China aims for mature free trade port system in Hainan
BEIJING ¡ª China is aiming to make the free trade port system
and operational mode of Hainan ¡°more mature¡± by 2035,
according to a document unveiled on April 14.
A free trade port system will be ¡°basically established¡± in
Hainan by 2025, according to the guidelines on supporting
Hainan¡¯s efforts to deepen reform and opening up jointly
released by the Central Committee of the Communist Party of
China (CPC) and the State Council.
China will also set up an investment fund to support
Hainan¡¯s development of a free trade port.
A free trade port is the world¡¯s most open form of economic
zone, which has brought prosperity to places like Singapore
and Hong Kong thanks to its broad-based preferential
policies on trade and investment.
President Xi Jinping on April 13 announced a decision by the
CPC Central Committee to support building Hainan into a
pilot free trade zone and gradually and steadily into a free
trade port with Chinese characteristics.
China welcomes investors worldwide to invest and start
business in Hainan and participate in the building of a free
trade port there, Xi said at a celebration marking the 30th
anniversary of the establishment of Hainan province and the
Hainan Special Economic Zone.
China will support the ¡°all-round participation¡± of foreign
firms in the development of the Hainan free trade port, and
multinational companies are encouraged to set up
international and regional headquarters there, according to
the document. (April 17,2018)
China steps toward intelligent manufacturing
Under the theme ¡°An Open and Innovative Asia for a World of
Greater Prosperity¡±, the Boao Forum 2018 opens this weekend
in South China¡¯s tropical Hainan province. In recent years,
Chinese companies have been shifting toward innovation and
exporting high-quality products that meet the rigorous
standards and expectations of global consumers. The
development of artificial intelligence (AI) and robots
signals a dramatic change in the manufacturing sector.
Athletes weren¡¯t the only attraction at the 2018 Winter
Olympics, 24 robots danced to the rhythm during China¡¯s
eight-minute show at the closing ceremony, causing a
sensation in the world of robotics. Head of the design crew,
Zhang Lei, once thought his brief was mission impossible.
¡°The organizing committee and my team were completely
stunned when the director of the eight-minute show revealed
the maneuvers he wanted the robots to perform. We had only
two to three months to prepare everything from scratch,¡±
said Zhang Lei, the head of the design crew from Siasun
Robot & Automation Co Ltd.
The eight minutes in Pyeongchang showcased how much China¡¯s
intelligent manufacturing has progressed in recent years. In
Northeast China¡¯s Shenyang, a city that boasts the country¡¯s
largest robot production base, more of its products are
being deployed to the service sector. While these robots are
mainly having a positive impact, in the reception of one
local electricity center, the manager points out some areas
where there¡¯s still room for improvement.
¡°Sometimes, the robot gets confused in noisy surroundings.
It can mix up the orders of different people. Other than
that, it is doing well, considering the service requirements
and the amount of information it provides to the customers,¡±
Ju Shibo told CGTN.
How do you determine how advanced a country is when it comes
One measure is ¡°robot density,¡± which shows the number of
robots per 10,000 workers. Robots are at the core of the
government¡¯s sweeping ¡°Made in China 2025¡± plan to upgrade
factories and make them highly automated. The country wants
to reach a robot density of 150 units by 2020.
The increase in robot density in China is the most dynamic
in the world, particularly between 2013 and 2016. The
density rate rose from 25 units in 2013 to 68 units in 2016.
Beijing intends to forge ahead and get China into the
world¡¯s top ten automated nations in just two years.
¡°It¡¯s a realistic target, as labor costs are rising in
China, pushing up the cost of manufacturing. Also,
production techniques for robots continue to improve, which
in turn makes the robots more cost-effective,¡± said Wang
Kecheng, a manager of the company.
The ¡°Made in China 2025¡± plan aims to move the country¡¯s
manufacturing sector up the value chain, but some argue the
level of automation required is several steps ahead of
China¡¯s current level. If domestic robot manufacturers hope
to fill the gap, they will no doubt face fierce global
Hainan given green light for medical tourism
The State Council decided to suspend implementation of
item 2, article 11 of Regulations for the Supervision and
Administration of Medical Devices in the Hainan Boao Lecheng
International Medical Tourism Pilot Zone, as a move to
support Hainan¡¯s international medical tourism industries.
According to the decision, if there is an urgent need in the
pilot zone for certain medical devices not legitimately
available in China, the Hainan provincial government can
authorize the imports but those devices must be used in
The State Council urges the State Drug Administration,
Hainan provincial government and other relative departments
to stipulate specific regulations on approval conditions and
processes for importing medical devices.
State Council releases regulation on scientific data
On April 2, the State Council issued a regulation on the
management of scientific data involved in natural science,
engineering and technology, and other science fields.
According to the regulation, research institutions and
scientific data producers should collect scientific data and
build a database and data quality control system based on
Central and local authorities should establish rules and
regulations while implementing national scientific data
policies. Scientific data centers should be set up by
qualified institutions and supervised by authorities, and
will be responsible for the collection, classification,
processing and analysis of data.
If data produced in government-funded research are used to
write papers and for publication in foreign academic
journals, they should be reported to related scientific data
centers before being published.
The data produced in the research projects funded by private
capital, if involving state secrets, national security and
the public interest, also should be reported.
Data produced through government funding should be open to
the public, except that which involves state secrets,
national security, the public interest, commercial secrets
and individual privacy.
Users of scientific data must abide by regulations on
intellectual property rights and give credit to the
producers of the data.
Authorities and research institutions should strengthen full
life circle security management on scientific data, such as
the authorization and authentication for downloading data.
(April 3,2018) from:english.gov.cn
China¡¯s new tax cuts to benefit real economy
BEIJING ¡ª China¡¯s new value-added tax (VAT) reform
measures are expected to reduce the burden on a range of
sectors in the real economy, analysts said.
China will cut VAT rates as part of a tax reduction package
amounting to 400 billion yuan (about $63.6 billion) this
year, according to a decision made at a State Council
executive meeting on March 28.
Starting from May 1, the tax rate will be lowered from 17
percent to 16 percent for manufacturing and some other
industries, and from 11 percent to 10 percent for
transportation, construction, basic telecommunication
services, and farm produce.
While it will be only a one percentage point cut in each tax
bracket, the reduction will impact a wide range of sectors
in the real economy, according to Li Xuhong, a researcher
with Beijing National Accounting Institute, a government
It was estimated that the reduction of taxes from lower VAT
rates could reach 240 billion yuan. Li said the estimate was
rather conservative, as tax reduction in the manufacturing
sector alone could reach that amount.
VAT tax cuts in the transportation industry will lower the
logistics costs for the real economy, Li said.
Investment bank China International Capital Corporation (CICC)
estimated that firms in the two tax brackets will see their
VAT tax burden decline by 6 percent and 9 percent,
¡°We believe that lower VAT rates will help reduce the prices
of products and services in a number of competitive sectors,
benefiting households and other sectors,¡± CICC said in a
In addition to the VAT rates cut, the reform also offers tax
incentives for some high-tech companies, a measure that
analysts said is aimed at supporting innovation-driven
Eligible enterprises in advanced manufacturing, modern
services, and electric utilities will receive a lump-sum
refund for their input VAT payments yet to be deducted.
The measure will have a ¡°far-reaching impact,¡± said Li, as
it could free capital previously frozen on companies¡¯
However, successful implementation of the refund policy
depends on advanced tax collection measures and the overall
level of honesty of taxpayers across society, Li noted.
The reform also includes measures to unify the standard for
small-scale taxpayers, as it raises the threshold of taxable
annual sales volume for industrial and commercial
enterprises from 500,000 yuan and 800,000 yuan, to 5 million
¡°Raising the revenue ceiling to 5 million yuan for
industrial and commercial sectors will help level the
playing field and support the growth of medium and small
firms in all sectors,¡± CICC said.
With all these measures, this year¡¯s VAT reform is more
intensive than last year, CICC said.
The VAT reform was first piloted in Shanghai before it was
rolled out nationwide. It has delivered a total tax cut of
2.1 trillion yuan over the past five years.
¡°We expect the reform to support China¡¯s economic growth in
not only second quarter of 2018, but also the whole year and
the first four months of 2019,¡± CICC said.
For Li, a more challenging job yet to be accomplished is to
further reduce VAT brackets from three to two. In 2017,
China streamlined its VAT brackets from four to three.
China aims to reduce taxes on businesses and individuals by
more than 800 billion yuan this year, according to a
government work report released in March.
While the VAT reform will help accomplish almost half of the
target, policies to cut the remaining 400 billion yuan of
taxes will be released soon, said Wang Jianfan, an official
with the Ministry of Finance. (April 2,2018)
China to roll out new tax cuts to fuel economic growth
China will cut the value-added tax rates as part of a
tax reduction package amounting to 400 billion yuan ($63
billion) this year to drive high-quality development, a
State Council executive meeting chaired by Premier Li
Keqiang decided on March 28.
The tax rate for manufacturing will be lowered from 17 to 16
percent, and the rate for transportation, construction,
basic telecommunication services and farm produce from 11 to
10 percent, according to a decision at the meeting.
Premier Li said that VAT reform is a major step in China¡¯s
tax regime reform.
¡°VAT reform has helped reduce the overall corporate tax
burden, and improve the tax regime. The reform has proved to
be conducive to the transformation and upgrading of the
economy, unifying the tax structure and making taxation
fairer,¡± he said.
¡°This round of tax cuts will apply to all manufacturing
companies. All businesses registered in China, be they joint
ventures or wholly foreign owned companies, will be treated
equally,¡± the Premier said.
VAT reform was first piloted in Shanghai before it was
rolled out nationwide in May 2016. It has delivered total
tax cuts of 2.1 trillion yuan over the past five years.
The services sector has expanded significantly as a result.
Its added value rose by 8 percent and accounted for 51.6
percent of GDP in 2017, according to the National Bureau of
Statistics. The reform has also boosted entrepreneurship,
innovation and the development of new industries and new
forms of business. Micro and small firms have been the
biggest beneficiaries in this process.
The Premier said in his Government Work Report earlier this
month that efforts will be made to further lighten the tax
burden on businesses. The government will reform and improve
VAT, consolidate the three tax brackets into two and adjust
tax rates, prioritize lowering rates in manufacturing and
transportation, and raise the threshold for annual sales
volume for small-scale taxpayers.
As part of the tax cut package, eligible enterprises in
advanced manufacturing, modern services and electric utility
will receive a lump-sum refund for their input VAT payments
yet to be deducted.
The meeting also decided to unify the standard for
small-scale taxpayers, raising the threshold of taxable
annual sales volume for industrial and commercial
enterprises from 500,000 yuan and 800,000 yuan to 5 million
yuan. Enterprises registered as general taxpayers will be
allowed to switch their status to small-scale taxpayers
within a given time.
All the tax cuts will take effect starting on May 1.
The Premier said that reducing the three tax rate brackets
to two in one go is a hugely challenging job, as reforms are
normally pursued in small increments. Yet this goal is not
He stressed that no industry should see its tax burden
increase in the course of VAT reform; this will be the
guiding principle of all related reform measures.
Govt issues guidelines promoting region-based tourism
The State Council has issued a guideline to promote
region-based tourism, meaning identifying a whole area as a
tourism destination, with unified planning for modern and
The circular urged advancing the ¡°tourism plus¡± program,
promoting industrial integration and exploring new functions
in region-based tourism.
The region-based tourism modes should feature diversity and
environmental protection, the circular added.
The aim is to develop an integrated, quality, regulated
tourism ecosystem that can generate maximum benefit.
The circular stressed efforts to extend tourism in other
fields and industries, including integration with urban
planning to build tourist towns and counties, with
agriculture and forestry for sightseeing agriculture and
forest parks and with technology for development of high-end
The circular also urged exploring cultural traits and
folklore in tourism areas, upgrading quality of traditional
craft art products, and bringing in new technologies for
Entrepreneurship and innovation programs were also
encouraged, and diverse investment entities will be
According to the circular, tourism areas were encouraged to
enhance service quality, build high-quality tourism brands
and introduce intelligent services such as free Wi-Fi and
online booking and payment.
In addition, public facilities should be enhanced. The
circular called for efforts to push ahead the ¡°toilet
revolution¡± and improve transportation network, consultation
service centers in traffic hubs and guideposts.
The circular also urged protecting resources and the
environment, and carrying out poverty-alleviation work by
utilizing potential in tourism resources.
The government should increase policy support in finance,
land use and talent, the circular read.(March
Yingkou port plans to invest 2.5 billion Yuan by the end of
2020 in some other countries
At present, Yingkou Port is planning to transform from
terminal operator to line integrator, through investment in
logistics nodes along the route, participation in
management, realization of key node control, and enhancement
of the overall operation effect and full service capability
of China- Europe block train ferry. By end of 2020, the
total amount of overseas investment had reached 2.5 billion
Yingkou city ranked first in processing jellyfish in
Liaoning province last year
Yingkou city has actively promoted the deep processing
industry of jellyfish, and the jellyfish brand has achieved
remarkable results. By the end of last year, the processing
volume of jellyfish in our city had reached 90,000 tons,
accounting for about 80% of the total export of processed
jellyfish throughout the whole province. Processing output
in the province ranked first.
unveils major cabinet reshuffle
BEIJING ¡ª China unveiled a major cabinet reshuffle on
March 13, to make the government better-structured, more
efficient, and service-oriented.
The institutional reform plan of the State Council was
submitted to the ongoing first session of the 13th National
People¡¯s Congress for deliberations.
State Councilor Wang Yong briefed the lawmakers on the plan.
After merging, restructuring, creating and dissolving, there
will be 26 ministries and commissions. Among the new
entities are ministries for natural resources, veterans
affairs, and emergency management.
There will also be new administrations under the State
Council, such as an international development cooperation
agency, a state immigration administration, and a banking
and insurance regulatory commission.
Compared with the current cabinet setup, the number of
ministerial-level entities is reduced by eight and that of
vice-ministerial-level entities by seven.
Wang said the reform, focusing on institutional
restructuring in key areas, would strengthen the
government¡¯s functions on economic management, market
supervision, social management, public service, and
ecological and environmental protection.
¡°It focuses on the needs of development and meets the
people¡¯s expectations,¡± Wang said, adding that the
restructuring formed part of a broader plan by the Communist
Party of China to deepen the reform of the Party and state
He said the cabinet reshuffle dealt with the institutional
obstacles to make the market play a decisive role in
resource allocation. The reshuffle will also help China
build a modern economy with high quality growth.
In a big change, a banking and insurance regulatory
commission will be formed to replace the China Banking
Regulatory Commission and the China Insurance Regulatory
The move is aimed at solving existing problems such as
unclear responsibilities, cross-regulation and absence of
supervision, Wang said.
The new body will enhance oversight of both banking and
insurance industries and be more effective to forestall
risks in the financial sector.
The international development cooperation agency, to be
formed by merging parts of the functions of the Ministry of
Foreign Affairs and the Ministry of Commerce, will ¡°give
full play to foreign aid as a key means of major-country
diplomacy,¡± Wang said.
A state immigration administration is to be set up under the
Ministry of Public Security to formulate and enforce
immigration rules, as ¡°the number of foreigners working and
living in China has been increasing, raising new
requirements on immigration administration and services,¡±
according to Wang.
People¡¯s welfare will be better protected, with the
establishment of two new ministerial departments devoted to
healthcare and veterans affairs.
The ministry of veterans affairs will protect the rights and
interests of military personnel and their families, improve
the service and management system of demobilized military
personnel, and make military service an occupation that
enjoys public respect.
If passed, the cabinet reshuffle will be the eighth such
move in more than three decades.
Cutting bureaucracy has been a common pursuit of governments
around the world. Beginning 1982, amid its reform and
opening-up push, China began downsizing the central
government about every five years.
Ma Liang, a public administration professor of Renmin
University of China, said cabinet reshuffles throughout the
years aimed to develop a sound, service-oriented
administration able to satisfy the people¡¯s needs.
indicators of Xianrendao Economic Development Zone ranked
first in Yingkou¡¯s key parks
A few days ago, Xianrendao Economic Development Zone
held a general meeting to carry out the spirit of
"optimizing the Business Environment and promoting Project
Construction" in our city.
In 2017, the work of Xianrendao Economic Development Zone
was progressing smoothly, showing a good development trend.
There were 13 projects with more than 10 million Yuan under
construction, of which 11 were more than 100 million Yuan.
The total amount of export was 778 million Yuan, the
year-on-year increase is of 61.2%, these show that the two
indicators are ranked the first in the city's key parks.
Become the strategic platform and important economic growth
pole of our city carrying major projects.
of Xianrendao Energy and Chemical Industry District rose
sharply last year
Last year, Xianrendao energy and chemical industry
district's foreign trade export reached a new high of 778
million Yuan accumulated, exceeding the annual target of 530
million Yuan, and maintaining a rapid growth rate of 61.7%
over the same period last year.(March.8,2018)
of Premier¡¯s Government Work Report
Following are the highlights of a government work report
distributed to media ahead of the annual session of the
National People¡¯s Congress (NPC) on the morning of March 5.
OVER PAST FIVE YEARS
¡ª China¡¯ s gross domestic product (GDP) has risen from 54
trillion to 82.7 trillion yuan, registering average annual
growth of 7.1 percent.
¡ª More than 68 million people have been lifted out of
¡ª Tourist departures have grown from 83 million to over 130
¡ª Both energy and water consumption per unit of GDP have
fallen more than 20 percent, the release of major pollutants
has been consistently declining, and the number of days of
heavy air pollution in key cities has fallen 50 percent.
¡ª Personal income has increased by an annual average of 7.4
percent, outpacing economic growth and creating the world¡¯s
largest middle-income group.
¡ª More than 66 million new urban jobs have been added, and
the country, with its population of over 1.3 billion, has
achieved relatively full employment.
MAJOR TARGETS FOR 2018
¡ª GDP growth of around 6.5 percent
¡ª CPI increase of around 3 percent
¡ª Over 11 million new urban jobs, the surveyed urban
unemployment rate within 5.5 percent, and the registered
urban jobless rate within 4.5 percent
¡ª Basic parity in personal income growth and economic growth
¡ª A steady rise in import and export volumes, and a basic
equilibrium in the balance of payments
¡ª A drop of at least 3 percent in energy consumption per
unit of GDP, and continued reductions in the release of
¡ª Substantive progress in supply-side structural reform,
basically stable macro leverage, and systematic and
effective prevention and control of risk
WHAT ELSE TO DO THIS YEAR
¡ª This year¡¯s deficit as a percentage of GDP is projected to
be 2.6 percent, 0.4 percentage point lower than last year.
¡ª Cut steel production capacity by around 30 million metric
tons and coal production capacity by approximately 150
million metric tons.
¡ª Reduce taxes on businesses and individuals by more than
800 billion yuan.
¡ª This year will see 732 billion yuan invested in railway
construction and around 1.8 trillion yuan invested in
highway and waterway projects; the scale of investment in
ongoing water conservancy projects will reach 1 trillion
¡ª The general manufacturing sector will be completely opened
up, and access to sectors like telecommunications, medical
services, education, elderly care, and new-energy vehicles
will be expanded.
¡ª Actively expand imports, host the first China
International Import Expo, and lower import tariffs on
automobiles, some everyday consumer goods, and so on.
¡ª Promote the peaceful growth of cross-Strait relations on
the basis of the 1992 Consensus, and advance China¡¯s
¡ª Promote coordination and cooperation among major
countries, deepen friendships and achieve common development
with our neighbors, and enhance unity and cooperation with
other developing countries.
¡ª Ensure the success of the annual conference of the Boao
Forum for Asia, the Shanghai Cooperation Organization
Summit, the Summit of the Forum on China-Africa Cooperation.(March.07,2018)
moves on trial reform of IPR cases
BEIJING ¡ª The Chinese leadership on Feb 27 unveiled
guidelines for improving the trial procedures of
intellectual property rights (IPR) cases.
Reforms are needed to improve top-level dealing with issues
concerning the long-term development of the IPR case trials,
and to adapt to changes in the international environment;
judicial protection of IPR cases must be improved, according
to a document released by the General Office of the
Communist Party of China (CPC) Central Committee and the
General Office of the State Council.
¡°An open mind is in need as reform must be made based on
China¡¯s national conditions, while respecting international
rules and learning from successful experiences of global
cases,¡± the document said.
The reform targets higher efficiency, stronger IPR
protection and better IPR case trial credibility. IPR
infringement must be effectively curbed.
The detailed measures include building a compensation system
for IPR infringement, stepping up creation of IPR courts and
intensifying construction of IPR trial talent.
In 2016, Chinese courts handled 152,072 IPR cases, up 16.8
percent year on year. Over 3,700 people were arrested and
7,000 prosecuted, according to an IPR protection white
Port Cross-Border E- Commerce Direct Mail launched
According to news on February 17th, after the first
batch of 52 cross-border e-commerce direct mail packages
transferred by sea through Yingkou port were scanned in
turn, customs were cleared successively through the
automated inspection and sorting lines. Yingkou port
cross-border e-commerce business "Direct Mail by Sea" was
officially launched. Which is to be became the second
seaborne direct mail port in Northeast China.(Feb.22,2018)
Smart: Millennials to fuel China¡¯s sharing economy
Young people in their 20s and 30s are rapidly becoming
the backbone of China¡¯s widening spending power. Known as
millennials, they are more open to new ideas and business
models. They are also expected to help shape the future of
the sharing economy.
Chinese millennials were born when China started to have
more access to global markets. They are more eager to spend
on experiences than on possessions. They share everything
from bikes and homes to clothes and power banks.
¡°This new generation of consumers looks for information on
the internet rather than in the library, and the information
comes to them. The sharing economy meets their needs and
it¡¯s very easy and very fast,¡± said venture capitalist
Besides bike sharing and apartment rentals, fashion rentals
have emerged because of the booming sharing economy. Y
Closet is a Beijing-based rental platform that doles out
women¡¯s apparel and accessories. The company targets stylish
young people with big dreams and small budgets.
¡°These young millennials do not want to follow the crowd.
They want to have their own styles. But they¡¯re usually
limited with their incomes,¡± said Doris Ke, marketing
director of Y Closet. ¡°They¡¯re actually our core customers.¡±
Y Closet completed a 50-million-dollar fundraising round
last year that was led by Alibaba, Softbank and Sequoia
Capital. Now, the company teamed up with Taobao, China¡¯s
largest e-commerce platform.
The sharing economy is booming in China. When a good idea
emerges, attention will be gathered and capital will rush
in. But many players could not even survive their very first
¡°Last year, I looked at over 200 sharing economy projects.
But to be honest, over 99 percent of them do not exist
anymore,¡± said Tan.
How to keep a new idea in sharing economy from this curse of
a short life span? Tan suggested two key elements for
success: Technology and real demand.
Millennials¡¯ flexible, minimalist and sustainable living
styles are expected to help fuel China¡¯s sharing economy in
the coming years, while block chain and the internet of
things is driving the sector in terms of technology. But
analysts say that 2018 will still be a crossroad for the
sharing economy because the new technologies still need to
Council promotes separation of business operation permits,
licenses in Shanghai
The reform of separating business operation permits from
business licenses is to be further promoted in Shanghai
Pudong New Area, according to an approval released by the
A specific work plan was also released, covering the reform
in 10 areas: business system, medicine and medical
instruments, investment and construction engineering,
transportation, permission management of pawnshops,
agriculture, medical and healthcare, quality supervision,
culture and tourism, and supervision and service.
The work plan asks related pilot work leaders to assume
responsibility, and coordinate and solve any problems.
Education and training should be enhanced for related staff
members. Policy introduction is necessary as it can help
people and enterprises get better accustomed to the changes.
Unclear work division should be avoided. Supervision and
evaluation of the pilot work should be carried out.
Successful results should be promoted and duplicated.
The work plan is aimed at effectively defining the functions
of business operation permits and business licenses,
exploring new technology, new industry, new modes and new
products, and promoting an inclusive and deliberate
It will also encourage system innovation and government
function transformation, and break the systematic barriers
restricting enterprises and individuals. Fair market
competition is promoted for a better business environment,
and help the development of new driving forces. Market
vitality and social creativity are to be fully stimulated to
spur economy development.
rural transportation network to grow stronger
Winding roads, inaccessible spots and muddy fields have
long been the most impressive memories for us traveling in
China¡¯s remote and rural areas. But that was before the 18th
Communist Party of China (CPC) National Congress, held in
Beijing in 2012. If you look at the picture of those places
now, you can see a difference and changes could be seen
Great breakthroughs have been made in transportation reform
since the 18th CPC National Congress. The Ministry of
Transport says it regards the construction of ¡°Sihao Rural
Roads¡± as an important vehicle for completing the building
of a moderately prosperous society.
Transport Minister Li Xiaopeng reported that at present, the
network of rural roads in the country has reached 3.96
million kilometers. He noted that over 99 percent of
townships and 98 percent of established villages were built
with asphalt roads and cement roads, and equipped with
buses. Poorly constructed roads are a thing of the past.
Instead, paved roads and bus services are part of the real
lives of 600 million farmers in China.
In 2017, the ministry also achieved remarkable progress in
reducing logistics costs by upgrading transport
infrastructure, improving transport services, deepening the
transport sector¡¯s reform and strengthening new growth
drivers for transport development.
Remarkable as China¡¯s achievements in transportation,
there¡¯s still much room for improvements in terms of
infrastructure construction, services and governance.
Li told the press that even though China is a major
transport country, it is only big, not strong. There¡¯s still
a long way to go before becoming a powerful transport
country. The infrastructure is not good enough, our services
cannot fully meet the needs of the people, our logistics are
not yet developed, and the costs in logistics are still
Making China a stronger country in terms of transportation
is a new goal for the government. Li said that the
authorities will try hard to build a modern transportation
system. ¡°We will build this system with open integration,
sharing governance, green wisdom, civilization and
The government plans to achieve the basic goal of becoming a
¡°strong transport country¡± from 2020 to 2035, and to
comprehensively achieve that goal from 2036.(Feb.11,2018)
of Q4 govt website inspection issued
The State Council released a circular on the results of
a nationwide inspection of government websites conducted in
the fourth quarter of 2017.
As of Dec 1, 24,820 government websites were in operation,
including 1,961 affiliated with State Council departments
and 32 provincial-level government portal websites.
The State Council¡¯s general office conducted a random
inspection of 460 websites, of which 95 percent were
qualified. It¡¯s worth noting that the websites of Beijing,
Tianjin, Hainan, and the Xinjiang Production and
Construction Corps were rated as 100 percent qualified over
four consecutive quarters.
All provincial regions and 71 departments of the State
Council selected 12,336 websites under their respective
administrations, which accounted for 50 percent of
government websites with a 96 percent total qualification
Valid messages via platforms for people to mention errors on
government websites totaled 14,208 in the fourth quarter,
among which 99 percent were answered. For 25 websites
selected from the Inner Mongolia autonomous region,
Shanghai, Hunan, the Ministry of Public Security and the
Ministry of Environmental Protection, the figure reached 100
Also during the same period, 116 officials were punished or
received warnings for running unqualified websites.
In 2017, all regions and departments had inspected 43,139
government websites at all levels. A total of 21,513
websites with poor maintenance were integrated or migrated
and 625 officials were held accountable for the substandard
Some problems surfaced in the process, such as unregulated
domain names and logos, lack of overall rectification
measures, poor interactions with netizens and insufficient
Based on the results of the inspection, the circular urged
more efforts to supervise government websites and to provide
better government services online.
Regions and departments at all levels should enhance regular
website supervision, operationalize correction measures,
better interact with netizens to address their concerns, and
improve security mechanisms to ensure government websites
are safe and reliable.
(Feb. 8,2018 )
Yingkou Municipal Government and KPMG sign Framework
Agreement on Strategic Cooperation
Yu Gongbin , mayor of Yignkou municipal government, met with
Zou Jun, chief partner of KPMG Enterprise Consulting (China)
Co., Ltd., before signing the contract.
Yesterday, Yingkou municipal government and KPMG Enterprise
Consulting (China) Co., Ltd. signed a strategic cooperation
framework agreement. The two sides will have long-term
cooperation in the field of business consulting services.
Before signing the contract, Mayor Yu Gongbin met with Zou
Jun, chief partner of KPMG Enterprise Consulting (China)
signing the contract.
Promoting the Construction of Comprehensive bonded area in
an All-round way
Yingkou held a Party-government Meeting, had a special
research on the construction and operation of Yingkou
Comprehensive Bonded Zone. Zhao Changfu and Yu Gongbin
attended the meeting and delivered speeches.(Jan.29,2018)
Government Work Report should stand for social consensus
¡°The government, whether in its policymaking or
implementation, must stand for social consensus and try its
best to enhance reasonableness and democracy in its
policies,¡± Premier Li Keqiang said Jan 24 at a symposium.
The symposium was held to solicit advice from leaders of
democratic parties and the All-China Federation of Industry
and Commerce, as well as those without party affiliation.
He acknowledged that the symposium is a significant practice
of socialist deliberative democracy and a step for the State
Council to be subject to democratic supervision.
After the guests gave their opinions and advice, the Premier
said, ¡°Your advice is very important. It can represent, to a
great extent, social consensus and the people¡¯s will. The
Government Work Report should include your feedback as much
He also appreciated the support and help from the three
groups. ¡°Over the past five years, you have conducted
research on some major issues concerning socioeconomic
development and made many insightful suggestions. I and
other members of the State Council have read them all and
forwarded them to relevant departments.¡±
Noting that this year marks the 40th anniversary of China¡¯s
reform and opening-up policy, Premier Li said that making
new accomplishments would be one of the best ways to honor
the basic State policy.
The Premier urged that more efforts should be made to
promote high-quality development and establish a modern
economic system. Practical measures should be taken to
deepen reform and opening-up, enhance creativity and
competitiveness, and ensure better lives and well-being for
He stressed that the Government Work Report should ensure
that it reflects the best common desires of the people.
Premier Li encouraged the three groups to continue playing
an active role in political consultation and democratic
oversight, to give their consistent support and help the
government meet the social development and economic growth
Made in China 2025 roadmap updated
China aims to become the world¡¯s leading manufacturer of
telecommunication, railway and electrical power equipment by
2025, as the country ramps up its implementation of the Made
in China 2025 strategy, according to a new roadmap released
on Jan 26.
Qu Xianming, an expert involved in drafting the updated
version of the Made in China 2025 technology roadmap, said
China has already made great strides in the above three
areas, but more efforts are needed to crack the bottlenecks
of key components in order to achieve global supremacy.
¡°It is not just about production capacity. Instead, we aim
to become No 1 in research and development, as well as the
application of these products,¡± said Qu, an expert with the
National Manufacturing Strategy Advisory Committee, an
organization that advises the government on plans to upgrade
the manufacturing sector.
According to Qu, home appliances, petroleum refining
equipment and construction machinery are also likely to be
added into the key areas of Made in China 2025.
¡°It is still under discussion. But if they are added to the
list, the central government will roll out measures to
assist their development,¡± Qu added.
The first version of the Made in China 2025 technology
roadmap was published in 2015. It was designed to guide
local governments and enterprises in their manufacturing
investment and other business decisions.
But the past two years have witnessed new ideas and
technologies pop up, demanding an updated technology roadmap
to reflect the new trends and problems in the manufacturing
Xin Guobin, vice-minister of industry and information
technology, said China has already become one of the world¡¯s
largest producers of more than 220 types of products.
¡°But we are still facing big challenges in producing
reliable core components, and many products are still
mid-tier to low-end. We hope the roadmap can serve as
guidance for companies to cultivate innovation and upgrade
their plants,¡± Xin said.
According to the updated roadmap, China¡¯s homegrown
robotics, high-end automation and new energy vehicles
industries are all likely to rank No 2 or No 3 globally by
But China will still lag behind some foreign countries in
the fields of semiconductors, operating systems and
industrial software at that time.
beef up quality certification system
To boost supply-side structural reform and administrative
streamlining, China is stepping up efforts to boost quality
by enhancing the quality certification system and quality
management, according to a circular recently released by the
As a basic principle, a unified and top-level plan is
required, with no possibility for industry monopoly or
market barriers. The market should play a decisive role in
supply and demand with governmental guidance.
Meanwhile, compulsory and voluntary certification should be
combined to call up efforts from all walks of life to
enhance quality management.
These efforts are aimed at building a sound quality
certification system in three to five years, with improved
quality in primary products, projects, services, consumer
goods and food, and some internally competitive brands.
International advanced quality management standards will be
adopted, such as the new ISO 9001. Companies should be
encouraged to enhance quality management using these
standards, which are to be introduced throughout the
industry and social governance.
Governments at all levels are expected to employ the quality
management system to transform their management styles with
better administration efficiency and credibility.
Efforts will be made to spread the quality certification
system to different enterprises with necessary and
compulsory certification in place for products concerning
security, health, and environment under the rules of the
World Trade Organization.
The quality of new technologies, products and business
models should be supervised in an inclusive but prudent way
in order to foster new economic drivers and bolster
Apart from the unified certification system, other redundant
certifications and related charges should be cleaned up.
Certification institutions should provide an integrated
solution from test to certification, to lower costs for
Moreover, a supervision system involving different parties
will be enhanced, and international cooperation is
encouraged for mutual recognition of quality certification.
to uproot ¡®protective umbrellas¡¯ of organized crime
¡ª A document issued on Jan 24 stressed that a campaign on
organized crime should involve fighting corruption,
including lower-level corrupt officials, and deal with
¡°protective umbrellas¡± of gang crime.
Disciplinary agencies should punish Communist Party of China
(CPC) members involved in gang crime in disciplinary
supervision and inspection, according to the document
released by the CPC Central Committee and the State Council.
The document said that disciplinary agencies and political
and legal bureaus should find and tackle the corruption
behind gang crime.
Disciplinary agencies at all levels should deal with
¡°protective umbrellas¡± and investigate no matter who is
Organized crime is deeply interwoven with corruption and
cases related to poverty reduction should be given the
highest attention. (Jan.29,2018)
China to make cities safer
BEIJING ¡ª China unveiled a guideline to push for safe
development of cities, as some major accidents in cities
caused great casualties and property loss in recent years on
The country must uphold the vision of making development
people-centered and never seek development at the cost of
safety, according to the guideline made public by the
general offices of the Communist Party of China Central
Committee and the State Council.
By 2020, China aims to achieve ¡°noticeable progress¡± in safe
urban development, and create a number of demonstration
cities in line with the objectives for becoming a moderately
prosperous society in all respects, the guideline said.
By 2035, the country should put in place an improved system
for safe urban development and create safe cities that are
in line with the requirements for basically realizing
socialist modernization, it added.
With the acceleration of China¡¯s urbanization, the
population, functions and sizes of Chinese cities have been
expanding rapidly, but safety hazards are also on the rise
as cities become more complicated.
At the end of 2016, the ratio of permanent urban residents
to total population stood at 57.35 percent, up from 52.57
percent at the end of 2012, data from the National Bureau of
The country must raise the capability of ensuring urban
safety and prevent major accidents to create a sound
environment for people¡¯s lives and work, according to the
The notion of safe development should be reflected in making
plans for cities, including those for urban social and
economic development and for disaster prevention and relief.
For residential areas, commercial areas, development zones,
industrial parks and port areas, safety must be the
prerequisite in determining their spatial layouts, the
Safety-related laws, regulations and standards should be
improved to raise the country¡¯s ability to ward off risks
and ensure the safe functioning of urban facilities, it
¡°Safety must be put in the first place in urban
infrastructure construction,¡± according to the guideline.
China should push forward the construction of
multi-functional underground pipeline corridors in an
orderly manner, and reinforce the safety supervision of the
construction and operation of transport, water, drainage,
heating, natural gas and other infrastructure projects.
China should also strengthen safety risk control by
thoroughly identifying urban safety risks, building a risk
information management platform and drawing a map for the
distribution of such risks in four tiers, with red
representing the most severe, followed by orange, yellow and
The screening and overhaul of urban safety hazards will be
standardized by further improving the mechanism for the
identification, registration and supervision of major
sources of dangers, building a database for dynamic
management and raising the online supervision capacity, the
Emergency management and rescue capabilities will be
reinforced, as the country will pursue fast, scientific and
effective rescue efforts, improve the emergency rescue
management in cities and push for information sharing and
coordination of different departments.
The guideline also detailed measures on raising the
country¡¯s safety supervision efficiency, making cities
better at ensuring safety and improving leadership and
coordination. (Jan.12,2018) from:english.gov.cn
Consumer inflation stays within target in 2017
China¡¯s consumer inflation increased by 1.6 percent last
year, lower than the yearly control target of 3 percent.
Analysts said it will moderately rise by over 2 percent this
year, but will not trigger any major monetary policy
The Consumer Price Index accelerated to 1.8 percent in
December, the National Bureau of Statistics announced on its
Weakening food prices are a major contributor to the fall in
CPI inflation last month, Sheng Guoqing, a senior
statistician of the NBS, said in a statement. Non-food price
rises are the main cause of the overall growth, he said.
Whole-year CPI growth came in at 2 percent in 2016,
according to the NBS. China set the control target of 3
percent last year.
Looking ahead, the consumer inflation rate could surge in
February, in which the Spring Festival falls, analysts said.
The seven-day holiday for the festival generally boosts
consumption and consumer prices.
Zhu Jianfang, chief economist at CITIC Securities, said CPI
growth could reach 3 percent in February and the whole-year
reading could rise to 2.5 percent this year.
Huatai Securities forecast in a research note that average
CPI growth could be around 2.5 percent this year. If
international oil prices rose to about $75 a barrel, China¡¯s
inflation could reach 3 percent, it said.
¡°The expected high CPI reading in February could have a
short-term impact on monetary policymaking and the financial
market,¡± Zhu said.
But for the whole year, moderate CPI growth will not have a
major bearing on the current monetary policy stance, said
Yan Ling, analyst with China Merchants Securities. Yan
forecast whole-year CPI growth of 2.3 percent.
Monetary policy will become neutral this year, analysts
¡°This year¡¯s (financial) regulatory focus will be on
prevention of risks and cutting leverage,¡± according to a
Haitong Securities research note.
China¡¯s Producer Price Index, which gauges factory-gate
prices and is a major indicator of business health, rose 4.9
percent from a year earlier in December, compared with 5.8
percent in November. It is the slowest growth in 13 months.
The PPI decline is attributable to the weakening price
growth in such sectors as oil and gas exploration, ferrous
and non-ferrous metals, and coal mining and washing, which
had bolstered the strong growth of PPI in previous months.
For the whole of 2017, PPI rose by 6.3 percent, compared
with a drop of 1.4 percent for 2016, reversing the trend of
continual PPI decline since 2012. (Jan.12,2018) from:english.gov.cn
China steps up taxation reform
According to the State Administration of Taxation, in
2017, taxation issues were mentioned during 24 of 34 State
Council executive meetings, including optimization of the
taxation system, tax relief, and further improvements in the
business environment. This clearly demonstrates that tax
occupies an exceedingly important place in governance.
Optimization of taxation system
Value-added tax (VAT) reform was a major concern of the
State Council in 2017, for which a succession of
arrangements were made, covering streamlining VAT rates,
formulating detailed plans, legalizing VAT reform by
abolishing business tax regulations, and introducing
regulations in environmental protection, among others.
Taxation reform injects tremendous momentum into the
development of market economy and plays a significant part
in market regulation, economic restructuring, and the
upgrading of drivers, said Yue Shumin, a professor at the
School of Finance of Renmin University.
Tax relief is also a task of great importance, a key vehicle
for a slew of economic policies, including mass
entrepreneurship and innovation, sharing economy
facilitation, and Made in China 2025.
The implementation work of tax cuts, based on actual
conditions, was fulfilled by taxation authorities at all
levels, bolstering economic restructuring and safeguarding
people¡¯s well-being, said Yang Zhiyong, a researcher at the
National Academy of Economic Strategy of the Chinese Academy
of Social Sciences.
Further improvements in business environment
Streamlining multiple certificates into one has been in full
swing since April, for which the State Council stepped up
related legalization and policies in a bid to uphold
fairness and equity in the business environment.
In addition, taxation reform also acts as a capable driver,
highlighting streamlining administration and delegating
power while improving regulation, and enhancing public
services. This will boost the construction of an
internationalized and market-driven business environment
that is fully regulated by the law, said Li Wanfu, head of
the tax administration¡¯s Taxation Research Center.
(Jan.11,2018) from: english.gov.cn
Laws and regulations for FTZs to be temporarily adjusted
The State Council has decided to adjust some laws and
regulations adapted to China¡¯s Free Trade Zones (FTZs), in a
bid to better implement the opening-up and reform policies
in the zones.
Eleven administrative regulations, including the ship
registration rules, two State Council circulars on domestic
urban rail transit equipment and city rapid rail transit and
another two documents on industries for foreign investment
and foreign investment in aviation industry, will be
temporarily adjusted in the FTZs, according to the State
It also urged related departments and governments of the 11
provincial regions where the free trade zones are
established, such as Shanghai Municipality, Fujian, Zhejiang
and Henan provinces, to adjust local related laws and
regulations to adapt to the changes made by the central
President Xi delivers New Year speech vowing resolute reform
President Xi Jinping delivers a New Year speech to
extend New Year greetings to all Chinese, and best wishes to
friends all over the world, in Beijing, capital of China,
Dec 31, 2017.[Photo/Xinhua]
BEIJING ¡ª President Xi Jinping delivered a New Year speech
on Dec 31, vowing that China would resolutely carry out
reform in 2018.
¡°We will take the opportunity of celebrating the 40th
anniversary of the reform and opening-up in 2018 to further
carry out reform, as reform and opening-up is the path we
must take to make progress in contemporary China and to
realize the Chinese dream,¡± Xi said.
He cited a Chinese adage, saying that the Chinese people
would ¡°cut paths through mountains, and build bridges across
rivers¡± to move forward on reform.
He extended New Year greetings to all Chinese, and best
wishes to friends all over the world.
Xi said the year 2018 marked the first year of fully
implementing ¡°the spirit of the 19th National Congress of
the Communist Party of China,¡± which outlines China¡¯s
desired development blueprint over the next three decades.
¡°Building a high-rise begins with mounds of soil,¡± Xi said,
borrowing an ancient Chinese phrase to urge his fellow
Chinese to take a step-by-step approach and work hard to
turn the blueprint into a reality.
Xi said that by 2020 all rural residents living below the
current poverty line should have been lifted out of poverty.
It will be the first time in China¡¯s thousands of years of
history that extreme poverty is eliminated.
¡°It is our solemn promise,¡± Xi said. ¡°Only three years are
left to 2020. Every one of us must be called to action, do
our best, take targeted measures to secure victories one
¡°This is a great cause, important to both the Chinese nation
and humanity. Let¡¯s do it together and make it happen,¡± he
Xi said China¡¯s great achievement of development was made by
the people and for the people, and that among the people¡¯s
most pressing concerns were education, employment, income,
social security, healthcare, elderly care, housing and
The President admitted that there were areas where the
government¡¯s work fell short of expectations. Though
progress has been made, he said, issues of public concern
¡°That is why we should strengthen our sense of
responsibility, and do a good job of ensuring the people¡¯s
well-being,¡± Xi said. ¡°The well-being of our people is the
Party and the government¡¯s greatest political achievement.
Our cadres should put the people¡¯s state of living at the
heart, and help them live a better life.¡±
On international affairs, Xi said the world expected to hear
China¡¯s stance and attitude on issues concerning peace and
¡°As a responsible major country, China has something to
say,¡± Xi said.
¡°China will resolutely uphold the authority and status of
the United Nations, actively fulfill China¡¯s international
obligations and duties, remain firmly committed to China¡¯s
pledges to tackle climate change, actively push for the Belt
and Road Initiative, and always be a builder of world peace,
contributor of global development and keeper of
international order,¡± he said. ¡°The Chinese people are ready
to chart out a more prosperous and peaceful future for
humanity, with people from other countries.¡±
Economy to remain stable through 2018
China¡¯s economic growth results are expected to remain
stable not only in 2017 economic reports yet to be released
but also in 2018, despite a slight decline in a major index
measuring the expansion of the manufacturing sector in
December, analysts said.
While there is some variation in the forecast, analysts said
the country¡¯s GDP growth may register up to 6.9 percent for
The official manufacturing purchasing managers index,
released on Dec 31, dropped to 51.6 in December, compared
with 51.8 in November, according to the National Bureau of
Still, the index remained comfortably above the 50-point
mark that separates growth from contraction, with numbers
above 50 indicating expansion.
¡°The manufacturing sector is stable and improving, a trend
that has become more entrenched,¡± Zhao Qinghe, a senior NBS
statistician, said in a statement.
The annual average reading of the index for 2017 was 51.6,
which is 1.3 points higher than in 2016.
¡°The December reading dropped a little bit, but it still
reached the annual average level, indicating that expansion
of the manufacturing sector remains strong,¡± Zhao said.
As seen in PMI changes in 2017, the trend of an improving
economy has become more obvious, said Chen Zhongtao, an
analyst at China Logistics Information Center.
¡°The PMI has remained above 51 and even exceeded 52 in
September. The overall trend is stable, with only small
monthly fluctuations,¡± he said.
Based on the average monthly reading of PMI, Chen said
China¡¯s GDP growth could reach about 6.9 percent in 2017.
Growth in the fourth quarter could reach 6.7 percent and the
whole-year growth could be 6.8 percent, said Li Chao, an
analyst at Huatai Securities.
China achieved GDP growth of 6.9 percent for the first
three-quarters. Analysts generally predicted that growth
could dip in the fourth quarter as the effect of
environmental protection measures and slowing property sales
Growth in China¡¯s services industry picked up in December,
an official survey showed on Dec 31, as the sector continued
to show solid expansion.
NBS also said that China¡¯s official nonmanufacturing PMI
rose to 55 in December, up from 54.8 in November.
The services sector accounts for over half of China¡¯s
economic growth, and analysts said the strong
nonmanufacturing sector expansion, together with the
manufacturing expansion, will contribute to the stable GDP
growth this year.
The nonmanufacturing index reading has remained above 54 in
2017 except in August.
Qu Qing, an analyst at Hua Chuang Securities, said the
construction sector has helped bolster the index, indicating
that infrastructure investment remains stable, which will
help boost overall economic growth in 2018.
Despite its stable economic growth trend, China also faces
some challenges, such as an increase in raw materials prices
and rising corporate costs, said Chen of China Logistics