ENERGY, ENVIRONMENT AND LAND

*The country fell short of the targets set at the beginning of 2006 for cutting energy consumption per unit of GDP by about 4 percent and total discharge of major pollutants by 2 percent.

*This year China will take strong measures to save energy, lower energy consumption, protect the environment and use land intensively.

FOREIGN TRADE

*China must optimize the mix of imports and exports, change the pattern of its foreign trade growth and strive to reduce its excessively large trade surplus.

*Promoting economic development and increasing employment through the growth of foreign trade is a principle China must follow for a long time to come.

RMB EXCHANGE RATE AND FOREIGN EXCHANGE RESERVES

*China will further improve the mechanism for setting the RMB exchange rate, strengthen and improve foreign exchange administration, and actively explore and develop channels and means for appropriately using state foreign exchange reserves.

EDUCATION

*Education is the bedrock of China's development, and fairness in education is an important form of social fairness. China needs to make education a strategic priority and accelerate the development of all types of education at all levels.

*A system of national scholarship and tuition assistance will go into operation this school year for regular undergraduate institutions, vocational colleges and secondary vocational schools. The government will further implement the state student loan policy to enable children from families with financial difficulties to attend college or receive vocational education.

*China will institute free education for students majoring in education in teacher colleges directly under the Ministry of Education and set up a corresponding system.

1

2

3