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II. General Requirements, Major Targets and Macroeconomic Policies for This Year’s Economic and Social Development

At its Eighteenth National Congress, the Party scientifically reviewed its work over the previous five years and the historic achievements since its Sixteenth Congress, set forth the objectives of finishing building a moderately prosperous society in all respects and deepening reform and opening up in an all-around way, and laid out an overall plan for advancing the cause of socialism with Chinese characteristics.

The year 2013 is the first year for fully carrying out the guiding principles of the Party’s Eighteenth National Congress, a crucial year for continuing to implement the Twelfth Five-Year Plan and an important year for laying a solid foundation for finishing building a moderately prosperous society in all respects.

China remains in an important period of strategic opportunities during which much can be acplished. There are many favorable conditions and positive factors as well as a number of risks and challenges for China’s economic and social development.

The profound impact of the global financial crisis persists, and the recovery of the world economy is full of uncertainty and not yet on a stable footing.

We should realize that the situation is encouraging and so remain confident; but also that it is plex and so be mindful of adversity, have a keen sense of urgency, and industriously and earnestly do our work well.

The general requirements for this year’s work are:

Thoroughly study and fully implement the guiding principles of the Eighteenth Party Congress. Hold high the great banner of socialism with Chinese characteristics.

Follow the guidance of Deng Xiaoping Theory, the important thought of Three Represents and the Scientific Outlook on Development. Take developing in a scientific way as the underlying guideline and accelerating the change of the growth model as the major task. Focus on improving the quality and performance of economic growth.

Deepen reform and opening up. Implement the strategy of making development more innovation-driven. Make progress while ensuring stability. Blaze new trails in a pioneering spirit. Get off to a good start.

Comprehensively promote socialist economic, political, Cultural, social and ecological progress. Achieve sustained, healthy economic growth and social harmony and stability.

The major targets for this year’s economic and social development are:

Increase GDP by about 7.5%. Better coordinate development.

Hold increases in the CPI to around 3.5%.

Add more than 9 million urban jobs. Keep the registered urban unemployment rate at or below 4.6%.

Ensure that real per capita ine for urban and rural residents increases in step with economic growth and that work remuneration rises in step with increases in labor productivity.

Further improve the balance of payments.

Here, I wish to explain our targets for economic growth and overall prices.

The target for economic growth: This is a general target that is followed closely by all. In setting this year’s target for economic growth at about 7.5%, we have taken two factors into account.

On the one hand, we need to continue to seize opportunities and promote development. Over the years, the capacity ofChina’s manufacturing industry has increased considerably and our infrastructure has improved significantly, which means they are better able to sustain development. The rate of savings has been high, and the size of the workforce has remained large.

We must better allocate and employ factors of production and maintain a proper level of economic growth in order to provide necessary conditions for creating jobs and improving people’s well-being and to create a stable environment for changing the growth model and adjusting the economic structure.

We must ensure that economic growth is in accord with the potential economic growth rate, the ability to supply factors of production, and the bearing capacity of resources and the environment.

On the other hand, we should, in accordance with the Scientific Outlook on Development, guide all the people to shift the focus of their work to accelerating the change of the growth model, adjusting the economic structure and improving the quality and performance of economic growth, so as to promote sustained and healthy economic development.

In light of these considerations, we deem it necessary and appropriate to set this year’s target for economic growth at about 7.5%, a goal that we will have to work hard to attain.

The target for overall prices: Maintaining basic stability of overall prices has always been an important macro-control target.

Last year, the rise in the CPI dropped to 2.6%. This was an important result of our efforts to curb inflation, and it was also due to the overall economic performance.

This year, China is still under considerable inflationary pressure. The main reasons are:

There is upward pressure on the prices of land, labor and other factors of production and the prices of farm products and services.

Major developed countries are increasingly carrying out easy moary policies, and imported inflationary pressure cannot be overlooked.

We need to leave some room for adjusting the prices of energy and resources.

The carry-over effect of the CPI increase in 2012 will contribute roughly one percentage point to this year’s CPI growth rate.

Taking all these factors fully into account, we have set the target for increases in the CPI at around 3.5% for this year.


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