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NDRC minister on 11th Five-Year Plan (NDRC.gov.cn ) Updated: 2006-03-13 09:04 First, we will promote development by relying on the expansion of domestic
demand, take the expansion of domestic demand, especially consumption, as a
major driving force, and transform economic growth from being driven by
investment and export to being driven by consumption, investment, domestic and
foreign demand combined in a balanced manner. This transformation is targeted at
solving the problem that China's economic growth has relied on investment and
export excessively and domestic consumption does not play its due role. During
the 10th Five-Year Plan period, the domestic capital formation rate increased
from 36% to 44.8%, while the consumption rate decreased from 61.5% to 50.7%, and
foreign trade dependency rose from 39.6% to 63.9%. If such kind of growth
continues, though successful in short-term fast expansion, it will lead to a
more extensive growth mode and instability of the economy. In the 11th Five-Year
Plan period, we will adjust the relationship between investment and consumption,
rationally control total investment, and strengthen the driving force of
consumption in economic growth. We will adjust residents' income distribution,
raise the income of urban and rural residents, and enhance the consumption
capacity of residents, particularly rural residents and low-income population in
urban areas. We will speed up the transformation of foreign trade growth mode,
and promote the switch of the dominant feature of foreign trade from volume
expansion to quality improvement.
Second, we will promote development by relying on optimizing industrial
structure, take the adjustment of economic structure as the theme, transform
economic growth from being driven by industry and quantitative expansion to
being driven by the balanced development of the primary, secondary and tertiary
industries and by structural optimization and upgrading. This is a solution
targeting at the irrational industrial structure of China. At present China has
a weak agriculture foundation, and problems such as difficulties for farmers to
increasing income and underdevelopment of rural regions remain prominent. The
secondary industry is large in scale but not strong, and its ratio has kept
rising and currently stands at 47.3%. The service industry lags behind, with its
ratio dipping from 41.7% in 2002 to current 40.3%. Such an economic mix has not
only increased the pressure on resources and environment, but also affected the
improvement of total economic quality and benefits. It has also impeded the
easing of employment pressure and impaired the stability of the economy. During
the 11th Five Year Plan period, it is imperative for us to give top priority to
the issues of "agriculture, rural areas and farmers" among all strategic tasks,
adhere to the balanced rural and urban development and balanced economic and
social development, and make steady progress in building the socialist new
countryside while promoting urbanization vigorously and prudently. According to
the requirements of the new industrialization path, we regard the enhancement of
independent innovation capability as the central link and will promote
market-oriented and enterprise-led innovation. We will continue to give scope to
the competitive edge of labor-intensive industries, readjust and upgrade the
product mix, enterprises' organizational structure and industrial distribution
so as to build up our industry. Priority will also be given to stepping up the
development of the service industry. By following the principles of market
orientation, industrialization and socialization, we will widen the scope,
expand the scale, upgrade the structure, strengthen the function and standardize
the market of the service industry so as to improve the proportion and level of
the service industry.
Third, we will promote development by relying on resource conservation and
environmental protection and focus on the fundamental change of the economic
growth mode, transforming economic growth from being driven by large amount of
resources consumption to being driven by the improvement of resources
utilization efficiency. This transformation is targeted at solving China's
problems, including resources shortage, fragile ecology and environment and
increasingly prominent contradiction between economic growth and resources and
environment constraints. Rapid economic growth was achieved during the 10th
Five-Year Plan period, yet it was achieved at the expense of resources and
environment. It is imperative to make timely change to this growth mode because
we can hardly achieve sustainable development by heavily relying on resources
consumption. During the 11th Five-Year Plan period, we will implement the basic
national policy of resources conservation and environment protection, develop
cycling economy vigorously, protect and restore ecosystem and environment,
strengthen environmental protection, improve resources management, promote the
balanced development of population, resources and environment to realize
sustainable development, build a cycling and sustainable national economic
system featuring low input, high output, low consumption and emission and a
resources-conserving and environment-friendly society.
Fourth, we will promote development by relying on enhancing independent
innovation capability, take it as a national strategy and shift economic growth
from relying on the input of capital and substance factor to relying on science
and technology advancement and human resources. This is a solution put forward
to address the bottlenecks of science and technology and human resources China
encounters in economic and social development. China's economic growth largely
relies on substance input and its competitive edge is to a great extent based on
cheap labor, cheap water and land resources and expensive environment pollution.
Such a competitive edge will be weakened along with the rising price of raw
materials and the enhancement of environmental protection. Therefore, we should
enhance independent innovation capability vigorously and increase the
contribution of science and technology advancement to economic growth notably.
In the 11th Five-Year Plan period, we will implement the strategy of
rejuvenating our nation through science and education and take science and
technology advancement and innovation as a major driving force of economic and
social development. We will give more strategic importance to developing
education and fostering high-quality talented people who are endowed with
capability and integrity, deepen system reforms, increase input, accelerate the
development of science, technology and education, and make great efforts to
build an innovation-oriented nation and a strong nation with abundant human
resources.
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