Summary of Premier's Report on Outline of New 5-year Plan (03/05/2001)

 

Premier Zhu Rongji delivered, Monday, "Report on the Outline of the Tenth Five-Year Plan for National Economic and Social Development (2001-2005)" at the opening of the Fourth Session of the Ninth National People's Congress (NPC). The report is composed of 16,000 Chinese characters, in 10 parts.

In his report, the premier first reviewed the remarkable achievements of China's national economic and social development during the period of the Ninth Five-Year Plan (1996-2000).

Over the past five years, China's national economy experienced sustained, rapid and sound development, and overall national strength continued to grow.

In the five years, China's GDP increased by an average annual rate of 8.3 percent and reached 8.9404 trillion yuan (US$1.08 trillion) in 2000. The mission of quadrupling the per capita GNP of 1980 has been overfulfilled, according to the premier.

Total profits from state-owned industrial enterprises and from industrial enterprises with a controlling share held by the state reached 239.2 billion yuan (US$28.9 billion) in 2000, an increase of 190 percent over the 1997 figure. The objectives of reforming large and medium- sized state-owned enterprises and turning around loss-making operations within three years were basically attained.

The total volume of China's imports and exports reached US$474.3 billion in 2000, with exports accounting for US$249.2 billion, a rise of 69 percent and 67 percent respectively over the 1995 figures.

During the period, the spheres of activity open to foreign businesses gradually widened, and the investment environment improved. Foreign investment increased and was better utilized. More than US$289.4 billion in foreign funds were put to use during the past five years, an increase of 79.6 percent over the period of the Eighth Five-Year Plan.

China's foreign exchange reserves totaled US$165.6 billion at the end of 2000, US$92 billion more than in 1995. According to the premier, in 2000 the per capita net income of rural dwellers and the per capita disposable income of urban residents reached 2,253 yuan (US$272.4) and 6,280 yuan (US$759.4) respectively, increasing by 4.7 percent and 5.7 percent annually in real terms.

During the period, the development of science, technology and education accelerated in China, and other social undertakings progressed in a comprehensive way, and the Chinese government resumed its exercise of sovereignty over Hong Kong and Macao, and historic progress was made in the great cause of peaceful reunification of the motherland.

Summing up the experience in improving macro-economic management and regulation in the Ninth Five-Year Plan period, the premier put forward four pieces of major experience as follows: to solve problems blocking the advance of the nation by stimulating economic development; to make timely adjustments to macro-control policies in accordance with the changing economic situation; to integrate the expansion of domestic demand with economic restructuring; and to properly handle the relationship between reform, development and stability.

The premier also raised five guiding principles for the Tenth Five-Year Plan, with the principle of "Making Development the Central Theme" placed at the first place. The outline sets seven percent as the average annual economic growth rate for the Tenth Five-Year Plan period.

"Though slightly lower than the actual growth rate of the Ninth Five-Year Plan period, it is still fairly high," Zhu noted. The other principles are: concentrating on economic restructuring; making reform and opening up and technological progress the driving force; making improvement of the people's living standards the primary goal; coordinating economic development with social development.

He pledged to strengthen agriculture as the foundation of the economy and strive to increase farmers' income. The system of administrative fees and taxes in rural areas needs to be reformed, while abolishing all administrative fees imposed exclusively on farmers, he stressed.

"This is a sound policy for safeguarding the legitimate rights and interests of farmers and reducing their burden," he noted.

As a result of the reform of taxes and administrative fees, it will be necessary to dissolve or merge some townships and towns where conditions permit and decrease the number of administrative bodies and employees in towns and townships, and reduce the number of village and group functionaries receiving government subsidies, he said.

Readjusting and improving industrial structure is the key to the strategic restructuring of the economy, Zhu said. In the coming five years, China will enhance traditional industries with high, new and advanced technologies; develop new and high-tech industries, and use information technology to stimulate industrialization; intensify construction of infrastructure and pay great attention to the strategic issue of resources; and accelerate the development of service industry, according to the premier.

On the issue of developing the western region, Zhu said that during the Tenth Five-Year Plan period, it is necessary to place emphasis on key projects for a good beginning of the program. China should focus on a number of major projects of strategic significance, such as the transmission of natural gas and electricity from western to eastern regions and the planned Qinghai-Tibet Railway, he said.

He urged giving priority to construction of infrastructure and protection of the ecological environment in the western region, striving for major breakthroughs within five to ten years; and at the same time, China should develop science, technology, and education considerably.

Zhu went on to say that implementing the strategy of "Developing China Through Science and Education" and vigorously tapping human resources is an important component of the outline as well as an important guarantee for accomplishing the various tasks during the next five years.

In the coming five years, China will further deepen reform of state-owned enterprises; overhaul and regulate market order; enhance macro-control and further deepen reform of the finance, taxation, banking and investment systems; and do a better job of opening to the outside world in the light of economic globalization, he said.

Meanwhile, he urged improving the social security system at a faster pace; expanding employment by all possible means; and increasing income of urban dwellers.