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Report on the Work of the Government (2000)

(Delivered at the Third Session of the Ninth National People's Congress on March 5, 2000)

Zhu Rongji

Premier of the State Council

_____________

Note:

1. News dispatches are embargoed until the conclusion of today's meeting.

2. The official version of this speech in Chinese will be released by the Xinhua News Agency.

Fellow Deputies,

On behalf of the State Council, I now submit a report on the work of the government for your examination and approval and also for comments from members of the National Committee of the Chinese People's Political Consultative Conference.

I. Review of Domestic Work in 1999

Under the leadership of the Communist Party of China, the people of all ethnic groups worked hard in 1999 to promote reform, opening up and modernization, making new advances in all fields of endeavor.

The quality of national economic development improved. The objective for the growth rate of the gross domestic product was attained; there were structural adjustments in the economy; and economic performance improved noticeably. There was a good harvest, and preliminary improvements were achieved in the pattern of farming. Industrial production continued to grow while structural adjustments were being made. Some outmoded production capacity was eliminated; production of unmarketable goods decreased; and the sales rate of products rose steadily. Profits from industrial enterprises totaled 220.2 billion yuan in 1999, representing an increase of 52% over the previous year. Total profits from state-owned enterprises and enterprises with controlling share held by the state reached 96.7 billion yuan, an increase of 77.7% over the previous year, a record high for the past five years. The economic performance of most industries was noticeably improved. Industrial performance was better than the previous year in 27 provinces, autonomous regions and municipalities directly under the central government. National revenue was 150.1 billion yuan more than the 1998 figure. Total national revenue reached 1.1377 trillion yuan, exceeding one trillion yuan for the first time. There was stability in banking and financial operations, and money supply and total credit continued to increase. The volume of exports began to rise considerably in July, and total exports reached US$194.9 billion in 1999, a rise of 6.1% over the previous year. The use of direct foreign investment continued on a relatively large scale, but decreased slightly over the previous year. The exchange rates for the Renminbi remained stable. Foreign exchange reserves totaled US$154.7 billion at the end of 1999. The national economy continued to develop in a satisfactory manner.

Major progress was made in reforming state-owned enterprises and turning around loss-generating operations. We accelerated the separation of government functions from enterprise management. We have basically accomplished the objective of cutting all business ties between the Party and central government organs on the one hand and the economic entities set up by these bodies and enterprises directly under their jurisdiction on the other. The army, the armed police, and the procuratorial, judicial and public security organs are no longer engaged in business activities. The reorganization of key state-owned enterprises progressed, resulting in the formation of a number of large enterprise groups. Efforts to effect internal reforms in enterprises and changes in the way they operate were strengthened. Through merger, bankruptcy, reorganization, association, debt-to-equity swap, improved management and other measures, the number of large and medium-sized loss-generating state-owned industrial enterprises and loss-generating enterprises with controlling share held by the state decreased significantly. The objective of turning around the economic performance of state-owned enterprises within three years has been attained one year ahead of schedule in the textile industry. Profits were increased or losses reduced encouragingly in other industries. Significant progress was made in efforts to reform state-owned enterprises and turn around their operation in the three provinces in northeast China and other old industrial bases, with significant reduction of losses and increase of profits. These achievements encouraged the cadres and the masses to continue working to overcome difficulties and demonstrated that the objectives set by the central authorities for reforming state-owned enterprises and turning around operations within three years are attainable.

Science, technology, education and other social undertakings developed in an all-round way. Technological innovation and translation of scientific and technological advances into practical productive forces were accelerated. Basic scientific and high-tech research were strengthened. The reform of the management system for science and technology was deepened. Major progress was made in efforts to make nine-year compulsory education universal in the country and to eliminate illiteracy among young and middle-aged people. Regular university and college enrollment increased by 47.4% over the previous year, the biggest increase in years. Continued progress was made gradually in the reform of education and in the work of improving the overall quality of students. Notable advances were made in environmental protection and ecological conservation. Social sciences continued to develop. New levels of achievements were reached in literature and art, the press and publishing, radio, film and television, family planning, public health, sports and other related fields. Efforts to ground cultural and ethical values on socialist principles and to improve democracy and the legal system were reinforced. Fresh progress was made in efforts to promote democracy at the grass-roots level. A wide-reaching and powerful drive to combat all forms of criminal activity was carried out, bringing about improvement in all facets of public security and increasing social stability. Fresh steps were taken in efforts to build a clean and honest government and in the struggle against corruption. Modernization of national defense was accelerated.

The living standards of both urban and rural residents continued to improve. The government increased the incomes of urban dwellers with low and medium level incomes on July 1 of last year. The level of the basic cost of living allowances for laid-off state enterprise workers, the level of unemployment insurance benefits, and the level of subsistence allowances for urban residents were all increased by 30%. The salaries and wages of employees working in government departments and institutions and old-age pensions for those retired from there were increased along with the old-age pensions for workers retired from state-owned enterprises. All back pension entitlements were paid for workers retired from state-owned enterprises covered by the overall state plan. Certain allowances for disabled service men and women and family members of revolutionary martyrs and service men and women were increased. Total budgetary expenditures were increased by more than 54 billion yuan to cover these items, which benefited over 84 million people across the country. The per capita disposable income of urban reside

（责任编辑：中大编辑）

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