Country Operations Business Plan : People's Republic of China 2014–2016

CONSISTENCY OF THE BUSINESS PLAN WITH THE COUNTRY PARTNERSHIP

STRATEGY

1. The country operations business plan (COBP) 2014–2016 for the People's Republic of China (PRC) is consistent with the priorities of the country partnership strategy (CPS) 2011–2015 for the PRC.

The CPS 2011–2015 is fully aligned with the priorities of the PRC government's 12th Five–Year Plan (12th plan) 2011–2015 and the Strategy 2020 of the Asian Development Bank (ADB).

Given that the current CPS covers 2011–2015, it does not include the final year of the forward lending pipeline (i.e., 2016). In developing the 2016 program, the PRC and ADB assumed that the overall strategic directions and priority areas will remain largely unchanged from the 12th plan, although the CPS 2016–2020 will be aligned with the 13th Five–Year Plan (13th plan). As part of its technical assistance (TA) support, ADB is providing inputs for the 13th plan. The current CPS’s strategic pillars of inclusive and environmentally sustainable growth reflect the PRC’s efforts to promote integrated rural and urban development, clean energy and energy efficiency, and resource conservation and environmental protection.

The pillar of regional cooperation and integration reflects the joint efforts to promote cooperation between ADB’s developing member countries on knowledge sharing and the creation of regional public goods.

2. Against the backdrop of (i) continued uncertainty in the global economic situation, (ii) major challenges for the PRC as set out in the 12th plan and the 18th National Congress of the Communist Party of China, and (iii) a comprehensive reform agenda announced at the Third Plenary Session of the 18th Communist Party of China Central Committee, a more innovative and proactive approach to PRC–ADB operations would be needed in meeting the PRC’s complex and changing needs. In fact, innovation and value addition have been at the heart of ADB’s operations in the PRC, and further efforts will be made in this regard. Innovation-oriented cooperation is important in promoting economic transformation toward innovation-driven development. ADB’s operations in the PRC will continue to support projects that can help contribute to regional and global public goods, particularly in relation to environmental rehabilitation and protection, as well as mitigation of climate change. Joint efforts to “green” the portfolio have been a major highlight of ADB’s operations in the PRC. As the PRC strives to become a high-income country, the private sector and knowledge will play an increasingly important role in advancing the country’s economic development.