of pilot reforms on mixed ownership have been carried out in 50 SOEs.
The reform to introduce corporate system in SOEs has been basically completed, and the
merging and restructuring of central government enterprises has picked up pace. We steadily
carried out trials to establish state capital investment and management companies, and put in
place the framework of a multi-tiered, categorized management system for executives ill
central government enterprises. Regulation of state-owned assets was further strengthened.
3) Reform in mqjor industries made new strides.
Reform of the electricity industry was accelerated. Pricing reforms for electricity
transmission and distribution were extended to all provincial-level grids, the proportion of
market-based electricity transactions reached 26%, and smooth progress was registered in trials
on raising the number of electricity distributors.
The CPC Central Committee and the State Council's Guidelines on Deepening the
Reform of the Petroleum and Natural Gas Industries were implemented, and reform of the
salt industry continued across the country. We introduced guidelines on further tightening
pricing regulation over monopoly industries, and intensified efforts to oversee and review costs
concerning government-set prices. The first two groups of trials to delink industry associations
and chambers of commerce from the government were completed.
4) Reform of the fiscal, tax, and financial systems made solid progress.
Reforms to share fiscal powers and expenditure responsibilities between the central and
local governments were carried out on a per sector basis, and reform of the budget
management system moved to the next stage. The value added tax (VA1) system was improved,
and the reform to levy a water resource tax was piloted in more areas.
We stepped up reforms in state-owned commercial banks and in development and
policy-backed financial institutions, carried forward reforms to make interest rates and the
Renminbi (RMB) exchange rate more · market-based, prudently advanced the
internationalization of the RMB, and deepened implementation of the management system of
foreign-debt registration for enterprises. Last year also saw the establishment of the Financial
Stability and Development Committee under the State Council, which ensured reform of the
financial oversight system proceeded in an active and prudent way.
5) Price reform was deepened.
Guidelines on comprehensively deepening price reform were published and .implemented.
We made continued efforts to advance price reform in the energy sector, completing the initial
phase in reforming electricity-transmission and -distribution pricing on provincial-level grids,
cutting natural gas city gate prices for non-household users, and setting up a system for
13
oversight of natural gas prices· throughout the industrial chain. Markups on pharmaceuticals
sold by public hospitals were fully abolished and price controls on medical services, like VIP
services, provided by public medical institutions were lifted in an orderly manner. We
accelerated price reform in the transportation industry, and made solid steps in advancing price
reform of water resources.
Electricity
Natural Gas
Box 4: Price Reform in Key Sectors
• Electricity transmission pricing rules, were introduced for trans-provincial and
-regional electricity trnnsmission projects .and regional power grids; and a pricing
1;1echaniS!Il was established for . electricity distributed through local and .
· newly-built grids. Enterprise electricity costs were. cut by around 100 billion yuan
in 2017.
• Oversight was tightened over pipeline transmission prices for gas. Supervision
and auditing of the costs of natural gas transmission through trans-provincial
pipelines began and contributed to a 16% reduction in costs. Natural gas city gate
prices for non-household users fell by 0.1 yuan per cubic meter, and enterprise
gas costs were cut by 16 billion yuan.
· ?dedical Services •
in Public
. l\farkups o_nall pharmaceuticals sold by public medical institutions were abolished
nation..;,;_de, and the prices ofmedical services became ;,,ore ,;tional; initial steps·
Hospitals·
Transportation
Water Resources
Business Service
' . - - '
were taken to set up a new mechanism for subsidizing public medi.cal institutions:
• Regulations on the oversight and auditing of the pricing costs of passenger rail
lines were issued, price controls were lifted on tickets for domestic flight routes
with five or more airline . companies operating on them; adjustments and
improvements were made to the pricing system for delivery of regular packages;
and the pricing mechanism for port services was refined .
•
•
.Solid· progress was made in comprehensive p~cing reforms for wa.ter used in . agriculture, and · a performance evaluation mechanism and · an incentive
·. mechanism: that links performance with fund illocation were put in place: Pricing
reforms were deepened: for water supplies in cities, and guidelines· to ·accelerate·
the establishment · of a system for imposing progressive surcharges on
non-household consumers that exceed water use quotas were issued ..
Central government-set business service fees were reviewed and standardized,
and controls were further eased over prices for citizen-identity authentication
Fees services, transaction services for state sugar and meat reserves, and agency
services for personal visa applications.
6) The market environment became fairer and more competitive.
We rigorously implemented the CPC Central Committee and the State Council's
Guidelines on Improving the Property Rights Protection System and Ensuring the Law-Based
Protection of Property Rights, helped push forward work on formulating the Civil Code, and
released revised regulations on the handling of economic crimes by public security agencies.
Work on developing the social credit system was accelerated: over 60 State Council
departments signed 4 memorandums on jointly providing incentives for good faith and 29 on
14
talcing joint punitive actions against bad faith, and more than 100 measures concerning rewards
and punishments were formulated. We were active in building the government administrative
integrity system and made solid strides in addressing failures to act in good faith in the
government's administration. Development of the review system to ensure fair competition
was accelerated. Protection for intellectual property rights was strengthened.
6. With strong emphasis on the Belt and Road Initiative (BRI), we steadi/y improved the new !JS!ems for
an open ecvnomy.
As we focused on enhancing the levels of what is "brought in" and improving the
composition of what "goes global," deeper, higher-level opening up rapidly unfolded in all
areas of China's economy.
1) Work on the Belt and Road Initiative progressed in an effective, order/y, and e.flicient fashion.
We successfully held the first-ever Belt and Road Forum for International Cooperation in
2017. Under the Belt and Road Initiative, China has so far signed 101 cooperation agreements
with 86 different countries and international organizations. China-Europe freight train services
have registered a total of 6,637 trips-3,673 of these being made in 2017 alone. The
Mombasa-Nairobi railway line has been completed and is in service, construction began on
the Hungary-Serbia, China-Laos, and China-Thailand lines, and work on the Jakarta-Bandung
high-speed line made positive headway. The double-line crude oil pipelining project between
China and Russia was completed. We also made steady strides in the development of the
China-Belarus Industrial Park and the China-Thailand Rayong Industrial Park.
Coordinating
Policies
Connecting
Facilities
Opening Trade
Routes
Facilitating
Fund Flows
Box 5: Progress in the Belt and Road Initiative
• The Belt and Road Initiative has received a positive response and support from
over 100 countries and international organizations. . China has signed BRI
agreements with all of the 16 countries from Central and Eastern Europe. We
also signed independent cooperation agreements with Laos and Hungary.
•
•
•
We accelerated surface, maritime, spatial, and internet connectivity, making
positive progress in building railways, highways, pillar ports, oil and gas pipelines,
spatial information corridors, and cross-border optical cables, as well as
breakthroughs in harmonizing policies, rules, and standards. China is
cooperating with 14 countries from Asia, Europe, and Latin America on building
the Digital (Online) Silk Road.
Cooperation on investment and trade continue to expand. Saudi Arabia was just
one of 8 countries we signed industrial capacity cooperation documents with,
and 7 5 overseas economic and trade cooperation zones have been set up in
relevant countries. We accelerated negotiations on free trade areas. and published
a Maritime Silk Road trade index.
We issued and implemented the General Plan for Providing Financial Support
for the Belt and Road Initiative, helping speed up the development of
multi-tiered support systems for investment and financing. We actively worked to
raise the ability of the Silk Road Fund to support the Initiative, and financial
15
Fostering
Friendship .
•
institutions have made good progress in establishing overseas RMB funds .. We
have concluded bilateral currency swap agreements worth a total of 1.4 trillion
yuan with the central banks of 24 participant countries and regions along the
Belt and Road.
Promoting· person-to-person and cultural exchange and cooperation, we
. ··completed over 40. agreements on science and technology cooperation and over
300 action plans •on cultural exchange with BRI0involvi:d countries; established
35 overseas. Chinese cultural centers, 140 Confucius Institutes, and 135
. E:onfucius·.Classrooms,• as well as 16 .overseas traditional Chinese medicine
centers; and. set up in · partnership 45 international laboratories and. research
centers.
2) Foreign trade saw steaefy recovery and growth.
The total value of goods imported and exported for the year stood at 27. 79 trillion yuan, a
14.2% increase which marked a reversal to the declines of the previous two years. New
business forms and models in foreign ttade enjoyed rapid development. In line with the release
of the Plan for the Development of Services Trade during the 13th Five-Year Plan Period, we
stepped up ttials to develop new approaches in services ttade. Work to promote the
nationwide integration of customs clearance procedutes continued and reductions were made
to import tariffs on a selection of consumer goods.
Trillion Yuan
30
25
20
15
10
5
0
Figure 8. Total Import and Export of Goods
II Export Volume a Import Volume 27.79
25.82 26.42 24.55 24.34
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< '< < <' > > > > • >
2013 2014 2015 2016 2017
3) Utilized foreign investment levels remained stable and witnessed improvements in structure.
We inttoduced policies and measutes to promote greater use of foreign investment and
stimulate its growth, as part of the effort to open China wider to the world. We revised the
catalog of industties open to foreign investment, implemented a negative list system for
foreign investment, and made further sttides in fostering a fairer investment climate for both
16
domestic and foreign entities. We started construction on seven pilot free trade zones in
Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan, and Shaanxi. Non-financial foreign
direct investment totaled US$ 131 billion, up 4% year on year, and utilized foreign investment
in high-tech manufacturing and high-tech services experienced particularly strong growth. The
role of national development zones as a platform for opening up was notably enhanced.
4) Outward investment grew in a standardized and order/y wqy.
We formulated and introduced the Guidelines on Better Guiding and Regulating Outward
Investment, the Management Provisions for Outward Investment by Enterprises, and the
Interim Measures for Reporting on the Registration (Approval) of Outward Investment. At the
same time as tightening regulation over outward investment, these steps have also served to
make it easier. Enterprises' outward investment became more rational, with the bulk of
investments flowing into manufacturing, leasing and business services, wholesale and retail
businesses, information transmission, software, and IT services. Non-financial outward direct
investment reached US$ 120.1 billion in 2017.
1. We made farther strides in coordinated development between urban and rural areas and between regions
and stepped up efforts to foster new growth areas, growth poles, and growth belts.
We strengthened integration and coordination between regions, increased both the quality
and levels of new urbanization, and further expanded and improved the layout of regional
development.
1) Regional development became more balanced.
We stepped up support for economic and social development in old revolutionary base
areas, areas with concentrations of ethnic minorities, and border areas; border areas in
particular secured major progress in development and opening up. The Plan for the
Large-Scale Development of the Western Region during the 13th Five-Year Plan Period came
into effect, and the levels of development and opening up in the western region continued to
grow; 17 major projects were launched over the year, representing a total investment of 494.1
billion yuan. In the northeast, the economy showed more signs of recovery, as SOE reform,
private-sector development, work on improving the business climate, and cooperative
partnerships with areas in the eastern region all gathered pace. The central region continuously
raised its ability to secure dynamic and sustainable development, and has emerged as a new
pillar for national economic growth. In the eastern region, we saw strong and rapid growth of
new economic drivers, and good strides were made in regional cooperation in the pan-Pearl
River Delta. Steady progress was achieved in transforming the economies of resource-depleted
cities, rebuilding independent industrial and mining areas and old industrial areas within cities,
and implementing comprehensive solutions in areas affected by mining-induced subsidence.
State-level new areas further demonstrated the leading role they have to play in development,
and solid advances were made in establishing demonstration zones for the airport economy,
17
industrial relocation, and integrated industrial and urban development. We accelerated
implementation of the National Development Plan for the Marine Economy during the 13th
Five-Year Plan Period.
2) Important steps were taken in promoting the coordinated development of the Beijing-Tiafljin-Hebei
region. Xiongan New Area was officially established, and development of Beijing's
sub-administrative center was accelerated. In work to relieve Beijing of functions nonessential
to its role as China's capital, policies and guidelines were announced and implemented to
control the number of new projects and effectively complete existing ones, and a portion of
general manufacturing enterprises and wholesale markets that were scheduled for relocation
were moved out of the downtown area in an orderly way. Work to finish stretches of highway
that lead nowhere and widen bottleneck sections of road in the region was accelerated, and the
coordinated efforts to prevent and control air pollution delivered positive outcomes. A number
of key projects on coordinated industrial development were completed; and the fund for
coordinated industrial development in the region came into operation.
Box 6: Progress in the Beijing-Tianjin-Hebei Integration Initiative
· Xio~g,m ;New Area ·
Beijing's Sub-Administrative
Center
B~eak:throughs in . Key Areas
Innovation
Public Services
• Important progress .was made in drawirig up development plans, and a basic planning framework . has taken · shape. Initiatives conceroing ecological conserwtion · and · environmental ·· protection, afforestation, and cultural protection were launched.
• The urban design plans and the general plan for Tongzhou District were formulated, and the first-phase construction on the administrative zone was basically completed. Beijing government organs and departments took the lead in relocation.
• We formulated and implemented the work plan on preventing and controlling air polluiion in Beijing, Tianjin, and-26 other cities in the region. In 2017, the
.· . annual ayerage concenttaiiqns. of fine particulate matter (PM2s) in 13 key.cities. across the region were 40% lower than 2013 levels. A total of 79 medical and p~maceutical enterprises have relocated from Beiju:tg to Beijing-Cangzhou Biomedical Park in Cangzho'u. -
• Work on the national science and technology innovation center in Beijing was accelerated. Pilot reforms on all-around innovation have proceeded according to plan, and 18 measures, which produced strong results in the most recent stage, were spread to the rest of the country. Over 200 maker-spaces were established in the region.
• · A total of12 uoiversity·alliaO:ces and 7 university collaborative centers foi innovation were established, and trans-regional, medical consortium, were set up. Over 230 hospitals achieved shazjng and mutual recognition of clinical examination results and medical imaging examinations. Steady. progress was
. made in rovi · · :assistance .thro h airin ams. ·
3) Development of the Yangtze Economic Belt registered positive progress.
Full implementation of the General Plan for Developing the Yangtze Economic Belt was
achieved. The mechanism for cross-provincial consultation and cooperation worked effectively
throughout the year, and we began to see a pattern of well-coordinated environmental
18
protection taking shape. Dedicated campaigns were carried out to regulate illegal ports and
illegal sand mining and to assess the safety of drinking water sources. We moved swiftly to
develop systems for ecological conservation and environmental protection, like negative-list
management and trans-regional cross-section surveys. We worked aggressively on projects to
improve the water environment, restore water ecosystems, and conserve water resources. We
stepped up work on building an integrated multidimensional transportation corridor, making
smooth progress on establishing Shanghai, Wuhan, and Chongqing as major shipping centers
and bringing expressways between Shanghai and Chengdu, Shanghai and Chongqing, and
Shanghai and Kunming into full operation.
Box 7: Progress in Developing the Yangtze Economic Belt
• A plan to delegate the work set. out in the General Plan for Developing the
Yangtze Economic Belt was published, and 11 provinces and. municipalities Plans and Policies along the Yangtze · River also published plans for implementing . the General
Plan. Dedicated plans for ecological cons~rvation and · environmental·
protection were formulated.
Ecological
Conservation &
Environmental
Protection
Integrated
Transportation
Corridor
Coordinated Development
• Dedicated campaigns were launched · to tackle prominent problems impeding
well-coordinated environmental protection, regulate illegal ports and illegal
sand mining, prevent and control chemical pollution along the Yangtze River,
inspect sewage discharged into rivers, assess the safety of drinking water
sources along the Yangtze River, and protect and utilize the Yangtze's shoreline.
A total of 959 illegal ports were wound up, and ecological restoration has been
completed for most these.
• We continued to enhance the functions of the Yangtze golden watercourse.
The main part of the 12.5°metre-deep shipping channel running from Nanjing
to the Yangtze Estuary was completed, and the project to improve the
Jing-River watercourse at the middle section of the Yangtze was completed and
passed acceptance inspection. We moved to standardize ship types, steadily
developed direct ocean-and-river container ttansportatiqn, actively promoted
the building of an integrated transportation network, accelerated regional
integration of customs clearance procedures, and further improved the
mechanism for achieving compatibility in customs clearance procedures along . the Yangtze Rivet
• The consultation and cooperation mechanism, with participation from all 11
(Yangtze Economic Belt) provinces and municipalities and coordination by a
central leading group, is operating effectively. Breakthroughs were made in
coordinated prevention and control of environmental pollution, connectivity
· of infrastructure, coordinated development of industries, and development of
systems for market integration.
4) Steaefy progress was made in developing the Guangdong-Hong Kong-Macao Greater Bqy Area.
The Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation
and Promoting the. De.velopment of the Greater Bay Area was signed, joint efforts to compile 19
a general plan for the development of the area picked up pace, and work on plans to build an
international science and technology innovation center progressed smoothly. The Hong
Kong-Zhuhai-Macao Bridge was fully completed, and is basically ready to come into service.
5) New, people-centered urbanization made solid progress.
We took orderly steps to grant urban residency to more people with rural household
registration living in urban areas, reformed the household registration system, and
implemented the residence certificate system. The percentage of permanent and registered
urban residents reached 58.52% and 42.35% respectively, both up about 1 percentage point
year on year. We continued to improve the structure of urbanization. We moved more quickly
to implement plans for the development·of city clusters such as the Yangtze River Delta, the
middle-section Yangtze region, the Chengdu-Chongqing region, the Harbin-Changchun region,
the Central Plains Economic Zone, and the Beibu Bay Economic Zone in Guangxi; and
completed plans for the development of the Guanzhong Plains region, the
Hohhot-Baotou-Ordos-Yulin region, and other cross-provincial city clusters. We adopted a
market-based, standardized approach to promoting the development of small towns with
unique features and small cities. New urbanization trials made positive headway.
%
Figure 9. Permanent and Registered Urban Residents as a Percentage of the Total Population
70.00 --<>-- Pennanent Urban Residents • • -O• • Registered Urban Residents
65.00
60.00
55.00 ·
50.00
45.00
40.00
35.00 ·
30.00
56.10 57.35 58.52 53~:73~ _ _:54:-~77:...--:0c.:::.---::------oo
42.35 39.90 ~~~? ......... o
35.70 35.90 ..... .o••·······••W\J" o,, • • • • • • • • • • •O • • • • • •
' . 2013 2014 2015 2016 2017
Note: Following the State Council's implementation of the Guidelines on Promoting the Reform of the Household Registration System
(G.F. [2014] No.25) in July 2014, statistical standards for calculating the percentage of registered urban residents were adjusted in 2015.
8. We strengthened energ; and resource consen;ation and environmental protection, and secured new
achievements in promoting green development.
Energy consumption and carbon dioxide emissions per unit of GDP fell by 3. 7% and 5.1 %
respectively, and water consumption per 10,000 yuan of GDP dropped by 5.6%, which means
the three indicators are in line with annual targets.
1) The {YStem for building an ecological civilization developed rapidfy.
Steady progress was made in developing national ecological civilization pilot zones in
Fujian, Jiangxi, and Guizhou provinces. The trials of improving the national system for 20
natural-resource asset management showed positive progress; and Zhejiang, Fujian, Henan,
and Sichuan provinces piloted a system for the paid use and trade of energy consumption
rights. We implemented the emissions permit system nationwide, successfully rolled out the
river and lake chief systems across the country, and made solid headway in implementing a
system of rehabilitation for farmland, grassland, and rivers and lakes. New advances were
registered in implementing the compensation system for ecological conservation: the central
government gave more support to local governments in this regard and more trials were
carried out for trans-regional ecological compensation. The General Plan for Establishing a
National Park System was implemented, with trials moving forward in national parks at the
Yangtze, Yellow, and Lancang river sources, in the habitats of Siberian tigers, Far Eastern
leopards, and giant pandas, and in the Qilian Mountains.
2) Implementation ef the fanctional zoning strategy was deepened.
The CPC Central Committee and the State Council's Guidelines on Improving the
Functional Zoning Strategy and System and the National Land Plan were issued and put into
effect, work on provincial-level land plans was basically completed, the formulation of a new
general plan for national land use began, and supporting measures were further improved.
Solid progress was made in the reform for rolling separate spatial plans of cities and counties
into a single plan. Industrial negative lists for key ecosystem service zones were further
implemented. We improved the long-term mechanisms for monitoring and providing early
warning on the carrying capacity of resources and the environment. We set technical standards
for enforcing ecological-conservation red lines in 15 provinces, autonomous regions, and
municipalities, including Beijing, Tianjin, and Hebei, 11 more on the Yangtze Economic Belt,
and Ningxia.
3) Energy and resources were used more ifftcient(y.
We carried out performance evaluations in relation to 2016 targets and responsibilities for
controlling the total amount and intensity of energy consumption. We implemented the
strictest possible systems for managing water resources, protecting arable land, and using land
economically. We further improved the system for the exploitation of mineral resources, and
began reforming the system for the sale of mining rights. We worked to cultivate and build up
industries committed to energy conservation and environmental protection, and expanded the
top-runner system for energy and water efficiency. We strengthened planning and guidance for
renewable resources, improved the system for extended producer responsibility, started
building centers for the resource-recycling industry, and set evaluation standards for clean
production in key industries.
4) Environmental governance and ecological conseroation were strengthened.
The central government carried out environmental protection inspections m all 31
provinces, autonomous regions, and municipalities. Three major action plans on addressing air,
21
water, and soil pollution were fully implemented. Where possible, we upgraded coal-fired
power, plants to achieve ultra-low emissions, resulting in upgrades on over 700 million
kilowatts of capacity. More than 3 million old and high-emission vehicles were removed from
roads. Centralized sewage treatment facilities were built in 2,198 areas with high concentrations
of industry. We promoted a comprehensive /lpproach to improving mountain, river, forest,
farmland, lake, and grassland ecosystems in key areas such as those at the source of dust
storms affecting Beijing and Tianjin, karst areas under threat from stony deserts, as well as the
sources of the Yangtze, Yellow, and Lancang rivers. Major projects were carried out to return
marginal farmland to forests and grazing land to grassland, protect natural forests, and
preserve biodiversity; over the course of the year, an estimated 15.664 million hectares of land
were afforested. We continued trials on comprehensively managing water pollution in key
drainage basins, agricultural pollution from non-point sources, and former grassland now
under cultivation in transition areas between cropland and grassland, as well as trials on
protecting chemozem soils in the northeast. We implemented plans for sorting household
waste.
5) Efforts to respond to climate change were intensified.
'.I'he national carbon emissions trading scheme was successfully launched. We further
implemented the Work Plan to Control Greenhouse Gas Emissions during the 13th Five-Year
Plan Period, and carried out performance evaluations in relation to 2016 targets on controlling
greenhouse gas emissions. We coordinated and promoted pilots and demonstrations on
low-carbon development, and launched trials for developing climate resilient cities. China
worked proactively to ensure the Fiji Momentum for Implementation was successfully adopted
at the United Nations Climate Change Conference in Bonn. And South-South cooperation,on
climate change registered progress, with the project to set up 10 low-carbon demonstration
zones, launch 100 mitigation and adaption programs, and provide 1,000 places on
climate-change training programs proceeding smoothly.
9. We focused on ensuring and improvingpeople's wellbeing and farther raised living standards.
Upholding our vision of people-centered development, we continued to increase
investment in areas related to living standards.
1) S ignijicant progress was made in the fight against poverty.
Central government funding to subsidize local poverty alleviation programs was increased
by 30.3%. Investment from the central government budget totaled 24.4 billion yuan, and a
further 7.249 billion yuan of loan-interest subsidies were provided to relocate people from
inhospitable areas. A total of 12.89 million people living in rural areas were helped out of
poverty throughout the year, our target of relocating 3.4 million people from inhospitable areas
was reached, and the poverty headcount ratio dropped to 3.1 %. Targeting areas of extreme
poverty and particular groups living in poverty, we made solid strides in poverty elimination by
22
developing local industries, boosting education, employment, science and technology, and
medical services, and providing ecological-conservation subsidies. We stepped up work-relief
programs in poor areas, and provided more support to develop infrastructure and public
service facilities.
2) The soda/ security [YSfem was improved.
Critical progress was made in the top-level design of the old-age insurance system, and the
Implementation Plan on Transferring a Portion of State Capital into Social Security Funds was
released and put into action. We saw good progress in integrating the basic medical insurance
schemes for rural and non-working urban residents. Further, we made an important
breakthrough in enabling patients to settle medical bills incurred in any locality via their
medical insurance accounts, with the establishment of an information network for this service
that connects all provincial-level systems and all localities whose medical insurance funds are
under unified national management.
The system for providing senior-citizen allowances was fully implemented in the country's
31 provincial-level administrative areas and the Xinjiang Production and Construction Corps.
The number of urban workers and the number of rural and nonworking urban residents
covered by the basic old-age -insurance scheme reached 402 and 513 million respectively. Work
began to renovate 6.09 million units of housing in run-down urban areas.
Social
Insurance
Social
Assistance
Service
Capacity
Benefits
• Box 8: Improved Social Security
Work on formulating the Plan on the Central Regulation System for Basic Old-Age .
Insurance Funds was accelerated. The Regulations for Enterprise Annuities were
officially released, and gradual improvements are being made to the persooal account
of workers' basic medical insurance and the system for bringing outpatient
expenditures under unified management.
• Links between the system for medical assistance and serious disease insurance wez:e
strengthened in terms of recipients, payments, services, supervision, and
management. Trials to establish a unified system for subsistence allowances in rural
and urban areas continued to see progress, and a sound, dynamic adjustment
mechanism for rural and urban subsistence allowance standards was established
• More progress was made on ensuring. on-the0spot settlement of medical bills via medical insurance accounts. A total· of 8,499 designated hospitals and medjcal
institutions have been connected to the national information network for this
service, which covers all types of basic medical insurance holders and new-type rural
cooperative medical care participants. Inpatient costs meeting relevant provisions,
whether incun:ed within the patients' home province or not, can now be settled on
the spot via their medical insurance accounts. Sustained efforts were made in trials to
integrate medical and care services for the elderly.
• Basic pension benefits for retirees were raised by approximately 5.5% on average;
government subsidies for basic medical insurance for rural and non-working urban
residents have risen to 450 yuan per person per year. Monthly per capita subsistence
23
allowances were increased to 534.1 yuan for urban residents and 350.9 yuan for rural
residents, up 8.0% and 12.5% respectively year on year.
3) The !JSfem of basic public services was enhanced.
We issued the Plan for Ensuring Equitable Access to Basic Public Services during the 13th
Five-Year Plan Period, and started drawing up the national list of basic public services. The
retention rate for nine-year compulsory education rose to 93.8% and the gross enrollment ratio
for senior secondary education reached 88.3%; government spending on education as a
percentage of GDP once again exceeded 4%. All municipal-level public hospitals joined
medical consortiums, and the number of beds in medical and healthcare institutions reached
5.66 pet 1,000 people. With the Law on Guaranteeing Public Cultural Services officially
coming into effect, we moved quickly to help county-level governments to implement the
national standards for guiding the provision of basic public cultural services and provincial
standards for providing these services. The Guidelines on Public Fitness were implemented.
The Plan for Developing Elderly Services and Developing the Elderly Care System during the
13th Five-Year Plan Period was also put into action. Throughout the year, we worked on
strengthening social security programs to meet basic needs: The number of disabled people
with financial difficulties receiving living allowances and people with serious disabilities
receiving care subsidies topped 10 million, while the number of residents who received
subsistence allowances and extremely vulnerable people whose basic living needs were ensured
reached neatly 60 million. A comprehensive protection and care system was set up for children
left behind in rural areas; and about 500,000 orphans and children with AIDS received
government support. Implementation of the two-child policy continued; and 17 .23 million
babies were born over the course of the year, bringing the total population at year end to 1.39
billion, with a natural population growth rate of 5.32%0.
Public Education
Medical and Health Care
•
•
Box 9: Better Basic Public Services
A unified policy was put in: place which exempts students receiving compulsory education from having to pay tuition and fees and purchase textbooks and introduces a living-expenses subsidy for students from families with financial
. difficulties; inspections and evaluations were· condu~ted on· the implementation of
policies concerning balanced development of compulsory education at county level; an action plan to make senior secondary education universal was carried out; policies
on government assistance were improved; and the subsidy scheme for improving the nutrition of rural students receiving compulsory education was fuJJy implemented" in
all key counties included in the national program to alleviate poverty through
· development The national project on basic public health services was implemented; the medium-to-long-term plan for chronic disease prevention and control was issued and implemented; contracted family-doctor services and medical consortiums were further advanced; and regulation over health management through traditional
Chinese medicine was improved.
24
-- ·• Detailed measures were drawn up to assess aod verify extreme_ poverty, aod policies
providing support for people in extreme poverty were implemented. A_ reasonably
Social universal subsidy -system for senior citizens was established._ Pilot reforms were
Services carried out to develop at-home aod community-based elderly care. Demobilized
military personnel were given support to fu:td jobs or start businesses, with a focus
on making sure this work _was traosparent aod open.
Culture and
Sports
Services for People with Disabilities
Billion
1.395
1.39
1.385
1.38 1.375 1.37
1.365
1.36 1.355
1.35
1.345
• The Law on Guaraoteeing Public Cultural Services was implemented; aod
construction on multipurpose centers for cultural services in communities was fully
under way. National campaigns to promote reading were stepped up. More progress
was made in extending digital wireless coverage of radio and televwion
programming. More public sports complexes were opened up to the public for free
or for a small fee. More nonprofit public fitness activities were organized.
• The second phase of the plao to improve special education begao; aod students with
disabilities from poor families were exempted from paying tuition for 12 years of
education. Basic rehabilitation services were provided to 7.817 million people with
disabilities; support was given to renovate the homes of 890,000 people with
disabilities to increase their livability; and accelerated efforts were made to provide
inclividual subsistence allowaoces for unemployecl adults with severe disabilities.
FigurelO. Year-End National Population and the Natural Population Growth Rate
""'Year-End National Population -0-Natural Population Growth Rates
1.39008
2013 2014 2015 2016 2017
%,
20
18 16
14 12 10 8
6
4
2
0
In assessing economic and social development in 2017, the performance for major targets,
such as economic growth, employment, CPI, and the balance of payments, stayed within an
appropriate range, and there were continued improvements in the performance for targets
reflecting the quality and effect of development, like those concerning innovation and the
people's wellbeing. Overall, the targets in the 2017 Plan were satisfactorily met.
25
Of the 19 obligatory annual tatgets, 16 were achieved, while actual performance fell short
of expectations for three. These were the proportion of non-fossil fuels in primary energy
consumption, the proportion of days with good or excellent air quality for cities at or above
prefectural level, and the proportion of surface water with a quality rating of Grade III or
above. The situation in relation to these tatgets is as follows:
1) Boosted by the turnaround in the industrial sector, thermal electricity generation saw a
notable increase in 2017, and coal consumption registered growth for the first time in four
years. Further, inadequate streamflow was an issue in the first half of the year, which caused
lower growth in hydroelectric power generation than the previous years. Taken together, these
factors resulted .in the proportion of non-fossil fuels in primary energy consumption coming in
at 0.6 percentage point below the planned annual tatget.
2) On the back of a recovery in industrial productivity, emissions increased in 2017. This,
along with unfavorable meteorological conditions in the first quarter of the year, meant that
the tatget for days with good or excellent air quality for cities at or above prefectural level was
missed by one percentage point.
3) The discharge of water pollutants remained consistently high throughout the country in
2017 and there was a year-on-year decrease in average precipitation. As a result, the proportion
of surface water at Grade III quality or above was 0.4 percentage point below the annual
tatget.
For the 13th Five-Year Plan period (2016-2020), these three tatgets are set as increases of
no less than 3, 3.3, and 4 percentage points respectively. During the first two years of this
period, increases of 1.7, 1.3, and 1.9 percentage points have been achieved. We believe that,
with hard work over the next three years, we can still meet the tatgets set out in the 13th
Five-Year Plan.
Of the 46 anticipatory tatgets, the performance of 44 was in line with or better than
expectations; total fixed-asset investment and total import and· export volume of services fell
short of expectations.
The reasons for total fixed-asset investment being lower than the projected figure are:
First, as a result of our commitment to the new development philosophy over the last few
years, we have been paying more attention to improving the structure and efficiency of
investment, while trying to reduce reliance on it. Despite slower-than-projected investment
growth last year, China's economy continued to perform stably and generated good
momentum, an achievement which reflects the work we have done in adjusting the
composition of demand and replacing old drivers of growth with new ones. On the other
hand, under the influence of low returns on investment, unclear prospects for the market, and
a business environment that still awaits further improvement, investment from private sources
and in the manufacturing sector was sluggish, which also contributed to last year's slowdown
26
in fixed-asset investment growth.
The reasons for the total import and export volume of services falling short of the
projected figure are: First, over the last few years, the structure of services trade has further
improved with rapid growth in new forms of business, and strong headway being made in
exploring new ways of conducting services trade. In 2017 service exports increased by 10.6%,
surpassing growth in service imports for the first time in seven years. On the other hand, as a
result of a year-on-year decrease in inbound and outbound tourism and changes in statistical
standards, the growth of the total import and export volume of services slowed and fell short
of the target set at the beginning of the year.
Overall, economic performance in 2017 remained consistently stable with good
momentum for growth, allowing us to take yet another firm step toward securing a decisive
victory in building a moderately prosperous society in all respects. Given the extremely
challenging and complex economic conditions both at home and abroad, China's achievements
in economic and social development have not come easily. They are the result of the strong
leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the result of
the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a
New Era, the result of the cumulative effect of a whole series of important policy decisions
and measures taken by the Central Committee and the State Council since the 18th Party
Congress, and, more importantly, the result of the concerted and persistent efforts of the
Party and the Chinese people of all ethnic groups.
Over the past five years, under the guidance of Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era, all regions and departments have upheld the underlying
principle of pursuing progress while ensuring stability, put into practice the new development
philosophy, fulfilled the goals of the 12th Five-Year Plan, and made smooth progress in
implementing the 13th Five-Year Plan.
First, the strength of the economy has grown substantially. China's GDP rose from 54
trillion yuan in 2012 to 82.7 trillion yuan and grew at an average annual rate of 7.1%,
contributing more than 30% of global economic growth.
Second, the quality and effect of development have significantly improved. Revenue in
China's general public budgets went up from 11. 7 trillion yuan to 17.3 trillion yuan. Per capita
labor productivity rose from 73,000 yuan to over 100,000 yuan. Personal per capita disposable
income increased from 17,000 yuan to 26,000 yuan, faster than economic growth; the
urban-rural personal income ratio decreased from 2.88:1 to 2.71:1. And energy consumption
per unit of GDP was cut by 20.9%.
Third, the structure of the economy has changed enormously. Consumption now
outweighs investment, and the contribution of final consumption to economic growth has
increased by nearly four percentage points. The tertiary industry has contributed far more to
27
growth than the secondary industry, and the service sector has been accounting for an
increasingly larger share of the national economy. As the pattern of regional development has
been continuously improved and the new urbanization initiative has been steadily advanced,
more than 80 million people who have moved from rural to urban areas have gained
permanent urban residency.
Fourth, old drivers have been replaced by new ones at an increasingly faster pace. We have
secured solid progress in supply-side structural reform, effectively improving supply and
demand conditions in the market and the performance of enterprises. By deepening
implementation of the innovation-driven development strategy, we have seen major advances
made in science and technology, including the successful launch of Tiangong-2 space lab, the
commissioning of the deep-sea manned submersible Jiaolong and of the five-hundred-meter
aperture spherical telescope Tia'!)'an, the launch of the dark matter probe satellite Wukong and
the quantum science satellite Mozj, and the test flight of the airliner C919. New industries as
well as new forms and models of business have been constantly emerging, and traditional
industries have been re-energized through transformation and upgrading.
Fifth, the vitality .of various market entities has been unleashed. The business
environment has been steadily improved; protection of property rights has been strengthened;
and greater improvements have been made toward creating a fair and competitive market.
Over the past five years, items requiring government review by departments· under the State
Council have been cut by 44%, the number of enterprise-funded projects subject to central
government approval has been reduced by 90%, and the number of central-government set
prices has been cut by 80%. This period has also seen the flourishing of business startups and
innovations by the general public. On average, the number of new enterprises registered each
day has surged from 5,400 to 16,600, and about 70% of these are still active. This is· a
testament to the growing strength of the internal forces driving economic and social
development.
Sixth, reform and opening up have been wholly deepened. Breakthroughs have been
made in key areas, and general reform frameworks have been built in the major sectors. We
have turned the Belt and Road Initiative from a concept into a reality, strengthened our
position as a major global trader, experienced continual increases in utilized foreign investment,
and watched China's influence in global economic development grow significantly stronger.
Seventh, the wellbeing of the people has been effectively ensured. A total of over 66
million urban jobs were created over the past five years. In the fight against poverty, decisive
progress was made, as more than 68 million people have been lifted out of poverty. A social
security system for urban and rural residents was put in place and access to basic public
services became more equitable.
Eighth, efforts to improve and protect the environment have been intensified. We made
28
remarkable progress in addressing air, water, and soil pollution, and realized a drop of about 30%
in average PM,_5 concentrations in regions where air pollution is a serious problem. Work on
the system for building an ecological civilization has been accelerated and has effected
improvements in the environment
Over the past five years, the historic achievements and' changes in economic and social
development have provided an important material basis for the historic achievements and
changes in the cause of the Party and the country. These achievements have helped win the full
support of the Party and the Chinese people of all ethnic groups for Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era and, in further consolidating their
consensus, have provided a firm theoretical foundation for promoting high-quality
development.
While recognizing our achievements, we are also keenly aware that the international
environment remains complex. Despite optimism that the global economy will continue to
recover, many uncertainties and instabilities persist. The effects of policy adjustments by major
economies are likely to spill over and affect global industry patterns and the flow of capital;
protectionism in international trade and investment is mounting; and geopolitical risks are
nsmg.
Domestically, some acute problems caused by unbalanced and inadequate development
await solutions.
First, China's economic development lacks strong internal drivers. The upgrading of
consumer spending is being impeded by the limitations of supply. While rapid growth in
spending on housing and vehicles has leveled off, it is at present difficult to build up adequate
momentum in other new growth areas, which reflects the need to strengthen the stamina of
consumption growth. Meanwhile, restrictions on market access, surplus upstream capacity, and
squeezed profits for downstream enterprises have sapped investment in some areas.
Second, there are many difficulties in developing the real economy. Government-imposed
transaction costs are still too high for enterprises; pressure from raw-material and logistics
costs is great; financing being difficult and costly to obtain remains a pronounced problem; and
some enterprises, especially small and medium-sized ones, are beset by operational difficulties.
The problem of overcapacity has yet to be solved in traditional industries. The agricultural base
remains weak.
Third, the business environment needs to be enhanced. There is still an array of different
types of permits that are required for market access; unreasonable rules and regulations have
not been promptly or thoroughly rectified in some fields; and obstructions to market access
still remain in the form of "glass doors" of policy without regulation, "swing doors" of hard
and fast rules, and "revolving doors" of additional rules for would-be entrants. Government
initiative in providing services and making them more accessible needs to be strengthened:
29
People and enterprises are still strained by the amount of procedures and length of time it
takes to get things done; and they have yet to derive a stronger sense of fulfillment from
reform.
Fourth, innovation capacity needs to be raised. Basic research, especially basic research in
applied sciences, is weak, and research in special materials, key spare parts and components,
and industrial machine tools is beset by bottlenecks. Entrepreneurship and innovation
platforms call for improvement; there are still some impediments to the implementation of
policies for encouraging the application of science and technology advances; the open sharing
of public scientific and technological resources needs to be promoted; and we need to explore
and gain more experience in regulating new industries and new forms and models of business
in a more accommodating and prudent way.
Fifth, we have a long way to go in protecting the environment. River valleys in some
regions are still heavily polluted, and we need to step up efforts to address air, water, and soil
pollution. Pollution in agriculture and rural areas is pronounced; much of the work on
ecological restoration _is still outstanding; and long-term solid efforts are required to make the
needed improvements to policy systems and to address the inadequacies of institutions and
mechanisms.
Sixth, in work on the people's wellbeing there are still many areas where we fall short. The
fight against poverty remains formidable: the fact that tens of millions of people are still living
in poverty in rural areas and that the large proportion of those are battling extreme poverty
means our fight is only going to get harder. -There are still large disparities in development
between rural and urban areas, between regions, and in income distribution; and those in the
low- and middle-income categories are finding it difficult to increase their income.
People still face difficulties in education, healthcare, housing, employment, and elderly care.
Education is still developing in an unbalanced and uncoordinated fashion; preschool education,
vocational education, special needs education, online education, and continuing education are
still weak points. The structure and distribution of medical services are not rational and the
capacity of community hospitals is weak. The housing support and supply system needs to be
improved. Employment pressure is mounting for college graduates, migrant workers, and
workers laid off due to the phasing-out of overcapacity. The supply of elderly services is
insufficient, and we have yet to adequately improve care services for senior citizens.
Seventh, risks in the financial and other sectors are still pronounced. Risks, in the form of
non-performing loans, bond default risks, and volatility in capital markets, are still high, and·
there are frequent cases of illegal fund-raising and other financial crimes. Social governance
and national security are facing new challenges, and there are also other serious problems and
potential risks that cannot be ignored.
We must take these issues seriously, actively pool the strength of all sectors to respond
30
appropriately, defuse all risks and challenges in a timely manner, and strive to achieve
better-quality, more efficient, fairer, and sustainable development.
II. Considerations, Objectives, and Policies for
Economic and Social Development in 2018
2018 is the first year of putting the guiding principles from the 19th Party Congress into
action; it marks the 40th anniversary of China's reform and opening up policy, and represents a
critical point in securing a decisive victory in building a moderately prosperous society and
implementing the 13th Five-Year Plan.
To make a good job of economic and social development this year, we must follow the
strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core; take as
our guide Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the Theory of
Three Represents, the Scientific Outlook on Development, and Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era; and fully implement the guiding
principles from the 19th Party Congress and the second and third plenary sessions of the 19th
CPC Central Committee. We must implement the Party's basic theory, line, and policy, and
uphold and strengthen overall Party leadership. We must remain committed to the new
development philosophy and the underlying principle of pursuing progress while ensuring
stability; keep in mind the evolution of the principal contradiction facing Chinese society; and
meet the requirement for high-quality development. We need to coordinate the implementation
of the five-sphere integrated plan and the four-pronged comprehensive strategy,* continue to
pursue supply-side structural reform as our main task, and make a coordinated push to keep
growth stable, promote reform, make structural adjustments, improve living standards, and
guard against risks. We need to devote greater energy to reform and opening up, develop new
methods and make improvements in macro regulation, and work hard to see better quality,
higher efficiency, and more robust drivers of economic growth. In particular, we need to
deliver solid progress in our efforts to forestall risks, alleviate poverty, and address pollution,
guide expectations and keep them steady, ensure and improve the people's wellbeing, and
promote economic and social development that is sustainable and sound.
1. General Considerations
We need to firmly grasp a basic characteristic of China's economy at present-its ongoing
transition to a stage of high-quality development. On this basis, with a view to applying the
new development philosophy and moving more quickly to develop a modernized economy, we
should establish an industrial system underpinned by innovation-led and coordinated
• The five-~-phere integrated plan is to promote coordinated economic, political, cultural, social, and ecological advancement; the four-pronged comprehensive strategy is to make comprehensive moves to finish building a moderately prosperous society in all respects, deepen reform, advance law-based governance, and strengthen Party self-governance.
31
development; a unified and open market system featuring orderly competition; an income
distribution system that is both efficient and fair; systems for urban-rural and regional
development that foster local strengths, connectivity, and coordination; a system for green
development that ensures resource conservation and environmental protection; and a system
for all-around opening up that is diverse, balanced, secure, and effective. We must work
practically to transform our economic growth model, improve our economic structure, and
foster new drivers of growth; effectively fight the three battles against potential risk, poverty,
and pollution; and work hard to navigate this critical juncture in China's economic
development and secure major increases in quality as well as effective improvements in growth,
so that we see the ever-growing needs for a better life of our people fulfilled.
First, give top prioriry to qualiry and effect in deepening supp!y-side strnctural reform
We need to make improving the quality of the supply system the main focus of our work.
We should make a major push to slash ineffective supply, .and to foster new growth areas in
medium-high end consumption, th<:! digital economy, green and low-carbon development, and
human capital services. We need to support the upgrading. of traditional industries, accelerate
the development of modern service industries, and replace old growth drivers with new ones
more quickly, in order to attain a dynamic balance between supply and demand at a higher
level.
Second, stqy focused on the right priorities and targets to speed up the building ef an industrial !)Stem that
promotes coordinated development between the real economy and technological innovation, modern finance, and
human resources
We need to enable innovation to play a stronger role in sustaining and leading the real
economy, channel capital toward the real economy, especially new- and high-tech industries and
advanced manufacturing, stimulate among all market entities a drive for innovation and
entrepreneurship, and unleash the initiative, enthusiasm, and creativity of China's scientists,
technologists, and other types of highly-skilled personnel.
Third, proper!y balance the relationship between the government and the market to speed up the
development ef an economy with effective market mechanisms, cfynamic micro-entities, and sound macro
regulation
We should let the market play the decisive role in resource allocation, make the market
environment more conducive to fair competition, and deal with all obstructions, problems, and
headaches that hinder enterprises in setting up and developing. To give better play to the role
of government, we need to develop new methods and make improvements in macro
regulation, give better play to the strategic guidance of national development plans, and
improve mechanisms for coordinating fiscal, monetary, industrial, regional, and other
economic policies.
Fourth, stqy goal- and problem-oriented when focusing on priorities, addressing inadequacies, and shoring
32
up points rf weakness
As we strive for final victory in building a moderately prosperous society in all respects,
we need to coordinate the resources and strengths of all sectors and effectively fight the three
critical battles against potential risk, poverty, and pollution. Staying keenly aware of the
evolution in the principal contradiction facing Chinese society, we need to vigorously
implement the strategies for invigorating China through science and education, developing a
quality workforce, pursuing innovation-driven development, achieving rural revitalization,
coordinating regional development, making development sustainable, and promoting
military-civilian integration.
2. Main Objectives
Keeping in mind the above requirements and considerations, we have set the following
objectives for economic and social development for 2018 on the basis of what is necessary and
what is possible:
-- Economic growth within an appropriate range
GDP is projected to grow by about 6.5%. In making this projection, we have taken the
following into account. On the one hand, given that China's economy is transitioning from a
phase of rapid growth to a stage of high-quality development, the projected growth rate is in
keeping with the current potential for economic growth and reflects our position of not
overemphasizing speed but stressing improvements in the quality and effect of development.
On the other hand, in terms of the goals for building a moderately prosperous society in all
respects and the objectives set out in the 13th Five-Year Plan, a growth rate of around 6.5%
will allow us to ensure that China's GDP in 2020 is double what it was in 2010; it will also help
to guide market expectations and keep them stable.
-- Consistent improvements in the quality an4 effect rf 4evelopment
We will make new progress in supply-side structural reform, accelerate upgrading of the
manufacturing sector, and speed up the development of strategic emerging industries. The
value-added of the service sector is projected to grow by about 7.6%, enabling services to
contribute 52.2% of GDP. The composition of consumption and investment will be improved.
Total retail sales of consumer goods are targeted to grow by about 10%, further boosting the
contribution of consumption to economic growth; and the key role of investment will be
leveraged to improve the supply structure. Total factor productivity will rise, the contribution
of scientific and technological progress to economic growth will reach 58.5%, and R&D
spending as a percentage of GDP will reach 2.16%. The macrosleverage ratio will remain
stable, and well-ordered, effective steps will be taken to prevent and control all types of risks.
Energy consumption per unit of GDP will be reduced by at least 3%, carbon dioxide
emissions per unit of GDP will be cut by 3.9%, and emissions of major pollutants will
continue to fall. Putting greater emphasis on economic indicators that concern structure,
33
quality, and efficiency reflects the requirement to promote high-quality development.
-- Overall stable emplqyment
A total of over 11 million new urban jobs will be created, the survey-based urban
unemployment rate is targeted to be less than 5.5%, and the registered urban unemployment
rate will stay within 4.5%.
In setting the target for job creation, considerations have been made for the number of
students graduating from universities and vocational colleges this year, as well as the need to
provide employment for workers laid off due to the scaling-down of overcapacity and for
demobilized military personnel and migrant rural workers; we have also taken into account
jobs opening up in urban areas as a result of retirements.
In projecting unemployment rates, we have for the first time set an anticipatory target for
the survey-based urban unemployment ·rate, which includes migrant rural workers and other
people without urban household registration. This will allow us to gain a comprehensive and
more accurate picture of the employment situation, orientate work toward resolving the
current structural problems causing unemployment and improving the quality of employment,
and better reflect the requirement that development benefit everyone. We have chosen to use
both the registered and survey-based urban unemployment rates to facilitate a smooth
transition from the former to the latter in the future.
-- Overall stable prices
The CPI is projected to increase by about 3%, which is basically the same as last year.
Keeping this target stable will help us better guide market expectations. At the same time, we
have also taken into account the carryover effect from the CPI increase in 2017 and new
factors that will contribute to price increases this year. These include the downstream
transmission of relatively sharp price rises in raw materials in the most recent period and
increases in the price of services.
--A basic balance in international pqyments
Our objectives are to achieve a steady rise in import and export volumes, keep foreign
direct investment stable overall, and maintain steady and orderly growth in outward direct
investment. These tasks are an essential element in maintaining macroeconomic stability and
an inherent part of our efforts to optimize the investment structure and trade mix, turn China
into a trader of quality, and realize high-quality opening up. This year, the global economy
looks likely to continue its recovery, general increases in international trade are expected to
continue, and the China International Import Expo will be held for the first time, all of which
will contribute to achieving steady growth in foreign trade. However, given the increasingly
fierce international industrial competition and the possibility of China experiencing increased
trade protection and friction, we still have a lot to do to maintain the positive trends in foreign
investment and trade.
34
-- Continued improvement in living standards
The number of people living in poverty in rural areas is targeted to fall by at least 10
million, and about 2.8 million people will be lifted out of poverty by relocating from
inhospitable areas. Increases in both urban and rural personal income will stay basically in step
with economic growth. The percentage of registered urban residents is expected to increase by
one percentage point. Access to basic public services such as education, health, culture, and
elderly care services will be made more equitable; social security coverage will be further
expanded in an effort to achieve access for everyone; and renovations will begin on 5.8 million
units of housing in run-down urban areas. Clearly defining these objectives reflects the
requirement to raise social security benefits and improve living standards, and helps to dovetail
our efforts in this area with the goal of finishing the building of a moderately prosperous
society in all respects.
3. Macroeconomic policies
Fiscal, monetary, industrial, and regional policies will be focused on promoting
high-quality development. With an emphasis on securing progress in the three critical battles
against potential risk, poverty, and pollution and on achieving the 2018 objectives for
economic and social development, we will continue to practice the underlying principle of
pursuing progress while ensuring stability, and will properly handle the dialectical unity
between progress and stability. We will strengthen coordination and collaboration and work on
ensuring the intensity of macro regulation is appropriate. On the basis of range-based
regulation, we will strengthen targeted, well-timed, and precision regulation and make
regulation more targeted, forward-looking, and flexible.
-- Our proactive fiscal polig, while unchanged, will focus on pooling strength and boosting e.fficag.
A debt-to0 GDP ratio of 2.6% is projected for this year, 0.4 percentage point lower than
last year; the government deficit will remain unchanged from last year at 2.38 trillion yuan; and
special bonds for local governments will total 1.35 trillion yuan, 550 billion more than last
year's budgeted figure. We will continue to cut taxes and fees to support the development of
the real economy. Taxes are projected to be cut by more than 800 billion yuan; after charges
and fees undergo further reviews and cuts, we expect to save enterprises and individuals over 1
trillion yuan. To further leverage the role of fiscal policy in promoting structural adjustments
and ensuring living standards, we will work on adjusting the structure of expenditures,
channeling more fiscal support to the three critical battles against potential risk, poverty, and
pollution, to innovation-driven development, to agriculture, rural areas, and rural residents, and
to people's wellbeing, while strictly controlling general expenditures. General transfer payments
to local governments will increase by 10.9% to strengthen their financial capacity, especially
those in the central and western regions.
-- Our monetary poliry will remain prudent and neutra4 with an appropriate level of intensity.
35
Aggregate financing and M2 money supply in 2018 are targeted to be roughly in line with
last year's real growth rates. We will manage money supply well, maintain reasonable growth in
the supply of money and credit as well as aggregate financing, ensure proper liquidity, and
speed up the turnover of funds so that they better serve the real economy. We will effectively
guide interest rates, reform and improve oversight on the cross-border flow of capital, and
keep the RMB exchange rate stable and at an appropriate and balanced level. We will broaden
channels for the ttansmission of monetary policy, and make good use of differentiated policies
for required reserve ratios and credit to guide capital toward small and micro businesses,
agriculture, rural areas, rural residents, and poor areas. We will increase financial support for
innovation-driven development and initiatives to replace old drivers of growth with new ones,
and intensify funding for major national development strategies, reform measures, and projects.
The regulatory framework underpinned by monetary and macro-prudential policy will be
improved, and financial regulation will be enhanced.
-- S tmctural policies will plqy a bigger role.
With a focus on serving national strategies and remedying market failures, we will
underscore the guiding function of our industrial policies, intensify policy support for
improving human capital, protecting intellectual property rights, and incentivizing innovation
in science and technology, and raise energy conservation, environmental protection, safety, and
quality standards that help promote the upgrading of industries and push them toward the
medium-high end. The focus of regional policies will be on addressing unbalanced
development and facilitating the formation of new mechanisms for coordinating development
between regions. This will see policies giving scope to the comparative strengths of each
region, ensuring a well-ordered flow in the factors of production between regions, facilitating
more rapid development in underdeveloped regions, and promoting industrial transformation
and upgrading in developed ones. In addition, we will intensify structural reforms in
production, circulation, distribution, and consumption, make better use of the basic role of
consumption in driving economic growth and the key role of investment in optimizing the
supply structure, and promote rational growth of effective investment, particularly from
private sources.
-- Social policies will be jot11sed on issues concerning the people's wellbeing.
We will stay committed to pursuing a people-centered vision of development and to
ensuring and improving living standards through development. We will do everything in our
capacity to actively respond to the concerns of the people and strive for fresh progress in
ensuring people's access to childcare, education, employment, medical services; elderly care,
housing, and social assistance. We will make social policies more effective in meeting basic
living needs and work hard to see that our people enjoy a greater sense of fulfillment,
happiness, and security.
36
-- New breakthroughs will be made in refonn and opening up.
With overall economic and social stability as a prerequisite, and while working to fully
implement reform measures already issued, we will strive for new breakthroughs in reforms on
SOEs and state capital, monopoly industries, property rights protection, the fiscal, tax, and
financial systems, social security, and other important sectors, placing a strong focus on
improving the property rights system and making the allocation of factors of production more
market-based. Giving consideration to our domestic and international imperatives, we will
move to open the economy even wider and significantly ease market access. We will actively
utilize foreign capital, guide and standardize outward investment, take an active part in
international communication and coordination on macroeconomic policies, work diligently on
adjusting and formulating international economic rules, and move quickly to make new ground
in pursuing opening up on all fronts.
III. Proposed Plans for Major Economic and Social Development Tasks in 2018
This year we will earnestly apply Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era and fully carry out major guidelines, policies, measures, and tasks
put forward at the 19th National Party Congress. In accordance with the requirements of the
Central Economic Work Conference, we will focus our work on the following ten areas.
1. Consistentfy deepening suppfy-side structural refonn
With our focus on growing the real economy, we will spur China's shift from a country
that makes to one that creates, from one that pursues high-speed growth to one that enjoys
good-quality growth, and from one that turns out quantity to one that manufactures quality.
1) We will transfonn and upgrade· the real economy, enhancing both its quality and efficienq.
To deepen implementation of the strategy on building China into a manufacturer of
quality, we will develop Made in China 2025 national demonstration zones, and speed up the
development of service-oriented manufacturing sectors such as innovative design. We will
launch a new round of major technological transformation and upgrading initiatives for
manufacturing, issue a new three-year action plan on enhancing core competitiveness in the
manufacturing industry, and promote. the industrial application of key technologies in nine
critical areas, including rail transit equipment, intelligent robots, and high-end medical
appliances and pharmaceuticals. As part of the push to make China strong on quality, we will
carry forward quality enhancement and standard enforcement programs, promote the
development of new standards in industry, and expand the supply of high-quality products,
engineering, and services. The number of industrial products requiting manufacturing permits
will be slashed, the practice of issuing one permit for enterprises manufacturing different types
37
of products will be applied nationwide, and all products listed on a permit will undergo
verification together. We will accelerate the building of generic technology platforms for smart
manufacturing, and carry out demonstration projects for integrated industry-internet
applications in key sectors. An industry development fund for Made in China 2025 will be set
up. We will formulate guidelines on promoting the demonstration and application of
newly-developed major technological equipment, and speed up the development of
new-energy vehicles and intelligent connected vehicles.
Chinese Brands Day will be held again this year. And in the services sector, we will launch
campaigns to raise quality and promote standardized development, and will encourage the
development of new business models as well as integration across different segments of the
sector. The newly amended Law on Promoting Small and Medium-Sized Enterprises will be
comprehensively enforced.
2) We will take strong measures to foster new drivers of growth.
To promote in-depth integration of the internet, big data, and artificial intelligence (AI)
into the real economy, we will advance the Internet Plus action plan in sectors such as medical
services, elderly care, education, culture, transportation, distribution, and logistics, and
implement the plan for developing next-generation AI. We will build next-generation
information infrastructure, speed up the application of cutting-edge network technologies like
5G mobile and quantum communications, do more to boost broadband speeds and lower rates
for internet services, guide and regulate the sharing economy so that it develops in a positive
and healthy way, and set up a number of demonstration platforms for the sharing economy.
We will launch a campaign to foster innovation-driven development in BeiDou industrial parks,
and continue to build general aviation demonstration zones. We will draw up and roll out
guidelines on developing the digital economy and a policy paper on promoting the
bio-economy, and organize the implementation of major pilot projects on the digital economy.
We will set up a national development fund for strategic emerging industries, and carry out
major projects to promote integrated circuits, new display technology, bio-tech industry, and
intelligent perception of spatial information.
3) We will continue working on the five priori!)! tasks of cutting overcapaci!J, reducing excess inventory,
deleveraging, lowering costs, and strengthening areas of weakness.
We will take stronger steps in relation to the bankruptcy liquidation and restructuring of
"zombie enterprises." We will use a combination of market- and law-based methods to strictly
enforce standards on energy conservation, environmental protection, quality, and safety to
continue cutting overcapacity in the steel, coal, and coal-fired power industries and shutting
down outdated production facilities. This year, we will cut production capacity by around 30
million metric tons of steel and about 150 million metric tons of coal, and shut down coal-fired
power plants with a capacity of less than 300,000 kilowatts that fail to meet standards. We will
38
make explorations on raising steel standards for construction, concentrate on merging and
restructuring steel enterprises, and guard against already-eliminated capacity being brought
back on line. We will strike a balance between the need to cut overcapacity and guarantee
supply, and will strive toward achieving a dynamic equilibrium of supply and demand for coal.
We will support enterprises in using a diverse range of channels to resettle laid-off workers,
and put forward policies and measures on effectively managing enterprise debt Further,
enterprises will face more stringent constraints on debt-to-asset ratios and capital funds, and
market- and law-based debt-to-equity swaps will be stepped up to secure solid progress in
deleveraging SOEs. Tailored measures will be adopted at a local level to encourage new urban
residents such as people from rural areas with newly granted urban residency to buy and rent
homes. In line with the policy to reduce the number of tax brackets from three to two, we will
adjust VAT rates, cut tax rates related to manufacturing and transportation in particular, and
expand the scope of the tax relief policy for small and micro businesses. We will strengthen
measures for regulatiug and overhauling fees that violate laws and regulations. We will step up
efforts to bolster weaknesses in key areas and links in need of attention and take targeted and
effective steps to improve supply with a view toward making growth more sustainable.
4) We will strengthen the development of water, transportation, energy, and other in.frastmcture facilities.
A new package of major water conservancy projects will be launched to see more being
done to bolster weak links, such as management on small and medium-sized rivers and work
on reinforcing dilapidated small reservoirs.
We will speed up construction on the Beijing-Shenyang, Shangqiu-Hefei-Hangzhou, and
Zhengzhou-Wanzhou high-speed railway lines, and begin work on the Beijing-Xiongan and
Hotan-Ruoqiang railways. We will proceed with the building of expressways in an orderly
manner, and support the improvement and renovation of ordinary national and provincial
trunk highways. We will go further in upgrading the river-to-ocean waterway network
comprising trunk and branch routes, making trunk waterways more navigable and raising the
standard of branch waterways. We will make strong progress in the construction of new
airports in Beijing, Chengdu, and Qingdao, and move forward with expanding and renovating
hub airports and building regional airports. For cities where it is feasible, we will back the
well-planned development of urban rail transit The Internet Plus initiative will be leveraged to
make transportation more convenient and raise the overall quality of transportation services.
We will speed up the development of a network of backbone infrastructure for logistics that is
convenient, efficient, green, and safe.
Implementing the Strategy on Revolutionizing Energy Generation and Consumption, we
will move forward pilots on transforming how we generate and use energy, launch a campaign
to make game-changing advances in the field of non-fossil fuels, establish a long-term
mechanism to promote the absorption of clean energy into power grids, and move quickly to
39
make traditional energy clean and efficient. Additionally, we will improve the layout of power
grids and oil and gas pipelines to enhance their connectivity, and bolster natural gas supplies
and emergency reserves of oil and gas.
2. Movingfaster to make China a country ef innovators
We will fully implement the innovation-driven development strategy, further improve
incentive mechanisms for innovation, and keep on building the innovation capacity and
industrial competitiveness of our enterprises.
1) We will improve the national innovation DJ Siem.
We will push forward pilot reforms for all-around innovation, and move as quickly as
possible to assemble a second batch of reform outcomes that can be replicated. We will make
solid progress in building science and technology innovation centers and comprehensive
national science centers, and speed up the building of national laboratories and major national
infrastructure projects for science and technology. We will do exploratory work on establishing
comprehensive national innovation centers for emerging industries, build a number of national
engineering research centers to service strategically important sectors, and continue with
construction on the national manufacturing innovation centers and the state-level enterprise
technology centers. Key enterprises will be encouraged to take the lead in implementing major
scientific and technological projects; research institutes, universities, and businesses will receive
support in pursing integrated innovation; and new types of R&D institutions based on
in-depth integration between enterprises, universities, and research institutes will be fostered.
We will do more to support innovation in small and medium-sized enterprises, implement
policies that provide stocks, options, dividends, and other incentives to scientists and engineers,
and move faster to achieve open sharing of scientific and technological resources like major
national facilities for scientific research and large-scale, costly research equipment.
2) We will see faster breakthroughs in science and technology innovation.
Plans on strengthening basic research, applied sciences, and technology innovation
projects will be formulated. And plans on the replacement and transitioning of major science
and technology programs will also be drawn up, along with policies for the commercialization
and industrial application of major scientific and technological advances. As we expand the
implementation of national science and technology programs, we will underscore innovation
in key generic technologies, cutting-edge frontier technologies, modern engineering
technologies, . and disruptive technologies, and promote faster breakthroughs in studying the
causes of smog and its remedies and the prevention and cure of major diseases like cancer.
Implementing the strategy on developing a quality workforce, we will foster greater numbers
of scientists and technologists in strategically important fields, scientific and technological
leaders, and young scientists and engineers, as well as high-performing innovation teams, and
we will also recruit greater numbers of talented personnel from overseas.
40
3) We will encourage higher-levels of entrepreneurship and innovation across the country.
We will leverage the leading role of large enterprises, research institutes, and universities.
Resource sharing platforms for entrepreneurship and innovation will be established, and the
project to develop 10 & 100 top national demonstration centers for entrepreneurship and
innovation and the project to set up 10 venture capital (VC) alliances, invest in 100 VC funds,
and support 1,000 VC projects will be launched. We will also move forward the initiative of
selecting demonstration cities to serve as entrepreneurship and innovation hubs for small and
micro businesses to encourage the development of innovation-oriented start-ups. We will work
to develop strong links between the commercialization and application of scientific and
technological achievements and start-ups and other innovative ventures by supporting
enterprises, research institutes, and universities in setting up specialized maker-spaces. We will
carry out programs piloting tax relief policies for venture capital and angel investment across
the country, support and guide local governments in improving the financing environment for
small and micro businesses, and develop regulatory systems that cater for innovation. We will
ensure the success of the National Week for Entrepreneurship and Innovation, the Innovating
China Tour, and other events and contests for entrepreneurship and innovation, in order to
continue strengthening the climate of entrepreneurship and innovation throughout the
country.
4) We will farther promote military-civilian integration.
Major demonstration projects for military-civilian integration will be launched across the
board. We will move forward the building of a general public service platform for promoting
this integration and launch a dedicated website. We will establish demonstration zones to
develop new ways of integrating the two sectors, and carry out pilots to enforce national
defense requirements for economic projects, manage demand in military-civilian development,
and commercialize and apply intellectual property rights related to national defense. We will
put into operation the national industrial investment fund for military-civilian integration in
defense-related science, technology, and industry. Additionally, to promote military-civilian
integration in these three areas, we will establish a system for promoting collaboration on
science and technology innovation. We will put in place a system of standards for statistically
measuring and assessing military-civilian integration; support the building of production
capacity in the defense industry; and continue the reform of the airspace management system.
3. Deepening reform in fandamental and critical areas
We will move faster to build an economy that gives full play to the role of the market and
better leverages the role of government in order to unleash the vitality of market entities of all
types.
1) We will continue to amplijj, the benefits from reforms to streamline administration, delegate powers, and
imp.rove regulation and services.
41
With a view to further streamlining administration and delegating powers, we will
undertake exploratory work on formulating lists of powers and responsibilities for
departments under the State Council. We will roll out across the country reforms to separate
operating permits and business licenses, and greatly reduce, across all categories, the number
of permits businesses need to apply for after obtaining a license. We will move forward the
comprehensive reform on coordinated law enforcement, apply to all business activities the
oversight model of inspections of randomly selected entities by randomly selected inspectors
and the public release of inspection results, and promote· joint inter-departmental random
inspections. We will move faster to set up a new type of oversight mechanism featuring
credibility commitments and information disclosure. Government services will be improved
and review and approval processes for construction projects will be optimized. Furthermore,
we will work actively to promote the Internet Plus government services model, integrate
information on the operations of departments under the State Council and upload it to a
national sharing platform, conduct pilot programs on public data services, and offer online
services for more approval processes across more sectors. We will speed up the building of a
system for assessing the business environment and apply it across the country in due course.
2) We will focus on improving the fYStem of proper('y rights.
To ensure equal protection of the property rights of economic entities under all forms of
ownership in accordance with the law, we will work on amending and abolishing laws and
regulations that hinder the equal protection of property rights, identify and investigate in
accordance with the law property disputes, and, with a focus on property rights protection,
promote government integrity-building. These efforts will help to ensure private enterprises
can develop in a supportive and positive atmosphere. Furthermore, we will adopt targeted
measures to encourage and protect the entrepreneurial spirit, improve mechanisms for getting
entrepreneurs involved in policy-making for issues that concern them, and set up law-based
compensation and remedy mechanisms to deal with situations where changes in government
plans or policies impinge on enterprises' lawful rights and interests. Reforms on the integrated
management of intellectual property rights will also be piloted.
3) We will speed up reforms to promote the market-based allocation of production factors.
We will move forward with the reform of the household registration system and other
related reforms such as public service reform. Work to improve the secondary land market will
be accelerated. We will carry out comprehensive reform of the investment and financing
systems, deepen the reform of the review and approval system for enterprise-funded projects,
advance pilot mechanisms that allow for the approval of enterprise-funded projects on the
basis of an undertaking, and set up a sound law enforcement system for enterprise investment
oversight and an inspection system for government investment projects. Moving forward with
reforms to promote market-based trading of public resources, we will establish a system of
42
platforms for sharing tracling data. We will pilot the spot tracling of electric power and reforms
related to natural gas distribution and sales, advance the reform of mining rights transactions,
improve the system for petroleum and natural-gas exploration and exploitation and relax
relevant controls in an orderly manner, and draw up implementation plans for reforming
systems and institutions in key areas such as the operation of oil and natural gas pipelines. We
will strengthen cost monitoring and inspection for government-set prices, and deepen price
reforms of monopolized Jinks in sectors such as electricity, natural gas, urban and agricultural
water supply, medical services, and railway transportation, as well as the reform of pricing for
public services.
4) We will build a market {/Stem that ensures fair and orderfy competition.
We will fully implement and keep improving the negative list system for market access in
order to clear away discriminative restrictions and hidden barriers and expand market access
for private investors. We will review all regulations and practices and abolish those that disrupt
the unified market and fair competition, fully implement the fair competition review system,
and enhance law enforcement to counter monopolistic pricing. We will formulate a sound
system of credibility-related regulations and standards, improve mechanisms for provicling
joint incentives to those who act in good faith and taking joint punitive action against those
who act in bad faith, and move faster in builcling the social credit system.
5) We will deepen the reform of SOEs and state capital
We will improve the system for managing state-owned assets of all types, work faster to
shift the focus of state-owned asset supervisory and management authorities to the oversight
of state capital, and reform the system for authorized operation of state capital. We will speed
up work to improve the layout of, make structural adjustments to, and strategically reorganize
the state-owned sector of the economy, promote complementarity among enterprises with
different ownership structures with a focus on the role of capital, and raise the competitiveness,
quality, and scale of state capital. We will advance the reforms to diversify SOE shareholders
and introduce mixed ownership for SOEs in a prudent manner, with pilots on mixed
ownership being deepened in key sectors; and we will strive to foster world-class, globally
competitive enterprises.
Management of
State-Owned
Assets
Authorized
Operation of
State Capital
Box 10: Comprehensive Reform of SOEs and State Capital
•
•
We will improve the systems for managing state-owned assets, and encourage
relevant agencies to shift their focus onto how state capital is used. We will improve_ the budgeting system for state capital operations.
We will deepen trials on investment and operation of state capital, begin trials on
investment and operation of state capital with the State Council's authorization,
and support and encourage local governments in reforming the system for
authorized operation of state capital according to actual conditions.
43
Raising the Competitiveness,
Quality, and Scale of State .
Capital
Mixed-Ownership
Reform of SOEs
· • · We will set up sound. ·market-based· exit mechanisms that ensure only the
strongest survive, and· move faster to deaL :with inefficient · and. ineffective
state-.owned assets. Market-based m"""1s will be used to transform theJormation
of St/'te capital. ,We will work. to cb"/lllel state capital to impqrtant sectors and crucial fields that concern national security, the lifeblood of the economy, our
coun:try's stability, and our pe~ple's wellbeing; and. to key infrastructure, to
pioneering and strategic industries, and to well-devel~ped enterprises that have
core competiiiveness. We will steadily move forward with strategically
· reorganizing central government enterprises in selected sectors where conditions
allow.
• We will carry out equity diversification at the parent-company level in selected
suitable central government enterprises, and actively and prudently advance
mixed ownership reform of commercial SOEs in industries and sectors that are
fully competitive. We will enhance the corporate governance for enterprises
under mixed ownership, and carry out explorations on systems of special right
stock. We will systematically summarize the experiences from programs to pilot
the granting of equity stakes to employees in mixed-ownership, state-controlled
enterprises,,expand the coverage of these pil?t programs, and set up long-term
incentive and restraint mechanisms.
6) We will prudentfy move fonvard reform of the fiscal tax, and financial !)'Stems.
We will advance the reform on defining the respective financial powers and expenditure
responsibilities of the central and local governments, and formulate a reform plan for revenue
sharing. We will deepen reform of the budget management system so that a bigger share of
the budget for state capital operations is transferred into the general public , budget,
performance-based management is in place across the board, and government funds are used
more efficie_ntly. We will reform the personal income tax system so it is based on adjusted
gross income and specific types of income. We will improve local tax systems and help
progress legislation on real estate tax. Accelerating financial system reform, we will improve
the corporate governance of financial institutions, deepen market-based reforms of interest
rates on deposits and exchange rates, set up mechanisms for setting target interest rates and
rate corridors, promote the sound development of the multilevel capital market, and increase
the share of ditect financing, particularly equity financing.
4. Delivering solid progress in the critical battles against potential risk, pover()I, and pollution
We will marshal the strength of all sectors, put in place strong measures, and focus on
boosting our ability to prevent and withstand risks, meet higher standards in eradicating
poverty, and resolve prominent envitonmental problems.
1) We will focus on guarding against and defusing major risks.
In strengthening financial risk prevention and control, the role of the State Council
Financial Stability and Development Committee will be fully leveraged and sound systems and 44
a policy framework for macro-prudential regulation will be established. We will effectively
guard against and deal with non-performing bank loans, strengthen regulation of weak links
such as shadow banking, and steadily push forward with the campaign to deal with risks posed
by internet financing. We will crack down hard on illegal fundraising, financial fraud, and other
activities that violate regulations and laws, regulate student loans and cash loans, and ensure
consumers' rights and interests are protected.
We will effectively strengthen local-government debt management, reduce the debt
overhang in an active yet prudent fashion, curb debt increases, and forbid any kind of bond
issuance or undertaking that violates regulations and laws. We will speed up the work to
improve the national strategic goods reserve system. We will establish sound systems for
identifying, monitoring, and issuing early warnings on risk, improve our emergency response
mechanisms, and provide stronger interpretations for major policies, in order to appropriately
guide market behavior and public expectations.
2) We will make solid strides in targeted pover!Ji alleviation.
We will formulate guidelines on the three-year initiative for winning the battle against
poverty through targeted measures, and fully implement the action plan for increasing support
for areas of extreme poverty and eliminating poverty in all poor counties and regions. We will
advance poverty-alleviation initiatives for local-industry development, education and health,
and environmental improvement. And we will target infrastructure construction and the
development of public service systems in poor villages.
We are committed to ensuring that, as well as lifting people out of poverty, our help also
encourages them to pursue ambitions and develop skills. In line with this, we will establish
effective long-term mechanisms that deliver steady progress and prevent people from relapsing
into poverty, work with people and areas struggling with poverty to boost their capacity for
self-sufficient development, and provide stronger targeted assistance for specific groups
affected by poverty such as senior citizens, people with disabilities, and people with serious
diseases.
We will amplify work-relief programs in extremely impoverished areas. In doing so, we
will focus on supporting the construction of small and medium-sized public benefit
infrastructure in poor villages in Tibet; in the four prefectures of southern Xinjiang--Kashi,
Hotan, Kirgiz Autonomous Prefecture of Kizilsu, and Aksu; in Tibetan ethnic areas in the
provinces of Sichuan, Yunnan, Gansu, and Qinghai; and in Linxia Prefecture in Gansu,
Llangshan Prefecture in Sichuan, and Nujiang Prefecture in Yunnan. We will encourage eastern
and western regions to deepen their collaboration on poverty reduction. In addition, we will
strengthen assessment and supervision of poverty alleviation work, and take tough steps to
investigate and punish anyone who misappropriates or diverts funds, commits fraud, massages
the figures, or does anything else to violate regulations and laws.
45
3) We will continue to intensijj pollution prevention and control.
We will formulate and implement plans for winning the battle against pollution and an
action plan for making our skies blue again, in an effort to sustain the forward momentum in
preventing and controlling air, water, and soil pollution. We will increase the supply of clean
power; steadily advance major projects aimed at cutting coal consumption, such as those to
promote the use of shallow geothermal energy, the upgrading of coal-fired steam boilers to
make them energy efficient, and the recovery of waste heat for household heating; and steadily
move forward with adopting clean energy sources for winter heating in northern China based
on local circumstances. We will make structural adjustments in the transportation sector to
accelerate the development of multimodal transportation and increase the proportion of
railway transportation. We will strengthen coordination on preventing and controlling pollution
between regions and within regions like the Beijing-Tianjin-Hebei region where pollution is a
key concern. We will take strong measures to lower PM25 concentrations and cut the number
of days with heavy air pollution.
· As part of our focus on clean water initiatives, we will conduct a full inspection of
protected zones with centralized drinking water sources, deal with black, malodorous water
bodies in urban districts, speed up construction on sewage treatment facilities, and do more to
prevent and control agricultural pollution from non-point sources. We will step up control of
soil pollution and restoration of polluted land, and identify and address risks on farmland
contaminated by heavy metals from mines and industrial enterprises in key areas. We will
improve the treatment of solid waste and refuse and resolutely prohibit foreign garbage from
entering China. We will continue to reform the emissions permit system, put into action the
plan to ensure that all emissions from industrial sources are within standards, and strengthen
the accountability of polluters. We will improve systems for credibility assessment in relation to
environmental protection, for mandatory release of environmental information, and for
imposing severe punishments for environmental violations. We will focus on resolving
pronounced environmental problems which affect people's health and cause strong public
dissatisfaction.
5. Implementing mqjor measures for the mral revitalization strategy
We will continue to prioritize the development of agriculture and rural areas,
simultaneously promote new urbanization and rural revitalization, and speed up the
development of a new type of relations between industry and agriculture and between urban
and rural areas in which industry and agriculture promote each other, urban and rural areas
reinforce each other, and all-around integrated development and common prosperity is
achieved.
1) We will improve top-level planningfor integrated urban-mral development.
We will formulate and implement the National Strategic Plan for Rural Revitalization, and
46
guide localities in developing corresponding plans, with a focus on ensuring formulation and
implementation at county level. We will formulate guidelines on establishing sound systems,
mechanisms, and policies for integrated urban-rural development, actively promote unified
planning to achieve a rational industrial layout and effective infrastructure connectivity, and
channel a flow of urban capital, technology, talent, and other factors for promoting
modernization into agriculture and rural areas.
2) We will deepen reforms across the board in f'llral areas.
We will consolidate and improve the basic rural operation system, advance reform of the
rural land system, basically complete the work to determine, register, and certify contracted
land rights, and unveil detailed measures for extending rural land contracts for another 30 years
when the second round of contracts expire. We will improve policies on idle land designated
for housing and vacant dwellings in rural areas, and explore reforms to separate ownership,
qualification, and use rights for residential land. We will enhance measures for ensuring that
cultivated land given over to nonagricultural use is replaced with land of an equivalent amount
and quality. With a view to improving our agricultural protection and support systems, we will
look to build on trials on catastrophe insurance under way in 200 major-grain producing
counties by selecting a number of these counties to pilot full cost insurance for rice, wheat,
and com. We will deepen the reform of rural collective property rights, collective forest tenure,
state forestry regions and farms, state farms on reclaimed land, and rural supply and marketing
cooperatives, so that farmers' property rights are protected and the collective economy is
developed.
3) We will guarantee national food see11rity.
We will work faster to establish and develop grain-producing functional zones and
protected areas for the production of major agricultural products, and advance agricultural
infrastructure construction with a focus on developing high-quality farmland. We will step up
implementation of the high-quality grain project, construct more facilities for ensuring security
and responding to emergencies, and enhance systems for monitoring and giving early warnings
about food production and reserves and for ensuring food supplies during emergencies. We
will move forward reform of the system for purchasing and stockpiling agricultural products,
improve the policy for setting minimum state-purchase prices for rice and wheat, move faster
to reduce excess stockpiles of policy-supported grain, and refine price-setting mechanisms for
sugar. We will reform and improve the system for managing central government grain reserves,
work on formulating legislation to guarantee food security, and strengthen supervision over all
dimensions of grain distribution. We will improve the system for stockpiling agricultural
supplies and make it more integrated.
4) We will establish modern industria~ production, and business operation !]Stems far agrie11/ture.
We will move forward agricultural supply-side structural reform and speed up the
47
transition from high-output to quality-oriented agriculture. We will carry out the rural industrial
revitalization initiative, make a major push to develop modernized farming, forestry, livestock,
and fishing industries, develop a number of state-level regions with strengths in producing
specialty agricultural products, and take steps to boost. the export of these kinds of products.
We will encourage the recycling of agricultural waste and step up efforts to build national pilot
demonstration zones for sustainable agricultural development. We will support the research,
development, and application of technologies for growing environmentally friendly crop
breeds, implement initiatives to make the modern seed industry more competitive and boost
the quality and safety of agricultural products, and expand trials to rotate crops and keep land
fallow. We will accelerate research and manufacturing for large combine harvesters, new-type
high-performing tractor models, and other advanced practical agricultural equipment.
To deepen integration of primary, secondary, and tertiary industrial development in rural
areas, we will take strong steps to promote the digital agriculture, Internet Plus agriculture, and
the application of remote sensing technology and build national demonstration parks for
integrated industrial development in rural areas. Further, we will launch projects to foster new
types of agribusiness and develop a diverse range of appropriately scaled agricultural
operations.
5) We will work on making the countryside more beauttfol and conifortable to live in.
We will speed up improvements to rural infrastructure for water conservancy,
transportation, communications, power, environmental protection, and logistics; organize
demonstrations to install 1 00M fiber optic networks in rural areas; and work harder to
guarantee safe drinking water in rural areas. We will steadily implement the three-year action
plan to improve rural living environments, and carry out the project to protect agricultural
resources and the environment. The "toilet revolution" will continue, and we will ensure river
basins in rural areas are clean and adopt a step-by-step approach toward realizing overall
improvements in mountains, rivers and lakes, forests, farmland, roads, and housing in rural
areas. We will build or update 200,000 kilometers of rural roads, and pave the main roads to
another 5,000 villages. The rural public service system will be improved. We will boost
protection for ancient towns, traditional villages, and traditional architecture, improve the plans
for developing the countryside, and stop the large-scale demolition and construction of
buildings.
6. Implementing the coordinated regional development strategy
We will strengthen tailored guidance, develop more detailed regional policies, step up
support and assistance to key areas, and work to narrow the development disparities between
regions.
1) We will promote coordinated development between regions.
We will increase support for old revolutionary base areas, areas with concentrations of
48
ethnic minorities, border areas, and poor areas, to boost construction on transportation, water
conservancy, energy, communications, logistics, and other major infrastructute projects. We will improve and implement policies and measures for supporting development in Xinjiang, Tibet,
and the Tibetan ethnic areas in the provinces of Sichuan, Yunnan, Gansu, and Qinghai, and
deepen one-to-one assistance programs for these regions and areas. We will step up support
for people in border areas with a view to ensuring our frontier is strong and secure.
We will open the western region wider to the outside world, formulate new guidelines for
its large-scale development, and advance the construction of experimental zones for
development and opening up in major border areas as well as experimental zones for an open
inland economy in the provinces of Guizhou and Ningxia.
We will deepen reforms to accelerate the revitalization of old industrial bases in the
northeast and other parts of the country, promote a comprehensive cooperative partnership
between the northeast and the eastern region, and guide resource-dependent cities in fostering
new growth drivers.
Leveraging local strengths, we will drive the rise of the central region, and speed up its
development as the country's key advanced manufacturing center and as a priority area for new
urbanization, a core area for modern agricultutal development, a demonstration area for
ecological progress, and a key area for comprehensive opening up. We will formulate and
implement the plans for developing eco-economy belts along the Huai and Han rivers.
We will support the eastern region in leading the way in optimizing development through
innovation, and promote integrated development in the Yangtze River Delta and regional
cooperation and development in the pan-Pearl River Delta. We will unveil an overall
development plan for the Grand Canal cultutal belt.
We will formulate guidelines and an implementation plan on pursuing coordinated land
and marine development and accelerating the drive to build China into a strong maritime
country, and advance the development of marine economy demonstration zones. We will take
comprehensive measures to improve the environment in river basins and offshore areas, move
forward projects for the desalinization of seawater, and issue guidelines on strengthening
regulation and control to ensure appropriate and effective land reclamation in coastal areas.
We will promote the sustainable and sound development of state-level new areas, and take
strong, sequenced steps to develop demonstration airport economic zones, demonstration
zones for industrial relocation, and demonstration zones for integrating industrial and urban
development, in order to give full play to the role of new engines, new models, and new
patterns.
2) We will pursue coordinated development for the Beijing-Tia,yin-Hebei region, with the focus on relieving
Beijing of .functions non-essential to its role as China} capital.
In keeping with the principle that forward-looking plans and high standards be applied in
49
building the Xiongan New Area, we will formulate and implement a development plan and
guidelines on deepening reform and opening up and break ground in the construction of a
number of key projects. We will move faster in developing Beijing's sub-administrative center
and proceed with relocating municipal-level government agencies and administrative
departments there in an orderly and prudent manner. With a focus on· relieving Beijing of
functions non-essential to its role as China's capital, we will carry out work on relocating
people in a well-ordered way, while ensuring the city's occupational structures remain rational
In optimizing resource allocation· in the Beijing-Tianjin-Hebei region, we will promote
cooperation in building industry parks catering to local advantages, strengthen regional
cooperation on pollution prevention and control, consolidate and build on the initial
breakthroughs made in the three major areas of transportation, ecological conservation, and
industrial development; and strive . for substantive progress in social programs, resource
guarantees, and other areas.
3) We will advance the development of the Yangtze Economic Belt, giving priority to ecological
conservation and green development.
We will move faster to adopt a coordinated three-fold approach of controlling water
pollution, restoring water ecosystems, and conserving water resources. We will step up the
campaigns to curb illegal ports, illegal sand mining, and chemical industry pollution, and
coordinate efforts in improving major tributary basins. · We will improve systems for
cross-section water quality monitoring and early warning, for ecological compensation in
drainage basins, and for negative-list management. We will execute key projects for ecological
restoration and environmental protection, take strong measures on restoring the ecosystems of
forests and wetlands and protecting aquatic biodiversity, and put an end to all forms of fishing
in the aquatic life protection zones in the Yangtze valley. Pilot demonstration programs for
green development will also be implemented. We will accelerate the development of combined
river-ocean shipping, improve the system for multimodal transportation, and implement
programs to free up bottleneck sections of road and complete any unfinished sections of
expressways.
4) We will activefy promote the development of the G11angdong-Hong Kong-Macao Greater BqyArea.
We will formulate and implement the Development Plan for the Guangdong-Hong
Kong-Macao Greater Bay Area, and work faster to put in place mechanisms for coordinating
development. We will promote infrastructure connectivity, and develop a network of major
cities serving as drivers and trunk transportation lines serving as pillars for overall development.
We will establish international centers for science and technology innovation and globally
competitive modern industrial systems, and build co=unities that are comfortable to live,
work, and travel in. We will move forward with opening up and developing Qianhai, Nansha,
and Hengqin, and see that they fulfill their role as the three major platforms for piloting and
50
leading development in the greater bay area.
5) We will advance the new, people-centered urvanization model
We will accelerate the implementation of the plan to grant urban household registration to
100 million people, lift restrictions on granting urban residency, and fully implement supportive
policies for linking the increase in transfer payments and the amount of land designated for
urban development to a local government with the number of residents who have been newly
granted urban residency. We will implement the residence card system nationwide, and
encourage localities with suitable conditions to expand the scope of public services available to
card holders and improve service standards. We will enhance the mechanisms which allow
former rural residents who have been granted urban residency to voluntarily transfer certain
rights in return for compensation, including contract rights for rural land and rights to share in
proceeds from rural collective undertakings, and carry out exploratory work on allowing rural
residential land to be given up voluntarily for compensation.
In developing city clusters, we will implement all plans, raise quality standards, and move
forward with the development of networks of different-sized cities; we will see that steady
progress is made in upgrading counties into cities and pursuing sound development for small
cities and towns with unique features. We will speed up the development of urban drainage
and rainwater control facilities and utility tunnels, and take strong steps to see the development
of green cities, smart cities, eco-friendly garden cities, and cities of culture.
7. Ensuring ronsumption and investment play effective roles
We will expand consumer spending and promote effective investment to create a
beneficial cycle of improvements to the supply composition and appropriate expansions in
aggregate demand.
1) We will improve !)Stems and mechanisms for promoting ronsumption.
We will continue the Ten Initiatives for Boosting Consumer Spending, support
nongovernmental participants in providing medical, elderly care, educational, cultural, and
sports services, and promote the integration of the internet into service sectors such as elderly
care, medical services, housekeeping, and express delivery. We will provide strong support to
the health industry and develop a high-quality supply system for elderly care services. We will
work to improve the quality and expand the size of the domestic services sector, and
encourage greater levels of professionalism among those working in the sectot
2) We will active/y expand new growth areas in consumer spending.
To support the consumption of new-energy vehicles, we will encourage local governments
to make it easier for consumers to purchase and use new-energy vehicles. We. will expand the
trials for parallel import of vehicles, and encourage and guide consumption in products that
are energy-saving, environmentally friendly, and low-carbon. We will promote consumption for
smart-home products, wearable devices, and other emerging information goods and services,
51
and drive growth in other new areas of consumption like digital homes, online custom
tailoring, and experience sharing services. We will promote digital consumption, and accelerate
the integrated development of e-commerce and physical store sales. To boost tourism
consumption, we will introduce a promotion plan for inbound tourism, lower ticket prices at
major state-owned scenic attractions, strongly promote all-for-one tourism, and develop
cruise-liner tourism.
3) We will farther improve the consumer environment.
We will regulate and guide the rational, orderly development of bike-sharing services and
other new forms of consumption, and abolish policies restricting the transfer of second-hand
cars between different regions. We will work to ensure that products sold domestically are
produced on the same production lines, meet ·the same standards, and are of the same quality
as exported ones, and that China's time-honored brands are developed and kept alive. We will
set up mechanisms to allow consumers participate in work on setting standards. We will speed
up the development of a system for tracing important products, and take stronger steps to
investigate infringements of consumer rights in key industries and sectors and hold those
involved accountable. To strengthen market regulation, we will launch joint cross-industry and
trans-regional campaigns to combat counterfeiting and create an environment in which
consumers can shop with peace of mind.
4) We will improve the composition of investment, with the fact1s on key areas xx.
Government investment will continue to play a leading role, with investment from the
central government budget totaling 53 7 .6 billion yuan for the year, an increase of 30 billion
yuan over last year. Greater support will be provided to agriculture, rural areas, and rural
residents, to promoting innovation-driven growth, environmental protection, and
improvements in people's wellbeing, and to building security capacity. We will take stronger
steps to develop infrastructure networks for water conservancy, railways, highways, waterways,
aviation, pipelines, power grids, information, and logistics. Regulations on government
investment will beissued. We will fully implement policies and measures in support of private
investment, create a stable, transparent, and fair investment environment, and support the
entry of private capital into oil; natural gas, telecommunications, and other sectors; We will
regulate and promote the application of the PPP model in an orderly fashion to encourage the
participation of private capital, put idle assets to use through a variety of channels, and
leverage the recovered funds to shore up areas of weaknesses, so as to create a sound
investment cycle.
8. Making new advances in opening up on all .fronts
Continuing to place equal emphasis on "bringing in" and "going global," we will move
faster to cultivate new strengths in international economic cooperation and competition.
1) We will activefy push fanvard the Belt and Road Initiative.
52
We will establish a sound long-term mechanism to ensure the agreements and plans made
at the Belt and Road Forum for International Cooperation are fully carried out. We will
continue to promote international cooperation on the Belt and Road Initiative and
complementarity between the development strategies and plans of participating countries. We
will speed up the construction of railways, highways, telecommunications networks, power
grids, ports, industrial cooperation parks, and energy infrastructure, and strengthen the
connectivity of policies, rules, and standards of countries involved in the Initiative. We will
promote the healthy and orderly development of China-Europe freight train services. We will
continue to develop the Digital (Online) Silk Road and set up space information corridors and
see they are put to good use. We will deepen cultural exchange and cooperation and strengthen
security risk prevention and control.
2) We will take solid steps to make China a trader of quality.
To more quickly increase the quality and added value of exports, we will encourage the
export of new- and high-technology, equipment manufacturing, and Chinese-brand products.
We will promote a balance in foreign trade by actively expanding imports and lowering import
tariffs on certain products such as automobiles and some non-durable consumer goods. Trials
will be expanded to develop the services trade through innovation, and cities that are
trendsetters in providing outsourcing services for foreign clients will play a stronger role in
driving the development of their surrounding areas. We will promote the development of
demonstration centers for the transformation and upgrading of foreign trade, as well as trade
platforms and international marketing service networks, support the central and western
regions and northeast China in receiving processing industries that · are relocating, and
encourage the development of "enclave economies." We will foster new forms and new
models of trade and support the healthy development of new sectors such as cross-border
e-commerce.
3) We will promote steatfy growth in the use qf foreign investment and improve its composition.
We will apply the management model of pre-establishment national treatment plus a
negative list in all sectors. We will relax restrictions on market access in an orderly fashion,
expanding the scale of opening up in finance, telecommunications, education, and other
sectors,. while fully opening up the general manufacturing sector. We will improve laws
concerning foreign investment and protect the legitimate rights and interests of foreign
investors. Promoting the development of pilot free trade zones in accordance with high
standards and quality requirements, we will hand over greater decision-making power in reform
to these zones and carry out exploratory work on setting up free trade ports with Chinese
features. We will take active and prudent measures to promote bidirectional opening up in the
capital market, and improve unified, macro-prudential management of cross-border financing.
We will set up a sound system for unified monitoring and management of all foreign debt as
53
part of our efforts to earnestly and effectively guard against foreign debt risks.
4) We will guide the steaefy and order/y development of outward investment.
We will create new patterns of outward investment, deepen international
industrial-capacity cooperation, promote the building of overseas economic and trade
cooperation zones, and let investment drive the growth of foreign trade and industries. We will
make new improvements to investment and financing mechanisms, make it easier to use the
RMB in trade and investment, and explore new ground in the internationalization of the RMB.
We will improve laws and regulations as well as monitoring and service platforms for outward
investment. Furthermore, we will enhance recording and reporting of outward investment,
ensure supervision over all stages of the outward investment process, and strengthen services
for outward investment.
5) We will active/y participate in and promote economic globaliZf1tiOn.
We will do our utmost to ensure China successfully hosts the annual meeting of the Boao
Forum for Asia, the Shanghai Cooperation Organization 2018 Summit, the 2018 Summit of
the Forum on China-Africa Cooperation, the First China International Import Expo, and
other diplomatic events. We will support the United Nations and the G20 in playing their roles
as the main platforms for global governance, and see that· APEC, BRICS, an:d other
cooperation mechanisms also play their part. We will continue to deepen cooperation in
bilateral and multilateral investment and trade, support the multilateral trade system, and work
to promote high-standard facilitation of trade and investment.
9. Ensuring and improving Jiving standards
We will take strong measures to promote supply-side structural reform in society, bolster
areas ·of weakness in public service provision, and strive to meet the people's ever-growing
needs for a better life.
1) We will improve emplqyment qualify and income levels.
With a continuing commitment to prioritizing employment, we will implement a proactive
employment policy. We will carry out a national plan to cultivate highly-skilled personnel and
roll out vocational skills training on a large scale in an effort to ensure that improvements in
the caliber of the workforce take place alongside structural adjustments in industry. We will
encourage the development of startups that create employment, and implement new policies
to support people, such as migrant workers, in returning or moving to the countryside to start
businesses. We will provide comprehensive public employment services, and continue
programs that help college graduates gain employment, guide them in starting businesses, and
encourage them to work at the community level. We will take steady and well-ordered measures
to resettle workers laid off due to the phasing-out of excess production capacity, and help
those experiencing employment difficulties and demobilized military personnel find jobs. We
will take active measures to alleviate structural problems related to employment, and address
54
and speed up the development of a housing system in which housing is provided by multiple
entities, supply is guaranteed through various channels, and both rental and purchase are
encouraged. To develop the housing rental market and particularly long-term leasing, we will
ensure protection of the legitimate rights and interests of all parties involved in rentals. We will
make sure that public rental housing projects are finished on time and allocated to entitled
households, and strengthen efforts to provide public rental housing for new urban residents.
We will support Beijing, Shanghai, and other cities in carrying out trials on joint-ownership
housing.
10. Taking stronger measures to build an ecological civilization
Continuing our commitment to the sustainable development strategy, we will work to
promote positive interplay between economic growth and ecological improvement and move
faster to implement the Beautiful China initiative.
1) We will promote a sound economic structure that facilitates green, low-carbon, and circular development.
We will formulate policies and measures that are conducive to promoting green
development in industry and build up , energy conserving, environmentally friendly, clean
production, and clean energy industries. Efforts will continue to control the total amount and
intensity when it comes to the use of energy, water, and land for development, and, in line with
this, we will launch a nationwide water conservation campaign and the "100-1000-10000"
energy conservation program: We will finish establishing the system for the initial allocation
and trading of rights for energy and water use and carbon emissions, and deepen
implementation of the system for extended producer responsibility. We will promote the
construction of resource recycling centers, the comprehensive use of massive solid waste, the
development of a circular economy in the agricultural sector, and circular operations in
industrial parks. We will improve price policy systems to facilitate green development and see
that the Environmental Protection Tax Law is enforced.
2) We will strengthen protection ef the ecological DJStem.
We will adopt a holistic approach to conserving China's mountains, rivers, forests,
farmland, lakes, and grassland, and carry out large-scale programs to protect and restore major
ecosystems. We will speed up work to draw redlines for protecting ecosystems, designate
permanent basic cropland, and delineate boundaries for urban development; and we will also
work faster to demarcate spaces to be used for urban development, agriculture, and ecological
conservation. We will launch large-scale afforestation and comprehensively tackle soil erosion.
We will expand the projects to return marginal farmland to forest or grassland, continue to
return grazing land to grassland, and enhance the system for rehabilitation of cropland,
grassland, forests, rivers, and lakes; and, in line with an appropriate timetable, we will begin
• The 100-1000-10000 energy conservation program will see the top 100 energy consuming enterprises in China being regulated by central government, a further 1,000 being regulated by their respective provincial-level governments, and over 10,000 more coming under the regulation of lower-level governments.
57
relocating industries and residents from core areas of the Qilian Mountains to preserve the
environment there. We will deepen our efforts to comprehensively .improve land conditions,
and .improve and restore geological environments in mining areas.
3) We will deepen sfrllctural reform for promoting ecological civilization.
We will encourage national ecological civilization pilot zones and demonstration zones to
move faster in making institutional innovations. We will reform the environmental oversight
system, .improve the property rights system for natural ·resource assets, and speed up the
establishment of regulatory agencies to manage state-owned natural resource assets and
monitor natural ecosystems. We will refine the system for developing and protecting territorial
space, take strong steps to .implement land plans and comprehensive programs to .improve land
conditions, and carry out monitoring and early-warning for environmental and resource
carrying capacity. We will enhance supporting policies for functional zones, and conduct value
realization trials for ecological products in Zhejiang, Jiangxi, Guizhou, and Qinghai. We will
fully establish the river and lake chief systems. We will develop supporting institutions for the
national parks system and build a nature reserve system centered on national parks. We will
explore the establishment of diversified market-based mechanisms for ecological
compensation.
4) We will active/y promote an eco-ftiend/y lifesryle.
We will promote green technologies that benefit the public and expand green
consumption. We will launch a series of events including National Energy-Saving Week and
National Low-Carbon Day, make Party and government offices do better when-it comes to
conservation, and develop eco-friendly families, schools, shopping malls, buildings,
co=unities, and transport services.
5) We will proactive/y address climate change.
We will step up efforts to develop a management system for the national carbon market,
put in place the relevant infrastructure, and enhance its capacity. We will continue to strengthen
work on controlling greenhouse gas emissions and take forward pilot and demonstration
programs on low-carbon development as well as pilots on developing climate resilient cities.
On the issue of addressing climate change, we will play a constructive role in guiding
international talks and continue to promote South-South cooperation.
We will support Hong Kong and Macao in integrating into the overall development of the
country. With a focus on development in the Guangdong-Hong Kong-Macao Greater Bay
Area, on Guangdong-Hong Kong-Macao cooperation, and on regional cooperation in the
pan-Pearl River Delta, we will deepen investment, economic, and trade cooperation between
the mainland and Hong Kong and Macao, and .improve policies and measures to make it easier
for Hong Kong and Macao residents to pursue development on the mainland. We will support
58
Hong Kong in its efforts to raise its standing as an international financial, shipping, and trade
center and to enhance its position as a global hub for offshore RMB services. We will promote
further cooperation between the mainland and Hong Kong in the construction of information
infrastructure, highways, railways, ports, and airports. We will give more support to Macao's
endeavor to become a world tourism and leisure center and to serve as a platform for
facilitating business and trade cooperation between China and Portuguese-speaking countries.
We will support Macao in hosting the Macao International Trade and Investment Fair and the
International Infrastructure Investment and Construction Forum. We will continue to promote
economic and trade relations between the two sides of the Straits, and expand cross-Straits
economic and cultural cooperation and exchange. We will work to see that Taiwan compatriots
enjoy the. same treatment as local residents when studying, starting a business, working, or
living on the mainland, thus bringing greater benefits to them.
Esteemed Deputies,
Accomplishing the work for economic and social development in 2018 is an important
and demanding task. We will unite even closer around the CPC Central Committee with
Comrade Xi Jinping at its core, hold high the great banner of socialism with Chinese
characteristics, and take Xi Jinping Thought on Socialism with Chinese Characteristics for a
New Era as our guide. We willingly accept the oversight of the NPC and welcome comments
and suggestions from the CPPCC National Committee. Let us all join in a concerted effort to
promote reform and innovation, work practically to overcome difficulties, and strive to
promote sustainable and sound economic and social development, in order to provide a solid
foundation as we move toward a decisive victory in building a moderately prosperous society
in all respects and begin on a new journey to fully build a modem socialist China.
59
No.
1
2
3
4
5
6
7
8
9
10
11
12
Performance for the Main Targets in the 2017 Plan for National Economic and Social Development
Targets Type Unit Projected Actual
Figure Figure .
I. Economic Development
GDP Anticipatory % Up 6.5 approx. Up6.9
Primary Industry Anticipatocy % Up 3.3 approx. Up3.9
Includes: grain output Anticipatory Million
OvcrSS0.00 617.91 metric tons.
Secondary Industry Anticipatory % Up 6.1 approx. Up6.1
Industrial sector Anticipatory % Up 6.0 approx. Up6.4
Includes: electricity generated Anticipatory Trillion
6.3270 6.4951 kWh
Tertiary Industry Anticipatocy % Up 7.4 approx. Up8.0
Domestic Demand
Total fixed.asset investment Anticipatory % Up 9.0 approx. Up7.0
Total retail sales of consumer goods Anticipatory % Up 10.0 Up 10.2 approx.
External Economy
Total import and export volume of % Steady Anticipatocy (Billion recovery ,nd Up 14.2
goods Yuan) growth
Total import and export volume of % Anticipatoi:y (Billion Up 9.5 approx. Up6.8
services Yuan)
Foreign direct investment Anticipatory Billion US$ 126.0 131.0
60
Performance
As projected
Better than projected
Better than projected
As projected
As projected
As projected
As projected
Lower than projected
As projected
As projected
Lower than projected
As projected
13 Long- and medium-term foreign Anticip:uory Dillion USS 210.0 189.1 As projected
debt
14 Outbound direct investment Anticipatory Billion USS 170.0 120.t As projected
Urbanization Levels
15 Percentage of permanent urban Anticipatory % 58.25 58.52 As projected
residents
16 Percentage of registered urban Anticipatory % Ovec4220 4235 As projected
residents
Price Levels
17 CPI (2016=100) Anticipatory 103.0 approx. 101.6 As projected
Fiscal & Financial Targets
18 General government revenue Anticipatory % Up5.0 7.4 Better than projected
19 General government expenditures Anticipatory % Up65 7.7 Better than projected
.
20 Fiscal deficit Anticipatory Trillion yuan -2.38 -238 As projected
21 M:z money supply growth rate Anticipatory % 120 approx. 8.2 As projected
22 Aggregate financing growth rate Anticipatory % 120approx. 12.0 As projected
II. Innovation as growth driver
Science & Technology
23 Spending on R&D as a percentage
Anticipatocy % 2.13 2.12 As projected of GDP
24 Number of patents per 10,000 Anticipatory 9.4 9.8 As projected
people
Contribution of scientific and 25 technological advances to Anticipatocy % 57.0 57.5# As projected
economic n-rowth
26 Percentage of mobile broadband Anticipatory % 75 81.4 As projected
users
61
27 Percentage of households with fixed
Anticipatoiy broadband internet access
% 63 74 Better than projected
Education
28 Retention rate of nine-year % 93.8 93.8 As projected
compulsory education Anticipatory
29 Gross enrollment ratio for senior
Anticipatory % 88.0 88.3 As projected secondary education
30 Regular undergraduate enrollment Anticipatory Million 7.350 7.615 As projected students
31 Graduate enrollment Anticipatory Million
0.844 0.805 As projected students
III. Resotll'ce Conservation and Environmental Protection
Resource conservation
Billion tons
32 Total energy consumption Anticipatory of standard Within 4.50 4.49 As projected coal
33 *Reduction in energy consumption Obligatory % Over3.-4 3.7 Accomplished per unit of GDP
34 *Reduction in carbon dioxide Obligatory % 4.0 5.1 Accomplished emissions per unit of GDP
35 *Share of non-fossil fuels in Obligatoty % 14.4 13.8 Unaccomplished primary energy consumption
36 *Reduction in water consumption Obligatoty per 10,000 yuan of GDP
% 5.4 5.6 Accomplished
37 *Land newly designated for Obligatoty
1,000 400.00 400.00# Accomplished construction hecta=
38 Includes: agricultural land Obligatory 1,000
340.00 340.00# Accomplished hecta=
39 Includes: cultivated land Obligatory 1,000
226.67 226.67# Accomplished hectares
40 Increase in total cultivated land Obligatory 1,000
226.67 221,,67# Accomplished hccta=
41 Land reclaimed from the sea ObUgatoty 1,000
18.67 0.0027 Accomplished hectares
Environmental Protection
62
42 Afforestation of land Anticipatory 1,000
Over 14,666.67 15,664.00# As projected hectares
*Percentage of days with good or 43 excellent air quality in cities at Obligatory % 79.0 78.0 Unaccomplished
and above nrefectural level *Reduction in PM2.s
44 concentrations in cities at or Oblig:ttocy above prefectural level that fell
% 3.0 7.7 Accomplished
short of the national standards *Proportion of surface water with
45 a Grade III or higher water Obligatory % 68.3 67.9 Unaccomplished
nualitv ratinD'
46 *Proportion of surface water with Oblig:ltory
a Grade V rating or lower % 8,4 83 Accomplished
47 *Reduction in chemical oxygen Obligatory demand
% 2.0 3.1 Accomplished
48 *Reduction in ammonia nitrogen Obligatory % 2.0 3.6 Accomplished
49 *Reduction in sulfur dioxide Obligatory emissions
% 3.0 8.0 Accomplished
50 *Reduction in nitrogen oxide Obligatocy % 3.0 4.9 Accomplished emissions
51 Percentage of urban sewage treated Anticipatory % 92.6 93.8# As projected
52 Percentage of urban household Anticip11.cory % 95.0 97.5# As projected
refuse safely treated
IV. Social Development and People's Wellbeing
Employment and Income
53 Urban jobs newly created Anticipatory Million Over 11.00 13.51 Better than projected
54 Registered urban unemployment Anticipatory % Within 45 3.9 As projected
rate
Personal per capita disposable In step with 55 Anticipatory % the economic Up7.3 As projected
income growth
In step with 56 Rural per capita disposable income Anticipatory % the economic Up7.3 As projected
growth
In step with 57 Urban per capita disposable income Anticipatory % the economic Up6.S As projected
growth
Poverty Reduction
63
58 *Reduction in number of rural Obligato.cy Million Over10.00 12.89 Accomplished
residents living in poverty
Population and Public Health
59 Year-end national population Anticipatory Billion 1.39312 1.39008 As projected
60 Number of hospital and health
Anticipato.cy clinic beds per 1,000 people
552 5.66 As projected
Number of occupational physicians 61 and physician assistants per 1,000 Anticipatoty 2.33 2.41 As projected
oeoole
62 Number of service facilities for
A11ticip:1toty 4,033 3,822 As projected people with disabilities
Social Security
Number of urban workers covered 63 by the basic old-age insurance Anticipat0ty Million 383.30 401.99 As projected
svstem
Number of participants in basic
64 old-age insurance schemes for
Anticipatory rural and non-working urban
Million 508.80 512.55 As projected
residents
*Number of housing units 65 renovated in run-down urban Obligatory Million units 6.00 6.09 Accomplished
areas
Notes: 1. The 2017 Plan for National Economic and Social Development deliberated and passed at the Fifth Session of the
12th National People's Congress lists a total of 65 targets, 46 of which are anticipatory and 19 obligatory. The 15 targets marked with * are obligatory targets set forth in the 13th Five-year Plan for National Economic and Social Development of the People's Republic of China.
2 Anticipatory targets are development objectives that the government hopes to achieve and figures it expects to reach; however they are not compulsory targets, nor are they predicted figures. The actual figures may be higher or lower than projected. Obligatory targets are mandatory and binding; they represent the government's macro regulatory intentions, and must be achieved.
3. The performance for obligatory targets is assessed on the basis of whether or not targets have been accomplished. The performance for anticipatory targets is assessed on the basis of a deviation of 10% from the projected figure: if the actual figure exceeds the anticipatory figure by 10% or more, it is rated "better than projected"; if it falls short by 10% or more, it is rated "lower than projected"; if the actual figure is higher or lower than the anticipatory figure by less than 10%, it is deemed to be "as projected." These assessment standards are not applicable to targets that have a minimum or maximum limit. For example, the actual registered urban unemployment rate in 2017 was 3.9%, which falls short of the anticipatory target by more than 10%, but the assessment is still deemed to be as projected.
4. The figures marked with # are estimated figures for 2017; the actual figures will be confirmed following final review and adjustment by relevant departments. Owing to the adjustment of the base figures for 2016, the actual performance for some targets in 2017 may change somewhat
64
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