I. Review of the Work in 2001

　　In the past year, under the leadership of Jiangsu Provincial Committee of the Communist Party of China (CPC) and the guidance of Deng Xiaoping Theory, the people in Jiangsu conscientiously implemented the important thought of Three Represents, press ahead with reform and opening up in all aspects with a focus on economic restructuring to accelerate development and improve people’s lives, accomplishing major tasks set by the Fourth Meeting of the Ninth Provincial People’s Congress with satisfactory results.

　　

　　The economy growth was sustained, rapid and sound. Jiangsu’s GDP reached 951.46 billion yuan, up 10.2% over the previous year. Total government revenue was 106.5 billion yuan, an increase of 23.1%, passing the important benchmark of 100 billion yuan. Of this sum, the fiscal revenue of local governments was 62.04 billion yuan, 23.8% more than the previous year. Total investments on fixed assets increased by 10.3%. Infrastructure development efforts were strengthened, and a number of major projects on water control, transport, energy and urban construction were completed or launched. Investments in technological upgrading rose rapidly. Consumers’ demand recovered gradually and the total retail sales revenue increased at a rate of 10.2%. Agricultural production withstood serious droughts. New progress was made in economic restructuring. Various forms of business operations develop steadily and leading enterprises spurred more economic growth. The growth rate and economic returns of village and township enterprises increased simultaneously. The industrial production maintained rapid growth, and the proportion of added value of pillar industries and new and high-tech industries increased. Performance of economic activities improved. The construction industry progressed ahead. Emerging service industries accelerated development and the proportion of the tertiary industry among GDP rose by 0.6 percentage point. Non-public sector of the economy became the engine for economic growth. The southern, central and northern parts of Jiangsu developed together. The urbanization rate in the province reached 42.6%, 1.1% more than the previous year.

 

　　Reform and opening up were further deepened and expanded. Fresh progress was made in transforming large and medium-sized state-owned enterprises into stock companies. A number of major projects on assets restructuring were carried out. Reform on investment and financing mechanisms were intensified and controls over the investment sector were relaxed. The reform of rural taxes and administrative charges made achievements set for the current phase, significantly alleviating the burdens on farmers. The reform on the commercialization of purchase and sale of grain and cotton is officially launched. Favorable conditions were created to make it possible for key cities to grow larger and stronger by adjusting administrative planning of urban districts of the six cities directly administered by the provincial government including Nanjing. New progress was achieved in the work to combine and adjust the administration of townships and villages. Efforts were made to accelerate the reform on the basic medical insurance system for urban working people, the medical care and health service system and the pharmaceutical production and distribution system. Institutional restructuring of municipal, county and township governments were in smooth progress. The first round of the reform of the administrative examination and approval system was completed, reducing more than 40% of items for checking and approval. The open economy maintains its momentum of growth. Total import and export volume passed the benchmark of US$50 billion to US$51.35 billion, an increase of 12.5%. Of this sum, the export volume reached US$28.88 billion, up 12.1% over the previous year. Jiangsu utilized a record high US$7.35 billion in foreign direct investment with a rise of 11.5%, while the contractual foreign investment amounted to $15.11 billion with an increase of 42.2%, ranking top nationwide in three years in a row. The development zones entered the stage of rapid growth and high yields. International economic and technological cooperation and tourism keep growing. The successful holding of the Sixth World Chinese Entrepreneurs Convention and APEC Financial Ministers Meeting enhanced the image and influence of Jiangsu around the globe.

 

　　The lives of residents in both urban and rural areas were improved. In Jiangsu, urban per capita disposable income reached 7,357 yuan and rural per capita net income was 3,785 yuan, an increase of 8.5% and 5.3% respectively. The basic salaries of state organs and institutions and retirees' pensions were increased in line with the instructions of the state. Efforts were strengthened to ensure social security. Subsistence allowances for laid-off workers from state-owned enterprises, basic pensions for retirees from enterprises and subsistence allowances for needy urban residents are paid on time and in full. Salaries for employees in state organs and institutions are paid on time and in full in accordance with the overall plan and standard set by the central authorities. The avenues for employment were expanded and everything possible was done to create jobs. People’s cultural activities were varied and colorful, and the living conditions and standard of living were improved.

 

　　Scientific and technology, education and social undertakings advanced in all aspects. We continued to carry forward projects to upgrade agricultural products, technology and knowledge. A number of key research projects on science and technology were organized. The development of new and high-tech zones, industrial belts along the Yangtze River and in north Jiangsu is speeding up. More efforts were put into the work on protection of intellectual property rights, oversight over quality, standardization and measurement. Reform of the management and funding systems of education was deepened, and schools of all kinds and at all levels were developing well. Competence-oriented education was in full swing. The system for allocating salaries of teachers in rural secondary and primary schools by county governments was established. The adjustment of school layout and renovation of dangerous teaching buildings were in smooth progress. Fresh achievements were made in human resources development and reform of the personnel system. Amateur sports flourished. Better results were achieved in the Ninth National Games than the Eighth one. In addition, Jiangsu succeeded in the bidding for hosting the Tenth National Games. Progress in public heath was accelerating. Remarkable progress was made in the work on family planning. Fresh advances in community building were obtained. Great efforts were put into our work concerning civil, foreign, overseas Chinese, Taiwan, ethnic, religious and counselor affairs. Programs that benefit women, children, the aged and the disabled were carried forward continuously.

 

　　Spiritual civilization was promoted, and democracy and the legal system were strengthened. Jiangsu people’s confidence and determination in taking the lead in becoming basically modern were consolidated by conscientiously studying Deng Xiaoping Theory and the important thought of Three Represents and implementing the guideline of the Tenth Provincial Conference of Party Representatives. We strived to develop radio, film, television, the press, publishing, literature, art, philosophy and social sciences. Important steps were taken in cultural restructuring, and conglomerates in cultural industries were formed, covering radio, television, newspaper, publishing and performing arts. Activities designed to promote spiritual civilization for the general public were carried out. Fresh progress war made in activities to promote mutual support between the military and civilian sectors, giving ex-servicemen assistance and hiring preferences, the national defense mobilization system, building up the reserve forces and the militia and civil air defense. The sixth round of election of villagers’ committee was conducted in accordance with the law. Efforts were made to eliminate or revise local laws, regulations and policies to adapt to China’s accession to the World Trade Organization (WTO). Government legislation was promoted and the principle of law-based administration was followed. Work on statistics, auditing and oversight over economic activities were strengthened. The “Fourth Five-year Campaign on Publicity and education of Law” were carried out comprehensively. We worked harder to build a clean government and fought more vigorously against corruption. Greater efforts were put into rectifying unhealthy conduct and carrying out special programs. A group of officials guilty of corruption were punished. Remarkable progress was achieved in severely cracking down on crimes，the fight against pornographic and illegal publications and our battle against Falun Gong cult. The rectification and standardization of the market order obtained significant results. Efforts to ensure workplace safety were strengthened and social stability was maintained.

 

　　Fellow deputies, none of these achievements in economic and social development of the past year came easily. We attribute them to the concerted efforts of the people in Jiangsu province under the leadership of the Party Central Committee with Comrade Jiang Zemin as General Secretary. On behalf of Jiangsu provincial government, I would like to express our sincere gratitude to all our workers, farmers and intellectuals, and to all democratic parties and mass organizations and to patriotic people from all walks of life. I would like to extend our heartfelt thanks to the members of the People’s Liberation Army, the armed police in Jiangsu, the public security police and members of the branches of state organs in Jiangsu. I would also like to express our sincere thanks to all our compatriots in the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan as well as overseas Chinese and our friends in other countries who give great support to Jiangsu’s modernization drive.

　　

　　Revolving closely around the objective of making people richer and the province stronger, and the objective of taking the lead in becoming basically modern, the work of the government last year balanced economic development and work in other areas. First, all positive factors were fully utilized to further create an atmosphere that encourages concentration on the pursuit of development. In the meantime, in order to make a good start in the Tenth Five-year Plan, efforts were made to coordinate all other work with the priority of economic growth so that they can support each other. Second, we adhered to the policy of expanding domestic demand and expanded the demand for investment and consumption by every means, spurring more economic growth. Facing the grim global economy, we sped up reform of the system of foreign trade and policy adjustment so that our open economy maintained rapid growth under very difficult circumstances. Third, we strived to press forward with the strategic restructuring of agriculture, promote industrialization through IT application, and accelerate the process of urbanization and the modernization of urban areas. We more effectively guided the development of regional economies according to their type, and promoted the interaction and joint progress between the restructuring of industries urban and rural development, and regional economies. Fourth, the reform of state-owned enterprises was deepened. We pressed ahead with the reform of rural taxes and administrative charges, lifted controls over the development of the non-public sector of the economy and energetically carried out other supporting reforms to add vigor to more rapid development. Fifth, we consider it highly important to balance the development of economy and society. We further implemented the strategy of reinvigorating Jiangsu through science and education, and increased efforts on work concerning family planning, resource conservation and environmental protection. We continued to put emphasis on promoting spiritual civilization and enhancing democracy and the legal system. We endeavored to safeguard social stability and promote social progress in all respects. Sixth, we strengthened supervision and oversight over the implementation of major decisions adopted by the central authorities and the provincial Party committee, and focused on resolving the major and difficult problems that the primary-level people and the general public have strong complaints. We promoted changing of the style of work of government at all levels with acts for real effects. 

 

　　While affirming the achievements, we are clearly aware that many problems and difficulties remain in our economic and social development. The deep-seated problems of economic systems and economic structure remain unresolved and the foundation for maintaining a rapid economic growth rate is relatively fragile. There are a number of major problems to be resolved, including the relatively slow agricultural restructuring, difficulties in continuous increase of farmers’ income, lack of prosperity in consumers’ markets in rural areas; the slowed down growth rate of world economy, the increasing difficulties in export and increasing shares in the global market; the arduous tasks of industrial restructuring and reform of enterprises, the low concentration of industries and the insufficiency of internationally competitive large enterprises and conglomerates; the expansion and increase of enterprises’ economic losses, the lack of strong capability for innovation and overall vitality; imbalance of regional development, the widening gap between the central, northern and southern part of Jiangsu, the notable financial difficulties of some counties and villages; the rising unemployment rate registered in cities and towns, the increasing pressure on employment, the difficult lives of some urban and rural residents; and the great amount of work to be done to rectify and standardize the market order, the occurrence of serious accidents, potential problems of social stability. Moreover, the transformation of government functions does not meet the requirements of the changing situation brought about by China’s entry in WTO. A formalistic, bureaucratic, passive and even corrupt style of work still exists in some of our work. We will attach great importance to and adopt effective measures to solve these problems.

 

　　II. General Requirements for the Work of the Government in 2002

 

　　This year is the first year following China’s accession to WTO, a crucial year for the implementation of China’s Tenth Five-year Plan, and also a jubilant year for the convening of the Sixteenth National Congress of the CPC. It is of special significance for us to perform government duties, maintain the momentum of rapid economic growth and promote all-round progress of the society.

 

　　The international situation is undergoing complex and profound changes. The negative influence on Jiangsu’s economy, export in particular, should not be underestimated. Following China’s entry into WTO, some industries, enterprises and products will come under great impact exerted by more fierce competition with foreign enterprises. The government is also confronted with unprecedented new challenges in its administration. At the same time, there are plenty of rare opportunities and favorable conditions for more rapid development. With a stable political environment and prosperous economy, China’s accession to WTO will make it possible to participate in economic globalization in a wider scope and to a higher degree, accelerating the development of our open economy. The huge domestic market rests great potential to expand domestic demand. Jiangsu boasts comparative advantages in comprehensive strength, an economy more oriented to the global market, science, technology and education, geographical conditions as well as the investment environment, laying a solid foundation for accelerated development. Whether or not we could seize the opportunities, overcome difficulties and achieve further development relies on our work.

 

　　The general requirement of the work of the government this year is as the following. We will, under the guidance of Deng Xiaoping Theory and the import thought of Three Represents, focus our efforts on the strategic objective of making the people richer and the province stronger and taking the lead in basically becoming modern adopted by the Tenth Provincial Conference of Party Representatives. We will properly deal with the emerging changes of the international arena and the new situation brought about by China’s accession to WTO. We will vigorously expand and foster domestic demand, promote strategic economic restructuring, deepen reforms, press forward with institutional innovation and encourage scientific and technological innovation by overcoming difficulties, making the most of favorable conditions and shunning unfavorable conditions. We will open wider to the outside world, emphasize fostering new economic growth, and rectify and standardize the market order. We will ensure job creation, and make efforts to raise the income of urban and rural residents. We will enhance spiritual civilization and promote democracy and the legal system. We will further transform government functions and improve style of work. We will work hard to ensure social stability, sustained, rapid and healthy economic development and comprehensive social progress so as to greet the Sixteenth National Congress of the CPC with outstanding achievements.

 

　　The objective of the control over the economic and social development in Jiangsu is a 10% increase in GDP, an 11% rise in local fiscal revenues, a 10% increase in total fixed assets investment, a 10% increase in export and a 5% rise in utilized foreign capital. It is expected that the residents’ consumption price will rise by 2%, urban per capita disposable income will increase by 6%, rural per capita net income will grow at 5%, the urban unemployment rate and the growth rate of population will be controlled under 4.5% and 5% respectively.

 

　　Fellow deputies, though there are many difficulties and problems in the year ahead, our determination to seize opportunities and accelerate development is unswerving. With new opportunities and challenges brought about by China’s entry into WTO, we should firmly implement the measures to take the lead in development and maintain rapid growth to meet the high expectations from the people amid increasing competition arising from the accelerated development of other provinces and cities. As long as we align our thought and action with the important judgment and major decisions made by the Party central committee and the State Council on the complicated situations, and integrate them with the general requirements and specific plans adopted by the Tenth Provincial Conference of Party Representatives, we will definitely be able to accomplish all the tasks this year concerning economic and social development with a strong pioneering and enterprising spirit and a pragmatic and efficient style of work, uniting and working together with cadres and the general public in Jiangsu. We must focus on the overall situation and tackle key problems resolutely.

　　III. Expanding domestic demand to spur more economic growth

 

　　Expanding domestic demand is a long-term strategic principle, and also the fundamental measures to deal with the grim global economic situation this year. We should combine expanding domestic demand closely with restructuring, substantiate domestic demand, improve the effectiveness of policy implementation and solve problems lying ahead through development.

 

　　We should enlarge investment scale, optimize investment structure and continue to improve infrastructure construction. We will organize the building of a number of major construction projects, mainly on transport, water control, telecommunications, energy, urban public facilities and environmental protection. We should increase investments in technological upgrading and industries. We will emphasize on the development of manufacturing bases, key projects on technological upgrading that are to be completed or launched, with total investment in technological upgrading amounting to 133 billion yuan, growing at over 10%. We should concentrate on a number of major industrial infrastructure projects and improve the potential for further industrial development. We should establish a strict accountability mechanism for investment. We should do our utmost to ensure the quality, rate of progress and completion of the projects and ensure that they are put into operation. We should accelerate the building of projects funded by treasury bonds and strive for completion within the year. We should try hard to make a number of key projects included in the latest list of projects financed by treasury bonds. Reforms of the investment and financing systems will be deepened, the capital market will develop steadily, and investment access will be relaxed so as to stimulate non-governmental investment. Investment environment will be improved to attract more enterprises outside the province to make investments in Jiangsu.

 

　　We will foster and expand consumption growth points and promote stable increase of consumption. We will improve relevant policies, create better environment for the expansion of consumption and promote consumption upgrading. We will speed up construction of residential buildings, open and foster secondary market of housing, regulate the leasing market, and strengthen supervision and oversight on quality and pricing of residential buildings. We will carry out the program to multiply tourism, improve the quality of service, and achieve sustained growth of the number of tourists and the amount of tourism revenues. We will simplify procedures, abolish unreasonable charges and improve supporting services in order to make automobiles accessible to households. We will press ahead pilot programs on IT application in communities, carry out projects making Internet accessible to households and expand consumption on information. We will energetically develop non-compulsory education and adapt to diversified educational needs of the public. We will establish and improve the network of sales and services in rural areas, develop specialized markets and provide farmers with suitable commodities and after-sales services. We will intensify our efforts in tapping domestic market, the market in western regions and the market brought about by the Olympic Games to be held in Beijing. We will continue to organize effective promotion and marketing to increase the market share of products made in Jiangsu.

 

　　We will give play to the lever of fiscal and financial policies and strengthen their regulation on economic activities. We will collect and manage taxes in strict accordance with the law and ensure stable increase of fiscal revenues. We will adhere to the principle of “guarantee for subsistence life first, work second”. Budgetary funds should be used to pay wages and salaries first while ensuring the "two guarantees" (guaranteeing that the living allowances for workers laid off from state-owned enterprises and that the pensions of retirees are paid on time and in full) and allocation of subsistence allowances for needy urban residents. We will add to investment in agriculture, science and technology, education, environmental protection, the procurator and judicial sector, culture and sports. We will support industrial restructuring and development of new and high technologies, and promote balanced development of regional economies by combining the means of budgetary funds, deducted interest and transfer of payments. We will deepen reform of the fiscal system, adjust expenditure structure and accelerate establishing the framework of public financing. We will optimize credit structure, improve financial services, increase credit support for technological upgrading, small and medium-sized enterprises, technology-intensive enterprises in particular, and credit support for agriculture, rural areas and farmers. Credit on individual consumption will be expanded. We will strengthen oversight of the financial sector, enhance financial innovation and improve the quality of the assets of financial institutions and their competitiveness. Reform of rural credit cooperatives will be deepened.

　IV. Developing agriculture and the rural economy in an all-round way

　Increasing farmers’ income and develop the rural economy are the central tasks of our work on agriculture and the rural areas. We will accelerate the strategic restructuring of agriculture and the rural economy, deepen the reform of rural taxes and administrative fees and constantly increase investment in agriculture in order to crease a new stage for work in this respect.

 

　　We will vigorously carry forward restructuring of agriculture. We will seize the opportunities brought about by China’s accession to WTO and the reform of the purchase and sale system of grain and cotton. We will make the most of the geographical advantages of Jiangsu, speed up the development of high-tech agriculture, high-value agricultural products and agriculture for export, and strive to take the lead in basically realizing agricultural modernization. We will encourage the production of high-quality, special-purpose and environment-friendly agricultural products, accelerate the establishment of the systems for standardizing and inspecting the quality of agricultural products and the mechanism of certification, labeling and public inspection in order for quality and safe agricultural products to form brands as soon as possible and increase their market share. A system of admittance for agricultural products should be gradually set up in cities directly administered by the provincial government and counties (prefectures) with favorable conditions. Toxic agricultural products and those with above-standard toxic elements should be prohibited from entering the market. Processing industry of agricultural products should be developed. Great efforts should be made to promote the industrialization of agriculture to make leading enterprise grow stronger and larger. We will encourage capital from industry and commerce, private and foreign capital to invest in leading enterprises. We will speed up reform of property ownership in leading enterprises and encourage qualified enterprise to go public. We will guide the enterprises to strengthen their economic ties with farmers through various means. We will accelerate the development of rural specialized cooperative organizations and industrial associations, increase brokers in the rural areas and make farmers participate in the market in a more organized way.

 

　　Movement of rural labor will be accelerated. Labor force in rural areas will be diverted through various channels by developing the secondary and tertiary industries in the rural areas, speeding up the process of urbanization and carrying forward economic restructuring. We will accelerate technological upgrading, restructuring and institutional innovation of village and township enterprises. We will implement relevant policies to vigorously develop non-public sector of the rural economy. We will deepen reform of investment system, household registration system and the system of land use. We will emphasize on building of counties, central towns and towns with famous historical and cultural relics. We will guide the clustering of non-agricultural products in urban areas. We will encourage farmers to start their own business. We will encourage people to find jobs on their own or become self-employed. We will protect the legitimate rights of interests of rural workers in cities by conscientiously cleaning up improper restrictions and unauthorized collection of fees that hinder rural workers from finding jobs and starting businesses in cities. We will improve our work on intermediary service of export of labor services and vocational training.

 

　　We will give more support to agriculture. While emphasizing building key water control projects, we will give higher priority to small infrastructure projects in rural areas, and press ahead with water-saving irrigation projects. We will take steps to develop agricultural resources and another one million mu of beaches. We will take in-depth measures to upgrade knowledge, technology and products varieties. We will train more scientific and technological personnel, energetically promote wider application of agricultural technology and reform of the service system, and promote mechanization of farm work. We will establish a fully functioning network of economic information in rural areas and a system for monitoring and control.

 

　　We will deepen reform of rural taxes and administrative charges and supporting reforms. We will improve policies, regulate management, strengthen oversight, consolidate and develop the results of the reform. We will successfully carry out work related to adjustment of administrative division of county and township and the follow-up of combination of administrative divisions. We will carry forward reform of county and township organs and institutions. A new system of rural compulsory education will be established by shifting the main responsibility to county governments while provincial, municipal and county governments administer their functions at different levels. We will promote the reform of county and township fiscal system, properly separate administrative rights and fiscal rights and ensure necessary expenditures on rural compulsory education and normal functioning of primary-level organizations of county and township governments. We will regulate fees for business operation and services and strengthen oversight of financial burdens on farmers. We will resort to various means to alleviate village-level debts. We will ensure protection of farmers’ rights and interests in land use. We will promote regulated and orderly flow of contracted land of farmers to optimize allocation of land resources in accordance with the principle of “being law-based, voluntary and reasonably compensated.”

　　V. Accelerating strategic restructuring of the economy

　　We must closely follow the focus of restructuring and press ahead with restructuring of industries, urban and rural areas and regional economies for greater achievements in the face of economic globalization, the trend of IT development and new requirements with China’s entry into WTO.

 

　　In our work on restructuring, we should give priority to technological upgrading in enterprises and promote industrialization through IT application. We will accelerate technological upgrading of major industries, enterprises and products by applying new and high technologies and advanced applicable technologies in order to maintain the leading position of Jiangsu’s manufacturing industry. We will strengthen building of the information infrastructure and establish an information platform that covers the whole province and is connected with the telecommunications network nationwide and worldwide. We will speed up the building of national-level software industry base in Jiangsu and the software parks in Suzhou, Wuxi and Changzhou, and promote the development of major enterprises in the software industry. We will emphasize on research and development on the critical technologies in IT manufacturing. We will promote the collection and comprehensive utilization of information resources. A number of pilot enterprises for IT application will be fostered. We will promote e-government and IT application in government administration. We will organize research on the five fields, namely, software and integrated circuit, modern mobile telecommunications, optical fiber and cable and photoelectric instruments, nanometer materials as well as modern Chinese medicine and bio-engineering, in order to gradually develop advantages arising from clustering of new and high-tech industries. We will pay full attention to industries of environmental protection. We will accelerate restructuring of enterprises in the construction industry and of conglomerates, and energetically expand shares in both domestic and international construction market.

 

　　We will accelerate developing modern service industry and improve the overall service level. We will vigorously encourage the development of banking, insurance, accounting, legal, consulting and other modern service sectors. We will speed up the reform of the commerce and trade distribution system and open wider to the outside world. We will gradually establish a modern social service system that is specialized, global and driven by market forces. We will energetically develop chain business operations, logistics, e-commerce and other modern distribution patterns and business forms, improve planning of commercial network in big and medium cities, and optimize the structure of the distribution industry. We will deepen reform of social undertakings and encourage efforts to commercialize logistics of government institutions, schools and medical institutions and other administrative organizations and institutions. We will devote more efforts to develop education, training, culture, public health, sports and other sectors with huge potential for demand, cultivating new areas for growth.

 

　　We will continue to optimize the structure of urban and rural areas and step up the process of urbanization and modernization of urban areas. We will formulate and implement planning of the urban development of Nanjing, Suzhou, Wuxi, Changzhou and Xuzhou, and revise and formulate overall urban planning scientifically. We will adjust some of the urban administrative district division of cities under the direct administration of the provincial government to expand their potential for development and give full play to the concentrating and radiating role of central cities. We will focus on improving urban development in real terms, enhance comprehensive functions and improve overall competitiveness. We will accelerate the building of infrastructure projects and public utilities, focus on the first-phase project of the north-south line of Nanjing metro, Suzhou’s project of water resources treatment and projects of water supply in south Jiangsu, and speed up the initial work on faster track transport in Suzhou, Wuxi and Changzhou and water supply projects in central Jiangsu. We will carry out projects in Nanjing and Xuzhou to prevent floods and launch projects on flood prevention planning in Suzhou, Wuxi, Changzhou and other cities directly administered by the provincial government. We will do our work well on pilot programs of IT application in the cities of Yangzhou, Nanjing and Changzhou so as to promote application of digital technologies. We will improve laws and regulations concerning urban management and improve the management level.

 

　　We will press ahead with common development of regional economies by providing guidance according to their type and ensure that relevant polices are fully implemented. We will provide timely assistance to north Jiangsu, develop sources of growth for central Jiangsu and expand growth of south Jiangsu. We will give full play to market forces, promote cooperation between north and south Jiangsu and accelerate orderly relocation of industries in north Jiangsu. The development of north Jiangsu should focus on enhancing international competitiveness, take the lead in establishing pilot areas of modernization, clusters of new and high-tech industries and an open economy with rapid growth, and increase its radiating function in regional economies. The central parts of Jiangsu should make the most of its geographical advantages, accelerate development of coastal economic belts and strive to become new engines for Jiangsu’s economic growth and a rising force in Jiangsu’s development and opening up. We will support north Jiangsu to continue its infrastructure construction, carry out the project of “east Jiangsu on the sea”, promote the development of the economy of Xuzhou and Lianyungang, accelerate its process of industrialization, pushing north Jiangsu to a higher stage of development. We will encourage active participation in the development of west China, make efforts to provide aid and conduct economic cooperation and encourage qualified enterprise to make investments outside Jiangsu.

　　VI. Promoting reforms in all respects with a focus on reform of state-owned enterprises

　　Demand expansion and restructuring pose further requirements to deepen reforms. We will steadfastly carry forward all reforms with a focus on the reform of state-owned enterprises, creating a sound institutional environment for more rapid development.

 

　　We will deepen reform of state-owned enterprises and accelerate the formation of modern corporate system. We will guide and organize the efforts of large enterprises to catch up with top companies from both home and abroad and implement the strategy of emulation. We will speed up assets reorganization, promote win-win cooperation, and work hard to foster a group of internationally competitive enterprises and conglomerates in the fields of electronic information, household electrical appliances, engineering machinery, auto, metallurgy, bio-medicine, ports, circulation of commodities and trade. We will further lift restrictions on small and medium-sized state-owned enterprises and guide them onto the road of becoming professional with high-quality, special-featured and up-to-date products. A variety of means will be used, including bankruptcy, closure, auction and reorganization.

 

　　Those driven out by competition will leave the market in a regulated and orderly way. We will deepen the reform of corporate property rights, pay adequate attention to work to transform one hundred large and medium-sized leading state-owned enterprises into stock companies, and further improve corporate governance. We will encourage enterprises to change how they operate and manage. We will establish the mechanism of collective contracting and labor contracts so as to stabilize and coordinate labor relationship. Some large state-owned enterprises and listed companies will be selected to carry out pilot programs to pay managers, key managing, marketing and technological personnel salaries on a yearly basis with stock option. We will press ahead with reforms of the management, oversight and operation systems of state-owned assets and put sponsor of state capital well in place. We will explore means and forms to authorized operations of key enterprise groups and ensure the value of state assets are maintained and increased. The working class is the basic force to promote the development of advanced productivity; therefore, we will give full respect to the initiative and pioneering spirit of the employees and the general public and develop the enterprises with the efforts of the working class.

 

　　We will continue to reorganize ownership structure and develop non-public sector of the economy to a larger scale and a higher stage. We will vigorously encourage the development of the non-public sector of the economy, expand its business scope, protect the legitimate rights and interests of enterprises in the sector and abolish unreasonable burdens. We will encourage non-public enterprises to participate in the reorganization of state-owned and collectively-owned enterprises, promote the cooperation and coordination between economies of various ownership and enhance the diversification of investors and the form of business operation. We will encourage non-public enterprises to step up efforts to innovate management and technology, to become larger and stronger and improve competitiveness in the market. We will speed up the development of high-tech and foreign trade companies funded by private capital. We will pay high attention to developing the system of credit guarantee and support more financing of small and medium-sized enterprises and private companies. We will grant national treatment to enterprises of all types focusing on relaxing market access in order to create an environment for fair competition and common development.

 

　　In accordance with the principle of “addressing both the root causes and the symptoms of problems while effecting a permanent cure”, we will rectify and standardize the market order. We will continue to severely crack down on manufacturing and marketing of counterfeit and substandard goods, particularly in the fields of food production, medicine, medical apparatus and instruments and means of agricultural production, and root out the venues and market for counterfeit goods production and sale. We will rectify and regulate the market order of construction, cultural products and tourism industries and the collection and management of taxes. We will crack down on pyramid schemes, smuggling and other illegal and criminal activities. We will strengthen oversight of various types of market entities, attach great importance to ensure credibility in society and advocate business ethics, integrity and honesty and fair competition. We will work on an effective credit supervision and management system by putting in place a system for collecting information on the credibility of enterprises and individuals.

　　VII. Further developing the open economy

　　China’s accession to WTO signifies a new stage in China’s opening up. We should make full use of the transition period, making good preparations, seize new opportunities, create fresh advantages and promote further development in the course of dealing with challenges.

 

　　All measures concerning China’s entry into WTO will be implemented. We will formulate action plans for each region and industry in accordance with Jiangsu’s Main Work with China’s Accession to WTO, in order to put in place plans and effective responding measures. We will accelerate the establishment of an economic system and operating mechanism adapted to the rule of WTO and ensure that government functions are transferred to economic regulation, market oversight, management of social and public affairs. We will give play to the role of intermediary organizations. We will speed up industrial restructuring and improve the comprehensive competitiveness and the core competitiveness of enterprises in order to meet the needs of adapting industries in Jiangsu to the requirements of participating in global competition. We well enhance studies and research on rules of WTO and protect industrial security and the legitimate rights and interests of enterprises by making full use of the dispute settlement mechanism, anti-dumping, anti-subsidy and other protective measures of WTO. We will speed up efforts to formulate and revise local regulations, policies and measures and put an end to some of the existing ones. All these work will be exposed to the general public in time.

 

　　We will do everything possible to expand export. We will overcome difficulties and strive to grab the market for more deals and exports. We will encourage diversification of export markets, encourage expansion into emerging markets in Russia, East Europe, Latin America and Africa while maintain market shares in the major economies of the United States, European Union and Japan. We will continue to follow the strategy of competing on quality and developing trade through science and education. We will optimize our export mix, increase the proportion of new and high technologies and mechanical and electrical products and promote export of agricultural products. We will accelerate the development trade on technology and services. We will conscientiously implement the tax policies of “exemption, deduction and rebate.” We will improve coordination among the authorities of taxation, trade, customs, banking and inspection related to foreign trade so as to strengthen the joint efforts to expand export. We will improve management and control of imports and import more badly needed key technologies and important equipment as well as raw and processed materials. We will further develop major foreign trade enterprises and encourage manufacturers to engage in trade. At the same time, we will carry out the policy of allowing non-public enterprises to independently engage in importing and exporting.

 

　　We will work hard to improve the use of foreign capital. We will integrate use of foreign capital with economic restructuring and industrial upgrading. We will introduce more advanced technology, modern management expertise, professional personnel and R&D centers and regional headquarters of multinational corporations. We will give play to the role of investment-inviting offices stationed abroad. We will expand areas to use foreign capital, promote the use of foreign investments in export agriculture, equipment manufacturing, primary industries and infrastructure development and encourage the participation of foreign capital in the transformation and reorganization of state-owned enterprises. We will gradually opening up the banking, insurance, commerce and trade, education, tourism, telecommunications and other service sectors. We will vigorously seek for new investment patterns including venture capital, funds and securities, encourage qualified enterprises to raise capital from overseas and expand the scale of using foreign capital indirectly. We will be innovative in designing development patterns of the development zones, strengthen integration of functions, complementarity of advantages and their role as bases of attracting investment.

 

　　We will work harder to carry out the strategy of “going global”. We will promote overseas investment of the textile, light industry, household electrical appliances, machinery, bio-medicine and other industries mainly in the form of exporting existing equipment and mature technologies by making use of Jiangsu’s comparative advantages in products, technology and human resources so as to facilitate and expand the export of raw and processed materials and spare parts. We will accelerate building up centers for promoting investment and trade in Columbia and other regions and strengthen economic cooperation and trade with south Asia, Southeast Asia, Russia, Africa, Latin America and other places. We will encourage competitive enterprises with adequate scale to apply for the rights to engage in overseas engineering contracting and labor services in order to push foreign economic cooperation to a higher level.

　　VIII. Further implementing the strategy of invigorating Jiangsu through science and education

　　The fundamental way to strengthen Jiangsu’ comprehensive competitiveness is to implement the strategy of invigorating Jiangsu through science and education so as to constantly improve the competence of the people. We will energetically develop science, technology and education and the accumulation of human resources in order to provide substantial personnel and intellectual support for Jiangsu’s development.

 

　　We will press ahead with scientific and technological progress and innovation. We will accelerate the establishment of a technological innovation system based mainly on enterprises. We will effectively strengthen basic research, high-tech research and tackle major scientific and technological problems and strive for new and high technologies with proprietary intellectual property rights. We will promote the integration of industry with learning and research, enhance enterprises’ capability for independent innovation and speed up the application of research results of institutions of higher learning in industrial production. We will build up and improve the management system of intellectual property rights and protect the legitimate rights and interests of owners of intellectual property rights. We will intensify efforts to develop high-tech parks and industrial bases with unique characteristics and build the coastal high-tech development zone into a base for industrial application of new and high technologies with international competitiveness. We will accelerate the development of the Torchlight industrial belt in north Jiangsu and foster regional pillar industries oriented toward science and technology. We will effectively carry out reforms of research institutes oriented toward industrial applications and those non-profit ones and strengthen efforts to build up bases for scientific and technological innovation. We will improve institutional services for scientific and technological innovation. We will establish and improve the mechanism for venture capital and transaction of technology ownership, encourage the participation of overseas capital and non-governmental funds in scientific and technological development as well as industrial application in this field and give support to scientific and technological personnel in starting up high-tech enterprises. We will interaction between natural and social sciences, promote development of management science, emphasize of development of philosophy and social sciences and encourage theoretical innovation.

 

　　In the course of development, we will steadfastly give priority to education and press ahead with modernization in education. We will carry forward competence-oriented education and strive to improve education quality. We will further develop compulsory education in rural areas and prevent secondary school students from dropping out of school. We will increase enrollment of students in senior high schools. We will continue the reform and growth of higher education and strengthen the building of schools. We will put more effort into developing vocational education, continuing education and community education and gradually establish a system of lifelong education. We will accelerate IT application in education and develop modern distance education. We will implement the system of qualification certification for teachers and improve the overall quality of the teaching staff. We will encourage a new pattern in which compulsory education is mainly funded by the government and non-compulsory education is jointly sponsored by the government and non-government funds.

 

　　We will train and recruit more talented people. We will continue to carry out “333” project and press ahead with selecting and training high-level scientific and technological talents, leading personnel in academic research and technological progress. We will give priority to development of human resources in key fields and encourage training of talents in education, medicine and public health, electronic information, machinery and automobile, construction and agriculture. We will train and introduce a group of professionals who ware familiar with rules of WTO, competent in international language and international legal affairs. We will intensify efforts to develop post-doctorate working stations and other bases for cultivation and training of talents and encourage overseas studies, training and exchanges of high-level talents. We will adopt effective measures to attract talents and encourage students abroad and talented people in all fields to start their undertakings in Jiangsu. We will carry forward distribution system of institutions, implement the policy of distributing technology, management and other factors of production and crate a sound environment for attracting and using talented people.

　　IX. Striving to improve people’s standard of living

　　Striving to improve people’s standard of living is not only the fundamental reflection of implementing the important thought of Three Represents, but inherent needs of fostering and protecting domestic needs and promoting economic growth. We should do this work well and effectively from the perspective of striving for a more well-off and stronger Jiangsu and maintaining stability in the course of reform and development.

 

　　We will increase employment in urban and rural areas. We will give full play to the role of small and medium-sized enterprises and the non-public sector of the economy in absorbing labor forces. We will support and guide the development of labor-intensive industries and energetically develop the service industry, particularly service in communities, in order to provide more employment opportunities. We will continue to develop a fully functioning reemployment assistance mechanism, implement favorable policies to increase urban employment, promote diverse types of employment and expand the avenues for employment. We will encourage laid-off workers and the unemployed to change their job-hunting mentality and encourage people to find jobs on their own or become self-employed. South Jiangsu should make it an important task to accept migrant labor from north Jiangsu. We will foster and develop intermediary organizations of labor services, provide better job training and guidance and assist people to find job opportunities, accelerate the development of the labor market and improve the system of career services.

 

　　We will work hard to improve people’s lives. We will increase the basic salaries of employees in state organs and institutions and retirees' pensions in line with the instructions of the state. We will raise the standard of pensions for retirees from enterprises and allow state-owned enterprises to independently determine promotion and salary rise in accordance with relevant regulations. Budgetary funds of government at all levels should be used to pay wages and salaries first and ensure that employees in state organs and institutions are paid on time and in full. New arrears should not be allowed. Plans should be formulated as soon as possible to pay off arrears in accordance with the principle of “governments at different levels being held accountable for problems at corresponding levels.” It should be absolutely prevented to make investments by defaulting and diverting salaries of employees. Those counties and villages with the problem of salary arrears are not allowed to develop new projects with budgetary funds, let alone construct office buildings, purchase cars, and the government officials are not allowed to make trips abroad. We will increase transfer payments and step up efforts to alleviate poverty in rural areas. We will work hard to develop social benefits, relief and assistance, ensure and gradually improve the lives of the impoverished.

 

　　We will further improve the system of social security. We will accelerate the establishment of a social security system which is independent of enterprise and institutions, funded by diverse sources, standardized in its mechanism and socialized in its management and services in accordance with the basic requirements of supporting the aged, providing medical treatment to the sick, help the needy and assist those in difficulties. We will continue to ensure the "two guarantees". We will deepen the reforms of the pension, unemployment and medical insurance for urban employees and l expand the coverage of social security. We will improve the taxation of premium for social insurance and intensify efforts to collect social security contributions from all types of participating enterprises. We will implement the measures to socialize distribution of pensions. We will encourage developing complementary insurance varieties. We will steadily integrate the subsistence allowances for laid-off workers from state-owned enterprises into the unemployment insurance system. We will provide subsistence allowances to all qualified poor people in urban areas and ensure full coverage of social security. We will carry out pilot programs to establish rural social security system in some of the areas in south Jiangsu. We will deepen the reforms of the basic medical insurance system for urban working people, the medical care and health service system and the pharmaceutical production and distribution system.

 

　　We will vigorously implement the strategy of sustainable development. We will keep the birthrate low, control the population and improve people’s health. We will effectively protect farmland and ensure the balance of the expropriation and retuning of farmland. We will conserve energy and water resources, and rationally explore, utilize and protect marine resources, mineral resources. We will intensify environmental protection and ecological improvement and continue to ensure that the discharge standard of pollutants is met. We will intensify efforts to treat water resources comprehensively, press ahead with pollution treatment of Taihu Lake and Huaihe River and urban sewage treatment, prohibit exploitation of underground water in Suzhou, Wuxi and Changzhou and promote environment-friendly treatment of trash. We will put more efforts to afforestation and urban and rural landscaping. We will be strict in enforcing laws on environmental protection, strive to build model cities of environmental protection, demonstration zones of ecological improvement and cities and towns with beautiful landscaping, and make greater progress toward the goal of building a ecologically sound province.

　　X. Promoting socialist spiritual civilization and strengthening democracy and the legal system

　　Promoting spiritual civilization and strengthening democracy and legal system are important aspects of building socialism with Chinese characteristics. We will speed up promoting spiritual civilization, develop socialist democracy, improve socialist legal system and press ahead with social progress.

 

　　We will promote spiritual civilization and work hard to develop social undertakings. We will further carry out education on patriotism, collectivism and socialism and equip the cadres and the masses with Deng Xiaoping Theory and the important thought of Three Represents. We will carry out the Implementation Plan of Enhancing Moral Education and advocate social ethics, professional ethics and virtues in family life. We will spread scientific knowledge and promote a scientific spirit, a scientific and healthy lifestyle and good manners. We will encourage the general public to participate in activities designed to promote spiritual civilization by starting with the problems that the general public are most concerned with. We will conscientiously implement the program to build Jiangsu into a province excelling in cultural activities and press ahead with cultural undertakings in an all-round way. We will deepen the reforms of the internal management systems of the four major provincial-level conglomerates in the cultural sector, covering newspaper, publishing, radio and TV, and performing arts, and make innovations in their operation mechanism. We will accelerate the development of literature, art, the press, publishing, radio, film and TV. We will strengthen basic-level cultural development and enrich the cultural activities. We will carry out extensive mass fitness programs and strive to raise the standards of our competitive sports. We will continue to work hard to prepare for the Tenth National Games. We will ensure development of major cultural and sports facilities. We will pay high attention to prevention and control of serious diseases. We will launch health services in communities, make more efforts to improve primary-level health services and sanitation in rural areas and enhance the health and sanitation of the general public. Education in national defense among the people will be intensified to raise their awareness of its importance. We will build up the reserve forces and the militia to develop a fully functioning national defense mobilization system and improve civil air defense. We will intensify efforts to provide favorable policies to spouses of the servicemen and provide assistance and employment preferences to the servicemen. We will intensify activities to promote mutual support between the military and civilian sectors and their cultural and ethical programs to forge solidarity between the military (the police) and civilians. We will show our concern for women, children, the aged and the disabled and support programs that benefit them. We will continue to carefully carry out work related to foreign affairs, overseas Chinese, Taiwan affairs, auditing, civil affairs and counseling affairs.

 

　　We will promote the development of democracy and the legal system. Governments at all levels should consciously accept the oversight of the people's congresses and their standing committees at the corresponding levels and encourage the committees of the People's Political Consultative Conference to play their role in political consultation, democratic oversight  and participation in political affairs. We will take the initiative to strengthen ties with the democratic parties, mass organizations and patriotic persons without party affiliations. We will give full play to the role of bridging and connection of trade unions, the Youth League and women’s federation. We will widely solicit opinions and encourage scientific and democratic policy-making. We will further expand democracy at the lowest levels of government and improve self-governance by villagers and urban resident. We will uphold and improve the system of workers’ conferences and other systems of democratic management practiced in enterprises. We will keep the public informed on political issues, corporate governance and village affairs. We will fully implement the “Fourth Five-year Campaign on Publicity and education of Law” to increase publicity concerning the law and enhance the awareness of law of the general public. We will conscientiously implement the principle of law-based governance and improve the legal system of the government. We will deepen the reform of the system of administrative examination and approval and ensure that government at all levels enforce the law within the scope of their authority defined by law and the public is informed of the law enforcement procedures, that oversight of law enforcement is effective, in order to maintain strict governance and efficient administration. We will fight more vigorously against corruption, rectify unhealthy conduct of government departments and industries and prevent and address the problem of corruption from its root causes.

 

　　We will strive to maintain social stability. It is imperative that we correctly handle internal contradictions among the people as they crop up under changing circumstances, properly handle letters and complaints from the people, vigorously prevent and property handle mass events and improve the mechanism for forestalling and resolving unstable factors. We will increase our efforts to crack down on crimes, severely crack down on criminal activities and economic crimes and eradicate social evils like prostitution, gambling and drug-related crimes. We will enhance people’s awareness of national security. We will continue with our fight against Falun Gong cult and crack down on illegal and criminal activities in the disguise of religion. We will strengthen public security management in urban and rural areas and eliminate potential accidents. We will devote more efforts to ensure workplace safety and effectively curb occurrence of serious accidents. We will increase our efforts to maintain law and order by taking comprehensive measures and to build up a safe and stable society.

 

　　Fellow deputies, this year is aiming at changing our style of work and focusing on investigation and research. Government at all levels should develop correct attitudes toward power, speed up transformation of government functions, improve the style and methods of leadership and build a “clean, diligent, pragmatic and efficient” government in strict accordance with the “eight fors and eight agaisnts” adopted by the Sixth Plenary Session of the Fifteenth Conference of CPC. We will brave difficulties and hardships in an enterprising and innovative spirit with strong sense of responsibility and commitment so as to better shoulder the tasks bestowed by the Party and the people. Every government employee should bear in mind the fundamental principle of serving the people wholeheartedly and devote to work for the interests of the people. To adapt to changing situations and accomplish new tasks, we should work hard to learn political, economic, legal, scientific and technological knowledge, take Deng Xiaoping Theory and the important thought of Three Represents as the guide for reform, opening up and economic development and be innovative in carrying out our work. We should put more time and energy into going down to the primary level to do investigations and research, understand the situations and the ideas of the general public, care for their difficulties and problems and provide them with relief and assistance. We will encourage a pragmatic approach, oppose bureaucracy and formalism and will work hard to ensure effectiveness of implementation. We will develop the traditional virtues of being steadfast and assiduous in our pursuit, practice economy in all our work and prohibit any unnecessary expenditure. Each locality, department and organization should formulate clear and concrete objectives and requirements of reducing expenses. We will strengthen financial discipline, budgetary control, auditing and inspection, fighting against any extravagant or wasteful behavior unswervingly.

 

　　Fellow deputies, we have entered the second year of the new millennium. The tasks ahead are more lofty and arduous than ever before. We should unite our efforts, enhance our confidence, remain calm and sober-minded, make full use of advantageous conditions and evade those unfavorable ones, change our style of work and do a solid job. We should unite closely with the Party Central Committee with Comrade Jiang Zemin as General Secretary and greet the Sixteen National People’s Congress of CPC with fresh progress in reform, opening up and the modernization drive.