Government Work Report (2006)
(Xinhua)
Updated: 2006-03-15 11:05

Fellow Deputies,

We will continue to uphold the principle of "one country, two systems," under which Hong Kong people administer Hong Kong and Macao people administer Macao with a high degree of autonomy. We will strictly comply with the basic laws of the Hong Kong and Macao special administrative regions and give our full support to their chief executives and governments in administering the regions in accordance with the law. We will continue to implement the Closer Economic Partnership Arrangement the mainland has with Hong Kong and Macao and increase exchanges and cooperation between the mainland and the two of them in matters of the economy, trade, science and technology, education, culture, health and sports. We firmly believe that Hong Kong and Macao will remain prosperous and stable for a long time to come.

We adhere to the basic principles of "peaceful reunification" and "one country, two systems" and the eight-point proposal for developing cross-Straits relations and promoting China's peaceful reunification under the present circumstances. We will unswervingly uphold the one-China principle and never give up our efforts to achieve peaceful reunification. We will never change the principle of placing our hopes on the people of Taiwan. We will uncompromisingly oppose secessionist activities aimed at Taiwan independence. We will continue working with Taiwan compatriots to facilitate visits by individuals, promote economic, scientific, technological, and cultural exchanges and cooperation, and establish peaceful and stable cross-Straits relations. We will strive to resume dialogue and negotiation between the two sides under the one-China principle and promote resumption of direct links for postal, air and shipping services and trade on a comprehensive, direct and two-way basis. We will support economic development on the west shore of the Taiwan Straits in Fujian and in other areas where Taiwan investment is concentrated, protect the legitimate rights and interests of our Taiwan compatriots in accordance with the law, and serve them whole heartedly. Everyone wants cross-Straits relations to be peaceful and stable and develop to the mutual benefit of both sides. Anyone who tries to reverse this major trend will most certainly fail. It is the common wish of all Chinese people to see the ultimate realization of the great cause of national reunification, a process that no one can stop.

Fellow Deputies,

Over the last year we held high the banner of peace, development and cooperation and continued to follow an independent foreign policy of peace. We safeguarded the fundamental interests of China and its people, developed friendly ties and mutually beneficial cooperation with foreign countries, and contributed to common development and the safeguarding of world peace.

This year we will unswervingly continue to take a road of peaceful development. In international affairs, we will continue to advocate democracy and justice and promote coordination and cooperation. We will continue to safeguard security for all on the basis of harmony and mutual trust and promote common prosperity on the basis of equality and mutual benefit. China will continue to be open-minded and inclusive, promote dialogue between civilizations, and work to make the international order more just and equitable.

We will strengthen China's diplomacy in all areas on the basis of the Five Principles of Peaceful Coexistence. We will consolidate and strengthen friendly cooperation with other developing countries. We will adhere to our foreign policy of friendship and partnership with our neighbors, promote the formation of a mechanism for regional cooperation, and take cooperation in practical matters with our neighbors to a new high. We will expand common interests with developed countries, deal with differences appropriately, and promote exchange and cooperation with them. We will actively participate in and initiate multilateral diplomacy and play a constructive role in international and regional affairs. We will expand and intensify cultural exchanges with other countries to increase understanding and friendship between our peoples. We will protect the lawful rights and interests of Chinese nationals and corporations overseas. The Chinese government and people will work tirelessly with the people of all other nations for a peaceful, just and harmonious new world.

III. Explanation of the Outline of the Eleventh Five-Year Plan for National Economic and Social Development (Draft)

The Proposal of the CPC Central Committee for Formulating the Eleventh Five-Year Plan for National Economic and Social Development, adopted at the Fifth Plenary Session of the Sixteenth Central Committee, sets forth the objectives, guiding principles and main tasks for China's economic and social development for the next five years. On the basis of the Proposal, the State Council prepared the Outline of the Eleventh Five-Year Plan for National Economic and Social Development (draft), which has been submitted to this session for your examination and approval. I would now like to briefly go over several points.

1. The compilation process and major features of the Outline (draft)

The Central Committee and the State Council took the drafting of the Eleventh Five-Year Plan very seriously. The State Council began making arrangements for preparatory work for the drafting in July 2003. It organized central government departments, local governments, research institutions and experts in various fields to carry out research on major issues facing economic and social development, laying the groundwork for compiling the Outline (draft). Following the Fifth Plenary Session of the Sixteenth Central Committee, the State Council carried out in-depth research based on the Proposal of the Central Committee before compiling the Eleventh Five-Year Plan. A committee of experts from various fields was set up to carry out consultation and deliberation. Suggestions were solicited in various forms nationwide, and many suggestions were submitted by deputies to the people's congresses, members of CPPCC committees, and people from all sectors of society. Drafting the Outline was therefore a democratic, scientific policy-making process that pooled the wisdom of the Chinese people.

The Outline (draft) seeks to reflect requirements resulting from the development of the socialist market economy and implementation of the policy of reform and opening up. It is a macroscopic, strategic policy document that clearly defines the government's priorities and responsibilities. The document is original in both form and content. The content of the Outline (draft) gives specific expression to the strategic philosophy of implementing a scientific outlook on development and building a harmonious socialist society. It emphasizes the need to maintain the "five balances," strengthen weak links in economic and social development, solve the problems that concern the people and affect their vital interests, and properly balance market forces and macroeconomic regulation. The targets in the Outline (draft) are divided into two types: anticipated and obligatory. Anticipated targets are those that we expect or hope to meet, mainly by guiding the actions of market players. Obligatory targets are those that must be achieved, mainly by improving management in accordance with the law and providing services. In form, the Outline (draft) consists of a main body and a number of boxes, in which development targets and key projects are listed. The content of the main text is presented in a clear and easy-to-read way.

The Outline (draft) was compiled based on data from China's first economic census. This census, which took over two years to complete, gives the clearest picture yet of the basic state of the nation's economic and social development, and shows the true GDP and the true proportions of the economy accounted for by primary, secondary and tertiary industries, thus more closely and accurately reflecting China's national conditions and strength. Because it is based on the results of the first economic census, the Eleventh Five-Year Plan better reflects China's conditions and is more scientific.

2. Major economic and social developments during the Tenth Five-Year Plan period

The past five years were an unusual period of development in China, one in which we built on our past achievements and kept pace with the times. We avoided any serious impact from the Asian financial crisis, prevailed over the SARS outbreak, and overcame major natural disasters. We lost no opportunity to further reform and opening up, strengthened the basic role of market forces in allocating resources, improved macroeconomic regulation, and maintained fast yet steady economic development. The pace of China's progress in industrialization, urbanization, market development and internationalization increased significantly; overall production capacity, overall national strength and people's living standards all reached new highs; and the appearance of both urban and rural areas underwent great changes.

China's economic strength grew significantly over the last five years. GDP was 57.3 percent higher in 2005 than in 2000, an average annual increase of 9.5 percent. Government revenue rose by 136 percent over the same period, up an average of 364.7 billion yuan per year. Agricultural production, particularly grain production, took a significant turn for the better. The output of major manufactured products grew substantially. High-tech industries expanded rapidly. Tremendous achievements were made in strengthening basic industries and infrastructure development. Construction of many major projects was completed, and many others were launched in such fields as water conservancy, energy, transportation and communications. IT application in the economy and society expanded rapidly.