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HPCA Held the 3rd Focused Meeting on Member Development in Beijing

HPCA held the 3rd focused meeting on member development in Beijing on 29 September 2015. Theme of the meeting focuses on the biggest emerging industry, i.e. development policy and action of energy conservation and environmental development. Yin Chengjie (HPCA’s Senior Advisor, Special researcher of the State Council, Vice Director of Agriculture and Rural Affairs Committee of 11th National People’s Congress, former Administrative Vice Minister of Agriculture, Vice Secretary of Party Group) gave speech on how companies should run cross-field business in industrial reform and important role of energy conservation and environmental protection in agriculture, farmer and rural area issues. Su Ming (HPCA’s Special Expert, Vice President of Research Institute for Fiscal Science of Ministry of Finance) focused on interpretation of China’s fiscal policies and measures in energy conservation and environmental protection. Peng Jianguo (HPCA’s Special Expert Committee Member, Vice Director of Economy Research Centre of State-owned Assets Supervision and Administration Committee of the State Council) enlightened on reform of state-owned companies, diversified ownership and PPP model and mechanism. Li Junyang (Secretary-General of IEEPA) held the meeting, during which over 30 companies from home and abroad gave speech or report on their own development and situation.

Li Junyang, Vice President and Secretary-General of HPCA, pointed out that 2015 is the last year to plan and carry out missions of the “12th Five-Year Plan”. Average annual growth rate of industry output of energy conservation and environmental protection keeps at above 15%, which is still influenced by the pressure of economic downturn. Yet compared to other industries, it has strong advantage of growing.

During the “13th Five-Year Plan”, energy issue in China continuous to be serious. On the one hand, restrictive standards on resources and environment will be strengthened. On the other hand, we need to maintain economic growth, drive industrial growth rate as well as improve quality of energy growth. The pressure will be unprecedented. After a decade of development since “11th Five-Year Plan” and “12th Five-Year Plan”, this industry has become a dominant force for sustainable development of the future economy and environment. We can effectively drive consumption needs by promoting products that save energy and protect environment; drive growth of social investment in this industry, support reform and upgrade of traditional industry and accelerate transition of economic development by improving engineering technology. In the new round of structural adjustment of the industry, its annual growth rate can be expected to reach over 20%, becoming the dominant industry for national economy. Meanwhile, serious issues still exist, including winner-take-all situation and oligopolistic economy in the industry, promoting high growth of SMEs innovation and product sales in the industry, creating industrial cluster of energy conservation and environmental protection with advanced international level, forming a complete industrial chain and improving technology and competitiveness of product quality in every aspect of the industry. During the “13th Five-Year Plan”, government, institutions and organisations and entrepreneurs of the industry need to act jointly.

Peng Jianguo (HPCA’s Expert Committee Member, Vice Director of Economy Research Centre of State-owned Assets Supervision and Administration Committee of the State Council) pointed out that diversified ownership is a good opportunity for private companies. Private companies and state-owned companies can learn from each other, share brands and jointly create a new model for development through the diversified ownership. There will also be situations where the two different kinds of companies cannot adapt each other well. But the point of innovation is to have the courage to practice, get experience from practice and finally find the best way out.

During the meeting, there was also special guidance for supporting capital of energy conservation and environmental protection industry as well as explanation and analysis of financing ability and approaches regarding market financing.