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Reform in “Area-Based Evaluation Mechanism” Goes in Full Swing
2018-02-05 09:58:12

Recently, the Guidelines on Deepening the Reform of Area-Based Evaluation Mechanism (hereinafter referred to as “the guidelines”) has been formally released by the Provincial Government, which means the reform in “area-based evaluation mechanism” is going in full swing.
According to the concept of “emptying the cage to accommodate a new bird”, the Provincial Government actively explores and promotes the reform in area-based evaluation mechanism. Early in 2006, Shaoxing County (now Keqiao District) government initiated the idea of judging an enterprise by its area-unit efficiency, and preliminarily developed an area-based restraint and evaluation mechanism which focuses on effective use of land, energy saving and emission reducing. This practice soon spread to other parts in the province. By the end of 2017, this area-based evaluation mechanism had been applied to all the enterprises that occupied an area of 5 mu or above, and covered 31 manufacturing industries in all the cities and counties.
By deepening the reform in “area-based evaluation mechanism”, the Provincial Government aims to promote the transformation in quality, efficiency and motivation in economic development, and to keep improving the total factor productivity.
The guidelines highlight a more extensive scope of comprehensive evaluation, a more scientific allocation of resources, and a more exact service for enterprises. By expanding the scope of evaluation, there would be more enterprises in the province that consume less but produce more. According to the guidelines, by 2020, all the industrial enterprises, service enterprises above designated size (not including wholesale and retail enterprises, hotels and restaurants, securities, banks and insurance enterprises, and real estate enterprises), and enterprises in industrial parks, economic and technological development zones, hi-tech development zones, small and mini-scale industrial parks and characteristic towns (not including characteristic towns of historical or classical industries) will be included in the area-based comprehensive assessment system.
Meanwhile, the government will further enforce the differentiated allocation of resource elements. According to the principle of “more efficient, more resources allocated”, it will develop an incentive and restrictive mechanism that links the resource allocation of land, energy and emission with the area-unit efficiency of a city, a county or a district.

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