China is undergoing its third major tax and fiscal reform in modern history

In 1994, China adjusted the tax distribution system and tax structure between the central and local governments. In 2013, China began allowing local governments to issue local bonds. And this year, more fiscal revenue will be transferred from the central to local governments. For example, the collection of the consumption tax will be moved downstream and stably allocated to local governments.

Real Estate: Accelerate the establishment of a housing system that supports both renting and purchasing; fully empower city governments with autonomy over real estate market regulation, implementing policies tailored to each city.

Market: Commit to "fully leveraging the decisive role of the market in resource allocation."

Private Sector: Further open major national scientific research infrastructure to private enterprises and deeply eliminate market entry barriers. Improve financing support policies and systems for private enterprises.

Although the decision document does not specify how the related policies will be implemented, the imposition of additional taxes on goods might further dampen consumer confidence.