STABLE GROWTH PURSUED IN 2018
GDP target set at 6.5 percent as opening-up, quality and efficiency are emphasized, Li says in annual Government Work Report
China will continue to pursue stable economic growth this year, setting its GDP growth target at around 6.5 percent, and further open up its economy to foreign investors, Premier Li Keqiang said on Monday morning while delivering the annual Government Work Report.
The country opposes protectionism and supports the settlement of trade disputes through negotiation, Li told the first session of the 13th National People’s Congress.
The growth target is unchanged from last year’s despite China’s achievement of a higher-than-expected 6.9 percent GDP growth in 2017, the first acceleration in seven years. This year’s report does not contain wording similar to last year’s, which said that “a higher growth rate will be pursued if possible in practice”.
“The Chinese economy is expected to be quite stable this year and the priority will be put on improving growth quality and efficiency,” Liu Shijin, a Chinese People’s Political Consultative Conference National Committee member, told reporters.
Li said that the country will forcefully pursue high-quality development, a stance that was put forward by Xi Jinping, general secretary of the Communist Party of China Central Committee, at the 19th National Congress of the Party.
Li also said China will continue to carry out the three critical battles — namely forestalling and defusing major risks, targeting poverty alleviation and controlling pollution.
“The government is trying to tackle environmental protection, high housing prices and medical reform as well as educational reform. If the government can tackle these issues, that means more people would be able to enjoy the fruit of economic development,” Henry Gao, associate professor at the School of Law at Singapore Management University, was quoted by Channel NewsAsia as saying.
Li vowed, “Reform will be further deepened, opening-up will be further expanded.”
China will fully open up its general manufacturing sectors to foreign investors, expand opening-up in such sectors as telecommunications, health, education, elderly care and new energy vehicles, and open up the bank card settlement market in an orderly manner, he ensured.
China will also ease entry into such fields as insurance, banking, securities, fund management and futures and financial asset management, and will further simplify procedures for doing business for foreign businesses, the premier added. The foreign investment approval system will give way to negative list management, he said.
The negative list defines which fields are inaccessible
Supply-side structural reforms
• Speed up work to make China into a global manufacturing leader
• Deepen reforms designed to streamline administration, delegate powers, improve regulation, and provide enhanced services
• Institute a negative list system for nationwide market access
Making China a country of innovators
• Improve national innovation systems
• Launch a number of major science and technology innovation programs
• Take the national startup and innovation drive to the next level
• Boost the platform economy and sharing economy
• Encourage Chinese students abroad to return to China after completing their studies to pursue business and other innovative ventures
• Create a fast track to attract more foreign talent to China
Deepening reforms in key areas
• Enhance State capital and State-owned enterprise reforms
• Foster development of private enterprises
• Improve property rights systems and mechanisms for market-based allocation of the fruits of production
• Better protect intellectual property and enforce punitive compensation system for infringements
• Advance reforms to make interest rates and exchange rates more market-based
Fighting three critical battles
• China’s economic and financial risks are on the whole manageable; both symptoms and root causes should be addressed to see that internal risk controls are tightened in financial institutions, and effective measures should be taken to defuse potential risks
• Forestall and defuse local government debt risk
• Step up targeted poverty alleviation
• Make greater progress in addressing pollution
Rural revitalization strategy
• Advance supply-side structural agricultural reforms
• Implement a policy extending second-round rural land contracts by another 30 years upon expiration
• Launch a three-year campaign to improve rural living conditions
Coordinated regional development strategy
• Pursue coordinated development of the Beijing-TianjinHebei region
• Develop Xiongan New Area in line with forward-looking plans and high standards
• Make progress in developing the Yangtze River Economic Belt
• Unveil and implement the Guangdong-Hong Kong-Macao Greater Bay Area development plan
Increasing consumption, promoting investment
• Extend preferential policies on the new energy vehicle purchase tax by another three years
• Reduce ticket prices at key State tourism sites
• Encourage healthy development of online shopping and express delivery services
All-around opening-up
• Make progress in international cooperation under the Belt and Road Initiative
• Do more to foster a worldclass business environment
• Completely open up the general manufacturing sector
• Expand access to sectors like telecommunications, medical services, education, elderly care, and new energy vehicles
• Ease or lift restrictions on the share of foreign-owned equity in companies in banking, securities, fund management, futures, financial asset management, etc
• Simplify procedures for setting up foreign-invested enterprises
• Prepare to host the first China International Import Expo in November
• Lower import tariffs on automobiles, some basic consumer goods, etc
People’s well-being
• Pay particular attention to boosting employment and business startups
• Continue to increase basic pension payments for retirees and basic pension benefits for rural and nonworking urban residents
• Raise the personal income tax threshold
• Do more to address people’s housing needs