China's economy has now entered a new normal. The Chinese government is a capable steward and confident that it can lead the economy to overcome any obstacles that present themselves, keep steady and sustainable growth, and become a strong power to support the world economy.

The confidence of the government results from an objective assessment of China's position. In terms of the economy, though growth has slowed down, the growth rate remains stable and issues of concern such as unemployment, hyperinflation, and debt crisis have not emerged. Against a base of the 7.4 percent growth rate of last year, China's economy had a very steady performance in the first quarter of this year with an improvement in employment and people's living standards.

In terms of potential, the Chinese economy is still on the rise. China is currently sparing no effort to promote new models of industrialization, informatization, urbanization, agricultural modernization, and greenification, which will all contribute to new economic growth. Tertiary industry is also playing its role well in the development of the economy.

In terms of economic aggregate, China is already the world's second largest economy. At its current pace of growth, the annual net growth in China economy equals to the scale of a medium size economy. Its imports and exports, foreign exchange reserves, and foreign investment are all ranked No.1 in the world. Hence China's position as a major engine fueling world economic growth will not change in the foreseeable future.

China's confidence comes from the commitment to deepening reform. China is now committed to transforming the national economic structure and reducing structural risks. In recent years the development of hi-tech industry has been faster than the average pace of industry as a whole. The contribution from tertiary industry has surpassed primary industry in the past two years, reaching a historic high. The contribution to the economy from consumption has also exceeded investment. The income gap between urban and rural residents has narrowed, the development gap between east, middle, and west is narrowing, and personal incomes are taking a larger portion of GNP.