绿色信贷 Green Credit

A policy to encourage the businesses to observe the rules and regulations about environmental protection with the leverage¹ of bank credits. Initiated² by the former State Environmental Protection Administration, currently the Ministry³ of Environmental Protection, and China Banking⁴ Regulatory Commission in July, 2007, the policy requires the commercial banks, when reviewing the application for bank credits, to consider whether the applying businesses have followed the environmental rules. The violators have less chance to get the approval, while the green businesses would get favorable treatment in this regard. The policy marks a start for the central government to step up the country's environmental protection through market-oriented means.

廉租房 Low-rent Housing

State-owned houses are rented out at modest prices to low-income families who do not have proper housing in the cities.

In 1998, the central government required all cities to offer low-rent housing to families with the lowest income before the end of 2006 and the deadline was later changed to the end of 2007.

In each city, the standards for a family's per capita living floor space and minimum income are set by the local governments. Families whose living space and income are both below the standards are given low-rent houses. If the governments do not have enough houses, they offer financial subsidy⁵ to these families. The rent is set at about 5 percent of the family's income.

家庭联产承包责任制 Household Contract Responsibility System

The system allows farming households to manage agricultural production on their own initiatives while the farmland remains⁶ in the ownership of the rural collective. Started in Xiaogang village in Anhui province in the late 1970s, the system enables farmers to use land through long-term contracts and keep the produce after paying taxes. It raised productivity and increased agricultural output, both of which were preconditions for nurturing⁷ the economic takeoff, and comprehensive industrialization and urbanization. The start of this system is widely accepted as a milestone⁸ in the economic opening up.

假日经济 Holiday Economy

A popular term to describe the huge public spending during holidays which contributes significantly to economic growth and structural⁹ upgrade.

In 1999, the State Council decided¹⁰ to extend the public holidays for May Day, National Day and Spring Festival to one week. The holidays became good opportunities for people to travel, shop and generally enjoy themselves.

Since then, the massive consumption has boosted tourism, retail¹¹, transportation, cinemas, exhibitions, sports and other related industries, thereby¹² benefiting the people and the country.

财产性收入 Property Income

Earnings¹³ from bank deposits, securities, houses and other personal or family properties.

In his report to the 17th National Congress of the Communist Party of China in 2007, General Secretary Hu Jintao stressed, for the first time, that conditions should be created to enable citizens to earn income from their property. Hu's remarks sent the message that China would advance the development of its capital market, enabling investors¹⁴ to share the economic boom.

Figures from the National Bureau of Statistics showed that per capita property income in China averaged 240 yuan in 2006, or about 2 percent of people's total income, while 70 percent of people's average income came from salaries and 28 percent from pensions, subsidies¹⁵ and other benefits.

“三步走”战略 Three-Step Development Strategy

A plan for boosting the economy by hitting three major targets over three different time spans.

Originally floated by the central government in 1987, the first step was to double the GDP of 1980 by 1990 and to ensure that most of the population had enough food and clothing. The second step was to double the annual GDP of 1990 by 2000 and ensure that most people were living prosperous lives. The third step is to quadruple the GDP of 2000 by 2020, ensure that most people are living well-off lives and have a fully¹⁶ operational market economy in China.

The first two steps have been taken. At the 17th National Congress of the Communist Party of China in December 2007, the third step was revised to quadrupling the per capita GDP of 2000 by 2020.

金税工程 Golden Tax Project

The establishment of a uniform computer network across the country through which taxation¹⁷ authorities at all levels can better serve taxpayers¹⁸.

Started in 1994, the project aims to improve the transparency and efficiency of tax collection and supervision¹⁹. By turning invoices²⁰, one of the most important taxation documents, into electronic data, it facilitates both taxpayers and taxation authorities.

The project's first two stages were completed in 2000 and 2003 respectively. The third stage, begun last year, will cover almost all matters of taxation.