Full text of Jiang Zemin's report at the 16th Party Congress November 18,2002
Xinhua

The following is the full text of Jiang Zemin's report delivered at the 16th
National Congress of the Communist Party of China (CPC) on Nov. 8, 2002,
entitled "Build a Well-off Society in an All-Round Way and Create a New
Situation in Building Socialism with Chinese Characteristics":

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 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 fiscal policy and the sound monetary policy in good time, we
overcame the adverse effects the Asian financial crisis and world economic
fluctuations had on China, and maintained a relatively rapid economic growth.
The strategic adjustment of the economic structure has been crowned with
success. The position of agriculture as the foundation of the economy has
been strengthened. Traditional industries have been upgraded. High and new
technology industries and modern services have gained speed. A large number of
infrastructure projects in such areas as water conservancy, transportation,
telecommunications, energy and environmental protection have been completed.
Significant headway has been made in the large-scale development of China's
western region. Economic returns have further improved. National revenue has
kept growing. 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 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!