Foreword
Overview Historical Choice of China in Transition /3
I. The period up to 2020: Last “window of opportunity" for economic transition /4
II. 2020: General trend of economic transition and upgrading /9
III. 2020: Forming a service-oriented economic structure / 15
IV Adapting to and leading the new normal with the service sector as the leading force / 18
V. The 13th Five-Year Plan: tough fight of reform centering on transition innovation / 21
Chapter I From Made in China to Created in China / 35
Section I Grasping the general trend of industrial transformation and upgrading / 36
I. General trend of energy Internet revolution / 37
II. General trend of manufacturing digital revolution / 40
III. General trend of manufacturing service revolution / 45
Section II Coping with challenges of the times in industrial transformation and upgrading / 47
Reshaping the new competitive advantages of manufacturing / 47
promoting green transformation / 49
IV. Implementing the innovation-driven strategy / 51
V. Renovating and improving traditional industries / 53
Section III Realizing deep integration of industry and services / 54
IV. substantially improve the producer service level / 54
V. realizing manufacturing informationization and service orientation / 56
VI. promoting the global arrangement of manufacturing / 57
VII. The 13th Five-Year plan: complete upgrading from Industrial revolution 2.0 to 3.0 / 58
VIII. The 13th Five-Year plan: laying an important foundation for Industrial revolution 4.0 / 60
Section IV Important tasks of promoting the industrial transformation and upgrading / 63
Transforming the traditional industries with big data, cloud computing, Internet of things and mobile Internet technology / 63
Improving the strategic emerging industries with integration and development of new energy and Internet as focus / 65
promoting development of smart manufacturing based on domestic market demands / 68
supporting advanced manufacturing industry to “go global” / 71
promoting innovation-driven upgrading of industrial parks / 73
promoting reform of enterprise organization / 76
Chapter II From scale urbanization to population urbanization / 81
Section I 2020: To set up new pattern of population urbanization / 82
Urbanization is still the biggest dividend of China’s development / 82
From population urbanization to people-centered urbanization / 87
A major task under the 13th Five-Year Plan: to form a new pattern of population urbanization / 88
Second II Promote equalization of public resource allocation among cities of different sizes / 90
VI. Promoting coordinated development of cities of different sizes through equalization of public resource allocation / 91
VII. promoting population urbanization by equalizing allocation of public resources / 95
Section III From population urbanization to urban and rural integration / 98
IX. propelling urban-rural integration through population urbanization / 98
X. “Equal marketing and same price based on same ownership or use right” for urban and rural land for construction / 101
XI. integration of urban and rural social security systems / 104
IV. Unified policy on “second child” in urban and rural areas / 108
Section IV Promoting coordinated development of population urbanization and smart cities / 112
Developing smart cities to improve comprehensive bearing capacity of urban areas / 112
promoting reasonable layout of cities of different sizes through construction of smart cities / 114
promoting modernization of urban administration through construction of smart cities / 115
Chapter III From material consumption to service consumption / 119
Section I Time features of the upgrading of consumption structure / 120
Upgrading from survival-oriented consumption to development-oriented consumption / 120
Upgrading from material consumption to service consumption / 123
Upgrading from traditional consumption to new-type consumption / 127
Section II 2020: To be a country with great consumption power / 128
i. Upgrading of consumption structure leads to huge consumption potential / 129
VIII. Consumption structure upgrading to become major driving force for economic transformation and upgrading / 132
IX. 13th Five-Year Plan: prospect of growth driven by consumption / 134
Section III 13th Five-Year Plan: To Promote Consumption-driven Economic Transformation / 137
XII. Innovation of consumption supply / 138
XIII. Accelerating investment transformation / 141
XIV. Improving consumption environment / 145
Chapter IV From industry-dominant toward service industry-dominant economy / 151
Section I Developing from a big industrial country to a big service industry country / 152
I. Industrial transformation and upgrading vs. Transition to a big service industry country / 152
II. Urbanization transformation and upgrading, and the road to a big service industry country / 154
III. Consumption structure upgrading, and the road to a big service industry country / 155
Section II Establishing a service industry-dominant economic structure by 2020 / 157
Enabling service industry to account for above 55% in GDP / 157
Service industry maintains a two-digit growth / 160
Service industry’s scale tends to re-double / 161
Continuous optimization of service industry’s structure / 162
Section III Leading the economic new normal with service industry as the dominant force / 165
To form a new normal of 7% growth / 165
Forming the new normal for continuous expansion of job opportunities / 167
Forming the new normal of mass entrepreneurship and innovation / 171
iV. Creating a new normal for gradual optimization of interest structure / 173 V. Forming new normal for green growth and green transformation / 177
Chapter V Emancipate the service industry market / 181
Section I From releasing entry limits to opening up market / 182
X. Releasing entry limits for the service market / 182
XI. speeding up the opening-up of service industrial market / 184
XII. Challenges for opening up the service market / 187
Section II Speeding up the opening-up of service markets with the focus on breaking monopoly / 189
XV. social capital becomes the major force for the development of service market / 189
XVI. Breaking the administrative monopoly of service market / 191
XVII. opening up the public service market / 193
iV. streamlining the pricing system for service market / 195
Section III Accelerate the formation of the institutional environment for innovation and entrepreneurship in service industry / 196
i. support the innovation and entrepreneurship in sMEs / 197
Promote the innovative transformation of traditional large enterprises / 199
Comprehensive implementation of the Independent Registration System for service Enterprises / 202
Strictly protect service industry’s 丨PRs / 204
Section IV Accelerate the policy adjustment in service industry / 206
Adjust land policies for service and manufacturing industries / 206
Achieve the equal competition between service and industry in the aspects of water, electricity, gas and other resources / 207
I. Achieve equal talent policies for services in and out of governmental institutions / 208
Achieve the equal purchasing policy of services inside and outside the system / 209
Chapter VI Cracking the nut of structural reform / 213
Section I Structural reform is the “tough nut” in economic transformation and upgrading. / 214
XIII. The increased structural and systematic contradictions of economic transformation and upgrading / 214
XIV. The effectiveness of macroeconomic policies depends on structural reform / 217
XV. 13th Five-year plan: economic transformation and upgrading forces structural reform / 220
Section II Public financial system calls for innovation / 224
XVIII. Increase basic public services expenditures / 224
XIX. Establish public service-orientated central and local finance and tax relationship / 227
XX. Create stable tax sources for local governments / 231
Section III Tax structure calls for optimization / 233
IV. Further enact structural tax reduction / 233
V. promote tax reform in an all-round manner / 236
VI. promote taxation normalization and fee reduction and elimination / 238
VII. Cancel unreasonable preferential taxes / 241
Section IV Speed up the financial system reform / 242
Focus on the Development of small and medium-sized banks / 242
promote the market-based reform of interest rates / 244
Adjust and Perfect the Capital Market / 246
Section V Adjustment of the education structure / 248
The adjustment of the education structure is urgent / 248
The development of modern vocational education is a great strategy / 250
speed up the popularization of compulsory pre-school education and senior high school education / 253
Adjust the structure of higher education / 254
Chapter VII Boosting the progress of building a service trade power / 259
Section I OBAOR Strategy—Accelerator for being a service trade power / 260
XVI. OBAOR strategy is the overall controller for the opening-up at the new stage / 260
XVII. OBAOR strategy leads upgrading of opening-up / 263
XVIII. OBAOR strategy coordinates bilateral and multilateral cooperation / 265
XIX. OBAOR to boost the progress for a service trade power / 266
XX. 2020: To form a new pattern of service trade power / 271
Section II New pattern of FTAs to focus on service trade / 274
XXI. Speed up the building of an upgraded version of China - ASEAN Free Trade Area / 274
XXII. To promote bilateral and multilateral FTA process / 277
XXIII. To achieve new breakthroughs in border opening-up / 279
Section III Strategic tasks of establishing a powerful nation in terms of service trade / 280
Trade in services as a strategic focus of bilateral and multilateral free trade / 281
To break the barriers to trade in services / 284
To boost service enterprises “going global” / 287
To strive for the dominant right in the formulation of international trade rules / 290
Chapter VIII Deepening governmental reform with the focus on streamlining administration and instituting decentralization / 295
Section I Comprehensive implementation of negative list management / 296
XXI. Breakthrough need for governmental transition with negative list management implementation / 296
XXII. Comprehensive trend of negative list management from the central to local levels / 299
XXIII. Make and implement rights list and liability list for all levels of government / 302
Section II The 13th Five-year Plan: establish uniform and efficient market supervision system / 303
XXIV. Transform from an administrative examination and approval base to a rule of law base / 304
XXV. realizing strict separation of administrative examination and market supervision functions / 306
XXVI. Establish comprehensive and powerful market supervision agency / 309
XXVII. Develop effective force of government supervision, industrial self-discipline and social supervision / 311
Section III “13th Five-year Plan” : Comprehensively Advancing Government Purchasing of Public Services / 313
VIII. Putting Public Services in Government Purchasing Scope / 314
IX. Promoting socialization and marketization of public resources allocation / 315
X. Aiming at public welfare and promoting social organizations to transform and reform / 317
Section IV The 13th Five-year plan: major task of building law- abiding government / 320
Promoting legalization of governmental functions / 320
Promoting legislation of administrative procedures / 323
realizing legalization in the establishment of institutions / 324
Section V The 13th Five-year Plan: Leading government development concept of a new normal economy / 327
Transiting from gross expansion model and pursuing equity and sustainability / 328
Formulating mid-and-long term strategies for economic transformation and upgrading / 329
iii. Need for bottom line thinking in social transformation / 330
iV. reforming legal thinking on governance transformation / 332
