Report on the Work of the Government 2011

By 

Chen Baogen, Mayor of Xi’an Municipal Government

Delivered at the 6th Session of the 14th Xi’an Municipal People’s Congress 

On January 24, 2011

Fellow Deputies:

On behalf of Xi’an municipal government, I now present to you the report on the work of government, together with the Outline of the 12th Five-year Plan for Xi’an’s National Economic and Social Development (Draft), for your deliberation and approval. I also solicit comments and suggestions on the report from the members of Xi’an Municipal Committee of the Chinese People’s Political Consultative Conference (CPPCC) and other delegates present.

I. Overview of the Implementation of the 11th Five-year Plan

In the past five years, Xi’an has made great achievements in scientific development. With the leadership of the provincial government and CPC Shaanxi Committee and Xi’an Committee under the direction of the Scientific Outlook on Development, the people of Xi’an seized the opportunity of developing western regions and building the Guanzhong-Tianshui Economic Zone and stood up to the challenges posed by the earthquake and international financial crisis. Aiming at building a dynamic, cultural and harmonious Xi’an that is satisfactory to the public, Xi’an transformed its development pattern and overcame obstacles along the way and finally achieved all the goals set in the 11th Five-year plan. Xi’an has entered a new stage to build an international metropolis. 

--- In the past five years, the comprehensive economic strength of Xi’an has reached a new level.

Over the past five years, guided by the Scientific Outlook on Development, we insisted on promoting transformation in development and seeking development in transformation. GDP of the whole city reached RMB 324.149 billion, which is 2.47 times of that of 2005 and the average annual increase rate is 1.5% higher than that of the period of "the Tenth Five-Year Plan"(2001-2005). The general financial revenue reached RMB 51.078 billion, more than three times of that of 2005. The local financial general budget revenue reached RMB 24.18 billion, 3.3 times of 2005, and the increase rate is 12.5% higher than that of the 10th Five-year-plan period, in which revenue from tax accounts for 85.7%, which is 6.9% higher than that of 2005. Total Investment in Fixed Assets reached RMB 325.056 billion last year and accumulated to over 1000 billion over the past five years, which is four times of that of the 10th Five-year-plan period. The total retail sales of consumer goods was RMB 161.1 billion, 2.4 times that of 2005; industrial added value reached 100.6 billion, 2.4 times that of 2005; and the added value of the non-public economy was RMB 161.1 billion, 2.8 times that of 2005 and accounting for 49.7% of the total GDP. The added value of five pillar industries reached 162.07 billion, accounting for half of the total economy. The number of scaled enterprises reached 1107, five of which, including Shaanxi Automobile Group, have a production and sales capacity of over 10 billion yuan. Strategic emerging industries such as electronic information, solar photovoltaic industry, Semiconductor illumination and new materials, etc., have been developing rapidly. The capacity of scientific innovation is improving steadily and Xi’an has become a national innovative pilot city. And the requirements of energy saving and emission reduction have been met. The driving effect of development zone is further enhanced. Xi’an High-tech Industries Development Zone and Economic & Technological Development Zone have gained speed in building a world-class science park and promoting the hundred-billion industrial cluster respectively. Qujiang New Area has become the national-level cultural industry demonstration area, while the Chanba Ecological Zone has been making steady progress in preparing for the International Horticultural Exposition of 2011. Xi’an International Trade & Logistic Park ranked the top 10 logistic parks in China in 2010; the Aerospace and Aviation Base was upgraded as the state-level development zone; and the construction of Fengwei New Area has been successfully launched. 

--- In the past five years, the city took on a new look. 

Over the past five years, we have been committed to strengthening the construction and management of the city by improving its functions, highlighting its special features and perfecting its environment. The urban carrying capacity of Xi’an is constantly improving. We have completed the making of the 4th urban general planning; and the compiling of Xi’an International Metropolis Development Plan and a number of specific plans is under way. The built-up area reached 395 square kilometers, increasing by 160 square kilometers. The construction of metro line 1 and 2 is gaining speed. A number of flyovers have been built over the first and second ring roads; the third ring road has been completed, ready to open to traffic. 145 city roads and 1081 alleys have been renovated. In addition, we have newly built 115 overpasses and underground passages, 14 sewage treatment plants, 7 emergency shelters, and have built or renovated 1131 public toilets. The management of the refuse landfill in Jiangcungou has achieved initial success and new progress has been made in electric network transformation, urban gas-using popularization, centralized heating, and the construction of water supply and drainage pipe network. The goals of the Three-Year Plan of Urban Management and Greening have been met. Over 870,000 trees, over 27.51 million shrubs have been planted and 18.04 million square meters of green land have been built in the urban area. Ecological restoration has been actively launched in such river systems as the urban section of Weihe River, the entire Chan River and Ba River area, certain sections of Feng River, and Hancheng Lake, etc.. A number of water diversion projects and ecological-water-into-the-city projects such as Divert Qianyou River into Shibianyu Reservoir project, Divert Xu River into Hei River project, and Lijia River Reservoir, etc. The ecological water area in the city reaches 45,000 mu and Chanba Ecological Zone and Qujiang New Area have been listed as the first state-level ecological zones in the Midwest China. Last year, the number of days with good air quality reached 304, 14 days more than 2005. Qinling Zhongnan Mountain Global GeoPark was included in the Unesco Network of Geoparks and the application of the Silk Road as a whole for World Heritage is moving on smoothly. And with a number of heritage parks such as Qujiang Pool and Daming Lake opening to public, the reservation of great sites become one of the new features of Xi’an. Meanwhile, the urban renewal process is speeding up. 120 urban villages and 30 shanty towns have been demolished and 145,200 residents have been resettled. Urban renewal projects have been launched in such areas as Weiyang New City, Fangzhicheng, Daxing New City, Jiefang Road and the East Avenue, etc. Environment improvement projects have been carried out in major tourist attractions, entrances and exits of the city, the central axis from the south to the north, and railway station square, etc. The environment improvement project along the urban section of Longhai Railway has been completed. The efforts of applying for the titles of National Healthy City, National Garden City, National Environment Protection Model City, and National Civilized City have achieved phased success. Xi’an has been granted the tittles of National Healthy City, National Garden City, and Prudential Environment Protection Model City, and we are working hard to meet the requirements for National Civilized City. 

--- In the past five years, reform and opening up has made new progress. 

Over the past five years, we insisted on deepening reform and further opening up as the fundamental drive for scientific development, which boosts the development vitality. We launched the construction of model base for reforming and mobilizing science and technology resources. The reform covers 98.5% of the state-owned enterprises. Over 30 major asset restructuring and industrial integration programs, including the textile industry, have been implemented. 14 policy-mandated bankruptcy projects, including Tanghua Group, have been enforced as planned. A new system of state-owned assets supervision and management has been established. A number of state-owned enterprises have been set up, including Xi’an Industry Assets Management Co., Ltd., Xi’an Water Group, Xi’an Construction Engineering Group, and Xi’an Investment Holding, Co., Ltd. A new round of institutional reform at the municipal, district, county and township level has been completed and phased goals of the cultural institutional reform have been met. A multi-channel and multi-platform investment and financing pattern has been formed. The construction of Xi’an Financial and Business Zone is accelerating. The first aviation industry fund in the country and Kaiyuan City Development Fund has been set up in Xi’an. Xi’an Commercial Bank was reorganized and renamed Bank of Xi’an and set up a branch in Yulin. The first bank at the township level, Gaoling Sunshine Bank, was approved. The number of small loan companies increased to 19. New progresses have been made in the reform of collectively-owned enterprises, collective forest ownership, categorization of public institutions, financial management system, household registration system and comprehensive rural reform. The actual use of foreign capital reached 5.767 billion US dollars, 3.89 times of that during the period of the 10th Five-year Plan. The actual use of domestic capital reached RMB 315 billion. 123 of the world’s Top 500 companies have landed in Xi’an. Xi’an international trade land port is officially open and Xi’an has become one of the first Service Outsourcing Model Cities in the country. In the past five years, we have received 4.01 million foreign tourists and 179 million domestic tourists and the total tourist revenue reached RMB 135.6 billion. Consulates General of South Korea and Tailand have been set up in Xi’an subsequently. And the Euro-Asia Economic Forum is beginning to become a constant mechanism. And we have four new sister cities, including the Italian city of Pompeii. Xi’an was granted the title of “China City with the Best International Image”. 

--- In the past five years, Urban-rural integrated development has made new achievements. 

Over the past five years, we have been exploring new paths for the integrated development of urban and rural areas. We have released Opinions on Promoting the Integrated Development of Urban and Rural Areas and supporting measures. The pilot reform in Gaoling County is going on smoothly. Urban modern agriculture develops fast. The layout of four sections and 12 industry belts has been formed. The agricultural infrastructure is constantly improving and comprehensive production capacity is growing steadily. Last year, the overall grain production reached 2,216,500 tons, making a new record. Xi’an was granted the title of Advanced Unit for Grain Production. The vegetable supply is steadily improving and the level of agriculture product quality and safety monitoring and management is increasing. The goal of building 1,000 new villages has been achieved. A number of featured villages such as Tangyu and Wutai have been built. 8400 kilometers of rural roads have been built or renovated, which largely guaranteed the accessibility of all administrative villages to paved roads. 1160 rural drinking water projects have been completed, guaranteeing the drinking water safety of 1,646,000 rural residents. Over 80% of the rural electric network has been transformed. The development vitality of counties has increased. Last year, the local finance general budget income of the districts and counties accounted for 57.6% of that of the whole city, in which the general budget income of Beilin district, Lianhu district and Yanta district has exceeded RMB 2 billion respectively and Gaoling county has become one of the Top 100 counties in western China. 

--- In the past five years, the public satisfaction rate increased. 

Over the past five years, we have been committed to improve the wellbeing of the people through human-oriented approaches. As a result, Xi’an has won the title of the Happiest City in China 2009. 561,800 new jobs have been created and 2,808,200 rural labors have been employed in the non-agricultural sectors. And registered urban unemployment rate is controlled under 4.5%. Xi’an became a state-level Entrepreneurial pilot city.  Incomes of urban and rural residents reached RMB 22,244 and 7,750 respectively last year, which are 12,616 and 4,290 yuan higher than that of 2005 respectively. A social security system has been formed to include pension, medical care, unemployment insurance, work injury insurance and maternity insurance. Its coverage is constantly expanding to include all 320,000 rural and urban residents living on minimum wage. 160,000 rural poor population are lifted out of poverty. Indemnificatory apartments are built and the scale of self-built economically affordable housing is expanded by increasing housing fund and financial investment on all governmental levels, which benefits 830,000 households with housing difficulties. The transaction volume of second-hand housing exceeded 7.4 million square meters. Free compulsory education is available to all school children in urban and rural areas. School building renovation has been completed in 99 standard rural boarding schools and 217 rural middle and elementary schools. Four vocational education groups have been founded. And the Egg and Milk project benefits 251,000 rural students. We have realized the full coverage of urban community health care center network and rural medical care at village level and 97.14% of the rural population are covered by the New Rural Co-operative Medical System. Progresses have been made in such fields as culture, sports, population and family planning, statistics, ethnic and religion affairs, overseas Chinese affairs, women and children wellbeing, care for the aged and disabled, civil air defense, counseling, historic research, local chronicles, archives, meteorology and Red Cross, etc. Xi’an has won the title of National Model City for Supporting the Military and Their Families for six consecutive years. A series of people-benefit projects have been implemented, including free public toilets, half-price public transportation, healthy breakfast and steamed buns, and morning vegetable markets, etc. The campaign to create a Safe Xi’an has distinct effects. Special campaigns to regulate petition activities, food and medicine and safe production activities have been enforced to maintain a harmonious and stable society. 

Over the past five years, we have made tremendous efforts to transform government functions, improve efficiency and administer by law in order to create a service-oriented government. And we voluntarily subject ourselves to the supervision of the People’s Congress and the CPPCC and have answered to all their suggestions and proposals. We carried forward the liability system of administrative law enforcement, deepened the reform of administrative approval system, modified work regulations, set up a system to study the laws, regulated the process of decision making, and launched campaigns to actively solicit ideas and suggestions from the public and report our work to the public. The mechanism of scientific and democratic decision making according to the laws has been further improved. We put great emphasis on building the anti-corruption system and the coverage of administrative supervision and the auditing scale of economic liabilities of government officials have been constantly expanding. We have properly settled a series of emergencies such as the Wenchuan earthquake, baby formula crisis, and flu epidemic, which greatly improved the crisis management ability of the government. We have perfected the performance evaluation system and enhanced its implementation, which greatly improved the executive ability of the government. 

Fellow deputies! In the past five years, the city we live in have witnessed profound changes. The ancient capital has embraced new vitality and vigor. These achievements cannot be made without the hard work of all citizens and the contribution by people from all walks of life. Here, I’d like to express my sincere gratitude, on behalf of the municipal government, to the hard-working citizens from all walks of life, to the military and armed police stationed in Xi’an, and workers from the units directly under the central and provincial government, and friends from home and abroad! 

Meanwhile, we are acutely aware that there are problems and conflicts in the development of Xi’an. Compared with cities of the same kind in the country, Xi’an’s economy scale is relatively small; competitive industries are not strong enough; the number of big enterprises and groups is limited; tourist infrastructure and service environment is not mature enough; the regional advantages of logistics have not been fully exploited; the development of non-public economy is not fast enough and its proportion in the overall economy is still small; the contribution of export to the economic growth is quite small; and the economic extroversion is still low; urban traffic congestion is getting worse; the pressure of employment is still high; the citizens still have many problems in getting medical care, old-age support, education, housing and renting, commodity and green grocery shopping, and security of society; the incomes of rural and urban residents are still comparatively low; the disadvantaged groups are still having difficulty to make a living; some government workers still lack the awareness to serve the people and to facilitate the operation of businesses; the government’s efficiency and credibility still needs improvement. We will take effective measures to tackle these problems. 

II. Objectives of the 12th Five-Year Plan

The 12th Five-year Plan is a critical period for further advancing the strategy of west development and the construction of Guanzhong-Tianshui Economic Zone, an important strategic period for Xi’an to speed up scientific development, take the lead in development and build Xi’an into an international metropolis. We have all the conditions to realize more profound development with better quality at a higher level on a new starting point. Based on the national and provincial arrangements for the 12th Five-year Plan and their requirements for Xi’an, considering the development phase we are in and the development environment and conditions we have, we have compiled the Outline of the 12th Five-year Plan for Xi’an’s National Economic and Social Development (Draft), after making thorough research and extensively listening to the opinions from all sectors of the society. 

The Outline (Draft) proposes that the guiding principles of the social and economic development of Xi’an during the period of the 12th Five-Year Plan is: Upholding the great banner of socialism with Chinese characteristics under the direction of Deng Xiaoping Theory and the great thought of “Three Represents”, we are committed to carrying through the Scientific Outlook on Development and adjusting to the changes of domestic and international situation. Seizing the period of major strategic opportunities to achieve scientific development, we insisted on accelerating the transformation of development mode in order to secure and improve people’s livelihood and to build Xi’an into an international metropolis. We applied a project-oriented, innovation-driven, industry-supported strategy with priority on important industrial sectors and brought into full play the advantages of Xi’an in terms of location, culture, science and education and industries with emphasis on creating an urban space system with distinct features, building a modern industrial system, perfecting public service system, advancing urban-rural integration and elevating the level of reform and opening up, in order to take the lead in realizing all-round well-being society and building Xi’an into a convenient, livable and happy home for all citizens.  

Our major objectives are as follows: the annual GDP increases by over 13%; local finance general budget income increases by over 16% annually; urban per capita disposable income and rural per capita net income increase by 15% and both doubles that of 2010; social fixed asset investment increases by 19% annually; total retail sales of consumer goods increases by 19% annually; non-public economy accounts for over 55% of the economic aggregate; urban registered unemployment rate remains under 4.5%; energy consumption per unit of GDP and CO2 emission reduce by 13%. 

To successfully achieve all the goals, we need to put emphasis on the following four aspects:

Firstly, plan and build our city with an international perspective. Xi’an is the home to all the citizens. Building Xi’an into an international metropolis is a new prospect and new goal for Xi’an in the period of the 12th Five-year Plan. Rational planning is critical for guiding the development of a city on the right track. Therefore, we need to plan as a whole the general urban planning, the planning of land use and transportation system, optimize the general layout and improve their functions. Drawing on the experiences and lessons of major cities home and abroad, we will determine the reasonable scale of the city, form a good urban system, overcome the maladies of modern cities, realize the potential values of the city and create features of our own to set the basic framework for an international metropolis. 

Secondly, expand economy scale by upgrading industries. Industry provides the material foundation for the development of a city. In the future, Xi’an has to make great efforts in optimizing industrial structure in order to elevate its competitiveness. We will summarize the experiences of industrial development we got during the period of the 11th Five-year Plan and carefully analyze our advantages in terms of resources and location. Aiming at realizing scale economy in featured industries, we will put priorities in such modern service industries as tourism, culture, and logistics, strategic emerging industries and advanced equipment manufacturing industry and focus on developing competitive industrial clusters to help featured industries grow and become strong. By the end of the 12th Five-year Plan, we will build Xi’an into a world-class tourist destination, an important high-tech industrial base and advanced manufacturing base, a regional commerce and logistic center, financial center and exhibition center. We will take the opportunity of building a model base for reforming and mobilizing science and technology resources to release the power of universities, research institutions and defense industrial enterprises to push for the integration of science and economy. We will actively develop circular economy and low-carbon economy and realize the transformation of economic development mode. 

Thirdly, create a good environment for development based on the demands of the enterprises. The development of market main bodies is the fundamental force that drives the development of a city. We have to increase the number and scale of market main bodies and take it as a key entry point for government to boost economy. We will act in accordance with the idea that all has to be subject to and at the service of the demands of market main bodies and take further steps to eliminate the ideology restraints and institutional obstacles, to deepen the reform of administrative approval system, among other things; and to speed up the construction of production factor market system. We will take active measures to create a more convenient and efficient service environment and fair and orderly competitive environment to stimulate the vitalities of all market main bodies and to provide strong support for enriching the people and energizing the market. 

Fourthly, improve the work of government based on how the citizens feel. Citizens are the owner of the city. Putting people first is the core of the Scientific Outlook on Development. All that we do is to make the people living in this city live and work in content. Governments at all levels must make it their persistent pursuit to build a city satisfactory to the people, must make the voice of the public the first priority, must make it their first choice to do practical things for the public, and must take the public evaluation as their number one standard for their work. Governments at all levels must listen to the voice of the public, rely on the wisdom of the people and unite the hearts of the people to increase the income of rural and urban residents and make sure that the improvement of people’s livelihood is reflected in the satisfaction rate of the people. 

III. Make sure we have a good start this year

This year is the first year of the 12th Five-year Plan and a critical year for the construction of international metropolis. We will stick to the implementation of the Scientific Outlook on Development, focus on speeding up the transformation of economic development mode and work hard to keep the momentum of the fast and sound development of Xi’an’s economy and society. The major objectives this year are: the GDP increases by 14%; local finance general budget income increases by 18%, reaching RMB 30 billion; total retail sales of consumer goods increases by 20%; social fixed asset investment increases by 25%; CPI increase is controlled under 4%; above-scale industrial added value increases by 18%; urban per capita disposable income and rural per capita net income increase by 15%; urban registered unemployment rate remains under 4.5%; natural population growth rate is controlled under 5.5%; all sectors, including science and technology, education, culture, health and medicine, and sports, develop comprehensively; and the society is more harmonious and stable. 

This year, the municipal government will focus on the following eight aspects: 

(1) Cultivate and strengthen competitive industries and accelerate the transformation of economic development mode. 

Make good use of the regional advantage to develop modern service industry. Actively advance the integration of culture and tourism to promote industrial transformation and elevation. Aiming at creating world-class tourist products, we will enhance the integration and elevation of the tourism resources on the north slope of Qinling Mountains, start the construction of two 5A scenic regions of zhuque and Cuihua Mountain, carry forward the Qinling National Botanic Garden project, and make Qinling Zhongnan Mountain Global GeoPark a more famous brand. We will accelerate the construction of a number of cultural tourist projects, including Lintong National Tourist Holiday Resort, Louguan Taoism Culture Exhibition Area, Performance Base on Weiyi Road, and Tang West Market, etc., and promote the construction of 9 cultural industrial parks, including Qujiang Animation and Games, Publishing & Media, Movie & Television base, etc. We will put more efforts in the conservation and use of great archeological sites, accelerate the building of a city of museums, continue the application of Silk Road as the World Cultural Heritage, complete the third cultural relics survey, strengthen the protection of cultural relics. We will accelerate the construction of tourism infrastructure, improve the tourism services, plan and guide the construction of a number of high-end starred hotels, parking lots, toilets and motels around the tourist attractions. We will put more efforts in the training of tourist workers and push forward standardization of tourism services. Our goal is to receive 1 million overseas tourists, 60 million domestic tourists and the general income of tourism exceeds RMB 50 billion. 

Start making the mid- and long term plan for the development of logistic industry, take quicker steps to build Xi’an into a national logistic model city, push forward the construction of  a number of projects, including Xi’an Comprehensive Bonded Zone, Xi’an Yurun Agricultural and Sideline Products International Purchasing Center, Xi’an Hua’nan City, National Printing and Packaging Industrial Base in Xi’an Economic Development Zone, Xi’an Grain Emergency Processing and Logistic Base, Northwest Publishing Logistic Base, etc., and prepare to build an Internet of Things application industrial park. We will improve the exhibition service system, successfully host such exhibitions and forums as the Euro-Asia Economic Forum 2011. In 2011 we plan to hold 130 large exhibitions. We will speed up the building of production factor market, carry forward the construction of Xi’an Finance and Business Zone, perfect the rural financial system, and continue to form small loan companies and village banks. We will work faster to build a service outsourcing model city, and put more emphasis on a number of projects, including Xi’an Industrial Design Park and Xi’an Service Outsourcing Industrial Park, etc. We will optimize the layout of traditional business network, upgrade and innovate key business circles such as Xiaozhai, the East Avenue, Jiefang Road, Tumen and Sanqiao, etc. and build more featured blocks, introduce more international brands. We will continue to carry forward the Market Project in Thousand Villages and Townships, New Countryside Modern Circulation Service Network Project, and link between the farmers and supermarkets, build the West Xinqiao International Agricultural Product Cold-chain Logistics Center, Yanliang Northwest Agricultural and Sideline Products Trade Market, build or renovate 500 standard countryside stores, build 3 commodity distribution centers, and speed up the forming of new rural modern circulation service network. 

Vigorously cultivate strategic emerging industries and boost the development of high-tech industries and equipment manufacturing industry. Emphasis will be put on such industries as energy saving and environmental protection, new-generation information technology, aviation and aerospace, solar photovoltaic and semiconductor illumination, biological medicine, new materials, new energy with a number of major enterprises at the center, including Applied Materials, Western Superconducting Technologies, Western Titanium Technologies, Shaanxi Electronic Group, and BP Solar Energy, etc.. Support general aviation and satellite application industry to form industrial clusters as soon as possible. We will spare no effort in building a number of major industrial parks, including Weibei Modern Industry Cluster, Jinduicheng Molybdenum Industrial Park, Weaponry Industrial Park, and Caotang Technology Industrial Park, to elevate the core competitiveness of equipment manufacturing industry. We plan to make distinct progresses in supporting major industries such as automobiles and parts, high and medium voltage power transmission and transformation complete equipment by supporting major enterprises such as Shaanxi Automobile Group, BYD Automobile, China Fast Gears, and XD Group. Accelerate the construction of Textile Industrial Park to realize new development of the textile and clothing industry. Implement the small and medium business growth project, make experiments in small and medium business guarantee-assistant fund loan risk compensation, support the building of small and medium business credit guarantee system to promote the development of small and medium business and non-public economy. 

Promote institutional innovation; elevate the level of development zones. Put priority on improving the core competitiveness of the industry, further optimize the industrial layout of the development zones, guide leading industries and all resource factors to aggregate in leading enterprises and industrial parks to form industrial clusters with special features and distinct advantages. Modify the Regulations on the Development Zones of Xi’an, further improve the operation mechanism to make it efficient and more adaptable to market economy, and eventually achieve reasonable development layout and distinct industrial agglomeration effect. Support the planning and building of Fengwei New Area on a high starting point, accelerate the operation of major infrastructure and industrial projects. Promote the complementary balanced and coordinated development of development zones and administrative zones. 

Work on energy saving and cost reduction, and develop low-carbon economy. Implement the system of construction project energy cost approval; reinforce supervision of high energy-consuming enterprises and the energy saving of special equipment. Actively promote the application of advanced technologies in energy saving and replacement, circulatory use of resources and pollution reduction, launch campaign to build water-saving society and showcase energy-saving technologies. Build low-carbon economy model district on the basis of the development zones. Include energy saving and cost reduction in the performance evaluation system to make sure that the comprehensive energy cost per 10,000 yuan GDP is reduced by 3.2% and the emission of major pollutants meet the standard. 

(2) Reinforce infrastructure construction and ecological development to optimize urban environment; 

RMB 23.5 billion will be invested in urban construction, focusing on projects that improve urban carrying capacity. 

Further improve urban infrastructure. Metro Line 2 stage 1 will be put into operation, Line 1 tunnel will be completed, and the construction of Line 3 will be launched. Support the provincial government and the Ministry of Railways to start the construction of national railway junction base, build 8 roads including Shangxin Road and the north section of Wenjing Road, form a radiation road network centered on the North Railway Station. By the end of March, the innovation project of the railway square will be completed. A number of road projects will be started, including the second phase of the south 2nd ring road flyover, East Gate flyover, flyovers on South Taibai Road and East Zhangba Road, Qinhan Avenue, Dongyue Road, north extension of North Taihua Road, south extension of Zhuque Avenue, and getting through the North Gongyuan Road, etc. Speed up the construction of flyovers at the entrance and exit of Xiyu Expressway, search and plan the connection speedways between downtown Xi’an and Yanliang, Lintong and Huxian county, start the construction of rail transit between Xi’an and Lintong, plan to start the interurban railway between Xi’an and Yanliang. Accelerate the construction of Lijia River Reservoir project, Shibianyu Reservoir water supply multiple line and water plants and pipe networks in eastern and southern suburbs. Start the construction of the second phase of the first, second and fourth sewage treatment works, complete the main works of the sixth and 10th sewage treatment works, speed up the construction of urban sewage pipe network and reclaimed water pipe network. Continue the centralized heating projects in such areas as Mingde, Taihua, north town and Yandong, and the second phase of gas-using popularization project. Accelerate the construction of power transmission and distribution project; improve investment insurance mechanism to provide solid power grid protection for urban development. 

Further improve urban ecological environment. Successfully complete the three-year campaign of forestation, continue the planting of big trees and greening, particularly in areas around the North Railway Station, the third ring road and entrances and exits of the city. Start the building of green belts along the airport expressway; innovate 11 parks, including Xingqinggong Park; build 10 new parks, including Qingliangshan Park, Wenjingshan Park, E’pang Palace Park, Hongqing Mountain Forest Park; build 147 new roadside green spaces. By the middle of the year, West Garden around the City will be completed and open to public. Put into full operation the conservation and restoration of the ecological condition on the north slope of Qinling Mountains and add the special fund for protection to RMB 300 million. Plan to build and apply for the national forest city, continue to carry forward such projects as the second phase of the Big Green project, natural forest conservation, and Grain for Green project, and complete 60,000 mu of afforestation. Reinforce the treating of waters. Hancheng Lake will be open to public before May 1. The comprehensive treatment and forestation of the urban section of Weihe River will be completed by the end of the year. Carry forward the treatment projects of sections of Feng River, including the headwork of Fenghui Ditch, Liangjia benchland, and Yanjia Ditch, and the construction of Chanba River Ecology Restoration Model Area, Ba River National Wetland Park, and Baoqiao Riverside Wetland Park. Launch the campaign to create a National Environmental Protection Model City, continue to control the flowing dust pollution and tail gas pollution to make sure the number of days with good air quality remains above 300 this year. 

Make greater progress in the resettlement of urban shanty towns. Start to build 2.3million square meters of resettlement apartments and complete 3.36 million square meters, finish the resettlement of 120,000 residents from 23 urban villages and 9 shanty towns, basically complete the transformation of 72 urban villages and 18 key shanty towns within the second ring road. 

Further improve the level of urban management. Reinforce the management of municipal construction, resolutely control repeated excavation of roads, make overall arrangements of the time and sections of municipal construction, make reasonable traffic diversion plans, pay special attention to major areas suffering from serious traffic congestion, plan to build a number of multistory parking garages, and improve the road capacity. By the end of March, the overhead cables over 36 roads will be landed. We will constantly improve the sanitation of the city as well as the city fringes. Continue to regulate the order of construction waste collection and strictly punish overload, throwing about and driving against traffic rules. Regulate the operation of roadside stall business by way of guidance and punishment; increase a number of community markets and morning vegetable markets. Improve the construction of urban communities and its office conditions, innovate community management and service system. Launch a city-wide digital urban management network platform, form a system of General Urban Management, and regulate the law enforcement team of urban management. 

(3) Insist on project-driven development; improve the quality and economic benefits of investment. 

So far, Xi’an’s development is still investment-driven. We will continue to rely on project construction and combine investment scale expansion with structural optimization and plan a number of major high-quality projects. This year, we will implement 331 major construction projects to make sure the fix assets investment reaches RMB 390 billion. We will optimize the investment structure and the focus of investment will remain on improving people’s livelihood, strategic emerging industries, ecology and environmental protection, agriculture and rural areas. In particular, the industrial investment will see an obvious increase. We shall apply such methods as discount loans, rewards and subsidies, stock equity introduction and financing guidance, and encourage venture capital guidance fund to lead the market and support the development of key industries and enterprises. Encourage and support enterprises to increase their investments in technological transformation. Clearly define the boundary of government investments and improve the economic and social benefits of investments. Regulate more strictly the use of land and supply land strictly according to plot ratio and input-output ratio to improve land utilization rate. Set up a system of land reserve for major industrial investment projects to ensure the smooth landing of major projects. Encourage enterprises to vitalize stock land and speed up the disposal of idle land. Improve investment and financing system, promote the marketization of financing mode, and raise the operation capacity of investment and financing platform. Work more closely with financial institutions to satisfy the fund demand of projects. Support all kinds of capital to enter the fields of infrastructure construction, municipal public utilities, social programs and financial services and realize diversification of investment bodies and financing channels. 

(4) Insist on integrated urban-rural development; boost the vitality of districts and counties. 

Put great effort in developing urban modern agriculture. To achieve the goal of serving the city and enriching the farmers, we will continue to transform the agricultural development mode and adjust agricultural structure by focusing on the construction of four bases, namely, high-quality grains, pollution-free vegetables, featured fruits and advantageous husbandry. Support Chang’an district to construct national modern agriculture model area, continue to support the construction of 10 modern agriculture exhibition parks, 3 exhibition centers and one logistic center; establish a series of standard agricultural production bases, including Bailuyuan tourist agriculture, Yanliang thousand-acre sweet melons, Lintong cow breeding, vegetable growing in Gaoling and Chang’an, Kiwi planting in Zhouzhi county, trees and flowers planting, etc. Actively develop energy-saving, circular and eco-friendly agriculture, boost specialized and scale agricultural production and improve the quality of agricultural products. Further improve agricultural information system and agricultural technology promotion system, and enhance the monitoring of the quality and safety of agricultural products. 

Support districts and counties to develop industrial parks. Produce supportive policies to guide the districts and countries to cultivate leading industries according to their own advantages to realize differentiated development. Promote industrial aggregation by providing supporting services and facilities for major enterprises and deep processing of agricultural products on the basis of industrial parks. Increase investments in the infrastructure and environment construction of district and county industrial parks and elevate the level of industrial development. Support the urban area and outer suburbs to try to develop enclave economy.  

Advance the construction of townships and new villages. Compile and modify 5 group city planning and take more effective measures to support 4 counties to speed up the infrastructure construction in county seats. Carry forward the construction of 60 major townships to build a number of small towns with reasonable layout, distinct feature and complete functions. Pay special attention to the construction of 313 major new villages, adjust the village layout and start two to three pilot program of new rural community construction in agricultural counties. Accelerate the progress of country road second grade network project, and implement with real effect the construction of rural water conservancy, electricity, and communication facilities. Start the second stage of the resettlement of residents near Hei River Reservoir. Solve the problem of drinking water safety for 300,000 rural residents. 

Perfect the regulations and systems that coordinate urban and rural development. Start comprehensive reform of rural property rights system and establish a new property rights system that clearly defines affiliation, rights and liabilities and that strictly protect property rights and allows smooth ownership transfer. Adopt a uniform household registration system and allow eligible rural residents to register in the city. Improve the level of rural financial services, support financial institutions of all kinds to expand their business to the rural areas. Improve the system of social insurance, employment and public finance, etc. and realize coordinated advancement with the city. Effectively protect the rights of farmers in land acquisition, industrial development and rural land consolidation. 

(5) Continue to carry forward the reform and opening up, build an open economic strategic highland. 

Continue to carry the reforms forward. Speed up the construction of the model base for reforming and mobilizing science and technology resources. By the end of March, the construction of Xi’’an Science & Technology Resources Market Platform will be completed. By the end of this year, the number of enterprises that join in the market of science and technology resources will reach 4,000 and the annual transaction on the technology market will reach RMB 7 billion. We will support the pilot programs in development zones and launch the construction of a model base that covers 10 square kilometers in the High-tech Development Zone and Fengwei New Area. Deepen the reform of state-owned enterprises and promote 12 major asset restructuring and industrial integration projects, including the merger of Yanchang Petroleum and Xi’an Xihua Company, and support the listing of Qinhua Natural Gas, Xi’an Water Group and Xi’an Building Materials Technology. Reinforce the management of non-operational state-owned assets, vigorously push forward enterprise performance evaluation and dispatched board of supervisors. Steadily carry forward the reforms of municipal public utilities, collectively-owned enterprises, collective forest ownership and state-owned forest farm, etc. 

Upgrade the scale and level of open economy. Coordinate the investment resources of the whole city, organize and participate in all kinds of investment promotion and economic exchange activities, reinforce the investment promotion in industrial parks and industrial chains. Realize foreign direct investment 1.73 billion US dollars and actual use of domestic capital RMB 96 billion. Innovate new methods of foreign capital utilization, guide foreign investment in the form of joint stock, merger and acquisition, reinvestments, etc., and attract multinationals to set research centers, regional headquarters and production bases in Xi’an. Transform the development mode and expand the scope of foreign trade, cultivate influential foreign trade brands, and increase the export of high-tech products and mechanical and electrical products. Continue to encourage and support advantageous enterprises to “go overseas” to explore international market. Take the opportunity of completion of the international land port in Xi’an International Trade & Logistic Park to strengthen communication with cities along the new Eurasian Land Bridge, coastal and border ports to further promote regional cooperation. 

(6) Attach more importance to the people’s livelihood and social cause, maintain social harmony and stability.  

Improve employment level. Insist on driving employment with entrepreneurship and make good use of startup capital in order to meet the criteria for National Entrepreneurial City. Organize recruitment activities and reinforce vocational training with focus on college graduates, laid-off workers and rural migrant workers. Establish and improve the wage growth mechanism of enterprise employees, improve the wage payment security system of rural migrant workers. Speed up the transfer of surplus rural labor and promote steady growth of farmers’ income. This year we will create 110,000 new jobs, reemploy 39,000 urban laid-off workers and transfer 590,000 rural migrant workers into cities. 

Establish a sound social security system. This year, the municipal finance appropriate over RMB 2 billion as the fund for social security and for subsidies to the group with difficulties, which is 39.4% higher than last year. Actively promote the elderly care system that is centered on home-based care supplemented by institutional care, community care and volunteer service. Continue the pilot programs of new rural social endowment insurance in Gaoling, Chang’an and Yanliang, and include Huxian County as a new pilot county; start pilot program of urban resident social endowment insurance and explore an endowment insurance system that integrates urban and rural areas. Perfect the system of unemployment insurance and the long-term mechanism to promote and stabilize employment. Expand the coverage of work injury insurance and advance the municipal coordination of medical insurance for urban workers. Guarantee the subsistence allowance of urban and rural residents, further improve social relief system. Continue to expand the construction of indemnificatory housing, newly construct 20,000 economically affordable apartments, physically distribute 10,000 low-rent apartments and provide rent subsidies to 3,100 families. Newly build 15,900 price-restricted commercial apartments and 37,000 public rental apartments. Increase assistance fund for poor rural residents to build houses. 

Promote balanced development of education. This year, the municipal finance appropriate over RMB 1.4 billion as the fund for education, 36.5% higher than last year. Put more attention on pre-school education, build, innovate and expand a number of kindergartens with government and private fund, and basically relieve the difficulty in kindergarten admission and ensure accessibility of all preschool-age children to good pre-school education. Continue to promote compulsory education, high-school education and vocational education and solve the winter heating problem of middle and elementary school in rural areas in three years. Accelerate the construction of new campuses of Xi’an Railway Vocational School, Xi’an Vocational College and Xi’an High School. 

Continue to solve the problem of difficult and expensive medical care. This year, the municipal finance appropriate over RMB 1.269 billion as the fund for medical and health services, which is 50.7% higher than last year. Make greater progress in the construction of the medical technology building and the infection ward building of Xi’an Children’s Hospital, the Western Emergency and Trauma Center of Xi’an Red Cross Hospital, and the Third Hospital of Xi’an, and the relocation of Xi’an Hospital of Traditional Chinese Medicine, Xi’an Mental Health Center and Xi’an Tuberculosis Hospital, speed up the construction of 10 district and county hospitals and 20 community health care centers. Steadily promote the pilot programs in public hospital reform and popularize the management experience of Yanliang in integrated rural and urban medical services. Continue to improve the compensation method of new rural cooperative medical system to increase the benefits for the rural residents and keep the participation rate above 95%. Strengthen the prevention and control of diseases; promote the essential medicine system to effectively reduce the medical expenses.  

Actively promote the development of all kinds of social causes including culture, sports, population and family planning, etc. Carry out culture-for-the-public services, speed up the construction of cultural facilities in counties, towns and villages, continue the project of Radio & TV in Every Village, and Farmer Sports Fitness project, and work hard to get good performance in the 7th National Intercity Games. Advance the construction of Disaster Reduction Science Education Base, the extension of the Municipal Library Phase II, and the construction of the Municipal Underage Vagabondage Relief and Protection Center. Improve the quality of newborns, enhance the services and management of floating population, and continue to tackle the problem of disproportionate sex ratio. Do a good job in the 8th reelection of village committees. Actively promote defense mobilization and the building of reserve force, and do a good job in such causes as women and children wellbeing, ethnicity and religion, counseling, culture and history, social and scientific research, local chronology, foreign affairs and overseas Chinese affairs, civil air defense, archives, meteorology, charity, care for the disabled, and Red Cross, etc. 

Maintain social harmony and stability with all our efforts. Continue the campaign to create a safe Xi’an, reinforce the legal education and the system of “Overall Prevention and Control” of social security, strictly prevent and punish all kinds of illegal and criminal activities. Launch coordination of the people’s mediation, administrative mediation and legal mediation, constantly improve the new order of stability maintenance and petition, make great efforts to solve the reasonable appeal of the people. Reinforce the management and community correction system of special groups, increase the administration of weak links of social management, and protect the legal rights of disadvantaged people in accordance with the laws. Strengthen the regulation of market order and prices, and improve the supervision methods of food and medicine. Strictly implement the safe production accountability system and accident liability tracing system, and improve the disaster prevention and reduction system as well as public accident crisis management system to elevate the capability to handle all kinds of emergencies and crises. 

(7) Mobilize the entire city’s resources to successfully host the International Horticultural Exposition of 2011. 

Hosting the International Horticultural Exposition of 2011 is the first priority this year. We will mobilize all the resources we can get to make sure that the Expo is a high-level creative and influential international horticultural fair with distinct features that showcases the new achievements, new image and new style of Xi’an. 

Make progress in the landscaping, greening and impounding in the park. By the end of March, the landscaping and greening project in 109 exhibition gardens as well as the construction of four roads will be completed. Continue to focus on urban environment improvement and greening to build 2 flower districts, flower belts along three ring roads, five flower ports, six kinds of flower borders, 10 flower corridors, 20 flower beds and a hundred flower gardens. Coordinate and carefully arrange major activities of foreign and internal affairs, organize volunteer recruitment and training, and provide hospitable services to foreign and domestic guests. Actively solicit the support of ministries and departments of the central and provincial government as well as the media to promote a series of publicity events on the timeline of the Expo, such as “Appreciating the world’s garden, touring the thousand-year-old capital”. Carefully plan the opening and closing ceremonies of the Expo, and themed weeks in the principle of frugality but not without special features. Host the second World Chinese Education Conference to increase the participation rate and appeal of the Expo. Start the campaign to promote good manners, set new ethos to greet the opening of the Expo. Make extra efforts to improve services over the counter and call for civilized behaviors and improve the manners of all citizens and the entire city. Do a good job in transportation and security to make sure the Expo operates in a safe and orderly manner. 

Give full play to the influence of the Expo and let the idea of “Green is the new fashion” rooted in people’s mind. Exert all efforts to promote transformation and build Xi’an into an eco-friendly and green city, a city of beautiful mountains and clean waters. 

(8) Enhance the building of government itself to improve the administrative services. 

Insist on the process of scientific and democratic decision making. Voluntarily subject ourselves to the legal supervision of the People’s Congress and the democratic supervision of the CPPCC, as well as the supervision of the public and media. Perfect the hearing and risk evaluation process of major decision making. Reinforce and improve administrative legislation, strengthen the supervision mechanism of administrative review to regulate administrative actions. Speed up the transformation of government functions, make government affairs and process public, and promote pilot program of municipal budget openness. Further reduce and regulate affairs that require administrative examination and approval; speed up the construction of electronic administration and administrative service center, improve the transparency and credibility of government work. Intensify administrative inspection, efficiency supervision and performance evaluation, enforce the first inquiry accountability system, the system of processing according to set time and procedures, and the administrative accountability system to improve the government executive capacity. Evaluate the administrative work style and ethics in a democratic way and improve the work style and ethics in key departments and trades, and effectively solve prominent problems that infringe the interests of the people. Implement the responsibility system for improving the party’s work style and building clean government, regulate the project bidding process, state-owned land-use right transfer, equity transaction, government procurement, and the use of government cars; intensify the audit and supervision of financial capital and major government investment projects. Impose punishment according to the laws on all kinds of illegal conducts and disciplinary offence to create a just, honest and highly efficient investment environment. 

Fellow deputies! We feel the heavy responsibility on our shoulder to meet the new expectations of the citizens. Standing on the new starting point, we are filled with confidence. With the wise leadership of the provincial and municipal party committees as well as the provincial government, we will cherish the rare opportunity for and the promising development momentum and work hard for the goals of the 12th Five-year Plan and for the bright future of Xi’an.