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| Premier Calls for Pushing Forward Economic Restructuring |
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Premier Zhu Rongji has called for great efforts to push forward economic restructuring while delivering the Report on the Work of the Government at Tuesday's opening of the annual session of the National People's Congress, the Chinese parliament.
In the report, Zhu called for further resolving structural inconsistencies and remove institutional obstacles that impede economic development. This is an essential measure to sustain development of the national economy, improve the quality of its performance and enhance its competitiveness, he stressed.
He pledged to make unremitting efforts to adjust the economic structure and deepen the economic restructuring.
On accelerating the optimization and upgrading of the industrial structure, he said that first, China should utilize new and high technologies and advanced applied technologies to transform and upgrade traditional industries.
The government will support the technological transformation of key industries and enterprises and help large equipment manufacturing enterprises that perform important tasks assigned by the state to raise their capacity for product development and technological innovation. Enterprises need to draw up plans and choose feasible projects for technological transformation, focusing on "quality, variety and performance." They cannot engage in redundant construction or only expand their production capacity.
The achievements made by the textile, metallurgical and coal industries in eliminating outmoded production capacity need to be consolidated and expanded.
The petrochemical, building materials, machinery, pharmaceutical, sugar refining and tobacco industries should continue to reduce their surplus and outmoded production capacities. Production capacity once eliminated must never be put to use again under any pretext or in any form. Energy restructuring will continue.
China should encourage old industrial bases to accelerate their industrial restructuring and technological transformation. The government will help the cities and old mining areas that mainly exploit resources to develop new industries.
Second, China should accelerate the development of information, biology, new materials and other high and new technology industries.
The government will continue to organize and initiate key projects for industrialization of high and new technology in such fields as information networks, new electronic components, integrated circuits, software, new materials, and the use of modern technologies in production of traditional Chinese medicines.
China should extend the application of information technology throughout the national economy and society.
Third, China should develop tertiary industries, particularly modern service industries.
China should accelerate the development of the banking, accounting, consulting, legal and other service industries. China should gradually adopt such organizational forms and service methods as commercial chains, goods flow and distribution, the agency system and e－commerce. The tourism industry and cultural industries need to be greatly expanded.
The premier called for continued efforts to develop the western region and promote coordinated development of different areas, and strengthen the infrastructure development and improve the ecological environment in the western region.
Efforts should be concentrated on key projects, including the Qinghai－Tibet Railway and the projects to divert gas and electricity from the western to the eastern regions.
China will carry forward projects to return cultivated land to forests, to protect natural forests, to build the northwest－north－northeast China networks of shelterbelts, and to prevent and control desertification.
Zhu stressed that the various policies and measures for developing the western region must be carried out in earnest to stimulate the development of old revolutionary base areas, areas inhabited by ethnic minority groups, border areas and poverty－stricken areas.
The western region should develop industries for which it has favorable conditions and those with local characteristics and avoid redundant construction and haphazard investment.
Efforts will be made to prevent the transfer to the western region of factories and equipment which have been eliminated elsewhere so as not to damage the ecological environment there.
The central region needs to exploit its advantages in geography and resources and create new points of economic growth. The state will assign more construction projects to the region to accelerate its development, according to the premier.
The eastern region should optimize its industrial structure and vigorously develop its export－oriented economy, improve its economic quality, raise its competitiveness, and take various measures to strengthen its economic and technological cooperation with the western and central regions.
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