We will deepen reform of the fiscal, tax, investment and pricing systems. Fiscal reform will focus on improving the public finance system, transfer payment system and budget management system, and implementing reform of the classification of government revenue and expenditures. We will vigorously proceed with VAT reform and adjust the resource tax. We will study how to create a unified tax system covering all types of enterprises. Reform of the investment system will focus on implementing a system that grants independence in investment coupled with responsibility for risk, improving the system of project approval and record-keeping, releasing more investment information, improving and implementing market access rules, and improving macroeconomic regulation of investment. In pricing reform, we will focus on gradually streamlining and improving the pricing mechanism for resource products and related factors of production. In doing so, we need to take into account the interests of all parties and pay particular attention to the needs of low-income people.

We will continue working to improve and standardize market order. We will improve market legislat ion and accelerate development of a credit system for the general public. We will severely punish, in accordance with the law, parties who engage in production and sale of counterfeit goods, commercial fraud, smuggling and selling of smuggled goods, tax evasion and tax fraud, financial and securities crimes, and violations of intellectual property rights. We will resolutely prosecute people involved in pyramid schemes, including ones in disguised forms. We will pool our resources to launch special campaigns to promote food safety, strictly control market access for food products, and strengthen oversight and management of the entire production and distribution process to assure the people of the safety of the food supply.

We will open still wider to the outside world and make better use of domestic and international markets and resources. We need to change the pattern of growth of foreign trade, improve the mix of imports and exports, and correct the imbalance between imports and exports. We will support the export of service products and high value-added products with Chinese intellectual property rights and trademarks and continue to control the export of highly polluting products, resource products and products that consume excessive quantities of energy. We will speed up the process of upgrading the processing trade and improving the geographical distribution of the processing trade industry. Imports will be expanded by a suitable amount, particularly imports of advanced technology, key equipment and resources that China lacks. We will continue to make energetic and effective use of foreign capital and strive to improve its performance. We will further open the service sector to foreign competition. We will support qualified enterprises in going global, making overseas investments, conducting international business in conformance with general international practices, and establishing processing centers, marketing and service networks and R&D centers in other countries. We will institute a policy support and service system and improve the mechanisms for coordinating overseas investment and risk management.

Since the transitional period for China's accession to the WTO will basically end this year, we need to heighten our sense of urgency to be sure we complete all related work. We will improve the system and mechanisms for managing foreign economic activities to better facilitate trade and investment. We will make use of WTO rules to make key sectors more risk-resistant and more competitive internationally. We will make the mechanism for dealing with trade disputes more efficient and handle trade frictions properly. We will carry out negotiations on regional economic cooperation and free trade zones in a step-by-step and focused manner. We will play a constructive role in the new round of WTO talks.

7. Paying close attention to solving problems related to the vital interests of the people

We must always keep in mind our obligation to run the government for the people and do everything for their benefit. We need to promptly solve practical problems concerning public interests that the people are most concerned about and that affect them most directly. In particular, we must do a good job in work related to employment, social security, medical care and production safety.

We will continue to follow the policy of expanding employment and do everything possible to do so. We will continue to create jobs for workers laid off because of economic transformation or because of enterprise reorganization, restructuring, closure or bankruptcy. Policies to support reemployment of employees laid off from state-owned enterprises will be extended for another three years, and coverage will be gradually extended to employees laid off from collectively owned urban enterprises where local conditions permit. More support will be given to the reemployment of workers laid off from the defense industry, the logging industry and other industries experiencing difficulties. A total of 25.1 billion yuan will be allocated from the central government budget this year for reemployment work, 4.2 billion yuan more than last year. Local governments should also increase budgetary allocations for this work. We will pay close attention to helping university graduates find jobs and helping demobilized army personnel return to civilian life, and we will create more jobs for urban residents entering the job market for the first time and for rural laborers coming to cities to find jobs. We will improve vocational training and employment services. We will effectively protect the lawful rights and interests of workers.