We should strengthen and make innovations in social management. We should improve the way the government provides public services, strengthen the system of social management and services at the community level, and improve self-governance by villagers and urban residents, to ensure that the people directly exercise their democratic rights in accordance with the law by managing community-level public affairs and running public service programs. We should reform the management system for social organizations, and guide their sound and orderly development. We should establish a sound mechanism for safeguarding people's rights and interests; improve the integrated system of mediation by the people, administrative mediation and judicial mediation; strengthen the system of legal assistance; and carry out reform of the handling of people's complaints about legal and litigation-related issues. We should maintain open and regular channels for people to voice their demands, and we should coordinate the people's interests and protect their rights and interests. We should improve the mechanism for assessing potential risks major policy decisions may pose to social stability and the emergency response mechanism. The purpose of all this work is to preserve law and order and promote social harmony and stability.

Food and drug safety is a prominent issue of widespread concern. We should reform and improve mechanisms for overseeing and supervising food and drug safety and strengthen overall coordination. We should require enterprises to assume primary responsibility for safety, exercise strict oversight and supervision throughout the whole process from production to consumption, and move faster to establish a scientific and effective food and drug safety system that suits China's national conditions so as to better ensure food and drug safety. We should strengthen the public safety system and improve workplace safety conditions to prevent accidents, especially major and very serious ones.

We should tighten regulation of the real estate market and strengthen construction of government-subsidized housing. We need to firmly rein in speculative and investment-driven housing demand, promptly improve the accountability system for stabilizing housing prices and the policies for regulating the real estate market, and strengthen mechanisms for sustaining its steady and sound development. We should continue to build and manage government-subsidized housing for the people so they have housing they are satisfied with. This year, 4.7 million government-subsidized urban housing units should be basically completed, construction of another 6.3 million units should begin, and renovation of dilapidated rural houses should continue.

Education, science and technology play a fundamental, guiding and global role in the country's modernization drive, and culture is essential for the long-term vitality of a nation and gives the people a sense of belonging. They must therefore occupy a position of greater strategic importance.

We should continue to give top priority to developing education. China's annual government expenditures on education already exceed two trillion yuan and should continue to increase. We must make good use of such funding to the satisfaction of the people. We need to deepen comprehensive education reform and effectively solve major issues of public concern. We should boost balanced development of compulsory education, accelerate development of modern vocational education and raise the quality of education of all types and at all levels. This should help make education more equitable and provide strong human resources support for China's development.

We should deepen reform of the management system for science and technology. We should integrate science and technology more closely with the economy, and establish a technological innovation system that is based on enterprises, guided by the market, and integrates enterprises, universities and research institutes. We should focus on priority areas of strategic importance that are vital to China's overall and long-term development, and strengthen basic research and research on frontier and leading technologies. We should improve the mechanism for openly sharing scientific and technological resources and the fiscal, taxation, banking, industrial technology and personnel policies that support scientific and technological development and industrial application of scientific and technological advances, create a fair and open environment for making innovations, keep scientists and technicians fully motivated, and unleash the creativity of the whole society.

We should effectively advance development of the cultural sector. We should incorporate reform and development of the cultural sector into general plans for economic and social development, and include them in the system for evaluating the performance of governments and officials at all levels so as to promote all-around cultural prosperity and fast development of the cultural sector. The government needs to fulfill its responsibility to develop nonprofit cultural programs, accelerate key cultural projects for the people, and improve the system of public cultural services. We should extensively carry out public fitness activities and promote comprehensive development of both recreational and competitive sports.

We should greatly increase education in public morality, professional ethics, family virtues, and personal integrity. We should promote a creditability system, use political integrity to improve business and public integrity, and foster healthy social conduct.

4. Deepening reform and opening up with greater political courage and vision

Reform and opening up are the fundamental force that drives China's development and progress. We can continue to advance our cause only by adhering to reform and opening up. China has entered a crucial stage of reform. We must further emancipate our minds, comprehensively deepen reform of the economic structure, continue to actively yet prudently carry out reform of the political structure, deepen reform of the cultural administrative system, accelerate reform of the social system, improve the system for promoting ecological progress; and constantly deepen reforms.

We need to improve the socialist market economy. We should unwaveringly consolidate and develop the public sector of the economy and encourage, and support and guide the development of the non-public sector, so as to foster a structural environment in which economic entities under different forms of ownership have equal access to factors of production in accordance with the law, compete on a level playing field and enjoy equal legal protection. We should deepen reform of state-owned enterprises and key industries.

We should quicken reform of the fiscal and taxation systems, adjust relations between the central government and local governments concerning financial resources and powers, and improve the system of transfer payments. We should improve the public finance system, institute a system of local taxation, and establish a taxation system conducive to optimizing the economic structure and enhancing social fairness.

We should deepen reform of the financial system and improve the modern financial system so that it supports development of the real economy. We should raise the competitiveness of the banking, securities and insurance industries, accelerate development of a multilevel capital market, and actively develop the bond market. We should steadily carry out reforms to make interest rates and the RMB exchange rate more market-based, expand cross-border use of the RMB and gradually achieve the RMB's convertibility under capital accounts. (more)

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