Keeping in mind these requirements, we must focus on achieving the dual objectives of maintaining a medium-high rate of growth and moving toward a medium-high level of development. We need to maintain policy continuity and keep expectations stable while moving forward with reform and structural adjustment, and we need to develop twin engines to drive development: popular entrepreneurship and innovation, paired with increased supplies of public goods and services. This will ensure that our growth rate is adjusted without weakening momentum and that growth in quantity is underpinned by greater quality, thereby achieving a better-quality, more efficient, upgraded economy.

We have set the main targets for China’s economic and social development for this year as follows:

• increase the GDP by approximately 7%;

• keep the increase in the CPI at around 3%;

• create over ten million jobs in urban areas;

• ensure that the registered urban unemployment rate does not rise above 4.5%;

• increase imports and exports by around 6%;

• achieve a basic balance of payments;

• ensure that personal incomes increase in step with economic development; and

• cut energy intensity by 3.1%, and continue to reduce the emissions of major pollutants.

The target growth rate of approximately 7% takes into consideration what is needed and what is possible. This target is both aligned with our goal of finishing building a moderately prosperous society in all respects and is appropriate in terms of the need to grow and upgrade our economy. It is also in keeping with the objective laws of development as well as conditions in China. If China’s economy can grow at this rate for a relatively long time, we will secure a more solid material foundation for modernization.

At the same time, the aim of maintaining stable growth is to ensure employment. As the service sector becomes larger, the number of small and micro businesses grows, and the economy gains in size, a growth rate of approximately 7% will ensure ample employment. Local governments need to set targets based on local conditions, be fully motivated to make progress, and tap into their full potential so as to deliver better outcomes.