NEWSLETTER Issue V of 2015

China unveils proposals for formulating

nation's five-year plan

The Communist Party of China (CPC) on Tuesday issued the full text of proposals for mapping out a blueprint for China's development over the next five years starting 2016.

The document, the CPC Central Committee's Proposal on Formulating the Thirteenth Five-year Plan (2016-2020) on National Economic and Social Development, was adopted at the Fifth Session of the 18th CPC Central Committee which ended Oct. 29.The following are the points highlighted by China Daily:


The principle of comprehensively strictly governing the Party should be upheld and the rules as well as discipline of the Party must be observed, according to the full text of the proposal.

The document pledged efforts to cement the achievements made in the anti-corruption campaign and tightened supervision and checks over power, in addition to working out an effective mechanism that would stem corruption.


One of the tasks in the five-year plan is to increase the urbanization ratio based on the number of registered residents. That ratio is expected to reach around 45 percent by 2020.

Poverty relief

Chinese President Xi Jinping said the country is able to deliver its poverty alleviation target set for 2020, according to a statement issued Tuesday by the Communist Party of China.

The CPC on Tuesday reiterated its determination to fight against poverty, pledging to step up financial support to impoverished areas in the next five years. The document said ridding the rural population of poverty is the most arduous task for China's ambition to build a moderately prosperous society.

China had 70.17 million impoverished people in rural areas as of the end of 2014, and the government plans to lift all of them out of poverty by 2020.

Income gap

China also aims to narrow the income gap and raise the proportion of middle-income population in the next five years.

Financial reform

China will continue to support RMB's bid for inclusion in the IMF Special Drawing Right(SDR) basket and push ahead with capital account liberalization and the internationalization of RMB, according to the document.

China will accelerate reforms in its financial system to establish a transparent and healthy capital market.


China will continue to open up its economy to attract foreign investment and encourage Chinese firms to make overseas investment.

China will further open up sectors with natural monopoly features for investment over the next five years. Efforts will be accelerated to open up competitive businesses of sectors such as oil, natural gas, electricity, telecommunications, transportation and utilities.

Coastal areas will be given support to participate in global economic cooperation, advanced manufacturing bases and economic zones will be established, and border and cross-border economic cooperation zones will continue to be improved.

In the next five years, China will optimize foreign trade and open wider to the global economy. More will be done to explore innovative models of foreign trade, equipment manufacturing and services.

Military reform

China will speed up reform of the military, aiming to reach its reform target by 2020.

Health system reform

The Party proposed advancing the comprehensive reform of public-owned hospitals, breaking their mechanisms for seeking profits and building a personnel and remuneration system appropriate for the health industry.

It called for optimizing distribution of health resources, improving basic health service, promoting health resources to rural and grassroots level, and developing telemedicine. General practitioners, family doctors and electronic health records should be promoted.

The proposal encouraged private sectors to run health services and vowed to give them the same status as public-owned institutions.

In addition, it vowed to strengthen monitoring of health care quality, improving mechanisms to mediate medical disputes in a bid to build a harmonious doctor-patient relations.

Development fund

China will establish the Green Development Fund to promote clean production mode and sustainable growth.

"Green" development

China will embrace a "green" development model in the next five years, implementing a more exacting environmental protection system to reduce carbon emissions.

The country will continue to develop wind, solar, biomass, water, geothermal and nuclear energy, as well as explore deposits natural, shale and coal bed gases.

Energy-intensive industries, such as power, steel, chemical and architectural material will be subject to carbon emission control regulations.

Cycling and new energy vehicles will also be promoted to encourage a "green" and sustainable lifestyle.


Startup incubators and crowd-funding will be promoted, angel investment and venture capital investment encouraged; government intervention in private companies will be restricted, approvals streamlined, and administrative fees cut. A ubiquitous, fast, mobile information network will balance improvements to the transportation and mail delivery networks.

Green technology, biotechnology, information technology, smart manufacturing, high-end equipment and new energy will be generously supported. The Internet Plus action plan will integrate the Internet with traditional sectors of the economy, and China will lead the world in developing the next generation of Internet. Support for research in fundamental sciences will lead to breakthroughs in sectors such as information technology and aerospace science.

Universities and research institutes will have the liberty to become innovation leaders with greater powers in making decisions on research and funding.

The manufacturing sector will become more flexible, smarter and more sophisticated.

Excess capacity in certain industries will be digested through economic and legal means to improve the market exit mechanism.


The nation will encourage colleges to become application oriented should their conditions suit this, the document said.

In the proposed plan, the CPC is also moving to improve the quality of education and bridge the urban-rural gap, vowing subsidized education for all poor students for the duration of their nine years of compulsory education.

The country will also promote universal education for students of senior high school age, according to the proposals.

The document said the government will remove senior high school education tuition fees for poor students and gradually waive tuition fees for vocational education.

While ensuring nine years of compulsory education is available nationwide, more schools will be built in urban and rural areas and better teachers will recruited to rural schools, according to the document.


Embassy of People's Republic of China

Address: 3505 International Place NW,

Washington DC, 20008


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