The basic role of the market in the allocation of resources should be fully exploited. The law governing economic development should be followed. International practice will be taken into consideration. The way government functions will be changed and the macro-regulation will be improved to create a sound environment for economic development.

Speeding up efforts to develop the legal system. Legislative plans of the National People's Congress will be conscientiously implemented in drafting laws. The Insurance Law will be amended as soon as possible. An Anti-Monopoly Law will be drafted. A Law on the Prevention and Control of Radioactive Pollution will be submitted to the National People's Congress for examination and approval. We will formulate or revise related administrative statutes, rules and regulations as soon as possible and review local government statutes, rules and regulations and other regulation-related documents, taking into consideration the requirements for developing the socialist market economy, the rules of the World Trade Organization and our commitments to that organization. We will continue to draw up administrative statutes and regulations to rectify and standardize market order. All authorities should follow the law in carrying out their administrative duties and perform their functions strictly within the jurisdiction and according to the procedures specified in laws and regulations.

Improving the means for exerting macroeconomic regulation. The government should place the need to improve economic regulation, market supervision and administration, social management and public services on its agenda. It will exercise indirect regulation of the economy mainly through policy guidance and the release of information, gradually eliminating direct interference in microeconomic activities. Market supply and demand will be regulated by means acceptable under WTO rules. Administration of import quotas and tariff rate quotas (TRQ) for major goods will be effectively exercised. Anti-dumping, countervailing and safeguard measures will be improved. Adopting international standards where appropriate, we will do a good job in inspection, quarantine and disease monitoring and control work in the areas of health, security, sanitation and environmental protection.

Drastically reducing the number of matters subject to administrative examination and approval. Macroeconomic regulatory departments need to step up the change in the way they function. Administrative examination and approval powers that are not in conformity with the effort to separate the functions of government from the management of enterprises and divest institutions of their administrative functions, as well as powers that hamper market development and fair competition, will be resolutely abolished. It is essential that certain matters remain subject to administrative examination and approval. In such cases, the relevant powers will still be revised, red tape will be eliminated and the work style, efficiency and transparency will all be improved to curb corruption by addressing root causes.

Balancing total supply and demand in response to market changes. Measures to monitor supply and demand of major goods will be strengthened. Greater use of economic means is required in order to more effectively regulate total demand and supply to maintain a proper balance. The balance between revenue and expenditures will be maintained through budgets and taxation. We need to ensure proper liquidity for the credit funds of banks through interest rates. We need to maintain a balance between the supply and demand of major goods through pricing and goods and material reserves.

Rectifying and standardizing order in the market. Efforts to manage and rectify the markets for medicines, foodstuffs, petroleum products, dangerous chemicals and other major goods will be strengthened. Restrictions and barriers to trans-regional marketing and investment will be eliminated and banned. We will continue to curb illegal and criminal activities such as the manufacture and marketing of fake or shoddy goods, focusing on goods harmful to people's lives or health. We will prosecute according to law crimes such as tax evasion, tax fraud, pyramid schemes and smuggling, as well as unlawful practices such as falsification of bills, certificates and accounts. An aggressive effort will be made to combat financial fraud, illegal fundraisings, rigging of the securities market and insider trading and malicious evasion of debt repayment. Special campaigns to rectify prices and charges will be continued. We must put an end to price competition irregularities, focusing efforts on combating price fraud. Order in public bidding for key projects will be rectified and standardized. A system for ensuring good credit among members of society will be developed. Safety measures will be strengthened in key industries as soon as possible to prevent serious accidents.

Fellow Deputies,

Successfully carrying out the economic work for this year will be an arduous task, but it is of great importance. Accepting the supervision and guidance of the National People's Congress and conscientiously soliciting comments and suggestions from the National Committee of the Chinese People's Political Consultative Conference is an important way to ensure success in all economic work. Let us rally more closely around the Party Central Committee with Comrade Jiang Zemin at the core, hold high the great banner of Deng Xiaoping Theory and earnestly implement the important principle of "The Three Represents,'' make pioneering progress and work hard in a down-to-earth manner with full confidence to accomplish all our tasks for economic and social development!

(Xinhua News Agency March 17, 2002)