Opinions of the General Office of the State Council on Implementing Several Policies to Accelerate the Development of the Service Sector

Opinions of the General Office of the State Council on Implementing Several Policies to Accelerate the Development of the Service Sector

Guo Ban Fa [2008] No.11

March 13, 2008

To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and all ministries and commissions of departments directly under the State Council:

For the purposes of implementing the demand and instruction of the Central Committee of the CPC and the State Council to accelerate the development of the service sector and to carry out policies and measures described in Several Opinions of the State Council on the Promotion of the Development of the Service Sector (Guo Fa [2007] No.7) as well as promoting the realization of primary objectives and duties of the service sector during the "Eleventh Five-year Planning" period, and upon approval of the State Council, relevant opinions are hereby given as follows:

I. Strengthen planning and industrial policy guidance
1. Step up efforts on developing or amending plans for development of the service sector. The governments of all regions shall, proactively and practically, develop plans for the development of the local service sector and put forward development goals, priorities, and supporting measures in accordance with the primary objectives of the national service sector. The governments of developed areas and regions may properly set higher objectives while major and medium cities shall, if permitted, speed up establishing an industrial structure focused on a service economy. All departments concerned shall step up efforts for developing or amending relevant industrial planning and special planning, and shall improve the development and planning systems of the service sector. Furthermore, the governments of all regions and related departments shall break down and implement the development duties of the service sector into an annual working program. The Development and Reform Commission shall cooperate with relevant departments in urgently studying and developing evaluation systems pertaining to the development of the service sector and regularly announce the development level, structure and other main indicators regarding the service sector of the entire nation and all regions, if appropriate.
2. Study and improve industrial policies as soon as possible. The Development and Reform Commission shall, jointly with all departments concerned, increase efforts in regards to specifying and improving the development and guidelines of the service sector as well as defining industrial development priorities in accordance with provisions pertaining to the national adjustment of the industrial structure in addition to adjusting and perfecting relevant industrial policies according to the category thereof, while eliminating and restricting industrial division, business outsourcing and unreasonable regulations affecting the development of the service sector and gradually establish favorable industrial policies and systems based on expectations of the service sector with a large span and broad scope. The governments of all regions shall, on the basis of current situations and comparative advantages, develop and specify local development and guidelines for the service sector as well as corresponding policies and measures while highlighting local features.

II. Deepen reform of service sector
3. Further relax controls over service market access. In respect to enterprises engaging in the general service sector, administrations for industry and commerce shall reduce the minimum amount of registered capital thereof to RMB 30,000, unless otherwise provided by laws, administrative rules and regulations and administrative permits lawfully established, and study and soften the terms of business sites, qualification of investors, business scope and other aspects. In the case of front-end projects of enterprises engaging in the service sector that are approved and registered found determined to yet not be under stipulation by any laws, administrative rules, regulations and/or the State Council, administrations for industry and commerce shall cease. Strengthen all efforts concerning the reform of railways, telecommunications and other monopolized industries, further promote the investment of subject pluralism, and introduce competition mechanisms. Continue to steadily push forward market oriented reform of urban utilities and entrust relevant enterprises to conduct water, heat, gas supply, sewage disposal and waste treatment by means of franchise. Adjust and relax policies concerning the market entry of financial institutions in rural areas throughout the whole nation and any implementation thereof shall be carried out conscientiously. Departments engaging in education, culture, radio and television, social security, physical education and construction shall, in respect to service, undergo market-oriented operation in all respective fields, step up efforts on studying detailed measures regarding the relaxation of market entry, encourage societal forces and increase supplies.
4. Hasten the reform of state-owned enterprises engaging in the service sector. The State-owned Assets Supervision and Administration Commission shall, jointly with all departments concerned, proactively promote shareholding system reform and strategic reorganization of state-owned enterprises engaging in the service sector, concentrate state-owned assets of the service sector in regards to major public products and service areas, encourage central enterprises and local state-owned enterprises engaging in the service sector to conduct reorganization through equity mergers, replacement, mutual equity participation and other methods, as well as non-public enterprises to participate in said reforms, restructuring and transformation of state-owned enterprises operating within the service sector. Reform of the banking shall be further carried out with an emphasis on shareholding system reform of the Agricultural Bank of China and reform of the China Development Bank. Strengthen the functionality of the Agricultural Bank of China, the Agricultural Development Bank of China, and China Postal Savings Bank to serve agriculture, farmers and rural areas.
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