by: APCO worldwide
This report, by APCO Worldwide, summarises the key guiding principles of China’s 12th Five‐Year Plan which focus on rebalancing the economy, mitigating social inequity and conserving the environment. The Chinese Government put strong emphasis on ‘inclusive growth’ where the benefits of economic growth are felt in all regions and social groupings in China. The plan identifies the three SEIs (Strategic Emerging Industries) ‐ healthcare, energy and technology – and recommends the
initiatives that will encourage growth in these sectors.
The report also details the changes that may face foreign business in the five‐year period in terms of cost implications associated with changes to the minimum wage, value‐added tax increases, raw material resource price reforms and environment‐related taxes. The plan reports that China is facing severe environmental degradation brought about by rapid industrialization, reliance on coal as an energy source, a large energy‐intensive manufacturing sector and little environmental regulation. Three areas of focus are examined in the plan to counter the negative trend: energy conservation (including discussion of mandatory emissions targets), environmental quality which include water quality and commitments for high‐polluting sectors, and new energy regimes (15% of energy from renewable sources by 2020).