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News from China
China experienced in dealing with risks: premier
25th February 2016

Chinese Premier Li Keqiang said Wednesday the government is experienced in dealing with various risks and has sufficient policies and tools.

Li made the remarks while meeting with the World Bank's President Jim Yong Kim in Beijing.
"We will continue to implement a proactive fiscal policy and prudent monetary policy, as well as an innovation-driven development strategy," said Li.
China is willing to enhance macro policy coordination with international society via the G20 group, he said.
Li praised cooperation between China and the World Bank in such areas as urbanization and reform of pharmaceuticals and the healthcare system.
He called on the two sides to strengthen research on new growth momentum, to help China to maintain medium-high growth and achieve a medium-to-high level of development.
Kim said all major economies should improve macro policy coordination against the backdrop of a weak global economy.
China has maintained relatively fast economic growth by changing and through structural reform, he said.
The World Bank will strengthen policy communication with China and conduct in-depth discussion with China on issues concerning the G20 summit and the development issues that China is interested in, said Kim.
The World Bank is willing to deliver more rational and objective opinions about Chinese economy to international society, he added.
Kim is visiting China for the G20 Finance Ministers and Central Bank Governors Meeting slated for Feb. 26-27 in Shanghai.
Source: Xinhua
China's Xi urges implementation of reforms
24th February 2016

Chinese President Xi Jinping on Tuesday ordered officials at all levels to implement reform measures and address lingering problems to ensure the reform drive is successful.

He made the remarks while presiding over the 21st meeting of the Central Leading Group for Overall Reform.
Xi, head of the group, said reform concerns all regions and departments.
Officials must play their part as "promoters and people of action," he said, urging them to focus on key problems and take precise measures to solve them.
The meeting was also attended by Li Keqiang, Liu Yunshan and Zhang Gaoli, members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and deputy heads of the group.
Since 2013, China has rolled out reform measures of unprecedented amount and strength. Now it is a pressing job to implement these reforms, according to a statement released after the meeting.
"Overall, the implementation of the reforms is good," it said, adding that some reforms have yielded results and some pilot operations have lead to successful experience that can be spread to other parts of the country.
All departments should fully understand and fulfill their responsibilities, while keeping track of the entire process, it said.
Reform that affects multiple fields or departments calls for diligence, therefore, multiple governmental organs should uphold the principles of "good timing and rhythm," the meeting was told.
"Those that fail to do so will be held accountable," it said.
Highlighting supervision and evaluation, the statement stressed that all departments should ensure plans are well documented, and any mistakes or deadline breaches are dealt with accordingly.
It noted that only truly effective reform will boost social and economic development, and give the people real benefits.
Good experience and examples should be summarized, so that they can inform other work, according to the statement.
Officials were also urged to lead by example by arranging and supervising tasks in accordance with the requirements of the central authorities.
Meanwhile, organs at city and county levels were urged to go deep into communities to seek public opinion, so the results of reform measures are in line with the people's expectations.
"Party committees at all levels should [...] encourage forward thinking, praise outstanding work, but also tolerate mistakes and failures so all officials actively, voluntarily and creatively participate," it added.
Attendees of the meeting heard reports on the implementation of reforms on ecological improvement, judicial system, the CPC's discipline inspection system, legislation to adapt to reforms, science and technology system, public security as well as reforms in Shanghai Municipality, Hubei Province, Sanming City in Fujian Province and Kaihua County in Zhejiang Province.
Source: Xinhua
China Focus: Flexible growth as structural reform gains steam
23rd February 2016

Local governments in China have set flexible growth ranges as they gear up for structural reform.

Of all the GDP growth targets of 31 provincial regions this year, nine have set "growth ranges" instead of specific numbers, according to a report carried this week by the China News Service.
Shandong, Jiangsu and Guangxi all set their growth targets between 7.5 percent to 8 percent, while Guangdong, Zhejiang and Hainan set theirs from 7 percent to 7.5 percent, according to the report. Shanghai and Jilin set theirs between 6.5 percent and 7 percent, while Heilongjiang has the lowest target of 6 percent to 6.5 percent.
"Premier Li Keqiang mentioned the concept of a 'reasonable range' in the 2014 government work report, but this is the first time that multiple local governments have set ranges," Li Xuesong, a researcher with the Chinese Academy of Social Sciences, told newspaper "China Times."
Flexible growth ranges are part of structural reform as China's economy slows. China's economy grew by 6.9 percent year on year in 2015, its slowest annual expansion in a quarter of a century.
Many localities in China are already experiencing a slowdown. Growth of Liaoning Province, for example, dipped to a mere 3 percent last year. The northeastern province, heavily dependent on heavy industry, used to support China's economy with great economic growth.
"Pursuing GDP growth by measures such as expanding capacity and encouraging the property market is not sustainable," said Sun Zhiming, head of the Jilin Academy of Social Sciences. "Structural changes are inevitable."
Cutting overcapacity and destocking could cause temporary economic fluctuations, which is why the ranges are needed. Sun added that flexible ranges leave more room for structural reform and industry upgrade.
"With flexible targets, local governments can focus more on structural reform, which will be beneficial for longer-term development," said Ding Yuanzhu of the Chinese Academy of Governance. National GDP growth may also be set within a flexible range, Ding said.
Structural reform is gaining steam in China. This year, many provinces and municipalities have plans to cut overcapacity, de-leverage and reduce housing inventories. For instance, in east China's Anhui Province, the government will "properly handle overcapacity," "lower costs for enterprises" and "enhance consumption."
In Anhui, many major industries -- steel, coal, cement and iron ore -- are facing excess capacity. Last year, the Magang Group Co. Ltd., a major iron and steel producer, suffered several billion yuan (1 billion yuan=150 million U.S. dollars) in losses.
In northeast China, where growth is the weakest, officials plan to bring their economies back on track with the service industry. For instance, in Jilin skiing is seen as a source of growth. Miaoxiangshan Skiing Resort has recently been branded a national skiing field, becoming a favorite winter holiday spot.
"In the past, people in Jilin could only go to the Jingyuetan Ski Resort to experience the fun of skiing, but now many similar resorts have sprung up," said Wang Yong of Miaoxiangshan resort.
"Setting flexible growth targets, cutting overcapacity and promoting the service industry all form part of structural reform, which will help China out of the slowdown in the long run," Sun Zhiming said.
Source: Xinhua
China outlines roadmap to build better cities
22nd February 2016

Chinese central authorities on Sunday issued guidelines on urban development, two months after leaders met for the Central Urban Work Conference and promised to make China's sprawling cities more livable, efficient and green.

The document, from the Communist Party of China Central Committee and the State Council, set the basic principles, key tasks and targets for future urban development and management, aiming to ensure that cities are "orderly constructed, properly developed, and efficiently operated".
The last time China held a meeting like the Central Urban Work Conference was in 1978, when only 18 percent of the population lived in cities. That had increased to 56.1 percent by the end of 2015.
Urbanization in the past few decades has brought about significant social and economic changes in China, spawning problems including traffic jams, pollution and compromised public safety.
Such urban ills have provoked public ire, putting pressure on city planners to find solutions.
Chen Zhenggao, minister of housing and urban-rural development, said Sunday's document was drafted based on careful research by its ministry and 29 other related departments.
The guidelines said China will limit cities from growing beyond the means of their natural resources and environment.
Currently, Beijing, Shanghai and Chongqing municipalities all have populations exceeding 20 million. Cities like Tianjin, Guangzhou and Shenzhen each have more than 10 million.
Priority will be given to the protection of farmland, while land for construction use will be "properly allocated". The country plans to take around five years to inspect and clear up illegal construction.
It also called for city planners to differentiate cities with urban landscape based on local characteristics.
Aside from the exterior of buildings, factors including resource and energy conservation as well as environmental protection should also be taken into account in the process of designing and constructing, the guidelines said.
As part of efforts to provide low-income urban residents with affordable housing, China aims to complete renovation of rundown urban areas and dilapidated housing by 2020.
China will also improve urban planning and construction of infrastructure, both underground and overground. Construction standards and project quality will be raised, the guidelines said.
To ease traffic jams in the cities, China looks to expand public transport network such as buses and railways. By 2020, China aims to raise the penetration of public transport to 40 percent in megacities, 30 percent in big cities and 20 percent in medium- and small cities.
Efforts will be intensified to cut pollutant emission in the cities with increasing supply of clean fuel to improve energy structure, the document said.
It also called for developing smart cities through various Internet technologies, such as big data and cloud computing, aiming to upgrade urban management and services.
Source: Xinhua

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