Some Opinions concerning Stimulating Information Consumption and Expanding Internal Demand

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GF No. (2013)23

All provincial, autonomous region and municipal People’s Governments, all State Council ministries and commissions, all directly subordinate organs:

In recent years, information technology innovation on a global scale has incessantly accelerated, and new products, new services and new business models in the information area have emerged in large numbers, incessantly stimulating new consumption demands, and becoming consumption hot sports that become more dynamic every day. The scale of our country’s market is huge, and it is currently in a stage where residents’ consumption rises and informatization, industrialization, urbanization and agricultural modernization are accelerating, merging and developing, information consumption has a good development basis and huge development potential. At the same time, our country’s information consumption faces such problems as the fact that basic infrastructure support capacity remains to be upgraded, product and service innovation capacity is weak, market access thresholds are high, supplementary policies are incomplete, sectoral barriers are grave, structures and mechanisms are not adapted, etc., it is urgently necessary to adopt measures to resolve these. Accelerating and stimulating information consumption is able to effectively drive demand, foster new economic growth points, stimulate consumption upgrading, industrial transformation and an improvement in people’s livelihoods, it is an important measure that both benefits the present and benefits the long term, it stabilizes growth and adjusts structures. In order to accelerate and promote the sustained growth of information consumption, hereby, the following Opinions are put forward:

I, General requirements

(1) Guiding ideology. With Deng Xiaoping Theory, the important “Three Represents” thought and the scientific development view as guidance, with deepening reform as driver, with science and technology innovation as support, revolve around unearthing consumption potential, strengthen supply capacity, stimulate market vitality, improve consumption environments, strengthen basic information infrastructure construction, accelerate information industry optimization and upgrading, forcefully enrich information consumption content, raise information network security guarantee capacity, establish long-term mechanisms to stimulate the sustained and stable growth of information consumption, promote a rapid and healthy growth of information consumption in terms of production, life and management, give rein to an even large function in stable and relatively fast economic development and an improvement of people’s livelihoods.

(2) Basic principles.

Market guidance, reform and development. Accelerate government function transformation and management innovation, fully give rein to the function of markets, smash sector entry barriers, stimulate information resource openness and sharing, and fair competition between enterprises, persist in marketized operation in competitive areas, vigorously guide market mechanisms in the area of social management and public service, strengthen the endogenous drivers of information consumption development.

Demand pull, innovation and development. Guide enterprises to base themselves on the internal demand market, strengthen the basis for innovation, raise innovation levels, encourage plural development, accelerate the development of crucial information technologies and products, encourage business model innovation, foster new development formats, raise the effective supply levels of information products, services and content, unearth and liberate consumption potential.

Perfect environments, orderly development. Establish and perfect a policy environment that benefits broad information consumption, comprehensively use wired, wireless and other such technology to appropriately advance in deploying broadband infrastructure, use information platforms to improve public service, perfect market supervision and management, standardize industrial development order, strengthen personal information protection and information security guarantees, construct safe, honest and orderly information consumption market environments.

(3) Main objectives.

Information consumption scales to grow fast. By 2013, information consumption scales are to exceed 3.2 trillion Yuan, annual growth of 20% or higher, driving new growth in related industries exceeding 1.2 trillion Yuan, among which the scope of burgeoning information consumption on the Internet is to reach 2.4 trillion dollars, annual growth of 30% or higher. On the basis of the rapid growth of consumption through e-commerce, cloud computing and other information platform, e-commerce trace value to exceed 18 trillion Yuan, online retail trade value to exceed 3 trillion Yuan.

Information infrastructure to be clearly improved. By 2015, the beginnings of a next- generation information broadband, integrated, secure and extensive infrastructure that is adapted to the needs of economic and social development, urban household broadband access capacity to basically reach 20 Mbps, and 100 Mbps in a number of cities, rural household broadband access capacity to reach 4 Mbps, administrative village broadband connection rates to reach 95%. Intelligent city construction to see clear progress.

Information consumption markets to be healthy and dynamic. Facing the increasing wealth in information products and services for production, life and management, innovate even more dynamically, market competition order to be standardized and transparent, consumption environments to be secure and trustworthy, information consumption demonstration effects to be clear, residents’ information consumption choices to become even more rich, consumption desires to further strengthen. Enterprise informatization application to deepen incessantly, public service information demand to be effectively expanded, the demand for all sorts of information consumption to be further released.

II, Accelerate information infrastructure progress and upgrading.

(4) Perfect broadband network infrastructure. Announce and implement the “Broadband China” strategy, accelerate the upgrading and transformation of broadband networks, move optical fibre household connection forward, comprehensively raise urban and rural broadband network dissemination levels and access capacity. Launch next-generation Internet demonstration city construction, move forward the upscaling and commercial use of next-generation Internet. Move forward next-generation radio and television network upscaling and construction. Perfect universal telecommunications service compensation mechanisms, expand support strength, and stimulate the provision of even broader universal telecommunications services. Sustainedly move forward the joint building and joint sharing of telecommunications infrastructure, comprehensively plan the distribution of Internet data centres (IDCs) and other cloud-computing infrastructure. All levels’ People’s Governments must bring information infrastructure into urban and rural construction and land use plans, and provide the necessary policy and financial support.

(5) Comprehensively move forward mobile telecommunications development. Expand third-generation mobile telecommunications (3G) network coverage, optimize network structuring, and upgrade network quality. On the basis of the situation of applying enterprises and their meeting conditions, promote the provision of fourth-generation mobile telecommunications (4G) licenses within the year 2013. Accelerate moving forward with the construction and industrialized development of new-generation mobile telecommunications Time-Division Long-Term Evolution (TD-LTE) technology in which our country is leading.

(6) Completely move three-network integration forward. Accelerate the two-way access of telecommunications and radio and television business, progressively spread this nationwide during the second half of 2013 on the basis of trial localities. Promote the accelerated establishment of the China Radio and Television Network Company, move forward joint telecommunications network and radio and television network infrastructure construction and sharing. Accelerate and promote the construction of terrestrial digital television coverage networks and high-definition Internet protocol television networks, accelerate the progress of radio and television analogue to digital conversion. Encourage and develop Internet protocol television, mobile telephone television, broadband services over cable television networks and other such integrated services, to drive coordinated development of upstream and downstream enterprises in the industrial chain, and complete three-network integration technology innovation structures.

III, Strengthen information product supply capacity

(7) Encourage the innovation and development of intelligent terminal products. In the face of mobile Internet, cloud computing, big data and other such hot topics, accelerate the implementation of intelligent terminal industrialization projects, support research and development of intelligent mobile phones, intelligent television and other such terminal products, stimulate the integrated development of terminals and services. Support  digital household intelligent terminal research, development and industrialization, forcefully move the construction of digital household demonstration applications and digital household industry infrastructure forward. Encourage assembly enterprises to cooperate with chip, component and software enterprises, research and develop all sorts of novel electronic information consumption products. Support telecommunications, radio and television operations work units and production enterprises to launch cooperation through ordering, concentrated purchasing and other methods, drive intelligent terminal product competition and improvement, tamping down an industrial basis for information consumption.

(8) Strengthen the innovation capacity of basic electronic industries. Implement flat screen display projects, promote the expansion and strengthening of the flat screen display industry, accelerate moving forward breakthroughs in next-generation display technology, perfect industrial supplementing capacity. Drawing on focus assembling and informatized applications, rely on State science and technology plans (funding, earmarks) and major projects to forcefully improve integrated circuit design and manufacturing craft and technology levels. Support localities to explore funding reform models to develop integrated circuits, utilize existing financial and funding channels, encourage and support local governments meeting conditions to establish integrated circuit industry investment funds, guide social capital to invest in the integrated circuit industry, effectively resolve integrated circuit manufacturing enterprises’ financial bottlenecks. Support research, development and industrialization of intelligent sensors and core system technology.

(9) Improve the software sector’s support and service levels. Accelerate the development and application of intelligent terminals, intelligent language, information security and other such key software, accelerate the spread of security and trust-critical application systems. In the face of the needs of enterprises’ informatization, make breakthroughs in core business information systems, large-scale application systems and other such key technologies, develop embedded software and applied software based on open standards, accelerate the industrialization of product life-cycle management (PLM), manufacturing execution systems (MES) and other such industrial software. Strengthen the development and secure application of industrial control system software. Accelerate moving forward enterprise informatization, upgrade the coordination and innovation levels of integrated applications and businesses, stimulate the servitization of the manufacturing sector. Forcefully support software application stores, software as a service (SaaS) and other such service model innovation.

IV, Foster information consumption demand

(10)  Expand new information service business models. Develop the mobile Internet industry, encourage enterprises to establish mobile application development and innovation funds, move forward online information technology and service model integration and innovation. Vigorously promote the commercialized operation of cloud computing services, support cloud computing service innovation and commercial model innovation. Facing focus sectors and focus livelihood areas, launch major application demonstrations for the Internet of things, raise the public service capacity of the Internet of things. Accelerate the promotion of Beidou navigation core technology research, development and industrialization, promote the integrated development of Beidou navigation with mobile telecommunications, geographical information, satellite remote sensing, mobile Internet, etc., support location-based service (LBS) market expansion. Perfect Beidou navigation infrastructure, move forward Beidou navigation service model and product innovation, launch demonstration applications in focus locations and traffic, disaster relief, telecommunications, energy, finance and other such focus areas, progressively move forward the upscaled application of Beidou navigation and timing. Forcefully develop geographical information industries, broaden geographic information service markets.

(11) Enrich information consumption content. Forcefully develop digital publishing, interactive new media, mobile multimedia and other emerging cultural industries, stimulate the consumption of cartoon games, digital music, online artworks and other digital cultural content. Strengthen the exploitation of digital cultural content products and services, establish digital content production, transformation, processing and delivery platforms, and enrich information consumption content product supply. Strengthen the construction of new media based on the Internet, realize online cultural information content construction projects, promote the online dissemination of excellent cultural products, encourage all categories of online cultural enterprises to produce and provide healthy and upward information content.

(12) Broaden the development space for e-commerce. Perfect intelligent logistical infrastructure, support the construction of logistics and rapid delivery points in villages, communities and schools. All levels’ People’s Governments must publish encouraging policies for storehouse construction land use, delivery vehicle management and other such aspects. Forcefully develop mobile payment and other cross-sectoral business, perfect Internet payment structures. Accelerate moving forward with e-commerce demonstration city construction, implement reliable trading, online e-invoicing and other such e-commerce policy trials. Support online retail platform expansion and strengthening, encourage and guide financial organs to provide small-value lending services to small and mid-size online businesses, promote the common application of e-commerce among small and mid-size enterprises. Expand mobile e-commerce applications, vigorously foster e-commerce in urban communities and for agricultural products. Construct cross-border e-commerce clearing service platforms and foreign trade transaction platforms, implement supervision and management policies suited to cross-border e-commerce, and encourage e-commerce to “march out”.

V, Improve public service informatization levels

(13) Stimulate public information resource sharing, exploitation and usage. Formulate public information resource exploitation, sharing and management rules, promote that municipal public enterprise and undertaking work units, public service undertaking work units and others open up information resources. Accelerate the initiation of the construction of national demonstration provinces and municipalities construction for  government affairs information sharing, encourage and guide the socialized exploitation and use of public information resources, unearth public information resources’ economic and social benefits. Support telecommunications and radio and television operation enterprises, Internet enterprises, software enterprises and radio and television broadcasting organs to give rein to their superiorities, and participate in the construction and operation of public service cloud platforms. Accelerate the promotion of national government affairs informatization project construction, establish and perfect national basic information resources and government information resources, establish government public service information platforms, integrate the resources from many departments, raise sharing capacity, stimulate interaction and connection, to effectively raise the level of public services.

(14) Increase information service levels in the area of people’s livelihoods. Accelerate the implementation of the “Information Benefiting the People” project, increase public service equality and universal benefit levels. Move forward with excellent education information resource sharing, implement the “Three Connections Project” for education informatization, and accelerate the construction of education information infrastructure and education resource public service platforms. Move excellent medical resource sharing forward, perfect medical management and service information systems, universalize the use of residents’ health cards, electronic health dossiers and electronic medical histories, promote long-distance medical and health management, medical consulting, appointment, diagnosis and treatment services. Move forward with coordinating resource services between organs caring for the elderly, communities, home management and medical nursing organs. Establish public employment information service platforms, accelerate the networking of nationwide employment information. Accelerate the construction of a social security public service structure, move forward with Yikatong cards for social security, construct central and provincial-level medical insurance premium accounting platforms, move forward with cross-provincial real-time accounting of medical insurance premiums. Standardize Internet food and medicine trading activities, move forward with online sunshine purchasing of food and medical products, and strengthen quality and security. Raise non-obstructed information service capacities aimed at the disabled. Forcefully move forward with the radio and television “Connecting All Households” project, improve radio and television public service levels. Move forward the constructing of public service platforms for geographical information. perfect comprehensive rural information service structures, strengthen rural information resource integration. Forcefully move forward with using financial integrated circuit cards (IC cards) fur multiple applications in the area of public services.

(15) Accelerate the construction of intelligent cities. Launch intelligent city trial and demonstration construction in cities meeting conditions. All trial cities must roll out policies to encourage urbanization investment, information system service contracting, information resource socialization, exploitation and use, etc. Support the intelligentification, transformation and upgrading of public facilities and equipment, accelerate the implementation of intelligent electricity network, intelligent traffic, intelligent water management, intelligent land, intelligent logistics and other projects. Encourage all categories of market subjects to jointly participate in the construction of intelligent cities. Within State Council-approved local government debt quota, all provincial, autonomous region and municipal People’s Governments are to comprehensively consider and arrange for a part of finance to be used for urban city construction Encourage enterprises meeting conditions to issue enterprise bonds, raising capital to be used in the construction of intelligent cities.

VI, Strengthen information consumption environment construction

(16) Build the basis for a secure and reliable information consumption environment. Forcefully move forward with identity authentication, website authentication, electronic signatures and other such online trust services, and promote electronic business licences. Promote Internet finance innovation, standardize Internet financial services, launch non-financial organ payment business facility authentication, construct mobile public finance security and trust service platforms, promote the development of multi-level payment structures. Move forward with the coordination of national basic databases, basic financial and credit information databases and other databases, support the construction of social credit systems.

(17) Increase information security guarantee capacity. Strengthen information product and service monitoring and authentication according to the law, encourage enterprises to exploit information technology products with advanced technologies and reliable functioning, support the establishment of third-party security appraisal and monitoring mechanisms. Strengthen the construction and management of integrated platforms linked up with terminal products, guide the development of information products and services. Strengthen supervision and management of application stores. Strengthen government and secret information system security management, guarantee the security of information resource sharing between departments interacting and connecting with important information systems. Implement hierarchical information security protection systems, strengthen supervision and management over network and information security, and increase network and information security supervision and management capacity and system security protection levels.

(18) Strengthen personal information protection. Implement the National People’s Congress Standing Committee Decision concerning Strengthening Online Information Protection, vigorously promote and publish legal structures for online information security, personal information protection, etc., clarify the duties of Internet service providers in protecting personal information, formulate user information protection standards, standardize the collection storage and use of personal information by service businesses.

(19) Standardize information consumption market order. Strengthen supervision and management over information services, online trading activities, product and service quality, etc.,. according to the law, investigate and prosecute intellectual property rights infringements, online swindles and other such unlawful and criminal activities. Strengthen propaganda on employment standards, guide enterprises to do honest business, realistically implement social responsibilities, resist pushing out or slandering competitors, harming consumers’ lawful rights and interests and other such unlawful acts. Strengthen sector self-discipline, vigorously give rein to the function of sector associations, encourage third-party credit service organs meeting conditions to launch commercial credit appraisal. Perfect enterprise dispute mediation mechanisms, prevent that enterprises abuse dominant market positions and other acts of improper competition. Further broaden and strengthen consumer rights protection channels, strengthen social supervision and management.

VII, Perfect supporting policies

(20) Deepen administrative examination and approval structure reform. Strictly control new administrative examination and approval programmes. Evaluate and tidy up existing examination and approval, ratification, filing and other administrative examination and approval matters related to information consumption, reduce their scope to the largest possible extent, stress the reduction of non-administrative license examination and approval and qualification licensing, strive to eliminate all sorts of administrative, regional or operational thresholds obstructing information consumption. On the basis of a number of already cancelled  administrative examination and approval programmes, again cancel or transfer to a lower level a batch of administrative examination and approval programmes and administrative management programmes including telecommunications fees, computer information system integration enterprise qualification accreditation, information system project supervision and management work unit accreditation, and supervision and management engineer qualification accreditation. Optimize those administrative examination and approval procedures that need to be maintained, conduct united examination and approval, one-stop-shop services, time-limited case-handling and commitment-type services. According to the thinking of “first a business licence and then a permit, broaden entry and manage strictly”, accelerate moving forward with registered capital subscription registration structures, reduce the establishment thresholds for Internet enterprises.

(21) Expand the strength of fiscal policy support. Perfect high and new technology enterprise authentication and management rules, ensure that Internet enterprises authenticated as being high and new technology enterprises enjoy corresponding preferential income tax rates according to the law. Implement enterprise research and development fee pre-tax deduction policies, reasonably expand the scope of deduction. Vigorously move forward with trials to change the post and telecommunications business tax into a value added tax. Further implement some policies to encourage software and integrated circuit industry development. Expand the implementation strength of existing fiscal policies supporting small and micro-enterprises, realistically reduce Internet small and micro-enterprise burdens. Research and perfect radio fee policies, support economic and social informatization construction.

(22) Realistically improve enterprises’ financial environment. Financial organs shall, according to all financial policies to support small and micro-enterprise development, provide preferential support to Internet small and micro-enterprises. Encourage innovative and maturing Internet enterprises to go onto Growth Enterprise Markets and other such markets, steadily broaden the distribution of enterprise debt, company debt, mid-term bills and small or mid-size enterprises’ self-raised bonds. Explore the development of merger and acquisition investment funds, standardize the development of innovative products for privately-issued equity investment funds and risk investment funds, perfect information service industry entrepreneurship investment and support policies. Encourage financial organs to innovate financial products and service methods aimed at the characteristics of Internet enterprises, launch intellectual property rights pledge financing. Encourage financial guarantee organs to assist Internet small and micro enterprises to increase credit and funding.

(23) Improve and perfect telecommunications services. Establish and complete cooperative and fair competition mechanisms for basic telecommunications operation enterprises and Internet enterprise, radio and television enterprise, information content suppliers, etc. , standardize enterprises’ operational activities, strengthen fee supervision and management. Basic telecommunications operations enterprises must strengthen their basic telecommunications service capacity and realize a reasonable reduction of telecommunication fees and transparent fees. Encourage non-governmental capital to participate in broadband network infrastructure construction, broaden non-governmental capital-supported mobile telecommunication sales business trials, support non-governmental capital to invest in the Internet area, accelerate the implementation of policies related to non-governmental capital operation data centre business, simplify data centre license issuance examination and approval procedures, encourage non-governmental capital to enter into basic telecommunications operations markets through shareholding methods. Perfect telecommunications and Internet supervision and management structures and technology methods, guarantee that equal access is realized for enterprises and autonomous choice is realized for users.

(24) Strengthen the construction of legal, regulatory and standard structures. Promote the revision of the Trademark Law, the Consumer Protection Law, the Standardization Law, the Copyright Law and other such laws and regulations, accelerate the revision of the Internet Information Service Management Rules., the Commercial Secrets Management Regulations and other such administrative regulations. Accelerate the construction of standard structures for products and services in focus and emerging information consumption areas, give rein to the function of standards in supporting industrial development. Expand intellectual property rights protection strength, guide the healthy and orderly development of standards, patent and other industrial alliances.

(25) Launch information consumption statistical monitoring, trials and demonstrations. Scientifically formulate statistical categories and standards for information consumption, launch information consumption statistics and monitoring. Strengthen information platform construction, guarantee the usability, reliability and effectiveness of statistical data. Strengthen dynamic analysis, timely publish relevant information to society, and reasonably guide the expectations of consumers. In regions meeting conditions, launch the construction of information consumption trial and demonstration cities (counties, districts), support the construction of emerging information consumption demonstration projects, encourage all local levels’ People’s Governments to suit measures to local conditions, research and formulate preferential policies to stimulate information consumption.

All localities and all departments must, according to the requirements of these Opinions, further understand the positive effect of stimulating information consumption for broadening internal demand, realistically strengthen, organize, lead and coordinate matters, clarify tasks and implement responsibilities, formulate concrete implementation plans as quickly as possible, perfect and make detailed corresponding policy measures, firmly do corresponding work well, guarantee that real results are achieved.

State Council

8 August 2013




2 thoughts on “Some Opinions concerning Stimulating Information Consumption and Expanding Internal Demand

    […] China’s creative industries, at a time where equally, a number of measures is announced to expand internal information (and therefore media) consumption, and the film sector seems to be doing better than ever before, to a significant extent due to […]

    Latest Updates | China Copyright and Media said:
    September 21, 2013 at 10:48 am

    […] Some Opinions concerning Stimulating Information Consumption and Expanding Internal Demand (2013) […]

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