THE NINTH FIVE-YEAR PLAN | THE 10TH FIVE-YEAR PLAN

The Ninth Five-Year Plan

   I.  Review of National Economic and Social Development During the Ninth Five-Year Plan Period

During the Ninth Five-Year Plan period (1996-2000), the people of all ethnic groups worked hard together, blazed new trails with a pioneering spirit, and obtained great achievements in all fields.

The national economy experienced sustained, rapid and sound development, and overall national strength continued to grow. In the five years, China's GDP increased 8.3 percent on an annual basis and reached 8,940.4 billion yuan in 2000. The task of quadrupling the per-capita GNP of 1980 was overfulfilled. As the economy continued to grow and economic performance improved, national revenue in 2000 reached 1,338 billion yuan, an average annual increase of 16.5 percent. The output of major industrial and agricultural products now stands in the front ranks of the world's economies, and commodity shortages were by and large eliminated. Progress was made in industrial restructuring. The country's capacity in production of grain and other major agricultural products increased noticeably, making a historic change from a long-term shortage of agricultural products to a basic balance in their total supply and demand, with even a surplus during good harvest years. Good results were achieved in eliminating outmoded industrial production capacity, reducing excess production capacity and upgrading technology in key enterprises. Information and other new and high-tech industries grew rapidly. Marked success was achieved in infrastructure development, alleviating bottlenecks in energy, transportation, communications, and raw and processed materials.

Economic restructuring was extensively carried out, and a socialist market economic structure was preliminarily established. Significant advances were made in the reform oriented toward the establishment of a modern corporate structure in large and medium-sized State-owned enterprises (SOEs). Most key SOEs became corporations and a considerable number of them were listed on stock markets inside or outside China. Marked progress was made in endeavors to reduce losses and increase profits in enterprises. Profits created by State-owned and State-holding industrial enterprises totaled 239.2 billion yuan in 2000, a 1.9-fold increase over the 1997 figure. The objectives of reforming large and medium-sized SOEs and turning around loss-incurring operations within three years were basically attained. While public sectors were making further development, private and individual sectors also grew rapidly. The market system continued to improve, and the market of production elements such as capital, technology and labor expanded rapidly. The basic role of the market in the allocation of resources was noticeably enhanced. The system of finance and taxation continued to improve. Banking reform was accelerated. Major progress was made in the reform of the urban housing system, the social security system and government institutions. The State macro-regulation system was further strengthened.

China opened wider to the outside world, with a pattern of all-round opening up basically taking shape. Reform of the foreign trade system steadily progressed, and the outward-looking economy grew rapidly. The total volume of imports and exports reached US$474.3 billion in 2000, with that of exports standing at US$249.2 billion, a rise of 69 percent and 67 percent respectively over the 1995 figures. The mix of exports improved and the proportion of electromechanical products and high-tech products increased. The spheres of activity open to foreign businesses were gradually widened and the investment environment was improved. Foreign investment was increased and better utilized. More than US$289.4 billion in foreign capital were put into use during the past five years, an increase of 79.6 percent over the period of the Eighth Five-Year Plan (1991-95). China's foreign exchange reserves totaled US$165.6 billion at the end of 2000, US$92 billion more than at the end of 1995.

People's living standards continued to improve, and generally, people began to lead a relatively comfortable life. In 2000, the per-capita net income of rural dwellers and the per-capita disposable income of urban residents reached 2,253 yuan and 6,280 yuan respectively, real increases of 4.7 percent and 5.7 percent on an annual basis. There was abundant supply of commodities, the level of consumption continued to rise, and the total retail sales of consumer goods increased at an average annual rate of 10.6 percent. Housing, telecommunications, electricity and other aspects of living conditions for both urban and rural residents improved considerably. Personal savings deposits of residents increased by more than 100 percent between 1996-2000. The value of stocks, bonds and other financial assets increased rapidly. The poverty-stricken population in rural areas reduced drastically and the objectives set in a State plan for helping 80 million people get out of poverty in seven years were basically attained.

The development of science, technology and education was accelerated and other social undertakings progressed in a comprehensive way. A number of major results were achieved in the fields of aeronautics and astronautics, information technology, materials science, bioengineering and other high-tech industries. New advances were made in basic and applied research. The transformation of institutes engaged in applied research under government departments into enterprises was basically accomplished and restructuring of other research institutes has been carried out in a comprehensive way. The process of commercializing and industrializing technological achievements was accelerated. Progress was made in strengthening various types of education at all levels. Initial success was achieved in fulfilling the objectives of making the nine-year compulsory education basically universal in the country and eliminating illiteracy among young and middle-aged people. Major progress was made in the reform of the management system of higher education. The increase in university and college enrollment was widely appreciated by the general public. New advances were made in population management and family planning. Great efforts were made in ecological conservation and environmental protection. Culture, public health, sports and other social undertakings continued to develop. Successive results were achieved in building a clean and honest government and in the struggle against corruption. The administration of all facets of public security was improved. New progress was made in improving socialist culture and ethics, democracy and the legal system. Continuing progress was made in modernizing national defense and armed forces.

During the Ninth Five-Year Plan period, the Chinese Government resumed its exercise of sovereignty over Hong Kong and Macao, and historic progress was made in the great cause of peaceful reunification of the motherland. Since the return of Hong Kong and Macao to the embrace of the motherland, the principle of "one country, two systems" and the basic laws of the two special administrative regions have been implemented in a comprehensive way. Outstanding achievements were made in the work of the governments of the special administrative regions. Social stability and economic development were secured in Hong Kong and Macao.

With the fulfillment of the Ninth Five-Year Plan, China attained the strategic objectives for the second stage of its modernization drive, which laid a solid foundation for undertaking the 10th Five-Year Plan (2001-05) and moving on to the third stage.

These tremendous achievements in economic and social development during the Ninth Five-Year Plan period were hard-won victories over numerous difficulties. China successfully coped with the challenges posed by unexpected international events. It protected itself from the impact of the Asian financial crisis, controlled inflation during the early days of the Ninth Five-Year Plan period and curbed deflation in the middle and late days of the period. China also conquered severe floods and droughts.

Meanwhile, there are still numerous problems in the country's economic and social life, which need great attention and effective measures. The principal problems are as follows: irrational industrial structure and uncoordinated development of local economies; low overall quality of the national economy and low competitiveness in the international market; imperfections in the socialist market economy and conspicuous systematic factors hampering the development of productive forces; a comparatively backward state of science, technology and education, and relatively weak innovative ability in science and technology; a shortage of important resources such as water and petroleum and the deterioration of the ecological environment in some regions; growing employment pressure, slow income increases for farmers and some urban residents, and an increasing income gap; considerable disorder in some areas of the market economy; frequent occurrences of grave accidents; serious corruption, extravagance and waste, formalism and bureaucracy; and poor public order in some localities.