Premier Zhu Rongji gave a report on the Outline of the Tenth
Five-Year Plan for National Economic and Social Development
(2001-2005) to the opening of the Fourth Session of the Ninth
National People's Congress Monday, March 5.
Implementation of Science Development Strategy
Premier Zhu gave particular stress to the true implementation of
the strategy of invigorating the country by relying on science,
technology and education.
In
his report, the premier called for greater efforts toward high-tech
research that is of great strategic importance and strive to make
breakthroughs in some key areas that have a direct bearing on the
economic lifelines and national security and that will help enhance
the independent creative power and promote industrialization of
achievements in high and new technologies.
Meanwhile, Zhu said, it is necessary to provide technical support
to the efforts to upgrade traditional industries, with emphasis put
on processing and conversion of agricultural produce, manufacturing
of equipment, conservation of water and energy, and after-treatment
of textiles.
The premier called for greater efforts to strengthen basic and
applied research, especially frontline interdisciplinary research,
strengthen applied basic research in selective areas where China
enjoys advantages and which are important to development. He called
for new progress in genomics, information technology, nanoscience,
ecology and geoscience. He also called attention to the fusion of
natural and social sciences to promote the development of
management science and to the development of philosophy and other
branches of social sciences.
On
accelerating reform of the structure of science and technology
development system and the integration of science and technology
with the economy, the premier stressed the necessity to strengthen
the state creative system and make enterprises the main body of
technical progress and creation.
"We need to continue to encourage research institutes engaging in
technology development to become part of enterprises or to be
converted into enterprises, push forward the reform of non-profit
making research institutes, and establish a number of
internationally influential research institutions," he noted.
He
also stressed the importance of developing intermediary service
organizations in the areas of science and technology, improving the
mechanism of risk investment, and establishing a growth enterprise
market to support small and medium-sized enterprises in their
technical innovation.
Zhu urged persistence in advanced development of education, saying
that education should be geared up to modernization, the world and
the future, with emphasis on quality education so as to enable
students to develop in an all-round manner, morally,
intellectually, physically and aesthetically.
Premier Calls for Pushing Forward Reforms
To
further improve the socialist market economy, promote economic
restructuring and ensure economic growth, China will press ahead
with reforms and open wider to the outside world.
He
pledged to deepen reform of state-owned enterprises to enable them
to compete as equals in a market economy. The key issue in this
regard is to accelerate the establishment and improvement of a
modern corporate structure, he noted.
China needs to encourage large and medium-sized state-owned
enterprises to adopt the share-holding system and to change their
operational mechanism by listing their shares on the stock market,
setting up joint ventures with foreign investors, or holding each
other's shares, the premier said.
He
stressed that the state must hold a controlling stake in strategic
enterprises that concern the national economy and national
security, but not necessarily in others. More efforts need to be
made to separate the functions of government from those of
enterprises, and the functions of government need to be transformed
to reduce administrative oversight and approval.
Zhu urged further reforming the management systems of industries
under state monopoly, such as electricity, railways, civil aviation
and telecommunications, and introduce a mechanism for
competition.
The ownership system needs to be further improved, he said. "We
need to uphold the dominance of the public sector of the economy,
let the state-owned sector play a leading role, develop various
forms of collective undertakings, and support, encourage and guide
a healthy development of private and individual sectors of the
economy," he stressed.
Zhu called for overhauling and regulating market order, and
expanding the market system. This is an urgent task to ensure
normal operation of the economy and an important measure to
strengthen the socialist market economy, he said.
China must persist in cracking down on criminal activities such as
producing and marketing fake and shoddy goods, tax evasion, tax
fraud, obtaining foreign currency through deception, and smuggling,
he said.
On
enhancing macro-control, and deepening reform of the finance,
taxation, banking and investment systems, the premier said that
China needs to gear its macroeconomic policies to changing economic
situations.
While expanding domestic demand and checking the trend of
deflation, China needs to be on guard against possible overheated
economic growth and inflation, Zhu noted. "We will continue to
implement a prudent monetary policy and regulate money supply in a
timely fashion to keep the renminbi stable," he said.
China needs to carry out a comprehensive reform of wholly state-
owned commercial banks in the light of modern banking principles
and bring the role of policy banks into full play, according to the
premier. China needs to develop medium-sized and small banking
institutions, standardize and improve the securities market, and
safeguard the interests of investors. China also needs to expand
the insurance industry and improve supervision of financial
institutions, he added.
Preparations for WTO Accession
Premier Zhu Rongji stressed that China should lose no time to prime
for the accession to the WTO and get everthing done properly during
the transitional period.
Zhu called for more effective measures to change the ways of
government administration, enhance the competitiveness of Chinese
enterprises; bring the foreign trade system into line with
international convention and make it conformable to the national
conditions; step up the work of reviewing and revising relevant
laws and regulations; and train people well versed in international
trade rules.
Meanwhile, China should expand import and export trade, with
emphasis on the export of high-quality goods and technology;
optimize the mix of export commodities by expanding the share of
high and new technology products and by raising the technological
contents and added value in traditional commodities exported in
large quantities; expand the scale of the service sector;
standardize the regulation of processing industries and increase
the value-added increment of such trade; vigorously promote
diversification of export markets and open up new ones.
In
import trade, China should focus on importing advanced technology,
key equipment and important raw and processed materials that are
urgently needed in the country, he said.
According to the outline, by 2005, China's imports and exports will
top 680 billion US dollars, with the proportion of electronic and
machinery products to increase to 50 percent of the total.
Zhu urged better utilization of foreign capital; open the service
sector to foreign investment step by step; encourage foreign
investors, especially multinational corporations, to invest in
high-tech industries and infrastructure; and encourage them to set
up research and development centers in China and to participate in
the restructuring and renovation of state-owned enterprises.
The government will support eligible enterprises to get listed on
overseas stock markets and further improve the investment climate,
and explore new ways to utilize more foreign investment, such as
acquisition, merger, risk investment, investment funds, and
investment in securities.
The premier encouraged enterprises with comparative advantages to
invest in processing trade abroad, to develop foreign resources in
cooperation local partners, to contract for construction projects,
and increase export of labor service. But the premier stressed
oversight and management of such enterprises in order to prevent a
drain on state property.
Improve People's Living Standards
One of the important tasks for the next five years is to bring
about a big improvement in the living standards of the people and
make their life more comfortable, said Premier Zhu Rongji.
In
the report, the premier promised to make great efforts to improve
the living standards of the people and establish a sound social
security system.
A
sound social security system is a big matter that concerns reform,
development and stability, the premier said. "We need to ensure
that basic living allowances for laid-off workers from state-owned
enterprises and basic pensions for retirees are paid in full and on
time," he said.
At
the same time, he noted, it is necessary to establish a social
security system, which, independent of enterprises or government
institutions, has a diversified sources of funds, standardized
rules and socialized management and services.
The premier promised to make greater efforts to improve the basic
old-age insurance system for urban workers that combines social
pool with individual accounts, improve the unemployment insurance
system and gradually incorporate the basic cost-of- living
allowances for workers laid off by state-owned enterprises into
unemployment insurance; and promote the basic medical insurance
system for urban workers and carry forward the reform of medical
institutions and the medicine distribution system.
He
urged to set up reliable and stable mechanism that ensures the
raising of funds, effective operation and strict management of the
social security system and develop social security undertakings,
such as social welfare, social relief, special care to disabled
servicemen, and to family members of revolutionary martyrs and
service and social mutual aid; safeguard the legitimate rights and
interests of women, the under-aged, the aged and the handicapped;
and support the various programs to help the handicapped.
During the Tenth Five-Year Plan period, we face the demanding task
of expanding employment, the premier revealed.
While maintaining a fairly high growth rate of the economy,
attention should be given to developing labor-intensive industries
with comparative advantages, especially service businesses that can
provide large numbers of jobs; encourage the development of
collective, private and individual businesses to create more jobs;
set up a flexible employment system to provide a greater variety of
jobs; help people change their ideas about employment and encourage
them to start their own businesses or find jobs for themselves;
make greater efforts to develop the labor market, improve
employment services, expand job training, and form a
market-oriented employment mechanism.
Zhu pledged to increase income of urban residents, especially those
with low incomes, and improve their housing and transportation
conditions.
He
urged efforts to build more low-cost housing and establish a system
to ensure its supply and energetically develop public transit
system; strengthen city greening and infrastructure projects in
urban and rural areas; improve the living environment of urban and
rural residents; develop community disease prevention and control
and health services; improve health services in rural areas; and
expand public sports facilities.
Strategy of Sustainable Development
Premier Zhu Rongji pledged to bring about a more harmonious
development of population, resources and environment and place the
sustainable development strategy in a more prominent position.
In
his report the premier urged more efforts to do the family planning
work well in the rural areas and among the floating population; and
establish an interest-oriented family planning mechanism and at the
same time develop the undertakings for the aged.
On
the issue of protecting natural resources and using them properly,
Zhu called for the protection and proper use by law of valuable
resources such as fresh water, farmland and energy in accordance
with the law; gradually establish a system of reserves for
strategically important mineral resources and ensure their safe
supply; strengthen the comprehensive development, utilization and
conservation of marine resources; increase the recycling of
resources in order to utilize the resources more effectively;
improve the system of paying compensation for the use of natural
resources; safeguard the rights and interests of the state as the
owner of mineral and other resources; improve laws and regulations
in this regard and strengthen law enforcement.
Referring to improving ecological conservation and strengthening
environmental protection, the premier called for greater efforts to
complete natural forest protection projects on the upper reaches of
the Yangtze River and the upper and middle reaches of the Yellow
River, intensify the building of shelterbelt system in Northeast,
North and Northwest China and on the middle and lower reaches of
the Yangtze; control urban pollution by comprehensive measures so
as to improve markedly the environmental quality of large and
medium-sized cities; protect the rural environment, especially from
pollution caused by farm chemicals; and improve the environmental,
meteorological and seismological monitoring systems to help prevent
and reduce natural disasters.
Ethics in Line With Socialist Market Economy
Premier Zhu Rongji called for the building of an ideological and
ethical system adaptable to the socialist market economy and
combination of governing the country by law with governing the
country by moral principles.
The premier pledged to vigorously promote socialist spiritual
civilization.
China should consolidate and strengthen the guiding role of Marxism
and educate the people in Marxism-Leninism, Mao Zedong Thought and
Deng Xiaoping Theory; promote patriotism, collectivism and
socialism; continue education of our cadres in the important
principle of "Three Represents" (The Communist Party of China
represents the requirement to develop advanced productive forces,
an orientation towards advanced culture, and the fundamental
interests of the overwhelming majority of the people in China.) and
foster the spirit of studying hard, being politically-minded, and
being honest and upright; and adhere to a correct outlook toward
the world and life and have correct values.
China must provide correct guidance to public opinion, and place
strong emphasis on the establishment and management of new
information media; build more libraries, cultural centers, science
and technology centers, museums, archives, and recreational centers
for young people and senior citizens; deepen reform of the cultural
system and promote the development of industries related to
culture; and organize and standardize the cultural market and
persist in the fight against pornographic and other illegal
products.
Political Reform
Premier Zhu Rongji has called for developing a socialist democratic
political system and governing the country according to law .
China will press ahead with reform of the political system;
implement democratic election, democratic decision making,
democratic management and democratic supervision; protect the
extensive rights and freedoms of the people as prescribed by law;
and respect and guarantee human rights, energetically improve
socialist democracy and the legal system, he said.
China should continue to strengthen the legislative and supervisory
role of the People's Congress, and expand the role of the Chinese
People's Political Consultative Conference (CPPCC) in political
consultation, democratic supervision, and administration and
deliberation of state affairs; and bring the legal system into line
with a socialist market economy, he said.
Governments at all levels must conscientiously subject themselves
to the supervision of the people's congresses at corresponding
levels and consult with the CPPCC and they must govern in
accordance with law and be strict in performing official duties,
the premier said.
He
urged deepening reform of the judicial system, strictly enforcing
laws, and administering justice impartially; putting greater
efforts into combating corruption and building a clean government;
strengthening legal education and raising the awareness of law
among all citizens; and strengthening development of legal
infrastructures and improving the qualifications of procuratorial,
judicial and public security officers.
He
pledged using legal means to combat ethnic separatist activities,
religious extremist forces, violent and terrorist activities,
cults, and illegal activities carried out under the guise of
religion.
Defense Industry
China will readjust its defense industry, develop new weapons and
equipment, and utilize modern technology, especially high
technology, to improve the defense capabilities and combat
effectiveness of the armed forces.
"As we focus our efforts on developing the national economy, we
must also strengthen our national defense and increase our defense
capabilities," the premier said, noting that strengthening national
defense and building up the armed services is an important
guarantee for the security of the state and the success of the
modernization drive.
"We need to strengthen defense-related scientific research, reform
and restructure science, technology and industry related to
national defense, develop new weapons and equipment, utilize modern
technology, especially high technology, to improve the defense
capabilities and combat effectiveness of the armed forces, and
ensure their preparedness for any contingency," he said.
He
urged working conscientiously to implement the military strategy of
active defense in the new era; persisting in reform and innovation;
strengthening the armed forces through science and technology, with
emphasis on quality and thrift; running the armed forces by law;
streamlining the armed forces in a Chinese way in order to build a
more modernized, standardized revolutionary army; and raising the
people's awareness of the importance of national defense and
improving the mobilization system.
China will continue to pursue an independent foreign policy of
peace, develop friendly relations and cooperation with all
countries on the basis of the Five Principles of Peaceful
Coexistence, and strive for a long-term peaceful international
environment and good relations with its neighbors, he said.
Do Utmost for Peaceful Reunification
The mainland side will, together with the vast majority of its
compatriots in Taiwan, resolutely put a stop to any separatist
attempt and do its utmost to achieve peaceful reunification.
"An early settlement of the Taiwan issue and the accomplishment of
national reunification are the shared aspirations of the entire
Chinese nation and an enormous task we are now facing," the premier
said.
The mainland will continue to follow the basic principles of "
peaceful reunification" and "one country, two systems" and the
eight-point proposal put forward by President Jiang Zemin, he
noted. "We will, together with the vast majority of our compatriots
in Taiwan, resolutely put a stop to any separatist attempt and do
its utmost to achieve peaceful reunification," he said.
Zhu pledged to adhere to the one China principle, continue to push
for cross-Straits dialogue and negotiations on that basis, and
promote economic, cultural and personnel exchanges between the two
sides.
"We are confident that with the unremitting efforts of all Chinese
people, the great cause of national reunification will surely be
accomplished at an early date," he stressed.
"As we enter the new century, we will continue to adhere to the
principle of "one country, two systems" and the basic laws of Hong
Kong and Macao special administrative regions. We will render full
support to the chief executives and governments of Hong Kong and
Macao in their efforts to govern the regions in accordance with
law, and defend the long-term prosperity and stability of Hong Kong
and Macao," he said.
Tasks in 2001
The year 2001 is the first year of the new century and the first
year for the implementation of the Tenth Five-Year Plan for
National Economic and Social Development (2001-2005).
To
ensure a good beginning, it is crucial to act in the spirit of the
recently-convened Fifth Plenary Session of the Party's Fifteenth
Central Committee and its conference on economic work, and do all
aspects of this year's work well.
China will adhere to the policy of expanding domestic demand and
continue to follow a proactive fiscal policy and a prudent monetary
policy, he said.
In
2001, China will issue 150 billion yuan worth of long-term treasury
bonds, and invest the ensuing revenue in projects under
construction and development projects in its western regions.
The premier also promised to raise staff salaries of government
organizations and institutions at an appropriate rate; increase the
earnings of urban residents with low incomes; put strengthening
agriculture and increasing farmers' incomes on the top of the
economic agenda, and take effective measures to solve outstanding
agricultural and other problems presently facing rural areas; and
consolidate and build on achievements in the reform of state-owned
enterprises, and pay special attention to establishing a modern
corporate structure, transforming operational mechanisms and
intensifying scientific management.
China should quicken its preparations for accession to the World
Trade Organization (WTO), he stressed. "We need to improve the
social security system, create more jobs by various means, and
raise people's living standards," he said.
Zhu said that an important and pressing task is to make great
efforts to reorganize and standardize the order of the market
economy. He urged promoting spiritual civilization and improving
democracy and the legal system; continuing to handle properly the
relationship between reform, development and stability, improving
all facets of public security and maintaining social stability.
"We fully support Beijing's bid to host the Olympic Games," he
said.