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7. Firmly advancing reform and further expanding opening up

This year we will continue to deepen reform in key areas and crucial links and work hard to achieve new breakthroughs.

We will continue to make strategic adjustments in the distribution and structure of the state-owned sector. We will speed up the reform to introduce the corporate system in large state-owned enterprises, especially parent companies of enterprises under the central government, and we will diversify their ownership and improve their corporate governance. We will accelerate the reform of monopoly industries; promote reforms in public utilities; effectively expand market access; and actively introduce competitive mechanisms. We will create a market environment for fair competition among economic entities under diverse forms of ownership and facilitate stronger growth of the non-public sector.

We will deepen the reform of prices for resource products and environmental protection charges. This is an important measure for conserving energy and resources, protecting the environment, and achieving sustainable development. We will expand the trial of direct transactions between major electricity consumers and producers; introduce tiered prices for household consumption of electricity and water; and improve the mechanism of price setting and cost sharing for electricity generated from renewable energy. We will improve the pricing policy for water used in apiculture. We will reform the system of sewage and garbage treatment charges. We will expand the trial of pollution rights trading. While pushing forward these reforms, we will balance the interests of different parties and ensure that the basic living conditions of people with low incomes are not adversely affected.

We will continue to reform the ?scal and taxation systems. We will strengthen the public ?nance system. We will improve the system of transfer payments, increase general transfer payments, and enhance the ability of local governments to provide basic public services. We will strengthen the ?scal management system at and below the provincial level, set up a mechanism to ensure basic funding for county governments, and carry forward reforms that place county ?nances directly under the management of provincial governments. We will draw up budgets for all funds controlled by central and local governments, prepare budgets for social security funds on a trial basis, and improve the budget system for the use of state capital. We will continue to make progress in VAT reform. We will carry forward the reform of resource taxes. We will extend the urban construction and maintenance tax and education surcharges to foreign enterprises and nationals.

Improving the ?nancial system is an important measure for countering the impact of the global ?nancial crisis. We will continue to improve corporate governance in ?nancial institutions in which the state holds a controlling stake, improve their business management, and raise their ability to manage and control risks. We will continue the reform of policy-based ?nancial institutions. We will steadily promote the transformation of asset management companies. We will deepen the reform of rural credit cooperatives. We will promote orderly development of small and medium-sized ?nancial institutions. We will vigorously develop the ?nancial market and encourage ?nancial innovation. We will promote pilot projects for the use of the renminbi in cross-border trade, and gradually develop overseas ?nancial activities using the renminbi. We will continue building the deposit insurance system. We will speed up the development of agricultural insurance.

We will actively yet prudently push forward the reform of institutions on the basis of scienti?c classi?cations and in accordance with the requirements that government and business functions be spun off from institutions, and that supervision be separated from day-to-day operations.

The reforms we are undertaking, including economic and political restructuring and reforms in other areas, are comprehensive. Without political restructuring, it would not be possible for economic restructuring and the modernization drive to succeed. We will develop socialist democracy, and effectively safeguard the democratic rights of the people as masters of the country, particularly their rights to vote and to stay informed about, participate and in, express views on, and oversee government affairs. We will further expand primary-level democracy, strengthen primary-level self-governing bodies, and improve the system of democratic administration at the primary level so that the people can better participate in the management of local public affairs. We will uphold the rule of law and continue to run the government in accordance with the law. We will further improve the legal system, particularly laws concerning the standardization and oversight of the exercise of power. We will innovatively revise the methods and mechanisms of the government's legislative Work and expand public participation in it.

We will fully adapt to changes in the international situation, meet the needs of domestic development, and expand?the breadth and depth of opening up.

We will steadily develop foreign trade. This year the main focus is on opening new markets and adjusting the foreign trade. We will adhere to the strategy of diversifying markets and the strategy of competing on quality; implement and improve policies and measures on export tax rebates, export credit, and export credit insurance; and continue to improve services related to customs, quality inspection, and foreign exchange. We will strengthen traditional markets and vigorously develop new markets. We will improve the export mix; stabilize exports of labor-intensive products; increase exports of electromechanical products as well as new-and high-technology products; energetically develop trade in services and service outsourcing; strive to cultivate exports of brand-name products and develop marketing networks and continue to strictly limit exports of resource products and products whose production consumes large quantities of energy and resources or is highly polluting. We will vigorously promote the transformation and upgrading of the processing trade. We will promote the balanced development of imports and exports; focus on increasing imports of advanced technology and equipment, key spare parts, and goods in short supply domestically; keep all policies and measures for promoting and facilitating imports stable; and urge developed countries to ease export restrictions on new-and high-technology products to China.

We will promote coordination between using other countries' investment in China and making Chinese investment overseas. We will optimize the utilization of foreign investment; encourage more foreign investment in high-end manufacturing, new-and high-technology industries, modern service industries, and the new energy, energy-conservation and environmental protection industries; encourage multinational corporations to set up regional headquarters and other functional agencies in China; and encourage Chinese and foreign enterprises to strengthen cooperation in MD. We will encourage the use of foreign investment for restructuring, upgrading, merging, and reorganizing Chinese companies, and quickly establish

（责任编辑：中大编辑）

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