(Adopted by the Third Plenary Session of the 16th Central Committee of the Communist Party of China on October 14, 2003)

In order to implement the strategic deployment of building a sound socialist market economic system and a more dynamic and open economic system proposed by the 16th National Congress of the Communist Party of China, deepen the reform of the economic system, and promote all-round economic and social development, the third plenary session of the 16th Central Committee discussed a number of major issues regarding the improvement of the socialist market economic system and made the following decisions.

　　1. The situation and tasks faced by my country’s economic system reform

(1) The importance and urgency of deepening economic system reform. Since the Third Plenary Session of the 11th Central Committee of the Communist Party of China started reform and opening up, the 14th National Congress of the Communist Party of China set the goal of reforming the socialist market economic system, and the Third Plenary Session of the 14th Central Committee of the Communist Party of China made relevant decisions, my country's economic system reform has made significant progress in theory and practice. The socialist market economic system has been initially established, the basic economic system has been established with public ownership as the mainstay and multiple ownership economies developing together, and an all-round, wide-ranging, and multi-level opening-up pattern has basically been formed. The continuous deepening of reform has greatly promoted the improvement of social productivity, comprehensive national strength and people's living standards, allowing our country to withstand severe tests such as international economic and financial turmoil, severe domestic natural disasters and major epidemics. At the same time, there are also problems such as irrational economic structure, unresolved distribution relations, slow income growth of farmers, prominent employment conflicts, increasing pressure on resources and environment, and weak overall economic competitiveness. The important reason is that our country is in the primary stage of socialism, the economic system is not yet perfect, and the development of productivity still faces many institutional obstacles. In order to adapt to the international environment in which economic globalization and scientific and technological progress are accelerating, and to adapt to the new situation of building a moderately prosperous society in an all-round way, we must accelerate reforms, further liberate and develop productive forces, and inject strong impetus into economic development and overall social progress.

(2) The goals and tasks of improving the socialist market economic system. In accordance with the requirements of coordinating urban and rural development, coordinating regional development, coordinating economic and social development, coordinating the harmonious development of man and nature, coordinating domestic development and opening up to the outside world, we should give full play to the fundamental role of the market in resource allocation to a greater extent, enhance the vitality and competitiveness of enterprises, improve national macro-control, improve government social management and public service functions, and provide strong institutional guarantees for the comprehensive construction of a moderately prosperous society. The main tasks are: to improve the basic economic system with public ownership as the main body and the common development of multiple ownership economies; to establish a system that is conducive to the gradual change of the urban-rural dual economic structure; to form a mechanism to promote the coordinated development of regional economies; to build a unified, open, competitive and orderly modern market system; to improve the macro-control system, administrative management system and economic and legal system; to improve employment, income distribution and social security systems; to establish a mechanism to promote sustainable economic and social development.

(3) The guiding ideology and principles for deepening the reform of the economic system. Guided by Deng Xiaoping Theory and the important thought of "Three Represents", we must implement the party's basic line, basic program, and basic experience, fully implement the spirit of the 16th National Congress, emancipate the mind, seek truth from facts, and keep pace with the times. Adhere to the reform direction of the socialist market economy and focus on system construction and system innovation. We must persist in respecting the initiative of the masses and give full play to the initiative of both the central and local governments. Persist in correctly handling the relationship between reform, development and stability, and advance reform in a focused and step-by-step manner. Adhere to overall planning and coordination of various interests in the reform process. Adhere to people-oriented, establish a comprehensive, coordinated and sustainable development concept, and promote the all-round development of the economy, society and people.

2. Further consolidate and develop the public economy, encourage, support and guide the development of the non-public economy

(4) Promote multiple effective forms of public ownership. Adhere to the dominant position of public ownership and give play to the leading role of the state-owned economy. Actively promote various effective forms of public ownership and accelerate the adjustment of the layout and structure of the state-owned economy. It is necessary to adapt to the trend of continuous development of economic marketization, further enhance the vitality of the public-owned economy, vigorously develop a mixed-ownership economy in which state-owned capital, collective capital and non-public capital participate, diversify investment entities, and make joint-stock systems the main form of public ownership. Enterprises that need to be controlled by state-owned capital should implement absolute control or relative control according to different situations. Improve the mechanism for the advancement and retreat of state-owned capital and the reasonable flow of state-owned capital, further promote the investment of more state-owned capital into important industries and key areas related to national security and the lifeline of the national economy, and enhance the control of the state-owned economy. State-owned enterprises in other industries and fields will survive and eliminate the fittest in fair market competition through asset reorganization and structural adjustment. Develop large companies and conglomerates with international competitiveness. Continue to liberalize and revitalize state-owned small and medium-sized enterprises. We will deepen the reform of collective enterprises with a focus on clarifying property rights and develop various forms of collective economies.

(5) Vigorously develop and actively guide the non-public economy. The individual, private and other non-public economies are an important force in promoting the development of social productivity in our country. Clean up and revise laws, regulations and policies that restrict the development of the non-public economy and eliminate institutional obstacles. Ease market access and allow non-public capital to enter infrastructure, public utilities and other industries and fields not prohibited by laws and regulations. Non-public enterprises enjoy the same treatment as other enterprises in terms of investment and financing, taxation, land use and foreign w88. Support the development of non-public small and medium-sized enterprises and encourage qualified enterprises to become stronger and larger. Non-publicly owned enterprises must operate in accordance with the law, pay taxes in accordance with regulations, and protect the legitimate rights and interests of employees. Improve services and supervision of non-public enterprises.

(6) Establish and improve a modern property rights system. Property rights are the core and main content of ownership, including various property rights such as property rights, creditor's rights, equity and intellectual property rights. Establishing a modern property rights system with clear ownership, clear rights and responsibilities, strict protection, and smooth circulation is conducive to safeguarding public property rights and consolidating the dominant position of the public economy; it is conducive to protecting private property rights and promoting the development of the non-public economy; it is conducive to the flow and reorganization of various types of capital, and promotes the development of mixed ownership economies; it is conducive to enhancing the motivation of enterprises and the public for entrepreneurship and innovation, and forming a good credit foundation and market order. This is an inherent requirement for improving the basic economic system and an important foundation for building a modern enterprise system. It is necessary to protect all types of property rights in accordance with the law, improve property rights transaction rules and supervision systems, promote the orderly transfer of property rights, and ensure the equal legal status and development rights of all market entities.

3. Improve the state-owned assets management system and deepen the reform of state-owned enterprises

(7) Establish and improve the state-owned assets management and supervision system. Maintain the separation of the government's public management functions and the functions of state-owned asset investors. State-owned assets management agencies perform the investor's responsibilities for authorized supervision of state-owned capital in accordance with the law, safeguard the rights and interests of owners, safeguard the rights enjoyed by enterprises as market entities in accordance with the law, urge enterprises to maintain and increase the value of state-owned capital, and prevent the loss of state-owned assets. Establish a state-owned capital operation budget system and an enterprise performance evaluation system. Actively explore effective forms of supervision and operation of state-owned assets, and improve the authorized operation system. Establish and improve the supervision system for state-owned financial assets, non-operating assets and natural resource assets.

(8) Improve the corporate governance structure of the company. In accordance with the requirements of modern enterprise systems, standardize the rights and responsibilities of the company's shareholders' meeting, board of directors, board of supervisors and operating managers, and improve the appointment system for enterprise leaders. The shareholders' meeting determines the members of the board of directors and the board of supervisors, the board of directors selects the operating managers, and the operating managers exercise their human rights, and forms a check and balance mechanism between the power agencies, decision-making agencies, supervisory agencies and operating managers. The enterprise party organization must play a core role in politics, adapt to the requirements of the company's corporate governance structure, improve the way it functions, support the shareholders' meeting, the board of directors, the board of supervisors and operating managers to exercise their powers in accordance with the law and participate in the decision-making of major corporate issues. It is necessary to adhere to the principle of party management of cadres and combine it with the market-based mechanism for selecting and recruiting enterprise managers. The central and local party committees must strengthen and improve the management of the leadership teams of key state-owned enterprises. We must rely wholeheartedly on the masses of employees, explore effective ways of democratic management of employees under the modern enterprise system, and safeguard the legitimate rights and interests of employees. Continue to promote the transformation of enterprises' operating mechanisms, deepen the reform of labor employment, personnel and income distribution systems, divert and relocate surplus personnel, separate enterprises from social functions, and create a good environment for enterprise reform and development.

(9) Accelerate and improve the reform of monopoly industries. Market access should be relaxed for monopolized industries and a competition mechanism should be introduced. Qualified enterprises should actively promote the diversification of investment entities. Continue to promote and improve the reform and reorganization of telecommunications, electric power, civil aviation and other industries. Accelerate the reform of railways, postal services and urban public utilities, and implement the separation of administration from enterprises, separation of government assets and separation of political affairs. Natural monopoly businesses must be effectively supervised.

4. Deepen rural reform and improve the rural economic system

(10) Improve the rural land system. Household contract management of land is the core of the basic rural management system. It is necessary to stabilize and continuously improve the two-tier management system based on household contract management and combining unified management and decentralization in the long term, and to protect farmers' rights to land contract management in accordance with the law. During the contract period, farmers can transfer their land contract management rights voluntarily and paidly in accordance with the law, improve the transfer methods, and gradually develop moderate-scale operations. Implement the strictest farmland protection system to ensure national food security. In accordance with the principles of protecting farmers' rights and interests and controlling the scale of land acquisition, the land acquisition system should be reformed and land acquisition procedures should be improved. Strictly define public welfare and commercial construction land, land acquisition must comply with the overall land use plan and purpose control, and provide farmers with reasonable compensation in a timely manner.

(11) Improve agricultural social services, agricultural product markets, and support and protection systems for agriculture. Rural collective economic organizations should promote institutional innovation and enhance service functions. Support farmers to develop various forms of rural professional cooperative organizations based on the principles of voluntariness and democracy. Encourage industrial and commercial enterprises to invest in the processing and marketing of agricultural products, actively promote agricultural industrialization, and form an industrial chain integrating scientific research, production, processing, and sales. Deepen the reform of the agricultural science and technology promotion system and supply and marketing cooperatives, and form an agricultural socialization service system with extensive participation of social forces. Improve the agricultural product market system, liberalize the grain purchase market, change indirect subsidies through the circulation link to direct subsidies to farmers, and effectively protect the interests of grain farmers. Increase state support and protection for agriculture, and increase financial investment at all levels in agriculture and rural areas. Strengthen the construction of comprehensive grain production capacity. Improve the poverty alleviation and development mechanism. The state’s new public expenditures on education, health, culture and other public services are mainly used in rural areas. Explore the establishment of a policy-based agricultural insurance system.

(12) Deepen rural tax and fee reform. Rural tax and fee reform is an important measure to reduce the burden on farmers and deepen rural reform. We will improve various policies for rural tax and fee reform pilots, cancel taxes on agricultural specialties, and accelerate comprehensive supporting reforms such as county and township institutions and the rural compulsory education system. On the basis of completing the pilot work, agricultural tax rates will be gradually reduced to effectively reduce the burden on farmers.

(13) Improve the environment for the transfer of rural surplus labor force to employment. The two-way flow of rural surplus labor between urban and rural areas for employment is an important way to increase farmers' income and promote urbanization. Establish and improve the training mechanism for rural labor force, promote the reform and adjustment of township enterprises, vigorously develop the county economy, actively expand rural employment space, cancel restrictive regulations on farmers' employment in cities, and create more employment opportunities for farmers. Gradually unify the urban and rural labor markets, strengthen guidance and management, and form a system of equal employment for urban and rural workers. We will deepen the reform of the household registration system, improve the management of floating population, and guide the smooth and orderly transfer of rural surplus labor force. Accelerate the process of urbanization. The agricultural population with stable jobs and residences in cities can register their household registration at the place of employment or residence in accordance with local regulations, and enjoy the rights and obligations of local residents in accordance with the law.

5. Improve the market system and standardize the market order

(14) Accelerate the construction of a unified national market. Strengthening the unity of the market is an important task in building a modern market system. Vigorously promote the opening of the market internally and externally, accelerate the marketization of factor prices, develop e-commerce, chain operations, logistics and distribution and other modern circulation methods, and promote the free flow and full competition of commodities and various factors across the country. Abolish various market segmentation regulations that hinder fair competition, set up administrative barriers, and exclude foreign products and services, and break industry monopolies and regional blockades. Actively develop professional market intermediary service agencies that are independent, impartial, and standardized in operation, and regulate and develop various industry associations, chambers of commerce, and other self-regulatory organizations in accordance with market-oriented principles. Improve the market supervision system that combines administrative law enforcement, industry self-discipline, public opinion supervision, and mass participation, improve product quality supervision mechanisms, severely crack down on illegal activities such as counterfeit production and sale, commercial fraud, and maintain and improve market order.

(15) Vigorously develop capital and other factor markets. Actively promote the reform, opening up and stable development of the capital market and expand direct financing. Establish a multi-level capital market system, improve the capital market structure, and enrich capital market products. Standardize and develop the main board market, and promote the construction of venture capital and GEM markets. Actively expand the bond market, improve and standardize issuance procedures, and expand the scale of corporate bond issuance. Vigorously develop institutional investors and expand channels for compliant funds to enter the market. Establish a unified and interconnected securities market and improve the trading, registration and settlement system. Accelerate the development of land, technology, labor and other factor markets. Standardize the development of property rights transactions. Actively develop the property, personal insurance and reinsurance markets. Steady development of the futures market.

(16) Establish and improve the social credit system. The formation of a social credit system supported by morality, based on property rights, and protected by law is a necessary condition for building a modern market system and is also the fundamental strategy for regulating the market economic order. To enhance the credit awareness of the whole society, governments, enterprises, institutions and individuals must regard honesty and trustworthiness as their basic code of conduct. Accelerate the construction of corporate and personal credit service systems in accordance with the direction of improving regulations, franchises, commercial operations, and professional services. Establish credit supervision and punishment systems for breach of trust. Gradually open the credit service market.

　　6. Continue to improve macro-control and accelerate the transformation of government functions

(17) Improve the national macro-control system. We will further improve the macro-control system that coordinates national planning, fiscal policy, and monetary policy. The clear macro-control objectives and overall requirements of the national plan are the main basis for formulating fiscal and monetary policies. Fiscal policy must play an important role in promoting economic growth, optimizing structure and adjusting income, and improve the effective implementation of fiscal policy. Monetary policy must play an important role in maintaining currency value stability and aggregate balance, and improve the transmission mechanism of monetary policy. Pay attention to the impact of population aging trends and other factors on social supply and demand. Improve the statistical system, improve the economic operation monitoring system, strengthen the functional complementarity and information sharing of various macroeconomic control departments, and improve the level of macroeconomic control.

(18) Transform the government’s economic management functions. Deepen the reform of the administrative approval system and effectively shift the government's economic management functions to serve market entities and create a good development environment. Strengthen the research and formulation of medium- and long-term plans for national economic and social development, propose major strategies, basic tasks and industrial policies for development, promote the all-round development of the national economy and society, and achieve coordination between economic growth, population, resources and the environment. Strengthen coordination and guidance for regional development, actively promote the development of the western region, effectively leverage the comprehensive advantages of the central region, support the central and western regions in accelerating reform and development, revitalize old industrial bases such as the northeastern region, and encourage the eastern regions with conditions to take the lead in basically realizing modernization. Improve the scientific, democratic, and standardized decision-making procedures for major government economic and social issues, make full use of social intellectual resources and modern information technology, and enhance transparency and public participation.

(19) Deepen the reform of the investment system. Further establish the status of enterprises as investment entities, and implement who invests, who makes decisions, who benefits, and who bears risks. The state only approves major projects related to economic security, environmental resources, and overall layout, as well as government investment projects and restricted projects. The approval system for other projects has been changed to a filing system. It is up to the investment entities to make their own decisions and handle land, resource, environmental protection, safety and other licensing procedures in accordance with the law. For projects that must be approved, it is necessary to rationally divide the central and local authorities, expand the investment decision-making power of large enterprise groups, improve the consultation and demonstration system, reduce links, and improve efficiency. Improve government investment decision-making and project legal person restraint mechanisms. The state mainly guides the direction of social investment through planning and policy guidance, information release and regulated market access, and restrains disorderly competition and blind duplication of construction.

　　7. Improve the fiscal and taxation system and deepen financial reform

(20) Implement tax system reform step by step. Steadily advance tax reform in accordance with the principles of a simplified tax system, a broad tax base, low tax rates, and strict collection and management. Reform the export tax rebate system. Unify the tax system for various types of enterprises. The value-added tax was changed from production-based to consumption-based, and equipment investment was included in the scope of value-added tax deduction. Improve the consumption tax and appropriately expand the tax base. Improve personal income tax and implement a comprehensive and classified personal income tax system. Implement the reform of urban construction taxes and fees. When conditions are met, a unified and standardized property tax will be levied on real estate, and relevant charges will be canceled accordingly. On the premise of unifying tax administration, local governments should be given appropriate tax administration powers. Create conditions to gradually realize the unification of urban and rural tax systems.

(21) Promote the reform of the financial management system. We will improve the public finance system and clarify the fiscal expenditure responsibilities of governments at all levels. We will further improve the transfer payment system and increase financial support for the central and western regions and ethnic minority areas. Deepen the reform of departmental budgets, centralized collection and payment of treasury, government procurement and two-line management reform of revenue and expenditure. We will clean up and standardize administrative charges, and everything that can be included in the budget must be included in budget management. Reform the budget preparation system, improve the checks and balances mechanism for budget preparation and execution, and strengthen audit supervision. Establish a budget performance evaluation system. Implement full-scale budget management and effective monitoring of contingent liabilities. Strengthen the review and supervision of the budget of the government at the corresponding level by the people's congresses at all levels.

(22) Deepen the reform of financial enterprises. Commercial banks, securities companies, insurance companies, trust investment companies, etc. must become modern financial enterprises with sufficient capital, strict internal controls, safe operations, and good services and benefits. Select qualified state-owned commercial banks to implement joint-stock reform, speed up the disposal of non-performing assets, enrich capital, and create conditions for listing. Deepen the reform of policy banks. Improve the operating mechanism of financial asset management companies. Encourage social capital to participate in the restructuring and transformation of small and medium-sized financial institutions. On the premise of strengthening supervision and maintaining sufficient capital, financial enterprises of various ownership types will be steadily developed. Improve the rural financial service system and provide appropriate policy support from the state. Gain experience through pilot projects and gradually transform rural credit cooperatives into local financial enterprises serving rural communities.

(23) Improve the financial control mechanism. Steadily promote the marketization of interest rates, establish and improve an interest rate formation mechanism determined by market supply and demand, and the central bank guides market interest rates through the use of monetary policy tools. Improve the RMB exchange rate formation mechanism and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. On the premise of effectively preventing risks, restrictions on cross-border capital transactions will be relaxed selectively and step by step, and capital account convertibility will be gradually realized. Establish and improve a unified, efficient and safe payment and settlement system. Improve the central bank's financial regulation, establish and improve mechanisms for the organic integration and coordinated development of the money market, capital market, and insurance market, maintain the overall stability of financial operations and financial markets, and prevent systemic risks.

(24) Improve the financial supervision system. Maintain open, fair and orderly competition in the financial market in accordance with the law, effectively prevent and resolve financial risks, and protect the legitimate rights and interests of depositors, investors and insured persons. Improve financial risk monitoring, early warning and disposal mechanisms, and strictly implement the market exit system in accordance with the law. Strengthen financial supervision measures to prevent and combat financial crimes. Enhance the transparency of regulatory information and accept social supervision. Properly handle the relationship between supervision and support for financial innovation, and encourage financial companies to explore effective ways of financial operations. Establish and improve coordination mechanisms among banking, securities, and insurance regulatory agencies as well as with the central bank and financial departments to improve the level of financial supervision.

8. Deepen the reform of foreign-related economic systems and comprehensively improve the level of opening up to the outside world

(25) Improve the institutional guarantees for opening up to the outside world. Accelerate the integration of domestic and foreign w88 in accordance with the requirements of market economy and WTO rules. Form a stable and transparent foreign-related economic management system, create a fair and predictable legal environment, and ensure the autonomy and equal status of all types of enterprises in foreign economic and w88 activities. Manage foreign-related economic activities in accordance with the law, strengthen service and regulatory functions, and further improve the freedom and convenience of w88 and investment. Establish and improve the foreign w88 operation monitoring system and international balance of payments early warning mechanism to maintain national economic security.

(26) Better play the role of foreign investment. Seize the major opportunities presented by the new round of optimization and reorganization of global production factors and industrial transfer, expand the scale of utilizing foreign capital, and improve the level of utilizing foreign capital. In conjunction with the adjustment and upgrading of domestic industrial structure, more advanced technologies, management experience and high-quality talents will be introduced, and attention will be paid to the digestion, absorption, innovation and improvement of introduced technologies. Continue to develop processing w88, strive to attract multinational companies to transfer processing and manufacturing links and R&D institutions with higher technical levels and greater value-added content to my country, and guide the transformation and upgrading of processing w88. We will further improve the investment environment, expand investment areas, attract foreign investment and accelerate its expansion to areas with favorable conditions and areas that comply with national industrial policies, and strive to form a number of economic growth belts with intensive foreign investment, internal and external integration, and strong driving force.

(27) Enhance the ability to participate in international cooperation and competition. Domestic enterprises are encouraged to make full use of the favorable opportunities of expanding opening up to enhance their capabilities in market development, technological innovation and cultivating independent brands. Improve the quality, grade and added value of export commodities, expand the export of high-tech products, develop service w88, and comprehensively improve export competitiveness. Continue to implement the "going global" strategy, improve the foreign investment service system, give enterprises greater autonomy in overseas operation and management, improve the supervision mechanism for overseas investment enterprises, and promote the development of my country's multinational companies. Actively participate in and promote regional economic cooperation.

　　9. Promote the reform of the employment and distribution system and improve the social security system

(28) Deepen the reform of the labor and employment system. Put the expansion of employment in a more prominent position in economic and social development, implement proactive employment policies, and strive to improve the entrepreneurship and employment environment. Adhere to the policy of workers choosing their own jobs, market regulating employment and the government promoting employment. Encourage enterprises to create more jobs. Reform, development and structural adjustment must be closely integrated with employment expansion. Starting from the requirements of expanding employment and re-employment, in terms of industry type, focus on the development of labor-intensive industries; in terms of enterprise scale, focus on supporting small and medium-sized enterprises; in terms of economic type, focus on the development of the non-public economy; in terms of employment methods, focus on the use of flexible and diverse forms. Improve the employment service system, strengthen vocational education and skills training, and help groups with special difficulties find employment. Standardize enterprise employment practices and protect workers' legitimate rights and interests.

(29) Promote the reform of the income distribution system. We will improve the distribution system in which distribution according to work is the mainstay and multiple distribution methods coexist. We will insist on giving priority to efficiency and taking into account fairness, and various production factors will participate in distribution according to their contribution. Rectify and standardize the distribution order, increase the intensity of income distribution adjustment, and pay attention to solving the problem of excessive income gap among some members of society. With the goal of common prosperity, we will expand the proportion of middle-income earners, increase the income level of low-income earners, regulate excessive income, and ban illegal income. Strengthen supervision of income distribution in monopolized industries. Improve personal income monitoring methods and strengthen personal income tax collection and management. Improve and standardize the salary system for national civil servants and promote the reform of the distribution system for public institutions. Standardize job consumption and accelerate the monetization of welfare benefits.

(30) Accelerate the construction of a social security system that is consistent with the level of economic development. We will improve the basic pension insurance system for enterprise employees, adhere to the combination of social pooling and personal accounts, and gradually strengthen personal accounts. Include urban employees in basic pension insurance. Establish and improve provincial-level pension insurance adjustment funds, and gradually implement provincial-level coordination on the basis of improving municipal-level coordination. When conditions permit, implement national coordination of the basic part of basic pensions. We will improve the unemployment insurance system and integrate basic living security for laid-off workers from state-owned enterprises into unemployment insurance. Continue to improve the basic medical insurance system for urban employees and the simultaneous reform of the medical and health care and pharmaceutical production and distribution systems, expand the coverage of basic medical insurance, and improve social medical assistance and multi-level medical security systems. Continue to promote work-related injury and maternity insurance for employees. Actively explore the reform of the social security system in government agencies and public institutions. Improve the minimum living security system for urban residents and reasonably determine security standards and methods. Adopt various methods, including transferring part of state-owned assets in accordance with the law to replenish social security funds. Strengthen the collection and collection of social insurance funds, expand collection coverage, standardize fund supervision, and ensure fund safety. Encourage qualified enterprises to establish supplementary insurance and actively develop commercial pension and medical insurance. Rural pension security is mainly based on families and is combined with community security and state relief. Where conditions permit, we will explore the establishment of a rural minimum living security system.

10. Deepen the reform of the science, education, culture and health system, and improve the country’s innovation capabilities and the overall quality of the people

(31) Create an institutional environment for implementing the strategy of strengthening the country through talents. Innovate the talent working mechanism and cultivate, attract and make good use of all types of talents. With party and government talents, enterprise management talents and professional and technical talents as the main body, we will build a large-scale, reasonable structure and high-quality talent team. Carry out talent training at multiple levels, through multiple channels, and on a large scale, focusing on cultivating a group of high-level and highly skilled talents. Strengthen the development of talents in the western region and ethnic minority areas, and establish a mechanism to promote outstanding talents to work in the western region, at the grassroots level, and in difficult places. Respect knowledge, encourage innovation, implement fair competition, improve the incentive system, and create a good environment for outstanding talents to stand out and make full use of their talents. Establish and improve the talent market system to further promote talent flow. Actively introduce all kinds of talents urgently needed for modernization construction.

(32) Deepen the reform of the science and technology system. Reform the science and technology management system, accelerate the construction of the national innovation system, promote the efficient allocation and comprehensive integration of science and technology resources in the whole society, improve the ability of science and technology innovation, and achieve the close integration of science and technology with economic and social development. Establish the dominant position of enterprises in technological innovation and scientific and technological investment, and provide equal competition conditions for all types of enterprise innovation activities. Research institutions that must be supported by the state and engage in innovative activities in the fields of basic research, strategic high technology, and important public welfare research must establish a modern scientific research institute system in accordance with the principles of clear responsibilities, scientific evaluation, openness and orderliness, and standardized management. Market-oriented applied technology research and development institutions must persist in transforming into enterprises and accelerate the establishment of a modern enterprise system. Actively promote the close integration of higher education and technological innovation. Establish an innovative mechanism that integrates the military and civilians and integrates the military with the civilians to achieve mutual promotion and coordinated development of national defense science and technology and civilian science and technology. Build a theoretical innovation system for philosophy and social sciences and promote the coordinated development of social sciences and natural sciences.

(33) Deepen the reform of the education system. We should build a modern national education system and a lifelong education system, build a learning society, comprehensively promote quality education, enhance the people's employability, innovation ability, and entrepreneurial ability, and strive to turn population pressure into human resource advantages. Promote educational innovation, optimize the educational structure, reform the training model, improve the quality of education, and form an education system that is compatible with the requirements of economic and social development. Consolidate and improve the rural compulsory education management system, which is mainly managed by county-level governments. Implement full recruitment and teacher qualification access system. Improve and standardize the education investment system that focuses on government investment and raises funds through multiple channels to form a pattern of joint development of public schools and private schools. Improve the system for state and social assistance to students from financially disadvantaged families.

(34) Deepen the reform of the cultural system. In accordance with the characteristics and laws of the construction of socialist spiritual civilization and adapting to the requirements of the development of the socialist market economy, we must gradually establish a cultural management system featuring party committee leadership, government management, industry self-discipline, and legal operation of enterprises and institutions. Transform the functions of cultural administrative departments and promote the coordinated development of cultural undertakings and cultural industries. We insist on putting social benefits first and strive to achieve the unity of social benefits and economic benefits. Public welfare cultural institutions must deepen the reform of labor and personnel, income distribution and social security systems, increase state investment, enhance vitality and improve services. For-profit cultural industry units must innovate their systems, transform their mechanisms, face the market, and strengthen their capabilities. Improve the cultural market system and establish a dynamic cultural product production and management system. Improve cultural industry policies, encourage capital investment from multiple channels, promote the common development of various cultural industries, form a number of large-scale cultural enterprise groups, and enhance the overall strength and international competitiveness of the cultural industry. Regulate the cultural market order in accordance with the law. Deepen sports reform, build a mass sports service system, improve the competitive sports system, promote the healthy development of the sports industry, and enhance the physical fitness of the entire people.

(35) Deepen the reform of the public health system. Strengthen the government's public health management functions and establish a health care system that is compatible with the socialist market economic system. Strengthen the construction of public health facilities, make full use of and integrate existing resources, establish and improve disease information network systems, disease prevention and control systems, and medical treatment systems, and improve public health service levels and emergency response capabilities for public health emergencies. Accelerate the reform of urban medical and health systems. Improve rural health and medical conditions, actively establish a new rural cooperative medical system, and provide medical assistance to poor farmers. Give full play to the advantages of integrating traditional Chinese and Western medicine. Improve environmental sanitation and establish public health awareness. Improve the health supervision system to ensure the safety of food, medicine and medical treatment for the people.

11. Deepen the reform of the administrative management system and improve the economic and legal system

(36) Continue to reform the administrative management system. Accelerate the formation of an administrative management system that is standardized in behavior, coordinated in operation, fair and transparent, honest and efficient. Further adjust the structure of government agencies at all levels, straighten out the division of functions, and achieve the legalization of government responsibilities, institutions, and establishment. Improve the national civil service system. Promote administration according to law and exercise powers and perform duties in strict accordance with legal authority and procedures. Develop e-government affairs and improve service and management levels. Establish and improve various early warning and emergency response mechanisms to improve the government's ability to respond to emergencies and risks. Improve the safety production supervision system. Deepen the reform of the local administrative management system and vigorously streamline institutions and personnel. Continue to promote the reform of public institutions. Improve grassroots mass autonomous organizations and give full play to the self-management and self-service functions of urban and rural communities.

(37) Reasonably divide the management responsibilities of central and local economic and social affairs. In accordance with the principle of unified leadership by the central government and giving full play to local initiative and enthusiasm, the management responsibilities and powers of the central and local governments in economic regulation, market supervision, social management, and public services must be clarified. Matters that are national and cross-provincial (autonomous regions, municipalities directly under the Central Government) are managed by the central government to ensure the unity of the national legal system, the unity of government orders, and the unity of the market. They are local affairs facing this administrative region and are managed locally to improve work efficiency, reduce management costs, and enhance administrative vitality. For matters that are jointly managed by the central and local governments, different situations must be distinguished, their respective management scopes must be clarified, and primary and secondary responsibilities must be distinguished. Based on the division of responsibilities and powers for the management of economic and social affairs, the division of labor and responsibilities between the central and local governments in the fields of finance, taxation, finance, investment and social security will be gradually streamlined.

(38) Comprehensively promote the construction of the economic legal system. In accordance with the basic strategy of governing the country according to law, we focus on establishing systems, regulating rights and responsibilities, protecting rights and interests, and strengthening economic legislation. Improve the legal system for market entities and intermediary organizations so that all types of market entities truly have full behavioral capabilities and responsibilities. Improve the property rights legal system, standardize and rationalize property rights relationships, and protect various property rights and interests. Improve the legal system for market transactions, ensure freedom of contract and transaction security, and maintain fair competition. Improve laws and regulations on budget, taxation, finance and investment, and standardize economic regulation and market supervision. Improve laws and regulations on labor, employment and social security, and effectively protect the legitimate rights and interests of workers and citizens. Improve laws and regulations in the social field and sustainable development to promote economic development and overall social progress.

(39) Strengthen law enforcement and supervision. Strengthen the interpretation of laws and regulations, increase law enforcement efforts, improve the ability and level of administrative law enforcement, judicial trials and prosecutions, ensure the effective implementation of laws and regulations, and maintain the unity and dignity of the legal system. In accordance with the requirements of linking power with responsibilities and decoupling power with interests, establish a law enforcement system with clear rights and responsibilities, behavioral norms, effective supervision, and strong guarantees to prevent and correct local protectionism and departmentalism. Reform the administrative law enforcement system, relatively centralize administrative penalty powers, and promote comprehensive law enforcement pilots. Promote the reform of the judicial system and safeguard judicial fairness. Implement a law enforcement responsibility system and a law enforcement fault accountability system to achieve strict, fair and civilized law enforcement.

　　12. Strengthen and improve the party’s leadership and strive to improve the socialist market economic system

(40) The leadership of the party is the fundamental guarantee for the smooth advancement of reform. Building a sound socialist market economic system is a decision of great practical significance and far-reaching historical significance made by our party in the new century and new stage. It is a new major test for the whole party. All comrades in the party must fully understand the historical responsibilities they shoulder, continue to learn new knowledge, study new situations, solve new problems, and continue to explore ways and means to organically integrate the socialist system and the market economy. It is necessary to consciously adapt to the new situation of the development of the socialist market economy, reform and improve the party's leadership and governance methods, persist in planning the overall situation, taking direction, and managing major affairs, and further improve the ability to scientifically judge the situation, control the market economy, deal with complex situations, govern according to law, and take charge of the overall situation. It is necessary to adhere to the principle of party management of talents, cultivate and create a large number of talents of all types that meet the needs of modernization, strengthen the construction of leadership groups and grassroots party organizations at all levels, and provide a strong organizational guarantee for reform and development. We must focus on my country's basic national conditions, insist on proceeding from reality in everything, adapt measures to local conditions, unify the intensity of reform, the speed of development and the level of social affordability, resolve various contradictions in a timely manner, and ensure social stability and orderly work. It is necessary to coordinate various reforms and strive to achieve coordination between macroeconomic reform and microeconomic reform, between economic reform and social reform, between urban reform and rural reform, and between economic system reform and political system reform.

(41) Strengthen and improve the construction of party style and clean government. Strengthening the construction of party style and clean government, opposing and preventing corruption are important guarantees for establishing and improving the socialist market economic system, and must run through the entire process of reform, opening up, and modernization. It is necessary to further strengthen the integrity and self-discipline of party and state agency workers, especially leading cadres, resolutely investigate and deal with various disciplinary and illegal cases, and effectively correct unhealthy tendencies that harm the interests of the masses. It is necessary to adhere to the principle of treating both the symptoms and root causes and comprehensive management, pay attention to ideological and moral education, strengthen the construction of a clean government and legal system, improve the supervision and restriction mechanism, and establish and improve the punishment and prevention system of corruption that is compatible with the socialist market economic system and pays equal attention to education, system and supervision. To persist in building the party for the public good and governing for the people, we must continue to maintain a modest and prudent style of work that is neither arrogant nor impetuous. We must continue to maintain a style of hard work, resolutely resist the erosion of various bad trends, and create a good social atmosphere for the improvement of the socialist market economic system.

(42) Adhere to the coordinated development of socialist material civilization, political civilization and spiritual civilization. Socialism with Chinese characteristics is a great cause of the coordinated development of the socialist market economy, socialist democracy and advanced socialist culture. We must actively and steadily advance the reform of the political system, expand socialist democracy, improve the socialist legal system, consolidate and strengthen the patriotic united front, strengthen ideological and political work, and provide a strong political guarantee for the development of a socialist market economy. We must vigorously strengthen the construction of socialist culture, strive to establish a socialist ideological and moral system that is compatible with the socialist market economy, coordinated with socialist legal norms, and inherited from the traditional virtues of the Chinese nation, carry forward and cultivate the national spirit, continuously improve the ideological and moral quality and scientific and cultural quality of the entire nation, and provide strong spiritual motivation and intellectual support for reform and development.

All comrades in the party and people of all ethnic groups in the country, under the guidance of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of "Three Represents", fully implement the spirit of the 16th National Congress, closely unite around the Party Central Committee with Comrade Hu Jintao as General Secretary, forge ahead, work hard, and strive to build a sound socialist market economic system and realize the grand goal of building a moderately prosperous society in an all-round way! (End)