FULL TEXT OF PREMIER ZHU RONGJI’S REPORT ON THE OUTLINE OF
THE TENTH FIVE-YEAR PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT (2001-2005)
(DELIVERED AT THE FOURTH SESSION OF THE NINTH NATIONAL PEOPLE’S CONGRESS ON MARCH 5, 2001)
Beginning this year, China will implement the first five-year plan for the new century. The Proposal of the CPC Central Committee for the Formulation of the Tenth Five-Year Plan for National Economic and Social Development was adopted at the Fifth Plenary Session of the Fifteenth CPC Central Committee. The Proposal defined objectives, guiding principles and major tasks for China ’s national economic and social development during the next five years. In the spirit of the Proposal and on the basis of opinions solicited from all sectors of society, the State Council has drawn up the Outline of the Tenth Five-Year Plan for National Economic and Social Development (Draft) of the People’s Republic of China . On behalf of the State Council, I now make my report to you and present the Outline (Draft) for your consideration and also for comments from members of the National Committee of the Chinese People’s Political Consultative Conference.
经济体制改革全面推进，社会主义市场经济体制初步建立。国有大中型企业建立现代企业制度的改革取得重要进展。大多数国家重点企业进行了公司制改革，其中相当一部分在境内外上市。企业扭亏增盈成效显着，２０００年国有及国有控股工业企业实现利润２３９２亿元，为１９９７年的２．９倍。国有大中型企业改革和脱困的三年目标基本实现。在公有制经济进一步发展的同时，私营、个体经济有了较快发展。市场体系建设继续推进，资本、技术和劳动力等要素市场迅速发展，市场在资源配置中的基础性作用明显增强。财 ?nbsp| 体制继续完善。金融改革步伐加快。城镇住房制度、社会保障制度和政府机构等方面改革取得重大进展。国家宏观调控体系进一步健全。
对外开放水平不断提高，全方位对外开放格局基本形成。对外经贸体制改革稳步推进，外向型经济迅速发展。２０００年进出口总额达４７４３亿美元，其中出口２４９２亿美元，分别比 １９９５年增长６９％和６７％。出口商品结构改善，机电产品和高技术产品所占比重提高。对外开放领域逐步扩大，投资环境继续改善。吸收外资规模增大、质量提高。五年累计实际利用外资２８９４亿美元，比 "八五"时期增长７９．６％。国家外汇储备２０００年底达１６５６亿美元，比１９９５年底增加９２０亿美元。
科技、教育加快发展，社会事业全面进步。 "８６３" 计划顺利实施。航空航天、信息、新材料和生物工程等高技术领域获得一批重要成果。基础研究和应用研究取得新进展。部门所属应用型科研院所企业化改革基本完成A其它科研院所体制改革全面展开。科技成果市场化、产业化进程加快。各级各类教育全面发展。基本普及九年义务教育和基本扫除青壮年文盲的目标初步实现。高等教育管理体制改革取得重大进展。扩大高校招生受到群众普遍欢迎。人口和计划生育工作取得新成绩。生态建设和环境保护的力度明显加大。文化、卫生、体育等各项社会事业继续发展。廉政建设和反腐败斗争不断取得成效。社会治安综合治理进一步加强。社会主义精神文明建设和民主法制建设取得新的进展。国防和军队建设迈出新的步伐。
第二，根据经济形势的变化，适时调整宏观调控政策取向和力度。在治理通货膨胀时，注意保持经济持续增长，成功实现 "软着陆"。在抑制通货紧缩趋势时，坚持扩大内需的方针，果断实施积极的财政政策，并在实践中不断完善各项政策措施。既增发国债、扩大投资，又适当增加城镇中低收入居民的收入，鼓励增加消费，从两个方面拉动经济增长。采取提高出口退?nbsp| 率和严厉打击走私等措施，千方百计扩大出口，以平衡国际收支，稳定人民币币值。实行稳健的货币政策，运用利率等多种手段支持经济增长，同时注意调节货币供应量，引导信贷投向，防范和化解金融风险。 第三，把扩大内需和调整经济结构紧密结合起来。根据一般加工工业生产能力普遍过剩的现实状况，把国债投资重点放在基础设施建设方面，同时增加对农业和科技、教育的投入，支持企业技术改造。利用生产数据生产能力相对富余的时机，办成了一些多年想办而没有办成的大事，既拉动当前经济增长，又增强经济发展后劲。
nd sound development, and overall national strength continued to grow. In the five years, China ’s GDP increased by an average annual rate of 8.3% and reached 8.9404 trillion yuan in 2000. The mission of quadrupling the per capita GNP of 1980 has been overfulfilled. As the economy continued to grow and economic performance improved, national revenue in 2000 reached 1.338 trillion yuan, an average increase of 16.5% annually. The output of major industrial and agricultural products now stands in the front ranks of the world’s economies, and commodity shortages were by and large eliminated. Progress was made in industrial restructuring. The quantities of grain and other major agricultural products we are capable of producing increased noticeably, marking a historic change from a long-term shortage of agricultural products to a basic balance in their total supply and demand, with even a surplus during good harvest years. Good results were achieved in eliminating outmoded industrial production capacity, reducing excess production capacity and upgrading technology in key enterprises. Information technology and other new and high-tech industries grew rapidly. Marked success was achieved in infrastructure development, alleviating bottlenecks in energy, transportation, communication, and raw and processed materials.
Economic restructuring was extensively carried forward, and a socialist market economy was preliminarily established. Significant advances were made in the establishment of a modern corporate structure in large and medium-sized state-owned enterprises. Most key state enterprises became corporations, and a considerable number of them were listed on stock markets inside or outside China . There was a marked reduction of losses and increase of profits in enterprises, and total profits from state-owned industrial enterprises and from the industrial enterprises with a controlling share held by the state reached 239.2 billion yuan in 2000, an increase of 190% over the 1997 figure. The objectives of reforming large and medium-sized state-owned enterprises and turning around loss-generating operations within three years were basically attained. At the same time that public sectors of the economy further developed, private and individual sectors also grew rapidly. The market system continued to improve, and the supply of capital, technology and labor expanded rapidly. The basic role of the market in the allocation of resources was noticeably enhanced. The system of finance and taxation continued to improve. Banking reform was accelerated. Major progress was made in the reform of the urban housing system, the social security system and government institutions. The state macro-regulation system was further strengthened.
We opened wider to the outside world, and the pattern of all-round opening took basic shape. Reform of the foreign trade system steadily progressed, and the internationally-oriented economy grew rapidly. The total volume of China ’s imports and exports reached US$474.3 billion in 2000, with exports accounting for US$249.2 billion, a rise of 69% and 67% respectively over the 1995 figures. The mix of exports improved, and the proportion of electromechanical products and high-tech products increased. The spheres of activity open to foreign businesses were gradually widened, and the investment environment was improved. Foreign investment was increased and better utilized. More than US$289.4 billion in foreign funds were put to use during the past five years, an increase of 79.6% over the period of the Eighth Five- Year Plan. China ’s foreign exchange reserves totaled US$165.6 billion at the end of 2000, US$92 billion more than in 1995.
People’s living standards continued to improve, and generally people began to lead a relatively comfortable life. In 2000 the per capita net income of rural dwellers and the per capita disposable income of urban residents reached 2,253 yuan and 6,280 yuan respectively, increasing by 4.7% and 5.7% annually in real terms. There was abundant supply of commodities; the level of consumption continued to rise, and the total volume of retail sales of consumer goods increased by an average annual rate of 10. 6%. Housing, telecommunications, electricity and other aspects of living conditions for both urban and rural residents improved considerably. Personal savings deposits of residents increased by more than 100% over the past five years. The value of stocks, bonds and other financial assets increased rapidly. The number of people below the poverty line in rural areas decreased drastically. The objectives set in the seven-year plan to help 80 million people get out of poverty were basically attained.
The development of science, technology and education was accelerated, and other social undertakings progressed in a comprehensive way. The March 1986 Program to stimulate the development of high technologies was implemented successfully. A number of major results were achieved in the fields of aeronautics and astronautics, information technology, materials science, bioengineering and other high technologies. New advances were made in basic and applied research. The transformation of applied research institutes under government departments into enterprises has been basically accomplished, and restructuring of other research institutes has been carried out in a comprehensive way. The process of getting scientific and technological achievements to the market and applying them in production was accelerated. Progress was made in strengthening various types of education at all levels. Initial success was achieved in fulfilling the objectives of making nine-year compulsory education basically universal in the country and eliminating illiteracy among young and middle-aged people. Major progress was made in the reform of the management system of higher education. The increase of university and college enrollment was widely appreciated by the general public. New advances were made in population management and family planning. Great efforts were made in ecological conservation and environmental protection. Culture, public health, sports and other social undertakings continued to develop. Successive results were achieved in building a clean and honest government and in the struggle against corruption. The administration of all facets of public security was improved. New progress was made in improving socialist spiritual civilization, democracy and the legal system. Continuing progress was made in modernizing national defense and the armed services.
During the Ninth Five-Year Plan period, the Chinese government resumed its exercise of sovereignty over Hong Kong and Macao , and historic progress was made in the great cause of peaceful reunification of the motherland. Since the return of Hong Kong and Macao to the embrace of the motherland, the principle of "one country, two systems" and the basic laws of the two regions have been implemented in a comprehensive way. Outstanding achievements were made in the work of the governments of the special administrative regions. Social stability and economic development were secured in Hong Kong and Macao .
With the fulfillment of the Ninth Five-Year Plan, we attained the strategic objectives for the second stage of China’s modernization drive, which laid a solid foundation for undertaking the Tenth Five-Year Plan and moving on to the third stage. This constituted a great achievement in China ’s socialist modernization drive and a new milestone in the progress of the Chinese nation.
These tremendous achievements in economic and social development during the Ninth Five-Year Plan period were hard-won victories over numerous difficulties. We successfully coped with the challenges posed by unexpected international events. We protected ourselves from the impact of the Asian financial crisis. We controlled inflation during the initial stage of the Ninth Five-Year Plan and curbed deflation in the middle and late stages. We also conquered severe floods and droughts. We attained these achievements thanks to the timely and correct policy decisions made by the CPC Central Committee with Comrade Jiang Zemin at its core in the face of numerous problems and difficulties and to the concerted efforts of the people throughout the country. On behalf of the State Council, I would now like to pay my highest respects to the people of all ethnic groups. You have all been working hard and making contributions in your own fields of endeavor. I also wish to express our sincere thanks to our compatriots in Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan , as well as to overseas Chinese who have shown their concern and support for the development and reunification of the country.
During the implementation of the Ninth Five-Year Plan, we have accumulated a wealth of experience in improving macro-economic management and regulation to meet the requirements for developing a socialist market economy.
First, we have solved problems blocking our advance by stimulating economic development. Development is the fundamental principle. In the face of various social problems, we have always made economic development the central task and adopted effective measures to promote a sustained, rapid and sound development of the national economy, thus providing a foundation for handling other problems properly. Meanwhile, we adhered to the principle of "doing two jobs at once and attaching equal importance to each". We increased our efforts to improve socialist spiritual civilization, democracy and the legal system, and this has created a good political and social environment and provided a strong impetus for economic development.
Second, we made timely adjustments to the macro-control policy in accordance with the changing economic situation. In dealing with inflation, we paid attention to ensuring sustained expansion of the economy and a successful "soft-landing". In curbing deflation, we adhered to the principle of boosting domestic demand, resolutely enforced a proactive fiscal policy, and improved various policies and measures in the course of experience. We issued additional national bonds and expanded investment on the one hand, and we appropriately increased the income of the medium- and low-income urban residents and encouraged more consumption on the other, thus stimulating economic growth. We also adopted such measures as raising the export tax rebate rate and cracking down on smuggling in order to expand exports, achieve a balance of international payments, and keep the value of RMB stable. We implemented prudent monetary policies, adjusted interest rates and adopted many other measures to support economic growth. At the same time, we regulated the monetary supply, guided the direction of credit, and guarded against and reduced financial risks.
Third, we integrated the expansion of domestic demand with economic restructuring. In view of the over-productivity in the general processing industries, investments from national bonds were mainly put into infrastructure development. Investment in agriculture, science, technology and education was also increased, and support was rendered for technological upgrading in enterprises. We made use of the surplus production capacity in the capital goods industry to accomplish some large undertakings we had been wanting to but were unable to do for years. By so doing, we stimulated economic growth and increased the stamina for further economic development.
Fourth, we balanced reform, development and stability. Under complicated and difficult conditions, instead of coming to a halt, reform pressed forward vigorously and in an orderly manner, giving a powerful impetus to economic development. In the meantime, attention was paid to adjusting the magnitude of reform to the tolerance of the people. When economic restructuring and deepening reform unavoidably touched deep-seated interests, great attention was paid and various policies and measures were adopted to safeguard the fundamental interests of the general public. Vigorous efforts were made to implement re-employment projects and ensure that laid-off workers receive their basic living expenses and retirees their old-age pension payment on time and in full. The farmers’ surplus grains were purchased without restriction at a protective price. All these measures helped to safeguard social stability and achieve sustained economic growth.
While fully affirming our achievements, we are clearly aware that there are still numerous problems in our economic and social life. The principal problems are as follows: inappropriate industrial structure and non-coordinated development of local economies; low overall quality of the national economy and low competitiveness in the international market; imperfections in the socialist market economy and conspicuous systematic factors hampering the development of productive forces; a comparatively backward state of science, technology and education, and relatively weak innovative ability in science and technology; a shortage of important resources such as water and petroleum and the deterioration of the ecological environment in some regions; growing employment pressure, slow income increase of farmers and some urban residents, and an increasing income gap; considerable disorder in some areas of the market economy; frequent occurrences of grave accidents; serious corruption, extravagance and waste, formalism and bureaucratism; and poor public order in some localities. The causes for these problems are rather complicated, but they are not unrelated to shortcomings and errors in our work. We must pay great attention to them and take further steps to solve them.
坚持把发展作为主题。强调速度与效益相统一，在提高效益的前提下实现较快的发展。有市场、有效益的速度，才是真正的发展，才是硬道理。综合考虑各方面因素， " 十五"期间年均经济增长速度预期目标为７％左右。这个速度虽然"比"九五"实际达到的速度低一点，但仍然是一个较高的速度。要在提高效益的基础上实现这个目标，必须付出艰巨努力。同时，由于国际国内都存在一些不确定因素，计划的预期目标要留有余地。这样，有利于引导各方面把主要精力放在调整结构和提高效益上，也有利于防止经济过热和重复建设。
II. The Objectives and Guiding Principles of the Tenth Five-Year Plan
Looking ahead at the situation at home and abroad at the beginning of the 21st century, it can be said that the next five to ten years will be an extremely important period for China ’s economic and social development. The worldwide new scientific and technological revolution is progressing rapidly with great momentum. The economic globalization trend is gaining strength. Many countries are actively restructuring their industries, and our neighboring countries are accelerating their development. This international environment presents a severe challenge and a historic opportunity for us to strive to catch up and achieve development by leaps and bounds. At home, we are at a crucial juncture in economic restructuring, and reform is in a very difficult period. Our entry into the World Trade Organization will bring us a number of new problems. We are facing many arduous tasks. Many deep-seated problems need to be solved. All this requires us to seize the opportunity and accelerate development. At the same time, there are many favorable conditions for our national economy to achieve rather rapid development over a fairly long period.
In light of the situation and tasks facing us during the Tenth Five-Year Plan period, the Outline sets forth the main targets for economic and social development in the next five years as follows: maintain a fairly rapid growth rate in the national economy, achieve noticeable success in the strategic restructuring of the economy, and make marked improvement in the quality and benefits of economic growth to lay a solid foundation for doubling the 2000 GDP by 2010; make significant progress in establishing a modern corporate structure in state-owned enterprises, increase the soundness of the social security system, improve the socialist market economy, and open wider to the outside world and strengthen cooperation with other countries; expand avenues of employment, increase the income of urban and rural residents steadily, improve people’s material and cultural standards of living, and improve ecological conservation and environmental protection; accelerate the development of science, technology and education, further improve the quality of the Chinese people, and achieve marked progress in improving spiritual civilization, democracy and the legal system.
The Outline of the Tenth Five-Year Plan embodies the following major guiding principles.
Making Development the Central Theme. We stress a balance between high growth rate and good economic returns and attaining fairly rapid growth by improving economic returns. Sound economic growth must be based on strong market demand and good economic returns. This is a fundamental principle. Based on an overall analysis of conditions in all sectors of the economy, we have set the target for the average annual economic growth rate in the Tenth Five-Year Plan period at around 7%. Though slightly lower than the actual growth rate of the Ninth Five-Year Plan period, it is still fairly high. Arduous efforts have to be made to attain this target through better economic performance. However, as there exist some uncertainties both at home and abroad, we have to leave some leeway when defining our target. This will help people focus on restructuring and improving economic returns, and also help prevent overheating of the economy and redundant development.
Concentrating on economic restructuring. We have already reached the point where we cannot further develop the economy without making structural adjustments. Under the old economic structure and its crude manner of growth, products will not be marketable, and it will be impossible to sustain resources and preserve the environment. We must adjust the economic structure in developing the economy and maintain a relatively rapid growth in structural adjustments. In the next five years, efforts should be intensified to adjust the patterns of economic development between different industries, between different regions, and between urban and rural areas, with emphasis on the industrial structure. We should stabilize and strengthen agriculture as the foundation of the economy, accelerate industrial reform, reorganization, upgrading and optimization, vigorously develop the service industry, accelerate efforts to base the national economy and society on information, and continue to reinforce the infrastructure.
Making reform and opening up and technological progress the driving force. The success of both economic development and structural adjustment depends on institutional, scientific and technological innovation. In the next five years, we must unswervingly pursue reform, open China wider to the outside world, and break down the institutional obstacles to the development of productive forces. This will provide a strong impetus for economic and social development. In addition, we have to give priority to the development of science, technology and education, further implement the strategy of developing China through science and education, invigorate science and technology, train more skilled personnel, and better integrate science, technology and education with the economy.
Making improvement of the people’s living standards the basic starting point. Raising the people’s living standards in both urban and rural areas is the basic goal of our economic development and a crucial factor for expanding domestic demand and stimulating sustained economic growth. We must give priority to raising the people’s living standards. To accomplish this we must create more jobs, increase personal income, distribute income@equitably, improve the social security system, and ensure a more comfortable life for the people.
Coordinating economic development with social development. We should make great efforts to improve socialist spiritual civilization, democracy and the legal system, balance reform, development and stability, accelerate development of various social undertakings, and ensure social stability. We need to pay close attention to and solve issues of population, resources and the ecological environment, take further steps to implement the strategy of sustainable development, and stimulate coordinated economic, social and environmental development.
The Outline for the Tenth Five-Year Plan emphasizes its strategic, macro-economic and policy characteristics. It contains fewer specific targets and sets more tentative ones adjustable to structural changes. The Outline focuses on key development areas and the settlement of major problems, orients our efforts, and presents corresponding policies and measures. It stresses that the role of market mechanisms should be fully exercised in the implementation of the Plan, and that economic levers, economic policy and legislation be further employed in the government’s macro-control. In the process of formulating the Plan, we need to encourage more participation by all elements of society, thus making it a process of giving full scope to democracy, absorbing all useful ideas, and reaching agreement among all sides.
农业、农村和农民问题是关系改革开放和现代化建设全局的重大问题。 "十五"期间要把全面贯彻党在农村的基本政策，加强农业基础地位和增加农民收入，作为经济工作的首要任务，着重抓好以下几项工作。 加快农业和农村经济结构调整。这是提高农业经济效益，增加农民收入的根本途?nbsp| 。在切实保护耕a，稳定粮食生产能力的同时，以优化品种、提高质量、增加效益为中心，积极调整种植业结构，加快发展畜牧业、林业、水产业。发挥各地农业的比较优势，合理调整农业生产的区域布局，发展特色农业，形成规模化、专业化的生产格局，提高商品率。大力促进农业产业化经营，扶持龙头企业，推广"公司加农户"、"订单农业"等多种形式，发展农产品加工、储运、保鲜等产业，提高农业的后续效益。引导乡镇企业结构调整、技术进步和体制创新。发展小城镇，繁荣小城镇经济，积极稳妥地推进城镇化，拓宽农民的就业空间和增收渠道。大力推进科教兴农，加强生物技术、信息技术等高新技术的研究与开发应用，推广优良品种和先进适用技术，积极扶持农业科技产业发展。加强农业社会化服务体系建设。建立农产品市场信息、食品安全和质量标准与检测体系。调整结构要因地制宜，依据市场规律，维护农民生产经营自主权，不搞强迫命令。 积极推进农村各项改革。在长期稳定土地承包关系的基础上，鼓励有条件的地区积极探索土地经营权流转制度改革。根据粮食生产和流通的新情况，继续深化粮食流通体制改革。在适当扩大中央储备粮规模的同时，粮食主销区要加快粮食流通市场化进程，通过与粮食主产区建立长期稳定的购销关系，以及中央储备粮的轮换与调控，保证粮食需要。粮食主产区要继续坚持"三项政策、一项改革" ，按保护价敞开收购农民余粮，中央财政继续给予资金支持，以充分发挥其粮食生产的优势。这样做，既可为主产区腾出粮食销售市场，促进粮价合理回升，也有利于推进主销区农业结构调整，全面增加农民收入。要保护好基本农田，决不允许擅自将耕地改为非农用地，这是一条不可逾越的"红线"。推进农村?nbsp| 费制度改革，取消乡统筹、村提留和其它面向农民征收的一切行政性收费，同时适当提高现行农业?nbsp| 和农业特产?nbsp| ?nbsp| 率。这是保障农民合法权益，减轻农民负担的治本之策。要在总结安徽省试点经验的基础上，加快改革步伐。同?nbsp| 费改革相结合，精简乡镇机构，裁减人员，减少村组干部补贴人数；有条件的地方，适度撤并乡镇。继续深化农村金融改革，积极探索适应农村经济发展要求的农村金融体系。因地制宜加快农村信用社管理体制改革，关键是要明确产权关系，完善法人治理结构，落实防范和化解风险的责任。农村信用社要坚持为农业、农村、农民服务的方向，加强经营管理，充分发挥在农村金融中的主力军和联系农民的金融纽带作用。农业银行和其它金融机构要加强对农业和农村经济的支持。深化农村供销社改革。
III. Strengthening Agriculture as the Foundation of the Economy and Striving to Increase Farmers’ Income
Agriculture, rural areas and farmers are of great importance to the reform, opening up and modernization drive. During the period of the Tenth Five-Year Plan, we need to give top priority to implementing the Party’s basic rural policy, strengthening agriculture as the foundation of the economy and increasing farmers’ income. We must focus on the following aspects of this work:
Accelerating restructuring of agricultural production and the development of the rural economy. This is the fundamental way to improve economic returns in agriculture and increase farmers’ income. While effectively protecting the cultivated land and stabilizing our grain production capacities, we need to restructure the patterns of farming, focusing on improving strains, quality and economic returns. We need to accelerate the development of animal husbandry, forestry and aquaculture. We need to adjust the patterns of agricultural production appropriately in different regions, taking into account their local comparative advantages. Agricultural production needs to be developed in light of local characteristics, and scale of economy and specialization need to be developed to raise the proportion of production marketed. Great efforts need to be exerted to promote the industrial management of agricultural production, to support leading enterprises, and to spread the practice of farmers working with companies or producing crops on a contract basis. We need to develop industries for processing, storing and transporting agricultural products and keeping them fresh in order to gain better returns from intensive processing of agricultural products. Town and township enterprises need guidance in restructuring, technological progress and institutional innovations. Small towns and cities need to be expanded; their economies need to be made prosperous; and steady progress needs to be made in urbanization in order to increase job opportunities and sources of income for farmers. We need to work diligently to reinvigorate agriculture through science and education. We need to strengthen the research, development and application of biotechnology, information technology and other high and new technologies, and spread the use of improved strains and advanced technologies. Great efforts need to be made to stimulate the industrialization of agriculture by applying agricultural science and technology. We need to improve the socialized service system for agriculture. Market information systems for agricultural products need to be established and standards and inspection procedures need to be formulated to ensure food safety and quality. In restructuring agriculture, we need to proceed in light of local conditions and follow the principles governing the development of the market, and we need to protect farmers’ right to independence in production and operation and refrain from pressure and coercion.
Actively promoting the reforms in rural areas. While keeping the system of stable, long-term land contracts as a foundation, areas where conditions permit should be encouraged to explore a land operation rights transfer system. In light of the new situation in grain production and distribution, we need to continue to deepen the reform of the grain distribution system. While increasing the central grain reserves appropriately, the main grain-consuming areas should accelerate the pace of market- oriented grain distribution, and their need for grain should be met by establishing long-term and stable purchase and sale relations with the main grain-producing areas and by renewing and regulating the central grain reserves. The relevant departments in the main grain-producing areas should continue to adhere to the three policies of purchasing surplus grain from farmers without limit at protective prices, of having state-owned grain purchase and wholesale businesses sell grain at a profit, and of ensuring closed operation of grain purchase funds and the reform of state-owned grain purchase and wholesale businesses. These departments need to purchase surplus grain from farmers without limit at protective prices, and they will continue to receive funds from the central treasury to make full use of their superiority in grain production. This will expand the grain market for the main grain-producing areas and promote a reasonable rise in grain prices. This will also be conducive to adjusting the agricultural structure in the main grain-consuming areas and broadly increasing farmers’ incomes. Basic farmland should be protected, and conversion of cultivated land to non-agricultural land without authorization will never be allowed. This is where we draw the line. The system of administrative fees and taxes in rural areas needs to be reformed by abolishing all administrative fees imposed exclusively on farmers, such as contributions to township and village public accumulation funds and at the same time by raising the current rate s of agricultural tax and special agricultural product tax where it is appropriate. This is a sound policy for safeguarding the legitimate rights and interests of farmers and reducing their burden. Reform needs to be accelerated with a review of the experience gained from pilot projects in Anhui Province . As a result of the reform of taxes and administrative fees, it will be necessary to decrease the number of the administrative bodies and employees in towns and townships, and reduce the number of village and group functionaries receiving government subsidies. It will be necessary to dissolve or merge some townships and towns where conditions permit. We need to continue to deepen the financial reform in rural areas and actively seek a financial system that helps stimulate rural economic development. It is necessary to accelerate the reform of the management system for rural credit cooperatives in light of local conditions. It is of particular importance to clearly establish ownership, exercising better control over rural credit cooperatives by bringing them within the legal person framework, and hold individuals responsible for preventing and defusing financial risks. Adhering to their mission of serving agriculture, rural areas and farmers, rural credit cooperatives must strengthen their operation and management, and expand their roles as the dominant financial force in rural areas and as the financial link between farmers. The Agricultural Bank of China and other financial institutions should also give more support to agriculture and the rural economy. The reform of rural supply and marketing cooperatives should be deepened.
Stepping up the construction of agricultural and rural infrastructure. More investments need to be made to accelerate the harnessing of big rivers and lakes. No time can be lost in constructing pivotal projects on major rivers and reinforcing decaying reservoirs to improve their flood-control, flow- management and storage capabilities. Great efforts need to be made to upgrade the water conservancy projects in large irrigated areas, and farmers need to be encouraged to play a more active role in building irrigation and water conservancy projects. We should do a good job in water and soil conservation. Efforts to build national commodity grain bases and quality agricultural product bases need to be intensified to stimulate comprehensive agricultural development. We need to continue to increase the construction of power grids, telecommunications, radio and television installations, roads and water supply facilities in rural areas to improve the production, living and marketing conditions there. Continuing to fight poverty in rural areas. Although the seven-year plan to help 80 million people out of poverty has been basically fulfilled, it will be an arduous task for a long time to bring about a fundamental change for the better in poverty-stricken areas. We need to intensify our efforts to fight poverty and priority needs to be given in our anti-poverty endeavor to ethnic minority areas in central and western China , the old revolutionary base areas, border areas and destitute areas. Assistance to the poor needs to continue to be development- oriented. More funds need to be put into anti-poverty efforts in every possible way. We need to expand the scale of programs that provide jobs as a form of relief and support efforts in poverty-stricken areas to improve the infrastructure.
加强水利、交通、能源等基础设施建设，高度重视资源战略问题。水资源短缺，是我国经济和社会发展的严重制约因素。要把节水放在突出位置，建立合理的水资源管理体制和水价形成机制，全面推行各种节水技术和措施，发展节水型产业，建立节水型社会。加强水污染防治，搞好污水处理和利用。加紧南水北调等重大项目的规划和建设。要加强公路、铁路、港口、航道、机场、管道系统的建设，建立健全畅通、安全、便捷的现代综合运输体系。能源特别是石油问题，是资源战略的一个重要问题。国内石油开发和生产不能适应经济和社会发展的需要，供需矛盾日益突出。必须千方百计节约和替代石油，加快石油和天然气勘探与开发，积极利用国外资源，并尽快建立石油等战略资源的储备制度。积极推进大型煤矿改造，建设高产高效矿井，重视洁净煤技术的开发利用。充分利用现有发电能力，积极发展水电、 ?nbsp| 口大机组火电，压缩小火电，适度发展核电。加强城乡电网建设和改造，推进全国联网。深化电力体制改革，逐步推进厂网分开、竞价上网。重视发展各种新能源。
加快发展服务业。这是促进结构升级和增加就业的重要途 ?nbsp| 。积极发展信息、金融、会计、咨询、法律服务等现代服务业，提高服务业整体水平。运用现代经营方式和服务技术，改造商贸流通、交通运输、市政服务等传统服务业，提高服务质量和效益。发展面向居民消费的房地产业、社区服务、旅游、餐饮、娱乐、健身等产业，增加服务内容。要深化改革和采取必要的政策措施，形成有利于服务业发展的环境。
IV. Energetically Optimizing and Improving Industrial Structure
Readjusting and improving industrial structure is the key to the strategic restructuring of the economy. We must stress the following aspects.
Enhancing traditional industries with high, new and advanced technologies. We need to pay close attention to the restructuring and reform of traditional industries. In these industries enterprises are the main entities, and they should be directed by the market and supported by technological advances. The following measures should be taken. First, we need to increase product variety, improve product quality, save on energy, reduce waste, prevent and control pollution, and increase productivity. These measures are most important in the energy, metallurgy, chemical, machinery, automobile, building materials, construction, textile and light industries. Support should be given to a number of key enterprises for technological renovation to improve their technology and equipment. Second, we need to speed up development of universal, key and accessory technology that can stimulate structural advancement by depending on both domestic innovation and imported technology. We need to stimulate equipment manufacturing and design and build complete plants of large, advanced and highly-efficient equipment urgently needed in China . Third, in major industries, we need to encourage the establishment of a number of large companies and enterprise groups through stock listing, merging, association and reorganization. Such companies and groups need to have their own intellectual property rights, core products and a strong central leadership, and they should become key players and pillars in industrial readjustment and advancement. Fourth, we need to support and promote renovation of old industrial bases, fully utilizing their strong foundation and concentration of talent to raise their production levels. The cities and large mining areas which depend on the exploitation of mineral resources should develop other industries to substitute for mining in light of local condition.
At the same time, we need to take economic, legal and necessary administrative measures to continue closing down plants and mines that produce shoddy goods, waste resources, cause serious pollution, or operate under unsafe conditions. Outmoded and surplus production capacity needs to be abandoned or reduced. Relocation and reconstruction of these outmoded facilities will be prohibited. Enterprises that have been in the red for long with little hope of recovery and whose debts surpass assets should be allowed to go bankrupt, and mines with exhausted resources should be closed. We should take the initiative to facilitate and gradually standardize the channels for encouraging such enterprises to quit the market.
Developing new and high-tech industries, and using information technology to stimulate industrialization. In accordance with actual situations, we need to selectively stimulate development of new and high-tech industries such as information technology, bioengineering and materials science. We need to lend support to important high-tech projects, such as high-speed, wide-band information networks, key integrated circuits and new-type carrier rockets in order to strengthen China ’s new and high-tech industries on an overall as well as individual basis. We need to expand the manufacturing of information technology products, develop the ability to manufacture all components of integrated systems, and enhance our capability for independent development. We also need to develop the software industry, strengthen the development of the information infrastructure, and apply digital and network technologies extensively in the technical development, production and marketing activities of enterprises, and in public services and government administration, so that industrialization and the information revolution go hand in hand.
Intensifying construction of water conservation, transportation, energy and other infrastructural facilities and attaching great importance to strategic issues concerning resources. Lack of water resources is a serious limitation on the economic and social development of our country. We need to put water conservation high on our work agenda, establish a rational system for management of water resources and a rational pricing mechanism, comprehensively adopt water conservation technologies and measures, develop water-efficient industries, and raise the entire society’s awareness of water conservation. Prevention and control of water pollution should be strengthened. We should improve sewage treatment and utilization. We need to expedite the planning and building of projects to divert water from the south to the north. In transportation, we need to build highways, railways, ports, channels, airports and pipelines in order to establish a comprehensive modern transportation system that is unimpeded, safe and convenient. Energy, oil in particular, is of strategic importance. Domestic development and production of oil can no longer keep pace with the needs of the country’s economic and social development, resulting in an increasing imbalance between oil supply and demand. Therefore, we need to take all possible measures to conserve and substitute for oil, accelerate exploration and exploitation of oil and natural gas resources, and make effective use of overseas resources. We need to institute a system for preserving strategic resources such as oil as soon as possible. We need to vigorously carry forward the renovation of large coal mines, construct highly productive and efficient mines, and place special emphasis on the development and utilization of clean coal technology. While making full use of existing power-generating capacity, we need to develop hydroelectric power and build large-scale thermal power plants near coal mines, reduce small thermal power stations, and moderately develop nuclear power. We should strengthen the construction and upgrading of power grids in urban and rural areas and work to complete nationwide network. We should further reform the power management system, gradually allow power plants and grids to operate separately, and institute bidding for the power supply. Emphasis should be placed on the development of all types of new energy.
Accelerating development of the service industry. This is an important avenue for stimulating economic restructuring and increasing employment. Actively developing modern services, such as information services, banking, accounting, consulting and law, will help raise the overall quality of the service industry. Up-to-date management and technology should be applied to renovate traditional service sectors, such as internal and foreign trade, transportation and municipal services, to improve their quality and efficiency. Services for urban consumers, such as real estate, community services, tourism, catering services, entertainment and fitness services need to be expanded. We need to deepen reform and adopt necessary policies and measures to create an environment favorable for the development of the service industry.
V. Implementing the Strategy for Developing the Western Region to Promote Coordinated Progress of Different Areas
Carrying out the strategy for western-region development to accelerate the development of the central and western regions is a major step taken to achieve the strategic goals of the third stage of the country’s modernization drive. During the Tenth Five-Year Plan period, we need to place emphasis on key projects for a good beginning of the program. Construction of infrastructure and protection of the ecological environment should take priority, and we should strive for major breakthroughs within five to ten years. At the same time, we hope to develop science, technology, and education considerably.
We must focus on a number of major projects of strategic significance, such as the transmission of natural gas and electricity from western to eastern regions and the planned Qinghai-Tibet Railway. We need to give priority to protecting, economizing and exploiting water resources through careful planning and rational allocation in order to ensure better utilization of water. We need to steadily proceed with major projects for protecting natural forests in light of local conditions, returning cultivated land to forests or pastures, preventing and controlling desertification, and protecting grassland. Great attention should be paid to the ecological self-regeneration capacity. We should connect these projects to form an ecological green belt in the western region. We need to vigorously improve education to train professionals and workers much needed in various fields. We need to increase investment in scientific and technological development. Localities should cultivate individualized local economies by adjusting and optimizing their industrial system, and by strengthening agriculture and by accelerating the transformation of resource advantages into economic advantages. In developing the western region, we need to begin work at places along major transportation routes, such as the Eurasian Continental Bridge , the Yangtze River , and the routes in the southwestern part of the country leading to the sea. Major cities connected by such lines should serve as economic centers and play leading roles in the development of their adjacent areas. We should particularly foster the economic zones along the Tongguan-Lanzhou-Urumqi line, the upper reaches of the Yangtze River , and the Nanning-Guiyang-Kunming line to promote development of the surrounding areas.
The State Council has already promulgated a number of policies and measures to support the development of the western region. The state will invest more in the west and increase transfer payments from the national budget to local budgets there. However, people in the western region should rely primarily on their own efforts and hard work over the long haul. We need to accelerate reform and opening up and create a sound investment environment to attract more funds, technology and human resources from home and abroad to the western region. We also need to increase the exchange of cadres.
The central region should make use of its regional advantages and its comprehensive advantages of resources to accelerate its pace of economic growth. It should focus on areas with main water and land transportation lines, make full use of the role of major cities and actively foster new loci of economic growth and new economic belts. It should consolidate and develop agriculture and continue to strengthen construction of infrastructural facilities and ecological projects. It should step up efforts to upgrade traditional industries with high, new and advanced technologies and raise its technological level and competitiveness.
The eastern coastal region should be oriented towards both the domestic and international markets. Priority tasks are to accelerate scientific and technological progress and innovation, to develop industries applying high and new technology, and to develop the internationally-oriented economy to improve its general performance and its competitiveness in the international market. Areas where conditions permit should take the lead in modernization. The eastern region should strengthen its economic and technological cooperation with the central and western regions by various means to support and stimulate their economic development and to increase its own flexibility for structural adjustment and economic growth at the same time.