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Chinese Premier Outlines Objectives and Policies of New Cabinet

China's new cabinet should continue to maintain a sustainable and comparatively rapid development of the national economy and improve people's living standards, new Chinese Premier Wen Jiabao said in Beijing Tuesday morning.

This is "one goal" China's new cabinet will strive to achieve, the premier told a press conference, adding that it is vital for the government to maintain continuity and stability of policies and stick to the policy of expanding domestic demand and implement the proactive fiscal policy, in order to achieve the goal.

The new premier put the work of his new cabinet in a nutshell of "four phrases", namely, to "achieve one goal", "implement two key policies", "solve three major economic problems" and "promote reforms in four major aspects".

The two key policies are: to realize the strategic economic restructuring and continue to open up to the outside world.

The three major economic problems are: how to solve unemployment and social security system, how to increasing fiscal revenue and cut public spending, and how to correct and standardize the economic order.

The "reforms in four aspects" are: the reform of the rural economy, the reform of state-owned enterprises, the reform of financial system and the reform of governmental agencies.

Wen said that rural reform covers rural taxation system, grain purchase and sales, subsidies to farmers, the rural financial system and rural medical and health service.

The premier said China will continue to regard state-owned enterprise reform as the central task of the overall economic reform, aiming at establishing a modern corporate system, and in the meantime, China will promote the reform of the system for managing state assets.

He said that while establishing and improving the financial regulation system, his government will take steps to speed up the reform of state-owned financial enterprises so as to establish a modern financial enterprise system in its true sense.

The premier laid out a number of principles necessary for achieving the above objectives.

He stressed the necessity of giving priority to the development of agriculture and rural economy, and of promoting a coordinated and well-balanced development between urban and rural areas.

He encouraged the eastern areas of China to seize the opportunities to accelerate development and renovate and revitalize old industrial bases and the western part to implement the western China development strategy.

The premier said that his government will take full advantage of the opportunities brought about by China's accession to the WTO to open wider to the outside world.

He pledged continued efforts to implement the sustainable development strategy and the strategy of developing the country by relying on science and education so as to achieve steady economic and social development.

China will strive for a proper balance among development speed, dimension of reform and social bearing capacity in order to realize the perfect integration of reform, development and stability, he added.

(Xinhua News Agency March 18, 2003)

 


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