Home Nation World Business Science/Technology Photo Gallery Arts & Culture Special Health Video
Beijing Review Exclusive 17th CPC National Congress> Beijing Review Exclusive
UPDATED: October-26-2007 NO.44 NOV.1. 2007
A Sound Economic Future
"Promoting sound and rapid development of the national economy" is China's goal for economic development in the following five years, as put forward by Hu Jintao, General Secretary of the Central Committee of the Communist Party of China (CPC), in his report to the 17th National Congress of the Party
 

China used to target "rapid and sound" economic growth. The fact that soundness is preferred to speed for China's economic growth reflects an important change in the economic outlook of the CPC--China is beginning to value the quality of economic growth rather than the speed. How to attain the goal of sound and rapid development for the national economy is the subject of Hu's eight-point proposal.

Point I: Enhance China's capacity for independent innovation and make China an innovative country

Quote: We will speed up forming a national innovation system and support basic research, research in frontier technology and technological research for public welfare. We will step up our efforts to establish a market-oriented system for technological innovation, in which enterprises play the leading role and which combines the efforts of enterprises, universities and research institutes, and guide and support the concentration of factors of innovation in enterprises, thereby promoting the translation of scientific and technological advances into practical productive forces. We will deepen reform of the system for managing science and technology, optimize the allocation of relevant resources, and improve the legal guarantee, policy system, incentive mechanism and market conditions to encourage technological innovation and the application of scientific and technological achievements in production. We will implement the strategy for intellectual property rights. We will make the best use of international resources of science and technology. We will continue to create conditions conducive to innovation, train world-class scientists and leaders in scientific and technological research, inspire creative wisdom and bring forth large numbers of innovative personnel.

Interpretation: It was decided at the Fifth Plenary Session of the 16th CPC Central Committee in October 2005 that China would make the enhancement of innovation a strategic point in economic and social development. Many enterprises and research and development (R&D) institutions have increased spending in innovation. Industries including aerospace, iron and steel, medical treatment, automobile, electronics, IT and machinery manufacturing, own many core technologies with independent intellectual property rights. Statistics from the World Intellectual Property Organization show that in the past decade, the number of registered patents worldwide had grown by 70 percent. During the same period the number of registered patents in China had increased by 488 percent. In the future, China will focus on making breakthroughs in core technologies that play a key role in promoting economic and social development.

Point II: Accelerate transformation of the mode of economic development and promote upgrading of the industrial structure

Quote: We will develop a modern industrial system, integrate IT application with industrialization, push our large industries to grow stronger, invigorate the equipment manufacturing industry, and eliminate outdated production capacities. We will upgrade new- and hi-tech industries and develop information, biotechnology, new materials, aerospace, marine and other industries. We will develop the modern service industry and raise the level of the service sector and its share in the economy. We will step up efforts to improve basic industries and infrastructure and accelerate development of a modern energy industry and a comprehensive transport system. We will ensure the quality and safety of products. We will encourage formation of internationally competitive conglomerates.

Interpretation: One of the priorities for the Party since the 16th CPC National Congress in 2002 has been to adjust the industrial structure and promote the upgrade of industrial restructuring. Since the release of the Catalogue for the Guidance of Adjustment to Industrial Structure in 2005, China has achieved remarkable results in adjusting its industrial structure. A large number of outdated production capacities have been eliminated in the electric power, iron and steel, electrolytic aluminum, chemical, coal and paper-making industries. A total of 55 million tons of outdated production capacities were put into disuse in the iron and steel industry in 2005 and 2006, and 110 million tons, in the coal industry in 2006. The electric power industry will eliminate small outdated power generating units of 50 megawatts this year. The Chinese Government is vigorously supporting hi-tech industries such as electronics and telecommunications through tariff reduction and exemption for machinery or equipment imported for the electronic and telecom sectors. The National Development and Reform Commission approved 539 hi-tech projects which are encouraged to develop. Up to now, the rapid growth of investment in iron and steel, coal, electric power and electrolytic aluminum industries has been put under control, while the development of information, biotechnology, new materials, aerospace, marine and other industries has been accelerated.

Point III: Balance urban and rural development and build a new socialist countryside

Quote: We will continue to take developing modern agriculture and invigorating the rural economy as a primary task, strengthen infrastructure in rural areas, and improve the system of rural markets and that of services for agriculture. We will increase policy measures to support and benefit agriculture, rural areas and farmers, strictly protect arable land, increase spending on agriculture, promote advances in agriculture-related science and technology, and improve overall agricultural production capacity to ensure food security for the nation. We will intensify efforts to prevent and control animal and plant epidemic diseases and improve the quality and safety of agricultural products. To increase farmers' income, we will develop rural enterprises, expand county economies, and transfer rural labor out of farming through various channels. We will enhance poverty reduction through development. We will deepen the comprehensive rural reform, promote reform and innovation in the rural banking system, and reform the system of collective forest rights. We will uphold the basic system for rural operations, stabilize and improve land contract relations, improve the market for transferring land contract and management rights in accordance with the law and on a voluntary and compensatory basis, and develop various forms of appropriate large-scale operations where conditions permit. We will explore effective forms of collective economic operations, develop specialized farmers' cooperatives, and support the industrialized operation of agriculture and the development of leading agribusinesses.

Interpretation: The plan for building a new socialist countryside as set forth in the Fifth Plenary Session of the 16th CPC Central Committee has been smoothly implemented with overall healthy results. In 2007, a total of 391.7 billion yuan will be allocated from the central budget for agriculture, rural areas and farmers. This is 52 billion yuan, or 15.3 percent, more than was provided for 2006.

The building of a new countryside ensures sustained increases of farmers' income. The increase of farmers' net per-capita income has exceeded 6 percent for three consecutive years since 2004. By June this year, 720 million farmers, or 82.8 percent of the agricultural population nationwide, had participated in the pilot program of a new-style rural cooperative medical care system. A nationwide basic minimum cost of living allowance system for rural residents has been put in place. Currently, the system covers 20.68 million farmers. The government has abolished the tax on special agricultural products, the animal husbandry tax and the slaughter tax nationwide, and relieved farmers of the burden of up to 120 billion yuan in 2006 in comparison to that in 1999.

Point IV: Improve energy, resources, ecological and environmental conservation and enhance China's capacity for sustainable development

Quote: We will develop and extend advanced and appropriate technologies for conserving, substituting and recycling energy and resources, develop clean and renewable energy sources, protect land and water resources and set up a scientific, rational system for using energy and resources more efficiently. We will develop environmental conservation industries. We will increase spending on energy and environmental conservation with the focus on intensifying prevention and control of water, air and soil pollution and improving the living environment for both urban and rural residents. We will improve water conservancy, forestry and grasslands and promote restoration of the ecosystems. We will enhance our capacity to respond to climate change and make new contributions to protecting the global climate.

Interpretation: China is abundant in energy and resources, but the per-capita share is small. China's per-capita freshwater availability stands at 2,200 cubic meters, only about a quarter of the world average. Per-capita arable land is 0.09 hectares, less than 40 percent of the world average. The per-capita forestry area gives an average of 0.13 hectares, only one fifth of the world average. The per-capita shares of 45 varieties of major minerals in China are less than the half of the world average. The severe problem of environmental pollution accompanying economic growth has remained to be solved. As a result, it is crucial to the survival and development of the nation to improve energy efficiency and mitigate the burden on ecological environment protection due to energy

1   2   Next  



 
Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
More Beijing Review Exclusive
-Optimism in the Ranks
-Joining the Party
-Growing a New Social Stratum
-Other Members of the Political Bureau of the 17th CPC Central Committee
-Members of the Standing Committee of the Political Bureauof the 17th Central Committee of the Communist Party of China
-Anti-Corruption Campaign
-Buzz Phrases From the 17th National Congress of the Communist Party of China
Most Popular
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved