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State councilor stresses importance of innovation for growth

Updated: Nov 20,2015 1:45 PM

State Councilor Yang Jing elaborated on China’s innovation-driven system in the 13th Five-Year Plan (2016-20) in an article in the People’s Daily on Nov 20.

The plan suggests establishing an innovation-driven system to ensure the market plays a decisive role in allocating resources while promoting economic transformation and upgrading and maintaining sustainable economic growth, Yang said in the article.

In order to adapt to the “New Normal” and maintain a medium-high rate of growth and move toward medium-high level development, establishing an innovation-driven system must be priority, Yang said. Such a system, Yang added, will be an impetus to generate engines to drive development, and it is also an important part of expanding reform.

To establish an innovation-driven system, the government should further streamline administration, optimize services, and set up a unified, open, competitive and orderly market system to allow the orderly movement of resources, Yang said.

He also said the government should improve the environment for enterprises.

“We should insist on a basic economic system that keeps public ownership in a dominant position and allows diverse forms of ownership to be developed side by side,” Yang wrote.

Meanwhile, Yang also emphasized that the government will further expand reforms of State-owned enterprises and capital by clearly defining their functions.

Exploring new approaches to financial regulation to prevent and diffuse financial risks, the government will channel its efforts into developing inclusive financing and ensuring equitable access to financial services for all market entities, Yang wrote.

In addition, Yang said it is important to reform and improve the income distribution system and education and training to establish the innovation-driven system.