Liu Yingjie, head of China's Information Department of the State Council Research Office 

Premier Li Keqiang delivered a government work report during the opening meeting of the fifth session of China’s 12th National People’s Congress (NPC) on Saturday.

The government work report, consisting 18,000 Chinese characters, has gone through frequent discussions, deliberations, consultations and modifications. It weighs a lot.

As the draftsman of the government work report for years, the head of China's Information Department of the State Council Research Office Liu Yingjie gets used to the busy schedule starting from every December. Several days before the release of the government work report, Liu worked overtime till 12 pm to check the data.

Liu told NBD, the government work report is not simply written out. What the government has done last year, what the government has accomplished should be the content in the work report. The work report also lays out the economic strategies for this year. Policies and measures contained in the work report have been repeatedly discussed, negotiated,deliberated and communicated. The formation of the work report is a decision-making process.

2016 is the start of the 13th Five Year Plan. China tops the world's major economies with a growth rate of 6.7%. As we enter 2017, against the background of complicated economic situations at home and abroad, how should China's economy achieve stability and development under the guidance of the work report?

With this regard, NBD had an interview with Liu Yingjie, head of China's Information Department of the State Council Research Office.

Liu Yingjie points out, this year's work report analyzes more economic situations at home and abroad. Despite the complicated economic situations at home and aboard, the government has the conditions and methods to solve problems. The work report contains practical policies and measures, presenting valuable information.

To build consensus

The government work report collects and organizes 1,270 pieces of feedback and advice.

NBD: What do you think are the key points and characteristics of this government work report?

Liu Yingjie: The work report embodies the spirit of the Central Economic Working Conference. The plan determined at the Conference and the fundamental policy concerning economic and social development are also reflected in the work report.

The work report highlights "new" "true" " concise " and " vivid". Firstly, the work report carries through innovative concepts both in form and content. New thoughts, measures, expressions and concepts are under consideration.

By "true", it means the work report reflects telling the truth and doing things in a down-to-earth manner. Premier Li Keqiang underlines that the work report should present the useful "concrete measures".

The work report is also "concise". Given the limited space, every word used in the work report is weighed and considered repeatedly. The work report is supposed to cover all aspects and stress the key points, pool the people's wisdom and build consensus at the same time.

Premier Li Keqiang also calls for "vivid", colloquial expressions. The work report should be thoughtful and influential, and easy to understand and memorize for ordinary people. Cyber language and new expressions are used in the work report.

NBD: What processes did the government work report go through before it's been finalized?

Liu Yingjie: The drafting team of government work report was founded early last December. It tallies with Central Economic Working Conference and has some overlapping. The preliminary draft was formed late last December. It was a comparatively mature draft, which later entered into processes including discussion, modification, deliberation.

The Party Central Committee and the State Council highly value the drafting of the government work report. During the drafting process, President Xi Jinping and Premier Li Keqiang have made important instructions. The Party Central Committee and the State Council held 4 meetings to discuss and deliberate about the work report.

In the meantime, the work report draft sought advices across the country. The draft was handed out to 31 provinces, regions and cities, and 148 units from central party, government, military and civilian sectors. Premier Li Keqiang presided over 3 symposiums, taking suggestions from democratic parties, principals of All-China Federation of Industry and Commerce, patriots without party affiliation, experts, scholars, business communities, people from sectors including education, technology, culture, health care and sports, and grassroots' representatives.

For example, the head of Institute of Economics of Chinese Academy of Social Sciences, Gao Peiyong, put forward to cut taxes and costs. Dean of National Institute of Financial Research, Tsinghua University and former Deputy Governor of China's central bank, Zhu Min, proposed that finance should return to the source and return to the real economy.

Via above channels, a total of over 1,270 pieces of advice has been collected. After the review of the drafting team, over 300 pieces was adopted.

What's more, public-opinion survey was carried out online jointly by www.gov.cn and Xinhuanet, titled by "send a message to Premier". The drafting team read and screened online suggestions concerning housing and supporting the elderly and reflected those concerns in the government work report.

The work report go through thousands of discussions, deliberations and modifications before it is finalized. The preliminary draft of over 20,000 Chinese characters is condensed to the final version of 18,000 which embodies the consensus across the country and crystallizes people's wisdom and support.

Focus on economy

Structural adjustment sped up while innovation drive was enhanced

NBD: China's economy expanded at 6.7 percent last year. What do you think about the growth rate?  

Liu Yingjie: We got off to a flying start, fulfilling major goals related to economic and social development. The Chinese economy maintained stability and showed a positive trend in the year, with GDP growth remaining at 6.7 percent in the first three quarters and 6.8 percent in the fourth. 

With an overall economic growth rate of 6.7 percent for 2016, China ranked high among major economies around the globe. The US' economy grew by 1.6 percent, the eurozone's at 1.7 percent, and Japan's at 0.75 percent. In contrast, Russia's shrank by 0.8 percent, and Brazil's saw a 3.3 percent drop. In India, economic activities were also buoyant, with growth being 6.6 percent.

Last year, China accounted for more than 30 percent of the world's economic growth, being the biggest growth engine.

NBD: Could you kindly share with us highlights of China's transformation, upgrading, and structural adjustment in 2016?

Liu Yingjie: Accelerated structural adjustment was one of them and showed three features: first, steadily growing spending. Last year, China's consumer spending rose 10.4 percent, becoming the biggest contributor to the country's economic growth and showing huge potential for further growth. 

Second, the growth of the service industry. In 2016, the proportion of the service industry in GDP rose to 51.6 percent, while that of the primary industry slipped to below 10 percent, poised to fall further. 

Third, the rapid rise of the high-tech industry. Compared with general industries, high-tech and strategic emerging industries grew at a faster pace. 

Last year, China also promoted the structural reform on the supply side to cut excessive production capacity, especially in the steel industry. The country slashed outdated steel capacity by more than 65 million tonnes and coal capacity by more than 290 million tonnes. Employees that transferred or shifted to new posts have been properly relocated. 

At the same time, new growth drivers were developed to bolster the Chinese economy. In the year, significant achievements were made in terms of scientific and technological innovation, including the automated docking between the Shenzhou 11 manned spacecraft and orbiting Tiangong-2 space lab and the launch of the pioneering quantum-communication satellite. Furthermore, new industries and new forms of business experienced fast development. For instance, China has become the largest new-energy vehicle and smartphone manufacturer as well as the largest buyer of robots. E-commerce and mobile payment achieved substantial growth as well.  

NBD: Regarding this year's macroeconomic operation, what kind of risks do you think should we pay attention to? 

Liu Yingjie: Every year's government work report includes predictions for economic development. This year, uncertainties will increase due to rising contradictions at home and abroad, increasing risks, and reemergence of deglobalization and protectionism. 

The government work report also analyzes difficulties and problems facing China's economic and social development, including insufficient internal impetus and totally different performance of different regions. Attention should also be given to economic and financial risks.

Despite challenges, we have confidence to move forward steadily, as we have strong source of funding, huge market, outstanding technologies, and sufficient infrastructure. For macroeconomic regulation and control, we have a lot of policy tools, including positive financial policies and prudent monetary policies. 

We are upbeat about China's economy. We are able to maintain economic growth within a reasonable range and keep the strong growth momentum amid challenges. 

Reform Taking Effect

Invigorating the private ownership economy

NBD: How to continuingly boost the supply-side structural reform continue while ensuring China's economy maintain in a reasonable range?

Liu Yingjie: This year, we will continue to vigorously promote the supply-side structural reform, in particular, focusing on cutting excessive industrial capacity, destocking, de-leveraging, lowering corporate costs and improving weak links. We will further consolidate the results achieved on the basis of last year, and further promote the destocking of steel and coal. This is an important task.

In terms of destocking, the main focus is destocking real estates in third and fourth tier cities. At the same time, efforts should be put into vigorously promoting the shantytown transformation, which is also a focus this year.

In terms of lowering corporate costs, we will take more effective measures, particularly further increase the range of tax cuts, and benefit enterprises.

In terms of improving weak links, the most important thing is the poverty alleviation. The precision poverty alleviation measures will be continuingly implemented this year, and efforts will be put more than before.

NBD: How will the reforms of some key fields progress?

Liu Yingjie: For fiscal and taxation system reform, It should further expand the reform program to replace the business tax with a value-added tax. For Financial reform, it is very important to better serve the real economy, and to solve the financing difficulties for the small and medium enterprises. While promoting the reform of state-owned enterprises, we must also invigorate private ownership economy and strengthen the protection of property rights system.

In addition, the work concerning agriculture, countryside and farmers should be further promoted. We need carry out the spirit of "the first document" by the central government, deeply facilitate the agricultural supply-side reform, the rural land system reform, the grain purchasing and storage system reform. We need strengthen the rural infrastructure construction, including rural roads, power grid improvement and Information infrastructure, etc.. We need put more efforts to rebuild or renovate the rural dilapidated housings.

In terms of opening up, China is to host the "Belt and Road" international cooperative summit. Based on the "Belt and Road" Initiative, China will speed up the pace of building a new system of open economy. In the field of opening up, we need take a series of new initiatives, particularly to reduce access restrictions to facilitate the inflow of foreign investment, and foreign-funded enterprises will be assured a level playing field in their competition with local players.

In terms of environmental protection, China requires to continue reduce pollutions, in particular, to put more effort to reduce air pollution, and it is an important task this year.

In terms of improving the livelihood of the people, China will further raise the employment rate, in particular for college graduates. It will promote education reform, especially the comprehensive reform of the college entrance examination, research and formulate modernized education planning. These are all pragmatic measures.

In terms of the medical field, we must effectively solve the highly concerned issues, including raising health insurance subsidies and reimbursement ratio. We will carry out medical joint pilot, continuingly improve the retirement pension standards. We will also establish the basic living security coordination mechanism, and take care of the underprivileged people.

 

Email: gaohan@nbd.com.cn