I II III IV V VI VII VIII IX X
I. Review of Domestic Work
in 2001
First, I would like to report on our work in
2001.In the face of complex and volatile international situation, under the leadership of
the Communist Party of China, the people of all ethnic groups surmounted difficulties,
strode forward, and made significant new achievements in reform, opening up and the
socialist modernization drive during the first year of the new century.
The national economy maintained good momentum of
development. Despite a noticeable slowdown in the world economy, China's
economy grew fairly rapidly. China's GDP in
2001 reached 9.5933 trillion yuan, an increase of 7.3% over the previous year due to our
continued stimulation of domestic demand and our unswerving implementation of a proactive
fiscal policy and a stable monetary policy. Economic restructuring made headway. The
structure of agricultural production was improved, and the production of high-quality and
special-purpose crops increased. Information technology, biotechnology and other high-tech
and new industries developed rapidly. Considerable progress was made in upgrading
traditional industries and in eliminating outmoded production capacity. Notable
achievements were made in infrastructure development, and a number of key projects were
completed ?highways, railways, projects to reinforce the main dikes along major rivers,
water control projects, and projects to upgrade rural power grids. The program for
developing the western region was initiated successfully, and major projects including the
Qinghai-Tibet Railway and the diversion of electricity from the western to the eastern
regions were launched in succession. The quality of economic growth and the performance of
the national economy improved. Total profits of large state-owned industrial enterprises
and large nonstate-owned industrial enterprises reached 465.7 billion yuan for the year,
an increase of 8.1% over the previous year. Tax revenue increased by a large margin, and
national revenue reached 1.6371 trillion yuan, increasing by 240 billion yuan in
calculated terms. Financial operations were stable. The general price level rose by 0.7%.
The total volume of imports and exports exceeded US$500 billion, with exports accounting
for US$266.2 billion, a rise of 6.8%. Foreign direct investment totaled US$46.8 billion,
up 14.9%. We enjoyed a favorable balance of international payment. Our national foreign
exchange reserves reached US$212.2 billion at the end of 2001, US$46.6 billion more than
at the end of the previous year. The exchange rates for the Renminbi remained stable. The
national economy maintained a sustained, rapid and sound development.
Economic restructuring was further deepened. Reform of
state-owned enterprises continued. The establishment of a modern corporate
system was accelerated. Boards of supervisors appointed by the state in key enterprises
played an increasingly important role. Good progress was made in restructuring and
reorganizing enterprises. A number of mines having exhausted their deposits and insolvent
enterprises with little hope of recovery declared bankruptcy and closed. Achievements were
made in the reform of the grain and cotton distribution systems. Pilot projects to improve
the social security system in urban areas and to replace administrative charges with taxes
in rural areas progressed smoothly. Reform of the basic medical insurance system for urban
employees, the medical and public health systems, and the system for producing and
distributing medicines progressed steadily. Administrative procedures for examination and
approval were rectified and reduced. We achieved initial success in overhauling and
regulating market order. We dealt powerful blows to criminals engaging in illegal economic
activities by investigating and prosecuting over 1.2 million cases of producing and
marketing fake and shoddy goods.
Science, technology, education and other social
undertakings developed in an all-round way. Work was begun to implement
projects under the March 1986 High-Tech Program for the Tenth Five-Year Plan period, the
program for tackling key problems in science and technology and the program for basic
research in key areas. Fresh efforts were directed to the development of a state
scientific and technological innovation system. A number of major state projects for
applying advances of high and new technologies in production were launched. Reform of the
system for science and technology was deepened. Basic and vocational education were
further strengthened. Efforts to improve quality-oriented education were promoted in a
comprehensive manner. Schools of higher learning enrolled 2.68 million students, 480,000
more than in 2000. Smooth progress was made in the reform of the system for managing
colleges and universities and in transferring their social services to the market economy.
Protection of resources, environmental protection and ecological conservation were
markedly strengthened. Good results were achieved in projects for reforesting formerly
cultivated land and protecting natural forests. Pollution control in key river valleys and
regions was strengthened, and the environmental quality improved in some cities. Our work
to promote socialist spiritual civilization and improve democracy and the legal system
proceeded. Fresh achievements were made in social sciences, art, literature, the press and
publishing, radio, film and television, medicine and public health, family planning and
sports. We saw improvement in communities in urban areas and in the lower-level
governments in rural areas. Study activities concerning "Three Represents"
principle developed in depth in the countryside. Work with regard to ethnic groups,
religions, and overseas Chinese was strengthened. Efforts were intensified to build a
clean and honest government and fight corruption, yielding notable results. Initial
results were achieved in the nationwide crackdown on crime, and as a result all facets of
public security improved. Some Mafia-like gangs were crushed, and many who had committed
grave crimes were punished in accordance with the law. New advances were made in
modernizing national defense and the army.
Living standards of urban and rural residents continued to
improve. The per capita disposable income increased by 8.5% in real terms
for urban residents. Both the central and local governments greatly increased their
expenditures on social security. Subsistence allowances for laid-off workers from
state-owned enterprises and basic pensions for retirees were by and large paid in full and
on time. The number of urban residents covered by the subsistence allowance system
increased from over four million at the beginning of the year to more than 11.2 million at
the end of the year. The government raised the salaries of employees of administrative
departments and institutions and the old-age pensions for their retirees, and the basic
old-age pensions for retirees from enterprises were also raised. To cover these items, an
extra 62.1 billion yuan was allocated from the state revenue alone. The per capita net
income for farmers increased by 4.2% in real terms. The financial burden on farmers was
reduced due to the upgrading of rural power grids and the readjustment of prices for
electricity consumed in the countryside. Business in both urban and rural markets was
brisk, and conditions of housing and transportation for residents were further improved.
Last year, we celebrated the 80th anniversary of the founding of the
Communist Party of China. In an important speech on July 1, Jiang Zemin, General Secretary
of the CPC Central Committee, elaborated on the scientific connotation of "the Three
Represents" principle and its great importance. The Sixth Plenary Session of the
Fifteenth Party Central Committee adopted an important decision on strengthening and
improving the Party's style of work. Beijing won the right to host the 2008 Olympic Games.
China successfully played host to the Ninth APEC Economic Leaders Meeting and other
important international meetings. Due to consistent efforts made over a long period of
time, China became a full member of the World Trade Organization (the WTO). These events
have exerted a great and far-reaching influence on the development of the cause undertaken
by our Party and state, and they have tremendously inspired the patriotic enthusiasm of
the Chinese people of all ethnic groups, enhanced their national pride and increased the
cohesiveness of the Chinese nation.
The remarkable achievements in China's economic
and social development in 2001 were hard won. They are attributable to the correct policy
decisions and timely measures taken by the CPC Central Committee with Comrade Jiang Zemin
at the core on the basis of a firm grasp of the overall situation and sound assessment of
its changes, and also to the determined and concerted efforts of our people of all ethnic
groups. On behalf of the State Council, I would like to pay our highest respects to
workers, farmers, intellectuals and cadres; to officers and men of the People's Liberation
Army, the armed police and the public security police; as well as to people from all walks
of life. You have all been working hard in your own fields of endeavor. I also wish to
express our sincere thanks to our compatriots in the Hong Kong Special Administrative
Region, Macao Special Administrative Region, Taiwan, as well as overseas Chinese who have
shown their concern and support for the development and reunification of the country.
However, we are clearly aware that there are still many problems
demanding prompt solution in our economic and social life. The principal problems are as
follows: farmers?incomes are growing slowly; incomes for farmers in some major grain
producing areas and disaster-afflicted areas are decreasing; in some places, wage arrears
are now a serious problem; some enterprises are still having difficulties in production
and the life of some workers remains hard; and employment pressures are increasing.
Industrial structure remains irrational and deep-seated problems in our economic system
have not been solved. Problems of the ecological environment are outstanding. Local
protectionism remains a problem despite repeated orders to ban it, and the order of the
market economy is yet to be fully rectified. In some localities and government departments
and among some leading cadres, formalism and bureaucracy are rife, deception, extravagance
and waste are serious problems, and corruption is relatively conspicuous. There are cases
of work units misappropriating budgetary funds or special funds in disregard of the
relevant rules and regulations. Failure to abide by the law in handling affairs and laxity
in law enforcement are common occurrences. Grave worksite accidents frequently occur.
Public security order is poor in some places. Some of these problems have remained
unsolved for many years, and there are also some that are caused by shortcomings and
errors in our work. We must attach great importance to these problems and take effective
measures to solve them..