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NPC National People’s Congress of China 《中国人大》对外版 ISSUE 2 · 2012 CHINA’S SHENZHOU-9 MISSION SUCCESSFUL ISSUE 2 · 2012 1 Jing Haipeng (middle), Liu Wang (left) and Liu Yang, the three astronauts for the Shenzhou-9 mission, participate a training at the stimulated re-entry capsule on June 15.

Qin Xianan TV grab taken on June 24, 2012 shows manual docking between Shenzhou-9 spacecraft and Tiangong-1 lab module being conducted.
Xinhua 2 NATIONAL PEOPLE’S CONGRESS OF CHINA Chinese astronauts wave hands after coming out of the re-entry capsule of Shenzhou-9 spacecraft in Siziwang Banner of North China's Inner Mongolia Autonomous Region, on June 29, 2012.

Zhang Ling The docking of Shenzhou-9 at the Jiuquan Satellite Launch Center on April 24.

CFP ISSUE 2 · 2012 China’s spacecraft Shenzhou-9 blasts off from the launch pad at the Jiuquan Satellite Launch Center at 18:37 on June 16.
CFP 3 6 China’s Shenzhou-9 mission successful Contents Special Report Legislation Democracy 6 China’s Shenzhou-9 mission successful 10 Chinese top legislator’s Europe tour sows seeds for rich harvest 22 Providing the legal guarantee for activities of deputies 14 Beijing starts crackdown on illegal aliens 17 NPC Standing Committee approves Law on Exit and Entry Procedures 20 721 foreigners get ‘green cards’ in Beijing 4 NATIONAL PEOPLE’S CONGRESS OF CHINA 14 Beijing starts crackdown on illegal aliens 28 Stressing stable growth and exploring new road 40 Qiangba Puncog: Tibet-related issues concern China’s core interests 22 Providing the legal guarantee for activities of deputies ISSUE 2 · 2012 Interview 28 Stressing stable growth and exploring new road 33 Shanghai in transition People 40 Qiangba Puncog: Tibet-related issues concern China’s core interests ISSUE 2 · 2012 Picture 42–47 COVER: China’s manned space docking mission between Shenzhou-9 spacecraft and Tiangong-1 lab module has achieved a complete success.
CFP NPC General Editorial Office Address: 23 Xijiaominxiang, Xicheng District Beijing 100805,P.R.China Tel: (86-10)6309-8540 (86-10)8308-3891 E-mail: zgrd@npc.gov.cn ISBN 1674-3008 CN 11-5683/D Price:RMB35 Edited by The People’s Congresses Journal Published by The People’s Congresses Journal Printed by Beijing Guo Cai Printing Co., Ltd. in China 5 SPECIAL REPORT NPC Standing Committee Chairman Wu Bangguo shakes hands with scientists who have attended the launching of Shenzhou-9 at the Jiuquan Satellite Launch Center in Gansu Province on June 16.
Liu Jiansheng China’s Shenzhou-9 mission successful China’s manned space docking mission between Shenzhou-9 spacecraft and Tiangong-1 lab module has achieved a complete success, announced Chang Wanquan, chief commander of China’s manned space program on June 29.

The Shenzhou-9 spacecraft has landed safely at the main landing area in north China’s Inner Mongolia Autonomous Region and all three astronauts aboard are in good physical condition, said Chang.
The astronauts who fulfilled China’s first manned space docking safely returned to the earth on the morning of June 29.

The return capsule of Shenzhou-9 spacecraft touched down in Inner Mongolia Autonomous Region as planned.

Medical staff entered the capsule and reported the astro- nauts were in good conditions.
While in the capsule, the astronauts reported to the com- mand center: “We have returned, and we feel good.” Jing Haipeng, commander of the Shenzhou-9 crew, was the first to come out of the return capsule, followed by Liu Wang and the country’s first woman astronaut Liu Yang.

Chinese leaders including Premier Wen Jiabao, He Guo- qiang and Zhou Yongkang arrived at the Beijing Aerospace Flight Control Center on the morning of June 29 to watch the return of Shenzhou-9 spacecraft.
Premier Wen delivered a congratulatory note from CPC Central Committee, celebrating the successful landing of Shenzhou-9 spacecraft.

The CPC Central Committee express congratulations to astronauts who successfully completed this mission and all people engaged in the mission.

The note was jointly sent by the Central Committee of the Communist Party of China, the State Council and the Central Military Commission.
The successful rendezvous and docking between the target orbiter Tiangong-1 and the Shenzhou-9 spacecraft marks a sig- nificant breakthrough in China’s space docking technology, and 6 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC Chinese President Hu Jintao talks with three Chi- nese astronauts who are conducting scientific tests in Tiangong-1 space lab module, in Beijing on this combo picture taken on June 26, 2012.

Hu came to the Beijing Aerospace Control Center and talked with the astronauts.
Ju Peng Premier Wen Jiabao shakes hands with staff members in the Beijing Areospace Flight Con- trol Center on June 29.

China’s manned space docking mission between Shenzhou-9 space- craft and Tiangong-1 lab module has achieved a complete success after the re-entry capsule of Shenzhou-9 spacecraft landed safely in Siziwang Banner of Inner Mongolia Autonomous Region on June 29.
Rao Aimin Photo taken on June 24, 2012 shows the screen at the Beijing Aerospace Control Center showing the manual docking between Shenzhou-9 spacecraft and Tiangong-1 lab module being conducted.

Zha Chunming ISSUE 2 · 2012 7 SPECIAL REPORT The chart shows the pro- cedure of rendezvous and d o c k i n g o f S h e n z h o u - 9 spacecraft and Tiangong-1 space lab module.
Cui Ying and Gao Wei Establishing communication Tracking Tiangong-1 Automated docking or manual docking Separation of Tiangong-1 and Shenzhou-9 Separation of module and rocket Throwing off the fairing Separation of re-entry module and orbital module Separation of re-entry module and propelling module Re-entry module entering the atmosphere Opening the main parachute Throwing off the escape tower Starting reverse-thrust engines and soft landing Launch Landing successfully Tiangong-1 and Shenzhou-9 The Procedure of Rendezvous and Docking 8 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC it also marks decisive progress in fulfilling the second strategic target of China’s manned space program pm.
On June 24, the three Chinese astronauts successfully completed a manual docking between the Shenzhou-9 space- craft and the orbiting Tiangong-1 lab module, the first such attempt in China’s history of space exploration.

Astronaut Liu Wang, assisted by his teammates Jing Haipeng and Liu Yang, controlled the Shenzhou-9 spacecraft to dock with the Tiangong-1 space lab module at 12:48 pm, which were reconnected about seven minutes later.
About one and a half hours before the docking, Shen- zhou-9 parted from Tiangong-1 to a berth point 400 meters away from the module.

To leave room for adjustments, engineers set up four berth points for the spaceship on the same orbit 5 kilometers, 400 meters, 140 meters and 30 meters away from the orbit- ing lab.

As highly sophisticated space manoeuvre, manual docking requires the astronauts to connect together two orbiters trav- eling at 7.8 kilometers a second in space without a hitch.
“The manual docking was beautifully conducted.

It was very accurate and swift, “ said Liu Weibo, who is responsible for the astronaut system.

The manual docking was completed in only 7 minutes, 3 minutes faster than the automatic docking, said Liu.
The success of the manual docking shows that China has grasped space rendezvous and docking technologies and the country is fully capable of transporting humans and cargo to an orbiter in space, which is essential for the country’s plans to build a space station around 2020.

The three astronauts were sent into space aboard the Shenzhou-9 on June 16 from a launch center in northwest China’s Gobi desert.
The three astronauts also conducted a series of scientific tests during their 13-day space flight, which set a record for the longest space travel in the history of China’s manned space program.

(Xinhua) Chinese space station to benefit world The successful launch of China's fourth manned spaceship paves the way for a future space station, which might subsequently benefit the world in space exploration.
Shenzhou-9 spacecraft, carrying two males and one female, break new grounds for the country's space mis- sions.

All the tests and experiments done in this mission well prepare the coun- try for building a space station in near future.

Two docking tests, one automated and one manual, are critical to opera- tions for the scheduled space station to receive supplies and accommodate astronauts.
The Shenzhou-9 crew has the longest stay in space, which helps test both the spacecraft and the orbiting module Tiangong-1 for functions and comfort for longer human stay.

So far human knowledge on outer space remains limited.

Pooling more resources and talents in the cause will no doubt broaden the horizon.

Chinese people have contributed several most important inventions to human civilizations, and are now work- ing in aspects of space exploration.
Key scientists of the Chinese manned space mission said that China presented a more efficient and eco- nomic way compared with Russian and US space explorations, while learning a lot from foreign experience.

China is willing to share its experience with the rest of the world.

China is the third to establish a mechanism for selecting and training astronauts, next to the United States and Russia.

China will offer access to astronauts' training from other coun- tries, especially developing ones.
After the service of the International Space Station is designated to cease in 2020 or 2028, a new space station might be needed by the whole world.

China plans to set up a space station by 2020 and open it to global scientists.

(Xinhua) Teachers and kids from a kindergarten in Mawa village, Zaozhuang city, Shandong Province wave national flags on July 18 to celebrate the successful launch of Shenzhou-9 spacecraft.
Sun Zhongzhe ISSUE 2 · 2012 9 Tiangong-1 and Shenzhou-9 The Procedure of Rendezvous and Docking SPECIAL REPORT NPC Standing Committee Chairman Wu Bangguo (right) meets with Spain’s Senate President Pio Garcia-Escudero in Madrid, capital of Spain, May 25.

Liu Jiansheng Wu Bangguo (right), Chairman of the NPC Standing Committee, holds talks with President of the Spanish Congress Jesus Posada in Madrid, Spain, May 24.
Ju Peng Chinese top legislator’s Europe tour sows seeds for rich harvest On May 29, 2012, China’s top legislator Wu Bangguo returned home after wrapping up a four-nation Europe tour that enhanced goodwill and trust and boosted coopera- tion and partnership.
Wu’s journey to the Netherlands, Croatia, Luxembourg and Spain, China’s latest major diplomatic action in Europe, had great significance in deepening China’s co- operative ties with the four countries and consolidating the comprehensive strategic partnership between China and Europe.

Wu, Chairman of the Standing Committee of China’s National People’s Congress (NPC), spoke with the heads of State, government and parliament of the four countries and reached broad consensus with them.
His proposals on promoting bilateral ties were widely accepted by the leadership and public of his host countries.

10 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC Wu Bangguo, Chairman of the NPC Standing Committee, pays a visit to the branch of Bank of China in Luxembourg on May 23.

Zhou Lei Wu Bangguo, Chairman of the NPC Standing Committee, meets with Laurent Mosar, Presi- dent of the Chamber of Deputies of Luxem- bourg, in Luxembourg, on May 22.
Ju Peng NURTURING TIES Wu’s visit came as China marks the 40th anniversary of diplomatic ties with the Netherlands and Luxembourg and the 20th anniversary with Croatia.

China and Spain will celebrate their 40th anniversary next year.

In each of the countries, Wu spoke highly of what had been achieved through cooperation and envisaged bright prospects for the future.
Wu said China highly values its friendly cooperation with the four countries and is ready to work with them to further enhance mutual understanding and support on major issues, including those related to sovereignty and national security, stability and development, and constantly consolidate the po- litical basis of friendship and mutual trust.
The leaders of the four nations agreed that Wu’s visits were important events in their countries’ relations with China and would play important roles in furthering bilateral relations.

They said enhancing ties with China was the consensus reached among the government, parliament and political par- ties in their countries.

They also reiterated that their countries adhere to the one- China policy and are willing to work with China to advance bilateral ties further.
BOOSTING COOPERATION Wu highly valued China’s economic cooperation with the four countries he visited and put forward a set of pragmatic and specific ideas and suggestions for deeper cooperation of mutual benefit.

Wu highly valued China’s economic cooperation with the four countries he visited and put forward a set of pragmatic and specific ideas and suggestions for deeper cooperation of mutual benefit.

the European Union.
the European Union.

Wu said the two sides should continue to tap their own technology and market advantages to speed up cooperation in such fields as high-end manufacturing, new energy and environmental protection and foster new growth points.

Wu said China and Croatia currently should take the devel- opment of bilateral economic cooperation as a priority in their bilateral ties and strive to transform the good political ties be- tween the two countries into fruitful economic cooperation.
He said China and Spain should cooperate in dealing with financial risks and promote growth through cooperation, fo- cusing in particular on strengthening cooperation in trade, investment and agriculture.

The leaders of the four countries echoed Wu’s suggestions vigorously, expressing their willingness to further deepen mu- tually beneficial cooperation with China and constantly lift its quality and level.
They also welcomed more Chinese enterprises and tourists The Netherlands is China’s second largest trade partner in to their countries.

ISSUE 2 · 2012 11 SPECIAL REPORT China’s top legislator Wu Bangguo donates books to the President of Zagreb Univer- sity when attending the opening ceremony of the Confucius Institute of Zagreb Uni- versity in Croatia on May 19.
Ju Peng China’s top legislator Wu Bangguo delivers a speech at a reception in Zagreb, capital of Croatia on May 19 to mark the 20th anniversary of the establishment of diplomatic relations between the two nations.

Ju Peng To push forward business-to-business cooperation, Wu also visited enterprises.
STRENGTHENING PUBLIC SUPPORT Wu said that the development of relations depends on people-to-people friendship and that parliamentary members act on behalf of the people while the parliament represents the public will.
Parliamentary exchanges provide an opportunity for prag- matic communication on issues of common interest, he said, expressing hope that his host countries and China take advan- tage of various exchange programs to promote cooperation in economic, trade, cultural and other fields and enhance mutual understanding between their peoples, especially young people.
The parliamentary leaders of the four nations agreed with Wu and conveyed readiness to carry out cooperation in all fields and on different levels to help the overall development of bilateral relations.

PROMOTING CHINA-EU RELATIONS Europe, as an important pole of the world, possesses a solid economic foundation and advanced technology superiority.

Promoting China-EU relations is one of China’s key strategies.
Wu said the two sides should enhance coordination on international and regional affairs and properly handle major concerns and sensitive issues to push forward the China-EU comprehensive strategic partnership.

As the world still faces an unbalanced recovery and the Eu- ropean sovereign debt issues remain prominent, it is necessary for Europe to achieve strong and sustainable economic growth, Wu said.
China would, as always, help maintain the euro’s credibil- ity and welcome European products and investment to the Chinese market, he said, adding he hopes that the EU would recognize China’s market economy status as soon as possible, relax high-tech export restrictions on China and act with re- straint in implementing trade remedy measures.

The parliamentary leaders appreciated China’s efforts in helping resolve the EU debt crisis, and vowed to strengthen dialogue and coordination on macroeconomic policy.
EXPOUNDING CHINA’S PRINCIPLES Mutual respect of sovereignty and territorial integrity and mutual respect and accommodation of core interests are the political basis for China to develop relations with other coun- tries and international organizations.

During the tour, Wu elaborated on China’s enormous progress in democracy, rule of law and human rights as well as in Tibet’s socioeconomic development, saying China respects the development paths other nations choose for themselves.
Chinese citizens enjoy broad rights and freedoms according to law, Wu said, adding that a country’s human rights practice will gain maximum public support only if it is based on the country’s historical and cultural traditions and social and eco- nomic realities.
He said Tibet has been an inalienable part of China since ancient times and China stands firmly against any kind of con- tact and communication between any country’s officials and the Dalai Lama, and strongly opposes any country or any indi- vidual trying to interfere with China’s internal affairs through the Dalai Lama.

His hosts recognized China’s progress in human rights, rule of law and other fields, and pledged not to support any form of “Tibet independence”.
(Xinhua) 12 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC Mutual respect of sovereignty and territorial integrity and mutual respect and accommo- dation of core interests are the political basis for China to develop relations with other countries and international organizations.

Boris Sprem, Speaker of the Croatian Parliament, meets with Wu Bangguo (left), Chairman of the NPC Standing Committee, in Zagreb, Croatia on May 18.
Liu Jiansheng Wu Bangguo (2nd from left), Chairman of the NPC Standing Committee, meets with presidents of the First and Second Chamber of Dutch parliament Fred de Graaf (1st from right) and Gerdi Verbeet (2nd from right) in The Hague, the Netherlands, on May 16.
Liu Jiansheng ISSUE 2 · 2012 13 LEGISLATION Beijing starts crackdown on illegal aliens By Yan Hao and Yao Yuan 14 NATIONAL PEOPLE’S CONGRESS OF CHINA Beijing starts crackdown on illegal aliens NPC Foreigners living in Beijing may find them- selves greeting police at their doors amid a crackdown on foreigners illegally entering, residing or working in the city that began on May 15, 2012.
The campaign, which runs until the end of Au- gust, will include household checks in Wangjing, Sanlitun and Wudaokou, areas known for their high concentration of foreign residents, as well as on-the-spot street checks that will require foreign- ers to present valid identification, according to a spokesman from the Beijing Municipal Public Se- curity Bureau.

Exit and entry police officers provide language services to foreigners living in Beijing’s Chaoyang District.
Police in the district can provide consultancy on exit and entry laws and regulations as well as handle foreign-related matters after re- ceiving emergency calls.

Wang Yu Foreigners found to be violating relevant laws may face penalties ranging from fines or detention to deportation, according to the police.
Police have also opened a tip hotline and will tighten reviews of visa applications during the pe- riod, the spokesman said, adding that the tasks will be completed by officers capable of speaking for- eign languages and trained in handling of related matters.

Foreigners found to be violating relevant laws may face penalties ranging from fines or detention to deportation, according to the police.

“There are no special groups before the law.


We will protect the legal rights of all people, including foreigners, who work and live in Beijing while punish- ing those who violate the law,” the spokesman said.

Although not officially confirmed, the campaign 15 Chinese and US students pay a visit to the Great Wall in Beijing on July 18.

Organized by the Huai- rou District Education Committee, students from the two countries conducted cultural exchanges for the first time.
Bu Xiangdong ISSUE 2 · 2012 LEGISLATION or a legal passport, as well as through unofficial ports of entry.

It is also illegal for foreign- ers to live in China on expired visas or residence permits, as well as acquire paid jobs without a proper work visa.

Legislative efforts The number of foreign- e r s c o m i n g t o C h i n a h a s increased dramatically since the adoption of opening-up and reform policies at the end of the 1970s.
Official figures indicate that the num- ber of foreigners entering China jumped from 740,000 in 1980 to 27.11 million last year, with an average annual increase of 10 percent over the last decade.

Foreigners applying for visas and residency permits wait at the reception hall of the exit and entry administra- tion, Beijing Municipal Bureau of Public Security.
Wu Mangzi According to Chinese law, it is illegal for foreigners to enter China without a valid visa issued by Chinese au- thorities or a legal passport, as well as through unofficial ports of entry.

is believed to be linked to the detention of a British national who allegedly attempted to sexually assault a Chinese wom- an on a road in downtown Beijing on May 8.
Although the British man was confirmed to have a valid travel visa, similar incidents may become more frequent if the country does not enhance related law enforcement and legislation, according to Professor Xiang Dang from the Chinese People’s Public Security University.

According to data provided by the city government, there are about 120,000 foreigners living in Beijing.
Gina Mitchelmore, a South African national working at an international kindergarten, said that for her and others who have followed protocol, the campaign may only affect them in a small way.

“Other than the possibility that we may be forced to carry our passports at all times, I don’t foresee any direct effect on my own life here,” Mitchelmore said.
According to Chinese law, it is illegal for foreigners to en- ter China without a valid visa issued by Chinese authorities “ C h i n a h a s b e c o m e a middle-income country, and its fast-growing economy is becoming a magnet for for- eigners who wish to engage in illegal business,” said Ma Li, a senior advisor to the State Council, China’s cabinet.
The British national’s alleged assault has angered some Chinese, who called for more severe punishments for for- eigners in response to a perceived phenomenon of blind fa- voritism.

However, other voices calling for central authorities to regulate foreign entry through better laws have been heard more clearly.

China’s top legislature is considering updating the country’s current laws to regulate the entrance, residence and working status of foreigners in accordance with new conditions.
The National People’s Congress (NPC) Standing Commit- tee reviewed a draft law last December that combines two separate current laws regulating entry and exit procedures for Chinese nationals and foreigners, respectively.

The NPC also dispatched four survey teams to Guang- dong, Hainan, Guangxi and Beijing to investigate the illegal entry and residence of foreigners in February and March.
The teams found that the country’s current laws give fewer options for law enforcement agencies, while police lack a na- tionwide database to help them coordinate related efforts.
In April, the draft law on entry and exit procedures for Chinese nationals and foreigners was submitted to the 26th meeting of the 11th NPC Standing Committee for delibera- tion, which further standardizes foreigners’ working in China, defines illegal working for foreigners and stipulates measures for review and deportation of foreigners illegally entering, residing or working in China.
(Xinhua) 16 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC NPC Standing Committee approves Law on Exit and Entry Procedures The Law on Exit and Entry Procedures for Chinese Nationals and Foreigners, which was adopted by the Standing Committee of the 11th NPC on June 30, 2012, will take effect on July 1, 2013.

The promulgation of the law aims to tackle the changed situation of exit and entry by consummating current laws.

Besides, it will help safeguard sovereign- ty, national safety and social order.
It will further accelerate China’s international cooperation and opening-up to the world as well.

Patrol officers from Dandong frontier inspection station in Northeast China’s Liaoning Province examine the credentials of outbound passengers at an international train on April 12.

Wu Qiong ISSUE 2 · 2012 17 LEGISLATION The law adds new provisions on the collection of finger- prints and other biological information of those who enter and leave China.
and residence of aliens in China as well as the border inspection for transporta- tions.

After the implementation of the new law, the current Law on the Control of the Exit and Entry of Chinese Citizens and the Law on the Control of the Exit and Entry of Aliens will be abolished.
Equal importance to service and administration The new law adds some new provi- Police officers from the exit and entry department of Foshan Police Bureau in Guangdong Prov- ince collect fingerprints of a citizen who applies for electronic passport on May 15.

CFP Unify the administration of exit and entry for Chinese nationals and foreigners According to current law, China’s administration of exit and entry for its nationals is different from that for foreign- ers.
In 1985, the NPC Standing Committee approved the Law on Exit and Entry Procedures for Chinese Nationals and the Law on Exit and Entry Procedures for Foreigners separately.

One year later, the State Council formulated the detailed rules for the implementation of the two laws.

The above-mentioned laws and decrees have played an important role in regulating the exit and entry order, pro- moting personnel exchange and serving reform and opening up.
With the rapid economic and social development and expanded opening up, international exchanges have become more frequent and the numbers of Chinese nationals going abroad and foreigners coming into China have increased dramatically.

It is necessary to find out new solutions for the new situations and problems.

So in this case, we have to in- tegrate the current laws and regulations on exit and entry in order to formulate new laws on exit-entry for both Chinese nationals and foreigners.
In 2006, the NPC Standing Committee approved the Law on Passport.

It regulates the application of passports and others.

Taking this fact into consideration, the new law on exit and entry integrates all the parts except that related to passport.

The new law is suitable not only for the exit of Chi- nese citizens, but also applies for the entry of aliens, the stay sions.

The law gives equal importance to service and administration.
In the General Provisions, it specifies that the responsible organizations and departments should take measures to increase the quality of their services and ad- ministration.

They are expected to be impartial and effective to provide conveniences to the people.

It is their responsibil- ity to maintain a secure, stable and easy exit and entry order.

The law also regulates that for ports and frontier inspection stations should facilitate the exit and entry for Chinese citi- zens.
According to the law, a new category called “qualified per- sonnel introduction” is to be listed in the visa types.

Rules on investigations against illegal activities and remedy system are adopted into the law.

It also specifies the procedures to follow.

Provinces adjacent to neighboring countries are au- thorized to make provincial decrees and regulations based on the agreements reached between China and its neighbors on frontier management.
The law adds new provisions on the collection of finger- prints and other biological information of those who enter and leave China.

Approved by the State Council, the Ministry of Public Security and the Ministry of Foreign Affairs are li- able to draft regulations on collection of fingerprints and other biological information.
For those foreign governments that have special requirements for Chinese citizens to apply for visa and have special rules and regulations on exit and en- try, the Chinese government will take counterpart measures accordingly.

The law also draws lessons from the practical experiences that have proved effective in administration of exit and entry.

18 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC residence permit application, inspection and registration system.
It also stipulates that any Chinese citizen, legal per- son or organization who have found illegal entry, sojourn and employment of foreigners should report to the local po- lice instantly.

According to the law, aliens cannot perform activities that are not in line with their initiative residence purpose.

All the foreigners are required to leave China before their residence permits expire.
Besides, foreigners are demanded to bring their passports, travel documents or residence permits with them in case of police’s inspection.

After their accommodation in China, they are required to register and cannot enter areas that are not open to aliens.

To solve the above-mentioned problems, more measures are needed to regulate the employment order among for- eigners in China.
China is a big country of human resources, therefore, it prefers to introduce high-end talents and limit the employment of ordinary laborers.

According to the new law, all aliens who intend to work in China are required to get work permits and residence permits.

The State Council will regularly issue job guidance for foreign- ers in China to meet the requirements of economic and social development as well as the supply and demand of human resources.
As a result, the State Council is responsible for the drafting of concrete regulations of the law.

Besides, the new law also clarifies the definition of illegal employment, which refers to activities that foreigners work in China without work and residence permits, work in fields that exceed their work permits.

Moreover, international students who break related regulations will all be regarded as illegal employment whether they have gained salaries or not.
Also, it regulates the punishment on those aliens who work illegally and Chinese citizens or organizations that in- troduce or employ aliens illegally.

The new law also clearly regulates measures to investi- gate and repatriate those of illegal entry, residence and em- ployment.

(NPC) According to Chinese law, foreigners who are found illegally dwelling in China will be fined 500 yuan per day.
Meitang Cartoons 19 For example, the General Provisions stipulate that the State will establish the information platform for administration of exit and entry in order to share information among related administrative organizations.

It has also set up temporary entry permit system.

Improve administration of exit and entry for Chinese citizens Passport is the main identity of Chinese citizens when they enter and leave China.

The Passport Law stipulates the issuance procedure of passport.
Special pass is needed for Chinese citizens when they visit Hong Kong, Macao and Tai- wan according to the corresponding regulations drafted by the State Council.

Therefore, the new administrative law on exit and entry regulates that Chinese citizens should apply for passports or other travelling documents according to the laws and regula- tions when they leave or enter China.

Chinese citizens travel- ing to Hong Kong, Macao or Taiwan should apply for special documents accordingly.
The new law also stipulates that only after their identity documents are being checked, Chinese citizens are allowed to leave or enter China.

Cases that are not allowed to leave China are also listed.

Legislation to solve issues of illegal entry, residence and employment of foreigners With China’s social and economic development, the problems of foreigners’ illegal entry, residence and employ- ment have increased.
The new law stipulates the measures on visa issuance, sojourn and entry of foreigners as well as the punishment towards those illegal activities.

The new law is strict to the issuance of visas to funda- mentally prevent illegal activities.

When applying for a visa, foreign applicants need to offer invitation letters provided by Chinese organization or citi- zens.

According to the law, the Chinese organizations or in- dividuals are responsible for the authenticity of the invita- tion letters.
For those who provide illegal invitation letters or application materials, a fine of 5,000-50,000 yuan will be levied.

Besides, all the illegal income will be confiscated and the responsible organizations or individuals should pay the cost for the foreign applicants.
Besides, the law specifies six occasions that the visa ap- plications would be rejected: those who have been expelled or expatriated could not be permitted to enter into the nation within a certain period of time; those with serious mental disorder, epidemic tuberculosis or other epidemic diseases that may bring harm to public health; those who might be harmful for the State security and interests, who may destroy social order or involve other illegal or criminal activities.
The provisions aim to guarantee the visa authori- ties to exercise national sovereignty.

The exit and entry law enhances the administration on the sojourn and residence of foreigners.

It regulates their ISSUE 2 · 2012 LEGISLATION 721 foreigners get ‘green cards’ in Beijing By Tong Shuquan contributions to China.

Statistics indicate that 67 holders are working in Beijing, 270 applied for family reunion and 115 are emigrants from abroad.
Only four people were granted permanent resident for investment in China, accounting only for 0.6 percent of the total applicants.

According to Chinese regulations, foreigners need to invest at least half a million dollars of registered capital (invest in fields listed in Foreign Investment Industrial Guidance Catalogue or in western counties that need poverty alleviation funds) to apply for per- manent residence status.

Such requirement is lower than that in some developed countries.
According to the Ministry of Public Security, a total of 4,752 aliens have been granted permanent residence status in China, among them 1,735 are senior personnel as well as their family members, by the end of 2011.

In 2011, the municipal govern- ment of Beijing issued 9,974 work permits for foreigners and 1,198 certificates of foreign experts.

When speaking the sources of those foreigners, the US, Republic of Korea, Japan, Canada and Germany take the top five positions.
About 200,000 foreigners dwelling in Beijing According to statistics, there are about 200,000 foreign- ers living in Beijing, accounting for 1 percent of the popula- tion of the capital.

Most of the foreigners come for residence, business, visit and tourism.

Meanwhile, the percentage of foreigners in Beijing is lower than that in other international metropolitans, such as London and New York, where 10 per- cent of their populations are foreigners.
Officials from Beijing Municipal Public Security Bureau promised that the police departments in the capital will pro- vide equal and excellent services to all its residents, either from home or abroad.

In recent years, the Beijing police bureau has implemented a series of convenient measures to people living in the capital.

For example, in 2011, the bureau combined the management of foreigners with that of the police stationed in communi- ties.
In this way, the local police could handle the security alerts raised by foreigners as soon as possible.

To date, the community-based alert system has been extended to all the communities where foreigners live.

From May 15 to the end of August, the Beijing police launched a 100-day campaign against foreigners who illegally enter, live and work in the capital.

Police officials noted that it is a normal practice with the aim to protect the legal rights of the foreigners who live in Beijing.
Officials said they wish people from all walks of life could understand and support police’s efforts in this regard.

A foreigner living in Beijing receives a permanent residence certificate on May 26.

CFP A total of 721 foreigners have been given “green cards,” or permanent residence permits in Beijing, said authorities with the Beijing Municipal Public Security Bureau.
On May 26, the bureau launched a publicity campaign, promising to adopt a series of new measures, including handy registration of accommodation, issuance of bilingual police contact cards, to ensure all foreigners to live a convenient life in the city.
One-third of green cards given to outstanding foreigners Since the State Council adopted and implemented the Measures for the Administration of Examination and Ap- proval of Aliens’ Permanent Residence in China in 2004, altogether 852 foreigners have applied for the permanent residence status in China.

Among them, 721 applications have been approved, accounting for 84.6 percent of the total.
Permanent residence refers to the qualification that one government gives to an alien who has met certain require- ments and will be allowed to stay in that country without the limitation of period.

Foreigners who obtain the permanent residence permits can freely enter and exit China without any additional visa procedures.

The certificate of permanent residents can be also used alone as his/her legal identification cards.

In this sense, the permanent residence status is also called “green card” in China.
Among the 721 foreigners receiving green cards, 265 people or 36.8 percent of the total have made remarkable 20 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC 7 foreigner-oriented services Considering the needs of foreigners, Beijing Public Se- curity Bureau initiates seven services to better serve the foreigners in the capital this year.

First, conduct on-the-spot registration for foreigners as soon as they settle down in a community.
Second, offer accommodation booking and door- to-door registration services for those who are in need.

Third, distribute English-Chinese police contact card.

Fourth, use English-Chinese alert and service card.

Fifth, publish and is- sue guidance pamphlets to the foreigners living in Beijing.

Sixth, use text messages to remind those whose visas and residence permits are to expire.

Seventh, deliver police infor- mation and publicize policies and regulations.
Besides, the Beijing government also encourages the police to adopt more measures to serve foreigners according to the community’s concrete circumstances.

Take the message platform as an example, the police have sent text messages to remind 5,247 foreigners that their visas or residence permits will soon expire.

Since May, the Beijing Public Security Bureau has received more than 10 letters of appreciation from embassies and consulates in Beijing.
On May 24, the police received a phone call that a foreign boy was left on a bus stop and lost contacts with his parents.

The police then worked closely with the exit- A police officer issues a driving license to a South Korean man in Huad- ing Shijia Community, Wangjing area in Beijing on May 31.

Police set up a certificate station in the community to issue driving licenses as well to conduct annual update examinations for foreign drivers.
CFP entry administration authority and helped contact the boy’s parents within three hours.

Officials from the Beijing Public Security Bureau said that the new services mark the determination of the municipal government to further increase the services and administra- tion for foreigners who live in Beijing.
(Beijing Daily) Officers from Dandong Frontier Inspection Station in Northeast China’s Liaoning Province distribute toys and “Chinese knots” as gifts to South Ko- rean children who will return home on May 31, to mark the International Children’s Day.
Sun Motong ISSUE 2 · 2012 21 DEMOCRACY Providing the legal guarantee for activities of deputies ––Commemorating the 20th anniversary of the promulgation of the Law on Deputies to the National People’s Congress and Deputies to Local People’s Congresses 22 22 NATIONAL PEOPLE’S CONGRESS OF CHINA NATIONAL PEOPLE’S CONGRESS OF CHINA NPC The Great Hall of the People in Beijing.

CFP NPC deputies take a vote on March 14, when the 5th Session of the 11th NPC concluded at the Great Hall of the People in Beijing.
Liu Weibing Twenty years ago, one NPC deputy expressed his excitement on the introduction of the law on deputies as if “looking forward to the coming of spring”, causing resonance among numerous people working in people’s congresses at various levels.
For 20 years, from its introduction in 1992 to its amendment in 2010, the law has injected vigor and vitality into activities of deputies and witnessed the rapid development of the work of people’s congresses at all levels, reflecting the rising public awareness on de- mocracy and law and revealing the steady progress of Chinese people’s congress system.
Providing the legal guarantee for activities of deputies ––Commemorating the 20th anniversary of the promulgation of the Law on Deputies to the National People’s Congress and Deputies to Local People’s Congresses The introduction of the law in 1992: covering activities of deputies “After suffering heavy losses during the Cultural Revolu- tion, the people’s congress system has been revitalized since 1979 and entered into a new era,” said Chen Sixi, member of the NPC Standing Committee and Vice Chairman of the NPC Internal and Judicial Affairs Committee, recalling the background of formulating the law on deputies.
According to Chen, until the later stage of the Sixth NPC, relevant provi- sions on activities of deputies were still scattered in the Con- stitution and relevant laws.
Chen told the NPC Magazine, “in particular, there were almost no legal regulations on activi- ties of deputies when people’s congresses are not in session, and there were no clear legal provisions on how to carry out deputies’ inspections and fulfill their duties.” However, deputies to people’s congresses at various levels have spared no effort to practice, explore and innovate the people’s congress system.
Practical experiences have been ac- cumulated and formed into a strong public voice to formulate a law on deputies.

Many NPC deputies submitted bills or pro- The Great Hall of the People in Beijing CFP ISSUE 2 · 2012 ISSUE 2 · 2012 23 23 DEMOCRACY It has made relatively comprehen- sive regulations on the duties of deputies when people’s congresses are not in session, and has divided deputy inspections into individual and collective ones.
have improved when the law on deputies clearly stipulates that deputies’ inter-sessional activities, including inspection tours, are the performance of their duties as deputies.

“Many people come to me with their problems when the congress is not in session, and I even hardly have time to meet every one of them.” Besides, many important issues were discussed heatedly during the legislation process.

For instance, what kind of po- sition is a deputy?


When fulfilling their duties, who do depu- ties represent, the electoral units and districts, or the country and the region as a whole?

After repeated studies, according to Chen, law-makers finally clarified that deputies are component members of the organs of State power and participate in the exercise of State power.

The fulfilling of deputies’ duties is the performance of their official duties.
The country and society shall provide service guarantee for deputies in their performance of duties.

Meanwhile, the law clearly defines that NPC deputies repre- sent the whole population and their interests as a whole, and that deputies to local people’s congresses at various levels represent the interests of their regions as a whole, not only the interests of the electoral districts or the electoral units that have elected them.
The law requires deputies to deal with problems from the overall situation of the entire country or region and convey the opinions of the electoral districts or the electoral units that have elected them.

“The law on deputies also provides guarantees for the rights of deputies,” said Chen, adding that time and finances for the performance of duties as deputies must be ensured.
In addition, deputies shall hold no legal liability for their speeches or votes at various meetings of the people’s con- gresses and restriction of personal freedom on a deputy to a people’s congress shall be subject to the approval of the standing committee of the people’s congress at the corre- sponding level, providing the legal protection for deputies to speak their minds and make bold suggestions.

“This is of spe- cial significance to the protection of the rights of deputies,” Chen indicated.
Looking back on the introduction of the law in 1992, Li Bojun, Director General of the Office of the Credentials Com- mittee under the NPC Standing Committee and the Liaison Bureau, believed that it is a basic and important law specifi- cally safeguarding and regulating the activities of deputies to people’s congresses at various levels, and that it marks the start to cover activities of deputies by law.
NPC deputy Zhou Hongyu (right, front) investigates the safety of school buses in Hengdian Central Primary School, Huangpi District in Wuhan, capital of Hubei Province on February 21.

Cheng Min posals calling for the legislation.

“In response to public opinions, the Sixth NPC Standing Committee launched the special investigation on legislation.
The Seventh NPC Standing Committee formally raised the work on its legislative agenda and established a joint drafting group composed by staffs from the Research Office, Liaison Office and Legislative Affairs Commission of the NPC,” ac- cording to Chen.

The introduction of the law aimed to implement con- stitutional provisions and ensure that deputies to people’s congresses at various levels to exercise their duties according to law, fulfill their obligations and play their role as deputies in earnest.
Guided by this principle, law-makers commit- ted themselves in the legislative work and solicited opinions among deputies to people’s congresses at various levels.

On April 3, 1992, the Fifth Session of the Seventh NPC adopted and promulgated the law, covering the activities of deputies.

Significantly, the law has clearly defined and standardized the duties of deputies.

Chen indicated that the law has sum- marized deputies’ rights to deliberate, vote and elect during sessions.
In particular, it has made relatively comprehensive regulations on the duties of deputies when people’s congress- es are not in session, and has divided deputy inspections into individual and collective ones.

Luo Yifeng has his own feelings to this particular provi- sion of the law.

“Before the law was introduced, some people believed the activities of deputies ‘are finished when the congress is not in session,’” said Luo, deputy to the Sev- enth, Eighth, and Ninth NPC.
“When I was first elected as deputy to the Seventh NPC, I asked for opinions from people on some issues, and their reaction was ‘can you solve the problem if we talk to you?’ Since there was no law on depu- ties at that time and activities of deputies were completely voluntary, I was not sure about the influence of my activities when the NPC was not in session.” According to Luo, things 24 24 NATIONAL PEOPLE’S CONGRESS OF CHINA NATIONAL PEOPLE’S CONGRESS OF CHINA NPC their own production and work and live among the masses of the people, therefore holding natural and close ties with the people and having the most direct understanding and feelings for people’s expectations and requirements.” Xu stressed that this reflects the advantage of China’s people’s congress system.
Today, many people go to deputies to have their problems solved.

During the annual sessions of the NPC and the special surveys and law-enforcement inspections when the NPC is not in session, the words and deeds of deputies become the focus of people’s concern.
The amended law on deputies clearly requires deputies to maintain close contact with the voters of the electoral districts or the electoral units that elected them and through various ways, hear and convey their opinions and demands, and strive to serve the people.
Given that the most fundamental and major way for depu- ties to perform their duties as deputies is attending sessions of people’s congresses, the law further stipulates that prior to attending sessions of the people’s congresses at the cor- responding levels, deputies shall hear the opinions and sug- gestions of the people, and make good preparation for their performance of duties as deputies during the sessions.
In recent years, besides the collective activities of deputies when the people’s congress at corresponding level is not in session, more forms of activities, including “Activity Day of Deputies” and deputies’ hotlines, have been innovated to ce- ment close contact of deputies with the voters of the electoral districts or the electoral units that elected them.
The 2010 Amendment to the Law: More attention to democratic details With the rapid and consistent development of social prac- tices and legislations, the law on deputies was “overhauled” for the first time in 18 years in 2010.

Xu Anbiao, Director-General of the National Laws Office of the Legislative Affairs Commission, recalled the two-year revision process.

Xu, who has participated the entire legisla- tion process, indicated that after the issuing of the No.
9 Doc- ument, local people’s congresses at various levels have car- ried out many good practices in light of regional conditions, and that people have higher requirements and expectations for deputies to perform their duties with growing democratic and legal awareness.
According to statistics, during the Third Session of the Elev- enth NPC in 2010, 403 deputies submitted 13 bills and 9 depu- ties submitted 2 proposals on revising the law, making it press- ing to enrich, supplement and improve the law on deputies.

“This offers a hard-won opportunity for amending the law,” said Xu.

On October 28, 2010, the Seventeenth Meeting of the Eleventh NPC Standing Committee adopted the amended law on deputies.
The amended law on deputies has further strengthened the senses of responsibility and mission and improved the protection of the performance of duties as deputies, better reflecting the features and advantages of the people’s congress system and making it practically more sci- entific and democratic.

The most note- w o r t h y h i g h l i g h t o f t h e a m e n d e d law is the focus on and refinement of the close contact between the people a n d d e p u t i e s t o people’s congresses at various levels.
According to Xu, “deputies to China’s people’s congresses at various levels are democratically elect- ed.

They are respon- sible to the people and subject to their supervision”.

Depu- ties come from dif- ferent regions, with various ethnic and social backgrounds, presenting a wide representation.
“As deputies, they are not separate from ISSUE 2 · 2012 ISSUE 2 · 2012 NPC deputies in Shandong Province conduct a collective inspection to logistics facilities, colleges and sports projects in Jining on December 8, 2011.

Wang Hui 25 25 DEMOCRACY of duties to the voters of the electoral districts that elected them.
Meanwhile, focusing on refining the standards for the deputies to perform their duties, the law clearly stipulates that deputies shall attend sessions of the people’s congresses at the corresponding levels regularly, earnestly deliberate on all bills and proposals, reports and other issues, put forward their opinions and do a good job in various work during the sessions; and that they shall actively take part in inspections, special surveys, law-enforcement inspections and other ac- tivities in relation to performance of their duties which are organized uniformly.
Deputies shall actively accept supervi- sion and answer inquiries.

According to relevant officials with the Legislative Affairs Commission of the NPC Standing Committee, these provi- sions have made positive responses to part of their require- ments for the performance of deputies’ duties, conducive to strengthening their ability of political participation, promot- ing the clear identity of deputies, and smoothing channels for the express of people opinions.
As an important constitutional law, the law on deputies is not only a “manifesto” to protect the rights of deputies, but a “Code of Practices” as well to standardize the performance of duties as deputies.

In the opinion of Wang Zhenmin, Dean of Law School of Tsinghua University, the 2010 amendment to the deputies law focused on stabilizing the foundation for China’s democracy building and paid more attention on details of the building, striving to truly implement the social democracy.
It is an important legislative practice to uphold and improve people’s congress system.

Looking back into the past twenty years: activities of deputies on a new starting point A deputy to people’s congress means a State position, instead of only an honor, and they have to work for the in- terests of the most people.

After two decades of institutional improving and practical experiencing, deputies now have a more clear role positioning and sense of responsibility.
Most deputies have realized that they “must live up to the great trust of voters and must have courage to shoulder their re- sponsibilities as deputies”.

According to Zhang Liansheng, deputy to the Tenth and Eleventh NPC, the amended law has intensified the close contact between deputies and the people.

Since the law was amended two years ago, Zhang has more real personal feel- ings.
“These stipulations are necessary and timely,” said Zhang, adding that voters who are living in grassroots level have personal and unique opinions on people’s well-being and have more say on certain issues than deputies.

“So depu- ties have to be more sympathetic to the public’s needs and listen to their opinions, only by doing so can they reflect vot- ers’ voices and demands.” With the institutional guarantee of legal improvement, deputies have much more to do when the people’s congress is not in session.
They attend the Standing Committee meet- ings as nonvoting participants for deliberation, take part in After a panel discussion, NPC deputies from Xinjiang Uygur Autono- mous Region reach agreement and sign their names on the four major proposals they will deliver to the 5th Session of the 11th NPC on March 4.

Li Xiaojian With the rapid and consistent development of social practices and legislations, the law on deputies was “overhauled” for the first time in 18 years in 2010.
To this end, the amended law has absorbed the precious experiences in practice by adding that deputies may hear and convey the opinions of and demands from the voters of the electoral districts or the electoral units that elected them through various ways when carrying out inter-session activi- ties.

“Deputies shall hear the opinions of the people not only prior to sessions, but also when the people’s congress is not in session,” explained Xu.
“It can be seen that the modification of the law has strengthened the advantage of China’s people’s congress sys- tem in close contact with the people from many aspects,” said Wang Zhenmin, Dean of the Law School of Tsinghua Univer- sity.

In addition, with the continuous progresses of China’s so- cio-economic and democratic political construction, people’s enthusiasm for political participation is rising, therefore put- ting forward higher requirements for the deputies to perform their duties.
In this sense, another highlight of the law revision is the enhancement of the supervision over deputies conforming to the needs of the people.
In the law, the supervision over deputies is elaborated in one chapter, adding that the deputies directly elected by the voters shall report, through various ways, their performance 26 26 NATIONAL PEOPLE’S CONGRESS OF CHINA NATIONAL PEOPLE’S CONGRESS OF CHINA NPC Xie Mulan (1st from left), an NPC deputy from Jiangxi Province, talks with two farmers on how to raise funds and expand their fish-farming scales on February 28.
Xie, who is also the Party secretary in Zhenjiao village of Yugan County, was making efforts to revise her proposals to be delivered to the 5th Session of the 11th NPC.

Gan Quan law-enforcement inspections, carry out special surveys and inspections, and settle down among grassroots people to revi- talize deputy groups.
The upgrading and improving of deputy working systems of the NPC Standing Committee have pro- vided a solid guarantee for deputies’ performance of their du- ties and made the majority of people feel a strong vitality of the people’s congress system.

When the NPC is in session, deputies actively offer their opinions and suggestions bearing in mind people’s well-being and their opinions.
At the Fourth Session of the Eleventh NPC in 2010, deputies submitted 8, 043 proposals in total, setting a record in history.

Meanwhile, the bills and propos- als are no longer confined to the industries and regions where deputies come from, but focusing on the deep-seated prob- lems of the country’s economic development and hot issues of public concerns and paying more attention to the quality of bills and proposals.
Chen Sixi has a lot of emotion and feelings for the birth and improvement of the deputies law.
“The legislative pro- cess has provided laws, regulations and standards for the ac- tivities and work of deputies; on the other hand, deputies are clearer about their responsibilities, rights and performance protection and their awareness of performance of duties has been strengthened, more conducive to increasing public un- derstanding on the institutional advantages of the people’s congress system and strengthening a sense of identity.” Meanwhile, “the formulation and improvement of the law on deputies have made deputies play their roles and thus promoted the improvement of the people’s congress system.” Chen Sixi indicated that, different from Western countries, Chinese people’s congress system reflects its democracy through wide representation of deputies.
“Deputies are elite people from all walks of life, and it is good for them to settle down in grassroots organizations to bring together public opinions and make decisions without leaving their work.

Only when deputies play their roles as deputies in effective manner, can they better reflect the features and advantages of the people’s congress system.” (NPC) ISSUE 2 · 2012 ISSUE 2 · 2012 27 27 INTERVIEW Policies to stabilize economic growth become more crucial in dealing with the economic downturn in China.
CFP ECONOMY DOWNTURN PRESSURE How to reinforce the role of pre- and micro-control policies to help address the economic downturn?

Wang Yiming, deputy Chief of the Macroeconomic Research Institute of the National Development and Reform Commission, has his idea.

Stressing stable growth and exploring new road By Zhu Jianhong Given the development pattern isn’t not changed substantially, we have been taking certain measures to keep the stable growth of investments.
Furthermore, we should explore new ways for this purpose.

For a period, urbanization is one of very important methods to enhance the stable economic development.

To move rural population to cities is the key of realizing urbanization.

28 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC big is the risk of current economic downturn?

Wang: It is right that there is still risk for the economy to go down but I think it’s controllable.

Firstly, the world economy is not as severe as 2009.
Though the world economy development trend is uncertain, the shrink of outside demand will affect us continuously.

Meanwhile, we should remember that in 2009 the three larg- est economies experienced a synchronized downturn.

This The usual view is that the potential growth rate of China is 8 percent to 9 percent.

The slow economic growth in the early period is close to this potential.
To attach great importance to stable growth and set the growth rate at a reasonable level to avoid consistent economy downturn Reporter: The State Council proposed to place the growth to a more important position in late May.

Why is there such a macroeconomic policy change?

Wang: At first, it is based on the judge and analysis of present economy status.

Many people noticed that the employments data released by US is not good.

Plus when the sovereign debt problem of Europe can be addressed is uncertain.
These highlight the hardship of world economy recovery.

The complication of external environment directly affected the external demand.

The exporting growth rate is only 4.9 percent in April, far below the market expecta- tion and 4 percent lower than last month.

Domestically, the downward pressure of the economy is still big.

The growth rate of the first quarter this year is 8.1 percent, 0.8 percent lower from the fourth quarter of last year.
Though it still within the expected in- terval, this is the recession of the fifth quarter.

The declining range is beyond the expectation.

Under such circumstance, to attach importance to the stable growth is a realistic selection.

Secondly, it helps the economic growth be at a sensible level to avoid the consistent downturn.

The usual view is that the potential growth rate of China is 8 percent to 9 percent.

The slow economic growth in the early period is close to this potential.
Such growth is rea- sonable and help release the pressure of price hike.

But if such recession carries on and goes below the bottom line, many companies will face more difficulties of production and opera- tion caused by the insufficient demand.

Since the profit model of benefiting from speed is un- changed, the company loss will become more severer resulting in more laid-off.

Thirdly, it creates conditions for structure transfer and pattern transition, which needs sound economic environment.
The growth can- not be too quick or too slow.

We can see clearly from recent years’ development that the exces- sive increase of economy growth leads to the big demand so that the downward production capacity gets space to develop instead of being eliminated.

The risk of economic downturn is still controllable and the space of pre- and micro- control of macroeconomics policy is enlarged Reporter: The data released in April is not pessimistic.
For example, the growth of above-scale industries is only 9.3 percent, rare for the recent years.

This will make many people recall the situation of late 2008 and early 2009.

How Data from the National Bureau of Statistics indicate that the annual growth of Chinese economy has reached 10.7 percent from 2003 to 2011, much higher than the 3.9 percent of the world average.

As a result, China became the second largest economy in 2010, ris- ing from the 6th in the year 2002.
The picture shows a bird’s-eye view of Qingdao Port in Shandong Province.

Xinhua year is different.

In the Euro zone, impacted by the sover- eign debt crisis, the economy fell into decline.

But the sign can be seen that economy in US and Japan are going better.

Comparing with the past, the world economy is improving in general.

International Monetary Fund (IMF) also increased the global economy growth forecast from 3.3 percent to 3.5 percent.
Secondly, the investment growth is gradually becoming stable.

From January to April, the Investment in fixed assets has an increase of 20.2 percent like for like.

The growth rate is down by 0.7 percent comparing to the date of January to March.

Meanwhile, we conducted targeted preset fine tuning of macroeconomic policy and took certain measures to sta- ISSUE 2 · 2012 29 INTERVIEW the fluctuation of short term demand and the fall of middle and long term potential growth.
To sum up, it is a result func- tioned by multiple factors.

Different from the past when the impacts are just from the periodical economic adjustment and short term demand shrink, the economic growth downturn this time is affected by the structural element and change of potential growth.

Viewed from a long term, actually it started from the third quarter of 2007.

Shocked by the international finance crisis in the fourth quarter of 2008, the quarter decline rate was enlarged.
The downturn went to the lowest point in the first quarter of 2009 with a growth rate of 6.6 percent.

Later, with the implementation of stimulation measures, the growth rate went up again strongly, however, such increase is not sus- tainable as it was due to external stimulation instead of inter- nal motivation.
When entering in 2010, the quarter growth rate came down from 11.9 percent of the first quarter to 10.6 percent of the second quarter, 9.6 percent of the third quar- ter and 9.8 percent of the fourth quarter.

In 2011 the quarter growth rate decreased by quarter to 9.7 percent.

9.5 per- cent, 9.1 percent and 9.8 percent respectively.

It was further down to 8.1 percent in the first quarter of this year.

That is, the growth rate has fallen for five quarters successively.
Ob- served from this angle, the downturn is affected not only by the short term factors, but middle and long term ones.

Given this situation, to only rely on short term stimulation policies cannot solve the structural contradiction and decrease of potential growth rate.

If boosting the economy through the excessive policy involvement, the inflation, overcapacity and the structural contradiction will become more serious.

Therefore, it is not proper to release too much stimula- tion policies at present.
We should insist on “progress with the stability” and make more effort on preset fine tuning.

We should avoid aggressive polices to raise the economy growth rate through external stimulation with the fact of declining supply ability so that the inflation pressure will be heavier.

Meanwhile, we can use the policy properly with more efforts to prevent the continuous downturn of economy growth caused by multiple factors.
Reporter: Stable growth needs internal demand, how- ever, to increase the investment is a measure we are familiar with.

People are wondering if a large amount of stimulation policies will be released.

Wang: To deal with the crisis of 1998 and 2008, main fi- nancial policies we adopted were to increase investment and to expand spending.

These measures tackled the crisis effec- tively.

This year, the positive finance polices are being imple- mented with different contents and strength.
We control the scale of “spending expansion” and make more efforts on “tax reduction”.

“Tax reduction” mainly refers to structural tax reduction, including raising the value added tax and the levy point of operation tax so as to lessen the tax burden of small companies.

More income tax policies favorable to small companies are implemented.

We expand the experiment area of converting operation tax of service industry to value added tax.

The tariff of some imported goods is reduced.


The The picture shows a construction site of economically affordable hous- ing project in Haikou, Hainan Province on May 10.

Xinhua bilize the investments.

Moreover, the rapid growth of private investment and investment initiative of local governments reflected the investment growth is going stable.

Thirdly, the consumption demand is slightly affected by the economy cycle.

In recent years, consumption growth of residents in China is relatively stable.
Over 12 million people found jobs nationwide last year.

The income of urban and rural residents grows rapidly.

The investment in social secu- rity has a big increase.

These help improve the consumption capacity of urban and rural residents.

In the first quarter of this year, excluding the price impact, the actual consump- tion growth of urban and rural residents are 9.8 percent and 12.7 percent respectively, higher than GDP growth.

These help create conditions for stabilizing the consumption need.
If government placed more measures to stimulate the con- sumption, the stable growth should be carried on.

Fourthly, macroeconomic policies have more flexibility.

Especially the wakening of inflation pressure improves the space of preset fine tuning of macroeconomic policy.

Plus the financial and monetary policies have more rooms to maneu- ver; the risk of economy downturn is under control.
While making more efforts on pre-set fine tuning, it is necessary and has conditions to reasonably increase the public investment Reporter: The risk is controllable, but the economic data is continuously coming down.

What angles can we take to observe and analyze such trend?

Do you think if the stimulus policies of certain amount should be released?
Wang: Multiple factors lead to the economy growth downturn, including the bleak external and internal demand; the periodical adjustment and the structural element; and 30 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC tax burden of logistics enterprises is lightened.

As long as we carry on these structural tax reduction policies and relieve the burden of enterprises, the real economy development can be supported.
Regarding the investment, before the economic develop- ment pattern is changed substantially, to keep it grow sta- bly is an important condition for stable economic growth.

Though people worry that the increase of investment may lead to imbalance between investment and consumption and more reliance of economy growth on investment.

The fixed capital stock per capita in China is still relatively low.

There is still big room for investment increase.


With the precondition of reasonably adjusting and optimizing investment structure, it is necessary to enlarge the public investment and spend- ing.

Therefore, we should seriously tidy up the projects under construction or guarantee the funding of major projects and avoid half-completed projects.
Meanwhile, major projects With the precondition of reasonably adjusting and optimizing investment structure, it is necessary to enlarge the public investment and spending.

approved by the 12th Five-Year Plan (2011-15) should fol- low the construction timetable.
At the right time, a group of major projects should be launched that concerns the overall situation and takes a leading role, especially those relevant to railway, urban public transportation, energy saving and environment protection, water conservation, research and development platform, education and sanitation, information industry, etc.
Reporter: You mentioned just now that the fixed capital per capita in China is still low and there is still big room for investment increase, but there exist overcapacity and local debt issues.

Is it proper to launch new projects?

Wang: In the case of overcapacity of production industry, the new projects are mainly public infrastructure and social service ones, that won’t intensify the overcapacity of produc- tion industry.
Of course, we have loosened the investment entry requirements for these projects by encouraging private investment in public works, energy, telecommunication, education and medical industry.

On the one hand, there ex- ists excess liquidity; on the other hand, we face difficulties in financing.

It is illogical in theory.

It proves the financing channels are sluggish.

Even if for the projects with limited profit, the reasonable profitability model can be found so as to attract private investment.
Consumers go shopping at a supermarket in Nanjing, Jiangsu Province.

The growth rate of CPI in June reached 2.2 percent year-on-year, hitting a re- cord low within 29 months.

CFP ISSUE 2 · 2012 31 INTERVIEW We cannot follow the old routes for stable growth and urbanization is the most potential internal demand of our country Reporter: The regulation and control need well handle the relationship between growth, structure and price.
How do we understand and deal with the relationship between stable growth, structure transfer and price control?

Can we stick to the structure transfer under conditions of growth rate declin- ing?

If we release stimulation policies under the pressures of employment and other factors, will it bring the new circle of price rise of commodities and houses?

Wang: To handle the relationship between growth, structure transfer and price control is always a main line of the macroeconomic policies.
Stable growth is a crucial pre- condition and base of increasing employment opportunities, improving the income of urban and rural residents, bettering public service of the government and propelling the overall national strength to a new stage.

It is the key to resolve vari- ous conflicts and problems.

Structure transfer is a prereq- uisite of raising the economic growth quality and economic benefits and a basic path to speed up the transfer of economic development pattern.
Price control is an important precondi- tion of building sound development environment and a ma- jor measure to maintain the immediate interest of people.

To well handle relationship among the three is to balance them in term of macroeconomic policy.

Currently the contradiction of stable growth is more outstanding.

We need keep the economic growth rate at a reasonable level and avoid continuous downturn.
If the eco- nomic growth declines continuously, the pressures of vari- ous parties will be very heavy.

But we cannot repeat the old routes to keep the stable economic growth.

In the case that We must step up efforts of structure transfer; promote the balance and sustainability of economy growth so as to heighten the quality and benefits of economy growth.

the development pattern keeps no substantial change, we should take proper measures to keep the stable growth of investment.
We need to explore new roads in practice.

For a certain period from now, urbanization is the key to internally motivate the stable economy growth.

The priority is to turn the rural population to be citizens.

Urbanization is the most potential internal demand.

Among urban population of 700 million, 200 million are not urban residents.

If urbanization reaches 70 percent in 20 years, there are 300 million rural populations to be city citizens.
Such conversion will produce more demands and play a great role in economic develop- ment of China.

Of course, we also need to well handle the relationship be- tween stable growth and structure transfer.

We must curb the development of projects with high energy consumption and high pollution and avoid the revival of backward production capacity.
We must step up efforts of structure transfer; pro- mote the balance and sustainability of economy growth so as to heighten the quality and benefits of economy growth.

If we excessively pursue the growth speed resulting in the imbal- ance of overall demand and supply, the price hike pressure will be increased and the structure transfer targets cannot be achieved smoothly.

(People’s Daily) Villagers in a village of Miao enjoy better welfare and services in Xuyong County, Sichuan Province.
During the past years, local governments have sped up their efforts of industrialization and urbanization in order to build a new countryside and explore the cultures of ethnic minorities.
Liu Chuanfu 32 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC Shanghai in transition ––An interview with Peng Xiaofeng, Vice Chairman of NPC Financial and Economic Committee Night-view of the Bund in Shanghai CFP At the end of 2011, a research panel dispatched by the NPC conducted an on-the- spot survey on the transformation of economic development pattern in Shang- hai, China’s economic hub.

The panel was headed by Peng Xiaofeng, who is the Vice Chairman of the NPC Financial and Economic Committee.
During an exclusive interview with NPC Magazine, Peng told reporters that great achievements have been made in the implementation of scientific outlook of development and transition of economic pattern in recent years thanks to the leadership of Shanghai government and Party committee.

Though the speed of development lowered a little bit, its economic development pattern has accelerated for the sake of social welfare.
ISSUE 2 · 2012 33 INTERVIEW Headed by Peng Xiaofeng (3rd from left), Vice Chairman of the NPC Financial and Economic Committee, an NPC delegation conducts investigation and research in Shanghai.

Zhang Purui Stable economy and increased efficiency Peng told reporters that from 1992 to 2007, the annual average economic development of Shanghai was 12.7 percent, 2 percent higher than that of the national level.
After the out- break of international financial crisis, the economy of the city slowed down to 9.7 percent, 8.2 percent, 10.3 percent and 8.2 percent annually from 2008 to 2011.

A stable period of eco- nomic development has arrived.

At the same time, the comprehensive efficiency of eco- nomic development has increased continuously.

For ex- ample, the city’s occupational coefficient surged from 0.23 in the 10th Five-Year Plan period (2001-05) to 0.4 in the 11th Five-Year Plan period (2006-10).
The industrial input-output ratio increased from 1.3 to 1.6.

The overall productivity of la- bor increased from 95,000 yuan in 2005 to 159,300 yuan per person in 2010.

In the year 2010, Shanghai, whose land and investment in the fixed assets only accounted 0.07 percent and 1.9 percent of that of the nation respectively, created 4.2 percent of the nation’s GDP as well as contributed 7.1 percent of the nation’s financial revenue.

Besides, more innovations have been made in science and technology.
During the 11th Five-Year Plan period, the annual input into research and development increased 17.4 percent annually.

As a result, the input into R&D has reached 2.83 percent of the GDP in 2010, rising from 2.33 percent in 2005.

In 2011, the proportion is expected to reach 2.9 percent.

More importantly, Shanghai has achieved a lot in the energy saving and emission reduction.

reach 580 in 2011.
reach 580 in 2011.

By 2010, the application rate of scientific achievements has reached 86.7 percent; In other words, the contribution of scientific achievements to economy increased from the previous year’s 63.8 percent to 65.1 percent in 2010.

More importantly, Shanghai has achieved a lot in the en- ergy saving and emission reduction.
Based on the fulfillment of the targets set for the 11th Five-Year Plan period, the city’s unit energy consumption in the first three quarters decreased by 5.22 percent, which was 3.62 percentage points lower than the national average.

From January to November in 2011, the unit industrial added value energy consumption decreased by 8.87 percent, much lower than the average national rate.
Statistics indicated that the overall chemical oxygen demand, ammonia nitrogen and sulfur dioxide emission amount decreased 2 percent, while the oxygen nitrogen emission amount decreased by 1 percent.

It is safe to say that the an- nual emission could be realized.
Structural adjustment accelerated, service industry taking the lead During the same period of time, the number of patents per million people increased from 106 to 298, and estimates to Peng told reporters that they found that the proportion of service industries in Shanghai kept increasing.

The added 34 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC value of service industries in 2005 increased from 51.6 per- cent to 57.3 percent in 2010.
The scale of added value the second industries declined from 47.4 percent to 42 percent.

In 2011, the added value of service industries increased 9.5 percent, 3 percent higher than that for the industries, ac- counting 57.9 percent of the city’s GDP.

Modern service in- dustry has become a pillar of the economy.
In 2010, the total added value of manufacturing industry takes 30.2 percent of the GDP, the added value of cultural and creative indus- tries increased by 15.6 percent and takes 9.8 percent of the GDP, the added value of software and information industries increased by 15.2 percent and accounted 5.4 percent of the GDP.
It is estimated that for the year 2011, the productive service industry, cultural and creative industry and informa- tion service industry increased 15 percent, 20 percent and 10 percent respectively.

percent.

Investment in social welfare has been developing rapidly.

In the first three quarters of 2011, above 80 percent of the newly started residence buildings are indemnificatory housings, and the total investment increased 25.4 percent and accounted 33.9 percent of the total investment.
Private investment became very active in Shanghai.

In 2010, private investment increased by 19 percent while State-owned in- vestment decreased by 14.7 percent.

In the first three quar- ters of 2011, the private investment increased by 36.7 per- cent, accounting 40.9 percent of the total investment.

Besides, the consumption structure keeps upgrading.

Ser- vice consuming has become one of the new increase point.

The growth of service consuming is much rapid than that of the material consuming.
In the first half of 2011, the average service consuming expenses increased by 12.9 percent, 3.9 percent higher than the average consuming expenses.

The At the same time, the industry transformational development has achieved initial results.

The industrial structure has been optimized.

In 2011, the com- bined contribution rate of light industry, electronics, mechanical industry, automobile, electricity, tobacco, shipping, medicines and other industries have reached 70 percent of the industrial increase.
Also, the strategic new industries increased by 11.5 percent than 2010, 2.3 percent higher than that for other industries’ growth rate.

High energy consuming industries growth rate slowed down.

In 2011, iron and steel industry, chemical industry and petroleum industry and other high energy consuming indus- tries increased only 1.1 percent.

More importantly, 73 percent of the enterprises moved to the in- dustrial park area.

In 2005, the proportion was only 59 percent.


The railway of magnetically levitated trains connects Longyang Road and Pudong International Airport in Shanghai.

CFP Structural adjustment spurs consumption demand The investment and consumption ratio in Shanghai has become more rational than before.

The investment rate decreased to 43.2 percent in 2010 from the 49.9 percent in 2006.

On the other hand, the consumption rate increased from 48.4 percent to 54.9 percent.
The final contribution rate of consuming to the economic growth increased from 40.9 percent in 2006 to 70.1 percent in 2010, the contribution rate of the gross capital formation decreased from 52.3 percent to 28.5 percent.

Besides, the investment structure has been im- proved a lot.

In 2010, service industry investment takes 72.7 percent of the total investment.

In 2011, it increased to 74.1 growth rate for E-business is much higher than that for tradi- tional commerce.
Shanghai has become a hub of E-business in China, whose trading volume increased 23.5 percent, ac- counting 11.4 percent of the total commodity sales amount.

At the same time, the international trade structure has been optimized.

The growth rate of service trade is faster than that of commodity trade.
During the 11th Five-Year Plan period and first half of 2011, the import and export service trade amount increased 26.4 percent and 27.2 percent re- spectively, 10.6 percent and 6.2 percent faster than that of commodity trading volume.

The commodity tradition import increases faster than that for export.

In 2011, the trading export increased by 21 percent, 5 percent higher than that of export.

The increase of ordinary trade export is faster than that of processing trade.
In 2011, the ordinary trade export ISSUE 2 · 2012 35 INTERVIEW 2010, the lowest annual average income for urban and rural people increased 13.7 percent, more than 2 percent higher than the average in- crease.

Thirdly, public services have been enhanced.

With the constant widen- ing of social welfare, pension plan and medical insurance system cover 98 percent of local citizens.

Besides, the level of social welfare is increas- ing steadily as well.
During the 11th Five-Year Plan period, the urban insurance, county insurance and rural insurance system increased 79 percent, 82 percent and 237 per- cent respectively.

At the same time, all the employees in Shanghai have been covered by social insurance ei- ther in cities or in towns.

The indem- nificatory housing system has been improved a lot.

From 2007 to 2011, about 86,000 families benefited from the system.

For migrant work- ers’ children, they are allowed to get free compulsory education.
Three different levels of hospitals start serving citizens from all the urban and rural areas.

Li- braries, museums and art galleries open to the public free of charge.

Since 2005, every year 10,000 beds became available for seniors.

In 2010, altogether 100,000 seniors are stay- ing in aging organizations, which take 3 percent of the total number of senior population.
Focusing on service economy development Shanghai has already fulfilled the task set by the CPC Cen- tral Committee to realize industrial structure with service economy at the core.

For the next step, Shanghai will clearly set the target and focus on industrial adjustment.

A new industrial system with modern service industries and strate- gic emerging industries and advanced producing industries as the main industries will be formed in the near future.
In 2015, it is expected that the added value for service industry will take 65 percent of the city’s GDP.

Firstly, Shanghai is trying to speed up the service industry and increase the quality of services.

Based on the idea of build- ing international economic, financial, transportation and trade center, Shanghai is focusing on developing finance, logistics, modern trade and business, information services, cultural cre- ativity etc.
It is expected that until 2015, the added value of fi- nancial industry, logistics, shipping, trading, cultural creativity industry will take 15 percent, 13 percent, 15 percent, 25 percent and 12 percent of the GDP respectively.

The service trade im- port and export volume will double that of 2010.
At the same time, Shanghai has made its own plans for the 12th Five-Year Plan period, with focus on research and development, mar- A view of Shanghai Zizhu High-Tech Industrial Development Zone CFP increased by 24.8 percent, 15.6 percent faster than that of processing trade export.

Improvement of welfare for a more harmonious society Peng told the reporters that with the slow-down of the eco- nomic development and the transition of economy, the pace for social welfare improvement has been sped up.
A more harmonious society lies not only in the improvement and optimization employment structure as well as the increase of household income and of public services.

Firstly, the employment situation in Shanghai has been improved.

During the 11th Five-Year Plan period, the annual new positions in Shanghai were 667,000 in average, the un- employment rate dropped from 4.4 percent in 2005 to 4.2 percent in 2010.
In 2011, there were 642,000 new positions in Shanghai while unemployment rate remains at 4.2 percent.

From the employment structure point of view, the employ- ment rate in service industry increased from 42.6 percent in 2000 to 54.6 percent in 2010 while the employment rate for second industry decreased from 44.9 percent to 42.5 percent.

Secondly, the level of household income increases con- tinuously.
During the 11th Five-Year Plan period, the annual urban and rural household income increases 11.3 percent and 10.5 percent respectively.

In 2011, the two figures increased 13.8 percent.

At the same time, the income distribution struc- ture has also been optimized.

The proportion of personal income to GDP increased from 37.1 percent in 2007 to 42.6 percent in 2010.

The income distribution gap has been nar- rowed continuously.
Since 2004, the income gap between urban and rural residents is about 2.3 times.

From 2007 to 36 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC keting services in producing industry.

Promote the combined development of producing industry and service industry.

Secondly, Shanghai is actively fostering the strategic de- velopment of new industries.

They said that by 2015, the added value of new industry will double that of 2010.
It is their aim to become the leading city in strategic new creative industry development.

To fulfill it, Shanghai has made the development plan and its implementation measures for stra- tegic new industry in the 12th Five-Year Plan period.
Accord- ing to the plan, five leading industries, including information technology, high-level manufacture, biology, new energy, new materials industries and two pioneering industries of environmental friendly and energy saving new energy auto- mobile industry will be the focus of the next step.

From 2010, more than 50 percent of the new industrial land will be used for strategic new industry development.
Thirdly, besides rapid development of modern service in- dustry, Shanghai will also endeavor to accelerate the develop- ment of manufacture.

It is their aim that in 2015, the added value of advanced manufacture will take the 65 percent of the overall industrial added value.

In the coming period, Shanghai will focus on improving the innovation capacity and core com- petition capability in automobile, shipping, mechanical manu- facture industries.
At the same time, to optimize the industrial structure of iron and steel industry, petrochemical industry etc.

accelerate the industrialization of new materials like iron and steel industrial, extend the production chain of petro- chemical materials, accelerate the transformation of electronic information manufacture industry, enhance their research and development capability, increase their added value.
Explore new transitional strategy When tackling the obstacles of the current development pattern, the Shanghai Municipal Party Committee and Municipal Government have already carried out a lot of re- searches.

Based on their research, they outlined to reduce the dependence on current development patter as the next step they would follow.

Firstly, reduce the dependence on heavy industry develop- ment.
Shanghai realized that because of the lacking of land and an increase of population, the restriction of natural re- sources and environment worsened gradually.

Therefore, the economy development patter should be shifted to light indus- tries and reduce dependence on heavy industry.

From Janu- ary to November in 2011, the increase rate of heavy industry productivity is 1.3 percent slower than that of light industry.
The productivity of petrochemical, building material, iron and steel, non-ferrous metals decreased by 1 percent, only takes 20.4 percent of the overall industrial productivity in 2010, compared with that of 23.7 percent in 2005.

Secondly, Shanghai tried to reduce the dependence on labor intensive industries.
Through measure like policy guid- ance and increasing of environmental and energy consuming standards, Shanghai hopes to accelerate moving the labor intensive enterprises out of the city, encourages the electric foundry enterprises to move the low level laptop manufactur- Shanghai endeavored to reduce the reliance on real estate development.

Shanghai implemented the national real estate regulations and the dependence on real estate decreased greatly.
ing, increases the proportion of advanced products like server manufacturing, enhances the capacity of new technology and new products’ development and design capability.

For example, in 2011, the productivity of laptop for Shanghai Ev- erbright Group decreased 2 percent than that of 2010.

But on the other hand, the high valued server productivity increased 3.7 times more.
From January to November 2011, the propor- tion of electric computer manufacture to the overall industry and its contribution rate decreased 1 percent and 17.9 percent compared with that for 2010.

Thirdly, Shanghai endeavored to reduce the reliance on real estate development.

Shanghai implemented the national real estate regulations and the dependence on real estate decreased greatly.

In 2011, the overall added value of real estate decreased 2.5 percent.
The proportion it takes for GDP decreased from 7.3 percent in 2005 to 5.3 percent in 2011.

The proportion it takes to service industry decreased from 15 percent to 9.2 percent.

Fourthly, Shanghai endeavored to reduce the dependence on investment.

While paying attention to maintain certain investment, Shanghai focuses more on the adjustment of investment structure with emphasis on key investment.

On the one hand, they keep control of the overall volume of in- vestment.
From 2006 to 2010, the investment rate decreased 6.7 percent.

In 2011, the total investment in capital asset in- creased by only 0.3 percent.

On the other hand, they focused on the optimization of investment structure and accelerate the industrial structure adjustment.

During the 11th Five- Year Plan period, the investment on industrial technological reform increased 12 percent annually.

The proportion it takes to total industrial investment increased from 40 percent in 2005 to 50 percent in 2010.
For the first half of 2011, the in- vestment in high-tech industries increased by 33 percent, ac- counting 34 percent of the total industrial investment, above 4 percent higher than that of 2010.

In 2011, the investment on strategic new industry increased 9.5 percent, accounting 39.5 percent of the total investment in industry, compared with that of 30 percent in 2010.

At the same time, investment in heavy industry decreased a lot.
The investment in iron and steel, petrochemical industry takes 20 percent of the total in- vestment in 2011, compared with that of 25 percent in 2005.

Peng also said that for recent years, Shanghai has en- hanced the energy saving and emission reduction in order to speed up the economic development pattern change.

Firstly, they phased out low capacity industries.


During the 11th Five -Year Plan period, they totally eliminate 2,873 projects with ISSUE 2 · 2012 37 INTERVIEW low capacity, reducing productivity about 100 billion yuan, saving 480 million tons of coal.

In 2011, they further elimi- nate 751 low capacity projects.

Secondly, Shanghai estab- lished long –term system to save energy and reduce emission.
The city initiated the policy of checking the energy consuming before giving approval to any project to enhance the evalua- tion and inspection of new projects.

By doing this, some key projects reduced energy consuming 5 percent averagely.

They gave strong support to contract energy management and im- plemented different electricity prices policy.

They established the first industry energy consuming inspection platform to keep control of energy consuming.

Thirdly, they stressed en- vironment protection.


During the 11th Five-Year Plan period, the input in environmental protection maintained 3 percent of the municipal GDP, higher than the national average.

They implemented series of environmental estimation standards to keep control of the new projects.

They encouraged the de- velopment of circular economy.
With the Chongming County and other cities set as the experimental areas of low-carbon development experimental zone, they took series of measures to promote the development of green industry.

Innovations motivate transformation Peng told reporters that Shanghai has already realized that one of their advantages is innovation.

So they take mea- sures to encourage innovative activities in order to solve the problems in development and promote future development.
Therefore, they put strength to accelerate innovation and provide support for transitional development.

The research team has found that Shanghai had already started their research on the future scientific development to provide theoretic direction for transition.

They learned from the experiences from other advanced countries and regions.

Combined with China’s characteristics and that of Shanghai, the researchers tried to find out the economic development pattern when the per-captia GDP reached $10,000.
Consid- ering the regional advantages of Shanghai and its own char- acteristics, they tried to find out the key tasks for the future innovative development after the transition and make poli- cies.

For example, they started research on topics like “four- center construction” and “two types of society” etc to provide theoretical support for future decision-making.

Besides, they paid much attention to the policy and regulation on innovation.
With the support from the CPC Central Committee and under the guidance of theoretical innovation, Shanghai paid much emphasis on the policy innovation, increase the pertinence, operability and the system of policies and regulations.

For example, Shanghai has become one of the pilot cities to implement the national service industry reform.
They took measures to implement sales tax different levels of collection, support the advanced manufacturers to separate other businesses, collect ap- preciation tax rather than sales tax from the transportation industry and part of the modern service industry.

Besides, they made policies to encourage innovative enterprises in Zhangjiang area to have new ways on the stock and bonus distribution, encourage scientific personnel to start their own businesses.
To solve the contradictions, they made the regional policies and regulations.

For example, to optimize the environment for private economy and small and medi- um-sized enterprises, they implemented new regulations to encourage private investment.

Scientific innovation is another focus that Shanghai Municipal Government stressed.

Shanghai takes scientific innovations as one of the most important pillars to acceler- ate its transitional development.

Firstly, they stressed key scientific projects.


Shanghai has started doing researches on some of the key projects of the country and with their en- deavor, has gained a lot in some key technologies.
Secondly, they strengthen the technological reform to accelerate the transformation and upgrade of enterprises and encour- age traditional manufacturing enterprises to introduce new technology, new equipments and new techniques from other countries, encourage enterprises to implement equipment and production upgrade and the rebuilding of manufacturing process.

For recent two years, they have already implemented more than 500 technological reforms, using more than 130 billion yuan investment.
Thirdly, they encourage the combi- nation of science, technology and finance in order to acceler- ate technological innovation.

One thing worth mentioning is that Shanghai implement- The Shanghai Lujiazui Finance and Trade Zone is one of the major fi- nancial centers in China.

Lying along the Huangpu River in Pudong New Area, the financial zone is just opposite to the Bund.
CFP 38 NATIONAL PEOPLE’S CONGRESS OF CHINA ed policies to provide services and support for technologi- cal small and medium-sized enterprises and build up the service platform for technological financial information and the enterprises credit platform in order to develop scien- tific financial products and services.
Besides, they initiated technological insurance experiment and set nine key fields, including new energy, advanced large-scale equipment and biological medicine to accelerate the industrialization of high technology.

At the same time, they made action plans to de- velop new technological industries and implement industrial policies on new energy, biological medicine and initiated four groups of high-tech enterprises.
In Shanghai Zhangjiang High-tech Industrial Development Zone, they encourage the combination of innovations and resources.

At the same time, they make special endeavor to build up the Zizhu High-tech Industrial Development Zone and Yangpu High-tech Indus- trial Development Zone.

Explore the mechanism for transformation Peng said that the research team also got to know that Shanghai always thought that reform is the fundamental protection for transformation.
In this case, they’ve started experiments on establishing the mechanism which will ben- efit the future development.

Firstly, they accelerated the NPC construction of Pudong reform experimental zone to set up models for the city.

After three-year development, some key areas and programs have gained great achievement and provided precious experiences for the overall reform across the country.
Secondly, the administrative reform has gained some achievements; the regional administration mechanism was implemented gradually.

Besides, the financial reform and innovation was accelerated, some new projects, like financial stock index futures, international trade balancing center for foreign exchanges, futures tax transaction, single machine or one ship rental affairs have been initiated.

They also started experiments on the developing mechanism of rural and urban development.
The rural and urban education administration mechanism, medical and health care admin- istration mechanism and rural social insurance mechanism became integrated.

Secondly, deepen the administrative mechanism reform and build the public service government.

Shanghai has al- ready set the aim of becoming the most efficient, transparent and lowest fee-charging government in the country.
They tried to finish the municipal and district governmental re- forms, separate government and enterprises, government and society.

To become more efficient, Shanghai started four rounds of administrative examination and approval reform to establish the examination and approval catalogue system, online administration and service platform and the online notification system.
Since 2008, Shanghai Municipal Gov- ernment has adjusted and eliminated more than 950 red tapes, abort and cease collecting more than 300 administra- tive fees.

At the same time, they strengthen the public infor- mation and collect suggestions on public policies from the society.

They require the governmental organizations to take up responsibilities to give policy support, to build platforms and introduce investment to Shanghai in order to form the joint strength for transitional development.
Besides, Shanghai also deepened the municipal and town- ship financial and tax reform to encourage the motivating function of financial system to the economic development.

For the appreciation tax, sales tax and other taxes related to service and manufacturing industry, Shanghai Municipal Government increase the proportions between that of mu- nicipal and town government.
For the real estate tax, land appreciation tax, and other taxes related to land and real estate, they decrease the proportion between municipal and town governments in order to soften the dependence on land financing and real estate development.

More importantly, they reformed the performance as- sessment measures to fit the transitional development.
Shanghai has abolished the GDP-oriented assessment but encouraged the assessment on increase the public service, social administration, sustainable development and other aspects.

Besides, they implemented different assessment methods according to different functions of fields.

At the same time, on the basis of summarizing the statistic index system in the 11th Five-Year Plan period, they tried to build up the new scientific statistic index system for the 12th Five-Year Plan period.
(NPC) ISSUE 2 · 2012 39 PEOPLE European Parliament Vice President Georgios Papastamkos (2nd from left) meets with Qiangba Puncog (2nd from right), Chairman of the Standing Committee of the People's Congress of China's Tibet Autonomous Region, in Brussles, Belgium on May 15.
Zhou Lei Qiangba Puncog: Tibet-related issues concern China’s core interests By Sun Wen and Wang Cong On May 15, the visiting National People’s Congress (NPC) delegation led by Qiangba Puncog, Chair- man of the Standing Committee of the People’s Congress of Tibet Autonomous Region held talks in Brussels with European Parliament (EP) Vice President Georgios Papastamkos, Chief of the Direction Committee of the Belgian Foreign Ministry Dirk Achten, and EP “Tibet In- tergroup” Vice President Eva Lichtenberger respectively.
Qiangba, also an NPC deputy and Vice Party Secretary of the Communist Party of China (CPC) Tibet Autonomous Region (TAR) Committee, introduced Tibet’s environmental protection, housing projects for farmers and herdsman, and the future development plan of Tibet in replies to inquiries.
According to Qiangba, Tibet is at its best historical period today thanks to the special attention from the Central Gov- ernment and the concerted efforts by all ethnic groups in the region, The autonomous region is on course toward stability and development, and has witnessed remarkable achieve- ments in political, economic, social, cultural, and environ- mental sectors, he said.
On the issues of Tibet’s ecological environment and tra- ditional nomadic lifestyle of herdsmen, which foreigners are concerned with, Qaingba stressed that as the third pole of the earth, Tibet is regarded as Asia’s water tower and ecological indicator, therefore it is our common concern to well pre- serve Tibet’s environment.
China’s Central Government has attached great importance to Tibet’s ecological protection, clearly demanding the local governments at various levels to preserve the green river and blue sky of Tibet.

The Central Government invested 10.2 billion yuan ($1.6 billion) in en- vironmental protection in its Eleventh Five-Year Plan from 2006 to 2010, and will increase investment in this sector in the following five years.
In consideration of the natural and environmental features of Tibet, the TAR government has adopted strong measures to return farmlands to forests, pro- hibit grazing in an orderly manner, and protect large rivers in 40 NATIONAL PEOPLE’S CONGRESS OF CHINA NPC accordance with local conditions, sparing no effort to preserve Ti- bet’s natural ecological environment.
Qiangba pointed out that the biggest chal- lenge facing ecological protection in Tibet is the contradiction be- tween pastoral lands and livestock.

Many t r a d i t i o n a l T i b e t a n herdsmen still believe that more livestock means more affluence, resulting in a low live- stock slaughter rate and imposing greater pressure to the pasto- ral land.
In view of this situation, the regional government has ad- opted such measures as subsidies for slaughtering to main- tain the livestock population within the carrying capacity in pastoral areas, achieving the balance between the grasslands and livestock.
When talking about the housing project in Tibet’s farming and pastoral areas, Qiangba said the project is based on the demands by farmers and herdsmen and carried out with the attention from the Central Government, assistance of other provinces and the support of the all social sectors.
By the end of this year, all the residential buildings in Tibet’s agricul- tural and pastoral areas will be reconstructed, renovated and expanded, and the living conditions of farmers and herdsmen will be greatly improved, making unprecedented achieve- ments in this regard.

Governments at various levels have invested a total of more than 10 billion yuan in the housing project in Tibet.
Abiding by the three fundamental principles of free will, convenience and preserv- ing regional and ethnic characteristics, more than 90 percent of the housing projects are construc- tion, reconstruction or expansion in the original building sites.

The conve- niences of medical treat- ment and schooling for the elderly and children in the families of herds- men have been taken care of, reducing the worries of the young herdsmen.
Those who are concerned over Tibet’s development have no need to worry that the housing project would change the produc- tion and life styles of the farmers and herdsmen in Tibet, and it can be ensured that the nomadic way of life in Tibet will be maintained forever.
Zhou Lei The Tibet-related issues concern China’s core interests, stressed Qiangba, expressing his hope that the European Parliament will, instead of being disturbed by the noise and prejudice, hold on to justice and independent analysis, make objective judgment, and view Tibet’s economic and social de- velopment from a constructive perspective.
At the same time, Qiangba expressed his gratitude to the Handicap International of Belgium, the Kashin-Beck Disease Foundation, the Damien Foundation and other civil organi- zations for their efforts over the years to promote social de- velopment of Tibet.

(Xinhua) Chief of the Direction Committee of the Belgian Foreign Ministry Dirk Achten meets with Qiangba Puncog (right), Chairman of the Standing Committee of the People's Congress of China's Tibet Autonomous Region, in Brussles, Belgium on May 15.
European Parliament “Tibet Intergroup” Vice President Eva Lichtenberger (2nd from right) meets with Qiangba Puncog (1st from left), Chairman of the Standing Committee of the People's Congress of China's Tibet Autonomous Region, in Brussles, Belgium on May 15.
Zhou Lei ISSUE 2 · 2012 41 PICTURE Q i a n g b a P u n c o g ( l e f t ) , Chairman of the Standing Committee of the People's Congress of China's Ti- bet Autonomous Region, meets with Patrick Moriau, the Belgian Panel Chairman of the Inter-Parliamentary Union in Brussels, Belgium on May 14.
Zhou Lei Chairman of the Stand- ing Committee of the People's Congress of China's Tibet Autono- mous Region Qiangba Puncog (7th from left) holds talks with mem- bers of Belgium-China Group of the Belgium Parliament on May 14.
Zhou Lei 42 NATIONAL PEOPLE’S CONGRESS OF CHINA Headed by Qiangba Puncog (right), Chair- man of the Standing Committee of the People's Congress of China's Tibet Au- tonomous Region, an NPC delegation hold talks with members of Delegation for Rela- tions with China under the European Par- liament on May 14.

After the talks, Qiangba Puncog picked up questions raised by the parliament members.
Zhou Lei 43 Visiting Chairman of the Standing Committee of the People's Congress of China's Tibet Autonomous Re- gion Qiangba Puncog (right, front) presents hada, a piece of silk used as a greeting gift among the Tibetan and Mongol people, to Nirj Deva (left, front), Chairman of the EU- China Friendship Group, European Parliament after holding a meeting in Brussles, Belgium on May 14.
Zhou Lei Qiangba Puncog (middle), Chairman of the Standing Committee of the People's Congress of China's Tibet Autonomous Region, meets with Lamberto Dini (2nd from right), Pres- ident of the Foreign Affairs Commis- sion of the Italian Senate, Giuseppe Menardi (2nd from left), President of the Association of Friends of China of the Italian Parliament, and other Italian friends in Rome, on May 16.
Wang Yunjia ISSUE 2 · 2012 PICTURE Hua Jianmin, Vice Chairman of the NPC Standing Committee, writes an inscription and sends it to Nomaindia Mfeketo, deputy speaker of the South African National Assembly, as a gift.
The inscription reads, “Long live the Sino-South African Friendship.” Zhong Sheng After the second Sino-South African ex- change meeting, Hua Jianmin, Vice Chair- man of the NPC Standing Committee, ac- companied by Nomaindia Mfeketo, who is the deputy speaker of the South African National Assembly, visits the parliament building in Cape Town, South Africa on March 29.
Zhong Sheng Hua Jianmin (4th from left), Vice Chairman of the NPC Standing Committee, and Nomaindia Mfeketo, deputy speaker of the South African National Assembly, attend the second Sino- South African exchange meeting in Cape Town, South Africa on March 29.

The two sides changed views on topics concerning infrastructure, youth training, job creation and poverty alleviation endeavors.
Zhong Sheng 44 NATIONAL PEOPLE’S CONGRESS OF CHINA Wu Bangguo (right), Chairman of the NPC Standing Committee, shakes hands and talks with Marco Maia, President of the Brazilian Chamber of Deputies, at the Great Hall of the People in Beijing on June 8.

Ding Lin Ma Wenpu (left), Vice Chairman of the NPC Foreign Affairs Committee, chairs the first meeting between China’s NPC and Brazilian Chamber of Deputies at the Great Hall of the People on June 8.
Bi Nan Ma Wenpu (3rd from right), Vice Chairman of the NPC Foreign Affairs Com- mittee, makes a keynote speech at the first meeting between China’s NPC and Brazilian Chamber of Deputies on June 8.

The two sides shared opinions on legislation, economic development and bilateral cooperation between parlia- ments in the future.
Bi Nan ISSUE 2 · 2012 45 PICTURE Wu Bangguo, Chairman of the NPC Standing Committee, meets with visiting Turk- ish Prime Minister Recep Tayyip Erdogan at the Great Hall of the People in Beijing on April 10.

Li Tao Wu Bangguo, Chairman of the NPC Standing Commit- tee, meets with Thai Prime Minister Yingluck Shinawa- tra in Beijing on April 18.
Ding Lin 46 NATIONAL PEOPLE’S CONGRESS OF CHINA Wu Bangguo, Chairman of the NPC Standing Committee, meets with South Sudanese President Salva Kiir Mayardit at the Great Hall of the People on April 25.

Ju Peng Wu Bangguo, Chairman of the NPC Standing Com- mittee, meets with Russian President Vladimir Putin, who came to pay a visit to China and attend the 12th Meeting of the Council of Heads of Member States of the Shanghai Cooperation Organization in Beijing on June 6.
Liu Jiansheng Wu Bangguo, Chairman of the NPC Stand- ing Committee, meets with Iranian President Mahmoud Ahmadinejad in Beijing on June 7.

Du Yang Wu Bangguo, Chairman of the NPC Standing Committee, holds talks with Yokomichi Takahiro, speaker of the House of Repre- sentatives of Japan in Beijing on May 4.

Ren Chenming ISSUE 2 · 2012 NPC Standing Committee Chairman Wu Bangguo meets with Chamal Rajapaksa, speaker of the Parliament of Sri Lanka, at the Great Hall of the People on June 13.
Ju Peng 47 SPECIAL REPORT 48 NATIONAL PEOPLE’S CONGRESS OF CHINA