Opinions of the General Office of the State Council on Coping with the Global Financial Crisis and Maintaining Steady and Properly Rapid Economic Development in the Western Area of China (3)
Source: MOFCOM View: 462 Date: 2011-05-16

7. Deepen reform and opening up and establish a new pattern of opening up to other areas of China and foreign countries

The reform of institutional system shall be promoted. Efforts shall be made to change the functions of governments, reduce and regulate administrative examination and approval and improve administrative efficiency. We shall enhance efforts on public administration and service and establish responsibility and service-oriented governments. The development of nonpublic economy shall be quickened, the environment for development shall be improved and the percentage of such economy in the national economy shall be increased. We shall advance layout and structural adjustment of national economy, deepen reform of state-owned enterprises and energetically develop large enterprises and groups. The reform of resource tax shall be promoted and the relationship between central government and local governments in respect of distribution of compensation fees for mineral resources shall be adjusted. We shall establish the ecological compensation mechanism, conduct pilots for ecological compensation in riverhead areas including Sanjiangyuan in Qinghai and areas of extremely important ecological positions, and set up national integrated experimental zones for ecological protection. The long-term stable sources of funds for western development shall be perfected.

The interaction between eastern, central and western areas shall be enhanced. We shall adhere to the principles of government promotion, market operation, institutional innovation and mutual benefits, encourage those areas to establish special funds for regional cooperation, and promote reasonable flow of factors of production. We shall also promote those areas to jointly set up long-term and steady bases for development of energies and mineral resource. Cross-regional economic cooperation organizations and industrial associations of all kinds shall be established and improved. We shall continue to improve the platforms for interaction between the eastern and western areas including the Investment and Trade Forum for Cooperation between East and West China and the Western China International Economy & Trade Fair, proactively promote the works on partner assistance from developed areas in the eastern area to poverty-stricken areas in the western area, and speed up the establishment of a sound regional coordinated interactive system, so as to form a new pattern featured by coordinated interaction, mutual promotion and co-development among eastern, central and western areas.

We shall conduct overseas economic exchange and cooperation. More efforts shall be made to introduce international industrial capital and financial capital, improve the quality and level of utilization of foreign capital in western area, and support foreign investment in major projects and enterprises according to national policies through entrepreneurship investment fund and equity investment fund. We shall carry out the “going global” strategy, guiding, encouraging and supporting enterprises in the western areas to actively participate in overseas investment, overseas contracted projects and foreign labor service cooperation. We shall fully use of the platform of international regional cooperation organizations to broadly participate in the Greater Mekong Sub-region Economic Cooperation and Regional Economic Cooperation in Central Asia. The Central Asian Investment and Economic Trade Cooperation Demonstration Center shall be established and the establishment of Horgos International Cooperation Center and Pinxiang integrated bonded area shall be picked up. More efforts shall be made to develop border trades and actively explore new modes of development and opening up of border areas.

8. Speed up rebuilding in quake-stricken areas and complete scheduled tasks

The rebuilding of livelihood projects shall be promoted. We shall implement the General Plan for Relief and Rebuilding after Wenchuan Earthquake, give priority to construction of houses for residents in the quake areas, basically finish rebuilding of houses of rural resident by 2009, and start rebuilding of houses in urban areas. More efforts shall be made on rebuilding of pubic facilities such as schools and hospitals and attentions shall be given to people living in remote poverty-stricken areas.

The rebuilding and resumption of infrastructure and industry shall be quickened. Priority shall be given to construction of trunk highways, rural roads, bus stations in counties and towns, and communication, grid and power facilities, and the rural drinking water program and the water supply program for newly-built towns shall be promoted. More efforts shall be made on prevention and control of geologic disasters and ecological restoration, consolidation of damaged embankments and reservoirs and treatment of dammed lakes to ensure safety in flood seasons. We shall combine works of promotion of employment with industrial rebuilding, accelerate restoration of agricultural production facilities and resumption of agricultural products markets, and facilitate tourism industry.

The efforts on comprehensive coordination shall be heightened. We shall perfect the comprehensive coordination mechanism and solve major issues arising from after-disaster resumption and rebuilding. More efforts shall be made on supervision over implementation of policies regarding tax, finance, land, environmental protection and industry. The funds from government investment, partner assistance, society, overseas preferential emergent loans and self-raised funds of enterprises shall be used in a unified way and the use efficiency of those funds shall be improved, quality of projects shall be ensured. We shall improve partner assistance plans and do good works on handing over of projects, funds and materials. The mid-term assessment of the execution of the general plan for after-quake resumption and rebuilding shall be conducted and adjusted, supplemented and improved according to real situations in a timely manner. Researches on long-term steady development of disaster area shall be made.

9. Increase investment and implement organizational safeguards

More policy supports shall be given. The central government shall appropriate more capital to the western area and gradually increase general and special transfer payments to the western area. More percentage of the newly-established investment of the central government for increasing domestic demand shall be appropriated to the western area, mainly for fields including livelihood projects, infrastructure, ecological environment restoration and after-quake rebuilding. The investment amount shall be increased and investment structure shall be optimized, so as to promote steady and fairly fast economic and social development of the western area. The enthusiasm of both the central government and local governments shall be utilized, through government investment, to promote increase of bank loans and social investment and guide private investment in projects in line with national industrial policies.

More efforts shall be made on execution of policies and tasks. The member units of the western development leadership team of the State Council shall, according to the real situation and their functions, carry out all kinds of tasks. The National Development and Reform Commission shall proactively make comprehensive coordination, perfect policies and measures for western development and study major issues regarding western development, so as to promote steady and fairly economic and social development of the western area.

General Office of the State Council
Sept. 30, 2009

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