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Chongqing Held Economic Work Conference

The economic work conference was held between December the 16th and 17th in Chongqing, on which the current economic situation was analyzed and the economic work of the next year was studied and deployed.

Mayor Wang Hongju made the planning on economic work for the next year. According to Mayor Wang, the adverse effect of the international environment had spread from the coastal areas to the inland areas, from small- and medium-scale enterprises to large-scale enterprises and from labor-intensive and export-oriented enterprises to enterprises of other kinds. While the external demand shrunk, the purchasing power and willingness of the residents declined. We had to confront pressures both from the international and domestic markets. We should therefore be well prepared for this "Protracted War" to prevent from compounding the predicament due to insufficient estimation and preparation.

Wang said, influenced by the global financial crisis, the economic movement of Chongqing in this year showed high in the beginning and low in the end, yet generally smooth and rapid development. In the next year, Chongqing might usher in the most troublesome year for its economic development since the new century. Therefore, Chongqing's priority lay in improvement of its slowed economic increase to maintain smooth and rapid development. As all factors were considered, it was expected that in the next year Chongqing would see an economic growth of 12%, increase of general budget revenues of local governments of 13%, fixed assets investment of 18%, total retail sales of consumer goods of 15%, total import and export of 12%, foreign direct investment of 15%, actual-used domestic investment of 30% and urban and rural income of more than 10%.

Wang said hard effort should be made to accomplish the above targets. Chongqing should pay attention to the realization of investments and increase of internal demand. The expansion of the scale of investment should be done along with the structural optimization, so as to plan and execute large and good projects at high starting point and with high quality. Wang indicated that Chongqing will realize the investment of RMB 1.5 trillion in the coming three years and of RMB 480 billion in the next single year, including investment in major projects of RMB 150 billion. We should try every means to enlarge and encourage consumption and improve the consumption expectation and willingness of the residents; cultivate consumption focus and expand the consumption scope; improve the environment for consumption and develop various forms for consumption.

Take advantages of this opportunity to promote the structural adjustment and technology innovation.

Wang said we should have a global and strategic vision and conception of the general situation and correctly judge and study changes of international and domestic conditions, to seek for and grasp business opportunities during the crisis and detect and develop favorable factors in adversity; we should improve our predictability, pay close attention to the movement of the financial crisis and understand the changes of prices and capital flow of the bulk products to work out measures for solving the problems and breaking through the restrictions; we should be confident enough to see that there are still important strategic opportunities for out development and that the macro-control of the central government and the policies on stimulation of internal demand will eventually boost the increase of investment and consumption, particularly for the western areas slower in development and with a promising market; we should also be well prepared, take initiatives and work hard to capture some unexpected opportunities in this crisis.

Wang specially stressed that Chongqing would accelerate its pace in building the leading position for opening-up in the next year. He said that Chongqing made a good start in this regard and all sides have been connected and motivated, but our passion can not wan due to this financial crisis and we should not slack off for the previous achievement. While improving the efficiency of investment attraction, we should make efforts to build the two open platforms: Cuntan Bonded Port and New North Zone.
He said the crisis was not so bad after all. The reversed operation of the market had provided us a good chance for self-development. We should promote the structural adjustment and technology innovation, boost the industrial upgrading and change in development manners, further merger and restructuring, encourage association of powerful enterprises and enhance the concentration of industries and efficiency of resource allocation. Wang had also made requirements on balance urban and rural reform and development. He said we should, while striving for approval of the plan on urban and rural comprehensive reform by the central government, endeavor to accelerate the rural reform, develop modern agriculture and promote the interaction of the urban and rural resources. In terms of rural reform, breakthroughs in five aspects, including promoting land management system and forest tenure system in the rural areas, reforming allocation of fiscal funds, strengthening financial assistance in the rural areas and developing rural production and service system, should be made in the next year. We should increase the basic input and stimulate the development of modern agriculture with industries with local characteristics and advantages.
12 policy measures will be stipulated to revitalize the economy
During the deployment of the economic work for the next year, Wang said that though financial revenue and expenditure of the municipal government remained tight, CPC Chongqing Municipal Committee and Chongqing Municipal Government had decided that Chongqing would implement the series of policies of the central government on economic stimulation and civil lift improvement and while continuing to implement 12 adaptability measures launched by the municipal government this year, would increase the financial input of RMB 6 billion, funds for burden alleviation and profit surrender of RMB 2.6 billion and stipulate 12 policy measures.

The policy measures should include: a. more support will be given to the economic development of all districts and counties. The increased amount of municipal proportion of taxes per year of 12 districts and counties, apart from those inhabited by ethnic minority people in the "two wings" areas, will be directly subsidized to each district and county in full amount; The increment of municipal proportion of taxes for featured industrial parks in 14 counties and districts in the outer suburbs of the "One Circle", will be used to directly subsidize each district and county in full amount for infrastructure construction of the parks. b. The special fund for revitalizing the economy will be set up to promote the industrial investment and technological renovation in enterprises to relieve the financing difficulties; c. Export will be stabilized and the enterprises engaged in export of domestic-made automobiles and motorcycles and their components and the mechanical and electrical products will be subsidized for technological renovation; d. Access to Financial and Other Investment Resources of small- and medium-scale enterprises will be increased and 50 small-sum loan companies will be approved to incorporate in the year and 30-50 others in the next year; e. The burden of enterprises will be alleviated; f. enterprises will be encouraged to conduct merger and restructuring and the amount of municipal proportion of taxes concerning merger and restructuring will be returned and such enterprises will be exempted with some other relevant expenses; g. Boost the consumption of housing and the areas of the removed old and dangerous houses will be increased to 4 million square meters; h. Support the construction of commercial facilities. The commercial facilities of districts, counties and townships listed in the plans will be exempted from comprehensive planning fee and urban utility charges; i. The investment of RMB 600 million will be made to maintain and increase the job offers; j. the funds will be implemented to solve the difficulties for employment for junior college and special secondary school graduates; k. the funds will be implemented to assist the migrant workers returning home to get employed and start businesses; l. Improve the social insurance and promote the consuming ability of low- and middle-income families. It is believed that after the above policy measures are implemented, Chongqing can increase its investment and consumption of over RMB 50 billion.

On the conference, people participating in the meeting have carried out discussions on how to respond to the current grim economic situation and how to make progress in economy in the next year. Huang Qifan, member of standing committee of CPC Chongqing Municipal Committee and executive vice mayor of Chongqing municipality, summarized the conference. He said in this Economic Work Conference, the causes of the global financial crisis had been analyzed and the trend for economic development had been forecasted and the economic targets for the next year had been deployed, which gave us a clear insight of the current situation, made us clear about the development direction and helped us build confidence. As the central government gave unprecedented support to Chongqing and for the development of west china and launched for the first time policies on growth maintenance and domestic demand stimulation, and CPC Chongqing Municipal Committee and Chongqing Municipal Government strengthen the regulatory measures to stimulate the economy, it is likely for Chongqing to realize the target for maintaining growth in the next year. The whole city should implement and realize the spirit of this economic conference earnestly and be confident and make all efforts to realize targets for economic development in the next year.

Officials of Chongqing Municipality including He Shizhong, Ma Zhengqi, Xu Jingye, Fan Zhaobing, Chen Cungen, Weng Jieming, Wu Zhenglong, Liang Dongchun, Hu Jiankang, Tong Xiaoping, Xie Xiaojun, Zhou Mubing, Tan Qiwei, Liu Xuepu, Ling Yueming, Wu Jianong, Sun Shenlin, CPC Committee Secretary of the Chongqing University Ou Keping and its president Li Xiaohong and president of the Chang'an Group Xu Liuping, as well as over 300 heads and leaders from the CPC Committee of all districts and counties (autonomous counties) and governments at all levels, authorities and units at the municipal level, some large-scale enterprises of Chongqing under the central management, state-owned large-scale enterprises at municipal level, were present in the conference.

   

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