How To Implement Supply Side Structural Reform In 13Th Five-Year?

The China Development Summit hosted by the State Council Development Research Center will be held in Beijing on 20 2016.

Leaders from various departments such as the central bank, the national development and Reform Commission and the Ministry of Finance attended and delivered speeches.

Reporters learned that "

"During the period, how to implement the structural reform of the supply side," experts attending the meeting said, "the three tasks of" one go, one reduction and one subsidy "is still the five major task.

Policy is indispensable.

In sound finance

In terms of system, we will vigorously develop the capital market, reduce the dependence of enterprises on leveraged levers, and strengthen supervision and risk prevention. In terms of fiscal reform, we will mainly reform the budget management system, reform the tax system, and divide the responsibilities of the central and local governments.

Route to promote structural adjustment with reform

Many experts believe that to promote the economic and social development during the "13th Five-Year" period, we should take the structural reform of supply side as the main line, grasp the five tasks of capacity production, inventory elimination, deleveraging, cost reduction and compensation, and strive to improve the quality and efficiency of the supply system. At the same time, we should launch a policy that is compatible with the structural reform of the supply side.

Xu Shaoshi, director of the national development and Reform Commission, gave specific directions for future policies.

He said that in order to ensure that the economic growth rate is above 6.5%, the innovation will continuously improve macro regulation and control, strengthen the prediction, monitoring and early warning of the economic trend, strengthen coordination and coordination of fiscal policy, monetary policy, industrial policy, regional policy, investment policy, consumer policy and price policy, and further strengthen directional control and camera control on the basis of regional regulation, so as to create a stable macro environment for structural reform.

"We will strive to break the inertia of thinking and path dependence, and promote structural adjustment through reform."

Xu Shaoshi said that in promoting consumption upgrading, we should vigorously cultivate and expand the consumption hotspots in housing, automobile, information, tourism, health, pension, culture, environmental protection and other aspects, and promote new consumption, lead new supply, and form new impetus.

We should also focus on expanding effective investment, increasing investment in public goods and public services, and launching a number of new major investment projects. At the same time, we encourage private investment and foreign investment to participate in these major investment projects, focus on structural adjustment and compensation, and cultivate new kinetic energy.

In terms of decentralization, Xu Shaoshi said he would continue to promote decentralization, decentralization, and optimization of services.

We need to establish a government's full responsibility list and a negative list of market access, minimize the scope of government approval, and better play the role of the online approval and supervision platform for investment projects, the national credit information sharing platform, the public resource trading platform and the 12358 price monitoring platform.

In terms of new urbanization, Xu Shaoshi revealed that by 2020, the urbanization rate of permanent residents and registered permanent residence population should be increased to 60% and 45% respectively.

Taking the "one belt and one way" strategy, the coordinated development of Beijing, Tianjin and Hebei, and the development of the Yangtze River economic belt as the guide, the vertical horizontal economic axis, which is mainly composed of coastal, along the river and along the economic belt, forms a new pattern of regional coordinated development.

And the future international capacity and equipment manufacturing cooperation will focus on steel, railway, power and other industries.

Xu Shaoshi revealed that overseas investment, project contracting, technical cooperation and equipment export will be adopted to expand multilateral and bilateral capacity cooperation mechanisms.

The government will work together with multinational companies to develop the third party market.

The management system of "national treatment plus negative list before admission" is fully implemented for foreign capital.

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Upgrading and promoting financial reform to reduce enterprise leverage dependence

In the eyes of York University professor Nobel and Michael Spencer Laureate in economics, the major reforms in the next five to ten years are on the supply side.

In China, in particular, it is necessary to create a system of cooperation between the public and private sectors to encourage high return on investment. Therefore, the reform of the financial system is also necessary.

In response to the financial reform during the "13th Five-Year" period, Zhou Xiaochuan, governor of the people's Bank of China, gave specific directions.

He said that an important part of improving the financial market system is to make the capital market develop healthily. There is still much room for the development of China's capital market. In addition to the demand for capital market financing and the improvement of corporate governance, we should also take into account the high leverage ratio in our economy, especially the proportion of corporate sector lending to GDP.

Turning to the reform of interest rate and exchange rate mechanism, Zhou Xiaochuan said that the marketization of interest rate has made decisive progress. It should be said that it was basically completed before the end of last year. That is to say, interest rate control, whether it is loans or deposits, has been abolished, and the financial institutions have the power to decide interest rates independently.

However, the central bank's interest rate guidance and sound pmission mechanism need to be perfected. Interest rate formation mechanism also needs a process of running in and improving.

Juergen Fischen, joint CEO of Deutsche Bank Group, also believes that the most important priority of China's financial reform in the future is to develop an effective interest rate market. To develop a perfect interest rate market, four core issues need to be solved. One is to set up a new policy interest rate target, that is, overnight interest rate or 7 day repo rate; two, to develop a market-oriented interest rate system so as to ensure the pmission of monetary policy; three, to improve monetary policy tools to guide medium and long-term interest rates; four, to improve the effectiveness and pparency of credit risk pricing.

With the continuous advance of China's financial reform, experts attending the meeting pointed out that attention should also be paid to strengthening financial supervision and preventing financial risks.

Zhou Xiaochuan also emphasized the strengthening of the financial macro Prudential management system, the establishment of a monetary management system that coordinates monetary policy and prudent management, and the improvement of regulatory rules in line with China's national conditions and international standards.

Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission, said that China's financial industry has entered a stage of primary mixed operation. The possibility of financial risks spreading across industries and across the market is increasing. At the same time, the risk of illegal social financing activities with high returns as bait may also spread to the banking system.

However, China's financial risks are controllable and will not lead to systemic risks, nor will it lead to regional and global financial risks.

Jergen Fischen believes that with the advent of more mixed financial products, the current regulatory framework according to the industry has generated great policy arbitrage space.

China's financial regulatory framework needs to be upgraded, especially in the context of strengthening inter agency cooperation under the current framework.

Reducing the burden of carrying out the reform of the fiscal and tax system and supporting the real economy

It is worth mentioning that, as for the burden reduction of the real economy, the reporter has learned that this year we should comprehensively implement the business pformation and increase the abolition of government funds violated by regulations, stop and collect a number of government funds, expand the scope of exemption for water conservancy construction funds, and extend the scope of exemption from 18 administrative administrative charges to all enterprises and individuals from small enterprises. The implementation of these policies will reduce the burden of enterprises and individuals by about 500000000000 Yuan before the reform.

The process relies on fiscal and taxation reform.

In the "13th Five-Year" process, fiscal reform is undoubtedly a key part of China's overall economic reform.

In response, Lou Jiwei, Minister of finance, said that the reform included budget management system reform, tax system reform, division of responsibilities between central authorities and local governments, and expenditure responsibilities.

Take the camp to increase as an example, Lou Jiwei said that in May 1st this year, we should complete the pilot project of pforming business tax into VAT in a comprehensive way, that is to say, all construction, real estate, finance and life service industries are changed from business tax to value-added tax.

"On this basis, the bill of value added tax will be formulated according to the principle of tax revenue, and the business tax will be abolished."

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In addition, for the reform of personal tax, Lou Jiwei said that the plan of individual tax reform should be submitted to the State Council for approval, and the relevant legal bills should be formulated on the basis of it. At the same time, the NPC Standing Committee should also be submitted to amend the legislation. These procedures must be completed step by step.

He said that the progressive taxation system implemented in China is extremely unreasonable, and few countries in the world still carry out classified income tax.

China has formulated a tax reform plan which combines the classification and collection to the integration and classification. It will consider the necessary basic deduction, maintenance deduction, maintenance deduction and livelihood deduction, so as to change the practice of excessive progressive income only at this stage.

In addition, Lou Jiwei pointed out that there are many drawbacks in the "linked matters" and caused a lot of capital to be left idle, because the linked matters are not practical.

He said that the so-called linked matters refer to the "key expenditure is related to the financial revenue and expenditure or the scale of GDP".

He pointed out that the linkage matters are inconsistent with the flexibility requirements of total demand management, and are contrary to the new regulation of the budget law, which is contrary to the reality of the grass-roots level, which is not conducive to saving capital, the effectiveness of expenditure is difficult to raise and the funds are obviously fragmented.

"Through the division of responsibilities and responsibilities, redesigning the contents of special pfer payments is the direction of the reform of the central and local fiscal and taxation management."

Lou Jiwei said, in this way, China's finance will be more realistic, and our finance will be able to do counter cyclical adjustment or there will be more room for countercyclical regulation.