鄂尔多斯新城
1. Doing the Math Right with Coal and Increasing Effective Supply
Coal is the pillar industry in Ordos. Ordos reduced the capacity by 2.9 million tons in 2016 while carrying out supply-side structural reforms based on its own conditions. The plan to decrease coal production capacity by 900,000 tons has been fully implemented in 2017. Through de-capacity, the prices of coal, chemical products and other bulk commodities are on the rise. In the meantime, Ordos has given a big stage to the coal industry. It has accomplished the “addition” of the supply side structural reforms and improved the quality standard of coal with no efforts spared to build “Ordos Coal” into a high-quality national brand. On February 28, 2016, the local standard of “Ordos Coal Variety and Quality” was formally filed and implemented by the Standardization Administration of the PRC. Starting from August 6, “Ordos Coal” Place of Origin trademark publicized its preliminary examination announcement on the website of Trademark Office of the State Administration for Industry and Commerce.
By carrying out energy brand strategy, Ordos is also committed to promoting rapid development of coal chemical industry, equipment manufacturing, new materials among many other emerging industries. It has cultivated the trend of coal-based multi-transformation to promote the transformation and development of resource-based industries. From January to May, the industrial enterprises above designated size have transformed 37.7 million tons of coal locally. Among them, coal-fired power went up by 12.5% to 29.1 billion kilowatt hours; coke went up by 13.2% to 3.325 million tons; coal urea rose by 9.3% to 849,000 tons; coal oil went down by 4.9% to 446,000 tons; coal methanol increased by 8.1% to 2.175 million tons; and new coal gas rose by 3.1% to 190 million cubic meters.
2. Ordos Targets Key Areas for Transformation and Development
Ordos has perceived the development of modern service industry as a strategic emphasis for stable growth, industrial restructuring and strengthening weakness. Ordos vigorously developed productive services for industries and life-oriented service for places with high density of population and commerce. By focusing on resource advantages, industrial layout and potential market demand, Ordos has highlighted the development of modern logistics, e-commerce, cultural tourism, financial services, health, business services and other industries. In order to fully support the development of modern service industry, Ordos has set up a special fund for service industry and provided some enterprises – which met the requirements – with free offices and conducted free training for relevant practitioners.
Located in Dongsheng District, Inner Mongolia Chundian Food Company Limited is specialized in the production of Mongolian traditional dairy products. However, a good wine also needs advertising. In the past few years, the company business has been tepid. At the beginning of this year, the company worked together with well-known Internet companies, such as Alibaba and Jingdong. Through simultaneous online and offline sales, the products are now sold to more than 30 provinces and municipalities nationwide. Like the Inner Mongolia Chun Dian Food Company, hundreds of enterprises have achieved rapid development because of e-commerce, which has gradually become Ordos’ strong support for modern service industry.
Meanwhile, with its unique natural environment of cool climate and pleasant scenery, Ordos strives to develop its pension industry that is characterized by the motto of “keep healthy, preserve life, enjoy old time”. From January to May, RMB 33.08 billion has been cumulatively invested in the city’s tertiary industry with year-on-year growth of 43%, 33 percentage points higher than the average growth rate of investment in Ordos. The rate of contribution to investment by tertiary industry was 122.4%, which raised investment by 12.2 percentage points. E-commerce, cultural tourism, pension industry, among other industries, are becoming Ordos’ new engine for economic growth.
3. Ordos Promotes “Combination Boxing” for Strengthening Supply-Side Policy Support
Starting from the reform of administrative examination and approval system, Ordos has increasingly streamlined administration and delegated power to lower levels, while fully implementing the construction of power list system which was made public on April 30, 2015 on the Ordos municipal government service network. Ordos became the first Union City publishing the administrative power list at tertiary level in Inner Mongolia Autonomous Region. At the same time, in order to carry out the deployment requirements of the national and autonomous regions on the list of powers and responsibilities and strengthen the supervision over the exercise of government power, on June 30 this year, Ordos published the list of powers and responsibilities and established the “dynamic administration long-term mechanism” for this list. After fully listening to the views of all sectors of the society, Ordos adjusted and optimized the list and drew a clear distinction between administrative powers and responsibilities, so as to ensure that “anything that is not authorized by law is not done; anything that falls into statutory duties is done; and anything that law does not prohibit can be done”.
Ordos has been making efforts for the overall promotion of facilitation in administrative examination and approval services and realizing “more data on the network, more convenience for the people”. It has been working on online examination and approval, online processing and online services. At the same time, it has taken the lead in opening the smart government service network, along with mobile APP, all-in-one PC, WeChat official account and other service terminals. In addition, it has begun its online consultation, online booking, online reporting, form download, material delivery and pre-examinaition, and audio and video interaction, thereby operationalizing city’s three-level government platforms and four-level network. At present, 62 services are available online.
By deeply researching into the benefits of policies and corresponding to the policies released by the central and autonomous region’s governments, Ordos has enacted Ordos City Implementation Plan for Financial Industry’s De-Capacity, De-Inventory, De-Leveraging, Reducing Cost and Making Up for the Weakness; Opinions for Implementation by the Real Estate Industry to do De-Inventory for the Promotion of Stable and Healthy Development of Real Estate Market; General Plan on De-Capacity for Industrial Economy; and Notice on Further Supporting Industrial and Commercial Enterprises’ Measures in Reducing Cost and Improving Efficiency, among many other documents, in order to ensure that the supply-side structural reform are further promoted through the construction of pillar policy system.
In order to ensure a controlled financial policy and financial support, the city has also made a series of policies and measures to prevent financial risks, such as the Ordos City Implementation Plan for Financial Industry’s De-Capacity, De-Inventory, De-Leveraging, Reducing Cost and Making Up for the Weakness. It has made policies for reasonable allocation of financial resources and stable deleverage in constructing a comprehensive financial service system, improving credit delivery, expanding direct financing, accelerating industrial funds, ensuring effective utilization of PPP financing mode, realizing bigger and stronger governmental investment, developing investment and credit linkages and so on. By enacting Opinions on Implementing the Development of Multi-Level Capital Market, Ordos has made policies to support multi-level basic markets in the establishment of support mechanism for multi-level capital market development, award and incentive mechanism, long-term development mechanism, and linkage and coordination mechanism, among other aspects.
The city has proactively promoted the enterprises to increase equity financing and optimize the corporate debt structure. By enacting Notice of Ordos Government on Further Promoting Supply-Side Structural Reform and De-Leverage Work, Ordos has set specific objectives for reduction in non-financial enterprise leverage, improvement in financial enterprise leverage management, improvement in services of financial entities to real economy, governmental debt management, and prevention and control of various types of credit risks. Furthermore, Ordos has made policies on de-leverage to effectively prevent the outbreak of regional and systematic financial risks as well as the risks in private lending. As of 2017, enterprise tax equaling RMB 9.7 billion has been cut or exempted, with RMB 380 million saved in electricity costs. Enterprises’ loans amounting RMB 8.46 billion have been extended and annual interest rate has been reduced by 2 percentage points.
