The Chinese economy maintains a high speed growth since its opening-up and reform, becoming the 6th economic entity in the world with GNP breaking RMB 10, 000 billion yuan by now. In recent years, under the background of global economy recession, China remains a growth rate over 7%, remaining one of the countries with the fastest economy growth

1. Characteristics of China's economy development

1) National economy maintains a good momentum of growth. Under the obvious slowdown of global economy, China realizes rapid growth of economy by sticking to the policy of expanding domestic demand and firmly implementing pro-active fiscal policy and moderate monetary policy. The GNP in 2001 mounts to RMB9, 593.3 billion yuan, up 7.3% over last year.

2) Economic structure adjustment obtains positive progress. The agriculture structure has been optimized and high quality and special farm products have been increased. High-tech industries such as information and biology industry have developed rapidly. The reconstruction of traditional industries and the capacity of eliminating backward production have obtained comparatively great headway. Infrastructure construction has made remarkable achievement in completing a set of key projects including highway, railway, truck dykes, key water control project and rural electricity network reconstruction. Western development is launched smoothly and important projects such as Qinghai-Tibet railway and transmission of electricity from the western to the eastern region have started.

3) The quality and efficiency of economic growth have been further improved. Industrial enterprises realize annual profit of RMB465.7 billion yuan, up 8.1%. With the great increase in the taxation, national fiscal revenue reaches RMB1, 637.1 billion yuan, rising RMB240 billion yuan. The finance operates steadily. The general level of residents consumer price increases by 0.7%.

4) The foreign economic & trades have been further expanded. The total volume of import and export has broken US$500 billion, of which export volume mounts to US$266.2 billion, up 6.8%. Foreign direct investments reach US$46.8 billion, up 14.9%. The international income and expenditures keep on virtuous trend, as the result that the national foreign exchange reserves reach US$212.2 billion by the end of the year, increased US$46.6 billion over the same period of last year. The exchange rate of RMB is stable.

5) The people's living standard is continuously improved. The per capita disposable income of residents in cities and towns actually increases by 8.5%. Social security expenditures have been greatly increased in the finance of central and local governments. The subsistence allowances for laid-off workers and basic pensions for retirees have been basically fully granted on time. The people involved in the minimum standard of living for urban residents has increased from over 4 million at the beginning of the year to more than 11.2 million of the year. The State lifts the level of pension of retirees and employees of public institutions and organs and increases the basic pension of retirees. Only for the aforementioned items, the central finance has increased expenditures up to RMB 62.1 billion yuan in that very year. The per capita net income of farmers actually increases by 4.2%. The burden of farmers has been relieved by speeding up the reconstruction of rural electricity network and trimming the price of electricity. The markets of urban and rural areas have developed prosperously, and the living condition and transportation have been further improved.

2. Tasks for China's economic development

The national economy is advancing on a speedy, healthy and sustainable track. Therefore, great importance shall be attached to the following tasks

1) Expanding and fostering domestic demand, and promoting the speedy development of economy To maintain the rapid development of national economy, is not only the basis of creating more job opportunities, improving people's living standard and safeguarding social stability, but also an important condition of promoting structure readjustment and deepening the reform.

2) Speeding up the development of agriculture and rural economy, increasing income of farmers

It is not only an important aspect of expanding and fostering domestic demand to develop agriculture productivity and enhance the purchasing power, but also concerns the overall situation of national economy development and social stability.

3) Vigorously promoting economy system structure readjustment and reform

Further unshackling the structure-related contradiction and system-related obstacle are essential measures to promote the sustainable development and enhance economy quality and competition capability

4) Adapting new situation after accession to WTO, enhancing opening-up all-roundly

China's accession to WTO marks a new stage of opening-up to the outside world. We shall positively participate in international economic cooperation and competition in a broader scope and deeper extent and do well work in all aspects.

5) Continuously rectifying and regulating market economy order Vigorously rectifying and regulating market economy order is the urgent demand of expanding domestic demand and promoting economy virtuous development, inevitable choice for a new step of opening-up, and important measure to perfect socialist market economic system

6) Implementing strategy of rejuvenating the nation by science and education and sustainable development strategy, strengthening cultural and ideological progress It is a must to promote technology advancement and innovation, speed up construction of national innovation system, and strengthen fundamental research and strategic high and new technology research and boost independent innovation capability. Centering on industrial upgrade and improving competition capability, measures shall be adopted to strengthen the research and development on key technologies and common technologies and speed up the commercialization and application of scientific and technological results.

7) Further transforming government functions, strengthening construction of administrative conduct

8) Apply to the new situation of opening-up and meet the requirement of establishing clean, diligent, pragmatic and efficient government, the tasks on the following three aspects shall be well managed: Speeding up the transformation of government functions, feasibly strengthen the construction of administrative conduct, uncompromisingly against extravagance and waste.