1) The pace of independent innovation will be accelerated. We will carry out supporting policies and detailed rules for the implementation of the Outline of the National Long- and Medium-Term Program for Scientific and Technological Development. We will actively promote the development of major scientific and technological infrastructure and implementation of the Knowledge Innovation Program, and make a strong start on major state projects such as those to develop large aircraft, advanced pressurized-water reactors and high temperature air-cooled reactors. We will make steady progress in implementing the national science and technology program, focusing on a number of major projects and initiatives to save energy, reduce emissions, improve the industrial structure, build a new countryside and enhance the people's wellbeing. We will develop a group of national engineering laboratories and national engineering centers to do work in information technology, biotechnology, energy conservation and emission reduction, and support the building of a group of state-level technology centers in enterprises. Trials of budgetary support for venture capital investments will be expanded, and a portion of the budget revenue from the operation of state capital will be used to support independent innovation in enterprises. We will encourage and guide enterprises to increase R&D expenditures. We will promote cooperation among enterprises, universities and research institutions and support development of innovation-based enterprises. A platform to support independent innovation geared toward enterprises will be developed to support technologies, standards and brand names for which we hold intellectual property rights. We will support basic research, research in cutting-edge technologies and research in technologies for public benefit applications. Protection for intellectual property rights will be strengthened.

2) Great efforts will be made to develop high-tech industries. We will be promoting greater application of major advances such as 3G mobile telecommunications, national standards for land-based digital television broadcasting and next generation Internet, and continuing to carry out key projects to develop industrial applications for high technologies such as new-type displays, broadband telecommunications and networks, biopharmaceuticals and new materials. We will develop a group of high-tech industrial bases in ten areas, including information services, biotechnology and new energy sources. We will work energetically to develop pilot demonstration projects for IT application.

3) We will promote the transformation of big and bloated industries into strong and efficient industries. Independent research will be carried out to develop major equipment and key components and parts, focusing on key areas such as large, clean, high-efficiency power generating units, high-end digital machine tools and basic manufacturing equipment. We will energetically develop the modern energy industry and raw materials industry, increase the consumption of renewable energy sources as a proportion of total energy consumption, and accelerate the coalescing of companies engaging in exploitation of mineral resources. We will accelerate the transformation and upgrading of traditional industries, guide and promote mergers and reorganizations among enterprises in the iron and steel, automobile, cement, coal, papermaking and equipment manufacturing industries and encourage the development of internationally competitive conglomerates.

4) We will improve the environment for the development of the service industry. We will be formulating and implementing specific policy measures to accelerate development of the service sector. In service industries that are encouraged by the state, enterprises will be charged basically the same electricity and water rates as manufacturing industries. Trial reform of the service sector will be carried out in certain industries and in certain regions with the necessary conditions. Procedures for opening service businesses will be streamlined. The government will guide non-government investment into key areas and weak links in the service industry.