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Report on China's economic, social development plan [Full Text]

(Xinhua)
Updated: 2008-03-21 11:23

5) Transfer payments from the state will be increased for underdeveloped areas, and strong support will be provided to boost economic and social development in old revolutionary areas, ethnic minority areas, border areas and economically depressed areas.

6) Formulation of the plan for national priority development zones will be completed, formulation of corresponding provincial-level plans will be accelerated and related policies, laws and regulations and a performance evaluation system will be formulated.

7) A development plan defining an appropriate scale and distribution of cities will be compiled to promote sound progress in urbanization.

8) Development of the marine economy will be accelerated.

6. We will comprehensively deepen structural reforms and improve our open economy.

We will work hard to make further breakthroughs in key areas of reform.

1) We will advance the reform of state-owned enterprises. The conversion of state-owned enterprises to stockholding companies and transfer of their property will be standardized. The management of receipts from and expenditures on the operation of state capital will be tightened and trials of the budget system for the management of state capital will be expanded. Reform of monopoly industries will be accelerated. The problems arising from the separation of the operation of power plants and power grids will be resolved as soon as possible, the secondary businesses of power grid operators will be spun off from their main business, a master plan for reform of the railway system will be formulated, implementation of the plan to reform the postal system will continue and studies will be conducted to work out a model for full-service telecommunications enterprises. We will press ahead with the reform of collectively owned enterprises and develop various forms of collective and cooperative economic operations.

2) Reform of the fiscal and tax systems will be accelerated. We will improve the public finance system to ensure that the financial resources of the central and local governments are in line with their respective responsibilities, focusing on ensuring uniform access to basic public services across the country and accelerating the formation of development priority zones. We will standardize the system of transfer payments and enlarge the size and proportion of general transfer payments. The new Law on Corporate Tax will be fully implemented and the newly unified single tax scheme for both domestic and foreign enterprises will be faithfully instituted. Natural resource taxes will be reformed, and the method of calculating taxes based on resource prices and measures for protecting resources will be implemented. The trial VAT reform will be expanded and a plan for instituting the reform nationwide will be formulated.

3) Innovations will be made in the banking system. Reform of the Agricultural Bank of China, rural financial cooperatives and the China Development Bank will be deepened and requirements for establishing financial institutions in rural areas will be relaxed nationwide. Greater efforts will be made to develop the market system for securities, insurance and futures. The mechanism for determining the exchange rate for the Renminbi will be improved.

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