3) We need to continue the reform of enterprises. We will accelerate reform to transform large SOEs into stock companies and improve their corporate governance, mechanism for investment risk management and system of internal supervision and management. We will successfully continue work related to policy-mandated bankruptcy of SOEs, to relieving enterprises of the obligation to run social programs and to separating the secondary businesses of enterprises from main businesses and set up a budget system for the use of state capital. We will deepen reform of the management systems for the telecommunications, power, civil aviation and postal service industries. We will speed up reform of the investment and financing system for the railway industry and work out a master plan for restructuring the railway system. We will continue reform of urban public utilities such as water, gas and heat. We will fully implement policy measures to encourage, support and guide the development of the non-public sector of the economy. We will continue carrying out the project to nurture small and medium-sized enterprises, and improve the comprehensive system of services for them.4) We need to speed up financial reform and innovation. We will carry out reform of the Agricultural Bank of China in a steady and orderly manner. We will continue reform of policy banks and other commercial banks, financial asset management companies and non-bank financial institutions. We will vigorously develop the capital market and the insurance market, set up a multi-level system of financing market, strengthen the institutional foundation of the securities market, allow enterprises to issue more bonds and carefully carry out trials of industrial investment funds. We will steadily deregulate interest rates to leave them to market forces and improve the mechanism for setting the exchange rate for the RMB. We will improve the system of financial oversight and management to prevent and defuse financial risks.5) We need to steadily proceed with reform of the fiscal and tax systems. We will improve the system for transfer payments, deepen reform of the budget management system, work out plans and support measures to comprehensively implement VAT reforms, and improve the compensation systems for the use of mineral resources and for the protection, restoration and improvement of the natural environment.6) We need to deepen reform of the investment system. We will improve the approval procedures for projects funded by enterprises, publish the texts of sample project applications, revise the Catalogue of Enterprise-funded Projects Approved by the Government, and unify and standardize the system for recording these projects. We will continue the contractor system for construction projects and promptly set up an accountability system to cover decisions made on government-financed projects.7) We need to improve the mechanism for pricing resource products. We will gradually rationalize prices for refined oil and natural gas, adjust prices for all categories of water as needed, accelerate the reform of prices for electricity transmission and distribution, improve the policy of competitive prices and subsidies for electricity generated by wind, biomass and other renewable energy sources, and promote reform of the price of heat.8) We need to speed up improvement in the growth pattern of foreign trade. We will encourage the export of products with registered Chinese intellectual property rights using core Chinese technologies, raise the proportion of general trade and high value-added products exported, control the export of resource products and products whose manufacture consumes large amounts of energy or causes serious pollution, expand the import of energy, important mineral products, advanced technology and equipment and key spare parts and accessories, and strengthen strategic reserves of critical resources. We will raise the standards for approval for processing trade enterprises, and work vigorously to promote the upgrading of the processing trade.9) We need to make better use of foreign capital, focusing on introducing advanced technology, management expertise and high-caliber personnel. We will energetically yet prudently open the service sector wider to foreign competition, guide more foreign funds to the central and western regions, northeast China and other old industrial bases and fields identified in industrial policy and increase support for the central and western regions from foreign preferential loans. We will improve the policy measures and coordination mechanism for promoting overseas investment by Chinese firms and encourage and standardize their overseas investment and international cooperation activities. We will take an active part in the formulation of multilateral trade rules and the establishment of free trade zones.

    7. We will vigorously develop education, health and culture and strike a balance between economic and social development.1) Development of education is a high priority. We will continue to favor the countryside, the central and western regions, poverty-stricken areas, border areas and ethnic minority areas when allocating public education resources. We will implement a new mechanism for ensuring adequate funding for rural compulsory education, and resolve the problem of children of poor urban families and children of rural migrant workers in cities not having adequate access to compulsory education. We will strengthen development of the infrastructure of vocational education, focusing on support for secondary vocational education for rural students. We will accelerate reform of teaching in higher education with the focus on improving quality, continue to implement the 211 Project, and energetically develop key disciplines in colleges and universities. We will set up a sound national system of scholarships and assistance grants, carry out the student loan policy and provide education free of charge for pedagogical students at normal universities directly under the Ministry of Education.

    2) We need to improve the public health and basic medical service systems. We will phase in a basic health care system that covers both urban and rural areas. We will improve the community-based health service system in cities and implement measures to ensure adequate funding to make disease prevention and treatment more accessible and affordable for people. We will continue to prevent and control major communicable diseases. We will energetically support development of traditional Chinese medicine and folk medicine of ethnic minorities. We will soon workout a master plan and policy measures to deepen the reform of pharmaceutical and health care systems.3) We need to vigorously develop culture, radio, film, television, the press and publishing and sports. We will promote development of the system of public cultural services, paying particular attention to developing basic cultural facilities in rural areas. We will strengthen protection of recovered cultural relics and cultural and natural heritage sites, accelerate the building of major cultural projects such as the National Museum of China, the second phase of the National Library of China and the second phase of the China Art Gallery, and proceed with the reform of the cultural system. We will do everything possible to successfully complete venues for the Olympic Games.4) We need to maintain consistency in the current family planning policy, keep the birthrate low and improve the health of newborns. We will fully implement the reward and assistance system for rural households that comply with family planning regulations, improve community-level family planning services in rural areas and extend "Fewer Children Equals Faster Prosperity" pilot project to more areas. We will energetically develop programs for the elderly.

    8. We will conscientiously work to solve major problems that affect the vital interests of the people and promote the building of a harmonious society.1) We need to continue to follow a proactive employment policy. We will energetically develop labor-intensive industries, small and medium-sized enterprises and the service sector that can create more employment opportunities. We will provide people with better vocational training to equip them with the skills to find work. We will focus on creating and finding employment for university graduates and laid-off workers and actively help members of zero-employment households and people who have real difficulties finding employment to find jobs. We will fully implement the system of labor contracts. We will experiment with a mechanism to promote employment that covers both urban and rural areas.

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