Beijing makes notable achievement in supply-side reform in 5 years

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The Information Office of the Beijing Municipality held a press conference recently to review the city's achievements made in the supply-side structural reform over the past five years.

Addressing overcapacity, destocking in property market

Beijing is taking a raft of measures to address its huge population, continuing with its fight against air pollution, easing its traffic as well as improving the city's living conditions.

By far, Beijing has completed this year's task of reducing coal and crude steel production capacity by 1.8 million tons and 2.1 million tons respectively, as well as closing down 55 poor-performing "zombie enterprises."

In 2016, Beijing shut down 335 manufacturing and polluting enterprises and 117 commodity markets. Meanwhile, the city has strictly restricted the access of nearly 80 percent of new industries to the city's six downtown districts, and dismissed 16,400 applications of company registration.

In addition, Beijing has been keeping its housing inventory at a low level while destocking continuously. Beijing has also carried out a portfolio of policies on the regulation and supply control of the real estate market, which has effectively contained the previously over-heating market.

Improving public service

The Beijing municipal government has allocated over 90 percent of its fixed assets investment in public services, infrastructure and environment.

The city has accelerated its construction of transportation infrastructure. A total of 574 kilometers of rail transit are in operation, with 285 kilometers under construction. Up to 100 kilometers of bus lane have been added lately. Meanwhile, the city's garbage recycling rate has reached 56 percent, the sewage treatment rate 90 percent, and the forest coverage rate 59.3percent.

Beijing has also enhanced its convenience service for its citizens with 1700 new or improved convenience stores, and escalated its elderly care service with 53 nursing centers and 150 community service stations. Besides, Beijing has increased the supply of low-income housing and housing with small dwelling units.

Innovation-driven economy

Beijing has witnessed active innovation and mass entrepreneurship, which has brought in new technologies, products, industries and business models. In 2016, the number of new technological enterprises in the city increased by 22.4 percent, the total revenue of Zhongguancun demonstration area increased by over 12 percent, the turnover achieved through technology contracts in the city increased by 14.1 percent, and technology contributed to over 60 percent of the economic growth.

Moreover, Beijing's high-end industries have also thrived. Finance, IT and service industry play a significant role in the economy. The service industry contributes over 80 percent to the city's GDP.

Streamlining administration, improving service

Beijing has cancelled or adjusted 74 certificates that the citizens used to need when carrying out health, medical care, housing, employment and school enrollment affairs.

Meanwhile, Beijing has cut taxes worth 17.57 billion yuan in 2016 after replacing the business tax with a value-added tax. Moreover, Beijing is implementing preferential tax policies vigorously. The city helped enterprises reduce 5 billion yuan of social insurance fee in 2016, as it scaled down the rate from 42.45 percent to 41.25 percent.

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