Fellow Deputies,

We owe the achievements of the past year to the overall planning and sound policymaking of the Party Central Committee with Comrade Xi Jinping as General Secretary and to the concerted and unremitting efforts of all members of the Party and the armed forces, and all of China' s people.

On behalf of the State Council, I wish to express our sincere gratitude to the people of all our ethnic groups, and to the non-CPC parties, people' s organizations, and people from all sectors of society. We would like to express our heartfelt appreciation to our compatriots in the Hong Kong and Macao special administrative regions and in Taiwan, and to Chinese nationals overseas. We also wish to express true gratitude to the governments, international organizations, and friends from all over the world who show understanding for and support China in its endeavor to modernize.

While recognizing our achievements, we must also be mindful of the difficulties and challenges on the road ahead:

-- Growth in investment is sluggish; the number of new areas of strong consumer activity is limited; there is no sign the international market is about to significantly pick up; maintaining stable growth is becoming more difficult, and there are still latent risks in some areas.

-- The prices of manufactured products are continuing to fall; the costs of factors of production are on the rise; small and micro businesses are finding it difficult and costly to obtain financing; and enterprises face increasing difficulties in their production and operations.

-- China' s economic growth model remains inefficient; our capacity for innovation is insufficient; overcapacity is a pronounced problem, and the foundation of agriculture is weak.

-- There are still many problems of public concern in medical services, elderly care, housing, transport, education, income distribution, food safety, and law and order. Environmental pollution is serious in some localities, and major accidents in the workplace are not uncommon.

-- There is still much to be improved in the work of the government, with some policies and measures not being satisfactorily implemented. A small number of government employees behave irresponsibly; shocking cases of corruption still exist; and some government officials are neglectful of their duties, holding onto their jobs while failing to fulfill their responsibilities.

We must face these problems head on. In times of peace one must be alert to danger, and in times of stability one must be mindful of the potential for chaos. We must be ready to bear the weight of responsibility, do justice to our historic mission, and live up to the great trust the people place in us.

II. The Plan for Work in 2015

China is the largest developing country in the world; it is still in the primary stage of socialism, where it will remain for a long time to come. At this stage, development is of primary importance to China; it is both the basis for and the key to solving every problem we face. In order to defuse problems and risks, avoid falling into the "middle-income trap," and achieve modernization, China must rely on development, and development requires an appropriate growth rate.

At the same time, China' s economic development has entered a new normal. Our country is in a crucial period during which challenges need to be overcome and problems need to be resolved. Systemic, institutional, and structural problems have become "tigers in the road" holding up development. Without deepening reform and making economic structural adjustments, we will have a difficult time sustaining steady and sound development.

We must be adamant in pursuing economic development as our central task and make a thorough job of development as the top priority for ensuring the governance and revitalization of the country. We must continue to promote development in a sound and balanced way through reform and speed up the transformation of the growth model so as to achieve quality, efficient, and sustainable development.

At present, the world economy is undergoing profound adjustment, its recovery lacks drive, the influence of geopolitics is increasing, and there are a greater number of uncertainties at play. Promoting growth, creating jobs, and making structural adjustments have become common goals for the international community. With downward pressure on China' s economy building and deep-seated problems in development surfacing, the difficulties we are to encounter in the year ahead may be even more formidable than those of last year.

On the other hand, China is still in an important period of strategic opportunity during which great progress can be made in development. Our country' s development has enormous potential and is hugely resilient, and we have ample room for growth. Steady progress is being made in the development of new types of industrialization, applications of information technologies, urbanization, and agricultural modernization; the foundation underpinning development is becoming stronger by the day; benefits of reform are being delivered as we speak; and we have gained much experience in conducting macro regulation. We must strengthen our awareness of latent problems while remaining fully confident and taking an active approach to development. (more)