We gave high priority to conserving resources and protecting the environment. Obligatory targets for saving energy and reducing emissions were set in the Outline of the Eleventh Five-Year Plan for National Economic and Social Development. In the last two years, a general work plan for saving energy and reducing emissions was introduced; a system of targets for this work, a monitoring system, a system for assessing work performance and a system of accountability for reaching the targets were put in place; and a state plan to address climate change was promulgated. A large number of backward production facilities were shut down in accordance with the law. They include small thermal power plants with a total capacity of 21.57 million kW, 11,200 small coal mines, backward iron smelting facilities with a total capacity of 46.59 million tons, backward steel plants with a total capacity of 37.47million tons and cement plants with a total capacity of 87 million tons. Ten major energy-saving projects were launched. Breakthroughs were made in carrying out desulfurizing projects for coal-fired power plants. The central government provided financial support for 691 projects to prevent and control water pollution in major river valleys. Work continued on ecological conservation projects such as those to protect natural forests and control the factors causing sandstorms in Beijing and Tianjin. During the five-year period, the area of farmland retired for forestation and other lands planted with trees amounted to 31.91 million hectares, and grazing land returned to natural grasslands totaled 34.6 million hectares. Protection of land and water resources was strengthened, with a total of 1.526 million hectares of farmland being upgraded, reclaimed or newly developed over the last five years. Thanks to the strong efforts of the whole country, encouraging progress was made in conserving energy and reducing emissions. In 2007 there was a 3.27% year-on-year drop in energy consumption per unit of GDP, and for the first time in recent years there was a reduction in both chemical oxygen demand and the total emission of sulfur dioxide, with the former down 3.14% and the latter down 4.66% from the previous year. People became more aware of the importance of conserving resources and protecting the environment and made greater efforts in this area.
We followed a master strategy for regional development. Continued progress was made in the large-scale development of the western region, with central government financial support for key projects totaling over 280 billion yuan over the last five years. Substantial progress was made in infrastructure development and ecological and environmental conservation projects, and development of key areas and industries with local advantages was accelerated. We formulated and implemented the strategy of rejuvenating the old industrial bases such as northeast China, increased efforts to develop large grain production bases, made breakthroughs in reforming, reorganizing and upgrading SOEs, made major progress in using domestically-produced key equipment in place of imports, and made smooth headway in the trial to transform the economies of cities dependent on resource exploitation. The old industrial bases are now showing new signs of vitality. We formulated and implemented policies and measures to promote development in the central region and made accelerated progress in developing modern agriculture in major grain-producing areas. Major energy and raw material industries, the equipment manufacturing industry and the overall transportation system were further developed. The eastern region continued to lead in development, with significant gains in economic strength and overall improvement. The process of developing and opening up the special economic zones, the Shanghai Pudong New Area and the Tianjin Binhai New Area was accelerated. These major measures promoted a better distribution and more balanced development of regional economies.