Delivered at the Third Session of the Twelfth Hunan Provincial People’s Congress on Feb. 10, 2014

Du Jiahao, Governor of the Hunan Provincial People’s Government

Fellow Deputies,
On behalf of the Hunan Provincial People's Government, I now present to you my report on the work of the government for your deliberation and for comments and suggestions from the members of the Hunan Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) and other representatives present.

I. Review of Work in 2013

In the past year, under the firm leadership of the Central Committee and the State Council, and in accordance with the deployment of the CPC Hunan Provincial Committee, we thoroughly implemented a series of policies and measures to maintain a stable growth, and extensively practice the “mass line” campaign (from the Chinese qunzhong luxian). We won the battle against severe drought rare in history. We vigorously promoted the construction of the “Two-oriented” Society (resource-saving and environment-friendly society) as well as new-type industrialization, new urbanization, agricultural modernization, and informationization, and also accelerated balanced improvement of economic aggregate, average per capita share and economic development quality, and tightly held four bottom lines such as maintaining an economic growth rate of over 10%, averting systematic and regional financial risks, ensuring the minimum living allowance of low-income groups, and avoiding serious security accidents and mass incidents. The targets set forth at the 1st Session of the 12th Hunan Provincial People’s Congress have been basically completed.

(1) Economy maintained a steady development.

Faced with grim domestic and international economic environment, we worked out series of policies and proposals to boost county economy, support key industries, promote major projects and generate financial resources to support economic growth. Owing to these measures, we overcame the pressure of economic downstream, and saw a gradual economic recovery in the latter half of 2013. The GRP reached 2.45 trillion yuan, increasing by 10.1%. The province’s investment in fixed assets exceeded 1.8 trillion yuan; the retail sales of consumer goods totaled 890 billion yuan, and the total import and export volume reached 25.16 billion USD. Effective measures were taken towards serious drought and other natural disasters, and grain production was better than expected with the gross output hitting 29.25 billion kilograms. The public financial revenue surpassed 330 billion yuan, among which local financial revenue was 202.36 billion yuan. The per capita income of urban and rural residents amounted to 23,414 and 8,372 yuan respectively. Lens Technology (Changsha) Co., Ltd, Environmental & Sanitation Industrial Park of Zoomlion Heavy Industry Science & Technology Development Co., Ltd. in Lugu, and Beijing Automobile Works (BAW) Zhuzhou Branch went into operation, while Shanghai Volkswagen Changsha Manufacture Plant, Foxcon (Hengyang) Large Colour Television and other major projects started construction. A total of 1,125 kilometers of new expressway were built, increasing the total mileage of expressway to 5,000 kilometers, making it the 4th in the country. 2,000 kilometers of national and provincial trunk lines were newly built or reconstructed, and more than 8,000 kilometers of rural roads were built and remolded. The double track of Hunan-Guangxi High-speed Railway and Hengyang-Chaling-Ji’an Railway were opened to traffic. More than 2,000 dangerous reservoirs were reinforced, and the installed power capacity realized an increase of 2.2 million kilowatts.

(2) Transformation of economic development mode and structural adjustment were pushed forward thoroughly.

The structure of primary, secondary and tertiary industries was adjusted to 12.7∶47∶40.3, and the ratio of the tertiary industry increased by 1.3 percentage points. Industrial strength was enhanced. The total industrial added value exceeded 1 trillion yuan. The main business income of the industries above designated size topped 3 trillion yuan. The share of the added value of high-tech industry in that of the industries above designated size rose by 1.3 percentage points. The competitive industries such as electronic information, new material, and automobile industry saw accelerated development. Agricultural modernization progressed steadily, and processing of agricultural products witnessed sales revenue of 574 billion yuan. Reinforced efforts were made in scientific and technological innovation. The average yield of super hybrid rice hit a new record of 988.100 kg per mu (0.067 hectare). 12 major scientific and technological special projects including 3D printing technique and clean smelting of antimony were approved. The investment structure was optimized. The private investment amounted to over 1 trillion yuan, with its proportion in the total investment rising to 62%. The proportion of industrial investment stood at 34.7%.

(3) Reform and opening up has been further deepened.

The tasks of provincial state-owned enterprise reform were basically completed, and the round-off work for the municipal state-owned enterprise was intensified. The fiscal and taxation reform program including treasury centralized payment, replacement of the business tax with value-added tax, and pilot reform of resource taxes progressed smoothly. Continuous efforts deepened overall rural reform and the registration of rural land ownership certification were carried out steadily. Reform of forestry, water conservation, medicine and health care, household registration and the property rights system of rural credit cooperatives was advanced vigorously. The added-value of non-public sector of economy in Hunan Province accounted for 57.9% of GRP. The import and export volume of processing trade grew by 20.2%, and actual utilized foreign capital increased by 19.6%. The first phase of Hengyang Comprehensive Bonded Area passed the acceptance check of 10 related ministries; Xiangtan Comprehensive Bonded Area was approved.

(4) The "Two-oriented" Society construction was accelerated.

Experience was acquired through the work of comprehensive treatment of the Xiangjiang River Basin, price setting for resource products, and financial reform, which were spoken highly of and popularized by relevant authorities. Hunan took the lead in charging tiered prices for household water, electricity and gas, and pioneered government procurement regime of “Two-oriented” products. Endeavors were made to promote the pilot project for paying for the use and trading of pollution emission rights in eight cities along the Xiangjiang River as well as thermal power enterprises and steel enterprises across the province. Comprehensive improvement of rural environment was pushed ahead in full swing, on which stress was laid, ensuring drinking water safety for 3.7 million rural residents. Protection and treatment of the Xiangjiang River was listed as the top key project of the Hunan Provincial People’s Government. 288 heavy metal pollution treatment projects were launched, and 127 enterprises that caused heavy mental pollution enterprises were closed down. Construction of Changsha-Zhuzhou-Xiangtan (CZT) intercity railway and Changsha water conservancy project on the Xiangjiang River was accelerated. The annual tasks on energy-conserving and emission-reduction were accomplished. Ecological construction was sped up, witnessed by the retained forest coverage rate at more than 57% and strengthened protection of wetland.

(5) People’s living standards were improved steadily.

The financial expenditure to improve people’s well-being surged to over 300 billion yuan, accounting for 65% of the total. 30 items of 21 programs to addressing people’s real concerns were completely fulfilled. Annual tasks in terms of government-subsidized housing construction, renovation of dilapidated houses in run-down areas and rural areas were over-fulfilled. Over 800,000 urban jobs were created and 740,000 agricultural workers found urban employment. Measures have been taken to realize dynamic “elimination of zero employment” of urban “zero employment families” and of the college students from peasant families. The urban and rural medical aid and pension insurance were further expanded and enhanced. The basic pension for enterprise retirees saw an increase for the 9th consecutive year. We carried out studies and accordingly formulated guiding criteria for subsistence allowances in both urban and rural areas to ensure that everyone entitled to such allowances received them and that social security provided back-up assistance. We included employees suffering from old work-related injuries in the workers’ compensation system, and achieved remarkable progress in protection of disabled people. The standards of assistance for childless and infirm rural residents in the form of food, clothing, medical care, housing and burial expenses were steadily enhanced. 2,200 major projects were carried out to promote poverty relief in Wuling Mountain and Luoxiao Mountain areas.

(6) Progress in social undertakings was stepped up.

The strategy of strengthening the province through education was propelled thoroughly. A steady growth was maintained on government expenditure in education and the government support for education was enhanced. Development of cultural undertakings and industrial reforms sped up. The second batch of 42 non-political newspapers and periodical publishing houses was transformed into enterprises. Broadcasting and TV, press and publishing, entertainment and animation were steadily forged ahead. Public health and family planning was improved through strong measures for prevention and treatment of critical diseases, and supervision on public sanitary as well as food and drug security. A low birthrate was steadily maintained. We launched an extensive physical exercise campaign for the general public. Achievements were yielded in the construction of safe Hunan. The province’s production safety saw an improvement. Number of large accidents and death toll from accidents substantially dropped. Complaint letters and calls mechanism and stability maintenance were constantly strengthened. Standardization construction of urban and rural communities was upgraded.

(7) Cultural and ethical progress as well as construction of democracy and legal system were strengthened.

Formation of core socialist value system, publicity and education on socialism with Chinese characteristics and China’s dream were extensively carried out, so were various activities to promote participation in developing cultural civilization. The governments consciously accepted oversight by the Hunan Provincial People’s Congress and its standing committee as well as democratic supervision by the CPPCC Hunan Provincial Committee, fully pondered over the opinions and suggestions from the democratic parties, federations of industry and commerce, mass organizations, independent public figures without party affiliation, academicians and experts, and people from all walks of life. 31 public hearings on major policy decisions on people's immediate interests were held. 5 local draft laws and regulations were submitted to the standing committee of the Hunan Provincial People’s Congress, and 2 provincial regulations were formulated. Continuous efforts were made to push forward construction of law-ruled Hunan and implementation of the Sixth Five Year Plan to educate public about the law. Over 5 million items were handled through online government services and E-supervision system. Lawful autonomous governing of neighborhood committees and villagers committees in both urban and rural areas was expedited.

(8) New achievements were scored in strengthening national defense and reserve forces.

Measures were taken to standardize setups of the committees of People’s Armed Forces and defense mobilization organizations. The armed forces resolutely accomplished a number of urgent, difficult, and hazardous tasks, such as relieving drought and flood, handling emergencies and maintaining stability. We improved preferential treatment and incentive mechanism, and resolved the practical difficulties of entitled groups. Efforts were doubled to promote nationwide education on national defense, civil-military support and joint construction of ideological and ethical progress, as well as the activity of “taking the lead in building hometown to promote economic growth, taking the lead in safeguarding security to promote social harmony”. The 9th Plenary Session of the State Commission for National Defense Mobilization of Guangzhou Military Region was convened in Hunan, which accelerated the strengthening of logistical support to the armed forces and police, as well as the development of civilian and military integration industries. Hunan-based People's Liberation Army, armed police and the paramilitary militia made significant contributions to local economic and social development.

(9) Substantial effects were achieved in transformation of government functions.

The “mass line” campaign was pushed forward in implementing the eight-point code of the Central Committee to cut bureaucracy and maintain close ties with the people and the nine-point regulations issued by the CPC Hunan Provincial Committee, sticking to the guideline of “Transforming working style, solving intractable problems, focusing on key points, and improving effectiveness”. We stood firmly against undesirable work style such as formalism, bureaucratism, hedonism and extravagance, so as to steadily push forward transformation of government functions. Reform of provincial-level supervisory mechanism of food and drug was completed; implementation opinions and supporting policies to push forward reform of institutions were issued. We actively responded to deleting, streamlining administrative approval items and delegating them to lower levels by the State Council. 175 items of examination and approval were deleted and adjusted. 45 provincial-level economic and social management authorities were released to Changsha municipality. 214 assessment and commendation activities were cancelled. Subscription system of registered capital for industry and commerce was triggered. 10 prohibitive provisions for optimizing economic environment entered into force. Administrative expense and “three official consumptions” (referring to government departments’ expenditure on official receptions, vehicles and overseas trips) saw zero growth.

Fellow Deputies,Experience drawn from our work in the past year can be mainly concluded as follows. We should be problem oriented, take forceful steps and deliver tangible results. Sticking to a blueprint with close follow-up, we should strengthen instruction by types, and continuously raise Hunan’s economic aggregate, average per capita share, and the quality of economic development simultaneously. Governments must effectively solve the practical problems most concerned by and directly related to the people. Endeavors should be exerted to build a service-oriented government, which aims to increase public trust in the government, and improve its competence.

Fellow Deputies, the province’s continuous development and harmonious solidarity should be attributed to the correct leadership of the CPC Central Committee, the State Council, and the CPC Hunan Provincial Committee, the concerted and strenuous efforts of Hunan people, as well as the support from all sectors of society. On behalf of the Hunan Provincial People’s Government, I would like to extend sincere gratitude to all people of the province, to the People’s Liberation Army forces and the armed police officers stationed in the province, to Hunan-based units affiliated with the Central Government, and to people from all walks of life at home and abroad that support Hunan’s reform, development, and modernization.

Fellow Deputies, we must pay close attention to the difficulties and problems facing us, and resolve to tackle them. Firstly, the motive force for development is not strong enough, for instance, shortage of key project reserve, the weakening momentum of sustained consumption growth, and the low dependence on foreign trade. Secondly, the development pattern remains extensive, with high energy-consuming industries and increasing resource and environment constraints. Thirdly, the development efficiency is not yet satisfying enough. The ratio of tax in the fiscal revenue is low. Besides, the overall income for urban and rural residents is low, with great regional differences. Fourthly, the development environment still needs to be optimized. The administrative approval items and procedures are complicated, proving low administrative efficiency. Moreover, immoral behaviors such as purposely making difficulties in order to get personal benefit, irregular charging, unjustified financial levies, and arbitrary fines still embarrass the masses. Fifthly, the ecological treatment still needs improving. Tasks of treating industrial and mineral pollution, agricultural non-point source pollution, water pollution, air pollution, soil pollution, etc. are still challenging. Nevertheless, we must strive to solve these problems with unremitting efforts.

II.Situation and Main Work in 2014

The year 2014 is the first year for implementing the guiding principles of the Third Plenary Session of the Eighteenth Communist Party of China Central Committee and comprehensively deepening reform, and a crucial year for achieving the Twelfth Five-Year Plan (2011-2015) in an all-round way.

Currently, the international economic situation gets more complicated, with unstable and uncertain factors and slow recovery. China’s economy is in shifting phase, with great downward pressure. During the in-depth transformation and adjustment period for the global economy, both challenges and opportunities coexist. We will earnestly carry out the essence of General Secretary Xi Jinping’s important speeches, seize the great opportunity of comprehensive and in-depth reform, to implement the central government’s major reform measures in detail, to play the decisive role of market in resource allocation, and give full play to government while focusing on the economic system reform. We will earnestly implement Secretary Xi’s requirement of making good use of Hunan’s advantage of being the transitional zone from the eastern coastal areas to the central and western areas, and the junction zone of the Yangtze River Open Economic Belt and the Coastal Open Economic Belt when he was conducting survey in Hunan, and closely integrate reform and development with opening up, so as to accelerate building a new development pattern featured by rational structure, optimized manner, regional coordination, and urban-rural integration. We will focus on speeding up the development of a moderately prosperous society in all aspects by drafting a layout on the
basis of regional differences, making assessments according to different categories, and advancing one step at a time, thereby composing a new chapter of Hunan’s reform and development.

The general requirements for government work this year are as follows: We will comprehensively implement the spirit of such conferences as the Eighteenth National Congress of the Communist Party of China, the second and third plenary meetings of the 18th CPC Central Committee, and the Central Economic Working Conference. We will stick to the general working style of making progress while maintaining stability, follow the uniform deployment of the provincial Party Committee, and incorporate reform and innovation into every field and link in the economic and social development. We will put forth effort in stimulating market vitality, promoting development pattern transformation and structure adjustment, and intensifying basic public service. Based on classified guidance, we will expedite the building of a well-off society in an all-round way, and develop "Two-oriented" Society (resource-saving and environment-friendly society) and new-type industrialization, new-type urbanization, agricultural modernization, and informationization. Consequently, these moves help raise Hunan’s total economic output and the per capita output, enhance the quality of economic operation, and achieve efficient, high-quality, and sustainable development.
The major targets of economic and social development this year are set as follows:

The gross regional production is targeted at growing by 10%, the investment in fixed assets increasing by over 23%, value added industries above the designated size ascending by about 12%, the total retail sales of consumer goods growing by 13% above, the total import and export volume increasing by 12%, and the total fiscal revenue going up by around 12%. In addition, the growth rate of urban-rural residents’ income should keep pace with the economic growth rate. The energy consumption per ten thousand yuan GDP is set to decrease by 2%.

We should make great endeavors in the following seven aspects:

(1) We will carry out objectives and tasks of reform and opening up in an all-round way.

We will promote economic entities of diverse ownership to seek common development, and unwaveringly consolidate and develop the public sector of the economy. We will precisely define functions of different state-owned enterprises, issue the guidance on deepening reform in all state-owned enterprises of the whole province, and complete reform of the state-owned enterprises at the city (prefecture) and county level. We will vigorously promote separation of government functions from enterprise management, to reduce institutions that fulfill social functions in state-owned enterprises, and conduct uniform supervision on commercial state-owned assets based on the classification of their functions. We will deepen reform on enterprise management system, and establish incentive, constraint, and distribution mechanism that attaches importance to the long-term effect. At the same time, we will unswervingly encourage, support and guide the development of the non-public sector, and ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete on a level playing field and are protected by the law as equals. To actively accelerate development of mixed ownership economy, we will make specific measures for the non-public sector of the economy to enter the field of franchising, and encourage non-public enterprises to participate in state-owned enterprise reform. Moreover, we will facilitate industrial and commercial registration system by means of reducing qualification authentication items. The policy of “business license ahead of administrative license” will be implemented for trial in Changsha and Chenzhou, after which the experience is expected to be spread in the whole province.

We will speed up transformation of government functions and deepen investment system reform. We will further implement various policies on expanding private investment, make supportive measures based on different industries, and carry out an investment admittance negative list. We will deepen the government institution reform, conduct systematic reform of government institutions, public institutions, and industries as a whole. We expect to complete the reform of public organizations that undertake administrative function and conduct production and operation activities by the end of 2015. The structuring of government institutions, allocation of functions, and working procedures are set to be optimized. Besides, we will strictly control the size of government bodies according to the principle of not increasing the total personnel so that it is financially affordable during the tenure of this government. We will further delegate the administrative approval rights to the lower levels, make an administrative approval right list, and accomplish clearing of the provincial administrative approval items within this year. The companies established by government departments should be entirely separated from the departments. We will promote government’s purchasing service, strengthen performance evaluation of governmental fund utilization, and make timely dynamic adjustment.

We will deepen reform of various fields such as finance and taxation, banking, and rural areas. Endeavors will be made in the fiscal and taxation system reform. We will improve the system to guarantee the basic financial resources for county governments and operation expenditure for village organizations. We will clear, integrate, and standardize special fund and not set up an additional special fund in principle, and reduce provincial projects by at least one third. Also, the publicizing scope of the budget will be expanded. We will accelerate the pilot work on replacement of turnover tax with the value-added tax and reform of resource tax. We will strengthen management on government debt and improve debt early warning and “red line” regulation, thereby to control debt risk of the local government. The financial system reform will also be deepened. We will promote equity financing through various channels, expand financing in bond market, and increase the proportion of direct financing by enterprises. We will regulate development of small loan companies, encourage private capital to participate in establishing rural banks, and advance development of private banks. We will also guide foreign fund banks and various domestic financial institutions to Hunan for development. We will promote the national trial reform of rural financial service system, boost reform of rural credit cooperatives, propel development of the social credit system and improvement of the credit guarantee system for small and medium-sized enterprises, and strengthen financial risk prevention and control. We will deepen various reforms in rural areas. Based on planning first, we will strengthen and innovate in social management of new countryside. We will propel the establishment of the new agricultural management system by seeking common development of household operation, collective operation, cooperative operation, and enterprise operation. We will explore effective ways of the contracted rural land-use rights, rural homestead land use rights, property rights of farmers’ self-built houses, trade on forest rights and mortgage loan. We will deepen reform of production factor market, advance tiered prices for household water, electricity, and gas, and continue reform of water conservancy and state-owned forest farms.

We will accelerate developing the new system for open economy. We will encourage traditional competitive products and high-tech products with independent intellectual property rights to expand export, and increase import of outfits, resources and energy as well as introduction of key technologies. The construction of the export innovation bases for invigorating trade through science and technology will be accelerated. We will support powerful enterprises like Zoomlion, Sany, and CSR Zhuzhou to “go global” for merger, restructuring, and setting up overseas industrial parks, R&D centers and marketing network system. We will proactively participate in regional economic cooperation, initiatively connect with the Yangtze River Delta and Pearl River Delta, and lead undertaking of industrial transfer and development of processing trade. We will carry out professional, industry chain-oriented, and point-to-point investment invitations, improve follow-up service and scheduling mechanism for major foreign funded projects and key enterprises. We will deepen cooperation with central enterprises, attract more enterprises to build groups, regional headquarters, R&D centers, accounting centers, data centers, and purchasing centers in Hunan. We will invite Hunan businessmen to their hometown for business and give them support. The construction of Hengyang and Xiangtan’s comprehensive bonded zones will be sped up, and the entrance of projects to the zones and service will be improved. We will establish special import platforms for crude oil, agricultural products, and automobile. Moreover, we will promote big customs clearance in ports and regional integration of customs clearance in order to facilitate trade.

(2) We will promote economic development in a stable and healthy way.

We will vigorously develop advanced manufacturing industry. We will focus on optimizing industrial structure, utilizing excess capacity and improving industrial competitiveness; formulate transformation and upgrade plans for traditional industries; put forward policies and measures to support key industries such as vehicles and accessories, engineering machinery, advanced equipment manufacturing and remanufacturing, aerospace engineering, electronic information, new materials, biological medicine, light industry and food science, energy saving and environmental protection, petrochemical engineering, steel and nonferrous metals; and cultivate new industries like 3D printing, industrial robots, “Two-oriented” housing, and the application of Beidou (Compass) Navigation Satellite System. We will attach greater attention to key projects including production of 300,000 passenger cars by SVW Changsha Branch, construction of Tidfore Heavy Industry Co., Ltd., the third phase construction of Lens Technology, upgradation of high-end railway transportation equipment industry, and Valin automobile sheet. We will also promote upgradation of industrial parks, increase the number of industrial parks, and set up a strategic emerging industrial cluster with long industrial chains, powerful impetus, and high agglomeration degree by making full use of key industrial parks. We will intensify technological support for advanced manufacturing industry, and strengthen software development and research on products and information technology in the industrial control system. We will accelerate construction of digital Hunan, promote intensive integration of informatization and industrialization, deepen application of information technology in fields of manufacturing, service industry, operations management, energy conservation, emission reduction and safety production. We will fully support the application of dual-use technology and development of civilian-military integration industry. We will strengthen support for leading enterprises with an annual output value hitting 100 billion yuan, as well as small and medium ones, and encourage merger and restructuring of appropriate key enterprises.

We will energetically develop modern agriculture. We will implement national strategic deployment on food security, guarantee steady supply of bulk farm-products such as grain, oil and hog, and ensure that the total grain production stays at about 30 billion kilograms. We will speed up execution of key projects including high-standard farmlands, quality grain industry, and soil fertility, promote land treatment around the Dongting Lake and Loudi-Shaoyang Basin, and improve the quality of basic farmland without reducing the total amount or changing its use. We will strengthen construction of farmland irrigation and conservancy, propel the comprehensive treatment of Hengyang-Shaoyang drought corridor, and launch the five-year action plan on construction of small-scale irrigation and water-conservancy facilities. We will extend major industrial chains in fields of grain, livestock and poultry, fruits, vegetables, oil, tea, bamboo and timber, cotton and linen, tobacco, flowers, seedlings, aquatic products and edible fungi, and continuously cultivate leading grain and oil enterprises with an annual output value reaching 100 billion yuan. We will actively promote processing of agricultural products and by-products, and set up a batch of industrial parks in this field. We will spare no efforts to develop leisure and ecological agriculture, support production of green and organic agricultural products, concentrate on administration of production source of agricultural products and supervision in their whole process of production and sales, and build competitive brands for agricultural products. We will initiate the modern agriculture project of “Hundred Enterprises, Thousand Cooperatives and Ten Thousand Peasant Households”, improve mechanism of combining enterprises with farmers in enterprise bases, and promote agricultural mechanization. We will launch innovative projects focusing on agricultural technology utilizing land, industrial parks and workers; strengthen integration and promotion of technologies including effective water-saving agriculture and high-yield crops cultivation. We will encourage development of cooperative economy and guide various organizations to provide social services for agricultural production.

We will strive to develop modern service industry. We will innovate technology, management and business mode in service industry, and foster new service categories, operation modes and service varieties. We will develop high-tech service industry including research and development design, information technology, biotechnology, science and technology service, inspection and detection. We will accelerate the growth of service industries like modern finance, business exhibition, energy saving, environmental protection and accounting consultation, and further improve new service industries including culture creativity, digital publication, new media and mobile Internet. We will support enterprises in undertaking service outsourcing such as software and information service, culture and architecture. We will perfect infrastructure construction of modern logistics, develop the third-party logistics, introduce large-scale logistic enterprises at home and abroad, so as to promote the linkage, matching and integration of modern transportation, express mail service, logistic distribution, electronic business system and modern industrial system. We will expedite implementation of policies on circulation industry and construction of large-scale regional trade centers, and give full play to the project of renovating farmers' markets. We will make full use of Hunan’s beautiful sceneries, various folk customs, and rich resources in red tourism; strengthen cooperation with neighboring provinces and districts to develop tourism routes, focus on various classic tourist routes and scenic spot clusters, deepen comprehensive reform in tourism, and intensify supporting services and marketing management of tourism sector. We will set up a long-term mechanism to promote consumption. We will consolidate personal consumption expenditures, develop other service industries such as pension, health, culture and training, promote the pilot project of guaranteeing credible transaction in electronic commerce, and expand the influence of Hunan brands. We will implement the policy of same charge in water and electricity usage for both service and industrial sectors. We will crack down on crimes including production and sale of fake and inferior goods and price fraud in accordance with the law.

We will vigorously promote scientific and technological innovation. We will carry out development strategy via innovation, promote key technologies and products including super hybrid rice, IGBT (Insulated Gate Bipolar Translator) chips and modules, ultra-thin flat glass, shield equipment, high-efficiency solar cells and its production equipment, as well as researches on common key technologies for strategic emerging industries, taking advantages of research and development platforms such as key engineering laboratories, engineering (technology) research centers and collaborative innovation centers. We will strive to build high-tech zones in Changsha, Zhuzhou and Xiangtan into national demonstration zones for independent innovation, set up a scientific and technological injection mechanism, introduce and develop sci-tech venture investment and equity investment, and intensify the support in financing assurance and pledge of patents, trademarks and stock rights for medium and small sci-tech innovative enterprises. We will launch scientific and technological insurance; encourage enterprises to join hands with universities and research institutes to build cooperation platforms and strategic alliances for industrial technological innovation. We will exert greater efforts to perfect the stock ownership incentive mechanism and technology transfer mechanism, protect intellectual property and innovative achievements, and facilitate innovation rights.

(3) We will strengthen infrastructure construction.

We will accelerate major projects construction. Fixed assets investment is expected to reach over 2,000 billion yuan in 2014. In terms of transportation, we will strive to open 400-kilometer expressway, build and repair 1,500-kilometer national and provincial trunk lines; carry out the project of upgrading the Dongting Lake channel, promote water transport projects including Tugutang shipping and power center and overall traffic hub in Changsha along the Xiangjiang River; stimulate railway projects including the Hunan section of Shanghai-Kunming Passenger Dedicated Line (PDL), Huaihua-Shaoyang-Hengyang railway and Guizhou-Zhangjiajie-Changde railway; promote eastward expansion of Changsha Huanghua International Airport and reconstruction and expansion of feeder airports, and develop feeder aviation across the province and other international routes. In regard to energy, the capacity of newly added power generators with new energy is expected to reach 1.2 million kilowatts. We will promote construction of the third section of West-East natural gas transmission pipeline project (Hunan section), accelerate the new-round of upgradation of rural power grid, main power transmission network and county power grid. In urban construction, we will focus on such projects for Hunan’s cities and prefectures as water and gas supply, sewage and waste treatment, underground pipe network, public transportation, afforestation, and beautification and purification of urban areas. In terms of information, we will attach great emphasis to the construction of the fourth-generation mobile communication system, optical fiber broadband network, local sensor network and cloud computing network. In water conservancy, we will concentrate on strengthening comprehensive treatments of the Dongting Lake and river valleys of major “Four Rivers” (the Xiangjiang River, the Zijiang River, the Yuanjiang River and the Lishui River), and water source projects including the Dongjiang Lake. As for ecological environment, we will continuously promote construction of returning farmland to forests and building ecological forests, carry out the second batch of circular economic pilots, and stimulate transformation of parks circulation. As for people’s livelihood, we will vigorously push forward construction of housing projects in urban and rural areas and pollution treatment projects. We will carry forward sound development of real estate industry and increase the supply of ordinary commercial houses.

We will intensify our efforts to guarantee essential factors. We will strive to include more projects into the national investment plan, actively issue pilot local bonds, carry out the loan business through pledging intellectual property, accounts receivable, movable property, stock rights, orders and warehouse receipts, and focus on solving small and medium enterprises’ problems in applying for loans. We will accelerate construction of coal reserve bases and transmission channels for coal and electricity, incessantly propel construction of product oil pipelines, gas pipelines and oil and gas reserves, and speed up the “Hunan Gasification” project. We will continuously promote the increase-decrease linkage of urban and rural building lands, exploitation of unused lands in mild slope of low mountains and hills, and the redevelopment of inefficiently used land. We will focus on protecting and reasonably utilizing resources, and improve the ability to prospect, explore, smelt and process mineral resources. We will earnestly cultivate high-level and high-skilled practical talents via key scientific researches and industrial projects.

(4) We will further “Two-oriented” Society construction.

We will speed up comprehensive supportive reform and construction of the Changsha-Zhuzhou-Xiangtan “Two-oriented” Society Pilot Area. We will continue to advance the Ten Reforms and Ten Clean and Low-carbon Technologies in the test area. We will promote innovation of policies and mechanisms in urban-rural integration, land management, administrative management and financial management, and focus on registration of air rights, government management innovation and evaluation and promotion system reform. We will launch cross-regional projects including infrastructure construction of Changsha-Zhuzhou-Xiangtan (CZT) City Cluster and its environmental governance, and enhance protection of ecological green core within the area. We will accelerate the treatment of severely polluted areas such as Hengyang’s Shuikoushan, Zhuzhou’s Qingshuitang, Xiangtan’s Zhubugang and Loudi’s Xikuangshan, and cultivate new growth poles in New Xiangjiang District.

We will vigorously push forward energy conservation and emission reduction. We will issue measures for unplanned excessive use of non-residential water, electricity and gas, and strictly implement policies on differential electricity pricing and direct power supply to enterprises. We will speed up technical transformation on high-energy consumption industries, close down out-dated industrial projects, strive to complete construction of denitration equipment in fields of thermal power, cement, steel, petrochemical engineering and non-ferrous metals, and try to save energies in industry, architecture, transportation, public organizations and household living. We will energetically develop energy performance contracting, promote pilot reform of environmental pollution liability insurance and environmental services, and expand the compensated use and trading of pollutant emission permits. We will improve facilities of sewage disposal plants in urban areas and landfills, strengthen supervision and management of environmental protection equipment, and market environmental protection equipment.

We will work hard to promote eco-environmental protection for key areas such as protection and treatment of the Xiangjiang River. To make water clearer, we will push forward the implementation of the first “Three-year Action Plan” of the “No.1 Key Project” for protection and treatment of the Xiangjiang River. We will rationalize the management system of the Xiangjiang River basin, and carry out unified management of water affairs in Changsha, Zhuzhou, and Xiangtan. Priority will be given to protection of important water conservation areas, drinking water areas, and key areas of soil erosion prevention. To make mountains greener, we will propel restoration of mountains, treatment of tailings, and “Green Mines” initiative. We will establish a sound mechanism for soil environmental protection, and launch pilot projects on restoration and utilization of the land polluted by heavy metals and adjustment of crop-planting structure. To make the sky bluer, we will intensify the haze treatment in efforts, investment, and policy, expedite air pollution control of key areas and industries, and improve the joint prevention and control of air pollution in Changsha, Zhuzhou, and Xiangtan and also establish air monitoring network. Such network will also be launched in other cities and prefecture, especially in key industrial and mining (resources-based) cities in batches. In addition, we will improve treatment of automobile exhausts, and promote vehicles powered by new energy. All motor vehicles should gain green environment-friendly labels. We will also increase the control over dust from construction sites.

We will enhance the building of ecological civilization system. We will carry out national ecological compensation mechanism, and implement the strictest possible system of protecting ecological environment from pollution, compensation for damages, and accountability. We will improve the mechanism to develop a green Hunan, and persist in developing ecological cities, towns, and villages. We will push forward afforestation, and develop forest byproducts. We will improve the property rights system for natural resources, implement the system of paid use of resources, and speed up reform of the price of natural resources and their products. We will carry out the strictest system for protecting arable land by controlling land use and economizing by strengthening assessment. We will adhere to the strictest water resources management system, set up sound indicator and assessment system for controlling the amount and efficiency of water use, and limiting pollutants carried by water function zones. As well, we will improve the prevention of meteorological, geological, and seismic disasters.

(5) We will promote new urbanization actively yet prudently.

We will improve the system of sound development of urbanization. Therefore, we will make better life the starting point and goal of urban development, and blaze a new trail in new urbanization, characterized by people orientation, harmonized development with new-type industrialization, agricultural modernization, and informatization, scientific layout, green development, and cultural inheritance. We will compile scientific urban and rural planning, promote the development of city clusters such as Changsha-Zhuzhou-Xiangtan City Cluster and the coordinated development of the regional central cities, county-level cities and counties as well as small towns, and advance the development of central urban areas bordering other provinces, in an attempt to form a scientific and reasonable urban system. We will persist in invigorating towns through industries to promote integrated development. We will invigorate urban areas via industries to promote their integrated development. We will strengthen urban management, improve urban emergency response, focus on crime prevention and control system, and relief and rescue system, and make great efforts to alleviate traffic jams, control air pollution and messed environment and solve urban waterlogging. Well-known residences and towns as well as places of interest will be protected. We will set up a transparent and standardized mechanism for investment and financing in urban construction, and allow social capital to participate in the investment and operation of urban infrastructure via franchising in a standardized way. We will accelerate the reform of household registration system, promote full coverage of basic public services among urban permanent residents, and incorporate farmers who have registered as urban residents into the urban housing and social security system.

We will propel the integrated development of urban and rural areas. We will promote equal exchange of factors of production and balanced allocation of public resources between urban and rural areas. We will explore the establishment of unified urban and rural construction land market, and allow the construction land under the rural collective management to enter the market and share the same rights and price as the state-owned land. Migrant workers will enjoy equal pay for equal work. We will carry out agricultural insurance with local characteristics, promote government guarantee and joint guarantee of households, and encourage investment in rural development. We will allocate public service resources such as education, medical care, social security, and culture, giving priority to rural areas. We will improve the living environment of urban and rural residents, launch contiguous rural environmental treatment within the province, and speed up development of new countryside in one hundred cities, one thousand townships and ten thousand villages. We will take county economy as the link for coordination of urban and rural development, improve the development mechanism for county economy, continue implementing projects focusing on development of distinctive county economy, and expedite the development of county districts, industrial parks, and agricultural science and technology parks. To prosper, we will increase the pilot areas for expanding the county's administrative power.

We will promote regional coordinated development. We will persist in classified guidance, accelerate the development of a moderately prosperous society in all aspects, implement plans for national main functional regions, and improve regional differentiated supporting policies. Changsha, Zhuzhou, and Xiangtan will make full use of various advantages such as industry, talent, and technology, thereby playing a leading and demonstrative role in the provincial development via transformation and innovation. We will take advantages of southern Hunan’s adjacency to the Pearl River Delta to accelerate the construction of demonstration zones for undertaking industrial transfer, and so forming a new pattern of open development. We will fully utilize the superiority of Dongting Lake Ecological Economic Zone’s connecting with rivers and seas, to actively integrate it into the Yangtze River Economic Delta, and speed up the construction of key infrastructure such as regional transportation, water conservancy, and environmental protection. We will mobilize the ecological advantages of western Hunan, expedite protection and exploration of the area, as well as propel the development of distinctive industries and cultural tourism, in an attempt to accelerate poverty alleviation.

We will launch a new round of poverty relief. We will continue to regard Xiangxi Tujia and Miao Autonomous Prefecture as the front for the provincial anti-poverty campaign, implement planning of regional development and poverty alleviation in contiguous areas around Wuling Mountain and Luoxiao Mountain, and lift the people living in former revolutionary base areas, areas inhabited by ethnic groups, remote and border areas, poverty-stricken areas, reservoir areas, and mountainous and cold areas out of poverty. We will press ahead with poverty alleviation elaborately by giving one policy to each township and each village, and one poverty-relief plan to each household. We will reinforce poverty relief by developing industries, support development of distinctive industries, intensify relevant cities' pairing assistance to the prefecture, and favor poor areas such as Xiangxi in allocating the provincial special support. We will unify and ensure the basic public services in poverty-stricken areas, persist in poverty alleviation by combining whole-village advancement and contiguous support with the key support to destitute villages and households. We will connect the rural subsistence allowance system with poverty relief and regional development, and promote water, electricity, roads, gas, houses and environmental treatment available to each household. We will improve education in poverty-stricken areas, and allocate subsistence allowances to rural teachers in contiguous destitute areas. We will concentrate on innovation in poverty alleviation mechanism and strengthen supervision over funds and projects.

(6) We will ensure and improve people’s wellbeing.

We will continue to make tangible efforts for the people. In order to address people’s real concerns, such as construction of public rental housing and rural dangerous housing, transformation of urban shantytowns and industrial and mining shantytowns, supply of water and gas to urban areas, and treatment of urban sewage and garbage. For the purpose, we will focus on 15 tasks: first, to construct and renovate rural roads of 8,000 kilometers; second, to provide safe drinking water for 3.6 million rural residents; third, to create 750,000 jobs for urban residents; fourth, to build 100 demonstrative villages for new countryside development, and 100 provincial demonstrative farmers' cooperatives; fifth, to set up 500 qualified schools for compulsory education, 200 rural public kindergartens, and increase 420,000 beds for students at rural boarding schools; six, to renovate 80,000 rural dilapidated houses and 180,000 households in urban shantytowns, 30,000 households in state-owned industrial and mining households, and increase 150,000 public rental houses (including low-rent houses); seventh, to improve the quality of treated water from water plants in 30 cities and counties, and increase pipeline natural gas users by 150,000 households; eighth, to keep the innocuous treatment rate of urban sewage and garbage above the county level at 88% and 87.5%; ninth, to renovate and expand 150 rural nursing homes, and ensure the annual decentralized support standard is no less than 2,640 yuan for the rural childless and infirm residents who need funding for food, clothing, medical care, housing, and burial expenses; tenth, to keep the standard subsistence allowances for urban and rural residents no less than 330 yuan and 165 yuan per month; eleventh, to provide barrier-free renovation for 1,000 impoverished disabled households, and supply emergency rehabilitation for 3,000 disabled needy children; twelfth, to renovate and expand 20 mental health service institutions, and save 5,000 impoverished and severe mental patients; thirteenth, to increase 20,000 surveillance cameras to maintain law and order; fourteenth, to manage and protect public forests above the provincial level and the compensation funds all in place; fifteenth, to carry out 3,000 fitness projects for farmers, of which 200 are related to outdoor fitness equipment.

We will focus our efforts on employment which is vital to people’s livelihood. We will continue to support the development of labor-intensive enterprises and industries, and strive to solve the structural shortage of labor. We will create job opportunities for college graduates, rural migrant laborers, urban residents with financial difficulties, and veterans, carry out the employment promotion plan for unemployed college graduates, and promote re-employment of laid-off workers. We will improve and carry out the entrepreneurship policies for college graduates, technical personnel, and returned migrant workers, and intensify the construction of entrepreneurial bases. We will improve the vocational training system accessible to all workers, and eliminate the institutional obstacles that influence equal employment, such as differences in urban and rural areas, industries, identities, and gender. We will also pay attention to the employment of the disabled.

We will establish a more fair and sustainable social security system. We will make great endeavors to expand the coverage of insurance and payment especially among rural migrant workers and employees of the non-public economic organizations, and propel the full coverage of the insurance of work-related injuries. We will improve the trans-regional transfer of social insurance relations, and establish mechanisms for setting standards on social security benefits and regularly adjusting them that give due consideration to the interests of people from all walks of life. We will advance the integration of basic endowment insurance and basic medical insurance of urban and rural residents. We will improve the basic pension insurance system for enterprise employees under unified planning at the provincial level, and incorporate into the planning the employees of state-owned enterprises who suffered work-related injuries in the past. We will speed up improvement of social assistance system, and establish the system of basic pension service and nursing care allowances for the severely disabled.
We will increase the income of residents in various ways. We will improve the salary system and regular pay raises, standardize the subsidies supplied to public servants, and complete the implementation of performance-related pay among public institutions. We will increase the property income of residents through multi-channels, and protect the legitimate rights and interests of investors. Also, we will regulate the distribution order, and strive to narrow the income gap between urban and rural areas, and among regions and industries.

(7)We will promote fundamental public service and social undertakings.

We will accelerate the reform and development of cultural undertakings and promote ethical and cultural progress. We will further advocate socialism with Chinese characteristics and the Chinese Dream, and proactively cultivate and practice core socialist values. Philosophy and social science are to be prospered and developed; public activities to be conducted to promote cultural and ethical progress; and volunteer service mechanism to be perfected. We will improve the cultural management system by further rationalizing the relationship between cultural administration organizations and comprehensive law enforcement agencies of the cultural market, and that of the governmental departments and related cultural enterprises and public institutions, expediting transformation of non-political press and cultural profit-making institutions into enterprises, facilitating the establishment of corporate governance structure of cultural centers, libraries and museums, and promoting the injection of non-governmental forces and capitals into the public culture service. To upgrade the cultural industry, we will attach special importance to the development of key cultural enterprises and major cultural projects, and promote the integration of multiple sectors like culture, science, tourism and sports based on cultural industrial bases like Houhu Lake International Art Zone in Changsha. And we will expedite the construction of key cultural facilities such as Hunan Provincial Art Museum, Hunan Provincial Museum, Hunan Library and Chengtoushan National Archaeological Site Park in Lixian County. Great efforts will be made to extend radio and TV coverage to every village and direct broadcast satellite to every house. Standardization and equalization of fundamental public culture service will be developed in a holistic approach. World culture heritage application of Laosi Town in Yongshun County will be accelerated.

We will enhance the development mechanism of social undertakings. Comprehensive reform on education will be deepened mainly by propelling sound and coordinated development at various levels such as regular high schools, vocational education and higher education, advancing the reform of entrance examination and enrollment system as well as postgraduate education, and promoting the reform and development of preschool education, special education, and continuing education. Compulsory education resources for urban and rural areas will be coordinated. Non-governmental funds are to be encouraged and utilized in education and high quality education resources from home and abroad will be actively introduced into Hunan. We will step up efforts to improve universal medical insurance system and the mechanism to provide insurance and aid for treating major and very serious diseases .We will also orderly make available the essential medicines system to village clinics and non-governmental grass-root medical institutes. We will deepen reform of governmental hospitals at municipal and county level, and prudently boost pilot areas of critical diseases insurance for urban and rural residents. Prevention for critical communicable diseases and development of mental health will continue to be intensified. The two-child policy (a policy allowing couples to have a second baby if either parent is an only child) will be implemented prudently so as to promote balanced development of human population in the long term. We will exert great efforts on national fitness programs and competitive sports. And legitimate rights and interests of women and children will be earnestly guaranteed. Service system for left-behind children, women and the elders in rural areas will be improved, so will the system to guarantee rights and interests of the disabled and the sorted security system for children under difficult circumstances. We will move faster to advance public service programs and charities, and carry out the Third National Economic Census.

We will advance development of democracy and the rule of law. We will accept the oversight by the National People's Congress (NPC) and its Standing Committee on the legality and our work, and implement their decisions as well; support and guarantee the fulfillment of political consultation, democratic supervision and political participation by the Chinese People's Political Consultative Conference (CPPCC); and sincerely deal with the NPC members’ suggestions and CPPCC members’ proposals and earnestly listen to opinions from democratic parties, associations of industry and commerce and public figures without party affiliation. We will make great efforts in improving the mechanism of popularizing legal knowledge. We will support judicial organizations’ judicial independence and justice so as to accelerate judicial system reform. Grass-root democracy will be developed and channels for democracy will be accessible through improving mechanisms like basic-level election, discussion, openness, duty report and accountability. And the ninth village committee election will be conducted.

We will innovate the social governance mechanism. We will punish crimes, strengthen legal restraint, enhance moral education and standardize social behaviors in accordance with the law, so as to establish a sound multi-dimensional system for crime prevention and control. Integrated service management platform at the basic level will be improved for community corrections and legal aid. We will strengthen the integrated system of mediation by the people, administrative mediation and judicial mediation. Greater efforts will be spared on network administration and virtual social management innovation. A mechanism for effective prevention and social contradiction settlement will be established, through which we will assess potential risks major policy decisions may pose to social stability, cater to public complaints received through letters and internet, and legally handle people's complaints about legal and litigation-related issues. Such organizations as Trade Union, Communist Youth League, and Women’s Federation are to play their full roles. Social organizations are encouraged and supported to participate in social management and full independence between industrial associations and chambers of commerce and administrative organizations are to be realized. Safety production is maintained to staunchly prevent serious incidents. Strictly abiding by the national regulations, we will orderly close down coal mines with either an annual throughput of less than nine tons, unqualified safety production condition or a history of serious disasters like coal and gas outburst or major liability accidents. We will practically strengthen supervision of food and drug security with the most prudent standards, severest punishments and most serious accountability. We will enhance public security assurance and the capacity to deal with emergencies. We will fully implement the Party’s policies towards religions and nationalities, to promote harmony among various religions and nationalities.

We will coordinate development of national defense and reserve forces. To promote the capacity of accomplishing diversified military missions, groundwork for national defense mobilization, armed forces militia, and reserve forces, emergency mobilization, civil defense and military installations protection will be further strengthened. We will standardize military service and improve its quality as well. Soldiers’ transferring to civil work will be earnestly arranged. Efforts will be exerted to promote national defense education nationwide. We will continuously consolidate and develop unity between the army and the government and between the army and the people, and promote intensive integration of military and civilian.

Fellow Deputies, to accomplish the task of reform and development of 2014, we should enhance the government’s self-improvement, and hasten to develop a service-oriented, accountable, law-based and clean government as General Secretary Xi Jinping proposed at the closing meeting of the first session of the 12th National People's Congress (NPC), so as to further transfer the government’s function and give a full play to it. We must uphold the fundamental purpose of the Party, and speed up the construction of a service-oriented government. We will gradually set up a provincial-unified governmental service platform and a public resource transaction platform, strictly abide by, ten prohibitive provisions for optimizing economic development environment earnestly implement the target of reducing a third of the administrative service fees, and intensify more information disclosure covering issues like major policy decisions, significant projects related to people’s livelihood, key investment projects and public resource transaction. We will raise the consciousness of problems and build an accountable government. We must earnestly specify the responsibility of public service, market monitoring, social management and environment protection; reform the performance evaluation system; attach greater emphasis on resource consumption, environmental damage, ecological benefits, excess production capacity, scientific and technological innovation, safety production and fresh debts; and utilize the evaluation results. We will enhance the awareness of regime and accelerate the development of a law-based government. We will make policy decisions scientifically and democratically in accordance with the law; timely modify or abolish regulations and normative documents unsuitable to economic and social development; improve and strictly execute systems of consultation on administrative decision-making experts, risk assessment, legality review, conference communication, publicity and public hearing, governmental legal counsel; relatively concentrate the enforcement power of law; push forward comprehensive law enforcement; and establish an authoritative and effective administrative law enforcement system unified in liability and rights. We will reinforce the awareness of rules and regulations, and establish a clean government. We should consolidate the achievements in carrying out intensive activities throughout the Party to study and practice its mass line; stoutly clean the undesirable work styles such as formalism, bureaucratism, hedonism and extravagance; build an honest and clean government and formulate rules on anti-corruption government; intensify supervision over administrative efficacy and auditing; implement rules on frugality and anti-waste campaigns; standardize official cars, houses and fees on official receptions; and ban the construction of government buildings. From this year on, administrative appropriation in Hunan is expected not to grow; spending on official overseas trips, vehicles for official use and official hospitality must be cut down; and all expenditures will be disclosed.

Fellow Deputies, since the Third Plenary Session of the 18th CPC Central Committee has launched a new historical chapter of comprehensively deepening reform, Hunan will witness its unprecedented and profound reform soon. We are confident in overcoming difficulties, and defeating the risks and challenges on our way forward. With our full devotion, we will fulfill our commitment to the public. We will forge ahead to grasp all opportunities as the pioneer, deepen reforms comprehensively, and establish a mechanism conducive to scientific development with innovative and pioneering spirit; insist on and concentrate on development by practical actions and effectively adhere to the intention; and assist each other, further the work of our formers with unified strength, and gather the greatest positive power to push forward the scientific development. Let us rally more closely around the Party Central Committee with Comrade Xi Jinping as General Secretary, and under the leadership of the CPC Hunan Provincial Committee, free our minds, seek truth and practically strive for a prosperous society in all respects!
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