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China maps out 2013 economic reform

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China's National Development and Reform Commission or the NDRC has held a meeting on Thursday to discuss the economic reform planned for 2013. According to a plan released last Friday, this year will focus on transformation of the economic system, social welfare and livelihood improvement.

2013 is set to be a big year for economic reform in China.

As per a plan released last Friday, this year's economic reform will cover nine key areas.

Kong Jingyuan, Director of System Reform Dept. NDRC, said, "The 2013 reforms involve four aim areas: economic system transformation, social welfare and livelihood improvement, promotion and protection of social justice, and stimulating market forces."

The administrative reform is regarded as key to stimulate and develop the market.

"We should loosen control further and restrict the involvement of administration. We should transfer power to lower administrative levels and further open up investment. This will allow more private capital to participate in the development of infrastructure and social affairs such as science, education and health." Kong said.

Reforming plans on investment and financing of the rail industry will also be created. Private investors can preferentially enjoy ownership and managerial authority on establishing feeder railways, inter-urban railways and resource development railways.

Moreover, Interest rate marketization reform measures will be executed prudently, including establishing RMB capital account convertibility, operation scheme and individual investors overseas investment system.

To boost urbanization, new regulations on residential permits will be worked out and the household registration system will be reformed according to classification.

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