Route 383 – China’s road to reform

383 Reform Roadmap_EN

China’s 383 Reform Roadmap, as interpreted by the European Chamber. Please click for a larger image.

The direction of China’s reform plan has become more tangible thanks to a roadmap sketched out by an influential government think tank. The full text of this plan has been released to the public in advance of the Third Plenary Session of the 18th Central Committee of the Communist Party of China, which will take place from 9th–12th November.

The Development and Research Centre of the State Council (DRC) task force responsible for drawing up the plans for China’s much anticipated reforms has been led by DRC Chairman Li Wei and National Development and Reform Commission (NDRC) Vice Chairman Liu He. The plan has also benefitted from the participation of several leading senior specialists from the DRC.

Christened the 383 Reform Plan, the report reveals deep-rooted institutional and policy issues that are holding back China’s economic and social development. It states that in order to realise the goal of developing China into a “moderately prosperous society” by 2020 — as set out at the 18th National Congress of the Communist Party of China — significant changes need to take place.

The report advocates the aim of achieving a competitive, socialist market economy driven by innovation and protected by the rule of law; pivotal to this plan is striking the right balance between government and the market. It proposes a transformation of:

  • the market;
  • government; and
  • corporations

and details eight key areas that are in need of reform to facilitate this, namely:

  • Financial reform;
  • Land reform;
  • SOE reform;
  • Administrative reform;
  • Fiscal and taxation reform;
  • Market opening reform;
  • State-owned assets management reform; and
  • Innovation reform and promotion of green industries.

Three comprehensive measures the report proposes for launching this reform programme are as follows:

  • Enhance competition by increasing market access and welcoming external investors.
  • Reform the social security system and create a national basic social security package.
  • Continue land system reform and ensure collective land market transactions.

In addition to the roadmap, the report also provides a three-stage timetable: short-term reform from 2013 to 2014; mid-term reform from 2015 to 2017; and long-term reform from 2018 to 2020.

The report is due to be published in full by Citic Press.