The Communist Party of China (CPC) on Monday unveiled its major economic tasks for 2016, the first year of the country’s 13th Five-Year Plan. The overall theme is boosting growth within a proper range for the country.
Increased urbanisation and Hukou reform:
To reduce housing inventories, more migrant rural workers should be issued with urban-residency permits, which will allow them to purchase housing in cities. China plans to increase the ratio or registered urban residents to the total population to 45 per cent by 2020.
Making cities more livable:
China will make cities more livable, adjust the size of the cities, improve urban infrastructure and protect historical and cultural heritage. The government will also try to improve urban planning and management.
Improving business environment:
In 2016, China will continue to promote mass entrepreneurship and innovation by relieving financial strain for companies. Measures include reductions to transaction costs, taxes and social insurance fees. The government will try to promote a better business environment by encouraging mergers, reorganization and in some cases helping firms file for bankruptcy. “China should prevent and resolve financial risks and defend the bottom line to eliminate systematic and regional financial risks”, Xi Jinping.
Improve allocative efficiency of capital through SOE reform. The streamlining of administrative processes, delegation of power, reform of state-owned firms, taxation, finance and social security will also continue to be prioritized.
Ensuring a basic standard of living:
The statement added that a basic living standard should be ensured for the people, while the protection of intellectual property rights and the interests of foreign companies will help industrial cooperation with other countries and improve the domestic environment.
Proper range of economic growth:
In 2016, China will target economic growth of 7 per cent per annum. There will be structural reforms within the economy as the manufacturing sector becomes less influential. The country should continue reforms to open up, sticking to the general guideline of “seeking progress while maintaining stability and promoting the improvement of productivity,” said president Xi Jinping.