What did Wu Xiangdong Suggest during the “Two Sessions”?
2016-04-06

In 2016, Wu Xiangdong, Chairman of VATS Group and Founder of Jindong Capital who is also a NPC delegate, submitted the Suggestions for the Government Department Concerned to First Ensure Enough Funds, Eliminate Outdated Capacity of High-risk Industries and Promote Safe Development of the Fireworks & Crackers Industry and the Suggestions on Improving People’s Mental Health when he attended the two sessions. Those suggestions attracted media’s attention and struck a chord with the public.
Suggestion 1:
Suggestions on Improving People’s Mental Health
Present Situation:
Mental health problems of Chinese people are serious, and have affected sustainable development of a harmonious society in China and hindered the improvement of social productive forces and people’s happiness level. Compared with developed countries, our nation has low requirements for workers in the mental health industry and lacks law support, and people pay no enough attention to mental illness. There is lack of professional service channels about mental health in China. Workers in the mental health industry cannot meet social needs in terms of both quantity and quality.
Suggestions:
First, our nation can consider revising the Mental Health Law by significantly increasing regulations on mental health to strengthen care and services for ordinary people at the state of mental sub-health apart from showing care for people with mental illness;
Second, quality of psychology education should be improved, support should be offered for development of basic psychology and applied psychology, and young people with high quality should be encouraged to devote themselves to this career with huge social value;
Third, publicity of mental health should be strengthened;
Fourth, “psychotherapy” should be included in medical insurance scope to reduce burden on consumers.

Suggestion 2:
Suggestions for the Government Department Concerned to First Ensure Enough Funds, Eliminate Outdated Capacity of High-risk Industries and Promote Safe Development of the Fireworks & Crackers Industry
To improve safe production level of the fireworks & crackers industry, protect people’s lives and property and promote transformation & upgrading of the fireworks & crackers industry, Wu Xiangdong, Chairman of VATS Group and Founder of Jindong Capital who is also a NPC delegate, began to prepare on July 16, 2015. He invited 5 NPC delegates in Hunan Province including Xu Juyun, He Jihua, Zhang Xiaoqing and Huang Xiaoling to carry out investigation of the fireworks & crackers industry. Through such means as investigation of some plants in Liuyang, Hunan Province, enterprises symposium and listening to reports of local government authorities, a large amount of information was obtained. In the two sessions this year, he submitted the following “suggestions”.
Present Situation:
In recent years, such departments as State Administration of Work Safety attached much importance to safe production of fireworks & crackers and preliminarily established a fireworks & crackers production and operation regulations system with attitude of being highly responsible for people’s lives and property. Number of fireworks & crackers production accidents and number of casualties decreased greatly, and number of mass casualties also decreased greatly. The fireworks & crackers industry achieved obvious effect in such fields as safe production and scientific & technological innovation. Industry development environment further improved. Industry order was further standardized. But accident rate remained high during production, transportation and setting off fireworks & crackers and serious and major accidents still occurred occasionally due to such reasons as low starting point, weak basis, dispersed distribution, small scale and poor management of the fireworks & crackers industry and low quality of industry workers.
Suggestions:
1. Conduct improvement and rectification to eliminate outdated capacity.
First, optimize industry layout; second, guide orderly withdrawal of enterprises in non-main production area; third, close enterprises which do not satisfy safe conditions according to law; fourth, support transformation of enterprises which withdrew.
2. Keep order according to law to strictly “fight against illegal production and operation activities”.
First, adopt strict administrative licensing procedures; second, strengthen supervision and law enforcement; third, conduct in-depth specific rectification.
3. Accelerate the promotion of mechanization and informatization construction.
First, guide scientific research institutions and enterprises to independently research and develop new machines for fireworks and crackers; second, make full use of modern information technologies to transform traditional fireworks & crackers industry, take “Internet+the fireworks & crackers industry” action, and promote informatization construction for monitoring on such processes as fireworks & crackers production, operation, storage and transportation.
4. Reform tax system to optimize development environment of fireworks & crackers enterprises.
The State Administration of Taxation should take the lead in and the Ministry of Finance should participate in studying and adjusting fireworks & crackers tax policy as soon as possible, to classify fireworks & crackers as “traditional cultural products”, provide an exemption from 15% consumption tax or impose consumption tax at consumption link, and provide 13% preferential VAT rate.



