The Third Session of the Tenth Hunan Provincial People's Conference

The Third Session of the Eleventh Hunan Provincial Committee of the CPPCC

Deepening Rreform and Oopening up Wider to the Outside world
We will further promote the reform of state-owned enterprises. Efforts will be put into thoroughly implementing the strategy of "Big Company & Big Group", advancing the distribution readjustment of the provincial state-owned capital, and pushing forward the concentration of state-owned capital toward industries and fields with competitive advantages, in a bid to promote the core competitiveness of state-owned enterprises. We will actively improve the supervision system and mechanism of state-owned capital, carry out the duties of contributors according to the laws, better the major events concerned macro-management, and extend the trial scope for the construction of the board of directors. Active exploration will be made to establish the incentive mechanism on equities and options, to perfect the administration and control system of state-owned enterprises, and to carry out the pilot projects for overall budgeting and risk management. We will also strengthen the supervision on performance assessment and debt risk, perfect the duties of chief accountants and functions of external supervisors, and improve the level of management. In addition, we will endeavor to establish and perfect the system of general counsel as well as the operating and budget system and the disposal and supervision system of state-owned capital.

We will deepen various reforms on taxation, investment and financing systems. In the aspect of taxation, we will strive to improve the finance systems below the provincial level, to carry forward the financial reform of "Province Governing County", to expand the autonomy of cities and counties and reinforce their duties in capital distribution, utilization and supervision, and to add vitality to county development. Reforms will be deepened on department budget, the state treasury management and government procurement. Efforts will be invested into improving the public finance supervision system, enhancing the tax collection and administration as well as non-tax income management. We will perfect the expenditure system of public finance, and push forward the reforms on the funding mechanism of politics and laws and the performance-based pay of public institutions. Active measures will also be adopted to promote the reforms on the price of resource products and the charges of environmental protection. Besides, we will push forward the pilot projects of large consumers' direct-purchasing of power. In the aspect of investment, we will standardize the government's decision-making procedure on investment, vigorously promote the investment evaluation ad performance assessment, and perfect the system of project review and filing.

Furthermore, we will carry out the publicity system of investment projects which have been brought into government budgets. With regard to finance, we will speed up the "Four Banks & One Credit Union" reform and restructuring of regional commercial banks, deepen the reform of rural credit cooperative unions, push forward the pilot projects of town and village banks along with petty loan companies. Active efforts will be made to build the systematic financing platform for the Changsha-Zhuzhou-Xiangtan city cluster in a bid to set up its over-the-counter market. We will also cultivate back-up resources for going public, and support enterprises' financing by listing on the stock market of the Growth Enterprise Board and the Main Board. Efforts will be strengthened on the construction of futures delivery warehouses of paddy, coleseed and cotton, and on the active seeking for establishing those warehouses of steel, iron, lead and zinc. We will encourage the development of all kinds of private equity investment fund, build the regional equity exchange market, boost the reform and innovation of insurance, and actively launch the insurance trial with scientific and technological innovation.

Efforts will be strengthened to build the credit system, optimize the circumstance for financial development. With respect to agriculture, we will continue deepening the comprehensive rural reform, stabilize the basic management system in rural areas, and push forward the orderly transfer of rural land. We will also innovate financial services in rural areas and develop loan guarantee agencies there. In addition, we will further engage in the launching of policy-supported trials of insurance on paddy, cotton and forestry, basically complete the task of right certification on the reform of collective forest rights, and extend the trial of reforming the state-owned forest farm.

For fields which private capital is not prohibited by state laws and regulations, private capital shall be allowed to make investment. We will give active encouragement to non-public economy on its participation in the reform and restructuring of state-owned enterprises, give allowance to private capital's involvement into such fields as financial service, public utilities, infrastructure and social programs, ensure non-public enterprises' equal participation in tendering and bidding, government procurement, and so on, and effectively protect the legal rights of private capital. Resolution shall be exerted to clean up and prohibit all unreasonable charges and policies, in a bid to precipitate private enterprises' access to various factors of production and resources for their equal development. We will forcefully carry out the SMEs' Promotion Statute of the PRC and Hunan's Measures for the Implementation of the SMEs' Promotion Statute of the PRC (One Statute & One Measure for short), and further improve the policies of finance and taxation, credit, technical innovation and so on by perfecting the credit guarantee system, expanding the SMEs' fund size, increasing credit support, actively exploring the establishment of the system for SMEs' direct bond financing, in a bid to help solve their financing difficulties, to support their speed-up of technical reconstruction, and to promote their transformation and upgrade. Further steps shall be taken to improve the service system of SMEs, to perfect its public service platforms, and major support shall be provide for small and micro-enterprises for accelerating development. We will continuously implement the talents engineering, and support the accelerating development of a batch of powerful, large, promising and SMEs with high-growth potential. In addition, we will forcefully encourage people's entrepreneurship, further carry out the construction work of the 30 pilot business-starting bases, and support the entrepreneurship of those people who hope to start business of their own and have the ability to do so.

No efforts should be spared to elevate the level of open economy. We should insist on exploiting international markets simultaneously with expanding domestic markets by integrating "bringing in" and "going global" strategies, so as to comprehensively utilize the two markets and two resources. Endeavors should be made to promote steady increase of foreign trade. We should make full advantage of the state policies on adjusting export rebates, export credit insurance and trade financing, etc., focus on optimizing the import and export structure while stabilizing traditional markets and exploring new markets, encourage innovative ways of export, expand the export of products and services of high-tech, with high added value and strong international competitive capacity, support the export of auto parts, electronic information, biomedicine, fireworks and crackers, ceramics and other products. The import of advanced technology and equipments is to be encouraged. With Changsha Jinxia Customs Bonded Logistics Park and Chenzhou Export Processing Zone as platforms, efforts should be made to actively develop bonded logistics. International e-commerce platform, overseas marketing service system, and early warning system for trade security will be established to upgrade the quality and level of investment attraction. Integrating investment promotion with industrial structure upgrading, enhancement of independent innovation capacity and coordinated regional development, focus should be placed more on the introduction of advanced productive factors. Foreign investment should be guided properly to further expand foreign capital utilization in advanced manufacturing, hi-tech industries, energy-saving and environmentally friendly industries, modern service industries and modern agriculture. Active work should be done to undertake industrial transfer, and prominence should be given to the construction of the key spots and counties undertaking industrial transfer, experimental counties and demonstration zones. With the three cities of southern Hunan (Hengyang, Chenzhou, Yongzhou) as priorities, we should improve comprehensive planning and supporting facilities to build up processing trade bases oriented to manufacturing and to promote the cluster and intensive development of processing trade to the high-end links, give full play to the platform role of agricultural products inspection for the Hong Kong and Macao and the role as international logistics parks. Vigorous efforts should be made to promote the opening-up of service industry to actively undertake and develop service outsourcing, introduce large global companies and well-known brands of service industries, so as to quicken the paces of constructing the Chang-Zhu-Tan City Cluster into a service outsourcing base. Adhering to the guideline of depending on large enterprises and uniting strong ones, we should strengthen matching cooperation with world top 500 enterprises, large enterprises of Hong Kong, Macao and Taiwan, the Central enterprises and large private enterprises, and focus on the introduction of a number of high-end manufacturing, strategic R&D projects. The "Headquarters Economy" should be vigorously developed to attract more multinational companies to set up regional, functional headquarters in Hunan Province. Hunan entrepreneurs and the chambers of commerce in and out of Hunan and intermediary organizations should be given full play in investment promotion. Efforts should be made to optimize the investment environment. We shall strive to resolve the bottleneck caused by land, financing, and energy resources to improve the conditions for the efficient customs of logistics, transportation and ports, to perfect the coordination working mechanism for custom, inspection and quarantine, E-ports, E-commerce, and investment promotion, so as to facilitate trade and investment.

Meanwhile, persistent endeavor should be made to deepen regional economic cooperation, energetically cultivate new growth points for regional cooperation and actively participate in the economic and technical cooperation in the Pan-Pearl River Delta and the central and western regions. The Shanghai World Expo 2010 will be grasped as an opportunity to strengthen cooperation and increase exchanges within the Yangtze River Delta region. A series of significant activities such as Shanghai-Hunan Business Week, Europe-Hunan Business Week, Taiwan and Hunan Business Week should be well held to promote international exchanges in trade, science & technology and culture. The "going global" strategy shall be vigorously implemented to support the key enterprises to develop international businesses, make investment in the exploitation of the energy and resources abroad, set up operation bases, expand overseas project contracting and labor service export and promote international exchanges and cooperation. Active work should be done to expand China aid projects. Moreover, the development of Hunan's multinational companies and international brand-building should be accelerated, and the legal services and risk prevention for foreign investment shall be enforced.