After the Central Economic Work Conference last year, the Jiangsu Provincial Party Committee and Government made arrangements to implement the five major tasks of supply side structural reform. Since the beginning of this year, the provincial party committee and government have placed this work in an important position in economic work and conducted in-depth research and deployment. At present, the ideological understanding of the whole province is highly unified, and the work is promoted effectively and orderly.
One is to accurately understand in a comprehensive grasp of the scientific system.
Secondly, deepen understanding through close integration with Jiangsu's development practices. After more than 30 years of development, the total supply and scale of Jiangsu have reached a relatively high platform. On the basis of achieving the transformation from agriculture to industry and from internal to external, Jiangsu has placed innovation driven development in a more prominent position globally, focusing on promoting the third economic transformation from large to strong. In recent years, the sustained and healthy development of Jiangsu's economy has largely benefited from this. However, in the past, both supply and demand coordination and balance had phased characteristics. Now, the supply and demand relationship has undergone profound changes, and the problem of low quality and efficiency in Jiangsu's supply system is becoming increasingly prominent. The main contradiction in economic development is not cyclical but structural. Promoting supply side structural reform is not only a key measure to resolve the current prominent contradictions, but also a major opportunity for Jiangsu's economy to achieve a nirvana.
The third is to deeply understand within the framework of socialist political economy with Chinese characteristics. On the basis of previous studies, the Jiangsu Provincial Party Committee, in conjunction with the special study and education of "two studies and one action", requires the whole province to firmly grasp several major principles of socialist political economy with Chinese characteristics, and effectively enhance the theoretical and operational awareness of promoting supply side structural reform.
Resolutely implementing the five major tasks of supply side structural reform
Going "is to make room for effective supply, and must be proactive, resolute, and in place; 'Lowering' is to improve the competitiveness of enterprises, and it is necessary to take action, make real efforts, and achieve practical results; 'Supplementing' is to elongate the shortcomings of the supply system, and must be done in weak, critical, and critical areas.
Firmly reduce production capacity. The key industries in Jiangsu Province that have reduced production capacity have added the shipbuilding industry on the basis of the central clear steel, coal, cement, and flat glass. At the same time, it has been determined to withdraw a batch of low-end and inefficient production capacity from other traditional industries such as light industry, textile, printing and dyeing, electroplating, and machinery. During the 13th Five Year Plan period, Jiangsu will reduce its crude steel production capacity by 17.5 million tons; Exit coal production capacity of 8.36 million tons; Exit cement production capacity of 6 million tons; Exit the production capacity of 8 million weight boxes of flat glass before 2018; On the basis of resolving 6.7 million deadweight tons in the previous two years, the shipbuilding industry has resolved an additional 3.3 million deadweight tons this year. We have introduced an action plan to promote international production capacity and equipment manufacturing cooperation, and established a database of industrial investment projects. Develop comprehensive incentive policies to support industries with overcapacity in accelerating the pace of mergers and acquisitions. Seize the timing, pace, and intensity of the clearance of "zombie enterprises".
Accurately implement strategies to eliminate inventory. In response to the regional characteristics of the real estate market, the overall approach to de inventory in Jiangsu Province is to strengthen one responsibility, which is to strengthen the main responsibility of the city and county governments for de inventory tasks; Adhere to two principles, that is, adhere to the principles of classification guidance and implementing policies based on the city; Clarify three paths, namely implementing precise destocking, linkage destocking, and transformation destocking; Highlighting four combinations is the combination of destocking and promoting new urbanization to promote the urbanization of permanent residents, improving the housing security system, promoting supply and demand balance in the real estate market, and accelerating the transformation and upgrading of the real estate industry (iji, net worth, information). The plan is to control the inventory destocking cycle of residential commercial housing in the province within 16 months by the end of this year, and to control the inventory destocking cycle of commercial residential housing in the province within 14 months by the end of 2018.
Stable and orderly deleveraging. Based on the different characteristics of government and enterprise leverage, we adhere to classified and prudent operations, reasonably grasp the pace and speed of deleveraging, orderly reduce leverage ratios, and prevent and resolve various debt risks. In terms of government debt, the scale of Jiangsu's debt is generally compatible with the level of economic development and debt repayment ability, and a batch of high-quality state-owned assets have also been formed. Jiangsu will continue to strictly control the scale of new government debt, arrange debt repayment funds in a planned manner, and ensure that no government debt crisis occurs. In terms of corporate debt, seize the opportunity of capital market reform, leverage the financing function of regional equity trading markets, and vigorously support enterprises to increase the proportion of direct financing, especially equity financing. At the same time, efforts should be made to prevent and control financial debt risks, steadily promote the "breaking the circle and breaking the chain", actively explore the establishment of a green channel for the disposal of non-performing assets, and gradually mitigate potential risks.
Take multiple measures to reduce costs simultaneously. We have issued opinions on cost reduction and proposed 32 measures at the provincial level to reduce costs. We will completely cancel provincial-level administrative fee projects and implement "zero fees" for provincial-level enterprises. This year, we hope to directly reduce the burden on enterprises by 100 billion yuan. At the same time, it is required that all regions make every effort to provide tangible "dry goods" for social supervision, enterprise evaluation, and market inspection. In the first quarter of this year, the cost per 100 yuan of main business income of industrial enterprises above designated size in the province decreased by 0.6 yuan year-on-year. Deepen the reform of the administrative approval system, cancel and delegate some highly valuable administrative approval matters, and strive to reduce hidden costs for enterprises.
Seize the key weaknesses and make up for them. We will focus on key areas such as infrastructure, public services, ecological environment, and modern agriculture, adopt a project-based approach, and initiate the implementation of five major special projects to address shortcomings. We plan to invest 2.1 trillion yuan over the next five years. This year, we will focus on implementing 200 major projects to address weaknesses and ensure an annual investment of 400 billion yuan. Pay attention to the role of social capital, further relax market restrictions, continue to promote and continuously improve new investment and financing models such as PPP, and launch a batch of cooperation projects with good development prospects and strong profit expectations.
In work, we should pay attention to the "five combinations": firstly, we should closely combine the spirit of the central government with the actual situation in Jiangsu, and fully implement the clear tasks proposed by the central government; To creatively implement the guiding opinions of the central government in conjunction with practical situations. The second is to combine the decisive role of the market with the better role of the government, making more use of market-oriented and legal means, while strengthening organizational guidance and policy support. The third is to combine supply side reform with demand side management, while focusing on implementing various tasks of supply side reform, paying attention to moderately expanding total demand. The fourth is to combine promoting reform with stabilizing growth and preventing risks, emphasizing the use of reform ideas and methods to solve problems, while also grasping the pace and intensity of reform, and balancing various relationships. The fifth is to combine solving current prominent problems with improving institutional mechanisms, focusing not only on the implementation of key tasks, but also on establishing institutional mechanisms that are conducive to supply side structural reform.
Taking the construction of "one center" and "one base" as an important lever to promote supply side structural reform
The planning and construction of an industrial technology innovation center with global influence and an advanced manufacturing base with international competitiveness focuses on establishing a modern industrial system, with innovation driven development as the core. The goal is to improve total factor productivity and increase mid to high end supply, which is a necessary and significant measure for Jiangsu to promote supply side structural reform. In the construction of the "One Center", it is planned to form a basic framework system for industrial technology innovation centers after 5 years of efforts, with the main innovation indicators reaching the medium level of an innovative country; After 10 years of struggle, the core function of the industrial technology innovation center area has been formed, becoming an important node in the global industrial technology innovation network, and some innovation indicators have entered the advanced ranks of innovative countries; By around 2035, a globally influential industrial technology innovation center will be fully established. By the end of the 13th Five Year Plan, new industrialization has been basically achieved in the construction of the "One Base", significant progress has been made in the construction of a strong manufacturing province, and several key industries and fields have reached world advanced levels; By 2025, an advanced manufacturing system will be formed that integrates innovative breakthroughs with international standards, intelligent manufacturing with international standards, and product quality with international standards. Total factor productivity will be comparable to international advanced levels, and it will enter the advanced ranks of global manufacturing.
The construction of "one center" and "one base" currently focuses on three aspects: first, strengthening the role of enterprises as the main body. Guide enterprises to root their manufacturing in research and development, especially to optimize and strengthen their research and development institutions, and improve innovation efficiency. In order to guide and support enterprises to participate in the construction of "one center" and "one base", Jiangsu has launched two major plans for upgrading enterprise manufacturing equipment and enhancing internet technology. The second is to vigorously gather innovative resources. Based on the national and global perspective, we will focus on introducing a group of world-renowned research institutions and regional R&D centers of multinational corporations, attracting a group of internationally renowned universities to cooperate in education, and introducing a group of experienced and strong domestic and foreign equity investment institutions to enhance the supply capacity of high-end innovative elements. The third is to promote the integration of industrial chain, innovation chain, and capital chain. Integrate development resources such as scientific research, industry, and capital, focus on deploying innovation chains around the parts of the industry chain that affect core competitiveness, and follow up on the capital chain around the areas where key technologies are formed in the innovation chain.
More than half of Jiangsu's public budget revenue, about 80% of its industrial added value, total import and export volume, and actual utilization of foreign investment come from development zones. The provincial party committee and government guide various development zones at all levels in the province to focus on promoting the "three internationalization" of enterprises, cities, and talents, serving as the main battlefield for the transformation and upgrading of open economy, a ballast for stable economic growth, and a demonstration zone for promoting supply side structural reform.
Since the beginning of this year, Jiangsu has achieved a good start in economic development, structural optimization, and improvement of people's livelihoods. In the first quarter, the province achieved a regional GDP of 1650.9 billion yuan, an increase of 8.3%; General public budget revenue increased by 12.1%; Fixed assets investment increased by 9.3%, of which investment in technological transformation increased by 28.1%; The per capita disposable income of all residents increased by 8.5% year-on-year. This confirms from one side that the central government's decision and deployment on supply side structural reform is completely correct.