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State Council urges expanding private investment

Updated: May 4,2016 10:06 PM

At the State Council executive meeting presided by Premier Li Keqiang on May 4, a decision was made to carry out special supervision on the private investment policy implementation and expand private investment. To accelerate the transformation and upgrading of “Made in China”, the decision was made to promote a deep integration of manufacturing industry and the internet. House leasing market will be developed to promote the new type of urbanization. The development of the aviation industry was also discussed at the meeting.

The meeting decided that private investment is the most important support for stable economic growth, structural adjustment and employment promotion. Currently, the growth rate of private investment has slowed down, so effective measures should be taken to promote related policies to be carried out. The market should be further eased and an equal business environment should be created.

The meeting decided to send special inspection groups to some regions. They will inspect the implementation of related policies encouraging private investment issued in 2014. A third-party evaluation will be carried out at the same time.

Existing problems need to be solved to improve policies. Enterprises should be respected and the entrepreneur spirit should be encouraged to stimulate the potential and innovative vitality of private investment.

The meeting pointed out that further integration of manufacturing industry and the internet is an important measure to deepen structural reform, especially supply-side structural reform. It can also help develop the new economy, and improve the quality and efficiency of “Made in China”.

Therefore, first we should support manufacturing enterprises to develop mass entrepreneurship and innovation platforms based on the internet. We should also support local governments to build demonstration areas for mass entrepreneurship and innovation based on national-level demonstration areas and development zones. The usage of big data should be expanded to promote coordinated research and development and technology spreading.

Second, develop new models, such as customized and service-oriented manufacturing, and launch pilot projects and demonstration bases for intelligent manufacturing system solutions.

Third, promote the linkup of manufacturing resources of small- and medium-sized enterprises with internet platforms and build a new integrated ecology featuring manufacturing, marketing, and logistics.

Fourth, loosen market access for new products and new types of businesses, strengthen policy support in taxation, finance and land use, encourage telecommunication companies to further increase broadband speed and reduce costs in the mass entrepreneurship and innovations bases, support financial institutions to make use of the mass entrepreneurship and innovation platform to provide one-stop and systematized financial services and improve security of the industrial information system.

The meeting said that carrying out reforms in house purchasing and renting simultaneously and developing the rental market are important parts of housing system reform. It helps to speed up the improvement of housing conditions for residents, especially new residents, and promote the process of new urbanization. Accordingly, the executing meeting issued the following instructions.

First, develop housing rental enterprises, provide support to carry out rental business on both completed houses and newly built houses, encourage individuals to rent their own houses, and permit commercial buildings to be rebuilt as rental houses in accordance with regulations.

Second, promote the monetization of public rental houses. The government offers subsidies to some citizens through market renting. All citizens who meet the conditions should be included in the subsidies, such as migrant workers with stable jobs, new graduates who just found jobs, and young doctors and teachers.

Third, improve preferential tax policies, encourage financial institutions to strengthen support and increase the supply of rental housing land.

Fourth, strengthen regulations, formulate a standard model for lease agreements, standardize intermediary services, and protect the legitimate rights of renters.

The meeting said that developing the general aviation industry is conducive to improving the overall transportation system, nurturing new economic growth points, expanding employment and promoting upgrades in the service industry. Therefore, the government has to do the following:

First, speed up building airports in remote areas, regions with inconvenient and seriously congested ground transportation, places prone to natural disasters as well as densely populated areas, and develop general aviation in main production areas for agricultural products and important State-owned forest regions, to meet the demands of rescue and relief work and industry development. Make standards for general-purpose airports and encourage enterprises and individuals to participate in the building of airports.

Second, accelerate the research and development of core equipment for general-purpose planes and develop aviation enterprises with international competitiveness; expand the use of general aviation in the fields of resource exploration, environmental monitoring, and transport service.

Third, open more low-altitude airspace and streamline approvals for aviation flight missions; strengthen safety supervision to ensure flight and air defense security.