Summary of Zeng Peiyan's Report on Social, Economic Development Plan

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Last updated at: (Beijing Time) Friday, March 08, 2002

Summary of Zeng Peiyan's Report on Social, Economic Development Plan

Zeng Peiyan, minister in charge of the State Development Planning Commission, Wednesday delivered a Report on the Implementation of the 2001 Plan for National Economic and Social Development and on the Draft 2002 Plan for National Economic and Social Development at the Great Hall of the People.

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China Maintains Steady, Rapid Economic Growth in 2001

The national economy continued to grow rapidly with good performance and low inflation with the GDP hitting 9.5933 trillion yuan in 2001, an increase of 7.3 percent over the previous year, Zeng Peiyan, minister in charge of the State Development Planning Commission, said.

Fixed-asset investment in the country totaled 3.6898 trillion yuan, up by 12.1 percent. Market prices were stable and the consumer price level rose by 0.7 percent. Imports and exports totaled 509.8 billion U.S. dollars, an increase of 7.5 percent, according to Zeng.

Government revenue grew rapidly. The financial deficit was kept below the budgeted figure. The financial situation remained stable. The net amount of cash put into circulation amounted to 103.6 billion yuan. The balance of international payments was satisfactory and China's foreign reserves totaled 212.2 billion U.S. dollars at the end of 2001. The registered unemployment rate in cities and towns was 3.6 percent. The natural population growth rate was held at 0.695 percent.

The successful convocation of the Ninth APEC Economic Leaders Meeting and other major international conferences in China, the country's accession to the World Trade Organization and Beijing's successful bid to host the 2008 Olympic Games are all indicators that China has further raised its international position and expanded its influence in international affairs.

In general, targets set in the 2001 plan for national economic and social development were basically met, and implementation of the Tenth Five-Year Plan got off to a good start, Zeng Peiyan said.(More Details)

Major Economic, Social Targets in 2002

Economic growth rate in China for 2002 will be set at around seven percent, Zeng Peiyan said.

Other major targets for national economic and social development in 2002 are as follows:

- Increase in total fixed-asset investment around 10 percent.

- Rise in the consumer price level of one to two percent.

- Strive for an increase in total import and export volume.

- Central budget deficit under 309.8 billion yuan.

- Increase in M2, the broad money supply, and M1, the narrow money supply, of about 13 percent with total cash put into circulation not exceeding 150 billion yuan.

- Registered urban unemployment rate around 4.5 percent.

- Natural population growth rate under 0.8 percent.

Zeng revealed the targets in his Report on the Implementation of the 2001 Plan for National Economic and Social Development and on the Draft 2002 Plan for National Economic and Social Development, to the second plenary meeting of the Fifth Session of the Ninth National People's Congress (NPC).

The year 2002 is of vital significance in China's history as well as an important year for promoting the reform, opening up and the modernization drive, he said.

"We will boost domestic demand, deepen the reform, open wider to the outside world, accelerate the economic restructuring, rectify and standardize order in the market and improve the quality of economic growth and the performance of the national economy to promote its sustained, rapid and sound development and all-round social progress," the top planner said.

China to Accelerate Rural Development, Increase Farmers' Income

Agricultural and rural infrastructure development will be accelerated and everything possible will be done to create conditions for increasing rural incomes, the senior Chinese official said.

"We must strive for a four percent increase in rural incomes this year," said Zeng. The government will continue to increase investment in agricultural infrastructure, focusing on development of water- saving irrigation projects, drinking water for people and animals, roads, hydropower, marsh gas, pasture fencing and other small and medium public utilities in rural areas, Zeng said.

More investment will be made in projects to prevent floods and fight droughts and to reinforce decaying reservoirs. Experiments in transforming administrative fees into taxes in rural areas will be expanded to cover about one-third of the provinces. Moves to reduce or exempt agricultural fees and taxes in disaster areas will continue.

Development of bases for special farm products will be combined with vigorous efforts to develop special high-quality and pollution-free products, rationalize regional distribution of agriculture and protect farmland. Measures in compliance with WTO rules will be adopted to rectify and improve the state system for supporting and protecting agriculture, direct more investment to agricultural science and technology and rapidly develop ways to help agricultural producers, according to Zeng. (More Details)

China to Issue More Treasury Bonds to Boost National Economy

Proper utilization and management of long-term treasury bonds for development will be continued to promote sustained and rapid economic growth, Zeng said.

China will continue to implement a proactive fiscal policy and a prudent monetary policy this year and issue 150 billion yuan worth of long-term treasury bonds for development.

"This is necessary to maintain sustained and steady growth of the national economy and to curb deflation," the Minister said in his Report.

Right now banks have sufficient funds, interest rates are low, market prices are stable and production capacity for major products is fairly large. Conditions are therefore still good for issuing long-term treasury bonds for development, he said.

The important thing is to correctly guide investment orientation, pay close attention to economic performance and social benefits and properly utilize and manage fund from the sale of treasury bonds.

First of all, these funds will be used this year to ensure that such projects still under construction financed by treasury bonds as reinforcement of the dikes on the middle and lower reaches of the Yangtze River, upgrading of power grids in rural areas, and development of urban infrastructure and grain depots directly under the central government are completed and put into operation as soon as possible.

Second, more investment will still be directed to the central and western regions, making sure sufficient funding is allocated for western development projects under construction and launching a number of necessary projects. These include projects to pump natural gas from the west to the east, develop the Sebei Gas Field and the Golmud Airport, transmit electricity from the west to the east from the northern route and build national trunk highways and important sections of inter-provincial highways in the western region.

Third, technological upgrading in existing enterprises will be accelerated. Construction of key projects listed in the plan will be started where appropriate. Investment in education, health, cultural undertakings, public security organs, procuratorial organs, people's courts and judicial organs will be increased. (More Details)

China to Raise Employment, Income

Employment and incomes will be increased this year to raise the consumption capacity of residents, the minister in charge of the State Development Planning Commission said.

Solving the problem of unemployment will be moved toward the top of the agenda and a variety of measures will be adopted to ensure that about 8 million more urban residents find jobs this year compared to last year, Zeng said.

To this end, China will, first of all, expand the available employment channels, provide better market access, lower requirements for access and rely more on the role of the non- public sector and small and medium enterprises to create more jobs.

Second, China will create more job opportunities. Vigorous steps will be taken to develop labor-intensive industries with comparative advantages. Development of the tertiary industry will be accelerated and more community services will be developed in urban areas.

Third, more flexible and diverse forms of employment such as part-time, temporary and "flextime" job opportunities will be encouraged.

Fourth, China will improve employment services, promote and standardize intermediary labor organizations and the labor market, improve the employment service system, provide better vocational training and help workers become better qualified for employment or reemployment.

Restrictions on rural residents working and doing business in urban areas will be relaxed. When making job assignments, the government will give the necessary consideration to disadvantaged groups with difficulty in finding employment, the top planner said. (More Details)

China to Accelerate Industrial Restructuring

China will take quicker moves to upgrade the industrial structure so as to improve the overall quality of industry, Zeng Peiyan, minister in charge of the State Development Planning Commission, said.

Strong efforts will be made to integrate information technology into the national economy and society. E-government will be introduced. Development of shared databases will be accelerated, Zeng said.

"We will continue to accelerate application of high-tech advances to production," he said, adding that this will require the organization and implementation of major special projects to apply to production such high-tech achievements as new types of electronic parts and devices, integrated circuits, software, optoelectronic devices, new materials, satellite technology and modern practices of traditional Chinese medicine.

A comprehensive set of standards will be formulated for digital TV as soon as possible. High-tech projects will be launched in key areas to develop the next generation of high-speed broadband information networks, third-generation digital mobile communication systems, new feeder aircraft, a biotechnology industry, satellite systems for direct transmission of radio and TV programs and modern agriculture. Also to be launched are key scientific research projects.

No effort will be spared to develop the domestic capacity to manufacture key equipment, Zeng Peiyan said. The capacity to design and manufacture all parts of key equipment will be strengthened by carrying out major projects and importing key technologies, while striving to make independent technological innovations. (More Details)

Further Economic Restructuring

Economic restructuring will be deepened in China this year to give added impetus to economic and social development, said Zeng Peiyan, minister in charge of the State Development Planning Commission on Wednesday.

The reform to institute a shareholding system in state-owned enterprises will be standardized. Corporate governance will be improved. Internationally competitive conglomerates and enterprise groups will be developed. Small and medium state enterprises will be let go of and enlivened in various ways, according to the official.

Corporate management will be improved and enterprises will be encouraged to make more use of information technology. Reform of the management system for monopoly industries will continue. There will be more effective guidance and careful organization so as to ensure normal production and business operations and stability of the workforce and prevent the loss of state assets.

Pricing mechanisms in the petroleum and natural gas, telecommunications, electricity and civil aviation industries will be improved. Electricity rates will be made the same for all urban and rural residents using the same power grid. The pricing mechanism for water supply and the policy for sewage treatment fees will be improved and a system will be set up to collect fees for urban garbage treatment to promote the industrial management of sewage and garbage treatment. (More Details)

China to Boost Foreign Trade, Investment

China will do a good job in foreign trade and investment so that resources and markets at home and abroad are both used effectively, said Zeng.

"China will take full advantage of the rights it enjoys as a member of the WTO while working in earnest to fulfill its commitments to the organization," Zeng said in a report to the ongoing Fifth Session of the Ninth National People's Congress (NPC).

Everything possible will be done to increase the country's volume of exports. No time should be lost in reforming and improving the system of export tax rebates. There will be tax exemptions, discounts or rebates for all exports carried out by producers on their own or through commission agents, Zeng said.

Export credit will be expanded and export credit insurance mechanisms will be improved. Policy-related financial institutions will increase their support for exports. Customs clearance procedures will be simplified to improve efficiency.

"We will continue to diversify export markets. While consolidating and expanding traditional markets, we will open emerging markets such as Russia, East Europe and Latin America," the minister said. (More Details)

China Promotes Development of Western Region

Large-scale development of China's western region and coordinated regional economic development will be vigorously promoted this year, said Zeng Peiyan, minister in charge of the State Development Planning Commission on Wednesday.

"We will continue to improve infrastructure and ecological conditions in the western region, with efforts first of all directed at developing science, technology and education, stepping up development of industries that exploit local conditions and transforming resource advantages into economic advantages," he said.

Improving the infrastructure and working and living conditions in western rural areas will be high on the agenda. To be more specific, China will strive to ensure that every county is served by asphalt roads, every township will have electricity, radio and television coverage will be extended down to every village, and that the household contract system for returning cultivated land to woodland will be implemented. (More Details)

China to Optimize Structure of Budgetary Expenditures

The structure of budgetary expenditures should be optimized to take more advantage of the role of finance in supporting economic growth, a senior Chinese official said Wednesday.

Tax collection and administration need to be improved and no effort should be spared to collect budgetary revenues. The principle of "food first, development second" will be followed in making appropriate adjustments to optimize the structure of budgetary expenditures, said Zen.

"We will strengthen expenditure management, develop the country through diligence and frugality, practice economy in everything we do and resolutely combat waste and extravagance," he said.

The sharing of income tax revenue between central and local budgets according to a fixed proportion will be carefully organized. Total budget revenue should reach 1.8015 trillion yuan and total expenditures should amount to 2.1113 trillion yuan, leaving a central budget deficit of no more than 309.8 billion yuan. (More Details)

Role of Science, Education

China will accelerate development through science, technology and education and implementation of the sustainable development strategy while energetically developing all social undertakings, Zeng Peiyan said.

Great efforts will be put into promoting scientific and technological progress and innovations. More investment will be made in the development of science and technology. "We will strengthen basic, applied and strategically important high-tech research, improve our ability to make technological innovations and successfully develop the state scientific and technological innovation system," he said.

Close attention must be paid to carrying out major projects to develop key technologies such as large-scale integrated circuits, software, functional genomes and biochips and applying them to production. The process of applying scientific and technological advances to production will be accelerated and development of a system of technical standards will be promoted.

"We will develop our own intellectual property rights for key technologies and strengthen the protection and management of intellectual property. A mechanism for risk investment will be set up and developed, so will a system for stimulating technological innovations. We will develop philosophy and other social sciences, " Zeng said.

The science and technology management system will be restructured to form a system combining departments, localities, enterprises and institutions of higher learning. Working and living conditions will be improved to attract highly qualified professionals from abroad and encourage overseas Chinese students to return home and develop their careers in China.

In developing education, China will take into consideration future changes, continuing to strengthen basic education, make compulsory education universally available and improve the overall quality of students. A new system for the management of compulsory education in rural areas with "the county at the center" will be basically set up and funds for compulsory education will be guaranteed. Education will be restructured to increase enrollment of students in regular senior secondary schools and accelerate development of the various types of personnel to meet the demands of economic and social development.

Plans have been made to enroll 2.75 million undergraduate students and 196,000 graduate students in regular institutions of higher learning in 2002. The second phase of the compulsory education project for poverty-stricken areas will be carefully implemented and the second phase of the "211" Project for higher education will be launched. Infrastructure development to cope with the increased number of students in regular senior secondary schools and renovation of primary and secondary school buildings in poor shape will be accelerated. (More Details)

China to Improve Macroeconomic Management

China will continue to improve macroeconomic management to meet the needs of developing the socialist market economy and responding to the new situation following China's accession to the WTO, said Zeng Peiyan, minister in charge of the State Development Planning Commission on Wednesday.

The basic role of the market in the allocation of resources should be fully exploited. The law governing economic development should be followed. International practice will be taken into consideration. The way government functions will be changed and the macrocontrol will be improved to create a sound environment for economic development, according to Zeng.

-- Speeding up efforts to develop the legal system. Legislative plans of the National People's Congress will be conscientiously implemented in drafting laws. China will formulate or revise related administrative statutes, rules and regulations to rectify and standardize market order.

-- Improving the means for exerting macroeconomic regulation. The government should place the need to improve macro-regulation, market supervision and administration, law enforcement and public services on its agenda.

-- Drastically reducing the number of matters subject to administrative examination and approval. Macrocontrol departments need to step up the change in the way they function.

-- Balancing total supply and demand in response to market changes. Greater use of economic means is required in order to more effectively regulate total demand and supply to maintain a proper balance.

-- Rectifying and standardizing order in the market. Efforts to manage and rectify the markets for medicines, foodstuffs, petroleum products, dangerous chemicals and other major goods will be strengthened. Restrictions and barriers to trans-regional marketing and investment will be eliminated and banned.

By People's Daily Online

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