6. Improve and upgrade the industrial structure

1) Adjusting and improving the distribution of key industries. We will issue guidelines on adjusting the distribution of and relocating key industries, improve the industrial distribution in coastal, border and inland areas, and relocate high-polluting enterprises in cities to minimize their environmental impact. We will promote clustering and intensive development of industries and advance the transformation and upgrading of industrial parks and clusters.

2) Working hard to address the serious problem of overcapacity. We will firmly prohibit the addition of production capacity that breaches regulations, and make optimal use of existing production capacity by various means. We will step up the establishment and improvement of a permanent, market-based mechanism to address the serious problem of overcapacity. We will raise and strictly implement industry entry standards concerning energy consumption, environmental protection and workplace safety and abolish preferential policies to phase out outdated production capacity more quickly. We will implement a tiered electricity pricing policy for industries, such as those that produce electrolytic aluminum and cement.

3) Fully implementing the strategy of innovation-driven development. We project R&D spending to account for 2.17% of GDP in 2014. We will accelerate reform of the science and technology management system. We will increase government spending on basic research and research on cutting-edge technologies, technologies for the public good and key standard technologies. We will move faster to carry out major national scientific and technological projects and apply their advances to production. We will improve the policy that encourages national innovation demonstration zones to play their path-finding role. We will apply wide-reaching policies to encourage business innovation and start to create 100 innovative businesses. We will build up key scientific and technological infrastructure and advance knowledge innovation projects, and build a number of national engineering centers and laboratories for next-generation information technology, environmental protection and other key industries. We will vigorously develop strategic emerging industries. We will set forth policies and plans supporting development of cloud computing and civil space infrastructure, organize the implementation of innovation development and application demonstration projects in key industries, and promote industrial application of the Beidou Navigation Satellite System and other technologies developed by China. We will fully implement the venture capital plan for emerging industries, and integrate resources to set up pilot funds for investment in emerging industries in China. We will accelerate the growth of integrated circuits, the next-generation Internet, the mobile Internet, and the Internet of Things; strengthen the country's infrastructure for broadband and Internet security; build smart cities; and fully implement information technology projects beneficial to the people.

4) Strengthening basic industries. We will build railways, especially in the central and western regions, and guide urban rail transport to develop in an orderly way. We will move faster to extend incomplete national expressways, complete bottleneck sections of national highways, and build rural roads in contiguous areas with acute difficulties. We will speed up the building of high-grade waterways along the Yangtze and other rivers, upgrade the distribution of coastal ports, and promote the orderly development of civil aviation infrastructure. We will reasonably control total energy consumption, improve the energy mix, and encourage the development of wind and solar power, and start construction of a number of hydropower and nuclear power projects. We will strengthen exploration, exploitation and utilization of natural gas, coal seam gas and shale gas.

5) Accelerating the growth of the service industry. We will issue guidelines on speeding up the development of producer services to promote the adjustment and upgrading of the industrial structure. We will continue to carry out national trials for comprehensively reforming the service trade and establish demonstration zones for developing service businesses. We will vigorously develop key industries such as R&D, modern logistics, financial leasing, energy conservation and environmental protection services, and inspection and testing services. We will put forward a mid-to-long-term development plan for the logistics industry, and build demonstration logistics parks. The value-added of the service sector is expected to grow by 8.3% in 2014.

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