（二）大力推进改革开放，注重制度建设和创新

2. Working hard on reform and opening up, concentrating on institutional development and innovation.

全面深化农村改革。以乡镇机构、农村义务教育和县乡财政管理体制改革为主要内容的农村综合改革，取得阶段性重要成果。放开粮食收购市场，实现了粮食购销市场化。集体林权制度改革进行了成功探索。供销合作社、国有农场等改革进展顺利。

Rural reforms were deepened across the board. Major progress was made in the current stage of the overall rural reform, mainly consisting of reform of town and township government bodies, reform of the rural compulsory education system and reform of the fiscal systems at the county and township levels. Government control of grain purchasing was lifted, and the purchase and sale of grain are now market based. Successful trials were carried out in reforming the system of collective forest rights. Smooth progress was made in the reform of supply and marketing cooperatives and state-owned farms.

坚持完善基本经济制度。巩固和发展公有制经济，推进国有资产管理体制改革和国有经济布局与结构调整，建立和完善国有资产出资人制度。加快国有企业股份制改革，一批具有国际竞争力的大公司大企业集团发展壮大。邮政体制改革顺利进行，电力、电信、民航、铁路等行业改革取得积极进展。2006年，全国国有企业资产总额比2002年增长60.98%，实现利润增长2.23倍，税收增长1.05倍。国有经济活力、控制力和影响力明显增强。制定和实施一系列政策措施，进一步营造公平竞争的法制环境和市场环境，鼓励、支持和引导个体私营等非公有制经济发展。非公有制经济在促进经济增长、扩大就业、增加税收和活跃市场等方面，发挥着越来越大的作用。

Continued progress was made in improving the basic economic system. We consolidated and developed the public sector of the economy, made progress in reform of the management system for state-owned assets and adjustment of the distribution and structure of the state sector of the economy, and set up and improved a system for investors of state assets. We accelerated the reform to institute a stockholding system in SOEs, and a number of large companies and conglomerates with the ability to compete internationally were formed. Reform of the postal service system proceeded smoothly, and encouraging progress was made in reforming the power, telecommunications, civil aviation and railway industries. The total value of assets of Chinese SOEs in 2006 grew by 60.98% compared to 2002, their total profits increased by 223%, and their tax contributions grew by 105%. The vitality of the state sector and its impact and influence on the economy as a whole were greatly enhanced. We formulated and implemented a series of policies and measures to foster a legal framework and market environment conducive to fair competition, and encouraged, supported and guided the development of the nonpublic sector, which includes individual-proprietorship businesses and private enterprises. As a result, the nonpublic sector of the economy is playing an increasingly bigger role in stimulating economic growth, creating jobs, increasing tax revenue, and invigorating the market.

大力推进金融、财税体制改革。针对国有商业银行经营管理不善、金融风险加剧的状况，我们果断地推进了改革。中国工商银行、中国银行、中国建设银行和交通银行完成股份制改造并成功上市，资产质量和盈利能力明显提高，银行业发生了重大变化。坚定地进行上市公司股权分置改革，解决了这个长期困扰证券市场发展的制度性问题。重点国有保险企业重组改制上市，促进了保险业迅速发展。利率市场化改革迈出实质性步伐。实施人民币汇率形成机制改革，汇率弹性逐步增强。外汇管理体制改革全面推进。财税体制改革进一步深化，财政转移支付制度和公共财政制度逐步完善。2003年到2007年，中央财政对地方的转移支付累计4.25万亿元，87%用于支持中西部地区。在部分企业试行国有资本经营预算制度。启动和扩大增值税转型改革试点。统一内外资企业所得税制度。建立国家统一的职务与级别相结合的公务员工资制度，初步规范了津贴补贴制度。投资体制改革和价格改革取得新进展。

We vigorously promoted reform of the banking, fiscal and taxation systems. We resolutely carried out reform addressing the poor performance and greater financial risks of state-owned commercial banks. The Industrial and Commercial Bank of China, the Bank of China, the China Construction Bank and the Bank of Communications were turned into stockholding companies and listed on stock markets. This brought about significant improvement in the quality of their assets and profitability as well as major changes in the banking industry. We resolutely carried out reform of the shareholder structure in listed companies and resolved this longstanding institutional problem that hindered the development of the securities market. Key state-owned insurance firms were reorganized and went public, promoting rapid development of the insurance industry. Substantive progress was made in making interest rates more market-based. We reformed the RMB exchange rate regime to gradually make the exchange rate more flexible. Comprehensive progress was made in reform of the system for managing foreign exchange. Reform of the fiscal and taxation systems was deepened, and the system of transfer payments and the system of public finance were steadily improved. The central government turned over 4.25 trillion yuan in transfer payments to local governments from 2003 to 2007, with 87% of it allocated to the central and western regions. A budget system for managing state capital was introduced in some enterprises on a trial basis. We launched and expanded trials to reform the value-added tax. The income tax systems for domestic and overseas-funded enterprises were unified. A unified state civil servant salary system based on both position and rank was set up, and the system of subsidies and allowances was basically standardized. Further progress was made in reform of the investment system and pricing system.

加强市场体系建设。生产要素市场化程度稳步提高。商品流通现代化步伐加快。土地和矿产资源市场秩序、产品质量和食品药品安全等专项整治取得明显成效，保护知识产权力度加大，严厉打击了制假售假、非法传销、商业欺诈、盗版侵权等违法犯罪活动。

Work to develop the market system was intensified. Market forces played an increasingly important role in trade in the factors of production. The modernization of commodity distribution was accelerated. Significant achievements were made in the effort to rectify order in the markets for land and mineral resources and improve the quality of products and the safety of food and drugs. Protection of intellectual property rights was strengthened, and we severely cracked down on violations of the law such as the production and sale of counterfeit goods, pyramid schemes, commercial fraud, piracy and infringement on others' rights.

坚持扩大对外开放。我们认真履行加入世界贸易组织各项承诺，积极做好过渡期各项工作。深化涉外经济体制改革，促进贸易投资便利化。放开外贸经营权，大幅度降低关税，取消进口配额、许可证等非关税措施，金融、商业、电信等服务业开放不断扩大。进出口商品结构逐步优化。利用外资质量进一步提高。实施“走出去”战略迈出坚实步伐，对外经济互利合作取得明显成效。

We continued to open China wider to the outside world. We honored all the commitments we made when we entered the World Trade Organization and made all the required adjustments for the transition period. We deepened reform of the externally oriented economic system to facilitate trade and investment. We lifted controls over access to foreign trade, greatly lowered tariffs, rescinded non-tariff measures such as import quotas and permits, and opened banking, commerce, telecommunications and other service sectors wider. There was gradual improvement in the mix of imports and exports. There was further improvement in the utilization of foreign capital. The "go global" strategy was resolutely implemented and significant results were obtained in mutually beneficial economic cooperation with other countries.