Guiding Opinions of the General Office of the State Council on Actively Promoting the Innovation and Application of Supply Chains

Guiding Opinions of the General Office of the State Council on Actively Promoting the Innovation and Application of Supply Chains
Guiding Opinions of the General Office of the State Council on Actively Promoting the Innovation and Application of Supply Chains

Guo Ban Fa [2017] No.84

October 5, 2017

People's governments in all provinces, autonomous regions and municipalities directly under the Central Government, all ministries and commissions under the State Council, and authorities directly under the State Council,

Oriented toward customer demands, the supply chain is a form of organization that aims to improve quality and efficiency by integrating different resources, in order to achieve highly-efficiency and synergy throughout all stages of products, including the design, purchase, production, sales, service, etc. Along with the development of information technology, supply chains have developed into a new stage of smart supply chain where it is integrated in a deep-going manner with the internet and the internet of things. To accelerate the innovation and application of supply chains, promote innovation in forms of industry organizations, business models and ways of government governance, and make further progress in the supply-side structural reform, the following opinions are hereby put forward upon approval of the State Council.

I. Significance
1. Putting into place significant initiatives under the new development philosophy
As the supply chain is characterized by innovation, synergy, win-win benefits, openness and greenness, making supply chains develop in an innovative way is beneficial to the accelerated integration of industries, deepened division of work among the public and enhanced capacity for integration and innovation, conductive to forming a mechanism of coordinated development for the sake of mutual benefits among upstream and downstream enterprises in supply chains, and helpful to shape a green industry system covering all stages, such as the design, production, circulation, consumption and recycling.
2. A critical part of the supply-side structural reform
Supply chains promote industries to develop with integration into each other and in a synergistic manner by integrating resources and optimizing processes, helping to consolidate effective connection between different stages from production to consumption, cut operating and trading costs of companies, promote the match of supply and demand correctly and the transformation and upgrading of industries, and boost quality of products and services in all aspects. The regulated development of the supply chain finance favors the expansion of ways available for micro, small and medium-sized enterprises to raise funds and ensures funds solicited to flow into real economy.
3. An important vehicle for leading in globalization and improving competitiveness
Efforts to promote the layout of supply chains in the globe and strengthen cooperation and mutual benefits between partner countries and regions are helpful for Chinese enterprises to get themselves integrated into the global supply chain framework to a larger scale and in a deep-going manner, facilitate the implementation of the "Belt and Road" Initiative, and create a global community of shared interests and destiny. A success in forming supply-chain-based new rules for global trade does good to increasing China's discourse weight in economic governance across the world and guaranteeing safety of China's resources, energy and industries.

II. General Requirements
1. Guiding Thoughts
Implement fully the guidelines from the 18th National Party Congress and those of the third through sixth plenary sessions of the 18th Party Central Committee, put into practice the principles from General Secretary Xi Jinping's major addresses and his new vision, thinking, and strategies for China's governance, earnestly implement decisions and arrangements made of the Central Committee of the Communist Party of China and the State Council, promote balanced economic, political, cultural, social, and ecological progress and coordinated implementation of the Four-Pronged Comprehensive Strategy, firmly uphold the people-oriented development philosophy, remain committed to the underlying principle of making progress while keeping performance stable, gain a strong understanding of and put into practice the new development philosophy characterized by innovation, coordination, greenness, openness and sharing, give central importance to improving the quality and returns of development, realize the innovative development of new ideas, technologies and models regarding supply chains through in-depth combination of supply chain and the internet as well as the internet of things and under the support of information technology, standardization and credit systems to be set up and the talent training, effectively integrate diverse resources and elements, increase the degree of integration and synergy among industries, shape a smart supply chain framework supported by big data, shared through the internet and involved in intelligent collaboration, press ahead the supply-side structural reform, and boost the competitiveness of Chinese economy on the global stage.
2. Development Objectives
By the year 2020, a group of new technologies and models for supply chains that are appropriate to national situations of the country will have come into being and a smart supply chain framework that covers almost all key industries in China will also have been constructed then. With significantly increased role in promoting cuts in costs and increase in efficiency, the match of supply and demand and upgrading of industries in the future, supply chains will become an important pillar for the supply-side structure reform. Furthermore, approximately 100 globally leading supply chain enterprises will take shape, and the supply chains for major industries will be globally competitive and leading, turning China into a critical hub for innovation and application of supply chains.

III. Key Tasks
1. Promoting the integrated development of the primary, secondary and tertiary industries in rural areas.
(1). Innovating the organizational system for the agricultural industry. Family farms, farmers' cooperatives, enterprises leading in the agriculture industrialization, social service organizations for agriculture are encouraged to work together to set up a supply chain framework for the agriculture sector that integrates production, processing, circulation and services regarding agricultural products, to develop modern agriculture that combines the plantation, cultivation, processing, production, supply, distribution, and domestic and foreign trade.
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