Fourth, we will work to stimulate nongovernmental investment. We will make overall arrangements for investment funds from the central government budget and special development funds, giving priority to developing PPP projects that are in line with government criteria. We will also further relax restrictions on market access to open up more channels for private investment. The formulation of the regulations on government investment, the regulations on franchising of infrastructure and public utilities, and the regulations concerning the management of investment projects that are subject to government review and reporting will all be accelerated.
Fifth, we will strengthen major construction projects in key areas and areas of weakness. We will increase efforts to press ahead with the key projects in the 13th Five-Year Plan as well as other major projects, such as those to reduce poverty; rebuild run-down areas; upgrade rural power grids and urban power distribution grids; develop major water conservancy projects, railways, highways, and urban rail transit facilities; control water pollution in key water basins; and promote technological upgrading in enterprises. Construction will begin on 20 major water conservancy projects. We will launch major strategic projects including the 100-200-300 Transportation Program, the project to develop wind and photovoltaic power bases in northwestern China, and the project to promote military-civilian integration. We will strengthen management in relation to investments and tighten the supervision and inspection of projects.
Box 14: The 100-200-300 Transportation Program
3. Channeling more effort into reforms in major areas and in relation to key issues
To ensure that market vitality remains constant, we will promptly introduce a range of measures aimed at leading reform efforts and put more focus on the efficiency of institutional supply.
1) We will intensify efforts to streamline administration, delegate more powers, improving regulation, and provide better services. We will continue to delegate the power of or cancel the requirement for government review on more items and ensure that the delegation of powers is better coordinated. We will make the lists of all local governments' powers and responsibilities available to the public, carry out trials for compiling lists of powers and responsibilities of departments under the State Council, and begin trials to use a negative list for market access in certain regions. We will press ahead with coordinated law enforcement and oversight using big data, and coordinate oversight through market, credit, and legal measures. We will move faster to set up a credit rating system, expand the scope and services of the platform for sharing information on credit nationwide, and strengthen the mechanism to give joint incentives to those who act in good faith and to take joint punitive actions against those who act in bad faith. We will implement a national unified system of credit rating codes; press ahead with the reform to replace the separate business license, organization code certificate, and taxation registration certificate with a unified business license with a unified social credit code; and conduct trials to separate operating permits and business licenses. We will speed up the reform of making the trade of public resources more market-based, and establish a unified trading platform by integrating existing ones. We will improve the way in which the government provides public services, expand Internet Plus government services, promote better information sharing between government departments, and move faster to standardize government review and approval. We will ensure a unified registration system for immovable property is implemented at community level.
2) We will deepen reform of the investment and financing systems. We will make innovations in investment management and create new mechanisms for investment and financing; further streamline investment approval procedures; reduce, combine, and regulate the items required for a construction project when applying for government approval; improve the online platform for reviewing, approving, and monitoring investment projects; and put in place a new system for carrying out the combined review and approval of investment projects for enterprises. We will improve the mechanism for facilitating cooperation between the government, banks, enterprises, and nongovernmental investors, and promote application of PPP models such as franchise operations to encourage nongovernmental capital's participation in the development and operation of major government projects.
3) We will deepen reform of prices. We will work to lift pricing controls over competitive areas in the power, petroleum, natural gas, and transportation industries. We will extend to more areas the trial price reform for electricity transmission and distribution, and improve the policy for adjusting prices for electricity generated by environmentally friendly facilities. We will improve the pricing mechanism for refined oil products. We will steadily advance reform of medical service prices. Comprehensive reform of the pricing for water used in agriculture will be carried out. We will establish sound rules for market prices, strengthen price oversight, and safeguard order in relation to prices and fees.
4) We will meet head-on the most difficult problems related to SOE reform. We will step up efforts to reorganize or establish state capital investment companies and operating companies. We will reform SOEs by introducing a mixed ownership structure, and begin trials and demonstrations in key industries such as railway, civil aviation, telecommunications, and defense. We will carry out structural reform of the power, petroleum, natural gas, and salt industries. We will promulgate guidelines on further improving the property rights system.
5) We will accelerate reform of the fiscal and tax systems. We will introduce guidelines on appropriately dividing powers and spending responsibilities between the central and local governments. We will increase the percentage of funds transferred from the central government budget for state capital operations to the general public budget. We will expand the reform to replace business tax with VAT to the construction, real estate, financial, and consumer service industries, and make the input VAT on enterprises' new immovable property deductible, so as to ensure that the tax burden on all industries can be reduced rather than increased. We will implement reform to levy the price-based resource tax on all resource products, advance reform of the excise tax and the environmental protection tax, and steadily carry out reform of personal income tax that is based on adjusted gross income as well as specific types of income.
6) We will advance financial reform. We will diversify the system of financial institutions; deepen reform of state-owned commercial banks, developmental financial institutions, and policy-backed financial institutions; and continue to conventionalize the establishment of private banks. We will develop inclusive finance to increase financial services for micro, small, and medium-sized businesses as well as for rural areas, paying particular attention to poor areas. We will promote the sound, well-regulated development of new forms of business in the financial sector. We will take steady steps to realize RMB capital account convertibility. We will promote the sound development of a multi-level capital market and improve the system for financial oversight and regulation. A catastrophe insurance system will be established.
In addition, we will continue to deepen reform in areas related to people's wellbeing and social programs, including reform of the education, elderly care, cultural, medical, and health care systems and reform of the airspace management system.
4. Implementing the innovation-driven development strategy
In pursuing innovative development, we will fully implement the strategy for innovation-driven development, deepen efforts to promote entrepreneurship and innovation across society, and deepen reform of the science and technology management system. We will expand the resources, increase the space, and improve the environment for stimulating the enthusiasm and potential for innovation and entrepreneurship across all sectors of society, particularly enterprises.
1) We will increase the supply of resources for innovation. We will promote the development of major national science and technology infrastructure and national laboratories and industrial innovation centers. Comprehensive national science centers will be established in areas with a concentration of major science and technology infrastructure, and a new group of major science and technology programs and projects will be launched. We will systematically conduct pilot reforms for all-round innovation, and organize the implementation of the project to develop 100 top innovative enterprises.
2) We will accelerate the implementation of the action plan for entrepreneurship and innovation. We will help to establish more entrepreneurship and innovation demonstration centers; create more platforms to support crowd innovation, crowdsourcing, crowd support, and crowdfunding; and develop maker spaces, particularly spaces for specialized crowd innovation. We will develop the sharing economy. Local authorities and large corporations will be encouraged to establish venture capital, entrepreneurship and innovation platforms, and science and technology innovation centers. We will focus on supporting the development of platforms for business incubation, start-up assistance, and public services for start-ups and innovation. We will move forward with the Internet Plus action plan and the innovation project to promote open, big data. We will put in place high-speed, mobile, secure, and ubiquitous next-generation information infrastructure, intensify efforts to implement information technology development projects that benefit the general public, and improve the mechanisms for providing universal service in telecommunications. The Online Silk Road Agenda will be initiated. We will continue to make the National Week for Entrepreneurship and Innovation a success and support the development of more events that are geared toward promoting entrepreneurship and innovation.
