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Report on the Work of the Government (2013)

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2013年3月5日,第十二届全国人民代表大会第一次会议在北京人民大会堂开幕。国务院总理温家宝作政府工作报告。[新华社 黄敬文 摄]

2013年3月5日,第十二届全国人民代表大会第一次会议在北京人民大会堂开幕。国务院总理温家宝作政府工作报告。[新华社 黄敬文 摄]
Chinese Premier Wen Jiabao delivers the government work report during the opening meeting of the first session of the 12th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 5, 2013. [Huang Jingwen/Xinhua]



—— 2013年3月5日在第十二届全国人民代表大会第一次会议上

Delivered at the First Session of the Twelfth National People's Congress on March 5, 2013

国务院总理 温家宝

Wen Jiabao, Premier of the State Council



一、过去五年工作回顾 I. Review of Work in the Past Five Years
二、今年经济社会发展的总体要求、主要预期目标和宏观经济政策 II. General Requirements, Major Targets and Macroeconomic Policies for This Year's Economic and Social Development
三、对今年政府工作的建议 III. Suggestions for the Work of the Government This Year
各位代表: Fellow Deputies,
现在,我代表国务院,向大会报告过去五年的政府工作,并对今年工作提出建议,请各位代表审议,并请全国政协委员提出意见。 On behalf of the State Council, I now present to you the report on the government's work of the past five years and suggestions for its work this year for your deliberation and for comments from the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).
一、过去五年工作回顾 I. Review of Work in the Past Five Years

The past five years since the First Session of the Eleventh National People's Congress were a truly extraordinary period of time in the course of China's development.

We effectively countered the severe impact of the global financial crisis and maintained steady and fast economic development.

China's GDP increased from 26.6 trillion yuan to 51.9 trillion yuan, and now ranks second in the world.

Government revenue went up from 5.1 trillion yuan to 11.7 trillion yuan.

A total of 58.7 million urban jobs were created.

The per capita disposable income of urban residents rose by an annual average of 8.8%, and the per capita net income of rural residents rose by 9.9%.

Grain output increased for the ninth consecutive year in 2012.

Progress was made in key areas of reform; and the open economy reached a new stage of development.

We made China more innovative. Breakthroughs were made in developing manned spaceflight and the lunar exploration program, building a manned deep-sea submersible, launching the Beidou Navigation Satellite System, developing supercomputers and building high-speed railways. China's first aircraft carrier, the Liaoning, was commissioned.

We successfully hosted the Games of the XXIX Olympiad and the XIII Paralympic Games in Beijing and the World Expo in Shanghai.

We successfully mitigated the impact of the massive Wenchuan earthquake, the strong Yushu earthquake, the huge Zhugqu mudslide and other natural disasters and carried out post-disaster recovery and reconstruction.

China's productive forces and overall national strength, its living standards and social security, and its international status and influence all improved significantly.

We successfully completed the Eleventh Five-Year Plan and got off to a good start in implementing the Twelfth Five-Year Plan.

We made significant socialist economic, political, cultural, social, and ecological progress, and wrote a new chapter in building socialism with Chinese characteristics.

五年来的主要工作及特点: The following are the main work we accomplished over the past five years and its main features:

1. Effectively responding to the global financial crisis and promoting steady and rapid economic development

In the past five years, we averted the grievous consequences of the global financial crisis, whose abruptness, rapid spread and profound impact were rarely seen in the past century. We responded to the crisis calmly, made timely and decisive adjustments to the focus of macro-control, adopted ten measures to increase domestic demand and promote steady and rapid economic growth, and implemented a comprehensive package plan. In a two-year period, an additional four trillion yuan of government investment was made, with 1.26 trillion yuan from the central government, mainly for building government-subsidized housing, improving rural people's wellbeing, building infrastructure, developing social programs, improving the environment, promoting innovation, and carrying out post-disaster recovery and reconstruction.

Over the past five years:

More than 18 million government-subsidized housing units of various types were built, and over 12 million housing units in run-down areas were upgraded.

A total of 18,000 large and medium-sized and key small reservoirs were reinforced, 24,500 kilometers of key small and medium-length rivers were harnessed, and water-saving irrigated farmland was increased by 7.7 million hectares.

A total of 19,700 kilometers of new rail lines were built, 8,951 kilometers of which are high-speed railways.

The high-speed Beijing-Shanghai, Beijing-Guangzhou and Harbin-Dalian railways and a number of intercity railways were opened to traffic.

A total of 609,000 kilometers of new roads were built, 42,000 kilometers of which are expressways, increasing the total length of expressways in service to 95,600 kilometers.

Thirty-one airports and 602 shipping berths for 10,000-ton ships were built.

A number of bridges over rivers and bays and linking islands with other islands and the mainland were completed.

Smooth progress was made in major projects such as those for transporting natural gas and electricity from the west to the east and diverting water from the south to the north, and some of the projects have been completed.

Non-fossil energy production developed rapidly, and China now ranks first in the world in the installed capacity of both hydropower and wind power.

Reconstruction of the Wenchuan, Yushu and Zhugqu disaster areas transformed them completely.

These impressive achievements played a vital role in our effective response to the severe impact of the global financial crisis, and laid a solid foundation for sustaining China's economic and social development. They have benefited and will continue to benefit hundreds of millions of people.


We always strove to maintain a balance between ensuring steady and rapid economic development, adjusting the economic structure, and managing inflation expectations. We made government macro policies more forward-looking, scientific and effective and implemented them with proper orientation, force and focus.

When the impact of the global financial crisis was at its worst, we resolutely implemented a proactive fiscal policy and a moderately easy monetary policy, employed a full range of financial policy tools, increased government spending and made structural tax reductions. We effectively employed monetary policy instruments such as adjusting required reserve ratios and interest rates to maintain proper growth in the money and credit supply.

In response to changing macroeconomic trends, we promptly adjusted the intensity of policy implementation, reduced the force of stimulus policies at an appropriate time, and implemented a proactive fiscal policy and a prudent monetary policy.

We took a holistic and balanced approach in employing fiscal policy. As a result, the government deficit dropped from 2.8% of GDP in 2009 to about 1.5% last year, and both deficit-to-GDP and debt-to-GDP ratios remained at a safe level. We strengthened comprehensive auditing of local governments’ debt and management of their financing platforms, thus effectively controlling latent economic risks.

In employing monetary policy, we maintained a balance between ensuring steady growth, maintaining price stability and warding off risks. The financial system functioned soundly. The banking sector became better able to avert risks. Its capital adequacy rate increased from 8.4% at the end of 2007 to 13.3% by the end of last year, and its non-performing loans dropped from 6.1% to 0.95%.

We kept a firm grip on the real estate market and kept housing prices from rising too quickly.

In 2012, when other major economies in the world were experiencing a slowdown in growth and constantly encountered new risks, we maintained a proper intensity in policy implementation, kept budgetary spending unchanged, improved the spending mix, and reversed the decline in economic growth. As a result, we attained all the main targets set at the beginning of the year: GDP grew by 7.8%, 12.66 million urban jobs were created, and the rise in the CPI fell to 2.6%. All this laid a good foundation for China's economic development this year.


Over the past five years:

China's economy as a whole maintained steady and rapid growth.

Prices remained fairly stable.

Employment steadily increased.

The balance of payments moved toward equilibrium.

GDP grew at an average annual rate of 9.3%, considerably higher than the average global rate and the average rate of other emerging economies for the same period.

China's inflation rate was also much lower than that of other emerging economies.

The Chinese economy is stable and full of vitality.

回首这五年,面对国际经济形势复杂多变、持续低迷的严峻挑战,中央科学判断、果断决策,有效避免了我国现代化进程因巨大的外部冲击而出现大的波折,实践证明这些决策部署是完全正确的。 In the last five years, faced with severe challenges posed by a complex and volatile international economic environment and a sluggish global economy, the central leadership, on the basis of a scientific judgment of the situation, made resolute decisions that steered China's modernization drive clear of major pitfalls created by huge external shocks. Experience fully proves these decisions and implementing steps were entirely correct.

2. Accelerating adjustment of the economic structure and improving the quality and performance of economic development

We adhered to the strategy of expanding domestic demand. As a result, the contribution of domestic demand to economic growth increased significantly, and the share of current account surplus in the GDP dropped from 10.1% to 2.6%.

The upgrading in the mix of private consumption accelerated.

At the end of 2012, the per capita living area of urban and rural residents was 32.9 square meters and 37.1 square meters respectively, an increase of 2.8 and 5.5 over 2007.

Car ownership stood at 21.5 cars per 100 urban households, an increase of 15.5 over 2007.

Travel- and entertainment-related spending has risen substantially.

We adhered to the new path of industrialization with distinctive Chinese features and promoted transformation and upgrading of industrial sectors.

China's manufacturing industry became the largest in the world. With added-value growing at an average annual rate of 13.4% during the past five years, high-tech manufacturing has become a leading pillar of the economy.

Strategic emerging industries grew rapidly, including clean energy, energy conservation, environmental protection, next-generation information and communication technology, biomedicines, and high-end equipment manufacturing.

The overall quality of manufactured goods steadily improved.

The share of value-added of the service sector in the GDP increased by 2.7 percentage points, and it now creates more jobs than any other sector.

We made steady progress in conserving energy, reducing emissions, and protecting the environment. Over the past five years, the following backward production facilities were closed:

Iron works with a total output capacity of 117 million tons.

Steel mills with a capacity of 78 million tons.

Cement plants with a capacity of 775 million tons.

Moreover, in the past five years:

Daily urban sewage treatment capacity increased by 46 million tons.

Energy consumption per unit of GDP fell by 17.2%.

Total chemical oxygen demand fell by 15.7%.

Total sulfur dioxide emissions fell by 17.5%.

Environmental air quality standards were revised.

The air quality index for monitoring fine particulate matter (PM2.5) was added.

Progress was made in major ecological projects to protect virgin forests, afforest marginal farmland, and prevent and control desertification. Over the past five years:

An additional 29.53 million hectares of land were planted with trees.

Desertification was halted on 11.96 million hectares of land.

Soil erosion on 246,000 square kilometers of land was brought under control.

A total of 180,000 square kilometers of land were improved.

We implemented the master strategy for regional development, promulgated and implemented the national plan for developing functional zones, formulated new ten-year guidelines for the large-scale development of the western region and a number of regional development plans, and accelerated leapfrog development of Tibet and Xinjiang. We formulated and implemented a new ten-year program for rural poverty alleviation and development, raised the poverty line to 2,300 yuan at 2010 prices, and intensified efforts to alleviate poverty in contiguous areas with acute difficulties. Major economic indicators rose faster in the central and western regions and northeast China than the national average. Transformation and upgrading of the industrial sector in the eastern region accelerated, and a pattern of regional development is taking shape in which each region both has its distinctive strengths and draws on the strengths of other regions.

We advanced urbanization actively yet prudently. Over the past five years:

A total of 84.63 million rural residents migrated to urban areas.

The urbanization level rose from 45.9% to 52.6%, marking a historic turning point in China's urban-rural population structure.

Development between urban and rural areas and between regions became more balanced.


3. Unremittingly doing our work related to agriculture, rural areas, and farmers well, and consolidating and strengthening the position of agriculture as the foundation of the economy

We carried out agricultural modernization while deepening industrialization, application of information and communication technologies (ICT), and urbanization, and we pooled resources to accomplish a number of major tasks that are important to the long-term development of agriculture and rural areas and to the vital interests of farmers.

We increased central government spending on agriculture, rural areas and farmers, which totaled 4.47 trillion yuan for the past five years and rose by an average annual rate of 23.5%.

We established a sound system for subsidizing grain farmers and a sound mechanism for subsidizing major grain-producing areas, broadened the coverage of the subsidies, and raised them every year, from 63.9 billion yuan in 2007 to 192.3 billion yuan in 2012.

We provided more rural financial services, and the outstanding balance of bank loans to agriculture, rural areas and farmers increased from 6.12 trillion yuan at the end of 2007 to 17.63 trillion yuan at the end of 2012.

We carried out the policy of minimum grain purchase prices and raised the floor prices for wheat and rice between 41.7% and 86.7%.

We intensified protection of farmland and farmers' rights and interests, and made a lot of preparations to improve the system of compensating for expropriation of rural collective land.

We made greater progress in agricultural science and technology and the development of modern agriculture, and we increased support for cultivating superior varieties and breeds, preventing and controlling animal and plant epidemics, and spreading agricultural technology in villages.

We built more water conservancy projects, improved rural land, developed high-grade farmland, and kept the country's total area of farmland over 121.3 million hectares.

Thanks to these efforts, China's overall grain production capacity reached a new level, and its grain output in each of the past six years increased and exceeded 500 million tons.

We strengthened rural infrastructure such as roads and water, power and methane supply capacity. We built or upgraded 1.465 million kilometers of rural roads, renovated run-down houses for 10.33 million rural households, provided safe drinking water for an additional 300 million plus rural residents, and delivered electricity to 4.45 million people in areas without power supply. This led to steady improvement in rural productivity and quality of life.

We encouraged surplus rural workers to find nonagricultural employment. The per capita net income of rural residents grew rapidly, and the relative income gap between urban and rural residents has progressively narrowed since 2010.

We deepened overall rural reform.

We basically completed the main tasks for reforming the collective forest tenure system, made comprehensive progress in determining, registering and certifying collective land ownership, and carried out trials for registering contracted rural land-use rights.

Sound agricultural and rural development provided important support for China to counter the severe impact of the global financial crisis and natural disasters and maintain overall stability in economic and social development.


4. Steadfastly implementing the strategy for making China strong through the development of science and education, and boosting the country's core ability to sustain economic and social development

We accelerated implementation of the National Plan for Long- and Medium-Term Scientific and Technological Development; formulated and implemented the National Plan for Long- and Medium-Term Education Reform and Development, the National Plan for Long- and Medium-Term Development of Competent Personnel and the national strategy on intellectual property rights. This gave impetus to all-around progress in science and technology, education, and culture and laid a solid foundation for ensuring China's long-term development.

优先发展教育事业。国家财政性教育经费支出五年累计7.79万亿元,年均增长21.58%,2012年占国内生产总值比例达到4%。教育资源重点向农村、边远、民族、贫困地区倾斜,教育公平取得明显进步。全面实现城乡九年免费义务教育,惠及1.6亿学生。实施学前教育三年行动计划,“入园难”问题有所缓解。国家助学制度不断完善,建立了家庭经济困难学生资助体系,实现从学前教育到研究生教育各个阶段全覆盖,每年资助金额近1000亿元,资助学生近8000万人次。实施中等职业教育免学费政策,覆盖范围包括所有农村学生、城市涉农专业学生和家庭经济困难学生。初步解决进城务工人员随迁子女在城市接受义务教育问题,现有1260万农村户籍孩子在城市接受义务教育。实施惠及3000多万农村义务教育阶段学生营养改善计划。完成中小学校舍安全工程。加快职业教育基础能力和特殊教育基础设施建设。义务教育学校实施绩效工资,在教育部直属师范大学实行师范生免费教育,加强了农村教师队伍建设。全面提高教育质量和水平,高等教育毛入学率提高到30%。国民受教育程度大幅提升,15岁以上人口平均受教育年限达到9年以上。 We gave high priority to developing education. Government spending on education totaled 7.79 trillion yuan over the past five years, increasing at an average annual rate of 21.58% to reach 4% of GDP in 2012. We allocated educational resources, giving priority to rural, remote, poor and ethnic minority areas and made notable progress in improving fairness in education. We made free nine-year compulsory education universal across the country, benefiting 160 million students. A three-year action plan for preschool education was carried out, and the shortage of preschools was eased. We improved the system of state financial aid to students, and established a system for giving students from poor families financial aid from preschool through graduate school. We spent approximately 100 billion yuan annually for this purpose and assisted nearly 80 million students. We implemented the policy of tuition-free secondary vocational education for all rural students and all urban students who study agriculture-related majors or are from poor families. The problem of providing compulsory education to children of rural migrants working in cities was basically solved, and 12.6 million children with rural residence status are now receiving compulsory education in cities. We implemented the plan for improving nutrition of rural students receiving compulsory education to the benefit of over 30 million students. We completed the project to improve the safety of primary and secondary school buildings. We sped up development of infrastructure for vocational and special education. The pay of teachers in compulsory education is now linked to their performance. Students majoring in education at teachers universities directly under the Ministry of Education were exempted from paying tuition, and the ranks of rural teachers were strengthened. The quality and level of education in China was comprehensively raised, and the gross college enrollment rate rose to 30%. The education level of the people was raised significantly, and the average length of schooling of people over the age of 15 now exceeds nine years.
大力推动自主创新。中央财政用于科技的投入五年累计8729亿元,年均增长超过18%。全社会研究与试验发展经费支出占国内生产总值的比重由2007年的1.4%提高到2012年的1.97%,企业研发活动支出占比超过74%。出台深化科技体制改革加快国家创新体系建设的意见。深入实施国家技术创新工程和知识创新工程,扎实推进国家科技重大专项,新建一批国家工程中心、重点实验室和企业技术中心。加强基础研究和前沿探索,突破一批关键核心技术,填补了多项重大产品和装备的空白。 We vigorously promoted innovation. The central government spent 872.9 billion yuan to develop science and technology in the past five years, with an average annual increase of over 18%. China's R&D spending accounted for 1.97% of GDP in 2012, up from 1.4% in 2007, and over 74% of this spending was made by companies. The Guidelines on Deepening Reform of the Management System for Science and Technology and Accelerating Development of a National Innovation System were adopted. We carried out a national technology innovation project and a knowledge innovation project, made solid progress in implementing major national R&D projects, and set up a number of national engineering centers, key laboratories and enterprise technology centers. We boosted basic research and research in frontier areas, made breakthroughs in a number of core and key technologies, and filled in gaps in many important products and equipment.
深入实施人才强国战略。以高层次、高技能人才为重点,加强各类人才队伍建设,专业技术人才、高技能人才分别增加860万人和880万人,留学回国人员达到54万人。 We implemented the strategy for making China strong through training competent personnel. We trained more personnel of all types, with the focus on high-level and highly skilled personnel. As a result, the number of personnel with special expertise and highly skilled personnel increased by 8.6 million and 8.8 million respectively. A total of 540,000 overseas students returned.
大力加强文化建设。覆盖城乡的公共文化设施网络体系初步建成,博物馆、图书馆、文化馆(站)实现免费开放。国有经营性文化单位转企改制任务基本完成,公益性文化事业单位内部机制改革不断深化。哲学社会科学、新闻出版、广播影视、文学艺术等更加繁荣,文化产业快速发展。文物保护、非物质文化遗产保护和传承取得重要进展。对外文化交流更加活跃。全民健身和竞技体育取得新成绩。 We put greater effort into developing the cultural sector. A network of public cultural facilities covering both urban and rural areas is taking shape, and all museums, libraries and cultural centers in China are open to the public free of charge. We basically transformed state-owned for-profit cultural institutions into business enterprises, and deepened reform of internal operating mechanisms of nonprofit cultural institutions. Philosophy and the social sciences, the press and publishing, radio, television and film, and literature and art are flourishing, and cultural industries developed rapidly. We made major progress in protecting cultural relics and preserving and passing on intangible cultural heritage. Cultural exchanges with other countries increased. New progress was made in nationwide fitness activities and competitive sports.

5. Putting the people's interests first and striving to ensure and improve their wellbeing

We made expanding employment the top priority in ensuring and improving people's wellbeing and pursued a proactive employment policy. Over the past five years, we allocated 197.3 billion yuan of employment funds to help targeted groups obtain employment and to improve vocational training and employment services. As a result, 28 million university graduates and 8.3 million urban residents having difficulty finding jobs found employment. All this kept the overall employment situation stable.

We made comprehensive progress in developing the social security system: A new old-age insurance system for rural residents and an old-age insurance system for non-working urban residents were established, and the basic old-age insurance system now covers both urban and rural residents. A total of 790 million people are now covered by different old-age insurance schemes. Basic pensions for enterprise retirees rose from an average of 700 yuan per month in 2004 to 1,721 yuan at present. We extended social security coverage to retirees of closed or bankrupt enterprises, employees of enterprises with operating difficulties, employees of state-owned enterprises who suffered work-related injuries in the past, and uninsured retirees of collectively owned enterprises.

We deepened reform of the medical and health care systems, established a new type of rural cooperative medical care system and a basic medical insurance scheme for non-working urban residents. A basic medical insurance system that covers the whole population is taking shape, and over 1.3 billion people are now covered by different medical insurance schemes. We improved community-level medical and health care services, and established a system for using basic drugs and implemented it in community-level medical institutions. Steady progress was made in the trial reform of public hospitals. People's health further improved, and the average life expectancy reached 75 years.

The systems for aiding needy rural and urban residents with subsistence allowances, medical care, education and legal assistance were improved. We reformed and improved systems for providing social security to orphans, helping and protecting homeless children, and giving childless and infirm rural residents assistance in the form of food, clothing, medical care, housing, and burial expenses.

We promulgated and implemented new programs for the development of Chinese women and children, and protected their legitimate rights and interests in accordance with the law.

We established a sound government-subsidized urban housing system and extended it to cover 12.5% of the country's urban households by the end of 2012.

Historic achievements were made in developing the social security system. We strengthened and made innovations in social management, put in place a sound emergency response system, encouraged urban and rural communities to fully play their self-governance and service roles, and maintained social harmony and stability.


6. Deepening reform in key areas and enhancing the vitality of economic and social development

We lost no opportunity to carry out reform and achieved great progress in a number of key areas.

We vigorously reformed the fiscal and taxation systems, improved the system of transfer payments and established a mechanism for ensuring basic funding for county-level governments across the country. County- and township-level governments became more capable of providing basic public services. We put in place the basic framework of a system of budgets for public finances, government-managed funds, state capital operations and social security funds, and all extrabudgetary funds were placed under budgetary management. We unified the corporate tax systems for domestic and overseas-funded enterprises, implemented VAT reform, reformed pricing of refined oil products and related taxes and fees, carried out pilot projects to replace business tax with VAT, and reformed the resource tax system. This strengthened the role of the fiscal and taxation systems in accelerating the change of the growth model.

We comprehensively deepened reform of the financial system. Specifically, we smoothly completed the transformation of large state-owned commercial banks into joint-stock companies and carried out reform of policy-based financial institutions in an orderly way. We made notable achievements in reforming rural credit cooperatives, implemented new oversight and supervision standards in the banking industry, launched the ChiNext stock market, and introduced stock index futures and securities margin trading. We deepened reform of the insurance industry and opened it wider. We improved the mechanism for setting the RMB exchange rate, made steady progress in making interest rates more market-based and promoting the RMB's convertibility under capital accounts, established a macroprudential policy framework, and expanded the use of the RMB in cross-border trade and investment. China's banking, securities and insurance industries became significantly more resilient to risks and internationally competitive, and they underpinned our successful response to the global financial crisis.

Reform of state-owned enterprises deepened, their performance improved and their competitiveness was significantly enhanced. We formulated the Guidelines on Encouraging and Guiding the Sound Development of Nongovernmental Investment and rules for their implementation, and the environment for the development of the non-public sector of the economy improved. We adopted a system for compensating for ecological damage and carried out trials for trading pollution discharge and carbon emission rights. We carried out function-based reform of public institutions.


7. Unswervingly opening wider to the outside world and comprehensively improving the performance of the open economy

We actively responded to drastic changes in the external environment, promptly introduced policies and measures to stabilize external demand, and implemented the strategy of diversifying markets. During the past five years, China's import and export volume grew by an annual average of 12.2% and rose from third to second place in the world. China has become the largest exporter in the world, and its international market share increased by over two percentage points over 2007. China's import and export mix improved, and its status as a trading power was further strengthened.

Over the past five years, we utilized US$ 552.8 billion of foreign investment, considerably improved the structure and distribution of this investment, and made much better use of it.

We quickened the implementation of the "go global" strategy and encouraged enterprises of various types to invest and operate overseas. Non-financial outward direct investment increased from $24.8 billion in 2007 to $77.2 billion in 2012, growing at an average annual rate of 25.5%. This turned China into a major overseas investor country.

Opening up vigorously stimulated China's economic development and structural improvement, brought in advanced foreign technologies and managerial expertise, and increased employment and workers' income, and also made an important contribution to global economic recovery.


8. Effectively strengthening governance and deepening reform of the administrative system

We proceeded with the reform of government agencies and put in place the basic institutional framework for establishing larger government departments that integrate the functions smaller ones had performed. We always observed the following basic norms in exercising governance: making policy decisions scientifically and democratically, conducting administration in accordance with the law, promoting transparency in government operations, improving the oversight system and upholding integrity. We adopted new measures and made new progress in exercising government power according to due procedures and in building a service-oriented, accountable, law-based and clean government. We took the following steps to improve government decision-making procedures: making policy decisions scientifically and democratically in accordance with the law; soliciting opinions from the public; and conducting expert evaluation, risk assessment, legality review, and collective discussion.

We deepened reform of the system of review and approval by government bodies and eliminated or streamlined 498 items requiring such review and approval in two stages over the past five years. Departments of the State Council eliminated or streamlined 2,497 items requiring their review and approval, 69.3% of the original total.

We took major steps to increase transparency in government operations, with the focus on government budgets and final accounts, as well as on expenditures for official hospitality, purchase and use of official cars, and overseas trips for official purposes. This made it possible for the people to learn more about how the government functions, and thus more effectively oversee its operations.

Auditing oversight was intensified and became more effective. We comprehensively intensified efforts to fight corruption and build a clean government, and strengthened oversight and supervision of leading officials to ensure that they maintain personal integrity and are self-disciplined. We took steps to put in place a system of performance-based management of government officials, established and earnestly enforced the system of governance accountability focusing on leading government officials, and improved efficiency in governance.

各位代表! Fellow Deputies,
五年来,我们贯彻民族区域自治法,支持少数民族和民族地区发展的政策体系更加完善,民族团结进步事业焕发出新的蓬勃生机。 Over the past five years, we implemented the Law on Regional Ethnic Autonomy, improved the policy system for supporting the development of ethnic minorities and ethnic minority areas, and infused new vitality into the cause of promoting unity and progress of ethnic groups in China.
全面落实宗教信仰自由政策,宗教事务管理的法制化、规范化水平进一步提升。 We comprehensively carried out the policy on freedom of religious belief and managed religious affairs on a more law- and procedure-based basis.
认真贯彻侨务政策,依法保护海外侨胞和归侨侨眷的合法权益,侨务资源的独特优势得到进一步发挥。 We implemented the policy on overseas Chinese affairs in both letter and spirit, protected the legitimate rights and interests of overseas Chinese and those who have returned to China and their families; and we put their unique strengths to better use.
国防和军队建设开创新局面。中国特色军事变革取得重大成就,军队革命化现代化正规化建设协调推进、全面加强,军事斗争准备不断深化,履行新世纪新阶段历史使命能力显著增强,出色完成一系列急难险重任务。 New progress was made in strengthening national defense and the armed forces. Major achievements were made in the revolution in military affairs with Chinese characteristics. The armed forces made coordinated and all-around progress in becoming more revolutionary, modernized and procedure-based. They deepened their military preparedness, greatly enhanced their ability to carry out their historic mission in the new stage in the new century, and accomplished a number of urgent, difficult, and hazardous tasks.
港澳台工作进一步加强。香港、澳门保持繁荣稳定,同内地交流合作提高到新水平。推动两岸关系实现重大转折,两岸直接双向“三通”全面实现,签署实施两岸经济合作框架协议,形成两岸全方位交往格局,开创两岸关系和平发展新局面。 We strengthened our work related to Hong Kong, Macao and Taiwan. Hong Kong and Macao are thriving and stable, and their exchanges and cooperation with the mainland reached a new height. We achieved a major transition in relations between the two sides of the Taiwan Straits. Complete, direct and two-way links of mail service, transport and trade were established, and the Economic Cooperation Framework Agreement was signed and is being implemented. This extended cross-Straits exchanges to all areas and ushered in a new stage of peaceful growth of cross-Straits relations.
全方位外交取得新的重大进展。我们积极推进同各大国关系,加强与周边邻国的互利合作关系,顺利建成中国-东盟自贸区,推动上海合作组织等区域合作机制发展,深化同广大发展中国家的传统友谊与合作,积极参与应对国际金融危机、气候变化等全球性问题的国际合作,推动解决国际和地区热点问题,为我国改革发展稳定营造了有利的国际环境,为世界和平稳定发展繁荣作出重要贡献。 Major new progress was made in China's all-around diplomacy. We vigorously developed our relations with other major countries, enhanced mutually beneficial cooperation with our neighbors, and successfully established the China-ASEAN Free Trade Area. We spurred the development of the Shanghai Cooperation Organization and other mechanisms for promoting regional cooperation, and deepened our traditional friendship and cooperation with other developing countries. We actively participated in international cooperation on global issues like the global financial crisis and climate change and helped resolve international and regional hotspot issues. We thus fostered an international environment favorable for China's reform, development and stability and made a significant contribution to world peace, stability, development and prosperity.
各位代表! Fellow Deputies,
过去五年取得的成就来之不易。这是党中央总揽全局、正确领导的结果,是全党全国各族人民齐心协力、艰苦奋斗的结果。我代表国务院,向全国工人、农民、知识分子、干部、解放军指战员、武警部队官兵和公安民警,表示诚挚的感谢!向全国各族人民,向各民主党派、各人民团体和其他各界人士,表示诚挚的感谢!向香港特别行政区同胞、澳门特别行政区同胞和台湾同胞以及广大侨胞,表示诚挚的感谢!向关心和支持中国现代化建设的各国政府、国际组织和各国朋友,表示诚挚的感谢! Our achievements over the past five years did not come easily. We owe them to the broad vision and correct leadership of the Party Central Committee and the concerted efforts and arduous work of the whole Party and the people of all ethnic groups in China. On behalf of the State Council, I extend my sincere gratitude to all workers, farmers, intellectuals, officials, and members of the People's Liberation Army, armed police and public security police. I extend my heartfelt thanks to the people of all our ethnic groups, the democratic parties, people's organizations and leading figures in all sectors of society. I express my sincere thanks to our compatriots in the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan, as well as overseas Chinese. I also extend my sincere appreciation to foreign governments, international organizations and foreign friends that have shown understanding for and supported China's modernization drive.

We are keenly aware that we still face many difficulties and problems in our economic and social development. In particular:

Unbalanced, uncoordinated and unsustainable development remains a prominent problem.

There is a growing conflict between downward pressure on economic growth and excess production capacity.

Enterprises' operating costs are increasing and their capacity for innovation is weak.

The growth of government revenue is slowing down while fixed government expenditures are increasing.

There are potential risks in the financial sector.

The industrial structure is unbalanced.

The agricultural foundation is still weak.

Economic development is increasingly in conflict with resource conservation and environmental protection.

The development gap between urban and rural areas and between regions is large, and so are income disparities between individuals.

Social problems have increased markedly, and many problems in the areas of education, employment, social security, medical care, housing, the environment, food and drug safety, workplace safety, and public order affect people's vital interests.

Some people still lead hard lives.

There are many systemic and institutional obstacles to developing in a scientific way.

The transformation of government functions has not been fully carried out, and some areas are prone to corruption.

Some of these problems have built up over time, while others have emerged in the course of economic and social development, and still others have been caused by inadequacies and weaknesses in our government work. We should have a strong sense of responsibility toward our country and people, work harder and solve these problems more quickly in order to meet people's expectations and never let them down.

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