The "Communist Party of China (CPC) Central Committee's Proposal
on the Formulation of the 11th Five-Year Guielines (2006-2010) for
National Economic and Social Development" adopted by the Fifth
Plenum of the 16th CPC Central Committee put forward many new
thoughts, new ideas and new moves. This will definitely exert mayor
influence on the new practice of China's economic and social
development, the following 11 key words merit attention.
1. Adjustment of industrial structure
During the "11th Five-Year Guielines" period, adjustment of the
industrial structure includes two-layer meanings: One is raising
the level of industrial technology.
The "Proposal" points out: To realize the adjustment of the
industrial structure, "the key is to comprehensively enhance
independent innovative capability, strive to master core technology
and key technology, strengthen ability for the transformation of
scientific and technological achievements and improve the overall
technological level of industry".
Second is developing key industries. The "Proposal" points out
that the important tasks for adjustment of the industrial structure
is to develop advanced manufacturing industry, increase the
proportion of the service trade and strengthen infrastructure
construction for basic industries.
2. Cycling economy
The "Proposal" points out that developing a cycling economy is
an important way for the building of a resources-saving and
environment friendly society and realizing sustainable
development.
Vigorously developing a cycling economy requires adoption of
comprehensive measures: Changing the concept of development,
rationally adjusting industrial structure and distribution,
establishing a technical supporting system for the development of a
cycling economy, perfecting the system and mechanism for promoting
the development of a cycling economy, strengthening laws and
regulations and a standard system for developing a cycling economy,
organizing and launching a pilot project for the cycling economy
and intensifying publicity and education.
3. Independent innovation
The "Proposal" notes that regarding enhancement of independent
innovative capability as the strategic basic point of scientific
and technological development and a key link in adjusting the
industrial structure and changing the mode of economic growth,
vigorously improving primitive innovative ability, integrated
innovative ability and the re-innovative abilities for
introduction, assimilation and digestion of technology.
Enhancing independent innovative capability requires: First,
accelerating establishment of a technological innovative system
that takes enterprise as the mainstay and market as the guide and
features the integration of production, emulation and research.
Second, improving the market environment for technical innovation.
Third, implementing policies related to finance, taxation, banking
and government procurement for supporting independent innovation,
and perfecting an incentive mechanism for independent innovation.
Fourth, making proper use of global resources of science and
technology. And Fifth, strengthening protection of intellectual
property rights (IPR).
4. Regional coordination
The "Proposal" points to the need of carrying out development of
the western region, revitalizing northeastern old industrial bases,
promoting the rise of the central region, encouraging the eastern
region to take the lead in development, so as to form a pattern in
which the eastern, central and western regions act together, take
advantage of each other's strengths, promote each other and enjoy
common development.
The "Proposal" points out the way for implementing the strategy
of regional development mainly in three aspects. First,
strengthening regional coordination and interaction mechanisms,
which include the market mechanism, cooperation mechanism,
mutual-aid mechanism and supporting mechanism. Second, clearly
defining the functional positions of different regions.
Carrying out optimized development, selected point development,
restricted development and prohibited development in accordance
with the populations, resources, environment bearing capacity and
development potentialities of various regions. Third, expediting a
sound development of urbanization. Vigorously and steadily pressing
ahead with urbanization in line with the principles of advancing in
an orderly and gradual way, saving lands, engaging in intensive
development and making rational arrangement.
5. Expanding domestic demand
The "Proposal" points to the need of further expanding domestic
demands, adjusting the relationship between investment and
consumption, and increasing the role of consumption in boosting
economic growth. The contribution rate of China's consumption to
the growth of GDP has witnessed a continuous sharp drop in recent
years, the growths of investment and consumption are
inharmonious.
During the "11th Five-Year Guielines" period, China will focus
its efforts on expanding consumption demands from four aspects, and
give further play to the role of consumption in pulling along
economic growth. First is to change the situation of the sluggish
rural consumption through increasing farmers' incomes, intensifying
the government's public services to rural areas and accelerating
the pace of urbanization, etc.; second is to intensify efforts in
regulating income distribution through raising the income levels of
medium- and low-income earners and guide urbanites to expand
consumptions; third is to gradually improve the country's social
security system, so as to relieve consumers of their "worries"
about consumption; fourth is to improve the consumption environment
and thus guarantee civilians' consumption safety.
6. Boosting "four new -izations"
During the "11th Five-Year Guielines" period, the process of the
"four new -izations" characterized by industrialization,
urbanization, marketization and internationalization will be fully
accelerated, and the Chinese economy will thus release tremendous
vigor.
Acceleration of industrialization refers to the fact that
currently the output of China's principal industrial products have
ranked first in the world, the country is becoming the world's
largest industrial production base. Faster urbanization refers to
the rapid growth of China's urban population. Quickening
marketization refers to the fact that China has become one of the
most open markets in the world, as well as a market which witnesses
the fiercest competition in the world, of the world's top 500
enterprises, 450 have entered into the Chinese market. Acceleration
of internationalization means that the proportion of GDP in
relevance to international capital increased from 25.4 percent in
2000 to 37.7 percent in 2004. Promoting the development of "four
new -izations" provides an important condition for maintaining the
rapid development of China's economy.
(People's Daily?October 10, 2005)