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Politics & Law

China’s State Council think tank sets out roadmap for reform

Yu Zhengsheng

Yu Zhengsheng

A top government think tank has unveiled a detailed road map for a series of far-reaching economic policy changes, in one of the strongest indications yet that the Communist Party intends to stay on the path of reform.

The recommendations by the State Council’s Development Research Centre came ahead of the much-anticipated third plenum of the party’s 18th Central Committee next month, a critical opportunity for President Xi Jinping to advance his economic and social reform agendas.

In addition, their release was accompanied by a prediction from Yu Zhengsheng – the No4 member of the party’s supreme Politburo Standing Committee – that the annual gathering would result in “unprecedented” reforms.

The proposals span eight areas: finance, taxation, land, state assets, social welfare, innovation, foreign investment and clean governance, according to a copy of the 10,000-word report published over the weekend by China News Service. It recommends sensitive changes like breaking up state monopolies and speeding land reforms.

The source of the recommendations was as interesting as the details. Among its authors were the think tank’s chief, Li Wei, who served as secretary to former premier Zhu Rongji, and Liu He, a top economic adviser to Xi.

Although the road map would be subject to behind-the-scenes horse-trading during the plenum, the document was clearly aimed at restricting the government’s role in economic matters and allowing more freedom in the market. It sets a timetable for action extending to 2020.

The report recommends an ambitious plan to make the yuan a major international trade- settlement and invoicing currency within 10 years, as well as a reserve currency in “regional markets”.

It highlighted three projects key to advancing economic reform: relaxing control over market access, setting up a “basic social security package” for all residents and allowing sales of collectively owned rural land.

The national social security package would provide all citizens with a social security card to claim modest but equal pension, medical insurance and education subsidies.

Meanwhile, the unpopular hukou system – which for decades has discouraged migration by tying mainlanders’ benefits to their registered place of residence – would be phased out.

The road map also proposes granting farmers the right to trade their collectively owned land under a unified open market in which urban and rural lands would be valued equally.

Currently farmers only have rights to use collectively owned land and receive meagre compensation when their land is claimed by local governments for development projects. The situation has emerged as a leading cause of social unrest.

The plan proposed fighting rampant official corruption by establishing a clean governance allowance, which officials could claim after retirement if they are found to have been honest during their careers. But some experts questioned the feasibility of the reform plans, given the many possible vested interests.

“The top leadership may view it necessary to push for reforms, to things such as land rights and the social security system, but how the ideas will be received by the interest groups remains to be seen,” said Professor Hu Xingdou, of the Beijing Institute of Technology.

Guan Qingyou, assistant dean at the Minsheng Securities Research Institute, cautioned that the road map was only one of several research reports submitted to the top leadership ahead of the party plenum.

Source: SCMP “State Council think tank sets out roadmap for reform”
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About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee


4 thoughts on “China’s State Council think tank sets out roadmap for reform

  1. SocGen analyst Wei Yao says these think tanks always overstate the scale of the reform agenda and that this time is nothing different. Check out more of Wei’s thinking at http://chinabusinessgold.wordpress.com/


    Posted by Sunshine2013 | October 29, 2013, 7:16 pm


  1. Pingback: China’s anti-corruption storm sweeps Chinese military | China Daily Mail - November 9, 2013

  2. Pingback: China’s Xi Jinping to establish his powerbase through leadership reshuffle | China Daily Mail - January 14, 2015

  3. Pingback: Corrupt officials planning to assassinate China’s president | China Daily Mail - February 26, 2015

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