Page 16 - REPORT ON THE WORK OF THE GOVERNMENT

increased remarkably.
We promoted the common development of enterprises under all forms of

ownership.
We upheld and improved China’s fundamental socialist economic systems
and worked unswervingly both to consolidate and develop the public sector and to
encourage, support, and guide development of the non-public sector.

The tasks set out in the three-year action plan for SOE reform were completed
and the modern corporate structure was improved, thus enabling SOEs to upgrade
and restructure their operations so as to focus on their primary responsibilities and
core business and enhance quality and performance.

We promoted the sound development of private businesses by removing
hidden barriers of various forms and ensuring all enterprises received policy
support on an equal basis. This has boosted the confidence of private investors. We
improved the system of property rights protection to safeguard entrepreneurs’
lawful rights and interests and promote the entrepreneurial spirit.

We continued to reform the fiscal, taxation, and financial systems.
We deepened reform of the budget management system and boosted budget
transparency. We advanced reforms to divide fiscal powers and spending
responsibilities between central and local governments and improved the system

for managing local government debt. We established an individual income tax
system based on both adjusted gross income and specific income types and
continued to deepen reform of the tax collection and administration system.
We promoted reform of the financial regulatory system and encouraged small

and medium banks to replenish their capital and defuse risks through reform. We
advanced reforms to implement a registration-based IPO system, refined the
underlying systems of the capital market, and strengthened legislation for financial
stability.

4. We fully implemented the innovation-driven development strategy and
improved and upgraded the industrial structure.
We deepened supply-side structural reform, improved national and local
innovation systems, and boosted self-reliance and strength in science and
technology. We promoted development of the real economy through innovation,

continued to foster new drivers of growth, and effectively countered external
attempts to suppress and contain China’s development.
The leading role of technological innovation was reinforced.

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