The national economy has maintained a sustained, rapid and sound development. By pursuing the
principle of stimulating domestic demand and adopting the proactive fiscal policy and the sound
monetary policy in good time, we overcame the adverse effects the Asian financial crisis and
world economic fluctuations had on China, and maintained a relatively rapid economic growth.
The strategic adjustment of the economic structure has been crowned with success. The position
of agriculture as the foundation of the economy has been strengthened. Traditional industries
have been upgraded. High and new technology industries and modern services have gained speed.
A large number of infrastructure projects in such areas as water conservancy, transportation,
telecommunications, energy and environmental protection have been completed. Significant headway
has been made in the large-scale development of China's western region. Economic returns have
further improved. National revenue has kept growing. Reform and opening up have yielded
substantial results. The socialist market economy has taken shape initially. The public sector of
the economy has expanded and steady progress has been made in the reform of state-owned
enterprises. Self-employed or private enterprises and other non-public sectors of the economy
have developed fairly fast. The work of building up the market system has been in full swing.
The macro-control system has improved constantly. The pace of change in government functions
has been quickened. Reform in finance, taxation, banking, distribution, housing, government
institutions and other areas has continued to deepen. The open economy has developed swiftly.
Trade in commodities and services and capital flow have grown markedly. China's foreign
exchange reserves have risen considerably. With its accession to the World Trade Organization,
China has entered a new stage in its opening up. Notable progress has been registered in
improving socialist democracy and spiritual civilization. Continued efforts have been made to
improve democracy and the legal system. New steps have been taken in political restructuring.
The patriotic united front has grown stronger. Further progress has been made in the work
relating to ethnic, religious and overseas Chinese affairs. Fresh progress has been made in
keeping public order through comprehensive measures. Science, technology, education,
culture, health, sports, family planning and other undertakings have moved ahead. The
media and publicity work as well as ideological and moral education have kept improving.
The people's cultural life has become increasingly rich and colorful.