5. We will accelerate industrial transformation and upgrading.

1) We will resolve the problem of overcapacity. We will remain market oriented, strengthen policy guidance, follow the rules of the market, and use industry-specific, multi-pronged policies to seek both temporary and permanent solutions. We will address overcapacity in the process of stepping up efforts to conserve energy and reduce emissions, adjust distribution of the productive forces and transform traditional industries, and use multiple means to dissolve, transfer, integrate, and phase out some production capacity. We will give play to the role of the guiding catalog for industrial restructuring, and formulate and implement plans to adjust distribution of the productive forces in key industries including steel, petrochemicals, non-ferrous metals, building materials, ship-building, textiles, and other light industries. We will apply strict technology, energy, environmental, and safety standards for market access; and accelerate mergers and reorganizations in industries with excess production capacity.

2) We will enhance innovation as an impetus for development. We will launch major national scientific and technological infrastructure projects for the Twelfth Five-Year Plan period, and comprehensively promote key science and technology programs and the Knowledge Innovation Program (2011-2020). We will strengthen our capacity for innovation, accelerate the building of enterprise technology centers, and carry out the project to build 100 innovative enterprises. We will advance major projects for developing strategic emerging industries, implement and improve policies and measures for supporting their development, scale up venture capital in this area, and introduce pilot projects for their clustered development. We will launch major projects in medical appliances, high-end equipment, and new materials. We will implement the National Broadband Internet Agenda and other major projects for promoting IT application, and develop infrastructure in information security.

3) We will step up efforts to develop transportation and energy. We will expedite development of a comprehensive transportation system. In 2013, we will put into operation more than 5,200 kilometers of new railway lines, build an additional 80,000 kilometers of highways, and put into service 100 seaport berths for 10,000-ton class or larger ships and about ten new civilian airports. We will actively develop clean energy and increase installed power-generating capacity of hydropower by 21 million kilowatts, nuclear power by 3.24 million kilowatts, wind power by 18 million kilowatts, and photovoltaic power by 10 million kilowatts.

4) We will further develop the service sector. We will carry out studies and formulate policies and guidelines for accelerating development of the service sector. We will accelerate development of modern logistics; support development of high-technology service industries like R&D and design, software service, and e-commerce; and push forward commercialized and specialized operations of energy conservation and environmental protection technological services and facilities. We will expedite institutional innovation in key service industries, and build national demonstration zones for the development of the service sector. Value-added of the service sector is projected to grow by 7.9% in 2013.