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Shandong， Hunan， Inner Mon- golia， Chongqing， Shenyang and Shaanxi， in 2014， China’s premier Li Keqiang went to these places for research and investigation.
From looking into the soil conditions in countryside to watching the slums in cities， from reviewing smoghandling device manufacturers to climbing onto the wind turbine， from voyaging the golden waterway of Yangtze River to paying attention to resurgence of Northeast China， Li Keqiang’s tracks revealed the core of Chinese government’s economic policies.
Decentralizing Rights to Invigorate Market
In the Governmental Working Report in March， Li Keqiang topped the“promotion of the reform to administrative body” in the list of tasks in 2014. He stressed that “the promotion of the reform to administrative body and further decentralization of rights are the spontaneous reform of the government.”
From then on， there came out numerous policies concerning the “streamlining of government and decentralization of rights”. According to the statistical data， “the decentralization of rights”was mentioned 18 times in the wire copy of 23 standing conferences. The State Council sent out eight monitoring teams to 16 provinces/autonomous regions/ municipalities， 27 departments and companies.
In his investigation， Li Keqiang paid his attention to the ongoing decentralization of rights and how to manage the monitor after the decentralization.
In July， Li Keqiang listened to the reports about the decentralization of rights and relevant advices in front of the service window in the Quality Supervision Bureau of Zhuzhou， Hunan. He talked with ordinary citizens. After that he said that it was necessary to reduce the time spent on the examination and review even though they are essential for the sake of invigorating the market. The more efficient the government has become， the more benefits they can bring to the enterprises.
When the government is focused on the “decentralization”， it is also necessary to improve the management. How to create a fair market through supervision and management after the decentralization to bring more actual benefits to enterprises and citizens is also a concern of Li Keqiang.
In Shandong， Li Keqiang went to the service windows of the Provincial Department of Traffic and Transportation see about the progress of reform there. He also went to Langchao Group， one of the leading IT companies in China， to know about the improvement of governmental services and supervision. In Li Keqiang’s opinion， the decentralization of government rights should give priority to the start and end and eradicate any hurdles in the process to stop any holding back of reform dividends and facilitate tens of thousands of people with the will to start their own business in getting the access to the market. The supervision needs to be enhanced as well to create a fair and invigorated market. The modern information technologies should be used to provide timely， sufficient and accurate information for the governmental management for more practical governmental services and supervision.
The reform to the business registration was rewarded with the dramatic increase of the number of registered enterprises. In the first half of 2014， the number of newly registered enterprises hit 1.68 million， up 57% year on year. 1.58 million of them were private enterprises. They offered 10.09 million jobs， up 43% compared with the same period of last year.
In order to know about the stress and demand brought by the increasing number of enterprises， Li Keqiang invited dozens of startups’ directors， asking them about their capital source， business scope and expectation for the government. Then， he confirmed that there would be no unreasonable systems and measures shackling the enterprises and the government was going to cancel the unnecessary parts in the pre-business examination and qualification to review to give entrepreneurs a smoother way to start and develop their business.
Three Key Regions to Support the Development
Cast aside the journeys of Li Keqiang， the provinces he chose to have a research and investigation could bring about enough implications.
His two times of visits in Inner Mongolia and the ensuing journey to Chongqing and Shenyang have shown the three major economic tasks of the Chinese government： to bring out the biggest potential of economic development of West China， to build the economic zone along the Yangtze River with the golden waterway and to reinvigorate the old industrial base of Northeast China.
During his research in Inner Mongolia， Li Keqiang got to know the in- frastructural planning and construction there. He pointed out that the central and western areas of China are where the great potential of Chinese economy lies. Inner Mongolia is an important base of energy for China and the ecological barrier in North China. Thus it plays an important role in the development of central and western parts of China. There is a great outlook there for the new urbanization， economic structure upgrade and low-carbon development. When he was in Hunan， Li Keqiang visited the construction site of ShanghaiKunming high-speed railway to offer comfort and encouragement to workers working in the heat. He said that the high-speed railway in Central and West China， as well as other projects good for structural change and intensification of weak spots， are important measures to implement the targeted adjustment. Presently， the raw material cost is still quite low and this should be capitalized on to promote the construction of key projects.
In the economic development zone of Wanzhou， Chongqing， Li Keqiang went to the office of a company that moved from Beijing to this place last year. In his opinion， enterprises could bring about employment. The industrial transfer that moves the labor-intensive and environment-friendly enterprises to West China is very important for the development of West China. The cheap labor force， if combined with outside investment and technologies， could get transferred industries rooted into this place. The infrastructural construction should be accelerated there to offer a fertile land of modern services like IT services.
Apart from being an important city in West China， Chongqing is also thought to be an important point in the Yangtze River waterway. There， Li Keqiang took a ship and started his voyage to watch the golden waterways of Yangtze River， in-cluding the port construction and channel development. On the ship he heard the reports from directors of Shanghai， Jiangsu， Zhejiang， Anhui， Jiangxi， Hubei， Hunan， Sichuan， Chongqing， Yunnan and Guizhou， the 11 provinces/cities in the economic belt of Yangtze River about the ideas and advices for the construction of economic zone.
Li Keqiang said that it was a principle for a country to initiate its development in the coastal areas and then move the trend to the inland areas in the world’s economic history. Connecting the areas along the Yangtze River together is an inevitable requirement for the harmonious development of Chinese economy. Through the waterways the development of West China， the rise of Central China and the sustainable development of East China are connected together. It will play an active role in the logistics of production elements and the optimization of resource distribution.
When the development of new economic zone is listed as the strategy to drive the economic development， the resurgence of old industrial base is also in the plan of Chinese government. When Li Keqiang visited an industrial park featuring technological innovation in Shenyang， he said that the innovations are the key to improving the competitive advantages and promoting the economic development efficiency. After the visit he held a meeting right in the park， in which he listed six measures to spend over ten years returning the energy to the old industrial bases of Northeast China.
People-oriented Urbanization
The urbanization is always the core task of the Chinese government led by Xi Jinping and Li Keqiang since it is an inevitable part of the modernization the persistent power of China’s economic development. In the 2014 Governmental Working Report， Li Keqiang pointed out that there were three tasks to be given priority in the following period： to promote about 100 million peasants to move into cities， to reconstruct the slums for over 100 million citizens and to guide about 100 million people into the urbanization in places near their hometowns in Central and West China.
This March， Li Keqiang climbed onto a hilltop in Chifeng City， Inner Mongolia to have a full sight of the slums in this city. Seeing the simple and rundown cabins in the slums， Li Keqiang pointed out the urgency and importance of rebuilding slums， not only in Chifeng， but also in the whole China. According to him， about 4.7 million houses in slums nationwide are going to be reconstructed this year. The number is the largest in all these years and most of the reconstructions are hard to be finished. The State Council has already set up a team specializing in the reconstruction of slums.
Apart from the housing problem， the equalization of public services， the development of urban industries， the infrastructural construction and the modernization of agriculture are also in the watch list of Li Keqiang.
A company in Dezhou， Shandong， has a lot of its workers recruited from the rural areas. After visiting this enterprise， Li Keqiang said that the labor- intensive companies， which could recruit a lot of peasant-turned workers， needs to be given stimulus to develop for the good of urbanization.
The new type of household farms was also thought highly by Li Keqiang as he believed it to be an innovative pattern to develop the modern agriculture. In his opinion， the key is to center the agricultural affairs around peasants， improve the legal system and cooperative mechanism for the modern agriculture with technologies. The improvement in peasants’income will be the base for the general wage increase in China. Almost every Chinese peasant has the dream of becoming urban residents， but the urbanization needs to be progressed steadily and with scientific guidelines. The Chinese government has already issued the new document about the reform to the residential permit system， with a grand goal of building a new residential permit system that fits the well-off society， supports the social management and public services and provides protections over the peasantturned urban citizens by 2020.
Change the Defects to Improve People’s Livelihood
In the Governmental Working Re-port， Li Keqiang said that the government’s ultimate task was none other than to let every people in China live a good life. From 2014， the spent a lot of time looking into the defects in people’s livelihood.
The food problem is the base for men’s survival and development. In March， Li Keqiang went to Inner Mongolia to ask about the climatic conditions， crop growing and local efforts to fight against drought there. He even went to the field himself and picked up a handful of earth to see the soil conditions.
When the grains were ready to be harvested in July， Li Keqiang went to the barns owned by China Grain Reserve Corporation in Hunan. There， he announced a series of measures to make sure that all grains planted and harvested by peasants will find a place to sell. This is also for the self-reliance and food security of China.
The employment is also the foundation of people’s livelihood. In Inner Mongolia， Li Keqiang visited a vocational training school there. He said that the economic structural change in China needs more capable talents with proficient skills. An optimum mechanism needs to be formed with reformatory ways to encourage more social forces to get engaged in the vocational training and improving the employment.
In July， there were 7.27 million college graduates leaving China and stepping into the employment market. In Hunan， Li Keqiang encouraged the ready-to-leave college graduates to be more open-minded and bold as they can start their own business to realize their potentials and social value. He also promised that the promise will provide services for these startups to give young entrepreneurs a stage to exert their talents.
The issues in pollution and infrastructural construction are also what concern citizens and the premier.
In a polluted water disposal plant in Inner Mongolia， Li Keqiang said that the urban landscape was like the “face” of the city and it got great improvement in these years， but the “inside” of the city， which refers to the underground pipe system and the disposal systems of waste water， polluted air and so on， does not get deserved attention. In Li Keqiang’s opinion， China needs a batch of new projects to address the issue to bring back the good and clean environment to the Chinese people. Upgrade the Industrial Chain
The innovation is the source of the driving force for the economic structural optimization and is the core to boost the sustainable development of the country. In his journeys in 2014， Li Keqiang would go to local enterprises every place he went. All these enterprises share one common point： they are upgrading themselves – or have done it – and moving up to the industrial chain with high valueadded.
In Hunan， Li Keqiang visited China Southern Locomotive Corporation in Zhuzhou， Hunan. It is the“cradle” of China’s locomotives. When the enterprise’s directors said that their locomotives had already got into the international market， Li Keqiang praised them as the “typical examples” for the“going-out” of China-made devices. In his opinion， the potential of innovation decides the space of the market. The core advantage of China-made devices in the international competition lies with its cost performance， referring to good quality accompanied with comparatively lower price.
Li Keqiang also visited the wind turbines in Chifeng， Inner Mongolia to see about the development of clean energy. He also went to China Aviation Industrial Corporation to have a look at the latest development of Chinese aviation technologies. In Hunan， he visited a cultural industrial park， where he highlighted the potential of the industry making use of the great Chinese culture and the large human resource here.
It is not hard to find that Li Keqiang， following the goal of encouraging Chinese enterprises to move up to the industrial chain with higher value-added， used this way to fuel Chinese enterprises’upgrade and guide them onto the right way.
From looking into the soil conditions in countryside to watching the slums in cities， from reviewing smoghandling device manufacturers to climbing onto the wind turbine， from voyaging the golden waterway of Yangtze River to paying attention to resurgence of Northeast China， Li Keqiang’s tracks revealed the core of Chinese government’s economic policies.
Decentralizing Rights to Invigorate Market
In the Governmental Working Report in March， Li Keqiang topped the“promotion of the reform to administrative body” in the list of tasks in 2014. He stressed that “the promotion of the reform to administrative body and further decentralization of rights are the spontaneous reform of the government.”
From then on， there came out numerous policies concerning the “streamlining of government and decentralization of rights”. According to the statistical data， “the decentralization of rights”was mentioned 18 times in the wire copy of 23 standing conferences. The State Council sent out eight monitoring teams to 16 provinces/autonomous regions/ municipalities， 27 departments and companies.
In his investigation， Li Keqiang paid his attention to the ongoing decentralization of rights and how to manage the monitor after the decentralization.
In July， Li Keqiang listened to the reports about the decentralization of rights and relevant advices in front of the service window in the Quality Supervision Bureau of Zhuzhou， Hunan. He talked with ordinary citizens. After that he said that it was necessary to reduce the time spent on the examination and review even though they are essential for the sake of invigorating the market. The more efficient the government has become， the more benefits they can bring to the enterprises.
When the government is focused on the “decentralization”， it is also necessary to improve the management. How to create a fair market through supervision and management after the decentralization to bring more actual benefits to enterprises and citizens is also a concern of Li Keqiang.
In Shandong， Li Keqiang went to the service windows of the Provincial Department of Traffic and Transportation see about the progress of reform there. He also went to Langchao Group， one of the leading IT companies in China， to know about the improvement of governmental services and supervision. In Li Keqiang’s opinion， the decentralization of government rights should give priority to the start and end and eradicate any hurdles in the process to stop any holding back of reform dividends and facilitate tens of thousands of people with the will to start their own business in getting the access to the market. The supervision needs to be enhanced as well to create a fair and invigorated market. The modern information technologies should be used to provide timely， sufficient and accurate information for the governmental management for more practical governmental services and supervision.
The reform to the business registration was rewarded with the dramatic increase of the number of registered enterprises. In the first half of 2014， the number of newly registered enterprises hit 1.68 million， up 57% year on year. 1.58 million of them were private enterprises. They offered 10.09 million jobs， up 43% compared with the same period of last year.
In order to know about the stress and demand brought by the increasing number of enterprises， Li Keqiang invited dozens of startups’ directors， asking them about their capital source， business scope and expectation for the government. Then， he confirmed that there would be no unreasonable systems and measures shackling the enterprises and the government was going to cancel the unnecessary parts in the pre-business examination and qualification to review to give entrepreneurs a smoother way to start and develop their business.
Three Key Regions to Support the Development
Cast aside the journeys of Li Keqiang， the provinces he chose to have a research and investigation could bring about enough implications.
His two times of visits in Inner Mongolia and the ensuing journey to Chongqing and Shenyang have shown the three major economic tasks of the Chinese government： to bring out the biggest potential of economic development of West China， to build the economic zone along the Yangtze River with the golden waterway and to reinvigorate the old industrial base of Northeast China.
During his research in Inner Mongolia， Li Keqiang got to know the in- frastructural planning and construction there. He pointed out that the central and western areas of China are where the great potential of Chinese economy lies. Inner Mongolia is an important base of energy for China and the ecological barrier in North China. Thus it plays an important role in the development of central and western parts of China. There is a great outlook there for the new urbanization， economic structure upgrade and low-carbon development. When he was in Hunan， Li Keqiang visited the construction site of ShanghaiKunming high-speed railway to offer comfort and encouragement to workers working in the heat. He said that the high-speed railway in Central and West China， as well as other projects good for structural change and intensification of weak spots， are important measures to implement the targeted adjustment. Presently， the raw material cost is still quite low and this should be capitalized on to promote the construction of key projects.
In the economic development zone of Wanzhou， Chongqing， Li Keqiang went to the office of a company that moved from Beijing to this place last year. In his opinion， enterprises could bring about employment. The industrial transfer that moves the labor-intensive and environment-friendly enterprises to West China is very important for the development of West China. The cheap labor force， if combined with outside investment and technologies， could get transferred industries rooted into this place. The infrastructural construction should be accelerated there to offer a fertile land of modern services like IT services.
Apart from being an important city in West China， Chongqing is also thought to be an important point in the Yangtze River waterway. There， Li Keqiang took a ship and started his voyage to watch the golden waterways of Yangtze River， in-cluding the port construction and channel development. On the ship he heard the reports from directors of Shanghai， Jiangsu， Zhejiang， Anhui， Jiangxi， Hubei， Hunan， Sichuan， Chongqing， Yunnan and Guizhou， the 11 provinces/cities in the economic belt of Yangtze River about the ideas and advices for the construction of economic zone.
Li Keqiang said that it was a principle for a country to initiate its development in the coastal areas and then move the trend to the inland areas in the world’s economic history. Connecting the areas along the Yangtze River together is an inevitable requirement for the harmonious development of Chinese economy. Through the waterways the development of West China， the rise of Central China and the sustainable development of East China are connected together. It will play an active role in the logistics of production elements and the optimization of resource distribution.
When the development of new economic zone is listed as the strategy to drive the economic development， the resurgence of old industrial base is also in the plan of Chinese government. When Li Keqiang visited an industrial park featuring technological innovation in Shenyang， he said that the innovations are the key to improving the competitive advantages and promoting the economic development efficiency. After the visit he held a meeting right in the park， in which he listed six measures to spend over ten years returning the energy to the old industrial bases of Northeast China.
People-oriented Urbanization
The urbanization is always the core task of the Chinese government led by Xi Jinping and Li Keqiang since it is an inevitable part of the modernization the persistent power of China’s economic development. In the 2014 Governmental Working Report， Li Keqiang pointed out that there were three tasks to be given priority in the following period： to promote about 100 million peasants to move into cities， to reconstruct the slums for over 100 million citizens and to guide about 100 million people into the urbanization in places near their hometowns in Central and West China.
This March， Li Keqiang climbed onto a hilltop in Chifeng City， Inner Mongolia to have a full sight of the slums in this city. Seeing the simple and rundown cabins in the slums， Li Keqiang pointed out the urgency and importance of rebuilding slums， not only in Chifeng， but also in the whole China. According to him， about 4.7 million houses in slums nationwide are going to be reconstructed this year. The number is the largest in all these years and most of the reconstructions are hard to be finished. The State Council has already set up a team specializing in the reconstruction of slums.
Apart from the housing problem， the equalization of public services， the development of urban industries， the infrastructural construction and the modernization of agriculture are also in the watch list of Li Keqiang.
A company in Dezhou， Shandong， has a lot of its workers recruited from the rural areas. After visiting this enterprise， Li Keqiang said that the labor- intensive companies， which could recruit a lot of peasant-turned workers， needs to be given stimulus to develop for the good of urbanization.
The new type of household farms was also thought highly by Li Keqiang as he believed it to be an innovative pattern to develop the modern agriculture. In his opinion， the key is to center the agricultural affairs around peasants， improve the legal system and cooperative mechanism for the modern agriculture with technologies. The improvement in peasants’income will be the base for the general wage increase in China. Almost every Chinese peasant has the dream of becoming urban residents， but the urbanization needs to be progressed steadily and with scientific guidelines. The Chinese government has already issued the new document about the reform to the residential permit system， with a grand goal of building a new residential permit system that fits the well-off society， supports the social management and public services and provides protections over the peasantturned urban citizens by 2020.
Change the Defects to Improve People’s Livelihood
In the Governmental Working Re-port， Li Keqiang said that the government’s ultimate task was none other than to let every people in China live a good life. From 2014， the spent a lot of time looking into the defects in people’s livelihood.
The food problem is the base for men’s survival and development. In March， Li Keqiang went to Inner Mongolia to ask about the climatic conditions， crop growing and local efforts to fight against drought there. He even went to the field himself and picked up a handful of earth to see the soil conditions.
When the grains were ready to be harvested in July， Li Keqiang went to the barns owned by China Grain Reserve Corporation in Hunan. There， he announced a series of measures to make sure that all grains planted and harvested by peasants will find a place to sell. This is also for the self-reliance and food security of China.
The employment is also the foundation of people’s livelihood. In Inner Mongolia， Li Keqiang visited a vocational training school there. He said that the economic structural change in China needs more capable talents with proficient skills. An optimum mechanism needs to be formed with reformatory ways to encourage more social forces to get engaged in the vocational training and improving the employment.
In July， there were 7.27 million college graduates leaving China and stepping into the employment market. In Hunan， Li Keqiang encouraged the ready-to-leave college graduates to be more open-minded and bold as they can start their own business to realize their potentials and social value. He also promised that the promise will provide services for these startups to give young entrepreneurs a stage to exert their talents.
The issues in pollution and infrastructural construction are also what concern citizens and the premier.
In a polluted water disposal plant in Inner Mongolia， Li Keqiang said that the urban landscape was like the “face” of the city and it got great improvement in these years， but the “inside” of the city， which refers to the underground pipe system and the disposal systems of waste water， polluted air and so on， does not get deserved attention. In Li Keqiang’s opinion， China needs a batch of new projects to address the issue to bring back the good and clean environment to the Chinese people. Upgrade the Industrial Chain
The innovation is the source of the driving force for the economic structural optimization and is the core to boost the sustainable development of the country. In his journeys in 2014， Li Keqiang would go to local enterprises every place he went. All these enterprises share one common point： they are upgrading themselves – or have done it – and moving up to the industrial chain with high valueadded.
In Hunan， Li Keqiang visited China Southern Locomotive Corporation in Zhuzhou， Hunan. It is the“cradle” of China’s locomotives. When the enterprise’s directors said that their locomotives had already got into the international market， Li Keqiang praised them as the “typical examples” for the“going-out” of China-made devices. In his opinion， the potential of innovation decides the space of the market. The core advantage of China-made devices in the international competition lies with its cost performance， referring to good quality accompanied with comparatively lower price.
Li Keqiang also visited the wind turbines in Chifeng， Inner Mongolia to see about the development of clean energy. He also went to China Aviation Industrial Corporation to have a look at the latest development of Chinese aviation technologies. In Hunan， he visited a cultural industrial park， where he highlighted the potential of the industry making use of the great Chinese culture and the large human resource here.
It is not hard to find that Li Keqiang， following the goal of encouraging Chinese enterprises to move up to the industrial chain with higher value-added， used this way to fuel Chinese enterprises’upgrade and guide them onto the right way.