China to improve 'economic designing' for reform

08:31, March 21, 2011      

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Beijing has vowed to do a better job in choreographing reform plans at the central level to strengthen China's manufacturing power and international competitiveness.

Li Keqiang, China's first deputy prime minister, and Zhang Ping, minister in charge of the National Development and Reform Commission, told China's Development Forum in Beijing on Sunday that the Central Government in Beijing will do more in designing a detailed and practicable scenario for economic restructuring that fits the country's conditions and upgrades its technological level of the enterprises.

Analysts have predicted that China has pinned hope on working on a carefully charted reform roadmap to shorten the distance of China's manufacturing and research and development of its firms with their world peers, and bring China's manufacturing to a higher ladder to compete with the advanced countries.

For an example, the country will spend more on nurturing high-tech industries including new energies, like wind turbines, and jumbo planes, new-generation telecommunication equipments and new medicines and chemicals.

For that purpose, the government has planned to spend 15 percent more on education.

It will also increase investment on social security and building budget homes this year to improve the daily lives of its people, Finance Minister Xie Xuren said.

The country will continue its proactive fiscal policy and push tax reform to ease the financial burden of low-income earners, Xie said during the China Development Forum 2011 held in Beijing yesterday.

The central government's budget for education, health care, social security, employment, budget homes and culture will total 1.05 trillion yuan (US$160 billion) this year, an annual rise of 18.1 percent, according to Xie.

"China will spend two thirds of its central budget on improving people's livelihoods if one takes into account other sectors like agriculture infrastructure construction, water conservation, public transportation and environment protection," Xie said.

The central government's budget totaled 5.436 trillion yuan this year, a rise of 12.5 percent from last year's. China will continue with its proactive fiscal and sound monetary policy and also encourage tax reform, Xie said.

The State Council, or Cabinet, may raise the minimum income threshold for personal income tax and adjust tax rates, although it didn't reveal an official timetable for the changes or details.

Recent media reports said the minimum threshold may be raised to 3,000 yuan or even more from 2,000 yuan.

"It's a long-term national strategy to lift domestic consumption," Zhang Ping, head of the National Development and Reform Commission said at the forum.

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