The Chinese Government is set to deepen economic reform in the year 2000, targeting the revival of state-owned enterprises (SOEs) and pledging to continue the pro- active fiscal policies, according to the Central Economic Working Conference which concluded in Beijing on November 17.

The conference, held on November 15-17, expressed confidence in achieving the economic growth target set at the beginning of this year.

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

President Jiang Zemin made an important speech at the three-day conference, analyzing the international and domestic political and economic situation and the central government's work since the beginning of this year, and put forward guidelines and major tasks for next year's economic work. Premier Zhu Rongji expounded on the implementation of major tasks for economic work next year.

The conference has designed a number of guiding principles and general requirements for China's economic work in the coming year.

The conference said that at the direction of Deng Xiaoping Theory and the basic lines of the Communist Party of China (CPC), the country should earnestly carry out the guidelines of the 15th CPC National Congress and the 3rd and 4th plenary sessions of the 15th CPC Central Committee, continue to implement the series of policy measures designed by the CPC Central Committee for promoting reform and development, with emphasis on the reform and development of SOEs, economic restructuring, scientific and technological advancement, and the expansion of domestic demand.

Efforts should be made to further stabilize agriculture as the foundation of the national economy, readjust agricultural and rural economic structures, and try every means to increase farmers ' income, according to the conference.

It stressed that the reform of SOEs should be put at the core of economic work in an attempt to turn losses into profits and actively promote the establishment of a modern corporate system.

China will continue to implement pro-active fiscal policies, give further play to the role of monetary policies, and use taxation, pricing and other macroeconomic control measures in a comprehensive way to reinforce infrastructure construction, technological upgrading, scientific and technological innovation, and make efforts to expand consumption, the conference said.

Efforts should also be made to further open to the outside world, actively increase exports and imports, and improve the level of the use of overseas investment, it said.

The conference pointed out that the social security system should be improved, and attention paid to reinforcing poverty relief work and further improving people's lives.

The relationship between reform, development and stability should be correctly handled, it stressed, so as to ensure a sustained, fast and healthy development of the national economy, promote overall social advancement, and meet the new century with outstanding achievements.

The conference said that the government's economic policies have been sound and effective in 1999, citing as proof good harvests, rapid industrial growth, the rebound of exports, and a stable society.

However, the economy still suffers from insufficient domestic demand, high employment pressure, the slow rise of farmers' income, and an unreasonable economic structure.

To deal with these problems, the conference set five top tasks for next year.

First, the conference pointed out that development is the key both for solving current economic difficulties and for long-term development in the next century. Next year China will continue to carry out pro-active fiscal policies by issuing additional treasury bonds for financing construction.

The role of monetary policies will be further exploited, and the money supply will be appropriately increased in a bid to give greater financial support to economic growth.

The conference warned that attention also should be paid to minimizing financial risks, strengthening monetary and credit administration, and safeguarding financial security.

It also pointed out that increased consumption can have a great impact on economic growth, so efforts should be made to spur urban and rural consumption and open more channels for consumption, the key to which is increasing the sales of residential housing, education, and several other sectors.

Second, the government will take economic restructuring as the focal point of its work for next year, and longer.

In adjusting industrial structures, China will consolidate the primary industry, enhance the secondary industry, and expand tertiary industry.

Development of western China will receive strategic priority as the government channels more funds, technology and talent to the region. Key measures for this include infrastructure development, afforestation, and the advance of science, technology and education. Large areas of cultivated land in the region will be turned back to forests, step by step, while crop mixtures will be overhauled.

The government will also continue to promote the development of towns and townships in rural areas.

Third, the government will try to accelerate scientific and technological advancement and improve the country's ability to innovate. It will continue to increase investment in research and development and push for the establishment of a venture investment system.

Fourth, as the top priority, the government will strive to reach the target of a three-year drive to reform state-owned enterprises (SOEs).

Fifth, the government will continue to improve the people's living standards by raising the income of urban and rural residents, especially low-income people. It will try every possible means to improve the income of farmers and provide care for low-income urban residents by establishing and perfecting the social security system.

The conference emphasized that the top priority is to meet the three-year target for SOE reform and the development of the state' s economic work next year.

It is also necessary to handle the relationship between improving enterprises' external conditions and transforming their managerial mechanism.

The conference noted that the country has taken many measures to relieve the debt burden on state-owned enterprises, streamlining and laying off surplus personnel, and separating social functions from the enterprises' main business, all of which will be continued in the coming year.

As far as the enterprises are concerned, priority should be given to establishing a modern corporate system and setting up managerial mechanisms adaptable to the market economy, the conference said.

The conference urged various localities and enterprises to correctly handle the relationship between the long-term goal and the phased targets for SOE reform and development, which will be a long task.

The conference stressed the importance of meeting the three- year target set by the Central Government for SOE reform and development, which is a key economic task.

While focusing on SOE reform and development in the coming year, reform moves also should be carried out in the sectors of finance, circulation, science and technology, education, housing, and social insurance.

The conference stressed the importance of speeding up scientific and technological progress and enhancing technical renovation.

It urged various enterprises to track, introduce and assimilate the latest scientific and technological results worldwide, and make strides in developing and renovating their own technologies.

The conference called for further reform of scientific and technological systems and the establishment of a mechanism combining the latest scientific results with production. (Xinhua)