In the 13 years since the founding of the third generation
collective leadership with Mr. Jiang Zemin at the core, China has
made remarkable achievements in reform and opening up. The Central
Party Committee has held high the great banner of Deng Xiaoping
Theory, implemented the thought of "Three Representatives,"
followed the path of building socialism with Chinese
characteristics, and taken a host of important decisions on
advancing in an all-round manner the reform and opening up program
and socialist modernization drive. A series of historic changes
have taken place in China's economic and social life. The second
strategic objective of modernization has been realized, and actions
have been taken towards the third strategic objective. People will
enjoy an even more comfortable life, and the socialist
modernization will be further accelerated. The achievements made in
the 13 years can be summarized into the following eight aspects.
I. Various adverse internal and external influences have been
overcome. National economy has maintained rapid growth; the
country's economic power, overall national strength and
international competitiveness have all reached a higher
stage.
1. The country's economy has kept a stable and rapid growth.
With the 13 years' sound leadership of the Central Party Committee,
reform and opening up program has been advanced to a new stage,
inflation has be effectively managed, the impacts brought by the
Asian Financial Crisis and international economic depression have
been overcome, and the tendency of deflation has been contained.
The ups and downs of economic growth have been avoided. From 1990
to 2001, the annual growth rate of Gross Domestic Product averages
9.3 percent, about 7 percentage points higher than the 2.5 percent
world economic growth rate of the same period. The national economy
maintains a good momentum of growth this year. For the first three
quarters, the GDP grew by 7.9 percent, 0.3 percent higher than the
same period of last year. The GDP for this year is projected to be
over 1 trillion Yuan.
2. Economic strength has been enhanced. The Gross Domestic
Product of 2001 reached 9,593.3 billions Yuan, which doubled that
of the year 1990, hence China leaped from the tenth place in the
world and the second place among developing countries to the sixth
place and first place respectively. Productions of main industrial
and agricultural products, such as grain, meat, steel, coal,
cement, digital program-controlled switchboard, ranked number one
in the world. Foreign exchange reserve has amounted to US$246.5
billion July this year from 1989's US$5.55 billion, ranking the
second in the world. Grain reserve has reached a historic high
level.
3. The quality of economic growth and efficiency kept
improving. Guided by the central government's strategic
thoughts of improving economic efficiency as core of economic
development and transferring economic growth from extensive mode to
intensive mode, technology, production and management of
enterprises have been greatly modernized. In 2001, energy consumed
by every 10 thousand Yuan's output has reduced by 73.3 percent on
the basis of 1990, and the social productivity from 1990 to 2000
has experienced an average annual growth of 14.8 percent. China's
enterprises' international competitiveness has been continuously
increased. Fiscal revenue of 2001 reached 1,637.1 billion Yuan,
which is a 6.1-fold increase of the 1990's.
II. In accordance with the requirement of strategic adjustment
put forward by the Fifteenth Party Committee, great efforts have
been made in structural adjustment, which effectively promoted
economic structure rationalization and optimization.
1. Structures of primary, secondary and tertiary industries are
better coordinated. In 2001, the proportion of the added value
of 3 industries in GDP has changed from 1990's 27: 42: 31 to 15:
51: 34.
2. "Three Optimizations" and "One Increase" have turned up
agricultural structure. The first optimization is in crop mix,
where grain crop, economic crop and feed crop are coordinated, and
major agricultural products are concentrated in advantageous areas.
The second is agricultural products structure optimization.
Improved varieties of crops account for 95 percent of the country's
total. The third is optimization of rural industries, where
the proportions of animal husbandry and fishery in the total
production of farming, forestry, animal husbandry and fishery
raised respectively by 4.7 and 5.4 percentage points. Fourthly,
the level of agricultural products processing and efficiency keeps
increasing. Production in the form of "corporation plus
farmers" and order farming is developing very fast, and a large
number of leading agricultural products processing enterprises,
specialized counties and villages have emerged, which have
effectively raised the added-value of primary products, extended
agricultural chain and increased farmers' income. Agricultural
productivity has been increased tremendously.
3. The overall quality of industry and its international
competitiveness are obviously strengthened. Innovations of
traditional industries are accelerated. Traditional industries such
as color TV, washing machine, textile and container have strong
worldwide competitiveness. High-tech industry becomes a new point
of economic growth. Its industrial output from 1996 to 2001 grew
annually by around 20 percent. High-tech industrial belts with
their own characteristics have been formed in the Yangtze Delta,
Pearl River Delta, Cross-Bohai Sea, along Shenyang-Dalian highway
and around cities such as Xi'an, Chengdu, and Chongqing.
Information technology, modern bio-technology are widely applied in
all aspects of social life. Equipment manufacturing industry has
seen new accomplishment. By implementing manufacturing projects of
urban mass transportation equipment, environmental protection
equipment localization, digital communication equipment
localization, Chinese equipment manufacturing enterprises have
enormously improved their self-alliance capability. Structure of
service industry keeps being optimized. The proportions of some
traditional service industries such as wholesaling, retailing, and
catering have gone down, and that of communication service has
increased. New services such as consulting, logistics, chain
management and community service are booming. Tourism, in
particular, with its rapid development, has become a new point of
economic growth.
4. Bottleneck restraints for economic and social development
brought by infrastructure and basic industries have by and large
been removed; capability of energy production, transportation and
communication have improved greatly. China's installed power
generation capacity and highway length both rank the second place,
and numbers of fixed telephone and mobile phone subscribers are
number one in the world. Urban water supply, transport, garbage and
waste water treatment have been notably improved, which have
developed the cities' function, and improved the cities'
appearance.
III. Reform has achieved historic progress, and the shift from a
planned economy to a socialist market economy has been basically
realized. Preliminary socialist market economy has been
established.
To
establish socialist market economy is an unprecedented undertaking.
The third generation collective leadership with Mr. Jiang Zemin at
the core has put forward the objective of establishing a socialist
market economy, vigorously promoted the reform of economic
structure, actively eliminated the systematic impediments of
productivity gains, and established preliminarily a socialist
market economy.
1. Market plays a fundamental role in allocating resources.
First of all, both industrial and agricultural productions are
decided by market. All mandatory plans for agricultural
production have been removed, and industrial production mandatory
plans are limited to 5 kinds of products, including timber, gold,
cigarette, salt and natural gas, among which mandatory plans only
exist in some links in the production chain and a number of product
types. Secondly, prices of commodities and service are
determined by market. Currently, prices of 95.8 percent retail
commodities, 92.5 percent agricultural and sideline products and
87.4 percent productive materials are determined by market.
Thirdly, markets of production factor have developed to certain
scale. Stock market is developing rapidly, a uniform market for
inter-bank borrowing and lending has been set up, bill discounting
market and Treasury bond market have come into being. Labor market
is being optimized, and trade volume of both technological market
and land market are continuously increasing. Fourthly, market
environment is improving day by day. A great number of modern
commodity markets with over 10 billion Yuan trade volume have
become important channels which connect production with sales and
link cities with countryside. Modern logistics centers,
distribution centers and e-business have developed. At the same
time, necessary market laws and regulations have been amplified,
and market supervision and licensing agencies have been gradually
perfected. Regional blockade and monopoly have been abolished, and
an open and fair market system has been set up.
2. The economic system, which has public ownership at its
dominant position and allows for diverse forms of ownership, has
been basically formed. First, state-owned economy makes further
development with stronger controlling power. By the end of
2001, state-owned property has reached 10,931.6 billion Yuan, which
is 91.4 percent more than that of the year of 1995. The state-owned
economy is the leading force in key areas that concern the national
economy and people's livelihood. The establishment of a modern
enterprise system is the orientation of the reform of state-owned
enterprise. Reform of state-owned enterprises has been accelerated,
which improves the quality and efficiency of the state-owned
economy. Secondly, non-state-owned economy is growing
vigorously, and it has become an important strength of national
economy. In the year of 1990, non-state-owned economy including
private economy accounted for only 10 percent of the country's
industrial added value, and the present figure is over one third.
Private sector of economy has become an important channel of
absorbing labor force.
3. Macro regulatory system has been basically established.
Economic, legal and necessary administrative tools have replaced
mandatory plans. Economic regulation are realized through indirect
means instead of the former direct means, by applying
comprehensively the taxation, interest rate, price and investment
policies.
4. Social security system has been basically formed. The
primary endowment insurance system for urban employees, which
features by a combination of social pooling and individual
accounts, has been basically set up. The primary medical insurance
system for urban employees has been initiated, and unemployment
insurance has been improved.
IV. Open economy is developing rapidly. An overall opening
structure is set up which lifts the opening-up drive to a new
stage.
Foreign trade reached a new stage. China's import and export volume
of 2001 has reached US$509.8 billion, which is 4.4 times of the
1990's, and China's ranking in the world has hence been raised to
6th from 16th. China has been the largest foreign capital receiving
developing country for 9 consecutive years. From 1990 to 2001,
foreign capital of US$510.8 billion is used, among which US$378
billon is foreign direct investment. 96 percent of foreign direct
investment since China's reform and opening up is realized in this
period of time. The foreign capital flew into China even faster in
the first 3 quarters of this year, when the foreign direct
investment actually utilized went up by 22.6 percent, 1.9
percentage points more than that of last year. The structure of
export commodity has kept improving, and main export goods have
shifted from agricultural products, raw materials, textile
processing products to machinery and electronics. China has
successfully entered WTO, which marks a new phase of China's
opening up. China's "Going Out" strategy made a good start: many
Chinese enterprises make full use of their comparative advantages
to invest overseas, establish factories in other countries and
conduct Sino-foreign economic and trade cooperation. China's
overseas investment has come to a large scale and extended to more
areas. Foreign contracting and labor service cooperation are
developing very fast, and China has become one of the world top 10
international project contracting countries.
V. Western Development Strategy has made significant progress
and regional economy has been developed in a more coordinated
way.
Western development strategy was first put forward by President
Jiang Zemin in 1999, and he has given a series of important
directives since then. Over the last more than two years, western
development has achieved material progress. The present western
China has a new and dynamic atmosphere: it has maintained social
stability, economic development, national unity and people's living
standards have been improved.
1. Unprecedented amount of projects and infrastructure
investment have been made to the West. The State has arranged
36 key projects with total investment of over 600 billion Yuan. 34
projects have started construction so far. The southern, middle and
northern lines of the West-East Power Transmission have been
basically formed, the Tibet-Qinghai railway is progressing well,
and the whole route of the West -East Gas Pipeline Project has been
carried out.
While implementing key projects, other forms of construction in the
countryside have also been strengthened, such as water supply,
undeveloped counties' road construction, and power transmission,
broadcasting and television network and biogas projects. The living
conditions in western China countryside have been greatly
improved.
2. Start to rebuild beautiful environment. A number of
eco-construction projects are initiated, such as reforestation,
natural forest protection, Beijing-Tianjin sand control, and
natural grassland restoration and etc. In 2000 and 2001, the state
has invested over 30 billion Yuan in western China's
eco-environmental construction projects. At present, reforestation
is carried out in 24 provinces, autonomous regions, Direct
Administrative Municipalities and Xinjiang Production and
Construction Corps. By the end of July, arable land as big as 43.27
million mu has been transferred into forest, and another
39.26 million mu of barren land has been reforested.
3. Feature economy and advantageous industries are developing
rapidly. A number of feature agricultural production bases have
been set up. They are majored in cotton, sugar, cigarette leave,
fruits, meat, and Chinese herbs, and a number of leading sideline
products enterprises have been developed. Advantageous resources
such as hydro-power, natural gas, coal, rare earth, sylvite,
phosphate mine, and non-ferrous metals are being explored in a more
intensive manner. The construction of energy and minerals
production bases and leading enterprises is further
strengthened.
VI. Great achievements have been made in socialist cultural and
ideological progress, legal system improvement, science,
technology, education, culture, and health. National defense and
ethnic unity is continuously strengthened.
The Central Party Committee has put forward the strategy of
"developing the country by relying on science and education" in
1995, according to the trend of world economic and scientific
development. Scientific renovations and technological progress are
encouraged, and the fundamental position of primary education is
highlighted, science, technology and education are fully developed.
The country's technological strength has been enhanced, and a large
number of scientific and technological achievements have been made.
"Renovation Project" and "863 Program" are successfully
implemented, and breakthroughs in aeronautics, astronautics,
information, new material and bio-engineering have been made. There
are a number of achievements in basic research which attract
international attention, and remarkable success is attained in
applied technology. Reform on applied science research institutions
affiliated with ministries has been initially completed, and the
reform now is spreading to other forms of research institutions.
More and more scientific achievements are translated into practical
productive forces and then introduced into market. Education gets
into a new development stage, which makes education play a more
effective role in guiding the economic and social development.
Remarkable progress has been made in primary education by realizing
the objective of the "Two Primary Tasks": primarily making the
9-year compulsory education universal and primarily eliminate
illiteracy of young and middle-aged people. High school education
and diverse vocational education are further advanced; reform of
higher education system has made significant progress, and higher
education enrollment enlargement is warmly welcomed by the public.
Socialist cultural and ideological progress is strongly enhanced by
sticking to coordinated development of economy and society, and by
increasing the investment in social undertakings under the
conditions of a developing economy and increasing financial
capacity.
VII. The growth of population has been effectively controlled.
Resources conservation, eco-construction and environment treatment
have produced remarkable effect. The capability of maintaining
sustainable development is increasingly strengthened.
The Central Party Committee with Mr. Jiang Zemin as its core has
made a significant decision to make sustainable development. This
decision is made for the country's long-term development and it is
in accordance with China's fundamental national situation, which is
featured by large population and limited resources.
1. Population reproduction mode has made a historic shift.
The natural growth rate of population has reduced from 1989's 15.04
percent to 2001's 6.95 percent. Population reproduction mode has
shifted form "high birth rate, low mortality rate and high growth
rate" to "low birth rate, low mortality rate and low growth rate".
Population quality keeps increasing.
2. Rational exploration and preservation of resources yield
remarkable effect. Arable land is effectively protected. Saving
on water in farming and urban life is making progress.
Deforestation and random mining are basically under control.
Harvest of forest along upstream of Yangtze River, middle and up
stream of Yellow River is forbidden. Timber production of northeast
China and Inner Mongolia is greatly reduced. Besides, notable
achievements have been made in marine resource preservation and
energy conservation.
3. Environmental protection is deepened and extended.
Discharge of pollutants is effectively controlled. Pollution
prevention and control in key river valleys, areas and cities have
produced effect of the current stage. Urban pollution has been
treated. Laws on environmental protection have seen significant
development, and people's awareness keeps increasing.
VIII. Relation between market demand and supply made a historic
shift from seller's market to buyer's market. People's living
standard has seen a historic improvement, people have solved the
problem of food and clothing, and most of them are enjoying a
fairly comfortable life. The dream of having adequate food and
clothing cherished by the Chinese people over the past thousands of
year has finally come true.
1. Income of people in both urban and rural areas increased by a
big margin. From 1990 to 2001, farmer's income per capita
increased by 62 percent. Urban resident disposable income per
capita more than doubled. The people's deposit outstanding has
reached 8,000 billion Yuan, but that of 1989 was 500 billion
Yuan.
2. Consumption level and living quality have been increased
notably, and consumption volume keeps enlarging. In 2001 total
retail volume of consumption goods increased 3.5 folds that of
1990. Great changes have taken places in consumption
structure. The proportion of people's expense on food per
capita to the total consumption per capita has reduces from 1990's
54.2 percent to 2001's 37.5 percent in cities and from 58.8 percent
to 47.7 percent in countryside. People's living conditions of both
urban and rural residents improved remarkably: living space,
quality, and necessary accessories are all upgrading. People are
enjoying a much comfortable life. Since reform and opening up,
quality of consumption goods has kept upgrading: such as
bicycles, wrist watch, sewing machine, computer, and automobile,
commercial housing, and etc. Some durable consumption goods become
popular in countryside.
3. Living conditions of low income groups in both rural and
urban areas are improving. For the purpose of ensuring the
basic living of people with living difficulty, such as laid-off
workers from state-owned enterprises and other unemployed people, a
number of social security systems (basic living security system for
SOE laid-off worker, unemployment insurance system and urban
resident basic living security system) are well set up and
connected, which realizes "the insurance for those should be
insured". By the end of 2001, poverty-stricken population in
countryside has reduced from to 28 million, and prior to reform and
opening up the figure was 220 million. Some areas with harsh
conditions for subsistence or poor eco-environment have also
embarked on the road of sustainable development.
The valuable experience of China's reform and opening-up with the
Party's leadership over the last 13 years can be summed up as the
following points:
1. Making economic development our central task and to seek
solutions of development for problems raised on the way of marching
forward. In this period, we are faced with both opportunities
and challenges. The Central Party Committee has always emphasizes
on grasping all possible opportunities, exploring new ways and
avoiding the beaten track, and always making development as the
priority in policy-making and nation building. The Central Party
Committee also stresses that accelerating development is the crux
of solving China's problems, and we should speed up development by
all possible means.
2. Adhere to the reform of building market-oriented economy and
handle properly the relations between reform, development and
stability. The Central Party Committee has always underlined
that development must rely on reform. Economic system reform must
be promoted in an all-round way according to the requirements of
liberating and developing the productive forces, and the objective
of the reform is to establish a socialist market economy. Economic
system and operating system to be established must be favorable to
the development of the productive forces. At the same time, the
relations between the depth of reform, the speed of growth and the
affordability of society should be addressed. The reform can only
be deepened and the growth be accelerated in a stable society,
which will promoted by reform and development.
3. Adhere to opening further to the outside world and make good
use of the resources and markets both at home and abroad. The
Central Patty Committee has made it a basic national policy to open
further to the outside world. It has also stressed that we should
actively take part in the international competition and faced the
challenges. We have to push our opening up drive to a higher level
under the current situation where economic globalization and world
economy restructuring have been accelerated. We should walk on both
legs of "going global" and "introducing in", and make full use of
the resources and markets both at home and abroad. Strategic
solutions to resource and employment problems must be found out so
as to expand economic development and maintain a rapid, sustained
and sound national economic development.
4. To make sober assessment of the situation, to be responsive
to the changes of the time and to make decisive adjustments of the
macro-policies in line with the changed situations, and always take
hold of making macro regulation in our own hands. Faced with
drastic changes of situations both at home and abroad, the Central
Party Committee adopted right measures in the opportune time. When
overheated economy prevailed, the moderately tightening fiscal
policy brought about economic "soft landing", which avoided violent
fluctuation. When effective demand was slack, actions of
stimulating domestic demand were adopted and the moderately
tightening fiscal policies were shifted to an expansionary fiscal
policies and a steady monetary policy, which maintained sustained,
rapid and sound economic development.
5. We must always work for material progress and at the same
time for cultural and ideological progress, and improve the
socialist legal system. Over the last 13 years, the Central
Party Committee has always emphasized that socialist modernization
is an undertaking with material progress and cultural and
ideological progress supplementing each other. Only with the two
types of tasks both successfully completed, can we call it the
socialism with Chinese characteristics. While vigorously developing
socialist economy, social cultural and ideological progress must be
put in an important position, providing the modernization program
with a powerful ideological driving force and strong intellectual
support. Besides, the Central Party Committee also stressed
improving democracy and legal system, managing state affairs
according to law, and establishing a socialist country ruled by
law. Therefore, all undertakings of the whole country will be
continuously pushed forward.
(China.org.cn November 11, 2002)