Xi Jinping - China's Exceptional President

Highlights of China's key meeting on 2016 economic policies

I've taken it upon myself to edit Te Pu Win's important post on the promulgation of the 2016 economic budget for China's 13th 5 Year Plan (135). These are the main points in English, as translated by Te Pu Win, of China's key meeting on 2016 economic policies

The 5 principles of action that will guide China's plans and projects.

1. Maintain Stability as general principle.

2. Ensure Accurate Targeting. In other words make sure the information is accurate and real in the various targeting processes. Herein mentioned are restructuring, modernized agriculture, wealth creation, service sectors support, upgraded CTI networks, promote innovation, increase capacity usage, assist laggard niches, increase green investments, and target the real economy.

3. In Micro-economics Promote Elasticity. Points included in this principle are: increase healthy market environment, reduce government regulations, increase business confidence, prevent regional protectionism, reduce barriers to entry, support business innovation, assist in logistics, balance production to meet consumer demand. [note especially that westerners solely promote what they call “consumerism”, where in China’s efforts, it is to promote a more efficient economic micro exchange environment]

4. Solidity Reform. By this is mention the need to increase and breadth and depth of reform. Cadres are intones to take risks, and to innovation local policies of letting go. They are reminded that their reform measures should question first of all how they can benefit the average citizen.

5. Bottom Up principle. Cadres must ensure their actions increase public service, benefit the basic needs of citizens. Cadres must reach down to the lowest level of society needs.

The 5 projects to be executed.

1. Reduce Excess Capacity. Government must speed up the process of bankruptcy cases so as to reduce idle resources. Government must step in to ensure workers are properly redeployed and assist the unemployed with livelihood support and incentives. For de-emphasized industries, government must help re-structuring or mergers to transition to better use of capacities and resources.

2. Lower Costs of Production. Systemic costs of businesses should be lowered. Release government controls and restrictive regulations. Business taxes and other charges must be reduced while delinquent taxes must be better collected. Business social insurance payments shall be reduced. Also reduce costs of electricity, logistics, and bureaucratic costs.

3. Reduce Housing Surplus. Assist citizens housing ownership by speeding up the registration and approval of migration into cities. Assist their employments in urban areas. Increase rental unit deployments, and rent-to-own programmes. Match labour and business locations by changing outdated zoning bylaws. Promote housing developers mergers and acquisitions, price reductions.

4. In Poverty Reduction, Focus on Supply Side. This is the most elaborate of the 5 project areas. 2016 will be to ensure that in all areas of the economy, measures keep the poor citizens in forward position. This section lists all major economic areas. The intent is to accurately and quickly catalog who needs help, in what locations and what industries and then to give incentives to businesses to invest in order to create jobs for these persons and locales.

5. Reduce Financial Risks. Financial promises must be kept. Local governments shall be accountable and assisted in their depth and finance portfolios. Financial industry watchdogs will be strengthened. Illegal and dangerous opportunists shall be prosecuted.