The First Session of the 10th National People's Congress (NPC),
China's top legislature, called its second plenary meeting in the
Great Hall of the People in Beijing Thursday morning. Zeng Peiyan,
minister of the State Development Planning Commission, delivered
the Report on the Implementation of the 2002 Plan for National
Economic and Social Development and on the 2003 Draft Plan for
National Economic and Social Development at the session. The
following are the excerpts from his report.
Achievements of the Past Five Years
During the past five years, the Chinese economy has experienced
sustained and rapid growth. All social undertakings have developed
rapidly. The overall national strength has reached a new height.
The socialist market economy has been basically established. A
pattern of multidirectional opening to the outside world has taken
shape. China's international influence has grown notably, and our
national cohesion has greatly increased. Our country has enjoyed
social stability, solidarity, good government and a united people.
These five years constituted one of the best periods of development
of in China's history, during which a solid foundation has been
laid for our long-term development despite a host of unfavorable
factors in the international economic environment and numerous
difficulties in the domestic economy. We clearly realize that all
this is attributable to the scientific decisions and correct
leadership of the central authorities and to the timely guidance
and intensified oversight of the National People's Congress and its
Standing Committee. Credit also goes to localities and departments
for their concerted efforts and earnest work, and to the people of
all out ethnic groups who have worked hard with one heart and one
mind.
Alert on Conflicts and Problems
"We are also aware that there are still many conflicts and problems
in our economic and social activities and that some of these are
very serious," said the top economic planner.
The problem of weak effective demand is coupled with an irrational
supply structure. Because the main factors affecting rural incomes
have yet to be eliminated, rural income growth has been slow, the
minister stressed.
Some urban residents have very low incomes and are confronted with
many difficulties in their lives. All this hinders the expansion of
the consumer market. The investment potential of the collective and
private sectors and of individually run businesses has yet to be
fully tapped, he said.
Employment and reemployment prospects remain grim. A large number
of urban residents need to find a job or get reemployed, and there
is a huge surplus of rural labor that needs to be diverted to work
in urban areas. This makes it very difficult to create enough new
job opportunities to keep up with the demand for employment,
according to the minister.
The reform of state-owned enterprises is a monumental task, with
deep-seated problems still not totally solved. "We still have a lot
to do to make development through fair competition possible for
businesses under different forms of ownership," he said.
The order of the market economy remains fairly chaotic. "We still
have a long way to go to establish a social credibility system," he
said, adding that major industrial accidents occur frequently. The
State Council is paying close attention to these problems and
working hard to adopt measures to solve them, he stressed.
7 Percent Economic Growth Rate for 2003
Zeng proposed a 7 percent growth for the country's gross domestic
product in 2003.
He
also listed other macroeconomic regulatory targets for 2003,which
are as follows:
- Over 8 million new jobs for urban residents, and registered
urban unemployment rate confined to 4.5%;
- Rise in the consumer price index of no more than 1%; and
- Increase in the total import and export volume of 7%.
The year 2003 is important for carrying out the guiding principles
set forth at the 16th National Congress of the Party and for making
fresh progress in building a well-off society in an all-round way,
he said.
A
comprehensive analysis of the domestic and international economic
environments shows that "we enjoy favorable conditions for
accelerating development but also face new challenges."
Conditions might change and new problems could arise in the Chinese
economy, and there are many uncertainties in the world economy as
well. Only by enhancing our awareness of potential danger,
preparing for adversity, adequately assessing difficulties and
problems, and fully considering policy measures can China avert
peril and keep the upper hand, according to the minister.
Unemployment Rate Under 4.5 Percent
China promised to spare no effort to reach the projected targets
for creating over 8 million new jobs for urban residents, in a bid
to confine its registered urban unemployment rate to 4.5 percent in
2003.
The registered urban unemployment rate for 2002 was 4 percent,
according to official statistics.
Efforts to bring the unemployment rate under control and increase
over 8 million jobs should be incorporated into the plans of
governments at all levels for economic and social development,
according to his report.
"Development of the service sector will be the main source of new
employment and reemployment. In particular, we must make full use
of the important roles of individually and privately run businesses
and of small and medium-sized enterprises in increasing
employment," the minister said.
Great efforts should be made to create jobs in urban communities.
The labor market needs to be standardized and further developed.
Unemployed people are encouraged and supported to seek jobs on
their own and to start their own businesses.
The social security system will be improved. "We will further
consolidate the system of guaranteeing that the basic living
allowances for workers laid off from state-owned enterprises and
the basic pensions for retirees are paid on time and in full," the
economic planner stressed.
He
added that the implementation of the three programs for ensuring
basic living allowances for workers laid off from state-owned
enterprises, for improving unemployment insurance and for
guaranteeing a minimum subsistence level for needy urban residents
should be well coordinated.
Harsh Measures on Market Irregularities Promised
China will continue to implement the market-oriented reform and
take harsh measures to rectify and standardize the order of the
market economy in 2003.
"We will deal severely with illegal and criminal activities such as
manufacturing and marketing fake or shoddy goods, smuggling,
distribution of smuggled goods, and pyramid schemes," Zeng
said.
Special campaigns against wrongdoings in the market will continue,
and the central government will come down hard on major economic
crimes and irregularities that seriously endanger the order of the
market economy.
"We will promptly establish systems for enterprise and individual
credit information, so as to develop an honest, credible and lawful
market environment as soon as possible. We will strengthen
supervision and management of production safety to prevent serious
accidents," the minister said.
In
addition, the government will improve the mechanism whereby prices
are determined mainly by market forces under government
macroeconomic regulation. Such systems as holding public hearings
on government price-related decisions, expert reviews, group
reviews and supervision and examination of prices for important
goods and services, will be improved, he said.
"We will speed up the reform of the investment and financing
systems, give enterprises the right to make independent investment
decisions and improve macro control of the country's fixed-asset
investment," Zeng said.
Income Growth for Urban, Rural Residents Expected Lower in
2003
The income growth rates for Chinese urban and rural residents will
drop in 2003.
In
2003, the per capita disposable income of urban residents is
expected to increase by 6 percent. The figure for 2002 is 13.4
percent. While the per capita net income of rural residents is
expected to increase by 4 percent in 2003, compared with 4.8
percent last year.
The per capita disposable income of urban residents is 7,703 yuan
in 2002, while that of rural residents 2,476 yuan, according to
official statistics.
However, the minister said that a system for assisting low-income
people through a variety of means will be established and perfected
to help exceedingly indigent urban families solve their problems in
housing, children's schooling, medical treatment and heating.
"We will deepen the reform of the wealth distribution system to
increase personal incomes, particularly for the low-income
population," the minister said.
(China.org.cn March 6, 2003)