CONTENTS

POREWORD

CHAPTER 1

CHINA'S ECONOMY IN EARLY 21ST CENTURY:

BACKGROUND AND ROLE OF REFORM

Section 1 Joining the WTO Challenges China's Economic Development

I. Important Preparations China Should Make to Join the WTO

II. Opening up Promotes Reform in Turn

III. Economic Globalization and China's Economic Reform

Section 2 China's Economic Growth Depends Directly on Reform

I. Reform in the Early 21st Century: Decisive for Economic Growth

II. Stepping up Efforts in Reform and Promoting Economic Growth

Section 3 The Key for Social Stability in China Lies in Reform

I. People's Preparedness for Reform Directly Affect Social Stability

II. Sharing Out Reform Costs and Reducing Burdens on the People

III. The Fundamental Solution to Relieve Pressure: Creating More Employment Opportunities through Reform

IV. Quickening Reform in Income Distribution Is of Substantial Significance in Maintaining Social Stability

V. Eliminating Corruption: A Task That Becomes More and More Urgent

CHAPTER 2

MAJOR TASKS FOR THE PIVOTAL STAGE OF REFORM OF THE STATE SECTOR IN THE 21ST CENTURY

Section 1 Striving for an Essential Breakthrough in the Strategic Regrouping of the State Sector

I. Reviewing the Principles on Ownership Reform Set in the Report to the 15th National Party Congress

II. Role of the State Sector in Market Competition

III. Solving Knotty Problems with an Overall Impact on Reform of the State Sector

Section 2 Creating a New System for State-owned Enterprises

I. Creating a New System the Fundamental Task for Reforming the State-owned Enterprises

II. Speeding up Introduction of the Shareholding System Is a Major Task for Creating a New System for State-owned Enterprises

III. Establishing a Perfect Corporate Running Structure Is the Basic Goal for Creating a New System for State-owned Enterprises

IV. Seeking an Effective Form of Management of State Assets Is a Major Condition for Creating a New System for State-owned Enterprises