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Du Ying: Bring into Full Play the Guiding Role of the Government
to Promote the Sound Development of Industries in Ethnic Regions

Source: CPPCC Newspaper Date: 2014-07-11

Since the launch of the strategy of the development of China’s western region and, in particular, the 11th five-year plan period, with great national support, ethnic regions have enjoyed accelerated development of special competitive industries. But compared with eastern China, especially in the context of mounting downward pressure of our economy, the development of industries in the ethnic regions is confronted with serious challenges and problems.  That is why it is important to enable the market to play a decisive role and at the same time bring into better play the planning and guiding role of the government to support ethnic regions in developing industries in a way that suit their local conditions.

First, capitalize on comparative advantages and support giving priority to ethnic regions in the distribution of major industrial projects. For those energy and resources development and deployment projects that are suitable for processing and transformation in ethnic regions, priority shall be given to ethnic regions. Trans-regional ultra-high voltage power transmission projects and corridor development shall be stepped up and support shall be given to ethnic regions in receiving domestic and international industrial transfer.

Second, take a differentiated approach and implement region-specific industrial policies for ethnic regions. In terms of industries, tax breaks can be provided in the form of negative lists and a differentiated approach be taken in regulating over-capacity sectors. In terms of energy conservation and emissions reduction, target distribution shall lean more toward the ethnic regions and energy consumption counting measures shall be improved. In terms of land, allocation of annual land use plans shall be properly tilted. In terms of prices, we should look at how to support special competitive industries through subsidy policies.

Third, deepen institutional reform and the distribution of resources development interests shall favor ethnic regions. Resources tax reform should be accelerated so as to better reflect eco-cost and the interests of local people in the resources areas. A sharing mechanism shall be explored for the resources areas to participate in water energy and resource development and use so that the localities will be able to share in the revenues on water power VAT rebates. When central enterprises and businesses from eastern China engage in resources development in ethnic regions, they should be locally registered so as to keep the tax revenues local.

Fourth, strengthen environmental protection and step up the establishment of an eco-compensation mechanism. Priority shall always be given to environmental and ecological protection. We should accelerate eco-compensation legislation, implement supporting policies for main functional areas and gradually put in place an eco-compensation input mechanism for private participation.

Fifth, improve development conditions and upgrade the comprehensive capacity of industrial development in ethnic regions. The general transfer payment and various special transfer payments from the central government will continue to favor ethnic regions. The investment subsidy standard and capital injection ratio shall be raised for projects in ethnic regions from national special funds on roads, railway, civil aviation and water conservancy.  We should give active support to industrial technological transformation and innovation and vigorously develop new strategic industries and special industries. We should also strengthen human resources development and attract high-caliber professionals to ethnic regions for entrepreneurship. The opportunities of the Silk Road Economic Belt and Maritime Silk Road Initiatives shall be seized and ethnic regions should be encouraged to take early actions and conduct pilot programs on reform and opening-up policies.