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TIANJIN, Feb. 16 (Xinhua) -- Chinese Premier Wen Jiabao went on a morale boosting tour in the northern port municipality of Tianjin, an industrial hub near Beijing, Sunday and Monday. Wen talked with textile workers, steel makers, tire manufacturers and students during the tour to see how the city is weathering the global financial crisis. Chinese Premier Wen Jiabao (L Front) talks with workers as he visits an iron and steel factory in Tianjin, north China, Feb. 15, 2009. Premier Wen made an inspection tour in Tianjin on Feb. 15-16At the Tianjin Tianfang Investment Holding Co., a textile firm, company chairman Liu Baogen told Wen January sales increased 0.3 percent year on year and orders have been secured till March. Wen said the textile industry is a pillar of China's economy. He offered three suggestions to the sector: Adjust the product structure according to domestic and overseas demand; increase corporate competitiveness by lifting product quality and reducing costs; explore sales in both the domestic and overseas markets. Chinese Premier Wen Jiabao (L) shakes hands with a student as he visits Nankai University in Tianjin, north China, Feb. 15, 2009. Premier Wen made an inspection tour in Tianjin on Feb. 15-16.The Premier also visited a watch maker, an auto molding company, the construction site of an ethylene and refinery project and an animation technology firm. Wen told employees to explore the market and look for new opportunities against the ongoing global financial crisis. He also went to see students at Nankai University, the most reputed college in Tianjin. He reassured them government agencies would do their best to find them jobs.

BEIJING, April 5 (Xinhua) -- China's cement production expanded 10.3 percent year on year to 159 million tonnes in the first two months, amid the booming fixed-asset investment, data released by the Ministry of Industry and Information Technology (MIIT) have shown. The growth rate was 6.8 percentage points higher than that for December, as the fixed-asset investment accelerated due to the government's 4 trillion yuan (584.8 billion U.S. dollars) stimulus package, according to the MIIT data released on Friday. The wholesale price was 284 yuan per ton, 5 yuan cheaper than the price peak in November, but 27.8 yuan higher than that for January. China's urban fixed asset investment rose 26.5 percent year on year to 1.027 trillion yuan (150.35 billion U.S. dollars) in the first two months, as the government's stimulus plan propped up construction of housing and railways. MIIT figures showed that the output value of the building material sector rose 14 percent year on year in the January-February period, two percentage points higher than that for December. The figures were calculated based on the comparable working days in the first two months, since China's Lunar New Year holiday fell in February last year, but in January this year. Zhu Hongren, official with the MIIT said the building material sector was back on track after the stimulus plan showed effect. However, the excess production was still prominent, and efforts must be made to eliminate outdated capacity.

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BEIJING, March 22 (Xinhua) -- Chinese Vice Premier Li Keqiang said here Sunday China is confident and capable of achieving its 2009 economic targets and will strengthen cooperation with the international community to fight the global financial crisis. Despite the financial crisis impact that increased difficulties for economic operations, "the fundamentals of Chinese economy and its good outlook in the long term have not changed," said Li at the opening of the China Development Forum 2009. China has set an 8-percent target for annual economic expansion this year after diminishing foreign orders dented exports and slowed growth to a seven-year low of 9 percent year-on-year in 2008. To boost domestic consumption and growth, the government will exert itself to tackle issues of immediate concern to ordinary Chinese citizens such as employment, education, health care, housing and environmental protection, said Li. Chinese Vice Premier Li Keqiang addresses the opening ceremony of the China Development Forum 2009 in Beijing, capital of China, March 22, 2009 The country will speed up the building of a social security system covering both urban and rural residents and gradually perfect the social safety net that guarantees people's basic livelihood, he said. "This helps adjust income distribution and raise people's spending capabilities." In addition, Li pledged stronger moves in reforming pricing, taxation and financial mechanisms to remove "institutional barriers" on the way of development. Reform plans must be well-implemented, said Li. They included an 850 billion-yuan (124 billion U.S. dollars) medical reform plan and a comprehensive value-added tax (VAT) reform to cut enterprise and individual burdens by approximately 500 billion yuan this year. Li also promised to maintain a stable scale of foreign trade and use of foreign capital, saying China will further open up and make use of markets and resources both at home and abroad. China's foreign direct investment fell for the fifth consecutive month in February to 5.83 billion U.S. dollars, down 15.81 percent year-on-year. Its foreign trade was 124.95 billion U.S. dollars last month, down 24.9 percent year-on-year. "While managing its own affairs well, China is willing to join hands with other countries and play an active role in international cooperation against the financial crisis," said Li. The continuous growth of China's economy not only concerns the wellbeing of 1.3 billion Chinese but is also a great contribution to the world economy, he told the forum. He called on all countries to take actions together to promote future growth of the world economy, saying the crisis should bring about "profound thinking about the world economic development and the human kind's future destiny". People of insight in all countries should dig the deep roots of the global financial crisis and explore effective ways of preventing the crisis from spreading and avoiding a replay of such crises, said Li. The China Development Forum 2009 runs in Beijing from Saturday to Monday with the theme of China's Development and Reform in the Global Financial Crisis.

CARACAS, Feb. 17 (Xinhua) -- Visiting Chinese Vice President Xi Jinping delivered a keynote speech at a seminar here Tuesday, elaborating on bilateral ties, cooperation and common development between China and Venezuela. BRIGHT FUTURE FOR BILATERAL TIES In his speech at the opening ceremony of a seminar attended by entrepreneurs from both China and Venezuela, Xi said bilateral ties have seen comprehensive and fast growth since the establishment of diplomatic ties 35 years ago, particularly after the two countries built their strategic partnership for common development in 2001. Chinese Vice President Xi Jinping makes a speech at a business seminar in Caracas, Venezuela, Feb. 17, 2009. Xi arrived in Caracas Tuesday for an official visit to Venezuela. Both sides have enjoyed close high-level exchanges, strengthened mutual political trust and fruitful cooperation in all areas, he said. Venezuela has become China's fourth biggest oil provider and fifth largest trade partner in Latin America, with bilateral trade volume reaching a record 9.85 billion U.S. dollars in 2008 -- a year-on-year increase of 68.2 percent, said Xi. He noted that the strengthening of friendly, mutually beneficial cooperation is in keeping with the fundamental interests of both peoples. It is also conducive to the common development of the two countries as well as to relations between China and Latin America as a whole. Chinese Vice President Xi Jinping (1st L) talks with Venezuelan President Hugo Chavez (1st R) at a business seminar in Caracas, Venezuela, Feb. 17, 2009Xi said he had held "very fruitful talks" with Vice President Ramon Carrizales on Tuesday. "We both are very enthusiastic and determined to develop friendly cooperation between our two countries." To that end, Xi proposed that both China and Venezuela focus on the following four aspects: First, both nations should focus on common development and boost mutual political trust. China and Venezuela should view each other from a strategic perspective and adhere to the principles of mutual trust, mutual assistance, reciprocity and mutual benefits. Chinese Vice President Xi Jinping (L) shakes hands with Venezuelan President Hugo Chavez at a business seminar in Caracas, Venezuela, Feb. 17, 2009"We should reinforce political dialogue, broaden strategic common grounds, deepen mutual political trust, constantly enrich the contents of strategic partnership, and promote a long-term stable reciprocal cooperation in an all-around way," the Chinese vice president said. Secondly, he said the two countries should further improve their cooperative mechanism and upgrade cooperation. This mechanism, namely the Sino-Venezuelan inter-governmental commission founded eight years ago, "has played an active role in communication and collaboration, under which great progress has been made in cooperation in all areas," said Xi. He expressed hope that the commission would continue to play its guiding and coordinative role in laying the groundwork of pragmatic cooperation and opening new fields of cooperation. He also proposed setting up a council for entrepreneurs from both countries. Thirdly, Xi said China and Venezuela should boost cooperation in energy and finance. Energy cooperation is a priority and constitutes an important part of bilateral cooperation, he said, expressing hope that the two sides would make a joint effort to push forward an all-around energy partnership. Xi also said that both nations had agreed to increase their contributions to a joint fund to finance projects in either country. Finally, Xi said the two countries should explore more fields and channels for cooperation. Apart from energy cooperation, they should better tap the cooperation potential in agriculture, infrastructure and high-tech, as well as promote projects in the housing, railway, telecommunication and electric power sectors. "We deeply believe that through concerted efforts, China and Venezuela will surely have a bright future of cooperation," Xi said. BETTER COOPERATION AND COMMON DEVELOPMENT The Chinese vice president said the scope and pace of cooperation between China and Latin America has reached an "unprecedented" level since the beginning of the new century. Bilateral trade reached 143.39 billion U.S. dollars in 2008, 39.7 percent up from the previous year and 10 times that of 2000, Xi noted. Meanwhile, mutual investment has been growing with areas of cooperation being expanded, he said, adding that trade and economic cooperation has shown excellent prospects for all-around development. China, the largest developing country in the world, is ready to join hands with Latin America, one of the world's major developing regions, to push forward their cooperation and raise it to a still higher level, he said. China and Latin American nations -- whose combined population makes up a fourth of the world's total -- are all at a crucial stage of socio-economic development, he said. Under the current circumstances, while standing up to the serious challenges brought about by the global financial crisis, one should not lose sight of the new emerging opportunities for all-around cooperation between the two sides, he said. The vice president put forward a four-point proposal for strengthening all-around cooperation for common development. First, he said efforts should be made to promote mutual political trust, bearing in mind the importance of long-term development of friendly cooperation. China is ready to maintain high-level visits and contact with Latin American nations and favors increased bilateral understanding and support on issues of mutual concern, he said. Both sides should strive to improve the existing bilateral and multilateral mechanisms of political consultation and dialogue and coordinate cooperation in various fields from a strategic height and long-term perspective. In the face of the global financial crisis, China is ready to work with Latin American nations to strengthen coordination and boost confidence so as to contribute to the stable growth of the global economy, Xi said. Second, mutual cooperation should be deepened, said the Chinese vice president. China is ready to continue to expand trade and mutual investment with Latin American nations, push forward pragmatic cooperation in such key areas as energy, finance, agriculture, manufacturing, infrastructure and the high-tech industry. The Chinese government is ready to join hands with Latin American governments to further promote strategic cooperation between companies from both sides and make continued efforts to ensure greater success in hosting the China-Latin America Business Summit and the China-Caribbean Economic and Trade Cooperation Forum, he added. Third, efforts should be made to boost human and cultural exchanges, with a view to cementing the foundation of the China-Latin American friendship. China is ready to enhance exchanges with Latin American nations in the fields of culture, education, health, sports and tourism, and carry out practical cooperation in poverty alleviation, social security, environmental protection and disaster relief. Both sides should also expand exchanges between youth and women's organizations as well as media bodies and academic institutions in efforts to promote understanding and friendship between the Chinese and Latin American peoples, Xi said. Fourth, both sides should strengthen consultation and cooperation in international affairs. China is ready to strengthen coordination with Latin American nations, through participating in regional and international organizations or other multilateral mechanisms, and jointly safeguarding the legitimate rights and interests of developing nations. Both sides should work together to push for the establishment of a global economic system for sustainable development, an inclusive international financial system, a fair and equitable international trading system and a fair and efficient global development system. Both sides should urge developed countries to fulfill their commitments in terms of increasing investments and aid, reducing trade barriers, speeding up technology transfer and reducing and writing off debts, he said. China is a staunch force for maintaining world peace and the Chinese people are trustworthy friends of the Latin American people, said Xi. China and Latin America enjoy a profound traditional friendship and share broad common interests. China is ready to work with Latin American nations to write a new chapter in the efforts to establish partnership for all-around cooperation, said the vice president. Venezuelan President Hugo Chavez was present during Xi's address. Xi arrived Tuesday in Caracas for an official visit to Venezuela, the fourth leg of his six-nation tour, which will also take him to Brazil and Malta. He earlier visited Mexico, Jamaica and Colombia. In November 2008, China issued its first Policy Paper on Latin America and the Caribbean, seeking to build and develop a comprehensive and cooperative partnership featuring equality, mutual benefit and common development with the region.

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BEIJING, March 5 (Xinhua) -- Chinese Premier Wen Jiabao Thursday called on the nation to strengthen "conviction for victory" as he unveiled an unprecedented stimulus package to shore up economic growth amid global downturn. In a work report to the National People's Congress (NPC), the country's parliament, Wen said China is facing "unprecedented difficulties and challenges" as economic growth slows, employment pressure mounts and social uncertainties increase in 2009, the most difficult year since the new millennium. PREMIER'S ECONOMICS China's economy cooled to a seven-year low of 9 percent last year, and broke a five-year streak of double-digit expansion, as the global financial crisis took its toll on the world's fastest growing economy. The country, however, is "able to achieve" an economic growth at about 8 percent as long as right policies and appropriate measures are adopted and implemented, Wen said. Chinese Premier Wen Jiabao delivers a government work report during the opening meeting of the Second Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 5, 2009In his report, Wen outlined an aggressive stimulus package, including huge government investment, tax reform, industrial restructuring, scientific innovation, social welfare and promoting employment. In addition to a 4-trillion yuan (585.5 billion U.S. dollars) stimulus package that was announced in November, the premier also proposed a budgeted fiscal deficit of 950 billion yuan (139 billion U.S. dollars) for 2009, a record high in six decades and nearly three times over the last record of 319.8 billion yuan set in 2003. The deficit accounted for less than 3 percent of the gross domestic product (GDP), nearly surpassing an internationally accepted risky line. Wen said increasing government spending is the most active, direct and efficient way to expand domestic demand, while economists believe China's 2-trillion U.S. dollar foreign reserves, current-account surplus and budget surplus offers the government lots of room to do so. Other key economic and social targets included creating more than 9 million jobs in the city, controlling urban registered unemployment rate under 4.6 percent and keeping the rise of Consumer Price Index (CPI) at about 4 percent. EXPECTATIONS OF A MIGRANT WORKER AND MORE While nearly 3,000 lawmakers convened at the Great Hall of the People in the center of Beijing, Zhang You, a migrant worker from central Anhui Province who was waiting in his rented room for a job opportunity in the outskirts of the capital, also watched Wen's nationally televised speech, though the Premier's economics might be beyond his imagination. "I didn't quite understand what those figures meant," he said. "But I was impressed by Premier Wen's vow to expand social security for migrant workers and help us find jobs," the 30-year-old man said. "I am happy about that." Zhang, a painter, said he has had no work to do for months. "I guess it's because fewer people are buying houses," he said. China's real estate sector was also hit by the international financial crisis with fewer people buying houses. But Zhang said he believes he will soon be able to find a job. "I feel the government is trying hard to overcome the difficulties. This kind of situation won't last long." "I hope the economy will get better. My whole family is depending on me," said Zhang, one of the 20 million migrant workers who have lost jobs following the financial crisis. In addition to millions of migrant workers seeking jobs in the cities, another 6.1 million college students are due to graduate this year, worsening the country's unemployment woes. Announcing a 42-billion-yuan central government investment to boost job opportunities, Wen said in his report "the government will do everything in its power to stimulate employment." He said the government will make full use of the role of the service sector, labor-intensive industries, small and medium-sized enterprises, and the non-public sector of the economy in creating jobs, he said. Hao Ruyu, vice president of the Capital University of Economics and Business, said to maintain an 8 percent growth rate is "vital" to the Chinese economy and the country's stability. "One percentage point growth could create 800,000 to 1 million jobs," said Hao, vice chairman of the NPC Financial and Economic Affairs Committee. Despite worsening world economy, economists are optimistic about China's economic growth as previous stimulus measures have started to show initial effects. Economist Li Yining told Xinhua that he believes China's economic growth this year could reach 8 percent, or even higher. The Chinese economy is also very likely to recover before other major economies, even though the world economy is still shrouded in uncertainty, said Li, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the nation's top political advisory body. "The economic slowdown is beginning to bottom out, and the economy is bound to rebound on huge government investment," he said. According to a survey of factories issued Monday by the brokerage CLSA, China's manufacturing activity contracted for a seventh consecutive month in February, but at a slower rate than previous months. INVESTMENT FOR A HARMONIOUS SOCIETY While explaining the stimulus plan, Wen said the government will "give top priority to ensuring people's wellbeing and promote social harmony." He said a total of 908 billion yuan of the central government investment this year will go to projects aiming at improving people's life. Those projects covered low-income housing, education, health care, culture, environmental protection, and reconstruction in regions affected by the May 12 earthquake in Sichuan Province. As part of the efforts to shore up domestic demand, Wen said China will increase investment to improve China's social security network, whose low coverage has long been blamed for the country's high saving rate. He said the central government plans to spend 293 billion yuan on the social safety net this year, up 17.6 percent or 43.9 billion yuan over the estimated figure for last year. The money will be used to fund social welfare programs, including pension, medical insurance, unemployment insurance and living allowances to low-income groups. Wen also promised that his government will improve efficiency and continue to combat corruption. "We must discharge our duties with great diligence and, through our actions and achievements, build a government that is for the people and is pragmatic, clean, efficient to satisfy people's needs and win their trust," he said. CHINA IMPETUS LIMITED? As the world's fastest expanding economy, China's policy making has captured international attention since the world was hit by the financial turmoil. Before Wen delivered his report, U.S. stocks broke a five-day losing streak with the Dow Jones industrial average rising 149.82, or 2.2 percent, to 6,875.84 on Wednesday. Some analysts said expectations on China's economic stimulus package might have contributed to the stock jump. But Wang Xiaoguang, a Beijing-based economist, said such an influence is very "limited." Wang said China's stimulus package might help store up some investors' confidence in world economy, but the recovery of the world depends on both China and the United States. China's economic growth could help cushion the blows of world economic downturn, Wang said. "But if the U.S. economy continued to worsen, China alone could not revive the world," he said.

BEIJING, March 14 (Xinhua) -- The following is the full text of the Report on the Work of the Government delivered by Premier Wen Jiabao at the Second Session of the Eleventh National People's Congress on March 5, 2009 and adopted on March 13, 2009: REPORT ON THE WORK OF THE GOVERNMENT Delivered at the Second Session of the Eleventh National People's Congress on March 5, 2009 Wen Jiabao Premier of the State Council Fellow Deputies, On behalf of the State Council, I now present to you my report on the work of the government for your deliberation and approval. I also solicit comments and suggestions on the report from the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC). I. Review of the Work in 2008 The year 2008 was truly eventful. Our country's economic and social development withstood severe challenges and tests that were rarely seen before. Under the leadership of the Communist Party of China (CPC), the people of all our ethnic groups faced difficulties squarely, worked with courage and determination, surmounted all difficulties and obstacles, and made new achievements in reform, opening up and socialist modernization. - The national economy continued to maintain steady and rapid growth. GDP topped 30 trillion yuan, an increase of 9% over the previous year. Overall price rises were held in check. Government revenue was 6.13 trillion yuan, an increase of 19.5%. Grain output rose for the fifth consecutive year and totaled 528.5 million tons, a record high. - Reform and opening up were further deepened. New breakthroughs were made in reforms in key areas and crucial links, such as the fiscal, taxation, financial and pricing systems and administration. Imports and exports totaled US$ 2.56 trillion, an increase of 17.8%. Paid-in foreign direct investment reached .4billion. - Development of social programs was accelerated, and the living standards of the people continued to rise. A total of 11.13million more urban residents entered the workforce. Urban per capita annual disposable income reached 15,781 yuan, an increase of 8.4% in real terms, and rural per capita net income reached 4,761 yuan, up by 8% in real terms. - Great victories were won in the fight against massive natural disasters. The Beijing Olympics and Paralympics were held successfully, and the Shenzhou VII manned space mission was a complete success. These achievements signify that we have taken new and solid steps along the path of socialism with Chinese characteristics. They have greatly fortified the courage and strength of the people of all our ethnic groups to surmount difficulties and will definitely encourage us to bravely forge ahead on the new historical course. Last year, we accomplished the following important work: 1. Making timely and resolute adjustments to macroeconomic policies and doing everything possible to maintain steady and rapid economic development We maintained the right direction, focus, intensity and pace of macro control, and adopted a series of policies and measures to promote steady and rapid economic development. In a complex and volatile situation, we actively responded to the severe impact of the global financial crisis and worked hard to make our macro control more proactive, targeted and effective. In the middle of the year, when energy and grain prices on the international market were high, world economic growth slowed, and exports from and economic growth in China's coastal regions began to decline, we promptly shifted the priority of macro control to maintaining steady and rapid economic development and controlling price hikes, and adopted relevant fiscal, taxation and financial measures. In September, the international economic situation started to deteriorate sharply and its negative impact became increasingly felt in China. We again resolutely shifted the focus of macro control to preventing economic growth from slowing down too quickly. We implemented a proactive fiscal policy and a moderately easy monetary policy. We raised export rebate rates three times, lowered the benchmark interest rates on savings and loans for financial institutions on five occasions, reduced required reserve ratios four times, suspended the individual income tax on interest earnings from savings, reduced securities transaction stamp tax rates, cut taxes and fees on housing transactions, and increased credit support to small and medium-sized enterprises. In accordance with the requirement that we act fast, be forceful, take targeted measures and stress implementation, we promptly introduced ten measures to further boost domestic demand and promote economic growth, and implemented them without delay. We adopted a succession of policies and measures to encourage financial institutions to support economic development, promote sound development of the textile and other light industries and the real estate market, expand consumption by improving distribution, maintain steady growth in foreign trade, and keep the employment situation stable. At the same time, we stepped up efforts to formulate plans for restructuring and revitalizing key industries. Together, these measures have played a crucial role in alleviating serious problems affecting economic performance, enhancing confidence, stabilizing expectations and maintaining steady and rapid economic development. We continued to strengthen our work related to agriculture, rural areas and farmers without any letup. Central government budgetary spending on agriculture, rural areas and farmers was 595.5 billion yuan for the whole year, a year-on-year increase of 163.7 billion yuan or 37.9%. This included 103 billion yuan, twice the figure for the previous year, in direct subsidies to grain producers, general subsidies for agricultural production supplies, and subsidies for superior crop varieties and the purchase of agricultural machinery and tools. We significantly raised minimum grain purchase prices three times, with the total increase exceeding 20%. We implemented a temporary policy for purchasing and stockpiling major agricultural products. We intensified the protection of arable land and the construction of agricultural water conservancy projects, and increased overall agricultural production capacity. We supported the production of hogs, oilseeds and dairy products. These policies and measures played an important role in maintaining and stimulating the enthusiasm of farmers, ensuring the supply of major farm products and increasing rural incomes, and provided strong support for maintaining overall stability in economic and social development. We unswervingly promoted independent innovation and economic restructuring. We launched 16 major national science and technology projects, and established a number of new national engineering centers, key laboratories and enterprise technology centers in such fields as information technology, biotechnology and environmental protection. We successfully developed a number of key technologies and major equipment in the areas of regional aircraft, automobiles powered by new energy sources and high-speed railways. The central government invested 116.3 billion yuan in science and technology, an increase of 16.4%. Significant steps were taken in reorganization of the telecommunications and civil aviation industries. We continued to eliminate backward production facilities. Last year, we shut down small thermal power plants with a total capacity of 16.69 million kilowatts and closed 1,054 small coalmines. Investment in infrastructure and basic industries was increased, and a number of major projects in energy, transportation and water conservancy were completed or launched. Steady progress was made in implementing the master strategy for regional development, and economic development in different regions became better coordinated. We steadfastly promoted energy conservation, emissions reduction and ecological and environmental protection. The central government allocated 42.3 billion yuan to support development of ten key energy conservation projects and environmental protection facilities. The daily sewage treatment capacity rose by an additional 11.49 million tons in urban areas, and desulfurization equipment was installed in coal-fired power plants with a total capacity of 97.12 million kilowatts. Energy consumption per unit of GDP fell by 4.59% from the previous year; chemical oxygen demand fell by 4.42%; and sulfur dioxide emissions fell by 5.95%. For the past three years combined, total energy consumption per unit of GDP dropped by 10.08%; chemical oxygen demand dropped by 6.61%; and sulfur dioxide emissions dropped by 8.95%. We built on the achievements in returning farmland to forests and restoring livestock pastures to grasslands, and carried out ecological conservation projects such as protecting virgin forests and developing the Sanjiangyuan Nature Reserve in Qinghai Province. We implemented the plan to prevent and control water pollution in major river valleys and regions and issued the white paper China's Policies and Actions for Addressing Climate Change. 2. Balancing economic and social development and strengthening all aspects of social development with the focus on improving people's lives Efforts were intensified to increase employment and improve the social safety net. We improved our policy to stimulate and expand employment by encouraging business startups, and enforced the minimum wage system. The coverage of all social security schemes continued to expand, with 17.53 million more urban workers subscribing to basic old-age insurance, 20.28 million more subscribing to basic medical insurance, and the unemployment, workers' compensation and maternity insurance steadily expanding to cover more workers. Pensions of enterprise retirees rose by 110 yuan per month per person. We launched trials to reform the basic old-age insurance system for employees of government-affiliated institutions. We actively explored ways to establish a new system of old-age insurance for rural residents and made steady progress in making social security available to rural migrant workers in urban areas and farmers whose land has been expropriated. We comprehensively improved the system of cost of living allowances for both urban and rural residents, and provided allowances to 66.19 million residents. We raised living allowances for low-income groups and university students in a timely fashion. Preferential treatment enjoyed by key entitled groups was increased substantially. We intensified efforts to develop low-income housing and renovate shantytowns, thus alleviating some of the housing difficulties of the low-income population. An additional of more than 48 million rural people gained access to safe drinking water. Further progress was made in promoting fair education for all. Free compulsory education became available to all students, urban or rural, throughout the country, and all rural students receiving compulsory education obtained free textbooks. The standards for repairing and renovating school buildings in the central and western regions were raised, and the government allocated 3.25 billion yuan to provide heating to rural primary and secondary schools in the north. Development of vocational education was accelerated. The national financial aid system for students was further improved. The central government spent 22.3 billion yuan and local governments increased funding as well to assist more than 20 million students. Grants of 1,500 yuan per student per annum were given to secondary vocational school students from rural areas or needy urban families, benefiting 90% of the current student population in these vocational schools. Steady progress was made in reform and development of the pharmaceutical and health care system. A total of 814 million people, accounting for 91.5% of the rural population, now benefit from the new type of rural cooperative medical care system. The number of selected cities participating in trials of the basic medical insurance system for urban residents increased from 88 to 317, and the number of participating individuals increased by 73.59 million to 117 million. Significant progress was made in developing a system of community-based health services in urban areas. We continued to expand the coverage of the reward and assistance system for rural families complying with family planning regulations, and implemented the "lower birthrate equals faster prosperity" program in more places in the countryside. We accelerated the development of culture and sports. Public cultural infrastructure facilities were improved, the cultural industries developed rapidly, and reform of the cultural management system was constantly deepened. We mobilized all resources and hosted a distinctive and high-level Beijing Olympicsand Paralympics, thus fulfilling the century-old dream of the Chinese nation, and Chinese athletes competed hard and brave and scored excellent achievements in the Games. This greatly aroused the patriotism of all our people and strengthened the cohesiveness of our nation. We continued to strengthen democracy and the legal system. The system of local-level democracy was further improved. Significant progress was made in enhancing law-based government. Last year, the State Council submitted eight bills, including a draft of the Social Insurance Law and draft amendments to the Law on Protecting Against and Mitigating Earthquake Disasters, to the Standing Committee of the National People's Congress for deliberation. It also formulated or revised 30 administrative laws and regulations. The Regulations on Making Government Information Public was fully implemented. The public security system for crime prevention and control was strengthened. We battled against secessionist and terrorist activities, protected China's national security and maintained social stability. Our work related to ethnic minority, religious and overseas Chinese affairs further improved. 3. Vigorously advancing reform and opening up and injecting fresh vitality and impetus into economic and social development Institutional restructuring of the State Council was basically completed and that of local governments is progressing steadily. Comprehensive rural reforms continued to deepen, and reform of collective forest rights was instituted throughout the country. SOE reform was deepened. The transformation of the Agricultural Bank of China and China Development Bank into joint stock companies proceeded smoothly. The new Law on Corporate Income Tax went into effect, and real estate taxes were unified for domestic and overseas-funded enterprises and Chinese and foreign individuals. After years of deliberation, reform in pricing, taxes and fees for refined petroleum products was smoothly introduced. Aplan for reform of the pharmaceutical and health care system was devised and referred to the general public for comments. These innovations in systems and mechanisms have laid a solid foundation for our long-term development. The country opened wider to the outside world. We vigorously implemented the strategy of competing on quality and diversifying export markets. We increased efforts to establish innovation bases to invigorate trade through science and technology and bases for providing services outsourced from other countries. We supported the export of products with Chinese trademarks and intellectual property rights. We improved the policy system for the processing trade. We steadily opened service industries wider to the outside world and provided more guidance to orient foreign investment in China. We integrated existing funds and set up new ones designed to promote external economic and technological cooperation. We promulgated regulations on managing overseas contracted projects and rectified the system of administration of cooperative overseas labor services. We actively promoted energy and resources cooperation overseas, further expanded our assistances to other countries, and the pace of enterprises going global was accelerated. Further progress was made in the development of free trade zones, and in our economic dialogues with major trading partners and mutually beneficial cooperation with other developing countries. Fellow Deputies, A massive earthquake that shocked the world struck Wenchuan on May 12. Under the firm leadership of the CPC Central Committee and the State Council, people of all ethnic groups in China, especially in the quake zone, worked as one and fought in unison against the earthquake disaster. The people's army rushed to the frontlines without thinking of their own safety. We launched an earthquake rescue and relief operation that accomplished its work faster, mobilized more personnel and committed more resources than ever before in China's history. We steadfastly gave top priority to saving people's lives. We pulled 84,000 survivors out of the rubble. We promptly repaired damaged infrastructure, and resolutely unblocked the Mount Tangjia quake lake to avert potential secondary disasters. We did our utmost to prevent an epidemic from occurring and ensured that there was no major outbreak of diseases after the deadly earthquake. The central government allocated 38.4 billion yuan for quake relief and 74 billion yuan for post-earthquake recovery and reconstruction. We promptly introduced a host of policies and measures to support the quake zone. We energetically organized one-to-one assistance to designated areas affected by the earthquake. People from all sectors of society in China made generous donations, both in cash and in kind; our compatriots in Hong Kong, Macao and Taiwan as well as overseas Chinese contributed generously to the disaster relief campaign; and the international community provided us with earthquake rescue and relief assistance. All this combined to forma boundless source of strength for the Chinese people to overcome the disaster. This hard struggle against the earthquake produced uncountable touching and brave exploits and fully demonstrated the great indomitable and unyielding spirit of the Chinese people, thus writing a heroic chapter in the history of the nation. None of the achievements we made last year came easily. They were the result of overall planning and correct leadership of the Party Central Committee with Comrade Hu Jintao as General Secretary, as well as the concerted and strenuous efforts of the whole Party, the entire army and the people of all our ethnic groups. On behalf of the State Council, I hereby express our sincere gratitude to the people of all our ethnic groups and to the democratic parties, mass organizations and people from all sectors of society. I also express our sincere thanks to compatriots in the Hong Kong and Macao Special Administrative Regions and Taiwan and to overseas Chinese, as well as to foreign governments, international organizations and friends in other countries that take an interest in and support China's modernization drive. While acknowledging our achievements, we must be clearly aware that we face unprecedented difficulties and challenges. First, the global financial crisis continues to spread and get worse. Demand continues to shrink on international markets; the trend toward global deflation is obvious; and trade protectionism is resurging. The external economic environment has become more serious, and uncertainties have increased significantly. Second, continuous drop in economic growth rate due to the impact of the global financial crisis has become a major problem affecting the overall situation. This has resulted in excess production capacity in some industries, caused some enterprises to experience operating difficulties and exerted severe pressure on employment. Factors leading to decline in government revenues and increase in government expenditures have increased. It has become more difficult to maintain steady agricultural development and keep rural incomes growing. Third, institutional and structural problems that have long hindered healthy economic development still remain, and some of them are still prominent. Consumption demand is insufficient, and development of tertiary industries is sluggish. Our capacity for independent innovation is weak. Consumption of energy and other resources is high. Environmental pollution is serious. Disparities in development between urban and rural areas and between regions are widening. Fourth, some problems affecting the vital interests of the people have not been fundamentally alleviated. There are still many problems demanding urgent solution in the areas of social security, education, health care, income distribution and public security. Fifth, order in the market is not well standardized; market oversight and law enforcement are not fully in place, and the social credit rating system is still in need of improvement. A number of serious and major incidents concerning food and workplace safety have occurred, which have inflicted serious loss of life and property on the people and taught us a sobering lesson. We need to thoroughly appreciate how serious and complex the international and domestic economic situations are, be more mindful of potential perils and crises, fully exploit favorable conditions and actively respond to all challenges so that we can successfully accomplish all our tasks and prove worthy of the great expectations and trust conferred on us by the people.

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