7) We need to conduct effective oversight and inspection. We will carry out inspections for energy conservation and pollution reduction, and strengthen oversight and inspection of compliance with the responsibility system for meeting energy conservation and pollution reduction targets, requirements for mandatory energy efficiency labeling and adoption of energy saving measures by high energy-consuming enterprises. We will carry out on-line monitoring of target energy consuming enterprises and major pollution sources and increase oversight over the operation of facilities for urban sewage and waste treatment and desulphurization.8) We need to conserve land and use land intensively. We will implement the strictest possible land management system, carefully follow the master plan and annual plans for land utilization, strengthen control over the amount of land to be used for development projects, protect arable land, especially basic farmland, and prohibit unauthorized development on agricultural land. We will strictly implement quotas for the amount of land that can be used for development projects and minimum price standards for the transfer of land for industrial use. We will standardize management of revenue and expenditures deriving from the transfer of land and incorporate into local budgets all the proceeds from and payment for the transfer of the rights to use state-owned land.

    4. We will enhance the capacity for independent innovation and promote improvement and upgrading of the industrial structure.1) We need to diligently implement the Outline of the National Program for Long- and Medium-term Scientific and Technological Development, and introduce another set of detailed rules for implementing support policies to encourage independent innovation. We will carry out major state science and technology projects, develop a group of major science and technology infrastructure facilities, build a number of state engineering laboratories and research centers, provide support for a number enterprise technology centers that have obtained state recognition and promote association of applicable technology research institutes with production enterprises. We will continue to develop the platform to support technology sharing, improve agencies dealing in technical consultation and technology transfer and strengthen the protection of intellectual property rights.2) We need to accelerate the development of the service sector. We will carefully carry out planning and development of projects in key areas of the service sector. We will relax and standardize entry-level requirements, implement fiscal, tax and pricing policies to support the development of key areas, shore up weak links and support development of new growth areas in the service sector. We will learn from advanced foreign practices, technologies and management expertise to improve the quality and level of China's service industries.3) We need to adjust and improve the industrial structure. We will implement the Provisional Measures for Promoting Industrial Restructuring and the Guiding Catalogue for Industrial Restructuring, improve the system for managing entry into industries, accelerate restructuring of industries with excess production capacity, encourage and support mergers and reorganization among enterprises in the steel, cement, electrolytic aluminum, coal, textiles and papermaking industries, and close down backward production facilities in accordance with the law. We must also pay close attention to changes in supply and demand in the markets for other industries and the status of their production so we can promptly take measures to prevent development of additional excess production capacity. We will extensively apply advanced information technology to transform traditional industries, paying particular attention to upgrading technology in the steel, building materials, coal, power, petrochemicals and construction industries.4) We need to strengthen the core competitiveness of high-tech industries. We will continue to carry out projects for high-tech development and projects for industrial application of high-tech advances in the fields of biopharmaceutical, integrated circuits, new generation mobile communications, next generation Internet and information security, and work out industrial policies on software and integrated circuits, digital TV and bioindustry. We will set up high-tech industrial bases for electronic information, biotechnology and aeronautics and aerospace, and foster the formation of groups of new industries.5) We need to vigorously promote the development of the equipment manufacturing industry. We will introduce as soon as possible measures to encourage the purchase and use of key equipment that are newly developed and manufactured domestically, and formulate a plan and general implementation program for major projects to develop high-grade digitally controlled machine tools and basic manufacturing equipment. We will begin independent production of key equipment for the Ling'ao (Phase II) and Hongyanhe nuclear power station projects and launch trial demonstration projects for1,000-kilovolt AC and 800-kilovolt DC transmission and transformer facilities. We will consolidate and continue progress in producing urban rail transit facilities independently, promote independent production of high-tech ships and ship equipment, and accelerate the infrastructure development of large shipbuilding facilities.6) We need to systematically develop alternative energy. We will promptly work out a long- and medium-term program for developing alternative energy and plans for developing coal-based alternative energy and biomass energy. We will first conduct trials and then proceed steadily, avoiding rushing into any technology before it has matured.

    5. We will implement the overall strategy for regional development and promote balanced economic development among regions.1) We need to continue to accelerate the development of the western region. We will carry out the plan for the large-scale development of the western region in the Eleventh Five-year Plan period by accelerating the development of infrastructure, ecological improvement, environmental protection, science and technology and education. We will begin work on a group of key projects to speed up infrastructure development of railways, trunk highways, branch-line airports and inland waterways. We will vigorously develop competitive and distinctive resources in the western region and set up manufacturing bases that take advantage of them. We will promptly work out follow-up policies to consolidate and develop the results in returning farmland to forests and returning livestock pastures to grasslands. We will continue key ecological projects such as those to protect virgin forests, bring desertification under control and prevent the spread of stony deserts. We will strengthen human resource development and the legal system in the western region. We will improve coordination and cooperation among the eastern, central and western regions.2) We need to vigorously promote the rejuvenation of northeast China and other old industrial bases. We will support association and reorganization among enterprises and the development and manufacture of key equipment and promote improvement and upgrading of the equipment manufacturing, raw materials and agricultural and sideline product processing industries. We will develop commercial grain bases in the Songnen and Sanjiang plains, continue the trials to transform the economies of cities that depended on resources that are now exhausted and work to control sinkholes in coalmining areas and improve conditions in shantytowns.3) We need to carry out policy measures to boost the development of the central region. We will step up efforts to develop grain production bases, bases for producing energy resources and raw materials, advanced manufacturing and high-tech industrial bases and a comprehensive transportation system, and accelerate development of a modern commodity distribution industry. The region need to open wider to the outside world and receive and carry on the industrial transfer from the eastern region and abroad in an orderly way.4) We need to encourage constant innovation in systems and mechanisms and accelerate improvement and upgrading of the industrial structure in the eastern region, retaining the status of the region in leading the country in deepening reform and opening up, promoting scientific development and changing the pattern of economic growth. We will implement policy measures related to the development and opening up of the Binhai New Area in Tianjin and vigorously proceed with the trial reforms for comprehensive and sustainable development of the Pudong New Area in Shanghai and Shenzhen Special Economic Zone.5) We need to accelerate economic and social development in old revolutionary areas, ethnic minority areas, border areas and poverty-stricken areas, increase support for development of infrastructure and public services in underdeveloped areas and give more aid to ethnic groups with small populations.6) We need to compile plans for development priority zones at different levels of government. We will complete a national plan for development priority zones and make substantial progress in compiling provincial plans.7) We need to actively yet prudently promote urbanization. The focus of this effort will be on improving the overall carrying capacity of cities by first of all developing public transportation, concentrating on solving the serious problems of large cities such as traffic congestion and environmental pollution, and improving conditions in "inner-city villages."8) We need to do a good job in marine planning and support development of the marine economy.

    6. We will continue to deepen all reforms and raise the quality and level of opening up. We need to strengthen overall guidance and coordination, set up a sound mechanism for coordinating and promoting institutional reforms, and strive for breakthroughs in key areas.1) We need to accelerate the reform of the administrative system. We will scientifically define responsibilities of different government bodies, improve the way government administration operates, improve the way the government exercises management and delivers services, promote government administration in accordance with the law and strengthen the administrative accountability system.2) We need to deepen all aspects of rural reforms. We will consolidate and develop the results of the reform of rural taxes and fees. We will vigorously promote comprehensive rural reform, which mainly consists of reform of town and township government bodies, reform of rural compulsory education and reform of the management system for county and township budgets. We will keep the system of land contracts stable and work to further improve contracts to protect the rights and interests of farmers. We will explore ways to develop new types of financial institutions geared towards rural areas and foster various types of micro credit lending institutions to improve the quality of rural financial services.

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