The authorities are expected to further reduce government interference in the market and introduce more foreign investment to encourage competition, while ensuring the land rights of farmers, according to a reform plan released by a think tank of the State Council over the weekend.
The plan, drafted by the Development Research Center of the State Council, sets a detailed roadmap of comprehensive reforms to be discussed at the highly anticipated Third Plenary Session of the 18th Communist Party of China (CPC) Central Committee to be held in November.
"This plenary meeting will focus on deepening reforms all around," said Yu Zhengsheng, a member of the Standing Committee of the Political Bureau of the CPC Central Committee at a forum on Saturday. "This round of reform will be unprecedented in terms of its scope and intensity."
The key of the reform lies in optimizing the relationship between the government and the market, the report said. To that end, reforms have to be carried out in eight major areas, including administration, monopoly industries, land, financial and tax systems, management of State assets, innovation and opening-up policies, it said.
In the area of administration reform, the report said the government power in approving industrial projects should be largely reduced, and the government will count more on financial and tax measures to supervise the market on the macro level.
Reform in this direction has already been carried out step by step under the new leadership. Since June, there were two rounds of cuts on the State Council's approving power. Additionally, more than 310 financial charges set up by provincial governments have been removed in a recent move.
Song Fufan, a professor on socialism theories at the Party School of the CPC Central Committee, applauded the potential reform of administration. "If you want a lively economy, the market has to be opened up, while the government reduces its role, changing itself into a government of service," he said.
Reform measures in holding officials responsible for wrongdoings also drew wide attention.
The report said a "clean pension" system should be set up, which allows officials who are not found to have breached rules and laws to receive the pension upon retiring. The controversial reform on the publicizing of officials' personal properties will be pushed ahead, probably starting from newly elected officials or leaders of State-owned enterprises.
"It will become a very useful tool to fight corruption, if the clean pension plan is adopted by the authorities," said Chen Jiaxi, associate professor at Contemporary Chinese Politics Research Institute of Shenzhen University.
Some countries like Singapore have been using this system, in which a big chunk of income is deducted from officials' salaries, and if they violated rules, they will not able to get the money.
According to the reform plan, the government will also address the issue of local government depending on selling land for revenues, which has caused a large number of disputes between the government and residents.
Villagers will collectively own the right to sell their land and be properly compensated. The local governments will no longer be able to buy their land for an extremely low price and resell it to developers or businesses for a much higher price. The reforms will be taken in three stages, respectively the 2013-14 short-term, the 2015-17 medium-term and the 2018-20 longer-term, according to the plan report.
Sidebar: Eight major areas of reform
Administration. Largely reduce government interference in market affairs. Encourage citizens to sue officials for abuse of power.
Monopoly. Lift controls on the import of oil and gas. Regroup telecom industry to encourage competition.
Land. Farmers are given collective power to sell their land. Compensation for land should be up to market standard.
Financial system. Renminbi will become a major international currency in 10 years, used for some country's foreign reserves.
Tax and finance. Property tax will become local governments' major income stream.
State assets. State assets and financial revenues can compensate each other.
Innovation. University presidents will no longer be assigned by the government.
Foreign investment. Industries in energy, telecom and banking will be further opened up to boost domestic competition.
　　
