China issues first public services plan

The State Council has issued the first national plan for China’s public services， the country’s top economic planning agency said on July 18， Xinhua News Agency reported.

The government will intensify its efforts to improve basic public services and promote equal access to these services for all people during the 12th Five-Year Plan period (2011-15)， the National Development and Reform Commission said.

Establishing a basic public services system will help protect the people’s interests， accelerate the country’s economic growth and boost domestic demand， the NDRC said.

The government will specify the range of basic public services in the plan， including public education， labor and employment services， social insurance and basic housing services.

The government will channel more social resources toward rural areas， poor regions and vulnerable social groups in order to ensure that all people have equal access to basic public services， the NDRC said.

In addition， the government will give full play to market mechanism in providing public services and encourage social forces to meet the rising demand for such services， the NDRC said.

China reiterates prudent monetary policy for 2012

The central bank reiterated on July 13 that the country will continue to implement a proactive fiscal policy and prudent monetary policy in 2012， a Xinhua report said.

The statement was released by the People’s Bank of China after data showed that growth in the world’s second-largest economy slowed for a sixth quarter， rising 7.6 percent year on year during the April-June period.

China’s economy is facing a complicated environment both at home and abroad and the government’s macroeconomic regulations are challenged by increasing dilemmas， the central bank said， citing the downward pressure on economic growth and lower profits for some companies.

The central bank vowed to enhance the role of finance in supporting the real economy and beef up services to boost demand and the development of small enterprises.

The country will move ahead with interest rate reforms and step up efforts to develop a market-oriented benchmark interest rate system， it said.

It also pledged to improve the exchange rate formation mechanism for the yuan and maintain the basic stability of the currency while expanding the currency’s use in crossborder trade settlement and investment.

To stabilize economic growth， the central bank in July announced cuts in benchmark interest rates for the second time in a month this year.

It has also cut the reserve requirement ratio — the amount of cash banks are required to hold as reserves — three times since November to bolster the economy.

China pledges to help private firms invest abroad

China pledged to help private companies invest abroad while guiding and regulating their investment activities on July 3， Xinhua reported.

The country will strengthen macro guidance on private companies’ overseas investment and help them invest in a step-by-step and focused manner， according to a statement jointly issued by 13 central government departments， including the Ministry of Commerce and the People’s Bank of China.

The nation will increase financial support to private companies and simplify customs clearance procedures， the statement said.

Private companies which have invested abroad are asked to abide by local laws and regulations， respect local social customs， protect the interests of their employees and fulfill social responsibility， according to the statement.

These companies are also encouraged to strengthen coordination and cooperation among each other to prevent disorderly and “malignant” competition.

China halves rare earth mining rights

China， the supplier of 90 percent of the world’s rare earths， cut mining rights for the materials by about half to 65 nationwide to help the industry consolidate and create bigger producers， according to China Daily.

Rare earth mining rights in Ganzhou， Jiangxi Province， were reduced to 44 from 88， Chen Zhanheng， deputy secretary-general of the China Rare Earth Industry Association， said on July 16. The southwestern province of Sichuan had its rights lowered to seven from 18， while the Inner Mongolia-based Baotou Iron Steel Group Co absorbed its local rivals， the Ministry of Land and Resources said on its website， without giving details.

The United States， the European Union and Japan complained in March to the World Trade Organization about China’s limits on exports of rare earths， a group of 17 chemically similar elements used in wind turbines and hybrid cars.

China to boost distribution industry

The State Council， or the central government， announced on July 11 that it will boost the development of the nation’s distribution industry with the goal of establishing a modern goods distribution system that is efficient， competitive and open， Xinhua reported.

The process of speeding up the sector’s development should be oriented toward providing greater convenience and boosting public consumption， as well as ensuring the quality of products and improving efficiency in the sector， according to a statement released after an executive meeting of the State Council presided over by Premier Wen Jiabao.

The distribution industry includes multiple sub-sectors， including wholesale， retail and logistics.

The statement said the country will construct major distribution networks， optimize the structure of the sector in urban regions and increase the number of service branches in rural areas so that farm produce and industrial goods can move smoothly between cities and the countryside.

Innovation should be pushed forward in creating new mechanisms that can integrate the production and sale of farm produce， the statement said.

The government will also support the construction and renovation of related infrastructure， according to the statement.

It added that the government will encourage private investment in distribution， as well as more work to remove regional protectionism in the sector.

Authorities will also work to bring down costs by regulating fees for the transportation of farm produce and eliminating other improper fees.

Pricing policy favors private investment

China’s top economic planner said on July 5 it will offer preferential energy and water prices to encourage private investment in public utilities projects， according to Xinhua. The government will “implement supportive price policies for public utilities， such as urban water and gas supply and heating， low-income housing， railway and medical care， to fully mobilize the initiative of private capital entering those areas，” the National Development and Reform Commission said in a statement.

This will be done through deepening reforms of the pricing mechanisms for electricity， natural gas and water supply， the NDRC said.

It also vowed to take more forceful measures to reduce or exempt fees and charges on enterprises， regulate the pricing of financial services and make pricing and charging information more transparent to provide a better environment for private firms.

The move， part of government efforts to spur a slowing economy， came after the country opened its gates to private capital in State-dominated sectors including transport， finance， insurance and low-income housing in recent months.