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 oftime 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, cnltural, social, and ecological progress, and wrote a new chapter in building socialism with Chinese characteristics.


  The following are the main work we accomplished over the past five years and its main features:


  I. Effectively responding to the globalfinancial 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 well-being, 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 ofpeople.


  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 were kept at a low level, dropping 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 ofpayments 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.


  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 ofthe economic structure and improving the quality and performance ofeconomic 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 ofGDP 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 s) 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: Anadditional 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.

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