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REPORT ON THE IMPLEMENTATION OF THE 2010 PLAN FORNATIONAL ECONOMIC AND SOCIAL DEVELOPMENT
AND ON THE 2011 DRAFT PLAN FOR NATIONALECONONUCANDSOCIALDEVELOPMENT
Fourth Session ofthe Eleventh National People sCongressMarch 5,2011
National Development and Reform Commission
The final version of this report in Chinese will be approved at this session andreleased by Xinhua News Agency.
Fellow Deputies,The National Development and Reform Commission has been entrusted by
the State Council to report on the implementation of the 2010 plan and on the2011 draft plan for national economic and social development for yourdeliberation and approval at the Fourth Session of the Eleventh NationalPeople's Congress (NPC), and also for comments and suggestions from themembers of the National Committee of the Chinese People's PoliticalConsultative Conference (CPPCC).
I. Implementation of the 2010 Plan forNational Economic and Social Development
Last year, the environment for China's economic and social developmentwas extremely complex, and there were various extremely severe naturaldisasters and major challenges. Under the firm leadership of the CommunistParty of China (CPC), the people of all our ethnic groups thoroughly applied theScientific Outlook on Development. Based on the plan for national economicand social development adopted at the Third Session of the Eleventh NPC, westeadfastly implemented the package plan for responding to the global financialcrisis, accelerated the transformation of the pattern of economic development,and consolidated the good momentum in economic and social development.Overall, the plan for 20 I0 was implemented well, and the main objectives andtasks set forth in the Eleventh Five-Year Plan were successfully accomplished.
1. Steady and rapid economic growth was maintainedEconomic performance was generally stable, with significant improvement
in quality and efficiency. GDP for the year was 39.8 trillion yuan, an increase of10.3%, and 2.3 percentage points higher than the target. Primary, secondary andtertiary industries grew by 4.3%, 12.2% and 9.5% respectively, and 0.3, 4 and0.8 percentage points higher than targeted figures. Value-added of industryamounted to 16 trillion yuan, up 12.1% and 4.1 percentage points higher thanthe target. By strengthening regulation and overall coordination of supplies ofcoal, electricity, oil, gas and transport, we were able to meet all the demands ofeconomic and social development and people's lives, demands fromdisaster-stricken areas and major events, and demands placed on us at crucialtimes. National revenue for 2010 was 8.3 trillion yuan, an increase of 21.3%.The deficit was 50 billion yuan less than the budgeted amount. The broadmoney supply (M2) increased by 19.7% and RMB loans totaling 7.95 trillionyuan were granted in 2010. The performance of enterprises continued toimprove, and the profits of large industrial enterprises reached 3.88 trillion yuan
in January through November, a year-on-year increase of 49.4%.
Figure 1GDP Growth in the Eleventh Five-Year Plan Period
Percent
16 r14.2
14
12
10
8
6
4
9.69.2
11.9
9.6
9.8
2
o LI--~--~---~-~-~--~-2006 2007 2008 2009 Q12010 Q22010 Q32010 Q4 2010
Domestic demand continued to expand, and the driving forces of economicgrowth became increasingly coordinated. Policies to stimulate consumerspending achieved positive results and the country's consumption potential wasfurther unleashed. Retail sales of consumer goods totaled 15.6998 trillion yuan,a year-on-year increase of 18.3%, and 3.3 percentage points higher than thetarget. A total of 77.18 million home appliances, an increase of 130%, were soldthrough the national program for subsidizing rural residents' purchase of homeappliances. A total of 18.06 million motor vehicles were sold, an increase of32.4%. Appropriate growth was maintained in investment and the investmentstructure was further improved. Fixed-asset investment across the countryamounted to 27.814 trillion yuan, up 23.8% from the previous year andexceeding the target figure by 3.8 percentage points. The plan to increaseinvestment by four trillion yuan over two years was successfully completed.Guidelines on encouraging and guiding the sound development ofnongovernmental investment were issued and implemented, which injected newvitality into investment from nongovernmental sources. In 2010,nongovernmental investment accounted for 51.1% of total fixed-assetinvestment in urban areas, 3 percentage points higher than the previous year.Consumption contributed 3.9 percentage points to economic growth, investment
2
contributed 5.6 percentage points, and net exports contributed 0.8 percentagepoints.
Figure 2Public Investment from the Central Government
from the Fourth Quarter of 2008 to 2010
Post-Wenchuanearthquake recovery andreconstruction (14.8%)
Major infrastructureprojects (23.6%)
Low-income housing, projectsto improve the wellbeing ofrural residents, and social
programs (43.7%)
Independent irmovation,economic restructuring, energy
conservation and emissionsreduction, and ecological
improvement (15.3%)
Overall price levels remained basically stable and markets were furtherstandardized. We implemented a number of measures to keep prices stable andimprove people's lives. We did a good job of stockpiling and releasing grain,cotton, meat, sugar and other important commodities; increased the varieties offresh and live agricultural products that qualify for the toll-free policy andextended the policy to all toll roads; improved the mechanism to adjust livingallowances for the poor in step with price changes, and therefore reduced theimpact of price rises on their lives; suspended or eliminated some charges andfees, reduced the levels of others and lowered drug prices, thereby easing theburden on enterprises and the people; and organized and launched campaigus torectify uureasonable charges and fees related to enterprises, electricity rates andprices of agricultural products, and to crack down on violations of intellectualproperty rights and on the production and sale of counterfeit or substandardgoods in order to create a well-ordered pricing and market environment. Overall,annual CPI rose 3.3%, meaning the target for price control was basicallyachieved.
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2. The agricultural foundation was consolidatedProduction ofgrain and other major agricultural products increased steadily.
Despite severe droughts, low temperatures, scant sunlight, and serious floods invarious areas, annual national grain output totaled 546.41 million tons, anincrease of 15.59 million tons, up 2.9% from the previous year, and rising for
.,the seventh consecutive year. Oilseed output was 32.39 million tons, up 2.7%.Livestock production was generally stable, the output of meat totaled 79.25million tons, up 3.6%, and the output of aquatic products was 53.66 million tons,up 4.9%. Due to bad climatic conditions in some areas as well as reducedacreage, the output of cotton was 5.97 million tons, down 6.3%, and the outputof sugar crops was 120.45 million tons, down 1.9%.
Figure 3Increases in Grain Output over Seven Consecutive Years
Millions of tons
560
540 528.709
546.41
2009 2010
We effectively implemented policies to strengthen agriculture and benefitfarmers. Annual central government spending on agriculture, rural areas andfarmers totaled 857.97 billion yuan, up 18.3% from the previous year. Thisincluded 192.8 billion yuan of central budgetary investment used in agricultureand rural areas, making up 49% of the total central budgetary investment. Wefurther intensified our efforts to protect fannland, improved over 1.3 millionhectares of rural land, and more than 300,000 hectares ofland was cultivated forthe first time, We fully implemented the plan to increase China's grainproduction capacity by 50 million tons, and intensified development of cotton,
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edible oil and sugar production bases as well as work on the crop protectionproject, the animal epidemic prevention system and the project to cultivatesuperior varieties and breeds. We formulated and carried out policies tointensify the construction of small and medium-sized water conservancyfacilities, promote agricultural mechanization and ensure the production andsupply of vegetables. We completed all tasks included in the plan of reinforcingreservoirs and started implementing the second round of projects to reinforcedilapidated small reservoirs. We supported the construction of distributioninfrastructure such as wholesale markets for agricultural products, grain andedible oils storage facilities, and cold-chain logistics for agricultural products.Compared with 2009, the average minimum purchase prices for wheat and riceincreased by 3 yuan and 6 yuan per 50 kilograms respectively; we successfullyimplemented a policy for temporarily purchasing and stockpiling soybeans andcanola seeds; and there were sufficient supplies of chemical fertilizers. The fourkinds of subsidies to grain growers amounted to 122.6 billion yuan.
Figure 4Central Government Investment in Agriculture, Rural Areas and Farmers
in the Eleventh Five-Year Plan Period
l3illions ofynan
1.000 r900
800 .
700I600 .
500
400
300
200
100
o2006 2007 200810 Central government investment in agriculture.
rural areas and farmers
857.97
2009 2010o Increase over
previous year
Rural working and living conditions continued to improve. In 2010, weprovided safe drinking water to an additional 61.86 million rural residents andto teachers and students at rural schools, making safe drinking water available to71.3% of the rural population. An additional 300,000 kilometers of electricpower lines were installed in the countryside. Altogether, 96% of towns and
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townships and 81% of villages are now connected to asphalt roads. Wesupported the construction of 1,343 large and medium-sized methane projects,providing methane to another 5 million households nationwide. We renovateddilapidated houses for 1.2 million rural households, thereby m.eeting the plannedtarget. Another 100,000 stores were set up in the countryside under the projectto get retailers to open stores in more townships and villages, and a ruralnetwork ofchain stores began to take shape.
Figure 5Iucreases in Population Who Benefited from the Safe Drinking Water Project
in the Eleventh Five-Year Plan Period
Millions
70
~
I 31.45 32.5328.97
r-'--~
.
60
50
40
30
20
10
o2006 2007 2008
60.69
2009
61.86
2010
3. Economic restructuring was carried out vigor01!sly.China's capacity for independent innovation increased. Good progress was
made in implementing 16 key state science and technology programs together·with the March 1997 Program for Basic Research, the March 1986 High-TechProgram and the National Key Technology R&D Program. Construction on theShanghai Synchrotron Radiation Facility, the National Center for Nanoscienceand Technology and other major science projects was completed and passedacceptance inspection. The third phase of the Knowledge Innovation Program inthe Chinese Academy of Sciences was basically completed. Smooth progresswas made in carrying out major projects such as building 50 nationalengineering centers, 32 national engineering laboratories and 56 key nationallaboratories seated in enterprises in areas such as digital television and
6
next-generation Internet, as well as manufacturing advanced-generation LCDpanels, large-scale integrated circuits and regional aircraft, Further progress wasmade in the development of large aircraft. An additional 93 enterprisetechnology centers received state recognition, 550 enterprises were nowincluded in the national pilot program to support innovative enterprises, and thenational pilot projects for innovation-oriented cities were carried out in 45 cities.The calculating speed of the high performance Tianhe-l supercomputer, whichwas developed independently, is ranked fIrst in the world.
High-tech industries developed more quickly. The value-added of thehigh-tech manufacturing industry for the year rose 16.6%, up 8.9 percentagepoints from the previous year. The output ofmajor high-tech products increasedconsiderably, with output of integrated circuits growing by 57.4%, electroniccomponents by 30.1%, microcomputers by 35% and mobile telecommunicationhandsets by 46.4%; and the sales of software came to 1.3 trillion yuan, up 30%.Trade volume in the technology market exceeded 300 billion yuan. Wepromulgated and implemented the Decision on Accelerating the Cultivation andDevelopment of Strategic Emerging Industries; actively moved forward withseven projects to apply high technology to production, including the project topromote modern practices in traditional Chinese medicine; built 18 nationalhigh-tech industrial bases; and set up 13 venture capital funds.
Fresh progress was made in industrial restructuring. We continued toimplement the plan for restructuring and invigorating key industries, allocated afund of 20 billion yuan for invigorating such industries and upgrading theirtechnologies, and supported 5,051 technological upgrading projects. Therelocation of the Shougang Group was completed smoothly, and substantiveprogress was made in reorganizing the Angang Steel Company Ltd. and thePangang Group Company Ltd. We promulgated and implemented guidelines onaccelerating the restructuring of the pharmaceutical industry. We completed alltasks of closing down backward production facilities. We shut down suchfacilities at thermal power plants with a total capacity of 12.1 million kilowatts,2.1 million kilowatts more than planned; steel mills of 9.31 million tons, 3.31million tons more than plarmed; iron foundries of 40 million tons, 15 milliontons more than plarmed; cement plants of 116.19 million tons, 66.19 milliontons more than plarmed; plate glass plants of 552,500 tons, 252,500 tons morethan plarmed; and paper mills of 4.72 million tons, 4.19 million tons more thanplarmed.
The service sector developed steadily. We launched trials of comprehensivereforms in the service sector, used funds for guiding development of the servicesector to help accelerate the development of key areas and weak links of the
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sector, and promulgated and implemented guidelines on promoting developmentof the energy conservation service industry. In 2010, the service sectorconstituted 34.8% of the country's employtlJ.ent, and the value-added of thesector accoUlJ.ted for 43% ofGDP.
Figure 6Value-added ofthe Service Sector in the Eleventh Five-Year Plan Period
Billions of yuan Percent
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
o
r
17,1005
14,803.8
13,134
1-11,135.19
8,855.49
12
14.1.............
""'" 9.6 9.5
10.4
~ ~
50
40
30
20
10
o
D Value-added of the service sector
2006 2007 2008 2009 2010
..... Real growth rate
Infrastructure and basic industries became better able to meet demandsmade on them. Nationwide, 4,986 kilometers of railway lines were put intooperation, raising the total to 91,000; 120,000 kilometers of highways wereopened to traffic, raising the total to 3.98 million; 500 kilometers of high-gradeinland waterways were opened to navigation, raising the total to 10,000; 125deepwater seaport berths were put into service, raising the total to 1,774; and 9new civilian airports were Pllt into service, raising the total to 175. Some 1.66million kilometers of optical cables were installed, raising the total to 9.95million kilometers; and 49.24 million broadband Internet access ports wereopened up, raising the total to 188 million. We intensified the construction ofkey energy projects, energy bases, and storage and transportation facilities.Eleven out of 13 large coalmining bases have already reached a productioncapacity of 100 million tons. A number ofclean-energy projects were completedand put into operation; construction of the second phase of the state petroleumreserves project was accelerated; and total power transmission capacity of the
8
northern, central and southern routes of the project to send electricity from thewest to the east exceeded 78 million kilowatts. The annual output of raw coalwas 3.24 billion tons, up 8.9%; crude oil output was 203 million tons, up 7.1%;natural gas output reached 96.76 billion cubic meters, up 13.5%; and electricitygeneration totaled 4.2065 trillion kilowatt-hours, up 13.2%.
Regional development became better balanced. We deepened theimplementation of the overall strategy for regional development, andpromulgated and implemented the national plan for development priority zones.
We smoothly introduced the guidelines on thoroughly implementing thestrategy for large-scale development of the western region; promulgated andimplemented the guidelines on promoting leapfrog development and long-termstability of Tibet and Xinjiang as well as on accelerating the development ofTibetan ethnic areas in Sichnan, Yunnan, Gansu and Qinghai; and approved theestablishment of the Liangjiang New Area in Chongqing. Construction began onanother 23 major projects for the large-scale development of the western region,with total investment reaching 682.2 billion ynan.
We increased support for optimizing and upgrading the industrial structureand developing modem service industries in northeast China, formulated theguidelines on supporting the region in developing modem agriculture, andfurther improved the policy framework for sustainable development ofresource-dependant cities.
We fully implemented the plan to energize the development of the centralregion, accelerated the development of three different types of production basesand a system of integrated transportation hubs in the region, and introduced theguidelines on promoting the development of city clusters in the central region aswell as the plan to establish demonStration zones for relocating industries to thecentral region in the city cluster along the Yangtze River in Anhui. The Wuhanm.etropolitan area; the Changsha-Zhuzhou-Xiangtan city cluster; city clusters inthe central plains; the Poyang Lake Ecological Economic Zone; and the citycluster around Taiyuan in Shanxi, all played a bigger role in driving thedevelopment of their surrounding areas. Further progress was made inrelocating industries to the central and western regions.
We actively promoted upgrading of the industrial structure and independentinnovation in the eastern region; accelerated reform and opening up in Shenzhenand other special economic zones, the Pudong New Area in Shanghai and theBinhai New Area in Tianjin; promulgated and implemented the plan to stimulatethe development of the Yangtze River Delta; and launched the national pilotprogram to develop the marine economy.
More support was given to old revolutionary base areas, ethnic minority
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areas, border areas and poverty-stricken areas. In 2010, the central governmentarranged 5.5 billion yuan for investment in work-relief schemes and a fund of 2billion yuan on the pilot project to relocate people from inhospitable areas as apoverty relief measure. As a result, 870,000 people were relocated, 11 0,000more than planned; and over 9.09 million rural residents were lifted out ofpoverty, basically reaching the target.
4. Significant progress was made in energy conservation and environmentalprotection and in responding to climate change.
We basically met the targets for energy conservation and emissionsreductions. In 2010, investment funds from the central government budget forthis purpose came to 33.3 billion yuan, an increase of 140% over the previousyear; and the central government provided 51.8 billion yuan in special fundingfor conserving energy and reducing emissions, up 73%. We actively carried outthe ten major energy conservation projects, capable of generating energysavings equivalent to 33.1 million tons of standard coal. We worked hard toimplement the project to promote energy-efficient products for the benefit of thepeople, and nearly 30 million high-efficiency air-conditioners, over 1 millionenergy-efficient motor vehicles, and 160 million energy-saving light bulbs wereput into use. We started to implement the pilot project to demonstrate andpopularize new energy vehicles. We actively developed national demonstrationbases for recovering mineral resources from city waste. We supported theconstruction of urban sewage and garbage treatment facilities. For the wholeyear, daily urban sewage treatment capacity increased by 19 million cubicmeters and daily urban household waste disposal capacity grew by 68,000 tons;and 76.9% of urban sewage was treated and 72.5% of urban household wastewas safely handled, an increase of 1.6 and 1.2 percentage points year on yearrespectively. In 2010, energy consumption per unit of GDP fell 4.01%; sulfurdioxide emissions and chemical oxygen demand dropped 1.32% and 3.08%respectively; water consumption per 10,000 yuan of value-added of industry fell9.6%; and the percentage of industrial solid waste that was comprehensivelyutilized rose by 2 percentage points. Over the past five years, energyconsumption per unit of GDP fell 19.06%, sulfur dioxide emissions andchemical oxygen demand decreased 14.29% and 12.45% respectively, waterconsumption per 10,000 yuan of value-added of industry decreased 36.7%, andthe targets set in the Eleventh Five-Year Plan were either basically met orexceeded.
10
Figure 7Energy Consumption per Unit of GDP in the Eleventh Five-Year Plan Period
92.3697.26
120
110
00.00100
90
80
70
60
50
402005 2006 2007
87.56
2008
84.32
2009
80.94
2010
'Energy consumption per nnit ofGDP equals 100 in 2005.
Figure 8Sulfur Dioxide Emissions and Chemical Oxygen Demand
in the Eleventh Five-Year Plan Period
110
101.55100
100 97.71100 100.99
96.81 90.34
90 87.55
86.86 85.71
80
L.- ~ ~ ~ ~ ~
Sulfur dioxide emissions --- Chemical oxygen demand
70
2005 - 2006 2007 2008· 2009 2010
'Levels of SO, emissions and COD both equal 100 in 2005.
II
New steps were taken in ecological and environmental protection. Wefurther consolidated progress previously made in returning cultivated land toforests and grazing land to grasslands; completed the first phase ofthe project toprotect virgin forests; completely stopped commercial logging in natural forestsin the upper reaches of the Yangtze River and the middle and upper reaches ofthe Yellow River; and protected and restored biodiversity. In 2010, an additional5.92 million hectares of land was afforested, 6.667 million hectares of grazingland was returned to grasslands, and soil erosion on 42,000 square kilometers ofland was brought under control through combined measures nationwide. Wepromulgated and implemented a comprehensive national plan for waterresources. We vigorously carried out pollution control in the key watersheds ofthe Huai, Hai, Liao and Songhua rivers; the Tai, Chao and Dianchi lakes; themiddle and upper reaches of the Yellow River; the Three Gorges Reservoir areaand its upper reaches; the Bohai Sea; and the Danjiangkou Reservoir area andits upper reaches. We fully implemented the master plan for the comprehensivecleanup ofthe water in the Tai Lake basin.
Figure 9Area Afforested in the Eleventh Five-Year Plan Period
Millions of hectares
280
275
270
265
260
255
250
245
240
235
2006
Ill[]
2007
Total area afforested
2008
o2009 2010
Increase over previous year
The work of responding to climate change was further strengthened. Weeffectively implemented China's National Climate Change Program, activelymade innovations in low-carbon technology, and smoothly carried out pilotprojects for low-carbon provinces and low-carbon cities. We successfully held
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the Tianjin United Nations Climate Change Conference, and actively engagedand participated in international exchanges andcooperation in all areas.
5. Reform and opening up were further intensified.New breakthroughs were made in reforming major areas and key links.In terms of rural reforms, we launched the reform of tenure in collective
forests in an orderly manner and devolved the tenure of more than 80% of thecountry's collective forests to rural households, and made steady progress in thetrial reform of state forestry farms and in restructuring state farms built onreclaimed land.
In terms of enterprise reforms, the reform to institute a corporate system ora stockholding system was carried out in over 70% of the central state-ownedenterprises (SOEs) and enterprises subordinate to them, and the pilot project forstandardizing boards of directors was extended to 32 central SOEs. We madefurther progress in reforming the power industry, postal services and publicutilities. We also promulgated and implemented a number of supporting policiesto promote the development of the non-public sector and small andmedium-sized enterprises.
In terms of reforming the fiscal and taxation systems, we implemented thereform to place county finances directly under the management of provincialgovernments in 970 counties across 27 provinces; conducted trials in thewestern region on the reform of resource taxes on oil and natural gas; andextended the urban construction and maintenance tax and education surcharge toforeign enterprises and nationals.
In terms of reforming the financial system, steady progress was made inreforming the China Development Bank, policy-based financial institutions andasset management companies; the Agricultural Bank of China was listedsuccessfully; stock index futures were launched; corporate bonds developedsteadily; the reform of the RMB exchange rate regime continued; and the RMBwas used more widely in cross-border trade.
In terms of reforming the prices of resource products, we made smoothprogress in trials of publicizing the costs of supplying water in cities and of acomprehensive price reform of water for agricultural purpose; introduced apunitive electricity rate on products exceeding limits of energy consumption perunit of production; and set a unified rate for on-grid electricity generated fromagricultural and forest biomass.
In terms of reforming social programs, we deepened the five key reforms inthe pharmaceutical and healthcare systems; implemented the national system forbasic drugs in 60% of primary-level medical and health care institutions run bythe government; vigorously explored and constantly deepened the reform of
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p1,lblic hospitals in 16 state-designated trial cities and 37 province-designatedtrial areas; and introduced the guidelines on further encouraging and guidingnongovernmental capital toward medical institutions. We comprehensivelylaunched the national pilot program for restructuring the education system, andthoroughly implemented the performance-based pay reform for compulsoryeducation schools. We pushed forward with the reform of the culturalmanagement system in an orderly manner, and basically completed trials onturning provincial-level state-owned theatre troupes into corporations and thetransformation of for-profit publishing houses into enterprises. Positive resultswere made in national pilot projects to carry out integrated, complete reforms.
The development level of the open economy was raised further. We adheredto the strategies of diversifying markets and competing on quality; tightenedcontrol over exports of resource products and products whose production isenergy-intensive or highly polluting; increased imports of raw materials in shortsupply on the domestic market, energy-intensive products, advanced technology,and key spare parts and components; and eased the trade imbalance. Totalimport and export volume reached US$2.97276 trillion in 2010, an increase of34.7%. Exports rose 31.3%, imports rose 38.7%, and the trade surplus wasdown 6.4% from the previous year. We introduced the guidelines on betterutilizing foreign investment and guided foreign investments toward high-endmanufacturing, high-tech industries, modem service industries, new energysources, energy conservation and environmental protection industries, and thecentral and western regions. Utilized foreign direct investment in 2010(excluding the banking, securities and insurance sectors) totaled $105.74 billion,up 17.4%. Disbursed foreign loans reached $20.5 billion, up 57%. Wevigorously implemented the "go global" strategy and made further progress in anumber of major outward investment projects. Non-financial outward directinvestment for the year amounted to $59 billion, an increase of 36.3%. Receiptsfrom overseas project contracting operations reached $92.2 billion, an increaseofl8.7%.
6. Efforts to ensure and improve the people s wellbeing werecomprehensively strengthened.
Urban and rural incomes continued to grow. Urban per capita disposableincome and rural per capita net income reached 19,109 ynan and 5,919 ynanrespectively, up 1,934 yuan and 766 ynan, or 7.8% and 10.9% from the previousyear in real terms after adjusting for inflation, and 1.8 and 4.9 percentage pointshigher than the target figures. This is the first time since 1998 that rural incomegrowth has surpassed urban income growth.
14
Figure 10Real Growth in Urban and Rural Incomes in the Eleventh Five-Year Plan Period
Percent
1412.2
12 10.9
9.810
8.4
89.5
8 8.57.4 7.8
6
I4
I2 t
i0
L ~
2006 2007 2008 2009 2010
-e- Urban per capita disposable income-0- Rural per capita net mcome
Employment grew steadily. We intensified the implementation of aproactive employment policy. We improved primary-level public servicefacilities for employment and social security, and set up 162 county-level and610 townshipclevel service centers in the central and western regions. Over theyear, 11.68 million urban residents entered the workforce for the first time,exceeding the target by 2.68 million, and the urban registered unemploymentrate was 4.1 %, which met the target.
The level of social security continued to rise. By the end of 2010, thenumber of urban participants in basic pension insurance reached 256.73 million,16.73 million more than plarmed; and we extended the trials of a new pensioninsurance system for rural residents to 24% of the country's counties. Themethods for transferring basic pension accounts for employees of urbanenterprises and transferring basic medical insurance accounts for migrantworkers were implemented smoothly. Basic medical insurance covered 432.06million urban residents, an increase of 30.59 million over the previous year; and835 million rural residents, or 96.3% of the rural population, signed up for thenew rural cooperative medical care system, 2.1 percentage points higher thanthe previous year. We raised the standards of subsistence allowances for urbanand rural residents, unemployment insurance benefits, the basic pension forenterprise retirees, subsidies and living allowances to entitled groups, and
15
government aid to students from poor families. Post-disaster recovery andrebuilding work progressed smoothly, the three-year post-Wenchuan earthquakerecovery and reconstruction tasks were basically completed within two years,and the recovery and rebuilding work is well underway in Yushu and Zhugqu.
Fignre 11Participation Rates in the New Rural Cooperative Medical Care System
in the Eleventh Five-Year Plan Period
Millions Percent
900
800
700
600
500
400
300
200
100
o
815 833 835
726...
~...- 96.3
~ 94.2
,/"'" 91.5
410//86.2<I"""
80.7
100
95
90
85
80
75
702006 2007 2008 2009 2010
CJ Number ofparticipants - Participation rate
The development oflow-income housing projects was carried out on a largescale. The central government further raised subsidies for building low-renthousing and renovating rural dilapidated houses in the central and westernregions, expedited the development of public rental housing, and included it inthe low-income housing program. In 2010, work was begun to buildlow-income housing and renovate run-down areas across the country with atotal of 5.9 million units, surpassing the target by 100,000 units. This figureconsists of 3.22 million units of low-income housing and 2.68 million units ofhousing in run-down areas; and throughout 2010 work was basically completedon 3.7 million units.
Social development was strengthened.The National Medium- and Long-Term Plan for Education Reform and
Development and the National Medium- and Long-Term Plan for HumanResources Development were promulgated and implemented. A total of 13.25million square meters of primary and secondary school buildings were
16
renovated in rural areas, and construction was completed on 2.12 million squaremeters of secondary vocational school buildings. The goals of making nine-yearcompulsory education universally available and basically eliminating illiteracyamong young and middle-aged adults were attained for 100% of the targetpopulation in the country. The junior secondary school retention rate reached94%. The secondary gross enrollment ratio reached 82.5%, up 3.3 percentagepoints. The tertiary gross enrollment ratio was 26.5%, with 6.618 millionundergraduate students and 538,000 graduate students enrolled.
Smooth progress was made in developing the medical and health servicesystem. We supported the construction and renovation of 891 county-levelhospitals, 1,620 central health clinics in towns and townships, 1,228community-based health service centers and 116 institutions for preventing andtreating mental health problems. The natural population growth rate of about5%0 met the target, and the national population reached 1.341 billion at the endof2010.
Steady progress was made in the project to extend radio and televisioncoverage to all villages, the construction of multipurpose cultural centers intowns and townships, the Tibet-Xinjiang Project, and the national culturalinformation resource sharing project. Work on major cultural projects such asthe National Museum of China and the National Theater Company of Chinaproceeded smoothly, and the number of public museums, memorial halls, andpatriotic education centers across the country opened to the public free of chargereached 1,743.
We improved infrastructure at major tourist attractions, and actively workedto turn Hainan into an international tourist island. Philosophy and the socialsciences, the press and publishing, and literature and art all flourished. TheShanghai World Expo was a complete success, and a total of 246 countries andinternational organizations participated -- more than any other world expo inhistory. We successfully hosted the Guangzhou Asian Games and Asian ParaGames. Recreational sports work entered a new stage, and over 230,000 sportsand fitness projects were completed for rural residents. Social welfare programsdeveloped more rapidly, and the number of beds in social service institutionsreached 3.123 million, up 4.3%.
Despite a complex and volatile economic environment abroad and frequentnatural disasters at home, China's economy maintained steady and rapiddevelopment in 2010, and we further consolidated the momenturn of oureconomic turnaround. These achievements did not come easily. They were theresult of the overall planning and firm leadership of the Party CentralCommittee and the State Council, as well as the conscientious implementation
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of the central leadership's principles and policies, close collaboration and hardwork of all localities and departments. They were also attributable to theconcerted efforts of the people of all our ethnic groups in tackling difficultieshead-on. After five years of efforts, of the 22 major targets for economic andsocial development set forth in the Eleventh Five-Year Plan, all eight obligatorytargets were met and we achieved all the other 14 anticipated targets exceptthree -- the proportion of employment in the service sector, the proportion ofvalue-added of the service sector contributed to GDP, and the spending on R&Das a percentage ofGDP.
As we look at these achievements, we must also be keenly aware that thereare still some serious conflicts and problems facing domestic development.
First, the foundation for steady increases in grain production and ruralincomes is not solid. Constraints from insufficient resources including farmlandand fresh water are intensifYing; uncertainties over climate conditions areincreasing; water conservancy infrastructure remains weak; the overall level ofagricultural science and technology is not high; the returns from agriculturehave been comparatively low for a long time; and rural migrant workers stillface institutional obstacles in seeking urban employment.
Second, our tasks for economic restructuring are arduous. Improving ourcapacity for independent innovation is constrained by inadequacies in incentivemechanisms and shortages of core technologies and highly talented people;haphazard investment and excess production capacity in certain fields isincreasingly evident; eliminating backward production capacity is becomingmore difficult; development of the service sector still lags behind; andunbalanced and uncoordinated development between urban and rural areas andbetween different regions remains a serious problem.
Third, there are strong inflationary pressures. Imported inflationary pressureis on the rise; there is loose liquidity in the market; hot money speculation issoaring; and increases in the costs of resources, land, labor and other factors ofprodUc:;tion have become a long-term stimulus to price rises. Last year, about70% of price rises were due to growth in food prices, adding pressure on thelives of urban and rural residents, and especially low- and middle-incomefamilies. House prices rise too fast in some large and medium-sized cities, and itis still very hard for ordinary people to solve their housing problems on themarket.
Fourth, resource and environmental constraints have intensified. Totalenergy and resource consumption is too large and is growing tob quickly, andemissions of major pollutants are high. A petmanent mechanism for savingenergy and reducing emissions has yet to be established, and energy-intensive
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and highly polluting industries are still growing too fast. Consequently, we facemounting pressure to save energy, reduce emissions, and respond to climatechange, and great challenges in sustainable development.
Fifth, social problems have increased. Our work on income distribution,social security, schooling, and medical care still fall considerably short of thedemands of the people. Actions that harm people's interests in such areas asfood and drug safety, land expropriation, housing demolition and residentrelocation, and industrial safety are still occurring.
In addition, world economic recovery is a painstaking and tortuous process,some countries are saddled with huge debts and persistently high unemploymentrates, global liquidity continues to increase, and international market prices formajor commodities and exchange rates among major currencies remain inturmoil. All these instabilities and uncertainties have made it even more difficUltto do this year's domestic work well.
We need to take all the above problems seriously and adopt effectivemeasures to solve them.
II. Overall Requirements and Major Objectives forEconomic and Social Developmen.t in 2011
When doing this year's economic and social development work, we mustfully implement the guidelines adopted at the Party's Seventeenth NationalCongress and the third, fourth, and fifth sessions of the Seventeenth CentralCommittee; take Deng Xiaoping Theory and the important thought of ThreeRepresents as our guide; and thoroughly apply the Scientific Outlook onDevelopment. We need to correctly grasp the new changes in and new featuresof the domestic and international situations, and take scientific development asour theme and accelerating the transformation of the pattern of economicdevelopment as our main. thrust. We will adopt a proactive fiscal policy and apllldent monetary policy, and make our macro-control more targeted, flexibleand effective. We will carry out economic restructuring more quickly,vigorously improve independent innovation, genuinely save energy and reduceemissions, constantly deepen reform and opening up, emphasize ensuring andimproving the wellbeing of the people, consolidate and expand on our successesin responding to the global financial crisis, maintain steady and rapid economicdevelopment, and promote social harmony and stability.
In view of the above requirements and what is needed versus what ispossible, and in conformity with the Twelfth Five-Year Plan, we have set thefollowing major objectives for economic and social developmen.t in 2011.
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--Maintaining steady economic growth. China's GDP will grow by about8%. In setting this target, we have mainly taken the following factors intoaccount. On the one hand, it is necessary to maintain an appropriate pace ofeconomic growth in order to expand· employment, improve the people'swellbeing, and consolidate and expand on our achievements in responding to theglobal financial crisis. On the other hand, the projected growth rate around 8%is lower than the actual growth rate last year, and it was chosen mainly to guideall sides' attention and the focus of their work toward accelerating thetransformation of the pattern of economic development, so we can coordinatethe pace of economic growth with its structure, quality and efficiency;coordinate economic development with the population, resources and theenvironment; and genuinely transform in the course of developing and developin the course of transforming. Furthermore, with so many variables in ourexternal environment, more stringent resource and environmental constraints,and higher costs of factors of production, it will still require an enormoUS effortto achieve high quality and efficient growth at a rate of 8%. Moreover, thisgrowth target is only a guide and indicator of the anticipated growth for thecountry as a whole. Local governments should set their growth ratesscientifically in line with their actual conditions and based on necessity andpossibility. They absolutely should not seek rapid growth at all costs or competefor the fastest rate, still less raise targets at each administrative level.
~-Optimizing the economic structure. We will increase spending on R&D asa percentage of GDP to 1:85%; make positive progress in fostering strategicemerging industries and accelerate development of the service sector; achievenew results in technological upgrading, elimination of backward productionfacilities, and SOE mergers and reorganizations; reduce energy consumption perunit of GDP by 3.5% compared to last year, reduce the intensity of carbondioxide emissions by about 3.5%, and cut the four major pollutant indexes -chemical oxygen demand, total ammonia nitrogen and emissions of sulfurdioxide and nitrogen oxide -- each by 1.5%; further strengthen ecological andenvironmental improvement; and. raise the urbanization level to 48.3%. Themain consideration when proposing this composite target is that accelerating thetransformation of the pattern of economic development is our main thrust nowand for some time to come, and it must be incorporated into the entire processand every aspect of economic and social development. In order to take firmsteps in the first year of implementing the Twelfth Five-Year I'!an, we muststeadfastly focus· on strategic economic restructuring; further increaseinvestment in R&D; strive to promote independent innovation; nurture anddevelop strategic emerging industries; promote the transformation and
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upgrading of traditional industries; intensifY efforts to balance urban and ruraldevelopment and development among different regions; actively yet prudentlygive impetus to urbanization; strengthen energy conservation, emissionsreduction, and ecological and environmental protection; increase thecontribution science and technology make to economic growth as well as itsquality and efficiency; and make development more coordinated andsustainable.
--Keeping overall price levels basically stable. The CPI will increase byabout 4%. Currently, aggregate supply and demand in China are basicallybalanced and there is an ample supply of most products; in particular, we haveabundant stocks of grain as a result of seven consecutive years ofgood harvests,and all this will help to keep overall price levels basically stable. Nevertheless,fast increases in consumer prices in the second half of last year will likely havea significant carry-over effect on prices in the first halfof this. year.. At the sametime, there are quite a few factors causing price increases, including massiveincreases in global liquidity; continued and significant imported inflationarypressure frorn price increases for major commodities in the international market;relatively large domestic money stock; and gradual increases in the cost offactors of production, such as energy, raw materials, land and labor. Also,reforms of prices for resource products and environmental protection chargesare being actively yet prudently carried out, and all these factors are exertingupward pressure on prices to a certain degree. The decision to allow the CPI torise by about 4% has been taken not only based on the aforementioned factorsand people' ability to tolerate price increases, but also to leave space for thereform ofprices.
--Ensuring and improving the people s wellbeing. We will increase urbanemployment by more than 9 million and keep the urban registeredunemployment rate no higher than 4.6%; strive to increase personal income instep with economic development and raise wages and salaries in step withgrowth in labor productivity, and increase both urban per capita disposableincome and rural per capita net income by more than 8% in real terms; continueto improve the social security system and start construction on low-incomehousing and renovation of run-down areas with a total of 10 million units thisyear; and keep natural population growth under 6.5%0. Ensuring and improvingthe people's wellbeing is an inevitable requirement of carrying out scientificdevelopment and promoting social harmony, and it is also the urgent necessityfor constantly satisfYing the people's new expectations for a better life, as wellas the fundamental starting point and goal of accelerating the transformation ofthe pattern of economic development. We must always remember that
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developing the economy is inseparable from improving the people's wellbeing,and organically integrate accelerating the transformation of the pattern ofeconomic development with ensuring and improving the people's wellbeing. Weneed to give higher priority to properly solving major problems that concern theimmediate interests of the people such as employment, income distribution andsocial security; improve the institutional framework as well as systems andmechanisms; increase investment; strive for new successes; and ensure that theachievements ofreform and development reach all the people.
--Improving the balance ofpayments. We will promote the transformationand upgrading of export goods, accelerate the development of trade in services,vigorously expand imports, and increase total import and export volume byabout 10%. We will maintain growth in the utilization of foreign capital, furtheroptimize the way it is utilized, and steadily expand Chinese investment overseas.Although this year the global economic enviromnent is still grim andcomplicated, protectionism in various guises is rearing its head, and competitionin the international market is becoming increasingly fierce, so long as we makethe most ofour comparative advantages in the global economic division of labor,put equal emphasis on exports and imports as well as on attracting foreigncapital and making outward investment, and accelerate the transformation ofthepatterns of our foreign trade and outward investment, we will be able tocontinue to maintain a steady increase in external demand and further imprOvethe balance ofpayments.
III. Major Tasks and Measures forEconomic and Social Development in 2011
This is the first year of implementing the Twelfth Five-Year Plan.Successfully completing all the work for economic and social development in2011 is of great significance for continuing to seize and make full use of thisimportant period of strategic opportunities as well as greeting the 90thanniversary of the founding of the CPC with outstanding achievements. Weneed to continue to strengthen and improve macro control; more actively yetprudently handle the relationships between maintaining steady and rspideconomic development, restructuring the economy and managing inflationexpectations; and attach greater importance to stabilizing the overall level ofprices. We will continue to implement a proactive fiscal policy and fme-tune theintensity of policy implementation. We will reduce the budget deficit and thescale of govermnent bonds by appropriate amounts. This year, we haveprojected a deficit of900 billion yuan, 150 billion yuan less than last year. This
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figure includes a central government deficit of 700 billion yuan and 200 billionyuan in bonds that will be issued by the central government on behalf of localauthorities and be included in local government budgets. The deficit as apercentage of GDP will drop to about 2%. We will implement a prudentmonetary policy; the broad money supply (M2) is expected to increase about16% this year; and we will keep financing from all sources at a reasonable level.We need to have a good grasp of the intensity, tempo and focus of policyimplementation; strengthen coordination between policies; and comprehensivelyconsider both short-term macro-control policies and long-term developmentpolicies. We need to work hard to resolve major problems presently hinderingour development and prevent large economic fluctuations, and at the same time,we also need to effectively resolve deep-seated problems and defuse potentialrisks, and make development more coordinsted, sustainable and internallyvigorous.
In 2011, we will concentrate on the following nine tasks.1. We will adhere to the strategy ofexpanding domestic demand, especially
consumer demand, and maintain steady and rapid economic development.I) We will further increase conslL.'I1er demand. This year, total retail sales of
consumer goods are expected to increase 16%. We will intensifY efforts toadjust income distribution, increase government spending used to improve andexpand consumption, and increase subsidies to farmers and low-income urbanresidents. We will continue to implement the policies of subsidizing ruralresidents' purchase of home appliances and providing subsidies for trading inold home appliances, implement preferential policies to encourage people tobuy energy-efficient and new energy vehicles, and promote more widespreaduse of energy-efficient products. We will vigorously develop new consumptionfonnats such as e-commerce, and spur consumption in the areas of culture,travel and fitness. We will promote chain-store operations and uirifieddistribution in rural areas,. and optimize the layout of urban commercialnetworks. We will rectifY and standardize markets and protect consumers'legitimate rights and interests.
2) We will maintain a rational scale of investment while improving theinvestment structure. Total fixed-asset investment is expected to increase 18%nationwide in 2011. We will make full use of the role of government investmentin guiding structural adjustments. We will allocate 382.6 billion yuan from thecentral government budget for investment, a decrease of 10 billion yuan fromlast year; give priority to ensuring funding for key ongoing projects, and beginconstruction on the major projects in the Twelfth Five-Year Plan in an orderlymanner. Investment funds from the central government budget will mainly be
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used to support development of low-income housing; water conservancyfadlities; agricultural infrastructure; education and health infrastructure;independent innovation, energy conservation, emissions reduction, ecologicalimprovement and environmental protection; and economic and socialdevelopment in the central and western regions, especially Tibet, Tibetan ethnicareas in Sichuan, Yunnan, Gansu and Qinghai, and Xinjiang. We will earnestlyimplement the policy on encouraging and guiding development ofnongovernmental investment issued by the State Council and continue to workhard on formulating supporting measures, in order to promote steady increasesin nongovernmental investment and optimize its structure. We will steadfastlytailor guidance to different circumstances, guarantee some expenditures whilereducing others, resolutely control haphazard and redundant development insectors that are energy-intensive or highly polluting or have excess productioncapacity, and improve the quality of and returns on investment.
3) We will do a good job of regulating economic activities. We will improvethe coordination of coal production and transportation with demand; strengthenthe demand-side management ofpower; balance supply and demand ofcrude. oil,refined petroleum products and natural gas and properly handle distribution ofemergency supplies; and guarantee the transportation of key goods andmaterials.
2. We will strengthen price regJ-Ilation and oversight, and keep the overalllevel 0/prices basically stable.
I) We will ensure adequate market supply. We will effectively implementthe system whereby provincial governors are responsible for the "rice bag"(grain supply) and mayors are responsible for the "vegetable basket" (non-staplefood supply). We will improve the reserve system for important commoditiesand the system for temporarily purchasing and stockpiling major agriculturalproducts, scientifically decide when to increase or reduce reserves, and properlyadjust import and export volumes. We will open up channels for the distributionof agricultural products, intensify our work on linking markets directly withagricultural producers, standardize and reduce the rent of stalls at farm producemarkets and supermarket slotting fees, and support the upgrading andrenovation of key wholesale markets and the development of large grainlogistics nodes, wholesale vegetable markets, community vegetable stores andcold-chain logistics.
2) We will make regulation better targeted. We will strengthen liquiditymanagement. We will establish a sound market monitoring and early warningsystem for important agricultural and sideline products, and improvecontingency plans for regulating key commodity markets and prices. We will
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properly handle the timing, pace and intensity of adjustments to the prices ofcommodities and services under govermnent regulation. We will set up a soundprice adjustment fund in accordance with the law.
3) We will strengthen oversight of prices. We will improve oversight of thefutures market for agricultural products, review and rectifY electronic tradingmarkets for agricultural products, and curb excessive speculation. We willstrictly examine and verifY grain purchasing qualifications, and standardize thesale and intensive processing of agricultural products. We will earnestlyimplement the Regulations on Administrative Penalties for Price Irregularitiesand the Regulations on Countering Price Fixing, and crack down hard on illegalpractices, including hoarding for speculation, price gouging, raising prices indisguised forms and colluding to drive up prices.
4) We will improve the subsidy system. We will continue to providetemporary price subsidies to entitled groups, subsistence allowance recipients inurban and rural areas, and childless and infirm rural residents who receive thefive guaranteed forms of support (food, clothing, medical care, housing andburial expenses). Governments at all levels will increase allowances to highereducation and secondary vocational school students from poor families as wellas subsidies to student cafeterias of such schools. We will set up as soon aspossible a sound mechanism for coordinating subsistence allowances andunemployment insurance benefits with price rises to guarantee the basic livingconditions oflow-income people.
5) We will improve the price enviromnent. We will enforce all rules andregulations on reviewing and standardizing the collection of fees; continue torescind unreasonable fees; lower excessively high fees; and strictly prohibit theunauthorized collection of fees, overcharging and collecting fees in disguisedforms.
6) We will strengthen the guidance of public opinion. We will ensure theprice situation is accurately reported, clearly explain pricing policies, and crackdown hard on those who maliciously drive up prices by fabricating stories orspreading false information.
3. We willfurther improve our workrelating to agriculture, rural areas andfarmers, and consolidate the foundation for developing agriculture and ruralareas and increasing rural incomes.
I) We will promote steady increases in grain production and strive to make2011 the eighth consecutive year of good harvests. We will comprehensivelystrengthen measures for stimulating the development of grain and agriculturalproduction; implement an initiative to sustain steady growth in grain productionnationwide; improve the reward policy for major grain-producing counties;
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carry out an intensive carnpaign to grow high-yield crops; increase governmentrewards and subsidies for village-level public works projects, the launching ofwhich are determined by the villagers through deliberation; fully arouse theinitiative of governments at all levels to give high priority to agriculture andgrain production as well as rural residents' enthusiasm for farming and grainproduction; and work very hard to ensure another year of good harvests. In 20II,we will strive to maintain grain output at over 500 million tons; increase theoutput of cotton, oilseed, sugar crops, meat and aquatic products to reach 6.8million, 32.5 million, 125 million, 80 million and 54.3 million tons, respectively,up 13.9%,0.3%,3.8%,0.9% and 1.2% from last year.
2) We will strengthen the construction of agricultural and ruralinfrastructure with the focus on water conservancy. We will faithfullyimplement the guiding principles of the Fifth Plenary Session of theSeventeenth Party Central Committee and Decree No,1 issued by the CentralCommittee this year, and draw up major policies for the reform anddevelopment of water conservancy. We will move faster to harness small andmedium-sized rivers and reinforce dilapidated reservoirs, and strengthenprevention and control of geological disasters from mountain torrents,development of flood storage and retention areas, and construction of keydrought-relief projeqts in southwest China and other areas. We will acceleratethe implementation of projects to build auxiliary facilities and upgradewater-saving devices inirrigated areas, and comprehensively intensify work onkey agricultural· irrigation and water conservancy projects and farmlandimprovement projects. We will press ahead with projects for developinghigh-quality farmland and allocating water resources. We will continue work oncomprehensive rural land development. We will improve working and livingconditions in rural areas. In 2011, we will solve the issue of providing safedrinking water for another 60 million rural residents, raising the percentage ofthe rural population with aCcess to safe drinking water to 77%; vigorouslydevelop methane projects in rural areas, and strive to increase the number ofrural households that use methane to 43.25 million by the end of the year, 3.25million more than last year; carry out a new round of upgrading of rural powergrids and more quickly extend power grids to areas without electricity; continueour support for the development of rural highways; expand efforts to renovatedilapidated rural houses, with the target set at more than 1.5 million this year;and successfully implement the project to build permanent homes for nomadicherdsmen.
3) We will increase overall agricultural production qapacity. We will strictlyprotect arable land, keep the total crop acreage stable, and work hard to increase
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per unit yield. We will accelerate implementation of the plan to increase nationalgrain production capacity by 50 million tons, and support northeast China in itseffort to increase its production capacity of japonica rice and com. We willstrengthen development of sugar crop production bases; demonstration bases fordrought"resistant agriculture; quality cottOn production bases in Xinjiang; andcotton production bases in the Yellow, Huai, Hai and Yangtze river basins. Wewill vigorously develop canola production bases in the Yangtze River basin;oil-bearing peanut production bases in the Yellow, Huai and Hai river basins;and soybean production bases in northeast China and Inner Mongolia. We willsupport large cities in developing vegetable supply bases. We will support thedevelopment of large-scale, standardized hog and dairy cow farms and thesystem for cultivating superior breeds of livestock, poultry and aquatic products.We will vigorously develop protected agriculture. We will increase investmentin agricultural scientific research and the application ofresearch results. We willcarry out unified, specialized prevention and control of crop diseases and pests,and comprehensively prevent and control major animal epidemics. We willtighten oversight of the quality and safety of agricultural products. We willstrengthen fishery administration and improve fishing ports.
4) We will strive to facilitate a continuous increase in rural incomes. Wewill raise the floor prices for major grain varieties. When new grain goes on themarket, we will raise the average price of wheat by 5.4 yuan per 50 kilograms,early indica rice by 9 yuan, mid-season and late indica rice by 10 yuan, andjaponica rice by 23 yuan. We will keep expanding the scale of agriculturalsubsidies and raise their standards. We will implement a dynamic mechanismfor adjusting general subsidies for agricultural supplies in step with price rises inagricultural supplies such as fertilizer and diesel fuel. We will give strongsupport to specialized farmer cooperatives, various service organizations in .ruralareas, and leading industrialized agricultural production enterprises, and activelydevelop agricultural sectors that have .local advantages as well as theagricultural product processing industry. We will strengthen county economies.We will improve vocational training and employment guidance services formral migrant workers and protect their rights and interests.
4. We will accelerate industrial restructuring, andfocus on enhancing corecompetitiveness.
I) We will vigorously stimulate independent innovation and thedevelopment of strategic emerging industries. We will conduct research andformulate a plan for improving independent innovation capacity and a nationalmedium- and long-term program for developing major science and technologyinfrastructure. We will intensively advance the Knowkdge Innovation Program,
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the Technology Innovation Program and major science and technologyinfrastructnre projects; accelerate the implementation of key science andtechnology programs; and carry out national pilot projects and demonstrationsfor innovation-oriented cities. We will quickly formmate ahd implement adevelopment plan and supporting policies for strategic emerging industries, setup a special fund for promoting their development, expand the scale of ventnrecapital investment in them, formmate a guiding list for developing them, andwork out industry standards for major emerging industries. We will orgauize theimplementation of industrial innovation and development projects, includingthose on National Broadband Internet Agenda, cloud computing, the Internet ofThings, integrated circuits, flat-panel displays, space infrastructnre, regionalaircraft and industrialization of general aviation aircraft, as well as majorapplication and demonstration ,projects on the health of the people and on usinginformation technology to benefit the people. We will advance national pilotprograms and demonstrations for IT promotion.
2) We will actively transform and upgrade traditional industries. We willcontinue to implement the plan for restructuring and invigorating key industries,and promulgate ahd implement a new guiding catalog for industrialrestructuring. We will strongly support technological upgrading in enterprises.We will actively make adjustments to the allocation of the productive forces inkey industries, including steel, petrocheruicals, non-ft:ITous metals ahdship-building. We will spred up the development of modem industrial clustersof equipment manufactnring, auto parts, textile and other light industries. Wewill stimulate restructuring and upgrading in the food industry, strengthen foodsafety monitoring capabilities, and improve our ability to ensure food safety. Wewill guide enterprise mergers and reorgauizations, and raise the level ofindustrial concentration. We will set up a sound policy framework for phasingout backward production facilities, continue to shut down backward productionfacilities at thermal power plants, steel ruills, iron foundries, cement plants,paper ruills, plate glass plants and other industrial enterprises in accordance withthe law, and start the trial of replacing small coal-fired furnaces with combinedheat and power facilities. We will expedite the development of public serviceinfrastructnre for small and medium-sizt:d enterprises, expand tht:ir fundingchannels, and crt:att: a favorable enviromnent for their development.
3) We will accelerate tht: development of the service sector. We willcontinue to carry out trials of comprehensive reforms in the service sector,establish demonstration areas of clustered dt:velopment of producer services,and make innovations in the pattern of development of consumer services. Wewill focus on developing services oriented toward rural areas, accelerate
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development of high-tech services closely linked with modem manufacturing,and vigorously develop emerging services. We will broaden financing channelsfor service enterprises, and quickly reduce electricity, water, gas and heatingrates for service enterprises encouraged by the state to the same level as thosepaid by industrial enterprises. In 2011, it is projected that the number of urbancommunity service facilities will reach 185,000, an increase of 2.2%. We willspeed up development of information and communications infrastructure;extend the country's optical cables to 10.95 million kilometers, 1 millionkilometers more than last year; and raise the number of broadband Internetaccess ports to 223 million, an increase of35 million.
4) We will strengthen the development of the modern energy industry andthe comprehensive transport system. We will actively push for thetransformation ofthe methods ofenergy production and use, and build a modemenergy industrial system that is safe, stable, economical and clean. We willaccelerate mergers and reorganizations of coalmining enterprises, and carry outthe development of large coalmining bases and large and medium-sized moderncoalmines in an orderly manner. We will strengthen the development oflarge oiland gas production bases and improve the pattern of the refinery industry. Wewill vigorously develop renewable energy sources and promote the developmentand use of new energy sources. In 2011, raw coal output is projected to grow4.9%, cmde oil output will remain basically at the present level, and natural gasoutput will increase 10.1%. Total electricity generation will increase 8%,including 6.1% and 13.3% increases in hydropower and nuclear powerrespectively, and the installed power-generating capacity of on-grid wind powerfacilities will increase 45%. We will speed up the development of importanttransportation routes and integrated transportation hubs; give priority to theconstmction ofpassenger railway lines, trunk railway lines in the western region,national expreSSWaYs, national and provincial trunk highways, the mainnavigation charmel on the Yangtze River, high-grade inland waterways, portsand regional airports in the central and western regions, and main airports in thewestern region; and improve road maintenance. In 2011, the total length ofrailways and highways opened to traffic throughout the country will reach99,000 kilometers and 4.1 million kilometers, up 8.8% and 3% respectively.This includes 13,000 kilometers of high-speed railways and 83,000 kilometersof expressways, increases of 4,700 kilometers and 9,000 kilometers respectively.The total length of high-grade navigable inland waterways will reach 10,400kilometers, 400 kilometers longer than last year. The number of airports openedto air traffic will come to 181, an increase of6.
5. We will optimize the pattern ofregional development, make development
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more balanced, and raise the level ofurbanization.1) We will continue to implement the master strategy for regional
development.We will steadfastly give priority to thoroughly implementing the strategy of
large-scale development ofthe western region in themaster strategy for n~gional
development, carry out the major tasks and policies for developing the westernregion in the new decade, and formulate the twelfth five-year plan forlarge-scale development of the western region. We will issue a list of industriesin the western region encouraged by the state; give greater support to thedevelopment of infrastructure and ecological and environmental conservation;promote the development of industries that can take advantage of local strengths;accelerate the development of national key experimental zones for developmentand opening up; implement the policies to promote leapfrog development ofTibet, Tibetan ethnic areas in Sichuan, Yunnan, Gansu and Qinghai, as well asXinjiang: and launch demonstration projects for ecologically orienteddevelopment in the western region together with the project to tackle problemsin the development of contiguous areas in the western region that have highconcentrations ofpoverty and face special difficulties.
We will improve the modem industrial system in northeast China, compilethe twelfth five-year plan for revitalizing the region, organize theimplementation of the regional cooperation program between China and Russiaand the plan for the ecological conservation and economic transformation of theforest regions in the Greater and Lesser Hinggan Mountains, and carry out trialson sustainable development in resource-dependent cities.
We will thoroughly implement the plan for energizing development of thecentral region; conduct research and formulate policies and measures to supportthe development of the region in the new period; and further strengthen the roleof city clusters in the region and the economic belt along the middle reaches ofthe Yangtze River in driving the development oftheir surrounding areas.
We will actively support the eastern region in its efforts to make innovationsin systems and mechanisms and transform the pattern of development, and incontinuing to take the lead in development.
We will give more assistance to old revolutionary base areas, ethnicminority areas, border areas and poor areas; intensively launch the campaign todevelop border areas and improve people's lives there; and do a good job ofgiving people work instead of relief subsidies and relocating people from .inhospitable areas as a poverty relief measure.
2) We will stimulate growth of development priority zones (DPZs). We willfully implement the national plan for DPZs; make detailed policies with
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guidance tailored to each zone; better coordinate state programs, regional plansand the national plan for DPZs; and establish a sound perfonnance evaluationsystem. We will also accelerate the compilation ofprovincial-level DPZ plans.
3) We will actively yet prudently carry out urbanization. We will compileand implement a plan to stimulate the sound development of urbanization, andrationally designate the functions, industrial distribution and developmentboundaries of large, medium-sized and small cities as well as towns. At thesame time, we need to take into full consideration the needs for employment,education, social security, medical care and low-income housing of ruralmigrant workers in cities, and systematically carry out the work of allowingpeople who have left agriculture for other work and meet the conditions forsettling in cities to become urban residents.
6. We will unwaveringly advance energy conservation and emissionsreduction, and strengthen ecological improvement.
1) We will strictly implement the accountability system for meeting targets.We will do a good job of breaking down the overall targets for energyconservation and emissions reductions in the Twelfth Five-Year Plan into localtargets and improve evaluation methods. We will organize evaluations ofprovincial governments' work on fulfilling targets for energy conservation andemissions reductions during the Eleventh Five-Year Plan period and. implementreward and punishment measures accordingly.
2) We will accelerate the development of key projects. We will implementkey renovation projects for saving energy and the project to promoteenergy-efficient products for the benefit of the people. We will intensify R&Don generic and key technologies for conserving energy and reducing emissions,and successfully demonstrate the industrialization of major energy conservationand environmental protection technologies and promote their application. Wewill push ahead with the construction of urban facilities to treat sewage andgarbage, start work on flue gas denitrification in coal-fired power plants, andmake sure mOre pollution control facilities operate properly. 1h 2011, thepercentages of urban sewage treated and urban household waste safely handledwill increase 3.1 and 1.5 percentage points respectively.
3) We will strengthen management over energy conservation and emissionsreduction. We will fonnulate and implement limits on energy consumption perunit ofproduction in energy-intensive industries and energy efficiency standardsfor the end-use of energy-consuming products. We will strictly enforce thesystem for assessing and examining energy savings in investment projects. Wewill carry out pilot programs on a cap-and-trade system for controlling overallenergy consmnption and trading energy savings. We will give priority to energy
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conservation management in key energy-intensive enterprises, and launch acampaign to get 10,000 enterprises to save energy and lower carbon emissionsand a green-buildings campaign. We will strictly enforce energy·savingstandards for new buildings, accelerate energy-saving renovations to existingbuildings and the reform of the heat supply by installing heating meters innorthern China where heating is supplied, and expand the use of renewableenergy in buildings. We will further implement energy-conservationmechanisms such as energy performance contracting, efficient electricitygeneration and distribution, demand-side management of power, energyefficiency labeling, and state certification and government procurement ofenergy-efficient products. We will strengthen our capabilities in energyconservation management and the oversight and inspection of law enforcementin this regard.
4) We will energetically develop a circular economy. We will improve andimplement policies and measures on encouraging and supporting thedevelopment of a circular economy, and deepen pilot programs anddemonstrations for it. We will accelerate the comprehensive ntilization ofmassive solid waste and make progress in desalinating seawater. We willdevelop demonstration bases for recovering mineral resources from city waste,and give impetus to the industrialization of remannfacturing and thetransformation of kitchen waste into resources. We will comprehensively carryout clean production. In 2011, water consumption per 10,000 yuan ofvalue-added of industry will decrease 7% and the proportion of industrial solidwaste that is comprehensively utilized will increase 1 percentage point.
5) We will strengthen ecological and environmental protection. We willintensify water pollution prevention and control in key watersheds, especiallymajor rivers and lakes; strengthen efforts to clean up heavy metal pollution inkey areas and the comprehensive improvement of the rural environment; andcontrol non-point source pollution in rural areas. We will strengthen efforts toclean up and control marine pollution. We will implement the second phase ofthe virgin forest protection project, accelerate the development of ecologicalshields in the Qinghai-Tibet Plateau, continue to control the sources of duststorms affecting Beijing and Tianjin, comprehensively prevent karst areas frombecoming stony deserts, build key forest shelterbelts, and start ecological andenvironmental protection in and comprehensive improvements to the LoessPlateau and the Qilian Mountain glacier and water source conservation area. Wewill further implement the project of returning grazing land to grasslands andsupport the ecological protection. of major water source supply areas. We willestablish a sound mechanism for ecological compensation, advance pilot
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programs on compensation in major functional ecological zones, and introducea master plan for the national experimental area for comprehensive ecologicalconservation of the sources of the Yangtze, Yellow and Lancang rivers. We willintensifY efforts to bring soil erosion under control through combined measures.And we will put greater emphasis on controlling geological disasters in keyareas.
6) We will actively respond to climate change. We will meet the actiontargets for controlling greenhouse gas emissions. In 2011, we will afforest anadditional 6 million hectares of land, increase. forest stock, and enhance ourcarbon sequestration capability. We will put in place a statistics and accountingsystem for greenhouse gas emissions, expand Jow-carbon trials, and increaseinternational cooperation on responding to climate change.
7. We will work hard to ensure and improve the people:S wellbeing, andestablish a sound system of basic public services and sound socialadministration mechanisms.
1) We will steadfastly implement a more proactive employment policy. Wewill give high priority to promoting employment in economic and socialdevelopment, energetically develop hIbor-intensive industries, small and microenterprises, modern services and househOld services, and encourageentrepreneurship and independentjob seeking. We will put great effort into ourwork concerning the employment of college and university graduates, the ruralmigrant labor force, urban residents who have difficulty finding jobs, anddemobilized military personnel. We will continue to strengthen the developmentof community-level service facilities for employment and social security,establish a sound, unified, standardized and flexible human resources market,and strengthen vocational training. We will improve the mechanism for settlinglabor disputes.
2) We will rationally adjust income distribution. We will conduct researchand formulate a plan to reform income distribution, adjust the pattern ofnationalincome distribution, and narrow the income gap. We will put in place a soundmechanism of regular pay increases fOr enterprise employees, steadily promotecollective bargaining for wages, gradually increase the minimum wage, andresolutely prevent the problem of wage arrears, especially those of rural migrantworkers. We will carry out the reform of the personal income tax system in astep-by-step manner, raise the income tax threshold on salaries by anappropriate amount, reduce the tax burden on low- and middle-income groups,and improve the policy of dual regulations on total payroll and average salarylevels in high-income industries. We will rectifY and standardize the pattern ofincome distribution.
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3) We will genuinely do our social security work well. We will implementthe methods for transferring pension accounts and medical insurance accounts,and turn over the overall management of social insurance accounts tohigher-level authorities. We will improve the mechanism of regular adjustmentsin basic pensions for enterprise retirees and subsistence allowances for urbanand rural residents. We will actively advance the reform of pension insurancesystem for government agencies and institutions, and expand trials of the newtype of pension insurance for rural residents. In 2011, the numbers of urbanparticipants in pension, medical, unemployment and workers' compensationinsurance will reach 8.27 million, 7.94 million, 1.24 million and 8.27 million,respectively. We will accelerate the development of social assistance and socialwelfare programs, and strengthen the development of facilities for caring fororphans, rehabilitating people with disabilities and elderly services. In 2011, thenumber of beds for elderly Care per 1,000 old people will reach 20, up 9.9%,and the numberof service facilities for people with disabilities will be 3,230, up8.6%.
4) We will speed up the development of the system for ensuring adequatehousing. We will intensify the construction of low-income housing; carry out·the development ofpublic rental housing and other low"income housing projects .on a large scale; accelerate the renovation of run-down areas in cities, industrialand mining areas, forest regions and land reclamation :zones; set up amechanism for steady governmental investment in low-income housing and amechanism for guaranteeing the repayment of nongovernmental capital in thisarea; give priority to low-income housing projects when making land supplyand construction plans; and encourage nongovernmental capital to participate inthe construction and operation of public rental housing. We will continue toincrease the effective supply of commodity housing, increase the proportion oflow- and medium-priced housing of modest size, and standardize and developthe rental housing market. We will further implement and improve policies forregulating the housing market, curb housing demand for speculation andinvestment purposes, and prevent housing prices from rising too quickly. Wewill promptly improve our housing systems and policy framework so they bettersuit our national conditions, and establish a permanent mechanism foreffectively adjusting housing supply and demand.
5) We will strengthen the development of key areas in education. We willfully implement the National Medium- and Long-Term Plan for EducationReform and Development. We will accelerate the transformation of needyprimary and secondary schools in rural areas, and continue to carry out theproject to renovate rural junior secondary school buildings in the central and
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western regions, the nationwide program for safe primary and secondary schoolbuildings as wen as the improvement of vocational education infrastructure. Wewin energetically develop preschool education in rural areas, give attention tospecial education, improve senior secondary education and vocational education,and support the development of ethnic coneges and bilingual education in ethnicminority areas. We win carry out the construction of dormitories for teachers atrural schools in remote areas and areas with harsh conditions. We win improvethe quality of higher education, and speed up the development of first-classuniversities and academic disciplines. We win solve the problem of schoolingfor children of families with financial difficulties.· In 2011, the gross enrollmentratio in secondary education is expected to reach 84%, and plans call forenrolling 6.75 million undergraduate students and 560,000 graduate students inregular institutions of higher learning.
6) We win promote the development of medical and health care programs.We will strengthen the development of the medical and health service systemwith the focus on the primary level, carry out the project for setting up bases totrain general practitioners, and develop the system of health supervision, thesystem of emergency medical services in rural areas and the system forpreventing and treating mental health problems. We win increase investment inmedical infrastructure in rural areas, especially in remote areas in the centraland western regions. In 2011, per capita fund for basic public health serviceswin be increased from 15 yuan to 25 yuan, and annual per capita governmentsubsidies on the new rural cooperative medical care system and on basicmedical insurance for non-working urban residents will be raised from 120 yuanto 200 yuan. We win work hard to raise the number of hospital beds per 1,000people to 3.42, up 5.6%. We will improve the population and family plaoningservice system.
7) We win vigorously develop cultural programs and cultural industries. Wewin accelerate the establishment of a public cultural service system coveringboth urban and rural areas. We win actively advance cultural projects thatbenefit the people, and accelerate the construction of key cultural facilities. Wewin promote the flourishing of philosophy and the social sciences, and carry outmajor cultural projects and product innovation in radio, fihn and television, thepress and publishing, and other areas. We will standardize and develop bases forthe cultural industry; strengthen the protection of cultural and natural heritagesites; and open more art galleries, libraries, cultural centers, museums, memorialhalls, and science and technology centers to the public free of charge. We winstrengthen the development oftourism infrastructure and begin to implement thesecond phase of the program for developing tourist sites related to the early
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history of the CPC. We will comprehensively develop recreational sports. In2011, radio and television coverage is forecast to reach 96.71% and 97.43% ofthe population respectively, and 2.31 billion domestic tourist trips will be taken,up 7.4%.
8) We will be innovative in social administration. We will integratecommunity administration resources, further expand channels for people tomake appeals concerning matters affecting their interests, actively prevent andproperly handle all types of mass incidents, and strengthen all facets of publicsecurity. We will strengthen oversight and administration of food and drugsafety. We will resolutely prevent serious and major accidents.
9) We will continue to do a good job in post-disaster recovery andreconstruction. We will fully complete the tasks for post-Wenchuan earthquakerecovery and reconstruction, and make genuine progress in post-disasterrecovery and rebuilding work in Yushu and Zhugqu.
8. We will put more effort into tackling difficult problems in reform, andincrease the impetus and vitality ofeconomic and social development.
1) We will adhere to and improve the basic economic system wherebypublic ownership is dominant and economic entities under diverse ownershipforms develop side by side. We will continue to strategically adjust the publicsector, improve the mechanism for redirecting investments of state capital toensure its rational flow, and cultivate large companies and conglomerates thathave the ability to compete internationally. We will deepen reforms ofthe power,petroleum and salt industries. We will encourage, support and guide thedevelopment of the non-pUblic sector, and create an institutional environmentfor economic entities under all ownership forms to use factors of production onan equal basis in accordance with the law, compete as equals in the market andbe equally protected by the law.
2) We will actively yet prudently carry forward the reform of prices forresource products and environmental protection charges. We will carry out amarket-based reform of prices for refilled petroleum products at an appropriatetime. We will reform and improve the pricing mechanism for natural gas, andmake the price ratio of natural gas to alternative energy sources more reasonable.We will choose an opportune moment to introduce progressive pricing forhousehold electricity consumption. We will improve pricing mechanisms fornuclear power, hydropower and power generated from other renewable energysources. We will press ahead with water price reform. We will do more topromote trials of the cap-and-trade system for pollution rights.
3) We will accelerate the reform of the pharmaceutical and healthcaresystems. We will thoroughly carry out the five key reforms in this area and
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basically complete the major tasks scheduled for 2009-2011. This year we willkeep participation rates in the basic medical insurance schemes for working andnon-working urban residents and the new rural cooperative medical care systemabove 90%. We will implement the basic drug system in all primary-levelmedical and health care institutions run by the government, establish astandardized mechanism for basic drug procurement, press ahead with thecomprehensive reform of primary-level medical and health care institutions, andcreate a steady, permanent compensation system for these institutions. We willeffectively carry out the trial reform of public hospitals. We will implement thepolicy to encourage and guide nongovernmental capital· toward medicalinstitutions.
4) We will deepen reforms of the fiscal, taxation, financial and investmentsystems. We will improve the transfer payment system, enlarge the size andproportion of general transfer payments, and improve the mechanism to ensurebasic funding for county-level govermnents. We will deepen the reform of thebudget management system, and make budgetary work more open. We willextend the reform of resource taxes to more types of resources. We will carryout a trial VAT reform in producer service industries. We will improve thesystem of multilevel capital markets, accelerate the development of the bondand futures markets, and increase the proportion of direct financing. We willenergetically develop new types of rural financial institutions. We will furtherimprove the RMBexchange rate regime. We will promptly formulate theRegulations on Government Investment and the Regulations for Managing theApproval and Recording of Enterprise-Funded Projects.
5) We will continue to advance comprehensive rural reform. We willconduct research and formulate regulations on rural land expropriation. We willdeepen the reform of tenure in collective forests, and continue to implement thepilot reform of state forestry farms arid forest regions. We will vigorously carryout pilot projects for integrated, complete reforms.
9. We will steadfastly implement the win-win strategy of opening up andexpand international economic cooperation.
1) We will optimize the structure of foreign trade. We will adhere to thestrategy of diversifying markets, strengthen traditional markets, energeticallyopen up new markets, and stabilize and expand external demand. We will speedup the transformation and upgrading of the processing trade; support exports ofcomplete sets of equipment, cultural products, software and other commoditiesand services with great demand potential; vigorously develop the outsourcing ofservices; and continue to limit exports of resource products and products whoseproduction is energy intensive or highly polluting. We will improve policies for
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promoting imports, and increase imports of advanced technology and equipment,key spare parts and components, energy and raw materials as well asenergy-conserving and environmentally friendly products. We will strengthenand improve multilateral and bilateral business ties and properly address tradefrictions.
2) We will make better use of foreign capital and improve its performance.We will revise and promulgate the Suggested List of Industries for ForeignInvestment and the List of Industries with Local Strengths in the Central andWestern Regions for Foreign Investment, and lead foreign investment towardhigh-end manufacturing, high-tech industries, modem services, and energycouservation and environmental protection as well as the central and westernregions. We will support the participation of foreign capital in the restructuringand upgrading as well as the merging and reorganizing ofChinese enterprises ina variety of ways. We will actively yet prudently open the service sector widerto foreign involvement. We will further improve the unified management offoreign debts.
3) We will thoroughly implement the "go global" strategy. We will improvefiscal, taxation, financial and insurance policies to help Chinese enterprises "goglobal." We will expand the use ofRMB in cross-border trade and investment.We will improve overseas risk prevention and control mechanisms. We willcontinue to promote cooperation on energy, mineral resources and agricultureoverseas. We will do a good job of providing economic assistance to othercountries.
We will increase exchanges and cooperation between the mainland andHong Kong and Macao, and continue to implement the Closer EconomicPartnership Arrangement. We will support Hong Kong in consolidating andelevating its position as an international financial, trade and shipping center, andenhancing its global financial influence. We will support Macao in making itselfinto a world center of tonrlsm and leisure and fostering an appropriate level ofdiversified economic development. We will deepen cooperation betweenGuangdong, Hong Kong and Macao, and promote the region's economicdevelopment. We will deepen cross-Straits economic cooperation, carry out theEconomic Cooperation Framework Agreement, promote two-way investment,and strengthen exchanges and cooperation in emerging industries, finance andother modem services together with culture, education and other areas. We willgive full play to the role of the Western Taiwan Straits Economic Zone inleading the way and exploring new paths for cross-Straits exchanges andcooperation.
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Fellow Deputies,Successfully completing all the work for economic and social development
in 2011 will be an arduous task and a great responsibility for us. We will uniteeven closer around the CPC Central Committee with Comrade Hu Jintao asGeneral Secretary,· follow the gliidance of Deng Xiaoping Theory and theimportant thought of Three Represents, thoroughly apply the Scientific Outlookon Development, voluntarily accept the supervision of the NPC, and listen withan open mind to comments and suggestions from the CPPCC NationalCommittee members. Let us forge ahead with determination and work diligentlyto achieve the targets for economic and social development and get the TwelfthFive-Year Plan off to a good start.
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