Asia Times: Beijing's new economic blueprint


	December 1, 2001	atimes.com

China

Beijing's new economic blueprint

BEIJING - China must not lose sight of the need for strong employment as it becomes more involved in the global economy, senior Communist Party of China (CPC) officials have concluded at a two-day economic conference here.

The Central Economic Working Conference issued a wide-ranging prospectus of the country's economic goals as it wrapped up the session on Thursday. One key point was the need to create jobs. The meeting said that the employment situation is of political importance as it is vital for stability, reform and the continued opening up of markets. Committees of the Communist Party of China and governments at all levels should pay close attention to the employment situation and work to provide more jobs, the conferees said. The meeting urged that the development of labor-intensive industry should be stepped up, and the competitiveness of the state economy be improved.

Meanwhile, various forms of ownership in economic development should also be encouraged, the conferees said. It is important to make full use of the small and medium-sized enterprises and the non-state economy in increasing the employment rate, the meeting noted.

The conference was held jointly by the CPC Central Committee and the State Council. In a keynote speech, President Jiang Zemin, who is also the general-secretary of the CPC Central Committee, called for the party and all of society to work hard to achieve a sustainable, rapid and healthy economic development and overall social progress, in order to be well prepared for the opening of the 16th Party Congress.

The meeting proposed a general outline for the economic work of 2002, calling for deepening reforms, expanding the opening up of markets, speeding up economic restructuring, overhauling and market regulations, and improving the quality and performance of economic growth, so as to boost the sustainable, rapid and healthy development of the national economy and overall advancement of society.

The meeting stressed the importance of the development of small towns and rural enterprises, which can eventually speed up urbanization by absorbing surplus labor from rural areas. It noted that there should be a reasonable allocation of labor resources as well as a balanced and fair system of income distribution, as these are important means to increase both people's incomes and domestic demand.

The meeting said a large income gap between rich and poor should be avoided so as to prevent social strife and offer a sound environment for economic development. It also stressed that work efficiency should be the priority while the principle of fair play must be taken into consideration.

Other major conclusions from the conference:

The country will continue to focus on economic readjustment. Technical upgrading in existing enterprises and improved technical standards of production will lay the groundwork to boost China's international competitiveness. This will also spur investment demand and improve supply capacity.

Education should be developed, and improvements made to housing, tourism, neighborhood services, and modern ways of distribution.

Emphasis on developing China's vast western region should be continued, with the goal of harmonious regional economic development.

Reform of state-owned enterprises (SOEs) will, for the foreseeable future, remain the core of China's overall economic restructuring plan. It is also important to perfect a corporate structure that merges rights and obligations and operates smoothly.

It is imperative to support large companies and conglomerates, which can help adapt the country to international competition after China's entry into the World Trade Organization (WTO).

The buildup of the social-security system should be continued.

It is necessary to cultivate awareness in society of a business code of ethics, and foster an attitude of fair and honest competition.

Expanding domestic demand will continue to be a key strategic policy.

China will continue its proactive fiscal policy, issue long-term state treasury bonds and make necessary investments to realize sustained and rapid development of the national economy, expand employment and maintain social stability.

Further efforts are needed to improve and stabilize the taxation system, and strengthen taxation management.

China will continue to pursue a steady monetary policy and reinforce the supporting role of finance in economic development.

Those at the meeting praised the country's sound development trends in 2001, the first year of the 10th Five-Year Plan, despite a worldwide economic slowdown. The entry into the WTO means that China will participate in globalization on a wider and deeper scale, and the country's opening-up to the outside world will enter a new stage, they said.

(Asia Pulse/XIC)