In 2004, China began to implement the scientific development concept of putting people first, focusing on promoting the all-round, coordinated development of the urban and rural areas, different regions, as well as economy and society, promoting all people's equal participation in development and share of development results, and continuously enhancing the level of people's enjoyment of their economic, social and cultural rights.

    The Chinese government attaches great importance to the protection of laborers' rights. The state has adopted many measures to promote employment and re-employment, including re-employment aid, strengthened control of unemployment and regulation over staff cuts by enterprises. In 2004, there were 9.8million new employees and 5.1 million re-employed laid-off workersin urban areas in China; the registered unemployment rate was 4.2 percent in urban areas, 0.1 percentage point lower than in the previous year. By the end of 2004, the number of workers laid off from state-owned enterprises shrank to 1.53 million, of whom 920,000 joined re-employment service centers, where they received subsistence allowances, and which paid their social insurance premiums.

    The labor security and social insurance systems have been further strengthened. In 2004, the State Council promulgated and implemented the "Rules of Supervision over Labor Security," thus providing a legal basis in this aspect. The "Provisions on Collective Contracts" and the "Provisions on Minimum Wages" were amended and promulgated. A minimum-wage guarantee system has been established in all areas, and most areas have readjusted the minimum-wage standards in a timely and appropriate way. The "Corporate Annuity Trial Measures" and the "Management of CorporateAnnuity Funds Trial Measures" were enacted and promulgated to promote the establishment of a multi-level system of old-age insurance. The management of hospitals and pharmacies designated for medical insurance has been further improved. Guidance has beengiven to employees of organizations of mixed ownership and non-state-owned enterprises to participate in medical insurance, and the catalogues of medicines covered by basic medic al insurance and industrial injury insurance have been amended to better cater to the demands of the insured for reasonable use of medicine. Considering the constant flow of migrant workers from rural areas,a special policy has been made and implemented for their participation in industrial injury insurance and the payment of compensation for industrial injuries. A comprehensive study has been launched of the situ-ation of employment and social security of migrant workers from rural areas and farmers whose lands have been requisitioned. Energetic efforts have been made to promote the participation of employees of high-risk enterprises in industrial insurance in light of the high risks they are exposed to.

     The coverage of social insurance has been continuously expanded,and various insurance funds and social security funds have continued to increase considerably. In 2004, the central treasury put 146.5 billion yuan into social security, 18.1 percent more than in the previous year. The standards of basic pensions for retirees from enterprises and the minimum living guarantee for urban residents in some areas have been raised. In 2004, basic pensions were duly and fully issued to all retirees from enterprises throughout China, totaling 303.1 billion yuan, with 52.2 billion yuan of subsidies from the central treasury. By the end of 2004, the numbers of people participating in basic pension insurance, unemployment insurance, medical insurance and industrial injury insurance in urban areas had reached 164 million,106 million, 124 million and 68.45 million, respectively, 8.47 million, 2.11 million, 15.02 million and 22.70 million more than at the end of the previous year respectively. In the rural areas, 55 million people had participated in social old-age pension system. In 2004, 4.19 million people received unemployment insurance benefits, 0.52 million people received compensation under the industrial injury insurance scheme, about 2.20 million farmers received old-age pensions, and 22.01 million urban residents were issued minimum living allowances by the government.

    The state has vigorously developed education, science, culture,health care and sports, striving to guarantee citizens' rights to education, culture and living in an all-round way. In 2004, the central treasury earmarked 98.7 billion yuan and invested 14.7 billion yuan in treasury bonds for these purposes. In the same year, the central treasury appropriated various special-purpose funds, totaling over 10 billion yuan, for compulsory education in rural areas, an increase of more than 70 percent from the 5.8 billion yuan of 2003. The central treasury appropriated 6.8 billion yuan for education, including basic universal nine-year compulsory education and basic elimination of illiteracy among young and middle-aged people ("two basic's" for short), as well asconstruction of public health care facilities in the western regions, 2.7 billion yuan more than in the previous year. As a result, 2.0558 million illiterate people received rudimentary education, 2,364 boarding schools in western rural areas are beingbuilt, ramshackle buildings of 8,130 secondary and elementary schools in central and western China were renovated, and 24 million students from impoverished families within the compulsory education period in central and western rural areas received free textbooks. At present, there are more than 70,000 private schools (educational establishments) at all levels and of various kinds, with over 17 million students, and more than 10,000 training institutes. In 2003, the national treasury appropriated 109.4 billion yuan for compulsory education in rural areas, more than twice the 53.3 billion yuan in 1999 and accounting for 80 percent of the total funds for the purpose in the same year.