Mr. Liu Hanyuan makes proposals at the Two Sessions

The fourth meeting of the Eleventh National People s Congress and the fourth meeting of the Eleventh CPPCC National Committee were respectively held on March 5, 2011 and March 3 in Beijing. Standing committee member of the CPPCC, and board chairman of Tongwei group Mr. Liu Hanyuan attended the Sessions and made proposals on issues of new energy industry development, rural urbanization construction urban and rural development acceleration, China s economy update and transition through guidance of consumption concept and module transition, as well as incorporating the idea of invigorating China via quality superiority into the national strategy and the twelfth five year plan.

During the discussion panel, Standing Committee member of the Political Bureau of the CPC Central Committee, vice premier of the State Council, Li Keqiang listened to proposals include Mr. Liu s invigorating China via quality into the national strategy and the twelfth five year plan, and gave high credit.

When joining panel discussions with members from China Democratic National Construction Association and Federation of Industry and Commerce, Mr. Li said, the remarkable achievements of China s economic and social development come from the efforts of all Chinese people from different nationalities, as well as parties including China Democratic National Construction Association and Federation of Industry and Commerce. During the 12th five year plan period or even later, enterprises comprise the main body of module transition and structure adjustment. We need to further deepen revolution, and make innovations on our system and mechanism, stick to and improve our basic economic system. It is necessary to support and lead the development of non-public enterprises to form equal competition among all economy with diverse forms of ownership for a new pattern. It is crucial to support small and medium sized enterprises, expand private investment domain, and encourage non-public enterprise for industrial structure optimization and update.

Over 100 major media interviewed Mr. Liu s or reported his proposals on accelerating new energy industry development, balancing urban and rural construction process, leading consumption concept and module transition, and ensuring quality construction of the society and food safety.

According to Mr. Liu, in 2010, China became the world s biggest trading entity with its foreign currency reserve reaching almost 3 trillion USD, and the world s second biggest economic power with its economic aggregate reaching almost RMB 39.8 trillion yuan. With the tendency toward economic globalization and multi-polarity of international political and economic pattern, China s economy growth is showing strong momentum. This may result in the reconstruction of world order, It has already caught attention of western developed countries, who started to question China s military, political, energy, food and population threats with global issues of climate, environment, exchange rate, and resources. According to Mr. Liu, this has caused complex international arena for China s economic development and peaceful rise. Therefore, we need the firm resolution to new energy industry development to seek and develop sustainable clean energy, which can fundamentally resolve the problems of China and the world s energy crisis and carbon dioxide emission. This is of crucial realistic significance and far-reaching strategic security significance to China, whose economy and energy consumption are both rapidly increasing, yet whose resource per capita stays far below the global average. We need to seize the opportunity and the commanding height of the new round economic development of solar PV.

On the issue of China s upgrading and transformation as a manufacturing country , Mr. Liu pointed out, the improvements in China s industry overall quality, quantity and management level of big and medium sized enterprises, as well as the increase of the people s material and cultural demands, have effectively supported China s economic and social steadfast development. We cannot, however, neglect the fact that China s improvements in overall quality level still lags behind its growth of economic scale. The main reason lies in the lack of corporate inner drive in quality improvement. Therefore, the top priority is quality improvement. About this, Mr. Liu suggested to: 1. incorporate the idea of invigorating China via quality superiority into the national strategy and the twelfth five year plan; 2.promote China s export upgrading and transformation via the strategy of invigorating China via quality superiority ; 3. Strengthen the social awareness and concept of quality.

In terms of China s balance of urban and rural construction, Mr. Liu holds that it is unrealistic to just depend on the government s limited financial investment to accelerate rural urbanization. Presently, the economic status situation of most counties in China is far from being satisfactory, with small scaled, short chained, low level, and weak industrial support, which can hardly promote the effective investment of infrastructure and full aggregation of human, financial and material resources. The leading ability of cities and towns is weak. Mr. Liu thinks, rural urbanization should be based on local resource advantages, and focus on urban and rural related industries. It is also necessary to foster industries with unique rural twist, to link local agricultural production and agrifood circulation with domestic and global circulation via reasonable industrial policy guidance and the support to local leading companies. It is necessary to create employment by enterprises and the radiation of industrial chain, so as to fundamentally solve the problems of farmers independent production and the dislocation of market supply and demand during the urbanization process. By this way, the radiation and feeding effects of rural economy may be strengthened.

Lastly, Mr. Liu also made proposals on the fact of incompatibility between traditional consumption concept and module, and China s fast increasing growth of total retail sales of consumer goods. Statistically, China s total retail sales of consumer goods in 2010 reached 15.45 trillion yuan, which was 18.4% higher than that of 2009. Meanwhile, the quality of national consumption is increasing with greater consumption ability, quality, and demand level. It is crucial to renew the traditional consumption concept with reasonable and diversified consumption. There is, however, still a lot to be improved in terms of national consumption concept, due to factors from the past system and mechanism. Mr. Liu suggested the country to provide proper guidance on the consumption concept and module transition.