Over the past year, the Central Committee of the Party and the State Council united with and led the people of all ethnic groups in China in implementing the Scientific Outlook on Development; accelerating the change of the growth model; correctly handling the relationships between ensuring steady and rapid economic development, adjusting the economic structure, and managing inflation expectations; and overcoming various difficulties and adverse effects. The national economy showed a good momentum of stabilized growth, improved structure, stable prices, and improved people's lives. These hard won achievements can be attributed to the broad vision and scientific policymaking of the Central Committee of the Party and the State Council, to the close cooperation and solid work of all regions and departments, and to the unity and hard work of the people of all ethnic groups in China.

At the same time, we are keenly aware that China still faces many risks and challenges in its development.

The world financial crisis is continuing to have a profound effect, the global economy is growing sluggishly, latent inflationary pressure is on the increase, developed economies are subject to high fiscal and financial risks, and protectionism in international trade and investment has intensified.

Domestically, unbalanced, uncoordinated, and unsustainable development remains a serious problem, and is very acute in some areas.

First, the foundation for economic turnaround is not firm. Consumption is unable to provide a very strong impetus to economic growth, enterprises are less able and willing to invest, and external demand will not change for the better in the near future.

Second, some enterprises have difficulties with their production and operations. The rising cost of factors of production and weak innovation capabilities have caused a profit squeeze among enterprises. The proportion of loss-making large industrial enterprises has increased by 2.2 percentage points over the previous year, and the difficulties of small and micro businesses have been even more severe.

Third, overcapacity is a serious problem. Traditional manufacturing industries, especially those that are energy intensive and have high emissions, are plagued by overcapacity, and some emerging industries are undergoing haphazard development, thus making it difficult to improve enterprises' performance and industrial competitiveness.

Fourth, it has become harder to promote steady growth of agricultural production and increase rural income. Arable land, fresh water, and other natural resources are highly strained, agricultural infrastructure is weak, and increases in rural residents' income from both agricultural and nonagricultural work may slow down. In addition, slowing economic growth and enterprises' difficulties will continue to affect employment over time. The imbalance between government revenue and expenditures is serious. Latent risks exist in the financial sector. The need to protect the ecological environment is pressing. Some cities are under pressure for housing prices to rebound. The problem of various kinds of wastefulness is staggering. Many issues concerning land expropriation, housing demolition, workplace safety, food safety, and income distribution have quite an impact on social harmony and stability.

We must take these problems very seriously and adopt measures to solve them. (more)

Full text: Report on China's economic, social development plan (1)
Full text: Report on China's economic, social development plan (2)
Full text: Report on China's economic, social development plan (3)
Full text: Report on China's economic, social development plan (4)
Full text: Report on China's economic, social development plan (5)
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Full text: Report on China's economic, social development plan (8)
Full text: Report on China's economic, social development plan (9)
Full text: Report on China's economic, social development plan (10)
Full text: Report on China's economic, social development plan (11)
Full text: Report on China's economic, social development plan (12)
Full text: Report on China's economic, social development plan (13)
Full text: Report on China's economic, social development plan (14)
Full text: Report on China's economic, social development plan (15)