Focus on a New Round of Fiscal and Tax System Reform: The 8th Financial Development Forum Held in Beijing

On November 16, 2024, the 8th Financial Development Forum was held at the People's Daily headquarters with the theme "New Round of Fiscal and Tax System Reform Supporting Chinese Modernization". The forum was jointly organized by the China Public Finance Institute at Shanghai University of Finance and Economics (SUFE) and "People's Weekly" magazine of People's Daily, with co-organization from the School of Public Economics and Administration at SUFE and SUFE's Beijing Research Institute. Attendees included Gao Peiyong, a member of the Chinese Academy of Social Sciences (CASS), who delivered a keynote speech, as well as Yao Sheng, former Deputy Director of the Budget Affairs Commission of the Standing Committee of the National People's Congress, Wang Xiaodong, Director of the Economic and Social Department of People's Daily, and other experts and scholars.

In the morning, Xu Tao, Party Secretary of SUFE, and Liu Huaxin, President of People's Daily Publishing House and "People's Weekly", delivered speeches at the opening ceremony. Ding Ding, Editor-in-Chief of People's Daily Publishing House, chaired the opening ceremony.

The Third Plenary Session of the 20th Central Committee of the Communist Party of China released the "Decision of the Central Committee of the Communist Party of China on Further Deepening Reform and Advancing Chinese Modernization" (referred to as the "Decision"), which emphasized the importance of further deepening reform and advancing Chinese modernization. Fiscal and tax system reform was identified as a fundamental and institutional task. China's current fiscal and tax system, established with the 1994 tax-sharing reform, has supported economic growth and regional development for three decades. However, it has issues such as insufficient local financial resources, excessive decentralization of responsibilities, over-reliance on transfer payments, and incomplete, irregular, and non-transparent budgeting. To address these challenges, the "Decision" outlined tasks and objectives for the next five years of fiscal and tax system reform, including improving the budget system, creating a tax system conducive to high-quality development, social equity, and market unity, and creating clear and balanced fiscal relations between central and local governments, appropriately strengthening central government responsibilities, with an increased proportion of central fiscal expenditures.

To support Chinese modernization, this forum invited experts and scholars from academia and practice to explore the goals and tasks of the new round of fiscal and tax system reform.

Keynote speeches were delivered by Gao Peiyong (member of the Chinese Academy of Social Sciences), Guo Qingwang (Level I Professor at Renmin University of China), Yang Zhiyong (President and Researcher of the Chinese Academy of Fiscal Sciences), Jiang Jianping (former Director of the Jiangsu Provincial People's Congress Financial and Economic Committee), and Fan Ziying (Dean of the School of Public Economics and Administration at SUFE and Dean of Fullgoal Institute for ESG Research, SUFE). Topics included "Key Focus Areas for Deepening Fiscal and Tax System Reform", "Three Judgments on Fiscal and Tax System Reform", "Understanding the Goals of Fiscal and Tax System Reform", "Optimizing Social Financial Mechanisms to Promote Chinese Modernization", and "Boundaries of Tax System Structure Optimization". Liu Xiaochuan, Executive Dean and Professor at SUFE's China Public Finance Institute, chaired the keynote speech session.

The afternoon roundtable forum, moderated by Feng Xudong, Editor-in-Chief of "People's Weekly", featured three sub-themes: Rule of Law Leadership, Budget Management, and Tax System Reform.

The Rule of Law Leadership sub-theme was chaired by Liu Xiaobing, Academic Committee Director and Professor at SUFE's School of Public Economics and Administration. Discussions involved Li Chungen (Vice President of Jiangxi University of Finance and Economics), Liu Jianwen (Professor at Peking University Law School), Wang Chong (Vice Dean and Professor at SUFE's China Public Finance Institute), Wang Jinxiu (Professor at School of Public Finance and Taxation, ZUEL), and Xu Guoqiao (former Level I Inspector of the Tax Policy Department, Ministry of Finance).

The Budget Management sub-theme was chaired by Wu Junpei, Honorary Director and Professor at Center for Fiscal and Financial Research of Wuhan University. Contributors included Li Shaogang (former Director of the Investment Review Center, Ministry of Finance), Ma Caichen (Professor at Nankai University School of Economics), Shi Shaobin (Executive Vice Dean and Professor at School of Economics Shandong University), and Xu Shuna (Associate Professor and PhD Supervisor at SUFE's School of Public Economics and Administration).

The Tax System Reform sub-theme was chaired by Liu Rong (Professor at School of Public Finance and Taxation, SWUFE and Director of the Local People's Congress Budget Review and Supervision Research Center). Participants included Lü Bingyang (Professor at the School of Finance at Renmin University of China), Ma Jun (Director and Researcher of the Tax Research Office at the National Academy of Economic Strategy, CASS), Shi Zhengwen (Director of the Center for Research in Fiscal and Tax Law of CUPL and Qian Duansheng Chair Professor), Tian Zhiwei (Vice Dean and Researcher at the Institute of Public Policy and Governance at SUFE), and Zhang Muyang (Vice Dean of the China Public Finance Institute at SUFE).

The 8th Financial Development Forum was successfully held on November 16, 2024, at the People's Daily headquarters. (Photo credit: Liu Houzhu)