China to advance major programs in 14th Five-Year Plan to harness key role of effective investment

BEIJING -- China will advance the implementation of major programs set out in the Outline of the 14th Five-year Plan, to better tap the key role of effective investment, the State Council's executive meeting chaired by Premier Li Keqiang decided on Wednesday.

The major programs span a series of key areas, including scientific and technological advances, infrastructural facilities, environmental protection, people's livelihoods and cultural heritage, among others. Competent departments across the country have made sound preparations and concrete support policies. A great majority of the programs have kicked off.

Given the much uncertainty and instability in the environment at home and abroad, the meeting stressed the need to steer clear of massive stimulus, maintain the continuity and stability of macro policies and make them more targeted.

"The major programs identified in the Outline of the 14th Five-year Plan are of strategic, fundamental and pace-setting importance. The government needs to make inputs, and the role of private sector also needs to be better leveraged in the course of implementation," Li said.

"We need to see that these major programs serve the purpose of driving sustained and healthy economic and social development."

The meeting called for adhering to the law of economics and market principles, and adopting a multi-purpose approach in pushing forward the major programs, to strengthen foundation, increase functions, produce long-term benefits, improve livelihoods and avert risks.

Solid preliminary work will be carried out. The programs in the 14th Five-year Plan will be translated into and delivered through specific projects. The projects will be incorporated into sectoral plans on a priority basis and backed with well-informed implementation arrangements. The projects will be pushed forward year by year in a well-planned manner, to forge a positive cycle among projects planned, projects commenced and projects completed.

Timelines will be specified for single major project. Package projects that are great in number and cover wide-ranging sectors will be advanced with clear focuses and in a results-oriented manner. For major programs with high construction challenges and environmental requirements, in-depth work will be carried out on exploration, selection of solutions and feasibility studies.

Policy support and the supply of factors of production will be scaled up around the major programs. The investment intensity for this year and the next will be well calibrated and fine-tuned as needed in light of changing circumstances.

"Last year, economic growth was mainly driven by tax and fee cuts, and support for market entities. This year, while effectively tapping the fundamental role of consumption, the key role of effective investment will be better brought out. Efforts will be made to coordinate medium- and long-term development and this year's economic operation, and advance the major programs in an orderly way, to keep the major economic indicators within the proper range," Li said.

Reform of government functions will be deepened to improve the approval and verification procedures and cut unnecessary approval requirements, so that projects can get an early start and funds be used most efficiently.

The catalytic role of government investment, such as central budgetary investment and local government special-purpose bonds, will be further leveraged. Market entities and private players will be fully mobilized to play their part in the implementation of the major programs.

Supervision and coordination will be strengthened. Local authorities that take solid measures and achieve notable results will receive greater incentives and support, while those who fail to deliver in advancing the projects will be subject to closer supervision. Problems in project development will be addressed promptly. Oversight will be strengthened to ensure project quality.

"A good balance between the role of the government and that of the market will be developed. The government is responsible for making the plans while actual implementation needs to rely much on market entities and private players," Li said.

"In drafting project plans, we need to leave room for possible adjustments as called for by the evolving situation," he said.