On March 17, the State Council published the full text of the Outline of the National 13th Five-Year Plan (FYP), the central government blueprint for China’s long-term social and economic policies. The text was reviewed and passed during the 4th session of the 12th National People's Congress.
The 13th FYP will set the framework for government policies from 2016-2020, and will focus on boosting economic development during a period of slowing economic growth. Actionable government targets and priorities in the central FYP and corresponding local and industry plans have the potential to shape—or dramatically change—the business models for foreign companies in China. Broad economic growth targets and initiatives in the plan have an impact on the overall business environment, while local and industry plans can drive the direction of government support and future growth.
Initial Highlights of the 13th National Five-Year Plan
- Innovation a Focus: The 13th FYP put forward to implement innovation driven development strategy.
- National Policies: A number of new central-government policy initiatives are incorporated in the plan, such as Made in China 2025 and Internet Plus – policies of interest to many USCBC member companies.
- Management of Foreign Investment: The plan calls for the promotion of a new negative list management approach to govern foreign investment in the China market.
Full text of the plan (Chinese), can be found here: Outline of the National 13th Five-Year Plan (FYP)
The national FYP is drafted by the National Development and Reform Commission (NDRC) and lays out specific economic targets like GDP growth rates as well as major policy initiatives, which are reflected in local government plans.
The US-China Business Council (USCBC) will provide more detailed analysis on the 13th FYP and its impact on foreign companies and the business environment to members in the coming weeks. In the meantime, if there are questions, please do not hesitate to contact us.