3) The investment and financing systems continued to undergo innovation. We used the public-private partnership (PPP) model and other measures such as granting franchise and subsidizing investment to encourage and guide the involvement of nongovernmental capital in the construction and operation of infrastructure and public utilities. We adjusted and improved the capital contribution requirements for fixed-asset investment projects. We properly adjusted and relaxed corporate bond issuance requirements, and issued new bonds such as project revenue bonds and bonds for eco-friendly initiatives, as well as six special bonds to finance the construction of urban parking lots and underground utility tunnels, the development of strategic emerging industries, the improvement of elderly care services, the building of incubators for entrepreneurship and innovation, and the construction and upgrading of power distribution grids.
4) Price reform was intensified. The guidelines for moving ahead with price reform were published and implemented. Pricing controls over nearly 40 goods and services were either lifted or delegated to lower-level governments. We revised the government pricing catalog, with pricing items being reduced by 80% for the central government and by 55% for local governments. We reduced the price of on-grid electricity from coal-fired power plants and the price of electricity for industry and commerce, and significantly decreased natural gas citygate prices for non-residential users. We improved pricing policies to make them more conducive to energy conservation and environmental protection. We further reviewed and standardized charges related to imports and exports.
Box 4: Price Reform in Key Areas
5) Steady progress was made in the reform of State-owned Enterprises (SOEs) and major industries. Ten pilot projects were launched as part of the reform of SOEs and the number of central government enterprises for which the State-owned Assets Supervision and Administration Commission is the investor was reduced from 112 to 106. We started a new round of structural reform of the electricity industry, began trials to reform the petroleum and natural gas exploration and exploitation system, and systematically promoted the reform of state forestry farms and forestry regions, water conservancy enterprises, rural supply and marketing cooperatives, and state farms on reclaimed land.
Box 5: Reform of SOEs
6) Social reforms were deepened. The mechanism for securing funding for urban and rural compulsory education was improved. Reform of the old age insurance system in Party and government bodies and public institutions was launched. Comprehensive reform of public hospitals was fully implemented in all counties with the reform also being carried out on a trial basis in 100 cities. We worked to ensure that all rural and non-working urban residents who have subscribed to basic medical insurance are also covered by the major disease insurance scheme, and actively promoted the system of tiered diagnosis and treatment. The temporary assistance system was implemented throughout the country. We lowered the premiums for unemployment insurance, workers' compensation, and maternity insurance, which has helped enterprises to reduce annual contributions by over 60 billion yuan. Reform of the system for the use of official vehicles was completed in all organs of the CPC Central Committee and the State Council, this reform was also launched in central government enterprises and public institutions, and its implementation was deepened in local Party and government bodies. Trials to untie industry associations and chambers of commerce from any connections they may have with the government were carried out nationwide. The national park system was implemented on a trial basis in Qinghai and other eight provinces and provincial-level municipalities.
7) The pace to create a new pattern of opening up was accelerated. Guidelines on building new systems for an open economy were issued and implemented. The Vision and Action Plan for Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road (the Belt and Road) was officially published, and progress was achieved in the development of six economic corridors and six channels for communications and distribution with key countries and ports serving as connection hubs*. Direct investments totaling US$ 14.8 billion were made to the countries involved in the Belt and Road Initiative, an increase of 18.2% over the previous year. The guidelines on international cooperation on industrial capacity and equipment manufacturing were released and implemented, and breakthroughs were made in China's rail transit technology and nuclear power "going global" . The Asian Infrastructure Investment Bank was officially established and the Silk Road Fund was put into operation. Guidelines relating to certain policies and measures supporting the development and opening up of major border areas were published. As a result of implementing the revised Catalog for the Guidance of Industries for Foreign Investment, the number of industries in which foreign investment is restricted was cut by 50%, the number of industries in which the amount of foreign investment is limited was reduced by 40%, and over 95% of all foreign investment projects are now only required to be placed on record with relevant authorities. The model for managing foreign debt was transformed so that foreign debt needs only to be registered instead of reviewed and approved. An additional three pilot free trade zones were established in Guangdong, Tianjin, and Fujian, and the China (Shanghai) Pilot Free Trade Zone was extended in area. Free trade agreements with the Republic of Korea (RoK) and Australia were signed respectively, as was the Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and the People's Republic of China. Non-financial foreign direct investment totaled US$ 126.3 billion, a year-on-year increase of 5.6%, of which the service sector accounted for over 60%. Non-financial outward direct investment amounted to US$ 118 billion, an increase of 14.7%.
Box 6: International Cooperation on Industrial Capacity and Equipment Manufacturing
3. We continued to pursue innovation-driven development and accelerated the development of new industries and new forms of business. We issued guidelines on deepening structural and institutional reforms and accelerating the implementation of the innovation-driven development strategy, pushed forward pilot reforms for all-round innovation, and devoted great energy to promoting innovation and industrial upgrading.
