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3. Aggressively push forward the readjustment of the industrial structure and the development of the western region

We should speed up the readjustment of the industrial structure according to the need for a new approach to industrialization. Vigorous efforts should be made to develop high and new-tech industries that can greatly spur our economic growth. We should energetically promote IT application and use IT to propel and accelerate industrialization. We should make extensive use of advanced adaptive technologies to transform traditional industries and invigorate our equipment manufacturing industry. We should do a good job in planning and readjusting the development of our steel, automobile and building materials industries to prevent blind expansion and disorderly competition. We should eliminate an even bigger slice of our production capacity that has become obsolete. We should vigorously develop modern services and tourism. We should attach great importance to the development of community-based services.

The development of our western region requires sound and persistent efforts. We should focus on key projects, stress practical results and lay a solid foundation. While continuing to strengthen our protection of the ecological environment and infrastructure development, we should effectively restore cultivated land to forests, protect natural forests, and prevent further desertification. The program of restoring grazing areas to grasslands should continue, and relevant legal work should be intensified. We should work harder and more effectively on major projects to ensure the progress and quality of construction. Economic activities with local characteristics and competitive industries should be given greater support. We should accelerate the development of science, technology and education in the western region. Economic exchanges and cooperation among the eastern, central and western regions should be strengthened, so that they can complement one another and develop side by side. Measures should be tightened to prevent unwarranted transfer to the western region of discarded, obsolete industrial equipment and polluting enterprises. We should take effective measures to support the old industrial bases in Northeast China and other regions in their efforts to quicken readjustment and technological transformation, encourage cities or areas that are mainly dependent on resource exploitation to develop alternative industries, and help the old revolutionary base areas and areas inhabited by ethnic minorities to develop more quickly.

4. Deepen economic restructuring and open still wider to the outside world

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 continue to push reforms turning state-owned enterprises into standard joint-stock companies and improve the mechanisms of supervision over them in accordance with the requirements of establishing a modern corporate system. We should actively support eligible large enterprises to become listed on overseas stock markets. We should establish large, internationally competitive companies or enterprise groups that have distinctive main lines of business and possess their own intellectual property rights and name brands. We should do a better job of reorganizing military-industrial and other enterprises in difficulties and help them out of their plight. We should carry forward the reform of the power, telecommunications and civil aviation industries. We should reform the state property management system from top to bottom in an orderly way. 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 support the development of small and medium-sized enterprises, especially technology and labor-intensive ones, regardless of their forms of ownership. We should steadily carry out reform of the financial system and continue reforms of the taxation, investment and financing systems. We should deepen reform of the system for income distribution and progressively rationalize it.

Rectifying and regulating the order of the market economy is a long-term and demanding task, but we must persevere. We should seek both temporary and permanent solutions to the problems, with emphasis on permanent solutions. We should continue to focus on special areas and key links and crack down on the making and selling of counterfeit and shoddy goods and other illegal and criminal activities in accordance with the law. We should improve the formulation of institutions and laws, strictly enforce the law and gradually bring market management under a system of laws and standards. We should promptly investigate and prosecute major cases of sabotage against the order of the market economy. We should speed up the establishment of a social credibility system. We should pay close attention to ensuring production safety and strengthen supervision and management to effectively protect people's lives and property. We should accelerate the establishment of a new order in the socialist market economy through reform and rectification. We should open up further by integrating our "bringing in" and "going global" strategies. While continuing to do a good job during the grace period after our entry into the WTO, we should conscientiously exercise our rights and fulfill our commitments. We need stability in our policies and measures to promote exports. We should continue our market diversification strategy and expand trade in goods and services on the basis of fine quality. We should cultivate and support superior domestic brands and improve the international competitiveness of Chinese products. We should optimize our import mix and deepen the reform of the foreign trade system. We should continue to actively and effectively use foreign capital, emphasize bringing in advanced technologies, modern managerial expertise and specialists, and support multiple forms of cooperation between Chinese enterprises and transnational corporations. Vigorous efforts should be made to improve our investment environment and standardize procedures for attracting investment. Whatever their forms of ownership, Chinese enterprises that have comparative advantages should be encouraged to operate internationally through joint ventures, wholly-owned ventures or joint operations in order to increase the export of domestically produced goods, particularly capital goods. We should work still harder to promote bilateral, multilateral and regional economic cooperation.

5. Further improve the work of job creation and social security

Governments at all levels should take it as a major duty to improve the employment environment and create more jobs. Adhering to the policy that calls for the worker to find a job on his own, the market to regulate employment and the government to promote job creation, we should do everything possible to expand employment and reemployment. In the course of reform of state-owned enterprises, we should combine the redu

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