[Abstract] The asset securitization is the focus of restructuring the asset of the military enterprises, as it allows the asset to be sold in the form of shares or bond. This process will increase the liquidity of military asset, bring a market-based institution to the national defense industry, further expand the financial channels for the national defense industry, reduce the financial burden of the government, help corporations to improve their asset management, solve the funding bottleneck and push forward civil-military integration.
[Abstract] With the rapid increase of the elderly people, premature aging has become an urging problem of China. Due to the increasing number of disabled seniors, seniors with dementia and the so-called empty nest elderly, China’s aging services industry faces significant challenges. For example, the severe shortage of qualified personnel cannot meet the demand of the aging industry. To deal with these problems, we should train enough qualified personnel for the aging services industry.
[Abstract] The assimilation problem is a great challenge facing the new energy development of China. To meet that challenge, the new energy producers should deploy the energy storage facilities to the user-side. By doing so, they will be able to reduce the mismatch between the power producers and users, solve the problem of impeded power grid channel and change the instant synchronization of production, transportation and consumption. Furthermore, they will be able to assimilate clean energy, satisfy the demand of power grid, break the bottleneck of assimilation, and increase the share of clean energy consumption.
[Abstract] The No. 1 Document of the CPC central committee has proposed repeatedly to vigorously develop the leisure agriculture and rural tourism since 2015. On 25, May 2017, the Ministry of Agriculture released the “Notice on Implementing the Policy for Promoting leisure Agriculture and Rural Tourism” to achieve that goal. France has been one of the leaders in leisure agriculture development and China can learn from its development model and successful experience in order to promote the construction the featured towns in its vast rural land.
[Abstract] Based on the past practice of mixed ownership, the third plenary session of the 18th CPC Central Committee has elevated the reform on the mixed ownership to a much higher level. Xi Jinping, China’s president stressed that the mixed ownership is an important and effective way of strengthening China’s economic vitality, control and influence. In the critical period of SOEs reform, we should make breakthrough and new progress in the key areas and links as the reform on mixed ownership will become a major breakthrough of the new reform of SOEs.
[Abstract] Recently, a research team from CCIEE conducted a fact-finding trip in Chongqing, investigating whether its economy is changing from a real economy to a virtual one. The team paid visits to relevant governmental departments, financial institutions and companies to understand better the problems of the local economy.
[Abstract] Since the China-EU Bilateral Investment Treaty (BIT) Negotiation has been launched in November 2013, China and the EU have made great progress on the scope of topics and other issues. Nonetheless, the two sides have not reached consensus on such core issues of SOEs, market access, M&A review. The unfinished China-US BIT negotiation has also impacted the BIT negotiation between China and the EU. The issue of SOEs has become one of the focuses of the negotiation.
[Abstract] The long-term high leverage of China’s State-owned Enterprises (SOEs) can be attributed to both external and internal factors. Externally, the decrease in the income and profit of SOEs’ main business made them more reliant on credit. Moreover, the undertaking of major projects that benefit everybody led to a higher level of debt. The internal problems of SOEs can be summarized as a soft-constraint budget, the weak capability of profit-making and weak constraint on property rights. We should take this issue seriously and implement the following recommendations to reduce the high leverage: to strengthen policy coordination and reform the debt of SOEs, to allow the government and the commercial banks to play a better role, to deepen reform of SOEs, improve corporate governance and connect with the capital market.
[Abstract] The Guangdong-Hong Kong-Macau Greater Bay Area covers nine cities in the mainland, Hong Kong and Macau and hence making it the biggest city cluster in the world. In March 2017, Chinese Premier Li Keqiang included the proposal to design a plan for the development of the greater bay area in the government working report for the very first time. In July, Xi Jinping, the president of China, witnessed the signing of the Deepening Guangdong, Hong Kong and Macao cooperation to promote the construction of the Bay Area Framework Agreement during his visit in Hong Kong, implying a great forthcoming opportunity for the development in the Pearl River Delta. Comparing with the Yangtze River Delta and the Beijing-Tianjin-Hebei coordinated development projects, the greater bay area has the stronger competitiveness and better technological innovation cluster, therefore, it is possible for Guangdong, Hong Kong and Macau to become the first world-class city cluster.
[Abstract] Currently, the three hidden risks of China’s banking industry can be summarized as a rising Non-Performing Loan, the bond market remains under pressure and the overlap of capital management businesses. The following recommendations are provided to minimize these risks. Firstly, the authorities should implement a comprehensive monitoring system, including the financial innovation. Secondly, they should lower financing costs by optimizing the monetary policy of the central bank. Thirdly, they should strengthen supervision on the functions of the banking industry and have a unified monitoring on all the capital management businesses. Last but not least, they should deepen reform on the mechanisms regulating the banking industry, encourage innovation, and improve the risk-resistance of the banks to ensure a healthy development of the banking industry.
[Abstract] Recently, a research team from CCIEE conducted a fact-finding trip to Morocco, learning about the opportunities for China and France to jointly enter the African market. They visited a few local research institutes and the Chinese embassy in Morocco. They believe that Morocco has a significant locational advantage, the cooperation among China, France and Morocco will benefit them all and help Africa as a whole. Therefore, they should focus on the major projects such as infrastructure and energy, and push forward the joint construction of the Tangier Tech City and Casablanca Financial City.
[Abstract] To deal with the shifting from the real economy to virtual economy, a research team from CCIEE conducted a field trip in Hunan province. Generally speaking, Hunan’s economy is stable and moving in a positive direction. Nonetheless, some of the funds has also shifted from the real economy to virtual economy. The growth of investment in manufacturing has started to slow down, private investment is sluggish and capital cannot flow into the real economy. All these can be attributed to two factors. On one hand, enterprises of high quality have less demand for bank loans. On the other hand, the banks are less willing to enter into the industries which have a relatively higher level of risk. Therefore, the local governments should offer more supporting policies in terms of developing financial services in counties, offering finance to small and micro enterprises, and lowering costs for manufacturing industries.
[Abstract] Real Economy is the foundation of national economic development and revitalizing the real economy is one of the key tasks of deepening China’s supply-side structural reform in 2017. Fiscal policy is an important measure to revitalize the real economy. Under the constraint of financial de-leveraging and limited fiscal expansion, the fiscal and taxation policy should be both flexible and targeted in order to support the real economic development effectively. For example, the fiscal policies should focus on the supply-side structural reform, continue to lower tax and costs, reduce the burden of enterprises, adjust tax structure, and support vigorously the development of small and micro enterprises in the strategic emerging industries, advanced manufacturing and technological industries. Apart from that, the authorities should implement PPP (Public Private Partnership) projects, make up the shortfall of infrastructure construction and establish a comprehensive PPP system.
[Abstract] The tax reduction program launched by Trump administration mainly focuses on three aspects, lower business tax rates, lower individual income tax rates and increase rates on overseas profits. The purposes of the cuts are making the enterprise tax system more competitive, encouraging the return of US companies, attracting investments from US or foreign-funded companies, and ultimately stimulate economic growth. The program will impact the flow of China’s capital and challenge the industrial upgrading and transformation of China if it is implemented. Therefore, China needs to adopt effective countermeasures, for example, adjusting its taxation, promoting the development of urban-rural integration, improving the environment for investment and boost domestic private investment.
[Abstract] The policy of returning farmland to forestry has made significant progress in terms of combining ecological conservation and targeted poverty alleviation since it was implemented. The project subsidy is coming to end soon, nonetheless, the follow-up policy is still not in place. Such a lag is likely to more or less undermine the achievement, which has already been made. To address this issue, the relevant departments are recommended to extend the subsidy to rural areas, adjust the subsidy appropriately, change support for follow-up industries, and explore the possibility of trans-regional subsidy.
[Abstract] Practices show that the realization of improved industrial efficiency derived from the division of labor within agriculture needs the assistance of geographical clustering of agricultural activities. Therefore, it is necessary to promote the geographical clustering of agriculture as a starting point for China’s agricultural policy. The responsible bodies should take the following measures to advance the supply-side structural reform in agriculture. On one hand, they should develop professional, diversified and coordinated agricultural production, management and industrial systems by guiding and regulating the geographical pattern of agricultural development. On the other hand, they should fully foster and use positive externalities generated from geographical clustering, and strengthen the building of transportation network and agricultural products circulation.
[Abstract]With the help of national e-governance network, China has made a good start in the application and building of big data infrastructure over recent years. Each city has implemented the big data plan differently according to their conditions. By analyzing the construction of big data for e-governance in central and local governments, this research paper discovered some problems in relation to the establishment of the big data network. For example, lack of information-sharing, inadequate laws and regulation, short of personnel and information security problem. The responsible departments are thus recommended to improve laws and regulations supervising big data, accelerate the building of a unified platform for big data, speed up information-sharing, disclose e-governance data to the public and strengthen big data security.
[Abstract] Due to their lack of skills and managerial experience, poverty-stricken farmers can hardly pull themselves out of poverty by developing their own programs. The new agricultural business entities, however, have the capability to help poor farmers get rid of poverty. Therefore, improving the financial services for the new agricultural business entities should become the major mean to achieve “poverty alleviation through financial services”. Presently, there are several problems in the financial services available to the new agricultural business entities, for example, insufficient services to agriculture and poor farmers, weak technological innovation, incomplete credit rating and guarantee system, the lack of precision and difference in supporting policies. To address those problems, the financial institutions are recommended to establish multi-layer financial institutions in rural areas, offer diversified financial products, comprehensive credit rating and guarantee system, as well as echelon fiscal policies to achieve more breakthroughs.
[Abstract] China is under great pressure to attract Foreign Director Investment (FDI) as developed nations have started their re-industrialization while low-income countries have significant cost advantages. Having considered these factors, China should learn from Singapore, Hong Kong Special Administrative Region and South Korea in the areas of creating an open and free environment for FDI, launching tax incentive, offering efficient and convenient government services and sound legal system. Having considered India’s defects, China should improve the laws and regulation to the international standard for FDI according to the principles of rule of law, internationalization and facilitation. Furthermore, China should build a more liberalized environment for investment, reduce enterprises’ costs and nurture a fair, competitive and relaxing environment for FDI.
[Abstract] Accelerating the development of Traditional Chinese Medicine (TCM) has become a national strategy of China as the TCM civilization is an organic part of the Chinese civilization. The revival of TCM civilization is an important component and effective support for China Dream and the rejuvenation of the Chinese nation. In order to succeed and carry forward TCM, safeguard and promote its development as well as protect people’s health, relevant government departments need to come up with policies supporting the innovation and integration of TCM, build TCM Health Town and demonstration projects of TCM innovation.
Address: No.5, Yong Ding Men Nei Street, Xicheng District, Beijing, China 100050 Fax: (8610) 8336 2199
If you have any questions or comments, please do not hesitate to contact us via the fax number provided.