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Preface / 1

Introduction: Transformation and Reform after the CPC 18TH

National Congress / 3

Chapter I: Transformation and Reform to Become a Consumption-Led Country

Section I Expanding Domestic Demand and Driving Consumption

Will Provide the Largest Opportunity for China / 20

I.The world economy has entered a period of profound adjustment and transformation / 20

II.Imbalance between investmenndsuption has emerged as a significant conflict /

III.Chinas so consutin tructure is now experiencing a historic change from life necessities to durable consumer goods / 28

Section II Support Medium-Paced Growth in the Following Decade

Through Consumption / 36

I.Consutin upports economic growth / 36

II.How big will the consumption potential be in the following ten years? / 38

III.Release of the consumption demand will determine fair and sustainable development to a large extent / 39

Section III Establish the Strategic Objectives of Consumption Domination / 42

Section IV Realize a Dynamic Balance Between Investment and

Consumption / 47

I.Consumption demand can create a huge investment / 47

II.Change the investment structure / 50

III.Optimize investment sources / 51

Section V Stratei Ajustment of State-Owned Capital Focusing

on Public Welfare / 52

I.Requirement for allocation of State-owned capil o ublic welfare sectors created by changes in public demand in the entire society / 53

II.Set the objective to lift the general welfare level for State-owned capital / 56

III.Gradually shift the center of gravity of State-owned capil o ublic goods sectors / 57

V.ecree laws and regulations concerning State-owned enterprises payment of resource rensndprfit distribution as soon as possible / 60

Chapter II: Transition and Reform of Population Urbanization

Section I Urbanization Is a Major Strategy / 68

I.The Historic Role of Urbanization / 68

II.Chinas urbanization is still on the road of rapid development / 77

III.Urbanization has the greatest potential for stimulating domestic demand / 84

Section II Transition of Scale Urbanization to Population

Urbanization / 89

I.The nature of new urbanization is population urbanization / 89

II.It is hard for the traditional mode of urbanization mainly featured by scale expansion to survive / 93

III.The focus of population urbanization is to unravel the "urban-rural binary equation" / 98

Section III To Facilitate the Process of Citification of Rural Migrant

Workers / 102

I.It is time to achieve the citification of rura irant workers / 102

II."Making the rura irant worker history" requires a timetable / 106

III.institutional innovation should focus on the citification of migrant rural workers / 114

Section IV Policies and Systematic Innovation on Population

Urbanization / 121

I.Farmers Enter Towns with "Land Property Rights"/121

II.Change the Urbanization Mode of "Land Finance" / 126

III.Break the Hierarchical System of Urban Management / 130

IV.Realize Step-by-Step a Unified Urban and Rural Population Policy / 134

Chapter III: Transition and Reform Creating Middle-Income Group of 600 Million People

Section I Expanding the Middle Income Group-A Major Strategy / 144

I.The development of Chinese middle-income group seriously lags behind / 144

II.The too low proportion of the middle-income group restricts economic and so development / 146

III.The middle-income group expansion can prompt the economic and so transition / 148

Section I oubling the Middle-Income Group in 2020 As the Major Goal / 149

I.Equity and sustainability at the Core / 150

II.Establishing the fundamental objective of middle - income group doubling / 156

III.It is reasonable to establish a middle-income group of 600 million people in 2020 / 157

Section III Giving Priority to Enriching People Is a General Trend / 162

I.Moving away from giving priority to national prosperity to enriching people / 162

I.epositing wealth among the people: to achieve double income of urban and rural residents as early as possible / 165

Section IV Establishing the Political and Economic Environment

for Identifying the Middle-Income Group / 170

Chapter IV: Market-oriented Transformation and Reform

Section I Changing the Government-Led Economic Growth Mode / 178

I.Changing the Government-oriented Economic Growth Mode / 178

II.Trying to reverse the trend of growth-oriented governmensson as possible / 180

III.Giving play to the effective role of government on a market-oriented basis / 184

Section II Market-Oriented Reform in terms of Resources / 186

Section III Starting the Reform of Monopolized Industries / 195

I.Breaking the interest relationship to promote the reform of monopolized industries / 195

II.Broadening the space for so capital system to make private enterprises become real market entities / 198

III.Carrying forward the comprehensive reform of property rights system / 200

Section IV Structural Reform With Finance and Tax Reform as the Focus / 203

I.Start a new round of reform of the finan system with structural tax reduction as the emphasis / 203

II.Grasping favourable opportunities to comprehensively deepen the reform of finan systems / 206

Section V Promotion of Government Transformation With Public

Services as the Focus / 209

I.Achieving the transformation of the concept of government from economic

construction to public services as soon as possible / 210

II.Increasing the supply of institutional public goods / 211

III.Increasing the supply of economic public goods / 212

IV.Increasing the supply of so public goods to form a favourable so

environment for enterprise development / 214

Chapter V: Government Transition and Reform with a Focus on Optimizing Power Structures

Section I Government Reform With "Decontrol of Power,

Separation of Power and Limitation of Power" as the Focus / 218

I.Outstanding contradictions facing the government transition / 218

II.Optimizing executive power structures with "separation of the three powers" as the focus / 221

III.The unreasonable power structure restricts the transformation of government functions / 2

IV.The concept of government reform with "decontrol of power, separation of power and limitation of power" as the focus / 228

Section II Transition of the Economic Functions of Government With Delegating of Powers to the Market as the Focus / 1

I.Reduce micro examination and approval and strengthen economic strategy management function / 1

II.Optimization of the power structure of the macro-control department /

III.Adjustment of the market supervision power structure / 4

Section III So Management Innovation With the Delegation of

Powers to Society as the Focus /

I.Realize public governance through the soization of government functions /

II.Shift of power in grassroots governmenndcmmunity autonomy /

III.Institutional innovation in so non-governmental organizations / 241

V.e-administration reform of offily-run so organizations / 242

Section V ecentralization System of Central and Local Governments With

the Division of Public Responsibilities as the Focus / 243

I.Public services-oriented division of public responsibilities of central and local governments / 244

II.Adjustment of administrative levels with urbanization as the focus / 246

III.Reform of the fiscal and taxation system of central and local governments / 247

Section V The Reform of the Super-Ministries System / 250

I.Strengthen administrative decision-making systems / 250

II.Strength the administrative execution system by improving its independence and professionalism / 253

III.Strengthen the administrative supervision system with increasing authority as the focus / 255

Section VI Self Construction and Reform of Government With

Transparency in the Exercise of Power as the Focus / 257

I.Transparency in administrative affairs and construction of she overnment / 258

II.Fully promote openness in finan budgets / 259

III.Accelerate the promotion of offi property release / 260

IV.Speed up judi publicity / 262

V.Judi system reform with standard exercise of power as the focus / 264