Ladies and Gentlemen, With its development entering a new historical stage in the seconddecade of the 21st century, China is in an important period ofstrategic opportunities. Peace, development and cooperation remainthe trend of our times. The international environment is generallyconducive to China's pursuit of peaceful development. Numerousfactors -- continuous industrialization, urbanization andagricultural modernization, huge market potential, a relativelyhigh savings rate, better R&D capacity, better education, amore skilled labor force, deepening reform and overall stability --have created enabling conditions and vast space for continuedeconomic and social development in China. On the other hand, we arestill facing a pressing problem, that is, China's development isnot yet balanced, coordinated and sustainable and there are manyinstitutional constraints hindering scientific development. |
As thesize of the Chinese economy grows, it will become difficult to keephigh-speed growth over a long period of time. However, the newdevelopments, both internationally and in China, have not changedthe fundamentals of China's development. We have the rightconditions, and we have both the ability and confidence to maintainsteady and fairly fast growth of the economy and bring China'seconomy to a new stage of development. The current 12th Five-year Plan period is a critical stage inChina's efforts to build a society of initial prosperity in allrespects. Taking into full consideration the future trend andconditions as well as China's goals for 2020 and responding to theneed for changing the model of growth at a faster pace, achievingscientific development and bringing the benefits of reform anddevelopment to all the people, we have set the following goals andstrategic tasks for these five years: -- China will continue to follow the strategy of expanding domesticdemand, with focus on improving the structure of demand andincreasing consumer demand to drive economic growth.
Domesticdemand is crucial and a necessary choice for a big country toachieve sustainable economic growth. China has 20 percent of theworld's population. With its per capita GDP exceeding US$4,000,China has entered a key stage for upgrading consumption structure.To upgrade consumption and raise the quality of life for urban andrural population and strengthen weak links in economic and socialdevelopment will generate enormous domestic demand. We willendeavor to build a long-term mechanism for expanding consumerdemand, create a favorable environment for consumption, improveconsumer expectation, boost spending power and upgrade consumptionstructure.
We will expand consumption in the course of advancingurbanization, protecting and improving people's well-being andspeeding up the development of service industries. We aim to makeurbanization grow by 4 percentage points, and raise the share ofthe value added created by service industries in GDP by 4percentage points, so that final demand will become a major forcedriving China's economic growth. -- China will continue to develop education as a priority, bringabout all-round human development, and promote economic developmenton the basis of improving the quality of human capital. For a majordeveloping country like China, boosting education and improvingquality of human resources will drive economic development and makeit more competitive.
We will act quickly to achieve economic growthby increasing the quality of human capital rather than by justusing more workers. This will enable us to catch up with theprogress in technology and change the model of growth, and it holdsthe key for us to adapt to demographic changes and achievesustainable development. We will fully implement the outline of thenational medium- and long-term plan for education and promotebalanced development of education at different levels and ofvarious types. We will ensure equitable education for all, promotewell-rounded development of people, train innovation-orientedtalents, and advance education in a scientific manner. And we willmove faster to make China not only a big country but also a strongcountry in both education and human resources.
This will providestrong intellectual impetus for sustaining China's economicdevelopment. -- China will continue to build an innovation-driven society, speedup the development of an innovation system, and enhance the role ofscience and technology in driving economic and social development.R&D is crucial in guiding our efforts to accelerate the changeof growth model. During the 12th Five-Year Plan period, we willgive greater priority to R&D, deepen reform of science andtechnology institutions, and address the root causes of R&D notfully meeting the need of economic development. We will increaseinput in science and technology and raise the share of budget forR&D in GDP from 1.75 percent to 2.2 percent.
We will followclosely the latest progress in overseas frontier technologies,strengthen basic research and the research of high technologies ofstrategic importance, and pool resources to make breakthroughs indeveloping core technologies. We will enhance capacity to create,utilize, protect and manage intellectual property rights and bringinto play the creativity of the whole society. We will acceleratethe upgrading of traditional industries by using new technologies,new materials, new techniques and new equipment. We will vigorouslydevelop strategic emerging industries, with a focus at this stageon industries related to energy conservation, environmentalprotection, new-generation information technology, biotechnology,high-end equipment manufacturing, new energy, new materials and newenergy vehicles.
Our goal is to develop new pillar industries so asto gain initiative for development in the new scientific revolutionand industrial revolution.
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