Major Points of Premier Zhu's Report on the Work of the Government

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

Major Points of Premier Zhu's Report on the Work of the Government

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Premier Zhu Reports Government Work

The Fifth Session of the Ninth National People's Congress (NPC) opened at the Great Hall of the People in Beijing Tuesday morning. Top Chinese leaders Jiang Zemin, Li Peng, Zhu Rongji, Li Ruihuan, Hu Jintao, Wei Jianxing and Li Lanqing attend the opening meeting. Premier Zhu Rongji delivered the Report on the Work of the Government.

China's Economy Keeps Good Development Momentum (In Detail)

China's national economy maintained a good momentum of development in the first year of the new century when the world economy was slowing down, said Chinese Premier Zhu Rongji.

The premier said that "China's GDP in 2001 reached 9.5933 trillion yuan, an increase of 7.3 percent over the previous year thanks to our efforts to provide incentives to domestic demand and our unswerving implementation of the proactive fiscal policy and a stable monetary policy."

Total profits of industrial enterprises of scale reached 465.7 billion yuan, increasing 8.1 percent over the previous year. Tax revenue increased by a large margin. The national revenues reached 1.6371 trillion yuan, increasing by 240 billion yuan in comparable terms.

Financial operations were stable. The general consumer price level rose by 0.7 percent. The total volume of imports and exports exceeded 500 billion U.S.dollars, with exports amounting to 266.2 billion U.S. dollars, a rise of 6.8 percent. Foreign direct investment totaled 46.8 billion U.S. dollars, up 14.9 percent.(In Detail);

Economic restructuring was further deepened; Science, technology, education and other social undertakings developed in an all-round way; Living standards of urban and rural residents continued to improve;

While reviewing achievements over the past year, Chinese Premier Zhu Rongji also identified economic and social problems still existing in the course of development.

In his government work report to the Fifth Session of the Ninth National People's Congress, Premier Zhu said that "we must soberly aware of these problems that demand urgent solutions."

The main problems he identified are: the growth of farmers' income was slow; income of farmers in some major grain producing areas and in areas seriously hit by natural disasters was reduced; wage payment in arrears was serious in some areas; there were still difficulties in the production and workers' life of some enterprises; and employment pressure mounted.

The irrational industrial structure and deep-seated problems in the economic system remain unresolved. Problems of the ecological environment are still outstanding.

Local protectionism still has continued unabated despite repeated orders to ban it, and the order of the market remains to be straightened up.

Formalism and bureaucracy run rife and deception, extravagance and waste are serious in some localities and with government departments and some leading cadres. Some forms of corruption are relatively serious.

There have been cases of work units taking the rules and regulations in their own hands to appropriate fiscal funds or ear-marked funds for other purposes. It is quite common that laws are not fully observed or enforced. Grave work accidents have occurred from time to time. Social order is far from being desired in some places.

"Some of these problems are left over from the past and some are associated with the shortcomings and mistakes in our work. We must attach great importance to these problems and take effective measures to solve them," he stressed.

General requirements for 2002. The requirements are: (In Detail)

-- To further carry out the spirit of the important speech made by Jiang Zemin at the celebration of the 80th anniversary of the founding of the Communist Party of China and the spirit of the fifth and sixth plenary sessions of the 15th CPC Central Committee under the guidance of Deng Xiaoping Theory and the spirit of the 15th CPC National Congress;

-- To correctly size up the complicated volatile international political and economic situation in line with the requirements of the idea of "Three Represents" and resist and overcome the risks and difficulties on the road ahead in order to maintain economic and social stability.

-- To continue the principle of expanding domestic demand, continue to deepen reform, open wider to the outside world, accelerate economic restructuring, overhaul and correct the market order, and improve the quality and efficiency of economic growth in order to promote a sustainable, rapid and healthy development of the national economy and overall social progress.

-- To take effective steps to promote spiritual civilization, improve democracy and the legal system and strengthen the Party building, and transform the functions of the government.

The premier called on the whole country to unite, display industry and thrift in building up the country and greet the convocation of the 16th National Congress of the Communist Party of China with new achievements in reform and opening up and in the modernization drive.

The premier contributed more than two third of the report to explaining the general requirements for this year's government work and the eight major aspects of it:

I. Expanding and fostering domestic demand to ensure a relatively rapid economic growth. (In Detail)

Zhu pointed out that in the current grim international economic situation, expanding domestic demand is very important for achieving a relatively rapid economic growth to further stimulate both consumption and investment.

In order to expand domestic demand, China first of all should raise the incomes of urban and rural residents, especially those with low income, to increase their purchasing power, he noted.

To reach this goal, he put forward five measures:

-- to take more effective measures and adopt all possible means to increase farmers' income and lighten their burden;

-- to further improve the urban social security system;

-- to continue appropriately raising the basic wages and salaries of employees in government departments and institutions and the pensions of their retirees;

-- to exert every effort to expand employment and reemployment;

-- to expand the scope of consumption and improve the climate for consumption. (In Detail)

Maintaining the necessary level of investment from treasury bonds to stimulate a relatively rapid growth of fixed-asset investment; (In Detail)

Doing a better job in financial and taxation work, stabilizing the taxation system, and strengthening tax collection and administration;

Continuing to implement the prudent monetary policy and strengthen the supervision and management of financial institutions.

II. Accelerating the development of agriculture and rural economy and increasing the incomes of farmers.

Zhu said, it is necessary to accelerate agricultural and rural economic restructuring, vigorously develop industrial management of agriculture, and promote the modernization of traditional agriculture.

In the meantime, the premier said a better job should be done in four fields: returning more farmland to forests, deepening the reform of rural taxes and administrative charges and the reform of the grain and cotton distribution systems, making efforts to increase sources of income for farmers, and supporting agriculture more effectively. (In Detail)

III. Carrying forward Adjustment of the economic structure and the economic restructuring.

(In Detail)

Accelerating the optimization and upgrading of the industrial structure;

Developing the western region and promoting coordinated development of different areas;

Deepening reforms centering on the reform of state-owned enterprises. (In Detail)

IV. Adapting to the new situation following China's entry into the WTO and opening wider to the outside world. (In Detail)

V. Thoroughly rectifying and regulating the order of the market economy.

Premier Zhu called for greater resolve and more effective measures to continue rectifying and regulating the order of the market economy this year. He listed five main tasks as follows:

-- to severely crack down on all illegal and criminal activities related to the production and sale of counterfeit and shoddy goods, especially food, medicine and medical apparatus that seriously endanger people's lives and health;

-- to continue rectifying and standardizing construction and cultural products markets and the order of finance and taxation;

-- to thoroughly rectify the financial order;

-- to eliminate local protectionism and monopoly of industries;

-- to strengthen the management of industrial and traffic safety, and improve the safety responsibility system.(In Detail)

Working in an all-round way while emphasizing key points;

Seeking both temporary and permanent solutions while focusing on the permanent solution.

VI. Implementing the strategy of developing the country through science and education and the strategy of sustainable development and strengthening spiritual civilization. (In Detail)

Expediting scientific and technological progress and innovation;

Continuing to give priority to the development of education;

Earnestly implementing the strategy of tapping human resources;

Maintaining sustainable development;(In Detail)

Promoting spiritual civilization.

VII. Further transforming government functions and improving the work style.

Zhu called for accelerating the pace of transforming government functions, improving work style, and putting an end to extravagance and waste.

He urged governments at all levels to take substantial measures to transform government functions into economic regulation, market supervision, social management and public service; further reform and reduce the scope of administrative examination and approval; standardize and simplify necessary approval procedures on the basis of openness and transparency and clearly defined responsibilities.

The premier also called for efforts to get rid of formalism and bureaucratism, which harm both the country and the people. He urged all government officials to initiate investigations and studies, go all the way down to the realities of life and among the people to learn their actual conditions, listen to their opinions, share their weal and woe, and lose no time in solving the problems that they resent or are dissatisfied about.

He asked government officials to resolutely check bad practices, such as false reports to deceive one's superiors or subordinates, misuse of the people's financial resources, and coercion. He urged them to speak the truth, do solid work, and stress practical results. (In Detail)

Accelerating the transformation of government functions;

Improving the work style of the government;

Resolutely combating extravagance and waste; (In Detail)

To ensure national security and social stability in the new circumstances; (In Detail)

Principle of "one country, two systems"; (In Detail)

One-China principle. (In Detail)

VIII. Doing a good job in Foreign Affairs. (In Detail)

"Let us rally more closely around the Party Central Committee with Comrade Jiang Zemin at its core, hold high the great banner of Deng Xiaoping Theory, and follow 'The Three Represents' principle, so as to strengthen our confidence, overcome difficulties, and do solid work to achieve new successes in our reform and opening up and the modernization drive with a spirit of progressing with the times to build a better future," he concluded.

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Premier Zhu Reports Government Work (I)

Premier Zhu Reports Government Work (II)

Premier Zhu Reports on Government Work (III)

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