The 11th Five Year Programme-Part Three

Part Three Development Focus and Policy Orientation

I. To Transform Economic Growth Mode

To achieve rapid and sound development of the capital city's economy, we should speed up the adjustment to the economic structure substantially and transform the growth mode. We should strive to realize the coordination of the speed, structure, quality and efficiency of economic growth by increasing industrial and technologic competence, magnifying scale and concentration effects, and promoting resource saving and efficient utilization.

(I).To promote industrial optimization and upgrading

The general direction and requirements are: to develop high-end industries; to prioritize the modern service industry; to vigorously push forward new and high-tech industries; to moderately develop modern manufacturing industry and to substantially upgrade modern agriculture with metropolitan characteristics.

Accelerate the development of modern service industry. We should be active in undertaking the shift towards an international service industry, paying attention to the knowledge-based service industry and enhance service functions and radiation. It is also important to steadily upgrade such pillar industries with our comparative advantages in finance, culture and real estate and to nurture industries showing great potential, for example tourism, convention and exhibition industries and modern logistics, etc. Key areas include the following:

Financial industry. We should keep optimizing the financial development environment, build a multi-layer financial market system with rich functions, adequate and orderly competition and effective regulation, and promote innovation of financial products and services. Measures should be taken to attract various types of financial institutions to Beijing, such as domestic and foreign banks, securities, insurers, trust companies and funds, etc.

Efforts should be made to advance transactions of property rights and the development of the venture capital market. It is also important to bring into play the concentration and radiation effects of financial resources and to expand regional exchanges and cooperation in the industry.

Cultural and creative industry.Starting from system and policy improvements, we can accelerate the development of cultural and creative industries by formulating local regulations and preferential policies in support of the industry, establish favourable policy and legal environment so as to build the industrial pillar of the capital's economy.

We should integrate premium resources and actively develop a series of competitive cultural corporation groups and industrial clusters; make the advantageous industries bigger and stronger, such as performances, publications, broadcasting, film, TV and advertising, etc; continue to develop emerging industries, for example, creative, animation, network media and network gaming, etc; create a batch of excellent cultural products and famous cultural brands, which are first-rate and rich in Beijing flavor; gradually build Beijing into a national centre for cultural performances, publications, copyright trade, film and TV production and transactions, animation and network gaming, cultural conventions and exhibitions, and antique and art articles transactions.

We should seize the opportunity of Olympics and vigorously develop the sports industry, fitness, competitive sports performance, sports lottery.

Column III: Creative industry
Creative industry is also called innovative industry or creative economy. This industry is based on individual's creativity, skill and attempts to create wealth and employment opportunities through intellectual property rights. It covers such sectors as advertisement, architecture, art and antiques, cartoons, film, television, music, performing art, publishing, communication technology services. Currently, quite a number of developed countries and regions have promulgated policies to promote the development of the creative industry, regarding it as an important engine for economic growth and employment in the future. Endowed with striking advantages in developing the creative industry, Beijing will try to push forward this industry by strengthening organizational coordination and working out relevant guiding and preferential policies, so that it serves as a new drive for the local economic growth.

Tourism, conventions and exhibitions. We should take the opportunity of the Olympic Games to exalt the level of the tourism, conventions and exhibitions industry significantly and to make Beijing a world-leading tourist destination and centre of international conferences and exhibitions. In addition, traditional cultural sightseeing and tours should be consolidated, focusing on the development of high-end tourism products, such as modern entertainment, commercial conventions and exhibitions, sports and leisure.

We should do a good job in constructing national conference centers and the (new) ChinaInternationalExhibitionCenter, etc. Efforts should be continued to upgrade the brand conference and exhibition events with international influence in the science, technology, car, cultural industries.

Real estate industry. We should guide the real estate industry to develop in a sound manner, following the targets of ? steady development, optimized structure and stable price.? Efforts should be made to keep land supply and construction scale in good control, and ordinary apartment should be majority in supply market to develop resource-saving buildings, and create brand name of real estate.

Moreover, we should vigorously develop a secondary housing market, regulate lease markets and optimize market supply system. The layout of real estate development should be adjusted, development scale in urban central areas should be optimized and well-controlled, shifting the focus to new and southern towns, such as Tongzhou, Shunyi, Daxing and Changping; in principle, no new projects of commodity houses within the Second-Ring will be approved; within the Third-Ring Road, large-scale commercial facility construction will be strictly controlled; within the Fourth-Ring Road except for the southern part of the city, no new affordable housing projects will be developed.

Modern logistics.We should lay emphasis on logistic resource integration and efficiency improvement. Key projects include ShunyiAirport, TongzhouMajuBridge, Fengtai Wangzuo, Changping Machikou and other public logistic parks. We will try to create a logistic infrastructure pattern with logistic bases, comprehensive logistic centres and professional distribution centers complementing and coordinating with each other.

We will make great efforts to develop industrial logistics, actively promote international logistics and air transportation logistics, and optimize urban distribution logistics. With IT and supply chain management technologies at the core, we will strive to make logistic enterprises more professional, information-oriented and socialized so that a batch of key enterprises will be actively forestered.

Commercial trade and related services. We will work to upgrade traditional service industry by utilizing modern management methods and information technologies. Efforts should be made to promote modern circulation methods and new models, such as chains, convenience stores and specialized supermarkets, to speed up the development of community commerce and suburban, village and town commerce, and to construct modern circulation networks in the urban and rural areas.

Moreover, the existing wholesale and retail markets should be regulated to transform and upgrade tangible markets. In addition, various world famous intermediary agencies of commercial services, like accounting, lawyer's, consulting and appraisal services should be encouraged to help establish a commerce serving system which is locally based and facing the country.

Vigorously develop new and high-tech industry.The key lies in upgrading the indigenous innovation capacity and general competitiveness of the industry. Focus should be given to such high-tech service industries as software, R&D and information services, and new and high-tech manufacturing, mainly electronic and information industries and biological industries.

Software industry.The second phase of ZhongguancunSoftwarePark, YongyouSoftwarePark and other software bases will be constructed at a quicker speed. Driven by system integration, software development will be focused on key technologies, such as embedded software, middleware, information security and digital content. We should rely on the national software export bases to expand outsourcing and continue to support homegrown software by means of government measure such as procurement.

R&D industry.With the amelioration of public technology support and service support as the cornerstone, we work to establish professional R&D bases within a first-rate environment, to attract multinationals and large domestic companies to set up R&D centres and decision-making and operation centres, and to encourage the development of science and technology intermediaries in testing and consulting.

Information service.We should vigorously develop software services, value-added information and network services; 3-G mobile communications, digital TV, next-generation Internet and other key technological applications are our focuses; we should further strengthen the development and utilization of information resources, promote e-business, online education and training, digital entertainment and other network service, as well as new types of information service.

Efforts should be made to build Beijing into the national centre for information services, a major hub for international information service providers and one of the most important telecom pivots in the Asia-Pacific region.

Mobile communications.Taking the opportunity for industrialization of new-generation technology standards, we will support R&D for key technology standards and industrialization of self-owned core technology programs, with the focus on 3G standards-based systems and mobile terminal designs to promote the upgrading of the mobile communications industry.

Computer and network. We will encourage cross-country operation of large computer companies, industrialization of 3C products based on IGRS standards and R&D and industrialization of powerful computers. We will make efforts to consolidate the industrial alliance of the next-generation Internet, to build a demonstrative platform for application and build the industrial chain of the IPv6-based next-generation Internet.

Column IX 3G and 3C

3G: Short for 3rd Generation, referring to the third generation of mobile communications. The first generation which came out in 1995 digitalized only the vocal signals, while functions of receiving website and E-mail data were added to the second generation between 1996 and 1997. The third generation promises faster communications services in regard to sound and data transmission.

It provides multi-media service like image processing, music, visual flow, also multiple information services including webpage visiting, telephone meeting, e-commerce. Therefore, 3G is named after the First Generation (1G)?aModule Mobile, and the Second Generation (2G)?aGSM, CDMA and other Digital Mobile.

3C: Refers to the combination of Computer, Communication and Consumer Electronics, which is also called Information Solutions.

Integrated circuits (IC). We strive to accelerate the construction of a national IC industrial park, to integrate IC industrial resources with designing and testing as the focus, alongside manufacturing support, an improvement in the industrial chain of semiconductor materials and IC designing, manufacturing, encapsulation and testing.

Photoelectric display. We will rely on flagship enterprises to drive the industrial chain development of photoelectric displays and encourage cooperation in innovation and technology R&D between flagship enterprises, small and medium enterprises and research institutes in order to form advanced industrial clusters of photoelectric displays. In particular LCD, OLED and LED display products development and industrial bases construction will be substantially supported.

Modern biological industry.We should conduct active research on biological engineering technology and new products, such as gene engineering, biological chip, and animal vaccine. Efforts should also be made to speed up the development of biological medicine, biological agriculture and biological environment protection.

Apart from the above-mentioned industries, we should actively develop potential industries, for instance, digital TV, automobile electronics, new materials and new energy.

Moderate development of modern manufacturing.We should speed up our pace in developing technologies, brand products, flagship companies and pillar industrial clusters with self-owned intellectual property to form a well-linked industrial pattern of ? flagship companies-industrial chain-----industrial cluster.? We should give full play to the industrial concentration effects and comparative advantages of regions, increase the overall industrial competence and competitiveness. Key areas of development include the following:

Automobile industry. From the perspective of system improvements and resource consolidation, we should speed up restructuring of the automobile industry, with a focus on cars, commercial vehicles and dual-purpose off-road vehicles. Whole car development can drive the progress of relevant industries, such as car parts, components, accessory manufacturing and service trade. We stress innovation, brand building, introduction and absorption of sophisticated and key technologies to enhance the overall competitiveness.

Equipment manufacturing. Focused on system integration, we make efforts to accelerate R&D and industrialization of field bus intelligent instruments and control system and give special support to electricity generation, transmission and substation equipment, numerical-control machine tools, engineering mechanics, printing mechanics and other advanced equipment manufacturing.

New petrochemical materials. We will actively promote such major projects as Yanshan Petrochemical 10-million-ton oil refining system transformation and third-round ethane device transformation. By relying on Yanshan Petrochemical Company, we will focus on new petrochemical materials and fine chemical manufacturing with light pollution, small resource consumption and high added value.

Medicine industry. We will focus on Traditional Chinese Medicine (TCM) and natural medicines and modernization of TCM production. We will make efforts to enhance creation and R&D of chemical medicines, to set up an industrial pattern featuring coordinated development of chemical medicine, TCM, biological medicine and medical devices and to build first-class national base for biological engineering and new medicine industries.

City industry. We focus on cultural, educational and sports articles, garment and textiles, food and beverage, packaging and printing, arts and crafts in order to create famous and excellent brands to meet the demands of local consumers.

To expand and optimize the construction industry. We should further technological progress, optimize industrial structure and strengthen the overall competence and competitiveness of the industry. Moreover, we should consolidate the industry's leading position in China and on the basis of increasing its share in the domestic market, implement the development strategy of ? go global? and enhance its capacity of service export.

To promote industrialized operation of agriculture. We will stick to the direction of modern agriculture with metropolitan characteristics, mainly focusing on seeds fostering, processing and tourism and leisure agriculture. We will endeavor to make flagship companies bigger and stronger and promote agriculture to develop on a larger scale and in a more intensive way.

We should make use of the capital's advantages in agricultural technologies and the scale of market, to create a regional agricultural chain. Our priorities are non-polluting, green, organic agricultural products and customized high-end products. We should make efforts to build famous and excellent brands, improve added value of agricultural products and comparative benefits of agriculture.

To adjust industries not compliant with the capital's function definition. We should redouble our efforts to phase out the industries with high energy, material consumption, high pollution and low added value and to transform the existing disadvantageous industries to industries with advantages. In addition, we should strictly control and eliminate industries based on resource exploitation and obsolete techniques and equipment.

Efforts should be concentrated on the following work: relocation of Shougang group; construction of Caofeidian New Steelworks; implementation of Shunyi Cold Rolled Steel Sheet project; relocation of plants like Coking Plant; restructuring the construction materials sector in the whole municipality, and shutting down of enterprises causing serious environmental pollution.

(II). To guide rational distribution of industries

Our efforts should focus on the following: to make intensive use of resources and protect the environment; to foster new growth poles; to regulate the order of regional competition; to strengthen planning and policy guidance in accordance with city development strategy and function definition of districts and counties; to promote relative concentration of key industries and newly built projects and to gradually form an industrial layout in line with city functions, resources and environment.

Promote rational division of labor and diversified development of different districts and counties. Our focus will include the following: to optimize and improve the core functional areas of the capital, especially finance, culture, tourism and other modern service industries; to transform and upgrade the traditional service industry; to restrict simple scale expansion of general commercial facilities and real estate development; to gradually close and transform those markets in downtown areas which have traffic and environment impact, and exist great security accident potential.

. Moreover, we should upgrade extended city functions, in particular, science, technology, education, culture, sports, commercial services, modern logistics, information services and other modern service and high-tech industries. Other efforts include the following: to expand the scale of a headquarters economy; to continue relocation of disadvantageous industries; to give special attention to new developed areas, modern manufacturing and service industries supporting life and production; to strictly protect basic farmland; to develop high-end agricultural products and metropolitan agriculture; to moderately develop ecological conservation zones; to stress the development of environmentally friendly industries and city industries, such as ecological agriculture, special trees and fruits, tourism and leisure, and metropolitan industry; to gradually shift resource exploitation-based industries that adversely affect ecology and water conservation and to give powerful support to the industrial transformation in Fangshan, Mentougou District and other areas after the shutdown of coal mines.

Construct the functional area of high-end industries that lead to future development. Efforts will be made in the following areas: to strengthen Zhongguancun Science Park and drive intensive development of new and high technology R&D and knowledge service industry, to speed up the building of Beijing Economic and Technology Development Zone and form a world leading industrial base dominated by high-tech manufacturing and productive service; to develop the functional area of the aviation economy and aviation industry to improve the level of conventions, exhibitions and logistics; to well establish the CBD, Olympics central area and financial street to promote cluster development of the high-end service industry; to attract domestic and foreign investment to the functional areas through preferential policies; to arrange some municipal-level key projects in favor of the functional areas and support some district-level key projects to concentrate in the functional areas that can become a new growth pole that represents the functional advantages of the capital and with the greatest economic vitality, market competitiveness and industrial radiating power.

Graph 3 Growth estimates of six high-end industry functional areas during the 11th Five-year Plan

To foster and develop specialized agglomeration areas. We will focus on functional development of special agglomeration areas to promote the scale and brands of relevant service industries, such as Wangfujin and Xidan modern trade agglomeration areas, the Chang'an Avenue cultural performance agglomeration area, Lama Temple creative industry base, Xuannan cultural, media, folk custom and tourism agglomeration area, Longtan Lake sports industry agglomeration area, Daxing new media industrial base, Fangshan new material industrial agglomeration area, Daxing biological medicine base and high-end manuafacturing clusters.

We should plan the land use of the Shougang group, develop cultural, entertainment and high-tech industries, promote the development of Shijingshan comprehensive service centre and realize new breakthroughs in the process of adjustment.

To guide the industry to develop in an outward radiating manner. Our focuses include the following: along the three lines of Beijing-Tangshan, Beijing-Tianjin and Beijing-Shijiazhuang; industrial base development and relevant infrastructure, R&D, core manufacturing, marketing and other key links; modern manufacturing, tourism and leisure industry; outward extension of the metropolitan agriculture to form a cross-regional industrial belt.

To adjust and optimize industrial layout. Efforts should be made in the following aspects: to give full play to the market in resource allocation; to enhance planning restraint and policy guidance; to properly handle the relationship between key industries and general industries; to stress core project distribution in manufacturing, circulation and other field; to properly handle the relationship between newly-built configuration and existing adjustment, to concentrate new industrial projects in development zones, industrial parks and key functional areas; to play the guiding role of industrial development funds, to give support to the industrial parks in building infrastructure, improving service systems, creating major project industrial chains and strengthening the absorbing and driving capacity.

(III). To actively develop a recycling economy

Following the principles of ? reduction, recycle and resource-oriented? , we base ourselves on resource saving and recycling to make effective use of resources. Efforts should be made to nurture recycling industries and speed up three systems of recycling production, green consumption and comprehensive guarantees through the exemplary role of pilot projects.

Column V: Circular economy

Circular economy takes ? reduction, recycle and resource-orientated? as its principle. It focuses on the enhancement of resource efficiency and is characterized by low inputs, low consumption, low emissions and high efficiency---an economic growth model that conforms to the concept of sustainable development.

It is also called resource circulation economy. The so-called ? reduction? means to minimize resource consumption and waste discharge in the process of production and service supplies; ? recycle? means to make use of abandoned products or dismantled parts through rehabilitation, renovation and remanufacturing so as to extend a product's life; ? resource-oriented? means to transform as much waste into resources as possible so as to make waste treasured and harmful materials useful.

To establish a selection and evaluation mechanism for industrial projects. Work in this respect include the following: to implement comprehensive evaluation of industrial projects; to improve the evaluation indicator system of resource evaluation and environmental protection for project selection; to include land investment intensity, input/output efficiency, water consumption, energy consumption, environmental requirements and other indicators as major consideration in project reviews and land provision; to strictly control the projects with high consumption, high emission and low benefits; and to improve the overall utilization of resources.

To promote the system building of a recycling economy. Work in this respect include the following: to establish and optimize resource consumption management systems with more emphasis on key industries; to actively promote reducing consumption of natural resources through energy, water, land and material saving; to create a clean production review system for key industries, and strengthen pollution prevention and the whole process control for metallurgy, chemical, construction materials, power and other key industries; to enhance the development and extension of products in line with the requirements of a recycling economy, including energy and land-saving houses, energy-saving and environmentally friendly automobiles, green illumination equipment, water-saving household products and non-polluting agricultural products, and to guide consumption of these products; to promote city garbage categarised separation and processing; to improve the system of recycling resources and reutilization and industrialization of various waste and old resources.

Demonstration projects of the recycling economy. We adhere to the principle of organization by government, guidance by demonstration, fully implementation. Promote a demonstration of recycling economy in some districts and counties; foster a batch of demonstrative sectors, industrial parks and some flagship enterprises.

Efforts will be focused on the following: to build a series of streets with green illumination, energy-saving and environmentally friendly architecture; projects of reclaimed water and flood utilization; to make good use of pilot projects for recycling resources, in particular exemplary projects of reclamation and disposal of waste and old resources, disposal of hazardous waste, straw-generated recycling gas, integrated use of domestic waste, and to maximize the drive to the of a recycling economy.

To advocate green consumption. We strongly advocate resource saving, healthy and wise production and consumption, and raising social awareness in resource saving and environmental protection. Moreover, we promote the government procurement of green products, encourage green power, products with energy labels, energy and water saving certificates, environmental labels, and green, organic labels and to reduce excessive packaging and throwaway products and to guide consumption behavior of the whole society.

To intensify the guidance and guarantee of policies and regulations. Efforts should be made as follows: to make active exploration to build an evaluation indicator and statistics system for the recycling economy to speed up working out policies in favour of developments of recycling economy, optimize regulation and standard system so that government guidance and regulation is strengthened; to involve various types of intermediary agencies and institutes of research and higher education to improve information and technology counseling systems for the recycling economy; to increase government input in R&D and industrialization of exemplary projects of common features and key technologies of the recycling economy; to enhance technological support for the recycling economy, to formulate policies and measures to promote integrated use of resources and to speed up legislation so that legal obligations of manufacturers, vendors, recyclers and reuse units and customers can be clearly defined.

Graph 4 Cyclic economy

(IV). To create a sound environment for development

We should shift the focus of government economic management to serving and creating a sound environment for market players through system and policy innovation as well as service efficiency improvement. A satisfactory, more creative and easy environment for enterprises will promote the development and transformation of the capital's advantageous resources and help to release its potential.

To further open the market and promote factor inflow. We are resolute to break monopolies, straighten out and eliminate restrictive regulations and practices that impede development, especially in education, medical care and cultural services, to relax control over market access. In addition, we should improve the project management system, combine verification and approval systems, perfect ? one-stop? service, execute notification and commitment systems and build a more standardized and transparent management and service system.

Apart from capital attractions, we should give more emphasis to introducing technology, management, talent and the improvement of the production and operation environment. Moreover, we should strengthen the rule of law and credit cultivation to make investors more reassured and satisfied.

To innovate policy support system. Efforts in this respect include: the consolidation of supporting funds; to innovate guiding methods; to play leverage effects of capital; to support the development of key industries through guiding funds, seed capital, guarantees, subsidies on interest payments, stock purchases and other methods; to assist companies in technological R&D, brand promotion and distribution system building; to improve the project evaluation system featuring ? public collection, expert review and government decision;? and to create a fair and orderly market environment for various investors.

To improve supporting facilities. We should increase input in infrastructure and social public service facilities in major functional areas, development zones and industrial parks, improve infrastructure and life service conditions of water, electricity, gas, heat and roads in key areas, and strengthen supporting systems in industrial parks to make them more attractive.

To perfect business incubator service system. We should rely on the service halls of districts and counties and grass-root government departments, consolidate the functions, extend service and build business incubator service centres. We should shift the focus from project management services to business incubator services to provide companies and individuals with such services as technical guidance and information counseling. Moreover, we focus on policy publicity and information disclosure to provide companies and the public with the proper anticipation and right guidance.

II. To Expand Social Public Service

During the Eleventh Five-Year Plan, we should set up a stable growth mechanism for public financing in social public service; to improve the service system; to innovate service models; to raise service efficiency; to promote equalization in basic social public services so that a social public service system, which covers both urban and rural areas with rational distribution, can be created.

Column VI: Social public services and classifications

To organize and provide social public services is the government's vital responsibility and also an important method to maintain social equality. As services are provided for non-profit and profit purposes to different degrees, social public services mainly fall into two categories, namely, basic social public services and non-basic social public services.

While the latter is further divided into mixed public services and profit-making public services. The government is the provider of basic public services, the initiator of non-basic public services, and also the planner and manager of the whole public service. At the current stage, basic public services mainly include compulsory education, public sanitation, non-profit cultures, public health building, basic social security, social aids, the maintenance of public security.

All these are provided by the government to all citizens to guarantee their basic social rights and essential welfare standard, in an equal way in accordance with laws and regulations.

(I). To prioritize the development of education undertakings

Tasks in education include: to implement the capital strategy of educational development; to promote quality-based education in an all-round way; to coordinate educational resources; to deepen reforms in educational system; to accelerate educational restructuring; to develop fundamental education of high standard and quality to actively develop vocational education and training, and to improve the quality of higher education; to stimulate healthy and balanced development of various types of education; to construct a modern system of national education; and to gradually achieve transformation from quantity to quality, from scale to structure optimization and from school education to lifelong education.

Basic education. Efforts should be made in the following aspects: to build a system that provides financial preferences for compulsory education and rural basic education; to practice ? two exemptions and one grant? for nine-year compulsory education in the whole municipality, namely total exemption of incidental expenses and text books expenses and grants for poor students; to adjust the layout of primary and high schools; to implement new condition standardization for running primary and high schools; to organize excellent teachers from urban areas and encourage college graduates to assist and teach in rural areas; to enhance the overall competence of teachers; to improve rural school conditions; to support balanced development of compulsory basic education; to accelerate curriculum reforms in basic education; to perfect teaching quality monitoring and evaluation system; to adjust the educational structure for senior high schools; to strengthen the supply capacity of premium educational resources and to safeguard the rights and interests in education of children whose parents are migrate workers in Beijing.

Vocational education. Efforts in vocational education include: powerful planning to coordinate the development of middle and high-level vocational education to attach important to both academic and professional skills certificate, to combine before and on-the-job training, to vigorously develop vocational education; to advance various types of vocational education in accordance with market demands; to provide special support for vocational education that meets the requirements of the capital's industrial development; enhance the employment skills of new school-graduates and farmers so that there will be additional of 500,000 persons with professional skills; to encourage private-run middle and high-level vocational schools; to construct a series of high-level practice and training bases and demonstrative schools; to raise the level and quality of vocational colleges and schools oriented to employment; to follow market demands, enhance training for farmers, enterprise employees and migrant businessmen and workers in Beijing in order to improve their competence and quality.

Higher education. Efforts should be made in the following aspects: to emphasize competence-based education; to optimize structure and layout; to stabilize the scale of undergraduates and junior college students; to develop postgraduate and international student education in an orderly way. During the Eleventh Five-Year Program, to stabilize the enrollment rate of college entrance examinations to around 70 percent and raise the gross enrollment rate of higher education to around 60 percent; to strengthen cooperation with national universities and colleges in Beijing; to promote the building of world class universities, high-level universities, and key disciplines; to expand foreign exchanges and cooperation; to improve the quality, level and performance of higher education; to deepen system reforms; to speed up distribution adjustment and a good job in building college parks in Shahe, Liangxiang County.

Lifelong education. We should conduct various types of extensive training and develop multiple forms of education, such as adult education, continued education, community education and modern remote education. We should also strive to build a lifelong education system to provide rich learning resources and a convenient learning environment, to promote the overall quality of residents.

(II). To intensify medical and health services

Focused on improving the health of citizens in a comprehensive way, we should make efforts to perfect the public health and basic medical service system, ameliorate medical equipment, enhance the development of key disciplines and raise the technical and service level. Moreover, we should strengthen grass-roots health development and provide fair, quality, convenient and affordable medical heath services.

Basic medical services. Efforts in this respect include: deepening reforms in medical health system, to create a general and specialized dual-dimensional system covering community health service agencies and large and mid-sized regional comprehensive hospitals and special discipline hospitals; to improve the basic medical service capacity of communities; to vigorously develop traditional Chinese medicine undertakings; to gradually address the issue of ? difficult and expensive medical treatment;? to rationally plan hospital layout; to give special emphasis to general medical centers in new towns and suburbs; to further open the medical service market; to encourage and guide social capital in building medical service agencies; to tighten regulation over medicine and medical service prices and curb unreasonable increase in medical charges.

Grass-root health development. Efforts in this respect include: coordinating the planning of urban and rural community health service networks; to implement categorization and standardization of health service centers (stations); to strengthen the public health service functions; to realize ? in-community treatment of small illnesses and timely referral in case of serious diseases;? to intensify rural health infrastructure and on-the-job training for medical service backbones; to realize the transformation of all village and town health stations to community health service agencies by 2010; to meet the demands of rural residents for basic medical heath in infrastructure, doctor and nurse number, service capability and to perfect medical assistance systems for the poor for social fairness.

Response system for emergency public health events. Efforts in this respect include: the improvement of Beijing's response system for emergency public health events; to build a regional coordination mechanism for such events; to create a municipal and district or county two-tier centre for emergency command in the principle of local management and unified command; to improve an emergency decision-making command system; to enhance quick response capacity and cure capacities for emergencies and to ensure the life and health safety of urban and rural residents.

Public health systems. Efforts in this respect include: the construction of a unified and effective system for disease prevention and control; to intensify prevention and control over various major contagious diseases; to improve the medical assistance system consisting of three systems of emergency rescue, contagious disease treatment, occupational poisoning and nuclear radiation treatment; to accomplish major projects, such as Youan Hospital expansion, Ditan Hospital relocation; to consolidate public health information resources on epidemic and disease situations, detection and warning systems; to create an integrated network system for public health information; to strengthen supervision over health law enforcement; to tighten check and market surveillance and to improve the capacity of health supervision and law enforcement.

(III). To promote flourishing development of cultural and sports undertakings

Focused on the function as a cultural centre, none-profit-making public cultural and sports undertakings in Beijing should be developed proactively. Public fitness infrastructure and cultural creations should be encouraged to better satisfy people's spiritual and health needs.

Create cultural extracts. Support public, creative culture and excellent folk culture and produce better and more extracts. Promote foreign cultural exchanges and enlarge Beijing's international influence. Enforce cultural market management, seriously fight against piracy and foster a healthy cultural environment and resist molder culture. Establish CCTV Station, National Library Phase II, Beijing TV Station and other large-scale public cultural facilities, while effectively integrating and making full use of the current infrastructure.

Develop mass media. Promote broadcasting and TV program innovation and make efforts to create a suite of popular, famous and influential broadcasting and TV frequencies, channels and brand programs. Proactively promote digital TV, mobile TV, mobile phone TV and other new types of media, integrate cable TV digitalization. Establish rapid response mechanism of major great events and breaking news, enforce internet media management and improve the quality of news releases and publications.

Enrich people's cultural activities. Establish a high profile grass roots cultural advocate, organize interesting and diversified activities; fully utilize urban parks and other public spaces to establish outdoor performance venues. Continue promoting cultural activities in rural areas and communities. Encourage and finance artist groups to have performance in rural areas, factories, mine sites and university campuses. Enforce the establishment of urban and rural cultural activity infrastructure and improve socialized cultural infrastructure management.

Develop sports undertakings. Deeply push forward a nationwide physical fitness campaign, improve citizen's health, and establish a nationwide physical fitness system focused on physical service. The priorities are suburbs and community public infrastructure, so as to substantially upgrade the rural area's physical service capacity.

Take the Olympic Games as a good opportunity to speed up sports mechanism reform and system innovation, make the city a famous international sports centre. Implement an athletics talent foster project and develop a set of international sports projects and excellent to realize excellent performances in the 2008 Olympic Games and other influential international sports events.

(IV). To maintain social public security

To construct an integrated, coordinated and highly efficient Olympic security system and urban public security maintenance system, protect people's lives and properties and create a safe and stable social environment for all citizens.

Maintain city public security. Improve the supervision network and the ability of collecting information, analysis and pre-alarming. Establish a Beijing Police Calling Service Centre and improve rapid responses and the comprehensive controlling capability. Improve the application of urban public security technology, and enforce the establishment of physical and technological defense in key areas and complex locations.

Prevent and treat key break out events. Enhance the cooperation with international anti-terrorist organizations; establish an all round antiterrorism working mechanism, consisting of leadership, information pre-alarming, emergency instruction and field treatment. Improve the reaction work plan and training. Ensure the security of big events during important festivals and prevent any violence or terrorist activities.

Harness comprehensive social security. Enforce the plan and establishment of police stations and police workstations and other basic public security infrastructure and promote police forces transferring to grass-root units; effectively integrate and standardize all security recourses and mobilize the people to perfect a system of patrol, community, police and interior security; continue to support safe street projects (villages and towns) and safe community projects to prevent crime.

(V). To improve public service efficiency

We should push forward the investment and financing system reform of the public service infrastructure construction according to the principle of government leadership, social participation, flexible mechanism and policy incentive. The market mechanism should be introduced and the public service mode should be innovated. Together with optimized allocation and improved service efficiency, it is possible to better satisfy people's diversified needs.

The public service should be managed in different categories. A scientific division of basic public services and non-basic public services should be adopted based on the current situation. Government should take the responsibility of basic public services to ensure the equal access. In addition, guidance and sector regulation are needed to encourage and support market providers of non-basic public services.

Innovate the supply mode of service. In order to increase the efficiency of governmental investment, it is necessary to explore the governmental purchase of services and encourage market providers to carry out basic public services. Providers of non-basic public services should be more diversified.

Through financial subsidy, public and private partnership (PPP mode), concession, subsidy loan interest and policy support, we should guide major bodies to participate in the establishment and operation of public service infrastructures. At the same time we should fully open up the market of profit-making public service, eliminate barriers to capital inflow from the market and create a competitive market with fair and orderly environment for various investors.

Optimize public service infrastructure allocation. We should push forward the equal access and full coverage of compulsory education, public health, public culture, public security and other basic public services; the priorities are rural areas and community public service. According to population distribution, industry layout and district/county function definition, the non-basic public service layout should be comprehensively planed to increase service capacity. Based on the principles of overall planning, optimizing newly built, rational utilization of existing establishment and promoting quality, the public service infrastructure allocation efficiency should be increased. Different public service recourses in one area should be integrated and shared. City centre functions should be further divided. In principle, no more mid- and large-scale education or medical infrastructure should be established or expanded. New infrastructure will be added in new city areas and suburban public services so that the high-grade resources in urban areas can be diffused and transferred orderly.