On March 5th, Premier Li Keqiang delivered a government work report, summarizing the key points of this year's goals and key work as follows:

This year's goal

GDP growth of around 6.5%, striving for better results in practical work; The increase in consumer prices for residents is about 3%; More than 11 million new urban jobs have been created (1 million more than in 2016), and the registered urban unemployment rate is within 4.5%; The energy consumption per unit of GDP has decreased by over 3.4%; Reduce the tax burden on enterprises by about 350 billion yuan and related fees by about 200 billion yuan; Reduce rural poverty by more than 10 million people; More than 13 million people have settled in cities.

Several key tasks this year

Reduce production capacity: further reduce steel production capacity by about 50 million tons and exit coal production capacity by over 150 million tons.

Destocking: Third - and fourth tier cities should support residents' self occupation and urban residents' housing needs; Cities under high pressure of rising housing prices should increase residential land reasonably.

Cost reduction: Expand the scope of preferential income tax reduction for small and micro enterprises, significantly reducing their non tax burden.

State owned enterprise reform: The company system reform has been basically completed. Deepen the reform of mixed ownership and take substantive steps in fields such as electricity and petroleum.

Investment: Completed railway construction investment of 800 billion yuan and road and water transportation investment of 1.8 trillion yuan.

Consumption: Promote e-commerce and express delivery into communities and rural areas; Expand the implementation scope of "same line, same standard, same quality" for domestic and foreign products.

Innovation: Accelerate the research and transformation of technologies such as new materials, artificial intelligence, and fifth generation mobile communications.

Environmental Protection: The concentration of fine particulate matter (PM2.5) in key areas has significantly decreased.

Medical: Realize direct settlement of hospitalization expenses for medical treatment in different locations.

Micro Wine Review:

1. Based on the goals and key tasks mentioned in Premier Li Keqiang's State Council Government Work Report this year, in 2017, the country will still prioritize ensuring that the economy operates within a reasonable range.

That is to say, the overall environment for the development of the alcohol industry has not undergone significant changes, which is a "reassurance pill" for the alcohol industry that has already adapted to the new normal of the economy and is gradually recovering.

2. From the goal of reducing corporate tax burden, this is the most direct benefit and the biggest highlight for the liquor industry. Some industry insiders said that the tax standard of alcohol industry has always been relatively high. In Yunnan and other provinces, the comprehensive tax rate of Baijiu was even more than 40%.

At present, the value-added tax on Baijiu is levied at the rate of 17%. This report reveals that the tax burden will only be reduced but not increased. It is expected that the burden of liquor enterprises will be reduced this year. The competitiveness of backbone liquor enterprises will be more obvious. The liquor industry will gradually concentrate on large enterprises, advantageous enterprises, and medium-sized Baijiu enterprises. Small backward liquor enterprises will slowly withdraw or even be eliminated due to weak competitiveness, further accelerating the concentration of the industry.

3. In terms of the increase in consumer prices by about 3%, the creation of new urban employment, the reduction of rural poverty, and the achievement of more than 13 million people settling in cities, the country will vigorously solve employment problems, improve the income level of the people, and spare no effort to promote the process of urbanization. This is a tangible benefit for the alcohol industry. After all, increasing the income of ordinary people and promoting urbanization both mean upgrading consumption.

For Baijiu, consumption upgrading means brand upgrading. Brand pricing has become an important feature of liquor product consumption choices. One brand represents one price. It can be expected that strong Baijiu brands will gain more this year.

Consumer upgrading also means an upgrade in the cost-effectiveness of alcoholic products, with more distinctive and cost-effective wine experiences and products with more convincing demands being easier to capture consumers. This is a good news that cannot be missed for regional famous liquor enterprises.

Upgrading consumption also means upgrading services. Only distributors and famous liquor chain stores that serve consumers well and meet their needs can keep up with the pace of consumption upgrading. Distributors who take action ahead of the trend will have greater development.

4. From the perspective of state-owned enterprise reform, some industry experts believe that although the liquor industry is not a key industry or field of national attention. However, most state-owned Baijiu enterprises are large, have significant support for local finance, and have significant influence on local economic life, so the state-owned reform of liquor enterprises is also the focus of governments at all levels this year.

After all, promoting restructuring in the liquor industry is conducive to unleashing corporate vitality. By binding the interests of management, adopting employee stock ownership, and even introducing strategic investments and excellent distributors to invest, it can stimulate the enthusiasm of management and employees, and have a significant positive effect on liquor brands and markets. Moreover, there have been successful model cases in the alcohol industry, which is a clear advantage for promoting the healthy development of the alcohol industry.

5. According to industry insiders' analysis, the government's measures in investment, consumption, innovation, environmental protection, and healthcare are also conducive to the development of the alcohol market.

These measures will bring a large amount of monetary funds to the market. Based on the consistency between the development of the alcohol industry and economic development, as well as the lagging effect of consumer market reactions, the alcohol market will also usher in a major bull market in the next two to three years.