Full text: Report on China's economic, social development plan (11)

4) We will meet head-on the most difficult problems related to SOE reform. We will step up efforts to reorganize or establish state capital investment companies and operating companies. We will reform SOEs by introducing a mixed ownership structure, and begin trials and demonstrations in key industries such as railway, civil aviation, telecommunications, and defense. We will carry out structural reform of the power, petroleum, natural gas, and salt industries. We will promulgate guidelines on further improving the property rights system.

5) We will accelerate reform of the fiscal and tax systems. We will introduce guidelines on appropriately dividing powers and spending responsibilities between the central and local governments. We will increase the percentage of funds transferred from the central government budget for state capital operations to the general public budget. We will expand the reform to replace business tax with VAT to the construction, real estate, financial, and consumer service industries, and make the input VAT on enterprises' new immovable property deductible, so as to ensure that the tax burden on all industries can be reduced rather than increased. We will implement reform to levy the price-based resource tax on all resource products, advance reform of the excise tax and the environmental protection tax, and steadily carry out reform of personal income tax that is based on adjusted gross income as well as specific types of income.

6) We will advance financial reform. We will diversify the system of financial institutions; deepen reform of state-owned commercial banks, developmental financial institutions, and policy-backed financial institutions; and continue to conventionalize the establishment of private banks. We will develop inclusive finance to increase financial services for micro, small, and medium-sized businesses as well as for rural areas, paying particular attention to poor areas. We will promote the sound, well-regulated development of new forms of business in the financial sector. We will take steady steps to realize RMB capital account convertibility. We will promote the sound development of a multi-level capital market and improve the system for financial oversight and regulation. A catastrophe insurance system will be established.

In addition, we will continue to deepen reform in areas related to people's wellbeing and social programs, including reform of the education, elderly care, cultural, medical, and health care systems and reform of the airspace management system.

4. Implementing the innovation-driven development strategy

In pursuing innovative development, we will fully implement the strategy for innovation-driven development, deepen efforts to promote entrepreneurship and innovation across society, and deepen reform of the science and technology management system. We will expand the resources, increase the space, and improve the environment for stimulating the enthusiasm and potential for innovation and entrepreneurship across all sectors of society, particularly enterprises.

1) We will increase the supply of resources for innovation. We will promote the development of major national science and technology infrastructure and national laboratories and industrial innovation centers. Comprehensive national science centers will be established in areas with a concentration of major science and technology infrastructure, and a new group of major science and technology programs and projects will be launched. We will systematically conduct pilot reforms for all-round innovation, and organize the implementation of the project to develop 100 top innovative enterprises.

2) We will accelerate the implementation of the action plan for entrepreneurship and innovation. We will help to establish more entrepreneurship and innovation demonstration centers; create more platforms to support crowd innovation, crowdsourcing, crowd support, and crowdfunding; and develop maker spaces, particularly spaces for specialized crowd innovation. We will develop the sharing economy. Local authorities and large corporations will be encouraged to establish venture capital, entrepreneurship and innovation platforms, and science and technology innovation centers. We will focus on supporting the development of platforms for business incubation, start-up assistance, and public services for start-ups and innovation. We will move forward with the Internet Plus action plan and the innovation project to promote open, big data. We will put in place high-speed, mobile, secure, and ubiquitous next-generation information infrastructure, intensify efforts to implement information technology development projects that benefit the general public, and improve the mechanisms for providing universal service in telecommunications. The Online Silk Road Agenda will be initiated. We will continue to make the National Week for Entrepreneurship and Innovation a success and support the development of more events that are geared toward promoting entrepreneurship and innovation.

3) We will develop strategic emerging industries. We will promptly make overall arrangements for developing infrastructure, public resource repositories, and global innovation networks to underpin the development of strategic emerging industries. We will carry out additional major programs and projects in strategically important fields such as high-performance integrated circuits, new-type displays, space technology applications, general aviation, and biomedicine. A national development fund for strategic industries will be established, trials will be carried out to provide protection against financing risks, and we will promote the development of strategic emerging industry clusters.

4) We will improve the core competitiveness of the manufacturing sector. We will deepen efforts to implement the Made in China 2025 strategy. With a focus on major areas and key issues, we will strive to make breakthroughs in core technologies and ensure the industrial application of these technologies. We will accelerate development of smart manufacturing technology and equipment, and promote the sound development of rail transit, new energy vehicles, pharmaceuticals, petrochemical, coal chemicals, and food industries. We will carry out activities to improve quality and branding within the manufacturing sector, and strengthen the national quality infrastructure of China.

5) We will accelerate the high-quality, efficient development of the service sector. In accordance with the two guidelines in relation to accelerating the development of producer services and consumer services, we will further relax controls for market access in the service sector, level the playing field, and ensure that producer service industries become more specialized and move toward the higher end of the value chain while consumer service industries produce more refined and higher-quality products. Innovation will be promoted in high-tech service industries. Another group of national trials for comprehensive reform in the service sector will be carried out, from which transferable experiences and applicable practices will be promptly spread to other areas.

6) We will improve the policies and environment for encouraging innovative development. We will grant extra tax deductions for research and development costs, improve preferential tax policies for new- and high-tech companies and science and technology business incubators, and implement a mechanism to subsidize the initial costs of insuring new materials and key parts and components. Reform of colleges and research institutes will continue to move ahead, regulations will be formulated to make it possible for researchers to take on part-time work, create their own start-ups or pursue on-the-job inventions, and an income distribution mechanism to encourage entrepreneurship and innovation will be formed. (mo