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1. Execution Status of the "10th Five-year" Plan

Shaanxi Development and Reform Commission, May 8, 2005

The “11th Five-year” Planning is an important planning for the total implementation of scientific development concept as well as an important planning for Shaanxi Province to move for total vigorous development and flourishing under the background of the province’s development in expressway. Defining the basic thought for economic and social development in the coming five to fifteen years, drawing up the “11th Five-year” Planning for the province is of great significance for the province to realize successfully the second strategic target for the total construction of a well-off society and accelerate the establishment of an economically strong province in Western China.

1. Execution Status of the "10th Five-year" Plan

The “10th Five-year” was another period of rapid development for the province since the establishment of New China, with the major planned targets completed one year in advance. The province’s economic development is now in a speed way and a rising period. It is estimated by the end of the “10th Five-year”,  the province’s GDP will reach 320 billion Yuan, with an average annual growth of 10.5%; per capita GDP will be 8,595 Yuan; the accumulated fixed assets investment volume will be 644.7 billion Yuan, with an average growth of 19.2%; the total import and export volume will reach 14.9 billion USD. In 2004, per capita GDP was equal to 73.8% of the average level in China, with an increase of 9 percentage points as compared with that at the end of the "9th five-year" period. Obvious progress has been achieved in the adjustment of economic structure; the characteristic sectors has shown a strong trend of development; major breakthrough has been achieved in the construction of infrastructures with transport as the focus; prominent performance has been observed in the ecological environment governance and protection; reform and opening-up has been deepened; the level of market economy has been remarkably elevated; over progress has been achieved in all social causes such as science and technology, education, etc; income level of urban and rural residents has been remarkably raised; the per capita disposable income of urban resident has reached 7,492.5 Yuan and per capita pure income of peasants has reached 1,867 Yuan.

In general, the “10th Five-year” Plan has been excellently executed, but also some prominent problems have been observed: (1) backward system and mechanism: reforms of state-owned enterprises, social securities, administration and financial and taxation system have lagged behind and failed to comply with the requirement of the socialist market economy and the development vitality has been inadequate. (2) Economic growth is rough. The economic growth mode of high input, high consumption, high emission, low output, low efficiency and difficult circulation has not been fundamentally changed; industrial clusters have been less developed; core competitive strength is weak. (3) The base for development is still weak. Such infrastructures as communications, energy and water conservancy are still relatively backward. We shall continue to resolve these problems with our efforts in the period of “11th Five-year”.
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2.        Basic Estimation for Development Environment in the “11th Five-year”

The first twenty years of this century shall be a major strategic opportunity period which China has to control of and in which China can accomplish great deeds. The “11th Five-year” period will be a “golden development period” as well as a “conflict-protruding period” for the economic and social development of China. The province’s economic and social development will also face new opportunities and challenges and show new features.

1) The “11th Five-year” will be an important period for the province to speed up the development

The Chinese economy is now in a rising stage of the new round growth period, as will promote the rapid development of the province’s economy. In China, per capita GDP has exceeded 1,000 USD, consumption structure and industrial structure has been upgraded rapidly, in industrialization and urbanization has been accelerated and scientific and technology progress has been increasingly achieved, as has opened up vast space and provided excellent opportunities for economic development. By the end of the“10th Five-year”, the province’s per capita GDP will exceed 1000 USD and enter an important period for accelerated development. Currently, the province’s characteristic sectors show a strong trend of growth; the four major bases have huge development potential; the development of non-public economy is accelerated and the internal vitality for economic growth has been obviously enhanced. All these will promote energetically the province’s economy to maintain a trend of rapid growth.

With the central government attaching more importance to the regional harmonious development, the development of Western China will be prominently accelerated. The great development of Western China will enter a new stage for development of both infrastructures and industries. In addition to the infrastructures, ecological environment, education and health to be supported by the central government, some of regions and industries in the province with an excellent base and huge development potential will be also qualified to receive more supports from the central government and show their bigger vitality for development.

With the national heavy and chemical industrialization being accelerated, the demands for energies, raw materials and major equipments will maintain a growth, as has provided a vast market space for the development of energy and chemical industries such as coal, power, oil, gas and salt and the promotion of equipment industry in the province.

The new round adjustment of industrial structure at home and abroad will promote the transfer of capital, technology and industry to the regions with rich resources and labor force and low-cost land. With the excellent base and unique advantages to undertake such transfer, the province will obtain more development opportunities.

The “10th Five-year” has been another period of rapid development for the province since the founding of New China, in which the quality and benefit of economic growth has been remarkably elevated and the reform and opening-up has shown an outstanding effect. Nowadays, in the whole province observes a situation of working in unison, striving for progress, being united and stable and maintaining an unprecedented high enthusiasm for speeding up the development. All these have laid an excellent foundation for the more rapid development in the “11th Five-year” period.

2) The “11th Five-year” will be an important period to change the mode of economic growth

Since he reform and opening-up was launched, like other provinces in China, the province has observed a sustained rapid economic growth, which has been however realized by relying, to a great extent, on high input of capital and resources and for which an excess cost resource environment has been made. Such rough development mode fails to comply with the requirement of scientific development concept and shall not last long. As compared with the developed regions, the province observes a relatively big gap in industrialization standard, low industrial level, less scientific and technological content in products and low centralization. To cope with the increasingly fierce competition at home and abroad, it is urgent to change the growth mode and elevate the overall quality. With the national industrial policy being adjusted, some industries and products of high consumption, high emission, difficult circulation and low efficiency will be gradually eliminated and their development shall be more strictly restricted. Therefore, we have to positively change the growth mode so as to meet the future development. Reliance on technological progress, elevation of technical equipment standard and enhancement of core competitive strength has become an effective approach to promote the economic growth. It has been a strategic choice for promoting the economic growth by carrying out the development and transformation of resources and centralized production, developing the circulation economy and establishing a saving-type society according to internationalization, large scale, high starting point and high standard. For the development in the “11th Five-year” period and in the future, change of economic growth mode will be carried out in all fields and links of the economic development as an important "red line".

3) The “11th Five-year” will be an important period to promote the harmonious development

Promotion for harmonious development is a major adjustment of China’s development strategies and an important principle to be followed in the economic and social development during the “11th Five-year”. Currently, the non-harmony between urban and rural areas, between regions, between economy and society and between mankind and nature in the province has become increasingly prominent. The income gap between urban residents and rural residents has been further expanded from 3.5 times in 2000 to 4 times in 2004; the ratio of per capita GDP in Guanzhong, North Shaanxi and South Shaanxi is 1:0.66:0.48; the province’s Gini coefficient is 0.46, exceeding the "alert line"; the social securities have an imperfect system, a narrow coverage and low centralization level, while the rural residents fail to obtain the basic social securities; public services are imperfect and the development of science and education, health, culture and other social causes has lagged behind, especially the rural social causes in the slow development; the whole province has now had over 300,000 urban off-duty and unemployed persons; the annual increase of labor force is about 150,000 and a huge quantity of surplus labor force in rural areas need to be migrated to the urban areas, as has caused a high employment pressure. Failure to resolve these problems effectively will impact directly the rapid and harmonious development of economy and society and the social stability.

4) The “11th Five-year” will be an important period to speed up the reform and opening-up

The “11th Five-year” will be a period for Chinese reform to storm fortifications, in which the reform will be further strengthened. In the province, the reform has been successful to some extent, but is relatively lagging; the non-flexible system and mechanism has seriously hindered the development of productivity, showing a huge pressure for reform. To maintain a rapid economic development in the period to come, it is necessary to make a major breakthrough in the reform and obtain a development power through reform. The emphasis is to continue with deepening the reform of state-owned enterprises, adjust and improve the ownership structure and accelerate the change of governmental functions.

Relatively low opening-up level and inadequate foreign economic cooperation is a serious defect in the economic development of the province, showing a big contrast with globalization of economy and internationalization of market. During the “11th Five-year” period, it is necessary to improve the investment environment, expand the opening-up to the outside world, make full use of "two markets and two types of resources", participate in the international and domestic cooperation and competition within a bigger range, wider field and at a higher level and raise the standard of international standard.
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3.        Overall Assumption for the Development in the “11th Five-year” Period

1) Guidance

The overall thought of the province for the development in the “11th Five-year” period is: with Deng Xiaoping’s theory and "Three-representative" thought as a guideline and with the scientific development concept commanding the whole, implement completely the spirit of the 16th National Congress of the Party and 3rd, 4th Plenary Session of the 16th Nation Congress and the major decisions of the provincial party committee and government, continue to seize the opportunities in the great development of Western China, take the faster and better development as the theme, take the change of growth mode, adjustment of economic structure and promotion of harmonious development as the main line and regard the total development of mankind as the fundamental starting point and destination. Deepen the implement of the strategies for a strong industrial province, developing Shaanxi with science and education, urbanization and sustainable development. Consolidate the two bases of infrastructure and education, make stronger the three major supports of the energy and chemical, equipment manufacturing and high technology, speed up the construction of the four major bases, cultivate and strengthen the three major bright points of tourism, culture and modern logistics, put forth effort to resolve the problems in the system reform, opening up to the outside world and, "three-agriculture" and resource environment, enhance the integrated economic strength, actively build a harmonious society and lay a solid foundation for the total construction of the well-off society and the strong province in the western economy.

The development in the “11th Five-year” period shall follow the following principles: 

--Speed up the development. With the priority to speed up the development, liberalize thought further, give a full play to the advantages, consolidate the consciousness of opportunities, enhance the sense of emergency, maintain a relative fast growth rate, accelerate the industrialization and raise the standard of urbanization.

--Change the growth mode. Give the first priority to the resource-saving, consumption reduction and environment protection, concentrate on the central link to raise the competence of enterprises for independence and innovation, elevate the standard of informationization as a whole and practically change the mode to economic growth to dependence on technological progress and elevation of laborers’ quality. Promote the growth of consumption and export and change the pattern of economic growth depending excessively on investment promotion. Speed up the development of circulation economy and construction of saving-type society and try to find out a new approach for industrialization with high technological content, excellent economic return, low resource consumption, less environment pollution and proper utilization of human resources.

--Promote the harmonious development. Strengthen the construction in the weak links, change gradually the urban and rural dual-element structure, promote the harmonious development of Guanzhong with South Shaanxi and North Shaanxi, handle properly the relation between resource development and ecological protection and promote the total progress of social causes.

--Insist on the two innovations. Deepen further the reforms with the state-owned enterprises as the focus and break through the obstacles constraining the development of productivity. Give a full play to the province’s advantages in science and education, raise the capacity for independent innovation, speed up the transformation of scientific and technology achievements, promote the development of productivity and provide strong power for the economic and social development.

--Represent the human focus. Try all means to increase opportunities for employment, raise the income of urban and rural residents, speed up the perfection of the social securities institution and satisfy constantly the increasing demands of the public for material culture. Elevate the people’s ideological and ethic quality, scientific and cultural quality and health quality. Respect for and safeguard the human right, create a social environment for fair development and mobilize and give a play to the enthusiasm and creativity of people.

2) Targets for Economic and Social Development

The major anticipated targets for the economic and social development in the “11th Five-year” period include: 

--Economy maintains a faster growth and growth mode changes obviously. At an average annual growth rate of about 11%, the total output value will exceed 500 billion Yuan by 2010 and the gap with the national average standard will be further narrowed. The quality and benefit of economic growth will be elevated, the output ratio of natural resource input, recycling ratio of resources and disposal ratio of wastes will be obviously elevated and the ecological environment will be obviously improved.

--Economic structure is further optimized. The comprehensive agricultural production capacity will be enhanced and industrialization level will be further elevated. The industrialization will be accelerated and the ratio industrial added value in GDP will increase to more than 40%. The development level of service industry will be obviously elevated. The ownership structure will become more rational. The urbanization standard will reach about 45%.

--New steps are made in reform and opening-up. Substantial breakthrough will be made in the reform of state-owned enterprises, prominent progress will be achieved in the system reform of investment, fiscal taxation, finance and administration and the systematic obstacles for the harmonious urban and rural development will be gradually eliminated. The open economy will be raised to a new level, the scale and quality of foreign-capital utilization will be obviously elevated and the total import and export volume will be sharply increased.

--Great progress is observed in building a harmonious society. The urban and rural public service system will be more perfect and such social causes as science and technology, education and health will be obviously enhanced. The income of urban and rural residents will increase rapidly and the trend of income gap expansion will be controlled. The unemployment ratio will be controlled within the range acceptable to the society. The social security system will be continuously improved.

By 2020, the total output value will reach approximately 1.2 trillion Yuan, with per capita GDP exceeding 3000 USD and exceeding the national average standard. The third-step strategic target will be achieved in the total construction of a well-off society and an economically strong province will be built in Western China. The province’s economy is further developed, democracy will be more perfect, science and education will be more progressive, culture will be more flourishing, the society will be more harmonious and the people’s life will be better-off.
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4.        Emphases for Development in the “11th Five-year”

1) Strengthen the two bases of infrastructure and education

The lagged-behind infrastructures are still a weak link that constrains the rapid economic and social development. The strength shall be further concentrated on the construction of infrastructures with a focus on transport, urban public facilities and improvement of ecological environment so that the province’s construction of infrastructure and ecological environment will move to a new stage. The transport construction will focus on expanding the scale, perfecting the structure and increasing the transport capacity to build the “*” expressway main frame and "one-vertical, three-horizontal and two-ring" sub-frame. The construction of rural "unblocked" and "accessible" project will be in a full wing. The construction of "two-vertical, five-horizontal and four-pivot" railway trunk network will be accelerated. The "one-main and three-auxiliary" aviation transport function will be elevated. With the construction of 10 major railway projects, 12 expressways, 3,000km mainline highways, 20,000km rural roads and 4 airports, an integrated communication and transport system with perfect functions and complementary advantages will be primarily formed and the province-wide outbound transport channel and convenient internal transport network will be built as soon as possible. Continue to strengthen the construction of such facilities as urban roads, water supply and drainage, gas supply, sewage and solid waste treatment, etc, enhance the urban functions and improve the urban environment. Strengthen further the construction of "Ecological Shaanxi", emphatically carry out such works as returning farmland for forest, protection of natural forest, "three-north" protection forest, plain greening and water and soil conservation and speed up the construction of such major ecological environment projects as Qinling Ecological Function Conservancy and integrated governance of Handan River and Weihe River so that the ecological environment in the province will be obviously improved.

As a basic engineering to elevate the national quality and promote the social progress, education holds an important strategic position in the national economic and social development. During the “11th Five-year” period, it is necessary to give first priority to the development of education to enforce continually the basic education, energetically develop the vocational education, steadily elevate the higher education and strive to resolve the conflict between the increasing demand of the people for education and the inadequate education supply. Speed up the construction of socialized life-time education system, continually elevate the national cultural quality and cultivate the practical talents and high-tech talents suitable for the economic development. For the basic education, stress will be placed on the education in the rural area and efforts will be put forth on development of "Nine-year Compulsory Education", consolidate and elevation of the "two basic" targets, adjustment of school location and optimization of education resource allocation. Continue with the remote education of rural primary and middle schools, construction of rural lodging schools and rehabilitation of primary and middle school buildings in danger so as to achieve a historical breakthrough in the province’s basic education. Actively development the ordinary high-school education and strengthen the construction of teacher force and quality high schools. Attach importance to and support the development of vocational education, increase practically the governmental investment and emphatically build a number of vocational middle schools and vocational technical colleges. Additionally, by such flexible means as government-owned and civilian-run, civilian-owned and government-sponsored, etc, encourage and support the social forces to run the vocational education. With the economic and social development and employment demand as the orientation, continuously optimize the vocational education structure and the subject setup and put forth effort to cultivate high-quality laborers and practical talents. By 2010, the high-school education will be popularized gradually in the central cities of the province. Deepen the reform of the higher education setup, integrate the higher education resources, strengthen the construction of key disciplines and continuously elevate the school-running quality and standard. Continue with the implementation of the "985" Project and "211" Project, complete the expansion of colleges and universities and promote the higher education further to a higher level.

2) Make strong the three major supporting industries of energy chemical, equipment manufacturing and high and new technology

Expansion of the supporting industries is the core task for the province’s economic structure adjustment and industrial development. As per analysis on the existing industrial development base and domestic and overseas market demand, during the “11th Five-year” period, the province is able to make bigger and stronger the three major industries of energy chemical, equipment manufacturing and high and new technology.

As for the energy chemical industry, it is necessary to grasp the favorable chance in the sustained growth of energy demand, give a full play to the province’s advantages in rich resources of coal, oil, gas and salt and put forth effort for a major breakthrough in three aspects: (1) Strength the development of energy resources and promote the sharp growth of disposable energy production scale; (2) speed up the transformation of coal and waterpower to electricity, actively develop new energies, optimize the energy structure and build at the earliest the major power base in the country; (3) Speed up the chemical transform of coal, oil, gas and salt, extend the industrial chain, increase the added value, change the advantage in resources to the economic advantage and strive to build the province into a national strong province of energy chemical industry.

Equipment manufacturing industry is the motive power for industrialization and is the strategic industry of the national key development. The province has a strong base for the equipment manufacturing industry, with more categories and with a number of advantageous sectors influential in China, showing a major proportion in the provincial industry in terms of stock capital, sales income, realization of profit and tax and employment. During the “11th Five-year” period, expansion and strengthening of the equipment manufacturing industry will be deemed as an important move in speeding up the industrialization so as to elevate further the supporting position of the equipment manufacturing industry. By grasping the opportunity that the central government develops vigorously the equipment manufacturing industry and the international manufacturing industry shifts to China, with the market as the orientation, innovation as the power and capital as the link, actively look for strategic partners, create brand products and leading enterprise, build the industrial cluster and establish the base of equipment manufacturing industry in Western China.

High-tech industry is a strategic and leading industry in the national economic development as well as is of great strategic significance for optimizing the industrial structure, increasing the core competitive strength, accelerating the new industrialization and safeguarding the economic safety. Today, the competition between countries is actually the competition of science and technology that has become the first cause for the economic development. In the province, there are many colleges and universities and research institutions with abundant human resources of science and technology. Promoting the economic development with the scientific and technological advantages shall become a strategic choice for the province in the future. At present, the province has possessed a number of hi-tech industrial parks and enterprise with excellent growth and huge development potential. The hi-tech industry develops at an annual growth rate of over 20% and will be qualified to become the major supporting industry in the province. During the “11th Five-year” period, it is necessary to give a full play to the advantages of science and technology, strive for a new breakthrough in the development of high technology, and speed up its permeation into all the fields of the national economy and elevate the industrial quality of the province as a whole. Put forth effort for major achievements in three aspects: (1) speed up the development, introduce a number of high-tech projects with the scale advantage, high added value and strong market competitiveness and expand rapidly the industrial volume; (2) speed up the integration of high technology with industries of resource development and promote the simultaneous rapid growth of the two; (3) cultivate a number of high-tech groups and clusters with strong core competitiveness and excellent economic benefits for new breakthrough in the advantageous fields.

3) Construct the four major bases

According to the principle of project driving, industrial integration, scientific planning and overall promotion, continue to speed up the construction of North Shaanxi Energy Chemical Base, Guanzhong Equipment Manufacturing and High-tech Base, Weibei Fruit Base and South Shaanxi Green Industry Base, expand the scale and raise the quality so as to form the regional economic development pattern with different characteristics.

 North Shaanxi Energy Chemical Base:

According to the large-scale, international and sustainable requirement, with the major projects as a support, energetically promote the transfer of coal to power, transfer of coal and power to energy industry and chemical transfer of coal, oil, gas and salt so that North Shaanxi Energy Chemical Base will become the most vigorous economic growth pole in the province. According to the total volume of water resources, quality of energy resources and capacity of ecological environment, prepare the allocation plan, strengthen the integrated auxiliary infrastructures, harmonize the resource development and environment protection and generalize the industrial development and urban construction. Establish a new benign interactive mechanism for resource development, industrial development and environment protection for the sustainable development.

During the  “11th Five-year” period, it is necessary to expand the development of disposable energies, continue to expand the production scale in the region of North Shaanxi, actively develop the mines of Shanchang and Zhangba, rebuild the old mines in Weibei for potential and expand further the development scale of petroleum and natural gas. In terms of power construction, construct a number of thermal power plants in North Shaanxi, Weibei and Guanzhong to form the two major thermal power generation clusters of North Shaanxi and Guanzhong. In terms of chemical construction, the development will focus on coal liquefaction, methanol and methanol-based olefin making, petroleum chemical and salt chemical. By 2010, the base shall have the annual capacity to produce 15 million tons of crude oil, 15 million tons of refined oil, 10 billion cubic meters of natural gas, 200 million tons of raw coal, 6 million tons of methanol and 4 million tons of coal-based oil and will be primarily built as a major energy source and large-size coal chemical base in China.

 Guanzhong Equipment Manufacturing and High-tech Base: 

With the national and provincial development zones as the priority, carry out the construction of the park infrastructure and external auxiliary works, strengthen the service functions and optimize the investment environment. Around the development in key fields and of advantageous industries, actively guide the enterprises to gather in the parks, strengthen the interlinking of associated industries and cultivate and develop the industrial clusters with prominent work division, close cooperation and support and remarkable scale effect. Strengthen the investment promotion, attract the international large enterprises and groups for investment in major equipment manufacturing and high-tech industrialization projects and promote the rapid development of the base.

The equipment manufacturing base shall make use of the equipment industry base in Guanzhong and Hanzhong to emphatically develop the six advantageous industries: in terms of aircraft manufacturing, develop emphatically the aircraft, aircraft parts and outsourcing production. Based on Xi’an Yanliang National Aviation High-tech Industry Base, build the biggest base of aircraft R & D and production in China. In terms of automobile manufacturing, develop emphatically the heavy vehicles, cars, coaches and such key components as engines and gearboxes. In terms of transmission and transformation equipment manufacturing, emphatically develop 1000KV AC transmission and transformation equipment and EHV DC transmission equipment and build a major research and production base for high-voltage AC and DC transmission and transformation equipment in China. In terms of engineering machinery manufacturing, emphatically develop such products as road pavers, large-power dozers, hydraulic excavators, etc. In terms of NC machine tool manufacturing, emphatically develop the NC processing center, NC precise machine tools and functional components and actively develop the flexible manufacturing units and systems. In terms of electronic information and communication equipment manufacturing, emphatically develop the new electronic elements, national defense electronic system equipment, mobile communication and network equipment.

As for the construction of Guanzhong High-tech Industry Base, first of all, through innovation of scientific and technological setup, strengthen the construction of the national and provincial key labs, engineering (technology) research center and enterprise technology center, enhance the R&D and innovation capacity and maintain the leading position of Shaanxi science and technology in China so as to support the development of high-tech industry. The development of high-tech industry shall focus on such fields for industrial advantages as aerospace, information industry, biological pharmacy, new materials, advanced environment protection and modern agriculture to form the aviation industrial cluster with the regional aircraft, general aircraft and aircraft component manufacturing as the focus, the information industry cluster with the new electronic element and apparatus, software, integrated circuit, communication product, audio and video product as the core, the new material industry cluster focusing on MO and TI material, composite material, nanometer material and superconducting material, and the biological pharmacy industry cluster with natural medicine, synthetic drug and biological preparation as the core. High technologies shall be used to rebuild the conventional industries, raise the innovation capacity of enterprises, increase the scientific and technological content and added value of products and enhance the competitive strength.

Weibei Fruit Base: 

Give full play to the unique advantages of excellent apple excellent regions in Weibei, expand steadily the area, stress on the fruit quality, enhance the fruit processing capacity and build a quality fruit base being the number one in China and famous in the world. During the “11th Five-year” period, it is necessary to expand further the fruit area in Weibei excellent growth region, actively develop the key technologies for processing apples and popularizing and raising fruit yield, implement the garden-based management, build the standardized and export demo base and elevate the quality and production standard of fruit products. Accelerate the implementation of the rules for origin protection, strengthen the protection of Shaanxi apple brands, raise the domestic market share, increase the export and create fine-quality fruit product brands. Elevate further the processing capacity and standard of fruit products, make stronger and bigger the leading enterprises of fruit processing, form the competitive industrial setup as soon as possible and achieve the transform from a big province of fruit to a strong province of fruit.

South Shaanxi Green Industry Base: 

Develop thoroughly the green resources, expand the green industry and find out an approach of harmonious development for economic development, excellent ecological environment and well-off masses. Continue to develop the industrial base for modern traditional Chinese medicine, undertake the GAP certification of the herbs plantation base and promote the regularized plantation of traditional Chinese medicinal materials. Support the reform, restructure, capacity expansion and output of pharmacy enterprise, introduce a number of large leading enterprises of traditional Chinese medicine and develop the industry of traditional Chinese medicine based on the brand products. Speed up the construction of the traditional Chinese medicine R & D platform, marketing network and infrastructures in biological scientific and technology parks and build the industrial system of modern traditional Chinese medicine. By making efforts in the “11th Five-year” period, put forth effort to create the "Qinba Pharmacy" brand. With the mountain and water green ecological environment as the characteristics, excavate the Hanshui Cultural Connotation, develop and construct the tourism resorts with domestic and overseas well-known brands and make bigger and strong the tourism. Give a play to such features as species diversity, develop the green and functional food as per local conditions with an emphasis on farm and sideline products as tea, mulberry and forest specialty and strive for excellence and specialty. Speed up the staged develop of Hanjiang River hydropower resources and build South Shaanxi into an important hydropower base in the northwest region. The mineral resources in South Shaanxi shall be developed on the premise of protecting the environment. Priority shall be given to develop the advantageous mining industry and extend the industrial chain according to the requirement of high standard, centralization and non-pollution.

4) Promote the development of service industry mainly of tourism, culture and modern logistics

Development of service industry is of great significance for flourishing the economy, expanding employment, raising the people’s living quality and building a harmonious society. According to the orientation of market-based, industrialization and socialization, insist on the government-guidance, market operation and multi-element input. With the target to increase the supply, optimize the structure and expand the range, reform and elevate the service industry, cultivate and expand the modern and new service industry. Develop emphatically the three major industries of tourism, culture and modern logistics to promote the development of the province’s service industry and elevate the overall standard of service industry.

Tourism is one of the province’s characteristic industries with huge development potential. Speed up further the development of tourism and elevate the position of Shaanxi’s tourism in China. Deep the reform of tourism administration system, regulate the relation between the province, city and county, between departments and between tourism resorts, establish the sharing mechanism of tourism resources and interests and mobilize the enthusiasm of all parties to develop the tourism. Around the four cultural themes of Zhou, Qin, Han and Tang, excavate and exhibit thoroughly the cultural connotation, construct the resorts and develop the series products so as to form the industrial chain with different features. By grasping the opportunity in the national development of red tourism, accelerate the construction of “Shan-Gan-Ning Red Tourism Resort” with Yanan as a center so that it will become a base of revolutionary tradition education and tourism with relatively big influence. Rationally develop the natural landscape, construct a number of natural landscape resorts on south and north of Qinling, along the Yellow River and Hanjiang River and on the loess plateau and develop new tourist routes. Elevate further the tourism service standard, enhance the construction of marketing network and promote the tourism to a new stage.

Promote the rapid development of cultural industry. Give a full play to the resource advantages such as Guanzhong’s historical culture and modern culture, North Shaanxi’s red classical and loess plateau style and culture and South Shaanxi’s Hanshui culture and green culture. With the innovation of system and mechanism as the driving force, develop a number of cultural industries. With the cultural tourism, radio, movie and television, press and publication and art performance as the focus, cultivate a number of industrial groups. Build Shaanxi into a leading province of western cultural industries so that Shaanxi will become an important window for Chinese culture to move to the world.

The logistics industry is a new industry with most development potential in the province. Based on advantageous industries, excellent location and communications conditions, building the modern logistic collection and distribution market system is of great significance for the province to meet the economic globalization, develop the big trade and big circulation and raise the quality and benefit of economic operation. According to the development principle of policy guidance, regular operation, generalized planning and orderly promotion, speed up the construction of such modern logistics industry parks as Xi’an Xinyuan, Xi’an Xianyang Airport Aviation, Changan Yingzhen and Baoji Chencang. Establish and improve the modern logistic distribution, retail service, agricultural product circulation and industrial product wholesale market. Enhance the integration of the logistic enterprise and logistic resources, develop the third-party logistics and cultivate and introduce a number of large logistic enterprises. Strengthen the construction of the logistic public information platform and central-city logistic facilities and create the modern logistic system with Baoji, Ankang and Yulin as nodes.

5) Actively promote the urbanization

The “11th Five-year” is an important period for acceleration of urbanization, in which urbanization will be implemented as the important strategy. It is necessary to speed up the construction of Xi’an Metropolitan Circle, enhance the functions of regional central cities, actively develop the county towns and key towns, form a rational urban system, raise urban industry and service functions and promote the transfer of agricultural population to urban areas so that urbanization standard will be raised to some extent.

Speed up the construction of Xi’an Metropolitan Circle. Promote the integration of Xi’an and Xianyang, improve further urban infrastructures, enhance the urban functions, improve the residential environment and raise the development quality. Promote actively the integration of Xi’an Metropolitan Circle and Guanzhong Urban Cluster. Speed up the construction of development zone and industrial park and create the industrial integration. Give a full play to the advantages in human culture, science and technology, frontier and industry and build Xi’an into an important center of science and technology, tourism, finance, modern logistics and information in China. By 2010, the economic volume and population scale of Xi’an Metropolitan Circle will increase sharply.

Actively cultivate the regional central cities. Strengthen further the construction of Baoji, Tongchuan, Weinan, Hanzhong, Ankang, Shangluo, Yanan and Yuli as the regional central cities, develop energetically the characteristic industries, boost the comprehensive development capacity and accelerate the formation of the regional economic, technological and cultural centers.

Actively promote the construction of county towns and key towns. With the improvement of urban infrastructures as the focus and with the development advantageous industries as the support, enhance further the urban functions so that the county towns and key town will have their bearing capacity obviously elevated and become the important carriers for the transfer of rural population and the gathering of small and medium enterprises.

Optimize the urban allocation. Build up the frame for the urban spatial development with the Guanzhong Long-Hai line as the main axle and Great Wall in North Shaanxi, Hanjiang River in South Shaanxi and Shen-Kang Railway as the auxiliary lines.

Speed up the establishment of effective mechanism for the rural population to enter voluntarily and orderly in the urban areas. Improve further the urban and rural household administration rules, employment and social security system and promote the transfer population towards the urban areas.

5) Speed up the construction of the harmonious society

Construction of a harmonious society is the inevitable requirement for the national economic and social development to enter a new stage as well as the important strategic task in the “11th Five-year”. First, speed up the development of the tertiary industry, SMEs and labor-intensive industries, actively develop the community employment and public welfare employment, encourage the self employment and independent pioneering and expand the employment approaches. Second, improve further the social security system. Establish and regulate the basic pension system for employees and gradually form the endowment insurance system integrated with basic endowment insurance, social endowment insurance and personal saving. While improving the minimum living security system for urban residents, speed up the establishment of the minimum living security system for rural residents. Speed up the promotion of the basic medical insurance system for urban and rural residence and gradually form the new rural cooperative medical care system and health service system. Third, establish and regulate the fair public service system and strengthen the income regulation. Fourth, establish and regulate the medical and health system, increase the input in the health cause, establish and regulate the public health and epidemic prevention system focusing on disease information, medical cure and prevention and control and enhance the capacity to process and cope with the emergent public health events. Fifth, continue to carry out the population and family planning, stabilized the low birth level, increase the population quality and resolve the problem of the gender ratio in birth population. Sixth, practically maintain the social security and stability. Strengthen further the safe production, perfect the mechanism, increase the input, define responsibility, rigorously enforce the management and establish the long-acting disaster emergency mechanism. Carry out the integrated governance of public security and maintain social order and social stability. Seven, strengthen the construction of socialist democratic, legal and spiritual civilization. Energetically implement the governance of the province by laws and put forth effort to create an excellent legal environment. Improve the democratic institution and raise the national democratic and legal consciousness. Enhance the construction of mental ethics and social trust, strengthen the cultural market management and construction of different cultural facilities and enrich the spiritual cultural life of the people.
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5.        Major Problems to be Resolved during the “11th Five-year” Period

1) Deepening of the economic system reform

In accordance with the requirement for improvement of the socialist market economic system and in line with resolving the in-depth system obstacles constraining the economic and social development, strengthen further and speed up the reform. Promote further the reforms in and of state-owned enterprises, administrative system, science and technology system, fiscal, taxation and investment system, element market, rural land administration institution, grain and cotton circulation system, employment and social security institution, income allocation institution, social credit institution, etc, with the focus to achieve a breakthrough in the reform of state-owned enterprises and some key fields.

Make great efforts to undertake the reform of state-owned enterprises and state-owned assets supervision and administration system. Focusing on the reform of ownership institution, adopt flexible and diversified modes to implement the open restructuring across regions, industries and ownerships, actively introduce a number of strategic partners, speed up the system reform of enterprises, put forth effort to create a number of trunk enterprises and corporate groups with core competence and practically raise the overall strength and vitality of enterprises. Speed up to establish the modern enterprise institution and improve the corporate governance structure. Actively and properly handle the bankruptcy of enterprises. Speed up to structure the state-owned assets supervision and operation system, establish and improve, at the earliest, the responsibility institution for state-owned assets management, regulate the behavior of the state-owned assets administration and safeguard the position of enterprises as the market subjects.

Energetically develop the non-public economy, support the total access of non-public economy in different fields of economic construction, increase the financial support, establish and perfect the social service system focusing on the credit guarantee and guide the non-public enterprises in establishing the regular operation mechanism and scientific management system.

Accelerate the reform of social security system. According to the province’s economic development level and financial capacity, expand gradually the coverage of the social securities so that more people will enjoy the social securities, define rationally the security level and achieve the sustainability of social securities. While improving further the urban social securities system, actively explore for establishment of the new rural cooperative medical care, minimum living security and endowment assurance institution and graduate form the urban and rural uniformed social security system in the province.

2) Further opening up

According to the requirement for generalized domestic development and opening up to the outside world, during the “11th Five-year” period, it is necessary to implement further the project-driving strategy, speed up the opening up to the outside world and raise the economic openness with stronger consciousness and measures, on the basis of improving the investment environment and with the focus on introducing foreign capital and expanding the export.

(1)      Improve further the investment environment. While carrying out the construction of infrastructures and ecological environment, stress on construction of soft environment for investment. Create the open, fair and just legal, policy and administrative environment, establish and perfect the regular and orderly market setup and credit setup, form a total open service setup with fair benefit, transparent policy, work efficiency and complete assurance and strive to create an excellent environment for investors to come, stay and develop.

(2)      Continually expand the range of opening-up. With the WTO transitional period ending, it is necessary to promote, in an order, the opening in such fields as finance, commerce, communication, resource development, tourism, foreign trade, building, health, education, etc and expand further the cooperation and exchange between regions.

(3)      Continue to strengthen the investment promotion. Insist on the principle for active, rational and effective utilization of foreign capital. Take transnational companies and major projects as the emphasis. Enforce further the position of enterprises as the subject for investment promotion, continuously improve and innovate in the investment promotion modes. Stress on the function of development zones, logistics parks and industrial bases as the carrier of investment promotion and give a full play to the integration effect of Xi’an Export Processing Zone. Speed up to establish the interactive mechanism for economic cooperation and service platform for investment promotion and effectively raise the quality and standard of utilizing foreign capital.

(4)      Expand the export scale. Construct a number of export commodity bases, expand a number of export enterprises and develop a number of well-known and excellent export products. Regulate the export commodity structure and strive to increase the added value of export commodities.

3) "Agriculture, countryside and peasant" (Three Agricultural Problems)

Resolving the "Three Agricultural Problems" is an important task in the “11th Five-year” period, with the focus to resolve such problems as increasing the agricultural integrated productivity, increasing the income of peasants, improving the rural production and living conditions and helping the poor.

Strengthen further agricultural integrated productivity. Implement the strictest rules for farmland protection, stabilize the province’s grain plantation area, raise the unit yield and stabilize the total yield to ensure the grain safety. Strengthen the construction of the farmland irrigation infrastructures, speed up the implementation of the large-scale irrigation zone extension works focusing on water saving, expand the irrigation area in the qualified regions and raise the capacity of resisting the natural disasters. Rely on the progress of agricultural technology to elevate the quality of agricultural products. Reform the promotion setup of agricultural technologies and speed up the construction of the integrated auxiliary system for the agricultural development. Carry out sincerely the rural land contracting policy, respect for and safeguard the peasants’ right of land contracting and independent operation and protect the enthusiasm for production.

According to the guideline of "promote agriculture with industry and develop rural area with urban area" and "grant more, collect less and apply less control", actively widen the channel for peasants to increase income. Continue to excavate the internal income increase potential of agriculture and develop the production of such high-efficiency crops as vegetables, flowers and fruit on the premise of ensuring the stable growth of grains. Place the development of livestock in a more prominent position, raise the scale-based, standardized and centralized feeding level and increase the returns. Speed up to cultivate leading enterprises, promote the industrialized operation of agriculture, energetically develop the processing industry of agricultural and sideline products and realize the added value and efficiency of agricultural products. Positively support the development of service industry relating to the life of peasants, guide the township enterprises to be centralized in small cities and absorb more labor force for employment. Energetically develop the labor service economy and increase the increase of peasants.

Increase the input and improve the production and living conditions in the rural areas as soon as possible. Speed up the construction of rural roads and improve the rural road network. Execute the safe drinking water projects for human being and livestock and resolve the problem of drinking water. Carry out the follow-up construction and management of rural power grid building projects and develop, according to the local conditions, the methane, small power stations, wind power, solar power and other new rural energies. Strengthen further the construction of rural health, education, culture, etc and promote the development of cultural cause. Carry out the help-the-poor development in a down-to-earth manner. Improve further the basic production and living conditions in the poverty-driven areas and raise the self-development capacity. Insist on the development and relief mode of helping the poor and actively and properly handle the help-the-poor and migration work.

4) Resource Environment

Attaching importance to and resolving the problems of water resource shortage and environment pollution is the fundamental requirement for realizing the sustainable development and an urgent task in the “11th Five-year” period.

Inadequate supply of water resources has become a crucial factor that constrains the development in the province, especially in North Shaanxi and Guanzhong. To resolve this problem, the most fundamental thing is to insist on the principle of developing and saving, carrying out the urban and rural integration and caring for both industry and agriculture. Develop in priority the surface water, utilize appropriately the ground water and positively implement the water diversion between rivers. The major tasks during the “11th Five-year” period include: (1) speed up the execution of such water source projects as Wanggedu, Caitugou, Nangoumen, Tingkou, Dongzhuang and other reservoirs and Division of Hanjiang River for Weihe River and Yellow River Division, etc so as to increase the water supply capacity. (2) Enforce the scientific allocation of water resources and ensure the water demand of urban and rural people for livelihood, major industries and major regions. (3) Attach great importance to the efficient utilization of water resources, strengthen the formulation of rules for water saving, promote the water-saving technologies, improve the water bill regulation mechanism, increase the recycling ratio of industrial and livelihood water and construct a water-saving society.

Enforce further the governance of environment pollution. Speed up the construction of municipal sewage and solid waste treatment facilities and increase the “three-waste” treatment ratio so that the urban environment will be obviously improved. Strengthen the guidance of industrial policies, restrict strictly any resource development, industrial and agricultural production failing to comply with the requirements of environment protection and reduce the damage and pollution to the environment. Establish and improve the environment protection and compensation institution and formulate the long-acting mechanism for environment protection. Enforce the legal supervision and administration of environment protection and protect the environment according to the laws.
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6.        Execute a Number of Major Construction Projects

During the “11th Five-year” period, the province shall emphatically implement "six projects with investment of 100 billion each", including 600 particular projects and a total investment of about 800 billion Yuan.

1)       Communications Projects, including: 10 major railway projects such as Xi’an Railway Pivot Expansion, Xi’an-Yanan Railway Expansion, Zhengzhou-Xi’an Passenger Line, Xi’an-Chongqing Double Track, Ankang-Fuhan Double Track, Taiyuan-Zhongwei Double Track, Xi’an-Pingliang Double Track, Xi’an-Yanan Double Track, Yanan-Shenmu Double Track and Regional Line of North Shaanxi Energy Chemical Base; 12 expressways of Huangling- Yanan, Huxian-Yangxian-Mianxian, Wupu-Zizhou-Wangquanliang, Jingbian-Ansai, Xi’an-Zhashui, Shangzhou-Lantian and Yulin-Shanmengjie Phase II, Shangzhou-Jiepai, Zhashui-Ankang and Xianyang-Fengxiangkou, Ankang-Shaanxi & Sichuan Border and Shangzhou-Manchuanguan; additional 3,000kg highways (new and rebuilding) and 20,000kg rural roads; airports: Xi’an Xianyang Airport Phase II and relocation of Yulin, Hanzhong and Yanan airports.

2)       Power Projects, including over 10 thermal power plants with an installed capacity of about 15M KW such as Tongchuan Power Plant, Pucheng Power Plant Phase III, Hancheng No. 2 Power Plant Phase II, Shanchang Mine Coal & Power Integration, Baoji No. 2 Power Plant Phase II, Fuge Qingshuichuan Coal & Power Integration, Yanan Power Plant, Yulin Coal, Power & Aluminum Integration Power Plant, Fugu Miaogoumen, Fugu Duansai Coal & Power Integration, etc, to form the two major thermal power clusters in North Shaanxi and Guanzhong; hydropower stations such as Shuhe River, Xunyang, Baihe River, etc; Guanzhong- North Shaanxi and Maying-Hanzhong Secondary Circuit, Ankang-Xihe-Hanzhong 330KV Transmission and Transformation Project and 1M KV transmission line to East China and Southwest China.

3)       Energy Chemical Projects. Put forth effort to create the important energy alternative region and large-scale coal chemical base, including: for the disposable energy, develop emphatically such coal mines as Huangling 2, Dafosi, Yushuwan, Ningtiaota, Mengcun, etc, with an increase coal productivity of 120 MT/Y, crude oil productivity of 3 MT/Y, natural gas productivity of 3.5 billion m3/y; for the chemical, construct emphatically Anglo-American Coal Chemical Park, Shenhua-Dow Coal Chemical Park, Shenhua 3 MT Coal Liquefaction, CNNCC-YY MOT, Yanzhou Coal 1MT Coal Liquefaction, Yanzhou Coal 2.3MT Methanol, 0.8MT Ethene, Yanan Refinery 3 MT Constant Press Distillation and 2MT Catalytic Cracking Plant, etc.

4)       Equipment manufacturing and hi-tech industry projects: for the equipment manufacturing industry, execute emphatically a number of major projects such as Dornier 328 Regional Aircraft, Shaanxi Automobile Heavy Truck and BYD EV Production Base, Fast Gearbox and Transmission System, XD Ultra-voltage Transmission and Transformation Equipment, etc. For the high-tech industry, emphatically undertake the construction of three major projects: science and technology parks, industrialization of science and technology and private science and technology enterprises. The science and technology parks include Yanliang National Aviation High-tech Industry Base, Shaanxi Modern Traditional Chinese Medicine Base, Extension of Xi’an National Software Industry Base and Xi’an National Software Export Base; projects for industrialization of science and technology include the industrialization of 3G mobile communication network equipment and intelligent base station antenna, industrialization 6” integrated circuit, HFC-134a industrialization, ultra-large screen color kinescope glass screen and new generation displayer and industrialization of titanium material, etc; speed up to cultivate a number of private science technology enterprises such as Topsun, Ginwa, Buchang, Haitian, Konghong, etc.

5)       Tourism and modern logistics projects: establish the modern commercial and trading circulation service system with tourism and modern logistics as the support and with commerce, F & B, recreation and new businesses harmonized. The tourism projects include such natural landscape development projects as Bailuyuan, Yellow River Valley Wet Land, Yulin Desert Forest Park, Hukou Waterfall, such historical cultural landscape projects as Datang Xishi Relics Restoration, Zhou, Qin, Han and Tang History and Culture, Shaanxi Red Tourism Resorts. As for the modern logistics projects, emphatically construct such logistics parks as Xi’an Xianyang International Airport, Xi’an Xinzhu, Changan Yingzhen, Baoji Chencang, such special logistics centers as CMST, CRBM, Northwest Publication, Sanqiao Auto, etc, such chain projects as Xi’an Seastar, Yangling Hengtong, Qinfeng Agriculture, Xi’an Haifu, and extension and construction of wholesale markets such Xi’an Northwest, Xianyang New Sunlight, Xianyang Jingyun, Xi’an Damingong Palace, Taibai Building Materials, etc.

6)       Development projects for agriculture, environment protection and social cause: the agricultural projects include the three major projects such as water conservancy, rural six-small project and agricultural industrialization. The water conservancy projects include the Diversion of Water from Shetou River across Weihe River, Diversion of Hongyan River to Shitou River, Wanggedu Reservoir, Nangoumen Reservoir, Tingkou Reservoir, Lijiahe Reservoir and consolidation for a number of defected and dangerous reservoirs. The rural "six small" project is to mainly strengthen the construction of such projects as agricultural water-efficiency irrigation, drinking water man and livestock, rural methane, village roads, grassland fencing and rural mini power plants. The industrialization projects include Weibei Green Fruit Base, Industrialization of Qinmei Agricultural Kiwi Fruit, Xianyang 100,000-head Qinchuan Beef Production and Processing Base, Hanzhong 500,000/Mu Ecological Tea Garden, etc. In terms of environment protection, stress will be placed on such ecological projects as the integrated governance of Weihe River and Handan River, returning land for farming to forestry, natural forest protection, warping dam and such pollution governance projects as urban NG vaporizing, municipal waste and sewage treatment and atmospheric governance. In terms of social cause, concentrate on the cultural information sharing project, arenas for art performance, basic cultural facilities, digital television, teaching facilities of colleges and universities, vocational education, rural lodging primary and middle schools and public health service system.

Implementation of these major projects shall energetically improve the development environment in the province, promote the development and expansion of advantageous special industries, accelerate the transform of resource advantage to the economic advantage and elevate the overall standard of the service industry so that the weak links will be obviously strengthened and the rapid, healthy and harmonious development of economy and society will be promoted in the province.

 

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