As the most important annual political events before the 17th National Congress of the Communist Party of China (CPC) slated for this fall, the upcoming annual meetings of China's top legislature and political advisory body have drawn worldwide attention.

The following are key issues that are expected to be discussed and addressed at the "two sessions" of the National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

TAX AND PROPERTY LAWS

The NPC Standing Committee members have adopted resolutions to submit the drafts of corporate income tax law and property law to the fifth full session of the national legislature for deliberation.

The draft of corporate income tax law sets a unified income tax rate for domestic and foreign companies at 25 percent after years of criticism that the tax policies are unfair to domestic companies.

The draft property law, after its seventh reading, was described as "on the correct political direction" and represented China's basic economic system. It was designed to protect both public and private ownership and has undergone more reviews than any other bill by the NPC Standing Committee.

FIGHT AGAINST CORRUPTION

A number of motions aimed at fighting against corruption and building a clean government are expected to be tabled at the upcoming two sessions.

Despite a number of high profile arrests on corruption charges, many experts agree that an effective system of checks and controls that prevent graft is urgently needed.

Last year, China's anti-graft campaign brought down Shanghai's former Party chief Chen Liangyu, the highest ranking Communist official busted in a corruption probe in a decade, and former director of the National Bureau of Statistics Qiu Xiaohua.

EDUCATION

Rising educational fees have been under fire and remained a hot topic at the two sessions in recent years. Meanwhile, encouraging changes have taken place.

China will exempt all students in rural areas from various fees in nine-year compulsory education this year, Chinese State Councilor Chen Zhili said early this month.

China has exempted students in rural areas of western China from compulsory education fees last year and the exemption policy will be expanded to the central and eastern regions.

MACROECONOMIC CONTROL

China's gross domestic product (GDP) surged by 10.7 percent year-on-year to reach 20.94 trillion yuan in 2006.

It was the fourth straight annual double-digit growth rate for China, driven by hefty investment and rocketing trade.

Ma Kai, minister in charge of the National Development and Reform Commission, attributed the excessive investment growth to a blind pursuit of growth and an over-dependence on investment to achieve economic growth

Official with the Commission said the growth rate would fall below ten percent in 2007, and "addressing the excessive liquidity of the banks should be a key task in macro-control measures of this year."

AGRICULTURE, FARMERS AND RURAL ECONOMY

With 900 million people living in rural areas, the issues on agriculture, farmers and rural economy have been a top agenda for the Chinese government in recent years.

The "No. 1 Document" issued by the CPC Central Committee and the State Council at the beginning of the year said developing modern agriculture is the top priority in building a new socialist countryside and the central government would pump more money into rural areas and make greater efforts to equip the agriculture industry with modern technology this year.

Last year, the per-capita income of Chinese farmers stood at 3,587 yuan, less than one third of the level of urban residents.

MEDICAL CARE

A 2006 national survey showed 48.9 percent of Chinese didn't bother or couldn't afford to see a doctor when they were ill and 29.6 percent refused a doctor's advice to be hospitalized because the cost was too high.

Minister of Health Gao Qiang promises to hammer out reform of the country's medical care system in 2007, featuring increased government investment, stricter professional supervision and reduced medical costs for citizens.

The government will continue to extend its health care network in rural areas and in urban communities. The rural cooperative medical care system will cover at least 80 percent of counties this year.

Under the rural system, each farmer pays 10 yuan to a medical fund every year, with the state and local governments each contributing 10 yuan to the pool, too. When a farmer receives medical treatment, he could have a certain proportion of the medical expenses refunded.

TAIWAN ISSUES

The year of 2007 is a crucial period for opposing "Taiwan independence" and securing peace and stability across the Straits, said Yang Yi, spokesman for the Taiwan Affairs Office under the State Council.

This year and the following year will witness key changes in Taiwan's politics, as the island is to embrace two major elections.

"The two sessions will further rally our willpower to propel the peaceful and stable development of cross-Strait relations in the benefits of both sides," said Xu Shiquan, member of the CPPCC National Committee.

"HARMONIOUS SOCIETY" AND "HARMONIOUS WORLD"

The 16th CPC Central Committee adopted the Resolution on Major Issues Regarding the Building of a Harmonious Socialist Society last October, which says social harmony is the intrinsic nature of socialism with Chinese characteristics and an important guarantee of the country's prosperity, the nation's rejuvenation and the people's happiness.

"Harmonious society" was one of the phrases that popped up most often in the media last year, according to an annual media language analysis, and it is expected to be further discussed at the two sessions.

China aims to build a harmonious society at home, and work with other countries to build a harmonious world of enduring peace and common prosperity, said President Hu Jintao.

Editor: Donald