Taking advantage of the rapid development of the economy and significant improvement of public finance, we worked hard to resolve some longstanding problems. We sold off nonperforming assets of state-owned commercial banks, made alternate arrangements for nonperforming loans and long-term non-paying accounts of rural credit cooperatives, eased the long-term debts of SOEs, gradually eased policy-related losses of state-owned grain enterprises, cleared up overdue tax rebates for exports, and improved the policy for paying compensation for requisition of land for large and medium-sized reservoirs and assisting people displaced by reservoir projects. Resolution of these problems played an important role in promoting economic and social development.
We made major progress over the past five years in enhancing democracy and the legal system, building national defense and the military, doing our work related to Hong Kong, Macao and Taiwan, and conducting diplomacy.
We made steady progress in improving socialist democracy and the socialist legal system. Governments at all levels conscientiously accepted the oversight of the people's congress and its standing committee at the corresponding level; voluntarily accepted the democratic oversight by CPPCC committees; carefully listened to the views of the democratic parties, federations of industry and commerce, persons without party affiliation and people's organizations; solicited suggestions of experts, scholars and the general public in a variety of forms; and accepted the oversight of the media and all sectors of society. Governments at all levels made public announcements and held public hearings before making major decisions. We stepped up efforts to develop autonomy in urban community and village administrative bodies and further improved the democratic system at the local level. During the past five years the State Council submitted 39 bills to the Standing Committee of the National People's Congress and formulated or revised 137 administrative regulations. We explored ways to set up mechanisms and systems for orderly public participation in government legislation and published 15 draft laws and drafts of administrative regulations to solicit comments from the public. We carried out a thorough review of current administrative rules and regulations. We adhered to the Law on Regional Ethnic Autonomy and carried forward the programs to promote unity and progress among ethnic groups. The policy on freedom of religious belief was comprehensively implemented, and the administration of religious affairs was put on a more solid legal footing and further standardized. We comprehensively implemented the policy on matters related to overseas Chinese nationals and protected the legitimate rights and interests of overseas Chinese nationals, returned overseas Chinese nationals and their relatives.
We stepped up all efforts to modernize the military. We vigorously pressed ahead with the revolution in military affairs with Chinese characteristics. We adjusted and reformed the military's structure and staffing and its related policies and systems and smoothly cut its size by 200,000 personnel. We made historic achievements in strengthening national defense and the military. The People's Liberation Army and the People's Armed Police Force made major contributions to safeguarding China's sovereignty, security and territorial integrity and to promoting social harmony and stability.
We adhered to the principle of “one country, two systems” and acted in strict accordance with the Basic Law of the Hong Kong Special Administrative Region and the Basic Law of the Macao Special Administrative Region. We implemented the Closer Economic Partnership Arrangement between the mainland and the regions of Hong Kong and Macao. Both regions remained thriving and stable.
We resolutely opposed and foiled secessionist activities aimed at Taiwan independence, thereby protecting China's sovereignty and territorial integrity and safeguarding peace in the Taiwan Straits. We carried out a number of measures to make it easier for people to visit between the two sides and for economic, scientific, educational, cultural and sports exchanges to take place in order to promote the peaceful and steady development of cross-Straits relations.
We actively promoted exchange and cooperation with other countries, made major progress in conducting diplomacy on all fronts, and resolutely safeguarded and developed China's interests. China stepped up dialogue with the major countries and increased trust and expanded cooperation with them. China-US relations developed steadily, the China-Russia partnership of strategic coordination reached a new height, China-Europe cooperation in all areas went from strength to strength, and China-Japan relations improved. Good-neighborly relations with surrounding countries were further strengthened, further achievements were made in regional cooperation, and China's solidarity and cooperation with other developing countries entered a new stage. We successfully carried out a series of major multilateral diplomatic activities. We appropriately responded to new challenges in the international arena, actively and responsibly participated in efforts to resolve global issues, and played an important and constructive role in the resolution of issues concerning international and regional hotspots.
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