Full Text: Report on China's Economic and Social Development Plan
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III. Major Tasks and Measures for Economic and Social Development in 2010
An analysis of domestic and international development environments and conditions shows that we face arduous tasks in promoting reform and development and maintaining stability this year. To achieve the major objectives for economic and social development, we need to integrate efforts to maintain steady and rapid economic development with those to adjust the economic structure, and genuinely make development more sustainable. We need to integrate efforts to boost domestic demand, especially consumer demand, with those to maintain the level of external demand, and strive to make economic development more balanced. We need to integrate efforts to balance development between urban and rural areas and among regions with those to promote urbanization, and do all we can to create more room for development. We need to integrate efforts to promote independent innovation with those to foster emerging industries of strategic importance, and strive to achieve innovation-driven development. We need to integrate efforts to deepen reform with those to promote development, and comprehensively increase the inherent driving force of economic development. Moreover, we need to integrate efforts to develop the economy with those to improve people's wellbeing, and further balance economic and social development.
1. We will further improve macro-control and strive to maintain steady and rapid economic development. We need to maintain continuity and consistency in macroeconomic policies and implement them with the appropriate intensity, pace and focus.
1) We will continue to follow a proactive fiscal policy. We will keep the deficit and government bonds at appropriate levels. We propose setting the country's deficit at 1.05 trillion yuan this year, accounting for less than 3% of GDP, roughly the same as last year. Of this sum, 850 billion yuan will be incurred by the central government deficit, and 200 billion yuan will be incurred through local government bonds to be issued by the Ministry of Finance and listed in local government budgets. We will continue to implement the policy on structural tax reduction. We will further optimize the structure of government expenditures, and give more support to key areas and weak links in accordance with the principle of stressing key areas and guaranteeing some expenditures while reducing others. We will be thrifty in everything we do, continue to strictly control regular expenditures, and strive to lower administrative costs.
2) We will continue to implement a moderately easy monetary policy. We will appropriately increase the supply of money and credit and use a combination of various monetary policy tools to improve liquidity management in order to ensure rational and sufficient liquidity in the banking sector. The broad money supply (M2) will be increased by about 17%, and the scale of RMB loans will increase by approximately 7.5 trillion yuan this year. We will work hard to improve the credit structure. We will increase credit support for weak links in economic and social development, employment, emerging industries of strategic importance, and industrial relocation; effectively alleviate the financing difficulties facing agriculture and small businesses; ensure the credit demands of key development projects are satisfied; and strictly control lending to industries that are energy-intensive, highly polluting or have excess production capacity. We will continue to expand direct financing, improve the multilevel system for capital markets, expand the scale of corporate financing through bond issues, and optimize the financing structure.
3) We need to guard against fiscal and financial risks. We will improve supervision of local government debts, standardize the fund raising platform of local governments and rectify their practices of guaranteeing payment. We will strictly enforce the qualifications for granting loans, strengthen prudent management, and fend off systemic financial risks. We will effectively control the pace by which the credit supply changes and prevent abnormal monthly and quarterly fluctuations. We will further improve the renminbi exchange rate regime, and keep the renminbi exchange rate basically stable at an appropriate and balanced level.
We will continue to stimulate consumer demand. Total retail sales of consumer goods will grow by 15%.
1) We will adjust the pattern of national income distribution at a faster pace. A plan to adjust the pattern of national income distribution and relevant policies and measures will be formulated soon. We will continue to increase rural incomes through various channels, raise the basic old-age pensions for enterprise retirees and the benefits for some entitled groups, and implement the policy of applying a performance-based salary system in schools providing compulsory education, and in public health institutions and community-based medical and health care institutions. We will gradually raise minimum wage rates.
2) We will improve policies and measures to stimulate consumption. We will work harder to promote rural residents' purchase of home appliances and motor vehicles (including motorcycles); extend the implementation of the program for trading in old home appliances and the policy to subsidize rural residents' purchase of motor vehicles to the end of this year; and expand trials of home appliance trade-in program to more areas.
3) We will promote rational housing consumption. We will increase the land supply for developing public rental housing as well as small and medium-sized apartment housing to be sold at low and medium price levels; support the purchase of first or second homes, in the latter case, when the first home's per capita floor area is smaller than an established average; advocate renting over buying in housing consumption; continue to implement differentiated housing credit and tax policies; and rein in speculative housing purchases, all done in order to meet people's basic demand for housing. We will continue to rectify and standardize the real estate market; more severely punish those who hoard land without the intention to build housing, withhold completed housing from the market, and collude to drive up housing prices; and curb the overheating of housing prices presently affecting some cities.
4) We will promote the consumption of services. We will vigorously develop the cultural & creative industry, film and television production, publishing, theatrical performances and entertainment, conventions and exhibitions, animation and other cultural industries. We will also accelerate development of broadband networks; support businesses concerning the integration of telecommunications networks, cable TV networks and the Internet; and stimulate consumption of services in culture, tourism, sports, fitness, education, training, and elderly care.
5) We will improve the consumption climate. We will expand consumer credit; strengthen development of infrastructure such as networks for distributing goods; and intensely press ahead with the project to get retailers to open stores in more townships and villages. We will vigorously rectify and standardize market prices, and further tighten oversight and management over the quality and safety of products, especially food and drugs.
We will maintain a rational scale of investment and improve the investment structure. Total investment in fixed assets across the country will increase by 20%, with a 21% growth in investment in construction and renovation and an 18% rise in investment in real estate development.
1) We will effectively develop government-financed projects. Implementation of the plan to invest an additional 4 trillion yuan will continue. In line with the requirement that the central government shall increase investment by a total of 1.18 trillion yuan over the two-year period of 2009-2010, added to the 572.2 billion yuan of investment we have planned to increase in 2010, central government investment this year will equal 992.7 billion yuan, including 392.6 billion yuan of investment in capital construction. While making investment plans, we will continue to give higher priority to agriculture, rural areas, farmers, low-income housing, health, education and other aspects related to people's wellbeing; and to the central and western regions, old revolutionary areas, ethnic minority areas, border areas, and poor areas. These plans will also continue to support energy conservation, environmental protection, independent innovation and technological upgrading. We will use these funds mainly on projects that are under construction or near completion, strictly control the number of new projects, and ensure projects are not stopped midway.
2) We will actively encourage investment from non-government sources. We will promptly introduce and implement policies and measures to encourage and guide sound development of non-government investment, open up more areas to non-government capital sources, further eliminate barriers to non-government investment, and support non-government investment in weak links of economic and social development such as public utilities and social programs.
3) We will strengthen and improve investment management. We will establish a sound mechanism for departments to coordinate their actions and controls and share information, and study how to better manage investment projects in the areas of land use, environmental impact assessment, energy conservation, credit availability and industrial policy. We will control the proportion of bank loans used to launch new projects. We will strictly control the launching of new projects in industries that are energy-intensive, highly polluting or have excess production capacity, as well as unnecessary and inappropriate vanity projects. We will move faster to develop a legislative framework for investment management. We will tighten oversight, inspection and auditing of government-financed projects and seriously investigate and prosecute violators of regulations to ensure the safety of funds and project quality.
We need to ensure adequate market supplies and steady prices for grain, edible oil and other important commodities. We will improve regulation of the markets for major agricultural products, flexibly control the intensity and pace of adjusting their reserves and import and export volumes, and do a good job of purchasing, marketing, allocating and transporting important commodities such as grain and edible oil in order to ensure their abundant supplies in the market. We will improve monitoring, early warning and situation analysis of prices, prepare sound contingency plans, standardize pricing, correctly guide public opinion, stabilize market expectations, and keep overall price levels basically stable.
We need to regulate economic activities well. We will improve dynamic monitoring and comprehensive analysis, and ensure that adequate supplies reach key areas at crucial times in light of a tight balance between supply and demand for coal, electricity, petroleum, gas and transport services and the occurrence of shortages in some areas. We will link coal production and transportation more closely with demand, make overall planning for balancing supply and demand for electricity, properly arrange electricity transmission across regional and provincial borders, improve demand-side management of electricity, balance supply and demand for refined petroleum products and natural gas and ensure their steady supplies, and guarantee transportation of key materials. We will replenish reserves of goods and materials for possible emergencies, improve contingency mechanisms, and strengthen our ability to respond to emergencies.
2. We will accelerate industrial optimization and upgrading and the development of emerging industries of strategic importance and promote structural adjustment and change in the development pattern.
1) We will enhance the country's capacity for independent innovation. We will continue to implement the Outline of the National Program for Long and Medium-Term Scientific and Technological Development. We will energetically carry out key national science and technology programs such as those to build a new generation broadband mobile communications network and develop important new medicines. We will increase support for and investment in R&D and further implement policies and measures for encouraging independent innovation. We will speed up the implementation of major projects for integrated circuits, flat-panel displays, new regional aircraft, and nuclear power stations. We will intensify the development of major science and technology infrastructure facilities, advance the Knowledge Innovation Program and the Technology Innovation Program, establish a number of new national engineering or technology research centers and national engineering laboratories in the areas of digital television, new energy sources, new materials and e-commerce, accelerate development of leading enterprises that can demonstrate and lead independent innovation, and help establish a number of strategic alliances for technology innovation. We will continue to support basic research and research in cutting-edge technologies, accelerate development of agricultural and other technologies that are closely related to people's wellbeing, and concentrate on making breakthroughs in core technologies. We will expand the trials to develop national innovative cities, and implement projects to improve the capacity for innovation of individual regions. We will improve our policies on protecting intellectual property rights.
2) We will nurture and develop emerging industries of strategic importance. We will move faster to work out the general philosophy, major policies and measures, and development plans for such industries. We will focus our efforts on developing key technologies where we are more likely to make breakthroughs and on promoting their wide application in industries, including new energy sources, energy conservation and environmental protection, new materials, biomedicine, biotechnological breeding, information technology, new energy vehicles, aviation and aerospace, and marine technology. We will draw up technology roadmaps and market promotion measures and launch a number of major projects for these technologies. We will effectively carry out the R&D income tax credit policy, improve the investment and financing mechanisms that support innovation, promptly implement the venture capital plan for emerging industries, help establish venture capital guidance funds for high-tech industries, and raise funds through a variety of channels, such as loans, bonds, stocks and venture capital. We will accelerate R&D in and application of the Internet of Things.
3) We will continue to promote the restructuring and revitalization of key industries. We will conscientiously implement the plan for restructuring and revitalizing industries and enforce detailed rules for its implementation. We will revise and apply the Guiding Catalog for Industrial Restructuring and related policies. We will carry out R&D and demonstration projects for industrial technology applications in shipbuilding, petrochemicals, nonferrous metals, environmental protection, new energy sources, energy conservation, and emissions reduction. Centering on energy conservation, consumption reduction and development of a circular economy, we will step up efforts to utilize new and high technologies to transform and upgrade traditional industries and promote greater IT application in enterprises. We will support independent development of key technologies and equipment, encourage use of key equipment that is newly developed and manufactured domestically, and promote domestic production of key equipment. We will intensify geological prospecting and improve China's ability to supply needed energy and resources domestically. We will actively adjust the energy structure and promote sustained and sound development of the energy industry. The output of raw coal, crude oil and natural gas in 2010 will reach 3.15 billion tons, 190 million tons and 92 billion cubic meters respectively, up of 3.3%, 0.5% and 8% from last year. Electricity to be generated in 2010 will reach 3.96 trillion kilowatt-hours, up 6.6%, of which hydraulic power will contribute 660 billion kilowatt-hours, up 7.2%, and nuclear power, 75 billion kilowatt-hours, up 7.1%. We will vigorously carry out wind power projects and develop supporting facilities. We will accelerate mergers and reorganizations of key industries and promote their rational distribution and intensive development.
4) We will reduce and channel excess production capacity and shut down backward production facilities at a faster pace. We will adopt a combination of legal, economic and necessary administrative means by tightening market access, setting up a mechanism for eliminating backward production facilities, and improving the market information release system, to guide sound development of industries. This year, we will shut down backward production facilities in thermal power plants with a total capacity of 10 million kilowatts, steel mills with a total capacity of 6 million tons, iron foundries with a total capacity of 25 million tons, cement plants with a total capacity of 50 million tons, paper mills with a total capacity of 530,000 tons, and plate glass plants with a total production capacity of 6 million weight cases.
5) We will speed up development of the service sector. The value-added of tertiary industry will reach 16.15 trillion yuan, an increase of 8.7%, and the service sector will constitute 34.8% of the country's employment, up 0.8 percentage points from last year. We will continue to relax controls over market access and improve and implement investment, tax, land-use and pricing policies to encourage development of the service sector. We will promptly formulate guidelines for promoting development of high-tech services. The total output of telecommunications services will grow by 18% in 2010. We will introduce policies and measures for promoting modern logistics, and support the development of key modern logistics projects. We will improve the infrastructure of major tourist attractions, promote ecological tourism, cultural tourism, and leisure and holiday tourism, and carry out the project to turn Hainan into an international tourist island. We will develop community, domestic and old-age services as well as public utilities to meet people's diversified, multilevel demands. Nationwide, the number of urban community service facilities will reach 180,000 by the end of this year, up 2.9%. We will carry out trials of comprehensive reforms in the service sector and promote development of demonstration areas for fostering the concentration of service industries. We will successfully host the Shanghai World Expo.
6) We will develop major transportation routes and key transportation hubs and improve overall transportation efficiency. We will promote development of passenger rail lines, coal transportation routes, trunk rail lines in the western region, inter-city express railways and urban rail transit facilities in an orderly manner. We will improve the national expressway network and raise the technical grades and service levels of national and provincial trunk highways. With the focus on specialized docks, modern ports, and inbound/outbound deepwater navigation channels, we will promote construction of coastal ports in an orderly manner, and develop inland water transport systems, including those along the Yangtze River. We will promote renovation and expansion of hub airports and major airports and development of regional airports. China's total length of railways and highways opened to traffic will reach 91,000 kilometers and 3.927 million kilometers in 2010, up 5.8% and 2.6% respectively. The number of airports opened to air traffic will increase by 8 to reach 174.
7) We will actively support development of small and medium-sized enterprises, especially small ones. We will accelerate the development of a public service platform and an information service network to support small and medium-sized enterprises as well as bases for creating small businesses. We will implement preferential financial and tax policies for promoting development of small enterprises; increase the amount of funds earmarked for small and medium-sized enterprises from the central government budget; encourage local governments to set up risk compensation funds for loans to small enterprises, and develop for them a multilevel system of credit guarantees.
3. We will work harder to balance urban and rural development and consolidate the foundation for developing agriculture and the rural economy and increasing rural incomes.
1) We will work hard to ensure production of major agricultural products. We will continue to strictly protect farmland, intensify its development, especially primary farmland, keep the total grain acreage stable, optimize the structure of crop varieties, increase the yield per unit of area and, improve grain quality. In 2010, we will strive to keep the country's grain output stable at 500 million tons, and the output of cotton, oilseed and sugar crops will reach 6.7 million tons, 31.5 million tons and 125 million tons, up 4.7%, 1.6% and 2.5% respectively. We will fully implement the plan to increase China's grain production capacity by 50 million tons, intensify the development of cotton, oilseed and sugar crop production bases, raise the level of agricultural mechanization, and develop drought-resistant agriculture, protected agriculture and conservation tillage in light of local conditions. We will improve 1.653 million hectares of low- and medium-yield farmland, a year-on-year increase of 1.6%. We will improve the policies of subsidies and rewards for agricultural production and stabilize the production of staple agricultural products. We will continue to develop the system for cultivating superior varieties and breeds, the system for preventing and controlling animal and plant epidemics, the system for disseminating agricultural technology at county and township levels, and the system for quality and safety inspection and testing of agricultural products. We will carry forward the national projects to demonstrate modern agriculture and to develop modern agricultural production, and support the development of large-scale, standardized hog and cow farms. The output of meat and aquatic products will reach 78 million tons and 52 million tons in 2010, up 2.1% and 1.6% respectively. We will support efforts to upgrade and renovate storage and distribution facilities for staple agricultural products and major wholesale markets for agricultural products and develop cold chain logistics for agricultural products.
2) We will work hard to bring about a steady increase in rural incomes. We will raise minimum grain purchase prices, and the average floor prices for the purchase of wheat and rice will rise by 3 yuan and 6 yuan (10 yuan for un-husked japonica rice) per 50 kilograms, respectively. We will improve the mechanism for purchasing and stockpiling important agricultural products. We will raise the subsidies for purchasing superior crop varieties, increase the amount and types of subsidies for purchasing agricultural machinery and tools, and implement a dynamic mechanism to adjust general subsidies for agricultural supplies. We will vigorously develop the system under which various sectors of society provide services for agriculture and rural areas, improve the organization of agricultural production and operations, and help leading enterprises improve their roles of serving as shining examples and stimulating development. We will energetically develop secondary and tertiary industries in rural areas and strengthen county economies. We will step up job training for rural residents seeking non-agricultural employment, improve the environment for rural migrant workers to find jobs or start their own businesses, and do our utmost to help rural residents seek employment in a variety of non-agricultural sectors. We will strive to ensure more than 6 million rural residents receive training for non-farm jobs this year.
3) We will make steady progress in building a new countryside. We will continue to improve working and living conditions in rural areas. The central government will increase capital construction investment in projects to improve the wellbeing of rural people, such as the construction of water supplies, power grids, roads, methane facilities and housing. A total of 20 billion yuan will be allocated to provide safe drinking water to another 60 million rural residents and ensure 71.5% of the rural population will gain access to tap water this year. Twelve billion yuan will be used to upgrade rural power grids. Three billion yuan will be spent on renovating rural roads. A total of 5.2 billion yuan will be earmarked to accelerate the development of household methane generators, large and medium-sized methane facilities and central methane stations in rural areas. We will continue to improve rural infrastructure. We will accelerate the progress of the projects to build auxiliary facilities and upgrade water-saving devices in large and medium-sized irrigated areas and complete the task to reinforce a total of 6,240 large and medium-sized reservoirs and dilapidated key small reservoirs as scheduled. We will strengthen fishery administration and improve fishing harbors. We will carry out the project to build a clean rural environment. We will vigorously press ahead with comprehensive rural land development. We will improve our ability to provide public services in rural areas, including education and training, medical and health care, and cultural services, and speed up efforts to promote wide IT application and universal communications services in the countryside.
4) We will actively promote urbanization. We will accelerate the development of small and medium-sized cities and small towns, improve urban public utilities such as gas, heat and water, and increase the overall carrying capacity of cities. We will relax requirements for household registration in towns and small and medium-sized cities. Where conditions permit, cities will be encouraged to grant urban household registration to rural migrant workers holding a steady job with a steady income in the city, and to their children as well, and incorporate them into the urban public service system. We will improve the employment, housing, medical care and other basic living conditions for rural migrant workers and ensure their children receive a school education.
4. We will earnestly implement all plans and policies for promoting regional development and make development among regions more balanced.
1) We will intensely promote the large-scale development of the western region. We will promptly formulate guidelines for thoroughly carrying out the strategy for large-scale development of the western region (2010-2019) and introduce plans for implementing them in a timely manner. We will continue to launch a number of key projects to develop infrastructure and improve people's wellbeing, build upon progress in returning farmland to forests, improve the policies for returning grazing land to grasslands, establish sound mechanisms to compensate for ecological damage and resource depletion, and carry out demonstration projects for ecological conservation. We will promptly formulate development plans for the Chengdu-Chongqing Economic Zone and other areas. We will promote the development of experimental zones for developing and opening up major border cities and towns.
2) We will comprehensively revitalize northeast China and other old industrial bases. We will support mergers, reorganizations, technological upgrading and independent innovation in key enterprises and industries. We will foster and expand industries that can take advantage of local strengths, further promote sustainable development of resource-dependant cities, accelerate development of modern agriculture, and vigorously develop modern service industries such as tourism and logistics. We will energetically press ahead with development of the coastal economic belt in Liaoning Province and the Changchun-Jilin-Tumen development and opening up priority zone. We will formulate plans to protect the ecology of the forests in the Greater and Lesser Hinggan Mountains and transform their local economies.
3) We will effectively boost development of the central region. We will conscientiously implement the plan for energizing development of the region, formulate specific policies and measures to support its development, and draw up plans focusing on development of three different types of production bases and a system of integrated transportation hubs. We will speed up the formulation of development plans for specific areas, such as those to promote economic and social development in the Danjiangkou Reservoir area and its upper reaches. We will introduce and implement guidelines for encouraging industries to relocate to the central and western regions.
4) We will energetically support the eastern region in taking the lead in development. We will effectively implement existing development plans, policies and measures for key areas, including the Pearl River Delta area, and quickly formulate and implement development plans for the Yangtze Delta area, the Beijing-Tianjin-Hebei area and the economic zone in Fujian Province on the west coast of the Taiwan Straits. We will work on the guidelines for promoting development of the marine economy. We will energetically encourage the eastern region to make innovations in systems and mechanisms, and optimize and upgrade industries so that it can participate in international competition and cooperation in all areas.
5) We will increase regional cooperation. We will strengthen overall planning and coordination in areas such as development planning, industrial distribution, infrastructure development, ecological improvement, environmental protection and public services, in order to promote both division of labor and cooperation between regions so that they complement each other better. We will intensify efforts to support development of the old revolutionary areas, ethnic minority areas, border areas and poor areas, and increase government spending and improve basic public services there. We will increase support to ethnic groups with small populations. We will continue to implement the program to develop border areas and improve people's lives there. We will work hard to ensure the eastern and central regions provide assistance to designated areas with financial difficulties in the western region. We will accelerate development of the development priority zones.
5. We will work hard to conserve energy, reduce emissions and counter climate change, and quickly build a resource-conserving and environmentally friendly society.
1) We will tighten accountability for meeting targets and intensify oversight and inspection. We will continue to enforce an accountability system for energy conservation and emissions reduction, and initiate performance evaluations to test whether local governments and key enterprises are achieving their targets. We will increase supervision and inspection of energy conservation and emissions reduction efforts to ensure all facilities installed for these purposes are functioning effectively. We will carry out extensive publicity activities, such as the campaign to get everyone to save energy and reduce emissions.
2) We will improve relevant policies and standards. We will promptly introduce measures for assessing and examining energy savings in fixed-asset investment projects. We will formulate or revise a number of mandatory energy efficiency standards for the end-use of energy-consuming products, limits on energy consumption per unit of production, and technical standards for products that must be recycled by manufacturers. We will improve the systems for state certification and government procurement of energy-efficient products. We will speed up efforts to promote energy performance contracting. We will make sure that enterprises enjoy income tax credits for producing products that are designed to save energy and water and protect the environment, and likewise reward them for carrying out technological upgrading projects that contribute to energy conservation and environment protection. We will also make sure that power plants equipped with desulphurization devices charge a premium rate for electricity. We will improve economic policies to encourage the recovery of by-product heat and pressure to generate electricity, which in turn will be supplied to the power grid.
3) We will accelerate the development of key projects. We will continue work on the ten major energy conservation projects, with an additional energy savings equivalent to 80 million tons of standard coal. We will intensify efforts on major projects such as those to treat urban sewage and garbage, install desulphurization devices in coal-fired power plants and sintering machines in steel mills, and comprehensively address the problem of tailings. The daily urban sewage treatment and garbage disposal capacities will increase by 15 million cubic meters and 60,000 tons respectively in 2010, and this will ensure 75% of urban sewage is treated and 71% of urban garbage is safely handled, up 2.7 and 2 percentage points from last year respectively. We will implement the plan to comprehensively tackle heavy metal pollution.
4) We will improve energy conservation in buildings. We will tighten oversight and supervision to ensure new buildings comply with energy conservation standards, and introduce energy efficiency labeling and publicize energy saving information in non-industrial buildings. We will intensify efforts to install heat meters and temperature regulators in existing residential buildings and make them more energy-efficient in the northern heat-supply areas. We will improve supervision of energy conservation in the office buildings of state agencies and large public buildings.
5) We will comprehensively implement the project to promote energy-efficient products for the benefit of the people. In addition to subsidizing the purchase of high efficiency air-conditioners, we will formulate detailed rules to subsidize purchases of energy-efficient refrigerators, washing machines, flat-screen televisions, gas water heaters and electric motors to encourage their widespread use. A total of 150 million energy-efficient light bulbs will also be distributed, particularly in rural areas.
6) We will vigorously develop a circular economy. We will expand pilot projects that demonstrate the circular economy model, improve the circular economy index system, and set up a fund devoted to developing a circular economy. We will launch demonstration projects, such as the one on the recovery of mineral resources from waste in cities, formulate guidelines for developing the remanufacturing industry, vigorously encourage the recovery of resources from construction waste and kitchen waste, and comprehensively utilize straw as biomass energy. Water consumption per 10,000 yuan of value-added of industry will equal 114 cubic meters, a 2.1% decrease, and the rate of comprehensive utilization of industrial solid waste will rise by 1.8 percentage points to reach 68.4% in 2010.
7) We will strengthen ecological improvement and environmental protection. We will carry forward projects to bring the sources of dust storms affecting Beijing and Tianjin under control, protect virgin forests, and develop shelterbelts for key areas. We will intensify pollution prevention and control in the key areas and key water basins of the Huai, Hai and Liao rivers, the Tai, Chao and Dianchi lakes, the Bohai Sea, the Three Gorges Reservoir area, and the sources and routes of the South-to-North Water Diversion Project. We will move quickly to comprehensively clean up the environment on the Loess Plateau and protect and develop the ecological shields in Tibet. We will accelerate implementation of the plans for comprehensive ecological improvement, such as those to protect the sources of the Yangtze, Yellow and Lancang rivers, restore the ecosystem of the Shiyang River, and control the spread of stony deserts. Soil erosion on 21,600 square kilometers of land will be brought under control in 2010, up 1.4%. We will comprehensively improve the rural environment.
8) We will actively respond to climate change. We will formulate and implement policies and measures to meet our action targets for limits on greenhouse gas emissions by 2020. We will continue to implement China's National Climate Change Program. We will improve our capacity to respond to climate change and increase related publicity and education activities. We will accelerate the process of making our country green by planting trees and increase the capacity of forests to capture carbon emissions. An additional 5.92 million hectares of land will be covered with trees this year. We will improve our work concerning Clean Development Mechanism projects. We will continue to promote international talks on countering climate change, and strengthen international exchanges and cooperation.
6. We will accelerate reforms in key areas and crucial links and increase the impetus and vitality of economic and social development.
1) We will further deepen the reform of pharmaceutical and health care systems. We will further expand the coverage of basic medical insurance, accelerate development of the national system for basic drugs, implement major public health projects and projects for basic public health services, improve our capacity for medical relief in response to public health emergencies, carry out pilot projects for the reform of public hospitals, and accelerate the reform of pricing mechanisms for medical care and drugs. The national system for basic drugs will cover 60% of government-financed, community-level medical and health care institutions this year.
2) We will make steady progress in reforming resource product prices and environmental protection charges. We will continue to implement pilot projects for public bidding among power plants for the right to supply electricity to power grids and for direct trade between large electricity users and power plants. We will implement a progressive electricity pricing system for households and improve the pricing and subsidizing mechanisms for electricity generated from renewable sources. We will continue the reform of water prices and expand the collection of sewage treatment fees. We will reform the way in which garbage disposal fees are collected. We will press ahead with emissions cap and trade trials.
3) We will deepen SOE reforms. We will press ahead with the strategic readjustment and reorganization of the public sector; accelerate reforms to institute a corporate system or a stockholding system in large SOEs, particularly parent corporations of central government enterprises; make progress in setting up standardized boards of directors in central SOEs; and improve corporate governance and the system of executive pay and bonuses. We will continue to implement the reform of monopoly industries, relax controls over market access, and actively introduce a competitive system.
4) We will unswervingly encourage, support and guide the development of the non-public sector. We will increase support for this sector via financial, fiscal and tax policies; provide it with equal treatment in policies on public biddings and government procurement; modify discriminative laws, regulations and policies against it related to financing, foreign exchange control and land use; and foster a market environment conducive to fair competition among economic entities under all types of ownership.
5) We will improve systems and mechanisms that benefit agricultural and rural development. We will stabilize and improve the basic system for rural operations and carry out the reform of the rural land management system in an orderly manner. We will deepen the reform of tenure in collective forests and begin reforming tenure in state-owned forests. We will carry out reform in the contracting of pastureland and restructure state farms built on reclaimed land.
6) We will accelerate the reform of fiscal and tax systems. We will establish a sound public finance system in which the financial resources of governments are in line with their respective responsibilities. We will improve the transfer payment system and enhance local governments' capacity to provide basic public services. We will improve the systems of sales tax and real estate tax. We will accelerate the reform of resource taxes. We will extend the urban construction and maintenance taxes and education surcharges to foreign enterprises and nationals.
7) We will continue to promote reform of the financial system. We will standardize corporate governance in commercial banks, encourage the Import and Export Bank of China and the Agricultural Development Bank of China to deepen internal reforms, continue to reform rural credit cooperatives, accelerate the development of small financial institutions to serve rural areas and small and medium-sized enterprises, and expand the trials of small and medium-sized enterprises issuing corporate bonds. We will improve the system of financial oversight and supervision.
8) We will deepen reform of the investment system. We will improve the system for assessing completed investment projects, the public notice system for major investment projects, and the accountability system for decisions made on investment projects. We will formulate regulations for managing the contractor system for construction projects, and improve the system for managing government investment. We will promptly set up a system for managing industrial investment funds and improve the venture capital system.
7. We will pay closer attention to both domestic and international conditions in our overall planning and steadily develop an open economy.
1) We will promote steady recovery in foreign trade. We will ensure the continuity and consistency of our policies regarding external demand; implement the strategy of diversifying export markets; stabilize traditional markets while opening up new markets; adjust the mix of exports; continue to encourage the export of traditionally competitive products, products with Chinese trademarks, and technologies and standards for which we own intellectual property rights; and strictly control the export of resource products and products whose production is energy-intensive or highly polluting. We will support the import of advanced technologies and equipment, key spare parts and components, and goods and materials that are in short supply in China. We will properly handle trade frictions and vigorously promote international trade and economic cooperation. We will continue to expand our assistance to other countries.
2) We will utilize foreign capital more effectively. We will revise the Suggested List of Industries for Foreign Investment; open more areas to foreign competition; guide foreign investment toward high-end manufacturing industries, new and high-tech industries, modern services, new energy sources, and energy conservation and environmental protection industries; and encourage foreign investors to develop labor-intensive industries that conform to environmental protection standards in the central and western regions. We will vigorously pursue business in the outsourcing of international services. We will deepen reform of the management system of foreign investment, reduce the scope of examination and approval, and increase transparency of the approval process. We will strive to attract foreign direct investment of $96 billion this year. We will continue to make good use of foreign loans.
3) We will support and standardize the overseas investment and international cooperation of Chinese enterprises. We will revise the Methods for Examining and Approving Outward Investment Projects Overseas and related industrial guidance policies; strengthen and improve the guidance, coordination, supervision and services for Chinese enterprises overseas; and guide them to operate in accordance with the law. We will strive to increase our outward direct investment overseas by 15.5% this year.
8. We will strengthen social development with the focus on improving people's wellbeing and do all we can to safeguard social harmony and stability.
1) We will follow an even more vigorous employment policy. We will vigorously develop labor-intensive industries, small and medium-sized enterprises, the non-public sector and service industries; establish a mechanism for stimulating employment with public investment; and strive to create more jobs. This year, 6.3 million students will graduate from colleges and universities, and there are some who graduated in previous years but still have not found jobs, with both groups increasing pressure on employment. We need to do a good job of providing them with employment services and help them find employment at the local community level. We will increase employment assistance and support for disadvantaged groups and encourage more people to start their own businesses or find jobs for themselves. We will effectively implement our employment policies concerning rural migrant workers.
2) We will improve the social safety net. We will implement the unified nationwide methods for transferring basic old-age pension accounts for workers of urban enterprises who move from one region to another. We will expand the pilot program for a new old-age insurance system for rural residents, especially in border counties, poverty-stricken counties in ethnic minority areas, and pastoral areas. We will study and solve the problem of how to provide basic old-age pensions to retirees of collectively owned enterprises who are not covered by the basic old-age insurance system, and address other longstanding problems related to social security. We will improve the basic medical insurance system for non-working urban residents and the new type of rural cooperative medical care system, and gradually raise the levels of financing, government subsidies and benefits. We will increase support and assistance to the low-income population, improve the system of subsistence allowances for urban and rural residents, and further raise these allowances. We will quickly develop the ability to provide public services related to social security. The number of urban residents covered by basic old-age insurance and basic medical insurance will increase by 5 million and 9.4 million respectively this year. We will continue to do a good job of providing work-relief and relocating people from inhospitable areas as a poverty relief effort. An additional 760,000 people will be relocated for this purpose, and 4.1 million more rural residents will be lifted out of poverty.
3) We will give top priority to education. We will promulgate and implement the Outline of the National Long- and Medium-term Program for Education Reform and Development. We will make further progress in improving the operating conditions of schools in rural and poor areas, renovating the buildings of rural junior secondary schools in the central and western regions, and implementing the national program to ensure the safety of primary and secondary school buildings. We will improve the development of preschool education and the construction of special education schools. We will continue to implement the May 1998 Program, the third phase of the 211 Project, and the project to improve the infrastructure for secondary vocational education. We will support the development of ethnic minority colleges and universities and bilingual education in ethnic minority areas. We will increase support for the development of higher education in the central and western regions. The secondary gross enrollment ratio will reach 80%, and plans call for enrolling 6.57 million undergraduate students and 534,000 graduate students in regular institutions of higher learning in 2010, up 2.7% and 4.5% from last year respectively.
4) We will strengthen public medical and health care services. We will improve the systems for medical and health care services and family planning services at the community level; continue to renovate and build a number of county-level hospitals and health care facilities in towns, townships and urban communities; support the development of key traditional Chinese medicine hospitals; and launch a plan to set up a system to prevent and treat mental health problems. Hospitals and health clinics will provide 3.08 hospital beds per 1,000 people in 2010, up 3.7%. We will take effective measures to prevent and control influenza A (H1N1) and other major communicable diseases.
5) We will intensify efforts to ensure an adequate housing supply. We will increase government funding by allocating 44 billion yuan of capital construction investment in the central government budget to accelerate the construction of low-rent housing and other low-income housing; support the renovation of dilapidated rural houses and the run-down areas in cities, state-owned industrial and mining areas, forest regions, and land reclamation zones; and continue to build permanent homes for nomadic herdsmen. As required, we will spend no less than 10% of the net income from the transfer of land-use rights on construction of low-rent housing. We plan to build 3 million units of low-income housing; improve the houses of 2.8 million families living in all kinds of run-down areas; renovate dilapidated houses for 1.2 million rural families; and provide permanent housing for 60,000 nomadic families in 2010.
6) We will vigorously strengthen cultural development. We will increase efforts to build community public cultural facilities and sports facilities for the masses, with the focus on rural areas and the central and western regions. We will speed up implementation of cultural projects that benefit the people such as those to share cultural information and to build multipurpose cultural centers in towns and townships. We will do more to protect national natural and cultural heritage sites, famous historic and cultural cities, recovered cultural relics, and intangible cultural heritage. We will continue to promote reform of the cultural management system and improve policies to support non-profit cultural programs, develop cultural industries and encourage cultural innovations. We will promote the flourishing of philosophy and the social sciences. We will promote the development of major cultural projects and product innovation in radio, film and television, the press and publishing, and other areas. We will vigorously carry out public fitness programs. We plan to build 2,000 sports venues this year, an increase of 4.1%.
7) We will make programs for senior citizens a high priority, effectively protect the rights and interests of women and minors, show our concern for people with disabilities and support programs that benefit them. We plan to increase the number of social welfare beds by 100,000, up 3.3%; and raise the number of facilities providing comprehensive services for the disabled by 384, up 15.1% in 2010.
8) We will continue to carry out post-Wenchuan earthquake recovery and reconstruction work well, and basically complete the major tasks by the end of September this year.
We will continue to increase exchanges and cooperation between the mainland and the Hong Kong and Macao special administrative regions in the areas of economic and trade affairs, science and technology, education, culture, health and sports, and we will continue to support the two regions in overcoming the adverse impact of the global financial crisis and promoting economic development. We will seize the historical opportunity to actively promote economic and cultural exchanges and cooperation between the two sides of the Taiwan Straits, and expand the direct mail, transport and trade links between the two sides. We will support the role of the economic zone in Fujian Province on the west coast of the Straits in pioneering new approaches to exchanges and cooperation between the two sides.
This year we have an additional important task to perform: formulating the Twelfth Five-Year Plan for National Economic and Social Development. We will draw up the draft Outline of the Twelfth Five-Year Plan based on a wide range of opinions from all regions, departments, and all sectors of society; complete the preparatory work for submitting it to the Fourth Session of the Eleventh NPC for deliberation; and make arrangements for the formulation of related special plans and regional plans.
Fellow Deputies,
Successfully completing all the work for economic and social development in 2010 will be an arduous but important task. We will unite even closer around the CPC Central Committee with Comrade Hu Jintao as General Secretary, hold high the great banner of socialism with Chinese characteristics, follow the guidance of Deng Xiaoping Theory and the important thought of Three Represents, thoroughly apply the Scientific Outlook on Development, voluntarily accept the guidance and supervision of the NPC, and listen with an open mind to comments and suggestions from the CPPCC National Committee members. Let us strengthen our confidence, work hard with a pioneering and innovative spirit, and strive to achieve the targets for the Eleventh Five-Year Plan and promote sound and rapid economic and social development.
