V. Carrying out Structural Readjustment to Improve Development Quality and Efficiency

We should carry out structural readjustment and modes transition to realize further development. We shall stick to the market-oriented principle, improve the efficiency of the primary industry, upgrade the secondary industry and further expand the tertiary industry to ensure a steady economic growth under the state of new normal.

We shallsharpen the competitiveness of various industries. Efforts will therefore be made topromote the development of industrial parks and fosteremerging industries, attach equal importance to large, medium-sized and small enterprises, and stress increasing the growth and adjusting the stock with equal emphasis. Some 15 key industrial parks, 60 leading enterprises and 1,000 dynamic medium-sized, small and micro businesses will be fostered. In 2017, the sales revenues of key industrial parks and leading enterprises are both expected to exceed 400 billion yuan; the operational revenue of medium-sized, small and micro businesses is expected to surpass 50 billion yuan. The structure with powerful leading enterprises and thriving medium-sized, small and micro businesses will be formed. The development of key industrial parks will be accelerated. We shall complete infrastructure construction and establish sound management and assessing systems at Ningdong and other industrial parks. The already full-fledged industries - such as new coal chemical, equipmentsmanufacturing, eco-friendly textile, new energy,new material, Halal food and wine businesses - shall be encouraged to expand further; efforts will be made for some of them to grow into industrial parks each with an annual sale revenue amounting to 100 billion yuan a year.We shall support economically formidable enterprises, such asthe Shenhua Ningxia Coal Industry Group, the China National Petroleum Corporation and Sinopec GroupCo., Ltd. to expand further in Ningxia. We shall try to attract the Saudi Basic Industries Corporation to make investment in Ningdong so as to extend the processing line and explore global market. We shall also foster the development of small and micro enterprises and support the non-public economy. We shall make full use of special funds to construct business incubators and standardized workshops to encourage technological and management innovation. The technological and funds support will be enhanced. We shall conduct pilot trials and renovate old industrial bases at the same time.We shall reform the subsidy policies of energy conservation and establish the assessment system of eliminating old capacities and launching new ones. We plan to phase out electrolytic aluminum, ferroalloy, calcium carbide, cement and other outmoded capacities totaling 1.5 million tons.

We have since 2014 been working hard to accelerate the transition of agricultural development modes. Centering on increasing the farmers’ income, We shall construct distinctive planting and breeding bases, promote diversified ownership of agricultural businesses and push forward the orientation transition from production to consumption. First, We shall accelerate the construction of the Grape Long Corridor at the Eastern Foot of Helan Mountain to form a complete industrial chain of grape planting, production, sales and other auxiliary services. We shall promote newly cultivated breeds of Chinese wolfberry and its advanced planting techniques and strengthen the management of small planting areas, quality control and deep processing services to ensure its sales value surpassing 10 billion yuan. We shall stress the production of high-end milk and Muslim beef and mutton, support the development of dam production, standardized breeding parks, large raisers and high-quality fodder production bases. The beef and mutton sheep raising numbers will total 2.5 million and 17 million. We shall construct more vegetable and melon bases, promote the Virus-free Techniques of Potato Seed Tuber and new potato breeds and develop fruit vegetables, coal vegetables and watermelon growing on gravel-covered land. The planting area of fruits and vegetables will be kept over 20,000 hectares and the ratio of distinctive high-efficient agriculture is planned to reach 86%. Second, We shall stress the construction of water conservancy projects in farmlands, with the newly added water conservancy irrigation area totaling 20,000 hectares. The newly constructed high-standard farmland is planned to reach 33,333 hectares and the newly added arid planting area applying plastic mulching technique for moisture conservation is expected to total 133,333 hectares. We shall support the construction of National Safe Agricultural Product County and cultivate more renowned agricultural product brands. Third, We shall cultivate more various operational entities, with the newly added farmer cooperatives and family farms reaching 200 and 300. We shall foster 50 leading agricultural enterprises with sales volume exceeding 10 billion yuan each and the agricultural processing conversion rate is expected to reach 60%. We shall renovate wholesale markets and construct agricultural product cold chains to make our local products go global.

We shall accelerate the development of services in six ways. The dynamic services industry will guarantee a prosperous economy. We shall rationalize the management system, clarify liabilities of government departments, and coordinate producer and consumer services to realize multi-pole development. First of all, We shall expand the financial sector through setting up more private banks and financing enterprises and attracting more financial institutions to establish branches in Ningxia. We shall facilitate direct financing, establish multi-layer capital market and promote the number of listed enterprises to reach 100.We shall advance bonds financing and issue bonds totaling 15 billion yuan. The agreement signed with the Aviation Industry Corporation of China to issue bonds in Arab States will be put into practice.Second, We shall rely on the Ningxia Tourism Group to integrate tourism resources and develop self-drive, winery experience and other distinctive tourism products. We shall strengthen tourism infrastructure construction, accelerate development of cultural industries and promote the development of cultural tourism.We shall enhance publicity of Ningxia tourism resources and try to attract more foreign visitors to ensure a 15% increase of tourism revenue this year. We shall continue to expand e-commerce and develop traditional catering at the same time. Each county will establish a fair-price agricultural products trading market. We should learn experiences from renowned e-commerce platforms and launch online shops dealing in Ningxia specialties. The online trade volume of Ningxia specialties is expected to exceed 5 billion yuan in 2015.Fourth, We shall establish a Ningxia logistics information platform and introduce more renowned express delivery enterprises. We shall step up commodities, cold chain and third party logistics development and realize highway, railway and marine multi-modes transportation.We shall also promote the combination of logistics and manufacturing to ensure a 10% increase of logistics output. Fifth We shall implement market adjustment and policy control in real estate market and each city will issue local polices to guarantee the market develop in a sound way and prevent potential risks. We shall also advance government-subsidized Economy Housing Project and accelerate the renovation of shanty towns and construction of public rental housing. Sixth, We shall release more preferential policies to encourage social investments on old-age care and lead the health care, nursery and housekeeping services to develop orderly.