China rolls out new measures to boost development

BEIJING: China will take solid steps in implementing the three-year action plan for SOE reform, and make more efforts to create a level playing field for private firms, the State Council’s executive meeting chaired by Premier Li Keqiang decided on Thursday.
Li stressed that SOEs should focus on their main responsibility and business, develop sound market-oriented operating mechanisms, and increase core competitiveness. At the same time, a level playing field for the private sector shall be created to boost their confidence in development.
SOEs need to make continued efforts to achieve higher quality and efficiency, sharpen core competitiveness and strengthen dynamism for sustained growth, to better their role in underpinning the national economy, according to the meeting.
“We will continue to unswervingly consolidate and develop the public sector, and unswervingly encourage, support and guide the non-public sector. The SOE reform needs to achieve higher quality and efficiency, help facilitate deeper cooperation in the industrial and supply chains and enhance SOEs’ core competitiveness,” Li said.
Solid steps will be taken in implementing the three-year action plan for SOE reform. The task of relieving SOEs of their obligation in undertaking social programs will be essentially completed this year. Greater efforts will be made in deepening the mixed-ownership reform, strengthening the modern corporate structure, and developing sound market-oriented operating mechanisms.
SOEs will be supported in enhancing basic research and innovation, advancing research on critical technologies, and vigorously promoting entrepreneurship and innovation.
The SOEs’ non-essential business will be spun off at a faster pace, to enable the SOEs to better focus on growing their main business.
The meeting also decided on further efforts to create a level-playing field for private firms, to boost employment.
Market access will continue to be broadened. Power grid operators will accelerate the spinning off of competitive operations such as equipment manufacturing. Oil and gas infrastructure will be made equally accessible to all businesses regardless of types of ownership.
Private companies will be supported in participating in the construction of major railway projects.
“We must stabilize the growth of the private sector with every possible means. The private sector has contributed over 90 percent of new jobs. It is remarkable for a country with 1.4 billion people to achieve a fairly full employment,” Li said. Key national research infrastructure will be made more accessible to the private sector. The accreditation of national-level technology centers in private companies will be accelerated. – Agencies