Fourth, we will speed up development of a new system under which various sectors of society provide services for agriculture. We will increase spending on agricultural science and technology, intensify efforts to expand application of innovations in agricultural science and technology and become better able to provide agriculture-related technical services. We will improve public service agencies charged with promoting application of agricultural technologies, preventing and controlling animal and plant epidemics, and monitoring the quality of agricultural products at the local level. We will support supply and marketing cooperatives, specialized farmer cooperatives and pacesetting enterprises in providing diverse production and operation services.

Fifth, we will stabilize and improve the basic rural operation system. We will ensure that existing land contract relationships remain stable and unchanged for a long time to come, and enhance and better protect the land contract and management rights enjoyed by rural residents, including migrant workers who are away from their home villages. The transfer of land use rights must occur on a compensated, voluntary basis and be conducted in accordance with the law. We will adhere to and apply the strictest possible systems for protecting arable land and economizing on the use of land, and do everything in our power to keep the total amount of arable land above the red line of 120 million hectares. Reform of the system of collective forest rights will move forward. Overall rural reform will be deepened. We will accelerate reform of town and township government departments and work actively yet prudently to ease the debts of townships and villages.

4. Accelerating transformation of the pattern of development and energetically promoting strategic economic restructuring

This year we will focus on improving industrial restructuring in order to maintain economic growth and promote industrial upgrading.

First, we will conscientiously implement plans for adjusting and invigorating key industries such as the automobile, steel, shipbuilding, petrochemical, textile, nonferrous metals, equipment manufacturing, information technology, modern logistics, and light industries. We will carry out industrial restructuring and upgrading to resolve the prominent problems and conflicts that hinder their development.

Second, we will energetically adjust the structure of enterprises and carry out mergers and reorganizations. We will support superior enterprises in acquiring ones that are backward or have financial difficulties. We will encourage well-established enterprises to work with each other, and upstream and downstream enterprises to integrate their operations in order to raise the level of industry concentration and the efficiency of resource allocation.

Third, we will take more effective measures to support development of small and medium-sized enterprises. We will promptly implement financial support policies, improve the financing guarantee system, streamline loan procedures, and increase the scale of loans. Central Government funding for supporting the development of small and medium-sized enterprises will increase from 3.9 billion yuan to 9.6 billion yuan. We will continue to implement preferential tax policies to encourage small and medium-sized enterprises to make scientific and technological innovations, upgrade their technology, and create more jobs. We will improve the system under which various sectors of society provide services for small and medium-sized enterprises.

Fourth, we will actively support enterprises in accelerating technological upgrading and develop innovation-based enterprises. The Central Government will allocate 20 billion yuan, mainly in interest subsidies, to support technological upgrading in enterprises. We will encourage enterprises to apply new technologies, new production processes, new equipment and new materials so that they can adapt to market changes, develop more readily marketable products, undertake product innovation, and improve their product quality and the level of production and business operations.

Fifth, we will accelerate development of modern service industries. We will promote development of the banking, insurance, modern logistics, consulting, software and creative industries, and develop new types of services. We will upgrade traditional service industries.

We will vigorously promote scientific and technological innovation. We will integrate making technological innovation with boosting domestic demand, maintaining economic growth, making structural adjustments and raising the level of development. This year the central government will allocate 146.1 billion yuan to the science and technology sector, up 25.6 percent from last year.

First, we need to speed up implementation of the Outline of the National Program for Long- and Medium-Term Scientific and Technological Development, particularly, implementation of major science and technology projects. We will select and launch a number of projects that give strong impetus to scientific and technological development, have a widespread impact, and yield quick results, in order to quickly make breakthroughs in core and key generic technologies that can stimulate the transformation of industries and technological upgrading, and support invigoration of industries and long-term economic development.