We will promote the steady and sound development of the real estate market. We will resolutely curb the precipitous rise of housing prices in some cities and satisfy people's basic need for housing. First, we will continue to carry out low-income housing projects on a large scale. The Central Government will allocate 63.2 billion yuan for low-income housing, an increase of 8.1 billion yuan over last year. We will build 3 million housing units for low-income families and renovate 2.8 million housing units in run-down areas. We will expand the pilot program for renovating dilapidated houses in rural areas. Governments at all levels must genuinely take responsibility to ensure that the annual construction plan is strictly carried out and that policies concerning land, funding and preferential treatment are implemented well. Second, we will continue to support the purchase of homes to be used as their owners' residences. We will increase land supply for building small and medium-sized condominiums to be sold at low and medium prices, and expedite the approval procedure for and construction of such housing projects. We will standardize and develop the market for used homes, encourage home renting, and stimulate the rental housing market. Third, we will rein in speculative housing purchases. We will intensify the implementation of differentiated credit and tax policies. We will improve the advance purchase system for commodity housing. Fourth, we will work to rectify and standardize the real estate market. We will improve the methods for managing and using income from land, and keep land prices from rising too fast. We will make greater efforts to deal with violations of laws and regulations such as keeping land unused, property hoarding and price rigging.

We will accelerate the reform and development of the pharmaceutical and healthcare fields. We will actively yet prudently carry forward the reform of the pharmaceutical and healthcare systems, and comprehensively accomplish five key tasks. We will continue to expand the coverage of guaranteed basic medical care. This year we will raise government subsidies on basic medical insurance for non-working urban residents and on the new type of rural cooperative medical care system to 120 yuan per person per year, up 50 percent from last year, and appropriately increase rates for individual contributions. We will carry out a pilot program for ensuring that rural children with leukemia or congenital heart disease receive medical treatment and provide more assistance to these less fortunate children and their families. We will install the basic drug system in 60 percent of the community medical institutions run by the government and urge other medical institutions to give high priority to the use of basic drugs. We will promote the centralized purchase and unified distribution of basic drugs. We will basically complete the plan for building community medical institutions in urban and rural areas, undertake personnel education and training on a large scale, and further improve the policies and measures for supporting the development of village clinics and rural doctors. We will improve the mechanism for subsidizing community medical institutions and link salaries to performance. We will carry out a pilot program for making community medical institutions the first option in medical treatment, and work to create a service system in which hospitals and community medical institutions (each with its own well-defined functions) coordinate and collaborate with each other and refer cases to each other. We will strengthen prevention and control of influenza A (H1N1) and other major communicable diseases as well as chronic, occupational and endemic diseases, and enhance our ability to handle public health emergencies. We will carry out a pilot reform in public hospitals; maintain the non-profit nature of basic medical services; make institutional and procedural innovations; boost the morale of medical workers; raise service quality; control medical costs; and improve relations between medical service providers and consumers. We will energetically support the use of private capital to run medical and healthcare institutions, and such institutions will be treated the same as public hospitals in obtaining operating licenses and providing medical services covered by the public medical insurance system. We will support and promote the development of traditional Chinese medicine and folk medicines of ethnic minorities. The reform and development of the pharmaceutical and healthcare fields affect the health of the people and the happiness of their families; therefore, we must overcome all difficulties and solve this universal problem.

We will do a good job in population and family planning work. We will continue to maintain a low birthrate. We will provide good family planning services for the floating population. We will provide regular gynecological examinations and subsidize hospital childbirths for rural women. We will strengthen intervention in birth defects; carry out a pilot program of free pre-pregnancy checkups; and provide quality health services for infants, pre-school children, and pregnant and nursing women. We will continue to reward and support eligible rural families that comply with family planning regulations, and carry out the "lower birthrate equals faster prosperity" project in the western region. We will take effective measures to protect the rights and interests of women and minors. We will intensify strategic research on coping with an aging population and move more quickly to create a sound system of old-age services so that people can live a happy life in their old age.

7. Firmly advancing reform and further expanding opening up

This year we will continue to deepen reform in key areas and crucial links and work hard to achieve new breakthroughs.

We will continue to make strategic adjustments in the distribution and structure of the state-owned sector. We will speed up the reform to introduce the corporate system in large state-owned enterprises, especially parent companies of enterprises under the Central Government, and we will diversify their ownership and improve their corporate governance. We will accelerate the reform of monopoly industries; promote reforms in public utilities; effectively expand market access; and actively introduce competitive mechanisms. We will create a market environment for fair competition among economic entities under diverse forms of ownership and facilitate stronger growth of the non-public sector.

We will deepen the reform of prices for resource products and environmental protection charges. This is an important measure for conserving energy and resources, protecting the environment, and achieving sustainable development. We will expand the trial of direct transactions between major electricity consumers and producers; introduce tiered prices for household consumption of electricity and water; and improve the mechanism of price setting and cost sharing for electricity generated from renewable energy. We will improve the pricing policy for water used in agriculture. We will reform the system of sewage and garbage treatment charges. We will expand the trial of pollution rights trading. While pushing forward these reforms, we will balance the interests of different parties and ensure that the basic living conditions of people with low incomes are not adversely affected.

We will continue to reform the fiscal and taxation systems. We will strengthen the public finance system. We will improve the system of transfer payments, increase general transfer payments, and enhance the ability of local governments to provide basic public services. We will strengthen the fiscal management system at and below the provincial level, improve a mechanism to ensure basic funding for county governments, and carry forward reforms that place county finances directly under the management of provincial governments. We will draw up budgets for all funds controlled by central and local governments, prepare budgets for social security funds on a trial basis, and improve the budget system for the use of state capital. We will increase the transparency of the fiscal budget. We will continue to make progress in VAT reform. We will carry forward the reform of resource taxes. We will extend the urban construction and maintenance tax and education surcharges to foreign enterprises and nationals.

Improving the financial system is an important measure for countering the impact of the global financial crisis. We will continue to improve corporate governance in financial institutions in which the state holds a controlling stake, improve their business management, and raise their ability to manage and control risks. We will continue the reform of policy-based financial institutions. We will steadily promote the transformation of asset management companies. We will deepen the reform of rural credit cooperatives. We will promote orderly development of small and medium-sized financial institutions. We will vigorously develop the financial market and encourage financial innovation. We will promote pilot projects for the use of the renminbi in cross-border trade, and gradually develop overseas financial activities using the renminbi. We will continue building the deposit insurance system. We will speed up the development of agricultural insurance.

We will actively yet prudently push forward the reform of institutions on the basis of scientific classifications and in accordance with the requirements that government and business functions be spun off from institutions, and that supervision be separated from day-to-day operations.

The reforms we are undertaking, including economic and political restructuring and reforms in all other areas, are comprehensive. Without political restructuring, it would not be possible for economic restructuring and the modernization drive to succeed. We will develop socialist democracy, and effectively safeguard the democratic rights of the people as masters of the country, particularly their rights to vote and to stay informed, participate in, express views on, and oversee government affairs. We will further expand grassroots democracy, strengthen grassroots self-governing bodies, and improve the system of democratic administration at the grassroots so that the people can better participate in the management of local public affairs. We will follow the rule of law and improve the legal system, particularly laws concerning the standardization and oversight of the exercise of power. We will innovatively revise the methods and mechanisms of the government's legislative work and expand public participation in it.

We will fully adapt to changes in the international situation, meet the needs of domestic development, and expand the breadth and depth of opening up.

We will steadily develop foreign trade. This year the main focus is on opening new markets and adjusting the structure of and promoting balance in foreign trade. We will adhere to the strategy of diversifying markets and the strategy of competing on quality; implement and improve policies and measures on export tax rebates, export credit, and export credit insurance; and continue to improve services related to the customs, quality inspection and foreign exchange. We will strengthen traditional markets and vigorously develop new markets. We will improve the export mix; stabilize exports of labor-intensive products; increase exports of electromechanical products as well as new- and high-technology products; energetically develop trade in services and service outsourcing; strive to cultivate exports of brand-name products and develop marketing networks; and continue to strictly limit exports of resource products and products whose production consumes large quantities of energy and resources or is highly polluting. We will vigorously promote the transformation and upgrading of the processing trade. We will promote the balanced development of imports and exports; focus on increasing imports of advanced technology and equipment, key spare parts, and goods in short supply domestically; keep all policies and measures for promoting and facilitating imports stable; and urge developed countries to ease export restrictions on new- and high-technology products to China.

We will promote coordination between using other countries' investment in China and making Chinese investment overseas. We will optimize the utilization of foreign investment; encourage more foreign investment in high-end manufacturing, new- and high-technology industries, modern service industries, and the new energy, energy-conservation and environmental protection industries; encourage multinational corporations to set up regional headquarters and other functional agencies in China; and encourage Chinese and foreign enterprises to strengthen cooperation in R&D. We will encourage the use of foreign investment for restructuring, upgrading, merging, and reorganizing Chinese companies, and quickly establish a security review system for mergers and acquisitions involving foreign investment. We will work to attract both investment and talent from overseas. We will guide foreign investors to transfer and increase their investments to the central and western regions. We will accelerate the implementation of the "go global" strategy; encourage Chinese industries whose products are in demand in foreign markets to transfer their production capacity overseas in an orderly manner; support qualified enterprises to carry out overseas mergers and acquisitions; deepen mutually beneficial cooperation concerning foreign resources; and improve the quality of overseas contracted projects and labor service cooperation. We will further simplify examination and approval procedures, and give enterprises decision-making power over their overseas investments. Enterprises that have "gone global" should operate in accordance with the law, avoid risks, prevent vicious competition, and safeguard the country's overall interests and good image.

We will deepen multilateral and bilateral business cooperation. We will strengthen and improve business ties with developed countries, deepen mutually beneficial cooperation with other developing countries, and conscientiously implement the eight new policy measures for China's pragmatic cooperation with African countries. We will make full use of the role of high-level economic dialogue and bilateral economic and trade joint commissions. We will quicken the pace of establishing free trade zones. We will actively participate in the Doha round of trade talks to reach a more reasonable and balanced outcome as early as possible. We will oppose protectionism in all forms and properly handle trade frictions.

The Shanghai World Expo will open soon. We will strengthen cooperation with all participating countries, regions, and international organizations to make the Expo a successful, spectacular, and unforgettable event, and one that promotes the progress of human civilization, scientific and technological innovation, and exchanges and cooperation between China and other countries of the world and their common development.

8. Working hard to build a service-oriented government that the people are satisfied with

Over the past year, new progress was made in government self-reform and self-development. To deal with difficulties of all kinds, we paid particular attention to promoting democracy, listening to the opinions of the public, and protecting their interests. Our civil servants are devoted, diligent and responsible, and they made positive contributions to sustaining economic growth and ensuring people's well-being and maintaining stability. Nevertheless, the government's work still fell considerably short of public expectations. The transformation of government functions is incomplete; there is too much government interference in the micro-economy, and public administration and services are relatively weak. Some government employees give too little consideration to carrying out their official duties in accordance with the law; some leading cadres are divorced from reality and the public, and are excessively formalistic and bureaucratic; and some areas are prone to corruption. With the focus on transforming government functions, we will deepen reform of the administrative system, work hard to make the government devoted to service, strive to create a fair development environment for all types of market entities, deliver quality public services to the public, and uphold social fairness and justice.

We will fully and properly perform government functions and attach greater importance to public services and administration. We will quickly improve the public service system with full coverage for all, and comprehensively improve our ability to provide basic public services. We will improve the mechanisms for responding to major natural disasters and emergencies that threaten public safety. We will improve our ability to prevent and mitigate natural disasters. We will strengthen the oversight and supervision of food and drug quality. We will ensure workplace safety and reduce the occurrence of major accidents.

We need to adapt to new circumstances, promote reform and innovation in the public administration system, and properly adjust the relationships between different interests. We will earnestly deal with serious infringements on the interests of the people related to conversion of enterprises to a stockholding system, land expropriation, housing demolition and resident relocation, environmental protection, labor disputes, and legal and litigation issues in order to safeguard the people's lawful rights and interests. We will improve the handling of public complaints lodged via letters or visits. We will improve supervision of and services for the floating population. We will strengthen all facets of public security, focus on resolving serious public security issues, and guard against and severely crack down on crimes of all sorts in accordance with the law in order to safeguard national security and social stability.

We will work hard to improve our executive ability and earn greater public trust. We will continue to make decision-making more scientific and democratic, and ensure that all of our policies are more suitable to reality and can stand the test of time. We will strengthen inspection and oversight of policy implementation and ensure that all orders are carried out and all prohibitions are observed. We will strengthen administrative accountability. All persons who are derelict in their duty, fail to do their jobs or do them irresponsibly will be held fully accountable. All localities and departments must implement the decisions and arrangements of the central leadership effectively, and they may never go their own way. Government agencies at all levels and their civil servants must conscientiously abide by the Constitution and laws and carry out their administrative duties in strict accordance with the law. We will effectively improve law enforcement in government administration and work to ensure that laws are enforced in a standard, fair and civil manner. We will accelerate the establishment of a sound operating mechanism for government administration, one that allows decision making, enforcement, and oversight departments to restrain and coordinate with each other.