Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Individual and Private Economy and Other Non-Public Sectors of the Economy
Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Individual and Private Economy and Other Non-Public Sectors of the Economy
Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Individual and Private Economy and Other Non-Public Sectors of the Economy
Guo Fa [2005] No. 3
February 24, 2005
It is the basic economic system for the early stage of socialism of our country to keep public ownership as the mainstay and allow diverse forms of ownership to develop side by side. While unswervingly consolidating and developing the public sector of the economy, there should also be unswerving efforts to encourage, support and guide the development of the non-public sector of the economy, so as to have them promoted mutually and developed together in the process of socialist modernization, which is the basic guidelines that shall be adhered to for a long period of time, and a necessary requirement for perfecting the socialist market economic system and building the socialism with Chinese characteristics. Since the opening to the outside world, the individual economy, private economy and other non-public sectors of the economy have developed and expanded continuously, and have become a vital component part of the socialist market economy and an important propeller of social productive forces. To actively develop individual economy, private economy and other non-public sectors of the economy is conducive to invigorating urban and rural economy, increasing fiscal revenue, expanding social employment, improving the living standard of the people, optimizing economic structure, and promoting economic growth, and it has great strategic significance to build a moderately prosperous society in all aspects and accelerate the process of socialist modernization.
To encourage, support, and guide the development of the non-public sector of the economy, we shall be guided by the Deng Xiaoping's Theory and the important thoughts of "Three Represents", implement in all aspects a scientific outlook on development, earnestly carry through the guidelines and policies determined by the Central Committee of the Communist Party of China, further liberate thoughts, deepen reform, remove the institutional barriers that restrict the growth of the non-public sector of the economy, and establish the equal status of market players so as to realize fair competition; we shall further perfect state laws and regulations and policies to protect the lawful rights and interests of enterprises in the non-pubic sector of the economy and their employees; we shall strengthen and improve monitoring and services of the government for them, so as to create a better environment for the development of the non-public sector of the economy; we shall guide the enterprises in the non-public sector of the economy to conduct management and operation according to law, be honest and in good faith, improve management and quality and level of their development continuously, so as to promote the sustainable and healthy development of the non-public sector of the economy. Therefore, we hereby put forward the following opinions:
I. Market access for the non-public sector of the economy should be more liberalized.
1. The principle of equal access and fair treatment shall be implemented. Non-public capital should be allowed to enter industries and fields not forbidden by laws or regulations. The domestic non-public capital shall be allowed to enter those industries and fields, which any foreign capital is allowed to enter, with the relaxing of such requirements as those on the proportion of equity. Enterprises in the non-public sector of the economy shall be treated on an equal footing as the enterprises of other ownership with the same kind of preferential treatment in such aspects as investment approval, financing service, finance and taxation policies, land use, foreign trade, and economic and technological cooperation. For matters that shall be subject to examination and approval, authorization or archival filing, the government departments shall make open the corresponding systems, conditions and procedures. The relevant departments of the state and the local people's governments shall complete as soon as possible the work for the cleanup and revision of the laws, regulations and policy provisions that restrict the market access of the non-public sector of the economy. Foreign-funded enterprises shall implement the provisions of the relevant laws and regulations accordingly.
2. Non-public capital is allowed to enter the monopolized industries and fields. The reform in the monopolized industries shall be speeded up to introduce market competition mechanism in such industries and fields as electric power, telecommunications, railways, civil aviation, and oil. And the multi-investors shall be positively pushed on to allow non-public capital to enter the inherent monopolized business in the aforesaid industries and fields by equity participation and other ways; and non-public capital may also enter other businesses by such ways as sole proprietorship, joint venture, cooperation, and project financing. Under the precondition of unified planning by the state, and unless otherwise specified by any state law or regulation, enterprises in the non-public sector of the economy that have the qualification are allowed to obtain the prospecting right and the mining right on mineral resources on equal basis according to law, and non-public capital is encouraged to carry out commercial survey and development on mineral resources.
3. Non-public capital is allowed to enter the fields of public utilities and infrastructure. The improvement of government franchising system shall be speeded up to regulate acts of bid invitation and tendering, and support non-public capital to actively take part in the investment, construction and operation of such municipal public utilities and infrastructure as urban water supply, gas supply, heat supply, public traffic and sewage and rubbish disposal. Under the precondition of regulating the transfer acts, the property right or management right of any public utility or infrastructure project that has conditions may be transferred to enterprises in the non-public sector of the economy. Enterprises in the non-public sector of the economy are encouraged to participate in the reform of the property right system and ways of management of enterprises and institutions of municipal public utilities.
4. Non-public capital is allowed to enter the field of social undertakings. Non-public capital shall be supported, guided and regulated to invest in such not-for-profit and for-profit fields as education, scientific research, health, culture, physical training and other social undertakings. At the time of opening market access, the supervision by government and society shall be strengthened to maintain public interests. Non-public economy shall be supported to participate in the reorganization and restructuring of public institutions of social undertaking. And non-public economy shall, through taxation and the relevant policies, be encouraged to contribute money or donate to social undertakings.
5. Non-public capital is allowed to enter finance service industry. Under the precondition of strengthening legislation, regulating access, supervising strictly and effectively preventing financial risks, non-public capital is allowed to enter regional stock banks and cooperative financial institutions. Any enterprise in the non-public sector of the economy that meets the relevant requirements may, as a founder, establish an intermediary financial service institution. Any enterprise in the non-public sector of the economy that complies with the relevant conditions is allowed to take part in the reorganization and restructuring of such financial institutions as banks and securities and insurance institutions.
6.
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