Ladies and Gentlemen,

First I would like to thank all of you for your concern and support for the inspection of the implementation of the central government’s policy in boosting domestic demand and promoting economic growth. Now, let me brief you about the inspection work.

As we all know, since the second half of last year, the world economy has changed dramatically: the global financial market has plunged into a turmoil, and in particular, the financial crisis triggered by the U.S. subprime crisis has brought severe impact to the world economy. To effectively respond to the negative impact of the global financial crisis on China’s economy, the central government made resolute decision to introduce proactive fiscal policies and moderately easy monetary policies. Ten measures were promulgated to boost domestic demand and economic growth. From the fourth quarter of 2008 to the end of 2010, the plan of four trillion RMB investment has been launched, among which the central government will invest 1.18 trillion RMB. China has allocated 100 billion RMB and 130 billion RMB in the fourth quarter of last year and the first quarter of this year respectively. The CPC Central Committee and the State Council attach great importance to the implementation of these policies and measures. Hu Jintao, Wen Jiabao, He Guoqiang and other central leaders gave clear instructions many times, demanding strict enforcement of discipline as well as stringent supervision and inspection, in order to ensure full implementation of the policies and measures to boost domestic demand and economic growth, as well as of the fundamental policies of the Party and the state. Approved by the central government, a leadership team, which is led by the Central Commission of Discipline Inspection (CCDI) and the Ministry of Supervision (MOS) and composed of members from the National Development and Reform Commission (NDRC), the Ministry of Finance (MOF) and the National Audit Office (NAO), was established on November 20, 2008 to inspect the implementation of the policies to boost domestic demand and economic growth introduced by the central government. He Yong, secretary of the Secretariat of the CPC Central Committee and vice-secretary of the CCDI, is the head of the team, while Ma Wen, vice-secretary of the CCDI and minister of the Ministry of Supervision (MOS), and Liu Jiayi, Auditor General of the NAO are deputy leaders. An office for the leadership team was established at the MOS to perform daily routines. In the past half year, the CCDI and the MOS with relevant departments have mainly done the following work:

1. Central inspection teams were set up to conduct two rounds of inspection of the local implementation of the central government’s policies. Coordinated by the CCDI and the MOS, 24 central inspection teams consisting of 144 officials selected from the CCDI, the MOS, the NDRC, the MOF and the NAO, were set up. Leaders of central inspection teams were selected from ministerial-level officials, for example, leading officials of discipline inspection offices dispatched by the CCDI to central government departments, while members of them were composed of officials from discipline inspection authorities, the NDRC, the MOF and auditing authorities. The 24 inspection teams went to 31 provinces (autonomous regions & municipalities) and the Xinjiang Production and Construction Corps to carry out two rounds of inspection from the end of last November to this January and from the end of this March to the end of this April respectively. The inspection teams got a complete understanding as to how the central government’s policies were implemented there, and urged local governments to comply with the spirit of the central government both in mind and in action and to promptly work out the project plans and budgets. The inspection teams went to cities, counties and project units for on-site inspection, and the second round of inspection alone covered 204 cities, 546 counties and 1,563 project units. The inspection teams called for immediate rectification once problems were discovered. Where policies needed to be improved, suggestions on improvement were made to competent authorities.

2. Discipline inspection offices dispatched by the CCDI and the MOS are called upon to bring their functions into full play and focus on supervising and inspecting the implementation of the central government’s policies at their respective departments and sectors. The dispatched offices have performed their duties, and coordinated with the departments to set up supervision and inspection leading groups and working teams. Related departments have been urged to decompose and issue investment plans and budgets at an early date, and strengthen the supervision of project development and fiscal input; the examination and approval of land use for project construction, environmental assessment, energy conservation and bidding and bid invitation in respect of project construction have been accelerated to ensure the compliance of the projects with the requirements of the scientific outlook on development. The supervision and inspection of the central government’s projects undertaken by specific departments and industries have been strengthened to ensure expeditious, safe and efficient implementation of such projects.

3. Local organs for discipline inspection and supervision are instructed to make strict supervision and inspection on the implementation of the central government’s policies, in order to ensure that such policies are earnestly implemented. Led by the local Party committees and governments, discipline inspection and supervision organs of all provinces (autonomous regions and municipalities) earnestly fulfill their duties as leaders, and work with relevant departments to establish a comprehensive supervision and inspection system at provincial, municipal and county levels. Thus, an extensive supervision network in both vertical and horizontal directions is formed. The local organs for discipline inspection and supervision urge relevant departments, in accordance with the requirement of “One Post, Double Duties”, to not only earnestly perform their work in all aspects for expanding domestic demand and promoting economic growth, but also fully fulfill their duties as supervisors to realize all-round supervision of new investments by the central government throughout the process. Meanwhile, by promoting transparency and establishing an early warning system, local organs for discipline inspection and supervision are actively exploring a long-standing mechanism for supervision and inspection.

As shown by the results of supervision and inspection, all departments in various regions have attached great importance to the implementation of the policies of the central government to boost domestic demand and economic growth. Resolute, immediate actions and effective measures have been taken to implement these policies. Most projects funded by the additional 100 billion RMB investment by the central government in the fourth quarter of last year have entered the stage of implementation, and some projects have been completed. Most of the additional 130 billion RMB investment by the central government in the first quarter of this year has been allocated to the localities, projects are launched successively, and project construction are in smooth progress. This has, in many regions, helped drive economic growth. Generally speaking, the additional central government investment goes to the identified areas and meets the specific requirements. In terms of project arrangements and fund use, no serious violations of laws and discipline have been found. Mishandlings are immediately rectified at the initial stage on a case-by-case basis to prevent serious breaches of laws and regulations. Severe punishment has been applied to some serious cases such as the misappropriation of the central government’s investment and disordered financial management. Besides correction, people who were directly responsible for such violations and leaders involved have been held accountable. It is proved by practice that the central government’s decision to carry out supervision and inspection is absolutely correct, timely and effective. The decision, which is of great significance in guaranteeing the smooth implementation of the central government’s policies and decrees, has been praised by both the officials and the masses. We will continue to work with related departments to earnestly carry out supervision and inspection so as to ensure practical implementation of the central government’s policies and to promote steady and fairly fast economic and social development.

Thank you!