Comprehensive reform plan in the pipeline

A senior think tank of the central government has drafted a profound and systematic reform plan for China, exposing the need for change in crucial areas. The plan, which has been announced ahead of one of the most important conferences of the new leadership of the Communist Party of China, suggests means for implementing reforms and dealing with obvious challenges, says an article of China Business News (excerpts below).

The "383" reform plan submitted by the Development Research Center of the State Council to the Central Committee of the Communist Party of China before the Third Plenary Session of the 18th Central Committee of the CPC has attracted widespread attention at home and abroad.

The plan is named according to its content, which refers to reforms in three main areas, with eight targets in respective fields, as well as reforms of three related areas.

The government needs to transform its functions, perfect China's market system, and create new structures for business units.

The eight important fields for reform are: cutting administrative approvals,; breaking monopolies; deepening land-system reform; promoting financial-system reform; starting a new round of financial and taxation reform; reforming the State-owned asset management system; boosting innovation and green development; and deepening foreign-bound economic system reform by further opening up the service sectors.

The three related areas are: boosting competition by introducing foreign investors; deepening reforms of the social security system and setting up a "basic citizen social security package"; and deepening the land-system reform to open the market for collectively owned land.

None of these reforms is an easy task, and it is clear that the new round of reforms is a systematic project, rather than a partial mending of certain aspects of the current system.

The plan is for the reference of decision makers. When the government really carries out the relevant reforms, it will have to consider various limiting conditions and factors. The coming conference is expected to provide answers how to overcome these difficulties.