The Third Plenary Session of the 16th Central Committee of the Communist Party of China (CPC) closed on October 14, and outlined major tasks to further improve market economy to build a well-off society in the country.

The four-day meeting heard and discussed a work report delivered by General Secretary Hu Jintao at the entrustment of the Political Bureau of the CPC Central Committee.

The plenum deliberated on and approved two documents: A decision of the CPC Central Committee on issues regarding the improvement of the socialist market economic system and a proposal of the CPC Central Committee on revising part of the country's Constitution.

The meeting decided to submit the two documents to the Standing Committee of the 10th National People's Congress (NPC) for deliberation.

A communique passed at plenum defined these tasks as follows:

Improving the basic economic system of keeping public ownership as the mainstay of the economy and allowing diverse forms of ownership to develop side by side;

Narrowing the gap between urban and rural areas;

Promoting coordinated development of different regions;

Establishing a unified, open and orderly modern market system;

Improving employment, income distribution and social security systems; and

Establishing a mechanism to promote sustainable social and economic development.

The communique called for actively promoting the development of diverse forms of public ownership, noting that a shareholding system that absorbs investment from various channels should be the major form of public-ownership.

The communique also called for establishing a modern property rights system with explicitly defined ownership structure, rights and liabilities, strict protection and smooth transfer channels.

The plenum held that the household-based land contract system is the core of the fundamental system for management in the countryside, and China should keep stabilizing and improving the two-tier system of combining unified management with independent management. It called for protecting the rights of farmers on land contract and management.

The plenum called for accelerating the building of a unified national market, opening up the market domestically and internationally, developing a market for capital and other production means, and promoting free circulation and full competition of production means.

The government should strengthen its coordination and guiding on regional development, actively advance the development of the underdeveloped areas in the west, bring into play the comprehensive advantages of the country's central areas, support the western and central regions to speed up local reforms, rejuvenate old industrial bases in northeast China, and encourage some east-em areas with better conditions to take the lead in realizing modernization.

China will deepen reform of the investment system, implement tax reforms, push forward the reform of the financial management system, deepen the reform of banking enterprises, improve the mechanism to adjust the financial sector, and improve the regulatory system for financial industry.

China will also deepen the structural reform of its foreign economic exchanges, improve the system guarantee for the opening up to the outside world, help overseas investment play a better role, and increase the capabilities to join in international cooperation and competition.

The meeting held that the issue of expanding employment be put higher on the agenda of the government, along with the pursuit of a proactive employment policy. Steps should be taken to strengthen the regulation of individual incomes in a bid to narrow the growing gap between the rich and poor.

The building of a complete socialist market economic system is a major decision taken by the CPC in the new phase of the century, said the meeting, urging all Party members to fully realize their historic responsibility and take concrete steps to help reach the target. However, it noted the reform should be conducted step by step in line with the basic national conditions of the country.

The meeting also called for active promotion of political system reform, saying that such reform would provide political guarantees for the development of the socialist market economy.

As for the constitutional revision, the communique said that the major theoretical opinions and policies set forth at the 16th National Congress of CPC will be written into the Constitution.

The meeting emphasized that China's Constitution, as the basic law of the country, serves as both the general statute in ruling the country and managing state affaire and the legal basis for maintaining state integrity, national unity, economic development, social progress and long-term stability.

It was pointed out that while revising the Constitution, the four basic principles, namely the adherence to the socialist course, the people's democratic dictatorship. the leadership of the CPC, and Marxism, Leninism and Mao Zedong Thought, should be observed. Democracy would be further promoted, opinions from all social circles be solicited and the law be strictly adhered to.