[Abstract]The Belt and Road region has some of the major global energy producers and consumers, who could be the important partners of China’s energy cooperation in the future. The aim of the energy cooperation along the belt and rod region is to jointly create an inclusive and mutually beneficial energy community. To achieve this goal, we should promote the integration of regional markets, commit ourselves to building a regional market for energy trading and improve global energy governance.
[Abstract] At the National Congress of the 19th CPC, the government proposed to increase the suppliers of residential housing, encourage house-renting and adopt multiple measures to ensure that everyone has a place to live. Over recent years, the international housing system has made continuous progress and we can draw experience from it to address China’s housing problems.
[Abstract] During the past years, China has conducted continuous reform of its rural collective property system. In 2014, China started a pilot project to empower the shareholding power to peasant’s collective assets. In December 2016, the central committee of the CPC and the state council released the “Suggestions on the steady promotion of rural collective property rights reform”, expanding the number of pilot reform town, city, and district from current the 29 to 100. We have accumulated a lot of experience from this reform, however, some issues still remain and should be dealt with carefully.
[Abstract] Over recent years, some major developed economies such as the United States, the European Union and Japan have adopted various policy initiatives to promote their national big data strategy. China can learn from their successful experience.
[Abstract] At present, China has entered a critical period of fighting poverty which will decide whether or not China can achieve the strategic goal of building a well-off society in an all-round way. The report of the 19th National Congress of the CPC pointed out that decisive progress has been made for the poor in recent years. For instance, more than 60 million people have been lifted out of poverty, and the poverty rate has dropped from 10.2% to well below 4%. However, the task of fighting poverty remains an arduous one. At the end of 2016, there are still more than 43 million poor people living in China’s rural areas, and to get all the poor people out of poverty has become a top priority of the rural administrations. Although the central and local governments have invested huge amounts of money and tremendous administrative resources in implementing the policy of aiding the poor, the concrete implementation still depends on the completion of the grassroots cadres. Due to various problems, the task of poverty alleviation has put grassroots cadres under enormous pressure and triggered new conflicts between the cadres and masses, resulting in ineffective investment of resources. Therefore, we should start with optimizing the top-level design and take measures to crack down on the grass-roots dilemma.
[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.
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