14 Sept 2016
State Council to Further Ease Investment Restrictions in Infrastructure
The meeting called for appropriate expansion in domestic demand to create a good environment for the structural reforms on the supply-side.
First, accelerate the construction of major projects of overall, fundamental and strategic significance set forth in the 13th Five-Year Plan, formulate the implementation plan for making up the deficiencies and narrowing the gap between urban and rural regions, reasonably expand effective investment, expand as soon as possible the formation of physical workload. Introducing major construction projects under three-year rolling investment plan, forming a virtuous cycle of project reserves mechanism and rolling implementation while actively resolving excess capacity and eliminating backward production capacity.
Second, advance reforms to better mobilise the initiatives of social capital. Press ahead with reforms to streamline administration, delegate more powers, improve regulation, and provide better services, concentrate efforts on drawing up government approved investment project catalogue and project approval and filing management regulations. With the exception of trans-regional, inter-basin and cross-border projects, business investment projects for which approval can be left to the market or delegated to local authorities will be allowed to do so.
Third, develop innovative financing, co-ordinate and make use of sleeping funds. Giving full play to market forces and principle of sustainability, the government provides guidance to investment and reasonably uses project funds focusing on poverty alleviation by relocation, increases investment from the budget of the central government in sectors with weak water resources and to develop urban flood control facilities. Introduce a number of projects generating cash flow, stable returns by way of public-private partnership (PPP).
Fourth, develop measures to further liberalise foreign capital utilisation, accelerate replication of experiences gained in pilot free trade zones, publish foreign investment negative lists and press ahead with policies of transferring processing trade to the central and western regions.
Fifth, introduce a reward-penalty mechanism to advance projects to shore up weak spots in the economy. Various localities and departments are to formulate timetables for carrying out major work, strengthen supervision and assessment, give incentives to pilots of major reforms innovation to encourage initiatives; those with lagging performance are to be held accountable. Solid work is called for in achieving better results with projects to shore up for the weak spots.