CHINA is to press ahead with supply-side structural reform with more efforts focusing on reining in excessive production capacity, reducing corporate costs and improving the environment for innovation.
The decision was made at a State Council executive meeting chaired by Premier Li Keqiang yesterday after hearing a report on the fourth round of nationwide inspection.
The inspection, conducted by the State Council in two phases between June and August, is aimed at ensuring that the tasks put forward by the central economic work conference and the Government Work Report are implemented in full.
The cutting of surplus production capacity will be prioritized, with special focus on the weeding out of substandard steel production. The government will further reduce corporate costs by applying standards and supervision to fees levied by associations, chambers of commerce and various societies in a major push to end unregulated excessive charging at source.
Unlawful charging practices will be handled according to the law. Whistle-blowing on wrongdoings will be encouraged to strengthen public supervision.
“We need to give full play to the inspection in its role of spurring implementation and development, to break the bottlenecks in the last mile of policy implementation, clearing all hurdles in the way of various policies,” Li said.
The inspection found that the ongoing supply-side structural reform is progressing in a steady manner as the economic structure optimizes.
It also found a number of problems in different areas, including excessive production capacity cutting in arrears, deficiencies in the business environment, and bottlenecks in the transformation of research findings to products.
“The problems should be addressed as early as possible, with results to be delivered for problems such as the resurgence of shutdown production capacity, excessive fees levied on enterprises, obstacles to foreign investment and long delays for approvals of some investment programs,” Li said.
The report said the government will further promote innovation-driven development, with an evaluation system to monitor the environment for innovation and entrepreneurship set to be established. The incentive mechanism for the commercialization of scientific and technological progress will be improved.
The development of a business environment with a global edge will be prioritized to further promote private and foreign investment. The government will develop an evaluation mechanism for business environments, and conduct timely evaluation of the environment.
The government will also work on the real estate transaction registration mechanism to reduce red tape. Local authorities will be encouraged to ensure real-time data sharing.
“Many good experience and practices turn out to be cases for reform to streamline administration, enhance compliance oversight, improve government service, and encourage innovation and entrepreneurship. Best practices need to be applied more extensively,” Li said. “Government departments should study the feedback, address issues as soon and as much as possible, and provide greater support to local authorities, enterprises and the public.”