Dear Leaders, Experts

Ladies and Gentlemen,

According to the agenda of this meeting, I will now make a statement on Fujian's social and economic development, the implementation of its sustainable development strategy and our thought for the future.

1. Basic facts of Fujian and its economic development

Fujian Province is located in the southeast coast of China, covering a land space of 121.4 thousand square kilometers and a sea area of 136.3 square kilometers. The total population of the province in the end of 2001 standed at 34.4 million. Fujian is endowed with rich mountainous and sea resources and is one of the major timber producers in China, with a forest coverage rate of 60.5%. Its vast sea space contributes to the coastal line as long as 3,324 kilometers and a number of ideal natural harbors which include Fuzhou, Xiamen, Meizhou Bay and Sandu'ao, etc. Fujian is also facing Taiwan across the Strait and is adjacent to Hong Kong, Macao and Southeast Asia. It therefore has a very close tie with Taiwan, Hong Kong, Macao, Southeast Asia and the rest of the world in terms of cooperation and exchanges in the fields of economy and trade. Fujian is a renowned hometown for overseas Chinese and is a major ancestral home for Taiwan compatriots. There are altogether 10.33 million overseas Chinese of Fujian origin residing abroad, to be more specific, 90% of them are in Southeast Asian countries, 1 million of Hong Kong and Macao compatriots are of Fujian origin and 80% of Tai- wan residents have their ancestral roots in Fujian. Fujian is the spearhead in China's reform and opening up drive and is one of the earliest provinces opening up to the outside world. A multi-level and all -directional opening pattern has taken shape, consisting of special economic zone, economic and technological development zone, coastal open city and coastal economic opening area. Since we adopted the reform and opening up policies, Fujian has brought its advantages of rich mountainous and sea resources, abundant overseas Chinese of Fujian origin, special tie with Taiwan and favorable polices granted to special economic zone into full play, actively pushed forward its economic restructuring, constantly expanded areas opening to the outside world, maintained rapid economic growth and strengthened its overall competitiveness. The GDP of the province has grown up to hit RMB 425.837 billion yuan in 2001 from RMB 6.64 billion yuan in 1978, averaging an annual growth of 13.2%. The total economic value and GDP per capita of the province have climbed up to rank 11th and 7th respectively in 2001 from the original 22nd both in 1978. With its rapid economic development and the expanding of opening up drive, Fujian's foreign trade and economic cooperation have kept an upward momentum of growth. In the period of the 9th Five -year Plan of Social and Economic Development, the export of the province averaged an annual growth of 10.3%, the export volume in 2001 scored USD 13.926 billion. In the same period, the province has accumulatively made use of foreign capital worth USD 20.315 billion. In 2001 only, foreign capital that has been put into actual use reached USD3.918 billion. This year the province also witnessed the forceful growth in its economy. According to statistics, the GDP of the first 10 months reached RMB 357.676 billion yuan, increasing by 10.9% over the same period of the previous year. Foreign trade volume totaled USD 23.081 billion, up 26.8%, among which USD 14.096 billion went for export, a growth of 24.60% over the corresponding period last year. The contracted value of foreign investment reached USD 5.064 billion, increased by 26.1%, with a paid -in capital of USD 3.674 billion, up 14.2%. It is estimated that the growth rate of GDP this year would be about 10%.

2. Make unremitting efforts in environmental protection and achieve noticeable progress in ecological build-up

To build the province into a powerful one economically and to make people rich have always been the top task. While developing our economy, great importance has been attached to sustainable development and environmental protection, so as to improve ecological quality and to promote coordinated development of man and nature and harmonious progress of man and society in ways of marketalization, intensification, openness and sustainable development.

1) Stress the combination of environmental protection with economic restructuring and cut down the total discharge of pollutants.

To protect and build a sound ecological environment is a basic principle that is to be adhered to in the upgrade of industrial structure. In the efforts of adjusting and upgrading industrial structure, much attention has been paid to properly deal with the relationship between immediate and long- term interests, partial and overall interests, industrial development and the protection of ecological environment. By vigorously fostering and developing ecological friendly economies and the green industry with own characteristics, the sustainable competitiveness is therefore enhanced. Through economic restructuring, outdated technologies and equipment were eliminated, small enterprises with high waste of resources, heavy pollution and low profit were banned, the environmental quality is thus improved and the pollution decreased. In 2000, the total discharge of all major pollutants is controlled within the target set by the central government for the 9th Five -year Plan period and was further cut down in 2001. The reduction rates for major pollutants are as follows: 13.5% for sulphur dioxide, 19.8% for industrial dust, 14.7% for smoke and dust, 3.9% for chemical oxygen demand, 3.9% for industrial solid residue. The EIA system is carried out strictly and projects with high consumption of resources, heavy pollution and low return would not be approved. Thus, new pollutant sources are prevent from their root causes and much more environment capacity is left for development of little pollution and high return industries.

2) Attach equal importance to pollution prevention and ecological protection and make fresh progress in the protection of ecological environment.

We have conscientiously implemented the "Essentials on State's Ecological Environment Protection" stipulated by the State Council and actively protected major ecological function area, key resources development area and ecologically sound area in accordance with the principles of different guidance and protection measures for various ecological areas. We have tightened the environmental protection in towns and rural areas and put the pollution generated from livestock husbandry under control. Efforts have been made to rectify mining industry, harness effluent of breeding industry, bring the soil and water erosion under control and plant ecological forests. With its forest coverage ranking fore- front in the country, a forest ecological system has initially built up in the province. The green area in dykes along rivers and urban area reached 60% and 33.12% respectively and the per capita green space stands at 7.73 square meters. The ecological -related economy in the province develops in a steady manner. Pilot bases for green and organic foodstuff production and ecological friendly industry demonstration area are established, a batch of products are approved as green and organic food and enterprises and organizations have passed and been authorized the ISO14000. The output value form the environmental related industry totaled RMB 6 billion yuan. The city of Xiamen is awarded the title of 'International Garden City', 'State's Model City on Environmental Protection' and 'State's Garden City'. The city of Sanming is also awarded the title of 'State,s Garden City'. In addition, the cities of Fuzhou, Zhangzhou and Quanzhou are cited as 'Provincial Garden City'. The established nature reserves, tourist areas, forest parks and small-scale nature reserves in the province account for 8% of its total land mass, including 6 nature reserves at state level and another 25 at provincial level, 10 ecological demonstration areas at state level and-13 at provincial level. The Mountains of Wuyi is granted as the World Natural and Cultural Heritage by the UNESCO.

3) Efforts are exerted to tackle hot spots and knotty problems of common concern in environment and make noticeable improvement in river valley and regional environment quality.

In recent years, we have put the control of river valley, regional and industrial pollution as our most important work. Pollutant discharge of key enterprises with heavy pollution has basically satisfied the set requirement. Air and ground water quality in major cities have met the requirement of functioning area. The treatment of Minjiang River valley, emission of benzene -related fumes of shoe -making industry, dust of cement industry and smoke of ceramic industry have been completed on schedule. Achievement has been made in bringing the water environment of major river valleys of Jiulogn River, Aojiang River, Jinjiang River and Mulanxi River under control. Progress has also been made in cutting down the discharge of automobiles by ceasing the production, selling and using of doped fuel and replaced with unleaded gasoline. In 2001, 90.5% of 12 major water systems in the province has met or exceeded the requirements of Grade Three water quality standard, up 67.5 percentage point over that of 1995. Air quality in cities has improved year by year. In 2001, air quality index of 23 cities in the province is 0.61, better than the previous year by 12.8% and basically met or exceeded the requirement for Grade Two air quality National Standard. The acid content in precipitation and acid rains have dropped and district and communications noise have eased.

4) Strengthen legal system build -up and tighten law enforcement related to environment.

We have adhered to the principle of protecting environment, using resources and controlling pollution in accordance with the law. We have promulgated and revised "Laws and Regulations on Environmental Protection of Fujian" which includes compulsory measures of law enforcement, the first one of its kind in provincial legislation among all the provinces in the country. Local laws and regulation such as "Regulations on Pollution Prevention and Ecological Protection of Jiulongjiang River Valley", Regulations on Protecting the Source of Aojiang River Valley" and Regulatiuons on Nature Reserves of Fujian' have been enacted. Campaigns such as 99' Environmental Protection, 2000 Minjiang River Environmental Protection had been carried out. Specialized movements of investigating and punishing severely environmental related malpractice in 2001 and that of checking the resurgence of such malpractice in 2002 have been implemented. Enterprises with heavy pollution are closed down and those who can not satisfy the requirement are to be ceased production for rectification. Malpractice that would jeopardize environment and ecosystem will be cracked down according to law. '110' social joint service concerning environmental protection and hotline '12369' are put into operation for investigating and punishing illegal cases and tackling environmental issues, therefore general public's legitimated rights on environment are safeguarded.

3. Bring the economic and social sustainable development forward in a down -to-earth manner under the guidance of the spirit of the 16th CPC National Congress

The just concluded 16th CPC National Congress agrees with the objectives of building a well-off society in an all round way with sustainable development as a key element. The Party congress put forward that we shall take the civilized development way of growing production, better- off livelihood and sound ecology with constantly increasing capability of sustainable development, improving ecosystem, raising effectiveness in resource using and harmony between man and nature. This has an important bearing in our implementation of sustainable development strategy. Under the guidance of the spirit of the l6th CPC national Congress and the" Three Representatives", we shall carry forward the sustainable development strategy, strive for new superiority in coordinated development, further improve aggregated economic power and build a well-off society in an all round manner by implementing the three key strategic passages for development set by CPC Fujian Provincial Committee, namely, to expand cooperation between mountainous and coastal areas, to establish links with provinces in the interior of China and to further open to the outside world.

1) Clarify the aim and task of ecological construction.

We should correctly handle the relationship between economic development and environmental protection, set up a scientific ideology of development, build a favorable environment and improve the ability of the economic and social sustainable development in earnest. Starting from the actual situation of the environment, the natural resources and the economic and social development in Fujian, the CPC Fujian Provincial Committee and the Provincial Government of Fujian have made a strategic disposal of constructing Fujian as an ecotype province, worked out a construction planning compendium of an ecotype province, and fixed on an overall aim of the construction of an ecotype province. Going through three stages of starting, promotion and improvement, we will establish six major systems as follows: a harmoniously developing economic sys- tem of eco- beneficial type, a resource- guarantee system for inexhaustible use, a natural and harmonious living environment system for township residents, a rural ecosystem in virtuous circle, a stable and reliable eco -safety insurance system, and an advanced and efficient system of scientific and educational support and management and decision-making. Through the following 20 years of great efforts, we will make Fujian into a sustainable developing province with an eco -beneficial developed economy in which the people and the nature coexist in harmony, a beautiful and comfortable living environment for both urban and rural residents, inexhaustible- using natural resources, a thoroughly optimized and civilized ecosystem, and a charming landscape.

2) Strengthen the program support for ecological construction.

Encircling the six major systems for eco -type province construction, we have put forward 98 influential programs of 34 varieties, which will be executed by emphasis during the Tenth-Five Period. The total investment of the programs will hit USD 71.6 billion, including USD 37 billion is to be put into operation during that Period. Inside the eco -beneficial economic system, there are a safety production project for agricultural products, three eco- industrial zone construction projects, and northwestern Fujian green eco- tourism projects, etc. Inside the resource -guarantee system, there are the project of national forest construction for public benefit in 57 counties of Fujian Province, oceanic natural protection zone constructing project in 5 cities and the project of eco -restoring of the major mining areas in the province, etc. Inside the system of living environment for township residents, there are projects of 19 harmless treatment spots for urban rubbish, 33 treatment factories for urban sewage and the greening-up of the urban gardens, etc. Inside the system of rural eco-environment, there are projects of the promotion of the residential use of 150,000 methane-generating pits, the construction of 300 sites of energetic environment, the treatment of a 4,000 square - kilometer area of water- loss and soil ' erosion, and a 3,000- hectare area of mountain-collapsing erosion, and the treatment of "the white spots in green mountains" and restoring the vegetation, etc. In- side the system of ecological safety protection, there are projects of the embankment of "five rivers and one stream", the fourth session of coastal shelter- forests, the first session of the riverside ecological forests protection, and the third session of the medium - size pre - warning system of disastrous weather, etc. Inside the system of scientific and educational support and management and decision- making, there are significant projects of ecology- related scientific and technological strategic pass like the warehouse for oceanic living fungus, the network for the monitoring and examining of eco- environment and information system, etc. We will make adjustments and supplement to the projects in time according to the requirements of the changing situation.

3) Forge and enlarge environment- friendly enterprises.

We are constructing a well-off society in an all -round way, so we will supply the environment -friendly enterprises with wider space for development. We will grasp the favorable opportunity, and offer more and stronger support so as to accelerate the development of the environment -friendly enterprises in the province. We will encourage a series of producers of environmental protection equipments in air purification, water treatment and harmless treatment of rubbish, to have the market as the guidance and develop a environment- friendly industry in which the scientific and technological content is high, the economic benefit is great, the expense of resources is low, the environmental pollution is little and the advantage of human resources is fully exploited. We will put emphasis on developing environment-friendly products with the prevention and treatment technology of polluted water and air, the treatment and storing of waste and the production of environmental protection monitoring and examining meters and instruments as the core. We will develop the technology for desulphurization dust - clearance of the smoke and steam emitted by coal - generating power stations, the treatment of urban sewage, the treatment of medical waste water, the concentration treatment of solid waste and the treatment of urban rubbish, and the equipment like catalytic purifying instrument for car tail exhausts. We will organize to execute a series of demonstration projects of environ- mental protection, and reform the traditional industries by using new hi-tech and "the Green Technology" to develop new energy and recyclable energy. In the meantime, we will vigorously explore the road of industrialization and steer the environment-friendly enterprises and all kinds of investment subjects into an active participation of the construction of infrastructures for urban environmental protection. In recent years, we have put out policies of the industrialization of the treatment of urban rubbish and sewage, so as to arouse the enthusiasm of environment- friendly enterprises and all kinds of investment subjects and this has made preliminary achievements. We will promote this method and constantly put out new policies to make the environmental protection industry into the investment focus of environment -friendly enterprises and all kinds of investment subjects, and change the old mode of sole investment and operation of the government into a new structure of pluralization, market operation and corporate management.

4) Promote the coordination and harmony between mankind and nature.

We will have the improvement of environmental quality and the realization of the harmonious coexistence of mankind and nature as our main task when executing sustainable development, We will introduce and absorb circling economic thoughts, aim at the establishment of a scientific and reasonable circling economic system. Centered on strategic adjustments to the economic structure, we will improve the level of the development of traditional industry by clean production. We will accelerate the adjustments to the structure by washing out the backward productivity, and encourage the rising of regional industrialization by building eco-industry demonstration gardens. We will strengthen the comprehensive competitiveness of agricultural products by developing eco -agriculture, and improve the taste of tourism industry by developing eco - tourism resources, so as to develop the eco-economy vigorously. Sticking to the basis of mankind, we will build living eco -environment and improve the taste of urban and rural environmental construction by constructing "International Garden City", State's Model City of Environ- mental Protection, eco- city, eco- demonstration zone, eco -community and eco-township, etc. We will accelerate the pace of the construction of the infrastructures for the treatment of sewage and rubbish, etc. Up to 2005, there will be at least one sewage treatment factory and one rubbish harmless treatment site in every municipality of the province, and the urban sewage treatment rate will reach 45% and the rate of the rubbish harmless treatment will be over 90%. We will strictly execute the controlling goals of environmental quality and the total emission of pollutants, make great efforts in the comprehensive treatment of the water pollution around major rivers and the ecological destruction and consolidate and improve the achievements of the treatment of industrial pollution. We will promote the establishment of civilized and advanced eco - culture, forge public eco -civilization ideology, further dredge the ditches of the publication of eco -environment information, perfect the regulation of public report, and protect the public right of being informed of the environmental situation in accordance with law.

5) Guarantee the safety of the eco-environment.

The protection of environment and resources, the maintenance of eco- logical virtuous circle and the guarantee of eco -environment safety have gradually become the necessity of the modern drives in the province. We will adopt practical measures and execute regional division of protective strategy, firmly control the exploitation of natural resources and guarantee the inexhaustible usage of resources through a complete execution of "Essentials on State's Ecological Environment Protection". We will accelerate the construction of forest ecological projects, improve the ability of self -restraint of water and soil, strengthen the treatment of water and soil loss and restore vegetation and set up new vegetation. We will improve the comprehensive treatment of the water pollution around the Minjiang River, the Jiulongjiang River, the Jinjiang River, Aojiang River, the Tingjiang River, the Mulanxi River and the Jiaoxi River and the ecological destruction, and promote the environmental protection and comprehensive treatment of the major sea areas of Meizhou Bay, Xiamen Bay and Fuzhou Port and major munipalities like Fuzhou, Xiamen, Quanzhou and Zhangzhou. We will also perfect the disaster pre-warning and prediction system and build up an eco -safety protection system.

6) Implement the regulation of governmental, leadership commitment. Governments of all levels will put sustainable development into the regulation of goal commitment for executive chiefs, forming a working structure in which there is level-division management of the province, the cities and the counties, the coordination of different departments, the cooperation between the higher and lower levels and a virtuous circle, thus realize the implementation of commitment, measure and investment. We will categorize the capital for eco- protection and construction into the budget of the very level, and establish the regulation of co -seat meeting for the usage of substantial eco -environment capital, so as to have an overall control of the usage of eco -environment construction and protection capital. We will accelerate the establishment of a pluralization investment system to promote the eco -construction and environmental protection developing towards industrialization. We will strengthen the establishment and execution of laws, and have severe punishment on the illegal deeds connected with the environment and the wrongdoings of ecological destruction, and thus put eco -construction onto the road of ruling-by-law. Furthermore, we will make full use of all kinds of effective publicity media and methods, improve the ideology of sustainable development among governmental officials of all levels and the overwhelming mass, motivate and exploit the initiative and creativity of the great mass, and make the departments of all levels and the whole society take part in the construction of ecotype province consciously.