China’s reform plan for 2014

xi-jinping

On Tuesday 21st of May  China’s top economic planner releases the priorities for economic reforms in China 2014. The plan has already been approved by the State Council.

1) Continue to expand the scope of value-added tax (VAT).

2) Move to regulate financing of local government.

3) A new mechanism of the yuan exchange rate will be developed and volatility of the rate increased.

4) Eligible private investors will be allowed to start financial institutions like small or medium banks and invest in established ones.

5) Reform prices of resource products and in sectors including transportation, telecommunications, pharmaceuticals and health care.

6) State-owned enterprises (SOEs) will move towards mixed ownership through a cooperation mechanism between state and social capital.