3. Promoting economic adjustment and changing the pattern of development.

We will continue to boost domestic demand, adjust the balance of investment and consumption, and promote the shift from the pattern of economic growth that relies mainly on investment and exports to one that relies on a balanced combination of consumption, investment and exports. It is essential to appropriately control the scale of fixed asset investment and improve the investment structure. We will maintain strict control over the availability of land, credit and market access, and pay particular attention to strengthening and standardizing supervision of new projects to ensure they meet all the conditions for launching. Haphazard investment and unneeded development projects in energy intensive and highly polluting industries and industries with excess production capacity will be resolutely stopped, and market access will be tightened and capital requirements will be increased for industries whose development is discouraged. Work on illegal projects will be resolutely stopped. We will increase support for weak links and key areas in economic and social development and give more support to the central and western regions. We must tighten control over the amount of land used for development projects, especially for industrial purposes, and hold the total amount of land used this year to last year's level. We must respond to new conditions and situations by improving guidance, regulation and oversight for all types of investment activities in the country.

We will continue to promote independent innovation as the central link in efforts to change the pattern of development. We need to diligently implement the Outline of the National Program for Long- and Medium-Term Scientific and Technological Development and fully launch and implement key national projects, including those to develop large aircraft, control pollution in bodies of water, and develop large-scale oil and gas fields and coal seam gas operations. We will carry out plans for basic research, high-tech research, and research to provide scientific and technological support for development. We will work to make major breakthroughs in key technologies for producing vehicles powered by new energy sources, developing high-speed railway transport and saving water in industries. We will promote development of the national innovation system, focusing on building a number of national laboratories, national engineering centers, platforms to support enterprise innovation and enterprise technology centers to strengthen China's science and technology infrastructure. We will deepen reform of the management system for science and technology and coordinate and improve resource distribution. The central government will spend 113.4 billion yuan on science and technology in 2008, a year-on-year increase of 13.4 billion yuan. We will improve and implement the policy to support independent innovation, get enterprises to fully play their role as the main parties responsible for technological innovation, and encourage and guide them to increase investment in R&D. We will integrate the efforts of enterprises, universities and research institutes and develop innovative enterprises. Government procurement of products produced through independent innovation will be increased. Trials in the use of venture capital will be expanded. We will implement the intellectual property rights strategy. We will expand scientific and technological cooperation with other countries.

We will promote improvement and upgrading of the industrial structure. We will keep to the new path of industrialization with Chinese characteristics and promote integration of IT application with industrialization. We will work to develop new- and high-technology industries, reinvigorate the equipment manufacturing industry, upgrade traditional industries and accelerate the development of service industries, particularly modern services. We will continue the major projects to apply high technologies in the production of new-type displays, broadband communications and network equipment, and biomedicine. We will get national new and high technology development zones to fully play their role in pooling resources, guiding development and boosting development in surrounding areas. We will promote domestic R&D and production of important equipment and key spare parts and components, with the focus on key areas such as large clean and highly efficient power generating units, high-grade digital machine tools and basic manufacturing equipment. We will give higher priority to geological work to improve prospecting for and exploitation of natural resources. We will strongly develop the modern energy and raw materials industries and better integrate the transportation system.

We will promote balanced development among regions. We will extensively promote the large-scale development of the western region, and launch a number of key projects and support the development of key areas on a priority basis. We will continue to protect natural forests, prevent and control desertification, and reverse and prevent the development of stony deserts, and will implement a follow-up policy to consolidate progress made in converting retired farmland to forests. We will implement the plan to reinvigorate northeast China, and support the development of advanced equipment manufacturing and modern agriculture and the economic transformation of areas depending on resources that are now exhausted. We will formulate and implement a plan to boost development of the central region and implement and improve relevant policies. We will encourage the eastern region to lead the country in development and improve its international competitiveness. We will give more support to old revolutionary areas, ethnic minority areas, border areas and poor areas to help them develop. We will adopt and implement a plan and policy for development priority zones.