BEIJING -- Following is the full text of the Report on the Implementation of the 2014 Plan for National Economic and Social Development and on the 2015 Draft Plan for National Economic and Social Development, which was submitted on March 5, 2015 for review at the Third Session of the 12th National People's Congress and was adopted on March 15.
REPORT ON THE IMPLEMENTATION OF THE 2014 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2015 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT
Third Session of the Twelfth National People's Congress
March 5, 2015
National Development and Reform Commission
Fellow Deputies,
The National Development and Reform Commission has been entrusted by the State Council to submit this report on the implementation of the 2014 plan and on the 2015 draft plan for national economic and social development to the Third Session of the Twelfth National People's Congress (NPC) for your deliberation and for comments from the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).
I. Implementation of the 2014 Plan for National Economic and Social Development
Last year, in the face of a complex and volatile environment abroad and arduous and formidable tasks involving reform, development, and stability at home, all regions and government departments, under the correct leadership of the Central Committee of the Communist Party of China (CPC) and the State Council, adhered to the general work guideline of making progress while ensuring stability; followed a general philosophy of keeping macro policies stable, making micro policies flexible, and meeting basic needs through social policies; and made coordinated efforts to ensure steady growth, advance reform, make structural adjustments, improve the standard of living, and guard against risks. We earnestly implemented the 2014 Plan for National Economic and Social Development approved at the Second Session of the Twelfth NPC, carried out our tasks in a sure and steadfast fashion, and achieved good results in all respects. Overall, we sustained steady economic and social development under a new normal and successfully implemented the plan for 2014.
1. We strengthened and improved macro-control and ensured steady economic performance.
We created new and improved ways of carrying out regulation at the macro level, took more targeted measures and enhanced structural adjustments on the basis of range-based regulation, and ensured that the economy performed within an appropriate range.
1) The economy grew steadily.
Fully leveraging the fundamental role of consumption in driving economic growth, we implemented a comprehensive range of policies aimed at boosting consumer spending. Total retail sales of consumer goods for the year rose by 12% and consumption in information, elderly care, health, and other service sectors grew rapidly. Making good use of the key role of investment, we launched major projects in ecological conservation and environmental protection, clean energy, agriculture, and water conservancy, and made innovations in the mechanisms for investment and financing in key areas. Total fixed-asset investment for the year rose by 15.3%, of which 64.1% came from nongovernmental sources (excluding rural households). Giving play to the supporting role of exports, we worked hard to stabilize exports while increasing imports. The total volume of US dollar-denominated imports and exports for the year rose by 3.4%, and our international market share continued to rise. Final consumption, capital formation, and net exports were responsible for 51.2%, 48.5%, and 0.3% of economic growth, respectively. The gross domestic product (GDP) reached 63.6 trillion yuan, an increase of 7.4% over the previous year.
2) The employment situation remained stable.
We continued to implement a more proactive employment policy, relying on reform, economic growth, and sound policy measures to create and secure jobs. A particular emphasis was placed on supporting university and college graduates in finding jobs or starting their own businesses, and on providing job seeking assistance for urban residents who are unemployed or having difficulty finding jobs. An additional 13.22 million urban jobs were created throughout the year. The registered urban unemployment rate stood at 4.09% at the end of 2014.
3) Price growth slowed.
The consumer price index (CPI) rose by 2% for the whole year. We tightened oversight over market prices and stepped up efforts to counter monopolistic pricing, dealing with 25,000 cases of pricing irregularities and imposing economic penalties of 4.47 billion yuan. We abolished a host of unreasonable charges and fees levied by banks and other financial institutions, saving enterprises more than 40 billion yuan.
4) Fiscal and financial risks remained at a controllable level.
We strengthened and standardized the management of local government debt, reviewed and screened outstanding debts, launched trials for local governments to issue their own bonds and repay their own debts, and strengthened risk assessment and early warning initiatives. Focusing on industries with overcapacity, local government debt, informal credit, and Internet banking, we intensified efforts to monitor, assess, and identify risks with a view to preventing regional and systemic financial risks. In response to fluctuations in the real estate market, we promptly adjusted and improved housing-related financial policies and improved related financial services.
2. We comprehensively deepened reform and opening up and greatly invigorated the market.
We continued to carry out a range of reforms related to government review and approval, fiscal and tax systems, banking, investment, and pricing. We also increased the pace of reform in education as well as medical and healthcare services. These initiatives enabled us to inject new vitality and impetus into economic and social development.
1) The reform of the government review and approval system was continued.
Focusing on investment, production, and business operation, we canceled or delegated to lower-level governments the process of government review and approval for 246 items, achieving ahead of schedule the goal of cutting the number of items requiring government review and approval by one third. In addition, we pushed forward comprehensive reforms in the business system, and the number of newly registered market entities for the year totaled 12.93 million.
2) Fiscal, tax, and financial reforms were actively pushed forward.
We formulated and implemented an overall plan for deepening fiscal and tax structural reforms. We extended the trials of replacing business tax with VAT to the railway transportation, postal, and telecommunications services industries, and replaced the quantity-based resource tax on coal with a price-based one. We introduced new measures on the procurement of services by the government. We raised the upper limit on the floating range for deposit interest rates and reduced maturity brackets. We also widened the floating range of the RMB exchange rate, allowing it to float more freely. We methodically approached the lifting of restrictions on the establishment of financial institutions, and approved the establishment of five private banks. The trial-run of the Shanghai and Hong Kong Stock Connect was officially launched. The scale of RMB settlement in cross-border trade and investment increased.
3) Breakthroughs were made in the reform of the investment system.
Major steps were taken to reform the system for the review and approval of investment projects. Further revisions were made to the list of investment projects requiring government review and approval. The number of projects requiring approval at the ministerial level was cut by 76% over the past two years. The system of mandatory government review for all overseas-funded projects was replaced with a reporting-based system under which government review is only required in a limited number of cases. More than 95% of cases were only required to report to the government. With the exception of cases involving sensitive countries, regions, and industries, the requirement that overseas investment projects must be reviewed and approved by the government was replaced with new requirements under which projects only need to be reported online. The number of projects that required government review and approval accounted for less than 2% of the total. A work plan was introduced for reducing the number of items requiring government review and approval, regulating intermediary services for investment projects, and reviewing and approving enterprises' investment projects online. Guidelines were formulated and implemented for revamping the systems of investment and financing in key sectors and encouraging nongovernmental investment. Positive headway was made in the reform of the investment and financing system for railways.
4) Pricing reform was intensified.
We lifted price controls over more than 700 low-priced medicines covered by medical insurance as well as 50 goods and services in other sectors, such as medical services provided by non-public medical institutions and telecommunications services. Railway freight transport prices were changed from being set by the government to being guided by the government and a ceiling was imposed. Unified national railway freight transport prices were raised once again. Benchmark passenger transport prices on domestic air lines were changed from being reviewed and approved by the government to being determined by airline companies in accordance with state pricing rules. We launched pilot projects of guaranteed base prices for cotton produced in Xinjiang and soybeans in northeast China and Inner Mongolia. We carried out trial reforms for the pricing of electricity transmission and distribution on power grids in Shenzhen and western Inner Mongolia. We introduced tiered pricing for residential water and gas consumption and adjusted the price of non-residential natural gas for use that was within 2013 levels.
5) Progress was made in the reform of State-Owned Enterprises (SOEs).
Guidelines for reforming the remuneration system for executives in central government enterprises were introduced. Pilot reforms were launched to reorganize central government enterprises as state-owned asset investment companies, develop a mixed-ownership economy, and standardize the boards of directors in central government enterprises. Further progress was made in the merging and reorganization of SOEs. (More)
6) Social reforms proceeded in an orderly fashion.
Guidelines for comprehensive reform of the system for the use of official vehicles were formulated, and were implemented first in the bodies of the CPC Central Committee and central government. Plans for a system of public credit records were promulgated and implemented, and mechanisms to enable different departments to share credit information and take joint punitive actions against those who act in bad faith were improved. Significant progress was made in the establishment of a unified registration system for immovable property. The reform of the school examination and enrollment systems was vigorously promoted. The plan for old-age insurance reform in Party and government bodies and public institutions was promulgated as expected. The majority of China's provincial-level administrative areas have established systems enabling residents to settle medical bills incurred in any locality within that jurisdiction via their medical insurance accounts. Trials for the comprehensive reform of county-level public hospitals have been extended to over 50% of counties or county-level cities throughout the country.
7) A new phase of reform and opening up has been initiated.
The strategy of developing the Silk Road Economic Belt and 21st Century Maritime Silk Road entered the implementation phase, the construction of infrastructure was strengthened with a view to achieving better connectivity with neighboring countries, and the opening up of markets in border areas and inland areas was expanded. The operation of the China (Shanghai) Pilot Free Trade Zone yielded transferable experience that can be replicated in other reform projects. The utilization of foreign capital was enhanced in terms of both quality and structure. Non-financial foreign direct investment actually utilized in 2014 totaled US$119.6 billion, up 1.7% year on year. The proportion of foreign investment utilized in the service sector reached 55.4% of the total. Efforts were redoubled to promote international cooperation on production capacity and encourage Chinese equipment to "go global," and good progress was made in initiatives to promote Chinese rail transit equipment, electricity generation, telecommunications, and energy on the international market. China's non-financial outward direct investment reached US$102.9 billion for the year, up 14.1%. A pattern of synchronous growth in inward and outward investment began to take shape.
