The Chinese government has released a new plan to further drive the role of the market in the allocation of factors of production, including land, labour, capital, technology and data.
On 6 January the State Council issued the “General Plan for Marketised Factor Allocation Comprehensive Reform Trials” (要素市场化配置综合改革试点总体方案), with the goal of “driving the development of reforms for the marketised allocation of factors of production.”
The Plan calls for “making full use of the decisive role of the market in the allocation of resources, better employing the role of the government, comprehensively raising the coordinated allocation efficiency for factors, and using the guidance of comprehensive reform trials.”
The Plan outlines trial missions across a total of eight areas including:
- Further raising the efficiency of land factor allocation.
- Driving rational, smooth and orderly flows of labour factors.
- Driving the development of capital factors in servicing the real economy.
- Vigorously expediting technology factors in transforming real productive capability.
- Exploring and establishing rules for the circulation of data factors.
- Strengthening the development of the resource environment market.
- Improving the regulation of the market for factors of production.
- Further employing the effects of coordinated deployment of factors of production.
The State Council called for the completion of arrangements for trial regions the first half of 2022, and the implementation of drafting and approval work.
By 2023 the State Council envisages “major breakthroughs” in the market-based allocation of labour, land, capital and technology factors, as well as “positive progress” in the development of a foundational system for the market-based allocation of data as a factor of production.
By 2025 the State Council targets the “basic completion” of trial missions, and “landmark results” in reforms for the market-based allocation of factors of production.