1、Review of 2014 and plan for 2015Over the past year， the international and domestic environments faced by China in its development have been complicated and challenging. The road to global economic recovery has been rough， with many ups and downs， and the performance of the major economies has been d
2、ivergent. Downward pressure on Chinas economy has continued to mount， and we have faced an array of interwoven difficulties and challenges. However， under the firm leadership of the Central Committee of the Communist Party of China （CPC） headed by General Secretary Xi Jinping， all our people have wo
3、rked together as one， surmounted difficulties， and accomplished the years main targets for economic and social development. We have made solid progress in our endeavor to finish building a moderately prosperous society in all respects， got off to a good start in comprehensively deepening reform， emb
4、arked on a new journey to fully advance the law-based governance of China， and seen progress in the allround strengthening of Party self-conduct. During the past year， China has， overall， achieved a stable performance while at the same time securing progress in its economic and social development. T
5、he main indication of this stable performance is that the economy operated within an appropriate range. The economic operation ?The growth rate was steady. Chinas GDP reached 63.6 trillion yuan， an increase of 7.4% over the previous year， making China one of the fastest-growing major economies in th
6、e world. ?Employment remained robust， with 13.22 million new urban jobs created， which is higher than the figure for the previous year. ?Prices were stable， with the CPI rising by 2%. ?The underlying feature demonstrating progress is that our development is becoming better coordinated and more susta
7、inable. ?The economic structure was upgraded. The contribution of consumption toward economic growth rose by three percentage points to 51.2%； the value added of the service sector increased from 46.9% to 48.2% of the GDP； and there was a constant stream of new industries， new types of business， and
8、 new business models. The central and western regions grew faster in economic terms than the eastern region. ?The quality of development was raised. Revenue in the general public budgets grew by 8.6%. Research and development spending accounted for more than 2% of the GDP. Energy intensity was cut b
9、y 4.8%， the biggest reduction made in recent years. ?Peoples lives were improved. Per capita disposable personal income increased by 8% in real terms nationwide， growing faster than the economy， and the per capita disposable income of rural residents grew by 9.2%， outpacing that of those living in u
10、rban areas. In rural areas， the number of people living in poverty was reduced by 12.32 million， and over 66 million more people gained access to safe drinking water. The number of outbound trips made by Chinese tourists exceeded 100 million. ?New breakthroughs were made in reform and opening up. A
11、series of key tasks for comprehensively deepening reform were launched， and the goal of the current administration to cut the number of items that require government review by one third was achieved ahead of schedule. Over the past year， we have faced more difficulties and challenges than anticipate
12、d. We have risen to the challenge and accomplished the following in our work. First， on the basis of range-based macro regulation， we exercised targeted regulation to keep the economy growing steadily. In the face of mounting downward economic pressure， we maintained strategic focus and kept our mac
13、roeconomic policy unchanged. Instead of us- ing short-term stimulus measures， we continued to develop new ideas and methods for macro regulation. We exercised targeted regulation， stimulated market activity， shored up our weak spots， and boosted the real economy. With a keen understanding of the app
14、ropriate range within which the economy needs to be operating， we adopted targeted steps to address the serious issues and structural problems hindering development. We promoted reform to gain impetus for development， made structural adjustments to produce support for development， and improved livin
15、g standards to increase the potential for development. We both expanded market demand and increased effective supply， working to ensure that structural adjustments were made without compromising the growth rate. We have been effectively implementing proactive fiscal policy and prudent monetary polic
16、y. We increased targeted tax reductions， reduced fees across the board， extended the coverage of tax relief policies to benefit more small and micro businesses， and expanded the trials to replace business tax with VAT to cover more industries. We sped up the process of making budgetary funds availab
17、le for fiscal expenditures and put surplus budgetary funds to good use. By flexibly utilizing monetary policy instruments， making targeted cuts to required reserve ratios， carrying out targeted re-lending， and making asymmetric interest rate cuts， we stepped up support for weaker areas in economic a
18、nd social development. Increases in loans made to small and micro businesses， and loans for agriculture， rural areas， and farmers， outdid the average increase in loans overall by 4.2 and 0.7 percentage points respectively. At the same time， regulation of the financial sector was improved and regiona
19、l and systemic risks were forestalled. Second， we deepened reform and opening up and invigorated economic and social development. To address obstructions holding back development caused by certain systems and mechanisms， we comprehensively deepened reform， invigorat-ing the market to offset downward
20、 economic pressure. We tackled many tough issues and carried out structural reforms in the economic， political， cultural， societal， and ecological sectors. We have made solid progress in key reforms. We formulated and implemented a coordinated plan for deepening the reform of the fiscal and tax syst
21、ems. Important progress was made in the reform of the budgetary management and tax systems. The number of items receiving special transfer payments was over one third less than that of the previous year， and the proportion of transfer payments for general purposes was increased. Management of local
22、government debt was strengthened. The floating ranges of interest rates on deposits and exchange rates were expanded. New steps were taken in the trials to establish private banks. The Shanghai-Hong Kong Stock Connect was launched on a trial basis. The scope for using foreign exchange reserves and i
23、nsurance funds was broadened. Price reforms in energy， transport， environmental protection， and communications were accelerated. We launched reforms to the system for managing research and development funding， the school examination and enrollment systems， the household registration system， and the
24、pension system for employees of Party and government offices and public institutions. We drew on further opening up to boost reform and development. We expanded the China （ Shanghai） Pilot Free Trade Zone and established similar zones in Guangdong， Tianjin， and Fujian. We worked to keep exports stab
25、le and increase imports， and Chinas international market share in exports continued to increase. Foreign direct investment actually made in China reached$119.6 billion， making the country the worlds top destination for foreign direct investment. Chinas outward foreign direct investment reached $102.
26、9 billion， meaning that outward investment has come to draw even with inward investment. Chinas free trade zone arrangements with Iceland and Switzerland were officially launched， and China completed substantive talks on free trade zones with the Republic of Korea and Australia. Third， we stepped up
27、 structural adjustments to make Chinas development more sustainable. 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 emer
28、ging 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 develop
29、ed rapidly. 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. Fifth， we have been developing new forms of socia
30、l governance， and promoting social harmony and stability. 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 Co
31、operation 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 Sum
32、mit of the Conference on Interaction and Confidence Building Measures in Asia， and the Boao Forum for Asia. 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 impo
33、rtance 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 “middleincome trap， ” and achieve modernization， China must rely on development， and development requires an appropriate growth rate. At the same time
34、， Chinas 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
35、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
36、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，
37、 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 Chinas economy building and deep-seated problem
38、s 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 countrys development h
39、as 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 bec
40、oming 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. This coming year will be crucial for comprehensively
