| |
It is a matter of great importance to people all over the
country to formulate a grand program to further the cause
of reform and opening up and the socialist modernization drive,
which will extend into the next century. The "Proposal of
the CPC Central Committee for the Ninth Five-Year Plan for
National Economic and Social Development and the Long-Range
Objectives to the Year 2010: adopted at the Fifth Plenary
Session of the 14th Party Central Committee defined the guiding
principles and the major tasks for the all-round fulfillment
of the second step of the strategic goal and for moving on
to the third step. In the spirit of the Proposal and on the
basis of the opinions solicited from all social sectors, the
State Council has drawn up the Outline of the ninth Five-Year
Plan for the National Economic and Social Development and
the Long-Range Objectives to the Year 2010 (Draft). On behalf
of the State Council, I now submit a report on the Outline
(Draft) for your examination and approval along with the Outline
(Draft) itself, and also for suggestions and comments from
members of the National People's Political Consultative Conference.
I. Review of the national economic and social development
during the eighth Five-Year plan period
The past five years was a period during which the Chinese
people made gigantic strides on the road to socialism with
Chinese characteristics. The important speech by comrade Deng
Xiaoping and the 14th Party Congress in 1992 marked the beginning
of a new stage for the reform and opening up and the modernization
drive. Under the leadership of the Chinese Communist Party
and with common efforts of the people of all our nationalities,
the major tasks set by the eighth Five-Year Plan have been
fulfilled or over fulfilled, remarkable results were achieved
in national economic and social development, with the productive
forces, the overall national strength and the living standard
of the people reaching a new level.
The national economy sustained rapid growth. During
the eighth Five-Year Plan period, the gross national product
increased by an average of 12 percent annually reaching over
5,760 billion yuan in 1995. I would now like to announce to
the Congress that the original target of quadrupling the GNP
of 1980 by the year 2000 has been fulfilled five years ahead
of schedule. In the past five years, the rural economy developed
in an all-round way with agricultural output value increasing
at an average annual rate of 4.1 percent and township and
village enterprises maintaining a good growth momentum. The
industrial output value increased by 17.8 percent per annum
on average and the readjustment in the product mix was accelerated,
as reflected in the considerable increase in the output of
coal, electricity, iron and steel, automobiles, chemical fibers,
chemical fertilizer and household electrical appliances. Fresh
progress was made in petroleum, natural gas and non-ferrous
metal industries. There is ample supply and increased variety
of light industrial and textile products. Tremendous advances
sere made in key construction projects and more than 840 large
and medium-sized capital construction projects were completed
and put into operation, adding to the capabilities in the
transport, communications and energy sectors. Over 11,000
kilometers of railway track was laid and the Beijing-Kowloon
Railway running through North and South China was completed
two years ahead of schedule. The construction of high-class
highways, ports and airports went full steam ahead. More than
70 million kilometers of power-generating capacity was added.
Post and telecommunications undertakings made rapid headway
as the total number of telephones increased by 58 million
or so. New progress was made in geologic prospecting. The
successes in building up basic industries and infrastructure
eased the "bottleneck" constraints on economic growth, providing
additional strength for future economic development.
Breakthroughs were achieved in the economic restructuring.
The pace of reform was quickened in line with the objective
of building a socialist market economy. A new financial system
centered on the revenue-sharing main component were basically
established and began smooth operation. Policy-related and
commercial banking were separated preliminarily, and the official
rate of exchange for the renminbi was made uniform with the
market rate. The framework of a new macro-control system took
shape and market results were achieved in stepping up and
improving macro-control. Price control was further relaxed
with the market playing a much greater basic role in resource
distribution. New advances were made in the reform of State-owned
enterprises, rural areas, the systems of planning, investment,
circulation, social security and housing, and in the reform,
a situation in which public ownership plays the predominant
role and various economic elements develop simultaneously
has involved. The switch to a market economy and the socialization
of the national economy have been greatly accelerated to a
higher level and the economy has been notably reinvigorated.
The advance of the reform has given a powerful boost to national
economic and social development and laid the groundwork for
the initial establishment of a socialist market economic structure
by the end of the century.
The overall pattern of opening to the outside world was
basically established. During the eighth Five-Year Plan
period, we opened up further to the outside world in both
scope and scale, which resulted in the evolution of the overall
pattern of opening up, encompassing both the coastal and inland
areas and ranging from ordinary processing industries to basic
industries and infrastructure. Total imports and exports exceeded
US$1,000 billion, double that in the seventh Five-Year Plan
period. The investment structure improved, over $160 billion
worth of foreign capital was used, of which direct foreign
investment accounted for 70 percent. The advanced technology
and managerial expertise introduced from abroad helped improve
our production technology and management. International tourism
grew rapidly. By the end of 1995, State foreign exchange reserves
totaled more than $73 billion which enhanced our capability
to made international payments. The increased opening up to
the outside world spurred development in the domestic economy,
stepped up the economic restructuring and promoted China's
exchanges with the governments and peoples of other countries.
The living standards of urban and rural residents continued
to improve. During the eighth Five-Year Plan period, the
average per-capita income used by city dwellers for living
expenses increased by 7.7 percent per year after allowing
for price rises, and the average per-capita net income for
people in the countryside went up by 4.5 percent. The annual
average rise in total retail sales of consumer goods was 10.6
percent. Savings deposits of residents approached 3,000 billion
yuan at the end of 1995, an increase of over 2,000 billion
yuan from the end of Seventh Five-Year Plan period. Urban
and rural employment kept rising. Much was achieved in the
fight to shake off poverty, and the population living in deprivation
dropped from 85 million at the seventh Five-Year Plan period
to 65 million currently. New housing for urban and rural inhabitants
which added a total of 4.3 billion square meters of floor
space was completed, thus increasing the per-capita living
space. The system of five work days per week was introduced
in cities and townships. The urban and rural people are moving
towards a relatively comfortable standard of living, with
their cultural life enriched and the quality of their lives
further improved.
All social undertakings developed in an all-round way. In
the course of reform, scientific, technological and educational
undertaking continued to forge ahead. In the past five years,
160,000 scientific and technological results officially recognized
by the ministries and commissions were achieved and the translation
of these results into productive forces accelerated. Significant
progress was recorded in making nine-year compulsory education
universal. Rapid advances were recorded in secondary vocational
education and great strides were made in the reform of the
higher education system. The marked success in family planning
resulted in a drop in population growth from 14.39 per thousand
in 1990 to 10.55 per thousand in 1995, marking the initial
success in containing the excessive population growth. New
progress was also made in literature and art, radio, film,
television, the press and publishing and in social sciences.
Ideological education and publicity work were strengthened.
Further progress was registered in public health, sports,
environmental protection, as well as in work concerning overseas
Chinese, women, children, the elderly and the disabled. We
intensified our endeavor to keep government employees honest
and industrious, stepped up the struggle against corruption
and our efforts to improve all facets of public security,
and dealt with a number of major and serious criminal cases.
Headway was made in promoting socialist cultural and ideological
progress, democracy and the legal system, and the situation
characterized by stability and unity was further consolidated.
National defense was strengthened. The Chinese People's Liberation
Army, the Armed Police and cadres and police in the departments
of public security made new contributions to defending the
motherland and maintaining national security and social stability.
The fundamental reason for the tremendous achievements during
the eighth Five-Year Plan period lies in our firmly following
the road to socialism with Chinese characteristics and unswervingly
adhering to the basic line of the Party. In the face of drastic
changes in the international situation, the Chinese people
were united in their common endeavor and achieved economic
development, political stability, unity among nationalities
and social progress by firmly focusing on the central task
of economic construction, adhering to the four cardinal principles
and to reform and opening. Under then leadership of the Party
Central Committee with Comrade Jiang Zemin at its core, our
great socialist motherland is standing rock-solid in the East.
While affirming our achievements, we see that in the midst
of progress we still have many problems and difficulties ahead.
Conspicuous among the problems are: the fairly serious inflation
causing retail prices to rise 11.4 percent annually on average
during the past five years; the state-owned enterprises having
considerable difficulties in production and operation with
their management and operation systems not yet adapted to
the requirements of a socialist market economy; agriculture
remaining the weak link in the national economy, falling short
of meeting the needs of economic development and the improved
people's life; the relationship between income and distribution
not yet rationalized as shown by the huge disparities in the
incomes of some members of our society; the economic order
still in confusion; certain aspects of corruption still spreading;
poor public order in some areas; and a number of new problems
challenging our efforts to promote socialist cultural and
ideological progress, democracy and the legal system. All
these problems, although arising partly as a result of objective
conditions, reflect shortcomings and deficiencies in the work
of the government. We should conscientiously summarize our
experience, improve our work and adopt effective measures
to tackle these problems earnestly in the process of reform
and development.
II. The Objectives and Guiding Principles for Our Endeavor
Over the Next 15 Years
The next 15 years is an important period that links our
country's past with our future in reform and opening and in
the socialist modernization drive. We have laid a relatively
solid material and technological foundation through years
of socialist construction since the founding of the People's
Republic of China and especially through rapid development
since the implementation of the policy of reform and opening
to the outside world. The vast domestic market and the relatively
large savings deposits hold tremendous promise for development.
The deepening of reform and opening up will further invigorate
economic development. Social stability and national unity
provide the basic guarantee for the modernization drive. Moreover,
the theory, the line and the policy of building socialism
with Chinese characteristics, which evolved through practice,
clearly indicate the direction for continued progress. Viewed
from a global perspective, the peaceful international environment
and our country's good peripheral relations can be expected
to continue and therefore we can persist in our efforts towards
economic development. The scientific and technological advancement
in the world and the industrial restructuring and rapid economic
growth in the Asia-Pacific region provide favorable conditions
for economic development in our country. However, there are
quite a few factors that impede progress in the medium-and
long-range development of our country. The key factors are:
heavy burdens with respect to population and employment, relative
deficiency in per-capita resources, the overall poor quality
of the national economy, pressures in matching the economic
scientific and technological superiority of the developed
countries in the increasingly stiff international competition
and pressures exerted by hegemonism and power politics in
our international relations. A comprehensive evaluation of
the domestic and international situation at the turn of the
century shows that we are presented with rare historical opportunities
as well as serious challenges. We must be vigilant in peace
time, work with a pioneering spirit and make greater strides
on the road to modernization.
The major objectives for our endeavor over the next 15 years
are as follows: complete the second phase of the strategic
plan for the modernization drive during the period of the
ninth Five-Year Plan and quadruple the per capita gross national
product of 1980 under condition that the population in 2000
will have increased by 300 million over that in 1980; raise
the people's living standards to that of a fairly comfortable
life with poverty practically eradicated; and expedite the
formulation of a modern enterprise system and establish preliminarily
a socialist market economy. The gross national product in
the year 2010 will be double that of the year 2000; the people
will enjoy an even more comfortable life and a more or less
ideal socialist market economy will have come into being.
While carrying out the reform and stepping up development,
we must achieve marked results in promoting socialist culture
and ideology and in strengthening socialist democracy and
the legal system so as to attain all-round social progress.
The objectives of our endeavor present a beautiful prospect
for our modernization drive through the turn of the century
and express the lofty aspirations of the Chinese nation for
self-reliance and improvement,. With the fulfillment of these
objectives, China's productive forces, comprehensive national
strength and the people's living standards will be much higher
and its social and economic perspective will have undergone
tremendous historic changes, which will lay a solid foundation
for the realization of modernization by the middle of the
next century. These objectives are grand but will definitely
be fulfilled through our hard work!
To fulfill the above-mentioned objectives, we must consistently
follow Deng Xiaoping's theory of building socialism with Chinese
characteristics and the basic line of the Party, emancipate
our minds, seek truth from facts, adhere to the basic principle
of "seizing the current opportunity to deepen the reform
and open China wider to the outside world, promoting development
and maintaining stability," and conscientiously carry
out the nine major principles guiding the national economy
and social development stated in the proposal of the CPC Central
Committee. These nine major principles are as follows: maintain
sustained, rapid and sound development of the national economy;
energetically promote a shift in the mode of economic growth
by making higher economic returns the focus in our economic
work; implement the strategy of revitalizing the nation by
relying on science and education and help forge close ties
between science, technology, education and economy; give top
priority to agriculture in national economic development;
focus on the reform of State-owned enterprises as being central
to economic restructuring; unswervingly open up to the outside
world; integrate the market with macro-control holistically
and give proper guidance, protection and full play to the
initiative of the various parties concerned; stick to coordinated
economic development among different areas and gradually narrow
the gaps between them; maintain synchronized progress in material
civilization and socialist culture and ideology as well as
coordinated economic and social development.
The following points were accorded special attention in the
formulation of the outline (draft) in accordance with the
guiding principles put forward by the CPC Central Committee
in its Proposal.
First, correctly handle the relationships between reform,
development and stability. Development is the absolute
principle. The key to solving all our problems lies in the
development of our country. Reform provides impetus for development,
and only with the deepening of reform can we resolve the deep-seated
contradictions that hamper economic and social development.
Maintenance of political and social stability is the basic
prerequisite for the promotion of reform and development,
and stability in turn is realized through the deepening of
reform and sustained development. It is vital that the relationships
between reform, development and stability be handled well,
as the national situation will undergo changes and we will
be faced with new tasks in the next 15 years. Development
requires emphasizing improvement in quality and performance
as well as optimizing structure; and reform requires breakthroughs
in the solution of key and difficult problems. All this will
give rise to change in the make-up of various interests and
social relationships, and we must therefore pay close attention
to the maintenance the problem of low economic returns is
acute in the areas of political, and social stability. We
should handle well the overall relationships between reform,
development and stability, and ensure that they are coordinated
with and promote each other.
Second, vigorously promote the fundamental shift in the
economic system and the mode of economic growth. The key
to the fulfillment of the objectives in our endeavors for
the next 15 years lies in the shift from a planned economy
to a socialist market economy and from extensive mode to intensive
mode in economic growth. We should follow the general laws
of a market economy in shifting the economic system, while
adhering to the socialist orientation. In shifting the mode
of economic growth, we should handle well the relationship
between speed and efficiency, improve the overall quality
and the efficient allocation of the key elements of production,
and lay emphasis on good economic returns through optimized
structure, economy of scale and scientific and technological
advancement. The economic scale in our country is already
huge with a substantial investment increase each year.
In deepening the reform we must work out a way of running
enterprises which facilitates saving resources, reducing the
consumption of energy and raw materials, improving the quality
of products and increasing economic returns; a way of promoting
technological advancement that encourages initiative and innovation;
and a way of operating the economy that favors fair competition
in the market and optimal allocation of resources. Expediting
scientific and technological advancement and enhancing the
quality of the labor force hold the key to shifting the mode
of economic growth. During the period of the ninth Five-Year
Plan we should make full use of the existing capacity and
avoid launching new projects whenever it is possible to increase
production capacity through reforming, re-organizing, transforming
or expanding existing enterprises. We should initiate new
projects with more advanced technology, paying attention to
the scale of production and economic returns. All trades and
industries should save and make multiple use of resources
through enhanced scientific management and reduce both the
use and the consumption of resources. We will achieve better
results in our economic and social development if we earnestly
accomplish these two shifts, which will fully tap our potential
for economic growth.
Third, conscientiously resolve major issues bearing on
the overall situation of reform and development. These
issues are: how to strengthen agriculture as the foundation
of the economy; how to do well in the reform and development
of State-owned enterprises; how to control inflation and maintain
macro economic stability; how to develop education, science
and technology; how to narrow regional disparities in development
and rationalize income distribution; how to strengthen socialist
culture and ideology, democracy and the legal system; how
to promote an honest and industrious government and fight
corruption; and how to improve all facets of public security.
The basic ideas and guiding principles for resolving these
issues have been put forward by President Jiang Zemin in his
important speech "Correctly Handle the Major Relationships
in the Socialist Modernization Drive." We should, according
to the spirit of the CPC Central Committee's Proposal and
President Jiang's speech, adopt effective policies and measures
to solve these problems.
Fourth, the plan must reflect the requirements of a socialist
market economy. The Outline (Draft) is the firm medium-
and long-range plan in our endeavor to develop a socialist
market economy. We should stress the basic role of the market
in allocating resources under the State's macro-control, and
emphasize the macro economic, strategic and policy characteristics
of the State plan. We should take full advantage of the superiority
of socialism under which it is possible to concentrate efforts
and accomplish great tasks. In general, the planned targets
should be prospective guidelines, with emphasis on the direction
an the tasks of economic and social development, on the corresponding
development strategies and measures, on the aggregate targets
for economic and social development and structural changes,
and on a number of major projects that are of overall importance.
The rest of the targets and projects will be incorporated
into future annual plans. The Outline (Draft) focuses on the
ninth Five-Year Plan and gives only a broad outline for the
following 10 years so as to link it with our development in
the early 21st century and maintain the continuity of the
three-step development strategy.
III. Promoting the Sustained, Rapid and Sound Development
of the National Economy
Concerning the major tasks and strategic arrangements
for the ninth Five-Year Plan period and the following 10 years,
I would like to focus on the following points:
First, ensure a sustained and stable growth in agriculture
and the rural economy as a whole. This is very important
and it is the most difficult task in our economic development
over the next 15 years. In order to meet the requirements
of economic development and the people's well-being, we must
ensure a steady increase in the output of such basic agricultural
products as grain, cotton and oil-bearing crops. Our arable
land accounts only for 7 percent of the world's total, yet
we must feed 22 percent of the world's population. This has
made grain production especially important. We must ensure
that the total grain output will reach 490 billion to 500
billion kilograms by the year 2000. There is a great potential
for increasing grain production in our country and we can
solve the food problem by relying on our own efforts. The
main policy measures to be adopted include: implementation
of strategy of invigorating agriculture by relying on science
and education, paying more attention to improving the rural
scientific and technological contingent and popularizing a
series of effective, advanced, and applicable techniques;
strengthening efforts to tame big rivers and lakes and to
dredge medium-sized and small rivers in order to enhance our
flood and drought preparedness capabilities; making great
efforts to transform medium and low-yielding farmland and
building up grain and cotton production bases in Heilongjiang,
Jilin, Xinjiang and the Huanghe-Huaihe-Haihe basin; continuing
to assist the areas which grow grain and cotton in large amounts
in developing their economies; accelerating the development
of industries that serve agricultural production in order
to increase the supply of the means of agricultural production
and improve farm mechanization and modernization; and persisting
in and improving the system of provincial governors assuming
responsibility for the "rice bag" and the system of city mayors
assuming responsibility for the "vegetable basket". We should
protect farmland under the law, improve the basic farmland
protection system, and cherish and make good use of every
inch of our land. We should take the initiative to develop
a water-efficient agriculture and grain-efficient cultivation
of livestock and poultry. We should encourage the organic
integration of crop farming with breeding and processing industries
in rural areas so as to promote the integration of agriculture,
industry and trade, and the development of an agriculture
aimed at high yield, fine quality and high efficiency. We
should make a success of the comprehensive development of
agriculture and promote the all-round development of forestry,
animal husbandry, sideline production and fishery. The central
and local governments should increase their input in agriculture,
encouraging and directing rural collectives, individual farmers
and all other quarters of society to invest more in agriculture.
We must fully engage our rural human resources in farmland
improvement projects, water conservancy projects and in road
construction and afforestation, so as to improve conditions
for agricultural and rural economic development.
The development of township and village enterprises is a great
innovation of the Chinese farmers. The reform and development
of township and village enterprises is an important means
for promoting a flourishing rural economy and for increasing
employment and income for the farmers. We must take full advantage
of locally available resources and vigorously develop industries
which process agricultural produce and which serve agricultural
production. Attention should be paid to saving resources and
controlling and reducing environmental pollution. In order
to create a favorable investment environment and increase
economic efficiency, township and village enterprises should
be relatively concentrated and should be built coincident
with small towns. We should guide and orderly transfer of
the surplus rural labor force.
We should continue to deepen rural reforms and stabilize
and improve the contract household responsibility system with
remuneration linked to output, as well as the two-tier management
system that combines unification with diversification. Agricultural
production and operation at a proper scale should be introduced
step by step in places where conditions are ripe. We shall
continue to promote the reform and development of state-owned
farms. We shall make further efforts to rationalize the prices
of agricultural produce and means of agricultural production
and establish and improve a market system of agricultural
products, centering around wholesale markets. We shall actively
develop the rural public service system and successfully run
such co-operative economic entities as supply and marketing
cooperatives and credit co-operatives so as to constantly
expand the collective economy. We must pay great attention
to safeguarding the legitimate rights and interests of the
farmers, strictly implement the current policies and take
effective measures to lighten their burdens, steadily increase
their income, and arouse and protect their initiative. We
should also consolidate the worker-farmer alliance.
Second, actively promote readjustment in industrial structure.
We shall continue to strengthen the infrastructure and basic
industries, make great efforts to reinvigorate pillar industries
and actively develop the service industry.
The construction of the infrastructure and basic industries
must be brought into step with the level of national economic
development. In the coming 15 years, the State will concentrate
necessary resources on a number of large projects concerning
water conservancy, energy, communications, telecommunications
and major raw materials. These will include the key water conservancy
projects at the Three Gorges on the Yangtze River and at Xiaolangdi
on the Yellow River, the project to divert water from the South
to the North, coal production bases in Shanxi, Shaanxi and Inner
Mongolia, the Nanchang-Kunming Railway, the southern Xinjiang
railway and the Shenmu-Huanghua railway, main State highways
and main fiber-optic telecommunications lines and a number of
large sea ports and airports. Of these key projects, some will
be undertaken during the ninth Five-Year Plan period, others
will only be in the preparation stage during this period and
construction will not begin until the beginning of the next
century. As infrastructure projects and basic industries require
large in vestment and long periods of time to construct, it
is necessary to conduct unified planning and make overall arrangements
and work out rational distribution of priorities so as to prevent
blind development and duplicated construction.
We shall continue to invigorate such pillar industries as
machine-building, electronics, petrochemicals, automobiles
and the construction industry according to market demand so
as to stimulate the growth of the entire economy. In developing
pillar industries, the initial technology must be relatively
advanced while importing advanced technologies we should boost
our own technological development and renovation capabilities,
build up the scale of economics and pay attention to economic
returns.
Developing light industry and textiles is of major importance
in meeting the daily needs of the people, expanding exports
and accumulating funds for construction. We must accelerate
the readjustment of the product mix to adapt to the changes
in the domestic and international market. We must improve
product quality and increase variety and specifications, thus
enhancing product competitiveness.
Vigorous development of service industries must be based
on the development of the primary and secondary industries
so as to develop rational distribution and structures. We
shall continue to develop commercial outlets and services
and expand tourism and intermediary services such as information
and consulting services, standardize and develop finance and
insurance, and guide the real estate sector onto a path of
sound development. We should amplify the important role of
the service industry in raising efficiency, increasing employment
opportunities in urban and rural areas and making the people's
life easier.
Third, promote a coordinated development of regional economies.
The general requirement in this regard is to correctly handle
the relationships between the overall development of the national
economy and the development of regional economies, and to correctly
handle the relationships between the efforts to develop regional
economies and the efforts to give full scope to the initiatives
of all provinces (autonomous regions and municipalities) in
accordance with the principles of unified planning and overall
arrangements, proceeding from actual conditions, displaying
advantages and advocating division of labor and coordinated
development. We must, according to the laws governing the market
economy, make further efforts to establish and develop a number
of economic zones that transcend administrative boundaries,
with major cities and vital communication lines as the basis.
Disparate development of different regions is a basic condition
in China. It is also a common phenomenon in the course of
the economic development of a big country. Since the implementation
of reform and opening, all regions in the country have achieved
much development of their economies. But as the speed of development
has varied, the disparities among the regions have been widened
to a certain extent. During the ninth Five-Year Plan period,
we shall pay more attention to the development of the central
and western parts of the country, introduce policies conducive
to slowing down the widening of regional disparities and strive
to narrow them, the policies and measures to be adopted by
the State will include: stepping up resources surveying in
the central and western parts of the country, giving priority
to resource development and infrastructure projects and gradually
increasing financial support to these regions and the investment
in their construction; adjusting the distribution of the processing
industries by guiding the transfer of resource-processing
and labor-intensive industries to the central and western
parts of the country; rationalizing the prices of resources
products so as to enhance the self-development capabilities
of the central and western regions; improving the investment
environment in the central and western parts of the country
and directing more foreign investment towards these regions;
strengthening economic association and co-operation between
the eastern and the central and western parts of the country;
encouraging the eastern part to invest more in the central
and western parts and directing talented personnel flow towards
these regions. Old enterprises in the Northeast and other
regions should accelerate their transformation and readjustment
in order to fulfill a greater role in the economy. The State
should giver them necessary support. Regional disparity is
a product of history and it will take time to narrow it. Fundamentally
speaking, to allow regions capable of development to progress
faster is favorable for enhancing the economic strength of
the country and for helping underdeveloped regions in developing
their economies. The eastern part of the country should utilize
its advantages and should provide new experience of the nation
concerning changing the mode of economic growth, up-grading
industrial structure, developing an export-oriented economy
and promoting a healthier development of the economy. The
central and western parts of the country have a great potential
for development. So long as they accelerate their economies,
they can certainly accelerate development and some of them
may even overtake the currently more developed regions.
Fourth, strive to maintain macroeconomic stability. The
present price rise margin is still on the high side. This,
in addition to the continued efforts required to rationalize
prices during the ninth Five-Year Plan period, will result
in heavy pressures in respect to price rises. Therefore, we
must make inflation control the number-one task in our macroeconomic
control in order to avoid big fluctuations in the economy.
Based on an overall analysis of conditions in all sectors
of the economy, we have set the objectives of macroeconomic
control for the ninth Five-Year Plan period as the following:
about 8 percent average annual economic growth; a 30 percent
rate of investment in fixed assets, and marked drop in the
margin of price rises, which we must, first of all, try to
keep lower than the rate of economic growth. We must continue
to tighten and improve macroeconomic control and regulation.
We must maintain a reasonable scale of investment in fixed
assets and in ongoing construction projects, intensify adjustment
of the investment structure and increase investment returns.
We must continue the appropriately tight financial and monetary
policies. The state is now experiencing financial difficulties.
As a first step in ameliorating this financial situation,
we must continue our efforts to improve the taxation system,
readjust certain tax rates, broaden tax sources, abrogate
tax reductions and exemptions, strengthen tax collection and
management, increase income and cut-down spending, gradually
reduce deficits and realize a basic balance in revenue and
expenditure. We must control the total money supply as appropriate
so as to maintain stable currency. We must restructure loans
in accordance with industrial policies and credit principles,
and increase efficiency in the use of funds. We must maintain
an appropriate equilibrium in the balance of payments and
further enhance our capacity to make international payments.
Fifth, continuously raise the people's living standards
in both urban and rural areas. This is the very starting
point and the final goal of our modernization drive. During
the ninth Five-Year Plan period, urban residents' per capita
income spent on living expenses after allowing for price rises
is expected to increase by about 5 percent annually and the
per capita net income of farmer is expected to increase by
about 4 percent annually. We must open up more channels for
employment in both town and country so as to increase opportunities
for employment and re-employment. We must pay attention to
improving the quality of life. While giving priority to the
solution of the housing problem, we must strive to improve
communications, telecommunications, the water supply and the
environment, develop social services, build more public welfare
facilities and enrich the cultural life of the people in both
urban and rural areas. Although there has been major development
in our economy in recent years, ours is still a developing
country. It will take decades effort by the entire nation
to realize modernization. We must provide proper guidance
in respect to consumption and develop a consumption structure
and mode that are compatible with our national conditions
so that the improvement in the people's living standards will
be based on economic development and the increase in labor
productivity.
It will be an arduous task in the ninth Five-Year Plan period
to improve the lives of poverty-stricken people, and in particular
to provide adequate food and clothing for the rural poor.
Poverty-stricken areas should carry forward the spirit of
braving hardships in pioneering undertaking and eliminate
poverty and become prosperous mainly by relying on their own
efforts. governments at all levels central or local, must
step up the effort to assist poor areas and earnestly implement
the anti-poverty program. They should increase, manage well
and make good use of all funding for assisting poverty-stricken
areas. They must strengthen efforts to assist poor areas in
development. We should assist the people in those regions
stricken by serious natural disasters to help themselves through
production and rebuilding their homeland, and pay great attention
to supporting economic development in old revolutionary areas.
At the same time, efforts must be made gradually to establish
a system whereby we can ensure minimum living standards for
the urban residents and help ease the trying circumstances
of the urban poor.
To modernize our national defense is one of the important
tasks in our country's modernization drive. In order to safeguard
the security of the country, carry out the strategy of active
defense and take the road of fewer but better troops, which
is characteristic of China, we must accelerate the modernization
of national defense and increase our defense strength. We
should attach great importance to strengthening the army through
technology, enhance research in defense-related science and
technology, base the development of arms and other military
equipment of our own strength, give priority to developing
arms and equipment needed for defense operations under high-tech
conditions and lay stress on developing new types of weapons
and equipment. We should continue restructuring national defense-related
scientific research and the national defense industry, integrating
military with civilian purposes, combining production of peacetime
products with wartime products, developing products for civil
use such as ships, planes and satellites with the facilities
of a high-tech war industry, and gradually establishing an
industrial operation system and a modernization system for
national defense which are adapted to the development of a
socialist market economy. We must strengthen the building
of the people's armed police. We must carry out education
in national defense. We must do a still better job of encouraging
the army to support the government and cherish the people,
and encourage civilians to support the army and give preferential
treatment to families of servicemen and martyrs so as to consolidate
the unity of the army and government and the unity of the
army and the civilians.
IV. Accelerate the Restructuring of the Economic System
Centering on the Reform of Enterprises
Many problems require solutions if we are to establish a socialist
system of market economy by the end of this century. The task
is arduous and time is passing. We must be bold in exploring
and blazing new trails and push ahead with the reform and
opening up in a down-to-earth manner and with greater determination
and vigor.
First, establish a modern enterprise system and do a good
job in the reform and development of state-owned enterprises.
This is the key to initially setting up a socialist system
of market economy. We should set up a modern enterprise system
at most large and medium-sized backbone State-owned enterprises
by the end of the ninth Five-Year Plan period, in conformity
to the requirements of "clearly established ownership,
well-defined power and responsibility, separation of enterprise
from administration, and scientific management." We must
continue to do a good job in experimental work at the enterprises
designated by the central and local governments and be sure
to make a breakthrough in solving difficult or key problems.
Overall consideration and coordinated progress are required
in solving those problems relating to the inner mechanism
and outer environment of the enterprises as well as to the
problems inherited from the past. Practical successes must
be summarized and these ways and means should be popularized
in a timely manner in order to promote the reform of other
enterprises. Pilot urban reform projects should be combined
with the reform of enterprises.
In the reform of state-owned enterprises, we must aim at
running well the State-owned economy as a whole. We must give
priority to key points and provide specific instructions.
The state must, with concentrated efforts, do well in the
reform and development of 1,000 large state-owned enterprises
and enterprise groups in the near future, transforming them
into corporate entities and market competitors that operate
independently, assume responsibility for their own profits
and losses, and exercise self-restraint in their own development
so that they can play a backbone role in the national economy.
All the provinces, autonomous regions or municipalities directly
under the central government should also do a good job of
running a number of backbone State-owned enterprises. The
State will appropriate a special fund during the ninth Five-Year
Plan period to encourage the merging of enterprises, offset
debts incurred by bankrupt enterprises and turn a considerable
portion of debts resulting from the switch from appropriations
to loans into State capital funds so as to lower the liability-asset
ratio of enterprises. All enterprises must gear up production
to market demand, build up their business credibility and
reduce and avoid debt default. We should reinvigorate smaller
state-owned enterprises by way of re-organization, association,
merger into joint-stock partnership, leasing, contractual
operation or sell-out, as their specific circumstances permit.
Experience in some places demonstrates that after-reform or
re-organization, most small State-owned enterprises have remained
state-owned or collectively-owned, that is, a part of the
public sector of the economy, different in form only. Only
a small number were sold to private enterprises or individuals.
We should combine reform, re-organization and transformation
of enterprises with strengthening of management, and combine
internal reform of enterprises with necessary external reform.
All enterprises must wholeheartedly rely on the working class,
consolidate the leading body, change the way of operation,
set up a scientific management system, tap their inherent
potential to the full, accelerate technological progress,
produce marketable products and improve performance. We must
ensure that leaders of enterprises have the power to direct
production and operation while establishing a necessary and
sound supervision system, We must work out and put into effect
corresponding measures to deepen the reform of enterprises
and create conditions to ensure multi-channel dispersion of
redundant enterprise staff and workers and rid enterprises
of the social service functions they have been undertaking.
Urban and rural collective economy is an important component
of the publicly-owned economy. We must make rigorous efforts
to push ahead with the reform and development of collectively-owned
enterprises. We should also continue to develop the non-public
sector of the economy, including the individual and private
sectors, strengthening guidance and management, so that it
can play its useful supplementary role.
Second, actively cultivate a unified and open market system
with orderly competition. In developing a socialist market
economy, positive but cautious steps must be taken to foster
a comparatively perfect money market as well as markets in
such key areas as real estate, labor, technology and information.
We should continue to improve the commodity market, developing
chain-store operations, the proxy system and other new forms
of operation and marketing. The purchasing and marketing and
the reserve systems for such important products as grains
should be improved. We should strengthen market management
and inspection of product quality, improve circulation order,
and create a climate for fair competition so as to safeguard
the legitimate rights and interests of producers and consumers.
We should further renovate the investment system. We shall
establish the major investor system and the capital system
and gradually develop fund-raising through the market. When
an enterprise acts as the major investor, the enterprise and
the financial institution undertake the risk and liability
for the investment. When a government organization or social
welfare organization acts as the major investor, its risks
and liabilities must also be defined. All the incipient should
be held responsible. The State will invite public bidding
for new key construction projects.
Third, make necessary adjustments in the distribution
of personal income and establish and improve the social security
system. We shall persist in and improve the system in
which distribution according to work is primary and in which
a variety of modes of distribution co-exist. We shall establish
a rational salary system in accordance with the principle
of giving priority of efficiency and taking fairness into
consideration, and gradually perfect a salary system suited
to enterprises, undertakings and administrative institutions.
The State protects lawfully earned income, outlaws other income
and takes strong measures against illegitimate competition;
it adjusts excessively high income through perfecting the
personal income tax system and levying other necessary taxes.
We shall, by legal means and distribution policy, coordinate
the relations in income distribution between urban and rural
areas and among different regions and trades, as well as between
different social groups, gradually solving the problem of
the excessive disparity in distribution.
During the Ninth Five-Year Plan period, we must step up the
reform of old-age insurance, unemployment insurance and health
insurance systems. We must establish a multi-tiered social
security system which is compatible with China's national
conditions by developing relief programs, social welfare,
undertakings which provide special care and jobs for disabled
servicemen and family members of revolutionary martyrs and
servicemen, and social mutual assistance, and by encouraging
personal savings. The expenses for old-age and health insurance
for staff and workers in cities and towns shall be borne jointly
by the state, the work unit and the individual, integrating
overall social planning with personal savings. We must actively
develop commercial insurance to give full scope to its supplementary
role in social security. We shall enlarge unemployment insurance
coverage by establishing a system combining unemployment compensation
with re-employment opportunities. Social security funds of
different types should be raised from a variety of channels,
attentively managed and put to good use. We must actively
press ahead with the reform of the housing system, build "adequate
housing projects" and quicken the commercialization of residence
housing.
Fourth, alter the functions of the government, and strengthen
the State's macro-control and regulatory capability. Governments
at all levels should earnestly alter their functions according
to the requirements of developing a socialist market economy,
separating their administrative functions from enterprise
management, strengthen the self-improvement of government
departments, simplify the administration and raise their managerial
level and work efficiency. The central government should employ
mainly economic means as well as legal means supplemented
by necessary administrative means to exercise macro-control
over the national economy. We should deepen the reform in
the planning system, try to keep an approximate balance between
total demand and total supply and accelerate the optimization
of economic structure through formulating and implementing
development strategies, targets of macro-control and economic
policies. It is necessary to improve the functions of finance,
increase the proportion of financial revenue in the gross
national product and raise the proportion of revenue collected
by the Central Government from the financial revenue of the
whole country, gradually implement a standardization of the
payment transfer system, and put the government's debts, both
domestic and foreign, under unified management. We must tighten
financial and economic discipline and strengthen management
of extra-budge tarry funds, intensify the central bank's function
of regulating and controlling money supply and strengthen
its supervision and control over financial institutions so
as to guard against financial risks. We should make efforts
to further readjust and reform the government setup, gradually
transforming comprehensive economic departments into authoritative
macro-control organs with unified functions and gradually
turning specialized economic management departments into economic
entities without government functions, into state-authorized
firms engaged in operating State assets, or into management
organizations of various trades. Other government departments
should also make rational adjustments. We must establish a
system for the management, supervision and operation of State
assets, with a clear definition of powers and responsibilities
so as to preserve and increment the value of state assets.
Fifth, open wider to the outside world. We should make
full use of domestic and international resources and markets,
opening wider to the outside world. During the ninth Five-Year
Plan period, in order to meet the requirements of developing
a socialist market economy, we should establish in the main
a unified and standardized system of foreign economic affairs
in line with generally accepted international practices in
the economic field. The State's basic policy for the special
economic zones and the Shanghai Pudong New Area will remain
unchanged, while certain readjustments and improvements will
be made in some specific rules and regulations in the course
of developing a socialist market economy. The special economic
zones should scale new heights by achieving still more and
better results. All special economic zones and open coastal
cities and areas should actively engage in international economic
co-operation and serve as an example and a driving force for
economic development in surrounding areas and the rest of
the country. Those areas along main communications lines,
the Yangtze River and borders as well as those major cities
in the hinterland should bring their own advantages into full
play, effectively promote opening-up and stimulate economic
development and invigoration. We should gradually open the
domestic market as required by reform and development. We
should open, step by step, such services as finance, commercial
outlets and tourism. We should also do a good job of recruiting
overseas intelligence.
We should continue to adopt the strategy of a multi-outlet
market, readjust and improve the mix in export trade, putting
stress on improving the quality and increasing the added value
of export commodities and providing sound post-sale services.
On the basis of consolidating the existing markets, we should
open up new markets and broaden the channels for export. We
should continue to reform and improve the foreign trade management
system by persisting in the principles of unified policy,
fair competition integration of industry with trade and practice
of the proxy system.
We shall continue to use foreign funds actively, rationally
and effectively, with emphasis placed on better results and
higher levels. We shall gradually give foreign-funded enterprises
the same treatment as their Chinese counter parts, standardize
the taxation system and levy taxes that are fair and reasonable
to both Chinese and foreign enterprises, thus creating conditions
for them to compete on an equal footing. We should actively
guide and channel foreign funds to basic projects in the areas
of energy, communications and agriculture and to the technical
transformation of old enterprises.
Opening to the outside world is a firm policy of our country.
Developing economic and technological co-operation with foreign
countries not only benefits China, but also greatly contributes
to the world's economic development. Some Western countries
are bent on excluding China from the World Trade Organization.
Their actions run counter to the purposes of this international
organization and also impair its universality and impartiality.
Nevertheless, people will see that there is absolutely no
force on earth that can prevent China from developing economic
and trade relationships with other countries and regions of
the world.
V. Implementing the Strategies of Developing the Country
by Relying on Science and Education and of Achieving Sustainable
Development
Implementing these two major strategies is of vital importance
for economic development in the next 15 years and for the realization
of the modernization drive. We should speed up progress in science
and technology, give priority to the development of education,
control population growth, rationally develop and utilize resources
and protect the ecological environment so as to achieve a coordinated
and sustainable economic and social development.
Accelerating the development of science and technology and
adapting them to the needs of economic construction.
Nowadays, the role of science and technology as the primary
productive force is becoming so pronounced that they have
become the decisive factors in promoting economic and social
development and in making China a prosperous and powerful
country. Economic development must rely on science and technology,
and our work in science and technology must be adapted to
the needs of economic development. To do a good job in this
regard, we should do the following: First, we should promote
the development and application of technologies, promote the
commercialization of scientific and technological achievements
and put them to use in production, combine development of
technology through our own effort with introduction and assimilation
of overseas advanced technology and concentrate on solving
problems concerning major and key technologies affecting our
economic and social development. Second, we should vigorously
develop high and new technologies and the related industries,
striving to approach or reach the world's most advanced level
in some important areas, transform traditional industries
with new and high technology and run well the high technology
industrial development areas. Third, we should strengthen
basic research, scale the heights of scientific and technological
development in fields on the cutting edge of science and technology
and try to effect breakthroughs in areas where we enjoy superiority.
In proceeding with social undertakings, we should step up
research and application of new technologies in such areas
as family planning, prevention and treatment of major diseases,
environmental protection, multiple uses and recycling of resources
and the prevention and reduction of natural calamities. We
should deepen the reform of the management systems in science
and technology and accelerate the integration of scientific
research, development and production with the market. In accordance
with the principle of "concentrating on scientific and
technological research and at the same time encouraging the
commercialization of research results," we should rationalize
the flow of personnel and optimize the management structure
in scientific research. We should facilitate association between
research institutes, institutions of higher learning and enterprises.
Large enterprises should be encouraged to establish technology
development centers and to become the main force in the development
of technology. Further efforts should be made to protect intellectual
property rights and give scope to the role of the patent system.
Making education a priority and improving the cultural
level of the entire population.
This is a task of long-term importance. We should make
nine-year compulsory education universal and eliminate in
the main illiteracy among young and middle-aged people by
the year 2000 throughout China, and we should ensure the funding
and teachers required for this purpose. We should increase
financial support to poverty-stricken areas. We should develop
higher education as appropriate and focus on improving instruction
and raising the overall efficiency. We should concentrate
on a number of institutions of higher learning and disciplines.
Vigorous efforts should be made to develop different types
and levels of vocational and adult education. We should optimize
the educational structure so that regular and vocational education
develops proportionately. We should accelerate education reform
and explore systems and models of running schools which meet
the requirements of reform and development in our country.
We should encourage non-governmental sectors to run schools
and gradually establish a new educational system which will
be primarily government-run but will include schools operated
by different sectors of society. We should promote various
forms of joint operation and management of schools and judiciously
allocate resources for education. All types of schools at
all levels must strengthen ideological and political education
and improve the quality of students. Efforts should be made
to focus on consolidating the ranks of teachers, improving
teacher competence and improving teachers' work, study and
living conditions. We should orient our educational work to
the needs of modernization, the world and the future, and
train a large number of qualified personnel.
Persisting in the basic state policy of family planning
and strictly controlling population growth.
Our goal is to keep the total population under 1.3 billion
by the year 2000 and under 1.4 billion by the year 2010. This
is an arduous task. Governments at all levels should continue
to give top priority to family planning and apply and improve
the system under which government at all levels are responsible
for attaining given objectives in birth control efforts. We
should stabilize and conscientiously enforce policies on family
planning, encouraging late marriages, late childbirth, prenatal
and postnatal care and one child for each couple. We should
continue to publicize the basic State policy for family planning
in order to enhance the nation's awareness of the population
problem. In our effort to control population growth, we should
focus on rural areas and on the floating population. Family
planning should be incorporated into the farmers' endeavors
to develop the rural economy, to shake off poverty and become
prosperous, and to refine family life and make it more enjoyable.
We should study the problems of the aging of population and
adopt measures to solve them accordingly.
Strengthening environmental and ecological protection
and rationally developing and using natural resources.
This is an important matter, a meritorious service to
be accomplished in our time which will benefit future generations.
Our country's per-capita arable land, water and forests and
some mineral resources are below average. Since our country
is now rapidly promoting industrialization and since we have
adopted methods of extensive production and operation, waste
of natural resources and environmental pollution are quite
serious. With population growth and economic development,
this problem will probably become even worse. We should make
greater efforts to conserve and rationally develop and use
our natural resources, including land, water, forests, grass-lands,
minerals and biological resources according to the law, and
do all we can to reduce waste. We should develop marine resources
and improve the system of paid use and pricing of natural
resources as quickly as possible and establish systems for
economic compensation for the renewal of natural resources.
We should adhere to the policy of synchronizing the planning,
implementation and progress of economic development, urban
and rural construction and environmental protection, and ensure
that all construction projects meet the requirements for environmental
protection. Government at all levels should tighten environmental
management according to the law, and in particular, they should
effectively control and deal with industrial pollution and
improve the urban environment. We should actively develop
ecological agriculture, accelerate the comprehensive control
of soil and water loss in afflicted areas, strengthen the
improvement of grasslands and sand prevention and control,
control pollution of farmland and water and strive to improve
the ecological environment. By the year 2000, we should try
to bring under initial control the aggravating pollution and
ecological damage, and the environmental quality in some cities
and areas should have improved to some extent.
VI. Developing Socialist Culture and Ideology and Strengthening
Democracy and the Legal System
The magnificent goal of our modernization drive is to
build a prosperous, powerful, democratic and cultured socialist
country. While developing the economy, we must give priority
to the need to develop socialist culture and ideology and
strengthen democracy and the legal system so as to promote
all-round social progress.
Conscientiously promoting ethical and cultural progress.
In the process of developing a market economy and on condition
that various ideologies and cultures in the world interact,
it is of particular importance to develop socialist culture
and ideology. Socialist culture and ideology include education,
science, culture and ethics. Government at all levels should
incorporate the development of socialist culture and ideology
into their overall plans for social development, increase
investments and provide material guarantees to this end, and
conscientiously attach equal importance to economic development
and the development of socialist culture and ideology. We
must never seek temporary economic development at the cost
of cultural and ideological progress.
Ethical progress determines the nature and orientation in
the development of culture and ideology. We must make unremitting
efforts to educate cadres and other people in Deng Xiaoping's
theory of building socialism with Chinese characteristics,
foster common ideals and aspirations in the whole society
and further the cohesiveness of the nation. We should continue
to vigorously conduct ideological education in patriotism,
collectivism and socialism, arm people's minds with scientific
theory, guide them in correct public opinion, remold them
with lofty ideals, inspire them with excellent literary works
and train socialist citizens who have lofty ideals, moral
integrity, a good education and a strong sense of discipline.
We should carry forward the traditional virtues of the Chinese
nation, draw on the achievements of human civilization and
resist the corrosion of decadent capitalist and feudal ideas.
We should emphasize the importance of education in social,
occupational and family ethics, and develop interpersonal
relationships of equality, unity, fraternal love and mutual
aid. We should carry on the fine tradition of working hard
to build up the country and being diligent and thrifty, oppose
extravagance and waste, advocate scientific, civilized and
healthy lifestyles and create a society with high ethical
standards.
The reform and opening to the outside world create favorable
conditions and make an even higher demand for cultural activities.
We must adhere to the principles of "serving the people
and the cause of socialism" and of "letting a hundred
flowers blossom and a hundred schools of thought contend,"
giving full scope to the theme of our times while advocating
diversity and promoting all-round cultural progress. Writers
and artists should plunge into the thick of life and strive
to create excellent works which are worthy of this great era.
The press and publicity work should persist in the correct
orientation of public opinion and encourage people to plunge
into the modernization drive. We should improve economic policies
concerning cultural products. We should build libraries, cultural
centers, museums, archives, science and technology halls and
other cultural facilities, putting more effort into protecting
cultural relics. Great efforts are required to popularize
science and cultural, do away with superstitious activities
and change old customs and habits. It is necessary to increase
cultural activities in communities, enterprises, villages
and towns and on campuses and to enrich cultural life at the
grass-roots level. Under the guidance of Marxism-Leninism,
Mao Zedong Thought and Deng Xiaoping's theory of building
socialism with Chinese characteristics, the personnel working
in the field of social sciences should concentrate on studying
the major issues concerning the theory and practice of reform
and development in China and make new contributions to the
modernization drive.
Promoting public health and sports and improving people's physical
fitness. We should carry out the principle of giving top priority
to the prevention of disease and attach equal importance to
health care and medical treatment. We should actively develop
health care and ensure that basic health care is gradually provided
for everyone during the ninth Five-Year Plan. We should attach
importance to rural medical and health work, develop the system
of co-operative medical services, perfect a complete network
of health care at the country, township and village levels and
improve the quality of drinking water and hygienic standards
in rural areas. We should emphasize the importance of health
education and intensify efforts for the prevention and treatment
of contagious, occupational and endemic diseases. We should
revitalize traditional Chinese medicine. Vigorous efforts should
be made to develop new medicines and to strengthen management
of the medical market. We should develop physical culture and
sports, carry our the body-building plan for all Chinese people,
improve people's physical fitness and raise the level of competitive
sports.
Improving socialist democracy and the legal system.
We should continue to promote political restructuring,
establish and improve socialist democracy and guarantee the
rights of the people as masters of the country. Government
at all levels must conscientiously accept supervision by the
people's congresses and their standing committees, listen
to the opinions of the masses, actively support the work of
the people's political consultative conferences and listen
to the views of democratic parties, personages without party
affiliation, experts and scholars. We should support the trade
unions, the Communist Youth League, the women's federations
and other mass organizations in their work so that the people's
wishes can be fully expressed in the work of the government.
We should try hard to do a good job in overseas Chinese affairs.
Efforts should be made to establish and improve necessary
systems and procedures and ensure that the decision-making
process is more scientific and democratic. We should continue
to improve the self-government of both urban and rural people,
strengthen political power at the grass-roots level, enhance
democracy and economic supervision at the grass-roots levels,
and fully arouse the initiative of the people.
An improved legal system, the management of state affairs
according to law and the building of a socialist country with
a sound legal system constitute an important guarantee for
realizing long-term political stability in the country. During
the ninth Five-Year Plan the State Council will lose no time
in drafting a number of important laws based on the needs
on reform and development and submit them to the Standing
Committee of the National People's Congress for examination
and approval. It will formulate some administrative laws and
statutes to standardize and safeguard sound social and economic
development. We should consolidate the economic order by strengthening
the execution of economic laws and the enforcement of administrative
laws and severely cracking down on such crimes as tax evasion,
tax fraud, smuggling, financial fraud, manufacture and distribution
of fake or shoddy foods and infringement of intellectual property
rights. We should continue to implement the program to educate
the public in laws so that the populace can study laws and
will obey them and become more aware of the importance of
the legal system and of their position therein as citizens.
Governments at all levels should manage economic and social
activities according to law. We must safeguard the unity and
inviolability of the laws, statutes and policies of the State
and ensure that our laws are observed and strictly enforced
and that lawbreakers are punished. During the ninth Five-Year
Plan, we should complete the survey of boundaries between
provinces and between counties.
Making greater efforts to keep government employees honest
and industrious and to combat corruption.
This is a long-term and arduous task that has a bearing
on the success of the modernization drive in China. Government
organs, and the departments under the State Council in particular,
should set an example by performing their duties honestly
and conscientiously accept supervision. Leading cadres, and
especially high-ranking officials, should do the same. The
leaders of state-owned enterprises and undertakings should
act judiciously and abide by the law. We should intensely
investigate cases of violation of the law and discipline,
especially major cases, and resolutely put an end to unhealthy
tendencies in government departments, trades and professions.
Those who abuse their power for personal gain and commit bribery
or accept bribes in violation of the law should, without fail
and regardless of rank, be punished according to law. We should
improve judicial work, supervision and auditing. We should
establish and improve the system for guiding government employees
to be honest and industrious as well as for supervision and
inspection, and intensively conduct ideological education,
seeking both temporary and permanent solutions so as to prevent
and eliminate corruption. Public servants should keep in close
touch with the masses. They should avoid a bureaucratic style
of work, formalism or deception and be on guard against boasting
and exaggeration. They should improve their competence, work
diligently, refrain from indulging in empty talk and serve
the people wholeheartedly so as to promote fine government
conduct and bring about a turn for the better in the general
conduct of society.
Safeguarding social stability and national security.
It is an important obligation of the government at all
levels to maintain sound public order and a healthy social
environment and to ensure that people live and work in peace
and contentment. We should take effective measures to severely
crack down on violation crimes, trafficking in drugs, hoodlums,
underground gangs and various criminal activities. We should
continue efforts to eliminate pornography and illegal publications
and wipe out prostitution and other social evils so as to
purify the social environment. We should improve all facets
of public security and uphold the system which makes leaders
responsible for this work, combine public security department
activities with those of the masses to ensure that all public
security measures are implemented at the grass-roots level,
and solve all problems as they arise. We should strengthen
management of the floating population, promptly settle civil
disputes and correctly handle contradictions among the people
so as to eliminate factors causing social instability. We
should improve the ranks of political and legal cadres as
well as the political awareness and professional competence
of the police. We should adopt a strict safety management
system to prevent major conflagrations and other fatal accidents.
It is essential to enhance our vigilance, guard against and
foil attempts by hostile forces to infiltrate, subvert and
split China or to carry out sabotage in the country, so as
to safeguard our national security.
It is in the fundamental interest of all the Chinese people
to consolidate and develop ethnic unity. Ours is a multi-ethnic
country. It is necessary to maintain and develop the relations
of equality, unity and mutual assistance between our ethnic
groups so that all of them can achieve prosperity and progress.
Since China adopted the policy of reform and opening to the
outside world, social and economic development in areas inhabited
by the ethnic minorities has been accelerated. During the
ninth Five-Year Plan, we should give greater financial, technical
and educational support to ethnic minority areas and provide
them with more trained personnel so as to promote their reform
and opening up and social and economic development. Economic
development and improvement of the living standards of the
people will lay a firmer foundation for further consolidating
ethnic unity. It is necessary to uphold and improve regional
autonomy for ethnic minority areas and equal rights for all
ethnic groups. We should make great efforts to train cadres
and all types of talented people of ethnic minorities. We
should unswervingly safeguard the unification of the motherland
and ethnic unity and resolutely oppose any acts designed to
split the country or damage ethnic unity. We should fully
implement the policies on religion, safeguard our citizens
freedom of religious belief, educate people of different religious
beliefs to love the country and their religions, strengthen
management of religious affairs according to law and vigorously
help various religions adapt to socialist society. The flourishing
economy and society in China have presented to all the ethnic
groups unprecedented opportunities to become prosperous. As
long as the people of all ethnic groups unite and work hard,
they will certainly have a bright future.
VII. Promoting the Peaceful Reunification of the Motherland
China will resume its exercise of sovereignty over Hong Kong
on July 1, 1997 and Macao on December 20, 1999. This will
be an important milestone in our effort to achieve the reunification
of the motherland. The Chinese Government will, as always,
implement the principle of "one country, two systems"
and make all the preparations necessary to this end in accordance
with the Basic Law of the Hong Kong Special Administrative
Region and the Basic Law Of the Macao Special Administrative
Region. We are ready to strengthen our co-operation with the
British and Portuguese governments on the basis of the Sino-British
Joint Declaration and the Sino-Portuguese Joint Declaration
so as to achieve a smooth transfer of government and maintain
long-term prosperity and stability in Hong Kong and Macao.
After China resumes the exercise of sovereignty over Hong
Kong and Macao, the current social and economic systems in
Hong Kong and Macao will remain unchanged. They will enjoy
a high degree of autonomy, and will retain their status as
free ports, and Hong Kong will retain its status as an international
financial, trade and shipping center. Today is March 5,1996.
There are 483 days left before we resume the exercise of sovereignty
over Hong Kong. Our compatriots both at home and abroad are
anticipating the coming of this great day with joy. The Preparatory
Committee of the Hong Kong special Administrative Region under
the National People's Congress has been established and concrete
preparations for the establishment of the Hong Kong Special
Administrative Region have begun. This is a great event in
our effort towards resuming the exercise of sovereignty over
Hong Kong. We are convinced that the Preparatory Committee
will certainly heed the opinions of personages from all walks
of life in Hong Kong and successfully accomplish its glorious
and sacred historic mission for the smooth transfer of government
in Hong Kong.
Over the past years, thanks to the efforts of compatriots
on both sides of the Taiwan Straits, personal contacts and
economic and cultural exchanges between the two sides have
developed considerable. It has been our consistent stand to
end the separation between the two sides of the Taiwan Straits
and accomplish the great cause of the peaceful reunification
of the motherland in accordance with the principles of "peaceful
reunification" and "one country, two systems."
The eight-point proposal on promoting the reunification of
the motherland put forward by President Jiang Zemin won warm
acclaim from Chinese people at home and abroad. Our struggle
against the attempts by some leading member of the Taiwan
authorities to create "two Chinas" or "one
China, one Taiwan" and to bring about the "independence
of Taiwan" demonstrates our determination and ability
to safeguard State sovereignty and territorial integrity.
The question of Taiwan is China's internal affair, and China
will brook no interference by outside forces under whatever
pretext and in friendly exchanges between Chinese and foreign
peoples and promoting economic, trade, scientific, technological
and cultural co-operation on the basis of equality and mutual
benefits. Since issues concerning boundaries left over from
the history between China and a few of its neighbors have
already been resolved, talks are being held on others and
agreements have been reached on still others for maintaining
peace and tranquility.
China and the great number of other developing countries
have sympathized with and supported each other in their struggle
to safeguard national independence and state sovereignty;
their traditional friendships have been consolidated and their
economic and trade relations further developed. China has
maintained good co-operative relations with regional organizations
in Asia, Africa and Latin America, and has worked with them
to safeguard the rights and interests of developing countries.
Since the drastic changes in Eastern Europe and the disintegration
of the former Soviet Union, we have respected the choices
made on their own by the people of the countries in that region
and have established and developed a new type of state-to-state
relationship with them on the basis of the Five Principles
of Peaceful Co-existence.
Sino-US relations have undergone serious difficulties, which
were entirely due to the unwise China policy of the relations
have improved to some extent but are still subject to fluctuation.
The relations between China and West European and other developed
countries have been restored and have improved on all fronts,
and economic an technological co-operation here has entered
a new stage of development.
As a permanent member of the United Nationals Security Council,
China has taken an active part in international affairs and
in the activities of the United Nations as well as in other
multilateral diplomatic activities. China has played an important
role in maintaining world peace, setting international disputes
through peaceful means, and in promoting economic and social
development throughout the world. China has taken an active
part in Asia-Pacific Economic Co-operation and attended the
First Asia-Europe Meeting. China successfully hosted the United
Nations' Fourth World Conference on Women. The just stand
and opinions China has always maintained on international
issues have won ever more extensive understanding and support.
At present, the world is still undergoing complex and profound
changes. In general, the international situation is becoming
more relaxed. The world is moving at a faster pace toward
multi-polarity, and a new pattern is becoming increasingly
clear. The international standing of the developing countries
has been further enhanced. Relations between the big powers
continue to undergo adjustments. It has become a common theme
in the world today that the world needs peace, countries want
stability and economic growth, and mankind desires progress.
However, the world is still plagued by contradictions. Hegemonism
and power politics are the root cause of turbulence in the
world. From time to time armed conflicts and even local wars
take place as a result of territorial disputes, national conflicts,
religious strife and other factors. The unfair and irrational
international political and economic order has yet to be changed.
The gap between the rich and the poor keeps widening. Maintaining
peace and promoting development whatever form. We are in favor
of and have consistently working for peaceful reunification,
but we shall not undertake to renounce the use of force. That
we shall not undertake to renounce the use of force is not
directed against our compatriots in Taiwan, but against the
schemes of foreign forces to interfere with China's reunification
and to bring about the "independence of Taiwan."
Under no circumstances should the status of Taiwan as part
of China be changed. The Chinese Government and people are
determined and able to safeguard the sovereignty and territorial
integrity of the motherland and would never allow the secession
of Taiwan from the motherland. No attempt to split the motherland
will succeed. We pin our hope on the people in Taiwan and
sincerely appeal to all Chinese including our compatriots
in Taiwan to unite and strive for the early reunification
of the motherland. History will always remember those who
made a contribution to the realization of the reunification
of the motherland.
VIII. The International Situation and China's Diplomatic
Work
Over the past five years, tremendous changes took place in
the international situation. While the old world pattern has
collapsed and a new one is yet to take shape, China has upheld
an independent foreign policy of peace, withstood the serious
test of the vicissitudes in the international situation and
achieved major successes in its diplomatic work. China has
improved and developed its good-neighborly facing governments
and peoples around the world.
China will continue unswervingly to pursue an independent
foreign policy of peace, develop friendly relations of co-operation
with all other countries and work for the establishment of
a just and rational new international political and economic
order. In international affairs, China will, as always, decide
its position and policies towards each case on its own merits.
China will not enter into alliance with any big power or bloc
of countries, nor will in handle state-to-state relations
by making ideology or social system the criteria. China firmly
opposes one country interfering in the internal affairs on
another country with excuses based on issues of nationality,
religion or human rights.
China will, as always, pursue a good-neighborly policy, maintain
peace and stability and promote economic co-operation in the
Asia-Pacific region. We shall develop our friendly relations
of co-operation with Asian countries. We shall maintain and
promote our traditional friendship with the Democratic People's
Republic of Korea. We shall develop long-term, stable friendly
relations with Japan while keeping in mind that past experience,
if not forgotten, can serve as a guide for the future. We
shall continue to develop friendly co-operation with Russia
and attach importance to letting the two economics complement
each other. We shall develop good relations with Central Asia
and other CIS countries. We shall continue to develop friendly
co-operative relations with countries in Southeast Asia, South
Asia and the South Pacific region as well as with all neighboring
countries.
It is a fundamental position in China's diplomatic policy
to strengthen solidarity and co-operation with the great number
of Third World countries. Efforts should be made to further
intensify exchanges with leaders of these countries so as
to deepen mutual understanding, and to increase consultation
and co-operation on international issues. China will continue
to provide developing countries with assistance to the full
extent of its capacity and to explore new ways of developing
mutually complementary economic, trade, scientific and technological
co-operation.
China is ready to further friendly relations of co-operation
with European and all other countries, expanding economic,
trade, scientific and technological co-operation with them
on the basis of seeking common ground while putting aside
differences and of equality and mutual benefit. Normal relations
between China and the United States not only serve the fundamental
interest of the two peoples, but also contribute to peace
and stability in the Asia-Pacific region and in the world
at large. The question of Taiwan has always, been the most
sensitive and important aspect of Sino-US relations. Only
when the principles enunciated in the three Sino-US joint
communiques are strictly obeyed and only when the two sides
respect each other and refrain from interfering in each other's
internal affairs will Sino-US relations achieve sound development.
China has all along been opposed to the arms race and in
favor of real disarmament. We believe that the countries with
the biggest nuclear arsenals should bear special responsibility
for arms control China stands for complete prohibition and
thorough destruction of nuclear weapons. We maintain that
nuclear states should conclude treaties stipulating that they
will undertake not to be the first to use nuclear weapons
and not to use or threaten to use such weapons, against non-nuclear
countries and regions. China will continue to take an active
part in the talks aimed at concluding a Comprehensive Test
Ban Treaty, and will take practical steps to promote international
arms control and disarmament.
It is clear to any unbiased person that China is an important
force for safeguarding world peace and regional stability.
China's development and growth constitute a contribution to
world peace and the progress of mankind; China will absolutely
not pose a threat to any country. The Chinese Government and
people are ready to make joint efforts with other governments
and people and to contribute to the creation of a better world.
IX. Striving to Do Well in the Work for 1996 and Making a
Good Start in the Accomplishment of the Ninth Five-Year Plan
Last year we achieved new success in the reform and opening
to the outside world and in economic and social development,
and we accomplished all the tasks set at the Third Session of
the Eighth National People's Congress. The gross domestic product
increased by 10.2 percent over the previous year, and the rise
in retail prices dropped from 21.7 percent to 14.8 percent.
We not only reduced price rise but also maintained rapid economic
development, achieving the targets for macro-control set in
early 1995. Despite serious natural disasters, total grain output
reached a little over 465 billion kilograms, an increase of
about 20 billion kilograms, and the output of major farm products
rose in varying degrees. Industrial structure readjustment continued,
the rate of growth in the State sector of the economy was raised
and the development of the central and western parts of the
country was accelerated. The total foreign trade volume amounted
to more than $200 billion, an increase of 18.6 percent. Actual
direct foreign investment came to more than $37 billion, and
the investment structure improved to some extent. The State's
foreign exchange reserves increased considerably and the exchange
rate for the renminbi remained stable. Economic restructuring
was steadily promoted, and important macro-economic reforms
were consolidated and improved. Experimentation with the modern
enterprise system and urban reform was carried out throughout
the country. We made progress in the reform of the social security
system with old-age and unemployment insurance as the main focus,
in the circulation system as well as in other supporting reforms.
The income of urban and rural residents increased in real terms,
their material and cultural lives continued to improve and their
personal bank savings increased by more than 800 billion yuan.
New success was achieved in science, technology, education and
all other social undertakings. Socialist culture and ideology,
democracy and the legal system were improved.
The year 1996 is the first year of the implementation the
ninth Five-Year Plan, so it is crucial to have a good start.
We should concentrate on changing the economic structure and
the mode of economic growth and plan and accomplish our work
on all fronts. We set the macro-control target for the rate
of this year's economic growth at 8 percent, while keeping
price rises at around 10 percent and fixing the rate of investment
in fixed assets at about 32 percent. We should consider curbing
inflation as the most important task for macro-control and
take effective measures to control rising prices. We shall
redouble our efforts to strengthen agriculture and try to
reap a good harvest. We shall promote the reform of State-owned
enterprises and strive to make breakthroughs in solving major
and difficult problems. We should continue to adopt appropriately
stringent financial and monetary policies, try to reduce the
deficit and control the scale of debt and the total money
supply. The import and export taxation policy has been modified
this year. We should seize this opportunity to make progress
in promoting economic exchanges and co-operation with other
countries, in higher economic returns and in opening wider
to the outside world. We should strengthen comprehensive co-ordination
in the operation of the economy and prompt solution of outstanding
conflicts and problems arising in production, construction
and circulation. We should vigorously rectify the economic
order by tightening financial discipline, combating economic
crimes, standardizing the market and earnestly lightening
the farmers' burden. We shall improve socialist culture and
ideology, vigorously fight corruption, take effective measures
to crack down on criminal activities and try to improve all
facets of public security. As we have now established the
major policies and principles, government at all levels should
conscientiously carry them out and ensure that there is a
new atmosphere in all aspects of their work.
The 21st century is approaching. In the 20th century than
is now passing away, the Chinese people have achieved two
earth-shaking accomplishments under the leadership of the
Communist Party of China. First, in the first half of the
century they achieved the epoch-making victory in their struggle
for national liberation and in the people's democratic revolution.
Second, in the second half they made decisive strides in social
reform and in making China prosperous and powerful. These
feats are unprecedented in the history of the Chinese nation.
Thanks to the three five-year plans fulfilled since China
began to implement the policy of reform and opening to the
outside world, tremendous change has taken place in the appearance
of the country. We believe that, following the implementation
of the next three five-year plans and after the requirements
set in the Outline have been met, our country will assume
an even newer look. Through the next 50 years of efforts,
our great motherland will emerge in the world as a modern
country with a new look. Chairman Mao Zedong said, "The
people, and the people alone, are the motive force in the
making of world history." Under the guidance of Comrade
Deng Xiaoping's theory of building socialism with Chinese
characteristics, and the basic line of the Party and under
the leadership of the Party Central Committee with Comrade
Jiang Zemin as its core, so long as the people of all nationalities
in China unite and work hard and creatively, we shall certainly
fulfill the ninth Five-Year Plan and the Long-Range Objectives
to the Year 2010 and win even greater victories in the socialist
modernization drive.
(Delivered
at the Fourth Session of the Eighth National People's Congress
on March 5, 1996)
|
