Spokes person from Shanghai Municipal Government held 3rd news conference at the News Conference Hall of Shanghai Municipal Government at 3:00pm on July, 2nd. Jiao Yang, the, spokes people from Shanghai Municipal Government, gave an introduction on the information of such policies of Shanghai as employment promotion, newly added employment positions at the first half of the year and formulating policies on promoting the employment for university graduates, as well as the information on trial implementation of expanding investors in enterprise registration.

The following is a faithful record of the speech from Jiao yang:

Good afternoon, Ladies and gentlemen:

Welcome to today’s news conference. today, I will give you information of two aspects:one is about the information on newly added employment positions and employment promotion in Shanghai, including the content of promoting employment for university graduates; the other is about the information that range of investors for enterprises will be expanded in Shanghai, in which, employees are allowed to invest in and buy shares from enterprises.

Now, I’m going to provide the information on the first item.

I

As you all know, employment is the foundation for the people’s livelihood. At the beginning of this year, Shanghai Municipal Government declared definitely that there would be 400,000 newly added employment positions within the year in Shanghai, and it is listed in the project of practical things done by the Municipal government that the goal is to be achieved. A few months ago, SARS imposed some impact on economic and social development, and the issue of employment attracts concern from the public once again, who are worried whether or not the goal worked out at the beginning of the year can be achieved smoothly under the circumstance that labor resources have increased while SARS unexpectedly strikes us. Here, I’m pleased to tell you all: according to the latest statistics (i.e. up to June 30th), there have been 265,000accumulated newly added employment positions for the first half of this year, that is to say, we have accomplished the aim of“completing more than half of the work for the year after half of the year”.

Some reporters probably are not familiar with the plan of“newly added 400,000 employment positions”, so, first of all, I will give a brief introduction.

From 2000 to 2002, the plan of“a net increase of 100,000 employment positions”has been carried out for three consecutive years in Shanghai, with the aim that there will be an actual increase of more than 100,000 employees after the increasing number sets off reduced number for the year of the employed who are in the labor age section in the city. In the three years, there has been an actual net increase of 350,000 employment positions. From this year, the focus of increased positions of Shanghai will be shifted from“net increase”to“new increase”; the aim of 400,000 newly increased positions for the year is proposed and requirements of assessment have been defined. in addition, in order to control position drain, the Municipal Government proposes to control the urban registered unemployment rate within 5%.

Net increase of positions can ensure that the newly added positions are real, but if we just check the number of net increase, we can not exactly work out the newly added positions come from which sectors, and the lost ones are from which sectors. However, if we take the newly added positions as the assessment subject, it can increase the openness of conditions on expanding employment and can combine development and employment more closely.

Among the newly added 265,000 positions for the first half of the year, there are 192,000 positions for all kinds of enterprises and non-profit institutions, and 73,000 from non-formal employment and from free-lancers. Conditions for the accomplishment of newly added positions bear the following three characteristics:

First, privately-owned enterprises and flexible employment are the main channels for expanding employment. for the first half of the year, 158,000 persons have got a new job from all kinds of privately-owned enterprises and flexible employment, accounting for 60% of the total amount of the persons getting a new job.

Second, tertiary industry has become the backbone for newly added employment positions,the newly increased positions from the industry accounting approximately for 70% of the total amount of the newly added ones.

Third, age structure for the employed of the newly added positions bears the feature of“smaller percentage for the two ends”, i.e., the rate of the age groups of 16—20 and the group elder than 50 is just 11.1%, and the reason for this is that the employed for the two age groups do not have many advantages in their skills and technique.

II

We can say that to define the aim of“newly added 400,000 employment positions”reflects the fact that Shanghai’s promoting employment complies with economic and social development of Shanghai. From 2000, Shanghai devotes to establishing a government responsibility system with a net increase for employment positions as its main content. This year, it is proposed to establish a social responsibility system for promoting employment in Shanghai, i.e. while we emphasize that Shanghai Municipal Government takes the chief responsibility of promoting employment, all kinds of mass groups, various economic organizations, all mass media, and social management institutions at all levels should play a vigorous role in making the government responsibility for promoting employment a social responsibility with the government as the guide.“Newly added 400,000 employment positions”is a foundation of establishing the system.

In recent years, other policies of promoting employment have been carried out in Shanghai, and there have been some progress for their implementation this year.

Concerning encouraging indepently starting business, the following supporting measures have been taken in Shanghai:

——To set up a service platform for starting business. This platform is to be put up by the government, mainly serving the subjects of“4050”Project, and depend on social forces for ideas, funds and projects for the persons starting their business. Up to now, 503 expert volunteers and 31 units have been recruited to provide services for more than 30,000 persons to guide their starting business. It has been two years since the project for starting business began to operate, 1600 projects have been launched and about 60,000 persons have been drawn for employment.

——To vigorously develop non-formal employment. Non-formal employment in Shanghai includes developing community service trades (such as logistics and repairing), small scale manufacturing (such as handicraft industry for tourism souvenir), and to provide socialized services (EMS is one kind of such services) for units, etc. Right now, there have been 18,500 non-formal labor organizations, with 203,000 employees; more than 1000 organizations have transformed into small or minisize enterprises

——To implement“training for starting business”, and upgrade qualifications of personnel starting their own business. Shanghai takes the lead in opening training classes and depending on social forces to strengthen the training for personnel starting their own business. Since 1999, there has been 290 training sessions on starting business, and up to 26,800 persons signed up for the training classes.

In encouraging enterprises to recruit unemployed and people getting the minimum standard of living after signing a contract with their units, 8 supporting papers and relevant operation measures are worked out in Shanghai, and their contents have been released on meeting of work of promoting employment before long. In the papers, there are some policies with real value, such as, several items of taxes and expenses are exempted in 3 years for the unemployed and people getting the minimum standard of living after signing a contract with their units who are engaged in private business, and taxes are reduced or exempted for the enterprises who have recruited certain percentage of the unemployed and people getting the minimum standard of living after signing a contract with their units, etc.

In encouraging laborers to upgrade their skills and qualifications,“Skill Rejuvenation Plan”is to be practiced in Shanghai from this year. We will go all out to increase the percentage of senior skillful personnel out of the skill workers up to about 15%(at present, it is 8%). According to the Plan, Shanghai Municipal Government will shift the training focus from 4050 group to the young people, and shift the training contents from training for changing positions or getting a job to training for upgrading skill of intermediate or higher level, and shift the training aim from traditional manufacturing to core manufacturing and modern service industry.

In setting up employment mechanism for the people getting minimum standard of living for disadvantaged group, the practice of“government purchasing”such public positions as safeguards, gardeners, dustmen and maintenance workers at communities is practiced, so as to arrange the most disadvantaged group who have no way for a new job. Up to now, Shanghai has purchased 100,000 such positions for employment. Focus of employment mechanism for the people getting minimum standard of living is the most disadvantaged persons from the extremely underprivileged home.

In encouraging market employment, Shanghai vigorously perfects employment recommendation network so as to make it the important channel for the market to arrange labor force. At present, the network includes one job center on municipal level and 46 employment agencies on district (or county) level, which receive an average of 20000 persons applying for job every day. The job seekers can find out at any one of the employment agencies in the network the real time information on vacancies released by all employers in Shanghai. At the end of March of this year,“Website for recruiting Professional personnel”opened to the public. Since SARS stroke China at that time, the website is popular. Till the beginning of June, more than 6000 employer units and 42,000 persons including college graduates of this year have registered on the website, and more than 1000 persons have found a new job there.

Up to the end of June, registered unemployment in Shanghai is 294,000, which is an increase of 6,200 compared with last year, with the registered unemployment rate of 4.85%. Conflict of total employment and structural conflict have not been relieved fundamentally. On this account, it is still a pretty difficult job for the employment condition of the latter half of this year. But with powerful reactive measures, we believe the employment conflict in Shanghai will be further relieved, so as to create better conditions for social stability and economic development.

In the process of promoting employment, there is another important task, i.e., employment work for university graduates. Because this is the first graduation peak after colleges and universities increased the number in their enrolling student, the employment of university graduates especially draws our concern.

In order to implement relevant notices and essence from the State Council, and to do a practical and detailed job for employment instruction for university graduates, Shanghai formulated a series of specific working measures recently, which passed in principle at the meeting of standing committee of Shanghai Municipal Government. On the whole, the guiding principle of the policies is to base on this year and focus on the future in instructing college students to foster correct concept of choosing job and employment, helping graduates to improve their capability for employment so as to promote full employment. There are four points as the following:

First, to encourage university graduates to work at the grass root places or the places where life there is hard, for instance, they can go to western China, go to communities of the city or to rural area, villages and towns to work in the fields such as education, health care or poverty alleviation, etc. In relevant measures, a lot of specific and practical preferential policies and encouraging policies are provided for the university graduates who go to work and serve at such places. The policies include providing them with subsidies for settlement and living; those going to western China to work and returning after they have finished the time length of service can take entrance exam for graduate, then they can enjoy the treatment of reducing the admittance grade level or even are directly enrolled as graduates without taking the exams; if those going to work at grass root places or to the places where life is hard as well as those serving western China can apply for the test of the state functionaries or apply to work at state-owned enterprises or non-profit institutions after they have finished the time length of service at the areas, they can enjoy the preferential treatment for being recruited first under the same conditions with other applicants. Second, we should encourage employer units to recruit as much as possible university graduates. For instance, we require that when party and political organs hold exams to recruit the state functionaries, when state-owned enterprises and non-profit institutions employ professional technique personnel and personnel for management, they should first of all recruit university graduates of this year. As for the small and medium-sized enterprises and privately-owned enterprises or non-profit institutions, all kinds of talent services and employment guiding as well as employment agencies at all levelsshould provide them with conveniences and corresponding services. Third, we are to set up and perfect employment instruction system of the colleges and universities and employment service system of the society, integrate resources of education system, personnel system and of labor and security system, and set up integrated employment services and information network for university graduates. Fourth, we should support and encourage university graduates to independently start their own business and to get flexibly employed, and try all possible means to help the vocational school graduates who have more trouble in getting a job to be employed. We will take such measures as administrative departments on industry and commerce and financial organs providing preferential treatment and convenience in charging fees and in providing loans to university graduates who are engaged in privately-owned business;“State Professional Qualifications Training”jointly organized for graduates of vocational schools by Shanghai Education Commission and labor departments. In addition, the university graduates who have not got a job after graduating for more than half a year and ask for a job can get unemployment registration, and receive support from labor and security department. As for the university graduates of Shanghai who can not get employed for some time because of some disease and have no source for living, and capita income of their family is lower than the minimum standard living of Shanghai, they can also enjoy the policy for minimum standard living.

In conclusion, the government is to, through instruction, guidance and service, help the university graduates to foster practical concept for choosing a job and for employment, closely combine individual ideal and social demands and get a good start in their stepping into the society.

In addition, we need to emphasize that this year is the first year after ordinary colleges and universities expanded the number of their enrolling students at 1999, there are much more graduates than those in previous years; and at the same time, SARS unexpectedly stroke the country, which imposed some impact on employment of university graduates. However, economic growth in Shanghai keeps a good momentum, and all walks of life in Shanghai pull together, both of which strengthen the dynamics of employment instruction and service work. On this account, employment of university graduates keeps good momentum on the whole, and the graduates are in pretty good mental state. According to statistics up to June 30th, employment rate of graduate students have climbed up to 94%, that of students of bachelor degree to 81%, and graduates of vocational schools and from training schools up to 56.6%. So, we can say that employment level of this year keeps balance basically with the same period of last year in spite of increase number of graduates this year.

In addition, some data indicate that the rate of signing employment contracts and people signing employment contracts of June have largely increased compared with those of May. Recovery of recruiting graduate students and employment for state functionaries and other recruiting staff activities which have been delayed due to SARS, and revelation of enrolling number of the test for“training school students upgrading to college or university students”, all these indicate the employment rate of university graduates will continue to increase, and level of employment rate for university graduate of this year can remain on the higher level of last year.

Next, I will introduce another piece of news relating to expanding employment, that is, Shanghai will conduct trial practice of expanding the range of investors in enterprise registration and allow the employed personnel to invest in and buy shares from all kinds of enterprises except for the ones invested by foreign investors. Relevant policy will be conducted experiments at Pudong New Area in the near future.

At present, only five categories of people can put investment and set up enterprises so as to become individual shareholders. The five catergories include: villagers at rural area, the unemployed at towns, self-employed businessmen, person designating and quitting their job, as well as persons retiring (with honors). Employed personnel are excluded from the five categories, and they are restricted investment channels in this aspect, thus creating the phenomenon that“rich people can not invest and poor ones are flattered to put investment”

In recent years, individual economy of Shanghai has seen a rapid development, non-government investment has increased rapidly, but there is still some potential without being brought into play. For instance, till the end of 2002, saving balance of Shanghai residents reached 410 billion RMB, and it is still on the increase. Experts analyze that the phenomenon directly connects with non-governmental capital being lack of investment channels. The amount of increase in current deposit being more than fixed deposit indicates that savings account circulates more frequently. If residents have appropriate investment channels and sound expectations, a part of their savings can be transformed to enterprise capital. So, expanding the range of investors and permitting employed personnel to become shareholders of enterprises is an important way to expand the investment channel for non-governmental capital.

Report from 16th CPC Congress suggests that we should“expand market admittance area of non-governmental capital in China”,“let the vigor of labor, knowledge, technology, management and capital burst out, let all sources for creating social fortune spring up so as to bring benefit to people”. To expand the range of investors in enterprise registration does not conflict with“Law on Corporate”and“Regulations on Management of Corporate Registration”. So, implementation of this policy has already had some ideological foundation and objective conditions.

During people’s congress and the Chinese People's Political Consultative Conference (C.P.P.C.C.) of Shanghai on February this year, representatives of people’s congress and committee men from C.P.P.C.C of Shanghai submitted the proposal respectively in written form and resolution advising to expand the range of investors. For several months, departments on industry and commerce have made investigation and research on the proposal, widely heard of opinions from all walks of life, worked out relevant papers and passed in principle at the meeting of standing committee of Shanghai Municipal Government.

The papers will definitely suggest that in enterprise registration, employed personnel are allowed to provide fund to and buy shares from all kinds of enterprises, except for enterprises invested by foreign businessmen. Because it is formulated in the law currently in force of our country that natural persons of China are limited to establish joint management or co-production enterprises with foreign companies, enterprises or other economic organizations and individuals. Employed personnel providing funds to or buying shares from enterprises should abide by relevant obligations, including labor contract signed with their current employer unit and promises made on competition limitation, keeping commercial secrets, and there must not any behavior destroying the benefits of their current employer unit.

Policy for trial practice has broken through limitation on status of investors, and relevant policies concerning other aspects have not been adjusted. To ensure the implementation of the policy, relevant departments will perfect corresponding working procedures. One is that department on industry and commerce will adopt the system of“informing and promising”in enterprise registration, and define the investors’rights, commitments, and legal responsibilities. If investors do not fulfill their promises, they should receive corresponding punishment. This is to adapt to reform on administrative examination and approval system, and it is a new system in simplifying procedures of examination and approval in enterprise registration. The other is to reiterate on specific groups who are not allowed to provide funds and buy shares from enterprises. Those who must not provide fund to or buy shares from all kinds of enterprises include: persons without capacity for civil conduct or with capacity for limited civil conduct, the state functionaries, and the personnel being managed in accordance with the management of functionaries, leaders of state-owned enterprises, and other persons prescribed in the laws and regulations, rules and rules for government staff.

Expanding the range of investors is positively meaningful in many aspects:

——First of all, it is helpful to increase employment positions and employment opportunities. According to calculation, at present, an increase of every 130,000 RMB of investment for enterprises will bring us a new employment opportunity. We can increase employment positions through expanding the range of investors and drawing investment. For today’s situation, it is beneficial to relieve negative impacts imposed by SARS.

——Next, it is helpful to attract natural persons from other part of China to invest in Shanghai. Previously, in enterprise registration, persons from other part of China must bring with them a certificate proving their having no criminal records issued by the security department of their permanent residence registry. While in current system of“informing and promising”, the practice of government checking is transformed to applicants making promises, which undoubtedly provides convenience for natural persons from other part of China to invest in Shanghai.

——Third, it is helpful to advocate honesty and credit of the society, and protect benefits of investors. Employed personnel who want to make investment do not have to invest through non-formal measures (such as making use of the name of the unemployed), thus, false investment has been changed to true investment, which will better protect legal rights and interests of investors.

The following is the faithful record of Jiao Yang answering questions from reporters:

1、Oriental Broadcasting Station: This year, the newly added positions are 400,000; but in previous three years, the net increase in new job positions for each year reached 100,000. For the unemployed in urban area, net increase seems more meaningful. Could you tell us the number for net increase for this year? Some measures appear publicly to ensure the employment of university graduates, will the appearance of these policies make it difficult for graduates from other provinces or cities to come to Shanghai for a job?

Jiao Yang: We have just come to the half of this year and there is still another half. So we have no way to count the net increase for this year at this moment. Definitions between new increase and net increase are different. Net increase refers to the actually increased new job positions, and we get the net increase by subtracting the decreased amount by newly increased amount. However, if we just check on the amount of net increase, we will have trouble to know which sectors have increased what positions, and which sectors have reduced what positions, thus, it is hard to reflect the relationship between economic development and employment development. On this account, the definition of new increase is to increase the openness of employment conditions. There will be a clear description on which sectors have newly increased positions and have increased what positions; and it can be more open in real sense to the public.

It is the undeviating guideline of Shanghai Party commission and Shanghai Municipal Government to implement talent strategy, and construct a talent highland. All of you have some knowledge of all measures of Shanghai’s attracting talents in various fields. In accordance with economic and social development of Shanghai, Shanghai encourages her graduates who are from Shanghai to work in Shanghai and also encourage them to go to grassroots and to go to the remote areas. For the graduates who are not from Shanghai, they can also work in Shanghai after going through the procedures of settling down or going through procedures for a residence certificate, etc. Shanghai is an extremely large city, and population has some relation with construction and development of the city. So, as all big cities in the world, there are some requirements for Shanghai to control people moving to Shanghai from other places. There is no restriction on the number of excellent university graduates to work in Shanghai. Shanghai comes out in front out of the country in attracting talents from other parts of China each year. We welcome more excellent talents to participate construction of Shanghai.

2、Dow-Jones News Company of U.S.A: I want to ask about the case of Zhou Zhengyi. You said that relevant department is investigating the event, how is the investigation getting along. Can you tell us some information concerning this?

Jiao Yang: As for this event, Shanghai Municipal Government is actively cooperating with relevant department to investigate. Right now, there are a lot of rumors, but as a spokes person, we have not received any authorized information from authority department.

3、990 News frequency of Shanghai Broadcasting Station: Concerning informing and promising in the regulations for investors, if they have not made honest declaration, what kind of punishment will they receive?

Jiao Yang: Informing and promising is an enterprise registration system initiated by Shanghai. After implementing the system, the government transfers from examination in advance to supervision afterwards, and enterprises transfer from passively receiving supervision and regulation to actively strengthening self-discipline. On this account, we can summarize the system briefly as the following words: government informs and enterprises promise. Just now, your concern was what punishment is to be given. Informing and promising has been given trial practice in Pudong New Area of Shanghai. According to the statistics made by Pudong Branch of Administration on Industry and Commerce of Shanghai, from January, 2001 to May of this year, 1374 business licenses have been issued through the system of informing and promising. After enterprise applicants signed on the paper of informing and promising, they should take on the legal responsibilities. If their declaration is not honest, or if they have not undertaken their promises, they will receive corresponding punishment. If it has been three months after the applicants got their business licenses, and administrative departments found out in inspection that the applicants have not undertaken their promises, the enterprises will be punished or even revoked a license.

4、Reporter from Eastday.com: Ordinarily, when we talk about employment, we seldom mention about the unemployed in young people. I heard of the news that relevant departments have launched“Youth Career Probation Plan”, how is the plan going on? My second question is we read some news from an overseas media that a predecessor vice mayor of Shanghai is involved in the case of Zhou Zhengyi, is it true?

Jiao Yang: Actually, the young people are the principal part for employment. But now, there is such phenomenon that young people have trouble in finding a job and the young are becoming unemployed. To some extent, this is because of their being lack of technique, and working experiences, as well as lack of devotion spirit.“Youth Career Probation Plan”is especially launched based on their insufficiency in these aspects. Relevant departments worked out the Plan and began to implement last year. In the Plan, young people are asked to go to the base to work on probation for 3—6 months and receive professional training and position practice for at most one year, in order to upgrade their professional technique and enrich their working experiences, including their life experience, and to cultivate their career devotion spirit. Up to now, 12,000 people have taken training classes held by almost 200 training centers, and 3000 of the trainees have got a new job after working on probation in the training courses. The selected probation bases are the enterprises with good credit. With the trend of market orientation in the employment of university graduates,“Two certificates”system is practiced in colleges and universities, one is diploma, and the other is professional qualification certificate, which has involve more than 30 trades. If students have got the two certificates, this can strengthen their capacity for employment.

Jiao Yang: Concerning your second question, I really read about relevant reports. Some overseas websites, even some pretty serious overseas media highly publicize the rumor that predecessor vice mayor, or predecessor vice director of People’s Congress has been kept in custody because of being involved in the case of Zhou Zhengyi. I can clearly point out that this is extremely irresponsible, and without any ground. I believe it will reduce the authority of media if you take assault and battery on leaders in mentioning them by names, and by doing this, you have degraded the professional ethnic of reporters. Because it is lack of facts or law as foundation. Since the overseas media which first reported the false news has some influence, the report has been reprinted very soon, which greatly hurt the person concerned. The person concerned posted a letter to the media, pointing out that this is an extremely irresponsible rumor and asking them to apologize. With some professional ethnic, the media printed the whole text of the leader’s letter and apologized to the leader. Some media have reprinted the letter. On this account, I think that media should be trusted by the public with objective and just reports, and should be suspicious about the hearsay rumors.

5、Economic Observer: When will State-owned Assets Supervision and Administration Commission of the State Council, Shanghai branch hang up their shingle? What is their location? After State-owned Assets Supervision and Administration Commission of the State Council hangs up their shingle, what transformation will a lot of government department experience, will they transform into guild?

Jiao Yang: State-owned Assets Supervision and Administration Commission of the State Council, Shanghai Branch will hang up their shingle very soon, but there will be some changes in time and responsibilities of some government departments, which will go through some procedures for approval. Before they have not finished in going through the procedures, I am not authorized to release any information here.

6、WenHui Bao (Wenhui Newspaper)：Just now, you talked about the conditions of employment of university graduates. Employment rate for graduate students ranks on the top---94%, and the employment rate for graduates from training schools and vocational schools is only 56.6%. I want to ask if there are any measures from the Municipal Government to help the graduates from training schools and vocational schools who have trouble in finding a job?

Jiao Yang: Shanghai has launched a series of policies to help the graduates who have trouble in finding a job, which include professional probation plan, and it is applicable to training school and vocational school students. If you are interested in getting more information on this aspect, you can communicate and talk with corresponding person in charge of Shanghai Education Commission and labor and security department.

7、Oriental Morning News：Because it is pretty difficult to find a job, are the graduates tend to look for positions requiring less abilities and level than they actually have?

Jiao Yang: What I learnt of does not seem that the graduates accommodate themselves to jobs of low level. To my knowledge, a lot of university graduates have some opportunities, but they have too high expectations, and won’t lower their standard just to get a job. They disdain to cast a look at the positions with a monthly salary of about 1000 RMB, but they are reluctant to accept the positions which are laborious. Policies for employment of university graduates have mentioned that the graduates should set up correct concept of choosing a job, and schools should educate and guide their students on the concept of employment. There are some cases for the condition you asked about just now, but the graduates having too high expectations is the major obstacle for the employment issue of university graduates.

8、Morning News：On employment of university graduates, you have mentioned that there are some preferential policies in charging fees and providing loans for the graduates who are engaged in private business, could you give us some specific information? Another question is about encouraging individuals to provide fund, are there any specific measures from the government in investment channels and psychological counseling?

Jiao Yang: I will answer your second question first. On encouraging individuals to invest enterprises, there are some preferential and supporting policies for the underprivileged group, and individuals from the underprivileged group to start business are provided with some socialized service system, especially for the ambitious persons of 4050 project. In this respect, Shanghai labor and security department and relevant departments have adopted a lot of measures to provide help. As for the other individual businessmen, if they have some difficulties, the services provided by the government are also for them. There is a term----“Five person Operation System”, which is a new and practical practice launched by the government in helping groups having difficulties in starting their own business. In the system, the actual service system is virtualized as five persons, i.e., designer, tenderee, investor, and executive needed in starting business as well as supervisor assessing the project. The five roles will be supported by the society, and a lot of expert volunteers act as the five roles. The government changes the condition from providing employment positions in the past to focusing on organizing, serving and coordinating. The government has set up the platform, and five kinds of people provide servies for the persons starting business, thus forming the system of starting business and obtaining employment which is unique to Shanghai.There are many beneficiaries from the system. If you are interested in getting more information on the condition, persons in charge of labor and security department are present today, and you can talk with them after the conference, including your first question.

9、Takungbao from Hong Kong：Employment situation of the latter half of this year in Shanghai does not allow us to be optimistic. Are there any difficulties and measures for Shanghai in changing the employment situation?
Jiao Yang: On one hand, SARS has imposed some impact on employment. Some departments needing a lot of laborers have been affected, and they can not recover at once to attract employees. On the other hand, Shanghai has completed the first round of its industrial structure reform, and Shanghai will continue to have more reforms, development. Construction of exhibition halls for World Expos’2010, and the development for the banks of Huangpu River will also bring new industrial structure reforms. We should also pay attention to the fact that we have many favorable factors. After SARS, economy of Shanghai will rapidly recover and develop, which will promote employment. In promoting employment, there are preferential measures in eight aspects, which a lot of enterprises don’t know much about. So, as all parts have some knowledge about the policies, the momentum of promoting employment policies will be strengthened, and will begin to show their effect. Anyhow, we should not adopt a casual attitude toward employment situation, and we must not lose confidence; on the contrary, we should be full of confidence.

10、Reporter from STV News: Employment is most closely connected with economy. Wen Jiabao signed an agreement with Hong Kong Special Administrative Region. What effect and role of the agreement on Shanghai and Hong Kong?
Jiao Yang: Hong Kong is an important region of our country. Prosperity and development of Hong Kong is the mutual wish of peoples in China, including people in Shanghai. It is said in a lot of media that relationship between Shanghai and Hong Kong is very important. Many people just see the facet of competition, but, in fact, Hong Kong and Shanghai are in complementary relation. There are some vivid descriptions on the relationship between Hong Kong and Shanghai, for instance, they are“inseparable king birds”and“the two powerful engines on a plane”, etc. For many years, there has been competition between Hong Kong and Shanghai, but there are more mutual promotion and development than competition. The agreement signed this time will build a closer relation between Shanghai and Hong Kong, which will play an active role in making trade more free, investment more convenient and in promoting economic development of the two places.

11、China Economic Times: It is said that the construction of exhibition halls of World Expo’s 2010 will involve more than 4000 enterprises and make them move to other places, and surrounding cities welcome the enterprises to move to their cities, can you give us a specific introduction on it?
Jiao Yang: I noticed that you used“it is said”in your question. We have very detailed augmentation and plan in bidding to hold World Expo’s 2010, and now we have moved from bidding period to preparation period. We will make further augmentation on the design and plans. If it had not been for SARS, another international conference would have been held in Shanghai, and experts in all fields, including corresponding officials from International Exhibition Bureau, would have been invited to present at the conference to study and testify the plan of World Expo Garden. At present, plan for World Expo Garden of Shanghai needs to be further testified and perfected. Thus, it is too early to say how many enterprises are to be moved out.