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Ins and Outs of Working Opinions on Chongqing's Implementation of Expansion of Domestic Demand to Promote Economic Growth Advocated by the Central Government

Note: Chongqing People's Government issued the Opinions on Implementation of Expansion of Domestic Demand to Promote Economic Growth Advocated by the Central Government (hereinafter referred to as "Implementation Opinions") (YFF (2008) No. 116) recently. To facilitate the public to understand the policies concerning expansion of domestic demand in a timely and all-round way, Chongqing Development and Reform Commission, details the hot issues concerned.

Implementation Opinion, unveiled under exacerbation and extension of global financial tsunami and drop of domestic economic growth, is a measure for implementing the decisions of the Central Government and braving the challenges proactively while taking practices of Chongqing into consideration. It is an action agenda for guiding Chongqing to challenge and progress against the trend in the next three years. Though the global economy, objectively, has suffered from the "severe winter", we are able to make the "winter" full of sunshine by taking appropriate measures timely. What's more, if winter comes, can spring be far behind?

Material changes of macro-control policy are not only favorable for overcoming negative impacts as a result of global downturn, but also providing an opportunity for Chongqing to implement "314" Umbrella Plan, strengthen the development foundation and develop against downturn. Such material changes are favorable for eliminating the impacts on Chongqing's economic development by the severe domestic and overseas challenges; favorable for improving people's livelihood and achieving social harmony and stability; favorable for resolving conflicts and troubles that restrict Chongqing for a long period, such as low-level development, big gap between urban and rural areas, unbalanced development between districts and counties, and weak innovative ability. Implementation of expansion of domestic demand to promote economic growth advocated by the Central Government lies in transferring crisis into opportunity, catching the opportunity, and highlighting investment and consumption that are major drives for economic growth of Chongqing. Chongqing should endeavor to promote consumption by investment, promote production by consumption, stabilize employment by production, and increase people's income by employment for the purpose of boosting better and faster economic & social development of Chongqing. Pursuant to "be far-sighted based on current situation", CPC Chongqing Municipal Committee and Chongqing Municipal Government decide to accelerate implementation of construction plans which have been confirmed by this government in an all-round way, strive for supports from the Central Government and make an overall planning for the local financial resources. The government investment at all levels is expected to reach RMB 200 billion as of the end of 2010. The government will guide the social capital, credit funds and external investment to access to Chongqing by improving the investment environment proactively and the investment of the whole society is expected to reach RMB 1,500 billion in the next three years.

Thus, the work in ten aspects should be favorably prepared in the later period to maintain a strong drive by investment and consumption.

I. Continue to pay close attention to changes of situations, and study and unveil applicable policies and measures timely. Under a severe global economy, adhere to the basic task of downturn prevention, pay close attention to domestic and overseas economy as well as Chongqing economy, conduct real-time supervision and develop, and unveil response measures timely. 

II. Keep fighting for 100 days to ensure realization of "RMB 100 billion Investment from the Central Government" as scheduled. Chongqing is covered by projects of comfortable housing, rural livelihoods and rural infrastructure, important infrastructure (such as railway, highway and airports), social undertakings (such as medicine & health and education & culture), energy saving and pollutant reduction, independent innovation and adjustment of industrial structures from the "RMB 100 Billion Investment from the Central Government". The total investment is expected to reach RMB 70 billion. Besides the investment from the Central Government, Chongqing will make every effort to raise local funds and guide various capitals, credit funds and external investment to access to Chongqing. All these projects will be listed as Chongqing's key construction projects. Special measures will be available. The formalities will be further simplified to improve efficiency. The role of additional investment from the Central Government shall be fully played to drive the economic growth of the current period. In addition, the quality and safety of projects shall be ensured. The utilization of capital and supervision, inspection and audit of project construction shall be strengthened.

III. Make breakthroughs in some large projects and increase the potential for development on such basis. Focus on special plans, such as "RMB 300 Billion for Traffic Convenience in Chongqing", "RMB 300 Billion for Livable Chongqing", "RMB 100 Billion for Construction of Socialist New Countryside", "RMB 50 Billion for Forestry Project" and "RMB 50 Billion for Harmonious Livelihood", make elaborate preparation for the preliminary work, continue to rally investment support from the Central Government for such projects which have large-amount investment, long industrial chain, strong ability in independent innovation and which are consistent with requirements for overall planning of rural and urban development. Strive for making breakthrough in strategically significant projects (such as energy and chemical engineering) of which much time has been spent on the preliminary work as supported by the Central Government. With regard to important infrastructure projects included into the national planning, such as railway and rail, strive for accelerating the approval by the state, and commence construction as soon as possible. Realize rolling investment, i.e., projects are started, in progress and completed respectively, striving to realize RMB 500 billion investment in large projects in three years. Make more efforts and plan another batch of potential important projects, realizing RMB 1,500 billion investment for potential material projects.

IV. Take time to implement a batch of livelihood projects to boost social harmony. Accelerate the pace for construction of 10 livelihood projects and 10 public utilities from 2008 to 2012. Strengthen the planning of new projects in social undertakings, such as regulation of small river basins, production safety, food and medicine safety, compressive services in rural areas, education and health, culture and sports; make good preparation for the preliminary work; win further support from the Central Government next year and the year after next; make efforts to integrate all resources and increase investment continuously.

V. Provide more comfortable housings and promote health development of real estate industry. Guide stable development of real estate market in a proactive manner. Provide more comfortable housings and accelerate completion of renovation in the city proper as well as mining and construction sheds. Guide market consumption positively; expand the coverage of provident funds and individual loans; encourage residents to improve housings; grant tax preferential policies for housing purchasing due to removal and settlement of old and dangerous housing. With regard to development of ordinary marketable housing featuring low and middle prices and small and medium-sized apartment types, take positive measures to provide support for financing means (such as credit).

VI. Accelerate the infrastructure construction in industrial parks and create bases for industries transferred from Eastern China. Continue to give more support to facility construction of industrial parks in the district and counties of Northeast and Southeast Chongqing. Provide more instructions for featured parks at district and county level as approved by the state, and strive for additional investment support from the Central Government positively. Fully implement the implementation opinions on orientation of featured industrial park; guide the enterprise investment to cluster in 5 one-hundred-million and 10 ten-million industrial parks; and further enhance concentration of industrial parks. 

VII. Pay adequate attention to investment projects and create a "sheltering harbor" for domestic and overseas investment. Track and implement large projects of inward investment which have been signed and promote the implementation of such projects. Fully understand and flexibly apply all kinds of preferential policies, including West Development Strategy, Overall Planning of Urban and Rural Areas, and preferential policies for Three Gorges Reservoir Area and inland bonded port zone; further optimize the comprehensive environment; enhance inward investment; boost upgrading of industrial structure and seek for progress in inward investment. Support capable enterprises to "go global".

VIII. Grasp a batch of orders and stabilize employment. Enhance market guidance and government procurement; spur material and equipment supply by projects invested by the government, to make effective use of the industrial manufacturing capacity formed in recent years. Pay close attention to migrant labor back home and people obstructed by re-employment; take various measures to ensure the stability of employment.

IX. Increase revenue to some extent and improve consuming capacity. Implement policies for development of agriculture that benefit farmers; raise minimum grain purchase prices as prescribed by the government; raise subsidies for agricultural materials, seed and subsidy for purchasing agricultural machinery, so as to increase farmers' income. Increase free occupation education pilot districts and counties; increase funds for migrant labor back home for establishing their own business to increase income. Boost easy transfer of social insurance within Chongqing and implement reform on cooperative medical insurance for residents in rural and urban areas in an all-round way. Well implement the minimum living guarantee granted by the Central Government; raise the consolation money and living subsidy for entitled groups and senior party members before founding of New China; raise nursing fees for retired veteran cadres who participated in the War of Resistance against Japan; continue to raise the basic pension for retired employees from enterprises. Higher the minimum salary of enterprise employees timely; raise the minimum living guarantee of urban and rural residents.

X. Pay adequate attention to reform in key fields and maintain social stability. Promote price reform of resources (including fuel, water, power, gas and coal) in a positive and sound manner; gradually establish a price mechanism which can truly reflect the degree of scarcity, relation of market supply and demand, and cost of environmental damages. Make preparation for reform on medical care and health system to be initiated, including proposals; alleviate the problem concerning access to medical services and expensive medical treatment. Enhance contact and guidance; well reform public institutions based on categories, endowment insurance and personnel system.  Well conduct the reform and transformation of value added tax, and alleviate tax burden of enterprises. Accelerate establishment of service-oriented government with a view to improve the transparency in government operations and execution of authority.

   

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