降成本 (jiang chengben): Reducing costs

One of the five major tasks of structural reform mentioned in the statement released after the recent Central Economic Work Conference is to reduce the burden on enterprises and improve the vitality of the real economy.

Reducing costs is a necessary step in China's economic transition because enterprises are the main body of economic development. The central government will continue to streamline administration, delegate power to lower levels, and transform government functions in order to reduce the administrative costs for enterprises.

The government will reduce unnecessary intervention in the market to promote the innovation capabilities of companies and improve their total factor productivity.

The statement from the Central Economic Work Conference also stressed reducing the tax burden on enterprises, especially by eliminating unreasonable charges to create a fair taxation environment. Reducing taxation is regarded as one of the main ways to reducing companies' costs.

The statement also urged the financial sector to transfer profits to the real economy, and reduce in the electricity and logistic costs through reform.