The first press conference of the Fifth Session of the TenthNational People's Congress (NPC) was held at 11 AM today. Spokesman JiangEnzhu briefed the media on procedures and the session's agenda atthe Press Room of the Great Hall of the People in Beijing.

Jiang Enzhu, addressing the hundreds of journalists who willcover the fifth Plenary Session of the 10th National People'sCongress (NPC), formally announced that the session will open onMarch 5 and run until March 16.

According to Jiang, the chief agenda for the session includes:to hear and examine the report on the work of the government by Premier Wen Jiabao; to discuss the drafts of theProperty Law and the Corporate Income Tax Law; to hear and examinethe report on the work of the Supreme People's Court and the reporton the work of the Supreme People's Procuratorate.

During the session, the Party and state leaders will attend theopening and closing ceremonies, participate in some group meetings,and discuss various social topics with NPC deputies, including theincreased cost of medical care, rising education fees, soaringhousing prices, limited social security coverage, mountingemployment pressure, and the widening income gap.

Jiang also stressed that the opening and closing ceremonies aswell as four presentation meetings will be open to the press.Select group discussions and the joint discussions of the differentgroups will also open to both foreign and domestic journalists.

Responding to a question raised by a reporter from Japan NHK TVnews regarding China's defense budget, Jiang said: "China's defensebudget for 2007 is expected to hit 350.92 billion yuan (US$44.94billion), 17.8 percent higher than that last year."

He said that the figure marks an increase of 52.99 billion yuan(US$6.79 billion) over that of last year. This year's defensebudget accounts for 7.5 percent of the nation's budgeted fiscalexpenditure, compared with 7.7 percent in 2004, 7.3 percent in2005, and 7.4 percent in 2006.

Jiang explained that the defense budget is being raised tofurther increase salaries and allowances for servicemen and armyretirees, ensuring their income follows the same rising trend aseconomic and social development.

He also stressed that China will stay on the road of peace anddevelopment and adhere to a defensive policy in militarybuilding.

When asked by a reporter from Interfax-China of Russia about thedraft corporate income tax law to be deliberated at the upcomingannual session, Jiang said, "The draft law will neither have amassive influence on foreign companies nor affect their enthusiasmfor investment in China."

He revealed that the draft corporate income tax law sets aunified income tax rate for domestic and foreign companies at 25percent, a response to years of criticism that the tax policies areunfair to domestic companies.

China currently practices dual income-tax structures, underwhich domestic companies pay income tax at a nominal rate of 33percent, while their foreign counterparts – who benefit from taxwaivers and incentives designed to encourage investment in China –pay an average of 15 percent.

A total of 1,006 motions were submitted by 3,000 NPC deputiesduring the last session. The Standing Committee of the 10th NPCdeliberated on 24 draft laws and law-related resolutions and hasadopted 15 of them since March 2006.

(China.org.cn by staff reporter Wang Ke, March 4, 2007)