III. Vigorous Effort to be Invested in Promoting Stable and Sound Economic Growth

We will ensure steady and fast economic growth as the focus and primary task of the work in 2009 by actively bolstering domestic demand, forcefully pushing forward the ‘New Industrialization and Three Basics’, transferring the development pattern and optimizing the structure in an effort to strengthen the driving force and vigor of growth.

1.　 Augmenting Investment to Advance Consumption

We will enlarge investment by every possible means, make the best use of the State’s policy of boosting investment and give full play to investment’s role of driving economic growth.

First, great effort will be invested in promoting construction of projects in key fields by further optimizing the investment structure, concentrating on construction of projects of improving people’s well-being and projects in such aspects as infrastructure, ecological environment, independent innovation and industrial development and after-quake rebuilding. For improving people’s well-being, we endeavor to realize an investment of 23.5 billion yuan including an increase of investment in safe drinking water, methane, roads, grid projects, development-oriented poverty reduction through etc, all in the countryside. We will accelerate establishment of a basic-level system of medical and health care services and construction of programs in such aspects as facilities of secondary vocational education and special education, radio and television, extension of telephone coverage to all villages and social welfare.We struggle to realize an investment of 148 billion yuan principally in heightening the supporting capability of infrastructure.

We will maitain the transport as the focus of work and build a modern tridimensional transport network for smooth transportation in Hunan. We plan to primarily construct expressways of Shaoyang-Yongzhou, Hengyang-Shaoyang, Xiangtan-Hengyang, Yongzhou-Lanshan, Anhua-Shaoyang, Changsha-Liuyang, Changde-Anhua, Loudi-Xinhua, Jing-Zhu Expressway Multiline, Hunan section of Xiamen-Chengdu Expressway and Yiyang-Ningxiang Inter-City Artery etc and try to set out to construct14 expressways totaled 1012 kms including those of Fengfang- Daxing and Liling-Youxian in 2009. We plan to intensify efforts to construct Wuhan-Guangzhou passenger railway, Hunan-Guangxi Railway Multiline and Hengyang-Chaling-Ji’an Railway, complete the electrification of Zhangjiajie section of Jiaozuo-Liuzhou Railway and try to start the 5 railway constrution projects ,i.e., Hangzhou-Changsha Railway, Changsha-Kunming Passenger Railway, Shijiazhuang-Changsha Railway Multiline,Loudi-Shaoyang and Jingzhou-Yueyang Railways.We will pay centralized attention to construction of international airports in Changsha and Zhangjiajie, expand and enhance the feeder airports in Changde and Zhijiang and speed up the preparations for constructing Hengyang airport. Hunan will struggle to complete Lianyuan Power Station, enlarge Jinzhushan Power Station, accelerate construction of new energy source-related projects including Taohuajiang Nuclear Power Station and wind power generation and intensify efforts in grid reconstruction.We will start the reservoir project of Centian River and prominent stress will be placed on reinforcement and risk elimination of 375 large, medium-sized and key small dangerous reservoirs.

As for facilities for telecommunications, we will quicken the construction of ten information engineering projects, both model province and model industrial parks of mobile e-commerce to build a digital-oriented Hunan. We will invest a sum of 20 billion yuan in ecology and environment to enhance the ecological advantages. We will push forward disposal of domestic and industrial sewage, put stress on overall treatment of Dongting Lake and on the pilot project of rocky desertification treatment in carsological areas, and reinforce construction of national natural reserves and recovery and protection of major wetlands. We will try to pump an investment of 230 billion yuan into independent innovation and industrial development to enhance the core competitiveness. We will put stress on boosting the construction of projects including the refining integration of 10 million tons of oil in Yueyang, Quantang Industrial Park of the Zoomlion, heavy equipment manufacturing in Xiangtan Electric Manufacturing Corporation Ltd (XEMC), industrialization of trippers with electric motor wheels, technological innovation of steel in Hunan, Sinosteel Hengyang Machinery Co Ltd, the casting base of Sany Group in Loudi, Kingboard Chemical Holdings Ltd, parts of new flat panel displays with thin-film transistors (TFT), a base of traditional Chinese medicine (TCM) in western Hunan, specifically in Huaihua City, national high-quality grain production projects, high-yielding plantations of oil-tea camellia and super hybrid rice. We will try to increase investment in after-disaster rebuilding to improve capacity of combating disasters. We will place stress on heightening the standard of constructing power stations and grids and building electricity supporting passages, speeding up recovery of the ecological system in forests, stepping up support to insurance in agroforestry, enhancing the emergency response capacity by setting up response systems relying on traffic arteries and bases of production, energy and grain, and making efforts to institute forecasting and alarm systems of meteorological, hydrographic and geological disasters.

Second, we will raise building funds through a variety of channels. We will make policy decisions in accordance with the State’s investment directions and stresses so as to gain more fund from the State. We will explore various ways to set up a stable system of investment increase of government and increase allocation to infrastructure in the budget to give full play to the guidance role of the governmental investment. We will guide financial institutions to enlarge money supply and credit and urge the banks to try to render a loan of over 130 billion yuan. We will press enterprises to increase bond issue and intensify efforts in listing and financing and support those where conditions permit to enlarge direct financing scale in forms including bills, corporate bonds, enterprise bonds, particularly collective bonds of SMEs. We will make efforts to collect investment through domestic cooperation of Hunan’s enterprises as well as foreign investment promotion and to broaden investment channels of private capital, to breed and develop a property right market and to try to introduce a foreign investment of 4.5 billion dollars and a domestic investment of 137.5 billion yuan.We will tighten oversight on capital to ensure capital safety and improve investment efficiency.

Third, we will expand development, storage and management of programs. Proper management of programs contributes as a primary driving force to development. Still taking programs as an important vehicle of picking up investment, we will exploit big programs bearing relations to long-term development and strengthen the preparatory work. We will grant vigorous support to core enterprises to develop matching programs together with enterprises of CPC Central Committee and to launch some promising and buoyant matching programs. We will try various means including annexation and reorganization, equity joint ventures and contractual joint ventures, and joint investment to develop and construct big programs with strong driving force together with multinational enterprises and large domestic private enterprises. We will promptly trace the State’s policies and industrial guidance directions and enrich and adjust the project library continuously. We will reinforce project construction by tightening the responsibility, execution of standards and management and by strengthening follow-up auditing of major projects in order to ensure the progress, quality safety of the project construction and by eliminating and rigidly investigating jerry-built projects. We will try all means to expand urban and rural consumption, which is the most powerful impetus to economic growth and the ultimate goal as well. We will expand consumption coverage increasingly, activate the consumption market and release the consumption potential so as to make full use of the propelling role of consumption.

A. We will enhance the purchasing power of urban and rural residents by earnestly executing the State’s related policies of increasing incomes of urban and rural residents, bettering the income distribution system and the mechanism of normal wage growth and heightening the proportion of residents’s income in national income distribution. We will raise pensions for enterprise retirees and the basic cost of living allowances for urban and rural residents.We will increase income of the masses, particularly those with financial difficulties, and expand the immediate consumption. We will advocate a modern consumption idea by actively developing consumer credit service and raising the proportion of development-oriented consumption especially spiritual and cultural products in the overall consumption.

We will better the distribution network system by primarily intensifying efforts in facility construction of large wholesale markets, consumption platforms of public welfare services and warehousing and inventory management etc, forcefully propelling development of commercial outlets in communities and strengthening chains management so as to develop new types of logistics, by constructing the Farmers’ Stores Project (a project aiming to establish a modern marketing and retail distribution network for rural areas to shorten the gap between urban and rural areas in consumption by setting up about 250,000 stores operated by farmers in towns and townships) and the Two-Hundreds Program (a program of constructing hundreds of projects with huge positive impact on industrial upgrading and on benefits growth and breeding of a number of enterprises with a prime operational revenue exceeding 10 billion yuan)through building or reconstructing wholesale markets of agricultural products and farmers’ markets in key marketing or production areas, by expanding the coverage of subsidized varieties and exterting more effort in popularizing household appliance to all townships, by improving facilities for people’s convenience in urban communities and selecting some vegetable markets for standardized reform, by advancing upgrading of urban durable goods consumption, regulating and vigorously developing flea markets, and by supporting cross-region merger and reorganization of large wholesale and retail businesses and speedy development of small and medium-sized wholesale and retail businesses.

C. We will better the consumption climate with strong efforts by delving into features of the current market and laws of consumption, stabilizing consumer expectations so as to heighten the consumer confidence, by continuously improving infrastructure conditions in such respects as culture and  education, medical and health care,municipalities and traffic in order to quicken upgrading of consumption, by expanding development and construction of welfare houses including low-rent houses and affordable houses and encouraging residents to buy houses in order to propel stable and sound development of the real estate industry, by proactively breeding new consumption hotspots and forcefully promoting consumption in holidays and on exhibitions and properly guiding consumption in such new respects as auto, culture, health care and Internet, by conscientiously following the policies including credit encouragement in the hope of advancing credit consumption by tightening regulation and oversight on price and quality of products, primarily food and medicine, pushing forward establishment of a system of credit in medicine market, building of networks of oversight on and supply of medicine in rural areas, rural drugstore standardization, by improving the medicine quality safety testing system and harshly cracking down on behaviors harming consumers’ rights and interests.

D. We will make efforts to develop the service industry. We will upgrade such service sectors as catering, accomodation, cosmetology, body building, household appliance maintenance and standardize and develop household management services in an effort to better the system of providing services for residents’ life. We will support and guide time-honored brands in innovating patterns of products and management and providing services and products with distinctive prominent characteristics to meet the need of the consumers. We will act out the trademark strategy through recommending and introducing Hunan cuisine, cigarettes, embroidery, wine and tea and nurturing competitive brands with independent intellectual right property. With the focus on breeding and strengthening pillar industries of tourism, we will integrate tourism resources, improve facilities and conditions, increase sales promotions, primarily develop high-end travel, breed exquisite travel products and services and build a number of tourist spots deeply loved by domestic and foreign tourists. We will vigorously develop e-commerce online, mobile e-commerce, accelerate construction of 3G (the 3rd Generation) network and actively develop manufacturing and operation of terminal equipment and information services. We will promote combination of the advantages of both modern logistics and the network, improve the facilities and conditions of physical distribution and support pacesetting logistics enterprises to be large and powerful with the stress on construction of Jinxia Bonded Logistics Center in Changsha, Jiuhua Modern Logistics Basis in Xiangtan and Changsha modern logistics parks of airport, tobacco and grain etc. We will actively develop service sectors including commerce, culture, creative design and standardize and develop such intermediary services in accounting, legal consultancy and brokerage etc.

2.  Vigorously Promoting New-type Industrialization

We will intensify efforts to strengthen the core competitiveness of competitive industries by forcefully promoting, while taking the present opportunities of optimizing the industrial structure and promoting industrial upgrading, project construction of two-oriented industries ( resource-conserving and environment-friendly), concentration of advantageous resources to the core links of industrial chains and to the high-end links of value chains and propelling industrial development in a high-end, new and high, two-oriented and large-scale direction. Firstly, We will advance integration of informationalization and industrialization with great endeavor to accelerate development of new& high- tech industrial clusters dominated by information technology.We will principally support leading enterprises including the 48th Institute of China Electronic Technology Coporation (CETC), Zhuzhou CSR(China South Locomotive & Rolling Stock) Times Electric Co Ltd, Hunan Electronic and Information Industry Group Co Ltd (HEC) and Greatwall Information Industry Co Ltd, breed industrial clusters of the solar photovoltaics, the software& information service, consumer complete sets including those of mobile phones and parts of new-type displays; We will put stress on assisting concentration and development of such industries as bio-pharmacology, new materials, animated cartoons, electric automobiles, new energy equipment, energy-saving and environmental protection and on propelling integration of information technology with technology of management and manufacturing, supporting technological innovation of such traditional industries as steel and iron, nonferrous metals, food, petrochemical, forest and paper, ceramics and fireworks industries and striving to realize an investment of over 170 billion yuan in technological innovation.

Secondly, we will develop industries with a prime operating revenue exceeding 100 billion yuan, while making best use of their advantages in resources and industrial bases. We will exert ourselves to breed emergent industries, forcefully develop advanced equipment manufacturing industry, speed up development of the consumer goods industry, reformed and upgrade resources industries, breed and strengthen competitive industries of construction machinery, auto and its parts, rail transit and electric appliance etc.Efforts will be concentrated on industries with a prime operating revenue exceeding 100 billion yuan in 2009 and stress will be put on nurturing industries and industrial clusters both with great development potential of yielding a prime operating revenue surpassing 100 billion yuan.

Thirdly, we will extert our strength to promote industrial integration, enlarge and strengthen a number of backbone enterprises. Primary attention of aid will be paid to accelerating development of enterprises such as Valin Group, SINOPEC Changling Company, SINOPEC Baling Company, China Tobacoo Hunan Industrial Co Ltd, Hunan Nonferrous Metals Holding Group, Zhuzhou Electric Times Group of China South Locomotive & Rolling Stock Corporation , Zoomlion, Sany, Hunan Sunward Intelligent Machinery Co Ltd and Hunan Coal Group. We will encourage core enterprises to expand industrial chains by such means as providing workmanship, technology, brands, quality standards in accordance with the patterns of intensive production of dominant products and market-oriented operation of ordinary parts. We will support enterprises directly under the central government in Hunan to quicken the pace of development in the hope of strengthening the driving force for local enterprises. We will strengthen sci-tech industries for national defense and accelerate development of competitive industries with concerted efforts of the military and the people. Fourthly, we will integrate, construct and enhance various parks according to the principle of layout centralization, industial aggregation, land intensification and eco-friendliness and environmental protection. We will quicken the enlargement of Changsha and Zhuzhou national new and hi-tech industrial zones and Changsha Economic Development Zone, advance the joint building of Xiangtan Torch Venture Park by Torch High Technology Industry Development Center of the Ministry of Science & Technology of PRC and Hunan Province, grasp construction of State-approved new and hi-tech industrial parks of the new materials, biology, aerospace, new energy sources and mechatronics and Hunan information engineering industrial park etc, and upgrade Hengyang ( Shenzhen) Industrial Park, Chenzhou Nonferrous Metals Industrial Park and Xiangtan (Taiwan) Industrial Park. With these parks as a platform and vehicle, we will proactively carry on the transfer of international and coastal industries and invest much effort in introducing a number of programs of two-oriented industries.

We will enhance the independent innovative capacity. Effort will be concentrated on consolidating the principal innovation position of the enterprises by instituting an innovation mechanism and improving it for enterprises to fulfill important and key special sci-tech programs, by primarily aiding enterprises involved in the Two Hundreds Program, Little Giant enterprises and core enterprises of industrial clusters in carrying out independent innovation and by supporting enterprises where conditions permit to apply for the titles of provincial-level enterprise technology center or State-level engineering research centers. We will put into practice policies about fiscal and taxation , banking, government procurement and digestion- absorption- re-innovation and put in place scientific certification standards and an authorization system of independent innovative products. We will quicken research and development (R&D) of major industrial technology and equipment and put stress on making breakthroughs in key generic technology of clusters of competitive industries like steel, nonferrous metals, construction machinery, automobiles and rail transit. We will effectively integrate the innovative resources in synergy of industry, university and research, improve the system of consultation between the Ministry of Science &Technology of PRC and Hunan Province, support major scientific and technological advances in speeding up translation into practical productive forces, and support enterprises in deepening sci-tech cooperation with colleges and institutes and in establishing a complex of technological innovation.

We will support competitive technology with independent intellectual property rights to be translated into national or international standard. We will foster incubators of sci-tech innovative enterprises, improve intermediaries such as the technological market and risk investment services and construct pilot bases of strategic hi-tech industries. We will better the sci-tech innovative mechanism and encourage sci-tech enterprises to be founded in forms of appraising sci-tech advances and patented technology as capital stock. We will act out the strategy of intellectual property rights and strengthen the protection of intellectual property rights. We will reinforce the building of a team of innovative entrepreneurs by accelerating training of leading innovative entrepreneur talents, guiding innovative talents to flow to enterprises and introducing world-class innovative and business management talents in an effort to build a team of complex entrepreneurs expert at operation and management and capable of innovation and by further optimizing the growing environment of the innovative entrepreneurs, fully provoking their passion and potential of making bold innovations and actively starting businesses to build outstanding brands of Hunan enterprises.

We will keep a rigid oversight upon energy conservation and emission reduction. We will harshly follow the accountability system and the one ballot veto system and reinforce the follow-up supervision and target evaluation of emission reducing programs. We will conscientiously implement the overall formulas of energy conservation and emission reduction and enhance the energy efficiency of 6 big energy-intensive industries including steel and iron, nonferrous metals, electricity, petroleum processing, petrochemical and building materials industries. We will further grasp energy saving actions of enterprises and intensify efforts to practise 184 emission reducing programs. We will accelerate development of key energy saving programs and further carry out activities of benchmarking energy efficiency. We will institute a system of energy-saving standards and improve it, make sci-tech innovations in energy conservation and emission reduction, strengthen research and popularization of new technology and new products. We will strictly shut down backward production facilities, and rigidly eliminate programs whose construction are energy-intensive, high-polluting and of low efficiency, and grasp model programs of saving energy and reducing emissions.We will  promote energy conservation in construction and transportation in accordance with the law and guide commercial and residential energy conservation.

3 . Accelerating development of the modern agriculture and new countryside

We will keep a steady development of grain production. We will tightly guard the bottom line of farmland to avert farmland idleness, stabilize the acreage under crop and heighten via science and technology quality, the yield of per unit area and the sequential cropping index, and expand the growth of double cropping rice. We will promptly implement the plan of new grain productivity development, press ahead with construction of large marketable grain production bases, projects of industrializing production of high-quality grains and high-yielding projects.We will strive to expand the growth areas of high-quality rice and super rice to 6.6 million acres and 1.98 acres respectively, enlarge growth coverage of upland crops and coarse grain such as superior hybrid corn and potatoes in an effort to ensure steady increase of grain and contribute to the State’s grain safety. We will heighten quality development of farmland by popularizing protective tillage, starting construction of major projects of the plan of new grain productivity development and high-standard grainfields , consolidate the achievements made in converting retired farmland to forests and basic fields for growing grain rations, the farmland fertilization project, consolidate and rehabilitate basic farmlands with a total area of 10 millions mu around Dongting Lake, and construct the reserve farmland resource base along Centian River. We will develop futures of grain and rapeseed oil and heighten the commodity rate and the conversion rate.

We will strongly develop modern agriculture. With a focus on the overall agricultural productivity, we will propel agriculturual growth in a large-scale, specialized and intensive direction and construction of a highly efficient, cyclic and ecological agriculture. We will optimize the structure of agricultural products to accentuate development of the local special industries by maintaining a steady development of the breeding industry such as pig production, by picking up speed of development of such industries as rape, oil-tea camellias, edible fungi, Chinese herbal medicine, mandarin oranges, aquatic products, tea leaves, bamboo & wood, tobacco and horticulture, by reinforcing the construction of ecological agricultural parks with cultivation, breeding, processing, production and recreation integrated. We will make great efforts to push forward standardization of agricultural operations and industrialized management of agriculture, quicken development of in-depth processing of agricultural products and breed a small number of pacemaking processing enterprises with an annual turnover exceeding 5 billion or even 10 billion yuan. We will reinforce innovation and generalization of agricultural technology in an effort to make great breakthroughs in fields such as breeding of superior grain cultivators, biotechnology, prevention and control of diseases and in-depth processing.We will intensify socialized services by establishing and improving the systems of generalizating agricultural technology, prevention and control of animal and plant diseases and of harmful alien organisms, oversight on quality of agricultural products and nuturing of superior grain cultivators. We will strongly develop export-oriented agriculture by setting up export bases of high-quality agricultural products and grasping popularization of hybrid rice abroad.

We will make steady progress in new countryside construction. We will reinforce construction of rural infrastructure, water conservancy devices of farmland in particular by strengthening the treatment of Dongting Lake, Xiangjiang River, Zijiang River,Yuanjiang River and Lijiang River, grasping reinforcement and risk elimination of dangerous reservoirs, accelerating auxiliary reconstruction of large and medium-sized irrigated areas, guiding and supporting farmers to extensively start construction of water conservancy devices of small farmland, overall treatment of small drainage basins and other programs. We will develop protected agriculture and engineering agirculture to improve agricultural machinery equipment. We will further amend rural grid facilities and further heighten the capacity of guarding against the geological disaster,i.e., mountain torrents. We will make advances, adhering to model demonstration, attention to the interplay between model villages and all villages, and village cluster by cluster, continue constructing the ‘thousand-village model’ project( project in which 10,000 villages will be developed thanks to the driving role of 1,000 village models) in new countryside construction, and propel development of pilot areas of buiding rural communities.We will thoroughly launch a patriotic health campaign in the countryside by enlarging the construction scale of rural cleaning project models and pushing ahead comprehensive treatment of fields, waters, roads and woods village by village.

Joint aid of 10,000 enterprises to villages will be thoroughly developed and social forces will be extensively motivated to participate in new countryside construction.

We will unrelentlingly expand channels of increasing farmers’ income. We’ll keep steady increase of farmers’income as the focus of rural work in 2009 by conscientiously implementing the State policies such as heightening the minimum grain procurement prices, increasing general direct subsidies for purchasing agricultural supplies and improving subsidies for growing superior grain cultivators and for using agricultural machinery and tools. We will increase support for training farmers in practical technology by acting out the project of sci-tech application in households and fostering main parties of modern agricultural operations and pacemakers of building wealth via sci-tech in the countryside. We will make efforts to grasp technical training programs such as employment plan of rural labor forces and the Sunshine Program( a model program of vocational technical training, aiming to transferring rural labor forces largely in major grain-producing areas, main labor force source areas, impoverished areas and old revolutionary base areas to non-agricultural fields) to make it easier for rural residents to find nonagricultural employment. We will step up endeavors to develop labor-intensive industries including the construction industry to enroll near farmers and raise non-agricultural income. We will encourage returned off-farm workers with skills, capital and management knowledge to start businesses on their own. We will proceed to alleviate the burden on farmers. We will revitalize the circulation of agricultural products to realize cash increase. We will accelerate development of policy-supported agricultural insurance by enlarging the coverage of agricultural insurance and setting up systems for agricultural reinsurance and catastrophic risk spreading.

Effectively promoting construction of a two-oriented society in the pilot area,Chang-Zhu-Tan City Cluster, through comprehensive and auxiliary reform.

The 2009 year is quite crucial for construction of the pilot area. We will focus on comprehensive implementation of the construction plan and on start of the comprehensive and auxiliary reform so as to propel the construction of a two-oriented society throughout Hunan via Chang-Zhu-Tan City Cluster construction.

The construction plan of the pilot area will be executed in an all-round way. We will make the best use of the role of Changsha, Zhuzhou and Xiangtan as the core growth pole in the whole Hunan through starting support projects dominated by two-oriented industries, overall transport-led infrastructure projects, ecological rehabilitation projects with the stress on Xiangjiang River treatment, urban and rural development blanancing projects with towns as the nodes and model area construction projects with innovation as the core in order to ensure breakthroughs. We will endeavor to promote six integration progresses, i.e., regional layout, infrastructure, industrial development, urban and rural construction, the market system and social development, to reinforce construction of joint programs of the three cities by starting the construction of the inter-city light rails, subways in Changsha and a small number of inter-city artery programs including roads of Dongzhu, Tongxia, Tianyi, Pingtang and Jiuhua, to push ahead construction of a general transport hub along Xiangjiang River in Changsha, to start the Phase II of the project of the scenic belts along Xiangjiang River, to coordinate the construction of the port complex of Chang-Zhu-Tan and the Port of Yueyang, to accelerate the integrations of phone communications in Chang-Zhu-Tan City Cluster such as the city code unification within the same large network and simultaneous increase in the figure of the fixed communications network, to advance the construction of 5 model areas such as the Great West Region of Xiangjiang River. We will promptly start building the Meixihu Innovation Sci-tech Park in Changsha.

Building of a two-oriented society through comprehensive and auxiliary reform will be started. We will attach equal importance to reform acceleration and development promotion, promptly formulate the plan for reform and construction of the pilot area and amend experimental schemes for special reforms in an effort to start the construction of some major reforms in major fields and key links such as resource conservation, environmental protection, industrial development, sci-tech innovation and land management and to boost reform of systems of fiscal and taxation and banking, opening up to the outside world, overal planning for urban and rural development and the administrative system etc. We will actively launch campaigns of building two-oriented communities, schools and organs.

Hard work will be put in driving construction of a two-oriented society across Hunan through the comprehensive and auxiliary reform in Chang-Zhu-Tan City Cluster. Firstly, we will improve intensive utilization of resources by applying the strictest possible systems for protecting farmland and for practising economy in land use; hashly control farmland for construction by approving utilization of farmland for construction on the premise of reclamation of another cultivated land of the same size, properly dealing with more idle land, and tightening oversight on law enforcement so as to advance optimal distribution and highly efficient use of land for construction. We will invest much effort in restoring order in and standardizing the exploitation of mineral resources, more in treating special problems of major mining areas, major mineral varieties and excessive mining in depth and area. We will promote the innovation of the mineral resource management system and resource integration to build a long-term effective mechanism of orderly, continuous and above-scale mineral resources development and improve it. We will intensify efforts in geological work and in conservation, protection and unified management of water resources.

Secondly, a circular economy will be greatly developed. We will continued with the development of national circular economy pilot areas including Zhuzhou Smelter Group Co Ltd, Hunan Zhicheng Chemicals Industry Co Ltd, Milo Circular Economy Industrial Park, Tiger Forest& Paper Group, Qingshuitang in Zhuzhou and Yongxing in Chenzhou, promptly start operations of Hunan’s 20 enterprises and 7 industrial parks as circular economy pilot areas be, heighten levels of comprehensive utilization of industrial wastes and recycling of renewable resources with the focus on popularizing clean production and resource recycling in such industries as steel and iron, nonferrous metals, paper-making, textile, chemicals and building materials.

Thirdly, environmental conservation industries will be forcefully developed. We will pay primary attention to breeding and introducing environmental conservation backbone enterprises, aiding a small number of enterprises such as Yonker Environmental Protection Group and Changsha Kaitian Environmental Technology Co Ltd to grow stronger and generalizing enterprise-oriented, market-oriented and socialized operations in environmental pollution treatment.

Fourthly, building of the ecological environment will be reinforced. We will carefully act out the formula of treating water pollution in Xiangjiang River and comprehensively tackle pollutions from metallurgy, mining and ore dressing, chemicals and breeding of livestock and poultry; quicken the implementation of the three-year action plan for disposing of domestic sewage in urban areas in Hunan and complete the construction of sewage disposal facilities in cities with a municipal government and counties. We will tighten control of pollution sources by conducting censuses of pollution sources and reinforcing building of automatic monitoring systems. We will tighten the operation of the environmental impact statement system, put in place and better the compensation mechanisms for damage to the ecological environment by raising the threshold for environmental access according to various requirements of development priority zones.We will restrict export of energy-intensive, highly-polluting and resource-intensive products. We will intensify efforts to prevent and dispose of rural pollutions by tightly controlling transfer of high-polluting enterprises and backward production facilities to rural areas. We will heighten protection of important ecological function zones by continuing with afforestation and closure of forests for rehabilitation, consolidating the achievements made in converting retired farmland and fields to forests and lakes respectively, reinforcing treatment of soil erosion and protecting the ecological systems in forests and wetlands. We will make efforts to transfigure Changsha, Zhuzhou, Changde, Shaoyang, Huaihua, Zhangjiajie and Xiangxi Autonomous Prefecture to be eco-friendly prefectural cities.We will vigorously advocate a green consumption mode to promote conservation cultural development. Fifthly, we will step up efforts in quest for building a number of provincial reform pilot areas in 3+5 City Cluster ( Chang-Zhu-Tan City Cluster plus Yueyang, Changde, Yiyang, Loudi and Hengyang) even in the whole Hunan in comformity with the requirements of two-oriented society construction.

Promoting the coordinated economic growth of all regions

We will enhance central cities to drive regional development. We will maintain plan guidance, reform promotion and industrial support to drive resource elements such as population, industries, technology, capital and information to converge on central cities to improve urban infrastructure, strengthen the overall carrying capacity of cities, promote new-type industrialization, heighten the primary position of central cities and finally give full play to their role in boosting economic growth in surrounding areas. With Chang-Zhu-Tan City Cluster as the core, central cities in prefectural cities as the focus and the counties and central towns as the support, we will build 3+5 City Cluster to form an urban development pattern with distinctive characteristics and complementary strengths. Relying on the coastal geographical advantage of the three south cities of Hunan and Chenglingji Port in Yueyang and their direct links with Pearl River Delta and Yangtze River Delta, we will accelerate construction of an industrial system of open cities and opening up and developoment of south Hunan.

We will focus on bettering the urban public transportation system and strengthening construction of municipal public facilites so as to bring into being a multi-level and multi-functional system of urban public service facilities. We will amend the urban management system, and tighten urban management, largely urban planning, land for construction and ecological environment etc, in order to promote urban development in a scientific mode.

We will further heighten the county economic vitality. We will exet our strength to build 100 powerful counties and 1000 powerful towns across the country and intensify the driving force of counties and central towns to rural development in terms of innovating mechanisms and fostering financial sources for making breakthroughs. Based on the advantageous resources and industrial basis in counties, we will enhance industrial parks in counties, nurture and expand pillar industries in an effort to speed up building economically strong counties and strengthening the capacity to balance the urban and rural development. We will improve and implement polices and measures for developing county economy, innovate the urban and rural integrated development mechanism, increase investment in elements such as technology and capital so as to promote a balanced distribution of public resources between urban and rural areas and to set up a mechanism of mutual promotion between new-type urbanization and new countryside construction.

We will continually make progress in development of the western Hunan, poverty-stricken areas in particular. We will invest effort in quickening the pace of infrastructure construction, industrial development, technical training, ecological environment construction and development of social programs and in pushing ahead the fulfilment of the second 175 industrial programs in the provincial plan. We will keep assisting Xiangxi Autonomous Prefecture as Hunan’s main battlefield of poverty- alleviation by earnestly put all poverty-alleviation measures into action and increasing investment in it. We will practise new poverty-alleviation standards by applying the poverty alleviation policies to low-income rural people in all respects and taking resolving the subsistence and get-quick-rich problem of the concerned objects as the primary task of reducing rural poverty through development in the new phase. We will integrate poverty reducing resources and poverty alleviation through regional cooperation, settlement in villages and one-to-one assistance. We will follow the plan of integrated village development cluster by cluster. We will pay primary attention to assisting 1366 villages in quickening the pace of reducing poverty through development. We will accelerate development of old revolutionary areas, ethnic minority areas, poor areas and reservoir areas and well grasp assistance to people displaced by projects of large and medium-sized reservoirs.

Unswervingly promote reform and opening up

We will continue reform of State-owned enterprises (SOEs). We will well mop up round-off work of reform of SOEs with the focus on solution of remaining problems. We will powerfully propel the adjustment of the strategic distribution of the state sector of the economy by driving factors such as resources, technology and talents to concentrate in important industries, key fields and emergent industries with comparative advantages and in large companies and large groups via annexation, purchase and property rights allocation and other means. We will fulfil all risks management, improve the corporate governance structure and set up a system for effective and balancing operation, management and supervision of SOEs so as to improve their scientific management. We will better the state-owned assets supervision and administration system, perfect the mechanisms of performance evaluation method and incentive and binding, tighten oversight on finance of capital contributors and management of their property rights, intensify management of asset and capital operations in an effort to realize the transformation of supervision and management into strategic management, risk control and management by property rights representatives.

We will perfect the systems of fiscal and taxation, banking and financing and investment. We will actively invest effort in reform of value-added tax, improve fiscal systems at and below the provincial level, explore direct financial management of counties by Hunan Provincial People’s Government in pilot counties and gradually establish a system of guaranteeing basic financial resources of counties and improve it. We will deepen the reform of budget systems and department budgets, improve the State treasury management system and expand the government procurement covery and scales. We will continue cleaning up the administrative fees and government funds. We will go on deepening the reform of financing and investment systems, simplifying examination and approval procedures of the government, vigourously generalizing management through public announcements, appraisal and deliberation by experts and agency construction. We will make rural credit cooperatives and rural cooperative banks larger and stronger, actively promote reorganization of urban commercial banks to regional commercial banks, forcefully introduce foreign-funded banks, shareholding commercial banks and private equity funds. We will keep promoting cooperation between banks and enterprises, innovating credit products and service patterns and increasing valid credit investment. We will encourage listed companies to apply bond financing and guide enterprises in raising funds through international financing, short-term financing bills or medium-term notes and other means. We will reinforce the building of a social credibility system by tightening financial supervision, guarding financial property, impoving financial ecology so as to prevent and mitigate financial risks.We will develop markets for production factors such as technology, competent professionals, property rights and land and heighten the resource distribution efficiency. We will implement to the full relevant reform policies and actively and steadily push forward the reform of prices of energy, resources and environmental products.

We will boost the reform and innovation of rural systems. We will go on deepening comprehensive rural reform, setting up regional public service institutions in agriculture or those in townships and improving them to reinforce the functions of social management and public services in townships. We will standardize rural land management, stablize the land contract relationships and better powers and functions of land contract and management rights, the rural house site-related system and the land requisition system. We will push forward the transfer of land contract and management rights and develop above-scale operations. We will invest effort in relieving rural debts and consolidating the achievements of the reform of rural taxes and administrative charges.We will advance standard guidance and policy support to develop specialized agricultural cooperative organizations. We will deepen reform of the property rights system of rural credit cooperatives, explored ways to set up the rural credit guarantee systems, support specialized farmers’s cooperative organizations where conditions permit to develop credit cooperation in an effort to dispel the difficulty of farmers in getting loans. We will promote the reform of the system of collective forest rights, taxes and administrative charges on state-owned farms and the system of water management at the basic level.

We will speed up the development of the non-public sector of the economy and SMEs. We will encourage powerful enterprises of non-public ownership to participate in reorganization of SOEs and permit public capital permeation into banking services, public utilities, infrastructure and other fields. We will primarily support enterprises of non-public ownership established independently with a large employment capacity, increase support to aspects such as credit, finance and taxation, establish and improve credit guarantee systems for non-public sector of economy.We will practise the plan of venture creation across the country, better the platforms of employment by principally well building 30 model bases of venture creation, guiding and aiding personnel with wishes of and abilities in starting businesses while relying on the venture creation bases and industrial parks. We will perfect the system of providing comprehensive services and establish the mechanism for mitigating risks in business start-up.
We will put in place a system of assisting enterprises in development and build service platforms of policy, law, information and credit etc to overcome the financing difficulty of SMEs and principally to meet the demand of enterprises established in accordance with the industrial and environmental protection policies and with enormous market, technology and promising prospects. We will increase the special funds for development of SMEs with the focus on supporting those with good potentials, guide and assist SMEs in providing support services for large enterprises, grasp the Little Giant Program(a program proposed by Hunan Provincial People’s Government and aiming to assist competitive pacemaking SMEs in development) and quality improvement of SMEs involved in the Growing Project ( a project with the SMEs as the bulk which is meant for enhancing the overall quality of SMEs and promote change of the economic growth pattern and in which gvernments are supposed to strengthen service supervision and guidance in production and operations of SMEs), help and reinforce the construction of programs such as industrial support, independent brands, devleopment of new products. We will intensify support to credit guarantee companies and improve the system of credit guarantee for SMEs. We will more actively make advances in opening to the outside world.
We will stick to opening up on a long-term, comprehensive and mutually benefitial basis and bring about a benign mechansim of making use of both domestic and international markets and resources in a well-planned way.We will put stress on the construction of 4 key transition cities, namely, Chenzhou,Yueyang, Yiyang and Yongzhou, and some key transition counties, pilot counties and transition parks and improve the proportion of processing trade in Hunan’s gross export value. We will quicken the pace of developing the outsourcing business, striving to expand the Changsha outsourcing base to Chang-Zhu-Tan City Cluster. We will increase our endeavor in attracting thousands of businesses to Hunan, absorb more regional headquarters, operation centers and R&D centers of multinational companies to settle their subsidiaries down in Changsha and further increase cooperation with enterprises of CPC Central Committee in an effort to introduce a small number of programs of new and high-tech or new types of energy and to set up regional headquarters in Hunan.We will take an active part in economic and technological cooperation with the Pan-Pearl River Delta and the 6 provinces in the central China and get incorporated into the world market by drawing on the international platforms such as Yangtze River Delta and Gulf of Tonkin. We will invest great effort in holding such major activities as the investment invitation week in Hong Kong for carrying on the industrial transfer,the International Cooperation Forum on Resources and Environment, Minister Forum on China Hybrid Rice Technology Relief Everywhere and Cooperation, 2009 Conference of Hunan Entrepreneurs and the Fifth Hunan and Taiwan Economic and Trade Exchange and Cooperation.

We will optimize the investment environment, put forth efforts in solving the bottleneck（constraints）on land and financing etc, bettering the conditions of logistics, transport and customs clearance at ports and accelerate the construction of the auxiliary facilities for the combined transportation by rail and sea, by river and sea, by Train-Air, and for the ‘five Fixs’ regular trains (regular trains with loading stations, route, train number, times and fare all fixed). We should incessantly expand the international market, optimizing the import and export structure by enlarging the import of major key equipment, advanced technology, resource-intensive products and raw materials products and increasing export of products with independent intellectual property rights and independent brands, mechanical and electrical products and new and high-tech products. We will reinforce the building of special supervision platforms of import and export and endeavor to add the function of bonded logistics to Chenzhou export processing zone and to realize the approval of Changsha and Yueyang as national export processing zones. We will proactively and steadily implement the “go global” strategy, forcefully develop economic and technological cooperation and exchange with foreigners, place emphasis on aiding competitive industries including construction machinery, rail transit, non-ferrous metals and culture media in international competition and cooperation, and nurture more local multinational companies and international brands.