Government work report includes automobile

　　The third session of 11th National People’s Congress opened at the Great Hall of People in Beijing, capital of China, at 9 am, March 5, 2010, hearing and deliberating the government work report delivered by Chinese Premier Wen jiabao.

　　Chinese Premier Wen referred to hot issues related to automobile industry 23 times on the report of the work of the government.

　　i. Review of Work in 2009

　　1. Strengthening and improving macro-control and promoting steady and rapid economic development.

　　Our policies to encourage consumption covered more areas, were stronger and benefited more people than ever before. The central government provided 45 billion Yuan in subsidies for rural residents to purchase home appliances and motor vehicles including motor bikes. Part of the subsidies also supported trade-in old motor vehicles and home appliance for new ones and purchasing agricultural machinery and tools, we halved the purchase tax on small-displacement automobiles. We reduced or exempted taxes on buying and selling homes to support the purchase of homes to be used as their owners’ residences.

　　Throughout the year 13.64 million motor vehicles were sold, an increase of 46.2%; commodity housing sales amounted to 937 million square meters, up 42.1%; and total retail sales of consumer goods increased 16.9% in real terms. Consumption played a much bigger role in fueling economic growth.

　　2. Vigorously carrying out economic restructuring, and shoring up the foundation for our long-term development.

　　We intensified industrial restructuring. We Formulated and implemented a plan for restructuring and invigorating top ten key industries. We encouraged enterprises to accelerate technological upgrading and provided 20 billion Yuan to support 4,441 technological upgrading projects. Further progress was made in mergers and reorganization in key industries.

　　We accelerated the implementation of major national science and technology projects and spent 151.2 billion Yuan of central government funds on science and technology, an increase of 30%. We vigorously supported the widespread of domestically innovated products and the development of emerging industries, such as clean energy and the third generation mobile communications. We vigorously strengthened infrastructure development; Put 5557 kilometers of Newly-built railways lines into operation, opened 4719 kilometers of expressways to traffic, accelerated urban rail development and built, renovated, or expanded 35 civil airports, we increased the installed power-generating capacity by 89.7 kilowatts, began supplying gas through the western section of the second line of the project for shipping natural gas from west to east, accelerated construction on the South-to North Water Division Project and began reinforcing 6183 dangerous reservoirs.

　　3. Steadfastly deepening reform and opening up and constantly improving the institutions and mechanisms conducive to developing scientifically.

　　We accelerated reform in key areas and links. We comprehensively carried out VAT reform. The reform of the prices of the refined oil products and taxes and fees on them was implemented smoothly, and a new mechanism for pricing them worked well.

　　ii. Major targets for 2010

　　This year, we will focus on the following 8 areas.

　　1. Exercising better macro-control and maintaining steady and rapid economic development.

　　Regarding revenues, last year’s one-off measures to increase revenues will either not be repeated or will be decreased. We also need to continue to implement the policy of structural tax reductions; consequently, revenue will not increase very quickly.

　　Second, we will continue to implement the structural tax reduction policy to expand domestic demand and promote economic restructuring.

　　We will strictly control regular expenditures and do all we can to reduce public spending.

　　We will implement a credit policy that guarantees credit in some areas and limits it in others, increase supports for important areas and weak links; effectively, alleviate the difficulties farmers and small business have in obtaining financial and strictly control loans that are energy-intensive, highly polluting or saddled with overcapacity. We will strengthen post-loan supervision and ensure that loans are used to support the real economy.

　　We will increase consumer credit. We will strengthen infrastructure, such as the logistics system, and vigorously develop e-commerce. We will overhaul and standardize markets to create a convenient, safe, worry-free environment for consumers. We will continue to implement and improve all of our policies and measures for encouraging consumption.

　　We will improve the policies for getting consumers to trade-in old motor vehicles and home appliances for new ones and getting rural residents to buy motor vehicles and set the purchase tax for small displacement automobiles at 7.5%. We must implement those policies and measures, do meaningful work and do it well, and make sure the benefits reach the people.

　　We will strengthen and improve the supervision of investment, strictly enforce market entry standards and industrial policies concerning land use, energy conservation, environmental protection, and safety, and effectively prevent redundant construction.

　　2. Accelerating the transformation of the pattern of economic development and adjusting and optimizing the economic structure.

　　We will continue to promote restructuring and revitalization in key industries. First, we will intensify technological upgrading, we will effectively use funds for technological upgrading to guide enterprises in developing new products, saving energy and reducing resource consumption. Second, we will encourage mergers and reorganization of enterprises. We will break industry monopolies, remove regional blockades, support superior enterprises in acquiring ones in financial difficulties, and close down backward production facilities more quickly. Third, we will comprehensively raise products quality. We will guide enterprises to improve their quality management systems, focusing on bands, standards, service and performance, and to enhance their sense of social responsibility. We will effectively strengthen the market oversight and credibility systems and strive to raise the quality of China’s products to a new level.

　　We need to vigorously develop new energy sources, new materials, energy conservation and environmental protection, biomedicine, information networks and high-end manufacturing industries. We will make substantive progress in developing motor vehicles powered by new energy sources and in integrating telecommunication networks, cable television networks and the internet and accelerate research and development in and application of the Internet of Things. We will also increase investment in and policy support for emerging industries of strategic importance.

　　We will strive to conserve energy and reduce emissions. We will energetically promote energy conservation and raise the efficiency of energy consumption, especially in industry, transportation and construction.

　　Fourth, we will actively respond to climate change. We will work hard to develop low-carbon technologies, promote application of highly-efficient, and energy-conservation technologies; develop new and renewable energies, and intensify development of smart power grids.

　　4. Fully implementing the strategies of reinvigorating china through science and education and strengthening the nation through human resources development.

　　We will accelerate the development of human resources. Talented personnel are the primary resources. We need to develop all types of human resources in a coordinated and all-around way, with the focus on producing innovative scientists and engineers, and experts and professionals in key areas of economic and social development and energetically attract high-caliber personnel from overseas.

　　7. Firmly advancing reform and further expanding opening-up

　　We will improve the export mix, stabilize exports of labor intensive products, increase exports of electromechanical products as well as new-and high-technology products, energetically develop trade in services and service outsourcing, and strive to cultivate exports of brand-name products and develop marketing networks, and continue to strictly limit exports of resource products and products whose production consumes large quantities of energy and resources or is highly polluting.

　　We will promote coordination between using other countries’ investment in China and making Chinese investment overseas. We will optimize the utilization of foreign investment, encourage more foreign investment in high-end manufacturing, new- and high-technology industries, modern service industries, and the new energy, energy-conservation and environmental protection industries and encourage multinational corporations to set up regional headquarters and other functional agencies in China, and encourage China and foreign enterprises to strengthen cooperation in R&D.

　　We will encourage the use of foreign investments for restructuring, upgrading and merging, and reorganizing Chinese companies, and quickly establish a security review system for mergers and acquisitions involving foreign investment. We will work to attract both investment and talent from overseas. We will guide foreign investors to transfer and increase their investments to the central and western regions.

　　We will accelerate the implementation of the “go global” strategy, encourage Chinese industries whose products are in demand in foreign markets to transfer their production capacity overseas in an orderly manner, support qualified enterprises to carry out overseas mergers and acquisitions; deepen mutually beneficial cooperation concerning foreign resources, and improve the quality of overseas contacted projects and labor service cooperation.

　　We will further simplify examination and approval procedures, and give enterprises decision-making power over their overseas investments. Enterprises that have “gone global” should operate in accordance with the law, avoid risks, prevent vicious competition, and safeguard the country’s overall interests and good image.

　　8. Working hard to build a service-oriented government that people are satisfied with.

　　We will run the government diligently and frugally, oppose extravagance and waste, and constantly reduce administrative costs. We will strictly control the construction of office buildings for Party and government bodies, prohibit extravagant remodeling of their office buildings, accelerate the reform of the regulations concerning official receptions and the use of official cars, and firmly restrict the use of public funds for traveling abroad. (Translator: Qinghua/serena)

　　See original Chinese report please clicks:

　　http://auto.sohu.com/20100305/n270612014.shtml