Content

I. Implementation of the 2010 Plan for National Economic and Social Development
II. Overall Requirements and Major Objectives for Economic and Social Development in 2011
III. Major Tasks and Measures for Economic and Social Development in 2011

III. Major Tasks and Measures for

Economic and Social Development in 2011

This is the first year of implementing the Twelfth Five-Year Plan. Successfully completing all the work for economic and social development in 2011 is of great significance for continuing to seize and make full use of this important period of strategic opportunities as well as greeting the 90th anniversary of the founding of the CPC with outstanding achievements. We need to continue to strengthen and improve macro control; more actively yet prudently handle the relationships between maintaining steady and rapid economic development, restructuring the economy and managing inflation expectations; and make stabilizing the overall level of prices the main task of macro-control. We will continue to implement a proactive fiscal policy and fine-tune the intensity of policy implementation. We will reduce the budget deficit and the scale of government bonds by appropriate amounts. This year, we have projected a deficit of 900 billion yuan, 150 billion yuan less than last year. This figure includes a central government deficit of 700 billion yuan and 200 billion yuan in bonds that will be issued by the central government on behalf of local authorities and be included in local government budgets. The deficit as a percentage of GDP will drop to about 2%. We will implement a prudent monetary policy; the broad money supply (M2) is expected to increase 16% this year; and we will keep financing from all sources at a reasonable level. We need to have a good grasp of the intensity, tempo and focus of policy implementation; strengthen coordination between policies; and comprehensively consider both short-term macro-control policies and long-term development policies. We need to work hard to resolve major problems presently hindering our development and prevent large economic fluctuations, and at the same time, we also need to effectively resolve deep-seated problems and defuse potential risks, and make development more coordinated, sustainable and internally vigorous.

In 2011, we will concentrate on the following nine tasks.

1. We will strengthen price regulation and oversight, and keep the overall level of prices basically stable.

1) We will ensure adequate market supply. We will effectively implement the system whereby provincial governors are responsible for the "rice bag" (grain supply) and mayors are responsible for the "vegetable basket" (non-staple food supply). We will improve the reserve system for important commodities and the system for temporarily purchasing and stockpiling major agricultural products, scientifically decide when to increase or reduce reserves, and properly adjust import and export volumes. We will open up channels for the distribution of agricultural products, intensify our work on linking markets directly with agricultural producers, standardize and reduce the rent of stalls at farm produce markets and supermarket slotting fees, and support the upgrading and renovation of key wholesale markets and the development of large grain logistics nodes, wholesale vegetable markets, community vegetable stores and cold-chain logistics.

2) We will make regulation better targeted. We will strengthen liquidity management. We will establish a sound market monitoring and early warning system for important agricultural and sideline products, and improve contingency plans for regulating key commodity markets and prices. We will properly handle the timing, pace and intensity of adjustments to the prices of commodities and services under government regulation. We will set up a sound price adjustment fund in accordance with the law.

3) We will strengthen oversight of prices. We will improve oversight of the futures market for agricultural products, review and rectify electronic trading markets for agricultural products, and curb excessive speculation. We will strictly examine and verify grain purchasing qualifications, and standardize the sale and intensive processing of agricultural products. We will earnestly implement the Regulations on Administrative Penalties for Price Irregularities and the Regulations on Countering Price Fixing, and crack down hard on illegal practices, including hoarding for speculation, price gouging, raising prices in disguised forms and colluding to drive up prices.

4) We will improve the subsidy system. We will continue to provide temporary price subsidies to entitled groups, subsistence allowance recipients in urban and rural areas, and childless and infirm rural residents who receive the five guaranteed forms of support (food, clothing, medical care, housing and burial expenses). Governments at all levels will increase allowances to higher education and secondary vocational school students from poor families as well as subsidies to student cafeterias of such schools. We will set up as soon as possible a sound mechanism for coordinating subsistence allowances and unemployment insurance benefits with price rises to guarantee the basic living conditions of low-income people.

5) We will improve the price environment. We will enforce all rules and regulations on reviewing and standardizing the collection of fees; continue to rescind unreasonable fees; lower excessively high fees; and strictly prohibit the unauthorized collection of fees, overcharging and collecting fees in disguised forms.

6) We will strengthen the guidance of public opinion. We will ensure the price situation is accurately reported, clearly explain pricing policies, and crack down hard on those who maliciously drive up prices by fabricating stories or spreading false information.

2. We will adhere to the strategy of expanding domestic demand, especially consumer demand, and maintain steady and rapid economic development.

1) We will further increase consumer demand. This year, total retail sales of consumer goods are expected to increase 16%. We will intensify efforts to adjust income distribution, increase government spending used to improve and expand consumption, and increase subsidies to farmers and low-income urban residents. We will continue to implement the policies of subsidizing rural residents' purchase of home appliances and providing subsidies for trading in old home appliances, implement preferential policies to encourage people to buy energy-efficient and new energy vehicles, and promote more widespread use of energy-efficient products. We will vigorously develop new consumption formats such as e-commerce, and spur consumption in the areas of culture, travel and fitness. We will promote chain-store operations and unified distribution in rural areas, and optimize the layout of urban commercial networks. We will rectify and standardize markets and protect consumers' legitimate rights and interests.

2) We will maintain a rational scale of investment while improving the investment structure. Total fixed-asset investment is expected to increase 18% nationwide in 2011. We will make full use of the role of government investment in guiding structural adjustments. We will allocate 382.6 billion yuan from the central government budget for investment, a decrease of 10 billion yuan from last year; give priority to ensuring funding for key ongoing projects, and begin construction on the major projects in the Twelfth Five-Year Plan in an orderly manner. Investment funds from the central government budget will mainly be used to support development of low-income housing; water conservancy facilities; agricultural and rural infrastructure; education and health infrastructure; independent innovation, energy conservation, emissions reduction, ecological improvement and environmental protection; and economic and social development in the central and western regions, especially Tibet, Tibetan ethnic areas in Sichuan, Yunnan, Gansu and Qinghai, and Xinjiang. We will earnestly implement the policy on encouraging and guiding development of nongovernmental investment issued by the State Council and continue to work hard on formulating supporting measures, in order to promote steady increases in nongovernmental investment and optimize its structure. We will steadfastly tailor guidance to different circumstances, guarantee some expenditures while reducing others, resolutely control haphazard and redundant development in sectors that are energy-intensive or highly polluting or have excess production capacity, and improve the quality of and returns on investment.

3) We will do a good job of regulating economic activities. We will improve the coordination of coal production and transportation with demand; strengthen the demand-side management of power; balance supply and demand of crude oil, refined petroleum products and natural gas and properly handle distribution of emergency supplies; and guarantee the transportation of key goods and materials.

3. We will further improve our work relating to agriculture, rural areas and farmers, and consolidate the foundation for developing agriculture and rural areas and increasing rural incomes.

1) We will promote steady increases in grain production and strive to make 2011 the eighth consecutive year of good harvests. We will comprehensively strengthen measures for stimulating the development of grain and agricultural production; implement an initiative to sustain steady growth in grain production nationwide; improve the reward policy for major grain-producing counties; carry out an intensive campaign to grow high-yield crops; increase government rewards and subsidies for village-level public works projects, the launching of which are determined by the villagers through deliberation; fully arouse the initiative of governments at all levels to give high priority to agriculture and grain production as well as rural residents' enthusiasm for farming and grain production; and work very hard to ensure another year of good harvests. In 2011, we will strive to maintain grain output at over 500 million tons; increase the output of cotton, oilseed, sugar crops, meat and aquatic products to reach 6.8 million, 32.5 million, 125 million, 80 million and 54.3 million tons, respectively, up 13.9%, 0.3%, 3.8%, 0.9% and 1.2% from last year.

2) We will strengthen the construction of agricultural and rural infrastructure with the focus on water conservancy. We will faithfully implement the guiding principles of the Fifth Plenary Session of the Seventeenth Party Central Committee and Decree No.1 issued by the Central Committee this year, and draw up major policies for the reform and development of water conservancy. We will move faster to harness small and medium-sized rivers and reinforce dilapidated reservoirs, and strengthen prevention and control of geological disasters from mountain torrents, development of flood storage and retention areas, and construction of key drought-relief projects in southwest China and other areas. We will accelerate the implementation of projects to build auxiliary facilities and upgrade water-saving devices in irrigated areas, and comprehensively intensify work on key agricultural irrigation and water conservancy projects and farmland improvement projects. We will press ahead with projects for developing high-quality farmland and allocating water resources. We will continue work on comprehensive rural land development. We will improve working and living conditions in rural areas. In 2011, we will solve the issue of providing safe drinking water for another 60 million rural residents, raising the percentage of the rural population with access to safe drinking water to 77%; vigorously develop methane projects in rural areas, and strive to increase the number of rural households that use methane to 43.25 million by the end of the year, 3.25 million more than last year; carry out a new round of upgrading of rural power grids and more quickly extend power grids to areas without electricity; continue our support for the development of rural highways; expand efforts to renovate dilapidated rural houses, with the target set at more than 1.5 million this year; and successfully implement the project to build permanent homes for nomadic herdsmen.

3) We will increase overall agricultural production capacity. We will strictly protect arable land, keep the total crop acreage stable, and work hard to increase per unit yield. We will accelerate implementation of the plan to increase national grain production capacity by 50 million tons, and support northeast China in its effort to increase its production capacity of japonica rice and corn. We will strengthen development of sugar crop production bases; demonstration bases for drought-resistant agriculture; quality cotton production bases in Xinjiang; and cotton production bases in the Yellow, Huai, Hai and Yangtze river basins. We will vigorously develop canola production bases in the Yangtze River basin; oil-bearing peanut production bases in the Yellow, Huai and Hai river basins; and soybean production bases in northeast China and Inner Mongolia. We will support large cities in developing vegetable supply bases. We will support the development of large-scale, standardized hog and dairy cow farms and the system for cultivating superior breeds of livestock, poultry and aquatic products. We will vigorously develop protected agriculture. We will increase investment in agricultural scientific research and the application of research results. We will carry out unified, specialized prevention and control of crop diseases and pests, and comprehensively prevent and control major animal epidemics. We will tighten oversight of the quality and safety of agricultural products. We will strengthen fishery administration and improve fishing ports.

4) We will strive to facilitate a continuous increase in rural incomes. We will raise the floor prices for major grain varieties. When new grain goes on the market, we will raise the price of wheat by 5 to 7 yuan per 50 kilograms and increase the price of rice by 9 to 23 yuan per 50 kilograms. We will keep expanding the scale of agricultural subsidies and raise their standards. We will implement a dynamic mechanism for adjusting general subsidies for agricultural supplies in step with price rises in agricultural supplies such as fertilizer and diesel fuel. We will give strong support to specialized farmer cooperatives, various service organizations in rural areas, and leading industrialized agricultural production enterprises, and actively develop agricultural sectors that have local advantages as well as the agricultural product processing industry. We will strengthen county economies. We will improve vocational training and employment guidance services for rural migrant workers and protect their rights and interests.

4. We will accelerate industrial restructuring, and focus on enhancing core competitiveness.

1) We will vigorously stimulate independent innovation and the development of strategic emerging industries. We will conduct research and formulate a plan for improving independent innovation capacity and a national medium- and long-term program for developing major science and technology infrastructure. We will intensively advance the Knowledge Innovation Program, the Technology Innovation Program and major science and technology infrastructure projects; accelerate the implementation of key science and technology programs; and carry out national pilot projects and demonstrations for innovation-oriented cities. We will quickly formulate and implement a development plan and supporting policies for strategic emerging industries, set up a special fund for promoting their development, expand the scale of venture capital investment in them, formulate a guiding list for developing them, and work out industry standards for major emerging industries. We will organize the implementation of industrial innovation and development projects, including those on National Broadband Internet Agenda, cloud computing, the Internet of Things, integrated circuits, flat-panel displays, space infrastructure, regional aircraft and industrialization of general aviation aircraft, as well as major application and demonstration projects on the health of the people and on using information technology to benefit the people. We will advance national pilot programs and demonstrations for IT promotion.

2) We will actively transform and upgrade traditional industries. We will continue to implement the plan for restructuring and invigorating key industries, and promulgate and implement a new guiding catalog for industrial restructuring. We will strongly support technological upgrading in enterprises. We will actively make adjustments to the allocation of the productive forces in key industries, including steel, petrochemicals, non-ferrous metals and ship-building. We will speed up the development of modern industrial clusters of equipment manufacturing, auto parts, textile and other light industries. We will stimulate restructuring and upgrading in the food industry, strengthen food safety monitoring capabilities, and improve our ability to ensure food safety. We will guide enterprise mergers and reorganizations, and raise the level of industrial concentration. We will set up a sound policy framework for phasing out backward production facilities, continue to shut down backward production facilities at thermal power plants, steel mills, iron foundries, cement plants, paper mills, plate glass plants and other industrial enterprises in accordance with the law, and start the trial of replacing small coal-fired furnaces with combined heat and power facilities. We will expedite the development of public service infrastructure for small and medium-sized enterprises, expand their funding channels, and create a favorable environment for their development.

3) We will accelerate the development of the service sector. We will continue to carry out trials of comprehensive reforms in the service sector, establish demonstration areas of clustered development of producer services, and make innovations in the pattern of development of consumer services. We will focus on developing services oriented toward rural areas, accelerate development of high-tech services closely linked with modern manufacturing, and vigorously develop emerging services. We will broaden financing channels for service enterprises, and quickly reduce electricity, water, gas and heating rates for service enterprises encouraged by the state to the same level as those paid by industrial enterprises. We will actively work to turn Hainan into an international tourist island. In 2011, it is projected that the number of urban community service facilities will reach 185,000, an increase of 2.2%. We will speed up development of information and communications infrastructure; extend the country's optical cables to 10.95 million kilometers, 1 million kilometers more than last year; and raise the number of broadband Internet access ports to 223 million, an increase of 35 million.

4) We will strengthen the development of the modern energy industry and the comprehensive transport system. We will actively push for the transformation of the methods of energy production and use, and build a modern energy industrial system that is safe, stable, economical and clean. We will accelerate mergers and reorganizations of coalmining enterprises, and carry out the development of large coalmining bases and large and medium-sized modern coalmines in an orderly manner. We will strengthen the development of large oil and gas production bases and improve the pattern of the refinery industry. We will vigorously develop renewable energy sources and promote the development and use of new energy sources. In 2011, raw coal output is projected to grow 4.9%, crude oil output will remain basically at the present level, and natural gas output will increase 10.1%. Total electricity generation will increase 8%, including 6.1% and 13.3% increases in hydropower and nuclear power respectively, and the installed power-generating capacity of on-grid wind power facilities will increase 45%. We will speed up the development of important transportation routes and integrated transportation hubs; give priority to the construction of passenger railway lines, trunk railway lines in the western region, national expressways, national and provincial trunk highways, the main navigation channel on the Yangtze River, high-grade inland waterways, ports and regional airports in the central and western regions, and main airports in the western region; and improve road maintenance. In 2011, the total length of railways and highways opened to traffic throughout the country will reach 99,000 kilometers and 4.1 million kilometers, up 8.8% and 3% respectively. This includes 13,000 kilometers of high-speed railways and 83,000 kilometers of expressways, increases of 4,700 kilometers and 9,000 kilometers respectively. The total length of high-grade navigable inland waterways will reach 10,400 kilometers, 400 kilometers longer than last year. The number of airports opened to air traffic will come to 181, an increase of 6.

5. We will optimize the pattern of regional development, make development more balanced, and raise the level of urbanization.

1) We will continue to implement the master strategy for regional development.

We will steadfastly give priority to thoroughly implementing the strategy of large-scale development of the western region in the master strategy for regional development, carry out the major tasks and policies for developing the western region in the new decade, and formulate the twelfth five-year plan for large-scale development of the western region. We will issue a list of industries in the western region encouraged by the state; give greater support to the development of infrastructure and ecological and environmental conservation; promote the development of industries that can take advantage of local strengths; accelerate the development of national key experimental zones for development and opening up; implement the policies to promote leapfrog development of Tibet, Tibetan ethnic areas in Sichuan, Yunnan, Gansu and Qinghai, as well as Xinjiang: and launch demonstration projects for ecologically oriented development in the western region.

We will improve the modern industrial system in northeast China, compile the twelfth five-year plan for revitalizing the region, organize the implementation of the regional cooperation program between China and Russia and the plan for the ecological conservation and economic transformation of the forest regions in the Greater and Lesser Hinggan Mountains, and carry out trials on sustainable development in resource-dependent cities.

We will thoroughly implement the plan for energizing development of the central region; conduct research and formulate policies and measures to support the development of the region in the new period; make the most of its geographical advantage as a connecting link between the east and the west; and further strengthen the role of city clusters in the region and the economic belt along the middle reaches of the Yangtze River in driving the development of their surrounding areas.

We will actively support the eastern region in its efforts to make innovations in systems and mechanisms and transform the pattern of development, and in continuing to take the lead in development.

We will give more assistance to old revolutionary base areas, ethnic minority areas, border areas and poor areas; intensively launch the campaign to develop border areas and improve people's lives there; launch the project to alleviate poverty through development in contiguous areas with particular difficulties; and do a good job of giving people work instead of relief subsidies and relocating people from inhospitable areas as a poverty relief measure. 2) We will stimulate growth of development priority zones (DPZs). We will fully implement the national plan for DPZs; make detailed policies with guidance tailored to each zone; better coordinate state programs, regional plans and the national plan for DPZs; and establish a sound performance evaluation system. We will also accelerate the compilation of provincial-level DPZ plans.

3) We will actively yet prudently carry out urbanization. We will compile and implement a plan to stimulate the sound development of urbanization, and rationally designate the functions, industrial distribution and development boundaries of large, medium-sized and small cities as well as towns. At the same time, we need to take into full consideration the needs for employment, education, social security, medical care and low-income housing of rural migrant workers in cities, and systematically carry out the work of allowing people who have left agriculture for other work and meet the conditions for settling in cities to become urban residents.

6. We will unwaveringly advance energy conservation and emissions reduction, and strengthen ecological improvement.

1) We will strictly implement the accountability system for meeting targets. We will do a good job of breaking down the overall targets for energy conservation and emissions reductions in the Twelfth Five-Year Plan into local targets, and improve statistics and evaluation methods for energy conservation and emissions reduction. We will organize evaluations of provincial governments' work on fulfilling targets for energy conservation and emissions reductions during the Eleventh Five-Year Plan period and implement reward and punishment measures accordingly.

2) We will accelerate the development of key projects. We will implement key renovation projects for saving energy and the project to promote energy-efficient products for the benefit of the people. We will intensify R&D on generic and key technologies for conserving energy and reducing emissions, and successfully demonstrate the industrialization of major energy conservation and environmental protection technologies and promote their application. We will push ahead with the construction of urban facilities to treat sewage and garbage, start work on flue gas denitrification in coal-fired power plants, and make sure more pollution control facilities operate properly. In 2011, the percentages of urban sewage treated and urban household waste safely handled will reach 80% and 74% respectively, 3.1 and 1.5 percentage points higher than last year.

3) We will strengthen management over energy conservation and emissions reduction. We will formulate and implement limits on energy consumption per unit of production in energy-intensive industries and energy efficiency standards for the end-use of energy-consuming products. We will strictly enforce the system for assessing and examining energy savings in investment projects. We will carry out pilot programs on a cap-and-trade system for controlling overall energy consumption and trading energy savings. We will give priority to energy conservation management in key energy-intensive enterprises, and launch a campaign to get 10,000 enterprises to save energy and lower carbon emissions and a green-buildings campaign. We will strictly enforce energy-saving standards for new buildings, accelerate energy-saving renovations to existing buildings and the reform of the heat supply by installing heating meters in northern China where heating is supplied, and expand the use of renewable energy in buildings. We will further implement energy-conservation mechanisms such as energy performance contracting, efficient electricity generation and distribution, demand-side management of power, energy efficiency labeling, and state certification and government procurement of energy-efficient products. We will strengthen our capabilities in energy conservation management and the oversight and inspection of law enforcement in this regard.

4) We will energetically develop a circular economy. We will improve and implement policies and measures on encouraging and supporting the development of a circular economy, and deepen pilot programs and demonstrations for it. We will accelerate the comprehensive utilization of massive solid waste and make progress in desalinating seawater. We will develop demonstration bases for recovering mineral resources from city waste, and give impetus to the industrialization of remanufacturing and the transformation of kitchen waste into resources. We will comprehensively carry out clean production. In 2011, water consumption per 10,000 yuan of value-added of industry will decrease 7% and the proportion of industrial solid waste that is comprehensively utilized will increase 1 percentage point.

5) We will strengthen ecological and environmental protection. We will intensify water pollution prevention and control in key watersheds, especially major rivers and lakes; strengthen efforts to clean up heavy metal pollution in key areas and the comprehensive improvement of the rural environment; develop a system for rural garbage collection and treatment; and control non-point source pollution in rural areas. We will strengthen efforts to clean up and control marine pollution. We will implement the second phase of the virgin forest protection project, accelerate the development of ecological shields in the Qinghai-Tibet Plateau, continue to control the sources of dust storms affecting Beijing and Tianjin, comprehensively prevent karst areas from becoming stony deserts, build key forest shelterbelts, and start ecological and environmental protection in and comprehensive improvements to the Loess Plateau and the Qilian Mountain glacier and water source conservation area. We will further implement the project of returning grazing land to grasslands and support the ecological protection of major water source supply areas. We will establish a sound mechanism for ecological compensation, advance pilot programs on compensation in major functional ecological zones, and introduce a master plan for the national experimental area for comprehensive ecological conservation of the sources of the Yangtze, Yellow and Lancang rivers. We will intensify efforts to bring soil erosion under control through combined measures. And we will put greater emphasis on controlling geological disasters in key areas.

6) We will actively respond to climate change. We will meet the action targets for controlling greenhouse gas emissions. In 2011, we will afforest an additional 6 million hectares of land, increase forest stock, and enhance our carbon sequestration capability. We will put in place a statistics and accounting system for greenhouse gas emissions, expand low-carbon trials, and increase international cooperation on responding to climate change.

7. We will work hard to ensure and improve the people's wellbeing, and establish a sound system of basic public services and sound social administration mechanisms.

1) We will steadfastly implement a more proactive employment policy. We will give high priority to promoting employment in economic and social development, energetically develop labor-intensive industries, small and micro enterprises, modern services and household services, and encourage entrepreneurship and independent job seeking. We will put great effort into our work concerning the employment of college and university graduates, the rural migrant labor force, urban residents who have difficulty finding jobs, and demobilized military personnel. We will continue to strengthen the development of community-level service facilities for employment and social security, establish a sound, unified, standardized and flexible human resources market, and strengthen vocational training. We will improve the mechanism for settling labor disputes.

2) We will rationally adjust income distribution. We will conduct research and formulate a plan to reform income distribution, adjust the pattern of national income distribution, and narrow the income gap. We will put in place a sound mechanism of regular pay increases for enterprise employees, steadily promote collective bargaining for wages, gradually increase the minimum wage, and resolutely prevent the problem of wage arrears, especially those of rural migrant workers. We will carry out the reform of the personal income tax system in a step-by-step manner, raise the income tax threshold on salaries by an appropriate amount, reduce the tax burden on low- and middle-income groups, and improve the policy of dual regulations on total payroll and average salary levels in high-income industries. We will rectify and standardize the pattern of income distribution.

3) We will genuinely do our social security work well. We will implement the methods for transferring pension accounts and medical insurance accounts, and turn over the overall management of social insurance accounts to higher-level authorities. We will improve the mechanism of regular adjustments in basic pensions for enterprise retirees and subsistence allowances for urban and rural residents. We will actively advance the reform of pension insurance system for government agencies and institutions, and expand trials of the new type of pension insurance for rural residents. In 2011, the numbers of urban participants in pension, medical, unemployment and workers' compensation insurance will reach 8.27 million, 7.94 million, 1.24 million and 8.27 million, respectively. We will accelerate the development of social assistance and social welfare programs, and strengthen the development of facilities for caring for orphans, rehabilitating people with disabilities and elderly services. In 2011, the number of beds for elderly care per 1,000 old people will reach 20, up 9.9%, and the number of service facilities for people with disabilities will be 3,230, up 8.6%.

4) We will speed up the development of the system for ensuring adequate housing. We will intensify the construction of low-income housing; carry out the development of public rental housing and other low-income housing projects on a large scale; accelerate the renovation of run-down areas in cities, industrial and mining areas, forest regions and land reclamation zones; set up a mechanism for steady governmental investment in low-income housing and a mechanism for guaranteeing the repayment of nongovernmental capital in this area; give priority to low-income housing projects when making land supply and construction plans; and encourage nongovernmental capital to participate in the construction and operation of public rental housing. We will continue to increase the effective supply of commodity housing, increase the proportion of low- and medium-priced housing of modest size, and standardize and develop the rental housing market. We will further implement and improve policies for regulating the housing market, curb housing demand for speculation and investment purposes, and prevent housing prices from rising too quickly. We will promptly improve our housing systems and policy framework so they better suit our national conditions, and establish a permanent mechanism for effectively adjusting housing supply and demand.

5) We will strengthen the development of key areas in education. We will fully implement the National Medium- and Long-Term Plan for Education Reform and Development. We will accelerate the transformation of needy primary and secondary schools in rural areas, and continue to carry out the project to renovate rural junior secondary school buildings in the central and western regions, the nationwide program for safe primary and secondary school buildings as well as the improvement of vocational education infrastructure. We will energetically develop preschool education in rural areas, give attention to special education, improve senior secondary education and vocational education, and support the development of ethnic colleges and bilingual education in ethnic minority areas. We will carry out the construction of dormitories for teachers at rural schools in remote areas and areas with harsh conditions. We will improve the quality of higher education, and speed up the development of first-class universities and academic disciplines. We will solve the problem of schooling for children of families with financial difficulties. In 2011, the gross enrollment ratio in secondary education is expected to reach 84%, and plans call for enrolling 6.75 million undergraduate students and 560,000 graduate students in regular institutions of higher learning.

6) We will promote the development of medical and health care programs. We will strengthen the development of the medical and health service system with the focus on the primary level, carry out the project for setting up bases to train general practitioners, and develop the system of health supervision, the system of emergency medical services in rural areas and the system for preventing and treating mental health problems. We will strengthen work concerning maternity and child health, and continue the trials of conducting free cervical cancer and breast cancer screenings for women and providing necessary medical treatment to those suffering from these diseases. We will increase investment in medical infrastructure in rural areas, especially in remote areas in the central and western regions. In 2011, per capita fund for basic public health services will be increased from 15 yuan to 25 yuan, and annual per capita government subsidies on the new rural cooperative medical care system and on basic medical insurance for non-working urban residents will be raised from 120 yuan to 200 yuan. We will work hard to raise the number of hospital beds per 1,000 people to 3.42, up 5.6%. We will improve the population and family planning service system.

7) We will vigorously develop cultural programs and cultural industries. We will accelerate the establishment of a public cultural service system covering both urban and rural areas. We will actively advance cultural projects that benefit the people, and accelerate the construction of key cultural facilities. We will promote the flourishing of philosophy and the social sciences, and carry out major cultural projects and product innovation in radio, film and television, the press and publishing, and other areas. We will standardize and develop bases for the cultural industry; strengthen the protection of cultural and natural heritage sites; and open more art galleries, libraries, cultural centers, museums, memorial halls, and science and technology centers to the public free of charge. We will strengthen the development of tourism infrastructure and begin to implement the second phase of the program for developing tourist sites related to the early history of the CPC. We will comprehensively develop recreational sports. In 2011, radio and television coverage is forecast to reach 96.71% and 97.43% of the population respectively, and 2.31 billion domestic tourist trips will be taken, up 7.4%.

8) We will be innovative in social administration. We will integrate community administration resources, further expand channels for people to make appeals concerning matters affecting their interests, actively prevent and properly handle all types of mass incidents, and strengthen all facets of public security. We will strengthen oversight and administration of food and drug safety. We will resolutely prevent serious and major accidents.

9) We will continue to do a good job in post-disaster recovery and reconstruction. We will fully complete the tasks for post-Wenchuan earthquake recovery and reconstruction, and make genuine progress in post-disaster recovery and rebuilding work in Yushu and Zhugqu.

8. We will put more effort into tackling difficult problems in reform, and increase the impetus and vitality of economic and social development.

1) We will adhere to and improve the basic economic system whereby public ownership is dominant and economic entities under diverse ownership forms develop side by side. We will continue to strategically adjust the public sector, improve the mechanism for redirecting investments of state capital to ensure its rational flow, and cultivate large companies and conglomerates that have the ability to compete internationally. We will deepen reforms of the power, petroleum and salt industries. We will encourage, support and guide the development of the non-public sector, and create an institutional environment for economic entities under all ownership forms to use factors of production on an equal basis in accordance with the law, compete as equals in the market and be equally protected by the law.

2) We will actively yet prudently carry forward the reform of prices for resource products and environmental protection charges. We will carry out a market-based reform of prices for refined petroleum products at an appropriate time. We will reform and improve the pricing mechanism for natural gas, and make the price ratio of natural gas to alternative energy sources more reasonable. We will choose an opportune moment to introduce progressive pricing for household electricity consumption. We will improve pricing mechanisms for nuclear power, hydropower and power generated from other renewable energy sources. We will press ahead with water price reform. We will do more to promote trials of the cap-and-trade system for pollution rights.

3) We will accelerate the reform of the pharmaceutical and healthcare systems. We will thoroughly carry out the five key reforms in this area and basically complete the major tasks scheduled for 2009-2011. This year we will keep participation rates in the basic medical insurance schemes for working and non-working urban residents and the new rural cooperative medical care system above 90%. We will implement the basic drug system in all primary-level medical and health care institutions run by the government, establish a standardized mechanism for basic drug procurement, press ahead with the comprehensive reform of primary-level medical and health care institutions, and create a steady, permanent compensation system for these institutions. We will effectively carry out the trial reform of public hospitals. We will implement the policy to encourage and guide nongovernmental capital toward medical institutions.

4) We will deepen reforms of the fiscal, taxation, financial and investment systems. We will improve the transfer payment system, enlarge the size and proportion of general transfer payments, and improve the mechanism to ensure basic funding for county-level governments. We will deepen the reform of the budget management system, and make budgetary work more open. We will extend the reform of resource taxes to more types of resources. We will carry out a trial VAT reform in producer service industries. We will improve the system of multilevel capital markets, accelerate the development of the bond and futures markets, and increase the proportion of direct financing. We will energetically develop new types of rural financial institutions. We will further improve the RMB exchange rate regime. We will promptly formulate the Regulations on Government Investment and the Regulations for Managing the Approval and Recording of Enterprise-Funded Projects.

5) We will continue to advance comprehensive rural reform. We will conduct research and formulate regulations on rural land expropriation. We will deepen the reform of tenure in collective forests, and continue to implement the pilot reform of state forestry farms and forest regions. We will vigorously carry out pilot projects for integrated, complete reforms.

9. We will steadfastly implement the win-win strategy of opening up and expand international economic cooperation.

1) We will optimize the structure of foreign trade. We will adhere to the strategy of diversifying markets, strengthen traditional markets, energetically open up new markets, and stabilize and expand external demand. We will speed up the transformation and upgrading of the processing trade; support exports of complete sets of equipment, cultural products, software and other commodities and services with great demand potential; vigorously develop the outsourcing of services; and continue to limit exports of resource products and products whose production is energy intensive or highly polluting. We will improve policies for promoting imports, and increase imports of advanced technology and equipment, key spare parts and components, energy and raw materials as well as energy-conserving and environmentally friendly products. We will strengthen and improve multilateral and bilateral business ties and properly address trade frictions.

2) We will make better use of foreign capital and improve its performance. We will revise and promulgate the Suggested List of Industries for Foreign Investment and the List of Industries with Local Strengths in the Central and Western Regions for Foreign Investment, and lead foreign investment toward high-end manufacturing, high-tech industries, modern services, and energy conservation and environmental protection as well as the central and western regions. We will support the participation of foreign capital in the restructuring and upgrading as well as the merging and reorganizing of Chinese enterprises in a variety of ways. We will actively yet prudently open the service sector wider to foreign involvement. We will further improve the unified management of foreign debts.

3) We will thoroughly implement the "go global" strategy. We will improve fiscal, taxation, financial and insurance policies to help Chinese enterprises "go global." We will expand the use of RMB in cross-border trade and investment. We will improve overseas risk prevention and control mechanisms. We will continue to promote cooperation on energy, mineral resources and agriculture overseas. We will do a good job of providing economic assistance to other countries.

We will increase exchanges and cooperation between the mainland and Hong Kong and Macao, and continue to implement the Closer Economic Partnership Arrangement. We will support Hong Kong in consolidating and elevating its position as an international financial, trade and shipping center, and enhancing its global financial influence. We will support Macao in making itself into a world center of tourism and leisure and fostering an appropriate level of diversified economic development. We will deepen cooperation between Guangdong, Hong Kong and Macao, and promote the region's economic development. We will deepen cross-Straits economic cooperation, carry out the Economic Cooperation Framework Agreement, promote two-way investment, and strengthen exchanges and cooperation in emerging industries, finance and other modern services together with culture, education and other areas. We will give full play to the role of the Western Taiwan Straits Economic Zone in leading the way and exploring new paths for cross-Straits exchanges and cooperation.

Fellow Deputies,

Successfully completing all the work for economic and social development in 2011 will be an arduous task and a great responsibility for us. We will unite even closer around the CPC Central Committee with Comrade Hu Jintao as General Secretary, follow the guidance of Deng Xiaoping Theory and the important thought of Three Represents, thoroughly apply the Scientific Outlook on Development, voluntarily accept the supervision of the NPC, and listen with an open mind to comments and suggestions from the CPPCC National Committee members. Let us forge ahead with determination and work diligently to achieve the targets for economic and social development and get the Twelfth Five-Year Plan off to a good start.