China has set the target for the average annual economic growth rate in the 10th Five-Year Plan period (001-005) at around seven per cent. Though slightly lower than the actual growth rate of the 9th Plan period which was 8.3 per cent.

The targets of the plan based on an overall analysis of condition in all sectors of the economy, are as follows: maintain a fairly rapid growth in the national economy; achieve noticeable success in the strategic restructuring of the economy and make marked improvement in the quality and effects of economic growth to lay a solid foundation for doubling the 2000 GDP by 2010.

Other targets are: to make significant progress in establishing a modern corporate structure in state-owned enterprises; increase the soundness of social security system; improve the socialist market economy and open wider to the outside world and strengthen cooperation with other countries; expand avenues of employment; and achieve marked progress in improving socialist culture and ethics, democracy and the legal system.

According to Premier Zhu Rongji,"China has already reached the point where it cannot further develop the economy without making structural adjustments,.... In the next five years efforts will be intensified to adjust the patterns of economic development of different industries, different regions and urban and rural areas, with emphasis on the industrial structure".

Endeavours would also be made to stabilize and strengthen agriculture as the foundation of the national economy, accelerate industrial restructuring, reorganisation, upgrading and optimization, vigorously develop the service industry, accelerate the informationalization of the national economy and society, and continue to reinforce the infrastructure."

In addition, priority would be given to the development of science, technology and education, so as to further implement the strategy of developing China through science and education, invigorate science and technology, train more skilled personnel, and better integrate science, technology and education with the economy.

Explaining the principle of "making improvement of the people's living standards the prime goal",Rongji said that raising the people's living standards in both urban and rural areas is the basic goal of economic development and a crucial factor for expanding domestic demand and stimulating sustained economic growth. "We must give priority to raising the peoples living standards. To accomplish this we must create more jobs, increase personal income, distribute income more equitably and improve the social security system", he said.

The target of quadrupling the 1980 per capita GNP was met ahead of time, thanks to the sustained economic growth and improved efficiency. The objective set in the seven-year plan (1994-2000) to help 80 million people get out of poverty was basically attained. During the period, China opened wider to the outside world, and the pattern of all-round opening took shape.

The reforms of the foreign trade system steadily progressed, and the internationally-oriented economy grew rapidly. The total volume of China's imports and exports reached $474.3 billion in 2000, with exports accounting for $249.2 billion, a rise of 69 and 67 per cent, respectively over the 1995 figure.

During the period '96-2000, China successfully coped with the challenges posed by unexpected international events and protected itself from the impacts of the Asian financial crisis. The country controlled inflation during the initial stage of the 9th Five-Year Plan and curbed deflation in the middle and late stages. China also conquered severe floods and droughts, that struck the country during the five-year period.

On the issue of education, China had made progress during the five years in strengthening various types of education at all levels. Initial success was achieved in fulfilling the objectives of making nine-year compulsory education basically universal in the country and eliminating illiteracy among young and middle-aged people. Major progress was made in the reform of the management system of higher education.

During the 9th 5-Year Plan period, Chinese government resumed its exercise of sovereignty over Hong Kong and Macao, and historic progress was made in the great cause of peaceful reunification of the motherland. China managed to implement the principle of "one country, two systems" and the basic laws of the two regions were implemented in a comprehensive manner. Outstanding achievements were made in the work of the governments of the special administrative regions. Social stability and economic development were secured in Hong Kong and Macao.

The Premier has stressed that in the next five years (2001-2005), "we must unswervingly pursue reform, open China wider to the outside world, and break down institutional obstacles to the development of productive forces". He said that would provide a strong impetus for economic and social development.

In the next five years, China intends to intensify to adjust the industrial structure, regional economic structures and economic structures in urban and rural areas, with emphasis on the industrial structure. It is considered necessary to speed up economic growth and further develop labour-intensive industries and collectively and privately owned businesses. As an important pillar of the socialist market economy, an overall social security system has a significant bearing on the reform, development and stability of the nation.

China is planning to gradually adopt a system of unemployment benefits to help laid-off workers in state-owned enterprises. The final target of economic growth is to improve the material and cultural conditions of the people, which will also provide momentum for the sustainable development of the economy.

For the current five years, China's goals are to consolidate and strengthen the primary status of agriculture and accelerate re-organisation and restructuring of industry. Strengthening the position of agriculture was regarded as an important part of economic restructuring and the basis for maintaining economic growth and social stability.

Looking ahead, in the next five years, starting 2001, China planned to invest heavily in a number of projects of strategic significance, including transmission of natural gas and electricity from western to eastern regions. The big projects planned included Qinghai-Tibet Railway, the Beijing-Shanghai High-Speed Railway and a project to deliver river water from south to north.

Other major projects included the one to transmit gas from western to eastern regions which centred on a 4,200 km-long pipeline. It would transport natural gas, both for household and industrial use, from the Tarim Basin in the Xinjiang Uygur Autonomous Region, to Shanghai Municipality, east China, via Gansu Province, the Ningxia Hui Autonomous Region and Shaanxi, Shanxi, Henan, Anhui and Jiangsu provinces. The first phase of the gas project was scheduled to finish by 2003.It was expected to cost 120 billion yuan.

The project to transmit electricity from western to eastern regions was aimed at providing power to the developed eastern and coastal areas, which suffered from severe shortages of power supply, with electricity from the energy-abundant western areas. That project was estimated to cost over 100 billion yuan.

But possibly one of the biggest and most ambitious project planned by China during the current five-year (2001-2005) period is the Qinghai-Tibet Railway. It would link Golmud, Qinghai Province, with Lhasa, the capital of Tibet Autonomous Region. The railway track would run up to an incredible 1,118 km in one of the most difficult terrain in the world. But best of all, when completed, it would put to end Tibet's history of not having a single inch of railway.