Central Economic Working Conference Held November 27 to 29

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Last updated at: (Beijing Time) Friday, November 30, 2001

Central Economic Working Conference Held November 27 to 29

The Communist Party of China (CPC) Central Committee and the State Council jointly held the Central Economic Working Conference in Beijing from November 27 to 29. Jiang Zemin, general secretary of the CPC Central Committee and Premier Zhu Rongji respectively delivered an important speech at the meeting.

The meeting proposed a general outline for the economic work of 2002, calling for deepening the reform, expanding the opening, speeding up the economic restructuring, overhauling and regulating the market, and improving the quality and performance of economic growth, so as to boost the sustainable, rapid and healthy development of the national economy and overall advancement of society.

Central Economic Working Conference Held in Beijing

Chinese leaders have just concluded a meeting to review the work in 2001 and formulate a guideline for economic development in 2002.

The Communist Party of China (CPC) Central Committee and the State Council jointly held the Central Economic Working Conference in Beijing from November 27-29.

Top leaders Jiang Zemin, Li Peng, Zhu Rongji, Li Ruihuan, Hu Jintao, Wei Jianxing and Li Lanqing attended the conference.

Jiang, the general secretary of the CPC Central Committee, delivered a key-note speech at the conference, to sum up 2001's economic work, analyze the present domestic and international situation, propose the general outline for the economic work of 2002, and make arrangements for the major tasks necessary for China's reform, development and stability.

In his speech, the Party leader called for the Party and all ofsociety to work hard to achieve a sustainable, rapid and healthy economic development and overall social progress, in order to be well-prepared for the opening of the 16th Party Congress.

The meeting had high praise for the country's sound developmenttrends in 2001, the first year of the 10th Five-Year Plan, despitea worldwide economic slowdown.

This year, China has achieved a sustained, rapid and healthy development of its national economy, characterized by greater efforts to restructure the economy, a faster capital investment, asteady increase in consumer demand, a continued growth in foreign trade and overseas investment, major steps made in the efforts to develop the backward, western part of the country, an increase in revenue, the smooth operation of the financial sector, deepening of reforms in different fields, and better quality and performancein economic growth.

It attributed the achievements to the leadership of the Party Central Committee with Jiang Zemin at the core.

The conference hailed Beijing's successful bid to host the 2008 Olympic Games, saying this achievement has greatly stirred the patriotism of the public. Meanwhile, the successful hosting of the Ninth Informal Leaders Meeting of the APEC further enhanced China's international status and influence, it said.

This year, China has also made progress in all sectors as well as in the plans to establish comprehensive control over public security and in the fight against corruption.

The entry into the World Trade Organization (WTO) marks that China will participate in globalization on a wider and deeper scope, and the country's opening-up to the outside world will enter into a new stage.

In 2001, China witnessed the celebration of the 80th founding anniversary of the CPC, the publicity of Jiang's thinking on the Party's role and the convening of the Sixth Plenary Session of the15th CPC Central Committee.

The meeting formed three basic conclusions on the international situation: peace and development will remain unchanged as the maintheme of the time; the trend of pluralism in the world will remainunchanged; and China faces more opportunities than challenges in the world arena.

The meeting proposed a general outline for the economic work of 2002, calling for deepening the reform, expanding the opening, speeding up the economic restructuring, overhauling and regulating the market, and improving the quality and performance of economic growth, so as to boost the sustainable, rapid and healthy development of the national economy and overall advancement of society.

To Continue Expanding Domestic Demand

China will continue its policyof expanding domestic demand so as to better develop its national economy in 2002, according to the three-day Central Economic Working Conference.

The conference said that expanding domestic demand is a strategic policy that China will adhere to for a long period of time, and it is imperative to further understand this policy, enrich its content and improve its effectiveness.

The conference pointed out that domestic demand expansion should be integrated with strategic adjustment of economic structure, deepening of economic reform, increasing employment, improving the living standards of the people, and ensuring sustainable development.

Efforts should be made to further cultivate domestic demand andincrease the income of both urban and rural residents, especially low-income earners, the conference said.

China will also continue its pro-active fiscal policy, issue long-term State treasury bonds and make necessary investments to realize sustained and fast development of the national economy, expand employment and maintain social stability.

The conference also said the structure of fiscal expenditures should be optimized so that expenses for social security and fees-to-tax reform in rural areas are ensured.

Efforts are needed to further improve and stabilize the taxation system, and strengthen taxation management, the conference said.

China will continue to pursue a steady monetary policy and reinforce the supporting role of finance in economic development. More funds will be earmarked for technical innovation of enterprises, the development of small and medium-sized enterprises,especially non-state sci-tech enterprises, and the readjustment ofagricultural structure.

Targets for Rural Work in 2002

China has set as one of its most important tasks in 2002 the vigorous adjustment of the agricultural structure in a move to increase the income of farmers.

The Central Economic Working Conference defined the readjustment of agricultural structure, deepening of rural reform and increasing farmers' income as major goals for 2002.

The conference said that to further change agricultural and rural economic set-ups is an important way for improving agricultural efficiency and boosting farmers' income. It is imperative to develop quality and special farm produce and expand animal husbandry into a more profitable industry as soon as possible.

Top priority should be given to the quality, sanitation and safety of food products, and efforts should be made to establish quality standards for farm produce, a system for examining and testing farm produce, and to develop organic and pollution-free food products.

The conference said agricultural industrialization can help revamp the structure of the sector and is a major issue in rural economic work.

More must be done to speed up the return of reclaimed farmland,as well as barren hills and land, to afforested areas.

The conference also stressed the importance of infrastructure construction and the improvement of production and living conditions in rural areas.

The conference held that the fees-to-tax reform in rural areas on trial basis has shown initial success. Next year, the reform will be introduced in more areas in the country.

The conference also discussed education, the household contractresponsibility system and other issues in rural areas.

China to Further Readjust Economic Structure

China will continue to readjust its economic structure and concentrate on making a success of technical upgrading in enterprises.

According to the conference, the country will continue to focus on the main task of economic readjustment.

To speed up technical upgrading in existing enterprises and improve technical standards of production will lay the groundwork to boost China's international competitiveness. This will also spur investment demand and improve supply capacity.

It is necessary to use high technologies and other advanced techniques to upgrade an important group of industries and enterprises, and new economic powerhouses should be built up, said the conference.

Efforts should be made to accelerate selected and prioritized high-tech industrial development so that high-tech industrial chains with Chinese characteristics and competitive advantages will be formed as early as possible.

Also, education should be developed, and improvements made to housing, tourism, neighborhood services, and modern ways of distribution. Doing so will create an efficient service network for China's economic development, and will help meet and enlarge the consumption demand of rural and urban residents.

It is also imperative to carefully carry out a series of strategic plans and policies set by the Central Government for exploring the vast western region, and to further guarantee a harmonious regional economic development.

Reform of state-owned enterprises (SOEs) will, for the foreseeable future, remain the core of the overall economic restructuring plan, said the conference.

It is necessary to continue the in-depth SOE reform in accordance with the requirements of "well-defined property, clearly-stated rights and obligations, a division of administrative and corporate functions, and scientific management.

" It is also important to perfect a corporate structure that merges rights and obligations, operates smoothly, and applies effective restrictions.

Large and medium-sized state-owned enterprises that meet the pre-set requirements should speed up the work of becoming share-holding entities, said the conference.

Efforts should also be made to continue to advance strategic reorganization in SOEs.

It is also imperative to foster a group of large companies and conglomerates with their own intellectual properties and strong controlling power, which can help adapt to international competition after China's entry into the World Trade Organization.

Diverse ways to enliven medium-sized and small SOEs should be found, and the build-up of the social security system should be continued.

It is imperative to further rectify and standardize market economic order, and to step up legal construction.

It is also necessary to cultivate the awareness in society of a business code of ethics, the attitude of honest and the sense of fair and honest competition.

China to Open up Wider After WTO Entry

China will take the opportunity of its WTO entry to open up wider to the outside world,according to the Central Economic Working Conference.

The conference said that China has gone through all the legal procedures for its WTO entry and will soon become a member of the organization. This marks a milestone in China's reform and openingup.

The conference urged that the nation should fully take into consideration the challenges brought by the WTO entry, making the best use of the advantages and minimize the negative impact.

The officials at various levels, especially leading officials, should study and master the basic rules and regulations concerningthe WTO, the conference stressed.

The governments should change the way they administrate the economy, enhance the continuity and transparency in policy-making,and raise the ability of operating in accordance with international practices.

According to the conference, China will speed up the cultivation of a contingent of talented professionals proficient in international economy and law.

All the enterprises should enhance their staff's sense of competitiveness, and they must accelerate technological innovationand improve service so as to gain more market share within the short transitional period.

The conference encouraged enterprises to seize the WTO entry opportunity to diversify their export channels, expand their export volumes and attract more overseas investment through every possible means.

China Vows to Increase Employment Rate

The Conference has urged the nation to create more jobs so as to improve people's living standards.

The meeting said that the country's employment situation is of political importance as it is vital for stability, reform and opening up. Therefore committees of the Communist Party of China and governments at all levels should pay close attention to the employment situation and work to provide more jobs.

The meeting urged that the development of labor-intensive industry should be stepped up, and the competitiveness of the state economy be improved. Meanwhile, various forms of ownership in economic development should also be encouraged.

It is important to make full use of the small and medium-sized enterprises and non-State economy in increasing China's employment rate, the meeting noted.

The meeting stressed the importance of the development of small towns and rural enterprises, which can eventually speed up urbanization by absorbing surplus labor from rural area.

It noted that there should be a reasonable allocation of labor resources as well as a balanced and fair system of income distribution, as these are important means to increase both people's incomes and domestic demand.

The meeting said a huge income gap between rich and poor should be avoided so as to prevent social strife and offer a sound environment for economic development.

It also stressed that work efficiency should be the priority while the principle of fair play must be taken into consideration.

People's Daily Hails Convening of Central Economic Working Conference

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