The First Session of the 10th National People's Congress (NPC),
China's top legislature, opened in the Great Hall of the People in
Beijing Wednesday morning. Nearly 3,000 deputies from across China
attended the opening meeting. They heard speech by Premier Zhu
Rongji on the work of the government.
Excerpts from the report follow:
Premier Makes an Inventory of Chinese
Economy
Breakthroughs Made in Reform and Openness
Premier Proud of Achievements in Science, Technology
and Education
China Makes Significant Achievements in Democracy
Building
China Sees Remarkable Improvements in People's Living
Standards
China Makes New Strides in National Defense and Army
Building
Premier Zhu Outlines Experience on Government
Work
Zhu Rongji Singles out China's Economic and Social
Difficulties
Premier Clarifies General Requirements for Government
in 2003
China to Further Expand Domestic Demands
Premier Stresses Agriculture and Rural
Economy
Zhu Calls for Industrial Readjustments and
Development of West China
Premier Calls for Deeper Reform and Wider
Openness
Premier Calls for Improvements in Employment and
Social Security
Premier on National Rejuvenation Through Science and
Technology
Premier on Democracy, Rule of law and Cultural
Ethics
Premier on Administrative Reform
Chinese Premier Confident of Early Reunification of
Motherland
A New Chapter in Diplomatic Work During These Five
Years
Premier Makes an Inventory of Chinese
Economy
Chinese Premier Zhu Rongji said that over the past five years,
China's national economy has maintained a good growth momentum, and
made important advances in the strategic restructuring of the
economy.
The five years since the First Session of the 9th National People's
Congress has been an extraordinary period, according to the
report.
Soon after the government took office, the Asian financial crisis
struck, and world economic growth stagnated, according to the
report.
Domestically, irrationalities in the industrial structure became
critical, and large numbers of workers were laid off from
state-owned enterprises. Catastrophic floods struck in 1998 and
1999.
Under the leadership of the Communist Party of China, the Chinese
people of all ethnic groups have forged ahead, worked still harder
in solidarity, surmounted numerous difficulties, and made great
achievements in reform, opening up and economic and social
development that have won worldwide recognition. "We have attained
the strategic goals for the second stage of our modernization drive
and begun our march towards the third stage goals," the report
says.
According to the report, during the past five years, the national
economy maintained good growth momentum, and important advances
were made in the strategic restructuring of the economy as
follows:
China's GDP rose from 7.4 trillion yuan in 1997 to 10.2 trillion
yuan in 2002, an average annual increase of 7.7 percent, when
calculated in constant prices. Notable results were achieved in the
readjustment of the industrial structure.
The supply of grain and other major agricultural products took a
historic shift from chronic shortages to an overall balance with
surpluses during good years. High and new technology industries,
such as the IT industry, expanded rapidly.
The transformation of traditional industries was accelerated.
Modern service industries developed rapidly. The quality and
efficiency of economic growth improved constantly. National tax
revenue grew by a large margin every year.
Total fiscal revenue rose from 0.8651 trillion yuan in 1997 to
1.8914 trillion yuan in 2002, an average annual increase of 205.3
billion yuan. China's foreign exchange reserves climbed from
US$139.9 billion to US$286.4 billion.
Investment in fixed assets over the five years totaled 17.2
trillion yuan. In particular, based on the issuance of 660 billion
yuan of long-term construction treasury bonds, 3.28 trillion yuan
of bank loans and funds from other sources were generated for
investment, allowing us to accomplish many large projects we had
been planning for years but unable to undertake for lack of
resources.
The productive forces reached a new high, and the country's
economic strength and ability to withstand risks and compete
internationally grew significantly.
Remarkable achievements were made in infrastructure development,
the report says.
By
concentrating our resources, China completed a number of key
infrastructure projects of nationwide significance. The country
built water conservancy projects on a scale larger than any other
time since the founding of New China. The investment in these
projects nationwide totaled 356.2 billion yuan for the five years,
which was equal to the total investment in this field from 1950
through 1997 after adjusting for price changes, according to the
report.
A
number of key water conservancy projects were launched or
completed. Work on reinforcing 35,000 km of river embankments was
started. Over 3,500 km of main dikes of the Yangtze River and
nearly 1,000 km of dikes of the Yellow River have been reinforced,
and their capacity to withstand floods has been greatly increased.
The second phase of the Three Gorges water control project on the
Yangtze River, which has attracted world attention, will soon be
completed; water control facilities such as the one at Xiaolangdi
on the Yellow River became operational, and construction on the
South-North Water Diversion Project was begun.
Transport developed on an unprecedented scale, and a comprehensive
modern transport system began to take shape. In these five years,
China invested 1.2343 trillion yuan in highway building, which was
equal to 170 percent of the figure for the period from 1950 through
1997 after adjusting for price changes.
The total length of highways open to traffic increased from 1.23
million km in 1997 to 1.76 million km in 2002, of which expressways
increased from 4,771 km to 25,200 km, lifting China from the 39th
to the second place in the world.
Railway length increased from 65,969 km to 71,500 km. Over the past
five years, construction of 5,944 km of new railway lines, of which
4,603 km are double-track and 5,704 km are electrified, was
completed. A total of 50 airports were either newly built or
expanded. The annual cargo handling capacity of dock berths for
10,000 DWT or larger ships increased by 144 million tons.
Construction of postal and telecommunications facilities greatly
expanded. The length of installed long-distance optical cables
increased from 150,000 km in 1997 to 470,000 km in 2002, and the
number of fixed-line and mobile phone subscribers increased from
83.54 million to 421 million, ranking China first in the world.
Construction in the energy sector was further intensified. The
installed power-generating capacity increased from 254 million kw
in 1997 to 353 million kw in 2002, the report says.
The program for developing the western region made a good start,
the report says.
Over the past three years since the introduction of the western
development strategy, the government has given a powerful push to
the region's development by increasing investment, stepping up
transfer payments and introducing preferential fiscal and taxation
policies. Work was begun on 36 new key projects, which called for a
total investment of over 600 billion yuan, it says.
Smooth progress was made on such major projects as the
Qinghai-Tibet Railway, the diversion of natural gas and electricity
from the western to the eastern regions, water control projects and
trunk highways.
Work was accelerated to ensure that every county seat is served by
asphalt roads, that every township has access to electricity, and
that every village enjoys radio and television reception.
China's capability for sustainable development was enhanced. The
spending on environmental protection and ecological development in
the five years reached 580 billion yuan, amounting to 170 percent
of the figure from 1950 through 1997.
Six forest ecological projects -- reforesting formerly cultivated
land, protecting natural forests and controlling the sources of
dust storms affecting Beijing and Tianjin -- were carried out in
full.
During these five years, an additional 27.87 million hectares of
land was covered with trees; 31.53 million hectares of hills were
cordoned off for afforestation, and about 3.82 million hectares of
formerly cultivated land were returned to forests. Soil erosion on
266,000 square km of land and desertification on about 5.7 million
hectares of land were brought under control.
The tendency towards worsening environmental pollution has, on the
whole, been arrested. New progress was made in the protection of
natural resources. With the natural population growth rate down to
6.45 per thousand, China has entered a new period of low and stable
birthrate, according to the report.
Breakthroughs Made in Reform and
Openness
According to the report, during these five years, the ownership
structure was further readjusted and improved. The public sector of
the economy grew stronger in the course of readjustment and reform,
and efforts to diversify ways of realizing public ownership were
successful. The state sector of the economy went through
accelerated restructuring, and markedly enhanced its dominance and
competitiveness.
The objective of turning loss-making state-owned enterprises around
within three years was basically attained. Most large and
medium-sized key state-owned enterprises attained by and large the
goal of establishing the modern corporate system, and a number of
dynamic and competitive enterprises have come to the fore.
Further progress was made in opening up and revitalizing small and
medium-sized state-owned enterprises. Substantive progress was made
in restructuring the management system of monopoly industries. The
collective economy in urban and rural areas made new headway. The
joint-stock company sector of the economy expanded
continuously.
And individually-owned businesses, private enterprises and other
non-public sectors of the economy developed fairly fast and played
an important role in stimulating economic growth, creating more
jobs, invigorating the market and expanding exports, the report
says.
The modern market system developed in a comprehensive way. The
national economy has become more market-oriented, and the basic
role of the market in allocating resources has become noticeably
stronger. Price reforms in the area of public services, energy and
transport were constantly deepened, according the report.
The development of markets for capital, property rights, land,
technology and labor was accelerated. Modern methods of
distribution and marketing continued to spread. Significant results
were achieved in straightening up and improving the order of the
market economy. Large-scale nationwide campaigns were carried out
against smuggling, fraudulently obtaining tax and foreign currency
benefits, and producing and selling counterfeit and shoddy goods.
Special efforts were also made to target wrongdoings in cultural
activities, tourism, the building industry, rural market fairs and
production safety. A large number of economic crimes were dealt
with in accordance with the law, and criminals found to have
seriously undermined the market order were punished. As a result,
the market environment and the consumption climate gradually
improved, the report says.
Reforms of the banking, fiscal, taxation, investment and financing
systems were deepened. A banking system compatible with a growing
socialist market economy has begun to take shape. China gradually
improved the way the country exercises financial regulation,
restructured the management system of the People's Bank of China
(China's central bank), and established a unified national
regulatory system for securities and insurance.
Reform of the wholly state-owned commercial banks and policy banks
proceeded steadily, and the structure of the small and medium-sized
commercial banks was optimized. Significant progress was made in
rectifying and standardizing nonbank financial institutions.
Upholding the principles of law, regulation, self-discipline and
standards, the securities industry has developed through
progressive standardization.
Reform of the insurance industry was deepened. Rural-based
cooperative funds were screened and put out of business.
Unauthorized nongovernment financial services and other illegal
activities were banned in accordance with the law. As financial
regulation was gradually tightened, our ability to prevent or
defuse financial risks has improved, and the proportion of
non-performing assets of Chinese banks decreased.
A
rudimentary public finance framework compatible with the socialist
market economy came into being. On the basis of the tax-sharing
reform, new reforms for sharing income tax revenue were implemented
in China's fiscal system.
The system of preparing department-specific budgets was introduced
at both central and provincial levels. Experiments on separating
management of revenue and expenditures and reforming the unified
treasury collection and payment system progressed steadily.
Noticeable results were also achieved in the reform of the taxation
system and the tax collection and management. Reform of the
investment and financing system was gradually deepened, with new
sources of investment and financing opened up and the ways of
investment and financing diversified.
Basic forms of the legal person responsibility system for projects,
the tender system, the contract system and the project supervision
system were set up, according to the report.
During these five years, the framework of a social security system
was established by and large, the report says.
The establishment of basic old-age pension and medical insurance
systems in urban areas has made significant headway. Systems of
basic living allowances for laid-off workers from state-owned
enterprises, unemployment insurance, and subsistence allowances for
the urban poor were established.
The coverage of social security programs continued to expand. The
number of urban residents participating in the basic old-age
pension program, the basic medical insurance system and the
unemployment insurance program increased significantly. Needy urban
residents came gradually under the coverage of the subsistence
allowances program, and we made sure that all eligible urban
residents were by and large provided for.
A
national social security fund was established, and it has already
accumulated 124.2 billion yuan of capital. Significant progress was
made in reforming the basic medical insurance system for urban
workers, the health care system, and the drug production and
distribution system. Pilot projects to introduce a new cooperative
medical care system in rural areas were launched. Accelerated
development of the social security system provides an effective
guarantee for maintaining social stability, deepening reforms,
making structural readjustments and furthering development.
The report says that China's opening up was expanded in greater
scope and depth.
China's foreign trade has taken several big steps forward. The
combined volume of imports and exports increased from US$325.2
billion in 1997 to US$620.8 billion in 2002, raising China from the
tenth to the fifth place in the world. The country's total exports
increased from US$182.8 billion to US$325.6 billion. China has
continued to optimize its export mix.
China has markedly improved its ability to use foreign investment.
The amount of foreign direct investment actually used over the past
five years came to US$226.1 billion, more than the total used in
the 1979-1997 period. Significant increases in using foreign
capital occurred in high and new-tech industries, infrastructure
and service industries.
Owing to the "going global" strategy, outbound investment,
construction contracts for overseas projects and labor cooperation
programs kept growing. After 15 years of arduous efforts, China
became a full member of the World Trade Organization (WTO) in
December 2001, which was a new landmark in our opening up,
according to the report.
Premier Proud of Achievements in Science,
Technology and Education
During these five years, significant headway was made in basic
research and high-tech and applied technology studies. Significant
progress was made in establishing China's innovation system.
According to the report, remarkable achievements were scored in
such fields as information technology, life science and
aeronautical and space technologies. A detailed map of rice genome
was completed, an experimental 10 mw high temperature gas-cooled
reactor was built, a super-large parallel processing computer was
developed, and the Shenzhou series of spacecraft was successfully
tested. All these achievements show that China ranks among the
advanced countries in the related fields.
A
number of key state laboratories were completed, several major
scientific projects were carried out, and work was begun on
building a number of national engineering research centers. The
process of applying scientific and technological achievements to
industrialized and commercial production was noticeably
accelerated. More than 140,000 science and technology achievements
underwent state registration in these five years, and 520,000
patents were granted. Protection of intellectual property rights
improved.
In
the past five years, areas where the nine-year compulsory education
had basically become universal and where illiteracy among the young
and middle-aged had been basically eliminated accounted for 65
percent of the Chinese population in 1997, and the figure rose to
91 percent in 2002. Senior secondary education was
strengthened.
Institutions of higher learning have enrolled more students every
year since 1999, and the admission rate for those taking the
college entrance exams increased from 36 percent to 59 percent. In
2002, the student population in institutions of higher learning was
16 million, 2.3 times the 1997 figure. In these five years, 13
million junior and regular college students and 310,000 graduate
students graduated.
Privately-run schools developed rapidly. Competence-oriented
education was given greater emphasis to ensure that students would
develop in an all-round way, morally, intellectually, physically
and aesthetically, the report says.
China Makes Significant Achievements in
Democracy Building
The report says: Governments at all levels are ready to accept the
supervision by the people's congresses and their standing
committees at the same levels, tighten their ties with local
committees of the Chinese People's Political Consultative
Conference (CPPCC), and lend attentive ears to views presented by
personages of non-communist parties, the All-China Federation of
Industry and Commerce, personages without party affiliation and
people's organizations. Grassroots democracy has been expanded,
with self-government by villagers and urban residents and the
practice of making public the affairs of villages, enterprises and
administrative work gradually spreading.
Progress has been accelerated in implementing the basic strategy of
governing the country by law, making the governments at all levels
perform their official duties in strict compliance with law, and
speeding up the building of the legal system.
The State Council has over the past five years advanced 50
legislative proposals and promulgated 150 administrative statutes.
In line with the requirements of a socialist market economy and
China's WTO membership, the State Council made a sweeping review of
756 administrative statutes promulgated up to the end of 2000,
abrogating 71 and nullifying 80 others. The agencies under the
State Council went over 2,300 regulations and policies on foreign
affairs and abrogated 830 and amended 325 others.
The government has also intensified administrative supervision,
auditing and economic supervision, contributing significantly to
promoting the exercise of administrative powers according to law,
fighting corruption and building a clean government, and uncovering
major economic cases. All the measures adopted for the
comprehensive improvement of law and order have been well put in
place, resulting in a turn for the better in law and order, making
the people feel more secure, according to the report.
Reviewing the fresh achievements in promoting spiritual
civilization, the report says:
The drive to study and disseminate Deng Xiaoping Theory and the
important thought of Three Represents has been brought into depth;
the rule by law has been integrated with the rule by virtue;
activities for promoting good manners and ethics and fostering new
social conventions have been developing vigorously; promotion of
good ideology and morality has been strengthened; scientific
knowledge has been further popularized and scientific spirit has
gained popularity; art and literature, news media and publishing as
well as radio, film and television have developed in an all-round
way; endless streams of fine works have come to the fore; reform
and development in culture, health and sports have been
accelerated; the struggle against the spread of pornography and
illegal publications has been carried into depth; cultural
exchanges with the outside world have never been more lively;
health services in both urban and rural areas have been
strengthened; achievements have been made in the prevention and
control of major diseases; there was no major epidemics after
natural disasters; the Outline Program for the Development of Women
and Children has been implemented in real earnest; young people
have been better educated and protected; work concerning the aging
population has been unfolded; great progress was made in advancing
the cause of disabled people; sports with mass participation have
been encouraged throughout the country; competitive sports have
yielded good results, winning 485 world champions and setting 193
new world records; Beijing won the bid to host the 2008 Olympic
Games; and Shanghai secured the bid to host the 2010 World
Exposition.
China Sees Remarkable Improvements in People's
Living Standards
China has succeeded in improving the people's standard of living
and in establishing on the whole are relatively affluent society
over the past five years.
The income of urban and rural residents grew continuously in the
last five years.
The per capita disposable income of urban dwellers went up from
5,160 yuan in 1997 to 7,703 yuan in 2002, an average annual
increase of 8.6 percent in real terms. The per capita net income of
rural households increased from 2,090 yuan to 2,476 yuan, up by an
annual average of 3.8 percent in real terms.
The balance of savings deposits of urban and rural residents rose
from 4.6 trillion yuan to 8.7 trillion yuan. The number of rural
poor decreased from 49.6 million to 28.2 million.
In
these five years, the economy grew relatively fast and prices
remained fairly low, resulting in more tangible benefits for the
people, the report says.
During these five years, the level of consumption rose noticeably.
Urban and rural markets have been thriving. The total volume of
retail sales of consumer goods in the country increased from 2.73
trillion yuan in 1997 to 4.1 trillion yuan in 2002, up by an annual
average of 10.5 percent in real terms.
The per capita living space of urban dwellers increased from 17.8
square meters to nearly 22 square meters, and that for rural
dwellers, from 22.5 square meters to 26.5 square meters. Such
household appliances as TV sets, washing machines and refrigerators
became more common, and an increasing number of families acquired
computers and cars. The number of public facilities and the per
capita green area has grown. As conditions of medical care
continued to improve, people's health has come to a higher level
with the average life expectancy reaching 71.8 years in 2002, close
to that of a medium-level developed country, the report says.
China Makes New Strides in National Defense and
Army Building
National defense and army building have made new strides over the
last five years.
Acting on the military strategies for the new era, the people's
army has implemented the strategy of strengthening itself through
science and technology. The revolutionization, modernization and
standardization of the armed forces have been carried forward,
leading to a rise in the country's military capability and the
army's defensive combat readiness, says the report.
The task of reducing the armed forces by half a million troops was
completed on schedule. Ideological and political work in the army
was carried out effectively. Reforms in the army's logistical
support system continued to deepen. The army's level of
modernization in weapons was improved significantly.
The Chinese People's Liberation Army, the Chinese People's Armed
Police, the army reserves and the people's militia have made great
contributions to safeguarding the sovereignty and security of the
country, supporting its economic development and providing rescue
and relief in the wake of natural calamities or emergencies.
The report says more intensified research efforts have brought
about new developments in defense-related science, technology and
industry. Continuous progress has been made in national defense
mobilization. Efforts have been intensified to encourage activities
for mutual support between the army on one hand and the government
and people on the other, and this has further strengthened their
solidarity.
Premier Zhu Outlines Experience on Government
Work
Zhu Rongji, whose five-year term as Chinese premier expires soon,
gave considerable length to elaborating his experience in
fulfilling the government job. He summed up his experience in nine
aspects as follows:
- Maintaining the right direction and intensity of macroeconomic
regulation and implementing the proactive fiscal policy and the
prudent monetary policy;
- Unswervingly taking economic restructuring as paramount and
working hard to improve the quality and efficiency of economic
growth;
- Steadfastly giving priority to solving the problems facing
agriculture, rural areas and farmers and consolidating the position
of agriculture as the foundation of the national economy;
- Steadfastly carrying forward the reform of state-owned
enterprises and effectively strengthening reemployment work and
development of the social security system;
- Steadfastly opening wider to the outside world and actively
participating in international economic and technological
cooperation and competition;
- Implementing the strategy of invigorating the country through
science, technology and education, raising the nation's scientific
and technological capability for innovation and improving the
overall quality of the population;
- Continuing to take the path of sustainable development and
promoting a coordinated development of the economy, population,
resources and the environment;
- Doing everything possible to maintain social stability and
creating a favorable environment for reform and development;
- Continuing to transform government functions and endeavoring to
build a clean, diligent, efficient and pragmatic government.
Zhu Rongji Singles out China's Economic and
Social Difficulties
"We are clearly aware that there are still some outstanding
difficulties and problems in China's economic and social life," he
said.
He
listed the problems, in main, as follows:
- Insufficient domestic effective demand and inability of the
supply structure to respond to changes in market demand;
- Slow growth in the income of farmers and some urban
residents;
- Rise in the unemployed and serious difficulties in some
people's livelihood;
- Continued inequities in the distribution of income;
- Arduous tasks remaining in the reform of state-owned
enterprises;
- The need to continue to rectify and standardize the order of
the market economy;
- Sporadic occurrence of major industrial accidents;
- Poor public security in some places;
- Degradation of the ecological environment in some areas;
- Continued isolation from the people and perpetration of
formalism, bureaucracy, falsification, extravagance and waste among
some government officials, and certain types of corruption
remaining conspicuous.
The report says that some of these problems are the legacy of the
past; others are hardly avoidable in the course of institutional
transition and structural readjustment, and still others are caused
by shortcomings and inadequacies in our work. More steps should be
taken conscientiously to solve them, it stresses.
Premier Clarifies General Requirements for
Government in 2003
These requirements are:
- Take Deng Xiaoping Theory and the important thought of Three
Represents as our guide;
- Earnestly carry forward the spirit of the Sixteenth Party
Congress;
- Steadfastly give top priority to development in the Party's
governance and rejuvenation of the country;
- Vigorously respond to difficulties and challenges caused by
changing domestic and international environments;
- Continue to follow the policy of expanding domestic demand as
well as the proactive fiscal policy and prudent monetary policy;
- Further deepen the reform and open still wider to the outside
world; accelerate the strategic readjustment of the economic
structure;
- Promote a sustained, rapid and sound development of the
national economy and integrate speed with structure, quality and
efficiency;
- Correctly handle the relationships among reform, development
and stability; effectively improve the development of democracy and
the legal system and the promotion of spiritual civilization and
Party building;
- And promote a coordinated development of socialist material
civilization, political civilization and spiritual
civilization.
China to Further Expand Domestic
Demands
The premier called for continuing to expand domestic demand and
achieve a steady and rapid economic growth this year.
Maintaining the good momentum of economic growth is the basis for
success in all fields of our work, the report says, adding, "Based
on our overall analysis of the situation at home and abroad, we set
the target for 2003 economic growth at around seven percent. This
growth rate is both necessary and achievable through hard
work."
"It is imperative that we pay adequate attention to raising the
quality and efficiency of economic growth by readjusting and
optimizing the economic structure. We should adhere to the policy
of expanding domestic demand, continue to implement the proactive
fiscal policy and prudent monetary policy, and ensure a double-pull
effect on economic growth from both consumption demand and
investment demand," the report says.
First of all, the government should strive to expand consumption
demand. Given the current situation, this is more important than
greater investment demand. We should continue to increase the
income of urban and rural residents, especially those with low
income, and work hard to raise the living standards of the
population. "We should do everything possible to increase farmers'
income and lighten their burden," the report says.
The government should effectively solve the problems the needy face
in work and livelihood. The original plan to raise the salaries of
government employees as well as retirees' pensions in the second
half of last year was postponed in order to first solve the
problems of the urban poor and to harmonize relationships among the
interests of all quarters. This measure, however, will take effect
this year. The government should continue to improve the
consumption climate by improving relevant policies and expanding
areas of consumer spending, according to the report.
A
relatively fast increase in investment should be maintained. Based
on an overall consideration of various factors, we plan to issue
140 billion yuan of long-term construction treasury bonds in 2003.
The government should redirect the use of funds to be raised from
treasury bonds as follows:
- Priority should be given to ongoing projects and projects which
are near completion, and to a selected number of new projects which
are wholly necessary.
- More support should be given to development of the western
region, projects to improve production and living conditions in
rural areas, technological transformation of enterprises,
improvement of the ecological environment, and undertakings in
science, education, culture and health care.
The government should broaden the channels for investment from
society and for enterprise financing and direct investment funds
from society to industries and development projects encouraged by
the state.
The government should resolutely guard against redundant low-level
development. In some localities, real estate investment is
expanding too rapidly and too many luxury homes are being built.
"We must heighten our vigilance against risks and potential losses
from blind development," the report stresses.
While continuing to watch out for and defuse financial risks, the
government should generate more financial resources to support
economic development. Banks must give priority to extending
matching loans to projects financed by treasury bonds, lend more
money to enterprises that are profitable and trustworthy and have a
ready market for their products, provide more credit to support
agriculture, the rural economy, small and medium-sized enterprises
and the service industry, and standardize and increase consumer
credit.
The government should improve banking services, tighten financial
regulation, and develop securities, insurance and money markets in
accordance with established standards.
The government should conscientiously handle fiscal and taxation
work and vigorously increase revenue and cut expenditures. By
strengthening tax collection and management according to law and
cracking down on all forms of tax evasion and tax fraud, the
government will ensure that all taxes due are collected without
exception.
Financial departments at all levels should arrange their
expenditures so that funding for key items is ensured. They must
first pay wages and salaries on time and in full, continue to
increase their social security contribution, increase spending on
agriculture, compulsory education and health care in rural areas,
and increase transfer payments to the country's central and western
regions and areas in difficulties, according to the report.
Premier Stresses Agriculture and Rural
Economy
Chinese Premier Zhu Rongji called for promoting all-round
development of agriculture and the rural economy.
"We should continue to take developing agriculture and the rural
economy and increasing farmers' income as the top priority of our
economic work. Economic and social development in urban and rural
areas must be coordinated, and work relating to agriculture, rural
areas and farmers must be done well."
China should accelerate structural readjustment in agriculture and
the rural economy, according to the report.
The government should continue readjusting the distribution of
agricultural areas and promoting industrialization of agriculture;
vigorously develop animal husbandry, aquatic farming and the
processing of agricultural products; while returning more farmland
to forests; implement without delay the national plan for the
conservation of grasslands.
The government should strengthen the system for quality and safety
of agricultural products and the system of commercialized services
for agriculture; continue implementing and improving the rural
household land contract system and manage well the non-agricultural
land.
While continuing to deepen various reforms in rural areas, the
government should extend the experiment with rural taxes and
administrative charges to all parts of the country on the basis of
well summed up experience and improved policies.
The government should conscientiously implement all policies and
measures designed to lighten the burden on farmers; and protect
farmers' interests better by deepening the reform of the grain and
cotton distribution system.
The report calls for investing more in the development of
agriculture infrastructure and in agricultural science and
technology.
China should speed up the construction of facilities for
water-saving irrigation and for supplying potable water for people
and livestock, roads linking county seats and townships, facilities
for rural energy supply, as well as educational, medical and health
facilities in the countryside.
More assistance should be given to major grain producing areas, he
stressed. A good job should be done in alleviating poverty through
development. The collective economy should be helped grow stronger.
Intra-county economic development should be promoted. The process
of urbanization should be accelerated.
The government should coordinate and guide the shifting of surplus
rural labor to non-agricultural undertakings better, and protect
the legitimate rights and interests of farmer-laborers holding
temporary or permanent jobs in cities.
Zhu Calls for Industrial Readjustments and
Development of West China
Zhu Rongji called for aggressively pushing forward the readjustment
of the industrial structure and the development of the western
region.
China should speed up the readjustment of the industrial structure
according to the need for a new approach to industrialization, he
says in the report, adding vigorous efforts should be made to
develop high and new-tech industries that can greatly spur our
economic growth.
"We should energetically promote IT application and use IT to
propel industrialization. We should make extensive use of advanced
adaptive technologies to transform traditional industries and
invigorate our equipment manufacturing industry. We should do a
good job in planning and readjusting the development of our steel,
automobile and building materials industries to prevent blind
expansion and disorderly competition. We should eliminate an even
bigger slice of our production capacity that has become obsolete.
We should vigorously develop modern services and tourism. We should
attach great importance to the development of community-based
services," the report says.
The development of China's western region requires sound and
persistent efforts. "We should focus on key projects, stress
practical results and lay a solid foundation," it stresses.
While continuing to strengthen protection of the ecological
environment and infrastructure development, China should
effectively restore cultivated land to forests, protect natural
forests, and prevent further desertification. The program of
restoring grazing areas to grasslands should continue, and relevant
legal work should be intensified.
"We should work harder and more effectively on major projects to
ensure the progress and quality of construction. Economic
activities with local characteristics and competitive industries
should be given greater support. We should accelerate the
development of science, technology and education in the western
region," the report says.
Economic exchanges and cooperation among the eastern, central and
western regions should be strengthened, so that they can complement
one another and develop side by side, according to Zhu. Measures
should be tightened to prevent unwarranted transfer to the western
region of discarded, obsolete industrial equipment and polluting
enterprises, it says.
The report calls for greater support to the old industrial bases in
their efforts to quicken readjustment and technological
transformation, encourage cities or areas that are mainly dependent
on resource exploitation to develop alternative industries, and
helping the old revolutionary base areas and areas inhabited by
ethnic minorities to develop more quickly.
Premier Calls for Deeper Reform and Wider
Openness
While adhering to and improving the basic economic system in which
public ownership plays the dominant role and diverse forms of
ownership develop by its side, China will unswervingly consolidate
and develop the public sector of the economy, and unswervingly
encourage, support and guide the development of the individual,
private and other non-public sectors of the economy, according to
the report.
The government should continue to push reforms turning state-owned
enterprises into standard joint-stock companies and improve the
mechanisms of supervision over them in accordance with the
requirements of establishing a modern corporate system.
"We should actively support eligible large enterprises to become
listed on overseas stock markets. We should establish large,
internationally competitive companies or enterprise groups that
have distinctive main lines of business and possess their own
intellectual property rights and name brands," the report says.
The government should do a better job of reorganizing
military-industrial and other enterprises in difficulties and help
them out of their plight; carry forward the reform of the power,
telecommunications and civil aviation industries; reform the state
property management system from top to bottom in an orderly way;
expand the area in which private capital has market access and
create an environment of fair competition for all types of market
players; support the development of small and medium-sized
enterprises, especially technology and labor-intensive ones,
regardless of their forms of ownership.
"We should steadily carry out reform of the financial system and
continue reforms of the taxation, investment and financing systems.
We should deepen reform of the system for income distribution and
progressively rationalize it," says the report.
Rectifying and regulating the order of the market economy is a
long-term and demanding task, but we must persevere, the premier
noted.
The government should seek both temporary and permanent solutions
to the problems, with emphasis on permanent solutions; continue to
focus on special areas and key links and crack down severely on the
making and selling of counterfeit and shoddy goods and other
illegal and criminal activities; improve the formulation of
institutions and laws, strictly enforce the law and gradually bring
market management under a system of laws and standards; promptly
investigate and prosecute major cases of sabotage against the order
of the market economy.
The government should speed up the establishment of a social
credibility system. "We should pay close attention to ensuring
production safety and strengthen supervision and management to
effectively protect people's lives and property. We should
accelerate the establishment of a new order in the socialist market
economy through reform and rectification. We should open up further
by integrating our 'bringing in' and 'going global'
strategies."
While continuing to do a good job during the grace period after our
entry into the WTO, China should conscientiously exercise our
rights and fulfill our commitments. "We need stability in our
policies and measures to promote exports," the report says.
"We should continue our market diversification strategy and expand
trade in goods and services on the basis of fine quality. We should
cultivate and support superior domestic brands and improve the
international competitiveness of Chinese products. We should
optimize our import mix and deepen the reform of the foreign trade
system."
The government should continue to actively and effectively use
foreign capital, emphasize bringing in advanced technologies,
modern managerial expertise and specialists, and support multiple
forms of cooperation between Chinese enterprises and transnational
corporations.
Vigorous efforts should be made to improve our investment
environment and standardize procedures for attracting investment.
Whatever their forms of ownership, Chinese enterprises that have
comparative advantages should be encouraged to operate
internationally through joint ventures, wholly-owned ventures or
joint operations in order to increase the export of domestically
produced goods, particularly capital goods.
"We should work still harder to promote bilateral, multilateral and
regional economic cooperation."
Premier Calls for Improvements in Employment
and Social Security
Adhering to the policy that calls for "the worker to find a job on
his own, the market to regulate employment and the government to
promote job creation," the government should do everything possible
to expand employment and reemployment, according to the report.
In
the course of reform of state-owned enterprises, the government
should combine the reduction of staff for higher efficiency with
the promotion of reemployment. Policies and measures designed to
encourage reemployment of laid-off workers must be conscientiously
carried out.
The government should open more avenues for employment, develop
labor-intensive industries and make full use of the role of the
tertiary industry, small and medium-sized enterprises and the
individual and private sectors of the economy in the area of job
creation. The labor market should be standardized and
developed.
"We should encourage people to look for jobs on their own or become
self-employed and promote flexible and diverse types of employment.
We should vigorously develop vocational training and employment
services and improve our guidance and services to college and
vocational school graduates in their search for jobs and career
opportunities," the report says.
The government should continue improving the work of ensuring
payment on time and in full of the living allowances for workers
laid off from state-owned enterprises, the basic pensions for
retirees and subsistence allowances for the urban poor.
The government should also do a good job of streamlining the
"three-stage guarantees." Social security coverage should be
expanded by upgrading basic old-age pensions and medical insurance
for workers of enterprises in urban areas.
The government should steadily incorporate living allowances for
laid-off workers from state-owned enterprises into the unemployment
insurance. The government should rationally determine the criteria
for eligible recipients and the exact level of each recipient, so
that all the eligible urban poor will receive the benefits to which
they are entitled.
The basic livelihood of workers of state-owned enterprises in
difficulties and those which have already gone under must be
ensured appropriately.
The government should raise social security funds through a variety
of channels and manage them properly. Existing assistance systems
for low-income people should be improved and more should be
established, and close attention should be paid to properly
resolving problems encountered by the neediest urban households in
housing, children's schooling, medical care and heating. Work
should be done to ensure the success of pilot programs for a new
type of rural cooperative medical system.
"We should expand other social benefit undertakings, such as social
welfare, social relief, preferential job placement for
ex-servicemen and mutual aid. The legitimate rights and interests
of women and children must be effectively protected. We should also
improve our work concerning senior citizens and give greater
support to the cause of the disabled," the report says.
Premier on National Rejuvenation Through
Science and Technology
Premier Zhu Rongji said the government will conscientiously
implement the strategy of national rejuvenation through science,
technology and education and the strategy of sustainable
development. The government should continue to increase investment
for developing science, technology and education.
State plans for medium and long-term development of science and
technology should be promptly formulated and implemented.
"We need to promote the development of a state innovation system.
We should effectively strengthen our basic and high-tech research
and enhance our capabilities for scientific and technological
innovation and competition. We should lose no time in implementing
the State Plan for High-Tech Research and Development and the State
Plan for Development of Basic Research in Key Areas, as well as
major projects for science and technology development," the report
says.
China should master core technologies and win proprietary
intellectual property rights in key areas and some frontier fields
of science and technology; strengthen the infrastructure for
science and technology; continue to restructure the administration
of science and technology activities, improve their service system,
strengthen the protection of intellectual property rights,
facilitate the patenting of inventions, and facilitate a faster
transition from research achievements to actual productivity.
Equal importance should be attached to social and natural sciences,
and work should be done to promote the development of philosophy
and other social sciences.
"We should deepen the reform of the educational system, encourage
innovative approaches to education, and promote competence-oriented
education in an all-round way," says the report.
China should accelerate the development of all types of education
at all levels and improve the quality of education; continue to
improve the management system for rural compulsory education in
which the county authorities play the principal role; continue
doing a good job in providing student loans and establishing a
national scholarship system.
Vocational education and training should be strengthened.
Privately-run schools should be standardized in accordance with the
law, and their development should be supported.
"We should continue implementing the strategy of making China
strong by giving full play to the role of talented people. We
should train and attract more people with expertise in all fields,
especially people of a high caliber and with expertise badly needed
in China."
"To achieve this purpose, China must create the kind of conditions
whereby they can fully develop their abilities and carve out
successful careers for themselves; keep up good work with regard to
population and family planning and maintain a low birth rate;
improve our planning for urban and rural development; effectively
protect, rationally exploit and economize on natural
resources."
More programs should be implemented for developing marine
resources. Protection and conservation of the ecological
environment should be strengthened, and the environmental
protection industry should be vigorously developed. Pollution
prevention and treatment should be intensified in key river valleys
and key land and sea areas.
"We must do a better job of comprehensive environmental control in
cities, and disaster prevention and reduction should be effectively
carried out," the report says.
Premier on Democracy, Rule of law and Cultural
Ethics
China should develop socialist democracy and build a socialist
political civilization. Political power and democracy at the local
level in urban and rural areas should be strengthened.
China should combine rule of law with rule by virtue in running the
country, improve the socialist legal system and the administrative
laws and statutes, raise the level of law enforcement by
administrative authorities and cultivate a law-abiding citizenry
throughout the country.
"Firmly grasping the orientation of advanced culture, we should
redouble our efforts to build up a socialist spiritual
civilization. We should earnestly put the Program for Improving
Civic Morality into practice and foster and promote a national
spirit. We should encourage popular participation in activities to
raise the cultural and ethical standards of the general public,"
the report says.
China should further develop cultural undertakings, such as
literature and art, mass media, publishing, radio, film and
television, and bring out a large number of quality works; deepen
structural reform in the cultural field and actively develop
cultural undertakings and cultural industries; improve the
protection of the country's cultural relics and cultural heritage
and increase its cultural exchanges with other countries.
"We should disseminate scientific knowledge, combat superstition,
and promote a civil and healthy lifestyle. We should tirelessly
fight against pornographic and illegal publications. Development
and management of Internet websites should be strengthened," it
says.
China should actively promote the reform and development of health
and sports undertakings. Fitness campaigns for the general public
should be vigorously promoted, and the level of competitive sports
raised even further.
China should conscientiously do a good job in preparing for the
2008 Olympic Games in Beijing and the 2010 World Exposition in
Shanghai. "We must spare no effort in maintaining social stability.
The principle of severely cracking down on crimes must be adhered
to, and we should combine punishment with prevention with emphasis
on the latter, and to maintain law and order in a comprehensive
way."
China must severely deal with all crimes in accordance with the law
and watch out for and punish criminal activities of cult
organizations.
Premier on Administrative Reform
Premier Zhu Rongji called for efforts to earnestly improve the
government itself, saying that under the new circumstances of
stronger momentum in reform, opening up and the modernization
drive, it is of vital importance for the government to further
improve itself, especially its work style. Work must be done to
deepen the reform of the administrative system.
In
keeping with separation of the government from enterprises and the
principles of simplification, consistency and efficiency, China
should continue to transform government functions, reorganize the
government setup, clarify the functions of government departments,
reduce administrative examination and approval, and improve
government management so as to bring about an administrative system
that has standardized behavior and operational harmony and is fair,
transparent, clean and efficient, according to the report.
The Party Central Committee and the State Council have completed a
plan for the reform of the government setup, which will be
submitted to this NPC session for consideration.
"We must follow the law and be strict in performing our official
duties. We should improve the system of public service and build a
contingent of high-standard public servants. We should speed up the
development of e-government," says the report.
The government must keep up the anti-corruption fight,
energetically rectify misconduct and unhealthy tendencies in
various trades and government departments, and strictly deal with
all breaches of law or discipline.
The government should strengthen institutional improvement,
intensify administrative supervision and auditing, and fight
corruption by addressing its root causes. The government should do
a good job with letters and visits from the people and intensify
oversight by the media and the general public.
"In working earnestly to improve our work style, the government
must oppose formalism and bureaucracy, refrain from building 'image
projects' in the pursuit of personal fame, correct such undesirable
practices as falsifying reports, boasting and dictating orders to
the people, and resist extravagance and waste."
Government officials at all levels should go to the people in their
neighborhoods and homes, listen to their views, care about their
hardships and promptly attend to their grievances.
"Given the new situation, we should be all the more mindful of
potential perils and prepare for the worst. It is incumbent upon
all of us to remain modest, prudent and free from arrogance and
rashness in our style of work, and to preserve the style of plain
living and hard work," says the report.
Chinese Premier Confident of Early
Reunification of Motherland
Zhu said maintaining the prosperity, stability and development in
Hong Kong and Macao is an unshakable goal.
The central government should continue to implement the principle
of "one country, two systems" and act in strict accordance with the
basic laws of the Hong Kong and Macao special administrative
regions. The central government should give full support to the
chief executives and governments of the two regions in their
administration according to law, according to the report.
The mainland must implement the basic principles of "peaceful
reunification" and "one country, two systems" and the eight-point
proposal for the settlement of the Taiwan question, strive for an
early resumption of dialogue and negotiation between the two sides
of the Taiwan Straits on the basis of the one-China principle, and
strongly oppose any statements or actions aimed at creating "Taiwan
independence," "two Chinas" or "one China, one Taiwan."
The mainland should further expand the scope of personnel visits
across the Straits as well as exchanges and cooperation in the
economic, cultural and other fields while vigorously promoting the
opening of the "three direct links" between the two sides; increase
exchange of views with all political parties and prominent people
of various circles in Taiwan on developing cross-Straits relations
and promoting peaceful reunification; and continue to give support
to the activities of overseas Chinese communities to oppose Taiwan
independence and promote national reunification.
A New Chapter in Diplomatic Work During These
Five Years
Peace and development remain the themes of the present era. World
multipolarization and economic globalization are making headway
amid twists and turns.
Premier Zhu Rongji reiterated China will unswervingly pursue an
independent foreign policy of peace."
China will continue to consolidate and strengthen its solidarity
and cooperation with other developing countries and support them in
their efforts to defend their legitimate rights and interests, the
report says.
China will continue to cultivate friendly ties with its neighbors,
increase regional cooperation and bring its exchanges and
cooperation with neighboring countries to a new high, the report
says.
China will continue to improve and develop its relations with
developed countries and, on the basis of the Five Principles of
Peaceful Coexistence, broaden the area of common interests and
appropriately iron out differences.
China will continue to take an active part in multilateral
diplomacy and promote democracy in international relations and
diversity in development models.
"We remain opposed to all forms of hegemonism and power politics
and stand against terrorism in all its manifestations. The Chinese
people are ready to join the people of all other countries in the
lofty cause of promoting world peace and development," the report
says.
(China.org.cn March 5, 2003)