What’s News: China’s State Council, the cabinet, unveiled a new policy document Thursday to guide improvements in market resources-allocation mechanisms to spur growth.
The document outlines reforms in the distribution of key production factors including land, labor, capital, technology and data. It also pledged to improve the mechanism to price, allocation and manage the factors following market rules.
Why it’s important: The document sets up a policy framework to deepen reforms and further liberalize China’s land, labor and capital markets. Measures are listed to remove institutional barriers to ensure a more open and fairer economy to stimulate market vitality as the world’s second-largest economy struggles to respond to a slowdown exacerbated by the pandemic.
The document addressed long-expected reforms to close the gap between rural and urban land markets, loosen household registration restrictions and improve the development and transparency of stock and bond markets, among others.
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Contact reporter Han Wei (weihan@caixin.com)
