The Third Plenary Session of the 16th
Central Committee of the Communist Party of China (CPC), which
closed in Beijing Tuesday, outlined major tasks to further improve
market economy to build an affluent society in the country.
The plenum deliberated 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.
A communique passed at plenum defined these tasks as
follows:
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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;
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Narrowing the gap between urban and rural areas;
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Promoting coordinated development of different regions;
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Establishing a unified, open and orderly modern market system;
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Improving employment, income distribution and social security
systems; and
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Establishing a mechanism to promote sustainable social and economic
development.
The communique called for actively promoting the development of
diversified forms of public ownership, noting that a share-holding
system that absorbs investment from various channels should be the
major form of public ownership.
The communique called for vigorously promoting and guiding the
private sector of the economy and granting private enterprises the
same treatment in investment, financing, taxation, land use and
foreign trade.
"Non-public capital should be allowed to enter infrastructure,
public utilities and other sectors not prohibited by laws and
regulations," said the communique.
The communique called for establishing a modern property rights
system with explicitly defined ownership structure, rights and
liabilities, strict protection and smooth transfer channels.
It said property rights of various types should be protected in
accordance with the law.
The session heard 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 management system.
The session called for protecting the rights of farmers on land
contract and management.
Within the term of contract, rural households have the right to
sell their farmland management rights in accordance with law and at
their own will. The regulations on the circulation of farmland
should be improved, while large-scale farming should be developed
step by step in a proper manner.
The strictest system of protecting cultivated land must be
adopted to ensure national grain security. Under the principles of
protecting farmers' rights and interests and controlling the amount
of land turned to other uses by the government, China will reform
its land-use system and improve procedures on land use.
The rural product marketing system should be improved, through
changing indirect subsidies for farmers, during the circulation, to
direct subsidies, in order to protect farmers' interests.
The state will exert greater efforts to support and protect
agriculture, deepen rural tax reform, and reduce the financial
burden on farmers substantially.
Great efforts should be made to develop the county-based
economy, accelerate the pace of urbanization, unify urban and rural
labor markets step by step, create a system for equal employment of
urban and rural laborers, so as to create more job opportunities
for farmers.
The session 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.
It called for strengthening public awareness of the personal
credit system, and building a personal credit system with morality
as its support, property rights as its basis, and law as its
guarantee.
China will continue improving its national macro-economic
control system, accelerating the functional shift of the
government, deepening administrative reform, and making substantial
efforts to make administration of the economy serve the market and
create a sound environment for development.
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 the old
industrial bases in northeast China, and encourage some eastern
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 on financial industry.
China will 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.
"Efforts should be made to speed up the building of a social
security system compatible with the country's economic
development," it said, urging the improvement of industrial
workers' pension systems and unemployment insurance system for
others.
The meeting also called for deepening the reform of the
administrative system to establish a transparent, clean and
efficient administration.
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.
"In light of objective demands arising from China's economic and
social development, to write the major theoretical opinions and
policies set forth at the 16th CPC National Congress into the
Constitution according to legal procedures will better serve its
role as the basic law of the country," it said.
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 affairs and the legal basis for
maintaining state integrity, national unity, economic development,
social progress and long-term stability.
Practice has proven that the existing Constitution is a good one
and should remain stable in that it accords with the specific
situation of the country and plays an extremely important role in
the country's economic, political, cultural and social lives.
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
Communist Party of China, 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.
"The revision of the constitution should help consolidate the
leadership of the Party, manifest the advantage of the socialist
system, mobilize the initiative of the masses, safeguard state
integrity, national unity and social stability and promote economic
development and social progress," said the communique.
The existing Constitution, consisting of 138 articles in four
chapters, was formulated in 1982 and was later amended three times,
in 1988, 1993 and 1999.
The First Session of the Seventh NPC in 1988 approved amendments
to Article 11 of the Constitution, which says the state permits the
private economy to exist and grow within the limits prescribed by
law and the private economy is a complement to the socialist public
economy.
The First Session of the Eighth NPC made nine amendments to the
Constitution, adding to the Constitution the theory of building
socialism with Chinese characteristics, adhering to reform, opening
up and multi-party cooperation under the leadership of the CPC and
the political consultation system.
The Second Session of the Ninth NPC in 1999 made six amendments
to the Constitution, enshrining the guiding role of Deng Xiaoping
Theory. In the amendments, the rule of law is stipulated as a state
policy and the role of the private economic sector is further
highlighted as important in the national economic system.
According to the communique, the document on constitutional
amendments will be submitted to the Standing Committee of the 10th
National People's Congress (NPC) for deliberation.
The plenum, which opened October 11, was presided over by the
Political Bureau of the CPC Central Committee. Hu Jintao, general
secretary of the CPC Central Committee, delivered an important
speech.
(Xinhua News Agency October 15, 2003)