Outline of the 11th Five-Year Plan for National Economic and Social Development of the People's Republic of China

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The Outline of the Eleventh Five-Year Plan for National Economic and Social Development of the People's Republic of China (2006–2010) was developed based on the "Recommendations of the CPC Central Committee on Formulating the Eleventh Five-Year Plan for National Economic and Social Development." It clarifies national strategic intentions, defines government priorities, guides market participants' actions, serves as a comprehensive blueprint for China's economic and social development over the next five years, acts as a common action program for all Chinese people, and provides a key basis for the government to fulfill its duties in economic regulation, market supervision, social governance, and public service.

Part 1: Guidelines and Development Goals

Chapter 1: A Critical Period for Building a Moderately Prosperous Society in All Respects

The 11th Five-Year Plan period was a remarkable five years. China's comprehensive national strength grew significantly, people's living standards improved substantially, and the country's international standing rose markedly. Facing a complex and changing domestic and international environment, through the concerted efforts of all ethnic groups across the nation, we effectively curbed unstable and unhealthy factors in economic operations, successfully overcame challenges from the SARS outbreak and major natural disasters, calmly adapted to new developments after joining the World Trade Organization, and achieved sustained and rapid economic growth. The key development goals set for the 11th Five-Year Plan were accomplished ahead of schedule. The pace of industrialization, urbanization, marketization, and internationalization accelerated. Economic system reforms deepened steadily, foreign trade reached new heights, government fiscal revenue increased substantially, the overall price level remained basically stable, and conditions in both urban and rural areas along with people's livelihoods continued to improve. Ethnic unity was further consolidated, social undertakings made new progress, defense and military construction advanced, and socialist democratic politics and spiritual civilization construction continued to strengthen. More importantly, the Party Central Committee put forward the major strategic concepts of establishing a scientific outlook on development and building a harmonious socialist society. All these achievements laid a solid foundation for development during the 12th Five-Year Plan period. Looking ahead, we stand at a new historical starting point.
The 11th Five-Year Plan period is a critical phase for comprehensively building a moderately prosperous society. It holds a pivotal historical position, bridging past achievements with future goals, and faces both unique opportunities and severe challenges.
China possesses favorable conditions for sustaining steady and rapid economic growth and social harmony. Accelerating upgrades in consumption structures among urban and rural residents will drive faster industrial restructuring and accelerated urbanization, unlocking immense market potential. China boasts a rich labor force, high national savings rates, continuously improving infrastructure, strong industrial support capabilities, a solid foundation in science and education, and long-term political and social stability. As reforms deepen and the socialist market economy system gradually improves, further momentum will be unleashed.Inject vitality into society and drive development. Peace, development, and cooperation have become the defining trends of our times. The global balance of political forces favors overall international stability. Economic globalization is deepening, technological innovation is advancing rapidly, factor mobility and industrial transfers are accelerating, and China's integration with the world economy is growing deeper. Domestic and international markets and resources complement each other, creating an external environment that is broadly favorable to China's development.
Significant challenges and difficulties remain on our path forward. China is in, and will remain for a long time in, the primary stage of socialism. Productive forces are still underdeveloped, and deep-seated structural contradictions continue to constrain development: relative shortages exist in arable land, freshwater resources, energy, and key mineral resources; the ecological environment remains fragile; economic structures are unbalanced; resolving issues related to agriculture, rural areas, and farmers remains a daunting task; employment pressure is high; independent technological innovation capacity is weak; and institutional barriers hindering development must be urgently addressed. During the "15th Five-Year Plan" period, rapid growth also brought forth prominent new problems: an imbalance between investment and consumption; blind expansion and overcapacity in certain industries; slow transition in the mode of economic growth; excessive consumption of energy and resources; worsening environmental pollution; widening gaps between urban and rural areas, among regions, and in income distribution across social groups; lagging progress in social services; and numerous factors threatening social stability. The international environment is complex and volatile, with rising uncertainties affecting peace and development. Long-term pressure from developed countries' advantages in economics and technology persists; global economic imbalances are deepening; competition over resources, markets, technology, and talent is intensifying; and protectionist trends are emerging, presenting new challenges to China's economic and social development and security.
At this critical juncture marked by both strategic opportunities and emerging challenges, we must uphold a profound sense of historical responsibility, maintain strong vigilance, and cultivate a broad global perspective. We need to accurately grasp the stage-specific characteristics of China's development, base our efforts on scientific development, focus on independent innovation, refine institutional mechanisms, and promote social harmony. Our goal is to comprehensively enhance China's comprehensive national strength, international competitiveness, and risk-resilience, thereby forging new frontiers in socialist economic, political, cultural, and social construction. This will lay a solid foundation for smooth progress over the next decade and drive the cause of socialism with Chinese characteristics forward with determination.

Chapter 2: Comprehensively Implement the Scientific Outlook on Development

During the 11th Five-Year Plan period, to promote sustained, rapid, coordinated, and healthy economic and social development as well as comprehensive social progress, we must guide our efforts with Deng Xiaoping Theory and the important thought of the Three Represents, and take scientific development as the overarching principle for economic and social development. We must adhere to the principle that development is the absolute priority, treat development as the primary task for the Party to govern and rejuvenate the nation, center our work on economic construction, and resolve problems encountered in the course of advancement through reform and development. Development must be scientifically sound: it should be people-oriented, involve a shift in development concepts, innovation in development models, and improvements in development quality. We must implement the "Five Coordinateds" and ensure that economic and social development is firmly guided along a path of comprehensive, coordinated, and sustainable growth. The following principles must be upheld:
— Must maintain steady and relatively rapid economic development. Further expand domestic demand and adjust the balance between investment and consumption.Control investment scale appropriatelyStrengthen the role of consumption in driving economic growth. Accurately grasp changes in economic development trends, maintain a basic balance between aggregate supply and demand, avoid sharp economic fluctuations, and achieve rapid and high-quality development.
— Accelerate the transformation of economic growth patterns. Treat resource conservation as a fundamental national policy, develop a circular economy, protect the ecological environment, and rapidly build a resource-efficient and environmentally friendly society to ensure coordinated development among the economy, population, resources, and environment. Promote informatization in the national economy and society, firmly follow the path of new industrialization, adhere to development that is energy-saving, clean, and safe, and achieve sustainable development.
Innovation must be strengthened. We will deepen the implementation of the strategies for revitalizing the country through science and education and strengthening the nation with talent, making independent innovation a strategic cornerstone for scientific and technological development and the central focus for industrial restructuring and transforming the growth model. We will vigorously enhance original innovation, integrated innovation, and the capacity to introduce, absorb, digest, and re-innovate.
—— It is essential to promote coordinated development between urban and rural areas. We must take a holistic view of socialist modernization and plan for the integrated development of urban and rural regions. Prioritize resolving "agriculture, rural areas, and farmers" issues; implement industrial support for agriculture and urban assistance to rural areas; advance new socialist countryside construction; and foster healthy urbanization. Implement the overall strategy for regional development to establish a mechanism where eastern, central, and western regions leverage their respective strengths in a mutually beneficial and dynamic manner.
—— Strengthen the construction of a harmonious society. Adhering to a people-centered approach, we must address immediate issues that directly affect people's well-being. We should prioritize coordinated economic and social development, expand employment opportunities through all available means, accelerate progress in social undertakings, and promote comprehensive human development. We must emphasize social equity so that all people share the benefits of reform and development. Furthermore, we need to strengthen democratic and legal frameworks, properly balance reform, development, and stability, and maintain social harmony and unity.
—— We must continuously deepen reform and opening-up. Adhere to the direction of reform toward a socialist market economy, improve the modern enterprise system and modern property rights system, establish a price formation mechanism that reflects market supply and demand as well as resource scarcity, and enable the market to play a greater foundational role in resource allocation. This will enhance the efficiency of resource allocation, effectively transform government functions, and strengthen the national macro-control system. Coordinate domestic development with opening-up to the outside world, continuously raise the level of openness, and strengthen our capacity to promote development under conditions of expanded opening-up.
Based on the above guiding principles, and addressing prominent contradictions and challenges in development, we must further refine our approach to driving growth, transform our development methods, and clarify policy direction.
— Anchor development on expanding domestic demand, making consumption the primary driver and shifting economic growth from reliance on investment and exports to a balanced model driven by both consumption and investment, as well as coordinated internal and external demand.
— Anchor development on optimizing the industrial structure, make economic restructuring the central focus, and shift growth drivers from industry-led expansion to coordinated advancement across all three sectors driven by structural optimization and upgrading.
— Grounded in resource conservation and environmental protection to drive development, focus on fundamentally transforming the economic growth model by shifting from reliance on increased resource input to reliance on improved resource efficiency.
——Strengthen innovation capabilities to drive development by elevating them as a national strategy, shifting economic growth from reliance on capital and material inputs to advancement through technological progress and human capital.

— Anchored in deepening reform and opening up to drive development, we will leverage reform as a catalyst to shift economic growth from heavy reliance on administrative intervention in certain sectors toward a model where the market plays a fundamental role in resource allocation under national macro-control.
—— People-centered development: Elevate living standards as the core objective and ultimate goal, shifting focus from material accumulation to comprehensive human development and coordinated economic-social progress.

Chapter 3: Major Goals for Economic and Social Development

In line with the overarching requirements for building a moderately prosperous society in all respects, the primary goals for economic and social development during the "11th Five-Year Plan" period are to be strived for as follows:
The macroeconomy operated steadily. Annual GDP growth averaged 7.5%, with per capita GDP doubling compared to the 2000 level. Urban job creation and transfer of agricultural labor each reached 4500 million, while the urban registered unemployment rate was kept within 5%. Overall price levels remained generally stable, and international payments were in basic balance.
— Optimization and upgrading of industrial structure. Industrial, product, and corporate organizational structures become more rational. The share of value added by the services sector in GDP and the proportion of employment in the service sector rise by 3 and 4 percentage points, respectively. Innovation capacity strengthens, with R&D expenditure reaching 2% of GDP. A group of leading enterprises with independent intellectual property rights, well-known brands, and strong international competitiveness emerges.
— Resource efficiency has significantly improved. Energy consumption per unit of GDP has decreased by approximately 20%, water usage per unit of industrial value-added output has dropped by 30%, the effective utilization coefficient of agricultural irrigation water has risen to 0.5, and the comprehensive utilization rate of industrial solid waste has increased to 60%.
Urban-rural and regional development is moving toward coordination. Significant progress has been made in building new socialist countryside, with the urbanization rate reaching 47%. A preliminary regional development pattern featuring distinct characteristics has emerged, curbing the widening gap in public services, per capita income, and living standards between urban and rural areas as well as among different regions.
— Basic public services have significantly strengthened. The average years of schooling for the national population has increased to 9 years. A relatively sound public health and medical service system is in place. Social security coverage has expanded, with urban basic pension insurance covering 2.23 billion people, and the coverage rate of the new rural cooperative medical scheme has risen to over 80% above. The number of people living in poverty continues to decline. Disaster prevention and mitigation capabilities have been enhanced, and conditions in social security and work safety have further improved.
—— Enhanced sustainable development capacity. Total national population controlled at 136000 million. Arable land retention maintained at 1.2.100 million hectares, freshwater, energy, and

The security of supply for critical mineral resources has improved. The trend of ecological deterioration has been effectively curbed, with total emissions of major pollutants reduced by 10%, forest coverage reaching 20%, and progress achieved in controlling greenhouse gas emissions.
The market economy system is well-developed. Breakthroughs have been achieved in reform and institutional construction across administration, state-owned enterprises, taxation and finance, technology, education, culture, and healthcare, with significantly improved market regulation capabilities and social governance. Openness to the outside world is better coordinated with domestic development, and open-economy levels have reached a new height.
Living standards continue to improve. Per capita disposable income of urban residents and per capita net income of rural residents grew annually by 5%, respectively. The quality of life for both urban and rural residents has improved overall, with significant enhancements in housing, transportation, education, culture, healthcare, and the environment.
New achievements have been made in democratic and legal system construction as well as spiritual civilization development. The rule of law has advanced comprehensively, establishing a socialist legal system with Chinese characteristics. Moral and ideological construction has been strengthened further, yielding new progress in building a harmonious society.

Part 2: Building a New Socialist Countryside

Adhere to the basic strategy of coordinating urban and rural economic and social development. While actively and steadily advancing urbanization, promote new rural construction in a solid and steady manner in line with the requirements of productive development, improved living standards, civilized rural culture, clean village environments, and democratic management.

Chapter 4: Developing Modern Agriculture

Prioritize agricultural productivity development as the primary task in building a new socialist countryside. Advance strategic restructuring of the agricultural sector, transform agricultural growth models, enhance comprehensive agricultural production capacity and value-added capabilities, and consolidate and strengthen agriculture's foundational role.

Section 1: Enhancing Comprehensive Agricultural Production Capacity

Adhere to basic self-sufficiency in grain, stabilize grain production, ensure national food security, and achieve a comprehensive grain production capacity of approximately 5 billion tons. Strengthen production capacity in major grain-producing areas, improve yield per unit area, quality, and production efficiency. Establish a benefit coordination mechanism between major grain-producing and major grain-consuming regions. Enhance grain production capacity in other regions.
Uphold the strictest arable land protection system to ensure that the total area of basic farmland does not decrease and its quality does not decline. Strengthen basic farmland construction with a focus on small-scale water conservancy facilities, upgrade large-scale irrigation districts, accelerate the transformation of medium-to-low-yield fields, and improve the quality and productivity of arable land.Agricultural disaster prevention and mitigation capacity.
Enhance agricultural technological innovation and commercialization. Accelerate the construction of national agricultural technology innovation bases and regional research centers. Speed up R&D and promotion of technologies for crop and livestock/aquaculture breeding, feed production, disease prevention and control, resource conservation, and pollution治理。Cultivate and promote superior varieties such as super hybrid rice. Strengthen species resource protection and rational development and utilization.
Reform traditional farming practices, implement agricultural standardization, and develop resource-efficient agriculture. Apply fertilizers, pesticides, and plastic films scientifically; promote technologies such as soil-based formula fertilization, balanced fertilization, slow-release nitrogen fertilizers, and biological pest and disease control. Advance the adoption of suitable machinery and equipment to enhance agricultural mechanization levels.

Section 2: Advance Agricultural Structure Adjustment

Strengthen service systems for agricultural technology extension, food safety and standards, animal disease prevention and plant protection, and certification. Integrate agricultural information resources and enhance the development of rural economic information application systems. Promote innovation in agricultural service organizations and mechanisms, encourage and guide farmers to develop various types of professional cooperative economic organizations, and improve the level of agricultural organization.

Section 4: Improving the Rural Circulation System

 Plan comprehensively and implement in phases; guide with government support while respecting voluntary participation by the masses; adapt to local conditions and focus on practical results to improve farmers' living and working conditions.

Section 1: Strengthening Rural Infrastructure Development

Prioritize building essential production and living infrastructure for farmers. Accelerate the implementation of rural safe drinking water projects. Strengthen rural road construction to ensure all townships nationwide have access to paved (asphalt or concrete) roads, all eligible villages in eastern and central regions are connected by paved roads, and all eligible villages in western regions have road access. Establish a robust rural road maintenance system. Promote renewable energy sources such as biogas, straw power generation, small-scale hydroelectricity, solar, and wind power, and upgrade rural power grids. Create a universal telecommunications service fund to enhance rural information networks, expand postal and telecommunication services, and achieve basic telephone coverage for every village and internet access in every township. Follow principles of land conservation, integrated facilities, energy efficiency, environmental protection, and distinctiveness when planning rural development. Guide farmers in constructing homes reasonably and preserve unique rural architectural landscapes.

Explore the establishment of a rural pension system aligned with the level of rural economic development and coordinated with other social security measures. Establish a new cooperative medical care system for rural areas as a foundation. In areas with favorable conditions, implement a minimum living security system for rural residents. Improve the social assistance framework, including support for "five-guarantee" households, subsidies for severely impoverished families, and disaster relief programs.

Chapter 7: Cultivating New-Type Farmers

Adhere to the policy of "giving more, taking less, and allowing greater flexibility," and accelerate the establishment of a long-term mechanism whereby industry supports agriculture and urban areas drive rural development. Adjust the pattern of national income distribution: state fiscal expenditures and budgeted fixed-asset investments shall follow the principle of moderate adjustments to existing funds and targeted prioritization of new allocations, steadily increasing investment in agriculture and rural areas. Expand the coverage of public finance to rural regions, ensure that the year-over-year increase in fiscal spending on agriculture, rural areas, and farmers exceeds the previous level, and allocate the majority of new education, health, and cultural funding to rural areas.Infrastructure investment by central and local governments should prioritize agriculture and rural areas. Reform the management of government agricultural support investments, consolidate funding, and improve capital efficiency. Encourage and support financial institutions to increase investment in agriculture and rural development, actively develop microcredit programs, and guide social capital toward these sectors.

Chapter 9: Deepening Rural Reform

To meet the needs of industrial clustering, scale growth, and expanded international cooperation, accelerate the transition of high-tech industries from processing and assembly to independent R&D and manufacturing. Promote the commercialization of self-driven innovation achievements, and guide the development of: 1) a set of leading industries with core competitiveness; 2) a group of industrial bases with outstanding clustering effects; 3) multinational high-tech enterprises; and 4) a series of well-known brands with independent intellectual property rights.

Section 1: Enhancing the Electronic Information Manufacturing Industry

Strive to break through core technologies and elevate the overall capabilities in R&D design, component matching, manufacturing, and system integration of major technical equipment. Strengthen coordination and organization, reinforce policy support, leverage key projects, and refine technical standards. Develop a series of critical products for national economic security in areas such as high-end CNC machine tools and basic manufacturing equipment, as well as efficient clean power generation and transmission/distribution systems.Major technical equipment that significantly impacts and drives overall development, technological progress, and industrial upgrading. Guide the formation of a group of highly competitive enterprises integrating R&D, design, and manufacturing.

Section 2: Enhancing the Automotive Industry

Strengthen coal resource exploration, coordinate planning, and ensure rational development to improve recovery rates while minimizing the environmental impact of coal mining. Build large-scale coal bases, encourage mergers and restructuring among coal enterprises, and guide the formation of several companies with annual production capacities exceeding 100 million tons. Promote integrated coal-power or coal-power-transport operations for competitive coal enterprises. Adjust, upgrade, and restructure small and medium-sized coal mines; legally close those that lack safe production conditions or cause resource depletion and environmental damage.
Strengthen comprehensive gas control in coal mines and accelerate the development and utilization of coalbed methane. Enhance clean production and utilization of coal, promote coal washing and comprehensive utilization of low-calorific-value coal and coal gangue for power generation, and deploy advanced technologies such as efficient clean combustion and flue gas desulfurization. Develop coal chemical industries, produce coal-based liquid fuels, and steadily advance demonstration projects for coal liquefaction to facilitate deep processing and conversion of coal.

Section 2: Actively Develop the Power Sector

Implement preferential fiscal and tax policies, investment incentives, and mandatory market share requirements to encourage renewable energy production and consumption, increasing its share in primary energy use. Aggressively develop wind power and construct 30 large-scale wind farms with capacities exceeding 10 ten thousand kilowatts each.Establish million-kilowatt wind power bases in Inner Mongolia, Hebei, Jiangsu, Gansu, and other regions. Accelerate the development of biomass energy by supporting straw incineration, waste incineration, and landfill gas power generation; build a series of straw and wood-fired power plants; and expand production capacity for solid biomass pellets, fuel ethanol, and biodiesel. Grid-connected wind power capacity and biomass power generation capacity will reach 500 kW and 550 kW, respectively. Actively develop solar, geothermal, and marine energy resources.

Chapter 13: Restructuring and Layout of the Raw Materials Industry

Adjust the petrochemical industry layout toward base-centric, large-scale, and integrated development. Expand refining capacity primarily in regions with concentrated oil consumption, while appropriately scaling up production; reasonably plan new projects in areas with high oil demand but no existing refining industry; and control refining scale in regions with relative overcapacity. Shut down, merge, or repurpose small, low-efficiency refining units. Strategically deploy large-scale ethylene projects to establish several integrated refining and chemicalization bases, preventing hasty, uncoordinated expansion.
Adjust the layout and structure of the fertilizer, pesticide, and agricultural film industries. Establish million-ton urea bases in energy-producing regions and major grain and cotton production areas. Develop phosphatic compound fertilizer bases in Yunnan, Guizhou, and Hubei, and a potassium fertilizer base in Qinghai and Xinjiang. Control total pesticide usage while improving quality by promoting high-efficiency, low-toxicity, and low-residue pesticides. Develop and promote biodegradable agricultural films. Optimize the development of basic chemical raw materials, actively advance fine chemicals, and phase out highly polluting chemical enterprises.

Enhance independent drug development capabilities, consolidate traditional chemical APIs, and develop specialty APIs. Strengthen the census, conservation, development, and sustainable utilization of TCM resources; establish TCM resource bases and vigorously advance the TCM industry.

Section 3: Promoting Healthy Development of the Building Materials and Construction Industries

Persist in using information technology to drive industrialization and leveraging industrialization to advance informatization, thereby elevating the level of economic and social informatization.

Section 1: Accelerate Manufacturing Informatization

Adhere to market-oriented, industrialized, and socialized development. Expand sectors, scale up operations, optimize structures, enhance capabilities, and standardize the market to increase the share and quality of the service industry.

Chapter 16: Expanding Productive Service Industries

Promote modern logistics management technologies to internalize enterprise logistics services, achieving integrated operations for procurement, production organization, sales, and recycling of renewable resources. Cultivate professional logistics enterprises and actively develop third-party logistics. Establish a logistics standardization system, strengthen the development and application of new logistics technologies, advance logistics informatization, and enhance logistics infrastructure.Integrate and build major logistics hubs, developing regional logistics centers.

Section 3: Promoting the Orderly Development of Financial Services

Expand and standardize legal services including lawyers, notaries, legal aid, judicial appraisals, and economic arbitration. Develop project planningM&A, Financial AdvisoryProvide investment and asset management services, including restructuring and listing. Standardize economic certification services such as accounting, auditing, tax, asset valuation, calibration, testing, and inspection. Support the development of consulting services, including market research, engineering consulting, management consulting, and credit rating. Encourage specialized industrial design. Promote the advertising industry. Plan exhibition layouts rationally and develop the convention and exhibition industry.

Prioritize public transportation, improve urban road networks and transit stations, and focus on large cities and city clusters with the necessary conditions.Prioritize rail transit with forward-looking planning and timely construction. Actively develop the taxi industry. Upgrade and expand urban water supply, drainage, and reclaimed water networks to enhance safe water supply capabilities and broaden the use of reclaimed water. Plan and implement the construction and retrofitting of centralized urban heating and gas facilities appropriately.

Section 5: Accelerate the Development of Community Service Industries

Based on resource and environmental carrying capacity, development foundations, and potential, gradually establish a coordinated regional development pattern that leverages comparative advantages, strengthens weak areas, and ensures equitable access to basic public services. This approach will clarify functional positioning across regions, foster positive interaction between eastern, central, and western areas, and narrow gaps in public services and living standards.

Chapter 19: Implementing the Overall Strategy for Regional Development

Section 3: Promoting the Rise of Central China

Leverage existing foundations in the central region to upgrade industrial levels, advance industrialization and urbanization, and drive growth by capitalizing on its strategic position connecting east and west. Strengthen modern agriculture, particularly in major grain-producing areas, by increasing investment in agricultural infrastructure and boosting production capacity for staple commodities like grain, while promoting value-added processing and conversion of agricultural products. Support Shanxi, Henan, and Anhui provinces in developing large-scale coal bases, building power plants near mines, and integrating coal and electricity operations. Accelerate structural adjustments in competitive industries such as steel, chemicals, non-ferrous metals, and building materials to establish centers for high-quality raw materials. Promote equipment manufacturing sectors including mining machinery, automobiles, agricultural machinery, locomotives, and power transmission/equipment, alongside high-tech industries such as software, optoelectronics, new materials, and biotechnology. Build a comprehensive transportation system with priority on mainline railways and highways, inland river ports, and regional airports. Strengthen infrastructure like logistics centers and improve market systems.

Section 4: Encouraging the Eastern Region to Lead Development

The eastern region must take the lead in enhancing independent innovation capabilities, optimizing economic structures and transforming growth models, and perfecting the socialist market economy system. By pioneering reform and development, it should drive and support the development of central and western regions. Accelerate the creation of a batch of proprietary intellectual property rights, core technologies, and well-known brands to improve industrial quality and competitiveness. Prioritize the development of advanced manufacturing, high-tech industries, and services, focusing on precision processing and high-end products. Promote the upgrading of processing trade, actively undertake transfers of high-tech industries and modern service sectors, raise the level of export-oriented economies, and strengthen international competitiveness. Strengthen arable land protection and develop modern agriculture. Improve resource utilization efficiency—particularly for land and energy—enhance ecological environmental protection, and boost sustainable development capabilities. Continue to leverage the roles of special economic zones and Shanghai Pudong New Area, advance the development and opening up of Tianjin Binhai New Area, and support economic development in cross-strait west coast areas and other regions with concentrated Taiwanese investment, thereby driving regional economic growth.

Section 5: Supporting the Development of Revolutionary Old Areas, Ethnic Regions, and Border Regions

Increase fiscal transfer payments and government investment to accelerate development in revolutionary base areas, ethnic regions, and border areas. Protect natural ecosystems and improve infrastructure. Expand preschool education, accelerate the popularization of compulsory education, establish ethnic middle school and high school classes in central cities, strengthen universities for ethnic minorities, and advance higher education in ethnic regions. Build communities preserving intangible cultural heritage of ethnic minorities, support ethnic minority publishing, and establish bilingual education demonstration zones. Strengthen the development and stability of talent pools in ethnic minority groups. Support the growth of characteristic ethnic industries, products meeting specific ethnic needs, ethnic medicine, and other competitive sectors. Prioritize solutions for extreme poverty among ethnic minorities, promote economic and social development in smaller ethnic populations, and advance initiatives to revitalize border regions and enrich local people. Continue implementing policies supporting Tibet, Xinjiang, and the Xinjiang Production and Construction Corps.

Section 6: Improve the Regional Coordination and Interaction Mechanism

Strengthen market mechanisms to transcend administrative boundaries, facilitate the free flow of production factors across regions, and guide industrial transfers. Enhance cooperation mechanisms by encouraging and supporting diverse forms of regional economic collaboration and technical and talent partnerships among all areas, fostering a development pattern where eastern regions lead western regions and east, central, and west regions develop together. Improve mutual assistance mechanisms, with developed regions providing support to less-developed areas through targeted aid and social donations. Establish robust support mechanisms based on the principle of equalized public services, increasing national backing for less-developed regions. The state will continue to strengthen its support for central and western regions in terms of economic policies, funding allocation, and industrial development.

Chapter 20: Promoting the Formation of Functional Zones

Based on resource and environmental carrying capacity, existing development intensity, and development potential, we will coordinate the future distribution of China's population, economic layout, land use, and urbanization patterns. The national territory will be divided into four major functional zones: optimized development, key development, restricted development, and prohibited development. Regional policies and performance evaluation metrics will be adjusted according to these functional zone designations to standardize spatial development order and establish a rational spatial development structure.

Section 1: Optimizing the Development Direction of the Development Zone

An optimized development zone refers to an area where land development density is already high and the carrying capacity of the resource and environment has begun to decline. We must shift away from a growth model reliant on excessive land use, heavy resource consumption, and significant pollution emissions. Instead, we should prioritize improving the quality and efficiency of growth, elevate our level of participation in global division of labor and competition, and continue to serve as the driving force for national economic and social development and the primary region engaging China in the global economy.

Section 2: Development Directions for Key Development Areas

Key development areas are regions with strong resource and environmental carrying capacity, as well as favorable conditions for economic growth and population concentration. These areas should strengthen infrastructure, improve the investment and business environment, promote industrial cluster development, expand economic scale, accelerate industrialization and urbanization, accept industrial transfers from optimized development areas, and receive population relocation from restricted and prohibited development areas. Over time, they will become key carriers supporting national economic development and population concentration.

Section 3: Development Direction of Restricted Development Areas

Restricted development zones are areas with weak resource and environmental carrying capacity, insufficient conditions for large-scale economic and population concentration, and significant implications for national or regional ecological security. These areas must prioritize protection, adopt moderate development, and pursue point-based growth. Localized, sustainable industries should be developed in line with local resource and environmental capacities. Ecological restoration and environmental protection efforts must be strengthened, while overburdened populations should be gradually and orderly relocated. Over time, these zones will become important ecological function areas at the national or regional level.

Section 4: Development Directions for Prohibited Development Zones

Prohibited development areas refer to legally established natural conservation zones. These areas must be subject to mandatory protection in accordance with laws, regulations, and relevant plans. Human interference with natural ecosystems shall be controlled, and any development activities inconsistent with their primary functional positioning are strictly prohibited.

Section 5: Regional Policies Implementing Classified Management

Fiscal Policy: Increase fiscal transfers to restricted and prohibited development zones for public services and ecological environmental compensation, gradually ensuring equal access to basic public services for local residents. Investment Policy: Prioritize support for public service infrastructure construction and ecological environmental protection in restricted and prohibited development zones, and support infrastructure development in key development zones. Industrial Policy: Guide the relocation of land-intensive, high-consumption processing industries and labor-intensive industries from optimized development zones to improve industrial structure; enhance industrial supporting capabilities in key development zones; encourage characteristic industries in restricted development zones while restricting expansion of industries inconsistent with their primary functional positioning. Land Use Policy: Implement stricter controls on incremental construction land in optimized development zones; appropriately expand construction land supply in key development zones while ensuring no reduction in basic farmland; enforce strict land use management in restricted and prohibited development zones, prohibiting any change in ecological land use. Population Management Policy: Encourage settled migration of external populations with stable employment and housing in optimized and key development zones; guide gradual, voluntary, orderly, and smooth population transfer from restricted and prohibited development zones. Performance Evaluation and Official Assessment: For optimized development zones, emphasize evaluation of economic structure, resource consumption, and independent innovation while de-emphasizing economic growth; for key development zones, comprehensively evaluate economic growth, quality and efficiency, industrialization, and urbanization levels; for restricted development zones, prioritize ecological environmental protection evaluation while de-emphasizing economic growth, industrialization, and urbanization; for prohibited development zones, focus primarily on ecological environmental protection evaluation.

Chapter 21: Promoting Healthy and Sustainable Urbanization

Adhere to coordinated development of large, medium, and small cities alongside small towns; enhance the comprehensive carrying capacity of urban areas; follow a step-by-step approach and promote resource conservation.Advance urbanization actively and steadily, gradually transforming the urban-rural dual structure, in accordance with the principles of land conservation, intensive development, and rational spatial planning.

Section 1: Guiding Urbanization through Population Classification

For migrant workers temporarily entering cities, continue the policy of dual employment and rural-urban mobility, ensuring their legal rights in wages, working hours, statutory holidays, and safety protection. For migrant workers who have stable jobs and housing in cities, create conditions to gradually convert them into urban residents, granting them the rights and obligations of local citizens as prescribed by law. For rural residents who have lost all land due to expropriation for urban construction, convert them into urban residents; city governments must provide employment assistance, skills training, unemployment insurance, and minimum living allowances. Encourage rural populations to settle in small and medium-sized cities and towns. For megacities, control rapid population growth from the source by adjusting industrial structures and using economic measures.

Section 2: Establish a Rational Spatial Pattern for Urbanization

Urban agglomerations should serve as the primary form for advancing urbanization. We will gradually establish a spatial pattern characterized by coastal areas and the Beijing-Guangzhou and Beijing-Harbin corridors as vertical axes, the Yangtze River and Longhai lines as horizontal axes, with multiple urban agglomerations forming the core, other cities and small towns distributed as points, and permanent farmland and ecological zones interspersed to ensure efficient, coordinated, and sustainable development.
Regions such as the Jing-Jin-Ji, Yangtze River Delta, and Pearl River Delta, which have already established urban agglomeration development patterns, should continue to leverage their driving and radiating effects. They must strengthen division of labor and collaboration among cities within the agglomerations, enhance complementary advantages, and boost overall competitiveness.
In regions with the potential for urban cluster development, strengthen coordinated planning. Lead with megacities and large cities, leveraging the role of central cities to form new urban clusters characterized by efficient land use, high employment, strong factor agglomeration, and balanced population distribution.
In areas with scattered populations, poor resource conditions, and no potential for urban cluster development, focus on strengthening existing cities, county seats, and capable towns to become centers that concentrate economic activity, population, and public services in the region.

Section 3: Strengthen Urban Planning, Construction, and Management

Plan urban scale and layout in accordance with the natural carrying capacity of local water and soil resources, environmental capacity, and geological structures, ensuring alignment with local economic development, employment opportunities, infrastructure, and public service provision capabilities.
Strengthen protection of urban water sources and expand water supply infrastructure. Water-scarce cities must appropriately control their scale and prohibit the development of high-water-consumption industries and construction of water-intensive landscapes. Cities with groundwater over-extraction must limit groundwater withdrawal to prevent land subsidence. Urban road, water supply and drainage, energy, environmental protection, telecommunications, and cable TV infrastructure projects must overcome departmental and local fragmentation. They should be developed collaboratively under unified planning to minimize blind excavation, filling, demolition, and reconstruction. Enhance urban comprehensive disaster prevention and mitigation capabilities and emergency management systems.Strengthen construction. Steadily advance the renovation of dilapidated urban housing and "urban villages," safeguarding the legitimate rights and interests of displaced households. Urban planning and architectural design should preserve history, inherit culture, highlight distinctive features, and protect ethnic heritage, cultural relics, and scenic resources. Strengthen supervision of urban plan implementation, promote integrated urban management, and enhance urban governance capabilities.

Section 4: Improving the Institutional Mechanisms for Urbanization Development

Accelerate the removal of institutional barriers separating urban and rural areas, and establish a sound fiscal, land acquisition, administrative management, and public service system compatible with healthy urbanization. Improve the setup and management model of administrative divisions. Reform the employment management system that separates urban and rural areas, deepen the household registration system reform, and gradually establish a unified population registration system for urban and rural areas.

Part 6: Building a Resource-Efficient and Environmentally Friendly Society

Implement the basic national policies of resource conservation and environmental protection to build a national economic system with low input, high output, low consumption, minimal emissions, circularity, and sustainability, as well as a resource-efficient and environmentally friendly society.

Chapter 22: Developing a Circular Economy

Persist in development that balances conservation with utilization, prioritizing conservation. Following the principles of reduction, reuse, and recycling, establish a society-wide resource circular economy system across resource extraction, production consumption, waste generation, and consumption stages.

Section 1: Energy Conservation

Strengthen policy guidance on energy conservation and efficient use, and intensify efforts to reduce energy consumption. Achieve structural energy savings by optimizing the industrial structure, particularly by reducing the share of high-energy-consuming industries; achieve technological energy savings by developing and promoting energy-saving technologies; and achieve management energy savings by strengthening institutional frameworks and oversight across all stages of energy production, transportation, and consumption. Prioritize energy conservation efforts in key sectors such as steel, non-ferrous metals, coal, power generation, chemicals, and building materials, as well as among major energy consumers. Strengthen enforcement of fuel economy standards for vehicles and accelerate the phase-out of outdated transport equipment. Establish standards for liquid fuel substitutes and actively promote petroleum alternative products. Encourage the production and use of high-efficiency energy-saving products.

Section 2: Save Water

Promote agricultural water conservation, advance rainwater harvesting, develop water-saving irrigation forage bases, improve water use efficiency, and achieve zero growth in total irrigation water usage. Prioritize water-saving technology upgrades in high water-consumption industries such as thermal power and metallurgy. Strengthen urban water management.Promote water conservation by mandating the use of water-saving equipment and fixtures, and expand the utilization of reclaimed water. Strengthen water-saving infrastructure in public buildings and residential areas. Actively advance seawater desalination, direct seawater use, and mine water utilization.

Section 3: Land Conservation

Implement the fundamental state policy of protecting cultivated land. Control total volume, strictly manage new additions, and revitalize existing stock by limiting the conversion of agricultural land to construction land. Establish and improve quota standards for land use, promote multi-story standard industrial buildings, carry out rural land consolidation, adjust residential layouts, control rural settlement land use, and advance reclamation of abandoned land. Restrict the construction of large urban squares, and develop energy- and land-saving public buildings and housing. By 2010, all cities shall ban the use of solid clay bricks.

Section 4: Material Conservation

Promote eco-design for products, advance material-saving technologies and processes, and encourage the use of compact, lightweight, and recycled materials. Enhance building quality and extend service life; advocate simple, functional interior finishes. Advance substitution and conservation of wood, metals, cement, and other materials. Prohibit excessive packaging. Standardize and reduce the production and use of single-use items.

Section 5: Strengthen Comprehensive Resource Utilization

Promote comprehensive utilization of co-occurring mineral resources in coal, ferrous metals, and non-ferrous metals. Advance the reuse of industrial waste such as fly ash, coal gangue, metallurgical and chemical slag, and tailings. Enhance circular use of straw, agricultural films, and livestock manure. Implement an extended producer responsibility system to advance recycling of waste paper, scrap metal, used tires, and e-waste. Strengthen resource recovery from municipal solid waste and sludge.
Promote circular economy transformation in the steel, non-ferrous metals, coal, power, chemical, building materials, and sugar industries to establish a batch of demonstration enterprises. Launch circular economy pilot programs in key sectors, fields, industrial parks, and cities. Develop high-efficiency ecological economies in areas such as the Yellow River Delta and the Three Gorges Reservoir region.

Section 6: Strengthening Policies and Measures to Promote Conservation

Accelerate legislation on the circular economy. Implement a target responsibility and assessment system for energy consumption per unit. Refine access standards for energy and water consumption in key industries, energy efficiency standards for major energy-using products and buildings, energy-saving design codes for key industries, and water intake quota standards. Strictly enforce technical standards for design, construction, and production, as well as material consumption accounting systems. Establish a mandatory phase-out system for outdated processes, technologies, and equipment with high energy and water consumption. Promote mandatory energy efficiency labeling and energy-saving product certification systems. StrengthenDemand-side energy management, government energy-efficient procurement, and energy performance contracting. Implement fiscal, pricing, and investment policies that promote resource conservation, comprehensive utilization, and the development of oil substitute products. Strengthen society-wide awareness of resource scarcity and conservation.

Chapter 23: Protecting and Restoring Natural Ecosystems

Shift the focus of ecological conservation and restoration from post-event remediation to proactive protection, from primarily artificial construction to natural recovery, and reverse the trend of ecological degradation at its source.
Establish key ecological function zones in restricted development areas such as natural forest reserves and critical water conservation zones to promote natural ecosystem restoration. Strengthen legal frameworks, clarify responsibilities, and enhance supervision of nature reserves. Effectively protect biodiversity and prevent damage from invasive alien species to China's ecosystems. Establish an ecological compensation mechanism based on the principle that developers are responsible for protection and beneficiaries must provide compensation.

Chapter 24: Strengthen Environmental Protection Efforts

Adhere to prevention-first and comprehensive governance, strengthen pollution control at the source, and resolutely shift away from the pattern of polluting first and cleaning up later, or polluting while attempting to remediate. Focus on resolving critical issues that impact economic and social development and severely harm public health, effectively control pollutant emissions, and rapidly improve environmental quality in key river basins, regions, and cities.

Section 1: Strengthen Water Pollution Prevention and Control

Strengthen water pollution prevention and control in key river basins and regions, including the "Three Rivers and Three Lakes." Scientifically designate drinking water source protection zones, enhance regulation of discharges into major rivers and lakes, eliminate all direct discharge outlets from drinking water sources, and strictly prohibit the discharge of non-compliant wastewater into rivers, lakes, seas, and oceans. Improve urban sewage treatment infrastructure and implement comprehensive sewage treatment fees to achieve a city-level sewage treatment rate of no less than 70% by 2010.

Section 2: Strengthening Air Pollution Control

Strengthen air pollution control in key cities. Accelerate the construction of desulfurization facilities at existing coal-fired power plants; mandate that new coal-fired power plants install desulfurization equipment in compliance with emission standards. Advance comprehensive sulfur dioxide control across the steel, non-ferrous metals, chemical, and building materials sectors. Strictly limit the construction or expansion of coal-fired power plants (excluding combined heat and power) in large and medium-sized cities and their suburbs. Prohibit new or expanded high-energy-consumption enterprises such as steel and smelting operations in these areas. Intensify efforts to control urban smoke, dust, fine particulate matter, and vehicle exhaust emissions.

Section 3: Strengthening Prevention and Control of Solid Waste Pollution

Accelerate the construction of hazardous waste treatment facilities to ensure proper disposal of hazardous and medical wastes. Strengthen regulation of hazardous chemicals, intensify governance of heavy metal pollution, and advance harmless treatment of stored chromium slag. Enhance safety supervision of nuclear facilities and radioactive sources to guarantee nuclear and radiation environmental safety. Improve urban waste treatment infrastructure and increase collection of urban waste disposal fees. By 2010, the harmless treatment rate of urban domestic waste shall not be lower than 60%.

Section 4: Implement Strong Environmental Measures

Regions must fully assume responsibility for environmental quality within their jurisdictions by implementing strict environmental performance assessments, enforcement accountability systems, and liability追责 mechanisms. All levels of government shall prioritize environmental protection expenditures in their budgets and increase them annually. Strengthen the environmental supervision system, enhance regulatory capacity, and intensify enforcement efforts. Enforce total emission caps, emission permitting, and environmental impact assessment systems. Implement clean production audits, eco-labeling, and environmental certification programs; strictly enforce mandatory phase-outs and time-bound remediation orders; establish cross-provincial river section water quality assessment mechanisms. Publish environmental quality reports and require enterprises to disclose environmental information, encouraging public participation and oversight. Vigorously develop the environmental protection industry, establish diversified social financing mechanisms, and leverage economic instruments to accelerate market-based pollution control. Actively engage in global environment and development affairs and fulfill international environmental conventions.

Chapter 25: Strengthening Resource Management

Implement limited, orderly, and compensated development to strengthen the protection and management of various natural resources.

Section 1: Strengthen Water Resource Management

Align with natural laws to adjust water management strategies, shifting from flood control alone to comprehensive flood management and scientific utilization of rainwater resources. Transition from focusing on water resource development and use to prioritizing conservation, protection, and optimized allocation. Strengthen unified water resource management by coordinating domestic, industrial, and ecological water needs, balancing upstream-downstream and surface-groundwater distribution, and controlling groundwater extraction. Improve the water abstraction licensing system and paid water use policies, implement a dual system of total water use control and quota management, establish a water resource management framework integrating basin and regional administration, and create systems for initial national water rights allocation and water rights trading. Complete Phase I of the East and Central Routes of the South-to-North Water Diversion Project, and reasonably plan and construct additional water diversion projects.

Section 2: Strengthen Land Resource Management

Implement the strictest land management system. Strictly enforce statutory approval procedures for land use and the farmland compensation-for-occupation system; prohibit attracting investment by illegally suppressing land prices. Rigorously manage revisions to comprehensive land use plans, urban master plans, and village/township plans. Strengthen land use planning, land use control, and pre-examination of project land applications. Enhance management of rural construction land and reform/improve the homestead approval system. Perfect the accountability assessment framework for farmland protection and implement a land management accountability system. Strengthen land title registration and land asset management.

Section 3: Strengthen Management of Mineral Resources

Strengthen unified planning and management of mineral resource exploration and development. Strictly enforce entry requirements for mineral development, enhance qualification certification and licensing, and ensure all activities comply with laws, regulations, and plans. Improve the mineral resource development management system by legally establishing prospecting and mining rights, creating a trading mechanism for mining rights, and strengthening paid usage systems and environmental restoration compensation mechanisms for mines. Enhance strategic reserve systems for critical resources by expanding national stockpiles of key mineral products and optimizing their structure and distribution. Implement a combined approach of national and user reserves, mandating compulsory reserves for major resource consumers.

Chapter 26: Rational Use of Ocean and Climate Resources
Section 1: Protecting and Developing Marine Resources

Strengthen marine awareness, safeguard maritime rights and interests, protect marine ecosystems, develop marine resources, implement integrated ocean management, and promote the development of the marine economy. Prioritize comprehensive governance of key sea areas to halt ecological deterioration in coastal waters such as the Bohai Sea, Yangtze River Estuary, and Pearl River Estuary. Restore nearshore marine ecological functions, protect marine and coastal ecosystems including mangroves, coastal wetlands, and coral reefs, and strengthen island conservation and management of marine nature reserves. Refine marine functional zoning, standardize sea area usage, and strictly limit sand mining. Conduct focused exploration and development of Exclusive Economic Zone (EEZ), continental shelf, and international seabed resources.

Section 2: Development and Utilization of Climate Resources

Strengthen the rational development and utilization of atmospheric water resources, solar energy, wind energy, and other renewable sources. Advance meteorological services by enhancing applications of weather satellites, radar systems, and comprehensive monitoring networks, while establishing advanced operational service platforms. Improve capabilities for warning and forecasting severe weather events to increase accuracy and timeliness. Expand meteorological support for agriculture and other key sectors. Strengthen work on weather modification, atmospheric composition monitoring, and climate change prediction and assessment.

Part VII: Implementing the Strategy of Rejuvenating the Country through Science and Education and Strengthening the Nation with Talents

Make technological progress and innovation key drivers of economic and social development. Prioritize education and the cultivation of high-quality talent with both moral integrity and professional competence. Deepen institutional reforms, increase investment, accelerate the development of science and technology education, and strive to build an innovative nation and a powerhouse of human capital.

Chapter 27: Accelerating Technological Innovation and Leapfrog Development

Implement the national medium- and long-term plan for science and technology development. Following the guidelines of independent innovation, key breakthroughs, developmental support, and future leadership, accelerate the construction of a national innovation system. Continuously strengthen enterprise innovation capabilities, deepen integration among science and technology, economy, and education, and comprehensively enhance overall scientific and technological strength and industrial technical levels.

Section 1: Vigorously Promote Independent Innovation

Strengthen basic research, frontier technology research, and social public welfare technology research. Make forward-looking deployments in information, life sciences, space, ocean, nanotechnology, and new materials; concentrate superior resources and increase investment to achieve major breakthroughs. Align with national strategic needs by launching key scientific and technological projects to tackle critical challenges in energy, resources, environment, agriculture, information, and health, enabling integrated innovation and leapfrog development of core technologies. Implement major industrial technology development initiatives to promote the introduction, absorption, digestion, and re-innovation of imported technologies.
Give equal weight to philosophy and social sciences and natural sciences, and foster the prosperity and development of philosophy and social sciences. Implement the Marxist theory research and construction project, build an innovation system for philosophy and social sciences, actively promote theoretical innovation, and further enhance their role in advancing economic and social development. Promote the integration of natural sciences with philosophy and social sciences.

Section 2: Strengthening Independent Innovation Capabilities

Build a scientific and technological support system to comprehensively enhance independent innovation capabilities. Establish major national science infrastructure, implement knowledge innovation projects, integrate research and experimental systems, develop world-class research institutions and research universities, and create high-level bases for scientific research and talent development. Launch major scientific engineering projects, strengthen the construction of key state laboratories, build a national platform for scientific and technological foundational conditions, and promote the sharing of scientific resources. Develop a set of industrial technology R&D pilot facilities to improve industrial technology innovation capabilities. Enhance science popularization capabilities and implement a national action plan for improving scientific literacy among all citizens.

Section 3: Strengthen the Leading Role of Enterprises in Technological Innovation

Accelerate the establishment of a technology innovation system led by enterprises, guided by the market, and integrating industry, academia, and research to form a basic institutional framework for independent innovation. Strengthen the development of national engineering laboratories, national engineering centers, and enterprise technology centers to build foundational support platforms for enterprise-led innovation. Foster technical consulting, technology transfer, and other intermediary services for innovation, creating a comprehensive social service system. Implement fiscal, tax, financial, and government procurement policies that support independent innovation to encourage increased R&D investment by enterprises. Mobilize the innovative potential of all types of enterprises, especially SMEs, and promote technological breakthroughs and inventions.

Section 4: Strengthen Intellectual Property Protection

Strengthen public awareness of intellectual property rights, improve the IP protection system, establish an IP early-warning mechanism, and strictly crack down on IP infringement in accordance with the law. Strengthen foundational metrology research, refine the national standards system, and promptly phase out outdated standards. Prioritize technical standards with independent intellectual property rights and actively participate in the development of international standards. Develop IP services including patent, trademark, and copyright transfer and agency, as well as intangible asset valuation.

Section 5: Deepening the Reform of the Science and Technology System

Integrate technology resources to allocate basic research, frontier technology research, and public-interest research efforts effectively. Promote the appropriate mobility and collaboration of researchers among research institutions, universities, and enterprises, and establish a mechanism for sharing technological resources. Deepen the reform that converts technology development institutes into enterprises and advance reforms in public-interest research institutions. Improve the modern system for research institutes and create an open, collaborative R&D framework. Refine the science and technology management system and operational mechanisms by reforming evaluation, assessment, and reward systems for scientific achievements. Establish a diversified, multi-channel funding system for science and technology, ensuring that growth in R&D expenditures significantly outpaces growth in regular fiscal revenue. Gradually increase the share of national fiscal spending on science and technology as a percentage of GDP.

Chapter 28: Prioritize the Development of Education

Comprehensively implement quality-oriented education, focus on completing the three key tasks of "popularization, development, and improvement," accelerate adjustments to the education structure, promote comprehensive and coordinated educational development, and build a learning society.

Section 1: Universalize and Consolidate Compulsory Education

Strengthen compulsory education in rural areas and strive to reduce dropout rates among rural students, particularly girls, ethnic minority students, and those from low-income families. Ensure that the three-year retention rate for junior high school nationwide reaches 95%. Promote equity in compulsory education across urban and rural areas and between different regions.Promote balanced development of compulsory education. Local governments must ensure that children of migrant workers have equal access to compulsory education as local students.

Section 2: Vigorously Develop Vocational Education

Prioritize the development of secondary vocational education, expanding annual enrollment to 800 million students. Promote diverse forms of vocational skills training. Reform teaching methods and update curriculum content in vocational schools. Implement a work-study integration model with industry-education collaboration and establish flexible learning systems. Foster coordinated development between vocational education and general high school education, enhancing overall institutional quality and standards.

Section 3: Improving the Quality of Higher Education

Focus higher education development on improving quality and optimizing structure. Strengthen research and practice to cultivate students' innovation spirit and practical skills. Steadily advance the popularization of higher education, steadily develop undergraduate and graduate programs, and enhance the quality of high-level talent training. Prioritize the strengthening of high-level universities and key disciplines to promote coordinated development across all types of institutions. Continue developing various forms of adult education.

Section 4: Increase Education Investment

Ensure that the growth rate of fiscal education funding significantly exceeds that of regular fiscal revenue, gradually raising the proportion of fiscal education spending to 4% of GDP. Strengthen the government's responsibility for guaranteeing compulsory education and increase transfer payments from central and provincial governments to financially struggling counties for compulsory education funding. Promote educational equity by directing public education resources toward rural areas, central and western regions, impoverished areas, ethnic minority regions, under-resourced schools, and students from low-income families. Governments at all levels should increase investment in vocational education, with a focus on supporting secondary vocational schools serving rural students. Support the establishment of private charitable organizations to fund education for students from impoverished families and encourage contributions from all sectors of society. Continue implementing student loan programs, improve the financial aid system across all education stages, and enhance support mechanisms for students from low-income households. Increase the share of lottery public welfare funds allocated to special education.

Section 5: Deepening the Reform of the Education System

Clarify the responsibilities of governments at all levels in providing public education, establish and improve school setting standards, support the development of private education, and create a balanced educational landscape where both public and private sectors thrive. Establish a diversified education funding system: compulsory education shall be fully funded by the government; high school education shall be primarily funded by the government; vocational and higher education shall rely on a complementary model of government and social funding. Regulate education fees and implement a strict fee disclosure system. Build an education framework that adapts to the requirements of quality-oriented education.Reform the teaching system by revising admission and examination policies, advancing curriculum reforms, reducing excessive academic burdens on primary and secondary students, and improving evaluation systems. Establish a clear and accountable education management structure that grants schools greater autonomy in disciplines, majors, course offerings, enrollment quotas, and faculty hiring to cultivate and leverage their unique strengths and characteristics. Strengthen teacher workforce development.

Chapter 29: Advancing the Strategy of Building a Leading Nation through Talent

Adhere to the principle of Party management of talent, firmly establish a scientific view of talent development, expand the talent workforce, enhance talent quality, optimize talent structure, improve employment mechanisms, leverage talent potential, and promote the transformation from a populous nation to a powerhouse of human capital.

Section 1: Building a High-Quality Talent Workforce

Launch a Party and government talent development program to improve training systems, strengthen theoretical education, professional training, and practical experience. Enhance the political quality and governance capabilities of Party and government personnel, building a high-quality leadership team. Implement an entrepreneur development program to cultivate innovative entrepreneurs who meet the demands of economic globalization, advancing the professionalism and market orientation of enterprise management talent. Execute knowledge update programs for professional technical talent and strategic high-tech talent development initiatives, focusing on nurturing leading scientists, discipline heads, and strategic scientists. Launch a high-skilled talent development program by establishing training bases and public practice centers to build a robust high-skilled workforce. Strengthen the development of practical rural talent. Boost talent resource development and team building in central, western, and northeastern regions. Encourage and guide overseas Chinese scholars to return and contribute to national development. Actively attract high-level international talent.

Section 2: Innovation Talent Work Mechanism

Advance the market-based allocation of talent resources, remove institutional barriers to talent market development, standardize talent market management, and foster a social environment where talent flourishes and individuals are fully utilized. Deepen reforms in cadre and personnel systems, improve classified management mechanisms for cadres in government agencies, enterprises, and public institutions, and establish robust mechanisms for talent evaluation, selection, appointment, and incentive protection centered on ethics, competence, and performance. Establish a comprehensive cadre assessment and evaluation system aligned with the requirements of scientific development, emphasizing practical training and talent cultivation through real-world experience. Deepen reforms to the professional title system. Implement the Civil Servant Law and refine the civil servant system. Governments at all levels and enterprises and public institutions must increase investment in talent resource development, strengthen talent capability building, and create a diversified funding mechanism.

Part 8: Deepening Institutional Reform

Focus on transforming government functions and deepening reforms in enterprises, fiscal policy, and finance to accelerate the improvement of the socialist market economy system. Establish mechanisms that support shifting economic growth models and promote comprehensive, coordinated, and sustainable development.

Chapter 30: Advancing Reforms in the Administrative Management System

In line with the principles of streamlining, unity, and efficiency, and to ensure coordination among decision-making, execution, and oversight, we will establish an administrative management system that is scientifically informed, balanced in authority and responsibility, reasonably divided, smoothly executed, and effectively supervised. We will accelerate the building of a service-oriented, accountable, and rule-of-law government.

Section 1: Advancing the Transformation of Government Functions

Adhere to the principles of separating government functions from enterprise operations, state assets from public administration, government affairs from public institutions, and government roles from market intermediary organizations. Clearly define the scope of government responsibilities and strengthen social management and public service functions at all levels. Further advance administrative approval system reforms by reducing and standardizing approvals. Deepen government institutional reform to optimize organizational structure, reduce administrative layers, clarify role divisions, improve administrative efficiency, lower costs, and achieve scientific, standardized, and legally mandated government responsibilities, structures, and staffing. Rationalize the division of authority and responsibility between the central and local governments—and among local governments themselves—in economic regulation, market supervision, social management, and public services. Accelerate the classification-based reform of public institutions.

Section 2: Improving Government Decision-Making Mechanisms

Strengthen the mechanisms for scientific and democratic decision-making, including collective decision-making on major issues, expert consultation, public notice and hearings, and accountability for decision-making errors. Advance government transparency through institutionalized open government practices, improve the news release system, enhance governmental transparency, and safeguard citizens' rights to information, participation, expression, and oversight. Comprehensively promote administration by law; administrative organs and their staff must perform their duties strictly within legal authority and procedures. Implement comprehensive law enforcement, strengthen supervision of administrative law enforcement, and establish a system of accountability for enforcement actions. Enforce a government accountability system and improve the administrative compensation framework.

Section 3: Deepening the Reform of the Investment System

Uphold enterprises' autonomy in investment decisions, gradually reduce the scope of government approval for investment projects, and improve the project approval and filing systems. Clearly define the scope of government investment and allocate investment responsibilities between central and local governments, while refining decision-making rules.and programs to improve capital efficiency, establish accountability for decision-making in government investment projects, and build a sound investment regulation system.

Chapter 31: Upholding and Improving the Basic Economic System

Uphold the basic economic system that maintains public ownership as the mainstay while allowing diverse forms of ownership to develop together. Unswervingly consolidate and develop the public sector, and unswervingly encourage, support, and guide the development of non-public sectors such as individual and private enterprises.

Section 1: Deepening the Reform of State-Owned Enterprises

Direct state-owned capital toward key industries and critical sectors vital to national security and the nation's economic lifeline, optimizing the layout of the state-owned economy. Strengthen the control, influence, and driving force of the state-owned sector to ensure its leading role. Refine mechanisms for state-owned capital to enter and exit markets and flow reasonably. Accelerate shareholding reform of large state-owned enterprises; except for a very few that must remain wholly state-owned, convert most into companies with diversified shareholders. Improve equity structures in state-owned enterprises, develop mixed-ownership economies, diversify investment entities and property rights, establish and perfect modern corporate systems, create effective corporate governance structures, and enhance enterprise vitality. Cultivate large corporations and enterprise groups with strong competitiveness. Rely wholeheartedly on the workforce and explore effective pathways for democratic employee management under the modern enterprise system. Continue deepening reforms in collective enterprises and develop diverse forms of collective economies.

Section 2: Improving the State-Owned Assets Supervision System

Enact comprehensive laws and supporting administrative regulations for the supervision of operating state-owned assets. Establish and improve systems for state capital operating budgets, enterprise performance evaluations, and accountability for major decision-making errors to ensure regulatory responsibilities are fulfilled and state-owned assets appreciate in value. Strengthen the supervision frameworks for state financial assets, non-operating assets, and natural resource assets to prevent the loss of state-owned assets.

Section 3: Deepening Reform of Monopolistic Industries

Adhere to the separation of government and enterprise, ease market access, introduce competition, and enforce regulation in accordance with the law to advance reforms in the management systems and property rights of monopoly industries. In line with the requirements for establishing a comprehensive transportation system, advance reforms in the management of the transportation sector. Actively and steadily promote railway system reform and accelerate reforms in railway investment and financing. Deepen power sector reform, consolidate the separation of generation and grid operations, expedite the separation of primary and auxiliary businesses, and steadily advance the separation of transmission and distribution along with the development of regional electricity markets. Deepen reforms in the oil, telecommunications, civil aviation, postal, and tobacco sectors.Reform grass, salt industry, and municipal public utilities; advance state-owned asset restructuring to establish a competitive market landscape and implement modern enterprise systems.

Section 4: Encouraging the Development of the Nonpublic Sector

Vigorously develop the non-public sector economy, including individual and private enterprises. Further eliminate institutional barriers and policy constraints hindering its growth, and fully implement measures to encourage, support, and guide the development of the non-public sector. Allow non-public enterprises to enter industries and sectors not prohibited by laws and regulations. Encourage and support their participation in state-owned enterprise reforms, and enable them to access sectors such as financial services, public utilities, and infrastructure. Improve policies related to finance, taxation, credit guarantees, and technological innovation. Enhance the environment for administrative law enforcement and judicial proceedings, and strengthen service provision and regulatory oversight for non-public enterprises.

Chapter 32: Advancing Reforms in the Fiscal and Taxation System

Adjust and standardize revenue and expenditure relations between the central and local governments, as well as among local government levels, to establish a fiscal and tax system that aligns with administrative responsibilities. Implement fiscal and tax policies that promote technological innovation, shift growth models, and optimize economic structure.

Section 1: Improving the Fiscal System

Accelerate the construction of a public finance system by clearly defining fiscal expenditure responsibilities across government levels and reasonably adjusting revenue sharing arrangements. Improve transfer payment systems at the central and provincial levels, streamline sub-provincial fiscal management, and where conditions permit, implement direct provincial-to-county management. Gradually advance equalization of basic public services. Reform budget preparation to enhance standardization and transparency. Continue deepening reforms in departmental budgets, centralized treasury payments, government procurement, and revenue-expenditure separation. Establish treasury cash management and national debt balance control systems, and advance government accounting reform. Strengthen budget execution audits to ensure strict compliance. Develop a fiscal performance evaluation system to improve the efficiency of fund utilization. Enhance government debt management to mitigate risks. Refine non-tax revenue administration and standardize management of revenues from land transfers and mining rights concessions.

Section 2: Improving the Tax System

Implement a nationwide shift from production-based to consumption-based value-added tax (VAT). Appropriately adjust the scope of excise taxes and reasonably revise tax rates and collection methods for certain taxable items. Introduce fuel taxes at an appropriate time. Reasonably adjust the scope of business tax and related tax policies.. Improve the export tax refund system. Unify tax systems for all types of enterprises. Implement a personal income tax system combining comprehensive and classified approaches. Reform the real estate tax system, steadily introduce property tax while phasing out related fees. Reform the resource tax system. Enhance urban maintenance and construction tax, cultivated land occupation tax, and stamp duty.

Chapter 33: Accelerating the Reform of the Financial System
Section 1: Deepening Reform of Financial Enterprises

Actively advance comprehensive reform of state-owned commercial banks by accelerating non-performing asset disposal, bolstering capital adequacy, implementing shareholding reforms, and pursuing IPOs to enhance corporate governance, strengthen internal controls, and build modern shareholding banks with global competitiveness. Clearly define the functional roles of policy banks and establish robust self-discipline, risk regulation, and risk compensation mechanisms. Accelerate reforms of other commercial banks and postal savings institutions. Steadily develop financial enterprises with diverse ownership structures, encouraging private capital participation in the establishment, restructuring, and transformation of small and medium-sized financial institutions. Improve fundamental systems for standardized operations of financial institutions and steadily promote pilot programs for integrated financial services. Advance reforms of financial asset management companies. Enhance corporate governance at insurance companies and deepen reforms in insurance fund investment management.

Section 2: Accelerate the Development of Direct Financing

Actively develop capital markets for stocks and bonds, and steadily expand futures markets. Advance foundational systems for securities issuance, trading, and mergers and acquisitions; promote compliance by listed companies and securities institutions; establish a multi-tiered market system; enhance market functions; broaden channels for capital inflows; and increase the share of direct financing. Foster venture capital development and carry out pilot programs for industry investment funds.

Section 3: Strengthen the Financial Regulation Mechanism

Strengthen coordination between monetary policy and other macroeconomic policies, and improve the financial regulatory framework. Establish a mechanism for the integrated development of money markets, capital markets, and insurance markets to ensure financial stability and security. Steadily develop money markets, streamline monetary policy transmission mechanisms, and advance interest rate marketization. Improve the managed floating exchange rate system and gradually achieve convertibility of the renminbi in capital accounts.

Section 4: Improve the Financial Regulatory System

Establish a system for identifying, warning, and controlling financial risks to prevent and mitigate systemic financial risks. Standardize the market exit mechanism for financial institutions and establish corresponding deposit insurance, investor protection, and insurance guarantee systems. Enhance financial regulatory capabilities by strengthening risk supervision and capital adequacy constraints, and build an effective coordination mechanism among banking, securities, and insurance regulators as well as with macroeconomic policy authorities.

Chapter 34: Perfecting the Modern Market System
Section 1: Strengthening a Unified National Open Market

Further break administrative monopolies and regional barriers, improve commodity markets, and strengthen factor markets for capital, land, technology, and labor. Clearly define public-welfare and commercial land uses; implement paid usage for commercial infrastructure land, and refine systems for tendering, auctioning, and listing commercial land while ensuring transparent allocation of non-commercial land. Standardize the development of property rights trading markets. Actively develop technology markets. Gradually establish a unified urban-rural labor market.

Section 2: Improving the Price Formation Mechanism

Steadily and prudently advance price reforms for resource-based products. Reasonably adjust prices for water supply from hydraulic projects, urban water supply, and reclaimed water. Advance electricity price reform to gradually establish a mechanism where generation and retail prices are determined by market competition, while transmission and distribution prices are set by the government. Advance oil price reforms as appropriate and establish a natural gas pricing mechanism linked to alternative energy prices. Expand the scope of land prices formed by the market.

Section 3: Standardizing Market Order 

Crack down on illegal business activities and standardize market entity behavior and competition order. Eliminate arbitrary fees, fines, and forced contributions imposed on enterprises. Strengthen price supervision and prohibit price fraud and manipulation. Focus on improving credit records for loans, tax payments, contract performance, and product quality to accelerate the development of a social credit system and establish a robust mechanism for punishing dishonesty.

Article 9: Implementing an Open Strategy for Mutual Benefit and Win-Win Cooperation

Uphold the basic national policy of opening up, participate in international economic and technical cooperation and competition on a broader scale, in wider fields, and at a higher level, better promote domestic development and reform, and effectively safeguard national economic security.

Chapter 35: Accelerate the Transformation of Foreign Trade Growth Patterns

Leverage comparative advantages, address resource gaps, expand development space, and enhance added value to actively develop foreign trade. Promote the transition of foreign trade from quantity-driven growth to quality-focused improvement. By 2010, total import and export values for goods and services trade are projected to reach $1 trillion and $2 billion, respectively.

Section 1: Optimizing Export Structure

Focus on own-brand, self-owned intellectual property, and independent marketing to strengthen enterprises' comprehensive competitiveness. Support exports of autonomous high-tech products, electromechanical products, and labor-intensive products with high value-added. Strictly enforce labor, safety, and environmental standards, standardize export cost structures, and control exports of energy-intensive, highly polluting, and resource-based products. Improve processing trade policies, continue developing processing trade, prioritize raising industrial levels and processing depth, enhance domestic supply chain capabilities, and promote domestic industrial upgrading. Guide enterprises in building overseas marketing networks and strengthening independent marketing capabilities. Actively explore non-traditional export markets and advance market diversification. Strengthen dynamic monitoring of export prices, quality, and volumes, and establish a foreign trade promotion and regulation system oriented toward quality and efficiency.

Section 2: Actively Expand Imports

Implement a policy of balanced imports and exports, leveraging imports to drive China's economic development. Refine import tax policies to expand the import of advanced technologies, key equipment and components, and energy and raw materials that are in short supply domestically, promoting diversification of resource imports.

Section 3: Developing Trade in Services

Expand exports of services including engineering contracting, design consulting, technology transfer, financial and insurance services, international transportation, education and training, information technology, and ethnic cultural services. Encourage foreign investment in software development, cross-border outsourcing, logistics services, and other sectors. Establish several service outsourcing bases to orderly absorb the international transfer of service industries. Actively and steadily expand openness in the service sector, and establish a regulatory framework and promotion system for trade in services.

Section 4: Strengthen Fair Trade Policies

Strengthen the trade operation monitoring and early warning system, as well as mechanisms for handling trade friction; appropriately apply anti-dumping, countervailing, and safeguard measures.Strengthen response to trade disputesSafeguard the legitimate rights and interests of enterprises and national interests. Strengthen multilateral and bilateral dialogue and cooperation in international trade to achieve shared development. Improve trade laws and regulations, establish coordination mechanisms for bulk commodity imports and exports, enhance industry self-discipline, and standardize trade order. Effectively utilize technical trade measures, strengthen import and export inspection and quarantine, and monitor disease outbreaks.

Chapter 36: Enhancing the Quality of Foreign Investment Utilization

Seize the opportunities presented by international industrial transfer, continue to actively and effectively utilize foreign capital, and focus on introducing advanced technologies, management expertise, and high-quality talent from abroad. Integrate the use of foreign capital with enhancing domestic industrial structure and technological capabilities.

Section 1: Guiding Foreign Investment Direction

Strengthen laws, regulations, and policies to establish a stable, transparent management system and a fair, predictable policy environment. Guide foreign investment toward high-tech industries, modern service sectors, advanced manufacturing segments, infrastructure, and environmental protection, as well as into central and western regions and Northeast China's traditional industrial bases. Encourage multinational corporations to establish regional headquarters, R&D centers, procurement centers, and training centers in China. Support foreign-invested enterprises in technological innovation, enhance their supply chain capabilities, and extend industrial value chains. Regions and development zones with strong foreign investment attraction should focus on upgrading manufacturing levels and expand into R&D and modern logistics, fully leveraging agglomeration and spillover effects.

Section 2: Diversifying Foreign Investment Modalities

Guide domestic enterprises to collaborate with multinational corporations in various forms to leverage the technology spillover effects of foreign investment. While protecting domestic independent brands, guide and regulate foreign investors' participation in the restructuring and transformation of domestic enterprises. Effectively utilize overseas capital markets to support domestic companies in listing abroad. Improve venture capital exit mechanisms, encourage foreign venture capital firms and funds to invest in China. Encourage qualified overseas institutions to acquire equity stakes in domestic securities companies and fund management companies.
Continue leveraging loans from international financial organizations and foreign governments, directing them primarily to central and western regions and old industrial bases in northeastern China for resource conservation, environmental protection, and infrastructure development. Use international commercial loans reasonably and prudently, allowing qualified financial institutions and enterprises to raise funds overseas. Strengthen macro-monitoring and management of external debt, optimize debt structure, and maintain a moderate level of external debt.

Chapter 37: Actively Promote International Economic Cooperation

Improve systems and policies to facilitate cross-border flow and optimize allocation of production factors, and actively develop relations with neighboring countries and other regions.Economic and technical cooperation between nations to achieve mutual benefit and win-win outcomes.

Section 1: Implementing the "Going Global" Strategy

Support conditional enterprises in direct foreign investment and cross-border operations. Focus on leading industries to guide companies in overseas processing trade and diversify product origins. Foster and develop Chinese multinational corporations through cross-border M&A, equity participation, listings, restructuring, and joint ventures. Expand overseas resource cooperation development based on complementary advantages and mutual benefit. Encourage enterprises to participate in overseas infrastructure construction, enhance engineering contracting capabilities, and steadily advance labor cooperation. Improve the promotion and protection system for overseas investment, strengthen coordination and management of risks, and oversee state-owned assets abroad.

Section 2: Advance International Regional Economic Cooperation

Coordinate and steadily advance the facilitation of trade, investment, and transportation. Actively participate in international regional economic cooperation mechanisms, strengthen dialogue and consultation, and develop bilateral and multilateral economic and trade cooperation with other countries. Engage actively in the formulation of multilateral trade and investment rules, and promote the establishment of a new international economic order. Increase aid to other developing countries and further enhance technical and economic cooperation with them.

Part 10: Promoting the Construction of a Socialist Harmonious Society

Advance the building of a harmonious society by addressing the most pressing, direct, and practical concerns of the people, in line with the requirements of democracy and rule of law, fairness and justice, integrity and friendship, vitality, stability and order, and harmony between humanity and nature.

Chapter 38: Comprehensively Strengthen Population Work
Section 1: Stabilizing Low Fertility Levels

Uphold the basic national policy on family planning, stabilize and improve current fertility policies, and implement the target responsibility system for population and family planning. Establish assistance systems for families with only children who have died or become disabled, and expand free access to essential services. Strengthen the capacity for family planning service delivery and management. Improve the family planning service and management system for floating populations, centered on residence-based administration.

Section 2: Improving the Quality and Structure of the Birth Population

Promote knowledge of optimal birth and child-rearing, implement reproductive health promotion programs for family planning, strengthen interventions to prevent birth defects, encourage premarital and preconception medical examinations, and prevent or control the impact of congenital infections and genetic factors on newborn health. Implement comprehensive measures to effectively address the rising sex ratio at birth.

Section 3: Actively Respond to Population Aging

Promote a culture of respecting the elderly and foster a society where older adults are cared for, enjoy their lives, and remain active. Actively develop the aging industry to strengthen community-based care services, improve the quality of life for seniors, and safeguard their rights. Implement compassionate nursing initiatives by enhancing service infrastructure for elderly care, medical assistance, and home-based hospital beds.

Section 4: Safeguarding the Rights and Interests of Women and Children

Implement the basic state policy of gender equality and carry out the Women's Development Plan to ensure women's equal rights to education, employment, social security, marital property, and participation in social affairs. Strengthen efforts in women's health care, poverty alleviation, labor protection, and legal aid. Uphold the principle of prioritizing children, implement the Children's Development Plan, and safeguard children's rights to survival, development, protection, and participation in accordance with the law. Improve the environment for children's growth and promote their healthy physical and mental development. Enhance funding mechanisms for surgical rehabilitation and foster care for orphaned and disabled children, as well as support systems for AIDS-affected orphans.

Section 5: Protecting the Rights of Persons with Disabilities

Promote and encourage all sectors of society to care for, support, and participate in disability-related initiatives. Advance the construction of accessible facilities, strengthen rehabilitation services for persons with disabilities, poverty alleviation for impoverished persons with disabilities, compulsory education for children with disabilities, employment services, and social security systems. Create conditions that enable persons with disabilities to participate equally in social life.

Chapter 39: Improving People's Living Standards
Section 1: Expand Employment Opportunities

Place employment expansion in a more prominent position within economic and social development, implement proactive employment policies, coordinate urban-rural employment, and strive to control the scale of unemployment. Continue to implement and improve preferential tax, financial, and credit policies that encourage enterprises to create jobs and strengthen employment training. Improve the employment service system and accelerate the establishment of a vocational skills training mechanism supported by government assistance and social participation. Refine employment aid programs for disadvantaged regions, industries, and groups. Actively develop labor-intensive sectors with high job creation capacity.Promote the development of SMEs across all sectors, including industry, services, and diverse ownership types. Encourage independent entrepreneurship and self-employment to foster diverse employment forms. Support and regulate employment intermediation services. Fully implement the labor contract system, actively promote collective bargaining, strengthen the tripartite mechanism for coordinating labor relations, and improve the dispute resolution framework. Establish a comprehensive compliance and integrity system for employers. Refine workforce reduction mechanisms to avoid shifting surplus staff directly onto society. State-owned enterprises should prioritize reemploying surplus workers through measures such as separating core and non-core businesses and restructuring auxiliary operations. Strengthen labor market supervision, workplace protection, and enforcement inspections to standardize hiring practices and effectively safeguard workers' legitimate rights and interests.

Section 2: Strengthen Income Distribution Regulation

Improve the distribution system that gives primary importance to distribution according to work while maintaining multiple coexisting modes, and ensure that various factors of production participate in distribution based on their contributions. Accelerate reforms to the income distribution system, standardize personal income distribution practices, strengthen oversight of distribution outcomes, and strive to ease the widening gap in incomes across industries, regions, and social groups. Place greater emphasis on social equity, with particular attention to fairness in access to education and employment opportunities as well as fairness in the distribution process. Focus on raising the income levels of low-income earners, gradually increase the share of middle-income earners, and effectively regulate excessively high incomes. Strictly enforce the minimum wage system and progressively raise the minimum wage standard. Establish a standardized civil servant compensation system, regulate position-related consumption, and improve rules and oversight mechanisms for income distribution in state-owned enterprises and institutions. Control and adjust incomes in monopolistic industries, establish and refine the individual income declaration system, and strengthen tax collection and administration for individual income tax. Resolutely crack down on all forms of illegal income.

Section 3: Strengthening the Social Security System

Increase fiscal spending on social security, mobilize funds through multiple channels, establish appropriate benefit standards and delivery methods, and build a multi-tiered, comprehensive social security system aligned with economic development.
Expand coverage of urban basic pension insurance, gradually solidify individual accounts, raise the pooling level progressively, and enhance coordination and adjustment capabilities. Advance the reform of pension insurance for public institutions and state-owned enterprises. Establish a linkage mechanism between unemployment insurance and employment promotion, and improve the unemployment insurance system. Expand coverage of basic medical insurance and strengthen a multi-layered medical security framework. Refine and implement work-related injury insurance policies and standards, and ensure all employers participate in work-related injury insurance as required by law. Encourage eligible enterprises to establish supplementary insurance. Establish and improve the maternity insurance system. Effectively address social security issues for migrant workers. Standardize the collection and supervision of social insurance funds. Strengthen the capacity for social security service management.
Strengthen the urban minimum living security system and gradually raise the assistance standards. Establish a城乡 medical aid system to include urban residents receiving minimum living allowances, rural households in extreme poverty, and recipients of five-guarantee support within the scope of assistance. Improve the relief system for homeless and wandering individuals in cities, especially unaccompanied minors. Encourage social charity, donations, and communitySocial mutual aid and other forms of social support, institutionalizing volunteer services.

Section 4: Intensify Poverty Alleviation Efforts

Strengthen poverty alleviation responsibilities across all levels of government, increase funding for poverty alleviation, improve the poverty development mechanism, and enhance efficiency. For impoverished areas with basic living conditions, continue to implement local poverty alleviation by improving fundamental production and living conditions and creating new income channels. For areas with harsh living conditions, implement relocation-based poverty alleviation. For impoverished individuals with labor capacity, provide skills training, technical assistance, and labor export programs to boost their ability to generate income; for those without labor capacity, provide relief and social assistance. Prioritize support for children in impoverished families through boarding schools, foster care, social guardianship, and free vocational education to improve their growth environment and prevent intergenerational poverty transmission. Prevent households from falling back into poverty due to disasters or illness by implementing social relief measures and establishing special loan programs. Increase support for contiguous concentrated poverty-stricken areas and adopt village-wide, location-specific poverty development approaches. Continue targeted assistance efforts and encourage broad participation from all sectors of society in poverty alleviation work.

Section 5: Expanding Urban and Rural Consumption

Boost income levels for urban and rural residents to strengthen purchasing power, especially among rural populations and low-income urban groups. Cultivate consumption hotspots, advance public nutrition improvement initiatives, and establish a housing supply system that integrates ordinary commodity homes with affordable and low-rent housing. Continue expanding access to telephones, computers, and other technologies, while promoting service-based consumption in culture, fitness, tourism, and leisure. Guide consumer expectations to expand immediate spending. Improve the consumption environment by standardizing and developing consumer credit services.

Chapter 40: Improve People's Health

Prioritize public health, increase government investment, accelerate the development of medical and health services, and effectively address the challenges of difficulty and high cost in accessing healthcare.

Section 1: Strengthening the Public Health and Medical Service System

Establish and improve emergency mechanisms for public health incidents, enhancing disease prevention, control, and medical treatment capabilities. Improve conditions in healthcare institutions and strengthen professional workforce development. Promote community-based health services by accelerating the construction of a citywide medical service system grounded in primary care, featuring coordinated roles between community health service centers and hospitals, and enabling two-way referrals.

Section 2: Strengthen Disease Prevention and Health Care

Strictly control the spread of major infectious diseases such as AIDS, tuberculosis, and hepatitis B; effectively prevent and control parasitic diseases like schistosomiasis and endemic diseases; strengthen prevention, treatment, and immunization efforts against emerging infectious diseases; and implement comprehensive measures to combat chronic conditions including cardiovascular and cerebrovascular diseases, malignant tumors, and occupational illnesses. Enhance mental health education and care, prioritizing psychiatric disease prevention and treatment. Strengthen maternal and child health services, ensuring that the childhood immunization coverage rate exceeds 90%, the infant mortality rate drops to 17‰, and the maternal mortality rate falls to 40 per 10 women.

Section 3: Strengthening TCM and Medical Research

Protect and develop traditional Chinese medicine (TCM), strengthen the construction of TCM clinical research bases and TCM hospitals, and advance the standardization and normalization of TCM. Integrate advantageous medical research resources and enhance research on major diseases.

Section 4: Deepening the Reform of the Medical and Health Care System

Guided by the principles of separating government administration from public services, management from operation, medicine from treatment, and profit-making from non-profit-making, we will uphold government leadership, social participation, mechanism transformation, and strengthened supervision. This approach aims to establish a healthcare system suited to China's national conditions, providing safe, convenient, effective, and reasonable public health and basic medical services for the public. Classification management will be refined in accordance with the principles of territorial jurisdiction and whole-industry oversight. The government's responsibility in delivering public health and basic medical services will be reinforced, with standardized mechanisms for responsibility sharing and funding allocation established across all levels of government. A diversified investment model with varied financing methods will be gradually developed to support healthcare delivery. Operational mechanisms, incentive systems, and compensation policies for public medical institutions will be improved. Medical and health resources will be integrated to significantly increase the proportion of public health resources allocated to rural areas, central and western regions, and grassroots communities. Supervision over medical service practices, service quality, and the pharmaceutical market will be strengthened to reduce artificially inflated drug prices and curb the rapid rise in medical costs.

Chapter 41: Strengthening Public Safety Construction

Completing reform and development tasks requires a long-term stable social environment. We must strengthen public safety awareness across society, enhance public safety protection capabilities, improve the level of public safety protection, safeguard people's lives and property, and ensure social stability.

Section 1: Strengthen Disaster Prevention and Mitigation Capabilities

Strengthen key areas vulnerable to flooding and disaster mitigation, focusing on comprehensive management of major rivers and large water systems, risk elimination and reinforcement of dangerous reservoirs, and storage capacity enhancement.Flood control basin construction and urban flood prevention

Strengthen coastal defenses against typhoons, storm surges, and tsunamis. Enhance prevention and control of landslides, debris flows, and forest and grassland fires. Improve flood disaster warning and command capabilities, establish risk management systems for floods and other disasters, and implement flood disaster mitigation support systems. Strengthen geological hazard prevention in key areas such as the Three Gorges Reservoir Region. Improve post-resettlement support policies for migrants from medium and large-scale reservoir projects. Bolster seismic safety foundations in urban agglomerations and major cities, expand digital seismic monitoring networks, and develop rapid transmission systems for earthquake data and damage information. Implement integrated management of prediction, prevention, and rescue to enhance comprehensive earthquake defense capabilities.

Section 2: Enhance Safety Production Standards

Uphold safety first, prevention-oriented, and comprehensive governance. Implement the work safety responsibility system, strengthen enterprises' primary responsibilities for safety production, improve the regulatory framework, and strictly enforce accountability for major accidents. Enhance research and development, supervision, inspection, and support systems for safety production. Conduct a census and monitoring of major hazard sources, increase investment in safety facilities, address hidden dangers, and implement safety technology upgrades. Strictly enforce the safety production licensing system. Strengthen safety in high-risk sectors such as coal mining and key areas. Carry out special rectifications for non-coal mines, special equipment, hazardous chemicals, fireworks and firecrackers, construction projects, road traffic, and fire safety in densely populated areas. Reinforce infrastructure and regulatory oversight for transportation and fire safety. Cultivate and standardize safety production intermediary agencies. Improve safety education and training. Establish a performance assessment system for safety indicators: by 2010, reduce the accident mortality rate per unit of GDP by 35% and the accident mortality rate among workers in industry and commerce by 25%.

Section 3: Ensuring Food and Medication Safety

Strengthen infrastructure for food and drug regulation, improve technical standards systems, innovate regulatory mechanisms, standardize regulatory practices, and enhance regulatory capabilities. Enforce strict oversight of food, drugs, and catering hygiene in accordance with the law to safeguard public health and safety.

Section 4: Safeguarding National Security and Social Stability

Vigorously crack down on all forms of crime to ensure the people's safety and prosperity. Strengthen comprehensive social governance, advance the construction of a social security prevention and control system, and deeply carry out safe community initiatives. Improve judicial support conditions and enhance infrastructure for grassroots political and legal institutions, criminal investigations, anti-narcotics operations, customs enforcement, and border inspections. Proactively address both traditional and non-traditional security challenges. Strengthen the development of public security and political-legal forces.

Section 5: Strengthening Emergency Response Systems

Establish and improve the emergency management system. Strengthen key areas and projects, including command and information systems, emergency supply assurance, professional disaster relief and rescue teams, emergency standard systems, transportation support, and on-site communications. Improve social mobilization mechanisms following major natural disasters and enhance capabilities to handle sudden public incidents.

Chapter 42: Improving the Social Management System

Strengthen the social governance framework led by party committees, managed by the government, coordinated by society, and participated in by the public; advance innovation in the social management system.

Section 1: Strengthening Grassroots Self-Governance Organizations

Promote the development of harmonious communities and villages with orderly management and good public safety, advocate amicable relationships among people, and strengthen the foundation for social harmony. Explore effective models for the construction and management of grassroots urban-rural self-governance organizations in the new era, leveraging their role in coordinating interests and resolving difficulties.

Section 2: Guiding the Orderly Development of Civil Organizations

Foster and develop industry associations, academic societies, public welfare charities, and grassroots service-oriented civil organizations to enhance their roles in providing services, reflecting demands, and standardizing behaviors. Improve the self-discipline mechanisms of civil organizations and strengthen regulatory oversight.

Section 3: Correctly Handling Contradictions Among the People

Prioritize and safeguard the fundamental interests of the people, effectively coordinate interests across all sectors, and prevent and resolve internal social conflicts at their source. Improve and refine petition work by ensuring open channels for public concerns, employing education, negotiation, mediation, and legal measures to address issues raised by the public in a timely and lawful manner. Strengthen the people's mediation system and enhance mechanisms for resolving social disputes. Deepen mass work in the new era, guiding citizens to express their demands through rational and lawful means. Establish and improve mechanisms for conflict identification, early warning, emergency response, and accountability to prevent and appropriately handle group incidents and sudden events, effectively address reasonable public concerns, and maintain social stability in accordance with the law.

Article 11: Strengthening the Construction of Socialist Democratic Politics

Uphold comprehensive development of political and material civilization, expand socialist democracy, improve the socialist legal system, and provide a political guarantee for modernization.

Chapter 43: Strengthening the Construction of Socialist Democratic Politics
Section 1: Developing Socialist Democracy

Uphold and improve the people's congress system, the system of multi-party cooperation and political consultation under the leadership of the Communist Party of China, and the system of regional ethnic autonomy. Steadily advance political system reform to consolidate and develop a democratic, united, dynamic, and harmonious political environment.
Strengthen the democratic system, enrich democratic forms, and expand citizens' orderly political participation. Ensure that citizens exercise their rights to democratic elections, decision-making, management, and supervision in accordance with the law. Strengthen grassroots democracy by upholding and improving the disclosure of government affairs, enterprise affairs, and village affairs, guaranteeing citizens' rights to vote, know, participate, and supervise as prescribed by law. Respect and protect human rights, and promote the comprehensive development of human rights causes.
Consolidate and expand the broadest patriotic united front, and improve the system of consultation before decision-making on major issues. Leverage the role of the Chinese People's Political Consultative Conference (CPPCC) to support its functions in political consultation, democratic supervision, and participation in state affairs. Uphold and improve the system of workers' congresses and other forms of democratic management in enterprises and institutions. Enhance the bridge-and-link role of people's organizations such as trade unions, the Communist Youth League, and the Women's Federation. Ensure that ethnic autonomous areas exercise their autonomy in accordance with the law, consolidate and develop a socialist ethnic relationship characterized by equality, unity, mutual assistance, and harmony, and promote common prosperity and progress for all ethnic groups. Fully implement the policy of freedom of religious belief, manage religious affairs according to law, uphold the principle of independence and self-governance, and guide religion to adapt to socialist society. Implement policies and guidelines related to overseas Chinese affairs and carry out effective work for the overseas Chinese community.

Section 2: Comprehensively Advance the Rule of Law

Uphold the basic strategy of ruling the country by law, advance scientific and democratic legislation, and establish a socialist legal system with Chinese characteristics. Improve laws and regulations on market entities, market transactions, market supervision, social governance, and sustainable development. Advance reforms to the judicial system and working mechanisms, standardize judicial conduct, strengthen judicial oversight, promote judicial fairness, safeguard social justice, and uphold judicial authority. Implement the "Fifth Five-Year" Legal Publicity Plan, carry out legal education and publicity, enhance the legal awareness of all citizens, and foster a social atmosphere of respecting, abiding by, and acting in accordance with the law.

Section 3: Strengthen Integrity and Anti-Corruption Efforts

Adhere to the policy of addressing both symptoms and root causes, comprehensive governance, combining punishment with prevention, and emphasizing prevention. Establish and improve a system for punishing and preventing corruption that gives equal weight to education, institutions, and supervision. Strengthen efforts to prevent and curb corruption at its source. Advance innovation in the systems, mechanisms, and institutions for anti-corruption and integrity building. Enhance constraints and oversight on the exercise of power, strengthen supervision by specialized government agencies and society, and safeguard citizens' rights to report, accuse, and appeal. Rigorously investigate and handle cases of violations of discipline and law, and resolutely correct unhealthy practices that harm the interests of the people.

Chapter 12: Strengthening Socialist Cultural Construction

Firmly uphold the correct direction of advanced culture, adhere to serving the people and socialism, and implement the policy of letting a hundred flowers bloom and a hundred schools of thought contend. Promote socialist culture and continuously meet the growing spiritual and cultural needs of the people.

Chapter 44: Strengthening Socialist Cultural Development
Section 1: Strengthen Ideological and Moral Construction

Fully implement the theories of Deng Xiaoping and the important thought of "Three Represents," thoroughly study and practice the Scientific Outlook on Development, strengthen research and construction of Marxist theory, uphold Marxism's guiding role in the ideological sphere, and further consolidate the common ideological foundation for unity and struggle among all ethnic groups nationwide. Uphold correct public opinion guidance. Strengthen education on ideals and beliefs and ideological and political work, vigorously promote the national spirit centered on patriotism and the era spirit centered on reform and innovation, advance socialist ethical and moral construction, effectively carry out mass-based activities to create spiritual civilization, advocate basic moral norms across society—including loving the country, abiding by laws, observing etiquette, practicing honesty and trustworthiness, fostering solidarity and friendliness, embracing diligence and self-improvement, and dedicating oneself to one's profession—uphold the fine tradition of hard work and struggle, further enhance the cohesion and creativity of the Chinese nation, ensure that all people maintain a high-spirited and upward-looking mindset, and provide strong ideological assurance and spiritual motivation for comprehensively building a moderately prosperous society.

Section 2: Enriching the Spiritual and Cultural Life of the People

Actively develop cultural undertakings and industries to create more high-quality cultural products that meet the needs of the people. Increase government investment in cultural undertakings and gradually establish a comprehensive public cultural service system covering all sectors of society. Promote cultural innovation, implement a strategy for producing outstanding works, enrich artistic creation, and improve the quality of arts and culture. Strengthen protection of cultural and natural heritage as well as folk traditions. Expand radio and television coverage, develop digital broadcasting and television, and ensure broadcast safety. Revitalize the news industry. Develop modern publishing and distribution, advance digital publishing, and prioritize online media development. Promand Mandarin Chinese widely. Expand international cultural exchange, actively explore international cultural markets, and promote Chinese culture globally. Do a good job inShanghai Expo.

Section 3: Deepening the Reform of the Cultural System

Establish a cultural management system led by the Party committee, managed by the government, self-regulated by industry sectors, and operated by enterprises in accordance with the law. Improve support mechanisms for public cultural institutions to enhance their vitality and service quality. Advance the reform of operating cultural public institutions to develop a group of cultural enterprises and groups that uphold socialist advanced culture, possess strong independent innovation capabilities, and have competitive market power. Refine cultural industry policies to promote national cultural industries, guide and regulate the entry of non-public economic entities into the cultural sector, and create an industrial landscape dominated by public ownership with diverse forms of ownership, as well as a cultural market centered on national culture while absorbing beneficial foreign cultures. Strengthen comprehensive law enforcement in the cultural market and internet governance, continue efforts to crack down on pornography and illegal publications, and foster a social environment that supports healthy culture, transforms backward culture, and resists corrupting influences. Actively promote corporate culture construction.

Part 13: Strengthen National Defense and Military Construction

In accordance with the requirements for safeguarding national security, unity, and development interests, strengthen the modernization of national defense and the military to create a favorable situation where national defense construction and economic development advance in coordination.

Chapter 45: Strengthening National Defense and Military Construction
Section 1: Comprehensively Strengthen Military Development

Adhere to Mao Zedong's military thought, Deng Xiaoping's thoughts on army building in the new period, and Jiang Zemin's ideas on national defense and army construction. Uphold scientific development as a key guiding principle for strengthening national defense and military forces, maintain the Party's absolute leadership over the military, implement an active defensive military strategy, and focus on effectively fulfilling the military's historical mission in the new century and stage. Comprehensively advance the revolutionary, modernized, and standardized construction of the armed forces, actively promote military reform with Chinese characteristics, and significantly enhance overall defense capabilities under information-based conditions. Always prioritize political and ideological construction to ensure the correct direction of military development. Implement the strategy of strengthening the military through science and technology, promoting integrated development of mechanization and informatization. Deepen reforms in organizational structure, systems, and policies to optimize force composition and enhance vitality in military construction. Innovate military theory, strengthen training and institutional education, cultivate new-generation military talents, and improve the quality of officers and soldiers. Develop modern weapons and equipment, optimize system structures, and raise support levels. Advance logistics construction and reform to enhance comprehensive support capabilities and improve living standards for personnel. Strengthen grassroots-level construction to solidify the foundation of military development. Implement the principles of governing the military according to law and strict discipline, reinforcing style and conduct.Strengthen military legal construction and strictly enforce management and education to ensure the armed forces remain highly stable and unified. Enhance the capabilities of the Armed Police Forces, focusing on improving their ability to handle duties, respond to emergencies, and combat terrorism. Deepen the "Double Support" initiative: the military must actively participate in disaster relief and support national economic development, while the state and society must effectively implement preferential treatment and resettlement policies to consolidate and advance unity between the military, government, and civilians.

Section 2: Adjust and Optimize the National Defense Science, Technology, and Industry Sector

Adhere to the principles of integrating military and civilian sectors, embedding military capabilities within civilian industry, strengthening foundations, and pursuing independent innovation. Accelerate the transformation and upgrading of the national defense science and technology industry, enhance technological innovation capabilities, and develop dual-use technologies and products. Advance digitalization in defense manufacturing, improve the R&D and production levels of weapons and equipment, and ensure their supply. Optimize the structure of military research, development, and production capacities by strengthening core competencies in overall design, final assembly and testing, and system integration. Streamline the entities responsible for research and production, promote specialized restructuring, and foster social collaboration. Implement reforms in military research institutes steadily and prudently. Establish open entry and exit mechanisms for military research and production accessible to society, and improve coordination mechanisms for military-civil interaction. Drive equity reform as a breakthrough point, implementing shareholding transformations for military enterprises in a classified manner. Deepen reforms in military investment systems and promote diversification of investment entities.

Section 3: Strengthening National Defense Mobilization Capabilities

Deepen the reform of the national defense mobilization system and operational mechanisms. Adhere to integrating national defense requirements into economic construction, and progressively establish a modern national defense mobilization system that is centralized and unified, structurally sound, rapidly responsive, and authoritative and efficient. Strengthen the quality development of militia and reserve forces, advance construction in economic mobilization, civil air defense, and transportation war preparedness, promote informationization of national defense mobilization, conduct comprehensive national defense education, and enhance capabilities for wartime-peaceful transition, rapid mobilization, sustained support, and comprehensive protection. Fortify national defense infrastructure and protect national defense facilities in accordance with the law.

Article 14: Establish and Improve the Planning Implementation Mechanism

Under the initial establishment of the socialist market economic system, achieving the goals and tasks of this plan relies primarily on harnessing the foundational role of the market in allocating resources. At the same time, the government must fulfill its duties correctly by guiding and regulating social resources, ensuring the rational allocation of public resources, and guaranteeing the smooth implementation of the plan.

Chapter 46: Establishing an Implementation Mechanism for Classified Guidance

The development directions for agriculture, industry, and services proposed in this plan, as well as the key focus areas for foreign investment utilization and foreign trade, serve as guidance for market entities. Implementation will primarily rely on the autonomous actions of these entities. All levels of government must ensure fair competition.Avoid local fragmentation and departmental protectionism; do not directly interfere with enterprise operations or disrupt the normal functioning of market mechanisms.

    This plan outlines key priorities—including maintaining steady and rapid economic growth, transforming the growth model, optimizing economic structure, strengthening independent innovation, building a new socialist countryside, promoting coordinated regional development, advancing healthy urbanization, and fostering a resource-efficient and environmentally friendly society. These goals will be achieved primarily by refining market mechanisms and incentive structures. The government must drive institutional and policy innovations to create a supportive environment that encourages the initiative and creativity of market participants. State-owned enterprises and institutions should lead by example.
The tasks in public service areas defined by this plan—compulsory education, public health, social security, social assistance, employment promotion, poverty reduction, disaster prevention and mitigation, public safety, public culture, basic science, frontier technologies, socially beneficial technology research, and national defense—are government commitments. All levels of government must fulfill their responsibilities and leverage public resources to ensure successful implementation.
The requirements outlined in this plan—including functional zoning, ecological protection, resource management, intellectual property protection, income distribution adjustment, maintenance of market economic order, safeguarding citizens' legal rights and interests, and social construction and governance—will be implemented primarily through legal measures such as improving laws and regulations and strengthening law enforcement, supplemented by economic instruments.
The reform tasks outlined in this plan are key government responsibilities that must be prioritized. Strengthen overall guidance and coordination, assign specific tasks to relevant departments, advance them promptly, and codify effective measures into laws, regulations, and institutional frameworks as soon as possible.

Chapter 47: Adjusting and Refining Economic Policies

Guided by the principle that public finance must serve and support public policy, shift its allocation focus toward providing equal basic public services for all citizens, and appropriately define responsibilities and expenditure scopes across government levels. Priority areas for public budgeting include: rural compulsory education and public health, agricultural technology extension, vocational education, rural labor training, employment promotion, social security, poverty reduction, family planning, disaster prevention and mitigation, public safety, public culture, basic science and frontier technologies as well as socially beneficial technical research, geological exploration of energy and critical mineral resources, pollution control, ecological protection, resource management, and national security. Key supported regions include restricted and prohibited development zones, central and western regions (especially revolutionary base areas, ethnic minority areas, border regions, and impoverished areas), the Three Gorges Reservoir area, and cities facing resource depletion.
Leverage taxation as a regulatory tool to: promote resource conservation and environmental protection; support employment and re-employment; foster technological advancement and enhance independent innovation capabilities; advance cultural system reform; and revitalize the manufacturing sector.Tax policies that support the healthy development of the manufacturing sector and other industries.
Following the principle of concentrating resources to accomplish major tasks under socialism, gradually increase central government investment scale based on economic development and increased fiscal capacity. Improve the government investment management system, consolidate government investments, enhance investment methods, and strengthen project supervision.
Strengthen and improve industrial policy to better coordinate domestic industry development, foreign trade, and foreign investment. Enhance synergy among credit, land use, environmental protection, safety, technology, and industrial policies, leveraging economic instruments to drive industrial growth. Bolster support for high-tech industries and equipment manufacturing, particularly in critical areas, with a focus on R&D to cultivate core competitiveness. Regulate energy-intensive industries under a moderately tight framework to prevent blind expansion of production capacity. Optimize industrial layout by fostering industrial clusters and minimizing large-scale resource transfers across regions: prioritize coastal locations for industries relying on seaborne imports, and allocate those dependent on domestic or overland imported resources to key development zones in central and western China. Implement a brand strategy to help large enterprises with proprietary intellectual property, well-known brands, and strong competitiveness evolve into multinational corporations. Launch a program to foster SME growth. Phasing out outdated technologies and closing facilities that damage resources, pollute the environment, or fail to meet safety standards in accordance with the law.

Chapter 48: Improving the Planning Management System

Strengthen coordination. Continue to balance aggregate demand and supply, with a focus on institutional, planning, and policy coordination. Align policy objectives and instruments by ensuring synergy among fiscal, monetary, industrial, regional, social policies, and performance evaluation systems to prevent departmentalization of national policies. Coordinate long-term development with short-term goals: near-term measures should address structural challenges; reform systems, formulate policies, allocate investments, and set growth rates must all prioritize sustainability and avoid rashness.
Reform the planning management system, improve scientific and democratic compilation procedures, and establish a unified planning framework led by the national economic and social development plan. This framework ensures clear positioning, complementary functions, and seamless coordination across all plans. Deepen and solidify urban planning, land-use planning, environmental protection planning, and specialized plans for food, energy, transport, and other key sectors. Develop a national functional zoning plan to define the scope, functional positioning, development direction, and regional policies of major functional zones. Strengthen regional planning by preparing regional plans for select major functional zones. Reform and refine local planning systems, and deepen institutional reforms in county-level and municipal planning.
The binding targets set forth in this plan are legally binding and shall be incorporated into the comprehensive evaluation and performance assessment of economic and social development for all regions and departments. These binding targets must be allocated to relevant departments; specifically, targets such as arable land retention, reduction in energy consumption per unit of GDP, and total reduction in major pollutant emissions shall be assigned to provinces, autonomous regions, and municipalities directly under the Central Government.
Relevant departments of the State Council shall strengthen tracking and analysis of the plan's implementation and accept supervision and inspection by the National People's Congress and its Standing Committee.

    During the mid-term phase of this plan's implementation, a mid-term evaluation shall be conducted. The mid-term evaluation report will be submitted to the Standing Committee of the National People's Congress for deliberation. If revisions are required based on the evaluation, they must be approved by the Standing Committee of the National People's Congress.
Sustain long-term prosperity and stability in Hong Kong and Macao. Uphold the principles of "One Country, Two Systems," "Hong Kong people governing Hong Kong," "Macao people governing Macao," and a high degree of autonomy. Strictly abide by the Basic Laws of the Special Administrative Regions. Strengthen and promote exchanges and cooperation between the mainland and Hong Kong/Macao in areas such as trade and economy, science and technology, culture, health, and sports. Continue to implement the Closer Economic Partnership Arrangement (CEPA) with Hong Kong and Macao. Enhance cooperation on infrastructure development, industrial growth, resource utilization, and environmental protection. Support Hong Kong in developing its financial, logistics, tourism, and information services sectors, maintaining its status as an international financial, trade, and shipping hub. Support Macao in developing its tourism and other service industries, promoting moderate economic diversification.
Taiwan is an inalienable part of the People's Republic of China. We advance cross-strait relations and the cause of national reunification, expand economic, cultural, technological, and educational exchanges and people-to-people contacts between the two sides of the Taiwan Strait, safeguard the legitimate rights and interests of Taiwan compatriots, promote comprehensive, direct, and two-way "three links," establish a stable cross-strait economic and trade cooperation mechanism, foster the development of cross-strait relations, and maintain peace and stability in the Taiwan Strait.
The 11th Five-Year Plan is a critical milestone in building a moderately prosperous society in all respects. Guided by the leadership of the Communist Party of China, the people of all ethnic groups across the nation must unite closely around the Party Central Committee with Comrade Hu Jintao as General Secretary. We will uphold the great banners of Deng Xiaoping Theory and the important thought of "Three Represents," fully implement the scientific outlook on development, rally our spirits, work steadily, forge ahead with determination, innovate, and strive to realize the grand objectives of the 11th Five-Year Plan and the comprehensive construction of a moderately prosperous society.