Year 2005 is a vital year for China's economic reform, as its government goes all out to push forward the comprehensive reform in its agricultural economy, state-owned enterprises, system surroundings of private sectors, financial systems, taxation, pricing, investment and income distribution.

According to a circular issued on April 4 by the State Council on deepening economic reform, China will continue its reform on rural taxation, improving the rural land system, and deepening reform concerning grain and cotton circulation.

The circular calls for acceleration of reforms on state-owned enterprises, supporting reform on the monopoly industries.

The government will improve the system environment of private sectors so as to better protect the interest of privately-owned firms and provide financial convenience for them, according to the document.

It also calls for speeding-up financial enterprise reform, and steady reform on interest rate and exchange rate systems. The Renminbi exchange rate should be kept basically stable at a reasonable and equilibrium level, according to the circular.

The country will further its reform on treasury management, improve the tax rebate system and push forward investment system reform, according to the document, which also demands more flexible pricing systems.

China will strive to develop its capital market, land market, labor force market, and reform circulation systems.

The country vows to boost reform on science, technology, culture and public health systems, as well as on systems concerning income distribution and social welfare, and puts stress on foreign trade and investment system reform and reform on governmental administrative systems.

Source: Xinhua