I.  Review of the Work of the Government in the Past Five Years

The past five years was an important period for Jiangsu’s development. Under the leadership of the CPC Central Committee, the State Council and the provincial Committee of the CPC, people throughout the province, holding high the great banner of Deng Xiaoping Theory and thoroughly putting into practice the important thought of Three Represents, united with one heart and one mind, continued our concerted and unyielding efforts, and have achieved all goals set by the 9th National People's Congress.

The national economy preserved the good development momentum; the adjustment of economic structure obtained the remarkable result. The economy continued its fast and sound development.

Jiangsu’s GDP rose from 0.66 trillion yuan in 1997 to 1.0636 trillion yuan in 2002, an average annual increase of 10.7 percent, when calculated in constant prices. The GDP per capita rose from 9344 yuan to 14397 yuan, up 10 percent. The augmentation proportion of the primary, second and tertiary industry adjusted from 15.1: 51.1: 33.8 to10.6: 52.1: 37.3.

Agriculture and rural economy kept a stable development. The industrial structure adjustment obtained an obvious remarkable result; service industry, especially the modern service industry enjoyed a quick development. The urban and rural structure adjustment saw a significant breakthrough, the communal development among regions quickened, south Jiangsu radiated the impetus function bringing up the north Jiangsu’s development.

The financial revenue increased successively, the financial gross income increased from 51.29 billion yuan in 1997 to 148.37 billion yuan, an average annual increase of 23. 7 percent. Local finance income increased from 27.32 billion yuan to 83.46 billion yuan, an average annual increase of 25 percent. The proportion that local finical revenue occupied in GDP rose from 7. 7 to 13. 9 percent.

The demand of investment and consumption expanded unceasingly, the social fixed asset investment during five years accumulated 1542.58 billion yuan, an annual average grow of 11.8 percent. The infrastructure construction advanced, the additional investment reached 569.62 billion yuan, an average annual increase of 15. 9 percent. The national debt project construction obtained the remarkable result, 366 national debts projects brought up more than 11.2 billion yuan of key projects investment.

Efforts were focused on restructuring, and investment was increased in agriculture, water conservancy, energy, transportation, environmental protection and social undertakings. Renovating of the Tongyu River, the southern Jiangsu canal achieved comprehensive accomplishment. The second Nanjing Yangtze Bridge, the new long railroad was completed in its entirety and put into operation. The construction of Tianwan nuclear station, the pipeline to divert natural gas from the west to the east was speeding up. Further progress was made on major projects such as those of Ruiyang (Yangzhou-Zhenjiang) Yangtze Bridge, of Ningqi (Nanjing-Qidong) railway, of Sutong (Suzhou-Nantong) Yangtze Bridge, of the third Nanjing Yangtze Bridge, of the West-to-East Electricity Transmission, Nanjing underground Project and the South-to-North Water Diversion Project. Installed power-generating capacity was increased by 23.02 million kilowatts, 1,702 kilometers of highways and an additional 27,691 kilometers of roads were opened to traffic in 2003. Consumption hot spots such as housing, automobile, traveling, non- compulsory education, culture and information service have formed. In 2002, entire social consumable total volume of retail sales reached 321.58 billion yuan, up 109.77 billion yuan than the year 1997 with the annual average increase of 8. 7 percent.

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. Economic restructuring moved forward, the mechanism of market economy has preliminary established. Further progress was made in the reform of state-owned enterprises. Thirteen state-owned enterprises achieved more than 10 billion yuan revenue. A basic framework for the oversight and management system for state assets was established. The reform to turn state-owned commercial banks into stock companies progressed smoothly. The distribution and structure of the state-owned sector of the economy readjusted strategically and the mechanism for ensuring rational distribution of state funds by increasing investment was improved. In 2002, the number of individual and private enterprises reached 1.573 million and 286 thousand respectively.

The rural tax reform led all around reform in countryside, greatly lightened farmers’ burden. The social security system reform deepened. People’s basic medical insurance system, the medical health system, the drugs production circulation system reform advanced steadily. Reform of finance and taxation, circulation and price launched comprehensively. The modern market system construction made new progress; the social credit system construction saw initial effects.

The open economy maintained its momentum of growth. Total import and export volume increased from US$23.62 billion in 1997 to US$70.3 billion, an average increase of 24.4 percent. Of this sum, the export volume reached US$38.48 billion, up 22.3 percent over the previous year. Thanked to the investment of 153 of the world top 500 enterprises, Jiangsu owned a record high US$36.96 billion foreign direct investment in the past five years, ranking top of the foreign investment utilization since the Opening up and Reform. The development zones entered the stage of rapid growth and high yields. International economic and technological cooperation and tourism kept 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.

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 innovation system projects based on enterprises were organized. The development of new and high-tech zones, industrial belts along the Yangtze River and in north Jiangsu were speeding up. Great efforts were put into our work concerning exploration of high-tech project, protection of intellectual property rights, oversight over quality, standardization and measurement as well as transformation of a number of research Institutes to enterprises. In 2002, the production value of high-tech project reached 25.278 million yuan, up 1.5 times than 1997.

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 senior education popularity reached 78．6 percent. The renovation of dangerous teaching buildings has completed. Fresh achievements were made in human resources development and reform of the personnel system. 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. 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. The 6th Art festival and the 11th book market ended with success. Government legislation was promoted and the principle of law-based administration was followed. Work on statistics, auditing and oversight over economic activities were strengthened. 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 rectification and standardization of the market order obtained significant results. Efforts to ensure workplace safety were strengthened and social stability was maintained.

People’s living standard has greatly improved with the establishment of the social security system. The disposable income per capita of urban dwellers went up from 2,413 yuan in 1997 to 8,178 yuan in 2002, an average annual increase of 7.2 percent in real terms. The net income per capita of rural households increased from 3,270 yuan to 3,996 yuan, up by an annual average of 4.1 percent in real terms. The building space per capita of urban habitants reached 24.5 square meters, compared to that of 35.1 percent in rural area. The living environment has been greatly improved. The number of re-employment of the Laid-off Workers reached 2.60 million, transfer of rural labor force 5million persons.

Fellow Deputies,
The achievements Jiangsu has made in various fields over the past five years have not come easily. We owe them to the correct leadership and decisions of the CPC Central Committee, the State Council and Jiangsu provincial committee of the CPC, to the unity and the hard work of people throughout Jiangsu, and to the support and intendance from provincial People’s Congress and provincial Committee of the Chinese People's Political Consultative Conference (CPPCC). Here, on behalf of the Jiangsu provincial government, I would like to pay our highest tribute to all our workers, farmers, intellectuals and cadres; to the people of all ethnic groups, all democratic parties, mass organizations and other people from all walks of life for their trust and support of the government to I would like to extend our heartfelt thanks to officers and men of the People's Liberation Army, the Armed Police and the public security police. I would also like to express our sincere thanks to our compatriots in the Hong Kong Special Administrative Region, the Macao Special Administrative Region, Taiwan and the overseas Chinese communities as well as all friends in other countries who have cared about and supported Jiangsu’s modernization drive.

We are clearly aware that there are still many difficulties and problems in Jiangsu's economic and social life. They are, in the main, as follows: the need to continue to rectify and standardize the order of the market economy, slow growth in the income of farmers and some urban residents, rise in the unemployed and serious difficulties in some people's livelihood, continued inequities in the distribution of income, sporadic occurrence of major industrial accidents, poor public security in some places, continued isolation from the people and perpetration of formalism, bureaucracy, falsification, extravagance and waste among some government officials, and certain types of corruption remaining conspicuous. More steps should be taken conscientiously to solve them.

II.  The Master Work Plan for 2003

The first 20 years of the new century is a good opportunity for Jiangsu’s development that must be seized. In accordance of the grand blueprint and program of action for building a well-off society in China in an all-round way mapped out by the 16th Party Congress, Jiangsu provincial committee and the provincial government has pointed out that: By 2010, Jiangsu’s GDP would have risen 1.4 times than that in 2000, the GDP per capita would have passed 3400 calculated at the current exchange rate. By 2020, Jiangsu’s GDP would have reached 2 times than that in 2120, the whole province would have basically realized modernization in fields of the economics, Scientifics, people’s living standard, legal system, society as well as environment,

In the following five years, our main objectives of the development are: GDP keeps an average annual increase of 10 percent. The glosses economy reaches 174 million yuan by 2007; the GDP per capita passes 230 thousand yuan. (calculated US$2800 at the current exchange rate). In order to achieve these goals, we should strive to make progress in the 6 following aspects.

1. Stepping up the modern industrialization: taking the high-tech industry as main line with prominent industry as support, to form Jiangsu into an international manufacturing base,
　　
2. Making further progress in the reform of state-owned enterprises and turning private economy into a star increase in the GDP.

3. Further implementing the "go global" strategy. Taking advantage of opportunities to move forward with economic restructuring and open wider to the outside world

4. Coordinating the development of urban and rural areas.

5. Pushing forward the communal development of regions and improving the general competence.

6. Improving people’s living conditions, establishing a social security system adapted to the level of economic development.

The objective of the control over the economic and social development in Jiangsu is a more than 10 percent increase in GDP, a 12 percent rise in local fiscal revenues, a 10 percent increase of total retail sales of consumer goods, a 10 percent increase in total fixed assets investment, a 10 percent increase in export and a 5 percent rise in utilized foreign capital. It is expected that the residents’ consumption price will rise by 1 percent, urban disposable income per capita will increase by 8 percent, rural net income per capita will grow at 5 percent, the urban unemployment rate and the growth rate of population will be controlled under 4.5 percent and 4 percent respectively.

III.   Maintain the Fast and Steady Economic Development

Continue to expand the national demand of investment and consumption; social fix asset investment increasing about 50 billion yuan than the previous year. In the following five years, construction basically completed will be: The second Nanjing Yangtze Bridge, the new long railroad completed in its entirety and put into operation. The construction of Tianwan nuclear station, the pipeline to divert natural gas from the west to the east will be speeding up. Further progress will be made on major projects such as those of Ruiyang Yangtze bridge, of Ningqi railway, of Sutong Yangtze Bridge, of the third Nanjing Yangtze bridge, of the West-to-East Electricity Transmission, Nanjing underground Project and the South-to-North Water Diversion Project. Installed power-generating capacity increases by 12 million kilowatts; housing, automobile, traveling, non- compulsory education, culture and information service continue to be consumption hot spots.

The key of establishing a society in an all-round way lies in the urban area. Improving the system of subsistence allowances for urban residents, and areas where conditions permit may establish a system of subsistence allowances for rural residents. The major measures we are taking will reduce or exempt the agricultural tax, rescinding all taxes on special agricultural products except tobacco, directly subsidizing grain producers, providing subsidies to farmers in certain areas to purchase improved crop strains and agricultural machinery and tools, and setting a floor price for the purchase of major cereal varieties. Investment will be substantially increased in agriculture and rural areas, particularly in major grain-producing areas. Improve our work relating to agriculture, rural areas and farmers. Solving the problems facing agriculture, rural areas and farmers remains a top priority of all our work. To adapt to the needs of the new stage of our economic development, we will implement the principle of industry nurturing agriculture and cities supporting the countryside and rationally redirect the distribution of national revenue toward the development of agriculture and rural areas. We will expand support for this development in a number of ways, with the focus on expanding overall agricultural production capacity, steadily improving grain production and constantly increasing rural incomes.

Optimizing and upgrading the industrial structure. We will stay on the new road of industrialization. We will spur industrial restructuring by relying on scientific and technological advances and will focus on becoming better able to make independent innovations. We will accelerate development of new and high technologies that can greatly stimulate economic growth as well as broadly applicable, key and accessory technologies that can propel the upgrading of traditional industries. We will promptly formulate innovation targets and measures for achieving them in key technologies in a number of important fields and make breakthroughs as quickly as possible. We will improve the systems and policies that encourage innovation. We will continue to introduce advanced technologies, assimilate them, and make innovations in them, while concentrating on enhancing our own development capacity. We will energetically develop new and high technology industries and integrate information technology into the national economy and society. We will accelerate the transformation and upgrading of traditional industries through new and high technologies and advanced applied technologies. We will revitalize the equipment-manufacturing industry, focusing on major projects. Guided by plans for specific projects, we will continue strengthening basic industries like the energy industry and important raw materials industries as well as infrastructure development in water conservancy, transport and communications. We will vigorously develop tertiary industries such as modern distribution services, tourism and community services. We need to accelerate the development of capital- and technology-intensive industries and continue to develop labor-intensive industries.
 
Promote the reorganization and technological upgrading of enterprises. We will take existing enterprises as our base, making good use of reserve capacity and preventing indiscriminate construction of new facilities. We will give more support in the areas of taxation, financing and land use to key enterprises undergoing technological upgrading. Efforts will be concentrated on integrating technological upgrading of enterprises with their reform. We will support and encourage the investment of non-government capital in the reorganization and technological upgrading of enterprises.

Accelerate the process of urbanization and the modernization of urban areas. We will guide more effectively the development of regional economies according to their type, and promote the interaction and joint progress between the restructuring of industries urban and rural development, and regional economies. Push forward the Nanjing-Suzhou-Changzhou development zone.

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. 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.　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.

IV.  Step Up the Reform and Innovation

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. Continue deepening the reform in urban areas. Perfect land contract relations, respect the main body status of peasant’s household in the market, endow with the peasant the land employment right. The advancement collective land use system reform, the perfect land takes over for use the system.  In accordance with the principal of “consolidation, perfection, enhancement ", deepen the tax reform in urban area, carrying out all necessary measures in reform. Establishing the new surveillance management mechanism to reduces the peasant burden, guarantying the essential compulsory education funds. Continue deepening the grain cotton reform of distribution system. Promote forward reform of property relations on water conservancy, forestry, farm machinery and the state-owned gardens. Develop professional cooperative organization in rural area. Support a group of professional cooperation bodies and professional associations, perfecting market circulation system of agriculture products. Promote forward reform of social causes such as rural science and technology, culture and hygiene, adjusting reasonably structure layout.

Push forward reform of state-owned enterprise and that of the state property management system. Strengthen and develop public economy. Explore various effective ways to realizing the public ownership especially state-owned system. Promote vigorously innovation of state-owned enterprise system and technical as well as management. Carry out share-holding system transformation, develop mixture ownership economy.  Encourage foreign capital, people capital and the social capital of legal person to participate in state-owned enterprise reorganization, promote diversification of main investor. Through market and policy guidance, develop the group of big company of international competitiveness, coordinate development among big, medium and small businesses. Deepen enterprise internal reform; encourage restraining mechanism with effective establishment. Explore the effective way to establish the state-owned property.

Promote forward reform on finance and tax. On the basis of the tax-sharing reform, new reforms for sharing income tax revenue will be implemented in our fiscal system. The system of preparing department-specific budgets was introduced at both central and provincial levels. Experiments on separating management of revenue and expenditures and reforming the unified treasury collection and payment system have been progressing steadily. Noticeable results were also achieved in the reform of the taxation system and the tax collection and management. Reform of the investment and financing system was gradually deepened, with new sources of investment and financing opened up and the ways of investment and financing diversified.

Continue to transform government functions and endeavoring to build a clean, diligent, efficient and pragmatic government. We must deepen the reform of the administrative system. In keeping with separation of the government from enterprises and the principles of simplification, consistency and efficiency, we should continue to transform government functions, reorganize the government setup, clarify the functions of government departments, reduce administrative examination and approval, and improve government management so as to bring about an administrative system that has standardized behavior and operational harmony and is fair, transparent, clean and efficient. We should strengthen institutional improvement, intensify administrative supervision and auditing, and fight corruption by addressing its root causes. We should do a good job with letters and visits from the people and intensify oversight by the media and the general public. Encourage and standardize development of all kinds of social agencies as well as guilds adapted to market demand.

While adhering to and improving our basic economic system in which public ownership plays the dominant role and diverse forms of ownership develop by its side, we will unswervingly consolidate and develop the public sector of the economy, and unswervingly encourage, support and guide the development of the individual, private and other non-public sectors of the economy. We should expand the area in which private capital has market access and create an environment of fair competition for all types of market players. We should steadily carry out reform of the financial system and continue reforms of the taxation, investment and financing systems. We should strengthen supervision and management to effectively protect legal rights and interests of individual, private proprietors.
　　

Continue to reorganize the economic market order.  Speed up the establishment of a modern market system of unification, opening and competition. Develop market of capital, property right, land, labor force and technology. Strengthen the market construction and management. Severely attack the fake fabrications and sells, smuggling and illegal criminality, advance society credit system construction, sets up the image." Jiangsu of good faith” .

V.  Steadfastly opening wider to the outside world

This year we are faced with many new situations as we open up the country to the outside world. Tariffs need to be reduced to the level we promised when China joined the WTO, most non-tariff measures need to be eliminated, and the service sector needs to be opened wider to foreign competition. We need to respond to these new situations to ensure success in opening up. First, we need to speed up improvement in the growth pattern of foreign trade. We will improve the export mix, promote upgrading of the processing trade and ensure continued growth of exports. We will continue to effectually import energy, important raw materials, key technologies and major equipment. We will reform the system of port management and simplify customs clearance procedures. We will handle international trade frictions and disputes properly. Second, we need to continue to utilize foreign capital energetically and rationally. We need to improve the performance of foreign capital and better integrate efforts to attract foreign investment with efforts to improve the country's industrial structure and technological level. We will encourage foreign investors to invest in new and high technology industries, modern services, modern agriculture and the central and western regions. We will keep the number of projects that consume excess quantities of resources and are highly polluting to a minimum. Third, we need to further implement the "go global" strategy. We will encourage qualified enterprises to invest and do businesses in other countries, give them more credit, insurance and foreign exchange support, and strengthen guidance and coordination for enterprises operating abroad. We will develop a sound system for managing and supervising state assets abroad. Fourth, we need to do all work for the transition period of our entry into the WTO promptly and well. We will continue to develop multilateral and bilateral economic relations and actively participate in regional economic cooperation.

VI Working hard to improve people's lives

pay particular attention to solving prominent problems relating to their vital interests. We further implemented all policies and measures to stimulate employment and reemployment. We will continue successful efforts to provide the "two guarantees" (guarantee of a basic living allowance for workers laid off from state-owned enterprises and guarantee that the pensions of retirees are paid on time and in full, tr.) and ensure needy urban residents receive subsistence allowances. The national standards for basic retirement benefits for workers retired from enterprises were raised on July 1, 2004. Many local governments also promptly raised the level of their subsistence allowances. We will continue work on the pilot projects to improve the urban social security system. A total of 146.5 billion yuan was spent from the central budget for social security last year, an increase of 18.1 percent over the previous year.

VII.  Coordinate Development of the” Three Civilizations”

Improve our ability to perform our duties in accordance with the law. We will conscientiously implement the basic policy of governing the country by law and the Program on Performing Official Duties in Accordance with the Law promulgated by the State Council, and speed up work to build a law-based government. Governments at all levels and their departments must strictly abide by the Constitution and laws, exercise their powers and perform their duties within their stipulated scope of authority and on the basis of the procedures defined by laws, and accept oversight. We will implement a responsibility system for enforcement of administrative laws and put a stop to overlapping jurisdiction and unfair practices in law enforcement. We will strengthen the administrative accountability system and investigate and prosecute administrative improprieties in accordance with the law. All departments must strengthen their internal management, actively cooperate with and support auditing offices and supervision departments in the performance of their duties in accordance with the law, and conscientiously correct any problems discovered in the process. The scope of public and media oversight of the government and its departments will be expanded. We intensified our work relating to land and resources, environmental protection and ecological conservation. The long-term treasury bonds issued this year will be used mainly to increase investment in weak links such as agriculture, rural areas and farmers; social development; and ecological conservation and environmental protection.

VIII.   Earnestly Improve the Government Itself

Make great efforts to improve the government's style of work. We will adhere to the principle of "people first and government for the people." We will maintain a scientific outlook on development and a correct attitude toward our performance, and be realistic and pragmatic in our work. We must strictly enforce the Statistics Law. We will work to establish a scientific system for evaluating government performance and a system for comprehensively evaluating economic and social development. We must resolutely oppose formalism and the practices of falsifying reports. We cannot build any more "image projects" or "vanity projects" that waste both money and manpower. We will reduce the number of meetings and documents and improve their style. We should strictly standardize and regulate all kinds of inspections, evaluations and all other activities to determine compliance with standards. We should conscientiously follow the guiding principles of the State Council's Third Conference on Clean Government and intensify our efforts to build a clean government and combat corruption, focusing on reforms and institutional development. In conjunction with the Education Campaign to Preserve the Advanced Nature of Party Members, we will strengthen the education, management and oversight of public servants and work hard to turn them into a contingent of public servants with whom the people are satisfied.

Fellow Deputies,
We firmly believe that, under the leadership of the CPC Central Committee with Comrade Hu Jintao as General Secretary, the people of all ethnic groups throughout the country, holding high the great banner of Deng Xiaoping Theory and thoroughly putting into practice the important thought of Three Represents as well as the spirit of the 16th Party Congress, will unite with one heart and one mind, continue our concerted and unyielding efforts, and achieve further successes in building Jiangsu into a well-off province and achieving its modernization drive!