8 industrial policies intensively launched by State Council in 2016

A slew of industrial policies are intensively launched. Journalist of the Securities Daily finds out that the policies launched this year involve industries like building material, general aviation, salt, medicine, iron & steel, coal and etc. Industry insider holds that China now attaches greater and greater importance to ensure stable growth through industrial policies since industrial policies can help to extend economic cycle and ease the “side effect” brought by macroeconomic regulation to the economy.

These industrial policies are as follows: the Guideline of the General Office of the State Council on Promoting Steady Growth, Structural Adjustment and Effectiveness Enhancement of Building Material Industry released on May 18, the Guideline of the State Council on Promoting Development of the General Aviation Industry released on May 17, the Certain Opinions of the General Office of the State Council on Advancing the Development of Innovative Cultural Products of Cultural Relics Units forwarded on May 11, the Reform Scheme for the Salt Industry released on April 22, the Certain Opinions of the General Office of the State Council on Deeply Implementing Action Plan for “Internet plus Circulation” released on April 15, the Certain Opinions of the General Office of the State Council on Promoting Convenient Transaction of Second-hand Cars released on March 14, the Guideline of the General Office of the State Council on Promoting Healthy Development of the Medicine Industry by released on March 11, and the Opinions of the State Council on Reducing Overcapacity in the Steel Industry to Achieve Development by Solving the Difficulties released on Feb.1.

Analysts express the view that the plenty of influential industrial policies introduced by the State Council in just a few months bring wider development space to various industries. They will help to stabilize growth, adjust structure, propel reform and benefit the people’s livelihood. Reform should be continued in the future to release more benefit, stimulate vitality of various market players and reinforce endogenous economic power.

For instance, the Reform Scheme for the Salt Industry announces that the state will reform the pricing mechanism of table salt by government, ease control over factory price, wholesale price and retailing price of table salt, and decontrol cross-region operation of table salt. Merger & acquisition (M&A) and reorganization of salt producers and wholesaler are also encouraged, and various financial investment subjects are allowed to get involved through different forms and increase capital input in promising enterprises. Thus, a batch of enterprise groups with core competitiveness can be built to lead industrial development. The proposal of reform scheme for salt industry shakes up the state monopoly of the production and sale of table salt and the industry will usher in rapid participation of many other enterprises. However, as the reform deepens and the survival of the fittest intensifies, reshuffle of salt enterprises is unavoidable.

It is proposed in the Guideline of the General Office of the State Council on Promoting Development of the General Aviation Industry to build new general aviation airports, bringing the total number to more than 500 by 2020, and realize seamless connection of surveillance airspace below 3,000 meters and report airspace. Industry insider indicates that the general aviation industry is capital and technology-intensive, sees strong innovation and plays a great leading role. Generally speaking, general aviation in China sees great potential and hopefully can develop into a market of over 1 trillion yuan.