Report on the Work of the Government.docx

Report on the Work of the Government.docx

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ReportontheWorkoftheGovernment

ReportontheWorkoftheGovernment（2000）

（DeliveredattheThirdSessionoftheNinthNationalPeople'sCongressonMarch5,2000）

　　ZhuRongji

PremieroftheStateCouncil

　　_____________

　　Note:

　　1.Newsdispatchesareembargoeduntiltheconclusionoftoday'smeeting.

　　2.TheofficialversionofthisspeechinChinesewillbereleasedbytheXinhuaNewsAgency.

FellowDeputies,

　　OnbehalfoftheStateCouncil,InowsubmitareportontheworkofthegovernmentforyourexaminationandapprovalandalsoforcommentsfrommembersoftheNationalCommitteeoftheChinesePeople'sPoliticalConsultativeConference.

I.ReviewofDomesticWorkin1999

　　UndertheleadershipoftheCommunistPartyofChina,thepeopleofallethnicgroupsworkedhardin1999topromotereform,openingupandmodernization,makingnewadvancesinallfieldsofendeavor.

　　Thequalityofnationaleconomicdevelopmentimproved.Theobjectiveforthegrowthrateofthegrossdomesticproductwasattained;therewerestructuraladjustmentsintheeconomy;andeconomicperformanceimprovednoticeably.Therewasagoodharvest,andpreliminaryimprovementswereachievedinthepatternoffarming.Industrialproductioncontinuedtogrowwhilestructuraladjustmentswerebeingmade.Someoutmodedproductioncapacitywaseliminated;productionofunmarketablegoodsdecreased;andthesalesrateofproductsrosesteadily.Profitsfromindustrialenterprisestotaled220.2billionyuanin1999,representinganincreaseof52%overthepreviousyear.Totalprofitsfromstate-ownedenterprisesandenterpriseswithcontrollingshareheldbythestatereached96.7billionyuan,anincreaseof77.7%overthepreviousyear,arecordhighforthepastfiveyears.Theeconomicperformanceofmostindustrieswasnoticeablyimproved.Industrialperformancewasbetterthanthepreviousyearin27provinces,autonomousregionsandmunicipalitiesdirectlyunderthecentralgovernment.Nationalrevenuewas150.1billionyuanmorethanthe1998figure.Totalnationalrevenuereached1.1377trillionyuan,exceedingonetrillionyuanforthefirsttime.Therewasstabilityinbankingandfinancialoperations,andmoneysupplyandtotalcreditcontinuedtoincrease.ThevolumeofexportsbegantoriseconsiderablyinJuly,andtotalexportsreachedUS$194.9billionin1999,ariseof6.1%overthepreviousyear.Theuseofdirectforeigninvestmentcontinuedonarelativelylargescale,butdecreasedslightlyoverthepreviousyear.TheexchangeratesfortheRenminbiremainedstable.ForeignexchangereservestotaledUS$154.7billionattheendof1999.Thenationaleconomycontinuedtodevelopinasatisfactorymanner.

　　Majorprogresswasmadeinreformingstate-ownedenterprisesandturningaroundloss-generatingoperations.Weacceleratedtheseparationofgovernmentfunctionsfromenterprisemanagement.WehavebasicallyaccomplishedtheobjectiveofcuttingallbusinesstiesbetweenthePartyandcentralgovernmentorgansontheonehandandtheeconomicentitiessetupbythesebodiesandenterprisesdirectlyundertheirjurisdictionontheother.Thearmy,thearmedpolice,andtheprocuratorial,judicialandpublicsecurityorgansarenolongerengagedinbusinessactivities.Thereorganizationofkeystate-ownedenterprisesprogressed,resultingintheformationofanumberoflargeenterprisegroups.Effortstoeffectinternalreformsinenterprisesandchangesinthewaytheyoperatewerestrengthened.Throughmerger,bankruptcy,reorganization,association,debt-to-equityswap,improvedmanagementandothermeasures,thenumberoflargeandmedium-sizedloss-generatingstate-ownedindustrialenterprisesandloss-generatingenterpriseswithcontrollingshareheldbythestatedecreasedsignificantly.Theobjectiveofturningaroundtheeconomicperformanceofstate-ownedenterpriseswithinthreeyearshasbeenattainedoneyearaheadofscheduleinthetextileindustry.Profitswereincreasedorlossesreducedencouraginglyinotherindustries.Significantprogresswasmadeineffortstoreformstate-ownedenterprisesandturnaroundtheiroperationinthethreeprovincesinnortheastChinaandotheroldindustrialbases,withsignificantreductionoflossesandincreaseofprofits.Theseachievementsencouragedthecadresandthemassestocontinueworkingtoovercomedifficultiesanddemonstratedthattheobjectivessetbythecentralauthoritiesforreformingstate-ownedenterprisesandturningaroundoperationswithinthreeyearsareattainable.

　　Science,technology,educationandothersocialundertakingsdevelopedinanall-roundway.Technologicalinnovationandtranslationofscientificandtechnologicaladvancesintopracticalproductiveforceswereaccelerated.Basicscientificandhigh-techresearchwerestrengthened.Thereformofthemanagementsystemforscienceandtechnologywasdeepened.Majorprogresswasmadeineffortstomakenine-yearcompulsoryeducationuniversalinthecountryandtoeliminateilliteracyamongyoungandmiddle-agedpeople.Regularuniversityandcollegeenrollmentincreasedby47.4%overthepreviousyear,thebiggestincreaseinyears.Continuedprogresswasmadegraduallyinthereformofeducationandintheworkofimprovingtheoverallqualityofstudents.Notableadvancesweremadeinenvironmentalprotectionandecologicalconservation.Socialsciencescontinuedtodevelop.Newlevelsofachievementswerereachedinliteratureandart,thepressandpublishing,radio,filmandtelevision,familyplanning,publichealth,sportsandotherrelatedfields.Effortstogroundculturalandethicalvaluesonsocialistprinciplesandtoimprovedemocracyandthelegalsystemwerereinforced.Freshprogresswasmadeineffortstopromotedemocracyatthegrass-rootslevel.Awide-reachingandpowerfuldrivetocombatallformsofcriminalactivitywascarriedout,bringingaboutimprovementinallfacetsofpublicsecurityandincreasingsocialstability.Freshstepsweretakenineffortstobuildacleanandhonestgovernmentandinthestruggleagainstcorruption.Modernizationofnationaldefensewasaccelerated.

　　Thelivingstandardsofbothurbanandruralresidentscontinuedtoimprove.ThegovernmentincreasedtheincomesofurbandwellerswithlowandmediumlevelincomesonJuly1oflastyear.Thelevelofthebasiccostoflivingallowancesforlaid-offstateenterpriseworkers,thelevelofunemploymentinsurancebenefits,andthelevelofsubsistenceallowancesforurbanresidentswereallincreasedby30%.Thesalariesandwagesofemployeesworkingingovernmentdepartmentsandinstitutionsandold-agepensionsforthoseretiredfromtherewereincreasedalongwiththeold-agepensionsforworkersretiredfromstate-ownedenterprises.Allbackpensionentitlementswerepaidforworkersretiredfromstate-ownedenterprisescoveredbytheoverallstateplan.Certainallowancesfordisabledservicemenandwomenandfamilymembersofrevolutionarymartyrsandservicemenandwomenwereincreased.Totalbudgetaryexpenditureswereincreasedbymorethan54billionyuantocovertheseitems,whichbenefitedover84millionpeopleacrossthecountry.Thepercapitadisposableincomeofurbanresidentsroseby9.3%overthepreviousyearinrealtermsafteradjustingforpricedecreases.Thepercapitanetincomeofruraldwellersincreasedby3.8%inrealterms,andthepopulationbelowthepovertylinedecreasedby8million.Thenumberoflegalholidayswasincreased.Thisstimulatedconsumptionandimprovedthequalityofpeople'slife.

　　Lastyearwecelebratedthe50thanniversaryofthefoundingofthenewChinawithgreatfanfareandsmoothlysecuredthereturnofMacaotothemotherland.ThesetwogreateventsimmenselystimulatedtheardentzealofthepeoplealloverthecountrytoworktorejuvenateChinaandstrengthenedthecohesionofournation.

　　TheseachievementsareduetotheCPCCentralCommitteewithComradeJiangZeminatthecoregraspingtheoverallsituationandexercisingcorrectleadership.In1999,weresolutelyopposedthebarbaricUS-ledNATObombingofourembassyintheFederalRepublicofYugoslavia,dealtapowerfulblowtothearroganceoftheTaiwanseparatistsrepresentedbyLeeTeng-hui,andtookdecisivemeasuresagainsttheFalungongcult.Thegreatvictoriesachievedinthesestrugglesareoffar-reachingpoliticalsignificanceandhavecreatedapositivesocialclimateforoureconomicdevelopment.InaccordancewithadecisionoftheCPCCentralCommittee,Partyandgovernmentleadersatorabovethecountylevelwereeducatedabouttheimportanceofstudy,politicalawarenessanduprightconduct.Thisnotablyimprovedtheirideologicalstandardsandpoliticalawarenessandensuredsmoothprogressforreform,openingupandthesocialistmodernizationdrive.Inaddition,thecentralauthoritiesmaintainedacorrectunderstandingofthetrendsineconomicdevelopmentsothatatthecriticalmomentwhentherewasaneconomicdownturninthesecondquarterof1999,theywereabletoresolutelymakeimportantpolicydecisionsthatstimulateddomesticdemandbyissuingmoretreasurybondsandincreasingpersonalincomesandtofullyusemacro-economicmeasurestoencourageinvestment,consumptionandexports.Alltheseplayedanimportantroleinpromotingeconomicgrowthandimprovingeconomicperformance.Throughourworkandexplorationoverthepastfewyears,wehaveaccumulatedawealthofexperienceincurbinginflation,andnowwehavesomebasicexperienceincontrollingdeflationaswell.Theseachievementsarealsoduetothehardworkofthepeoplethroughoutthecountry.Inspiteofmanydifficulties,thecadresandthegeneralpublicpressedforwardwithgreatconfidenceastheyconsci