Box 5: Progress in Energy Production, Supply, Storage, and Sales Systems

Improving Production Capacity	Ÿ The overall quality of the coal supply system was improved, and advanced production capacity was released. Ÿ Domestic oil and gas output recovered and increased. Crude oil output continued a two-year rebound, and natural gas output grew by more than 10 billion cubic meters for the fourth year in a row. Ÿ Electric power production was diversified, and the capacity of coal-fired power to guarantee basic supply and act as a peak-shaving energy source was fully utilized. Renewable energy was strongly promoted and incorporated into power grids.
Coordinating Supply Channels	Ÿ Coal: A stable, reliable, and clean coal supply system was established. We strengthened the supporting capacity for the Haolebaoji-Ji’an Railway’s collection, distribution, and transportation system, and coal transportation became cleaner. Ÿ Petroleum and natural gas: We improved both the supply of and pipeline transmission capacity for imported oil and gas, the supply of foreign energy was diversified, and major projects for gas pipeline connectivity were accelerated. Ÿ Electricity: Power grids were developed in a coordinated manner, and their ability to support each other in order to ensure the supply of power continued to grow.
Strengthening Weaknesses in Storage Capacity	Ÿ Coal: Storage capacity was further improved. A sound reserve system was established in which enterprises’ social responsibility reserves are the mainstay and local governments’ reserves are supplementary, with reserves of both goods and production capacity. Ÿ Petroleum: Support was given to projects for increasing reserves. Ÿ Natural gas: Strict measures were taken to ensure that upstream suppliers, pipeline operators, distributors in cities and towns and local governments fulfill their respective responsibilities. Construction of intensive and large-scale storage facilities was promoted, and the stocks available for the heating season increased by approximately five billion cubic meters on the previous year. Ÿ Electricity: The peak-shaving capabilities and mechanisms were enhanced, and the energy storage industry was vigorously developed.
Removing Obstacles to Sales	Ÿ A sound market trading system was established, in which the National Coal Exchange Center played its role more effectively. Policies for market-based electricity trade were refined. The domestic market for refined oil products with diversified players and fair competition grew stronger, and the opening up of gas infrastructure to all eligible users proceeded in an orderly way. Ÿ The system of mid- and long-term contracts was improved, and a greater number of such contracts were signed and implemented. Ÿ Demand-side regulation was strengthened to guide and encourage power and natural gas consumers to participate in peak shaving. The emergency supply plan was refined.

 

7. We fully implemented the rural revitalization strategy, and maintained momentum in the development of agriculture and rural areas.

Work related to agriculture, rural areas, and rural residents was carried out in a coordinated manner, and continuous improvements were made to the industrial, production, and business operation systems for modern agriculture. As a result, agricultural and rural development improved noticeably.

1) We deepened supply-side structural reform in the agricultural sector.

We implemented the food crop production strategy based on farmland management and the application of technology. Agricultural infrastructure continued to be improved, with the total area of high-quality cropland increasing by 5.33 million hectares. Scientific and technological support for agricultural development was strengthened, with the overall level of mechanization in plowing, sowing, and harvesting increasing to 71%.

We proceeded with projects to better protect animal and plant resources, and bolstered our capacity to prevent and mitigate natural disasters. Sound regional distribution, scaled-up operations, standardized production, commercial services, and brand marketing constitute the future of agricultural development, as well as the means to boost land and labor productivity. After actively promoting scaled-up operations by means of third party cultivation, land trusteeship, and production service outsourcing, we saw the volume of contracted land-use right transfers in rural areas reach 37 million hectares.

Financial support for agriculture steadily grew. The outstanding balance of bank loans to agriculture, rural areas, and rural residents stood at 38.95 trillion yuan at the end of 2020, a year-on-year increase of 10.7%.

2) We advanced integrated industrial development in rural areas.

We approved two batches of 200 national demonstration parks in total as part of our explorations and innovations for effectively promoting integrated development of industries in rural areas. The development of agricultural product processing and distribution gathered speed, with industrial and value chains extended and integration of the production, processing, and sales of farm products significantly accelerated. As various functions of agriculture and the countryside are unlocked, new types of business are flourishing, including e-commerce, farm-based recreation, and rural tourism.

3) We made an all-out effort to build a beautiful and livable countryside.

Village cleaning initiatives were advanced. We formulated and refined standards and norms for the Toilet Revolution and household waste and sewage treatment, and accomplished the tasks and goals for the three-year campaign to improve rural living environments. More than 68% of rural areas now have access to sanitary toilets, and the proportion of administrative villages where household waste is collected and treated has risen to over 90%.

We intensified efforts to shore up points of weakness in rural infrastructure relating to rural roads and the water and power supply, and advanced reform of the management and maintenance systems for rural public infrastructure. With the completion of a new round of power-grid upgrading, universal energy services in rural areas also markedly improved.

8. We worked faster to build new mechanisms for coordinated regional development and improved the framework for development between regions.

We focused on harnessing the comparative strengths of each region and vigorously promoted integrated urban-rural development. We continued to refine the arrangements for achieving complementarity and coordinated development between regions, and steadily implemented the functional zoning strategy. A system of integrated plans for China’s territorial space is being put in place.

1) We steadily advanced new, people-centered urbanization.

As part of the deepening reform of the household registration system, we essentially removed all restrictions on permanent residency in cities with permanent urban populations of less than three million and accomplished the goal of granting urban residency to 100 million people. We made further refinements to spatial plans for urbanization, drew up and implemented the general development plan for the Chengdu-Chongqing economic zone, instituted mechanisms to facilitate coordinated development in the Guanzhong Plains, Lanzhou-Xining, and other city clusters, and pushed for higher levels of urban integration in metropolitan areas like Nanjing, Guangzhou-Foshan, and Changsha-Zhuzhou-Xiangtan.

In county towns weaknesses were steadily addressed, and nationwide trials for new urbanization came to a successful close, producing a host of effective practices that were replicated throughout the country. Development in towns with distinctive features was gradually put onto a more robust footing with improved regulation, and extensive explorations and experiments got under way in national pilot zones for integrated urban-rural development.

2) We continued to implement major regional development strategies.

We promoted the coordinated development of the Beijing-Tianjin-Hebei region. We relieved Beijing of functions nonessential to its role as China’s capital with proactive and prudent measures, advanced the construction of Xiongan New Area according to high standards and quality requirements, and accelerated the development of Beijing Municipality’s administrative center in Tongzhou. We continued to implement major projects for coordinated development and stepped up the construction of intercity rail in the region.

We advanced systematic environmental protection and restoration along the Yangtze Economic Belt through concrete measures. We carried out a project to treat urban sewage and waste and to tackle pollution from the chemicals industry, ships, agricultural non-point sources, and tailing sites. A 10-year ban on fishing in key waters of the Yangtze River basin came into force, pilot and demonstration programs for green development were launched, and the Yangtze River Conservation Law was promulgated.

We promoted the steady development of the Guangdong-Hong Kong-Macao Greater Bay Area. We encouraged greater coordination between scientific and technological innovation and industry, developed major cooperative platforms, and implemented a plan for the development of intercity rail. We also made progress in promoting the interconnectivity of infrastructure, regulations, and mechanisms. We issued and carried out the Implementation Plan for the Comprehensive Pilot Reform of Making Shenzhen a Pioneering Demonstration Zone for Socialism with Chinese Characteristics (2020-2025).

We made steady headway in integrating the development of the Yangtze River Delta. We developed major platforms and advanced inter-regional cooperation, established a collaborative innovation network, and promoted joint protection of the environment and ecosystems. We enhanced infrastructure connectivity, and made faster progress in providing convenient and accessible public services across the delta.

We published and began implementing the overall plan for the ecological protection and high-quality development of the Yellow River basin.

3) We implemented the strategy for coordinated regional development.

We ushered in a new stage in the large-scale development of China’s western region, supported the full revitalization of northeast China, promoted the rise of the central region at a faster pace, and introduced a policy package to support the economic and social development of Hubei Province. We also continued to promote the trailblazing development of the eastern region.

We made a major push to develop key sectors and key platforms, and supported the construction of key projects in state-level new areas and demonstration zones for industrial relocation. We made new strides in the revitalization of old revolutionary base areas, areas with large ethnic minority populations, border areas, those areas affected by ecological degradation and resource dependency, and old industrial areas. We also steadily boosted the marine economy by coordinating development both on land and at sea.

9. We furthered reform in all respects, helping to boost the confidence and vitality of market entities.

Faster progress was achieved in improving the socialist market economy. New breakthroughs were made in furthering reform through comprehensive moves. Both the dynamism of development and internal drivers of growth were further enhanced.

1) We improved the systems and mechanisms for the market-based allocation of production factors.

We reformed land-use planning and management practices. We granted provincial-level governments more decision-making power over the development of land, launched a new round of trial reforms on rural land designated for housing, and adjusted the parameters of use for proceeds from the sale of land-use rights, making rural revitalization a key priority for support.

We worked quickly to improve the system for appraising skilled personnel, gradually opened avenues for awarding professional titles to personnel in private enterprises, and steadily developed integrated mechanisms for the mutual recognition of professional qualifications between regions. We furthered reforms related to the right to use, transfer, and profit from scientific and technological output, and piloted the practice of granting researchers employed in research institutions ownership or permanent use rights over the scientific and technological outputs they produce on the job.

We staged trials for developing and utilizing public data resources and promoted the sharing of government data in an orderly manner. We also developed an action plan for establishing a sound market system.