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Conscience! 2019 Government Work Report

2019-03-13

At 9 o’clock on March 5, the second session of the 13th National People’s Congress was held in the Great Hall of the People. Premier Li Keqiang made a government work report on behalf of the State Council.

Review of work in 2018

Main targets for economic and social development were accomplished

► GDP grew by 6.6%, exceeding 90 trillion yuan

► Consumer prices rose by 2.1%

► A basic equilibrium in the balance of payments was maintained

► A further 13.61 million new urban jobs were added, and the surveyed unemployment rate remained stable at a comparatively low level of around 5%

Economic structure was further improved

► Consumption continued to play an increasing role in driving economic growth

► The service sector’s contribution to growth approached 60%

► Growth in high-tech industries and equipment manufacturing outstripped that of other industries

► Harvest were again good

► Energy consumption per unit of GDP fell by 3.1%

New growth drivers grew rapidly

► A number of major scientific and technological innovations were made

► Emerging industries thrived and traditional industries saw faster transformation and upgrading

► Business startups and innovation continued to surge nationwide, with an average of over 18,000 new businesses opening daily and the total number of market entities passing the 100 million mark.

New progress was made in reform in key fields

► Institutional reforms of both the State Council and local governments were implemented smoothly

► The negative list system for market access was put fully into effect

► Reforms to streamline administration and delegate power, improve regulation, and upgrade services were intensified

All-round opening up was expanded

► Joint efforts to pursue the Belt and Road Initiative (BRI) made significant headway

► The negative list for foreign investment was significantly shortened

► Sectors like finance and automobiles were opened wider to foreign competition

► Import tariffs on some goods were lowered, and the overall tariff level was reduced from 9.8% to 7.5%

► China’s total volume of trade in goods exceeded 30 trillion yuan, and its utilized foreign investment totaled US$138.3 billion

Pollution prevention and control was strengthened

► PM2.5 density continued to fall

Living standards continued to improve

► Per capita disposable personal income grew by 6.5% in real terms

► The rural poor population decreased by 13.86 million, including 2.8 million people assisted through relocation from inhospitable areas

► Close to 100 million payments were made to assist students from families in financial difficulty, covering all school types

► More than 6.2 million housing units were rebuilt in rundown urban areas and 1.9 million dilapidated rural houses were renovated

► Another 4,100 kilometers of high-speed railways opened to traffic, and over 6,000 kilometers of expressways and more than 300,000 kilometers of rural roads were built or improved

Overall requirements and policy orientation of economic and social development in 2019

Main targets

► GDP growth of 6-6.5%

► Over 11 million new urban jobs, a surveyed urban, unemployment rate of around 5.5%, and a registered urban unemployment rate within 4.5%

► CPI increase of around 3%

► A basic equilibrium in the balance of payments, and stable, better-structured imports and exports

► A macro leverage ratio that is basically stable, and effective prevention and control of financial and fiscal risks

► A reduction of over 10 million in the rural poor population

► Personal income growth that is basically in step with economic growth

► A further improvement in the environment

► A drop of around 3% in energy consumption per unit of GDP

► Continued reductions in the discharge of major pollutants

Ensure that the right direction is set for the pursuit of our macro policies

Pursue a proactive fiscal policy with greater intensity and enhance its performance

► Deficit-to-GDP ratio is projected at 2.8%, a 0.2-percentage-point increase over that of last year

► The budgetary deficit is projected at 2.76 trillion yuan, with a central government deficit of 1.83 trillion yuan and a local government deficit of 0.93 trillion yuan

► Government expenditure is budgeted at over 23 trillion yuan, a 6.5% increase

► The central government’s transfer payments to local governments for equalizing access to basic public services will increase by 10.9%

Our prudent monetary policy will be eased or tightened to the right degree

► Increases in M2 money supply and aggregate financing should be in keeping with nominal GDP growth

► Ensure the valve on aggregate monetary supply is well controlled and refrain from using a deluge of stimulus policies

► Maintain reasonably sufficient liquidity

Pursue an employment-first policy

Continue to pursue supply-side structural reform as our main task

Continue the three critical battles against potential risk, poverty, and pollution

2019 Government Work Task

Continue to develop new and improved approaches to macro regulation and keep the main economic indicators within an appropriate range

► Deepen VAT reform

► Reduce enterprise contributions to social insurance schemes

► Reduce the tax burdens on and social insurance contributions of enterprises by nearly 2 trillion yuan

► Guide and support financial institutions in more inclusive financial services

► Work hard to alleviate the difficulties faced by enterprises in accessing affordable financing

► Use multiple channels to achieve stable and expanding employment

► Provide training for over 15 million people upgrading their skills or switching jobs or industries

► Expand enrollment at vocational colleges by one million

Energize market entities and improve the business environment

► Cut government approvals and improve services to create a favorable environment for investment and business startups

► Further shorten the negative list on market entry

► Encourage online approvals and services

► Use impartial regulation to promote fair competition

► Reform and improve the fair competition review and impartial regulation systems

► Carry out reforms to promote reductions in business-related charges

Continue to pursue innovation driven development and foster new growth drivers

► Transform and upgrade traditional industries

► Continue accommodative and prudential regulation

► Speed up the growth of emerging industries

► Pursue Internet Plus initiatives in all industries and sectors

► Improve the system of punitive compensation for IP infringements

► Do more to encourage startups and innovation nationwide

► Establish a science and technology innovation board that will pilot an IPO registration system

Stimulate the development of a robust domestic market and keep unlocking the potential of domestic demand

► Increase urban and rural personal incomes and boost capacity for consumption

► Use multiple avenues to increase the supply of quality products and services

► Develop elderly care, especially community elderly care services

► Invest 800 billion yuan in railway construction and 1.8 trillion yuan in road construction and waterway projects

► Include 577.6 billion yuan in the central government budget for investment, an increase of 40 billion yuan on last year

► See that policies to encourage private investment are implemented

Make solid progress in poverty alleviation and rural revitalization and move closer to completing the tasks of building a moderately prosperous society

► Intensify poverty alleviation in areas of deep poverty

► Ensure social safeguards for the most vulnerable groups

► Improve agriculture, particularly grain production

► Take solid steps to upgrade rural infrastructure

► Improve rural living environments

► Deepen comprehensive rural reforms

Promote coordinated development across regions and improve the quality of new urbanization

► Develop new policies and measures for development and opening up in the west of China

► Implement and improve reforms and innovative measures to facilitate northeast China’s full revitalization, central China’s rise, and east China’s trailblazing development

► Promote integrated development of the Beijing-Tianjin-Hebei region and green development of the Yangtze River Economic Belt

► Elevate the integrated development of the Yangtze River Delta to the status of national strategy

► Advance new urbanization

► Sustain the steady and healthy development of real estate markets

► Continue to build government subsidized housing and rebuild rundown urban areas

► Move faster to regenerate old residential areas in cities

Strengthen pollution prevention and control, enhance ecological improvement, and make big advances in green development

► Cut sulfur dioxide and nitrogen oxide emissions by 3%

► A continuous decline in PM2.5 density in key areas

► Strengthen water and soil pollution prevention and control

► Achieve a 2% drop in both chemical oxygen demand and ammonia nitrogen emissions

► Reform and find new approaches to environmental governance

► Strengthen green and environmental protection industries

► Step up efforts to protect and restore ecosystems

Deepen reforms in key sectors and speed up the improvement of market mechanisms

► Quicken state capital and SOE reforms

► Work for big improvements in the development environment for the private sector

► Promote reform efforts to clearly define the respective fiscal powers and expenditure responsibilities of central and local governments

► Promote the healthy and steady development of multi-tiered capital markets

► Strengthen monitoring, early warnings, mitigation, and control of financial risks

Promote all-round opening up and foster new strengths in international economic cooperation and competition

► Further relax controls over market access for foreign capital, shorten the negative list for foreign investment, and permit wholly foreign funded enterprises to operate in more sectors

► Strengthen efforts to protect foreign investors’ legitimate rights and interests

► Work to diversify export markets

► Expand imports

► Promote the joint pursuit of the BRI

► Promote trade and investment liberalization and facilitation

Speed up the development of social programs to better ensure and improve living standards

► Keep government budgetary spending on education above 4% of GDP

► Continue to increase basic medical insurance and serious disease insurance protection for rural and non-working urban residents

► Improve the social security system and related policies

► Continue to increase the basic retirement pension, urban and rural subsistence allowances, and special assistance

► Raise ethical standards and enrich the cultural life of our people

► Strengthen social governance and explore new ways to conduct it

 


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