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Full Text: Report on the Work of the Government
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II. Major Tasks for 2008

This is the first year for comprehensively implementing the guiding principles set out at the Seventeenth CPC National Congress. We face arduous tasks in reform and development, and it is very important for us to successfully carry out the work of the government.

The basic guidelines and major tasks for the government's work are as follows: We must hold high the great banner of socialism with Chinese characteristics; take Deng Xiaoping Theory and the important thought of Three Represents as our guide; fully apply the Scientific Outlook on Development; attach greater importance to improving macroeconomic regulation, promoting reform, opening up and independent innovation, adjusting the economic structure and improving the quality of development, conserving resources and protecting the environment, and improving people's lives and promoting social harmony; promote socialist economic, political, cultural and social development; and accelerate the process of building a moderately prosperous society in all respects.

We have set the following targets for economic and social development in 2008: On the basis of improving the economic structure, productivity, energy efficiency and environmental protection, the GDP should grow by about 8 percent, and the rise in the CPI should be held at around 4.8 percent. Ten million jobs should be created in urban areas, and the rate of registered urban unemployment should be kept at around 4.5 percent. Some improvement should be made in the balance of payments.

It is important to note here that in setting the GDP growth target at around 8 percent for 2008, we have taken into account a variety of domestic and international factors. Our goal is to maintain both steady and fast economic growth, and guide all sectors of society to concentrate on changing the pattern of development, deepening reform and accelerating social development. The different regions should not just seek faster growth or compete with each other to have the highest growth rate. We should promote both sound and fast economic and social development. The major considerations in setting the target for keeping the CPI this year at around 4.8 percent are as follows: Last year's price increases are still exerting a fairly strong influence and quite a few factors are creating inflationary pressure, making it difficult to bring price increases under control. At the same time, we have to take into consideration the ability of individuals, enterprises and all sectors of society to tolerate price increases and try our best to avoid sharp price increases.

To attain the targets and accomplish the tasks for this year's economic and social development, we must adhere to the following principles: We must make progress while maintaining stability and aim for fast yet steady economic development. We must give priority to the quality rather than speed of development and accelerate improvement in the pattern of economic development. We must pursue reform and opening up and attach great importance to promoting institutional improvements and innovations. We must put people first and accelerate social development, with the focus on improving people's lives. The primary task for macroeconomic regulation this year is to prevent fast economic growth from becoming overheated growth and keep structural price increases from turning into significant inflation. There are quite a few uncertainties in the current economic situation at home and abroad, so we need to keep close track of new developments and problems, properly size up situations and take prompt and flexible measures to respond to them while keeping our feet firmly rooted in reality. We need to maintain the appropriate pace, focus and intensity of macroeconomic regulation to sustain steady and fast economic development and avoid drastic fluctuations in the economy.

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