China Sets Priorities for Economic Reform
The State Council, China’s Cabinet, recently unveiled this year’s top economic reform priorities.
The reforms for 2016 touched upon 10 fields, ranging from state- owned enterprise (SOE), to the opening- up policy, the State Council said in a statement.
The central government said it will encourage private enterprises to take part in the SOE reform and private capital will be allowed to invest in key sectors including power, oil, natural gas, railway, aviation and telecoms.
To boost sus t ainable g rowth, the government will unveil more measures to help researchers commercialize their findings and facilitate innovation and entrepreneurship.
In the statement, the government vowed to further cut red tape, loosen controls on market access and investment, and push forward supply- side structural reforms, to reduce overcapacity, destock, deleverage, reduce costs and shore up weak growth areas.
In terms of taxation, the VAT program will expand to all industries this year, while taxes on imported consumer goods are expected to be slashed, easing the tax burdens of both enterprises and ordinary consumers.