Comrades,



　　Now I would like to make a report to the congress on behalf of the Fifteenth
Central Committee of the Communist Party of China (CPC).



　　The Sixteenth National Congress of the CPC is the first of its kind held by
our Party in the new century. It is a very important congress convened by our
Party in the new situation in which we have begun to take the third step of the
strategic plan for socialist modernization.



　　The theme of the congress is to hold high the great banner of Deng Xiaoping
Theory, fully act on the important thought of Three Represents, carry forward
our cause into the future, keep pace with the times, build a well-off society in
an all-round way, speed up socialist modernization and work hard to create a new
situation in building socialism with Chinese characteristics.



　　As human society entered the 21st century, we started a new phase of
development for building a well-off society in an all-round way and speeding up
socialist modernization. The international situation is undergoing profound
changes. The trends toward world multipolarization and economic globalization
are developing amidst twists and turns. Science and technology are advancing
rapidly. Competition in overall national strength is becoming increasingly
fierce. Given this pressing situation, we must move forward, or we will fall
behind. Our Party must stand firm in the forefront of the times and unite with
and lead the Chinese people of all ethnic groups in accomplishing the three
major historical" title="a.历史(上)的">historical tasks: to propel the modernization drive, to achieve national
reunification and to safeguard world peace and promote common development, and
in bringing about the great rejuvenation of the Chinese nation on its road to
socialism with Chinese characteristics. This is a grand mission history and the
era have entrusted to our Party. 　　



　　I. Work of the Past Five Years and Basic Experience of 13 Years 　　



　　The five years since the Fifteenth National Congress of the CPC have been a
period in which we have held high the great banner of Deng Xiaoping Theory and
kept blazing new trails in a pioneering spirit, and a period in which we have
continued to forge ahead triumphantly on the road to socialism with Chinese
characteristics in spite of difficulties and risks.



　　At the Fifteenth National Congress, Deng Xiaoping Theory was established as
the Party's guiding ideology, the Party's basic program for the primary stage of
socialism was put forward, and the objectives and tasks for China's
cross-century development were specified. Acting in the spirit of the congress,
the Central Committee held seven plenary sessions at which it made decisions and
plans on such major issues as agriculture and rural work, the reform and
development of state-owned enterprises, the formulation of the Tenth Five-Year
Plan (2001-2005) and the improvement of the Party's work style. Over the past
five years, we have traversed an extraordinary course and scored tremendous
achievements in reform, development and stability, domestic and foreign affairs
and national defense and in running the Party, state and army.



　　The national economy has maintained a sustained, rapid and sound development.
By pursuing the principle of stimulating domestic demand and adopting the
proactive fiscalpolicy and the sound monetarypolicy in good time, we overcame
the adverse effects the Asian financial crisis and world economic fluctuations
had on China, and maintained a relatively rapid economic growth. The strategic
adjustment of the economic structure has been crowned with success. The position
of agriculture as the foundation of the economy has been strengthened.
Traditional industries have been upgraded. High and new technology industries
and modern services have gained speed. A large number of infrastructure projects
in such areas as water conservancy, transportation, telecommunications, energy
and environmental protection have been completed. Significant headway has been
made in the large-scale development of China's western region. Economic returns
have further improved. National revenue has kept growing. The Ninth Five-Year
Plan (1996-2000) was fulfilled and the Tenth Five-Year Plan has seen a good
start.



　　Reform and opening up have yielded substantial results. The socialist market
economy has taken shape initially. The public sector of the economy has expanded
and steady progress has been made in the reform of state-owned enterprises.
Self-employed or private enterprises and other non-public sectors of the economy
have developed fairly fast. The work of building up the market system has been
in full swing. The macro-control system has improved constantly. The pace of
change in government functions has been quickened. Reform in finance, taxation,
banking, distribution, housing, government institutions and other areas has
continued to deepen. The open economy has developed swiftly. Trade in
commodities and services and capital flow have grown markedly. China's foreign
exchange reserves have risen considerably. With its accession to the World Trade
Organization (WTO), China has entered a new stage in its opening up.



　　Notable progress has been registered in improving socialist democracy and
spiritual civilization. Continued efforts have been made to improve democracy
and the legal system. New steps have been taken in political restructuring. The
patriotic united front has grown stronger. Further progress has been made in the
work relating to ethnic, religious and overseas Chinese affairs. Fresh progress
has been made in keeping public order through comprehensive measures. Science,
technology, education, culture, health, sports, family planning and other
undertakings have moved ahead. The media and publicity work as well as
ideological and moral education have kept improving. The people's cultural life
has become increasingly rich and colorful.



　　New strides have been taken in strengthening national defense and army
building. Efforts have been redoubled to make the People's Liberation Army more
revolutionary, modernized and regularized. Our national defense capabilities and
the army's defense and combat effectiveness have further improved. The army, the
armed police and the militia have played an important role in defending and
building up our motherland.



　　On the whole, the people have reached a well-off standard of living. The
income of urban and rural residents has gone up steadily. The urban and rural
markets have been brisk, and there has been an ample supply of goods. The
quality of life of the residents has been on the rise, with considerable
improvement in food, clothing, housing, transport and daily necessities. There
has been marked progress in building the social security system. The seven-year
program to help 80 million people out of poverty has been in the main fulfilled.




　　Fresh progress has been made in the great cause of national reunification. The
Chinese Government has resumed the exercise of sovereignty over Macao. The
principle of "one country, two systems" has been implemented and the basic laws
of Hong Kong and Macao special administrative regions have been carried out to
the letter. Hong Kong and Macao enjoy social and economic stability. Personnel,
economic and cultural exchanges across the Taiwan Straits have kept increasing.
The fight against "Taiwan independence" and other attempts to split the country
has been going on in depth.



　　New prospects have been opened up in our external work. In light of the
developments and changes in the international situation, we have adhered to the
correct foreign policy and related principles. We have carried out both
bilateral and multilateral diplomatic activities extensively and taken an active
part in international exchanges and cooperation. China's international standing
has risen still further.



　　Party building has been strengthened in an all-round way. All the Party
members have steadily intensified their study of Deng Xiaoping Theory. We have
put forward and expounded the important thought of Three Represents. Good
results have been produced in the intensive education in the need to stress
study, political awareness and integrity and in the study of the "Three
Represents". An all-out endeavor has been made to build up the Party
ideologically, organizationally and in work style. Our ideological and political
work has been strengthened. New steps have been taken in the reform of the
personnel system. The endeavor to build a clean and honest government and combat
corruption has been going on in depth and yielding fresh notable results.



　　Facts prove that the major policy decisions taken by the Central Committee at
and since the Fifteenth National Congress are correct and accord with the
fundamental interests of the overwhelming majority of the people. Our
achievements are the outcome of the united endeavor of the whole Party and the
people of all ethnic groups of the country. They provide a more solid foundation
for the future development of the cause of the Party and state.



　　We must be clearly aware that there are still quite a few difficulties and
problems in our work. The income of farmers and some urban residents has
increased only slowly. The number of the unemployed has gone up. Some people are
still badly off. Things have yet to be straightened out in the matter of income
distribution. The order of the market economy has to be further rectified and
standardized. Public order is poor in some places. Formalism, the bureaucratic
style of work, falsification, extravagance and waste are still serious problems
among some leading cadres in our Party, and corruption is still conspicuous in
some places. The Party's way of leadership and governance does not yet entirely
meet the requirements of the new situation and new tasks. Some Party
organizations are feeble and lax. We must pay close attention to these problems
and continue to take effective measures to solve them.



　　Our achievements over the past five years have been scored through reform and
opening up, especially through our practice since the Fourth Plenary Session of
the Thirteenth Central Committee in 1989. These 13 years have witnessed a highly
volatile international situation and a magnificent upsurge of China's reform,
opening up and modernization. From the late 1980s to the early 1990s, there
occurred serious political disturbances in China, drastic changes in Eastern
Europe and the disintegration of the Soviet Union. Socialism in the world
suffered serious setbacks. China was faced with unprecedented difficulties and
pressure in its efforts to develop the socialist cause. At this crucial
historical" title="a.历史(上)的">historical juncture bearing on the destiny of the Party and state, the Party
Central Committee relied firmly on all the comrades in the Party and the Chinese
people of all ethnic groups and unswervingly adhered to the line prevailing
since the Third Plenary Session of the Eleventh Central Committee, and thus
successfully brought the overall situation of reform and development under
control and safeguarded the great cause of socialism with Chinese
characteristics. After Comrade Deng Xiaoping made remarks on his tour of the
South, the Fourteenth National Congress decided to establish a socialist market
economy as the goal of reform, thus ushering in a new stage for reform, opening
up and the modernization drive. To develop a market economy under socialism is a
great pioneering undertaking never tried before in history. It is a historic
contribution of the Chinese Communists to the development of Marxism. It has
given expression to our Party's tremendous courage to persist in making
theoretical innovation and keeping pace with the times. The shift from the
planned economy to the socialist market economy represented a new historic
breakthrough in reform and opening up and brought about entirely new prospects
for China's economic, political and cultural progress. After the demise of
Comrade Deng Xiaoping, we held high the great banner of Deng Xiaoping Theory and
made pioneering efforts to advance the cause of socialism with Chinese
characteristics into the 21st century in an all-round way.



　　Over the past 13 years, with clearly defined objectives, we worked with one
heart and one mind and scored historic achievements. In 2001, China's GDP
reached 9.5933 trillion yuan, almost tripling that of 1989, representing an
average annual increase of 9.3 percent. China came up to the sixth place in the
world in terms of economic aggregate. On the whole, the people made a historic
leap from having only adequate food and clothing to leading a well-off life. As
is universally recognized, the 13 years have been a period in which China's
overall national strength has risen by a big margin, the people have received
more tangible benefits than ever before, and China has enjoyed long-term social
stability and solidarity and had a good government and a united people. China's
influence in the world has grown notably, and the cohesion of the nation has
increased remarkably. The hard work of our Party and people and their great
achievements have attracted worldwide attention and will surely go down as a
glorious page in the annals of the great rejuvenation of the Chinese nation.



　　A review of these 13 years shows that we have traversed a tortuous course and
that our achievements are hard won. We have responded confidently to a series of
unexpected international events bearing on China's sovereignty and security. We
have surmounted difficulties and risks arising from the political and economic
spheres and from nature. We have gone through one trial after another and
removed all kinds of obstacles, thus ensuring that our reform, opening up and
modernization drive have been forging ahead in the correct direction like a ship
braving surging waves. We have attained these successes by relying on the
correct guidance of the Party's basic theory, line and program, on the high
degree of unity and solidarity of the Party and on the tenacious work of the
whole Party and the people of all ethnic groups around the country.



　　Here, on behalf of the CPC Central Committee, I wish to express our heartfelt
thanks to the people of all our ethnic groups, the democratic parties, people's
organizations and patriots from all walks of life, to our compatriots in the
Hong Kong Special Administrative Region, the Macao Special Administrative Region
and Taiwan as well as overseas Chinese, and to our foreign friends who care
about and support China's modernization drive!



　　The practice of the 13 years has helped us acquire a deeper understanding of
what socialism is, how to build it, and what kind of Party to build and how to
build it, and we have gained most valuable experience in this regard.



　　1. Uphold Deng Xiaoping Theory as our guide and constantly bring forth
theoretical innovation. Deng Xiaoping Theory is our banner, and the Party's
basic line and program are the fundamental guidelines for every field of our
work. Whatever difficulties and risks we may come up against, we must
unswervingly abide by the Party's basic theory, line and program. We should
persist in arming the entire Party membership with Marxism-Leninism, Mao Zedong
Thought and Deng Xiaoping Theory and using them to educate our people. We should
continue to emancipate our minds, seek truth from facts, keep pace with the
times and make innovations in a pioneering spirit. We should respect the
creativity of the general public and test and develop the Party's theory, line,
principles and policies in practice.



　　2. Keep economic development as the central task and solve problems cropping
up on our way forward through development. Development is the fundamental
principle. We must seize all opportunities to accelerate development.
Development calls for new ideas. We should stick to the principle of expanding
domestic demand and implement the strategy of national rejuvenation through
science and education and that of sustainable development. While seeking speed,
we should pay attention to structure, quality and efficiency, and while
propelling economic development, we should take into consideration population,
resources and the environment. On the basis of economic growth, we need to
promote all-round social progress, constantly better people's lives and ensure
that all the people share the fruits of development.



　　3. Persevere in reform and opening up and keep improving the socialist market
economy. Reform and opening up are ways to make China powerful. We must press
ahead with the reform in all areas resolutely. The reform must be promoted
realistically, comprehensively and progressively with breakthroughs made in key
areas and emphasis placed on institutional improvement and innovation. We should
follow the orientation of reform toward the socialist market economy and make
sure that the market forces playan essential role in the allocation of resources
under the state's macroeconomic control. By both "bringing in" and "going out",
we should activelyparticipate in international economic and technological
cooperation and competition and open wider to the outside world.



　　4. Adhere to the Four Cardinal Principles (*Note 1) and develop socialist
democracy. The Four Cardinal Principles are the very foundation on which we
build our country. We must upholdleadership by the CPC and consolidate and
improve the state system-a people's democratic dictatorship and the system of
political power - the people's congresses. We should uphold and improve the
system of multiparty cooperation and political consultation led by the Communist
Party and the system of regional ethnic autonomy. We should promote political
restructuring, develop democracy, improve the legal system, rule the country by
law, build a socialist state under the rule of law and ensure that the people
exercise their rights as the masters of the country.



　　5. Attach equal importance to both material and spiritual civilization and run
the country by combining the rule of law with the rule of virtue. Socialist
spiritual civilization is an important attribute of socialism with Chinese
characteristics. Basing ourselves on China's realities, we must carry forward
the fine tradition of our national culture and absorb the achievements of
foreign cultures in building socialist spiritual civilization. We should
unceasingly upgrade the ideological and ethical standards as well as the
scientific and cultural qualities of the entire people so as to provide a strong
motivation and intellectual support for the modernization drive.



　　6. Ensure stability as a principle of overriding importance and balance
reform, development and stability. Stability is a prerequisite for reform and
development. We should take into full consideration the momentum of reform, the
speed of development and the sustainability of the general public. Continued
improvement of people's lives must be regarded as an important link in balancing
reform, development and stability. We should press ahead with reform and
development amidst social stability and promote social stability through reform
and development.



　　7. Persevere in the Party's absolute leadership over the army and take the
road of fewer but better troops with Chinese characteristics. The people's army
is a staunch pillar of the people's democratic dictatorship. It should meet the
general requirements of being qualified politically and competent militarily and
having a fine style of work, strict discipline and adequate logistic support,
with a view to enabling itself to win battles and never degenerate, paying
attention to strengthening itself through science and technology and building
itself into a more revolutionary, modernized and regularized army. We must
ensure that the army is forever loyal to the Party, socialism, the motherland
and the people.



　　8. Continue to unite with all forces that can be united with and increase the
cohesion of the Chinese nation. We should hold high the banners of patriotism
and socialism, strengthen the great solidarity of the people of all ethnic
groups, and consolidate and develop the broadest possible patriotic united
front. We need to strengthen our solidarity with the democratic parties and
personages without party affiliation. We should handle well the work relating to
ethnic minorities, religions and overseas Chinese. We should adhere to the
principle of "one country, two systems" and bring into full play every positive
factor in a common endeavor to accomplish the grand cause of national
reunification and the great rejuvenation of the Chinese nation.



　　9. Pursue the independent foreign policy of peace, safeguard world peace and
promote common development. We will, as always, attach paramount importance to
our state sovereignty and security. We will develop friendly relations and
cooperation with all other countries on the basis of the Five Principles of