China's new premier, Wen Jiabao, and four vice premiers met the
press in Beijing Tuesday, shortly after the closing meeting of the
First Session of the 10th National People's Congress (NPC). Premier
Wen answered questions from both Chinese and foreign
correspondents.
Objectives and Policies of New Cabinet
China's new cabinet should continue to maintain a sustainable and
comparatively rapid development of the national economy and improve
people's living standards, new Chinese Premier Wen Jiabao said in
Beijing Tuesday morning.
This is "one goal" China's new cabinet will strive to achieve, the
premier told a press conference held shortly after the closing
meeting of the First Session of the 10th National People's Congress
(NPC), adding that it is vital for the government to maintain
continuity and stability of policies and stick to the policy of
expanding domestic demand and implement the proactive fiscal
policy, in order to achieve the goal.
The new premier put the work of his new cabinet in a nutshell of
"four phrases," namely, to "achieve one goal," "implement two key
policies," "solve three major economic problems" and "promote
reforms in four major aspects."
The two key policies are: To realize the strategic economic
restructuring and continue to open up to the outside world.
The three major economic problems are: How to solve unemployment
and social security system, how to increase fiscal revenue and cut
public spending, and how to correct and standardize the economic
order. The "reforms in four aspects" refer to the reform of the
rural economy, the reform of state-owned enterprises, the reform of
financial system and the reform of governmental agencies.
Wen said that rural reform covers rural taxation system, grain
purchase and sales, subsidies to farmers, the rural financial
system and rural medical and health service.
The premier said China will continue to take state-owned enterprise
reform as the central task of the overall economic reform, aiming
at establishing a modern corporate system, and in the meantime,
China will promote the reform of the system for managing state
assets.
He
said that while establishing and improving the financial regulation
system, his government will take steps to speed up the reform of
state-owned financial enterprises so as to establish a modern
financial enterprise system in its true sense.
The premier laid out a number of principles necessary for achieving
the above objectives.
He
stressed the necessity of giving priority to the development of
agriculture and rural economy, and of promoting a coordinated and
well-balanced development between urban and rural areas.
He
encouraged the eastern areas of China to seize the opportunities to
accelerate development and renovate and revitalize old industrial
bases and the western part to implement the western China
development strategy.
The premier said that his government will take full advantage of
the opportunities brought about by China's accession to the WTO to
open wider to the outside world.
He
pledged continued efforts to implement the sustainable development
strategy and the strategy of developing the country by relying on
science and education so as to achieve steady economic and social
development.
China will strive for a proper balance among development speed,
dimension of reform and social bearing capacity in order to realize
the perfect integration of reform, development and stability, he
added.
Problems and Challenges Ahead
The premier said that his new cabinet is starting work on a "good
foundation" laid by his predecessors, or the previous cabinet
headed by Zhu Rongji, but the new cabinet must be prepared for
"possible adversities" and still faces many problems and
challenges.
The comparatively sluggish development of agriculture and the slow
increase of farmers' income have emerged as a major problem facing
his new cabinet, Wen said.
The construction of modern corporate system is a long-term task.
The increasing number of laid-off workers and the gap between urban
and rural areas and the east and west parts of the country are also
hard tasks for the new government, said the premier. China now
faces a heavy fiscal burden, and the amount of non-performing loans
in banks is quite high.
But Wen said that China can solve these problems with its strong
material and technological foundation and social and political
stability. China is able to overcome various difficulties and
fulfill the lofty target of building an affluent society in an
all-round way under the leadership of the Communist Party of China
(CPC) Central Committee with Hu Jintao as General Secretary.
He
said there is a lot to learn from his predecessor Zhu Rongji.
Although many people consider him a mild-tempered person, he told
the press that he is a man of strong belief and ready to take every
responsibility resolutely regardless of possible bad luck.
Wen Vows to Live up to Expectations of People
Wen said that he will spare no effort to meet the expectations of
the Chinese people.
He
briefed the press on his family background. Born into a family of
teachers in rural China, Wen said his grandfather and parents were
all teachers. His family and the primary school run by his
grandfather were destroyed by warfare. "Suffering of the old China
left unforgettable impression in my tender mind," he said.
Wen then worked in the field of geology for 25 years, mostly "under
harsh conditions", he said.
Through all the hardships, "I nurtured a confidence that a person,
a nation or a country can reach the glorious summit so long they
can endure all hardships," he said.
Wen then worked in Zhongnanhai, headquarters of the central
authorities, for 18 years. During this period he witnessed the
accomplishments made by China under the leadership of Deng Xiaoping
and Jiang Zemin.
China now faces a historic period for development, he said. "Only
under the leadership of the Communist Party of China and by
continuing the reform and opening-up can China realize prosperity,"
he stressed.
During his working period in the central government, Wen traveled
widely across China, which helped him further understand the
conditions of the country and people.
As
new premier, Wen vowed to earnestly assume his duty as granted by
the Constitution and make every effort to meet the expectations of
the Chinese people.
Wen vowed to strengthen the effort to fight against corruption. His
cabinet is willing to put themselves under the supervision of the
people and the whole society, Wen said.
New Premier's Happiness and Worry
Wen said that he had lots of figures which make him both happy and
worried, pointing to China's fast GDP growth as well as the slow
increase of farmers' income, rising unemployment, lingering poverty
and east-west disparity in development.
Relevant figures were all stored in his brain, dubbed as "a
computer" by some western diplomats.
China has a huge labor force of 740 million, while the combined
labor force for developed countries in Europe and North America is
just 430 million, Wen noted.
Meanwhile, each year China sees the increase of some 10 million new
urban labor, and the country's laid-off and jobless people now
total nearly 14 million, he said.
The size of rural migrant workers in cities is regularly kept at
around 120 million, putting China under immense employment
pressure, he added.
Some 900 million of China's total 1.3 billion population live in
the countryside, and 30 million of them still live under the
poverty line.
"If the benchmark for the poverty line is raised by 200 yuan, the
number of Chinese people living in extreme poverty will surge to 90
million," he added.
In
a display of the widening gap between China's east and west, some
five to six provinces and cities have contributed more than 50
percent of the country's GDP (gross domestic product), Wen pointed
out.
"These figures make me worry," he said.
However, he said there are also some statistics which make him feel
happy.
These figures include an average GDP growth of more than 9 percent
in the past two decades and more, as well as a whopping foreign
exchange reserve of some US$300 billion, he said.
On Non-public Sectors
China will continue to support the growth of enterprises in the
non-public sectors and treat them the same as enterprises in the
public sector with regard to market access, taxation, bank loans
and import and export, said Wen.
The enterprises in the non-public sectors play a very important
role in creating jobs, he said.
"It is the government's steadfast policy to support the growth of
enterprises in the non-public sectors, including private
enterprises," Wen stressed.
Stable RMB Benefits All
Wen said that a strong and stable Renminbi is beneficial not only
to China, but also to Asia and the world as a whole.
He
said that China adopts a regulated floating exchange rate system
according to market demands. Since 1994 when China reformed its
exchange rate system, RMB has appreciated 18 percent against the US
dollar and 34 percent against euro in real terms.
On Ownership of Banks
Wen said that with the supervision continuing to improve,
diversified ownership will be a certain trend for Chinese banks,
but will go through a fairly long period of time.
He
said China has only a history of a dozen years in building
commercial banks in true sense, and that share-holding banks have
already emerged.
On Non-performing Loans
Wen said that reform is the key to resolve the problem of the high
non-performing rate of loans (NPL) in state-owned commercial
banks.
The banks will focus on the building of modern corporate structure
and the establishment of modern financial system and will create
conditions to carry out share-holding system in a bid to cut down
non-performing loans, he said.
On Farmers' Financial Burden
China will continue to cut down financial burden on its farmers
through various means, including downsizing the government payroll
in rural China, while offering more financial resources for rural
areas, Wen said.
As
of this year, the increased portion of central government budget
earmarked for science and technology, education, culture and health
will go primarily to rural areas, said the premier.
On Political Restructuring
China is to push forward political restructuring in three aspects,
including scientific decision-making, law-based administration and
democratic supervision.
Wen said China will draw opinions from officials, experts and
civilians for major issues and economic construction projects, to
forge a scientific and democratic decision-making system. A
law-based administration will be carried out, receiving restrain
and regulations from public.
China will also push forward democratic supervision, with the
government under the supervision of the National People's Congress
(NPC) of China, the Chinese People's Political Consultative
Conference (CPPCC), the common people and the media, said Wen.
He
emphasized that only by advancing democratic supervision, will the
government not slow down its pace.
Wen said continuously perfecting China's political system and
administration will be one of his priorities. He also said that he
is a man ready to take responsibilities and will devote himself to
serving the country.
China will press ahead with its institutional reform, the reform of
the system of administration, examination and approval, and
continue to reform financial management and management of human
resources, Wen said, adding that his new government is willing to
accept supervision by the Chinese people.
Continuing Support to Hong Kong
The Hong Kong Special Administrative Region is capable of
overcoming difficulties it faces under the leadership of Chief
Executive Tung Chee-hwa, said Wen.
Wen said that the central government will continue to render
support to the Hong Kong Special Administrative Region (SAR) to
ensure its stability and prosperity.
The central government "will spare no effort" in this regard, he
stressed.
The central government has planned to promptly implement all
measures for building up closer economic relations between the
inland areas and the HKSAR, he said.
To
safeguard the stability of HKSAR is "a firm goal and duty-bound"
for the central government, he added. The new premier expected to
visit Hong Kong at the earliest possible time.
On Taiwan Issue
The new Chinese government will continue to follow unswervingly the
policy of peaceful reunification of the motherland on the basis of
"one country, two systems," said Wen.
"I
want to take this occasion to extend my best regards to the Taiwan
compatriots," said Wen.
It's the common aspiration of the entire Chinese people, including
the Taiwan compatriots, to see the complete reunification of the
motherland, said Wen.
On
the basis of the one-China principle, the Chinese government will
seek the early restoration of dialogue and talks across the Taiwan
Straits while opposing Taiwan independence, he said.
The Chinese government will also work hard to promote economic and
cultural exchanges across the Straits and work for the early
realization of the three direct links between the two sides, he
added.
The government is firmly opposed to "Taiwan independence," said the
premier.
On Stability
Wen said that stability is of "critical importance" to China. "As
the premier of a nation with a population of 1.3 billion, I'm most
concerned about the country's development and stability," he
said.
China owes its great achievements in the past 13 consecutive years
to a stable domestic situation, he said.
On the Iraqi Issue
The Iraqi issue should be settled peacefully through political
means within the framework of the United Nations and war should be
avoided, Wen said.
The UN Resolution No. 1441 should continue to be implemented, and
the inspection work should be continued, he said.
In
the meantime, Wen said, China held that the Iraqi government should
strictly abide by the relevant UN resolutions. Iraq should
coordinate with international organizations to proceed weapon
inspection, and possess no weapons of massive destruction.
Now the war on Iraq is like an arrow put upon a bow, and under the
touch-and-go situation. Even with a clinch of hope, China will not
give up efforts to solve the Iraq issue through political means, he
said.
Wen said that the United Nations Resolution 1441 complies with the
United Nations Charter and should be honored.
China's stance on the Iraqi issue is a clear-cut one, Wen noted.
"China will continue to adhere to the position that the Iraqi issue
should be resolved by peaceful and political means."
China has noticed the latest address made by US President George W.
Bush on Iraqi issue, the premier said.
On Sino-Russian Relations
Wen Jiabao said that China-Russian ties will see stable growth
thanks to concerted efforts made of both countries.
China and Russian share more than 4,000 kilometers of common
border. "The stability and development of Sino-Russian ties comply
with the fundamental interests of the two peoples," he said.
The Sino-Russian strategic partnership of cooperation has scored
further development and the Sino-Russian Good-Neighborly Treaty of
Friendship and Cooperation signed by the two countries has laid a
legal foundation for the bilateral ties, he said.
China and Russia will continue to give play to the role of the
Shanghai Cooperation Organization, a six-member regional
organization founded in 2001, he noted.
"All members will strengthen consultation on major international
issues and make due contribution to safeguarding world peace and
promoting common development," the Chinese premier said.
On Sino-Japanese Relations
Wen said that he would visit Japan only when there is an
"appropriate atmosphere."
Wen said that China hopes to develop relations with Japan at all
fields, including high-level exchanges. But he stressed China hopes
Japan can strictly observe the three joint documents between the
two countries, take history as a mirror and look forward to the
future.
To
handle the issues left over in history appropriately is always the
political basis for the development of bilateral relations between
the two countries, Premier Wen said.
On Palestine-Israeli Conflict
The Palestine-Israeli conflict should be resolved through peaceful
dialogue, said Wen.
"We truly hope the two sides can work to avoid war and resolve the
conflict through peaceful resolution," Premier Wen said at the
press conference.
(China.org.cn March 18, 2003)