Better social security
system
The Proposal of the Communist Party of China (CPC) Central Committee
for Formulating the 10th Five-Year Plan (2001-05) for National
Economic and Social Development urges localities to actively
expand employment, improve the social security system and the
livelihood of the people.
The proposal was examined and approved by the Fifth Plenary
Session of the 15th CPC Central Committee last week.
The proposal said that expanding employment is required to further
stimulate economic development and safeguard social stability.
It is an important part of macro-economic control.
It is necessary to speed up economic growth and further develop
labour-intensive industries and collectively and privately owned
businesses, according to the proposal.
As an important pillar of the socialist market economy, an overall
social security system has a significant bearing on the reform,
development and stability of the nation.
The central authorities encouraged an early establishment of
an independent social security system, which will no longer
belong to businesses themselves, but will attract funds through
various channels.
The proposal also stressed the need for modern and strict management
of the social security system, and the need to pursue a proper
pension system for urban employees.
Meanwhile, medicare and unemployment insurance for urban workers
were underlined by the proposal.
China plans to gradually adopt a system of unemployment benefits
to help laid-off workers in State-owned enterprises, according
to the proposal.
The final target of economic growth is to improve the material
and cultural conditions of the people, which will also provide
momentum for the sustainable development of the economy, the
proposal said.
The central authorities want to see more improvement in living
standards, with increased housing space, a cleaner environment,
an effective network of public facilities, increased ability
to buy personal computers and cars, a high-level of infrastructure,
enjoyable entertainment activities, efficient medicare and good
social order.
In addition, the proposal stressed the importance of raising
the income of people nationwide, especially those with low incomes.
It is necessary to pursue the principle of making efficiency
a priority while also taking fairness in distribution into account,
according to the proposal.
The proposal said it is essential for people with capital or
technology to have a share in earnings.
It called for pilot reform measures to be used in the form of
annual salary or options for outstanding managers and technicians.
China will further adjust the distribution system by improving
the tax policy, initiating an inheritance tax and preventing
the income gap from further expanding.
Meanwhile, the proposal emphasized socialist ethical and cultural
progress throughout the country. It urged a modern socialist
culture with Chinese characteristics when the nation is confronted
with Western ideologies and cultures.
The proposal also urged the raising of people's overall quality
of life, both materially and culturally, and called for increased
national cohesion.
Infrastructure construction stressed
The CPC proposes that, in the coming five to 10 years, the
construction of water conservation, transportation, energy
and other infrastructure projects will be further reinforced.
The proposal put forward that the reinforcement of infrastructure
construction is a very important task during the coming five
to 10 years. Efforts should be made to rationalize structure,
readjust layout, improve project quality, expand investment
channels and raise investment efficiency to bring infrastructure
construction to a new level.
It said water conservation construction needs overall planning
and comprehensive management. Efforts should be focused on
minimizing flood disasters and solving the problems of water
shortage and water pollution.
An overall plan for national water conservation construction
and plans for harnessing major rivers should be formulated
in a scientific way and be implemented energetically, it said.
The sustainable utilization of water resources is a strategic
issue in China's economic and social development, for which
the key is to improve water using efficiency and put conserving
water high on the agenda.
The proposal pointed out that transportation construction
needs unified and rational planning, and the construction
of roads, railways, ports, airports and piping systems should
be reinforced to form an unimpeded, safe and convenient modern
transportation system.
The focus of transportation construction will be on improving
road and railway networks; reinforcing urban road and rail
transportation construction; developing water transportation;
opening feeder air routes; and reinforcing the building of
oil and gas pipelines.
According to the proposal, full use should be made of resources
in energy construction.
Also, the energy structure should be rationalized to improve
efficiency and to protect the environment.
Major measures include the development of clean, high-quality
coal; accelerating the prospecting, development and use of
oil and gas; actively using overseas oil and gas resources
through co-operative development and other channels; promoting
the construction of a nationally unified power transmission
network; developing new sources of energy and renewable energies;
and spreading energy-saving technologies.
Agricultural and industrial goals outlined
The Proposal of the CPC Central Committee for formulating
the 10th Five-Year Plan (2001-05) outlined the nation's goals
of consolidating and strengthening the primary status of agriculture
and accelerating re-organization and restructuring of industry
for the next five years.
According to the proposal, strengthening the position of agriculture
is an important part of economic restructuring and the basis
for maintaining economic growth and social stability.
The proposal said that great importance should be attached
to preserving and expanding the capacity of grain production,
building stable bases of grain production, developing a grain
security system that is compatible with the specific conditions
of China and the requirements of a socialist market economy
and guaranteeing the essential balance between demand and
supply of grain.
The proposal called for the country to be fully aware of the
importance of difficulties in the development of agriculture,
always put the development of agriculture as the top priority
in economic growth and guarantee sustainable, stable development
of agriculture on the basis of improving overall quality and
efficiency.
According to the proposal, every possible means should be
adopted to increase the income of farmers because this concerns
both the development of agriculture and rural areas and the
development of the economy as a whole.
It called for greater efforts to be made in restructuring
the agricultural sector, actively expanding the sources for
the increase of farmers' income, stepping up support and protection
of the farming sector, effectively slashing the burdens of
farmers and securing the sustainable increase of the income
of farmers.
The proposal pointed out that the restructuring of agriculture
and the rural economy should be market-oriented, based on
scientific and technological advances and persistent in exploring
a new broadness and depth of production growth.
It said that great efforts should be made to push forward
the development of a universal service system in rural areas,
with the supply of technological and information services
as the focal point.
Support should be given to the innovation and spread of farming
technologies so as to make advanced, practical technologies
accessible to more farmers, according to the proposal.
The establishment of the systems of market information about
farm produce, food quarantine and quality standards should
be accelerated to guide the farmers to turn out quality farm
produces in line with market demand.
The proposal said that deepening rural reform is the fundamental
measure to preserve and promote the motivation of farmers.
It said that the development of a legal framework guaranteeing
the land system in rural areas should be accelerated so as
to maintain the dual management system that encompasses unified
and independent management and is based on household contract.
It said that on the basis of pilot reforms in certain areas,
the reform of replacing arbitrary fees imposed by administrative
authorities with taxes should be accelerated in the rural
areas. At the same time, the reform of government structure
at township level should be carried out in an active and proper
way.
With industrialization as a major way for modernization of
agriculture, the country should encourage and support the
enterprises that process and sell farm produce to give farmers
access to the market so as to develop a system of profit-sharing
and risk diversification.
According to the proposal, the country should increase input
in agriculture and rural areas through various channels, encourage
rural residents to participate in capital construction of
farmland, accelerate construction of roads, power grids, water
pipelines, telecommunications facilities and other infrastructures
in rural areas and improve the conditions of production, living
and market in rural areas.
The proposal noted that re-organization and renovation of
industrial enterprises and optimization of the industrial
structure are imperative tasks of economic restructuring and
extremely important to the sustainable growth of the economy.
Therefore, the overall quality and competitiveness of the
industrial sector should be improved.
It said that the industrial sector should effectively change
the style of growth, enhance the capabilities of technological
innovation, adopt new and high technologies and accelerate
upgrading of conventional industries.
The proposal urged the closure of factories and mines that
turn out products of poor quality, waste resources, cause
serious pollution, or lack safety, and the dismantling of
outdated equipment and phasing out outdated technology.
It said that enterprises should go bankrupt if they suffer
losses for a long time, have debts larger than assets and
have no means to reverse the losses.
According to the proposal, acceleration of re-organization
of industrial enterprises should be in line with the principles
of specialized division and economies of scale. The country
should form a group of large companies and enterprise groups
that have their own intellectual property rights, strong core
businesses and powerful flagship entities.
It said that the country should actively facilitate the growth
of small and medium-sized companies, especially scientific
and technological companies.
The re-organization and restructuring of the industrial sector
should be conducted in accordance with the rule of market.
The State should properly guide the orientation of investment
so as to avoid construction of redundant projects and duplication,
according to the proposal.
Because China has abundant human resources, the country should
pay attention to the development of labour-intensive industries,
according to the proposal.
It said that the country should insist on developing its own
technological innovations as well as introducing technologies
from other countries and pay attention to the balance between
the feasibility and advancement of technologies.
Inprove socialist market economic system, speed up western
development
China will continue its reform initiatives in a bid to improve
its socialist market economic system during the next five
years, according to the Proposal of the Communist Party of
China (CPC) Central Committee for Formulating the 10th Five-year
Plan for National Economic and Social development.
The proposal stressed the importance of reform, exploration
and innovation to break systematic obstacles to the development
of productivity.
The proposal pinpointed the reform of State-owned enterprises
(SOEs) as the key link in China's economic restructuring,
saying that large and medium-sized SOEs must deepen their
reforms to establish a modern corporate system characterized
by clear ownership, explicit rights and responsibility, disconnection
between the government and enterprises and scientific management.
Large and medium-sized enterprises should be encouraged to
embrace the shareholding system through public listings, entering
joint ventures with foreign partners and cross shareholding,
the proposal said.
The government will further relax its control over small and
medium-sized enterprises to inject more vigour into them,
it added.
The CPC Central Committee proposal recognized non-public ownership
as an important part of the socialist market economy and pledged
to create a fair competitive environment among enterprises
of different ownerships.
"We shall support, encourage and guide the healthy development
of private enterprises, especially small and medium-sized
technology-intensive companies," the proposal said.
It also stressed the importance of establishing a unified
and orderly nationwide market that allows fair competition
and does not have monopolies.
The proposal pledged to further relax government control over
prices to allow the market system to work.
"The means of planning, finance and banking must be used
comprehensively. The leverage functions of price, tax, interest
rates and exchange rates must be allowed to play their part,
so as to guide and promote economic restructuring and safeguard
the stable growth of the economy," the proposal said.
In the near future, the proposal said an active fiscal policy
must be continued to spur corporate and social investment
and stimulate consumption.
It noted that financial reforms must be deepened in order
to perfect the organizational, market, supervision and macro-control
systems in the financial sector.
"A stable and healthy monetary policy must be employed
for the instant adjustment of money supply, safeguarding the
stability of the exchange rate of the renminbi yuan, and supporting
the adjustment of economic structure and economic growth,"
stated the proposal.
It pointed out that China's opening up to the outside will
enter a new stage during the 10th Five-Year Plan period.
"With China's accession to the WTO, our country will
enjoy more opportunities to attract foreign capital, technology
and management expertise, promote the optimization and upgrading
of the industrial structure and expand our exports, while
at the same time, it will face severe challenges brought on
by stronger international competition," the proposal
said.
To address the challenges, the proposal said China must improve
its investment environment, attract more foreign capital and
improve the quality of foreign investment.
The use of foreign capital must be combined with the adjustment
of industrial structure, the reform of SOEs and the development
of the western regions, it said.
China will also continue with the step-by-step opening of
its banking, insurance, telecommunications, foreign trade,
internal trade, tourism and other service sectors to foreign
competition, and gradually apply local treatment to foreign
investment projects, according to the proposal.
The country will take a positive stance towards encouraging
foreign businesses, especially multinationals, to invest in
its high-tech sectors and participate in the restructuring
of SOEs as well as in infrastructure construction, said the
proposal.
China will positively explore the possibility of using medium
and long-term foreign investment in the form of acquisitions,
mergers, investment funds and securities investment, the CPC
proposal said.
It noted that China will also step up its supervision over
financing activities in foreign currencies to prevent foreign
debt risks.
The country will accelerate the clean-up, revision and perfection
of its economic laws and regulations to increase its policy
transparency, according to the proposal.
The proposal stressed that more attention must be given to
product quality, the diversification of markets and the use
of high technology in expanding China's goods and services
exports.
It adds that China should also positively participate in multilateral
trade systems, strengthen regional economic co-operation,
and step up its economic and technological co-operation and
exchanges with other developing countries.
The reform of the foreign trade system must be deepened to
establish a system that complies with international practices
and the specific situation in China, the proposal said.
China will further step up the development of the resource-rich
western areas to promote a co-ordinated development among
different regions of the country, according to the proposal.
The implementation of the western development strategy is
of great significance to the country's economic development,
national solidarity and social stability. It is also a key
step in achieving the country's strategic goal of building
a well-to-do society in all areas of life in the new century.
The proposal pointed out that western development is an "arduous"
historic task, which should be fulfilled with both a sense
of urgency and long-term effort.
"Within five to 10 years, China expects to achieve a
breakthrough in the infrastructure construction and environmental
development in the western region to create a good start for
western development," the proposal said.
To achieve these goals, the proposal said, more effort should
be made to build key projects in communications, water conservation,
telecommunications, power and urban facilities as well as
the project to pipe natural gas and transmit electricity from
the west to the eastern areas.
Concrete measures should be taken step by step to improve
the environment and production conditions in the west, the
proposal noted.
The Chinese Government will increase funds in this regard
to support the implementation of the western development strategy,
and more funds will be channeled to the region populated by
ethnic minorities, the proposal stresses.
The proposal urged that the industrial and urbanization process
be promoted and new economic growth opportunities pursued
to fully tap the western areas' resources.
As a complementary region to the west, the eastern areas are
urged to play a more significant role in driving the country's
economic development. Some areas in the east with better development
conditions will be encouraged to achieve modernization goals
ahead of others, according to the proposal.
Strengthening democratic legal system
The CPC decided to strengthen the country's democratic legal
system during the next five years.
According to the document, developing a democratic political
system and building a socialist country with the rule of law
will be an important goal of China's socialist modernization
drive.
The people's democratic dictatorship under the leadership
of the industrial workers' class and based on the alliance
of workers and the farmers should be adhered to and improved
on, the document said.
The people's congress system, the multi-party co-operation
and political consultation system under the CPC leadership
and the regional autonomy system should all be adhered to
and improved on, the document said.
The political restructuring should further be pushed forward,
as well as the building-up of a democratic legal system, it
said.
In terms of political restructuring, the document said that
legislation and supervision work of the people's congresses
should be further enhanced, and relations between deputies
and the congresses and their constituents should become closer
to ensure a scientific and democratic policy-making.
Democratic elections, democratic policy-making, democratic
management and democratic supervision must be implemented
across the country to guarantee citizens with far-ranging
rights and freedom and to respect and protect human rights,
it pledged.
Grassroots governments and autonomy organizations of the masses
should be optimized for public participation, and all the
regulatory, management affairs of grassroots governments,
factories and villages must be open to public supervision.
The building and improvement on the legal system facilitating
the socialist market economic operations is the key to China's
legal work, it said, noting that property-ownership relations,
credit transaction and contract matters under the conditions
of a market economy must be covered by law and administered
in accordance with law, so as to ensure a sound market order
and protect fair competition.
Government work should operate in line with statutory laws
while improving the public servants system, with government
functionaries held responsible for their conducts and their
performances regularly checked. Judiciaries shall be reformed
to guarantee their independent rights to prosecution and trials,
as well as to ensure justice be served, said the document.
Activities to split the motherland in the name of ethnic issues
and other illegal doings in the name of religion must be dealt
with in accordance with law and vicious cults must be banned,
it said.
Social security measures must be implemented at the grassroots
level, criminal activities endangering national security and
public orders, as well as social vices like prostitution,
gambling and drugs shall be severely cracked down upon and
wiped out, it said.
The document also elaborated on China's future defence policies,
saying that national defence must be further strengthened
along with economic progress.
New high-technology weapons shall be developed to enhance
the Chinese army's defence capability for new situations that
may arise, it said.
On the role of the CPC in China's socialist modernization
drive, the document said that its administerial capability
must be improved and updated, especially the capability to
regulate the national economy and social development.
It said that the Party must follow the three principles raised
by General Secretary Jiang Zemin that the Party must always
earnestly represent the development requirements of China's
advanced social productive forces, the progressive course
of China's advanced culture, and the fundamental interests
of the overwhelming majority of the Chinese people.
Promote science and technology
The CPC called for strenuous efforts to promote science and
technological progress and innovation, so as to enhance the
overall national strength and carry out the strategy for sustainable
development.
The proposal set such goals as strengthening technological
innovation, developing high and new technology, and upgrading
the technological level of industries.
High-tech research should be conducted energetically and efforts
should be concentrated on making breakthroughs in the key
fields of information, biology, new materials, advanced manufacturing,
aerospace and aviation. The ability to make independent technological
innovations must be improved in the high-tech sectors which
are linked to national economic lifelines and State security.
The CPC Central Committee wanted to deepen the structural
reform of the science and technological sector to build up
a new system compatible with the demands of a market economy.
International exchanges and co-operation in science and technology
should be increased, it said. Foreign companies should be
encouraged to open research and development institutions in
China, while local science and technology firms should be
encouraged to conduct research and development overseas to
promote the sharing of resources and information.
The proposal highlights the importance of professionals, saying
that in the final analysis, international competition, now
and in the future, is the competition of professionals. The
fostering, attracting and utilizing of professionals should
be made a strategic task, it stressed.
Meanwhile, education is the basis for cultivating professionals,
it said. China should take the road of reform and innovation
in developing its education sector and gear its education
to the needs of modernization, the world and the future, it
noted.
It urged the advancement of quality education advocating the
spirit of innovation and practical abilities.
The CPC Central Committee urged continuation of the policy
of encouraging people to study overseas and return to the
motherland afterwards.
It highlighted the importance of fostering talented people
who can become leaders in various fields. The personnel system
should be reformed to create conditions for the growth, selection
and appointment of young and excellent leaders, it said.
It proposed to continue the strict control of the population;
rationally utilize, save and protect resources; and strengthen
environmental protection by launching major afforestation
projects throughout the country and dealing with environmental
problems in urban areas.
Proposal attaches great importance to information technology
The proposal attached great importance to speeding up the
development of the information and service industries.
The proposal noted that the promotion of the application of
information technology is the trend in current world economic
and social development and the key link to upgrading China's
industrial structure and realizing industrialization and modernization.
The proposal listed the construction of information infrastructure
as a preferential task for national economic and social development
and urged the promotion of structural innovation so as to
ensure that the information industry strides forward.
Information technology should be used extensively in all circles
of society and the use of computers and the Internet should
be widespread, said the proposal.
Digital technology and the Internet should be used in various
sectors including governmental administration and management,
public service, enterprise management and daily operations.
Various kinds of information products and Internet services
should be provided to consumers and conditions should be created
to promote the use of information technology in sectors such
as banking, finance, taxation and trade departments. The development
of e-commerce should be accelerated.
The information industry should be integrated with related
cultural sectors. Schools should actively promote education
in computers and Internet technology.
The construction of infrastructure for the information industry
should be strengthened. High-speed, wide-band transmission
networks should be developed and improved, and the construction
of networks connecting consumers should be sped up. The use
of the Internet should be dispersed and the integration of
the networks of telecommunications, TVs and computers should
be promoted.
According to the proposal, the development of the software
industry and integrated circuit industry should be accelerated,
the production of new components, computer and Internet products,
digital video and audio products should be supported, and
equipment manufactured with information technology and system
integration ability should be promoted. The information service
industry, especially the Internet service industry, should
be actively developed, the proposal said.
Meanwhile, the proposal said that in the process of the strategic
readjustment of the economic structure, it is necessary to
accelerate the development of the service industry and improve
service quality in the sector.
It is necessary to develop modern services and restructure
traditional services, the proposal said. In the future, the
proportion of the service industry in the gross domestic product
should be increased markedly while more people can be employed
in the sector.
The quality and technical standards of the modern service
industry should be improved, especially in sectors such as
information, finance, accounting, consulting and legal services.
The traditional service industry should be restructured with
modern management styles and technology. Emphasis should be
placed on the development of commerce and trade, transportation
and civil services.
The development of chain stores, distribution centers, a diversified
transportation system and online selling should be promoted.
The development of the service industry should meet consumers'
demands. The real estate industry should be developed with
an emphasis on the construction of low-price housing projects.
Standardized property management should be popularized.
The tourism industry should be actively developed, and tourism
resources should be developed and protected. The community
service industry should be accelerated to provide more facilities
for residents. The industries of entertainment, education
and training, fitness and hygiene should be developed to cater
to the needs of consumers.
The service industry in the countryside should also be developed
and its market environment improved, said the proposal.
It called for accelerated improvement in the market, saying
that the monopoly in the service industry should be broken
down, market access should be widened and market competition
should be encouraged.
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