””””BEIJING, March 20 (Xinhuanet) -- Following is the full text of a report on
China's national economic and social development plan delivered at the First
Session of the 10th National People's Congress on March 6, 2003:
””””REPORT ON THE IMPLEMENTATION OF THE 2002 PLAN FOR NATIONAL ECONOMIC
AND SOCIAL DEVELOPMENT AND ON THE 2003 DRAFT PLAN FOR NATIONAL ECONOMIC AND
SOCIAL DEVELOPMENT
””””Zeng Peiyan
””””Minister in Charge of the State Development Planning Commission
””””Fellow Deputies,
””””As entrusted by the State Council, I now report to this sessionon the
implementation of the 2002 Plan for National Economic and Social Development and
on the 2003 Draft Plan for National Economic and Social Development. I present
these to you for your examination and approval and also for comments and
suggestions from members of the National Committee of the Chinese People's
Political Consultative Conference.
””””I. Implementation of the 2002 Plan for National Economic and Social
Development
””””Under the leadership of the Communist Party of China, the people of all our
ethnic groups held high the great banner of DengXiaoping Theory and implemented
the important thought of Three Represents over the past year. Acting on the
decisions adopted at the Fifth Session of the Ninth National People's Congress,
we vigorously furthered the reform, opening up and modernization drive,
resulting in the sustained, rapid and sound development of the national economy
and in all-round social progress. The 2002 plan was implemented satisfactorily,
with the main targets for macroeconomic regulation attained successfully.
””””The policy of stimulating domestic demand continued to have positive
effects, and the national economy maintained sustained and rapid growth. This
country generated 10.2398 trillion yuan in GDP in 2002, 8% more than in the
previous year. We steadfastly implemented a proactive fiscal policy and a
prudent monetary policy, made good use of treasury bonds to stimulate
investment, and worked hard to induce nongovernment investment. Investment in
fixed assets for the whole country came to 4.3202 trillion yuan, a year-on-year
increase of 16.1%. Long-term treasury bonds totaling 150 billion yuan were
issued in 2002 with approval of the Fifth Session of the Ninth National People's
Congress, which led to an additional increase of 2 percentage points in China's
economic growth rate. A large number of high-quality assets have been created by
projects financed through treasury bonds. This has increased China's capability
for long-term development and played a positive role in optimizing the economic
structure, improving the investment environment, increasing revenue, promoting
technological progress in enterprises, increasing our ability to maintain
sustainable development, and raising people's living standards. Localities and
departments painstakingly organized the implementation of projects financed
through treasury bonds. They ensured the quality of the work and the safety of
the funds by tightening auditing, supervision and inspection and by increasing
public scrutiny. We continued to expand consumption as an important part of our
proactive fiscal policy and prudent monetary policy. Comprehensive measures were
taken to increase personal incomes and improve consumer policies and the
consumer environment, making greater spending possible among urban and rural
residents. Retail sales of consumer goods for the whole country totaled 4.0911
trillion yuan, 8.8% over the figure for 2001. New growth areas emerged as the
focus of consumer spending, including housing, communications, tourism,
education and automobiles.
””””Fresh progress was made in industrial restructuring, resulting in improved
quality and efficiency of economic growth. Good results were achieved in
restructuring agriculture and the rural economy. Adjustment of the geographical
distribution of agricultural production was accelerated, with continued shifting
of production of grain, cotton and other major agricultural products to the most
suitable areas. The livestock and aquatic farming sectors grew steadily. We
developed a number of high-yield, high-quality crop varieties and breeds that
are resistant to diseases and suited to adverse natural conditions and
continually increased the overall capacity of agricultural production. This
country produced 457.1 billion kilograms of grain in 2002, 1% morethan in 2001.
We vigorously promoted the industrial management of agriculture in order to
increase rural incomes. Infrastructure development made great headway, with a
large number of new projects for water conservancy, transport, communications,
energy development and environmental protection completed and put into operation
during the year. Our industrial structure continued to improve. Competitive
high-tech industries that possess proprietary intellectual property rights are
emerging. The industrial output value of our high-tech industries grew by 23%
year-on-year. We put into operation a range of major domestically produced
equipment, including urban rail transit facilities, environmental protection
equipment, and large-capacity aluminum oxide production equipment.We intensified
our efforts to reorganize traditional industries and upgrade their technology.
There have been stable development in traditional service industries, rapid
growth in modern ones, and vigorous development in telecommunications,
logistics, consultancy, tourism and community services. The economic performance
of enterprises improved significantly. State-owned and large non-state
industrial enterprises generated 562 billion yuan in profit in 2002, 20.6% more
than in the previous year.
””””Steady progress was made in developing China's west, and development of the
central and western regions was expedited. Infrastructure development continued
to accelerate. Construction started on a range of key projects such as piping
natural gas from the west to the east and harnessing the Tarim River in a
comprehensive way. Construction on the Qinghai-Tibet Railway and the project to
divert electricity from the west to the east proceeded satisfactorily. Work was
accelerated to ensure that every township has access to electricity, that every
county seat is served by asphalt roads, and that every village receives radio
and TV programs. Projects for ecological conservation such as those for
returning farmland to forest, protection of natural forest resources, prevention
and control of desertification, and restoration and development of natural
grassland kept on schedule. In 2002, we returned 2.52 million hectares of
farmland to forest and afforested an additional 2.88 million hectares of barren
hillsand uncultivated land. We sped up the development of small and medium-sized
water conservancy projects, potable water sources for people and livestock, and
roads in rural areas, improving the conditions for production and living
there.
””””Economic restructuring was steadily deepened, adding fresh vigor and
vitality to China's development. We continued and further standardized the
reform of large and medium-sized state-owned enterprises to convert them into
standard companies. The promulgation of the Law on Promoting Small and
Medium-Sized Enterprises helped improve the environment for developing such
enterprises. Development of individually and privately run businesses and other
non-public sectors of the economy was accelerated. Substantive progress was made
in restructuring the management system of such industries as telecommunications,
civil aviation and electric power. Price reform continued to deepen with the
introduction and strengthening of a system of public hearings for price-related
government decisions. We began to collect fees for treatment of urban sewage and
garbage, and instituted a system of advance notification of prices and
administrative fees related to farmers. Significant achievements were made in
upgrading electricity grids and restructuring the electricity supply system in
rural areas to adjust the electricity rates there to conform with those in urban
areas. Urban and rural residents in 70% of the counties are now paying the same
rate for household electricity, reducing the financial burden on rural residents
by 42 billion yuan a year. The fee-to-tax reform in rural areas was instituted
in 20 provinces (autonomous regions and municipalities directly under the
central government) on a trial basis. The reform to make the purchasing and
marketing of grain and cotton more market-oriented was accelerated. Conclusive
results were achieved in reforming the system of administrative examination and
approval. We intensified our efforts to straighten out and standardize the order
of the market economy, and we carried out a campaign to comedown hard on the
production and marketing of counterfeit and shoddy food products, medicines and
medical apparatus and instruments as well as other illegal acts. Efforts were
stepped up to target wrongdoings in cultural activities, tourism, the building
industry and rural market fairs. All this improved the market environment. Our
World Trade Organization (WTO) membership began well, and we further developed
our open economy. To fulfill our commitments to the WTO earnestly, we
formulated, revised or revoked relevant laws and regulations, lowered the
general tariff level, subjected non-tariff measures to phased elimination, and
opened more areas to foreign investment. In addition, we began to establish
anti-dumping, countervailing and safeguard mechanisms. The volume of our imports
and exports for 2002 reached 620.8 billion US dollars, an increase of 21.8% over
the previous year. Our trade mix continued to improve, with a significant
increase in the export of mechanical and electrical and high-tech products and
an increase in the import of key equipment, advanced technologies and resource
goods that are badly needed in China. Foreign direct investment in China over
the year amounted to $52.7 billion, 12.5% greater than in 2001. The foreign
investment structure became more rational and the investment was used to finance
more large capital-and technology-intensive projects. Fresh progress was made in
implementing the "going global" strategy. Regional as well as multilateral and
bilateral economic cooperation continued to deepen. Revenue continued to grow,
and banking and financial operations remained stable. Revenue for the entire
country amounted to 1.8914 trillion yuan, a year-on-year increase of 15.4%.
Expenditures reached 2.2012 trillion yuan, up 16.4%, exceeding revenue by 309.8
billion yuan. The financial sector intensified its support for economic growth
and restructuring while watching out for and defusing financial risks. The broad
money supply (M2) and the narrow money supply (M1) both increased by 16.8%, and
158.9 billion yuan was put into circulation during the year. At the end of 2002,
the outstanding loans for all financial institutions were 15.4% greater than at
the end of 2001; the ratio of their non-performing loans dropped by 4.5
percentage points; and China's foreign exchange reserves reached $286.4 billion.
””””The pace of advances and innovation in science and technology was
quickened, and the guiding role of education in China's development was
enhanced. Important progress was made in basic and high-tech research, and our
capability for independent innovation continually increased. The Shenzhou III
and IV spacecrafts were launched successfully and returned safely, and major
scientific and technological projects on super-large integrated circuits and
software, and functional genomes progressed smoothly. Significant progress was
made in establishing a national scientific and technological innovation system
and in reforming research institutes. We redoubled our efforts to develop
scientific and technological infrastructure such as key national laboratories
and scientific projects. Translation of research results into productive forces
was accelerated. Protection and management of intellectual property rights
improved. Constant improvement was made in elementary education. A new system
whereby county governments are held responsible for administering rural
compulsory education began to take shape. Fresh progress was registered in
making compulsory education universal in poverty-stricken areas. Significant
results were achieved in developing infrastructure necessary for greater student
enrollment in institutions of higher learning and regular senior secondary
schools, and in renovating dilapidated primary and secondary school buildings.
Development of regular senior secondary schools and secondary vocational and
technical education was accelerated. Higher education continued to grow, with
3.21 million new undergraduate students and 203,000 new graduate students
enrolled in regular institutions of higher learning.
””””All social undertakings developed in a comprehensive way, and the people's
lives continued to improve. Sound progress was made in culture, health, sports,
radio, film, TV, the press and publishing. Efforts were constantly intensified
to promote spiritual civilization. Progress was smooth in the development of a
number of key cultural facilities, rural health facilities, traditional Chinese
medicine hospitals and specialized hospitals. National fitness activities
flourished, and Chinese athletes did well in major sports competitions both at
home and abroad. Notable results were achieved in developing urban
infrastructure having a direct bearing on people's lives. The poverty-stricken
rural population decreased again. The per capita disposable income of urban
residents increased by 13.4% in real terms, and the per capita net income of
rural residents rose by 4.8%. We continued to strengthen the program to
guarantee that the living allowances for workers laid off from state-owned
enterprises and the basic pensions for retirees are paid on time and in full.
The program to grant subsistence allowances to the urban poor was notably
strengthened. Experiments to improve the urban social security system made great
headway. The registered urban unemployment rate was 4% at the end of 2002.
Progress was made in environmental protection and in the rational development
and use of resources, increasing our ability for sustainable development.
Greater efforts were made to improve the environment in key areas by closing a
number of seriously polluting enterprises or suspending their operations.
Conclusive results were achieved in the prevention and control of water
pollution in the valleys of the Huaihe, Haihe and Liaohe rivers and Taihu,
Chaohu and Dianchi lakes. Some cities and industrial and mining areas reduced
their discharge of sulfur dioxide to bring the worsening acid rain under
control. More environmental protection facilities such as sewage and garbage
treatment plants were built in urban areas, and 40.3% of urban sewage was
brought under centralized treatment. The pace of improving the ecological
environment and protecting resources was accelerated. Construction on the
south-to-north water diversion project started. The natural population growth
rate was 6.45.
””””Fellow Deputies,
””””The achievements of the past year were made on the basis of what we had
achieved since the policy of reform and opening up was introduced in the late
1970s, especially since 1998. During the past five years, the Chinese economy
has experienced sustained and rapid growth. All social undertakings have
developed rapidly. Our overall national strength has reached a new height. The
socialist market economy has been basically established. A pattern of
multidirectional opening to the outside world has taken shape. China's
international influence has grown notably, and our national cohesion has greatly
increased. Our country has enjoyed social stability, solidarity, good government
and a united people.These five years constituted one of the best periods of
development in China's history, during which a solid foundation has been laid
for our long-term development in the years to come. In the extraordinary course
of development over the past five years, our national economy enjoyed sustained,
rapid and sound development despite a host of unfavorable factors in the
international economic environment and numerous difficulties in the domestic
economy. We clearly realize that all this is attributable to the scientific
decisions and correct leadership of the central authorities and to the timely
guidance and intensified oversight of the National People's Congress and its
Standing Committee. Credit also goes to localities and departments for their
concerted efforts and earnest work, and to the people of all our ethnic groups
who have worked hard with one heart and one mind. We are also aware that there
are still many conflicts and problems in our economic and social activities and
that some of these are very serious. First, the problem of weak effective demand
is coupled with an irrational supply structure. Because the main factors
affecting rural incomes have yet to be eliminated, rural income growth has been
slow. Some urban residents have very low incomes and are confronted with many
difficulties in their lives. All this hinders the expansion of the consumer
market. The investment potential of the collective and private sectors and of
individually run businesses has yet to be fully tapped. Second, employment and
reemployment prospects remain grim. A large number of urban residents need to
find a job or get reemployed, and there is a huge surplus of rural labor that
needs to be diverted to work in urban areas. This makes it very difficult to
create enough new job opportunities to keep up with the demand for employment.
Third,the reform of state-owned enterprises is a monument al task, with
deep-seated problems still not totally solved. We still have a lot to do to make
development through fair competition possible for businesses under different
forms of ownership. Fourth, the order of the market economy remains fairly
chaotic. We still have a longway to go to establish a social credibility system.
Major industrial accidents occur frequently. The State Council is paying close
attention to these problems and working hard to adopt measures to solve them.
””””II. Regulatory Targets and Main Tasks for Economic and Social
Development in 2003
””””The year 2003 is important for carrying out the guiding principles set
forth at the Sixteenth National Congress of the Party and for making fresh
progress in building a well-off society in an all-round way. A comprehensive
analysis of the domestic and international economic environments shows that we
enjoy favorable conditions for accelerating development but also face new
challenges. Conditions might change and new problems could arise in the Chinese
economy, and there are many uncertainties in the world economy as well. Only by
enhancing our awareness of potential danger, preparing for adversity, adequately
assessing our difficulties and problems, and fully considering policy measures
can we avert peril and keep the upper hand. We must follow the guidance of Deng
Xiaoping Theory and the important thought of Three Represents. In compliance
with the overall requirements set by the central authorities for our economic
work, we will continue to expand domestic demand, implement a proactive fiscal
policy and a prudent monetary policy, and maintain continuity and stability in
our macroeconomic policies to promote sustained, rapid and sound development of
the national economy and all-round social progress.
””””Our main macroeconomic regulatory targets for 2003 are as follows:
””””-- Economic growth rate around 7%;
””””-- Over 8 million new jobs for urban residents, and registered urban
unemployment rate confined to 4.5%;
””””-- Rise in the consumer price index of no more than 1%; and
””””-- Increase in the total import and export volume of 7%.
””””To attain the macroeconomic regulatory targets for this year, we need to
focus on accomplishing the following tasks:
””””1. Accelerating the restructuring of agriculture and the rural economy and
doing everything possible to increase rural incomes. We must work energetically
to improve the quality of farm products, ensure that crops are grown in areas
with the best conditions, and develop industrial belts for production of
competitive farm products. More support will be provided for major grain
producing areas. We need to develop and perfect a system of quality standards,
an inspection and testing system and a certification system for farm products in
order to improve their quality and safety. We will strengthen dissemination of
agricultural science and technology and promote transformation of research
achievements into productive forces. The policies and measures to support
conduit enterprises will be further improved and implemented. We will develop
intensive processing of agricultural products and improve the industrial
management of agriculture. The rural land policy will be implemented in
accordance with the law. Efforts will be intensified to improve agricultural and
rural infrastructure, focusing on the so-called "one big" and "six small"
projects. By the "one big" project we mean continued effort to develop key
projects in agriculture, forestry and water conservancy. The "six small"
projects are the small and medium-sized infrastructure projects for
water-efficient irrigation, potable water for people and livestock, country
roads, rural marshgas, rural hydroelectricity and pasture fencing. More
resources will be devoted to anti-poverty programs. More work will be made
available as a form of relief. Priority will be given to solving outstanding
problems such as roads, potable water and electricity in poverty-stricken areas.
We will accelerate restructuring, institutional innovation and technological
progress in township and village enterprises and ensure the orderly development
of urbanization. We will continue to guide the rational and orderly movement of
rural labor and eliminate discriminative policies an dunfair charges affecting
rural laborers working in urban areas to safeguard their legitimate rights and
interests. The fee-to-tax reform will be carried out on a trial basis in all
rural areas, and support policies will be improved. Reform of the grain and
cotton distribution systems will be deepened to protect the interests of
farmers. We will rectify prices and fees affecting farmers, institute an advance
notification system, and develop special programs to solve particularly thorny
problems so as to reduce the burden on farmers. The per capita net income for
rural residents is expected to increase by 4% in 2003.
””””2. Giving fuller play to the role of treasury bonds in stimulating
investment to promote economic restructuring and stable and rapid economic
growth. In 2003, we plan to issue 140 billion yuan worth of long-term treasury
bonds, and the country's fixed asset investment is expected to grow by 12%. We
must put the funds raised from treasury bond issues to the best possible use in
an optimized investment structure in accordance with the relevant resolutions of
this session. These funds should first of all be used to continue and complete
bond-financed projects currently under construction and to fund new projects
that are necessary. Priority will be mainly given to four tasks in the
allocation of these funds: improving conditions for production and living in
rural areas; restructuring to promote technological progress and industrial
upgrading and to support and guide the development of the service sector;
supporting development of the central and western regions to ensure smooth
progress in their key projects; and developing science and technology, education
and the ecological environment to ensure implementation of the strategy of
rejuvenating the country through science, technology and educationand the
strategy of sustainable development. Proper preparation must be made for
launching projects, and management, inspection and supervision must be
strengthened to prevent low-quality, redundant development. We will actively
seek new forms of financing for infrastructure development. These could include
transferring to non-state sectors of the right to operate projects and the
equity in these projects and reinvesting the recovered funds. We will allow an
appropriate increase in the amount of bonds issued by enterprises, provided that
enhanced risk control and prevention are in place. We will increase interest
subsidies for treasury bonds to attract and stimulate more nongovernment
investment. Nongovernment capital will be given access to more areas.
Intermediate services will be developed for nongovernment investment. Fair
competition will be promoted in investment, financing, taxation and land use.
Supervision and management will be strengthened in accordance with the law in
order to guide non-public sectors of the economy to seek sound development.
””””3. Working hard to increase job opportunities and constantly improving the
social security system. Efforts to bring the unemployment rate under control and
increase job opportunities should be incorporated into the plans of governments
at all levels for economic and social development. We will spare no effort to
reach the projected targets for creating new job opportunities in cities and
towns. Development of the service sector will be the main source of new
employment and reemployment. In particular, we must make full use of the
important roles of individually and privately run businesses and of small and
medium-sized enterprises in increasing employment. Great efforts should be made
to create jobs in urban communities. The labor market needs to be standardized
and further developed. Unemployed people are encouraged and supported to seek
jobs on their own and to start their own businesses. We will conscientiously
implement policies and measures for reducing or exempting taxes and fees,
granting guaranteed microcredit with interest subsidies and subsidizing social
insurance so as to promote reemployment. Large and medium-sized state-owned
enterprises are encouraged to make appropriate arrangements for their redundant
personnel by separating their core business from their secondary businesses and
changing the way the secondary businesses operate. We must ensure that the
number of workers laid off or channeled to other work and the pace of this
process are appropriate, taking into full consideration the resilience of our
financial resources, enterprises, workers and social security system. Vocational
training will be strengthened to improve the skills workers need for employment.
We will continue to provide employment assistance to people having difficulty
finding jobs. We will provide proper guidance and services to new graduates from
institutions of high learning and vocational schools to help them find jobs or
start their own businesses. The social security system will be improved. We will
further consolidate the system of guaranteeing that the basic living allowances
for workers laid off from state-owned enterprises and the basic pensions for
retirees are paid on time and in full. We will improve the system of
guaranteeing a minimum subsistence level for needy urban residents. And we will
properly coordinate the implementation of the three programs for ensuring basic
living allowances for workers laid off from state-owned enterprises, for
improving unemployment insurance and for guaranteeing a minimum subsistence
level for needy urban residents. We will continue to ensure success of the trial
program to improvethe urban social security system.
””””4. Accelerating adjustment and improvement of the industrial structure in
accordance with the requirements for taking a new road to industrialization. We
will give priority to development of the information industry by applying IT in
all areas of economic and social development and promoting e-government
vigorously. We will accelerate development of new and high technology industries
and continue implementing the major high-tech projects for developing deep
submicron integrated circuits, digital TV, satellite systems for direct
transmission of radio and TV programs, biology, new medicines and modern
agriculture. These projects will exert a far-reaching influence on national
economic development. We will further develop national engineering research
centers and national high-tech industry bases to increase our ability to apply
advances in new and high technology in industrial production. We will revitalize
the equipment manufacturing industry and accelerate the pace of producing
essential equipment domestically through the development of major projects, so
as to increase our capability for independent development and raise our overall
level of technology. Technological upgrading in key industries and enterprises
will be accelerated. We will make a success a number of key projects in the
fields of energy and raw materials. Planning and guidance for the automobile,
iron and steel, and building materials industries will be strengthened in order
to avoid unplanned development and disorderly competition. We will actively
explore new ideas and methods to transform and revitalize the northeastern
region and other old industrial bases, and support cities and areas mainly
engaged in natural resource exploitation to solve their outstanding problems and
develop alternative industries. Obsolete equipment, technologies and production
processes will be abandoned. Enterprises wasting resources, causing serious
environmental pollution or operating under unsafe conditions will be closed
down. Vigorous efforts will be made to develop modern service industries and
modern distribution methods such as chain operations and centrally managed
distribution. We will make full use of the role of the service sector in guiding
investment and promote its comprehensive development. (More)
Part Two
Part Three
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