New development ideas highlighted in China’s 2016 government work report

Chinese Premier Li Keqiang delivers a government work report during the opening meeting of the fourth session of the 12th National People's Congress at the Great Hall of the People in Beijing, March 5, 2016. (Photo: Li Ge from People’s Daily)

This year’s government work report focuses on building China into a moderately prosperous society, new development ideas, China’s sound economic fundamentals and encourages a stronger role of the Internet in economic transformation, two officials from the State Council concluded.

Huang Shouhong, deputy director of the State Council Research Office, and Xiang Dong, department chief of the State Council Research Office made the analysis after Premier Li Keqiang delivered the report at the opening meeting of the fourth session of the 12th National People's Congress Saturday.

Focusing on building a moderately prosperous society

Xiang said that Chinese government attached great importance to the drafting of this year’s report. President Xi Jinping, for example, took time out to hold special meeting over it.

Premier Li repeatedly held seminars to solicit opinions over the report’s guiding ideas and framework. Viewpoints of businessmen, scholars and non-CPC personages were all collected in the report, he added.

The draft focuses on the theme of “building a moderately prosperous society.” To better address the public’s concerns, the report includes a specific section to illustrate the 13th Five-Year Plan, a roadmap for the nation's development from 2016 to 2020.

New development ideas, -innovative, coordinated, green, open and shared development - were applied to every item listed in the report.

Revealing sound economic fundamentals

Huang, also one of the drafters of the report, praised China’s economic growth in the past year, citing dazzling economic data and development impetus driven by optimized structure.

Last year, China’s service sector contributed to over 50 percent of the GDP for the first time, he explained.

The Chinese government has sufficient innovative policies and measures to address the economy’s downward pressures that can be swiftly applied when needed, Huang commented.

In 2015, China’s GDP grew by 6.9 percent and its GDP aggregate exceeded $10 trillion for the second consecutive year, Xiang noted, adding that in today’s world, only China and the US have reached this magnitude.

In addition, 13.12 million new jobs were created in Chinese cities last year. Surveyed unemployment rates in 36 large- and medium-sized cities stayed at 5 percent, and many plants in eastern coastal cities are facing labor shortage, Xiang stressed, refuting claims that China will be hit by economic crisis.

The fourth session of the 12th National People’s Congress kicks off on March 5 at the Great Hall of the People in Beijing. (Photo: Shi Jiaming from People’s Daily)

Encouraging stronger role of Internet in economic transformation

Xiang also addressed the importance of supply-side structural reform, explaining that China is now the biggest exporter of 287 items, yet its people still make huge amounts of overseas purchases.

“In a bid to implement the supply-side structural reform, one of the priorities of the 13th Five-Year Plan, the country needs to stimulate the market by further streamlining administration, delegating power, as well as cutting tax and fees,” he added.

The department chief also noted that against such a backdrop, the Internet could serve as a springboard for China’s economic transformation.

“Right now, any industry that claims itself as independent of the Internet is bound to be sifted out,” said the official, adding that these emerging driving forces represented by the Internet will spur continued development and upgrading.

Vowing for more monetary policies

Monetary policy is another highlight, in Xiang’s opinion. “More specific financial and taxation policies will be introduced this year,” he said.

He also believes that China’s deficit ratio still has leeway, stating that even at above 3 percent, it is relatively low compared to the rest of the world.

The government will do more to improve people’s livelihood, Xiang pointed out.

For example, more money will be granted to commercial insurance providers to help reduce the financial burdens of millions of cancer patients.

The maximum reimbursement allowance of the urban employees' basic medical insurance will be raised from 300,000 yuan ($46,110) to 400,000 yuan.