Two sessions of chemical hot topics summary

Reform Strategy and Method: "Three to remove, one to reduce and one to compensate"

Solid and effective cuts in overcapacity. This year, we will further cut steel production capacity by around 50 million tons and shut down coal production by over 150 million tons. At the same time, we will phase out, suspend or delay the construction of coal-fired power plants with a capacity of more than 50 million kilowatts, so as to prevent and defuse risks of overcapacity in the coal and power industry, improve the efficiency of the coal and power industry, and make room for clean energy development. We will resolutely eliminate outdated production facilities that do not meet standards, and strictly control the construction of new capacity in excess industries.

Due to the city's policy to reduce inventory. We will adhere to the residential nature of housing, ensure that local governments have the primary responsibility, accelerate the establishment and improvement of a long-term mechanism for the steady and healthy development of the real estate market, and rely on the market to meet multilevel demands and the government to provide basic guarantees. We will strengthen category-based regulation of the real estate market, complete the renovation of another six million housing units in rundown areas this year, continue to develop public rental housing, and increase the proportion of monetized housing in light of local conditions.

Actively yet prudently deleveraging. On the premise of controlling the total leverage ratio, we should give top priority to reducing the corporate leverage ratio. We will encourage enterprises to put their existing assets to good use, promote asset securitization, support market-based and law-based debt-to-equity swaps, step up equity financing, tighten constraints on the financial leverage of enterprises, especially state-owned enterprises, and gradually reduce their debt to a reasonable level.

Take multiple measures to cut costs. We expanded the scope for small and micro businesses to enjoy halved income tax, and raised the upper limit of their annual taxable income from 300,000 yuan to 500,000 yuan. We raised the additional deduction rate for R&D expenses of small and medium-sized science and technology enterprises from 50% to 75%, and made every effort to make structural tax cuts more effective and effective. First, we will comprehensively review and standardize government-managed funds, cancel urban utility surcharges and other funds, and authorize local governments to reduce or cancel some funds on their own initiative. Second, we will cancel or suspend 35 administrative fees for enterprises of the central government, cut them by more than half, and lower the fees for those that remain as much as possible. Third, we will reduce government-set operating fees for enterprises, review and cancel illegal fees for intermediary services for administrative review and approval, reduce operating fees for enterprises in finance, railway freight and other areas, and strengthen oversight of market-regulated operating service fees. Fourth, we will continue to appropriately reduce the proportion of contributions to the Five social insurance and one pension fund. Fifth, we will deepen reform and improve policies to reduce institutional transaction costs for enterprises and reduce energy and logistics costs.

Precise reinforcement to strengthen weak points. We need to address the major problems that seriously hamper economic and social development and improve people's lives, strengthen areas of weakness and speed up our capacity to provide support for public services, infrastructure, innovative development, resources and the environment in light of the implementation of the major projects set out in the 13th Five-Year Plan.

Reform objective: To further unleash the potential of domestic demand

We will promote steady growth of consumption. First, we will accelerate the development of service consumption. We will launch a new round of trials for comprehensive reform of the service sector and support nongovernmental sectors in providing education, elderly care, medical and other services. We will promote model innovation and cross-boundary integration of service industries, and develop new forms of consumption, such as the combination of medical and nursing care, and cultural creativity. Second, we will increase consumption of high-quality products. We will guide enterprises to increase varieties, improve quality and create brands, and expand the scope of "the same line, the same standard and the same quality" for domestic and overseas sales to better meet the needs of consumer upgrading. Third, we need to rectify and standardize market order. We will seriously crack down on fake and shoddy products, false advertising, and price gouging, and strengthen protection of consumers' rights and interests so that people will have less trouble and more comfort when they spend money.

We will actively expand effective investment. We will guide more investment in areas that strengthen weak areas, make structural adjustments, promote innovation, and improve people's lives. This year, we will invest 800 billion yuan in railway construction and 1.8 trillion yuan in highway and waterway projects, start construction on 15 more major water conservancy projects, and continue to strengthen rail transit, civil aviation, telecommunications infrastructure and other major projects. 507.6 billion yuan will be allocated for investment from the central government budget. We will implement and improve policies and measures to promote private investment. We will deepen cooperation between the government and private capital and improve preferential policies on prices, taxes and fees.

We will improve the pattern of regional development. We will advance the development of the three strategies and the four sectors in a coordinated manner, implement relevant plans well, and formulate new measures. We will promote the innovative development of state-level new districts, development zones, and industrial parks. We will support economic transformation and development in areas where resources are depleted and ecosystems are severely degraded. Optimize the allocation of airspace resources. We will promote the development of Marine economy demonstration zones, accelerate the building of China into a maritime power, and resolutely safeguard China's maritime rights and interests.

We will make solid progress in developing a new type of urbanization. We will deepen reform of the household registration system, ensure that over 13 million people get urban hukou this year, and speed up the coverage of the residence permit system. We will support the development of small and medium-sized cities and small towns with distinctive features, establish cities in an orderly manner in a number of counties and very large towns where conditions permit, and leverage the radiating role of city clusters. We will promote reform and development of the construction industry and improve design and project quality. We will coordinate urban development above and below the ground, begin construction of more than 2,000 kilometers of urban integrated underground pipeline corridors, launch a three-year campaign to eliminate the risk of flooding in key urban areas, and build sponge cities so that cities have both "face" and "undergrowth".