China to advance reforms on market-based allocation of production factors

A worker is busy at the workshop of a numerical control machine manufacturing company in the Langfang Economic and Technological Development Zone of Langfang City, north China's Hebei Province, Dec. 25, 2021. [Xinhua/Yang Shiyao]

BEIJING -- China will enhance reforms of the market-based allocation of production factors amid efforts to build a high-standard market system, according to a plan released by the General Office of the State Council.

Efforts will be made to fully leverage the decisive role of the market in resource allocation and give better play to the role of government, says the plan, adding that the institutional obstacles that hinder the free flow of factors will be eradicated.

China will promote market-based allocation of production factors including land, labor and capital, while accelerating the development of the technology market and data factors, it said.

The country will support qualified local authorities to explore reform paths that can be replicated and promoted by the nation, it said.

The country will advance pilot programs for reforms of market-based allocation of production factors in urban agglomerations, metropolitan areas and key cities with urgent reform needs, solid foundation and development potential, it said.

Meanwhile, the number and coverage of pilot programs should be controlled, it added.

By the first half of 2022, work related to the layout of pilot areas will be completed and the drawing of the implementation plan will be submitted for approval, it said.

Phased progress will be achieved in advancing pilot programs and significant breakthroughs in market-based allocation of key production factors are expected to be gained by 2023, it noted, adding that the task of advancing pilot programs will be basically completed by 2025.

Considering the varying development foundations and resource endowments in different regions, existing pilot reforms concerning the allocation of production factors can hardly meet the practical needs of pushing ahead with reform in a coordinated and efficient manner, according to the National Development and Reform Commission (NDRC).

The plan will be conducive to mobilizing the initiatives of local governments, further advancing the reform of the market-based allocation of production factors, and making the reform more systematic, holistic and coordinated, the NDRC said.

To ensure the implementation of the plan and the achievement of practical results in pilot programs, efforts will be made to improve the working mechanism to enhance coordination, urge local governments to fulfill their primary responsibilities, tighten supervision, and provide stronger legal guarantee, the NDRC said.