by Xia Geng, Mayor of Qingdao

Fellow deputies:

On behalf of the Qingdao Municipal People's Government, I now present a report on government work to the congress for its review and for comments by the members of the Qingdao Municipal Committee of the Chinese People's Political Consultative Conference and nonvoting delegates.

I. Review of the Government’s Work in 2004
　　Last year was a year when remarkable achievements were made in the reform and opening up and the modernization drive in Qingdao. Under the correct leadership of the CPC Qingdao Committee, and of the guidance of Deng Xiaoping Theory and the important thought of “Three Represents”, by firmly relying on all the people of Qingdao, putting into practice the spirit of the 16th CPC National Congress, the 3rd and 4th Plenary Sessions of the Central Committee as well as all the arrangements made by the CPC Shandong Committee and the government, commanding the overall situation with a scientific viewpoint of development in accordance with the CPC Qingdao Committee’s ideas of “Five threes”, we spared no efforts in pushing forward the work in every respect and well fulfilled all the tasks set by the 2nd Session of the 13th Qingdao People’s Congress and achieved one year ahead of time the chief goals set by the Tenth Five-year Plan for the national economic and social development.
　　Preliminary statistics indicates that Qingdao’s GDP in 2004 reached 216.38 billion yuan, representing an 16.8 percent increase over the previous year; the local fiscal revenue totaled 13.05 billion yuan, 28.5 percent more than the previous year. The social investment in fixed assets reached 102.54 billion yuan, an increase of 38.7 percent. The ratio of the industrial structure was 7.5 : 54.1 : 38.4. 
1. Conscientiously implementing the macro regulatory policy to accelerate the pace of the economic restructure.
　　Phased achievements have been made in macro regulation. Various types of development zones were rectified and put in order. The order of the land market was standardized. 67.2 percent of the area covered by the development plans was reduced after examination and rectification. A stock of 48,000mu (about 3,200 hectares) of land was tapped and integrated. 29,000mu (about 1,933 hectares) was approved by the State for the key urgent construction projects. Proactive measures were taken to overcome the difficulties in coal, electricity, oil supply and that in transportation. We have achieved 26.9 percent increase in added value of large industrial enterprises. A 35 percent increase of production value in high and new tech industry accounted for more than 40 percent industrial output of all large industrial enterprises.
　　The construction of an economic system based on sustainable development was accelerated. Great effort was made to develop six industrial clusters. New progress was made in major projects and brand-based economy. The 10 million tons oil refinery project has been ratified by the State and the construction work will soon be started. An all-round cooperation agreement was signed with China Shipbuilding Industry Corporation. Projects such as the third phase of Qianwan Harbor, Haixiwan Shipbuilding and Ship Repairing Base and the second phase of Qingdao Power Plant Extension were in smooth progress. The construction of Lidong Chemical and Qingdao LG Langchao Digital Communication were well under way. The third phase of Qingdao TAK Ltd. and Qingdao Pohang Stainless Steel have already been put into production. Qingdao was listed among the first national electronic information industrial bases. The project of Haier mobile phone has been completed and put into production. As many as 16 local products won the title of “China’s Top Brand Products ” and four local trademarks were newly honored “China’s Well-known Trademarks”.
　　Modern service industries were well developed. The North China headquarters of Maersk (China) and the China Korean Air Call Center were established in Qingdao. The throughput of Qingdao Harbor reached 160 million tons while the container throughput 5 million TEUs. The throughput of air passengers was 4.808 million person-times and air cargo 105 thousand tons. The foundation stones have been laid for the construction of the Polar Ocean World, Modern Art Center and the second phase of Shangrila Hotel. The gross income of tourism topped 20 billion yuan with the number of overseas and domestic tourists amounting to 500,000 and 20 million person-times respectively. Five financial institutions including Evergrowing Bank, Dazhong Insurance were introduced to set up their business operations in Qingdao. The local tax revenue in financial sector increased by 21.4 percent. The radiation capacity of the business and trade sectors in the Shandong Peninsula is further strengthened.
2. Planning the urban and rural development as a whole to increase farmers’ income.
　　We earmarked 684 million yuan for “agriculture, rural areas and farmers”, 28.6 percent more than the previous year. All the districts were exempted from the agricultural tax which was reduced by 3 percentage points in the five surrounding satellite cities. 230 million yuan in agricultural tax and additional tax was reduced or exempted. We granted 44.24 million yuan as direct grain subsidy to the farmers. The annual gross grain output reached 2.323 million tons, an increase of 4.6 percent. The annual per capita income of the farmers was 5,080 yuan, an increase of 12.1 percent, which was the highest increase since 1998. The back payment of compensation subsidies to the farmers for land acquisition and resettlement has been cleared up. The industrialization of agriculture was sped up. With another three state-level leading enterprises emerging, there are all together nine national-level major enterprises located here in Qingdao. All the five suburban satellite cities have been listed among the national top 100 counties. The prevention and treatment of the highly epidemic bird flu was effectively implemented to secure a pandemic-free Qingdao.
3. Speeding up the urban construction to further improve the urban environment
　　New headway was made in the urban planning and key project construction. An all-round editing and revision of the overall urban planning has been fully underway and some specially designed planning work has been completed, including the General Planning of the City Groups along the Coastal Highway, the construction and planning of the ecological city and the comprehensive planning of the urban traffic routes. 100 percent of the areas in all the seven districts are under the controlled planning, and five of them have started their own planning. The revised general planning of Qianwan Harbor has been examined and approved by the relevant state authorities. The urban framework of “Three-point layout, one-line extension and group development” has been in full swing. The projects that were already under construction include the northern section of the Coastal Highway, the coastal promenade at Laoshan District section and the renovation of the Shilaoren Bathing Beach. The electrification of the Qingdao section of Qingdao-Jinan Railway was sped up. The corner stone was laid for the second phase construction of Qingdao-Yinchuan Highway. The renovation of Huiquan Square and the expansion of Liuting International Airport were completed and put to use. The pilot project of “Turning the flat roofs into the pitched ones” has been accomplished. The geological exploration, the experts’ feasibility study, public release and hearing for the trans-oceanic tunnel project were all fulfilled. The plan of building a tunnel in the south and a bridge in the north has been submitted for approval.
　　The Action Plan for The Olympic Games was smoothly implemented. The construction for the sailing marina and the relevant facilities was well on its way in an all-round way. We studied and emulated the organizational and administrative work of the large-scale sailing events in the Athens Olympiad and many other sailing competitions at home and abroad. The promotion of the “Sailing City” was also launched in and outside China.
　　The construction of the Ecological City was started, and we have passed the provincial re-examination for the Model Cities of National Environmental Protection. Qingdao takes the lead nationwide in reaching the standards for the industrial wastewater discharge and the coverage of smoke-controlled area. The days when air quality was excellent or fairly good in urban environment reached 90.7 percent. The sewage interception project along the southern coast was accelerated. A new round of the comprehensive improvement program of the city’s environment was under way in all its bearings. Tree planting of 12 major streets in the four districts of the city and the installation of the street lamps along 237 streets were completed. 690,000 trees were newly planted. The green coverage in the newly developed area reached 38 percent. We demolished 1.143 million square meters of unauthorized buildings in the past year. By practicing clean production and promoting the comprehensive use of resources, we have made achievements in circular economy to some extent.
4. Constantly deepening reform every aspect and making significant progress in opening up to the outside world
　　Reform in all sectors was pushed forward. The sales of the entire entity and the transfer of the stock ownership were completed in the past year in the state-owned and collectively run enterprises that are under the direct administration of the municipal government. Restructuring and withdrawing from the state ownership have been fulfilled in 132 state-owned medium and small enterprises, accounting for 75.5 percent of the total. Through a platform of capital established for the reform in the state-owned enterprises, we raised 1.49 billion yuan and reemployed 81,000 workers. The supervision and management over the state-owned (and collective) assets was started and 27 enterprises under the administration of Qingdao municipal government were supervised. New progress was made in the reform of the rural credit cooperatives. The linking mechanism of financial sources was set up between the municipality and the surrounding satellite cities. The proactive and stable operation ensured the smooth implementation of the reform in export tax rebate. By deepening the reform in the governmental organizations, we have basically rationalized the administrative system.
　　The economic strength of the private business increased substantially. The added value and tax revenue increased by 18 percent and 22 percent respectively and export increased by 93.8 percent. 148 enterprises obtained more than 100 million yuan in annual sales income and 13 businesses made one billion. 12 enterprises entered into the top 100 private businesses in Shandong Province. A new breakthrough has been made in the private sectors in listing and financing, and Zhongtian International Limited has been listed in Hong Kong Exchanges and Clearing Limited and the application by Qingdao MESNAC Co., Ltd. for being listed in the stock market has been approved.
　　Great progress was made in the opening up to the outside world. Import and export in the past year reached US$ 24.33 billion in which US$ 13.91 billion was made from export, 37.3 percent more than the previous year. A total foreign investment of US$ 3.83 billion was utilized, an increase of 33.1 percent. Innovation was made to improve means of attracting outside businesses and we focused on the investment from the industry clusters. 212 projects with a total investment of more than US$ 10 million were brought in and 11 new investment projects from the Fortune 500 companies were established in the past year. We successfully organized international events such as Korean Week, Japanese Week and Swedish Day. The paid-in investment from ROK and Japan increased by 46.6 percent and 10.2 percent respectively. Proactive measures were taken to transform the means of foreign trade growth, with 53.6 percent and 50.3 percent increase achieved in export of new and high technology-oriented products and electro-mechanical products. The sales turnover of US$ 210 million was materialized in foreign economic cooperation. The State Council has approved our pilot project of Interactive Link between the Development Zones and the Harbor. The Export Processing Zone was formally in operation. The foreign affairs service sector followed the national foreign policies and made fresh progress in foreign exchange and cooperation in a substantial way. Our exchanges with overseas cities have been further expanded. The work concerning compatriots from Hong Kong, Macao and Taiwan as well as overseas Chinese was enhanced. We successfully undertook a series of important conferences including the Third Foreign Ministerial Meeting of Asian Cooperation Dialogue, the Technology Exchange and Exhibition of the Third APEC Medium and small Enterprises and the National Seminar on the Construction of Ideology and Political Work for the Management of State-owned Enterprises. We brought in a domestic investment of 19.27 billion yuan. A number of national key enterprises including China Shipbuilding Industry Cooperation, Sinopec Corp. and renowned enterprises such as Beijing Capital Group, Shanghai Sunwin Bus Corporation, Gome, Suning Appliance Chains set up their branches in Qingdao. We provided further support to the underdeveloped areas in and outside the province to which we have made our commitment to render assistance.
5. Promoting the construction of urban and rural spiritual civilization to make coordinative progress in all of social undertakings.
　　We made positive results in turning Qingdao into a National City of Civilization. The Campaign of “Two Learning’s and Three Establishment’s” was launched. Renovation was done in the City Art Palace and the City Library. The Children’s Library was formally open to the public. Qingdao won the honor of “Exemplary City of Free Blood Donation”. To enhance the relationship between the military and the civilians, we offered substantial help to the military defense construction by carrying out the “Four Projects”. The PLA servicemen in Qingdao spared no effort in disaster rescue and relief and poverty alleviation. They helped develop the local welfare undertakings and sponsored some important events and made important contributions to the economic development and social stability of Qingdao. Education on national defense and construction of militia reserves were constantly strengthened. The practice of combining peaceful and warring times in the people’s air defense work brought about new progress. The institutions under the direct administration of the Central Government and the Provincial Government situated here in Qingdao showed great care for and concern about the construction and development of Qingdao and extended their great support to the city by doing a great deal of positive and effective work.
　　Social undertakings were developed in a coordinative way. Eight technological inventions won the national awards in science and technology. 1973 items were patented, an increase of 32 percent. Qingdao was designated a pilot city of the National Enterprise Technological Innovation. The national base for deep-sea submersible was set up in Qingdao. “Charge-fees-only-once system”, which means students should pay all their schooling tuitions and fees for only once, was enforced in the compulsory education and a county-level- centered rural compulsory education mechanism was further improved. The proportion of junior high students entering senior high schools reached up to 92 percent. The extra fee charged on the migrant rural workers whose children attend public schools in Qingdao was rescinded. The pilot project of reform on the new courses in the elementary education was launched. The construction of the Eastern Branch of the Municipal Hospital was completed and so was the planning of Qingdao Grand Theater. Qingdao Stadium was under construction. The corner stone was laid for the Qingdao Teaching Base of Beijing Film Academy. 313 items of elaborate work of culture won national awards. 150,000 households had access to the cable digital TV system.
　　Last year saw the best performance of Qingdao athletes in the local historical record in the 28th Athens Olympic Games and the 12th Games for the Disabled. The low birth rate remained stable. The civil administration and assistance of women, children and the aged was developed steadfastly and so were undertakings for the disabled and the Red Cross affairs. Fresh progress was also scored in the work of meteorological forecasting, earthquake warning, ethnic groups, religious affairs, archives and compilation of local historical record.
6. Painstaking effort was made to resolve the practical problems vital to people’s immediate interests to gradually improve people’s well-being
　　Almost all the 17 projects promised in the beginning of 2004 to be fulfilled by the government as the top priority were completed or lived up to the requirement of certain phases. The growth rate of employment remained higher than that of unemployment, with 141,000 people employed in the past year. The urban registered unemployment rate was 3.1 percent. The per capita disposable income of urban residents was 11,089 yuan, an increase of 10.1 percent. The 157,000 new labors in rural areas were employed in the city. We basically eradicated the problem of wage arrears for the migrant rural workers, and lowered the self-paid proportion of the retirees’ pensions and insurance premium. More than 1 million employees joined the insurance. The pilot project of the new rural pension and insurance system was expanded, and the bottom line of life subsisting allowance of both urban and rural areas was raised. We launched the new rural cooperative medical system that benefited 89 percent of farmers. The construction of 648,000 square meters of economically affordable housing was completed. 157,000 square meters of area with heating supply was newly added and an additional 85,000 households had access to natural gas. The reconstruction of Liaoyang Xilu Road and Anshun Road was under way in the northern part of the city, so was renovation of Licun River. We made a “Three-Year Work Plan” to solve 10 major problems such as minimizing the disparity between the north and south and strengthening the city management, which were put forward by the residents during the “Citizens’ Month” and was carried out step by step. The monitoring and supervising over the prices of commodities such as grain and vegetables was strengthened. The key commodities were in abundant storage to help maintain the market retail price stable.
7. Pushing forward the construction of “Peaceful and Safe Qingdao” to secure the stability of social and political order in the city.
　　With “Peaceful and Safe Qingdao” as our goal, we adopted the practice of preventing from and cracking down on crimes, with more attention paid to the former. We improved the public order management mechanism by taking into consideration all such means as cracking down on, preventing from and control of crimes. Emphasis was laid to the grass roots level to improve the working mechanism. The responsibility system and the leader’s responsibility system of comprehensive control of the social order were effectively implemented with success achieved to a certain extent. The registered criminal cases decreased by 5.6 percent; the public security cases accepted and heard also decreased by 32.1percent. The cracking of several major criminal cases relieved the citizens’ concern and worry about the public security.
　　We set up the Alarm Response Center of Public Information Network Safety, the first of its kind in China. While strengthening construction of the public security emergency response system, we set up and improved 38 special emergency responses. The number of all accidents and the death toll dropped by 32.5 percent and 21.3 percent. The establishment of the Food and Drug Safety Project dramatically improved the safety of food and drugs in Qingdao. We paid attention to people’s complaints and visits to the government in an effort to make thorough investigation to solve the disparities and disputes. We never delayed in eliminating the security-threatening factors so as to maintain a harmonious and stable society.
8. Pushing forward administration in accordance with the law to strengthen the self-improvement of the government.
　　We extensively launched the campaignes of “Studying, Publicizing and Implementing the Constitution”, the “Administrative Permission Law of the People’s Republic of China” and “Pushing forward the Implementation Program of Administration in accordance with Law”. We screened all the rules and regulations stipulated by the local government, among which eight of them were submitted to Qingdao People’s Congress to be abolished, 19 local rules were amended, 114 had been abolished and 37 governmental regulations were amended. We completed the screening of the items and the implementing in accordance with the Administrative Permission Law. The relatively centralized authority of administrative penalty was put into effect in the urban management. In launching the campaignes such as “Three Fast-speed’s and One Enhancement” and “Three Visits”, we sternly investigated the civil servants’ behaviors of negligence and power abuse to improve the government work styles. We conscientiously put ourselves under the supervision of the Qingdao People’s Congress, Qingdao People’s Political Consultative Conference and the Masses. All the suggestions made by the Qingdao People’s Congress and the resolutions proposed by the members of the Qingdao People’s Political Consultative Conference were properly handled, among which No.6 and No.10 motions have been implemented to a certain extent.
　　Fellow deputies,
　　It is not easy to accomplish those achievements made in the past year. These remarkable results can be attributed to the correct leadership of the CPC Central Committee, the State Council, the CPC Shandong Committee, the Shandong People’s Government and the CPC Qingdao Committee as well as supervision by and support from the Qingdao People's Congress and the Qingdao People's Political Consultative Conference. And also, they could be attributed to the united hard work and the concerted efforts made by people of all walks of life. On behalf of the Qingdao Municipal Government, I hereby extend the highest esteem to the people of Qingdao for their selfless contribution and industrious work. My sincere gratitude is also extended to the deputies of the Qingdao People’s Congress and the members of the Qingdao Political Consultative Conference for their strong support for our government work, to all the democratic parties, to the Federation of Industry and Commerce, to the armed forces and armed police stationed in Qingdao, to the departments of both the Central Government and Shandong Provincial People’s Government deployed in Qingdao, and to all our friends from both home and abroad who care about and support the development of Qingdao..
　　Fellow deputies,
　　We are also aware that a number of contradictions and problems still exist in Qingdao’s economic and social development. The task remains arduous to restructure the economic framework and to update our industry. The development of the service industry still lags behind. The proportion of private businesses is rather low. The barriers from the institutional system and mechanism in some sectors still loom large. The economic growth is gained in a way far from being intensive. The ecological environment poses heavy pressure on us. The urban construction and the mechanism of management system need to be rationalized. The gap between urban and rural areas and that of the north and south remain yet to be narrowed. The disparity exists as before in high-quality education and in supply-demand of the public health resources. The cultural and sports facilities are still insufficient. The overall income of the urban and rural residents is not high. A long-term mechanism to increase farmers’ income is yet to be established. We are still faced with pressure of increasing employment rate and implementing social security system. Some mal-functions remain yet to be eliminated in the government performance. Our awareness of administration in accordance with law is yet to be strengthened. The executive power and the administrative efficiency are yet to be boosted. Scrimshank and corruption remain disturbing from time to time. We show great concern about these problems and are determined to tackle them one by one through promoting development and reform. It is our sincere hope that with the supervision and support from our fellow deputies, members of Qingdao People’s Political Consultative Conference and the people of all walks of life, our government work will be improved in the coming year.

II. Major Tasks of the Year 2005
　　2005 is a crucial year for implementing the scientific viewpoint of development, consolidating the fruits of macroeconomic regulation and control and fulfilling the objectives set by the Tenth Five-year Plan for national economic and social development. The general requirements of the municipal government for this year is to take Deng Xiaoping Theory and the important thought of Three Represents as our guideline, to put into effect the guiding principle of the Party’s 16th National Congress and its Third and Fourth Plenary Sessions of 16th National Congress, to implement the scientific viewpoint of development, to adhere to the principle of making development our top concern. By pursuing the objective of turning Qingdao into a key central city in China and the worldwide-known city with its own characteristics, we will push forward reform and development, accelerate the economic restructure, transform the present mode of economic growth, attach great importance to the “Three Major Tasks” to promote the “Project of Making Qingdao Prosperous, Safe and Culturally Advanced”. We will build a harmonious socialist economic society to achieve an all-round, coordinated and sustainable development.
The main targets for our social and economic development are: 14 percent increase in the gross value of production of the whole city, 14 percent increase in the local financial budget revenue, 10 percent and seven percent increase respectively in the urban per capita disposable income and the rural per capita net income, less than 4.2 percent of registered urban unemployment rate and the general Consumer Price Index (CPI) to be maintained within 104.
Fellow deputies,
　　We are faced with challenges from all aspects, but also gifted with precious opportunities for development. The central government will carry on the macroeconomic regulatory and control policy and implement prudent fiscal and monetary policy. Thanks to the efforts made by the CPC Shandong Committee and Shandong Provincial People’s Government in highlighting the leading role of Qingdao, the construction of Jiaodong Peninsular manufacture base and Shandong Peninsular city cluster is accelerated. The “Five-three’s” ideas for the CPC Qingdao Committee in their work will be put into practice in an all-round way, resulting in momentum for a scientific, fast and harmonious development. All the objectives and tasks will be fulfilled as long as we have a strong sense of opportunity, risk and innovation. The fulfillment also depends on the concerted efforts of the people in Qingdao who work hard for this purpose.
1. Carrying on the economic restructure and adhering to the road of new types of industrialization.
　　We will accelerate the construction of the advanced manufacture base. In accordance with the construction of economic system based on sustainable development, we will pay more attention to the establishment of six industrial clusters and promote the development of 20 key projects with an investment of more than 1 billion yuan including oil refinery, shipbuilding and auto making, and 100 key projects with an investment of more than 100 million yuan each. In electronics and electrical appliance industries, we will speed up the construction of the National Electronic Information Industry Base and Industrial Park. In petrol-chemical industry, projects such as the main building part of the 10 million-ton oil refinery and Qingdao Lidong Chemical will be accelerated. In shipbuilding, the construction of Haixiwan Shipbuilding and Repairing Base is to be sped up. Importance should be attached to projects aiming at bringing in vessel research and development, equipment design and manufacture. In auto industry, priority will be given to the manufacture of cargo vehicles, passenger vehicles and special vehicles in addition to the construction of production of major spare parts and components and the research and development center. The harbor resources are to be restructured in an all-round way and the construction of Qianwan Harbor Zone is to be accelerated. The Aoshan Harbor is to be planned and constructed.
　　Strengthening the construction of major enterprises and an echelon of famous brand names. The policy of supporting the localization of the key enterprises should be formulated and the “Straight-through” services should be set up. We will take the initiative to facilitate the qualified enterprises to enter into the world “Top 500” and promote some key enterprises so that they will become leaders in China’s industries. We will also work hard to enable some private enterprises to enter into the “Top 100 Chinese Private Enterprises”. We will give guidance to the medium- and small-sized enterprises to base themselves on the construction of an industrial cluster to form a processing system for supporting and complete plant. More momentum will be given to the development of the brand-based economy to help more large-sized enterprises emerge with annual sales revenue of 1 billion yuan. We will strengthen the control and guidance over the operation of the industrial economy and coordinate the supply of the main factors in industrial production such as coal, electricity, oil and transport.
　　We will actively promote development of the modern service industry. We will boost the harbor-based economy and “Interactive Link between the Development Zone and the Harbor”, increase the level of harbor service and transit and distribution function of overseas goods and bring into effect the interactive development of the harbor shipping and logistics industry. Our goal is to build Qingdao into an international coastal holiday resort with the tourism industry aiming at reaching up to the international quality standards. We will tap and restructure the tourist resources, develop and improve a series of tourist products such as holiday-oriented tourism, festival-oriented tourism, conference-oriented tourism, and ecologically oriented tourism. We will accelerate construction of some key tourist projects, including the Polar Ocean World in particular. More efforts will be made to publicize Qingdao at home and abroad. The second phase of the International Conference Center project will be sped up. We will try to be a good organizer and sponsor in holding such significant festivals and exhibitions as Qingdao International Beer Festival, Qingdao Marine Festival and the Electronics Exposition of China International Consumption, Qingdao. We will endeavor to attract at least two financial institutions from home and abroad to set up their offices in Qingdao. In developing the headquarters-based economy, we hope more headquarters of large businesses will set up their regional head offices here in Qingdao. The planning and managing system of the city- and district-level commercial networks will be improved. More commercial centers will be established in communities and areas at the district level.
2. Keeping up a good developing momentum for agriculture and rural areas to continuously increase farmers’ income.
　　We will expand the urban and rural development on the basis of overall consideration of all issues by promoting the unique suburb-based economy. The construction of the comprehensive productive capacity of agriculture will be substantially strengthened. The rural reform will be deepened in all aspects to further stabilize grain production, increase farmers’ income and achieve a harmonious development in rural economic society.
　　We will accelerate the agricultural restructure and expand the support to construction of an exemplary zone of 1 million mu (66.770 hectares) of high-yield, high quality grain production. Our emphasis will be laid on the advantageous industries like husbandry, marine products, vegetables, fruits and flowers. We will implement the strategy of scientific and technological innovation and increase its proportion in agriculture. More efforts will be made to improve construction of high-yield agricultural parks, farm produce export bases and health hazard-free farm produce bases. The gross grain output will reach up to over 2.3 million tons. We will press ahead the construction of Ten Agricultural Parks and Ten Specialized Wholesale Markets for Farm Produce. The nine leading enterprises of farm produce at the national level will be given top priority in their development and the “Nine-Links Pattern” be promoted. Full support will be extended to farmers in operating all types of specialized cooperative economic organizations to raise the level of industrialized operation and the farmers’ sense of systemization. Qingdao International Exhibition Center of Farm Produce will be completed and the “Green Card Action Plan” will be implemented. We will strengthen the construction of a system of quality inspection and epidemic prevention as well as the authentication management of high-grade, hazard-free farm produce. Work will be improved in the prevention and control of serious animal and plant epidemics.
　　We will step up rural infrastructure construction to increase urbanization in the rural areas. Support in terms of capital investment will be increased in harnessing and controlling Dagu River, economizing water and equipping the irrigated areas. The first phase of comprehensive harnessing construction of the Moshui River will be carried out. The investing and financing channels of agricultural projects will be expanded. No effort will be spared in administering well the construction of national exemplary townships, satellite towns and moderately prosperous villages. We will do a good organizational work in the pilot projects of development and reform of national-level townships and the comprehensive economic development of small townships.
　　We will conscientiously put into effect the Communist Party’s basic policies for rural areas by further reducing burdens on farmers and increasing their income. The agricultural tax and the “Two Industries” will be eliminated. Instead, the direct subsidiary will be given to the grain-growing farmers, together with the allowances for farmers to purchase farming tools and machines. 950 million yuan from the municipal budget will be earmarked to “agriculture, rural areas and farmers”. We will thoroughly follow out the Law on Rural Land Contracting to stabilize and improve the land contracting. The compensation of land expropriation will be rationalized. The supervision mechanism of land compensation will be carried out. Farmers whose land is expropriated will be provided with proper resettlement. The public information releasing system for agriculture-related pricing and charge will be put into effect to protect and ensure the legitimate rights and interests of farmers. We will increase the financial transfer and payment to the townships and villages in financial difficulty. The sum of money transferred and disbursed shall only be used as designated. The wages of public servants in townships and villages must be paid in full and on time. We will also ensure that the organizations at the grass roots level in the rural areas are in smooth operation.
3. Accelerating the pace of reform and opening up and strengthening the vigor and momentum of economic development
　　Deepening the reform of state-owned enterprises and state assets management system. We will give priority to transformation of large-sized state-owned enterprises into stock companies, and basically complete the work that state-owned capital shall quit small- and medium-sized enterprises and that enterprises with difficulties in operation quit the market. Transitional institutional reform in assets management corporations will be basically completed; supervisory management for large-sized enterprises will be improved. Qualified state-owned assets in municipal engineering, public utility and transport industries will be gradually brought under supervision. We will discuss the possibility of setting up the management and budgetary system for state-owned assets, and standardize both the auditing evaluation of enterprises and equity exchanges. The assessment and motivating mechanism on the performance of enterprises’ operators will be improved, and the investors will fulfill their duties in accordance with law so as to make sure that the value of the state-owned assets will remain stable and further added.
　　Deepening the reform of financial and taxation system as well as the investment system. We will improve the public financial system and give our support to the reform of taxation and administrative charges in rural areas. Efforts will be made to broaden channels for revenue, and to set up fiscal mechanism to continuously boost revenue. The proportion of fiscal revenue to the city’s gross domestic product and that of taxes to fiscal revenue will be increased. More financial support will be given to solve the problems concerning “agriculture, rural areas and farmers”, as well as social security. Examination and approval procedures for investment projects by enterprises will be reformed; government investment activities will be standardized and management on special financial funds and auditing supervision for investment projects will be strengthened. Furthermore, policies for enterprises to be listed in the stock market will be carried out unceasingly.
　　We will boost the private economy. Policies and measures will be formulated to speed up the development of private businesses. Meanwhile, support and assistance will be given to technology-oriented and export-oriented private enterprises as well as private enterprises in modern services and agricultural products processing so that they are able to enjoy development in term of strength and size. Support will be given to non-governmental SMEs in their efforts to specialize and upgrade their products and services. Our administration will be further coordinated to promote the development of industrial clusters. Efforts will be made to quicken the pace for private enterprises to strive for famous brand names and encourage private businesses to participate in the restructuring and financing by being listed or going public for the state-owned enterprises as well as in the construction of infrastructure and public utilities. We will set up and improve the guarantee and service system for financing, and innovate in the financial products and services to meet the special need of non-governmental enterprises. Coordinating mechanism will be established to promote the development of private sectors and to solve the difficulties and problems facing private enterprises. The value added and tax revenue of the private sectors will increase by 18 percent and 16 percent respectively over the previous year.
　　We will transform the mode of foreign trade growth. High-value-added products, such as electronic information products and software, will take a larger proportion in export. We will change our export from quantity-oriented products to quality-oriented and environment-friendly products and promote the conversion and upgrading of processing trade. We will push forward the development of export processing areas and actively carry out the reform of export tax rebate. We will improve the policies and coordinating mechanism to support export. The shift from procurement to agency in foreign trade enterprises will be furthered; work concerning import of much-needed or scarce items such as energy, raw materials, advanced technology and key equipment will be administered well. Corresponding measures will be taken to deal with the situation when the export quota on textile is rescinded; our capability of guarding against trade risk and dealing with disputes in international trade will be increased. Furthermore, guidance will be provided to enterprises to strengthen the authentication of Occupational Health and Safety Assessment Series (ISO18000 ).
　　We will further increase the efficiency of utilizing foreign capitals. We will strengthen the introduction of investment of large- sized enterprises, industrial clusters and chains for their supplementary projects, integrate investment promotion teams, improve the professional team to bring businesses to Qingdao and do a good job in introducing investment from outside. Based on the orientation of the industrial development in Qingdao, we will reinforce investments from ROK, Japan, Europe, America, Hong Kong and Taiwan. Foreign investment invitation as well as economic and trade activities will be carried out energetically. The opening up of the service industry and municipal utilities will be furthered, and vigorous efforts will be made to develop the Latin American market. We will upgrade economic conditions in the Development Zone, accelerate the development of modern manufacturing industry and progressively transform the Development Zone into a comprehensive multi-functional industrial area. Rights and limits given to the Development Zone will be exercised effectively. We will devote more efforts to attract more domestic investment and encourage national key enterprises as well as companies ranked among China’s top 500 enterprises to make investment, set up their research and development bases, regional headquarters, or marketing centers here in Qingdao. We will carry on the strategy of  "going global”, intensify the investigation into policies and markets, optimize commercial environment, and popularize distinctive services such as "Green Passage”, etc. Working and living conditions of those outside investors and working staff will be improved. Exchanges and cooperation with overseas sister cities and organizations will be strengthened. We will work hard to assist Caoxian County of Shandong Province and to provide support to the poverty-stricken areas.

4. Accelerating the urban construction and preparation work for the Olympics Sailing Regatta, and enhancing Qingdao’s modernization drive
　　We will set a high standard for the urban planning. Focusing on accelerating construction of a modern and international metropolitan infrastructure and an economic system based on sustainable development, we will make the coastal highway unimpeded and work actively on the planning of roads extension on both sides of the coastal highway. Projects of “Controlling and Planning of Five Strategically Divided Areas” and “Detailed Planning for the Ecological Demarcation Districts” will be completed. Renovated and improved planning of the downtown, overall planning of the port, and revision and compilation of the development conceptual plan for “Sailing City” will be sped up. While quickening the development of western part of the city, we will actively launch planning studies for the eastern and northern parts of Qingdao.
　　We will strengthen the infrastructure construction. Through guidance in planning and support in terms of policy, infrastructure construction in the northern part of the city will be promoted. Residential environment will be improved and the gap between the north and the south of the city will be gradually narrowed down. Comprehensive renovation of overworked roads including Hangzhou Road, Dasha Road, Kaifeng Road, Siliu Beilu Road, Siliu Zhonglu Road, etc., will be launched. We will work well on the preliminary phase of the linking part of the trans-oceanic tunnel by the viaduct at An'shan Road section. The whole length of Shandong Road will be reconstructed, and comprehensive renovation of Liaoyang Road will be completed. Construction of key projects, such as coastal highway, the second phase of the Qingdao-Yinchuan Highway, the southern line of the Jinan-Qingdao Highway, Phase II of Liuting International Airport Extension, Qingdao Power Plant Expansion, reform of the old Xianjiazhai Water Supply Works and the Expansion of Maidao Sewage Treatment Plant will be accelerated. Electrification of the Qingdao section of Jiaodong-Jinan Railway will be completed and the telephone number of local network will be updated to 8 digits.
　　We will rationalize the urban administration system. Main administrative authority in charge of municipal roads, landscaping, environmental sanitation, property management, etc. will be transferred to the administration at the district level and the local district-based administration will be formulated. Comprehensive law enforcement of the municipal administration will be strengthened and a guarantee mechanism for law enforcement in city management will be established. We will improve the mechanism to set a market-based price system for public utilities. The revision of "Administrative Regulations on Urban House Demolition and Relocation" will be carried out in accordance with the prescribed procedures. More efforts will be made to demolish unauthorized buildings, and a long-term mechanism for preventing illegal construction will be established. We will concentrate on rectifying outdoor advertising facilities, various kiosks and other business operations, which occupy public roads. We will energetically participate in the project of standardizing the public roads, which can be used as examples, in the city management. 
　　We will actively make a good preparatory work for the Olympics Sailing Regatta in an all-round way. By following the principle of organizing the Olympics in an economical way, we will complete the major construction work for the necessary athletic items for the Olympic Sailing Competition and quicken our steps in laying relevant municipal pipelines and building supplementary and supporting utilities. We will carry out the project of “Science and Technology-based Olympics” and launch the research program concerning Science and Technology-based Olympic Games. We will also implement the action plan of "Digital-based Olympics", and complete the construction of undersea optical cable for the Olympics. Prevention and treatment of red tide, hydrology and meteorological monitoring and other work related to state-level monitoring will be carried on and initial achievements have been accomplished. We will spread knowledge about Olympics and sailing in an all-round way, enhance the publicity and promotion of the Olympic City of Qingdao and energetically build up the brand of “Sailing City”.

5. Building up a national civilized city and promoting an all-round social progress
　　Striving to become the first among the national civilized cities. We will conduct a thorough inspection and rectification of those weak links in this regard according to “Assessment System of National Civilized City”. Great efforts will be made to promote “Program for the Development of Citizens Morality” and the behavioral norms of  “Eight Do not’s” (1.Do not t spit everywhere; 2. Do not litter odds and ends; 3. Do not litter rubbish; 4. Do not put on posters and draw graffiti arbitrarily; 5. Do not practice vandalism; 6. Do not fight and quarrel with others; 7. Do not make trouble under the influence of alcohol; 8. Do not smoke in public places) while protection and education on ideology and morality for minors will be enhanced. Masses-based spiritual civilization construction including that of civilized community, civilized enterprises, civilized villages and townships, etc. will be deepened. We will launch the campaign of “creating brand names in service industry and establishing a good image of Qingdao” in Qingdao’s service sector. We will profoundly carry out the campaign of “Three Comities” (vehicles make way for pedestrians; pedestrians make way for vehicles; and vehicles make way for each other)”, and set up a number of exemplary neighborhoods and communities. We will push forward the establishment of a learning-oriented city and establish a widely spreading, opening, and multi-channel system of life-long education. Construction of educational positions in communities at all levels will be strengthened and various reading activities will be conducted enthusiastically in the community.
　　Promoting an all-round progress in social undertakings. We will launch the campaign of “Developing a Cultural Year” and implement the project of “Cultural Home”. We will accelerate the construction of cultural facilities such as Qingdao Grand Theater and the Modern Art Center and put efforts on setting up cultural centers and “cultural courtyards” in our communities, villages and townships so as to enrich people’s cultural life. We will increase the protection of the well-known historical and cultural city of Qingdao as well as the national and ethnic minority’s folk cultures. “China International Violin Contest” and “The Olympics Culture Festival” will be held successfully. The reform of cultural system will be furthered and the cultural market administration will be strengthened while the cultural industry will be developed energetically. We will launch the citywide campaign to improve people’s fitness, strengthen the capability of athletic sports and host high-level sports competitions including the First Sports Meeting of Qingdao and the International Marathon of China, Japan and ROK. Construction of the Municipal Gymnasium and Sports School will be accelerated. We will press ahead a long-term mechanism for public health and a sound three-level network of disease control, sanitary supervision, and work on medical treatment will be completed and improved. Prevention and control of infectious diseases will be carried out thoroughly and sturdily. The Eastern Branch of Qingdao Municipal Hospital will be open to the public after its completion. We will attach great importance to the work of the Red Cross and accelerate the construction of Clean City at the county level as well as adjust and optimize resources of medical organizations under the municipal administration. We will further enhance the development of philosophy and social sciences and popularize knowledge of science while advocating civilized and healthy life style. We will carry out mutual support and constructive activities between the military and civilians and push forward construction of militia and reserves as well as the people’s air defense. We will also consolidate the unity of the military and the government as well as the unity of the military and the civilians. Vigorous efforts will be made to support national defense and help the troops stationed here in Qingdao solve their problems in their work and livelihood. We will conscientiously carry out the Development Program for Women and Children and continue to push forward the undertakings for women and children. We will further administer well the work concerning ethnic groups, religion, overseas Chinese, Taiwan affairs, senior citizens, archives, historical records and the undertakings for the disabled.
 6. Persevering in the strategies of invigorating Qingdao through science and education and enhancing the city’s strength through human resource development to stay on the road of sustainable development
　　The independent innovative capability in science and technology will be enhanced and the city’s innovation system will be improved. The joint construction of the Incubating Base for the National Key Laboratories will be sped up, and the construction work of the National Base for Deep-sea Submersibles will be launched, meanwhile the construction of National Research Center for Marine Science and Technology will be stepped up. We will pay great attention to the pilot projects of technological innovation in the state-run enterprises and generous support will be given to enterprises such as Haier and Hisense to establish the world first-class research centers and the exemplary projects of information-oriented manufacturing industry will be further implemented. Shinan District, the New and High Technology Development Zone, Haier and Hisense software bases will be further developed. Industrialization of new materials, new products of marine science and technology and the bioengineering will be promoted. The production value in new and high technology-oriented industry will be increased by over 20 percent. The process of industrialization and commercialization of scientific inventions will be sped up. Technological innovation by small- and medium-sized enterprises will be greatly supported and promoted.
　　We will enhance the coordinative development of education in both urban and rural areas. The management system for compulsory education in rural areas will be based on the county level in its implementation while construction of standardized primary and middle schools in these rural areas will be completed. In implementing compulsory education the salary of school teachers, the public funds and the cost for reconstruction of the dangerous school buildings in the surrounding five satellite cities and three districts will be covered, on a step-by-step basis, by the governmental fiscal budget of these cities and districts. The relief funds for senior high school students from the needy families will be raised and the aid system will be improved. The number of teaching staff will be augmented and the competence-oriented education will be fully promoted. High-quality resources of senior high schools will be increased and various kinds of vocational education will be developed. The allocation of vocational education resources will be optimized. In the rural primary and middle schools the modern distant learning project will be carried out. We will extend sufficient support to the development of universities and colleges located in Qingdao and also to the introduction of more key universities from outside. The strategy of strengthening the city through human resource development will be deepened and the development of high-level professionals will be enhanced. The project of recruiting top-notch professionals in science and technology will be implemented. We will also establish a sound mechanism for top-notch professional training. The policy for professionals to settle down here in Qingdao will be improved. 
 　　Work concerning population, resources and environment will be well administered. The comprehensive reform of population and family planning will be deepened. The quality of newborns will be increased and the birth rate will be controlled within 11.6 percent. The awarding and supporting system for those families in rural areas, which well abide by the family planning policy, will be carried out in an all-round way. “The Decision on Deepening the Reform and Tightening the Control of Land” issued by the State Council will be properly implemented and we will work hard on the institutional reform of land administration and on the revision and compilation of the general planning for land use. We will enhance the protection of cropland, especially that of the primary farmland. We will also work hard to economize land used for construction, to bring all potentialities of the land into full play and establish the assessment system of intensive use of land. The construction of an ecological city of Qingdao will be fully promoted. We will energetically develop circular economy and do a good job in making a development plan for circular economy in the industrial parks at provincial level and above. We will strengthen the comprehensive utilization of resources, increase utilization ratio of clean and renewable energy and stay on the road to a conservation-minded society. The energy saving-oriented renovation on the existing buildings will be carried out step by step. We will restore and protect the mountain massif along the traffic trunk lines such as Qingdao-Yinchuan Highway, Haier Road and Hong Kong Road. We will enhance the protection of marine environment and wetland around the Jiaozhou Bay, tighten the pollution control and prevention of the key waters of the southern coast, the key drainage areas and other areas. The preliminary phase of the Guanlu and Muguandao Reservoirs construction will be completed, the source of potable water will be protected and the comprehensive utilization of recycled water and desalination of seawater will be promoted. We will attach great importance to the control of air pollution, coal-fired pollution and motor-vehicle pollution and make 90 percent of the vehicles reach up to the emission standard.
 
7. Adhering to the principle of “People First” and giving great concern to all the work vital to the interests of the people
　　We will expand employment. Policies of employment promotion will be implemented in an all-round way to gradually establish a benign interactive system for employment, which takes urban and rural areas as a whole. A reservation system for commonweal-oriented jobs will be established to increase the total number of commonweal-oriented jobs up to 12,000. We will guarantee a bottom line of over 10,000 people in difficulty to be employed. We will push forward the projects of establishing start-up businesses and provide support to those who are self-employed and those who have started up their own businesses. Vocational training will be encouraged so that 30,000 unemployed people, 30,000 redundant rural labors and 30,000 technical workers from enterprises will be trained in 2005. We will build up six public bases for training and practical activities in electromachanical, welding, chemical engineering and environmental protection. The standard of the lowest wages will be raised and we will take great efforts to establish proper system of wage increase, which is well in accordance with economic growth. We will enhance wage’s function as a guideline and supervise the enterprises so that the employees are paid on time and in full. The supervision over the implementation of Labor Law will be reinforced to ensure the legitimate rights and interests of laborers. Policies for facilitating resettlement of the relocated immigrants from the Yangtze Reservoir areas will also be carried out.

　　We will improve social security system. The proportion of self-paying endowment insurance premium in state-owned and collective-owned enterprises will be reduced to 21 percent. Over 70,000 more people will be included in the system of enterprises’ endowment insurance. Retirees’ pension from enterprises should be ensured against default. In order to reduce burdens on individuals, the standard of basic health insurance will be raised and the coverage of basic health insurance by municipal financing for employees in cities and townships will be expanded. Social endowment insurance system in rural areas will be implemented in an all-round way. We will ensure social security for farmers who lost their land. We will improve the system of social relief and assistance and take measures to solidify and consummate a new system of cooperative medical care and medical relief and assistance. “Sunshine Relief Project” for ensuring the bottom-line standard of livelihood in rural areas will be brought into effect. An assistance system against natural disasters will be established. The existing life subsisting system for “households enjoying the five guarantees” is to be reformed and the construction of welfare facilities such as central homes for old folks and welfare centers for the aged will be accelerated. 
　　We will improve people’s living conditions and environment in urban and rural areas. With the overall implementation of “Measures for the Management of Low-Rent Housing for Low-income Families in Urban and Rural Areas”, we will strive to increase the supply of low-rent housing. Construction of economical and function-oriented houses will be accelerated and the marketing means of this kind of houses/apartments will be regulated. We will rigorously enforce the system of application, examination and approval and public release for the economical and function-oriented houses/apartments. The “Comfort Housing Project” for the needy handicapped in rural areas will take effect. By the end of 2005, 1,000 houses/apartments will be renovated for the disabled who enjoy the lowest social security allowance. We will install individual water meters for 60,000 homes and equip a floor space of 1,600,000 square meters with central heating system, of which 500,000 square meters are for buildings located in the old downtown area. The first phase of the project of “Turning the Flat Roof into the Sloping Roof” is to be completed. We will attach great importance to the harnessing of Hai’anlu River, Zhengzhoulu River and Dacun River. With regard to the “narrow streets and alleyways”, the work of rigidifying the road surface, setting up street lamps and laying sewers will be carried out step by step. The protection and renovation of the areas around Zhongshan Road and the Railway Station will be further improved. Arbores and trees with colorful leaves will be planted along both sides of the traffic trunk lines, around the mountains, hills, and parks in the city. We plan to develop another 950,000 square meters of public green area in the city. Meanwhile an area of 194,000 mu (319,604 acres) is to be forested in the suburbs. The installation of digital TV system in the city proper will be essentially completed. In addition, the project of “making tap water supply available to 1,000 villages” will be accomplished. Since the supervision and management of the market price will be tightened, we will take the opportune moment and adopt proper intensity to govern and regulate the prices of public service products. The storage and reserve of key commodities vital to the national economy and people’s livelihood will be further enhanced to maintain the market price basically stable.
8. Further promoting the project of “Peaceful and Safe Qingdao” and effectively maintaining social stability.  
　　We will make all-out efforts to build our city, in implementing the project of “Peaceful and Safe Qingdao”, into one of the advanced cities in comprehensive policing and administration in China. We will strive to make Qingdao one of the most secure, stable and harmonious cities in China. We will improve the system of frequent severely cracking down on crimes and maintain a posture of high pressure towards criminals. We will strengthen the mechanism of early warning for social stability and establishment of a mechanism for investigation and solution, response and accountability for social disputes and conflicts. We will adhere to the system of joint work conference in handling people’s letters of complaint and visits and prevent and properly deal with various kinds of group-based emergencies and improve the mechanism for the settlement of people’s internal contradictions. We will strengthen the establishment of organizations for comprehensive policing and administration at the grass roots level to ensure that all measures taken can effectively be put into practice. We will accelerate the establishment of emergency response system for public security and improve our specially prepared counter plan against emergencies such as natural disasters, accidents and calamities as well as public health and social security so as to increase our ability to ensure public security and deal with emergencies. We will intensify the administration of traffic, fire fighting and workplace safety and resolve to sternly halt fatal accidents. We will carry out the establishment of public honesty and set up and consummate social credit system. We will make all-out efforts to rectify and standardize the order of market economy and severely crack down on crimes such as production of counterfeit and shoddy goods, smuggling, tax evasion and fraud, infringement of intellectual property rights and pyramid schemes. We will strengthen the management of food and medicine safety and continue to enhance the regulation and rectification of food and drug market so as to ensure food and drug safety for the people.
9. Strengthening government self-improvement and continually increasing the administrative ability 　　　　　　　　　　　　　　　　　　　　　　　　

　　We will adhere to scientific, democratic and law-based policy-making. We will improve a scientific and democratic policy-making system, which integrates public participation, expert evaluation and government decision-making. We will set up a system for regular communication with the consultative committee of experts and organize experts to evaluate in advance important issues concerning social and economic development. We will continue the activities such as “Three Visits” (to visit the needy residents to provide assistance, to visit the talented people to promote the development and to visit the organizations at the grass-roots level to maintain the social stability) and “Citizens’ Month”. By making good use of the public hall for citizens’ discussion and public hearings, we will widen the channel of collecting information of social affairs and public opinions. With regard to the policies and decisions concerning people’s vital interests, we will widely solicit opinions by keeping the public informed and holding public hearings. We will formulate and improve a system of tracing and feedback and a system of accountability in policy- making to unify rights and responsibilities in our policy-making. 
　　We will strengthen the democracy and legal system. We will accept the oversight of the People’s Congress and its Standing Committees，carry out their resolutions and decisions in earnest，and report our work to them in time and listen to their inquiries. We will fully respect and support the roles played by the People’s Political Consultative Conference, various democratic parties, federations of industry and commerce and non-governmental groups in political consulting, democratic oversight and participation and discussion of governmental and political affairs. We will further strengthen the implementation of all proposals, suggestions, and resolutions submitted by the deputies of People’s Congress and members of the Political Consultative Conference. We will improve the system of handling the submissions and increase the quality and efficiency. We will consciously accept the oversight of the general public and mass media. We will increase the education on the law, press forward the work of governing the city in accordance with the law, and attach great importance to the improvement of judicial administration system and create a sound social environment in which people abide by the law and protect their legitimate rights in accordance with the law.
　　We will perform all our administrative duties in accordance with the law. The Implementation Compendium on Strengthening Law-based Administration in an all-round way issued by the State Council will be carried out in earnest. Meanwhile a five-year plan for overall implementation of law-based administration and an annual arrangement to this effect will be worked out to define the target and measures in developing a law-based government. We will further implement The Administrative Permission Law of the People's Republic of China to regulate the performance and behavior of administrative permission in accordance with the law and intensify the oversight of administrative nonfeasance or malfeasance. We will institute an accountability system for administrative law enforcement. We will set up an open, fair and just evaluation and examination mechanism and a mechanism for investigating and prosecuting law enforcement improprieties according to the principle of separating administrative penalty from economic benefits but linking it with accountability. We will work hard on the first national economic census.
　　We will effectively increase the executive capability of the government. Great efforts will be made to encourage the government to take a realistic and pragmatic approach and carry out the “Five Projects” to increase the efficiency of governmental organizations and “Governmental Institutions with Four Characteristics”(characteristics in learning, innovation, competition and providing services to the public.) We will deepen the campaign of “Two Learning’s and Three Establishments” (namely, every individual worker should learn from Xu Zhengchao, the model worker, and every enterprise should learn from Haier Group, the exemplary conglomerate in China; every individual should establish the first-class performance, every enterprise should establish the first-class brand name and every citizen should establish the first-class social environment.) and “Three Fast Speed and One Enhancement” (namely, to handle formalities and documentation fast, to examine and approve applications fast and implement policies fast; to enhance the working efficiency). We will strengthen the development of the leadership in government bodies at all levels including primary level organizations so as to increase the executive capability of the government, as well as the creativity, unity and administrative effectiveness of all the government offices. Capability of public officials at all levels in serving the people is to be enhanced. We will further optimize the government working process and simplify procedures of handling formalities and documentation. We will make greater efforts to establish an Internet-based platform for examination and approval procedures and increase the level of e-administrative service to the public. We will intensify the oversight of efficiency and place great emphasis on the implementation of all our work.
　　We will improve the governmental work style and further the education on maintaining the advanced features of CPC members in governmental institutions to encourage and guide the public officials at all levels to set up correct ideals, belief and lofty morals so as to increase the consciousness of serving the people and their ability to resist corruption and treachery. We shall firmly bear in mind that public officials should always observe the principle of putting people first and working for the interests of the Masses while maintaining a close tie with them. We will step into the grass roots level to strengthen investigation and research, to experience and observe the real situation of the people and understand the public opinions and to solve their practical problems. We will make efforts to improve the “Three Systems” in objectives of policy-making, executive responsibility as well as evaluation and oversight. We will further implement the responsibility system of “One post, Two Responsibilities” and seriously investigate into various corruption cases and sternly rectify malpractices in all trades and institutions. We will improve the oversight system for the invitation and entrance of the public bidding in construction projects, the state-owned land remising, property right transaction and government procurement and strive to prevent corruption from its root cause.

　　Fellow Deputies,
　　To work out “The Eleventh Five-year Plan” for the national economy and social development is an important work for us to do this year. By adhering to the principle of being scientific, democratic and legal minded, we will extensively solicit suggestions and advice from people from all walks of life and go all out to gather the wisdom of the people and materialize public opinions in an effort to work out a sound plan, which is highly scientific, practical and directive.
Fellow Deputies,
　　Qingdao is in the critical period of economic and social development. Let us unite more closely around the CPC Central Committee with Comrade Hu Jintao as General Secretary. Under the strong leadership of the CPC Qingdao Committee, we will integrate the wisdom and strength of our citizens, emancipate our minds, innovate and work hard to speed up Qingdao’s economic and social development to fulfill all the objectives and tasks set for this year. Let us strive to achieve the glorious goal of constructing in an all-round way a moderately prosperous society ahead of schedule!