Home > News
ACFIC Proposals in Summary

ACFIC has submitted 29 proposals and six written speeches to the 5th Session of the National Committee of the 11th Chinese People"s Political Consultative Conference, covering seven issues, namely, furthering financial system reform, easing financing difficulties of private firms, improving industrial development policies, promoting new strategic industries, supporting private enterprises" efforts to go global and in-source, guranteeing and improving people"s well-being, and boosting healthy development of chambers of commerce.

The following is a summary ofsome proposals...

1. Guard Against SOE Monopolistic Expansion& NSOE Retreat

"Over the past year or so, while no major improvement was made in the acquisition and merger market in terms of low industry concentration, weak self-initiated innovation and market competitiveness, private enterprises even began to retreat and pull out from some sectors," ACFIC pointed out in its proposal.

-- Establish trans-ministrial merger and acquisition advisory committee to formulate detailed implementation measures to the Views of State Council on Promoting Merger and Acquisition of Enterprises published in August 2010.

-- Enrich M&A channels and tools, adjust existing loan restrictions, widen debt fund-raising sources, expand M&A main body, and allow them to borrow short, medium and long-term loans and set interests through negotiations based on their risks.

-- Cancel or streamline administrative review and approval regarding M&A by NSOEs , enhance transparency of economic safety inspection standards and procedures, and improve anti-monopoly supervision.

-- Formulate a protection system for promoting overseas M&A and investment.

-- Improve the regulations on external management of M&A transactions to guard against risks in M&A overseas and by SOEs.

2. Bolster Development of Small Loan Firms

-- Clarify the legal nature and status of small loan companies;
-- Grant them tax incentives and subsidies comparable to rural credit cooperatives;
-- Remove the financing upper limit for the small loan firms set by the banks;
-- Coordinate for linking of the firms to the credit databases of the People"s Bank;
-- Allow the firms to make structural change and become rural township banks.

3. Clean-up, Revoke, Annul& Amend Relevant Regulations to Foster Fair Competition Environment for Private Capital

To facilitate the enforcement of the "36 Clauses on the Non-Public Sector of the Economy" and the "New 36-Clause Circular", and speed up the entry of private capital into petroleum industry, ACFIC suggested cleaning up, revoking, repealing or amending relevant official documents and regulations that run against the spirit of the Clauses and obstruct the entry process, in order to create wider development space for non-state-owned enterprises.

4. Real Estate Property Tax Reform Should be Pre-conditioned on Land Transfer Fees

ACFIC said that over-pricing of land is the fundamental cause for high housing prices. Trying to regulate and control housing prices by raising real estate tax alone, rather than starting with the land transfer fee system reform, will not solve the problem at the root. Therefore, the reform should be integrated into the process to give full play to the role of real estate tax.

5. Create Private Economy Demonstration Base in Quanzhou

ACFIC suggested establishing national reform experimental zones for the development of private economy and selecting Quanzhou city of Fujian Province as a demonstration base in consideration of its external environment, economic foundation and development status.

6. Promote Business Start-ups to Spur Job Creation

Micro and small firms have always been a main concern of ACFIC, which suggested that the government increase fiscal support, cut taxes in the long term, and provide training subsidy to them and training clinics to their administrators.

Date:2012-3-9 19:10:59