The central economic working conference sets the four major reforms of China

The central economic working conference stressed that we should strengthen reform in important areas and key links, and launch a number of reform initiatives with significant traction. At the same time, the meeting focused on the reform of state-owned enterprises, finance and taxation, finance and social security. So far, 2016 China's "reform panorama" was officially determined.

 

In terms of the reform of state-owned enterprises, the central economic working conference proposed to speed up the reorganization and establishment of state-owned capital investment and operation companies, which appeared in the opinions of the State Council on reforming and improving the management system of state-owned assets issued on November 4 this year. Wen Zongyu, director of the public assets Research Center of the Institute of Finance and science of the Ministry of finance, told China news agency that a major focus of the reform of state-owned enterprises We should focus on "strengthening" and get rid of the traditional thinking of "growing" enterprises through high leverage and high debt. Wen said that the reform should first push state-owned enterprises to withdraw from industries with excess capacity, and at the same time integrate advantageous resources through state-owned enterprises merger, reduce repeated investment and give full play to industrial synergy. In addition, the reform of state-owned enterprises should also strengthen the management of state-owned assets, including strengthening the audit and the investigation of the real liabilities of state-owned enterprises.

 

In the aspect of financial and tax system reform, the central economic working conference proposed that we should seize the key issues such as the division of central and local powers and expenditure responsibilities, the improvement of local tax system, the enhancement of local development capacity, and the reduction of enterprise burden. Zhang Deyong, deputy researcher of the Institute of financial and economic strategy of CASS, said that the top-level design of the financial and tax system reform has three major tasks, namely, improving the budget management system, improving the tax system and establishing a system that adapts to the power and expenditure responsibility. The latter two tasks involve complex interests, which are also the focus of the central economic working conference.

 

Zhang Deyong said that the tax system reform may become a breakthrough in the reform of the financial and tax system. "On the one hand, structural tax reduction and other measures can help enterprises reduce costs, which is a way to invigorate enterprises and stabilize the economy; on the other hand, only when the tax system is straightened out can the fiscal relations between governments be reconstructed. I think the next step is to speed up the exploration of replacing business tax with VAT in the financial service industry.

 

In the aspect of financial system reform, the meeting specially proposed to form a stock market with complete financing function, solid basic system, effective market supervision and full protection of the legitimate rights and interests of investors, and to study and put forward the reform plan of financial supervision system. Xu Hongcai, Minister of Economic Research Department of China International Economic Exchange Center, told China news agency that the goal of financial reform is to improve the effectiveness of financial services in the real economy. After this year's stock market turmoil, the proposal of financial regulatory system reform means that the importance of preventing financial risks has been enhanced.