To deepen the reform of economic system, we should grasp these three key points.
Since the beginning of this year, Jingzhou City, Hubei Province has issued the "Opinions on Promoting the Rapid and Healthy Development of Small and Micro Enterprises" to improve the business environment and help enterprises solve difficulties and increase efficiency. An Bofu Electric System Co., Ltd. mainly supplies joint venture automobile brands. Thanks to the good local business environment, this year, the company has newly accepted orders for the supply of wire harnesses for several brands of cars, plug-in hybrid vehicles and other models. The picture shows workers inspecting automotive wiring harness in the company’s production workshop. Photo by Huang Zhigang (People’s Vision)
The Central Economic Work Conference proposed to deepen the reform of the economic system, including building a high-standard market system, accelerating the reform of state-owned assets and state-owned enterprises, deepening the reform of the fiscal and taxation system, and accelerating the reform of the financial system. Experts pointed out that from high-speed growth to high-quality development, China’s economy is going through a "gear-changing period". To do a good job in the economic work in 2020, we should not only take "stability" as the priority, keep the economic operation in a reasonable range, but also deepen the reform of the economic system, so as to ensure the reasonable growth of China’s existing economy and a more qualitative and steady improvement.
Building a high-standard market system
The Central Economic Work Conference proposed to speed up the construction of a high-standard market system. How to understand the high standard market system?
Hu Min, a researcher at the Central Party School (National School of Administration), said that building a modern economic system and achieving high-quality development is the strategic goal of China’s current development, which requires efforts to build an economic system with effective market mechanism, dynamic micro-subjects and moderate macro-control, and to build a high-standard market system, so as to completely get rid of the drawbacks that constrain the vitality of market subjects and hinder the full play of market and value laws, and build a more mature and stereotyped market system support for high-quality development.
Many experts pointed out that the so-called "high standards" should be based on the fairness and openness of market competition. Wei Jianing, a researcher in the Macroeconomic Research Department of the State Council Development Research Center, believes that the next step should be to promote the transformation of industrial policies and emphasize fair competition in the market, so as to promote the transformation and upgrading of industrial structure. Hu Min also stressed that only by removing all kinds of regulations and practices that hinder unified market and fair competition can we ensure equal and fair opportunities for all kinds of market players to participate in the market, which is conducive to promoting enterprises to achieve survival of the fittest.
To build a high-standard market system, we should also improve the protection system of property rights and intellectual property rights, strengthen the protection of business secrets of enterprises, promote the construction of factor market system, strengthen the basic position of competition policy, promote the development of advanced manufacturing industry, revitalize the real economy, improve the system and mechanism of scientific and technological innovation, and build a new open economic system with a higher level.
Grasp the key points and carry out reform
Petunia should lead its nose, and reform should also focus on the key points. The reform of state-owned assets and state-owned enterprises, the reform of fiscal and taxation system and the reform of financial system are regarded as the "bull nose" to deepen the reform of economic system.
— — Accelerate the reform of state-owned enterprises and promote the optimization and adjustment of the layout of state-owned capital.
State-owned enterprises have always been the "stabilizer" and "ballast stone" of the national economy. According to data from the Ministry of Finance, from January to November 2019, the total operating income of state-owned and state-controlled enterprises nationwide was 55,745.53 billion yuan, a year-on-year increase of 6.4%. Among them, the operating income of central enterprises supervised by SASAC increased by 5% year-on-year, and the profit growth rate was as high as 9%.
Feng Qiaobin, deputy director of the Macroeconomic Research Department of the State Council Development Research Center, analyzed that the next step, the reform of state-owned enterprises should accelerate the transformation from managing enterprises to managing capital on the premise of strengthening supervision and preventing loss. We should focus on enhancing the vitality of enterprises and inspiring entrepreneurs to start businesses.
— — Reform the management mode of land planning and deepen the reform of fiscal and taxation system.
Perfecting legislation, clarifying powers, reforming tax system, stabilizing tax burden, transparent budget, improving efficiency and establishing modern fiscal system are the goals of current fiscal and taxation system reform. In the next stage, Feng Qiaobin believes that on the basis of consolidating the effect of tax reduction and fee reduction, we should speed up the reform of power and expenditure responsibility, speed up the improvement of local tax system, fully implement performance budget management, and optimize the structure of fiscal expenditure.
— — Accelerate the reform of the financial system and improve the basic system of the capital market.
Recently, a number of financial reform measures have been introduced. Experts stressed that the focus of deepening financial reform is still on unblocking the transmission mechanism of monetary policy. In the coming year, large banks should continue to promote the sinking of service focus, while small and medium-sized banks should focus on their main business and effectively alleviate the financing difficulties and expensive difficulties of the majority of small and medium-sized private enterprises.
Optimizing Business Environment and Supporting Private Economy
The Central Economic Work Conference put forward that it is necessary to improve the property right system and the market-oriented allocation of factors, improve the legal environment supporting the development of the private economy, and improve the policy system for the development of small and medium-sized enterprises.
Achieving high-quality development is inseparable from the vigorous development of private enterprises and the vast number of small and medium-sized enterprises. Private economy has the characteristics of "56789" — — Contribute more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovations, more than 80% of urban employment and more than 90% of enterprises.
Since the beginning of this year, relevant favorable policies have been introduced one after another, offering "real money and silver" to private and small and medium-sized enterprises. According to China Banking and Insurance Regulatory Commission data, as of the end of the third quarter of 2019, the number of Pratt & Whitney small and micro enterprise loans with a total credit of 10 million yuan or less reached 20.864 million, an increase of 3.6316 million compared with the beginning of the year; The loan balance of small and micro enterprises nationwide was 36.39 trillion yuan, of which the loan balance of inclusive small and micro enterprises with a total credit of 10 million yuan or less was 11.31 trillion yuan, an increase of 20.81% over the beginning of the year.
However, the improvement of the operating environment and financing environment of private and small and medium-sized enterprises was not achieved in a day, and efforts will be made again in 2020. Recently, in order to further improve the business environment, the Central Committee of the Communist Party of China and the State Council issued Opinions on Creating a Better Development Environment to Support the Reform and Development of Private Enterprises. The Opinions clarify that market access will be greatly relaxed in infrastructure, social undertakings, financial services and other fields, and barriers such as "glass doors" and "spring doors" will be broken to create a more level playing field. In addition, we should improve the direct financing support system for private enterprises, protect the property rights of private enterprises and the legitimate rights and interests of private entrepreneurs, and provide institutional guarantee for the development of private economy.