Since reform and opening up, China has been making a series of reforms to break up the investment management mode under the traditional planned economic system; and a new pattern with diversified investment modes, multiplicity of capital sources and market-oriented system is taking shape. But the existing investment system also has some problems: especially, enterprises do not have complete decision-making rights over investment and the basic role of the market in allocation of resources is not fully developed. The scientific and democratic level of the government’s decision-making over investment shall be further upgraded and the effectiveness of macro-control measures and supervision shall be enhanced. Therefore, the State Council of China has decided to further deepen investment reform.
(1)The guiding ideologies on deepening investment system reform include fully bringing the basic role of the market in resource allocation into play under the government’s macro-control, positioning main bodies of enterprises in investment activities, setting government standards for investment activities, and protecting the legitimate rights and interests of investors. Other aims include creating a market environment suitable for fair and orderly competition between all types of investors, promoting the reasonable flow and effective allocation of production elements, optimizing the investment structure, upgrading investment efficiency and boosting the coordinated economic development and all-round social progress in accordance with improvements to the socialist market economic system.
(2) Targets for deepening investment system reform include reforming the system of government oversight of enterprise investment and allowing enterprises greater independence in making investment decisions in line with the principle that ‘the investor makes the investment decisions, reaps the profits and bears the risks’ ; rationally defining the government’s investment functions, improving the management of government investment and establishing an accountability mechanism for government investment; further expanding project financing channels and developing a multiple of financing modes; cultivating standard investment intermediaries and strengthening self-discipline and promoting fair competition; establishing a macro-control mechanism for investment and improving control methods and measures; accelerating the legislation process in investment, intensifying investment supervision and maintaining a standard order in investment and construction markets.Â sand maker,Â cone crusher
These efforts will result in a new investment system under which investment is guided by the market, enterprises make their own investment decisions, banks examine creditworthiness independently, various forms of financing coexist, intermediary services are standardized and macro-control is efficient.
(3)Reform of the project approval system and allow enterprises greater independence in…