4. We will enhance the capacity for independent innovation and promote improvement and upgrading of the industrial structure.

1) We need to diligently implement the Outline of the National Program for Long- and Medium-term Scientific and Technological Development, and introduce another set of detailed rules for implementing support policies to encourage independent innovation. We will carry out major state science and technology projects, develop a group of major science and technology infrastructure facilities, build a number of state engineering laboratories and research centers, provide support for a number enterprise technology centers that have obtained state recognition and promote association of applicable technology research institutes with production enterprises. We will continue to develop the platform to support technology sharing, improve agencies dealing in technical consultation and technology transfer and strengthen the protection of intellectual property rights.

2) We need to accelerate the development of the service sector. We will carefully carry out planning and development of projects in key areas of the service sector. We will relax and standardize entry-level requirements, implement fiscal, tax and pricing policies to support the development of key areas, shore up weak links and support development of new growth areas in the service sector. We will learn from advanced foreign practices, technologies and management expertise to improve the quality and level of China's service industries.

3) We need to adjust and improve the industrial structure. We will implement the Provisional Measures for Promoting Industrial Restructuring and the Guiding Catalogue for Industrial Restructuring, improve the system for managing entry into industries, accelerate restructuring of industries with excess production capacity, encourage and support mergers and reorganization among enterprises in the steel, cement, electrolytic aluminum, coal, textiles and papermaking industries, and close down backward production facilities in accordance with the law. We must also pay close attention to changes in supply and demand in the markets for other industries and the status of their production so we can promptly take measures to prevent development of additional excess production capacity. We will extensively apply advanced information technology to transform traditional industries, paying particular attention to upgrading technology in the steel, building materials, coal, power, petrochemicals and construction industries.

4) We need to strengthen the core competitiveness of high-tech industries. We will continue to carry out projects for high-tech development and projects for industrial application of high-tech advances in the fields of biopharmaceutical, integrated circuits, new generation mobile communications, next generation Internet and information security, and work out industrial policies on software and integrated circuits, digital TV and bioindustry. We will set up high-tech industrial bases for electronic information, biotechnology and aeronautics and aerospace, and foster the formation of groups of new industries.

5) We need to vigorously promote the development of the equipment manufacturing industry. We will introduce as soon as possible measures to encourage the purchase and use of key equipment that are newly developed and manufactured domestically, and formulate a plan and general implementation program for major projects to develop high-grade digitally controlled machine tools and basic manufacturing equipment. We will begin independent production of key equipment for the Ling'ao (Phase II) and Hongyanhe nuclear power station projects and launch trial demonstration projects for 1,000-kilovolt AC and 800-kilovolt DC transmission and transformer facilities. We will consolidate and continue progress in producing urban rail transit facilities independently, promote independent production of high-tech ships and ship equipment, and accelerate the infrastructure development of large shipbuilding facilities.

6) We need to systematically develop alternative energy. We will promptly work out a long- and medium-term program for developing alternative energy and plans for developing coal-based alternative energy and biomass energy. We will first conduct trials and then proceed steadily, avoiding rushing into any technology before it has matured.

5. We will implement the overall strategy for regional development and promote balanced economic development among regions.

1) We need to continue to accelerate the development of the western region. We will carry out the plan for the large-scale development of the western region in the Eleventh Five-year Plan period by accelerating the development of infrastructure, ecological improvement, environmental protection, science and technology and education. We will begin work on a group of key projects to speed up infrastructure development of railways, trunk highways, branch-line airports and inland waterways. We will vigorously develop competitive and distinctive resources in the western region and set up manufacturing bases that take advantage of them. We will promptly work out follow-up policies to consolidate and develop the results in returning farmland to forests and returning livestock pastures to grasslands. We will continue key ecological projects such as those to protect virgin forests, bring desertification under control and prevent the spread of stony deserts. We will strengthen human resource development and the legal system in the western region. We will improve coordination and cooperation among the eastern, central and western regions.