2. Maintaining sound and rapid development of the capital's economy.
Doing this year's economic work well is extremely important for successfully hosting the Olympics, maintaining sound and rapid development of the capital's economy, improving people's well-being and promoting social harmony and stability. We must diligently implement the policy decisions, arrangements and measures of the central authorities for macroeconomic regulation, emphasize sound development, make stable progress, base efforts on realizing comprehensive, balanced and sustainable development, accelerate the transformation of the pattern of economic development, make development more balanced and constantly enhance the overall strength of the capital's economy.

Appropriately regulating the scope and structure of fixed assets. According to preliminary figures, this year's total investment in fixed assets by all sectors of society will be 430 billion yuan, an increase of about 11% over last year. The municipal government is planning to invest 26.45 billion yuan in fixed assets, an increase on a par with last year's. In accordance with the need to make increases in some areas and decreases in others and with the guiding role of government investment and planning, and on the basis of the need for investment in the Olympics and other major projects, we will continue to increase investment in key infrastructure and industries as well as key areas affecting people's lives. We will guide investment toward ecological conservation and development zones and the southern and western sectors of the city, and support the development of a new countryside and new cities, particularly Tongzhou, Shunyi and Yizhuang. We will strictly enforce standards for energy consumption and environmental protection and strengthen and standardize supervision of new construction projects. We will strictly control the amount of land given over to development projects, strengthen oversight and inspection, and strictly investigate and prosecute any instances of developing land in violation of the law or regulations. We will conscientiously do our overall coordination and service work and effectively carry out key projects in accordance with the principle of completing some, signing contracts for some and backlogging some.

Striving to increase consumer demand. According to preliminary figures, consumer retail spending will reach 430 billion yuan this year, an increase of about 13%. We will continue to raise the income levels of urban and rural residents, focusing on solving the problems of raising the incomes and providing social security to farmers, enterprise employees, retired persons and low-income urban residents. We will implement policies and measures to stabilize consumer expectations and raise consumers' consumption capacity. We will completely fulfill the three-year plan for preparing the business and service sectors for the Olympics, and promote improvements to key comprehensive commercial streets and to neighborhoods with special characteristics. We need to support the bankcard project and expand the conveniences of using bankcards. We will improve conditions for leisure travel in outlying areas to further increase rural consumption. We need to actively guide housing and automobile consumption within reasonable limits, and expand consumption in travel, culture, sports and popular recreation activities. We also need to ensure that the price of essential consumer goods remains stable. We need to strengthen our contacts and cooperation with important supply regions, integrate the production, transport and sale of goods, and maintain reserves of important commodities to ensure that there is always an adequate supply of basic necessities. We need to improve the mechanisms for monitoring prices, forecasting problems and handling emergencies, and improve contingency plans to prevent abnormal price fluctuations. We need to strictly control adjustments in the government's price setting and price guidance, and adopt temporary intervention measures to control the prices of some essential consumer goods and services only when necessary. We need to strengthen market supervision, rectify and standardize the economic order of the market, and strictly punish illegal pricing and activities that disrupt the market. We need to take such measures as providing emergency assistance and temporary subsidies to ensure that the living standard of low-income residents does not fall, and ensure the supply of food at stable prices for school cafeterias. We need to provide guidance based on the nature of the situation, and prevent the price of goods and services from rising precipitously during the Olympics. We need to strengthen monitoring and regulation of economic activities; improve the system for responding to emergencies concerning the supply of coal, power, oil products, natural gas and transport; and coordinate the supply and demand for energy resources and raw and processed materials to ensure the stability of the capital's economic activities.

Thoroughly carrying out industrial restructuring. We need to improve the industry guidance policy and support policy and strongly support the development of producer services industries, always keeping the emphasis on modern services industries. We need to improve our financial support policy and service system, accelerate the development of financial back-office service parks and actively induce all kinds of financial institutions to locate and expand in Beijing. We need to carry out major projects such as the integrated airport bonded area and promote the development of a modern logistics industry and commercial services industry. We need to set up an investment and financing service platform, foster the development of core enterprises and strategic investors, do a good job developing concentration areas for the cultural and creative industries and strengthen groups of cultural and creative enterprises. We need to make the most of the opportunities presented by the Olympics to quickly and energetically develop the sports industry, the convention and exhibition industry, and the travel industry. We need to get new- and high-tech industries to stimulate the development of manufacturing industries; do a good job bringing in projects from abroad and carrying out R&D independently; promote the industrial application of major key technologies such as the third-generation mobile communications, digital TV and next generation Internet; and accelerate work on major projects such as producing Corning glass substrate and Cummins engines, increasing the capital and expanding the production of Semiconductor Manufacturing International Corporation, and building the second Hyundai automotive plant. We need to support the development of biomedicine, clean technologies and the high-end building and construction materials industry. We need to formulate guidelines for promoting the development of high-end industrial functional zones, accelerate the construction of infrastructure and accompanying service facilities, and raise the concentration, competitiveness and disseminative capacity of industries. We need to do a good job of planning the development of the former site of the Shougang Group after its relocation. We will improve the mechanisms of administrative services, communication and coordination, and resources integration to provide convenient and fast services for the development of the central authorities' enterprises in Beijing. We must diligently carry out all the tasks for the second economic census.

Constantly enhancing our capacity for independent innovation. We need to conscientiously review the experience we gained in the 20 years of development of the Zhongguancun Science Park; make innovations in systems, policies, management and organization; actively carry out reforms in investment, financing, credit, associations, association-like organizations and government purchasing; encourage more venture capital; deepen trials of stock transfers for non-listed companies; carry forward work on intellectual property rights pledge loans and credit loans; and get the park to take on a bigger leadership role. We need to improve and implement all policies for promoting independent innovation, focus particularly on supporting the development of enterprises and projects that have their own brands, more quickly promote new types of cooperation among enterprises, universities and research institutes in which enterprises play the leading role and the market plays a guiding role, create better conditions to support the development of the central authorities' scientific institutes and academies and universities in Beijing, support the central authorities' enterprises in the city in building R&D facilities, and try hard to get major national technological-innovation projects to locate in the city. We need to better integrate innovation resources, improve the operating mechanisms of the capital's scientific and technological platform, promote industrial and technological alliances, and make greater efforts to digest, absorb, and improve on imported technology. We need to strengthen protection of intellectual property rights, establish a national technology trading center, support the development of industrial parks for businesses established by students returning from overseas, promote the integration of university science parks and enterprise incubators with risk investment, explore ways to set up a seed money fund for financing the conversion of scientific and technological advances into actual production, and improve the system of services for the industrial application of these advances. We need to do a good job of training and attracting innovative people, keep the green channel open for trained personnel, establish a center for students studying abroad, and work hard to solve the problems high-caliber personnel in Beijing have in finding housing, jobs for their spouses and schools for their children. We need to implement the medium- and long-term development program for science and technology, continue the reform of the management system for science and technology, organize the implementation of a number of major scientific and technological projects, strive to make breakthroughs in key areas and technologies in order to solve difficult problems hindering the capital's development and raise the capital's capacity for independent innovation.

Continuing to make progress in the effort to conserve energy and reduce emissions and develop a circular economy. We need to set up a work responsibility system for the municipal, district and county governments for conserving energy, lowering consumption and reducing emissions and implement the state plan and methods for compiling statistics of, monitoring and assessing efforts to conserve energy and reduce emissions. We need to continue to reduce the number of enterprises that are highly polluting or consume excessive quantities of energy or water, support the Shougang Group's cutback of its annual production, and encourage the movement of Beijing Coking & Chemical Works, Beijing No. 2 Chemical Plant and Beijing Organic Chemical Plant out of the city, and the shutdown of the thermal power generating units of Beijing No. 2 and No. 3 Thermal Power Plants. We need to strengthen management of resource consumption, pollution prevention and control of the total production process in major industries such as the petrochemicals, building materials and power industries and improve the guidelines and indices and the monitoring platform for energy conservation and water use. We must strictly enforce the design standards for energy conservation in new buildings, strengthen control of energy conservation in large public buildings and promote retrofitting projects for existing buildings to improve energy conservation. We need to continue carrying out the project to develop central heating facilities for new outlying cities. We need to move ahead with key projects for clean and renewable energy resources. We must improve the water use plan, quota management and system of surcharges for water use in excess of quotas, and develop water-saving irrigation for 6,700 hectares of farmland. We need to accelerate the development of the pipeline network for wastewater and recycled water and expand and upgrade existing wastewater treatment facilities. We need to step up efforts to develop the system for recovery and use, energetically collect and dispose of rubbish by type, and promote industrialization of the process of regenerating resources. We need to successfully operate the circular economy demonstration project and intensify efforts to improve the ecology in industrial parks. Governments at all levels need to take the lead in becoming aware of the need to conserve resources and to conserve energy and reduce emissions. They also need to strengthen publicity and guidance to establish the good habit throughout society of conserving energy and reducing emissions.

Intensifying development of a new socialist countryside. We need to maintain and continue all polices introduced to strengthen and aid agriculture, and make innovation in the models for developing a new countryside. This year the municipal government plans to allocate 15.09 billion yuan for solving the problems facing agriculture, rural areas and farmers. We need to accelerate development modern agriculture zones with good economy of scale suitable to the capital, support a number of agricultural industrialization projects, develop a group of parks with agricultural themes and energetically develop corridor economies and riparian economies to form industrial communities. We need to encourage farmers to start their own business, develop the collective economy, and actively support the development of small towns. We must improve the system of rural support, protection and services, work out detailed regulations for the implementation of the Law on Rural Specialized Cooperatives, step up development of a system for disseminating basic agricultural technology, expand the types and range of coverage of policy-mandated agricultural insurance, strengthen regulation of the quality and safety of farm produce and become better able to prevent and control plant and animal diseases. We need to complete the formulation of plans for 300 villages, begin work on "five-part" infrastructure projects in 200 villages and encourage the districts and counties to accelerate their development in light of their specific conditions. We need to complete projects to supply safe water to 700,000 people, upgrade the system of radio and television coverage for all villages, strengthen rural fire protection facilities and upgrade rural electricity grids. We must continue to implement the project to bring "light, heat and recycling" to the countryside. We need to strengthen efforts to develop rural public service centers, expand rural IT application and establish a long-term mechanism for protecting and managing public service facilities. We need to energetically press ahead with development of ecological conservation zones, work out industrial development plans, increase the proportion of municipal government investment in fixed assets, help attract a number of major projects compatible with the capital's functions, support the development of new industries in areas that are adjusting their resource industry, and do a good job improving all facets of small river valleys, restoring the ecology of exhausted mines and launching a new round of relocating people from the mountains. We need to explore how to create a long-term mutual support and assistance mechanism in districts and counties. We need to make good preparations for the Seventh China Flower Exposition.

Deepening economic restructuring. We need to improve the financial management systems at the municipal level and at the county and district level, optimize the size and proportion of transfer payments, increase the proportion and size of general transfer payments, make the distribution of basic public services more uniform, and clarify the functions of the districts and counties. We need to completely reform management of non-tax revenue. We need to launch trial reforms of non-governmental investment and financing, and improve the way of supervising government investment. We need to deepen the reform of state-owned enterprises, support class 1 enterprises in attracting strategic investors, encourage non-public capital to participate in the stock system for class 2 and 3 enterprises, increase the withdrawal of state capital from underperforming enterprises, and encourage enterprises to become listed on the stock market and listed companies to reorganize. We must continue working to find the best way to put the operation of state capital in the budget, and carry out the comprehensive trial to improve the corporate governance of solely state-funded companies. We need deepen reform of collective enterprises and encourage, guide and support the healthy development of the non-state sector of the economy. We need to set aside 500 million yuan to support the development of small and medium-sized enterprises, improve the financing system for them and study the establishment of a reinsuring agency for them. We need to make greater efforts to improve the credit system for the general public. We need to actively work on reform of the heating supply system. We need to consolidate and improve the compensation mechanism for ecological forests and work out an ecological compensation mechanism for water source protection zones and mineral resource protection zones. We need to develop a platform for circulating information about agricultural land and successfully carry out the trial for transferring land-use rights intended for collective development. We need to energetically promote comprehensive rural reform, carry out reform of the overall management system for the boundary between urban and rural areas in selected places on a trial basis and support the trials to liberalize the market-entry policy for rural financial institutions. We need to improve the support policies for rural residents to change their residence status from rural to urban, deepen reform of the property system of the rural collective economy and actively reform the system of collective forest rights.

Focusing on improving the quality and level of opening to the outside world. We will create a system for appraising zones and industries that use foreign investment and a system of standards for evaluating how well foreign investment is utilized. We must continue to promote investment in key areas, strongly guide foreign investment toward producer services industries, cultural and creative industries and high-end manufacturing industries, and encourage large domestic and overseas enterprises to set up bodies such as regional headquarters in Beijing. We need to formulate policies and measures to promote development of trade in services, successfully set up bases for outsourcing of services, and actively pursue high-end business in international outsourcing of services. We must encourage import and export trade activities, continue support for the export of products with China's own brand and intellectual property rights, expand foreign trade in cultural products and services, and increase the import of advanced technologies and equipment as well as resource products. We need to support enterprises with the right conditions that want to do business overseas, and promote the creation of international brands and international enterprises. We must diligently strive to do good foreign affairs service work for major events such as the Seventh Summit of the Asia-Europe Meeting. We need to actively cooperate in economic division of labor in the Beijing-Tianjin-Hebei area and the area surrounding the Bohai Sea to promote balanced regional development.