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2. Moving faster to make China a country of innovators
The latest global revolution in science and technology and industrial transformation are trends we must be on board with. We will do more in implementing the innovation-driven development strategy, and keep on making the Chinese economy more innovative and competitive.
We will improve national innovation systems. We will strengthen basic research and application-oriented basic research, launch a number of major science and technology innovation programs, and build top-quality national laboratories. We will encourage enterprises to head up major science and technology programs, support collaborative innovation by research institutes, universities, and enterprises, and speed up the commercialization and application of innovations. State investments in science and technology will be weighted toward fields related to improving living standards. We will strengthen efforts to reduce smog and prevent and cure cancers and other serious diseases, thus making science and technology do more to benefit the people.
We will act on and improve policies that stimulate innovation. We will reform the science and technology management system, and speed up the shift in performance assessment from emphasis on processes to emphasis on outcomes. We will empower innovation teams and leaders by seeing that they have more human, financial, and material resources at their disposal and more power to make decisions related to technology roadmaps. For researchers working for major scientific and technological breakthroughs we will adopt flexible remuneration systems and reward schemes. We will explore ways to grant researchers ownership or permanent use rights over their scientific and technological outputs. All outdated rules and regulations that sap the inspiration for innovation will be modified or abolished without delay, and all red tape that strangles efforts to unlock innovation will be torn clean away.
We will see the nationwide business startup and innovation drive is taken to the next level. China is home to the biggest pool of human resources and talent in the world. In this we have the greatest gold mine there is for innovation and development. We will provide services that tick every box for inventors, innovators, and entrepreneurs, and establish more business startup and innovation demonstration centers. We will encourage large enterprises, universities, and research institutes to enable access to resources necessary for innovation, boost the platform economy and the sharing economy, and create an innovation and entrepreneurship landscape featuring online-offline combination, collaboration between enterprises, universities, research institutes, and end-users, and partnering between businesses of all sizes. With these efforts, we will create an upgraded edition of the national drive to promote business startups and innovation. We will establish a state financing guaranty fund, support leading innovative enterprises in going public, and extend nationwide the pilot preferential tax policies for venture capital investment and angel investment. We will deepen the reform of institutions for talent development, promote free flows of human resources, support enterprises in increasing pay packages for technical workers, and strengthen the incentives for highly skilled personnel. We will encourage overseas Chinese students to return to China after completing their studies to pursue business and other innovative ventures; we will create a fast track to attract more foreign talent to China. We have no doubt that by bringing together myriad intellects and pooling everyone’s energies, China will break into a sprint in innovation.
3. Deepening reforms in fundamental and key areas
We will, drawing on the important momentum generated by the 40th anniversary of reform and opening-up, endeavor to make new breakthroughs in reform, and continue to unleash and develop productive forces.
We will advance the reform of state capital and SOEs. Lists of investor rights and obligations regarding oversight and regulation will be formulated. We will deepen trial reforms in state capital investment and management companies, and grant them more decision-making power. We will continue moving forward with the improvement and restructuring of SOBs and the joint-stock reform of central government enterprises, and move faster to give shape to corporate governance structures with effective checks and balances and flexible and efficient market-based operating mechanisms. We will work consistently to make SOBs into leaner, better performers, increase the core competitiveness of their main business, and strengthen, expand, and increase returns on state capital. We will prudently move forward with reforms introducing mixed ownership in SOBs. The system for State Council reporting to the NPC Standing Committee on the management of state-owned assets will be implemented. Our SOBs should, through reform and innovation, become front-runners in pursuing high-quality development.
We will support the development of private enterprises. There will be no irresolution about consolidating and developing the public sector and no irresolution about encouraging, supporting, and guiding non-public sector development; we will uphold the principle of equal rights, equal opportunities, and fair rules. We will implement fully all policies and measures in support of non-public sector development, earnestly address salient problems that concern private companies, and take firm action to remove hidden barriers. We will build a new type of cordial and clean relationship between government and business, and improve mechanisms for entrepreneurs to participate in enterprise-related policy formulation. We will encourage and protect entrepreneurship, boost entrepreneur confidence, and enable private enterprises to reach their maximum potential in the market economy.
We will improve property rights systems and mechanisms for market-based allocation of the factors of production. The property rights system is the cornerstone of the socialist market economy. We will improve the relevant laws and regulations to see that property rights are protected, contracts are honored, the market is unified, exchanges are equal, and competition is fair. All types of infringements on property rights will be rigorously dealt with in accordance with law, and all property rights dispute cases will be reviewed and settled in accordance with law. We will strengthen the protection of intellectual property, and enforce a punitive compensation system for intellectual property rights infringements. We will speed up reforms making the pricing of factors of production like technology and land increasingly market-based, deepen reform of the pricing mechanisms for resource products and public services, break government monopolies, and protect against market monopolies. We will see that strong protection of property rights and fluid flows of the factors of production enable a great increase in market dynamism and public creativity.
We will continue structural fiscal and tax reforms. We will advance reforms to clearly define the respective fiscal powers and expenditure responsibilities of central and local government, move quickly on formulating a plan for reforming the division of revenues, and improve the transfer payments system. We will improve local tax systems, and prudently advance legislation on real estate tax. We will reform the personal income tax. We will implement performance-based management across the board, and ensure the proper and secure use of fiscal budgets.
We will speed up reforms in the financial sector. We will reform and improve the financial service system, support financial institutions in expanding their business in inclusive finance, promote the well regulated development of small and medium local financial institutions, and focus on solving the problem of small and micro enterprises finding it tough and expensive to access financing. We will deepen the reform to develop a multi-tiered capital market, and promote the development of the bonds and futures markets. We will expand the insurance market’s role in protecting against risk. We will deepen reforms to make the interest rate and exchange rate more market-based, and see that the RMB exchange rate remains generally stable at an adaptive and equilibrium level.
We will advance institutional social reforms. We will deepen reform of the old-age pension system, and establish a central system for enterprise employees’ basic old-age pension funds to be used inter-provincially. We will deepen comprehensive public hospital reform and make coordinated moves to reform healthcare pricing, staffing and remuneration, medicine distribution, and health insurance payment models. We will improve the quality of healthcare services and work hard to resolve the difficulties people face in accessing medical care. We will continue reforms in education, culture, and sports, fully unlocking society’s vast potential for development.
We will build a more robust system for developing an ecological civilization. We will reform and improve the system for ecological and environmental regulation, strengthen regulation over the use of natural ecological spaces, roll out a system of compensation for ecological and environmental damage, and improve the compensation mechanisms for ecological conservation, using more effective institutions to achieve ecological and environmental protection.

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