China's Parliament endorses major economic policy changes

The National People's Congress, China's Parliament, endorsed Premier Wen Jiabao's government work report and the country's newest five-year development blueprint on Tuesday with votes close to unanimity, which enshrined China's new economic policies of relying on rural development and sci-tech progress.

The government work report and the five-year plan for national economic and social development set an 8 percent growth rate for 2006, and 7.5 percent annually for the five years up to 2010, respectively, by reducing energy consumption and pollutant discharge.

Premier Wen's report was approved with a supporting rate of 98. 86 percent, and the Outline of the 11th Five-Year Plan for Economic and Social Development more than 97 percent, from the 2, 891 deputies present at the closing meeting of annual session of the National People's Congress (NPC).

Top lawmaker Wu Bangguo presided over the closing meeting, also attended by President Hu Jintao, Premier Wen Jiabao, and other leaders.

"The final validation of the government's action plan for the next five years by the Parliament signifies China's major shift in economic policies from urban development and heavy investment in billion-dollar projects to increasing rural and sci-tech investment for sustainable development," said Li Chong'an, an NPC deputy and vice-chairman of the NPC Law Committee.

In the past five years, China maintained an average 9.5 percent annual economic growth. In 2005, economic growth rate mounted to 9. 9 percent and per capita GDP exceeded 1,700 U.S. dollars.

As stated in the government action plans, while putting more emphasis on economic efficiency, China will also stress social equity by narrowing the gap between the rich and poor "for the ultimate goal of easing social confrontations and maintaining social stability," said Dr. Ding Yuanzhu with the Macroeconomic Research Institute of the National Development and Reform Commission.

During the annual NPC session that began on March 5, Chinese President Hu Jintao and Premier Wen Jiabao both stressed the central authorities' determination to press ahead with the reform initiated by late leader Deng Xiaoping in the late 1970s.

But "they have put more emphasis on democratic and scientific policy making and balanced development to ensure that the reform will benefit the majority, if not all, of the population," said Dr. Ding.

Such policy change is easily found in the 11th Five-Year Plan when compared with the 10th Five-Year Plan. In the new five-year development blueprint, there are few multi-billion-dollar construction projects like diverting water from the country's south to the north or a gas pipeline from western frontiers to the coastal east.

In stead, the massive government fund will be used to make the 900 million rural people better off, and boost sci-tech research for eventually turning the country from workshop of cheap products for exports into manufacturer of its own global brands.

According to the government plans, infrastructure investment will be shifted from urban areas to the countryside, focusing on farmland, roads, safe drinking water, methane facilities, power grids and telecommunications. And Premier Wen has pledged rural children will also receive a 9-year compulsory education for free as their peers in cities, an unprecedented step in the history of China.

"It will not be easy to fulfill the goals of the 11th Five-Year Plan, especially when reducing energy consumption and saving resources is concerned," said NPC deputy Li Chong'an. "But they are necessary and should be realized with intensified efforts."

The NPC resolution on the 11th Five-Year Plan that won an overwhelming majority vote says that the goals are "achievable through tangible efforts" as the action plans reflect the real conditions of China and the common aspiration of all the Chinese People.

This year marks the beginning of the implementation of the 11th Five-Year Plan. The government's efforts in pushing forward the drive for building a new countryside and reducing energy consumption per GDP unit by 4 percent are "a right step in the right direction," said Li.

On Tuesday, the Parliament also ratified the plan for economic and social development in 2006, the central budget for 2006, and the work reports of the NPC Standing Committee, the Supreme People 's Court and the Supreme People's Procuratorate.

The work reports of the Supreme People's Court and the Supreme People's Procuratorate were endorsed with affirmative votes up to 78 percent and 82 percent respectively.

Source: Xinhua