Page 17 - Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development

We must uphold and fulfill our commitments to both the public and the
nonpublic sectors and see that economic entities under diverse forms of
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ownership complement each other and develop side by side. Reform of state
capital and state-owned enterprises (SOEs) should be deepened. To help state
capital and SOEs get stronger, perform better, and grow bigger, we should

refine the layout of the state-owned sector, adjust its structure, and enhance
the core functions and competitiveness of SOEs.
Acting in line with the Private Sector Promotion Law, we should leverage

legal and institutional safeguards to see that all economic entities have equal
access to factors of production and compete in the market on a level playing
field and that their lawful rights and interests are effectively protected. All

this will help the private sector grow bigger and stronger. We should support
the development of SMEs and self-employed individuals and promote
integrated and collaborative development of enterprises of all sizes.

We should strengthen law enforcement and judicial administration to
protect property rights and tighten judicial oversight over coercive measures
such as the sealing, sequestering, and freezing of assets. We should refine the

modern corporate system with distinctive Chinese features and promote
entrepreneurial spirit to foster a greater number of world-class enterprises at
a faster pace.

19. Moving faster to improve the institutions and mechanisms for market-based
allocation of production factors
To promote the efficient allocation of all types of resources and
production factors, we should develop a robust unified market for urban and

rural construction land, a fully functional capital market, a free-flowing labor
market, and a technology market that facilitates efficient industrial

application. A national macro balance sheet should be established to give us a
full picture of existing resources and assets and help us improve asset-liability
ratios. Merger and acquisition, bankruptcy, and replacement policies should
be improved to help put underused land, vacant housing, and idle

infrastructure to better use.
We should refine the laws and regulations for renewing the rights to use

land for industrial and commercial purposes and prudently proceed with
relevant work in accordance with the law. The idle state-owned assets held by
administrative departments and public institutions nationwide should be put

2 We must stay committed to unswervingly consolidating and developing the public sector and
unswervingly encouraging, supporting, and guiding the development of the nonpublic sector.
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