This year, Li went to great lengths to tackle another bottleneck in tax reform. He conducted field surveys and led relevant departments to institute reform plans that replace turnover taxes with value-added taxes. After Shanghai spearheaded a pilot program, the tax burdens of the local service industry and small enterprises have been largely eased.
A prelude to the much-expected structural tax cut, the pilot program has now been expanded to nine provinces and municipalities as a significant institutional innovation for facilitating economic restructuring, boosting economic growth and improving people's living standards.
Li also led the formulation of China's 12th Five-Year Plan (2011-2015), which provides both overall guidance for the country's future development and specific guidance in nearly 100 areas.
Although Li was familiar with China's agricultural and industrial development as head of Henan and Liaoning provinces, he has gained a broader understanding of China's national circumstances after being put in charge of development and reform, fiscal affairs, urban-rural construction, environmental protection, land and resources and public health for the State Council.
He knows China's potential in economic and social development as well as the opportunities and challenges the country is facing.
To formulate a sound plan, Li conducted field surveys in a number of places and governmental departments, solicited opinions from lower-level officials, industrial experts and entrepreneurs and presided over symposiums to brainstorm plans concerning the tertiary and energy industries.