What China plans to do in 2016 and the next five years

A business review of Premier Li Keqiang’s government work report

The Chinese economy is facing tough challenges. Maintaining a relatively high growth rate while pushing for a consumption and services-led transition won’t be easy. But as President Xi has pointed out, China’s basic economic fundamentals have not changed, China’s commitment to reform and opening up remained intact, and the Chinese government still has many tools and resources to offset the downside risks. The government’s action plans for 2016 and the 13th Five-Year Plan period give us full confidence that the Chinese economy is on a path of a more sustainable and healthy growth. 

The Report on the Work of the Government (hereafter referred as the Report), delivered by Premier Li Keqiang to the Fourth Session of the 12th National People’s Congress on 5 March 2016, provides a glimpse of: 

  • what had happened in China over the past year;
  • what the government plans to do in 2016 to shore up the economy; and
  • the key tasks for the 13th Five Year Plan (2016-2020).

This article provides an analysis on the Report, specifically on the significance and implications of the eight key tasks and the supporting measures for 2016. 

1. Maintaining stable economic policies to boost growth

  • Proactive fiscal policy
  • Tax reductions
  • Flexible and adequate monetary policies

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2. Spearheading with supply-side structural reform and removing growth barriers

  • Streamlining administrative approvals
  • Encouraging entrepreneurship
  • Tackling industrial overcapacity
  • Enhancing technology and product quality
  • Promoting SOE reform
  • Invigorating the private sector

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3. Expanding domestic consumption

  • Removing barriers to consumption
  • Promoting effective investment
  • Accelerating new urbanisation
  • Optimising regional development

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4. Developing modern agriculture

  • Ensuring sustained increases in rural income
  • Improving rural infrastructure
  • Introducing e-commerce into rural areas

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5. Enhancing international cooperation

  • Implementing supporting fiscal, tax and financial policies
  • Relaxing market access restrictions
  • Simplifying procedures for setting up companies

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6. Promoting green development

  • Improving policy support for clean energy and cut the use of coal
  • Encouraging the use of energy-saving and environmentally friendly technologies
  • Protecting natural forests and grassland
  • Curbing desertification and soil erosion

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7. Improving social development and people's well-being

  • Helping laid-off workers find new employment and provide basic needs assistance
  • Help training migrant workers to improve their skills
  • Promoting fairer access to quality education
  • Accelerating reform of medical services and medical insurance
  • Promoting urban and rural community development

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8. Improving government reform and its public services

  • Improving transparency of government
  • Improving oversight and accountability systems

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Contact us

Elton Huang

China Central Markets Leader and China and Hong Kong Entrepreneurial and Private Business Co-Leader, PwC Hong Kong

Tel: +[86] (21) 2323 3029