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.
