2.1 China is a developing country. In the past 48 years since the founding
of the People's Republic of China, and especially in the recent 18 years
since reform and opening up, great economic progress has been made, achieving
on average a GNP annual growth rate in excess of 9%. In 1995, China reached
its first stage of strategic objectives for modernisation with a GNP four
times that of the year 1980, five years ahead of the designated time. In
the meantime, a breakthrough was achieved in economic structure adjustment.
With apparent progress in the marketisation and socialisation of the national
economy, the socialist market economy is being gradually established. Re-adjustment
of the industrial structure has also produced impressive results. This
change in structure has gradually integrated the primary, secondary, and
tertiary industries harmoniously. Regional economies have also developed
in a sound way, and great progress has been made in the fields of science,
technology, and education. On the whole, the overall society has developed,
people's living standards, both urban and rural, have been greatly improved,
and the number of people living in poverty has been further reduced.
2.2 Despite China's rapid economic growth, it can not be forgotten that
China is still a country with an enormous population, low per capita share
of resources, a relatively weak economic foundation, and low scientific
and technological capacity. Although China has made tremendous efforts
to control its population growth rate, owing to its large size China's
population had grown to 1.224 billion by the end of 1996. China's per capita
share of freshwater, arable land, forest, and grassland is less than one
third of the world average, and the annual losses caused by frequent natural
disasters such as flooding, drought, earthquake, etc. have resulted in
damage in excess of RMB 100 billion yuan. In spite of the great efforts
for environmental protection, China's emissions of main pollutants (such
as waste gases, wastewater, and solid wastes) are still increasing and
city-centred environmental pollution is increasing and spreading to rural
areas.
2.3 In view of these mounting challenges, China convened the Fourth
Session of the Eighth National People's Congress in March of 1996, in which
the "Ninth Five-Year Plan for National Social and Economic Development
and the Long-Term Objectives for the Year 2010" was approved as China's
important guideline for entering the 21st Century. It clearly sets forth
two important strategies: sustainable development and reinvigorating the
country through education, science, and technology. It also requires two
fundamental shifts in economic structure and mode of economic development.
As well, at the Fourth National Conference on Environmental Protection
held in July of 1996, the Chinese Government pointed out that:
"We should attach great importance to sustainable development
in our socialist modernisation cause, and economic development should be
taken into account in balance with population control, environmental protection,
and rational use of natural resources. We should arrange our present development
in a way that can create better conditions for our descendants. It is a
waste of resources to pollute first and then try to take countermeasures.
We should not depend only on what our ancestors left us and leave nothing
to descendants. It is an objective demand and China's inevitable choice,
for the present and in the future, to take the road of sustainable development
for our economic and social prosperity, which can bring benefits both currently
and to our descendants ."