----Reform of grain circulation system will be deepened in order to maintain a stable agricultural growth.

----Reform and development of enterprises will be carried out vigorously. As to the key enterprises and industries, China will try its best to raise their economic efficiency, help them reduce their deficits and increase their profits, and promote their technological renovation.

----Tax levy and control will be tightened to achieve the taxation goal fixed for industry and commerce. Financial service will be improved to support the economic development.

----China will adhere to the market diversification strategy. Potentialities of the export-oriented enterprises will be brought into full play to expand the export scale. Policies and environment for foreign investment will be optimized. Foreign funds will be used in a better way.

----Consumption fields will be greatly widened through actively developing commodities of different grades and enlarging the rural market Marketing and production will be regulated and overhauled by means of cracking down on fake and inferior goods and smuggling.

----The government will continue to organize people to fight against floods, rebuild the ruined areas, maintain the political stability and ensure a sustained and coordinated economic growth.
Third, China's economic reform and development are offering opportunities for foreign investment.

----Technological renovation and re-structuring of the state-owned enterprises are further promoted, which provides good opportunities for foreign investment. Since the implementation of reform and opening to the outside world, a large batch of advanced technology and equipment have been introduced through foreign investment, which has facilitated the technological renovation for more than 120,000 enterprises. The Chinese government will further direct foreign in vestment into the technological renovation for old industrial bases, traditional industries and the existing enterprises. In order to create a better environment for foreign investment to be directed into the technological renovation for the existing enterprises, the Chinese government will optimize its policies on the control of creditor's rights and debts and placement for surplus staff of these enterprises in the process of turning the enterprises into Chinese-foreign funded ones.

----Strategic re-organization of the state-owned economic branches is under way. Except for the key industries which are of vital importance to the national economic lifelines, the state-owned economic branches will be transformed to adapt to market economy and to adapt an intensified form of operation through capital reorganization and restructuring, which also means more opportunities for foreign investment.

----Reforms of state-owned large and medium-sized enterprises are also in progress. Generally speaking, the state is the sole share-holder of the state-owned enterprises in China. Appropriated foreign investment into the state-owned enterprises will help to diversify the shareholders' structures and meet the demand of modern enterprise system. At present, there are over 15,000 state-owned large and medium-sized enterprises in China, whose total assets account for 85%of those of all the state-owned independent-accounting enterprises. Foreign fund, if imported to these enterprises by one fourth of their assets, would be a huge sum of capital.

----In China, there are more than 480,000 state-owned medium and small-sized enterprises, making up 96% of all China's state-owned industrial enterprises. They are the focus of China's nex step to readjust economic structures and the subjects for take over, merger, lease and contract by foreign businessmen.

----According the policy promulgated by the State Council regarding the flood prevention and rehabilitation of ruined areas, measures of production, rebuilding, structural readjustment and optimization are on the march and have achieved conspicuous success. In this process, a large amount of capital and equipment are badly needed and lots of jobs provided ,which is another good opportunities for foreign investment to flow in .
Fourth, the Chinese government will further optimize the relevant laws and policies and improve investment environment to facilitate foreign businessmen to participate in China's economic construction.

----China will continue to encourage more foreign investment to be used in the technological renovation and innovation of the existing enterprises. The Chinese government has decided that from January 1,1998, advanced technology and equipment imported for the foreign-invested projects encouraged by the state shall be exempt from tariffs and value-added tax. This will help to foreign direct investment into new and high-tech industries. The Chinese government encourages foreign businessmen and foreign-funded enterprises in China's eastern areas to participate in the technological renovation of the state-owned large and medium-sized enterprises in the central and western parts of China. In order to enhance the ability of digesting, absorbing and innovating the imported technology, the state supports the state-owned enterprises to set up technology reseach and development centers with foreign businessmen.

----The Chinese government will formulate policies to foreign direct investment into the readjustment of structures of the state-owned economic branches. The state-owned large and medium-sized enterprises are encouraged to carry out reorganization of their assets and capitalize their inventory assets by means of using foreign funds. The state-owned small-sized enterprises and collective ownership enterprises will be pushed onto market, and foreign businessmen are allowed to purchase and lease them. Experiments in setting up foreign-funded stock limited companies and transferring enterprise's franchise and operating rights to foreign businessmen will be actively carried out.

----Foreign funds utilized in service and trade industries will be increased to combine the utilization of foreign funds by the tertiary industries with the reform of state-owned enterprises and re-employment for the laid-off, thus to promote a healthy development of various kinds of enterprises and the society at large