China Trials Reforms to Boost Market’s Role in Pricing Land, Labor, Capital

China’s government has taken another step toward achieving its long-standing goal of giving markets a “decisive role” in the allocation of resources, with the launch of a pilot program to reform the pricing and trading of factors of production, namely land, labor, capital, technology and data.

The State Council on Thursday released a plan (link in Chinese) that lays out the main tasks and timelines that regions selected to take part in the trial will need to meet by 2025 with the aim of “removing institutional barriers to the free and orderly flow” of the factors.