Abstract

On April 9, 2020, the CPC Central Committee and the State Council issued “Opinions on Building a More Complete System and Mechanism for Market-oriented Allocation of Factors” (hereinafter referred to as the Opinions), which made an important deployment to promote the five production factors to achieve a higher level of market-oriented allocation. As the key link of power allocation, Grid Companies are directly related to the economic and social development of the whole country. This paper analyzes the main contents of the opinions in detail, studies the impact of the opinions on power network planning and construction, labor employment, capital operation, technological innovation, the development of emerging industries of Grid Companies, and puts forward targeted suggestions to provide theoretical support for the development of Grid Companies.

Highlights

  • After more than 40 years of reform and opening, the pricing of Chinese goods and services have changed from government pricing to market pricing, but the cultivation of factor markets is relatively lagging, which has affected the decisive role of the market in resource allocation

  • In terms of data factor, efforts are made to accelerate the cultivation of the data factor market and comprehensively enhance the value of data elements

  • As the scope of land allocated by the government shrinks, it is expected that the proportion of construction land allocated by the government for Grid Companies substations, line corridors, and business halls will be reduced, and some will obtain land use rights through market transactions, and land costs will rise

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Summary

INTRODUCTION

After more than 40 years of reform and opening, the pricing of Chinese goods and services have changed from government pricing to market pricing, but the cultivation of factor markets is relatively lagging, which has affected the decisive role of the market in resource allocation. The “Opinions on Building a More Complete System and Mechanism for Market-oriented Allocation of Factors” (hereinafter referred to as the Opinions) has carried out a top-level design of the market-oriented allocation of factors from the system and mechanism level. It is important to improve the quality of factors and the efficiency of allocation through a fluid mechanism, guide all kinds of factors to gather in advanced productive forces, promote changes in the quality, efficiency, and power of economic development, and accelerate the improvement of the socialist market economic system

CONTENT OF “OPINIONS”
Impact on power network planning and construction
Impact on labor
Impact on capital operations
Impact on technological innovation
Impact on the development of emerging industries
SUGGESTED ACTIONS
Full Text
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