Government and Policy

Wen: Reforms should be deepened to transform economy

(Xinhua)
Updated: 2010-10-28 20:57

BEIJING - Chinese Premier Wen Jiabao said China should deepen reforms of resources and factor pricing, fiscal, tax and financial systems in the next five years to facilitate the transformation of economic growth pattern.

Wen made the remarks in his explanation of the Communist Party of China Central Committee's Proposal for Formulating the 12th Five-Year Plan for China's Economic and Social Development (2011-2015).

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Wen made the explanation at the Fifth Plenum of the 17th Central Committee of the Communist Party of China on October 15.

"The overall level of our country's productivity is still not high and there are still many deep-rooted conflicts and systematic obstacles that affect productivity," he said. "(We) must unswervingly push forward reform and opening up."

China should improve key commodities, services and factor pricing systems and speed up building a multi-layer capital market, Wen said. This would help land, capital, labor, technology and information really reflect market supply and demand, resources scarcity and damages on the environment, he said.

The central government would allocate more funds to county-level governments to invest in basic public services and give provincial-level governments the means to appropriately manage taxes, he noted.

China would steadily push forward interest rate reform, gradually achieve the renminbi's convertibility under capital account, and improve foreign exchange reserve's operation and management, stated Wen.

The premier also highlighted the need for government reforms by acknowledging "too much intervention in micro economic agents, relatively weak social management and public services, and frequent corruption in some fields."

The government would boost checks and supervision of state employees and crack-down on corruption, and maintain social equality and justice, he said.

Wen also said the country must open up more to foreign investors and create new advantages for the nation to participate in global cooperation and competition.

In the 2011-15 period, China would enter a new period of equal focus on imports and exports from sole focus on exports and equal importance to adsorbing foreign investment and investing overseas from focusing on attracting foreign capital, he said.

The nation would also be shifting from "more attention on quantity to more on quality," he added.