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Government Documents
UPDATED: March 29, 2011
Full Text of Jiang Zemin's Report at 14th Party Congress
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2. To open wider to the outside world and make more and better use of foreign funds, resources, technology and management expertise.

The number of areas and regions open to other countries needs to be increased. Exchanges can take place in all domains, at different levels and through many channels. Continued efforts should be made to improve the management of the special economic zones, the open coastal cities and the open coastal economic development areas. We must open more areas along the borders and in the interior provinces and autonomous regions. We should also open more cities along the Yangtze River, while concentrating on the development and opening of the Pudong Area of Shanghai. We want to make Shanghai one of the international economic, financial and trade centres as soon as possible and to bring about a new leap in economic development in the Yangtze River Delta and the whole Yangtze River basin. We should accelerate the opening and development of Guangdong, Fujian, Hainan and the rim of Bohai Bay, enabling Guangdong and other areas where conditions are ripe to basically achieve the goal of modernization in 20 years.

We should open up more areas to foreign investment. We should continue to improve the investment environment and provide better conditions for foreign businessmen to invest and do business in China, and we should give them full legal protection. We should attract foreign investment in accordance with the national industrial policy, channeling it into infrastructural facilities, basic industries, enterprises that need to be technically transformed or that are capital- or technology-intensive and also, in a certain measure, into banking, commerce, tourism, real estate and other domains. We should ensure rational distribution and better management of the economic and technological development zones and the development zones for industries using high and new technology.

We should open up more international markets, diversify our trading partners and develop an export-oriented economy. We should expand export trade, change the export product mix and export high grade commodities of good quality. At the same time, we should increase imports in an appropriate amount and make use of more foreign resources and advanced technology. We should deepen the reform of the system for managing foreign trade and establish, as soon as possible, a new system that is in keeping with the development of the socialist market economy and conforms to international norms. We should grant to enterprises and to science and technology research institutes the power to engage in foreign trade, and we should encourage enterprises to expand their investments abroad and their transnational operations.

3. To readjust and optimize the structure of production, put great effort into agriculture and accelerate the development of basic industries, infrastructural facilities and the tertiary industry.

In light of the current condition of our economy and its trend of development, we should try to raise the level of agriculture, which is the primary industry, and steadily increase its output. We should continue expanding the secondary industry and readjusting its structure, and we should make greater efforts to promote the tertiary industry.

Agriculture is the foundation of the national economy. We must continue to give first priority to developing it, and we must revitalize the whole rural economy. We must recognize the importance of diversification and, while ensuring that the output of grain and cotton increases steadily, continue to adjust the agricultural structure. We should do all we can to expand farming, forestry, animal husbandry, sideline production and fisheries, and to develop a highly efficient agriculture that provides greater and better yields. We should persist in revitalizing agriculture by relying on science and technology and on education. We should increase investment in agriculture in different forms and through different channels, continue our efforts to build water conservancy projects and constantly raise the level of intensive management and overall productivity. We should vigorously expand township enterprises, particularly supporting those in the central and western parts of the country and in areas inhabited by people of minority nationalities.

We must carry out the decision of the Eighth Plenary Session of the 13th Central Committee in all respects by further restructuring the rural economy and reforming the methods of operation. We should try to stabilize for a long time to come, and constantly improve, the responsibility system, the main form of which is the household contract that links remuneration to output, and the system of unified management combined with independent management. We should develop diverse forms of collectivized agricultural services and gradually increase the economic strength of collectives, as actual conditions in various places allow. We should move faster to reform the pricing system for agricultural products and the rural circulation system. In developing the rural economy we should continue to expand the regulatory role of the market.

Rapid development of such infrastructural facilities and basic industries as transportation, telecommunications, energy, important raw and semi-finished materials and water conservancy is urgently needed both to accelerate economic development now and to prepare for further development later. For this purpose, we should concentrate on building efficiently a certain number of "backbone" projects of high quality. We should lose no time in launching construction of the key Yangtze Three Gorges water conservancy project, the project to divert water from the Yangtze River to north China, the railway for transporting coal from west to east China, the 10-million-ton iron and steel complex and other super-projects that will not be completed until the next century.

We should intensify geological exploration. We should revitalize the machine-building and electronics industries, the petrochemical industry, the automobile industry and the construction industry to make them the pillars of the economy. We should lose no time in developing high- and new-technology industries. Ordinary enterprises in textiles, processing and other light industries should increase their efficiency and raise their technical level through association, reorganization and technical transformation. Full attention should be paid to economizing energy and raw and semi-finished materials so that resources can be put to best use. So far as investment in fixed assets is concerned, we should give priority to infrastructural facilities, basic industries and projects for the technological transformation, rebuilding and expansion of existing enterprises, especially those for the technological transformation of the old industrial bases and of "backbone" enterprises.

A flourishing tertiary industry is one of the important features of a modern economy. At present, the total value of services in China is far less than it is in developed countries and even in many other developing countries. An expansion of commerce, banking, insurance and tourism, of services in the fields of information, law, accounting and auditing and also of neighbourhood services will augment the growth of the market. It will also help to socialize and professionalize services, to achieve better economic results and increase efficiency, and to ensure convenience for the people and enrich their lives. Moreover, it will create employment opportunities and provide the necessary conditions for readjusting the economic structure, changing the way enterprises operate and reforming the government structure. We must call upon the initiative of the state, collectives and individuals and step up development of the tertiary industry so as to greatly increase its proportion in the GNP.

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