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China set six targets for economic development in 2001 at the Central Economic Working Conference that concluded in Beijing Thursday.

The meeting noted that the country will continue to stick to the strategy of expanding domestic demand and enhancing macro-economic control.

Since China’s advantage lies in its huge domestic market, the meeting agreed that basing growth on the increase of domestic demand will give the economy more room to maneuver and enhance its anti-risk capabilities in facing intensifying competition on international market and changes of the world economy.

The meeting pointed out that carrying out an active fiscal policy is the important measure that the country has adopted to expand domestic demand. It admitted that inadequate demand is still a problem for the country. Therefore, the stimulating measures that the government adopted to turn investment by non-government sectors and consumption into the driving force of economic growth will take some time to show effect.

As a result, the country has to continue to further economic growth by increasing government investment, according to the meeting.

Moreover, the meeting noted that greater input should be made to strengthen the weak links in the national economy, especially in the agricultural sector.

The meeting called for the adoption of various flexible measures to encourage corporate and individual investment and disperse funds to a wider range of development and construction areas.

The meeting said that the country will continue to implement a stable currency policy to ensure a bigger role of the financial sector in accelerating economic growth. It required the financial sector to increase its supervision and discipline so as to guarantee a safe, efficient and stable operation.

The country will implement various financial and credit measures to expand domestic demand, restructure the economy and stimulate consumption. It emphasized improving coordination between currency and fiscal policies through making use of economic leverage of currency policy.

The second target that the meeting outlined for next year’s economic work is to give priority to improving the agricultural sector and increasing farmers’ income.

The conference noted that the country has reached a historical turning point in agricultural productivity since it balanced out and then made a surplus between the supply and demand of grain during 1995-2000. Officials in the meeting said that the slow increase in farmers’ income has become a big problem. Local governments at all levels are urged to place more emphasis on the importance of resolving this problem and make it a major task for next year.

It noted that the country will continue to push forward the restructuring of agricultural sector and rural economy in 2001. The meeting decided that science and technology should be applied to optimize crop raising, develop and strengthen farming in different areas and greatly improve the quality and efficiency of the agricultural sector as a whole.

According to the meeting, the rural areas will actively and steadily move forward in the process of urbanization and in speeding up the restructuring of township enterprises.

The required localities should encourage and support industrialization of agricultural production through realizing economic growth and introducing market competition into the rural households operating under a household contract system.

The conference called for correctly handling of the relationship between restructuring the agricultural sector and stabilizing grain production. At no time should the country ignore the agricultural sector or relax its efforts to maintain grain production, the conference stressed.

The government will continue to carry out the policy of purchasing surplus grain from farmers at protective prices so as to safeguard the farmers’ interests and their initiative to grow grain. The planting area of grain should be maintained at a steady level.

The government will support construction projects that will save water and ecosystem preservation projects and spread the use of farming technology.

The government will start a number of construction projects that will directly increase farmers’ income and improve the anti-disaster capabilities of the agricultural sector, the conditions of rural market and the competitiveness of the agricultural sector.

The third target for next year’s economic work is to accelerate economic reforms, advancing science and technology, and pushing forward strategic restructuring of the economy.

The country should make big strides and usher in a new phase in economic restructuring next year. Enterprises will be the main body for deepening reform and creating new systems. The state-owned enterprises should unswervingly promote the reforms and development.

The readjustment of the state economy should be combined with the strategic restructuring of the economy. State-owned enterprises should be allowed to develop or shut down according to the principle of “survival of the fittest”.

The government will develop a batch of large-scale enterprise groups that have distinctive core businesses, high management standard and competitive edge. It will also accelerate the reform of the monopoly industries by introducing competition and add vigor to these sectors.

In a bid to establish a modern corporate system, large and medium-sized state-owned enterprises should accelerate the process of shifting to a standard company system, push forward restructuring of the enterprises into shareholding companies and perfect the governance of legal persons, according to the conference.

The country should strengthen management of state-owned assets, establish standard supervision systems and realize the responsibilities of maintaining and increasing the value of state-owned assets.

The country should also accelerate technological upgrading of key enterprises by lifting their technological standards and optimizing the composition of their products. The country should continue to get rid of outdated production capabilities in order to prevent construction of projects that are already abundant.

The conference urged governments at all levels to shift their functions to service and create favorable conditions for the reform and fair competition for enterprises.

Since science and advanced technology is the decisive factor in improving the overall quality of the economy, the country should promote economic restructuring through innovation and develop high-tech industries that have huge a market potential and competitive edge.

The country should accelerate the process of industrialization with the application of information technology in all sectors. It should also make great efforts to develop universal and key technologies for economic restructuring and industrial upgrading.

The conference also pointed out that the economic restructuring should be based on the unique conditions of the country. Attention should be paid to the relationships between high-tech and conventional industries, between technology and capital-intensive and labor-intensive industries, and between the development of the western, eastern and central parts of the country.

In the 10th five-year plan period from 2001 to 2005, China will launch a number of projects of strategic significance, including the pipelines and power grids transmitting natural gas and electricity from the west to the east, trunk lines of transportation networks and ecosystem and environmental protection programs.

One of the targets for next year’s economic work is to prepare for China’s accession to the World Trade Organization (WTO) and usher in a new stage of opening up to the outside world.

The meeting noted that accession to WTO will mark a new stage in the country’s drive to open to the outside world, and China will participate in the process of economic globalization in a wider and deeper scope.

It was pointed out at the meeting that China’s WTO entry conforms with the basic and long-term interest of the country, which means China will face both opportunities and challenges.

As a result, the country will introduce profound changes in the mode of government's handling economy, the management mechanism of enterprises and the rules and environment for economic operation.

The meeting required all enterprises, especially state-owned enterprises, to accelerate the process of upgrading management and technology in order to improve competitiveness.

It is an urgent job to sort out, amend and perfect relevant economic laws and foster a contingent of professional talents who are familiar with the WTO rules, according to the meeting.

In order to open to the outside world, China should first break down the industrial monopoly and regional barrages and get rid of all discrimination against non-state economies in terms of market access.

The meeting also called for continued efforts to increase exports and actively utilize foreign funds.

It was pointed out at the meeting that improving the people’s living standards serves as a cornerstone of the balance between reform, development and social stability.

The meeting noted that expanding the channels of employment is a major way to increase the income of urban and rural residents, which should be taken as a major target of the work of governments at all levels. The development of businesses of all types of ownership should be encouraged for expanding the channels of employment.

Efforts should be continued to push forward the reform of the social security systems covering pension, unemployment and medical insurance and medical services next year, when the system for ensuring a minimum standard of living of urbanites should be established and improved.

The meeting also called for continued efforts to get rid of poverty in rural areas and take care of low-income urban residents.

Another major target of next year’s economic work is to promote cultural and ideological progress for the overall progress of the whole society, according to the meeting.

(Xinhua 12/1/2000)