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III. Working Energetically to Promote Strategic Restructuringof the Economy

Acceleration of the strategic restructuring of the economy is urgently needed to meet the current need to boost domestic demand and stimulate economic growth. This economic restructuring is also essential to adapt to changes in China's economic development as it moves from one stage to another and to cope with increasingly keen international competition. This restructuring is not only aimed at solving current pressing problems; more importantly, it is aimed at long-term development, improving the overall quality of the national economy and bringing the economy to a higher level of development. Adjustment and optimization of the economic structure should be market-oriented, rely on scientific and technological advances, and adopt new systems and methods compatible with the development of a socialist market economy. Our work this year will be focused on the following areas.

We should further stabilize and strengthen agriculture as the foundation of the economy. Because of good harvests in the past several years running and the relative surplus of farm produce, it is particularly important that we guard against the tendency to neglect agricultural development. China has entered a new stage of agricultural development and strategic adjustment of agricultural production is an important task at this stage. Farmers should be actively encouraged to transform agricultural production by developing livestock breeding, forestry, aquaculture and production of highly processed grain and other agricultural products. The varieties of crops cultivated and breeds of livestock raised should be improved and great efforts should be made to spread the use of applied agricultural scientific and technological achievements so that high-quality products are developed to meet the demand of the market. We should adjust the patterns of agricultural production in different regions, taking into account their relative abundance of resources and other local relative advantages. We should develop high-efficiency, ecological and export-oriented agriculture where conditions permit. In restructuring agriculture, we should fully respect the farmer's right to independence in production and operation, avoiding coercion and commands. We should develop specialized cooperative economic organizations and industrial operations in which farmers work with companies, linking household farm operations with large markets and bringing about agricultural restructuring. We should provide guidance and support for town and township enterprises in their efforts to restructure to meet the demand of the market and improve their managerial and technical levels. Plans should be worked out and effective policy measures should be taken to accelerate the development of small towns. Arable land should be effectively protected. We should step up agricultural infrastructure development, focusing on water conservancy projects to improve production and living conditions in rural areas.We need to intensify industrial restructuring efforts. To improve the industrial structure, product quality and economic performance, and become more competitive internationally, we should adopt the following measures. First, following the laws governing the market economy, we should employ a variety of means to limit the production of non-marketable products. More small and technologically backward plants and mines that produce shoddy products, waste resources and cause serious pollution should be closed down. More outmoded equipment, technology and production processes should be abandoned and the surplus production capacity in certain industries should be reduced. Second, we should take effective measures to speed up technological upgrading in enterprises, giving preferences to old industrial bases. We should continue to put quality above everything else, introduce advanced standards and restructure and optimize the pattern of production. Efforts to develop new technology, production processes and products that are in great demand on the market need to be intensified. Production of more readily marketable products, especially famous, quality products, should be encouraged. Third, vigorous efforts should be made to develop high technology and emerging industries, particularly in the field of information, bioengineering, new energy sources, new materials and environmental protection. In addition, we should develop more labor-intensive industries. Fourth, industrial reorganization efforts should be continued to help key industries improve their economy of scale and optimize their distribution. We should work hard to upgrade the technology used in the major equipment manufacturing and basic materials industries. The relevant departments under the State Council should expeditiously work out plans and adopt measures to stimulate industrial restructuring and technological upgrading.

Developing tertiary industry is of great importance to our efforts to optimize the economic structure, create jobs and increase consumption. While continuing to develop transport, commerce and trade, we need to make great efforts to develop information, banking and financial services, tourism, community services and intermediary services to gradually raise the proportion of tertiary industry in the national economy.

The large-scale development strategy to speed up development of the central and western regions of the country is a major policy decision made by the CPC Central Committee for the new century in accordance with Deng Xiaoping's strategy for China's modernization drive, which encompasses the development of both the coastal areas and the interior. This is crucial to our efforts to boost domestic demand, promote sustained national economic growth and bring about coordinated development of regional economies for eventual common prosperity as well as to strengthen national unity, safeguard social stability and consolidate border defense. Implementing this great policy decision is a long-term systems engineering project. We need not only a sense of urgency, but also a comprehensive plan focusing on key areas. We must carry out the plan step by step and refrain from rushing headlong into action.

For the present and some time to come, we have to focus on the following objectives. First, we need to accelerate infrastructure development. While mainly concentrating on highways, efforts should also be made to build more railways, airports and gas trunk pipelines. We need to intensify the development of power grids and communications, radio and television facilities as well as infrastructure development in large and medium-sized cities. It is particularly important that close attention is paid to the rational exploitation of water resources and to water conservation. We should lose no time in conducting feasibility studies for certain key projects and make preparations to launch them as soon as possible. Second, we need to conserve and improve the ecological environment. Great efforts should be made to plant trees and grass, control soil erosion and prevent and control desertification. Greater efforts need to be made to complete the projects to protect the natural forests along the upper reaches of the Yangtze River and the upper and middle reaches of the Yellow River. Terraced fields on steep slopes should be re

（责任编辑：中大编辑）

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