Third, we stepped up structural adjustments to make China' s development more sustainable.

We took proactive steps to address prominent structural problems and supported the development of certain areas while containing the development of others, focusing on urgently needed initiatives that promise long-term benefits. Our goal herein has been to lay a firm foundation for economic and social development.

Work was done to strengthen the foundations of agriculture. We increased policy support to strengthen agriculture, benefit farmers, and raise rural living standards. Grain output increased for the 11th consecutive year, and the income of rural residents grew faster than that of urban residents for the fifth year running. Overall agricultural production capacity was steadily improved. Agricultural science and technology continued to be strengthened, and agriculture was further mechanized. The pace of progress in the construction of major water conservancy projects was stepped up. Farmland under water-saving irrigation was increased by 2.23 million hectares. An additional 230,000 kilometers of roads were built or upgraded in rural areas. We launched a new round of efforts to return more marginal farmland to forest or grassland. The work to determine, register, and certify contracted rural land-use rights proceeded as planned, and new types of agricultural businesses registered faster growth.

We channeled great energy into making adjustments in the structure of industry. We focused on fostering new areas of growth by encouraging the service sector to develop more quickly, and supporting the development of strategic emerging industries, including the mobile Internet industry, the integrated circuits industry, high-end equipment manufacturing, and the new-energy vehicles industry. Internet-based finance rose swiftly to prominence. E-commerce, logistics, express delivery services and other emerging businesses developed rapidly. We have seen makers coming thick and fast, and the cultural and creative industries have been developing with great vitality.

At the same time, we continued to cut overcapacity. Fifteen key industries including steel and cement achieved their task for the year of shutting down outdated production facilities as scheduled. We stepped up efforts to prevent and control smog and surpassed this year' s targets for removing high-emission and old vehicles from the roads.

Progress was made in developing infrastructure and promoting coordinated development among regions. Significant progress was made in coordinated development for the Beijing-Tianjin-Hebei region and in building the Yangtze Economic Belt. An additional 8,427 kilometers of railway lines were put into operation. The length of high-speed railways that are up and running in China reached 16,000 kilometers, accounting for more than 60% of the world' s total. The length of the country' s expressways open to traffic grew to total 112,000 kilometers. Waterways, civil aviation, and pipelines were all further developed. Steady progress was made in upgrading rural power grids. The number of broadband Internet users exceeded 780 million. Thanks to many years of hard work, the first phase of the middle route of the South-to-North Water Diversion Project was officially put into operation, benefiting millions of people along the route.

We implemented the strategy of innovation-driven development. We helped commercialize research and development deliverables, expanded the scope of trial policies from the Zhongguancun National Innovation Demonstration Zone to other areas, and ensured that scientific and technological resources were openly shared. All this has been helping to constantly unleash the creativity of scientists and engineers. Breakthroughs have been made in major research projects such as supercomputing, the lunar exploration program, and satellite applications, and a regional jet developed and produced in China has been successfully put into service.

Fourth, we worked on developing a tightly woven and sturdy safety net to secure and improve living standards.

We continued to put people first, sustaining increases to spending in areas that are important to improving standards of living. We have been working to build up a basic safety net, ensure there is a cushion in place for those most in need, and make relevant institutional arrangements. Despite a slowdown in the growth of government revenue and increased pressure on expenditures, more than 70% of last year' s government budget was spent on ensuring standards of living.

We worked to strengthen employment and social security. We improved the policies to stimulate employment and initiated the scheme to help college students and graduates to start businesses, ensuring a steady increase in the employment of college graduates. We unified the basic pension systems for rural residents and non-working urban residents and increased basic pension benefits for enterprise retirees by a further 10%. Construction began on 7.4 million government-subsidized housing units, and 5.11 million such units were basically completed. We established a nationwide temporary-assistance system, increased subsistence allowances by 9.97% for urban residents and 14.1% for rural residents, and increased subsidies and living allowances by more than 20% for disabled military personnel, families of revolutionary martyrs, and old-age veterans.

We continued to make progress in securing fair access to education. We strengthened efforts to improve badly built and poorly operated schools providing compulsory education in poor areas, increased financial aid to students from poor families, and significantly increased the amount available per eligible student for national study assistance loans. The scheme to subsidize the waiving of tuition fees at schools providing secondary vocational education was extended to cover three years of study. Policies have been introduced to ensure that children can receive compulsory education at schools close to where they live without having to take entrance exams, and 28 provincial-level administrative areas began to allow children who live with their migrant worker parents to take the college entrance exam in their cities of residence. The number of students from poor rural areas who were newly enrolled in key colleges and universities increased by more than 10% for the second year running. Through hard work, government spending on education has come to reach over 4% of GDP.

We intensified efforts to reform and develop medical and health care. Trials of serious illness insurance for rural and non-working urban residents were extended to all provincial-level administrative areas, the framework of the system for providing assistance for emergency medical treatment was established, and over 95% of the whole population was covered by medical insurance. The comprehensive reform of community medical and healthcare centers was deepened, and the networks of medical and healthcare services for counties, townships, and villages have been steadily improved. The number of counties and county-level cities carrying out trial public hospital reforms reached over 1,300.

We worked actively to develop the cultural sector. Progress was made in developing major cultural initiatives designed to benefit the public. Great efforts were made to extend radio and television coverage not only to all villages but to all rural homes. Efforts were made to ensure the production of more high-quality literary and artistic works, and the modern culture market was improved. Popular fitness activities are flourishing nationwide, and the 2014 Summer Youth Olympic Games in Nanjing were a great success.

Fifth, we have been developing new forms of social governance, and promoting social harmony and stability.

We responded effectively to natural disasters and emergencies, worked to resolve social problems in a systematic way, and strengthened mechanisms to address problems at the source. These efforts have protected lives and ensured public order.

Last year, when strong earthquakes hit in areas including Ludian and Jinggu counties in Yunnan Province, we launched timely and efficient relief efforts and made smooth progress in post-earthquake recovery and reconstruction. We worked proactively to assist Africa in the fight against Ebola, and effectively prevented the virus from entering China. We intensified efforts to ensure workplace safety and achieved reductions in the number of total accidents, serious and major accidents, and accidents in key industries. Serious efforts were made to prevent food contamination, and on the whole the situation was kept stable in food and medicine safety.

In a major push to advance law-based government administration, the State Council submitted proposals to the Standing Committee of the National People' s Congress (NPC) on enacting or revising 15 laws including the Food Safety Law, and formulated or revised 38 sets of administrative regulations including the Provisional Regulations on Enterprise Information Disclosure. We took thorough steps to increase transparency in government operations, and used multiple means to widely solicit comments from the public on major government decisions and policies. The third national economic census was completed. We reformed the system for handling public complaints made in the form of letters or visits. Legal aid was expanded to cover not only people living on subsistence allowances but also those on low incomes. We strengthened efforts in both urban and rural community building, and made direct registration a reality for four types of social organizations, including industry associations and chambers of commerce. We cracked down on crime, strengthened efforts in the comprehensive maintenance of law and order, and effectively safeguarded national security and public safety.

We have been strictly putting into practice the CPC Central Committee' s eight-point decision on improving Party and government conduct and making persistent efforts to fight formalism, bureaucratism, hedonism, and extravagance. We have been rigorously implementing the State Council' s three-point decision on curbing government spending, and have effectively controlled the construction of new government buildings, the staffing of government bodies and public institutions, and the spending on official overseas visits, official vehicles, and official hospitality. Administrative supervision and auditing oversight have been intensified; efforts have been stepped up to improve Party conduct, build a clean government, and fight corruption; and we have investigated and prosecuted violations of the law and discipline, bringing many offenders to justice.

We have taken strong steps to ensure the implementation of major policies and measures, carrying out inspections, introducing third-party evaluations and public appraisals, and establishing permanent mechanisms. These efforts have gone a long way in advancing all of our work.

Over the past year, Chinese diplomacy has been fruitful. President Xi Jinping and other state leaders visited many countries and attended major international events, including the G20 Leaders Summit, the BRICS Leaders Meeting, the Shanghai Cooperation Organization Summit, the East Asian leaders' meetings on cooperation, the Asia-Europe Meeting, the Annual Meeting of the New Champions 2014 in Tianjin, and the World Economic Forum annual meeting 2015 in Davos, Switzerland. China hosted the 22nd APEC Economic Leaders Meeting, the Fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia, and the Boao Forum for Asia.

China has been participating actively in establishing multilateral mechanisms and writing international rules. We have made steady progress in developing relations with other major countries, entered a new phase in neighborhood diplomacy, and made new headway in our cooperation with other developing countries. Notable progress has been made in conducting economic diplomacy.

Progress has been made in pursuing the Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives; preparations have been made for establishing the Asian Infrastructure Investment Bank, and the Silk Road Fund has been set up.

China is engaging in more exchanges and cooperation with other countries, and is increasingly recognized as a major responsible country on the international stage. (more)