State Council, Approval and Transmission of the «National Development and Reform Commission, Circular on the Opinion on the Major Work on Deepening the Reform of the Economic System in Year 2010»

Issued: May 27 2010

Main contents: The Opinions list the major work for deepening the reform of the economic system in 2010:

(i) Encourage, support and guide the development of the private economy: further remove obstacles in the system that constrain investments from the private sector; and promote the withdrawal of state capital from general industry sectors with competition (Article 2).
(ii) Deepen the reform of state-owned enterprises and monopolistic industries by:
(a) formulating and launching the pilot project for merging the three networks (telecommunications, radio and television, and Internet);
(b) promoting the reform of the electricity system.
(c) accelerating the reform of the corporate share system of large state-owned enterprises, especially at the level of parent companies of enterprises under the central government (Article 3).
(iii) Deepen the reform of the prices of resource-type products and charges pertaining to environmental protection (Article 4).
(iv) Deepen the reform of the fiscal and tax systems: issue the proposal for the reform of resources tax, unify the urban construction tax and education surcharge systems for domestic and foreign-invested enterprises and individuals; progressively promote the reform of real property taxes; study and implement the reform of the individual income tax system; improve the consumption tax system; and study the levy of environmental protection tax (Article 5).
(v) Deepen the reform of the financial system: revise and promulgate the General Principles for Lending; and promulgate the Measures for the Administration of Equity Investment Funds (Article 6);
(vi) Coordinate and promote urban and rural reforms (Article 7).
(vii) Deepen the reform of the social security system (Article 8).
(viii) Deepen the reform of social sectors (Article 9).
(ix) Deepen the reform of the foreign-related economic system: study and formulate the guiding opinion for accelerating the transformation of foreign trade development; and further simplify and standardise the examination and approval procedures for foreign investment; establish the system for examining the security of mergers and acquisitions by foreign investors; and formulate and promulgate the regulations for outbound investment (Article 10).
(x) Deepen the reform of the administrative system (Article 11).
(xi) Vigorously promote the pilot project of comprehensive, wide-ranging reforms (Article 12).