REPORT ON THE IMPLEMENTATION OF THE 2016 PLAN FOR
NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND
ON THE 2017 DRAFT PLAN FOR NATIONAL ECONOMIC
AND SOCIAL DEVELOPMENT
Delivered at the Fifth Session of the
Twelfth National People's Congress on March 5, 2017
National Development and Reform Commission
T he official version of this report will be released by Xinhua News Agency.
Esteemed Deputies,
The National Development and Reform Commission has been entrusted by the State
Council to submit this report on the implementation of the 2016 plan and on the 2017 draft
plan for national economic and social development to the Fifth Session of the Twelfth
National People's Congress (NPC) for your deliberation and for comments from the members
of the National Committee of the Chinese People's Political Consultative Conference
(CPPCC).
I. Implementation of the 2016 Plan for
National Economic and Social Development
Last year, conditions both at home and abroad were complex and challenging; the global
economic recovery struggled to take effect while downward pressure on China's economy
remained significant. However, under the firm leadership of the Central Committee of the
Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and
departments continued to follow the general principle of making progress while keeping
performance stable, upheld the new development philosophy, earnestly implemented the 2016
plan approved at the Fourth Session of the Twelfth NPC, and acted in line with the review of
the plan by the NPC's Financial and Economic Affairs Committee. In accordance with the
keynote of advancing supply-side structural reform, we appropriately increased aggregate
demand, advanced reform with determination, responded effectively to risks and challenges,
guided public expectations to ensure they remained positive, and worked hard to deliver a good
performance in all areas of work. As a result, economic and social development remained stable
and healthy, the 13th Five-Year Plan got off to a good start, and implementation of the 2016
Plan for National Economic and Social Development was successful overall.
1. We developed neiV and better tvays of conducting macro regulation to keep the econo1;ry operating zvithi11
an appropriate range.
On the basis of range-based regulation, we strengthened targeted and well-timed regulation
and pursued a more proactive fiscal policy as well as a prudent monetary policy that retained an
appropriate degree of flexibility so as to ensure that economic performance was stable. China's
gross domestic product (GDP) rose to 74.41 trillion yuan, an increase of 6.7%, meeting our
projected target.
Table 1. Quarterly GDP and Growth Rate in 2016
Trillions of Yuan
22
:li.IJ
,-
20
19.05
-
18.07
r--
18
16.16
16
r--
14
6.7
6.7
6.7
6.8
12
Quarter I
Quarter 2
c:=::J GDP
Quarter 3
-+--Growth rate (%)
Source: National Bureau of Statistics
1
Quarter 4
1) Consumption plqyed a more fundamental role.
The action plan to stimulate industrial transformation and upgrading through increased
consumption was formulated, and the Ten Initiatives for Boosting Consumer Spending were
implemented. We implemented the policies for promoting green consumption, transformation
of physical retail businesses through innovation, and integrated development of transportation
and logistics. The guidelines on further boosting consumer spending in tourism, culture, sports,
health, elderly care, education, and training services were promulgated and implemented; the
consumption of services flourished; and consumer spending on automobiles and other physical
goods was increased and upgraded. We formulated the guidelines on providing incentives to
key groups to promote an overall increase in urban and rural incomes, and people's ability to
consume continued to increase. Total retail sales of consumer goods for the year rose by 10.4%.
Consumption served as a major driver of economic growth, making a 64.6% contribution. And
there was a further improvement in the ratio between consumption and investment.
•
Urban Sales
•
Rural
Consumption
•
Housing
•
Automobile
•
Tourism &
Leisure
Health,
Elderly Care,
& Domestic
Services
•
•
Education,
Culture &
Information
Sports &
Fitness
Green
Consumption
Consumption
Environment
& Quality
•
•
•
Box 1: Ten Initiatives for Boostine Consumer Spendine
Ensuring a free-flowing conunoclity distribution network, with a focus on reducing
logistics costs while enhancing efficiency, and extending sales of high-quality brands
to third- and fourth-tier cities
Tapping the potential for e-conunerce consumption in rural areas, increasing the
fluidity of two-way sales channels between urban and rural areas, improving rural
infrastructure for consuming information goods and services, and bringing about
higher-quality consumption in rural areas
Cutting the housing inventory using measures which are tailored to local conditions,
establishing a housing system which encourages both renting and purchasing,
ensuring efficient use of the housing provident fund, and meeting consumer
demand for better housing conditions
Initiating trials to loosen restrictions on driving pickups in cities, accelerating
construction of parking facilities, working to improve after-sales services for
automobiles, and meeting consumer demand for automobiles
Developing demonstration zones for all-for-one tourism, moving faster to increase
consumer spending on cruise and yacht tourism, promoting ecotourism and
elderly-friendly tourism, and stepping up development of the general aviation
market
Providing more training for domestic service workers, developing combined
medical and care services for the elderly, supporting the integration and
transformation of idle nongovernmental resources to provide elderly care services,
and encouraging development of diversified and personalized health services
Developing high-level vocational education, promoting Chinese-foreign cooperation
in operating schools, encouraging the development of cultural & creative industries,
increasing application of new information products such as smart-home technology,
and developing physical bookstores, digital cinemas in county-level cities, and other
infrastructure catering to cultural consumption
Continuing to put stadiums and gymnasiums to best use, improving market-based
competitive mechanisms for sports event operations, and hosting a wider range of
sports events to stimulate and satisfy private demand in the area of sports
Carrying out the frontrunner program for energy efficient household appliances,
increasing the supply of eco-friendly household purifiers, and promoting the use of
green materials in construction
Extending application of the national platform for sharing information on credit,
making effective use of the "12358" pricing oversight platform, strengthening price
oversight, working to improve the quality of consumer goods, and supporting
development of new forms of consumption such as the sharing economy
2) Investment sustained steacfy growth.
Strengthening areas of weakness, making structural adjustment, and increasing supply were
our primary focus in working to increase rational and effective investment. We further
improved the structure of investments falling within the central government budget, took initial
2
steps to set up the reserve of government investment projects and formulate the three-year
rolling investment plan, and stepped up the consu-uction of major projects. We channeled great
energy into stimulating private investment, formulated a 26-point policy to ensure its sound
development, and worked to expand the application of public-private partnership (PPP)
models. Total fixed-asset investment for the year rose by 7.9%, of which 61.2% came from
nongovernmental sources (excluding rural households) .
Box 2: Measures for Encouraging Sound D evelopment of Private Investment
•
Orgaruzed inspections of private investment
Inspection
•
Carried out supervision in seven provinces and municipalities where growth of
&
private investment lagged behind
Supervision •
Intensified supervision in 11 provinces, autonomous regions, and municipalities that
saw a decrease in nongoverrunental investment or a sharp decline in its growth
• Published 60 Case Studies on Promoting Private Investment
Produced the G uide to PPP Projects in Traditional Infrastructure Construction
Support &
Established a PPP consultant database and introduced public bidding for PPP
Guidance
projects in traditional infrastructure construction with a total investment of 2.14
trillion yuan
3) The overall emplqyment situation remained positive.
We sped up efforts to develop community-level facilities providing employment and social
security services and to establish public vocational training centers, provided better services to
college graduates as well as to workers laid off due to the scaling-down of overcapacity, and
continued to advance pilot projects to support rural migrant workers returning home to set up
businesses. An additional 13.14 million urban jobs were created over the year, and the
registered urban unemployment rate stood at 4.02% at the end of 2016.
Table 2. Urban Jobs Created
Million
!6
14
12
10
8
6
4
2
0
2012
2013
~
Annual Target
20 14
2015
20 16
0 Increase over the Target
Source: Ministry of Human Resources and Social Security
4) Overallprices were gmeralfy stable.
We increased regulation over commodity prices, effectively carried out regulation over the
price of hogs, and strengthened monitoring, early warning, regulation, and oversight over the
prices of major commodities such as vegetables during the flood season and major holidays.
Oversight over pricing was tightened up and law enforcement efforts to counter monopolistic
pricing intensified with numerous cases being investigated and dealt with. The consumer price
index (CPI) for the year rose by 2.0%.
3
5) Risks and c·hallenges wert! handled appropn'ate!J.
We stepped up reviews to verify the authenticity of outbound investment projects and
worked to ensure the sound and orderly development of overall outbound investment. We
employed market-oriented, law-based measures to guard against and defuse bond default risks.
P olicies tailored to local conditions were implemented to regulate the real estate market on a
per-category basis. We took timely measures to guard against and deal with rainstorms, floods,
and other natural disasters so as to minimize their damage, and ensure recovery and
reconstruction efforts proceeded in an orderly manner.
2. We worked to semre solid progress in supp!J-side stntdural reform, m·hieving initial success in the five
pri01iry tasks of cutting overcapatiry, reducing excess inventory, deleveraging, lowering costs, and strengthening
points of 1veakness.
By enhancing policy guidance and support and establishing an effective work mechanism,
we achieved preliminary progress in our efforts to carry out the five priority tasks.
1) Annual targets for cutting ovmapatiry were met ahead of schedule and were surpassed
T he State Council's Guidelines on Addressing Overcapacity and Achieving a Turnaround
in the Steel Industry (G.F. [2016] No. 6) and the State Council's Guidelines on Addressing
Overcapacity and Achieving a Turnaround in the Coal Industry (G.F. [2016] No. 7) were
published and implemented. We launched three initiatives which focused on shutting down
outdated production facilities, dealing with projects that violated laws and regulations, and
carrying out coordinated law enforcement, thereby strictly controlling the expansion of
production capacity, ensuring the shutting down of outdated production facilities was
accelerated, and guiding the orderly elimination of overcapacity. We made appropriate
arrangements to ensure that laid-off employees were resettled and provided employment and
that enterprise debts were properly handled; and we encouraged businesses affected by
overcapacity to merge, restructure, transform, and upgrade, or optimize business distribution.
We took timely and appropriate action in responding to the effects of adjustments in
supply and demand and price fluctuations. In 2016, we reduced excess production capacity by
over 65 million metric tons of steel and over 290 million metric tons of coal; both numbers
surpassed tl1e targets for the year. The steel and coal industries operated more efficiently: cases
of companies being in arrears were reduced, cash-flow problems were eased, and problems of
insufficient investment in workplace safety, overdue wages, and outstanding payments were
alleviated to some extent. Overall, the perform ance of both industries as well as market
expectations improved.
2) Work to cut excess invmtory surged ahead.
We promoted the granting of urban residency to people who have moved to cities from
rural areas and worked to ensure the housing needs of new urban residents were met, such that
by the end of 2016, the area of commodity housing for sale was 49.91 million square meters
less tl1an it was at the end of 2015. We further expanded the use of direct monetary housing
compensation for people displaced by the rebuilding of run-down urban areas. 2.94 million
households received monetary housing compensation over the year, accounting for 48. 5% of
the year's newly-commenced projects to rebuild run-down urban areas; this marked an increase
of 18.6 percentage points over 2015.
3) Efforts to deleverage delivered initial results.
The State Council's Guidelines on Proactively yet Prudently Lowering Enterprise Leverage
Ratios (G.F. [2016] No. 54) were published and implemented. We encouraged business mergers
and restructuring, promo ted market-oriented and law-based debt-for-equity swaps, developed
equity financing, and adopted o ther comprehensive measures so as to reduce business leverage
ratios in an active yet prudent way. We launched an initiative for enterprises to engage in
market-based debt-for-equity swaps with banks. By the end of 2016, a number of commercial
banks had selected, via relevant agencies, 20 leading enterprises, which, despite having relatively
high debt-to-asset ratios, had good prospects for development. Framework agreements on
4
debt-for-equity swaps were drawn up with these enterprises on the basis of independent
consultation, and are worth over 250 billion yuan. At the end of 2016, the debt-to-asset ratio
of nationwide industrial enterprises with annual revenue from their main business operations
of 20 million yuan or more was 55.8%, a year-on-year decrease of 0.4 percentage point.
4) Significant progress was achieved in reducing costs.
The State Council's Circular on Publishing the Work Plan on Reducing the Costs of
Enterprises in the Real Economy (G.F. [2016] No. 48) was published and implemented. We
continued to promo te the reforms to streamline administration, delegate more powers, improve
regulation, and provide better services, thereby reducing transaction costs imposed by
government. We extended trials of replacing business tax with value added tax (VAT) to all
sectors and appropriately lowered the ratio of enterprise contributions for old-age insurance,
medical insurance, unemploym ent insurance, workers' compensation, maternity insurance, and
housing provident fund schemes for the current stage. We implemented the mechanism for
coupling the price of coal with that of electricity, promoted price reform of electricity
transmission and distribution, increased the number of direct sales by electricity generation
companies to users, and improved the implementation of the basic electricity pricing scheme,
so as to lower enterprise energy costs. We reviewed and standardized fees and charges levied on
enterprises related to imports and exports and financial services, pushed forward in reforming
the freight transportatio n system for railways, launched a cost-reduction and
performance-improvement campaign within the logistics industry, and published and
implemented an action plan to develop logistics channels.
In 2016, industrial enterprises with annual revenue from their main business operations of
20 million yuan or m ore reduced their costs by 0.1 yuan p er 100 yuan of income from their
main business o perations and increased their profit rate by 0.19 percentage point on a
year-on-year basis.
Table 3. Lowering Business Costs in the Real Economy
\Vo onsp<ct<d the implomentatio n of
policies on fees and ch:.uges levied
, -- - - - - - - - - - - - -- -On ontcrprises, and lowered charging- - - -- -
:~~~dar~~· h~~in~il~~t~rprl~~~.sav~,~
573.6 billion
yuan
Across-the-board omplemenration of trials
to replace business tax with VAT reduced
the tax burden on businesses by 573.6
billion yuan.
impro,·ed tho pncong mechanism f o r ( /~
bank card transactions, decreased
~
the level of fees, and lowered
charging standards for credit
reference services, reducing the 200 billion yuan
burden on cuSlomcrs
10 billion yuan.
<
by a tot:ll of
on==v
I
_
By co'!phng the price of coal with tha! o.f electricity,
'lli
56 b • on
uan
Y
""--/
7
promoting
~arket-based
trac;Jing o f
~l~ctrici!'Y,
and improving
tmplem entataon o f rhc bas1c clcctnctty pncmg scheme, we
reduced enterprise expenditures on dcctricity by over 100
b~lion )'Uan. We implemented the pohcy to lowor the pric< of
non-household n•tural gos, saw that naturol g;u prices set by
the market decre3scd, :md strengthened oversight over the
pnces of natural gas transmission :md distribution in localities,
reducing the cost of gos for busoncsses by about 100 billion
ruan.
II
Reductions in the premium rates for basic
Busin~ss
costs were
cut b y over I trillion
yuan in 2016.
old·2gc
insurance
:a.nd
unemployment
0 biUion insuronce helped cut. the l•bor costs . of
yuan
entcrpnses by 105 bilhon yuan. Enterpnses
had .their contributions to the housing
'\_ r - ·prov1dent fund reduced by 15 billion yuan
"J - ,lS ft ICSUJ t hi our Standardization and
appropriate reduction of the proQC>rtion
tfoey must contribute to the fund for the
current stage.
br
Transport:uion costs were cut
6 billion :-ts a
result of trials on drop-and-pul transport, bx
29 billion as result of reductions and
exemP.tions of exprossway tolls for fresh
agricul tural products, and by 1.5 billion as a
result of a review and sr:tndJ.rdiz:uion o f
cha rges and fees_ levied on port ond liner
By the end of December 2016, local
gove,nments ~ad retu rned 49:65 billion y~on in
secunty dcposus to construcuon comp:amcs.
transport compan1CS.
36.5 billion
~~----~
~arrring
out pnce reform of clcctnct9' transmJSSton and dtstnbuuon,
-1
Industrial
enterpnses
with annual re,·enue o f
20 million yuan or more 74.1 billion
from t.heir main business
yuan
opc;ranons spent 74.1
billion yuan less
interest payments than
they did on the previous
year.
---------,
49.65 billion
yua/n'-~----------------------~--~yuan
~-----§:/~
5
5) Efforts to strengthen points of weakness were intensified.
Keeping in mind the need to secure both short-term and long-term benefits and focusing
on the development of both infrastructure and management and services, we pursued
market-based investment and financing initiatives to stimulate bank loans and other forms of
investment and worked to strengthen points of weakness in the key areas of poverty alleviation,
post-disaster water conservancy restoration and reconstruction, social programs, innovation
cap acity-building, new industry, and other areas in need of attention. We achieved our target of
helping more than 10 million rural residents lift themselves out of poverty over the course of
the year.
3. We made new breakthroughs in reform and opening up, unleashing new impetus for economic and social
development.
We launched a number of crucial signature reform plans, made breakthroughs in reform of
major areas and key sectors, and improved the performance of China's open economy.
1) Reforms to streamline administration, delegate more powers, improve regulation, and provide better
services were intensified.
In 2016, we cancelled the requirement for administrative approval by State Council bodies
on a number of items, the requirement for local-government review and approval conducted
on behalf of central government on 53 items, and the requirement for approval and verification
of 223 professional qualifications. We overhauled and standardized 20 intermediary services
related to the review and approval practices of State Council bodies. The Catalog of
Investment Projects Requiring Government Review was revised for the third time. Reform of
the business system was deepened. We fully implemented the oversight model consisting of
inspections of randomly selected entities by randomly selected inspectors and the public release
of inspection results, made operational and post-operational oversight more effective, and
promoted the Internet Plus governm ent services model. The newly-launched reform piloting a
negative list for market access yielded positive results. The four major platforms for
streamlining administration, delegating more powers, improving regulation, and providing
better services have all been assembled and are in operation.
Box 3: R eforms to Streamline Administration , D elegate More Powers,
Improve R egulation , and Provide Better Services
•
T he propor tion of pro jects requiring central government approval was
Government
reduced by 90% in total. The number of items needed to obtain government
R eview of Projects
approval for an investment project was reduced from 65 to 42.
• The unified business license with a unified social credit code fully replaced
the system of using a separate business license, organization code certificate,
T he Business
taxation registration certificate, social insurance registration certificate, and
System
statistics registration certificate. Trials to register new businesses online got
under way in 18 provinces, autonomous regions, and municipalities direcdy
under the central government.
• Consisting of inspections of randomly selected entities by randomly selected
inspectors and the public release of inspection results, this model was
O versight Model
em ployed in more than 70% of market-oversight law enforcement activities
and over 50% of all other administrative law enforcement activities.
• A negative list for managing foreign investment was implemented.
Nationwide changes were made to procedures concerning foreign-funded
companies which are not subject to national entry-control measures; the
Negative List fo r
establishment or modification of such companies is no longer required to
Market Access
undergo prior review and approval and may now be undertaken on a
reporting basis.
• Trials of a negative list for market access were carried out in Tianjin,
Shanghai, Fujian, and Guangdong.
6
Table 4. The Four Ma'or Platforms
The nacional online platform fo r reviewing, approving,
and mo nitoring investment projects: Data-sharing~
between the CC1ttnl and local governments is up and running
and
includes
proc((iure~
for
revsew
and
approval,
/
venfiation, and reponing. thereby ensuring that prOJects can
be handled o nlin e and compler~ within prescnbtd time
hmns :md that law-based mo1titoring and ongoing
supervlsio1t of prOJCCU are curied out. So far, a total of
1,42S pro)ecu have been registered via the ccntn..l-level
platform, and 374,000 projects hne been approved for entry
into loaJ-Ieve.l datab2ses.
The national platform for ttading public resources: The
pbtform, wh1Ch is lutked wuh all provmcial-level platforms,
officWJy came Uuo opennon o n January l, 2017, and serves
as a one-stop shop for all mformauon on the trading of
pubhc resources, including informauon on pubhc biddmg for
consttuct1on projects, sale of la1ld·use rights and minir .. /
nghts, tr.tdmg of state·owned propetf)' nghts and/
governmott procurement.
DO
DO
The Four Major
Platform s
The notional pla tform for sharing credit
information: The platform connects 37 government
departments, as we)) :u every province, autonomous
region, -and municipality directly under the centnl
government, and contains O\'tr 700 million pieces of
credit information. The Credit China website
(www.creditchina.gov.cn) received :an avenge of over
one million visits per d:ay.
The national 12358 pricing oversight platform:
The platform connects pricing oversight platfonns at
the st:ate, provUtci.ll, prefecture, and county levels, and
its big data makes it highly effective in conductmg
oveniglu, providing ta.rly warmng. and handling
complaims in :accordance with the law. The platform
f.lcilit>tcd the law-based handling or cam in which
enterprises drove up prices and pretended this w:ts
"attnbut.t~ble to the reform of replaci.Jtg business tax
with VAT.
2) Reform of the investment andfinaming .rystems picked up pace.
Guidelines on deepening reform of the investment and financing systems and regulations
on the review and reporting of investment projects for enterprises were introduced, spurring a
new round of reform throughout the investment and financing systems. We revised regulations
on the management of projects for which the central government budget provides investment
and loan-interest subsidies, and formulated 80 specific documents concerning the management
of such projects. Significant progress was made in demonstration initiatives to attract private
capital for projects such as the Ji'nan-Qingdao and Hangzhou-Shaoxing-Taizhou railway lines.
3) Price rejo17J7 was deepmed.
Trials to reform electricity transmission-and-distribution prices were extended to all
provincial-level grids. We established a new pricing mechanism for the pipeline transportation
of natural gas, and worked to ensure that the market decided city gate prices of natural gas for
non-household users, who accounted for over 80% of natural-gas consumption. Markets for
trading petroleum and natural gas experienced rapid development. Around 90% of cities have
adopted tiered pricing for household water, electricity, and natural gas usage. Price reforms for
medical services were implemented across the board and pricing for passenger rail and airline
tickets became noticeably more market based. Comprehensive pricing reform on water for
agricultural use registered solid progress. We improved the minimum state purchase price
policy on rice and wheat and pressed on with pilot reforms for ensuring base prices for cotton
and soybeans.
Refined Oil
Products
•
•
Natural Gas
•
Electricity
Transmission
and
Distribution
Medical
Services
•
•
Box 4: Price Reform in Ke Areas
The price-regulating mechanism for refined oil products was improved, and controls
on the producer price of liquefied petroleum gas were lifted.
It was made clear that gas storage prices are to be decided by the market; all price
controls on gas used to produce chemical fertilizers were removed; trial reforms to
make natural-gas city gate prices more market-based were carried out in Fujian.
In March 2016, prices were published for the five provincial-level grids trialing price
reforms for electricity transmission and distribution, and similar trials were launched
for 12 more provincial-level grids as well as the Beijing-Tianjin-Tangshan grid. In
September, the trial reform was extended to 14 more provincial-level grids, meaning
that reforms on most provincial-level grids began one year ahead of schedule.
Market-based electricity trading was promoted, with prices for around 23% of the
electricity generated and consumed over the year being set through negotiations
between supplier and consumer or through public bidding.
The Guidelines on Promoting Price Reforms for Medical Services were
promulgated, with 19 provinces formulating plans for their implementation.
7
•
Price reforms for medical care and medicine were carried out in all county-level
public hospitals and fully implemented in cities in 10 provinces.
23 provinces lifted pricing controls over some medical services for which there are
relatively strong levels of customized demand and market competition.
Seven cities have been chosen to carry out demonstrations for medical pricing
reform, all of which have issued implementation plans.
Railway companies are now permitted to independently set prices for high-speed
train tickets as well as soft-seat and soft-sleeper tickets for other passenger trains.
Price controls over airline passenger tickets on routes of less than 800 kilometers
and routes of more than 800 kilometers which are also serviced by high-speed trains
were lifted.
The Guidelines on Promoting Comprehensive Pricing Reform on Water for
A riculture Use were issued.
•
•
•
Transportation
•
Water
Conservanc
•
4) Steady progress was made in the reform of State-owned Enterprises (SOEs) and major industries.
In putting in place a framework that consists of the Guidelines on Deepening Reform of
SOEs as well as supplementary documents, we promulgated work plans to more quickly relieve
SOEs of their obligations to operate social programs and help them address other
longstanding issues, and steadily pressed ahead with the nine major tasks for deepening SOE
reform and the 10 pilot SOE reforms·. We implemented the pilot reform to introduce mixed
ownership for an initial group of SOEs and made progress in the trials to establish the first
group of state capital investment companies.
We approved reform plans for the electricity industries in 31 provinces, autonomous
regions, and municipalities directly under the central government, and released the first batch
of 105 trial projects to increase the number of electricity distributors. Plans were formulated
for reforming state forestry farms in all provinces, autonomous regions, and municipalities
directly under the central government and for reforming key state forestry areas in Inner
Mongolia, Jilin, and Heilongjiang. Trial reforms on state forestry farms were successfully
concluded in Zhejiang, Hunan, Jiangxi, and three other provinces.
The plan for structural reform of the salt industry was issued, and all controls on producer,
wholesale, and retail prices of salt were lifted. The system for purchasing and stockpiling corn
was reformed, and the policy for temporary purchase and storage of corn in the northeast was
replaced with a mechanism based on market-price purchases and supplementary subsidies. The
work to reduce stockpiles of grain and cotton through the provision of policy support
proceeded smoothly.
•
Nine Major
Tasks
•
Major Reform
Measures
•
Box 5: Reform of SOEs
Promptly formulated supplementary documents for the Guidelines on Deepening
Reform of SOE s; pushed forward with the 10 pilot SOE reforms; encouraged
state-owned asset supervisory and management authorities to transform their
function by primarily focusing on the management of state capital; carried
forward reform of SOEs based on a per-category basis; intensified the reform to
put SOEs under corporate and joint-stock systems; promoted the establishment
of boards of directors in SOEs; promoted mergers and restructuring of central
government enterprises; strengthened state-owned asset supervision; and
enhanced the CPC's leadership of SOEs
Basically completed work on classifying central government enterprises according
to their functions
Accelerated reform to put SOEs under corporate and joint-stock systems, putting
over 92% of subsidiaries of central government enterprises under a corporate
' They are to: ensure the power of the board of directors of SOEs; carry out competitive selection and employment of
executives and manag ers; promote the professional management system; implement differentiated pay in SO Es; develop
companies for state capital investment and operations; merge and reorganize central government enterprises; introduce
mixed-ownership structures in some major secto rs; allow employees o f SOE s with mixed-ownership structures to hold shares
in their employer company; make information on SOE s public; and relieve SOEs of their obligation to operate social
programs and help them address any other longstanding issues.
8
•
system, and raising the proportion of SOEs under mixed ownership to 68%
Carried out further work to establish boards of directors, with 83% of central
government enterprises having established a standard board of directors; and
began to establish mechanisms to allow for mistakes in SOE reform
5) Work to create a fair and competitive market was acce/emted
The guidelines on improving the property rights protection system and protecting property
rights in accordance with the law were published so as to ensure the rights and interests of
economic entities under all forms of ownership are subject to law-based protection on an equal
footing. Steady progress was made in the pilot reform for market-based allocation of land
designated for industrial purposes. Guidelines on establishing a review mechanism within the
market system to ensure fair competition were issued so as to impose direct controls on
government departments preventing them from adopting policies or measures that eliminate or
stifle competition.
New headway was made in developing a credit rating system, and guidelines on enhancing
the credit standing of governments and individuals, and within the e-commerce sector, were
formulated. More than 50 departments worked together in 12 sectors to take punitive actions
against those who act in bad faith and in three sectors to provide incentives to those who act in
good faith. Coordinated efforts to combat infringements and counterfeiting were enhanced,
with over 170,000 cases of illegal and criminal activities being investigated and handled. Steady
progress was achieved in the comprehensive trials to reform and develop the domestic
commodity distribution system.
6) Fiscal, tax, andji11ancia/ reforms proceeded in an orderfy ma11ner.
The State Council's Guidelines on Advancing Reform for the Sharing of Fiscal Authority
and Spending Responsibilities between the Central and Local Governments (G.F. [2016] No. 49)
were promulgated and implemented. We extended trials to replace business tax with VAT to all
sectors, including the construction, real estate, financial, and consumer service industries, and
ensured that VAT deductions cover all new immovable property of enterprises. Ad valorem
rates were introduced for all resource taxes, and trial reforms to levy a water-resource tax were
carried out. Reform of state-owned commercial banks as well as of development and
policy-backed financial institutions were deepened. The deposit insurance system performed
solidly. A number of measures for financial-sector opening up and innovation created by the
China (Shanghai) Pilot Free Trade Zone were replicated in the pilot free trade zones 10
Guangdong, Tianjin, and Fujian. The Shenzhen-Hong Kong Stock Connect was launched.
7) Socia/ reforms zvere acce/emted.
Reform of the system for the use of official vehicles was completed in all organs of the
CPC Central Committee and the State Council and its implementation was deepened in local
Party and government bodies. A second group of trials to delink industry associations and
chambers of commerce from the government were launched. Implementation of a unified
registration system for immovable property was accelerated, with 100% of prefectures,
prefecture-level cities, and autonomous prefectures and 98% of counties, county-level cities,
and districts across the country issuing new certificates to replace old ones. Management
reform for state science and technology initiatives was deepened, profit distribution policies
were developed with the goal of strengthening the value ascribed to knowledge, and efforts to
apply scientific and technological advances were intensified. Comprehensive education reform
was stepped up.
The system of tiered diagnosis and treatment was further developed, and substantive
progress was made in integrating the basic medical insurance schemes for rural and
non-working urban residents. The proportion of health care expenses borne by individuals
dropped to 28.9%. Guidelines on Fully Opening up the Elderly Care Market and Improving
Elderly Care Services (G.B.F. [2016] No. 91) by the State Council's General Office were
published and implemented. We made steady progress in reforming the pension system for
9
employees of Party and government offices and public institutions.
We moved faster to develop philosophy and the social sciences with Chinese characteristics,
and launched an initiative to encourage innovation in philosophy and the social sciences. We
worked to speed up implementation of soccer reforms.
•
Education
•
•
•
Health
•
•
Culture
•
Sports
•
Social
Security
Box 6: Social Reforms
Issued guidelines on coordinating and promoting integrated reform and development
of urban and rural compulsory education at the county level; applied a unified
bendunark for public funding per student to urban and rural compulsory education
schools starting in the spring term of 2016
Carried out trials for comprehensive education reform in Shanghai, Shandong,
Chongqing, Gansu, Jiangsu, and Shenzhen; established 36 national pilot zones for
reform and development of pre-school education
Extended comprehensive medical-reform trials to seven more provinces, autonomous
regions, and municipalities directly under the central government including Shanghai;
began trials for tiered diagnosis and treatment in the four municipalities directly under
the central government and in 266 prefecture-level cities
Improved and implemented laws, regulations, and supporting policies regarding the
policy of allowing couples to have two children, with 29 provincial-level governments
revising their population and family-planning regulations
Reformed and improved policies on the production, distribution, and use of medicine,
promoted contracted services of family physicians, and carried out comprehensive
reform of public hospitals on a trial basis in 200 cities; made sure governments
fulfilled their responsibility of ensuring basic health care, and further facilitated
nongovernmental participation in running hospitals
Accelerated development of a modern system of public cultural services, with 31
provincial-level governments publishing implementation recommendations and
standards for the Guidelines on Accelerating the Development of a Modern System
of Public Cultural Services and the National Standards for Provision of Basic Public
Cultural Services
Issued and implemented the National Plan for Long- and Medium-term Development
of Soccer in China (2016-2050), the National Plan for Construction of Soccer Fields
and Facilities (2016-2020), and the Guidelines on Accelerating Development of the
Fitness and Leisure Industry; launched reforms for soccer associations in all
provinces, autonomous regions, and municipalities directly under the central
government as well as in key cities for soccer development
Completed either work or planning in 31 provinces for integrating the basic medical
insurance schemes for rural and non-working urban residents, and realized
jurisdiction-wide settlement of medical expenses via basic medical insurance accounts
in 30 provinces; launched the serious disease insurance scheme in areas where medical
insurance accounts were under unified management.
8) The Belt and Road Initiative served as pacesetter to an open economy that saw continuous improvement.
The Belt and Road (the Silk Road Economic Belt and 21st Century Maritime Silk Road)
Initiative saw rapid progress. Development of the Initiative's framework, which consists of six
corridors and six channels serving multiple countries and ports*, made steady progress,
enabling China and its partners to markedly increase cohesion between their development
strategies and plans. China-Europe freight train services, which have registered a total of nearly
3,000 trips, were brought under a single unified brand.
A number of signature projects for international industrial-capacity cooperation got off
the ground. T he Addis Ababa-Djibouti Railway officially came into service-from investment
and financing to technology, operation, and management and maintenance, Chinese standards
were applied throughout the project, making it the first full-production-chain export of China's
' The six corridors refer to economic corridors, comprising the New Eurasian Continental Bridge, the China-Mongolia-Russia
corridor, the China-Central Asia-West Asia corridor, the China-Indochina Peninsula corridor, the China-Pakistan corridor, and
the Bangladesh-China-India-Myanmar corridor. The six channels refer to communications and distribution channels
comprising highways, railways, airlines, waterways, pipelines, and information networks.
10
railway. Steady progress was achieved in the construction of major international projects
including railways connecting Jakarta and Bandung (high-speed railway), China and Laos, China
and Thailand, and Hungary and Serbia; the railway project in southern Malaysia; and the
Gwadar Port in Pakistan.
Further steps were taken to facilitate foreign investment, ensuring that utilized
non-financial foreign investment remained stable. The regulation system and institutions for
outbound investment were improved, which enabled further growth of outbound non-financial
investment. All coastal ports installed and started using the Single Window System for foreign
trade, and all ports throughout China successfully integrated customs clearance procedures and
inspection and quarantine procedures. China experienced a 0.9% fall in total imports and
exports for the year, which was 6.1 percentage points less than the previous year's decrease.
The RMB was officially included in the International Monetary Fund's special drawing rights
(SDR) basket. Of particular note was China's hosting of the G20 2016 Hangzhou Summit
which produced important and far-reaching outcomes.
Box 7: Ma'or Platforms for Develo ment and 0 enin u
•
16 new areas were established between the early 1990s and 2015: Pudong in
Shanghai, Binhai in Tianjin, Liangjiang in Chongqing, Zhoushan
Archipelago in Zhejiang, Lanzhou in Gansu, Nansha in Guangzhou, Xixian
State-level New
in Shaanxi, Guian in Guizhou, Xihaian in Qingdao, Jinpu in Dalian, Tianfu
Areas
in Sichuan, Xiangjiang in Hunan, Jiangbei in Nanjing, Fuzhou in Fujian,
Dianzhong in Yunnan, and Harbin in Heilongjiang.
•
Two more new areas were established in 2016: Changchun in Jilin and
Ganjiang in Jiangxi.
•
Five zones in border areas were established during 2012-2015: Dongxing in
Key Experimental
Guangxi, Ruili in Yunnan, Manzhouli in Inner Mongolia, Erenhot in Inner
Zones for
Mongolia, and Mengla (Mohan) in Yunnan.
Development and
Two more were established in 2016: Pingxiang in Guangxi, and
•
Opening up
Suifenhe-Dongning in Heilongjiang.
Experimental Zones •
One was established in Ningxia in 2012.
for Developing Open •
One was established in Guizhou in 2016 .
Inland Economies
• The China (Shanghai) Pilot Free Trade Zone was established in 2013 .
Pilot Free Trade
•
Three more were established in Guangdong, Tianjin, and Fujian in 2015.
Zones
•
Seven more were established in Liaoning, Zhejiang, Henan, Hubei,
Chongqing, Sichuan, and Shaanxi in 2016.
Comprehensive
•
12 were established in 2016 in Tianjin, Shanghai, Chongqing, Hefei,
Experimental Zones
Zhengzhou, Guangzhou, Chengdu, Dalian, Ningbo, Qingdao, Shenzhen,
for Cross-border
and Suzhou.
E-commerce
State-level Economic •
The Guidelines on Improving the Assessment System for State-level
and Technological
Economic and Technological Development Zones and Promoting
Innovation-Driven Develo ment were issued in 2016.
Develo ment Zones
4. We deepened implementation of the innovation-driven development strategy, spurring the growth of ne1v
drivers for economic development.
The National Strategy for Innovation-Driven Development was published and
implemented. With a number of major scientific and technological advances as well as rapid
growth in high-tech industries, equipment manufacturing, and strategic emerging industries,
innovation has played an increasingly important role in bolstering development.
1) Innovation capaciry continued to improve.
We ensured the progressive and orderly development of major science and technology
innovation platforms, and deepened pilot reforms on all-around innovation in eight regions.
New strides were made in setting up science and technology innovation centers in Beijing and
Shanghai. Work began to establish three national demonstration zones for the transfer and
commercialization of scientific and technological achievements in Hebei-southern Beijing,
11
Zhejiang, and N ingbo. The first national technology innovation center for high-speed trains
was established, and the first Chinese-standard high-speed trains for which we hold complete
intellectual property rights went into service. A number of major science and technology
infrastructure projects were completed such as the project to build the world's largest
single-aperture radio telescope, the Five-hundred-meter Aperture Spherical Telescope (FAST).
A number of significant scientific and technological advances were achieved in sectors
including quantum communications, space, and aviation.
We pressed ahead with implementing major national science and technology programs,
and identified major projects for the Sci-Tech Innovation 2030 Agenda. A big push was made
to encourage technological innovation among enterprises, with policies being implemented in
relation to extra tax deductions for R&D costs, equity-based incentives for undertaking
innovation, income tax incentives for personnel who contribute their technological
achievements to become company shareholders, and improvements in the methods for
defining new- and high-tech enterprises.
Box 8: Major Science and Technology Innovation Platforms
State Laboratories
•
The plan for setting up state laboratories was formulated.
•
Construction began on six key state laboratories which are jointly
operated by provincial localities and central government departments. A
total of 255 key state laboratories of various disciplines, 177
Key State Laboratories
enterprise-affiliated key state laboratories, and 18 key state laboratories
jointly operated by provincial localities and central government
departments were established.
State Engineering
• Support was provided to establish 40 state engineering laboratories.
Laboratories
E -Commerce
• 17 additional cities were designated as e-corrunerce demonstration cities,
Demonstration Cities
bringing the total number to 70.
Integrated
• E ight integrated experimental zones on big data were set up in Guizhou,
Experimental Zones
the Beijing-Tianjin-Hebei region, the Pearl River Delta, Shanghai, Henan,
on Big Data
Chongqing, Shenyang, and Inner Mongolia.
• Approval was granted for the development of national innovation
National Innovation
demonstration zones in tl1e six regions of Zhengzhou-Luoyang-Xinx.iang
Demonstration Zones
in Henan Province, Shenyang-Dalian in Liaoning Province, the Shandong
and New- and
Peninsula,
Fuzhou-Xiamen-Quanzhou
in
Fujian
Province,
High-Tech
Hefei-Wuhu-Bengbu in Anhui Province, and Chongqing, taking the total
Development Zones
number to 17 nationwide. There are currently a total of 146 new- and
high-tech development zones.
•
Hubei, Fujian, and Guangdong provinces began to build themselves into
Innovative Provinces
Innovative Provinces. At present, there are seven Innovative Provinces
and Cities
and 61 Innovative Cities in total.
2) Entrepreneurship and innovation initiatives were carried out across the board.
Work on establishing 28 national entrepreneurship and innovation demonstration centers
m oved forward on all fronts. Information service platforms for entrepreneurship and
innovation policies began operating, and a whitepaper on entrepreneurship and innovation was
published. T he national seed fund for investing in emerging industries, the sub-funds of the
seed fund for encouraging the application of scientific and technological advances, and the
National SME Development Fund all came into operation. Trials got under way to allow banks
to make combined debt-equity investments in startups and small businesses, and creative
improvements were made to the system of guaranteed loans for business startups. T he second
National Week for E ntrepreneurship and Innovation and the Innovating China Tour were a
tremendous success. 128 platforms for entrepreneurship and innovation were developed by
large-scale central government enterprises, guidelines on further improving the policies for
managing the funding of central government-funded research programs were published and
implemented, and mechanisms for encouraging entrepreneurship and innovation were
gradually improved in research institutes and universities. All types of incubators and
12
professional maker spaces saw continuous development. On average, 15,100 new enterprises
were registered each day in 2016.
3) New technologies and industries as well as ne1v forms and models of business flourished.
There was rapid development in industrial robotics, integrated circuits, satellite applications,
general aviation, bio-industry, and other new industries, while growth in strategic emerging
industries was stable. In 2016, enterprises with annual turnover of 20 million yuan or more in
27 key strategic emerging industries increased their revenues by 11.32% and profits by 13.96%.
We pressed ahead with implementing the Internet Plus initiative and the national big data
strategy. Artificial intelligence, virtual reality, genetic engineering, and other new technologies
experienced more rapid development. The platform, sharing, and collaborative economies,
along with o ther new business models, achieved far-reaching penetration. New forms of
business mushroomed, including combined online-offline businesses, cross-border and social
networking e-commerce, smart home technology, and intelligent transportation. Online retail
sales for 2016 reached nearly 5.2 trillion yuan, a year-on-year increase of 26.2%, with online
retail sales of goods accounting for 12.6% of total retail sales of consumer goods.
4) Tran.iformatio11 and upgrading of traditional industries accele1-ated.
We moved faster to put the Made in China 2025 strategy into place, and organized
implementation of the three-year action plan to enhance core competitiveness of our
manufacturing industries and the project packages for transformation and upgrading of the
manufacturing sector. The eight plans for industrial application were implemented smoothly.
Major breakthroughs were made in research and development on key railway equipment. A
total of 226 programs to run comprehensive, standardized tests on smart manufacturing
technologies and apply new manufacturing models proceeded as planned. We made progress in
building the National Robot Test and Evaluation Center. An investment fund for advanced
manufacturing was set up.
5) Solid steps were made in innovating and developing the service industry.
We implemented the guidelines on accelerating the development of producer and
consumer services and published the implementation plan for relaxing controls over market
access in the service sector. A new round of comprehensive pilot reforms in the service sector
began. We allocated funds for guiding the development of the service industry and supported
the establishment of 163 public-service platforms. The tertiary industry has continued to
outgrow the secondary industry, and the value-added of the tertiary industry accounted for a
higher proportion of GDP, reaching 51.6%.
6) Further improvements 1vere made to infrastmcture networks.
As a result of accelerated development of the modern comprehensive transportation
system, the length of transportation infrastructure networks open to traffic exceeded five
million kilometers. We unveiled and implemented the 100 Demonstration Projects to Improve
Transportation Quality and Efficiency, 200 Transportation Projects to Help Reduce Poverty,
and 300 Major Transportation Infrastructure Projects. We worked to stimulate development of
multimodal transportation and the general aviation industry and integrated the development of
transportation and logistics infrastructure.
The strategy on revolutionizing energy generation and consumption was launched, and
energy supply capacity continued to grow stronger. The proportion of non-fossil energy
consumption rose to an estimated 13.3% of total energy consumption while the proportion of
coal consumption dropped to 62.0%. Fiber-optic networks were established in almost all
prefecture-level cities, next-generation information infrastructure saw yet further enhancements,
and China's 4G network, which is the world's largest, was completed.
•
Railways
Box 9: M a·or Infrastructure Construction
3,281 kilometers of new railway lines came into operation. 124,000 kilometers
of railway line is now in service, of which 22,000 kilometers are high-speed rail
lines. The Zhen hou-Xuzhou · h-s eed railwa and the Chon in -Wanzhou
13
•
Highways
•
Waterways
•
Airports
Urban Rail
Transit
Urban Utility
Tunnels
•
•
•
Energy
•
Water
Conservancy
Information
•
high-speed railway were completed and opened. The Shanghai-Kunming
high-speed railway was completed.
4.69 million kilometers of highway are now open to traffic, of which over
130,000 kilometers are expressways. Major construction work on the
22.9-kilometer Hong Kong-Zhuhai-Macao Bridge was completed.
More than 2,200 large deepwater seaport berths (including those on the lower
Yangtze River downstream from Nanjing) are now in service, and 14,100
kilometers of high-grade inland waterways are open to navigation.
The total number of civil airports in service reached 215. Construction on
Beijing's new airport was accelerated, and construction began on Chengdu's new
airport.
Urban rail transit is in operation in 29 cities, with a total of about 4,000
kilometers of in-service lines.
Construction began on 2,005 kilometers of underground utility tunnels in 147
cities and 28 counties nationwide.
Installed capacity stands at 330 million kilowatts of hydropower, 150 million
kilowatts of wind power, 77.42 million kilowatts of solar power, and 14 million
kilowatts of biomass power. The total length of pipelines transporting oil and
natural gas has reached 122,000 kilometers.
Construction began on 21 major water conservancy projects, including the
project to divert water from the Yangtze River to the Chao Lake and the Huai
River. Of the 172 planned projects for major water conservancy, 106 are now
under construction, with the total investment in ongoing projects exceeding 800
billion yuan.
The number of Internet broadband access terminals reached 690 million.
5. We worked to increase the capaci[Y for sustainable agricultural development and achieved new progress in
agriculturalmoderni~tion.
The trend of ensuring progress while maintaining stability continued in agricultural and
rural development and grain output reached 616 million metric tons, thus ensuring agriculture
served as a strong pillar of economic and social development.
1) Agriculturalproduction capaci[Y continued to increase.
We implemented the plan to increase China's grain production capacity by SO million
metric tons, moved faster to develop high-quality farmland, and completed in full the work of
designating permanent basic cropland throughout the country. As a result, our ability to
guarantee national food security and the supply of major agricultural products has been further
increased. New grain silos with a total capacity of 9.75 million metric tons were built. In
working to optimize agricultural production while maintaining its stability, we reduced the area
of land for corn kernel cultivation by 1.36 million hectares, expanded trials to cultivate feed
crop or soybean crop instead of grain crop, and continued to raise overall production capacity
for livestock and aquatic products.
We made steady progress in promoting green agricultural development, launching a
campaign to control and prevent serious agricultural environmental pollution, establishing pilot
demonstration zones for sustainable agricultural development, and securing important
achievements in implementing the action plan against pollution in rural areas •. We intensified
support for trials to comprehensively manage agricultural pollution from non-point sources,
chernozem soils in the northeast, and former grassland now under cultivation in transition
areas between cropland and grassland.
2) Agricultural and rural infrastructure continued to improve.
We successfully implemented projects to harness small and medium-sized rivers, reinforce
small, dilapidated reservoirs, build key irrigation and drainage facilities as well as upgrade
' The action plan aims to: 1) control water consumption for agricultural purposes; 2) cut the use of pesticides and chemical
fertilizers; 3) use recycling as a means of handling the pollution caused by the waste of livestock and poultry farming, plastic
mulch fllm, and straw burning.
14
supporting infrastructure, and develop small-scale irrigation and water conservancy facilities.
The area of cropland under efficient water-saving irrigation exceeded 1.33 million hectares. We
also launched the project to consolidate and advance efforts to ensure safe drinking water in
rural areas.
A new round of power-grid improvement projects began throughout the country,
including key projects for upgrading power grids in rural areas, small towns, and hub villages,
and for providing power supply to all electric pump sets on rural flatlands. Transportation
infrastructure and services in rural areas were continuously improved, and 290,000 kilometers
of rural road were newly built or upgraded. We continued to implement broadband
development projects in villages, carried out nationwide trials of providing universal
telecommunications services in rural areas, and further improved rural information
infrastructure.
3) Integrated development of the pn'mary, secondary, and tettiary industries in mral areas advanced
smoothfy.
The "100 counties, 1,000 townships, 10,000 villages" pilot demonstration project to
promote rural industrial integration was implemented, with all 137 demonstration counties
undertaking active explorations on how to improve development plans, promote integration
between industrial development and urbanization initiatives, establish an industry system for
modern agriculture, and innovate investment and financing mechanisms in the agricultural
sector. We accelerated efforts to establish incubation parks for integrated development of
industries in rural areas, develop diverse entities that integrate primary, secondary, and tertiary
industry operations, and cultivate a group of leading enterprises in agricultural industrialization.
New industries and new forms of business in rural areas experienced robust growth.
4) Solid results were achieved in mral rejom1.
We issued and implemented the Measures for Separating Land Ownership Rights, Contract
Rights, and Management Rights in Rural Areas, and determined, registered, and certified
contracted rural land-use rights for more than 53.3 million hectares of land. The determination
and registration of integrated housing ownership and land-use rights for rural housing land and
rights for collectively owned land designated for construction was accelerated. We drew up the
Guidelines on Reforming the Rural Collective Property Rights System, and moved ahead with
pilot reforms to grant shareholder rights for rural collective assets as well as trials to permit the
sale of land contract rights. We carried out trials in a prudent and orderly fashion to allow rural
residents to mortgage their contracted land-use rights and residential property rights. The cases
of transferring or mortgaging rural land use rights have continually increased. New types of
agribusinesses thrived and their number rose to more than 2.7 million.
6. We funher implemented the Three Initiatives and New Urbanization, which has helped reshape and
enhance the pattern of urban and mral development.
We fostered synergy between the Three Initiatives (the Belt and Road Initiative,
coordinated development of the Beijing-Tianjin-Hebei region, and development of the
Yangtze Economic Belt) and the coordinated development of the western, northeastern,
central, and eastern regions. We promoted coordinated and integrated regional development
and urban-rural development, and increased the quality and standards of New Urbanization.
New growth areas, poles, and belts experienced stronger, faster development.
1) The Three Initiatives advanced in a solid and orderfy mannet:
All provinces, autonomous regions, and municipalities directly under the central
government actively took part in the Belt and Road Initiative, and initial results were delivered
in developing Xinjiang as the core of the Silk Road Economic Belt and Fujian as the core of
the 21st Century Maritime Silk Road.
In systematically promoting the coordinated development of the Beijing-Tianjin-Hebei
region, we sped up planning and development of Beijing's sub-administrative center,
implemented a number of demonstration projects to relieve Beijing of functions nonessential
15
to its role as China's capital, facilitated coordination in three major areas-transportation,
ecological conservation, and industrial development -and enacted a range of major reform
measures. We published and implemented the Outline on Developing the Yangtze Economic
Belt, continued coordinated efforts to champion environmental protection and eschew
large-scale development, accelerated work on building a green, ecological corridor, and fully
established a mechanism for inter-provincial consultation and cooperation covering the upper,
middle, and lower reaches of the River.
Table 5. The Belt and Road Initiative
Cooper.1tion agreements on joindy building the Belt and
Road ~e signed with Iran, Saudi Arab~, Egypt,
Poland, the Czed1 Republic, Latvia, Laos, Cambodia,
and Bangladesh. The Plan for Developing the
China-Mongolia-Russia
Economic
Corridor, the
cooperation plan to coordimue the Silk Ro:ad Economic
Zone development \Vith Kazakhstan'~ new economic
policy "Nurly Zhol" (Bright Path), and the China-Czech
Cooperation Plan under th e framework of the Dell and
Road Initiative were signed.
China-Europe fTcight trains
be~n
Addis Ababa-Djiboutt r:lLhvay ,,;;u opened,
construction on the China-L'l05 rnilw·ay got under way. and
the comrncc for the railway prOJeCt in southern ~ 1:\laysia. wa:§
official!}' 2\v:t rded to China. Breakthroughs were m~dc in
sign:tturc projects, such as the Hungar)'-Scrbia railway, the
J>karta-llandung high-speed railw>y, Phose II of
reconstruction of Karakoram Highway (KKH) (fhakot to
Havelian), the China :\t:ction of the Second China-Rus!'i<\
Crude Oil Pipcllne, the China-Egypt Suez Economic and
Trade Cooperation Zone (SETC Zone), ~lalays•a-China
Kuantan lndu suial !);ark. and the China+Bclarus lndusuial
P.uk.
sen•ice in 22 Chinese
A tota.l of 134 Confuclus lnstirutcs as well as 127
Confucius Classroom~ in elementary and secondary
schools ha\•c been ope11cd in 51 countries a.long the Belt
and Rood route. Documentaries on the Belt and Road
were relC::lscd and an international think tank alliance and
the offic~1l website of the Beh and Road lniti.1tive were
established.
Table 6. Coordinated Development of the Beijing-Tianjin-Hebei Region
The Economic >nd Social Development of the Beijing-Tianjin-Hebci Region
during the 13th Five-Year Plan Period was issued. A campaign to innov;ne the
distribution system for agricultural products in the region was launched.
Mechanisms for pairing programs were established for Beijing and Tianjin to
provide dedicated assistance to ZhanJriiakou and Chcn~dc in Hcbci.
Coordinated Development of the
Beijing-Ti>njin-Hebei Region
The first phase of the project to de\"elop the sub-administrative cente-r of Beijing
was fuUy implemented, and the development of major transportation
infrastructure and 1:\ndscape improvement projects picked up speed. Guidel ines on
strengthening planning, development, and management o f the Beijing-1-lebci
border area were published and implemented, and the catal og of new businesses
prohibited and rest ricted in Beijing was strictly implemented.
/
A total of 117 goods markets were relocated fro m downtown Beijing, and 335
genera1 manufacturing companies were shut down. The growth and growth rate o f
Beijing's permanent resident population continued ro case and the growth rate of
permanent residents in the Dongchcng, Xichen& Haidian, Chaoyang. Fcngtai, and
Shijingshan districts became negative in the first half of 2016 and this has so far
been maintained.
\
\
Full construction began on the Beijing-Zhangjiakou and Datong-Zhangjiakou
railways. The Langfang section of the Capital Ring Expressway, the Tianjin section
of the Beijing-Qinhuangdao Expressway, and the Beijing section o f Beijing-Taipei
Expressway were ope n to traffic, and work on a number of unfini shed cxpressw<lys
and bottleneck sec tions of highways was completed. A plan fo r devel oping the
airport economic zone around Bcijins's new airport was published and
implemented, and the construction of Bcijmg's new airport was fully advanced.
lmplementation continued for major cnvironment.U protection projects such as
those to address, at source, the dust storms affecting 13cijing and Tianjin :md to
divert water from the Yellow River to the Baiyangdian Lake in Hcbei.
Beijing Hyundai Motor Co, Ltd. opened its fourth plant in Cangzhou, Hebci
Province. Const ructio n was accelerated on major projects and industrial
cooperation parks, such as the phase-II steel plant pro ject o f Shougang Jingtang
Company and the Tianjin-Hebei industrial demonstration zone for a circular
economy.
16
Table 7. The Yangtze Economic Belt
The plans for developing city clusters in the Yangtze R;ver Delta and the Chengdu-Chongqing region and for
protecting and developing the Yangtze R;ver shoreline were published and impTemented.
Inspections targeting problems that were impairing effective coordinated p rotection of the Rj,·er were carried
out and a number of polluting enterprises were punished. A campaign against illegal ports was launched, with
about 600 illegal ports being closed along the main stream o f the Yangtze.
A combined river-ocean shipping se rvice center to be built in Z houshan was approved, and the plan on developing
multimodal transportation in ports along the Yangtze Economic Belt during the 13th Five-Year Plan period was
formulated. The phase-11 project of the 125-meter deep water shipping channel from Nanjing on downstream was
basically co mpleted. The shiplift started operation at the Three Gors;es Dam. The Shangh ai-Kunming and
Chongqing-Wanzhou high-speed railways were opened, and construcuon on major projects including the
Mianyang-Jiuzhaigou Expressway began.
Development o f 33 transformation and upgrading demonstration zones including the Suzhou Industrial Park
was accelerated.
2) Implementation of the master strategy for regional developmmt and differentiated development policies
for differmt regions deepened.
We increased efforts to accelerate large-scale development in the western region, with
construction beginning on a number of signature projects. A relatively high-pace of economic
development was maintained in the central and western regions. A new round of strategies and
a number of major policies and measures for revitalizing the northeast were implemented, and
reform in key areas, such as SOEs and the investment and business environment, made fresh
progress. We underscored the strategic position of the central region, designating it as the
country's key advanced manufacturing center, and as the priority area for New Urbanization,
the core area for m odern agricultural development, the demonstration area for promoting
ecological progress, and the key area for comprehensive opening up. The city clusters along the
middle reaches of the Yangtze River played a greater role as major growth poles. The eastern
region continued to leverage its advantages in transforming and upgrading industries, ill
pursuing opening up and innovation, and in coordinating land and marine development to
generate a constant stream of new drivers for growth and produce new highlights ill
development.
We introduced guidelines on promoting coordinated development between regions, and
continued to improve the system of differentiated regional policies. We ensured the orderly
development of major function platforms-such platforms include national experimental
zones for integrated, complete reform, state-level new areas and all types of development
zones, demonstration zones for industrial relocation, demonstration zones for integrating
industrial and urban development, and demonstration airport economic zones. We intensified
efforts to combat poverty in old revolutionary base areas, areas with concentrations of ethnic
minorities, border areas, and contiguous poor areas. We improved polices and measures for
promoting economic and social development and continuing stability in Xinjiang, Tibet, and
the Tibetan ethnic areas in Sichuan, Yunnan, Gansu, and Q inghai provinces.
17
•
Development of
the Western
Region
•
•
Revitalizing
Northeast China
•
•
•
Rise of the
Central Region
li>
•
•
Eastern China as
the Spearhead of
Development
•
Box 10: Development of the Four Regions
The plan for large-scale development of the western region during the 13th
Five-year Plan period was issued, and the State Council's General Office
published the Guidelines on Scaling up Paired Assistance Programs for
Xinjiang (G.B.F. [2016] No. 4), the Guidelines on Policies and Major Projects
to Further Support the Economic and Social Development of Tibet (G.B.F.
[2016] No. 50), and the Guidelines on Policies and Major Projects to Further
Support the Economic and Social Development of the Tibetan Ethnic Areas
in Sichuan, Yunnan, Gansu and Qinghai Provinces (G.B.F. [2016] No. 51).
Construction began on 30 key projects .
Top-level design was carried out on a new round of revitalization strategies for
the northeast. The CPC Central Committee and State Council issued the
guidelines on fully revitalizing the northeast and other old industrial bases, and
the State Council issued the Guidelines on Major Measures for Further
Implementing a New Round of Revitalization Strategies for the Northeast and
Facilitating its Swift and Successful Economic Recovery (G.F. [2016] No. 62).
In support of the above strategies, the plan for revitalizing the northeast
during the 13th Five-Year Plan period and the three-year rolling plan for
revitalizing the northeast and other old industrial bases (2016-2018) were
issued.
The State Council's General Office issued the Guidelines on Accelerating
Efforts to Comprehensively Improve Conditions in Areas Affected by
Mining-induced Subsidence (G.B.F. [2016] No. 102), and guidelines were
introduced to support industrial transformation and upgrading in old industrial
cities and resource-dependent cities and to promote development and reform
of the private sector in the northeast.
The plan for promoting the rise of the central region during the 13th Five-Year
Plan period was issued.
The strategic position of the region was underscored, designating it as the
country's key advanced manufacturing center, and as the priority area for New
Urbanization, the core area for modern agricultural development, the
demonstration area for promoting ecological progress, and the key area for
comprehensive opening up, with over 160 key projects being approved.
The State Council issued the Guidelines on Deepening Regional Coopera.tion
in the Pan-Pearl River Delta (G.F. [2016] No. 102) with a view to promoting
cooperation between the development of key areas.
In implementing the strategy of building China into a strong maritime country,
the plan for national marine-economy development during the 13th Five-Year
Plan period and the guidelines on establishing demonstration zones for
marine-economy development were issued.
3) We steadi!J advanced the development of Ne1v Urbanization.
We granted urban residency to more people with rural household registration living in
urban areas, and issued a number of key policies in support of this work, such as the guidelines
on reform of the household registration system, the policy for implementing the residence
certificate system, and the policy for linking increases in the amount of land designated for
urban development in a locality to the number of former rural residents granted urban
residency there. A total of 16 million people with rural household registration were granted
urban residency in 2016. In total, permanent urban residents now account for 57.35% of the
population, while the percentage of registered urban residents has reached 41.2%. We planned
and developed city clusters in an orderly way, and supported Wuhan and Zhengzhou in
developing as national principal cities. We facilitated the development of emerging small- and
medium-sized cities as well as small towns with unique features across the country, and
extended comprehensive trials of New Urbanization programs to two provinces and 246 cities
and towns. Trials for comprehensive reform of small- and medium-sized cities yielded positive
results in 61 cities.
18
•
Policies
Formulated
Major Plans
Formulated
•
Box 11: New Urbanization
Guidelines on stepping up New Urbanization; the plan to grant urban household
registration to 100 million people without urban residency; guidelines on deepening
reform of the administrative system in developed towns; the measures for
separating land ownership rights, contract rights, and management rights in rural
areas; the circular on implementing supportive financial policies to grant urban
residency to people with rural household registration living in urban areas; guidelines
on implementing the mechanism linking increases in the amount of land designated
for urban development in a locality to the number of former rural residents granted
urban residency there; guidelines on steadily reforming the rural collective property
rights system
Plans for developing city clusters in the Yangtze River Delta, along the middle
reaches of the Yangtze, and in the Chengdu-Chongqing reg10n, the
Harbin-Chan chun re 'on, and the Central Plains re 'on
7. We intensified environmental protection and energy and resom'Ce conservation, semnng ear/y
achievements in promoting grem development.
Energy consumption and carbon dioxide emissions per unit of GDP fell by 5% and 6.6%
respectively, both surpassing annual targets. According to estimated figures, chemical oxygen
demand was reduced by 2.6%, ammonia nitrogen emissions by 2.9%, sulfur dioxide emissions
by 5.6%, and nitrogen oxide emissions by 4.0%. A year-on-year increase of 2.1 percentage
points occurred in the proportion of days with good or excellent air quality for cities at or
above prefectural level, while those cities at or above prefectural level which fell short of the
national PMz. 5 standards still managed to achieve an 8.8% reduction in PMz.s concentrations.
The proportion of surface water with a national quality rating of Grade III or above rose by
1.8 percentage points year on year, and the proportion of surface water with a rating lower
than Grade V, meanwhile, fell by 1.1 percentage points. Water consumption per 10,000 yuan of
GDP fell by 5.6%.
Table 8. Ecological Progress and Green Development
Percent
2012
2013
2014
2015
2016
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
-6.0
-7.0
-8.0
-8.1
-9.0
DDrop in energy consumption per unit ofGDP
~Drop in carbon dioxide emissions per unit ofGDP
D Drop in water consumption per I 0,000 yuan of GDP
Source: National Bureau of Statistics; National Development and Reform Commission
19
1) Work to promote ecologicalprogress moved ahead.
We promulgated and implemented the measures on evaluating performance in advancing
ecological progress. We decided to build pilot zones for ecological advancement in Fujian,
Jiangxi, and Guizhou provinces, and stepped up the development of pilot demonstration zones
for promoting ecological progress. We issued and implemented a number of reform plans on
ecological progress, including: the pilot plan on improving the national system for
natural-resource asset m anagement; the guidelines for trial reforms to establish a system to
bring county- and prefecture-level environmental m onitoring, inspection, and law enforcement
bodies directly under the jurisdiction of provincial-level environmental bodies; the plan for
implementing the emissions permit system to tighten emissions control; and the guidelines on
establishing and holding firm to the red lines for ecological conservation and on fostering
market entities for environmental governance and ecological conservation. Pilot reforms of the
compensation system for ecological and environmental dam age were carried out in seven
provinces and municipalities directly under the central government including Jilin.
The guidelines on bringing the river chief system into full operation were issued, and
mechanisms for compensating ecological conservation efforts were improved. We moved faster
to implement a new round of projects to return marginal farmland to forest and grassland,
build key forest shelterbelts, comprehensively address the expansion of stony deserts, control
the sources of dust storms affecting Beijing and Tianjin, and bring soil erosion under control.
A basic framework for wetland conservation was put in place. The central governm ent carried
out environmental inspections.
2) The development strategy for functional zones was further implemented.
Key ecosystem service zones have been established in 676 counties and 87 forestry
bureaus in key state forestry areas. A negative list for industry access to key ecosystem service
zones was issued and put into force. Work got under way in 11 coastal provinces to draw up
and implement plans for marine functional zones. T he plan for establishing a national park
system on a trial basis was implemented, with trials going ahead in national parks at the Yangtze,
Yellow, and Lancang river sources, in the habitats of Siberian tigers, Far Eastern leopards, and
giant pandas, in the Shennongjia area, in the Wuyi Mountains, and at the source of the
Qiantang River. The mechanisms for monitoring and providing early warning on the carrying
capacity of resources and the environment were basically established, with initial trials being
implemented in the Beijing-Tianjin-Hebei region. T he pilot project for municipal or
county-level governments to integrate various types of urban plans into a single urban plan
moved forward, and the plan to carry out spatial-planning trials at the provincial level was
implemented. The National Land Plan (2016-2030) and the Adjustments to the General Plan
for National Land Use (2006-2020) were introduced.
3) Sustained progress tvas made in energy conservation and emissions reduction.
T he results of performance evaluations of provincial-level governments in fulfilling
responsibilities for energy conservation targets during the 12th Five-Year Plan period were
released to the public. The system to control both the total amount and intensity of energy and
water consumption during the 13th Five-Year Plan period was established. Pilot projects to set
up systems for the paid use and trade of energy consumption rights were carried out in
Zhejiang, Fujian, Henan, and Sichuan provinces. We stepped up development of the circular
economy, issuing the plan to create a system for extended producer responsibility and making
strides in promoting circular operations within industrial parks. The plan for developing energy
conservation and environmental protection industries during the 13th Five-Year Plan period
was issued. T he guidelines on establishing a green finance system were introduced and applied,
bonds worth 229.66 billion yuan for launching eco-friendly initiatives were issued, and the
energy conservation and environmental protection industries achieved robust growth in terms
of both scale and strength .
4) More was done to comprehensivelY address environmentalproblems.
20
Stronger measures on the prevention and control of air pollution in the
Beijing-Tianjin-Hebei region (2016-201 7) were promulgated and implemented, and coal
consumption in key areas was further cut. Coal-fired power plants were urged to swiftly
upgrade their facilities and achieve ultra-low emissions. A total of 4.046 million old and
high-emission vehicles were removed from roads nationwide. The action plan on
environmental protection of the Yangtze Economic Belt (2016-201 7) was implemented.
Planning was completed on the establishment of protection zones for 319 centralized drinking
water sources in 126 cities at or above prefectural level in 11 provinces and provincial-level
municipalities. The national list of major drinking water sources was formulated.
We identified and cleaned up both black, malodorous water bodies and undesignated
refuse dumping points in urban areas. A project to manage household refuse in rural areas got
fully under way, and comprehensive measures were taken to improve the rural living
environments. We issued the action plan to prevent and control soil pollution and the measures
for soil environmental governance on polluted land plots, launched 14 related pilot projects
aimed at prevention, control, and restoration, and also established six trial zones for
comprehensively preventing and curbing soil pollution. Greater efforts were taken to
comprehensively improve land in key areas contaminated by heavy metals. We continued to
improve and restore the geological environment in mining areas throughout the country. We
made headway in managing and controlling environmental risks and in responding effectively
to environmental emergencies.
5) Our efforts to respond to climate change gmv stronger.
A work plan to control greenhouse gas emissions during the 13th Five-Year Plan period
was introduced. Trials and demonstrations to encourage low-carbon growth in provinces,
municipalities, cities, towns, industrial parks, and communities proceeded in an orderly manner.
Encouraging progress was made in establishing a national market for the trading of carbon
emission rights. The Action Plan on Developing Climate Resilient Cities was promulgated.
We quickened the pace of South-South cooperation on climate change and launched
cooperation projects in developing countries to set up 10 low-carbon demonstration zones,
launch 100 mitigation and adaption programs, and provide 1 ,000 places on climate-change
training programs. China was one of the first countries to sign the Paris Climate Agreement
and also ratified it at a relatively early stage. The presidents of China and the United States
deposited with United Nations Secretary-General Ban I<.i-moon their respective country's
instrument to join the Paris Agreement-the proposal to hold the ceremony, which was the
first of its kind, was put fo rward by China, making a significant contribution toward the early
entry into force of the Paris Agreement. China attended the United Nations Climate Change
Conference in Marrakech, Morocco, where it played a constructive role and contributed to the
overall success of the conference.
8. We moved faster to develop social programs and improve people~ wellbeing, ensuring that living
standards continued to rise.
We directed major efforts toward implementing targeted measures for poverty alleviation
and elimination, made social policies m ore effective in m eeting basic living needs, and ensured
more equitable access to basic public services.
Relocating
People from
Inhospitable
Areas
•
•
Developing
Local Industries
Box 12: Targeted Poverty Reduction Projects
We pressed ahead with relocating people from inhospitable areas under new
circumstances, and coordinated the construction of housing, supporting
infrastructure, and basic public service facilities.
Taking advantage of local resources in poor areas, we gave full play to the
potential o f farmers' cooperatives, leading agricultural enterprises, and other
market entities, put in place a sounder mechanism for providing targeted support
to ensure every household and every resident benefits from the development of
local industries, and continued to develop industries that harness local strengths,
21
•
Promoting
Employment
Improving
Education
•
Improving
Health
•
•
Protecting the
Environment
•
Meeting Basic
Needs through
Social Security
Programs
•
Engaging All
Sectors
•
Improving
Transportation
so as to help people shake off poverty by providing jobs close to home.
We strengthened vocational skills-training and employment services for people
living in poverty, protected their legitimate rights and interests, and promoted
cooperation on labor services, so as to help people in need find employment in
or around their local area.
We ensured appropriate distribution of educational resources in poor areas,
systematically improved conditions in schools, worked to raise basic cultural
standards among people living in poverty and the labor skills of families
experiencing frnancial difficulties, and redoubled our efforts to implement all
types of education policies for poverty relief.
We improved conditions in medical and health care institutions in poor areas to
ensure better health care service provision, narrowed the gap in medical and
health care resources between regions, and further refrned the system for
providing basic health care service. In 2016, we provided 30.998 million people
with medical assistance, 2.239 million households with temporary assistance, and
key groups in need with per capita subsidies of 644.6 yuan.
We reviewed and verified the conditions of individuals and households that have
been driven into poverty by medical expenses and provided care and treatment
on a per-category basis. We implemented medical-insurance policies and
measures which were weighted toward rural residents living in poverty so as to
ensure they received better cover.
We did more to protect, restore, and improve ecosystems and the environment
in poor areas, helping these areas to become better able to achieve sustainable
development. More poor areas and people living in poverty were included in
compensation programs for ecological conservation efforts.
We coordinated the development of social assistance systems, fo stered effective
links between poverty-alleviation development and the social safety net,
improved social assistance systems such as the rural subsistence allowance
scheme and the system for providing basic assistance to persons living in
extreme poverty, and established a sounder system for providing support and
services to people with disabilities and to "left-behind" children, women, and
elderly people.
We gave full play to the guiding and exemplary role of coordinated poverty
reduction efforts between the eastern and western regions and the targeted
poverty-alleviation efforts of central government bodies, and drew on the
strength of all sectors of society both at home and abroad to make poverty
reduction work more targeted and effective and to create powerful synergy in the
efforts to combat poverty.
Giving high priority to old revolutionary base areas, areas with concentrations of
ethnic minorities, border areas, and contiguous poor areas, we took targeted
poverty-relief and poverty-elimination measures through transportation
improvements and worked faster to improve transportation infrastructure,
paving roads in more than 13,000 villages and making bus services accessible to
5,500 more villages, bringing the accessibility rate for bus services in villages to
95%.
1) The fight against pover!J began in full swing.
The plan for poverty elimination during the 13th Five-Year Plan period was released and
implemented, and over 100 billion yuan was allocated to government poverty-alleviation funds
nationwide. T he plan for relocating people from inhospitable areas during the 13th Five-Year
Plan period was published and implemented. In line with this, related projects were launched in
22 provinces, autonomous regions, and municipalities direcdy under the central government,
and last year's objective to provide housing for the 2.49 million people relocated from
inhospitable areas was completed on time. We made great progress in reducing poverty by
providing financial support and by promoting the development of locally viable industries,
education, transportation, water conservancy projects, tourism, pho tovoltaic power facilities,
e-commerce, and work-relief programs in poor areas. Coordination on poverty reduction
22
between the western and eastern regions continued to grow. We worked to ensure the
implementation of the provincial plan for promoting development and fighting poverty in
contiguous poor areas during the 13th Five-Year Plan period. Greater support was given to
promote revitalization and development and to reduce poverty in old revolutionary base areas
such as the Sichuan-Shaanxi region and the former Central Soviet Area in southern Jiangxi. We
supported extremely poor autonomous prefectures with concentrations of ethnic minorities,
such as Liangshan in Sichuan, Nujiang in Yunnan, and Linxia in Gansu, to ensure they can
work more quickly in building a moderately prosperous society.
2) The capaci(Y to provide social secuti(Y 1vas constantlY enhanced.
Per capita disposable personal income increased by 6.3% in real terms, and the growth rate
of rural income was greater than that of urban income for the seventh year in a row. Basic
pension benefits for retirees were raised by approximately 6.5%. The number of people under
the basic medical insurance system exceeded 1.3 billion, and the government subsidy for basic
medical insurance for rural and non-working urban residents increased from 380 yuan to 420
yuan per capita per annum. The system for granting living allowances to people with disabilities
who face financial difficulties and providing a care subsidy to people with serious disabilities
was put in place across the country.
3) The supp!J of betterpublic services was maintained.
The gross enrollment ratio for preschool education came to 77.4%; the retention rate of
nine-year compulsory education grew to 93.4%; and the gross enrollment ratio for senior
secondary education reached 87 .5%. The gross enrollment ratio for higher education stood at
42.7%, surpassing the average level of upper-middle-income countries. The modern vocational
education system was further improved.
The system for providing basic medical care services for rural and urban residents also
improved and the government subsidy for basic public health services increased to 45 yuan per
capita per annum, helping to make access to services far more equitable. The Healthy China
2030 Program was issued and implemented. The number of occupational physicians and
physician assistants increased to 2.31 per 1,000 people and the number of general practitioners
grew to 1.53 per 10,000 people. We ensured smooth implementation of the policy to allow
couples to have two children and further improved childbirth services; and China celebrated
the births of 17.86 million babies over the course of the year.
The system of public cultural services was further strengthened and all provinces,
autonomous regions, and municipalities directly under the central government worked out
standards for providing these services. The basic elements underlying the project to develop
and pass on fine Chinese cultural traditions, such as the implementation guidelines, were
formulated. Chinese athletes once again achieved great success at the Olympic and Paralympic
Games which were held in Rio de Janeiro. Winter, water, and aviation sports, mountaineering
and outdoor pursuits, as well as other sports all developed at a faster pace.
•
Education
•
Health Care
•
Elderly Care
Assistance for
Persons with
Disabilities
Culture
•
•
Box 13: Supply of Public Services
Supported the improvement of basic conditions in over 1,400 schools providing
compulsory education, 258 secondary vocational schools, 208 regular senior high
schools, and 29 local universities and colleges.
Primarily supported the development of 400 county-level hospitals, 29
prefecture-level hospitals, 32 institutions providing pediatric services, 247 maternal
and child health centers, 236 disease prevention and control institutions, and 244
projects for monitoring food safety risks.
Supported the improvement of facilities in 545 institutions providing dedicated
elderly services, nursing homes, community day-care centers, and other facilities
for partially or totally incapacitated elderly persons.
Supported the implementation of 187 projects for the development of provincialor prefecture-level rehabilitation facilities and county-level care facilities for
persons with disabilities.
Supported the building of 73 prefecture-level public libraries, cultural centers, and
23
•
Sports
museums as well as the implementation of 225 projects for protecting national
cultural and natural heritage and ensuring they are put to best use. The total
number of visitors to public libraries throughout the country rose by 12%, the
number of visitors to cultural centers by 10%, and the number of visitors to
museums by 5%. Radio and television broadcasts respectively covered 98.4% and
98.9% of the whole population.
Supported the construction of 498 soccer fields and county-level public stadiums,
and provided subsidies to 1 ,260 large stadiums open to the public for free or for a
minimal charge.
4) The construction ofgovernment-subsidized housingprogressed steadi!J.
We supported government-subsidized housing projects, such as the rebuilding of
run-down areas, by increasing cen tral government budgetary investment and special funding in
this area and continuing to secure direct financing through c01porate bond issuance. In 2016,
we rebuilt over six million housing units in run-down urban areas and renovated over 3.8
million dilapidated rural houses.
In assessing the overall situation related to the targets set out in the 2016 Plan, we can see
that major targets for national and social development, such as the economic growth rate,
employment levels, the consumer price index, and the balance of payments, were kept within
proper range. While our performance in relation to targets reflecting the quality and benefits of
development, such as those concerning scientific and technological innovation, ecological
conservation and environmental protection, and people's wellbeing, was further improved.
Overall, the 2016 Plan was successfully implemented.
All 19 obligatory targets were achieved as planned. Of the 43 anticipatory targets, 38 were
either on target or exceeded, while performance in relation to the remaining five-targets for
the primary industry, fixed-asset investment, the total import and export volume of goods, M 2
money supply growth rate, and per capita disposable income of urban residents-fell short of
expectations. It should be clarified that the anticipatory targets are neither mandatory nor
predicted; as development o bj ectives that the government hopes to meet, they are a reflection
of the anticipated direction of national development and policy orientation. T he actual
performance for these targets may be higher or lower than the planned figures.
The major reasons for the discrepancies between the projected figures for these
anticipatory targets and actual performance are as follows:
First, to deal with a period of supply in agricultural products outstripping demand as well
as a build-up in the inventory of agricultural products and a resulting trend of depressed prices,
we took the initiative to adjust what and how much we grow and breed, which caused the
output of some major agricultural products to drop off. As a result, the increase in the
value-added of the primary industry was slightly lower than the planned figure.
Second, a combination of insufficient market demand, a decrease in returns on investment,
and low confidence amo ng enterprises gave rise to considerable downward pressure on
investment, particularly investment from private sources and in the manufacturing sector.
These factors, as well as a prolonged and larger-tl1an-expected drop in fixed-asset investment
prices resulted in the increase in fixed-asset investment being lower than the anticipatory target.
Third, a range of factors, such as a stuttering global economic recovery, weak demand in
the international trade market, and increasing protectionism against China, meant that,
although the total import and export volume of goods began to rise steadily, it still fell short of
projected figure.
Fourth, we needed to ensure that a favorable m onetary and financial environment for
supply-side structural reform was created. So while ensuring there was sufficient support in
place for the real economy, we stayed away from strong stimulus policies affecting money
supply that would have an economy-wide impact, and instead worked to deleverage, guard
against risks, and prevent an asset price bubble. As a result, the growth rate of M 2 money
24
supply fell short of projected figure.
Fifth, in assessing the situation in relation to targets regarding income, we see that
increases in per capita disposable personal income stayed basically in step with economic
growth. The influence of downward pressure on the economy, however, caused the growth of
salary-based incomes for employees in certain industries to slacken. As a result, increase in
urban per capita disposable income fell short of the planned figure.
To sum up, despite complex situations both at home and abroad, we still made
considerable achievements-our country's economic growth rate was still faster than most
countries in the world; the quality and efficacy of development grew; the economic structure
was further improved; increases in living standards were sustained; and ecosystems and the
environment also saw some improvement. These achievements have not come easily. They are
a result of the correct leadership of the Party Central Committee and the State Council, the
collective hard work of all regions and departments, and the concerted efforts of the people of
all our ethnic groups.
While recognizing our achievements, we are also keenly aware that the world economy is
still undergoing profound adjustment and that impetus for economic recovery is lacking,
instabilities and uncertainties are increasing, international investment and trade are inadequate,
and protectionism and other inward-looking trends are on the rise. China's economy is still
without a solid enough foundation for ensuring steady development and still faces a number of
acute problems.
First, the real economy is beset by a structural imbalance between supply and demand. The
majority of production capacity within the supply system can only meet demand for products
that are at the middle-to-low end or are of a low price or poor quality. Upgrading within the
consumption structure is occurring at an increasingly faster pace; by contrast, export and
investment demand are decreasing. These new changes in demand are something that the
supply structure has yet to properly adapt to.
Second, growth in effective demand is weak. Effective investment is growing slowly,
particularly investment from private sources and in manufacturing. The delayed impact of
downward economic pressure on employment, income, and consumption is now starting to
show. The increasingly complex and challenging situation relating to China's foreign trade
development is marked by persistently weak international demand, rising costs for multiple
factors of production at home, and an increase in the pace at which industries and orders for
goods are shifting to other countries.
Third, some regions, industries, and enterprises are confronted with serious difficulties.
Resource-dependent areas and strongholds of traditional industry are experiencing severe
downward pressure and great difficulties in development. There is a possibility that the effects
of divergent growth trends and adjustments, which some industries are experiencing, will end
up being transmitted throughout the industry chain. Having been pressed by insufficient
market demand and comparatively high operational costs, the ability of enterprises to make a
profit has decreased and a greater number of enterprises are suffering losses.
Fourth, risks are mounting in some sectors. Notable imbalances exist between government
revenue and expenditures in some localities; greater efforts need to be made to guard against
and control financial risks; and the real estate market is still facing serious structural challenges
on two fronts, with exorbitant housing prices in some cities and overabundant inventory in
others.
Fifth, environmental problems such as smog are still grave. Frequent and prolonged
periods of heavy smog extending across large areas have greatly affected the work and lives of
our people. At the same time, new problems in relation to workplace safety, food and medicine
quality, and the people's wellbeing are also emerging.
We must give top priority to these issues, carry out studies and analysis to correctly assess
the domestic and international situations, increase our awareness of potential dangers and of
25
the lines that are not to be crossed, and maintain strategic resolve so as to ensure we produce a
more effective response.
II. Requirements, Objectives, and Policies for
Economic and Social Development in 2017
201 7 is an imp ortant year in implementing the 13th Five-Year Plan (2016-2020) and in
carrying out further supply-side structural reform. 2017 will also witness the convocation of
the 19th National Congress of the CP C, an event of far-reaching significance. So it is of
paramount importance for us to effectively carry out our economic work over the coming year.
1. General Requirements
The requirements for 2017 are as follows:
•
uphold the leadership of the CPC Central Committee with Comrade Xi Jinping at its
core
• hold high the great banner of socialism with Chinese characteristics
• fully implement the guidelines from the 18th National Party Congress and from the
third, fourth, fifth, and sixth plenary sessions of the 18th Party Central Committee
• follow the guidance of D eng Xiaoping Theory, the Theory of Three Represents, and
the Scientific Outlook on Development
• put into practice the guiding principles from General Secretary X i Jinping's
major addresses and his new concepts, thoughts, and strategies on the governance
of China
• promote coordinated economic, political, cultural, social, and ecological progress
and balanced implementation of the Four-Pronged Comprehensive Strategy*
• seek progress while keeping performance stable
• build a strong understanding of and put into practice China's new development
philosophy
• adapt to, approach in the right way, and steer the new normal in economic
development
• take strengthening the quality and benefits of development as a core priority
• ensure macro policies are stable, industrial policies are targeted, micro policies are
flexible, reform policies are practical, and that social policies ensure basic needs are
met
• focus o n supply-side structural reform
•
expand aggregate demand as appropriate
•
better guide expectations
•
ensure development is increasingly innovation-driven
• work to keep growth stable, promote reform, make structural adjustments, improve
living standards, and guard against risks
•
maintain stable and sound economic development as well as social harmony and
stability
Fulfilling these requirements should ensure that we greet the 19th National Party Congress
with outstanding achievements.
2. Main Objectives
Keeping the above requirements in mind and fully considering both what is necessary and
what is possible, we have set the following objectives for economic and social development in
2017:
--Economic growth within an appropriate range
• To make comprehensive moves to finish building a moderately prosperous society in all respects, deepen reform,
advance the law-based governance of China, and strengthen Party self-governance.
26
GDP is projected to grow by 6.5% approximately; however in practice, we will strive for
better. In setting this objective, we have taken the following into account:
First, the projected GDP growth rate is in keeping with conditions in China. Our country
is in a new normal in economic development, having shifted from a high to a medium-high
growth rate. In 2016 China's aggregate economic output exceeded 7 4 trillion yuan; and this
year's projected growth rate of around 6.5% will result in a larger increase in economic output
than last year's increase resulting from a 6.7% growth rate. Moreover, a growth rate of 6.5% is
much higher than most major economies.
Second, the projected growth rate is in line with the goal of finishing building a moderately
prosperous society in all respects. China's economy grew by 6.7% in 2016, so an average
growth rate of around 6.5% over the next four years would be sufficient to accomplish the
objective set out in the 13th Five-Year Plan to ensure that China's GDP in 2020 is double what
it was in 2010.
Third, a 6.5% growth rate is needed to achieve the employment objective. All efforts to
keep the economy growing at an appropriate rate and to promote economic development are
for nothing more than to address the problems which are of most concern to the public.
Fourth, this rate of growth is conducive to fostering healthy public expectations. Facing
complex and volatile situations at home and abroad in the coming year, we need to provide
guidance to all sectors of society so as to focus efforts on improving the quality and benefits of
development and promoting structural improvement and upgrading, ensure a proactive
response to the impact arising from various uncertainties, and create a favorable environment
for supply-side structural reform.
Table 9. GDP and Growth Rate
Trillions of Yuan
100
80
59.52
60
40
-
74.41
68.91
64.40
;----
81.00
;----
;----
-
....
7.8
7.3
2013
20 14
20
6.9
6.7
6.5
2015
2016
2017
0
[:=::J GOP
-+-Economic growth rate(%) (projected)
Source: National Bureau of Statistics; National Commission for Development and Reform
-- Overall stable employment
Over 11 million new urban jobs will be created, 1 million more than the projection for
2016, and the registered urban unemployment rate should stay within 4.5%. In setting these
objectives, we have taken the following into account:
First, employment pressure is mounting. About 15 million new workers will enter the job
market in 2017, and there will also be a slighdy larger number of laid-off workers that need to
be reemployed in other industries due to the scaling-down of overcapacity; on the other hand,
we will see jobs opening up in urban areas as a result of retirements. Taking these factors into
consideration, we need to create around 11 million new urban jobs this year.
Second, employment capacity continues to increase. Due to adjustments in the structure
of industry, particularly in terms of entrepreneurship and innovation and the development of
the service sector, China's employment elasticity has risen considerably. A growth rate of
around 6.5% should ensure that we fulfill our employment target and will allow us to work
toward exceeding it.
Third, we need to ensure increases in personal income are basically in step with economic
27
growth. These objectives are a reflection of the P arty and government's VlSlon of
people-centered developm ent as well as the governance principle that the people's wellbeing
comes first and ensuring employment is a top priority. They are also conducive to ensuring
stable public expectations and strengthening people's confidence in development.
-- Overall stable prices
The CPI is projected to increase by around 3%. In setting this objective, we have taken the
following into account:
First, the carryover effect from the CPI increase in 2016 will be 0.6%, which is basically
the same as that of the year before.
Second, the producer price index (PPI) shifted from negative to positive territory in
September 2016 and has remained there ever since, and the deflationary pressure on
manufacturing has eased to some extent. H owever, as the effects of the PPI increase are
transmitted to downstream industries and toward end consumption, and as the prices of
imported goods and international commodity prices rise, new factors will emerge to push up
pr1ees.
Third, such a CPI increase leaves us with room to undertake price reform.
--A basic balance in international payments
We will continue to promote a steady rise in the trade of goods, rapid growth in the trade
of services, stability in the use of foreign investment, and the healthy development of outbound
investment. In setting these objectives, we have taken the following into account:
First, a turnaround in global economic and trade growth is unlikely in the short term.
However, as the policy for promoting steady growth and structural adjustment in foreign trade
continues to have an effect, the volume of trade in goods is expected to pick up again.
Second, as the export of high-value-added services such as telecommunications,
computers, and information continues to increase rapidly, the structure of trade in services will
rmprove.
Third, significant efforts will be made to create a fair, transparent, and predictable
law-based m arket environment so as to ensure foreign investment remains stable and improves
in quality.
Fourth, outbound investment will be robust. In order to avoid irrational investment which
may give rise to operational or debt risks, growth in this area should be promoted in an orderly
and prudent manner.
-- Improved quality and benefits in development
The contribution of consumption to economic growth will increase. The foundation of
agriculture will be further strengthened; solid progress will be made in cutting overcapacity; the
development of emerging strategic industries will be accelerated; and increases in the
contribution of the value-added of the service sector to GDP will be sustained. More will be
spent on research and development and there will be an increase in the contribution of
scientific and technological progress to economic growth. Energy consumption per unit of
GDP will be reduced by at least 3.4%, carbon dioxide emissions per unit of GDP will be cut by
4.0%, reductions in the emissions of major pollutants will continue, and air and water quality
will be further improved. In setting these objectives, we have taken the following into account:
We need to put into practice the philosophy of innovative, coordinated, green, open, and
shared development; see that industries are transformed and upgraded, that their quality and
performance improves, and that the quality of all products and services increases; and ensure
that energy co nservation, environmental protection, and ecological improvement efforts are
strengthened. These objectives are in line with the efforts to advance supply-side structural
reform, and can help to create new growth areas, increase the potential for economic growth,
and ensure the economy maintains a medium-high growth rate and moves toward the
medium-high end.
28
Table 10. Contribution to GDP by the Primary, Secondary, and Tertiary Industries
Percent
60
50
44.0
: :
52.2
40.9
39.8
39.6
8.2
:
:
i
40
51.6
50.2
47.8
46.7
43.1
30
20
9.3
9.1
8.9
8.6
2013
2014
2015
20 16
10
0
2017
(oroiected)
_._ Primary industry
-Tertiary industry
---Secondary 1hdlfstry
Sow:ce: National Bw:eau of Statistics; National Commission for Development and Reform
-- Improvements in living standards
The number of people living in poverty in rural areas will be reduced by at least 10 million,
and 3.4 million people will be relocated from inhospitable areas so as to help them shake off
poverty. The percentage of registered w:ban residents will increase by more than 1 percentage
point. Urban residency will be granted to an additional 13 million people with rural household
registration living in w:ban areas and other permanent w:ban residents. Access to basic public
services such as education, health, and cultw:e will become more equitable. The retention rate
of compulsory education and the gross enrollment ratio for senior secondary education will
continue to rise. The social security system will be further improved with more beneficiaries
receiving coverage and an appropriate increase in benefits. Per capita government subsidies for
basic medical insw:ance for rw:al and non-working w:ban residents will increase to 450 yuan,
while the level of financing for the major disease insw:ance scheme will also be raised. The
natw:al population growth rate will be about 7.5%o. In setting these objectives, we have taken
the following into account:
We must fully implement ow: vision of people-centered development and work for further
progress in ensw:ing that the Chinese people enjoy the rights to education, employment,
medical treatment, old-age care, and housing.
Table 11. Urban and Rural Personal Income: Increases and Comparisons
Yuan
Ratio
60,000
2.81
2.75
2.72
2.73
48,000
2.72
36,000
3.00
2.00
24,000
1.00
12,000
0
0.00
2013
2014
201S
2016
2017
(projected)
c==:::J Per capita disposable income of urban residents
IZlZZZZJ Per capita disposable
income of rural residents
__._Ratio of urban income to rural income
Source: National Bureau of Statistics; National Commission for Development and Reform
29
3. Macroeconomic policies
At the recent Central Economic Work Conference, it was noted that seeking progress
while keeping performance stable was not only an important governance principle but also an
effective method for carrying out economic work. It is particularly important to uphold this
principle in 2017. Stability is of primary and overarching significance: under the condition of
keeping performance stable, we will work for progress in key sectors, and under the condition
of maintaining a well-balanced pace of work, we will strive to deliver better results. To attain
the objectives for economic and social development in 2017, we must seek progress while
keeping performance stable, maintain the continuity and stability of macroeconomic policies,
and continue to implement a proactive fiscal policy and a prudent monetary policy. We must
ensure that fiscal policy is more proactive and effective; a debt-GDP ratio of 3% is projected
for this year and the government deficit will be 2.38 trillion yuan, an increase of 200 billion
yuan over last year. We must also ensure that prudency and neutrality is maintained in monetary
policy; both the M2 money supply and aggregate financing in the economy are expected to
grow by around 12% in 2017.
At the same time, we will strengthen coordination and support between policies, make
effective use of macroeconomic policies with Chinese characteristics, and see that fiscal,
monetary, reform, industrial, innovation, employment, regional, investment, consumption, trade,
pricing, land, and environmental protection policies work together more effectively and that
their precision and efficacy increase.
• Addressing stmctural conflicts bet1veen supp!J and demand
With fiscal and monetary policies as main pillars, and with the support of investment,
consumption, and trade policies, we will work to exert the role of supply-side structural reform
policy.
• Alleviating the dilfiCIIIties in the real economy
We will take strong measures to cut taxes and fees, fully utilize central government
investment to guide and attract investment from private sources; continue to promote reforms
on SOEs, on pricing, and on streamlining administration, delegating more powers, improving
regulation, and providing better services; and provide more targeted policy guidance.
• Promoting coordinated and integrated development between regions
We will increase fiscal and financial policy support, implement differentiated regional
policies, and ensure that employment and social security policies meet basic needs.
• Solvingproblems related to agriculture, rural areas, andfarmers
We will fully carry out supply-side structural reform in agriculture, improve
agriculture-related subsidy, investment, credit, insurance, and land-use policies, and support
technological innovation in agriculture.
• Preventing investmmtfrom being diverted ottt of the real economy and controlling real estate fluctuations
By utilizing prudent monetary policy and targeted industrial and land policies, we will
deepen financial reforms, strengthen market oversight, and prevent and defuse fiscal and
financial risks.
• Providing guidance to ensure positive public expel'tations
We will do more to explain government policies and to release information to the public
and will further improve the property rights protection system.
In relation to specific work, we will focus on the following six areas so as to advance
overall development.
First, carrying on institutional innovation to revitalize the market
We will deepen reform in major areas and key sectors, step up innovation in systems and
mechanisms, increase institutional supply, take targeted steps to solve prominent conflicts and
problems holding back economic and social development, improve the overall effectiveness of
reform, and strive for further breakthroughs.
30
Second, revitalii}ng the real economy to provide betterproducts
We will intensify efforts to cut overcapacity, reduce excess inventory, deleverage, lower
costs, and strengthen areas of weakness; move faster to create new industrial policies and
upgrade old ones, and improve the distribution of productive forces, in a bid to bring about a
shift from a supply of predominandy medium-low end products to mainly supplying
medium-high end ones that conform to changes in demand.
Third, advancing innovation-driven development to foster and strengthen new drivingforces
We will fully implement the innovation-driven development strategy, improve policies in
support of innovation, increase the supply of innovative resources, provide greater
encouragement for business startups and innovations by the general public, and promote the
replacement of old drivers of development with new ones.
Fourth, increasing ejfoctive demand to keep the macro environment stable
As the upgrade in demand continues, we will work to increase the supply of quality goods
and services and the efficiency of government investment, inject vigor into private investment
and private capital, and work to create a balance between supply and demand and a healthy
interaction between upgraded consumption and effective investment, so as to ensure
development becomes better in quality, more efficient, more equitable, and more sustainable.
Fifth, effictive!J preventing and defusing risks in key sectors and regions
We will become more aware of potential dangers and keep in mind worst-case scenarios.
With a focus on preventing financial risks, excessive corporate leverage, an accumulation of
property bubbles, inflated local government debt, and financial difficulties among county and
township governments as well as other risks, we will create new and better ways of dealing with
risk and never allow the line to be crossed on these risks so as to safeguard social stability.
Sixth, improvingpeople~ lives to promote social harmorry
Guided by the vision of people-centered development, we will work to solve the structural
problems related to employment, use targeted measures to tackle poverty, provide better basic
public services, speed up the development of social programs such as education, elderly care,
health and family planning, culture, and sports, and take stronger, more effective measures to
improve the environment so as to ensure our people have a greater sense of benefit and a
higher level of happiness.
III. Major Tasks for Economic and Social Development in 2017
In 2017, we will continue to uphold the general principle of seeking progress while
keeping performance stable, take supply-side structural reform as our main task, and apply the
new development philosophy, so as to steer the new normal in the economy. Our efforts will
focus on the following nine areas.
1. Promoting substantive progress in the priority tasks of cutting overcapacity, reducing
excess inventory, deleveraging, lowering costs, and strengthening points of weakness.
In line with the CPC Central Committee and the State Council's overall arrangements for
supply-side structural reform, we will intensify efforts to fulfill the five priority tasks, reduce
ineffective supply while increasing effective supply, improve the profit-making ability of
enterprises, and raise total-factor productivity.
1) We Jvi/1 make concrete efforts to scale doum overcapaciry.
This year, we will cut production capacity by around 50 million metric tons of steel and
over 150 million metric tons of coal. At the same, we will shut down, stop, or suspend the
construction of coal-fired power plants with a capacity of more than 50 million kilowatts, so as
to guard against and defuse overcapacity risks in relation to coal-fired power plants, improve
their efficiency, and create space for the development of clean energy. Making full use of
market-oriented and law-based means, we will work to strike an overall balance between the
31
efforts to scale down overcapacity, ensure stable supply, improve the industrial structure, and
transform and upgrade industries.
Our efforts to address the issue of "zombie enterprises" will constitute a key approach in
cutting overcapacity. By strictly enforcing laws, regulations, and standards with regard to
environmental protection, energy consumption, quality, and safety, we will intensify efforts to
control the expansion of production capacity, shut down outdated production facilities, and
crack down on violations of laws and regulations in this regard. Proper conditions will be
created for promoting the merging and restructuring of enterprises, and proper arrangements
will be put in place to handle debts and resettle laid-off workers. We will continue to make
government funds available for rewards and subsidies in this regard.
2) We will continue to cut excess inventory fry implementingpolicies tailored to local conditions.
We will make further efforts to grant direct monetary housing compensation rather than
housing to people displaced by the redevelopment of run-down urban areas, move faster to
implement the plan for granting urban residency to 100 million people without urban
household registration living in urban areas, support the demand of urban residents for buying
a second home if their fust homes are inadequate, and ensure well-regulated development of
the housing rental market.
In line with the principle that "houses are for habitation not speculation," we will exercise
regulation on a per-category basis, implement place-based policies in different cities, and fully
utilize financial, land, fiscal, tax, and investment policies as well as legislation, so as to accelerate
efforts to establish a sound permanent mechanism for ensuring the steady and healthy
development of the real estate industry. In working toward establishing policy-backed financial
institutions specializing in h ousing, we will carry out research on reforming the housing
provident fund system; and we will support people's demand for housing for personal use.
3) We will lower leverage ratios of enterprises in a proactiveyet prndent manner.
By means of merger, restructuring, and bankruptcy, we will promote a clearing out of
zombie enterprises. We will encourage banks, relevant institutions, and enterprises to carry out
market-based debt-to-equity swaps on the basis of negotiations between themselves. We will
develop equity financing, broaden its financing channels, and place tighter constraints on the
leveraging activities of enterprises.
4) We will contin11e to implement ajitll range of measures for reducing costs in the real economy.
We will further simplify approval procedures, overhaul or abolish irregular fees charged by
administrative review intermediaries, and reduce unreasonably high intermediary and evaluation
fees so as to lower the transaction costs of enterprises imposed by the government. Efforts will
be enhanced to reduce taxes, fees, and the costs of factors of production; lower financing costs,
enterprise energy and land-use costs, and logistics costs; increase the flexibility of the labor
market; and encourage enterprises to tap internal potential for reducing costs and increasing
efficiency. We will intensify efforts to review and regulate fees and charges related to enterprises,
implement preferential policies to reduce taxes and fees levied on them, further review and
regulate government-managed funds, administrative charges, and business service fees, and
work to lower fees and charges related to financial and railway freight services levied on
enterprises. In addition, we will create new oversight systems for fees and charges related to
enterprises and tighten oversight over those business service fees for which pricing is
market-based. We will redouble efforts to review security deposits in the construction industry.
5) We 1vili bolsterpoints of 1veakness in a more targeted and effective fashion.
We will moderately increase investment from the central government budget and improve
its structure, channeling it toward key areas such as poverty alleviation, agriculture, weak links
in post-disaster water conservancy recovery and reconstruction, hard and soft infrastructure,
and the enhancement of innovation capacity. We will comprehensively advance the 165 major
projects set out in the 13th Five-Year Plan.
2. We wiD intensify supply-side structural reform in the agricultural sector.
32
We will improve the industrial, production, and operational systems in the agricultural
sector, step up efforts to foster new drivers for agricultural and rural development, and take
serious measures to facilitate standardized production, brand building, and supervision over the
quality and safety of agricultural products, with a view to raising the quality and performance
of the agricultural sector and to ensuring its sustainable development. In 2017, total grain
output will stand at over 550 million metric tons.
1) We will work toward a sot~nd, smooth, and optimal agriCJIItural structure.
We will facilitate the development of production centers for major agricultural products
such as grain, cotton, oilseed, sugar crops, and natural rubber, support standardized, large-scale
livestock and aquaculture farming, and step up the construction of national seed cultivation
and production centers and the development of projects for breeding superior varieties within
crop, livestock, and aquaculture farming.
In addition to comprehensively implementing policies for providing special protection to
permanent basic cropland, we will establish and develop functional zones for grain production
and protective areas for the production of major agricultural products. We will formulate the
plan for boosting the production of local agricultural products in areas with unique advantages,
and continue with the trials to replace grain crop cultivation with feed crop cultivation and
soybean cultivation. The production of corn kernel in inferior production areas will continue to
be reduced and the production of high-quality forage crops, such as corn silage and alfalfa, will
be expanded. We will stabilize the production of hogs and push for an optimal layout in this
regard, and will increase the quality of dairy products. Production for aquaculture products will
be reduced while the efficiency will be increased, and conservation efforts will be made on the
Yangtze River and other key water bodies to protect aquatic organism resources.
We will promote the implementation of standards for agricultural production and work to
ensure the quality and safety of agricultural products. We will carry forward crop-rotation and
fallow-land trials, and promote the adoption of fallow periods for cropland and grassland and
fishing moratoriums for rivers and lakes. We will carry out the initiative to achieve zero growth
in the use of chemical fertilizers and pesticides, and advance safe disposal and recycling of
waste from livestock and poultry farming. We will undertake trials for creating a circular
economy in the agricultural sector, develop hybrid industry-agriculture circular economy
demonstration zones and centers , and establish pilot and demonstration zones for sustainable
agricultural development.
2) We will continue to enhance agricultural and mral in.frastmcture.
We will move ahead with the development of 172 major water conservancy projects, and
work to make a start on 15 more. Accelerated efforts will be made to develop high-grade
cropland, farmland irrigation and water conservancy, and the modern seed industry, as well as
large-scale livestock farms, storage and logistics facilities for grain and edible oil, and
public-welfare wholesale markets for agricultural products. We will also work faster to
consolidate and build on the achievements made in ensuring safe drinking water in rural areas.
Trails will be launched to apply the PPP model to the farming and forestry industries. We
will carry out initiatives to promote the use of new energy in rural areas, support the
development of information infrastructure and efficient water-saving irrigation facilities in
rural areas with weak infrastructure in the central and western regions, and accelerate efforts to
improve logistics networks for counties, townships, and villages.
3) We will step up innovations in agrimltural science and technology.
We will promote the raising of better quality, specific, and healthy crop vanetles and
livestock breeds, strive to develop and apply green and efficient technologies for farming and
breeding, and support technological transformation of the food and other processing
industries. A number of major agricultural laboratories and national agricultural science
research stations will be developed. We will improve incentive mechanisms for innovations in
agricultural science and technology, and move ahead with trial reforms for allowing agricultural
33
scientists to receive greater benefits for their scientific achievements. We will further reform the
system for applying agricultural technology in villages, explore new mechanisms for allowing
public institutions and agricultural technicians to engage in for-profit services, and facilitate the
reduction of costs and energy consumption and the enhancement of efficiency to bolster
agricultural growth.
We will launch initiatives that ensure intelligent agriculture leads China's agricultural
modernization, fully implement the project to bring information technology to villages and
rural househo lds, and expand trials and demonstrations for the application of the Internet of
Things in the agricultural sector.
4) We will develop new industries and new forms of business in rural areas.
We will advance pilot and demonstration projects for integrating rural industries, channel
secondary and tertiary industries toward county seats, key towns and townships, and industrial
parks, and begin building modern agricultural industrial parks that integrate production,
processing, and science and technology. We will support eligible agricultural enterprises in
issuing corporate bonds and launching projects for integrated development of rural industries.
We will implement the three-year action plan for Internet Plus modern agriculture, and
establish comprehensive demonstrations for introducing e-commerce into rural areas. We will
promote in-depth integration of agriculture with the tourism, cultural, fitness, and elderly-care
industries. Development will be pursued in a host of towns and villages that brings together
industry, culture, and tourism, secures simultaneous improvements in working, living, and
ecological conditions, and fully integrates the primary, secondary, and tertiary industries.
5) We willpress ahead 1vith agricultural and rural reform.
A proactive yet prudent approach will be adopted in promoting reforms of the
price-setting mechanism for grain and other important agricultural products as well as the
system for their purchase and storage. We will continue to implement and improve the policy
for setting minimum state-purchase prices for rice and wheat, enhance the price-setting
mechanism for corn in the northeast that combines market-based purchase prices and
supplementary government subsidies, and reduce excess stockpiles of policy-supported grain in
a steady and orderly manner. We will improve the policy for guaranteeing base prices for cotton
and adjust the pricing policy for soybeans. Improvements will be made to the system of
agricultural subsidies, ensuring that relevant reforms are oriented toward green development
and ecological progress. Comprehensive reform of pricing for water used in agriculture will be
advanced across the board.
Reform of the rural collective property-rights system will be deepened to clearly identify
rural collective property rights and to grant rural residents more adequate property rights. We
will reform the mechanism for ensuring budgetary support for agriculture and work to merge
rural-development funds. We will implement measures for separating land ownership rights,
contract rights, and management rights for contracted r ural land. We will make overall
arrangements to carry out trial reforms with regard to rural land requisition, the marketization
of rural collective land designated for commercial construction, and the system for rural
residential land. We will cultivate new types of agribusiness and agricultural service providers,
and promote the development of suitably scaled-up operations of land in diversified forms.
A catastrophe insurance scheme will be introduced in some regions for farmers whose
operations are suitably scaled-up. We will improve the agricultural reinsurance system and
ensure sustainable and sound agricultural insurance schemes provide strong support for the
development of modern agriculture.
3. We wiD continue to tap the potential of domestic demand
We will lay emphasis on tapping demand through innovative forms of supply and
consolidating the foundation of domestic demand.
On the one hand, we will work to expand and upgrade consumer spending.
We will continue to advance the Ten Initiatives for Boosting Consumer Spending; respond
34
to new trends in consumer demand; promote reform and innovation so as to increase effective
supply to consumers, especially in service and green industries; and keep consumption growing
steadily. Total retail sales of consumer goods are expected to increase by around 10% in 2017.
Unreasonable restrictions on entry into service industries will be loosened and regulation
over investment in the social domain will be relaxed. We will work to develop emerging areas
of consumption such as combined medical and care services for the elderly, cultural & creative
industries, and all-for-one tourism, and support nongovernmental participants in providing
education, elderly care, and medical services. Efforts will be make to promote consumption of
information goods and services in areas such as digital homes, online education, and virtual
reality. We will launch campaigns to speed up innovations in domestic commodity distribution,
promote supply-side structural reform, and boost consumer spending. We will promote the
integrated development of brick-and-mortar stores and online shopping.
China time-honored brands will be protected and carried forward. We will ensure that
more domestically sold products come off the same production lines, meet the same standards,
and are of the same quality as export products. We will work to achieve robust development in
cold-chain logistics. Sound systems will be established to ensure the quality and safety standards
of food and medicine and to allow for product traceability. Pricing oversight will be intensified
and law enforcement will be stepped up to tackle monopolistic pricing so as to safeguard the
legitimate rights and interests of consumers.
We will enhance incentive-based income distribution reform, implement incentive plans
for key groups, and carry out trials for comprehensive and coordinated policies on increasing
urban and rural incomes.
•
Upgrading
Traditional
Consumption
•
•
•
•
•
Expanding
Service-related
Consumption
•
•
•
•
Box 14: U radin Consumer S endin
We will carry out initiatives to upgrade the quality and efficiency of the retail
sector, implement action plans for the transformation of catering,
acconunodation, and domestic services as well as other consumer service
industries, and work to expand and upgrade reasonable demand for homes, travel,
and other forms of traditional consumption.
We will move ahead with the reform of low-altitude airspace management and the
development of general aviation, and move faster to optimize urban road
networks and to establish parking facilities and charging stations for new energy
vehicles.
We will increase the proportion of land designated for residential use in first-tier
and major second-tier cities, and appropriately increase land supply.
We will encourage the provision of multilevel, diverse health services using private
capital.
We will implement the guidelines on fully opening up the market for and
increasing the quality of elderly care services.
We will facilitate the development of the rehabilitation-device, fitness, and leisure
industries.
We will continue to promote all-for-one tourism, tourism to symbolic sites for
CPC history, as well as travel for study and research, and will foster cruise and
yacht tourism.
We will develop the cultural industry by facilitating restructuring and
improvements in layout and improving mechanisms and policies related to market
access, investment, and financing.
We will develop the sports industry in new ways, and tap new areas of sports
consumption.
We will boost educational and trainin services.
On the other hand, 1ve will make targeted efforts to increase effective investment.
We will enhance efforts to bolster weaknesses in key areas and links in need of attention,
so as to increase effective investment and effective supply. Total fixed-asset investment is
projected to increase by around 9.0% in 2017. Investment from the central government budget
is expected to be 507.6 billion yuan for the year; these funds will be channeled toward major
35
strategic initiatives, major projects, and key construction tasks.
We will also work to stimulate private investment, earnestly implementing policies to
provide encouragement and support, and further relaxing restrictions on the entry of private
capital into competitive operations of basic telecommunications, exploration and exploitation
of oil and gas, and defense-related science and technology. New modes of investment and
financing will be created. In addition, we will continue to standardize and apply the PPP model,
selecting and going ahead with projects that have adequate cash flow and expectations of
steady returns. With a view to enhancing regulation over investment, we will develop new
inspection and regulation methods, carry out comprehensive online monitoring, and intensify
field inspections.
4. Continuing to deepen reforms in major areas and key sectors
We will work to ensure that reform measures which have been already issued are fully
implemented so as to give better expression to the leading role of reform.
1) We willpress ahead with reforms to streamline administration, delegate more p01vers, improve regulation,
andprovide better services.
We will cancel the requirement for government review for another group of matters, and
thoroughly review and accordingly adjust manufacturing and operating permits. We will target
related or similar matters and simultaneously delegate the power or cancel the
government-review requirement for all of them. We will draw up a pre-business registration list
for items requiring government approval and a post-business registration list for permitted
operations, roll all licenses and certificates which must not be cancelled into one unified
business license, and expand trial reforms to separate operating permits and business licenses.
The oversight model drawing on inspections of randomly selected entities by randomly
selected inspectors and the public release of inspection results will be implemented across the
board, and the reform for coordinated law enforcement will be advanced. We will strive to
implement the Internet Plus government services model, and carry out a campaign to cut down
on requirements for administrative certification so as to ensure greater convenience for the
people. In line with the requirements for unified registration agencies, register books, bases for
registration, and information platforms, we will expand the scope of the unified system for
determining and registering immovable property rights, and will work to put in place a
corresponding nationwide information platform.
2) We will deepen reform of SOBs, state capital, and key industn"es.
The reform to introduce corporate system in SOEs will be basically completed. A
corporate governance structure that ensures effective checks and balances and a market
operation mechanism that is highly efficient and flexible will be put in place. We will quicken
the pace of trials to establish state capital investment and management companies, advance the
pilot reforms to introduce a mixed ownership structure in electricity, petroleum, natural gas,
railway, civil aviation, telecommunications, defense, and other sectors, and support private
enterprises in participating in the reform of SOEs.
We will step up efforts to advance structural reforms in the electricity, petroleum, and
natural gas sectors, adopting a methodical approach to lifting restrictions on the generation and
industrial consumption of electricity and increasing the level of market-based transactions. We
will proceed in an orderly manner with appropriately relaxing controls over competitive
operations such as petroleum and natural-gas exploration and exploitation, and improve the
petroleum and natural-gas import and export management system. Mechanisms regarding the
reserve and oversight of salt will be improved.
3) We will deepen reform of the investment andfinancing systems.
We will implement the guidelines on deepening reform of the investment and ftnancing
systems, the regulations for managing the approval and recording of enterprise-funded projects,
and the catalog of investment projects requiring government review (2016). The regulations on
government investment and the measures for managing the approval and recording of
36
enterprise-funded projects will be issued.
We will support certain localities and sectors in piloting mechanisms which allow
investment projects to proceed on the basis of an undertaking submitted by enterprises to
government. We will carry out trials for financial institutions to become enterprise shareholders,
and improve the mechanisms whereby institutional funds, such as insurance funds, invest in
projects.
4) We will deepen price reform.
We will basically complete nationwide reform of electricity-transmission and -distribution
prices on provincial-level grids, with all prices being made available to the public. We will
initiate trial price reforms for electricity transmission and distribution through regional power
grids in the northeast and northwest, set prices for electricity distribution through local and
newly-built power grids, and promo te market-based pricing for the generation and supply of
electricity where conditions allow. Improvements will be made to the pricing mechanisms and
subsidy measures for new energy. We will set prices for natural gas transmission through
trans-provincial pipelines. We will press ahead with price reform of medical services, advancing
across the board price reforms of medical care and medicine in urban public hospitals and
charging for medical treatment according to illness type.
5) We 1vill develop a market based on fair competition.
In implementing the guidelines on improving the property rights protection system and
ensuring law-based protection of property rights, we will redouble efforts to strengthen
systems in this regard. We will issue and implement guidelines on nurturing and protecting
entrepreneurialism. We will fully implement the review system to ensure fair competition, and
resolutely prevent the promulgation of any policies and measures that eliminate or stifle
competition. We will strictly investigate and prosecute major and typical antitrust cases, and
work to prevent and curb mo nopolistic practices. Work on establishing the social credit system
will be moved forward. We will put in place a nationally unified system for sharing information
on credit, and extend to more areas the mechanism to provide joint incentives to those who act
in good faith and to take joint punitive actions against those who act in bad faith.
Box 15: Protection of Pro er
Ri hts and Entre reneurialism
•
Move quickly to develop a civil code, and abolish clauses m laws and
regulations that violate the principle of fairness
•
Conduct a summary of a group of cases where property rights have been
well protected, analyze another group of cases involving property rights
violations, and review a number of property rights litigation cases of great
public concern so as to rectify illegal practices
•
Step up efforts to build a rule of law government and uphold integrity in
government affairs, and work to foster an environment in which the values
of rule of law, transparency, and fairness are reflected within all systems and
policies and throughout society
•
Formulate supporting policies and measures for fostering a rule of law
environment, a market environment, and a social atmosphere conducive to
inspiring entrepreneurialism
•
Improve the social honorary awards for outstanding entrepreneurs, increase
the quality, efficiency, and practicability of services for entrepreneurs, and
develop better mechanisms to allow for and help rectify mistakes made by
entrepreneurs
•
Improve policies to support entrepreneurs in dedicating themselves to
innovation and business start-up, and help them to sustain their work in
innovation and business transformation; strengthen efforts to cultivate and
ass on the s irit of entre reneurialism
Law-based
Protection of
Property Rights
Entrepreneurialism
6) We will steadify advance reform of the fiscal, tax, andfinancial.rystems.
37
We will carry forward the reform to appropriately divide fiscal authority and spending
responsibilities between the central and local governments. We will also work faster to draw up
an overall plan for revenue sharing between the central and local governments. We will improve
local tax systems and regulate the debt financing activities of local governments.
We will prudently advance reform of the fmancial oversight system, and improve the
macro-prudential regulation system for the f111ancial sector. The market-based mechanism for
setting the RMB exchange rate will be further improved. We will ref111e the governance
structure of state-owned commercial banks, deepen reform of the multilevel capital market
system, move ahead with revising the Securities Law, and improve reform of the stock issuance
system. We will accelerate development of modern insurance services.
5. Focusing on revitalizing the real economy
We will remain committed to ensuring innovation drives development forward, prioritize
improving quality and core competitiveness, and ensure brand development leads the way in
industrial upgrading. We will enhance overall capacity for making innovations and accelerate the
development of new drivers of growth, the growth of new industries, the transformation and
upgrading of traditional industries, and the replacement of old drivers of growth with new
ones.
1) We wil/ 1vork faster to foster and develop ne1v drivers for economic gr01vth.
We will work to deliver decisive progress in pilot reforms for all-around innovation in eight
areas. Policies will be introduced to foster and develop new drivers of growth, promote the
sharing economy, and regulate internet market access. We will establish a consultation system
for national decisions on science and technology, coordinate efforts to advance reform of the
management of central government-funded science and technology initiatives and their
funding, and pilot profit distribution policies oriented toward strengthening the value ascribed
to knowledge.
We will increase investment for the construction of information, civil-space, and major
science-and-technology infrastructure; support the establishment of comprehensive national
science centers in Huairou in Beijing, Zhangjiang in Shanghai, and Hefei in Anhui; finish
building a group of industrial innovation centers; and promote the establishment of a
nationally unified system of big data centers. We will continue developing national innovation
demonstration areas, expand regional trials and demonstrations for the commercialization and
application of scientific and technological advances, and build innovation demonstration zones
for the National Agenda for Sustainable Development.
Major national science and technology proj ects will continue, and major projects of the
Sci-Tech Innovation 2030 Agenda will be launched. National laboratories for major fields of
innovation and a group of national technological innovation centers will be built. We will
support the establishment of science and technology innovation centers in Beijing and
Shanghai. Additional demonstration centers for entrepreneurship and innovation as well as
maker spaces for specialized crowd innovation will also be opened.
We will undertake activities to encourage entrepreneurship and innovation among research
institutes, enterprises, and social organizations, and will roll out a range of strong measures that
focus on tackling those bottlenecks that are stifling the market-based operation of platforms
for entrepreneurship and innovation and that are hindering the cultivation of entrepreneurial
personnel. We will make good use of government funds for guiding venture capital to promote
its sustained and sound development. We will work to further strengthen the brands of the
National Week for Entrepreneurship and Innovation and the Innovating China Tour so as to
build a sustainable, positive enviro nment for entrepreneurship and innovation.
2) We will work to promote the continued and sound development if emerging industries.
In order to strengthen strategic emerging industries, we will set up the National Strategic
Industry Development Fund, and utilize market-based means to carry out a group of systemic
projects that give full play to the principal role of enterprises in cutting-edge and strategically
38
important fields, such as new materials, artificial intelligence, integrated circuits, biomedicine,
and SG mobile networks. We will press ahead with the "Internet Plus" and big data initiatives,
and integrate the development of the internet, the Internet of Things, and cloud computing
with economic and social development. We will further boost broadband speeds and lower
rates for internet services so as to reduce the costs of innovation and business startup and
support industrial upgrading. We will strengthen the innovation-driven, integrated development
of the military and civilian sectors by advancing the development of major demonstration
programs for military-civilian integration in space, marine, cyberspace, and other fields.
3) We will help accelerate the transformation and upgrading of traditional industries.
The Made in China 2025 initiative will be further implemented. We will launch campaigns
to improve product quality and branding within the equipment manufacturing industry, to
enhance product variety and quality and create name brands in the consumer goods industry, to
strengthen service-embedded manufacturing, and to further integrate the internet into the
manufacturing industry. We will work to ensure quality standards for manufacturing improve,
carrying out extensive quality improvement activities and ensuring stronger all-around quality
management.
We will continue to implement projects to establish manufacturing innovation centers,
improve smart manufacturing, and promote green manufacturing, as well as projects to
strengthen the foundation of industry and to promote innovation in high-end equipment
manufacturing. We will continue to help implement the packages of major projects aimed at
promoting transformation and upgrading of the manufacturing industry, with a focus on
supporting 10 major projects, including those to promote smart-technology upgrades by
enterprises, improve basic capacity, advance green manufacturing, and develop high-end
equipment. The plan to upgrade national demonstration centers for new industrialization will
be put into action. We will promote the transformation and upgrading of transportation,
energy, and other basic industries with a view to expediting the development of modern
comprehensive transportation systems, and implementing the strategy for revolutionizing
energy generation and consumption.
4) We 1vill advance innovation-driven development of the service economy.
Guidelines on the innovation-driven development of the service economy will be worked
out, and a new round of comprehensive trial reforms will be undertaken to accelerate the
development of new types and models of business in the service sector. We will carry out
dedicated campaigns to bolster points of weakness in the service sector with a focus on
improving quality, promoting standardized development, and providing better IPR services. We
will continue to implement projects to promote innovation in high-tech services.
6. Utilizing the Three Initiatives to pursue coordinated and integrated development
between regions.
Making full use of the comparative strengths of each region, we will adopt differentiated
policies to promote their development, and accelerate efforts to cultivate new growth axes and
growth belts.
1) We zvill e.ffectivefy carry out the Three I11itiatives.
We will put into practice the guiding principles from General Secretary Xi Jinping's
important speech at the conference on developing the Silk Road Economic Belt and the 21st
Century Maritime Silk Road. Focusing on key areas, pivotal countries, and signature projects,
we will proactively engage in practical collaboration and implement cooperation agreements
and plans.
A combination of relocations and restrictions will be used in working to relieve Beijing of
functions non-essential to its role as capital. We will work to coordinate and accelerate the
planning and building of Beijing's sub-administrative center as well as other platforms for
accommodating relocated functions. We will continue to strive for breakthroughs in the three
key areas of transportation, ecological conservation, and industry, while also strengthening the
39
three key pillars of innovation, reform, and pilot proj ects. We will promote the joint
development and sharing of basic public services, and support comprehensive trials for deeper
reform and greater opening up of Beijing's service sector.
With a continued focus on ecological conservation and green development, we will move
ahead with projects to improve the water environment, restore water ecosystems, and conserve
water resources in building the Yangtze Economic Belt. We will work to ensure ease of
navigation on waterways, connectivity between transportation hubs, integrated river-ocean
transpor tation, and simplified customs clearance procedures. We will advance major projects
for the Yangtze golden watercourse initiative and establish a negative-list m anagement system.
2) We wi!f work to improve the layout of regional development.
We will fully carry out the plan for the large-scale development of the western region
during the 13th Five-Year Plan period, shoring up weak links in infrastructure, promoting
ecological conservation, and accelerating the transformation and upgrading of competitive
industries that draw on local strengths.
We will fully implement a new round of major policies and plans aimed at revitalizing the
northeast and other old industrial bases. We will also put into action the plan for the
revitalization of the northeast during the 13th Five-Year Plan period, establish cooperative
partnerships between provinces and municipalities in the northeast and in the eastern region,
and step up support for the relocation or rebuilding of old industrial areas within cities and
independent industrial and mining areas as well as for comprehensive efforts to improve the
conditions of areas affected by mining-induced subsidence.
We will ensure full implementation of the plan for the rise of the central region during the
13th Five-Year Plan period, accelerate the development of the eco-economic belts along the
Han and Huai rivers, and ensure smooth operation of the experimental zone for
comprehensive reform to promote sustainable development in Shanxi.
We will support the eastern region in increasing the pace as it spearheads economic
transformation and development, and work to further leverage its role as a m odel and leader of
reform and innovation.
We will enhance domestic and international regional cooperation in a coordinated way,
support the development of major function platforms, and work hard to coordinate land and
marine development.
We will accelerate the building of infrastructure and public service facilities in old
revolutionary base areas, ethnic minority areas, border areas, and contiguous poor areas; all
these efforts will be incorporated into major national development strategies. We will continue
to support the development of Tibet and Xinjiang, and the Tibetan ethnic areas in the
provinces of Sichuan, Yunnan, Gansu, and Qinghai, providing greater central government
support as well as paired assistance.
.
Box 16: Better Layout of Regional Development
•
•
Development
of the
Western
Region
•
Step up the development, and increase the reserve, of major projects related to the
large-scale development of the western region
Accelerate the advancement of major experimental zones for development and
opening up in border areas and promote the development of inland open-economy
experimental zones in Guizhou and Ningxia
Step up the development of major ecological projects, return more marginal
farmland to forest and grassland, and revise the Regulations on Returning Farmland
to Forest and Grassland; advance the establishment of mechanisms for
compensating ecological conservation efforts and conduct trials for these
mechanisms with the participation of provinces on the upper and lower reaches of
water basins
40
•
•
Revitalization
of the
Northeast
Rise of the
Central
Region
The Eastern
Region as the
Spearhead
•
•
•
Develop the region into a national center for advanced manufacturing
Formulate plans for eco-economic belts along the Han and Huai rivers
Issue and implement the plan for water pollution prevention and control and for
water and soil conservation on the Danjiangkou reservoir and upper reaches during
the 13th Five-Year Plan period
•
Implement the national plan for developing the marine economy during the 13th
Five-Year Plan period, and encourage Hainan and other areas with suitable
conditions to step up efforts to develop the marine economy
•
Improve major regional cooperation mechanisms in the pan-Pearl River Delta, the
Bohai Sea rim, the Yangtze River Delta, city clusters along the middle reaches of the
Yangtze, and the Yellow River Golden Triangular Area in Shanxi, Shaanxi, and
Henan provinces
Build experimental zones for cooperation on opening up in cross-provincial border
areas such as the Hunan-Jiangxi border area
Proceed in an orderly way wid1 developing state-level new areas, pilot free trade
zones, national experimental zones for integrated, complete reform, all types of
development zones, and major experimental zones for opening up and development
in border areas, as well as demonstration zones for d1e marine economy and the
airport economy, and for industrial transformation and upgrading, innovative
military-civilian integration, industrial-urban integration, and industrial relocation
Regional
Cooperation
•
•
Function
Platforms
Support the northeast in drawing on the standards of more advanced regions to
step up transformation of government functions, implement the work plan for
deepening reform of SOEs in the northeast, launch demonstrations for the reform
and development of the private sector, and carry out campaigns to improve d1e
investment and business environment
Carry out special-investment and major-innovation projects to nurture new growth
drivers for revitalization, coordinate the implementation of major projects that are
part of the Three-year-rolling Plan for the Revitalization of the Northeast and
Other Old Industrial Bases, and develop the snow economy; and prepare and
implement policies and measures for supporting the development and revitalization
of areas affected by industrial decline; introduce and implement the Guidelines on
Nurturing New Drivers for the Transformation and Development of
Resource-dependent Cities through Tailored Guidance and establish experimental
zones for transformation and innovation and demonstration cities for sustainable
development
Arrange cooperative partnerships between provinces and municipalities in the
northeast and in the eastern region, accelerate development of key platforms for
development and opening up such as the China-Germany (Shenyang) High-end
Equipment Manufacturing Industrial Park, and support the building of Dalian into
an international shipping center for Northeast Asia and the construction of the
China-Russia international transportation corridor
3) We will steadz!J drive fonvard Ne1v Urbanization.
With a focus on increasing the number of urban residents, we will deepen reform of the
household registration system, work to achieve full coverage of the residence certification
system, and bring people with rural household registration living in cities under the housing
provident scheme in a well-ordered way. We will move faster to formulate city-cluster
development plans for the Guangdong-Hong Kong-Macao greater bay area, the western shore
of the Taiwan Straits, the Guanzhong Plains region, and the Hohhot-Baotou-Ordos-Yulin
region. In addition, we will launch the national initiative to develop principal cities, elevate
eligible counties and very large towns into cities in an orderly manner, accelerate the upgrading
and building of municipal infrastructure, and steadily m ove ahead with the construction of
urban utility tunnels and the comprehensive management of underground pipelines and cables.
We will do more to see that beautiful small towns and cities with unique features and
beautiful villages are developed. We will leverage the leading role of New Urbanization to spur
41
on the building of a new countryside and the integrated development of the primary,
secondary, and tertiary industries in rural areas and will coordinate efforts to relocate people
from inhospitable areas with the advancement of New Urbanization.
Table 12. Permanent Urban Residents as a Percentage of Total Population
Percent
60
59
58
57
56
55
54
53
52
51
50
2013
2014
2015
2016
2017
(projected)
Source: National Bureau of Statistics; National Commission for Development and Reform
7. Promoting deeper, higher-level bidirectional opening up
We will enhance overall coordination and planning, particularly between efforts at home
and abroad; integrate efforts to further open up, improve services, and enhance regulation; and
strive to carve out new competitive edges in international markets.
1) We Jvi/1 deliver more concrete results in developing the Belt and Road.
We will accelerate the development of the six major international economic cooperation
corridors, ensure the smooth construction and operation of important ports such as Gwadar,
Piraeus, and Hambantota, steadily push ahead with the high-speed railway projects to connect
Jakarta and Bandung in Indonesia and Moscow and Kazan in Russia, as well as the railway
projects to connect China and Laos, China and Thailand, Malaysia and Singapore, and Hungary
and Serbia, and further strengthen the brand of China-Europe freight train services. We will
strive to make a great success of the Belt and Road Forum for International Cooperation.
We will actively advance concrete international cooperation on industrial capacity, build up
a reserve of projects, and establish demonstration zones, so as to promote Chinese equipment,
technology, standards, and services in going global. Efforts will be stepped up to develop the
China-Belarus Industrial Park, the China-Egypt Suez Economic and Trade Cooperation Zone,
Malaysia-China Kuantan Industrial Park, and other overseas economic-trade and industrial
parks. We will continue to build cross-border (border-area) economic cooperation zones and
promote cooperation on developing the Online Silk Road.
2) We Jvill work to sustain the steac!J recovery and growth of foreign trade.
We will implement and improve policies for promoting foreign trade, give full play to the
role of export-credit insurance, proceed with trials in market purchases trade and in the
development of enterprises that provide comprehensive foreign trade services, and promote
the export of competitive agricultural products. We will encourage the processing trade to
extend toward the high end of the industrial chain and to gradually relocate to the central and
western regions.
We will increase trade facilitation, ensuring that the Single Window System for international
trade is implemented nationwide. The import of advanced technology and equipment and key
spare parts and components will be increased. We will advance negotiations on establishing the
Regional Comprehensive Economic Partnership and continue to advance the building of the
42
Free Trade Area of the Asia-Pacific. We will properly handle trade frictions and safeguard
China's legitimate rights and interests.
3) We 1villfiather improve the business envir-onment jor}01·eign investment.
We will issue and implement the measures for greater opening up to and dynamic use of
foreign capital, the revised Catalog of Industries for Foreign Investment, and the Catalog of
Industries with Local Strengths in the Central and Western Regions for Foreign Investment, so
as to ensure more areas are opened up and procedures are streamlined. We will take a more
proactive approach to building pilot free trade zones; focusing on priority tasks and weak links,
we will continue to explore ways to deepen reform and work to produce more institutional
innovations that can be replicated. We will improve the system for managing the foreign debt
of foreign-funded enterprises. China's non-financial foreign direct investment for 2017 is
projected to be similar to that of last year.
4) We 1villguide healtf?y and order!J development of outbou11d investment.
We will make the reviews for verifying the authenticity of outbound investment more
stringent, draw up a blacklist in this regard, introduce a system of capital contribution
requirements for SOEs' outward investment, and work to prevent outward investment from
rising excessively fast. We will refme the service system and policies for promoting outward
investment, and provide guidance to ensure Chinese businesses go global in a well-regulated
and orderly manner. China's non-financial outward direct investment in 2017 is projected to be
roughly the same as last year.
Table 13. Non-Financial Inward and O utward Foreign D irect Investment
Billions of US$
200
170.1
170
150
100
50
0
2013
2014
2015
2016
2017
(projected)
Dlnward FDl in Non-financial Sector 180utward FDl in Non-financial Sector
Source: Ministry of Commerce; National Commission for Development and Reform
8. Working faster to advance green developmen t
We will intensify efforts to deliver ecological progress, take comprehensive measures to
promote resource conservation, increase the supply of green products, and bring about an
all-around improvement in the quality of the environment, so as to ensure the building of a
Beautiful China proceeds at a faster pace.
1) We will deepen structural reform for promoting ecologicalprogress.
We will work proactively to establish national pilot zones for ecological progress. Trials will
be carried out to improve the national natural resource asset management system. All-around
efforts will be made to establish and strictly enforce red lines for ecological conservation. We
will push ahead with reform of the system for payment-based use of state-owned natural
resource assets, and formulate provisional measures for auditing outgoing officials'
management of these assets.
Evaluations will be conducted to assess performance in relation to ecological conservation
targets, and provincial-level green growth indicators for 2016 will be published. We will strive
43
to achieve nationwide coverage of central government environmental inspections, and advance
trials for reforming the system that places the monitoring, supervision, and law enforcement
activities of environmental bodies below the provincial level directly under the leadership of
provincial-level environmental bodies. We will move forward with the efforts to reform the
compensation system for ecological and environmental damage, improve the green finance
system, and issue more bonds for launching eco-friendly initiatives.
2) We will improve the junctional zoning .rystem.
Guidelines will be formulated to improve the functional zoning strategy and system. Work
will begin on revising both the national plan for functional zoning and the corresponding plans
of provinces, autonomous regions, and municipalities directly under the central government.
We will move faster to promote trials on provincial-level spatial planning, and also issue
guidelines on the formulation of prefecture- and county-level spatial plans. We will draw up
technical standards for enforcing red lines for ecological conservation, setting the threshold for
environmental quality, imposing a ceiling on resource utilization, and implementing a negative
list of environmental standards for market access, and will see that environmental impact
assessments for strategies and plans are put in place.
We will draw up an overall plan for establishing a national park system. We will work out
guidelines on creating long-term monitoring and early-warning mechanism s for environmental
and resource carrying capacity, and begin monitoring and early-warning work along the Yangtze
E conomic Belt. Negative lists of industries will be strictly implemented for key ecosystem
service zones. Supporting policies for establishing marine functional zones will be produced.
We will also begin work on formulating provincial-levelland plans.
3) We 1vill ensure more effective use of resources.
The overall work plan for energy conservation and emissions reduction during the 13th
Five-Year Plan period will be put into effect. We will work to curb the total amount and
intensity of energy, water, and land consumption; launch the Nation of E nergy Savers Initiative,
the "100-1,000-10,000" energy conservation program*, and the Frontrunner Program for
E nergy Conservation; drive forward trials on paying for and trading energy-use rights; and
implement the project to promote the integration and optimization of the energy mix, so as to
ensure less water, wind, and solar power lies idle.
We will get everyone saving water, put in place a water efficiency labeling scheme, and
redouble our efforts to utilize alternative water resources. We will launch an initiative to guide
circular development, formulate the Internet Plus Resource Recycling Action Plan, promote
circular operations within industrial parks, and support the establishment of demonstration
centers for the resource recycling industry and centers for the comprehensive use of waste.
4) We will strengthen environmentalgovernance and ecological conservation.
We will fully implement the major action plans for addressing air, water, and soil pollution.
Every effort will be made to tackle air pollution; we will strengthen early-warning mechanisms
for severe air pollution and ensure that tougher measures are implemented to prevent and
control air pollution in the Beijing-Tianjin-Hebei region, that effor ts to cut coal consumption,
replace it with alternative energy, and prevent and control its pollution are made in key areas
and cities-including in and around the Beijing-Tianjin-Hebei region, the Yangtze River Delta,
and the Pearl River Delta-and that more clean energy sources are used for winter heating
across northern China.
We will put in place an early-warning and integrated-oversight system for the prevention
and control of water pollution, formulate the plan for the prevention and control of water
pollution in key water basins during the 13th Five-Year Plan period, and implement the
' The 100-1,000-10,000 energy conservation program aims to put the top 100 energy consuming enterprises in China under
regulation of the central government, the top 1,000 energ y consuming enterprises under the regulation of their respective
provincial-level governments, and a further 10,000 plus high-energy consuming enterprises under the regulation of lower-level
governments.
44
program to advance ecological conservation and environmental protection along the Yangtze
Economic Belt. New systems and mechanisms to manage and protect rivers and lakes will be
established and the river chief system will be implemented across the board.
Pilot and demonstration projects will be carried out to move ahead with all-around
ecological restoration in cities. We will make greater efforts to improve black, malodorous water
bodies in cities, and increase the overall effectiveness of urban sewage treatment and recycling
facilities. We will encourage key cities to carry out mandatory household waste classification
and to move faster in building facilities for sorting, collecting, transporting, and disposing of
waste. We will steadily advance the emissions permit system, and carry out demonstrations for
sorting and recycling rural household waste in about 100 counties. We will establish an
environmental management system for fixed pollution sources which is based on emissions
permits, and strictly control the total amount of sewage dumped into rivers.
We will actively promote third-party participation in pollution control. An in-depth survey
will be carried out throughout the country to assess the situation in relation to soil
contamination, legislative work on the Law on Prevention and Control of Soil Pollution will be
sped up, and standards for the quality of soil environments on agricultural land and
construction land will be formulated or revised. We will ensure that emissions of all industrial
polluters stay within emissions standards.
We will build national ecological security shields, push ahead with large-scale afforestation,
and implement projects for ecological conservation and restoration in mountains, water bodies,
and forests, and on farmland as well as major biodiversity protection projects. We will move
ahead with the projects to return marginal farmland to forest or grassland and return grazing
land to grassland, develop forest shelterbelts, protect natural forests, and comprehensively
tackle soil erosion.
We will put in place pilot and demonstration programs to advance the comprehensive
governance and sustainable development of the water environment in water basins, and will
promote the return of cultivated land to wetland and the reduction of mudflat aquaculture so
as to restore mudflat ecosystems. Strict control and oversight will be imposed over coastal
reclamation activities. Remote sensing systems will be established in nature reserves to
strengthen oversight.
5) We 111ilfproactive!J respond to climate change.
A national market for carbon emissions rights will be put into operation. We will move
quicker to carry out the low-carbon pilot and demonstration programs as well as the trials for
developing climate resilient cities. We will actively participate and play a guiding role in the
follow-up negotiations of the Paris Agreement, make every effort to promote climate
diplomacy, and ensure efforts are carried out at home to fulfill our promises in the Agreement.
We will continue to promote international dialogue and effective cooperation, and strengthen
South-South cooperation on climate change.
9. Doing more to safeguard an d improve people's weObeing
Better coordination will be achieved between the efforts to improve people's wellbeing and
those to develop the economy. We will strive to make the social safety net tighter and sturdier,
and to improve the standard and quality of public services, so that our people's sense of
benefit continues to grow.
1) We 111ilfput every effort into fighting poverty.
We will speed up implementation of key poverty alleviation projects, such as relocating
people from inhospitable areas, supporting the development of local industries, and providing
job-seeking assistance. We will boost efforts to carry out work-relief programs, and will
support the development in poor areas of infrastructure and basic public services, such as
transportation, water conservancy, education, health care and family planning, cultural services,
and social security.
We will work on policies and measures to help people in border regions eliminate poverty
45
and achieve moderate prosperity with a view to stabilizing and consolidating our frontier. We
will support development and poverty relief work in old revolutionary base areas, such as the
Sichuan-Shaanxi region and the former Central Soviet area in southern Jiangxi. We will
prudently carry out the pilot poverty-relief reform which enables people in poor areas to share
in the proceeds from the exploitation of local hydropower and mineral resources. We will make
further efforts to fight poverty by providing access to and improving fmancial services, health
care, education, transportation, and e-commerce, and by developing the tourism industry in
local areas. Provincial-level trials to use internet-based initiatives to alleviate poverty will be
carried out.
2) We willfui!J implement the strategy of prioritizing employment.
Priority groups will continue to receive support in starting businesses and finding jobs. We
will further expand trials to provide support for migrant workers and others who return to
their hometown to set up businesses, with a focus on creating industrial clusters in local areas
for these returnees, promoting rural e-commerce, and reducing overcapacity and developing
alternative industries. We will properly resettle and provide reemployment services for people
laid off due to the scaling down of overcapacity in the coal and steel industries. We will
develop and improve community-based employment service facilities and public vocational
training centers, and strengthen employment assistance, thereby boosting the capacity of public
employment services.
3) We 1viff strengthen social securiry so as to better meetpeople's basic needs.
We will work to reform and improve the basic old-age insurance system. Integration of the
medical insurance schemes for rural and non-working urban residents will be stepped up. Pilot
programs on long-term care insurance and the integration of maternity insurance with the
basic medical insurance for urban workers will come into operation. We will coordinate the
development of social assistance systems.
A housing system will be established to encourage both buying and renting and to ensure
the continuous improvement of housing conditions for both low- and middle-income groups
and people facing difficulties. In 2017, we will begin renovations on six million units of
housing in run-down urban areas and continue to rebuild dilapidated houses in rural areas, with
a focus on supporting subsistence allowance beneficiaries; rural residents who receive
assistance because of extreme poverty and do not live in a nursing home; families of people
with disabilities living in poverty; and registered poor households. We will continue to develop
government-subsidized housing including public rental housing.
4) We will improve the .rystem of basic public services.
We will implement the plan for ensuring equitable access to basic public services during
the 13th Five-Year Plan period. The system for a list of basic public services will be established.
We will reform the management of the higher education admission scheme. In 2017, regular
institutions of higher learning are projected to enroll 7.35 million undergraduate students and
844,000 graduate students.
We will press ahead with the comprehensive reform of public hospitals nationwide, fully
launch the trials to establish diverse forms of medical consortiums, and set up assessment and
incentive mechanisms for ensuring quality medical resources are shared between different levels
of medical institutions. We will ensure governments' responsibility of ensuring basic health
care is fulfilled. We will implement the program to ensure a healthy population, and boost the
capacity of counties in the central and western regions to offer comprehensive medical and
health care services, as well as the capacity of institutions for disease prevention and control
and for m aternal and child care. As the policy of allowing couples to have two children has
come into effect, we will provide better medical and health services related to childbirth. We
will proactively develop traditional Chinese medicine and the traditional medicine of ethnic
minorities.
We will introduce and implement the plan for developing elderly services and building the
46
elderly care system during the 13th Five-Year Plan period. We will improve the system for
elderly services, and implement the plan to train elderly-care workers. We will introduce and
carry out the national population development plan, and work to ensure the implementation of
the policy of allowing couples to have two children. We will, more effectively, safeguard the
rights and interests of women, minors, people with disabilities, and other social groups.
We will ensure more equitable access to basic public cultural services and help localities to
implement the national standards for guiding the provision of basic public cultural services. We
will encourage innovation in the ways of delivering public cultural services as well as
private-sector participation in developing the system of public cultural services. We will ensure
that philosophy and the social sciences flourish.
We will promote public fitness programs, and boost the popularity of community sports.
We will move ahead with the plan for the long- and medium-term development of soccer in
China as well as the plan for the construction of soccer fields and facilities.
We will deepen cooperation with H ong Kong and Macao in the areas of investment, the
economy, and trade, and work to upgrade the Closer Economic Partnership Arrangement
(CEPA) between the mainland and the two regions. We will support Hong Kong and Macao in
participating in and contributing to the Belt and Road Initiative as well as regional economic
cooperation. We will carry out work involving H ong Kong and Macao as part of the 13th
Five-Year Plan. We will press ahead with the construction of the Hong Kong-Zhuhai-Macao
Bridge so as to more quickly achieve a greater level of interconnectivity in infrastructure
between Guangdong Province, H ong Kong, and Macao. D evelopment of the Qianhai, Nansha,
and Hengqin platforms for cooperation between G uangdong, H ong Kong, and Macao will be
accelerated, and regional cooperation in the pan-Pearl River Delta will be pushed to a higher
level and made more substantive. We will support Hong Kong in its efforts to pursue
innovation and develop science and technology, to consolidate and elevate its position as an
international financial, shipping, and trade center, and to cultivate new strengths. We will
provide further support for Macao in becoming a world tourism and leisure center and in
building a platform to facilitate business and trade cooperation between China and
Portuguese-speaking countries. We will also support Macao in developing industries such as
convention and exhibition, specialized financial services, cultural & creative industries as well as
cross-border e-commerce, so as to promote an appropriate level of diversity in its economy. We
will ensure platforms for cooperation with Taiwan are successfully established, including the
Pingtan Comprehensive Experimental Area, Fuzhou New Area, and the China (Fujian) Pilot
Free Trade Zone, so as to deepen cross-Straits economic exchange and cooperation.
Esteemed Deputies,
Accomplishing the work for economic and social development in 2017 is both a
demanding and important 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, take Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific
Outlook on Development as our guide, and fully implement the guidelines from General
Secretary Xi Jinping's major political addresses as well as his new concepts, thoughts, and
strategies on the governance of China. We will willingly accept the oversight of the N P C, and
seek comments and suggestions from the CPPCC National Committee with an open mind. Let
us pool our will and strength to promote reform and innovation, work hard to deliver a sound
performance to overcome the difficulties ahead, and foster steady and sound economic and
social development, so as to welcome the convocation of the 19th CPC National Congress
with outstanding achievements.
47
Performance of the Main Targets in the 2016 Plan for
National Economic and Social Development
No.
Targets
T ype
Unit
Projected
Figures
Actual
Figures
Performance
I. Economic Development
1
GDP
Anticip1tory
%
Up 6.5-7.0
Up 6.7
As projected
2
Primary Industry
Anticipatory
%
Up 3.8 appro x.
Up 3.3
Lower than
projected
Anticipamry
Million
metric tons
Over 550
616.24
As projected
3
Includes: grain output
4
Secondary Industry
An ticipatory
%
Up 5.8 approx.
Up6.1
As pro jected
5
Industrial sector
Anticipatory
%
Up 5.8 approx.
Up 6.0
As projected
6
7
Includes: electricity generated
Tertiary Industry
Anticipato ry
Trillion
kWh
5.8160
6.1425
As projected
Anticipatory
%
Up 8.2 approx.
Up7.8
As p rojected
Domestic Demand
8
T otal ftx ed-asset investment
An ticipatory
%
Up 10.5
approx.
Up 7.9
Lower than
pro jected
9
Total r etail sales o f consumer goods
Anticipatory
%
Up 11.0
approx.
Up 10.4
As projected
External Economy
Down 0.9
(According to •he
IMF sto;~tistics, the
volume
of
%
(Billion
Yuan)
Faster growth
rate than that
of world trade
A n ticipatory
%
(Billion USS)
Up 10.0
approx.
Up 10.0
approx.
As projected
Foreign direct investment
Anticipatory
Billion USS
127 .6
126.0
As pro jected
13
Long- and medium-term foreign
debt
Anticipatory
Billion USS
50.0
54.8
As projected
14
Outbound direct investme nt
Anticipatory
Billion US$
129.8
170 .1
Better than
p rojected
Total import and export volume o f
goods
An ticipato ry
11
Total import and export volume of
serv1ces
12
10
48
~Ill-denominated
Lower than
pro jected
world im pom and
exports o f goods
rose by about 4'/•)
Urbanization Levels
15
Percentage of permanent urban
residents
Anticipatory
%
57.1
57.35
As projected
16
Percentage of registered urban
residents
AntiCipatory
%
Over 41.2
41.2
As projected
103.0 approx.
102.0
As projected
Price Levels
17
CPI (2015=100)
Antic1patory
Fiscal & Financial Targets
18
General government revenue
AnticipatOl')'
%
Up3.0
4.5
Better than
pro jected
19
General government expenditures
Anticipatory
%
Up 6.7
7.4
Be tter than
projected
20
Fiscal deficit
Anticipacory
Trillion yuan
-2.1800
-2.1800
As prOJeCted
21
M2 money supply growth rate
Anticipawry
%
13 approx.
11.3
Lower than
projected
%
2.15
2.08
As projected
7.3
8.0
As projected
II. Innovation as growth driver
Science & Technology
22
Spending on R&D as a percentage
ofGDP
Anricip:uory
23
Number of patents per 10,000
people
Amicipatory
24
Contribution of scientific and
technological advances toward
economic growth
Anticipatory
%
56.2
56.2#
As projected
25
Percentage of mobile broadband
users
Anticipatory
%
65
71
As projected
26
Percentage of households with fiXed
broadband internet access
Anticipatory
%
47
61
Better than
projected
%
93.3
93.4
As projected
Education
27
Retention rate of nine-year
compulsory education
Anticipatory
28
Gross enrollment ratio for senior
secondary education
Ant1cip:uory
%
8 7.5
87.5
As projected
29
Regular undergraduate enrollment
Anticipatory
Million
students
7.05
7.486
As projected
49
30
Graduate enrollment
Anticipawry
Million
students
0.818
0.797
As projected
III. Resource Conservation and
Environmental Protection
Resource conservation
31
i:rReduction in energy consumption
per unit of GDP
Obligotory
%
Over 3.4
5.0
Accomplished
32
i:rReduction in carbon d ioxide
emissions per unit ofGDP
Obligotory
%
Over 3.9
6.6
Accomplished
33
i:rShare of non-fossil fuels in
primary energy consumption
Obligotory
%
13.2
13.3#
Accomplished
34
i:rReduction in water consumption
per 10,000 yuan ofGDP
Obligotory
%
5.1
5.6
Accomplished
35
i:rLand newly designated for
construction
Obligotory
1,000
hectares
466.67
406.67#
Accomplished
Obligotory
1,000
hectares
400.00
346.67#
Accomplished
36
Includes: agricultural land
37
Includes: cultivated land
Obligatory
1,000
hectares
266.67
226.67#
Accomplished
38
Increase in total cultivated land
Obligotory
1,000
hectares
266.67
226.67#
Accomplished
39
Land reclaimed from the sea
Obligotory
1,000
hectares
20.00
15.73
Accomplished
Anticipatory
1,000
hectares
14666.67
15160.00
As projected
E n vironmental Protection
40
Afforestation of land
41
i:rReduction in Sulfur dioxide
emiSSIOnS
Obligotory
%
3.0
5.6#
Accomplished
42
i:r Reduction in Chemical oxygen
demand
Obligotory
%
2.0
2.6#
Accomplished
43
i:rReduction in Ammonia nitrogen
Obligotory
%
2.0
2.9#
Accomplished
44
i:rReduction in N itrogen oxide
emissions
Obligotory
%
3.0
4.0#
Accomplished
45
i:rPercentage of days in which air
quality of cities at and above
prefectural level is good or
exceUcnt
Obligotory
%
77.0
78.8
Accomplished
46
i:rReduction in PM2.s
concentrations o f cities at
prefectural level or above that feU
short of the national standards
for PM2.s concentrations
Obligotory
%
3.0
8.8
Accomplished
so
47
*Proportion of surface water with
a water quality rating of G rade III
or higher
Oblig:ttory
%
66.5
67.8
Accomplished
48
*Proportion of surface water lower
than Grade V
Obligatory
%
9.2
8.6
Accomplished
49
Percentage of urban sewage treated
Anticipatory
%
91.8
92.4
As projected
50
Percentage of urban househo ld
refuse safely treated
Anticipatory
%
93.0
95.0
As projected
IV. Social D evelo pment a nd
People's Wellbeing
Employment and Income
51
Urban jobs newly created
Anticip2tory
Million
Over 10
13.14
Better than
projected
52
Registered urban unemployment
rate
Anticip2tory
%
Within 4.5
4.02
As projected
53
Personal per capita disposable
income
Anticipatory
%
In step with
the economic
growth
Up 6.3
As pro jected
54
Rural per capita disposable income
Anticipatory
o/o
In step with
the economic
growth
Up 6.2
As projected
55
Urban per capita disposable income
Anticipatory
%
In step with
the economic
growth
Up 5.6
Lower than
projected
Obligatory
Million
Over 10
12.40
Accomplished
Billion
1.38358
1.38271
As projected
Poverty Reduction
56
*Reduction in number of rural
residents living in poverty
Populatio n and Public Health
57
Year-end national population
58
Number of hospital and health
clinic beds per 1,000 people
Anticipatory
5.20
5.36
As projected
59
Number of service facilities for
people with disabilities
Anticipatory
4,138
4,006#
As projected
Anticipatory
Social Security
60
Number of urban workers covered
by the basic old-age insurance
system
Anticip2tory
Million
374.15
378.62
As projected
61 -
Number of participants in basic
old-age insurance schemes for
rural and non-working urban
residents
Anticip2tory
Million
505.80
508.47
As projected
62
*Renovation on units of housing
in run-down urban areas
Oblig:ttory
Million units
6.00
6.06
Accomplished
51
Notes:
1. The 2016 Plan for National Economic and Social Development deliberated and passed at the Fourth Session of the
Twelfth National People's Congress lists a total o f 62 targets, of which 43 are anticipatory and 19 are obligatory. The 15 targets
marked with "(::( are obligatory targets set forth in the Thirteenth Five-year Plan for National Economic and Social
Development o f 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 of obligatory targets is assessed on the basis of whether or not they have been accomplished. A
deviation of 10% from the projected figure is the standard used to assess the performance of anticipatory targets: if the actual
figure exceeds the anticipatory figure by 10% or more, it is assessed as better than projected; if the actual figure falls short of
the anticipatory figure by 10% or more, it is assessed as 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. However, these assessment standards are not applicable to
targets that have a minimum or maximum limit. For example, the actual registered urban unemployment rate in 2016 was
4.02%, 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 2016; the actual figures will be confirmed following the final
review and adjustments by relevant departments. Influenced by the adjustment of the base figures for 2015, the actual
performance of some targets in 2016 may change somewhat.
52

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