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CIRCULAR OF THE STATE COUNCIL CONCERNING THE ISSUANCE OF THE QUALITY INVIGORATION PROGRAMME (1996-2010)

    The Quality Invigoration Programme (1996-2010) is hereby distributed for
your earnest implementation.
APPENDIX: THE QUALITY INVIGORATION PROGRAMME (1996-2010)

    The Quality Invigoration Programme (1996-2010) is promulgated for the
purpose of implementing the Ninth Five-Year Plan and the 2010 Programme of
Prospective Objectives of the National Economy and Social Development of the
People's Republic of China, upgrading the overall levels of the quality of
products, projects and services of our country and providing guidance to the
work concerning quality.

    1. The Present Status and Situation

    (1) Great progress has been achieved in the work concerning quality in
China since the implementation of the policy of reform and opening up. Vast
number of enterprises has laid a certain material foundation for the
improvement of quality by relying on technological advancement, improving
technical equipment, strengthening administration and practising scientific
management. Formulation of rules and regulations and cultivation of
professional ethics have been stepped up, propagation and education of quality
has been universally conducted, while quality consciousness of the whole
people and the quality of workers and staff members have been considerably
raised. Laws and regulations relating to quality have been constantly
perfected, the work concerning quality has gradually embarked on the track of
legality and the external environment to push the enterprises in the
improvement of quality is gradually taking shape.

    (2) At present, the overall levels of the quality of products, projects
and services of our country still fall short of satisfying the requirements of
increasing improvement in the living standards of the people and the constant
development of the society and there still exists a quite large gap compared
to the economically developed countries which manifests itself mainly in the
following: poor quality of a number of raw materials, basic components and
other products, serious loss resulting from sub-standard products in the
production process; the quality of a number of projects falls short of the
requirements of national standards, irrationality in some project designs and
equipment selection, poor quality in construction and there even exist hidden
structural defects; big fluctuations in service quality, failure of post sales
service of commodities to keep up with the sales; low standards in quality
control, incompletion in rules and regulations and weak self-discipline in
quite a number of enterprises; lack of effective means of quality control, and
legal system has yet to be further perfected and strengthened.

    (3) The question of quality is a strategic issue in economic development.
Quality standards are the overall reflection of a country's level of economy,
science and technology, education and administration. It has become one of the
important factors affecting the development of the national economy and
foreign trade. The two basic transformations must be carried out at an
accelerated pace, and levels of quality of products, projects and services of
our country upgraded as quickly as possible so as to satisfy the requirements
of increasing improvement in the living standards of the people and the
constant development of the society, enhance competitive capability and
promote the development of the national economy and the society of our country.

    2. Main Objectives

    (4) Main objectives of quality invigoration are as follows: effect a basic
upgrade in the overall quality of major industries and quality control level
of the enterprises of our country through five to fifteen years of efforts
with a view to making new strides in the quality of products, projects and
services of our country. Major results shall be achieved in the following
areas:

    ---by 2000, marked improvement in the overall quality of major industries
and initial formation of a number of key industries and a batch of big
enterprises and enterprise groups with capabilities of international
competition. By 2010, overall quality of major industries shall basically meet
the requirements of international competition.

    ---by 2000, production of over 75% of major industrial products shall be
organized according to international standards or advanced overseas standards
with marked increase in the ratio of excellent products reaching advanced
international standards and marked improvement in post sales service of
products; the pass rate of key products of the state in sample inspection of
comparable follow-up supervision shall reach over 90%; the pass rate of export
products leaving the factories shall reach 100%; quality of products and
services of major industries shall basically reach national standards. By
2010, production of over 85% of major industrial products shall be organized
according to international standards or advanced overseas standards with
drastic increase in the ratio of excellent products reaching advanced
international standards and formation of standardized post sales service
network; the pass rate of key products of the state in sample inspection of
comparable follow-up supervision shall be stabilized at over 95%; bringing
into being a number of well-known brand products with capabilities of
international competition; quality of products and services of major
industries shall be close to or reach advanced international standards. To
this end, particular attention should be paid to the quality of four
categories of key products: raw materials, basic components, major equipment
and consumer goods.

    The raw materials category: by 2000, quality of products of such major raw
materials industries as coal, iron and steel, non-ferrous metals and chemical
industries shall all reach national standards with the quality of a certain
percentage of the products reaching advanced overseas standards. By 2010,
quality of 1/3-1/2 of the products of major raw materials shall reach the
average standards of the developed countries with the quality of a number of
important raw materials reaching advanced international standards.

    The basic components category: by 2000, efforts shall be exerted for the
overall level of the quality of such basic components as mechanical and
electronic components to reach the level of the developed countries in the
early 1990s, with drastic improvement in the reliability of basic mechanical
components and an average improvement by one figure grade in the reliability
of electronic components and breakthrough in the quality of key automotive
parts and components and the complete-vehicle matching capability. By 2010,
efforts shall be made for the quality of such basic components as mechanical
and electronic components to approach the average level of the developed
countries.

    The major equipment category: by 2000, safety performance targets of all
major equipment in machinery, electronic and petro-chemical industries shall
reach compulsory standards of the state. By 2010, complete-machine reliability
of major equipment in machinery, electronic and petro-chemical industries
shall approach or reach the average standards of the developed countries.

    The consumer goods category: by 2000, quality, safety and hygiene targets
of major products in the consumer goods category shall all meet compulsory
standards of the state, and technical quality targets and complete-machine
reliability of major durable consumer goods shall approach or reach the
average standards of the developed countries. By 2010, quality, safety and
hygiene targets of major products in the consumer goods category shall meet
international standards and the technical quality targets and complete-machine
reliability of major durable consumer goods shall approach or meet advanced
international standards, and bring into being a number of well-known brand
products with strong power in international competition.

    ---quality of projects: by 2000, quality of projects handed over for use
upon completion of construction must meet the national standards or the
requirements of specifications. Integrated trial run and acceptance of large-
and medium-size construction projects shall qualify in one go and ensure
continuous production or normal use. The pass rate of one-stop acceptance of
other projects shall reach 90% among which over 35% shall be in the range of
excellence. By 2010, quality of all projects upon completion shall meet the
national standards or requirements of specifications. The pass rate of
one-stop acceptance of projects other than those large- and medium-size
construction projects shall reach 96% among which the rate of excellence shall
reach over 40%.

    ---quality of services: by 2000, all such traditional and emerging service
industries as railway, communications, civil aviation, commerce, tourism,
medical service and public health as well as banking, insurance, real estate
and information consultancy shall follow the national standards for quality of
services and realize initially institutionalization, procedures and
standardization in quality of services. By 2010, quality of services shall
basically reach international standards.

    3. Enhancement of Quality Awareness of the Whole People and Improvement of
the Quality of Workers

    (5) Strengthening quality-related legal education and enhancing the sense
of legality about quality. Diverse forms shall be adopted to popularize the
education of knowledge of quality-related laws and regulations to enhance the
sense of legality of the whole people. Enterprises shall fulfil statutory
obligations with regard to quality in real earnest and engage in production
and operation in accordance with law; the broad masses of users and consumers
shall safeguard their own lawful rights and interests in accordance with law
by availing themselves of quality-related laws and regulations.

    (6) Improvement of the quality of workers shall be an important link in
the upgrade of quality. Earnest efforts shall be made to step up the education
of operators, workers and staff members of enterprises in quality awareness
and knowledge of quality control, and training of workers and staff members in
working skills actively conducted. Universities and colleges where conditions
are ripe shall set up quality control curriculum and train personnel for the
work of quality control. Training institutions for quality control at all
levels shall be established and perfected, and education and training in
quality shall be conducted at different tiers. Education in quality shall be
an important content in the training and enhancing working skills in all
types of vocational schools and on-job training of workers and staff members;
middle and primary school education shall also contain a certain amount of
education in quality.

    (7) Giving full play to news media, organizations of the industries and
societies of the masses in public opinion motivation and supervision.
Activities such as "The Month of Quality", "The 10000 Li Tour on Quality" and
"March 15 Protection of Consumer Rights and Interests" shall continue to be
conducted to motivate the broad masses of people to dedicate themselves to the
cause of quality invigoration, bringing about an environment and atmosphere in
which the whole society pays attention to quality.

    4. Strengthening Administration and Policy Guidance

    (8) The people's governments of all localities and the competent
departments under the State Council should carry out their administrative
responsibilities in real earnest, conduct administration in accordance with
law, strengthen leadership and management over the work of quality, enhance
the scientific reliability and effectiveness in quality control, and create a
good external environment for quality invigoration in guidance, coordination,
supervision and service.

    (9) Upgrading the quality of products by way of technological advancement.
The principle of "supporting the strong on merits" shall be adhered to,
efforts for technical transformation intensified, and technical contents
increased to promote key industries, key enterprises and key products to
achieve higher standards in quality. Joint tackling of scientific and
technological problems should be actively organized to overcome weak links in
the quality of products; quality of products produced by utilizing introduced
technology or transformed technology should meet international standards or
advanced overseas standards; quality of newly-developed products should meet
international standards or advanced overseas standards.

    (10) Adjusting the structure of products and improving the quality of
products. Policy restraints on the economic scale and technical level of the
investment projects shall be strengthened. Key support shall be provided to
the production of a number of leading products having higher quality and
market competition edge. The state shall, at regular intervals, publish
catalogues of products restricted in or banned from production and gradually
phase out products of high energy consumption and serious pollution.

    (11) Stepping up supervision and control over large-scale purchasing
activities. The state shall practise standardized administration of
procurement of major equipment and government purchasing activities by clearly
defining the responsibilities relating to quality in purchasing activities so
as to ensure the quality of procured products.

    (12) Implementing the well-known brand development strategy to invigorate
national industries. Encouragement shall be given to enterprises to
manufacture products of fine quality and support shall be provided to
enterprises where conditions are ripe for the creation of well-known brand
products. The state shall formulate the well-known brand development strategy,
and encourage enterprises to carry out transregional and transindustrial
association in striving for the creation of internationally known brand
products with strong power in international competition. Rules for quality
reward shall be formulated in accordance with the relevant provisions of the
Law of the People's Republic of China on Quality of Products.

    5. Stepping up Legislation and Intensifying Efforts in Law Enforcement and
Supervision

    (13) Perfection of legislation on quality. Acceleration of legislation on
quality control and further perfection of quality control regulations.

    (14) Intensification of quality supervision. Supervision over the quality
of key industries, key products and major construction projects as well as
urban and rural housing projects shall be strengthened. Protection of
intellectual property rights shall be reinforced and crackdown on acts of
encroachment on patent rights and trademark rights conducted. Production
licensing control shall be tightened and efforts to check and deal with
products without production licences intensified. Efforts of sample inspection
by the state supervision shall be stepped up and post supervisory sample
inspection processing shall be handled properly by employing economic, legal
and administrative means so as to improve the efficacy of supervision. Severe
punishment shall be meted out to illegal acts of production and sale of
imitated, fake and inferior commodities in accordance with law, severe
sanctions shall be imposed on those responsible for the cover-up of and
connivance at the production and sale of imitated, fake and inferior
commodities and local protectionism or departmental protectionism shall be
firmly rooted out.

    (15) Establishment and perfection of a mechanism for quality-related law
enforcement and supervision to improve the standards of law enforcement. Rules
of law enforcement, supervision and inspection shall be worked out and
supervision and inspection of the implementation of quality-related laws and
regulations stepped up, and acts of handling cases not according to law, being
not strict in law enforcement, not investigating cases in violation of law and
abuse of power shall be firmly investigated and punished.

    (16) Strengthening the building of the quality-related law-enforcement
force. Education and training of law-enforcing personnel shall be stepped up,
quality of law-enforcing personnel constantly improved, supervisory means
perfected and integrated law enforcement capability upgraded so as to raise
the authority and efficacy of law enforcement.

    6. Completion of Market Quality Rules and Perfection of Social Supervision
Mechanism

    (17) Establishing and completing quality standards of commodity markets.
The commodity markets shall establish a quality supervision and control
mechanism, work out standardized procedures for the handling of the quality
problem of commodities and gradually form a perfect quality supervision
system. Commodities entering into market distribution must bear standardized
quality marks. Commercial enterprises shall, in real earnest, strengthen
quality inspection of in-coming commodities during acceptance and fulfil
responsibilities with respect to commodity quality in accordance with law.

    (18) Establishing and perfecting the national quality authentication
system. The state shall exercise unified administration of quality
authentication according to law, formulate regulations relating to quality
authentication, approve authentication offices and laboratories, and register
and administer examination and evaluation personnel. It shall practise product
quality authentication and quality system authentication according to rules in
international practice, and exercise supervision and control over
authentication. International bilateral and multilateral mutual authentication
of quality authentication shall be actively promoted.

    (19) Perfecting the quality control systems for projects. Construction of
projects shall practise the responsibility system of the legal person of the
project, the system of tender and tender bidding, the system of project
supervision and the system of contract management. Large- and medium-size
construction projects and key national projects shall practise the system of
construction supervision; the system of equipment supervision shall be
established for complete set of equipment in key construction projects on the
basis of the responsibility system of the legal person of the project.

    (20) Promotion of product quality insurance. On the basis of promoting the
enterprises to establish and perfect quality control systems and conduct
product quality risk evaluation and in accordance with the principle of
voluntary insurance on the part of the enterprises, product responsibility
insurance and product quality assurance insurance shall be carried out and a
new mechanism of quality assurance and supervision brought into force.

    (21) Establishment and perfection of product mark system. In line with
international practice and characteristics of different products, the system
of various marks shall be followed, including product safety marks, production
licence marks, warning marks, characteristics marks, authentication marks,
antiimitation marks and insurance marks. The departments concerned shall
exercise supervision and control over the said marks.

    (22) Active conduct of the work of quality complaints and quality
arbitration and inspection. The departments and units concerned shall, in
accordance with the provisions of relevant laws and regulations, accept
quality complaints and quality arbitration and inspection, mediate in
quality-related disputes and safeguard the lawful rights and interests of
users, consumers and enterprises.

    (23) Giving full play to the role of intermediate agencies. Building of
such intermediate agencies as those of quality inspection and calculation and
measurement testing shall be stepped up and the work of notarial inspection
testing, market commodity inspection, insured commodity risk evaluation, as
well as procurement acceptance inspection and project and equipment
supervision be actively conducted. Agencies of product quality authentication
and quality system authentication shall be perfected to provide effective
service for enterprises to participate in market competition. Consultancy
services agencies shall actively provide standardized consultancy services for
the society as to quality policy, control, evaluation and examination,
authentication, regulations as well as standards, calculations and
measurements and information. All types of social organizations shall play the
role of social supervision over quality and chambers of commerce and
associations of industries shall exercise self-discipline. Services such as
social quality propagation, education and technical consultancy shall be
actively undertaken.

    Governments at all levels shall strengthen control over intermediate
agencies and standardize the conduct of intermediate agencies. Intermediate
agencies shall pass qualification confirmation in accordance with law,
establish self-disciplined operation mechanism according to market rules and
undertake corresponding responsibilities in accordance with law.

    7. Solidification of the Foundation of Enterprises and Enforcement of
Strict Internal Quality Control

    (24) Enterprises should build up scientific quality concept in line with
the rules of market economy. The concept of "Quality First" should be firmly
built up, sense of competition, sense of risks and sense of legality enhanced.
Enterprises should actively look to the market and subject themselves to the
supervision of users, society and government; activities such as
"transformation of mechanism, enforcement of management, upgrading of built-in
functions and increment of efficiency", "invigoration of the industry through
quality" and "invigoration of the enterprise through quality" should be
actively unfolded, in an effort to improve quality, reduce cost, increase
efficiency and establish an enterprise quality assurance mechanism which is
full of vigor and vitality.

    (25) The principle that operators and managers of enterprises focus on
quality shall be adhered to. Directors (managers) of enterprises shall be
fully responsible for the work of quality of the enterprises. Directors
(managers) shall be responsible for the formulation of enterprise quality
control goals, establishment of enterprise quality system and its effective
operation.

    (26) Quality-related work of enterprises shall be integrated with the
deepening of reform and enforcement of management. Enterprises shall establish
quality responsibility system with clearly-defined powers and
responsibilities, perfect quality control rules and control organs, further
strengthen quality inspection work and ensure in real earnest that inspection
organs and inspection personnel exercise their functions according to product
standards and rules and in accordance with law. Product performance and
technical design should be constantly improved. Strict quality control shall
be enforced in respect of in-coming raw materials, basic components and parts
manufactured by other coordinated enterprises. Strict discipline of techniques
and strict quality control of the entire production process and out-going
products shall be enforced, and post sales service stepped up. The concept of
quality cost should be built up and activities to reduce losses resulting from
inferior products should be conducted to gain efficiency from quality control.
Building construction enterprises should enforce control of the construction
sites, perfect quality assurance system, implement the quality responsibility
system, adhere to the principle of "triple controls" (namely, self-inspection,
mutual inspection and inspection at the time of hand-over) in the construction
process to eliminate sub-standard projects and do a good job of guaranteed
repair and visits to users upon completion of construction. Service
enterprises should enhance their sense of service, improve operational and
service conditions and facilities, set up and perfect service quality system
and constantly raise service standards.

    (27) Enterprises should exert their efforts to strengthen the technical
foundation and strictly abide by the compulsory national standards. Production
should be organized in strict accordance with standards and no production
shall be undertaken without standards. Calculation and measurement inspection
and testing system shall be established and perfected with active adoption of
advanced calculation and measurement testing methods and strict control of
calculation and measurement testing equipment. Enterprises the conditions of
which are ripe should, with reference to advanced international standards,
work out enterprise standards for internal control (including appearance and
shape) which are competitive and higher than the existing national and trade
standards.

    (28) Enterprises should strive hard for technical advancement. They should
follow closely advanced international technology, actively adopt new
technologies, new techniques and new materials, and accelerate the development
of new products and commercialization of scientific research results.
Technical advancement and technical transformation shall be integrated with
improvement in the quality of products and introduction of advanced production
technologies shall be matched with the introduction of advanced inspection and
testing means. Timely increment in quality-related input shall be effected
according to market demand and centering on the improvement in product quality
so as to ensure improvement in the technical performance of products and their
upgrade.

    (29) Enterprises should actively adopt scientific quality control methods
and establish comprehensive and scientific quality control system. In
accordance with the national standards for Quality Control and Quality
Assurance and other advanced control standards in international practice, and
in the light of the actual conditions of the enterprises, comprehensive
quality control should be continuously promoted and quality system established
and perfected. Application of various scientific control means and methods
shall be extended to enforce on-the-spot management of enterprises, and all
kinds of rules and regulations shall be perfected. Quality control activities
involving the masses should be actively conducted, initiatives of the masses
should be respected and activities of putting forward rational proposals
should be unfolded.

    (30) Enterprises should establish and perfect incentive mechanisms for the
encouragement of improvement in quality. On-job quality standards, quality
responsibilities and corresponding evaluation methods shall be worked out and
perfected and evaluation results shall constitute important basis for the
transfer, promotion in position and grade, reward or punishment of workers and
staff members. Internal distribution shall follow the system of coupling the
distribution of individual income with quality with "quality veto" as the main
mode.

    (31) Rural and township enterprises shall, in the light of the existing
outstanding problems, take down-to-earth measures in respect of enhancing the
sense of quality, increasing quality-related input, stepping up training of
workers and staff members and perfecting inspection and testing means, and
organize production and conduct inspection in strict accordance with standards
and ensure that no sub-standard products shall be shipped out.

    (32) Enterprises committed to the production of coordinated and matching
raw materials, basic components and coordinated parts for defense industrial
departments should, in strict accordance with the provisions of relevant
national standards and product quality control, establish and perfect quality
assurance system and practise strict responsibility system so as to ensure the
quality and reliability of matching products.

    (33) Enterprises should enhance the cultivation of spiritual civilization
and strive to foster enterprise quality culture. Professional ethics and
enterprising spirit should be important contents in the fostering of
enterprise quality culture. Attention shall be paid to the building up of the
image of the enterprise in quality reputation and the atmosphere under which
production and distribution of quality products is glorious and production and
distribution of imitated, fake and inferior products is shameful shall be
built up.

    8. Organization and Implementation

    (34) People's governments of all localities and the competent departments
under the State Council shall, in real earnest, strengthen the overall
planning, organization and leadership of quality-related work, and earnestly
do well the job of the implementation and putting into practice of this
Programme and work out plans for concrete implementation in the light of the
actual conditions of their respective regions and industries.

    (35) The rule of joint session for quality invigoration shall be
established. In the process of implementation of this Programme, the
department of overall economic administration and the department of quality
supervision and control under the State Council shall convene joint sessions
in accordance with the requirements of the work, and conduct organization and
coordination with respect to relevant major issues.

    (36) Mobilization and organization of the whole society for active
participation in the cause of quality invigoration. Quality invigoration being
a cause of the whole nation, all regions, departments and units should enhance
the sense of historical responsibility and sense of urgency of the times, make
joint efforts, do down-to-earth work and make respective contributions to the
realization of the goals put forth in this Programme and to the cause of
quality invigoration of our country.