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The "Communist Party of China (CPC) Central Committee's Proposal on the Formulation of the 11th Five-Year Guielines (2006-2010) for National Economic and Social Development" adopted by the Fifth Plenum of the 16th CPC Central Committee put forward many new thoughts, new ideas and new moves. This will definitely exert mayor influence on the new practice of China's economic and social development, the following 11 key words merit attention.

1. Adjustment of industrial structure

During the "11th Five-Year Guielines" period, adjustment of the industrial structure includes two-layer meanings: One is raising the level of industrial technology.

The "Proposal" points out: To realize the adjustment of the industrial structure, "the key is to comprehensively enhance independent innovative capability, strive to master core technology and key technology, strengthen ability for the transformation of scientific and technological achievements and improve the overall technological level of industry".

Second is developing key industries. The "Proposal" points out that the important tasks for adjustment of the industrial structure is to develop advanced manufacturing industry, increase the proportion of the service trade and strengthen infrastructure construction for basic industries.

2. Cycling economy

The "Proposal" points out that developing a cycling economy is an important way for the building of a resources-saving and environment friendly society and realizing sustainable development.

Vigorously developing a cycling economy requires adoption of comprehensive measures: Changing the concept of development, rationally adjusting industrial structure and distribution, establishing a technical supporting system for the development of a cycling economy, perfecting the system and mechanism for promoting the development of a cycling economy, strengthening laws and regulations and a standard system for developing a cycling economy, organizing and launching a pilot project for the cycling economy and intensifying publicity and education.

3. Independent innovation

The "Proposal" notes that regarding enhancement of independent innovative capability as the strategic basic point of scientific and technological development and a key link in adjusting the industrial structure and changing the mode of economic growth, vigorously improving primitive innovative ability, integrated innovative ability and the re-innovative abilities for introduction, assimilation and digestion of technology.

Enhancing independent innovative capability requires: First, accelerating establishment of a technological innovative system that takes enterprise as the mainstay and market as the guide and features the integration of production, emulation and research. Second, improving the market environment for technical innovation. Third, implementing policies related to finance, taxation, banking and government procurement for supporting independent innovation, and perfecting an incentive mechanism for independent innovation. Fourth, making proper use of global resources of science and technology. And Fifth, strengthening protection of intellectual property rights (IPR).

4. Regional coordination

The "Proposal" points to the need of carrying out development of the western region, revitalizing northeastern old industrial bases, promoting the rise of the central region, encouraging the eastern region to take the lead in development, so as to form a pattern in which the eastern, central and western regions act together, take advantage of each other's strengths, promote each other and enjoy common development.

The "Proposal" points out the way for implementing the strategy of regional development mainly in three aspects. First, strengthening regional coordination and interaction mechanisms, which include the market mechanism, cooperation mechanism, mutual-aid mechanism and supporting mechanism. Second, clearly defining the functional positions of different regions.

Carrying out optimized development, selected point development, restricted development and prohibited development in accordance with the populations, resources, environment bearing capacity and development potentialities of various regions. Third, expediting a sound development of urbanization. Vigorously and steadily pressing ahead with urbanization in line with the principles of advancing in an orderly and gradual way, saving lands, engaging in intensive development and making rational arrangement.

5. Expanding domestic demand

The "Proposal" points to the need of further expanding domestic demands, adjusting the relationship between investment and consumption, and increasing the role of consumption in boosting economic growth. The contribution rate of China's consumption to the growth of GDP has witnessed a continuous sharp drop in recent years, the growths of investment and consumption are inharmonious.

During the "11th Five-Year Guielines" period, China will focus its efforts on expanding consumption demands from four aspects, and give further play to the role of consumption in pulling along economic growth. First is to change the situation of the sluggish rural consumption through increasing farmers' incomes, intensifying the government's public services to rural areas and accelerating the pace of urbanization, etc.; second is to intensify efforts in regulating income distribution through raising the income levels of medium- and low-income earners and guide urbanites to expand consumptions; third is to gradually improve the country's social security system, so as to relieve consumers of their "worries" about consumption; fourth is to improve the consumption environment and thus guarantee civilians' consumption safety.

6. Boosting "four new -izations"

During the "11th Five-Year Guielines" period, the process of the "four new -izations" characterized by industrialization, urbanization, marketization and internationalization will be fully accelerated, and the Chinese economy will thus release tremendous vigor.

Acceleration of industrialization refers to the fact that currently the output of China's principal industrial products have ranked first in the world, the country is becoming the world's largest industrial production base. Faster urbanization refers to the rapid growth of China's urban population. Quickening marketization refers to the fact that China has become one of the most open markets in the world, as well as a market which witnesses the fiercest competition in the world, of the world's top 500 enterprises, 450 have entered into the Chinese market. Acceleration of internationalization means that the proportion of GDP in relevance to international capital increased from 25.4 percent in 2000 to 37.7 percent in 2004. Promoting the development of "four new -izations" provides an important condition for maintaining the rapid development of China's economy.

(People's Daily October 10, 2005)