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China to improve market-based allocation of production factors

Updated: Jan 06,2022 16:28

The State Council approved a plan to implement pilot comprehensive reform of market-based allocation of production factors, according to a circular released on Jan 6.

Considering the implementation of major national strategies, the trial should give priority to urban clusters, metropolitan areas or key cities with urgent reform demands, good fundamentals, and great development potential. The trials will stay valid from 2021 to 2025.

The plan sets a target that by 2025, the trials will be basically accomplished, and the reform of market-based allocation of factors will obtain landmark achievements to set an exemplar for optimization of the national system.

According to the plan, efforts should be made toward a more efficient allocation of land factors, supporting the exploration of land management system reform, optimizing the supply modes of land for industrial use, and pushing forward the utilization of marine resources in a reasonable and orderly manner.

The plan also urges reasonable, unimpeded, and orderly circulation of labor factors, further reform of the household registration system, more free-flowing channels for talents, and stronger incentives for innovation and entrepreneurship.

The plan will also support capital factors serving the development of the real economy, adding effective financial service supplies, and improving regional financial supervision and risk management systems.

In addition, the plan calls for promoting the transition from technical factors to practical productivity.