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Report on the Work of the Government (2002)

(Delivered at the Fifth Session of the Ninth National People's Congress on March 5, 2002)

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,

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

First, I would like to report on our work in 2001.

In the face of complex and volatile international situation, under the leadership of the Communist Party of China, the people of all ethnic groups surmounted difficulties, strode forward, and made significant new achievements in reform, opening up and the socialist modernization drive during the first year of the new century.

The national economy maintained good momentum of development.Despite a noticeable slowdown in the world economy, China's economy grew fairly rapidly. China's GDP in 2001 reached 9.5933 trillion yuan, an increase of 7.3% over the previous year due to our continued stimulation of domestic demand and our unswerving implementation of a proactive fiscal policy and a stable monetary policy. Economic restructuring made headway. The structure of agricultural production was improved, and the production of high-quality and special-purpose crops increased. Information technology, biotechnology and other high-tech and new industries developed rapidly. Considerable progress was made in upgrading traditional industries and in eliminating outmoded production capacity. Notable achievements were made in infrastructure development, and a number of key projects were completed - highways, railways, projects to reinforce the main dikes along major rivers, water control projects, and projects to upgrade rural power grids. The program for developing the western region was initiated successfully, and major projects including the Qinghai-Tibet Railway and the diversion of electricity from the western to the eastern regions were launched in succession. The quality of economic growth and the performance of the national economy improved. Total profits of large state-owned industrial enterprises and large nonstate-owned industrial enterprises reached 465.7 billion yuan for the year, an increase of 8.1% over the previous year. Tax revenue increased by a large margin, and national revenue reached 1.6371 trillion yuan, increasing by 240 billion yuan in calculated terms. Financial operations were stable. The general price level rose by 0.7%. The total volume of imports and exports exceeded US$500 billion, with exports accounting for US$266.2 billion, a rise of 6.8%. Foreign direct investment totaled US$46.8 billion, up 14.9%. We enjoyed a favorable balance of international payment. Our national foreign exchange reserves reached US$212.2 billion at the end of 2001, US$46.6 billion more than at the end of the previous year. The exchange rates for the Renminbi remained stable. The national economy maintained a sustained, rapid and sound development.

Economic restructuring was further deepened.Reform of state-owned enterprises continued. The establishment of a modern corporate system was accelerated. Boards of supervisors appointed by the state in key enterprises played an increasingly important role. Good progress was made in restructuring and reorganizing enterprises. A number of mines having exhausted their deposits and insolvent enterprises with little hope of recovery declared bankruptcy and closed. Achievements were made in the reform of the grain and cotton distribution systems. Pilot projects to improve the social security system in urban areas and to replace administrative charges with taxes in rural areas progressed smoothly. Reform of the basic medical insurance system for urban employees, the medical and public health systems, and the system for producing and distributing medicines progressed steadily. Administrative procedures for examination and approval were rectified and reduced. We achieved initial success in overhauling and regulating market order. We dealt powerful blows to criminals engaging in illegal economic activities by investigating and prosecuting over 1.2 million cases of producing and marketing fake and shoddy goods.

Science, technology, education and other social undertakings developed in an all-round way.Work was begun to implement projects under the March 1986 High-Tech Program for the Tenth Five-Year Plan period, the program for tackling key problems in science and technology and the program for basic research in key areas. Fresh efforts were directed to the development of a state scientific and technological innovation system. A number of major state projects for applying advances of high and new technologies in production were launched. Reform of the system for science and technology was deepened. Basic and vocational education were further strengthened. Efforts to improve quality-oriented education were promoted in a comprehensive manner. Schools of higher learning enrolled 2.68 million students, 480,000 more than in 2000. Smooth progress was made in the reform of the system for managing colleges and universities and in transferring their social services to the market economy. Protection of resources, environmental protection and ecological conservation were markedly strengthened. Good results were achieved in projects for reforesting formerly cultivated land and protecting natural forests. Pollution control in key river valleys and regions was strengthened, and the environmental quality improved in some cities. Our work to promote socialist spiritual civilization and improve democracy and the legal system proceeded. Fresh achievements were made in social sciences, art, literature, the press and publishing, radio, film and television, medicine and public health, family planning and sports. We saw improvement in communities in urban areas and in the lower-level governments in rural areas. Study activities concerning "The Three Represents" principle developed in depth in the countryside. Work with regard to ethnic groups and religions was strengthened. Efforts were intensified to build a clean and honest government and fight corruption, yielding notable results. Initial results were achieved in the nationwide crackdown on crime, and as a result all facets of public security improved. Some Mafia-like gangs were crushed, and many who had committed grave crimes were punished in accordance with the law. New advances were made in modernizing national defense and the army.

Living standards of urban and rural residents continued to improve.The per capita disposable income increased by 8.5% in real terms for urban residents. Both the central and local governments greatly increased their expenditures on social security. Subsistence allowances for laid-off workers from state-owned enterprises and basic pensions for retirees were by and large paid in full and on time. The number of urban residents covered by the subsistence allowance system increased from over four million at the beginning

（责任编辑：中大编辑）

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