关于2014年国民经济和社会发展计划执行情况（中英对照）

（三）加快产业结构调整，大力推进经济转型升级。充分发挥市场机制作用，加强政策引导，加快发展方式转变，促进产业结构优化升级。

3. We accelerated industrial structural adjustment and vigorously promoted economic transformation and upgrading.

Through exerting market forces and enhancing policy guidance, we sped up the transformation of the economic growth model and gave new impetus to the improvement and upgrading of the industrial structure.

一是自主创新有新突破。研究与试验发展经费支出与国内生产总值之比2.09%，企业研发经费支出占全社会支出的比例超过76%。“天河二号”、超级杂交水稻、“嫦娥”工程、卫星应用、载人深潜等重大创新成果世人瞩目。生物、智能制造装备、海洋工程装备、支线客机、移动互联网、宽带网络设备等领域突破一批关键核心技术和产业化瓶颈，云计算、物联网、大数据等战略性新兴产业发展迅速，微创新、众创等创新创业模式蓬勃兴起。高技术制造业增加值增长12.3%，比规模以上工业快4个百分点。

1) New breakthroughs were made in innovation.

Spending on R&D as a percentage of GDP reached 2.09% in 2014, with corporate R&D spending accounting for over 76% of the total. Cutting-edge innovations such as the Tianhe-2 supercomputer, super-hybrid rice, the Chang’e lunar lander, satellite applications, and the deep-sea manned submersible Jiaolong captured global attention. Breakthroughs were made in a number of key and core technologies and industrial applications, covering the fields of biology, intelligent manufacturing equipment, ocean engineering equipment, regional airliners, mobile Internet, and broadband network equipment. There was rapid development in strategic emerging industries, such as cloud computing, the Internet of Things, and big data. Micro-innovation, crowd innovation, and other innovative and entrepreneurial models showed robust growth. The value-added of the high-tech manufacturing sector rose by 12.3%, four percentage points higher than that of industrial enterprises with annual revenue of 20 million yuan or more from their main business operations.

二是传统产业转型升级积极推进。企业技术改造深入展开。重点产业布局调整和产业转移步伐加快。化解产能过剩有序展开，年初确定的15个重点行业淘汰落后产能任务完成，产能盲目扩张得到遏制。煤炭行业脱困取得阶段性成效。

2) Good headway was made in transforming and upgrading traditional industries.

The technological upgrading of enterprises in traditional industries was carried out vigorously. Initiatives to adjust the distribution of key industries and relocate industries gathered pace. Steady progress was made in the elimination of excess production capacity. Tasks set out at the beginning of last year to eliminate excess production capacity in 15 key industries were completed as planned, effectively curbing the blind expansion of production capacity. Important gains were made in turning the coal industry around.

三是服务业增长保持良好势头。新业态、新模式蓬勃发展，文化创意和设计服务与相关产业融合发展，物流业发展中长期规划和三年行动计划出台。第三产业（服务业）增加值30.7万亿元，增长8.1%，占国内生产总值比重达到48.2%，超过第二产业5.6个百分点。

3) The service sector sustained rapid growth.

New business types and models displayed robust development. Cultural and creative industries and design services were further integrated with related industries, and a mid-to-long-term development plan and three-year action plan were introduced for the logistics industry. The value-added of tertiary industry (the service sector) amounted to 30.7 trillion yuan, increasing by 8.1% over the previous year and accounting for 48.2% of the GDP, 5.6 percentage points higher than that of secondary industry.

四是基础产业和基础设施快速发展。综合交通运输体系进一步完善，全国铁路营业里程和高速公路通车里程双双突破11万公里。新增7个国家级互联网骨干直联点，又有近3000万个家庭实现光纤到户。水电总装机突破3亿千瓦，页岩气、煤层气和深海油气勘探开发取得重大进展。规划建设的172项重大水利工程，已开工建设57项。南水北调中线一期工程通水，京津冀等地6000万群众喝上了长江水。

4) Basic industries and infrastructure developed quickly.

The country’s comprehensive transportation system was further improved, with the total length of railway lines and expressways open to traffic both exceeding 110,000 kilometers. National internet backbone access points were built in seven more cities, and fiber optic broadband was made available to another 30 million households or so. The installed capacity of hydropower facilities nationwide exceeded 300 million kilowatts. Major progress was made in the exploration and exploitation of coal seam gas, shale gas, and deep-water oil and gas. Construction began on 57 of 172 major water conservancy projects that have been planned. The first phase of the central route of the South-to-North Water Diversion Project was put into operation, providing drinking water from the Yangtze River to 60 million residents in the Beijing-Tianjin-Hebei region.

（四）夯实农业农村发展基础，促进城乡区域协调发展。积极发展现代农业，扎实推进以人为核心的新型城镇化，优化经济发展空间格局，城乡区域协调发展迈出新的步伐。

4. We bolstered the foundations of agricultural and rural development and made advances toward balanced development between urban and rural areas and between regions.

Throughout the year we vigorously developed modern agriculture, steadily promoted a new type of people-centered urbanization, optimized the spatial planning of economic development, and took new steps in balancing development between urban and rural areas and between different regions.

一是农业农村发展态势良好。继续加大“三农”投入，支持农业基础设施建设。引导土地经营权有序流转，农村承包耕地流转比例达到30%左右。农业环境突出问题治理总体规划、生态保护与建设示范区实施意见、国有林场改革方案和国有林区改革指导意见制定完成。粮食总产量达到6.07亿吨，实现“十一连增”。肉蛋奶、果蔬鱼等农副产品生产稳定。解决6600多万农村人口饮水安全问题，改造农村危房266万户，农村贫困人口减少1232万人。

1) Agriculture and rural areas showed good development momentum.

Investment related to agriculture, rural areas, and farmers was further increased, and the development of agricultural infrastructure was supported. We oversaw the orderly transfer of land operation rights, leading to the transfer of around 30% of contracted land-use rights in rural areas. We formulated an overall plan to control serious agricultural environmental pollution, guidelines on establishing demonstration zones for ecological conservation and improvement, a plan to reform state forestry farms, and guidelines on reforming state forestry areas. Total grain output grew for the 11th consecutive year, reaching 607 million metric tons. Production of agricultural and sideline products, including meat, eggs, milk, fruit, vegetables, and fish, remained stable. We guaranteed the provision of safe drinking water for over 66 million more rural residents, renovated dilapidated houses for 2.66 million rural households, and reduced the number of rural population living in poverty by 12.32 million.

二是新型城镇化积极稳妥推进。国家新型城镇化规划及户籍制度改革、“三个1亿人”实施方案等配套政策出台实施，包括2个省和62个城市（镇）的国家新型城镇化综合试点启动，城市规模划分标准优化调整。常住人口城镇化率为54.77%，户籍人口城镇化率预计为36.7%。

2) A new type of urbanization was advanced in an active yet prudent way.

We issued and implemented a national plan on a new type of urbanization, and carried out supporting policies such as a plan to reform the household registration system and a scheme for fulfilling the three tasks, each concerning 100 million people: granting urban residency to around 100 million people who have moved to cities from rural areas, rebuilding run-down areas and “villages” inside cities where around 100 million people live, and guiding the process of urbanization of around 100 million rural residents in the central and western regions. Comprehensive trials for a new type of urbanization were launched in two provinces and 62 cities or towns. Standards for classifying cities based on their population were fine-tuned. The percentage of the population residing permanently in urban areas was 54.77%. The percentage of the population registered as permanent urban residents is estimated to have reached 36.7%.

三是区域发展协调性增强。“三大战略”布局加快展开。推进“一带一路”建设的有关规划编制完成，各领域务实合作有序展开。京津冀协同发展区域功能定位和规划纲要确定，交通一体化、生态环保、产业升级转移三个重点领域率先突破积极推进。依托黄金水道推动长江经济带发展的指导意见和长江经济带综合立体交通走廊规划颁布实施。西部大开发新开工重点工程33项、总投资8353亿元，西部地区鼓励类产业目录发布实施。近期支持东北振兴若干重大政策举措的意见出台，资源枯竭城市转型取得阶段性成果。中部地区“三基地、一枢纽”建设深入推进，“两横两纵”空间发展格局得到优化。东部地区经济转型加快，在全国经济发展中继续发挥引领作用。对革命老区、民族地区、边疆地区、贫困地区特别是集中连片特殊困难地区的支持力度加大。

3) Regional development became more balanced.

We accelerated the implementation of the “Three Major Strategies”: the Silk Road Economic Belt and 21st Century Maritime Silk Road (“One Belt and One Road” strategy); the coordinated development of the Beijing-Tianjin-Hebei region; and the development of the Yangtze River economic belt. We finalized plans for advancing the “One Belt and One Road” strategy, steadily launching pragmatic cooperation in a wide range of areas. We completed the functional zoning of the Beijing-Tianjin-Hebei region and established the plan for its coordinated development, and made initial breakthroughs in three key areas of integrated transportation, environmental protection, and industrial upgrading and relocating. We issued and implemented guidelines on stimulating the development of the Yangtze River economic belt, which revolve around making use of the Yangtze’s role as a golden waterway, and launched the plan to build an integrated multidimensional transportation corridor along the Yangtze River economic belt. A total of 33 key projects for the large-scale development of China’s western region were launched, representing a total investment of 835.3 billion yuan; and a list of industries encouraged for development in the western region was released and put into effect. Guidelines concerning a number of major policies and measures to support the revitalization of northeast China in the near future were issued, and progress was made in the transformation of cities once dependent on resources that are now depleted. Continued efforts were made to establish the central region as a national integrated transport hub and as a center for production of grain, energy, and raw materials, and the development of modern equipment manufacturing and high-tech industries. The regions’ developmental layout consisting of two east-west and two north-south economic belts was further improved. The economic transformation of the eastern region gained momentum, and continued to spur on the development of the Chinese economy. Increased economic support was provided for old revolutionary base areas, ethnic minority areas, border areas, poor areas, and especially contiguous areas with acute difficulties.

（五）加大节能减排和生态环保工作力度，节能减排取得“十二五”以来最大进展。坚持把节能减排作为转方式、调结构重要抓手，政策累积效应进一步显现。

5. We stepped up efforts to conserve energy, reduce emissions, and protect ecosystems and the environment, making the most significant progress in this regard since the beginning of the Twelfth Five-Year Plan.

We continued to lay emphasis on energy conservation and emissions reduction as priority initiatives in changing the growth model and making structural adjustments. Our policies in this regard began to yield greater cumulative effects.

一是节能减排成效显著。实行能耗强度和总量“双控”，非化石能源占一次能源消费比重上升到11.2%，提高1.1个百分点，单位国内生产总值能耗和单位国内生产总值二氧化碳排放量分别下降4.8%和6.2%，二氧化硫、化学需氧量、氨氮、氮氧化物排放量分别下降3.4%、2.47%、2.9%和6.7%。“十二五”节能减排指标完成情况赶上时间进度。

1) Remarkable results were achieved in energy conservation and emissions reduction.

We reduced energy intensity and controlled the increase in total energy consumption. The share of non-fossil fuels in primary energy consumption reached 11.2%, up 1.1 percentage points over the previous year; energy consumption and carbon dioxide emissions per unit of GDP dropped by 4.8% and 6.2% respectively; and emissions of sulfur dioxide, chemical oxygen demand, ammonia nitrogen, and nitrogen oxides declined by 3.4%, 2.47%, 2.9%, and 6.7%, respectively. Efforts to meet the energy conservation and emissions reduction targets of the Twelfth Five-Year Plan made progress on schedule.

二是生态环保取得积极进展。大气、水、土壤污染防治迈出新步伐，重点流域污染治理、非电行业脱硝示范、京津冀及周边地区大气污染治理等重大工程积极推进，区域联防联控机制日益完善。机动车污染综合防治加快推进。城市污水处理率和城市生活垃圾无害化处理率分别达到90.15%和90.3%。万元工业增加值用水量63.5立方米，下降5.6%。湿地、森林、草原、生物多样性丰富区域等重要生态系统的保护修复力度加大，退耕还林、退牧还草、天然林资源保护、重点防护林体系等生态建设继续展开，完成造林面积602.7万公顷。

2) Good progress was made in ecological and environmental protection.

We made new strides in preventing and controlling air, water, and soil pollution. We vigorously carried out a series of major projects aimed at controlling pollution in key drainage basins, demonstrating the application of denitrification technologies in facilities other than power plants, and controlling air pollution in the Beijing-Tianjin-Hebei region and adjacent areas; and further improved mechanisms for regional coordination of pollution prevention and control. We accelerated the comprehensive prevention and control of pollution from motor vehicles. The percentages of urban sewage treated and household waste safely disposed reached 90.15% and 90.3% respectively. Water consumption per 10,000 yuan of value-added by industry totaled 63.5 cubic meters, dropping by 5.6%. We made enhanced efforts to protect and restore major ecosystems such as wetlands, forests, grasslands, and areas of biological diversity and richness; and continued to carry out ecological projects to convert marginal farmland back to forest, turn grazing land back into grassland, protect virgin forests, and build key forest shelterbelts. A total of 6.027 million hectares of land were afforested.

三是应对气候变化工作深入开展。国家应对气候变化规划（2014－2020年）出台，中美气候变化联合声明发布，提出了我国二氧化碳排放2030年左右达到峰值、非化石能源占一次能源消费比重2030年达到20%左右的目标。低碳省区和城市、低碳工业园区试点深入开展，全国碳排放权交易市场建设稳步推进。

3) Further progress was made in responding to climate change.

We promulgated the National Plan for Responding to Climate Change (2014-2020), and issued the China-U.S. Joint Announcement on Climate Change, stating that China aims to achieve the peaking of carbon dioxide emissions around 2030 and to increase the share of non-fossil fuels in primary energy consumption to around 20% by 2030. We intensively carried out pilot projects to encourage low-carbon growth in provinces, regions, cities, and industrial parks; and made steady progress in developing a market for the trading of carbon emission rights.

（六）切实保障和改善民生，维护社会和谐稳定。注重保基本、兜底线、建机制，在财政支出压力大的情况下，坚持尽力而为，持续加大民生领域投入。

6. We safeguarded and improved people’s wellbeing and ensured social harmony and stability.

We focused our energies on meeting basic needs, helping those in the greatest difficulty, and improving institutional building related to people’s wellbeing. We remained committed to doing everything in our power to increase funding for areas related to people’s wellbeing, despite facing serious budgetary constraints.

一是居民收入继续增加。收入分配制度改革继续深化，多渠道促进农民增收，企业退休人员基本养老金水平连续10年提高，增收措施与就业政策形成了惠民合力。全国居民人均可支配收入实际增长8%，其中农村居民人均可支配收入实际增长9.2%，城镇居民人均可支配收入实际增长6.8%。城乡居民收入比13年来首次降至3倍以下。

1) Incomes continued to rise.

We deepened the reform of the income distribution system; promoted the growth of rural incomes through multiple channels; raised basic pension benefits for enterprise retirees for the tenth consecutive year; and built up synergy between measures to boost incomes and employment policies, to the benefit of the general public. Nationwide per capita disposable income increased by 8% in real terms. Rural per capita disposable income rose by 9.2% and urban per capita disposable income by 6.8%, both in real terms. The ratio of urban disposable income to rural net income per capita dropped to less than 3:1 for the first time in 13 years.

二是社会保障安全网越织越密。各类社会保障覆盖面进一步扩大，参加城镇基本养老保险人数、新型农村社会养老保险人数分别达到3.66亿人、4.77亿人。实施统一的城乡居民基本养老保险制度，提高基础养老金标准，使1.43亿老人受益。职工医保、城镇居民医保和新农合三项基本医保参保率稳定在95%以上。全力开展鲁甸、景谷地震等重大自然灾害抢险救援，灾后恢复重建有序推进。

2) The social safety net continued to branch out.

Social security coverage was comprehensively expanded. A total of 366 million urban residents have been brought under the coverage of the basic old-age insurance; and 477 million rural residents have been covered by the new type of rural old-age insurance. We implemented a unified basic old-age insurance system for rural and nonworking urban residents, and raised the level of basic pension benefits provided under the system, benefiting 143 million elderly people. The rates of participation in the basic medical insurance systems for working and nonworking urban residents and the new rural cooperative medical care system all stood above 95%. We did our utmost to provide post-disaster relief and assistance to Ludian and Jinggu, which both were hit by earthquakes, and to other areas hit by major natural disasters. Post-disaster recovery and reconstruction efforts progressed in an orderly fashion.

三是保障性安居工程建设扎实推进。中央预算内投资、企业债券融资和信贷资金对棚户区改造等保障性安居工程住房建设的支持力度加大。基本建成城镇保障性安居工程住房511万套，新开工740万套。

3) Solid progress was made in the construction of government-subsidized housing.

Making use of central government expenditure, corporate debt financing, and credit funds, we provided additional support to government-subsidized housing projects such as the rebuilding of run-down areas. Construction on 5.11 million government-subsidized housing units was essentially completed, and construction on an additional 7.4 million units commenced.

四是各项社会事业全面进步。贫困地区薄弱学校基本办学条件继续改善，九年义务教育巩固率、高中阶段教育毛入学率预计分别达到92.6%和86.5%，农村学生上重点高校比例继续提高。公共卫生服务体系建设进一步加强，住院医师规范化培训制度开始建立。“单独两孩”政策普遍实施。公共文化服务体系建设进一步加快，广播电视“盲村”覆盖任务基本完成。国内旅游人数36.1亿人次，增长10.7%，出境旅游首次突破1亿人次。健康与养老服务重大工程启动实施，每千名老人拥有养老床位数达26张。体育产业、体育消费加快发展，新增体育场地6.7万个。残疾人康复和托养服务体系继续加强，专为残疾人服务设施数预计达到3867个。

4) Progress in social programs was registered across the board.

We continued to improve the basic conditions of badly built and poorly operated schools providing compulsory education in poor areas. Projections put the retention rate of nine-year compulsory education at 92.6% and the gross enrollment ratio for senior secondary education at 86.5%. The proportion of rural students admitted to key colleges and universities continued to increase. We further improved the public health system and began to install a standardized training system for resident physicians. A policy of allowing couples to have two children if either parent is an only child was implemented throughout the country. We accelerated the development of public cultural services and basically completed the initiative to extend radio and television coverage to every village in the country. The total number of domestic tourist trips made last year reached 3.61 billion, up 10.7% over the previous year. Outbound trips exceeded 100 million for the very first time. We launched major projects in fitness and elderly care, and increased the number of nursing home beds to 26 per 1,000 elderly people. The sports industry and sports consumption developed at an accelerated rate, with 67,000 new sports venues being built. We continued to improve recovery and care services for the disabled. The number of service facilities for the disabled is estimated to have reached 3,867.

从计划指标运行情况看，经济增长、价格总水平、国际收支平衡、就业等总量指标保持在合理区间，一些反映经济结构和质量的指标进一步改善，社会发展和民生保障类指标继续向好，资源节约利用和环境保护类指标完成情况较好，计划指标的完成情况总体是好的。

In view of the performance of the targets projected in the plan, overall targets for the national economy, such as the economic growth rate, the consumer price index, the balance of payments, and employment levels, remained within the proper range; some targets that reflect economic structure and quality were further improved; targets concerning social development and people’s wellbeing kept a positive momentum; and targets concerning resource conservation and environmental protection were implemented satisfactorily. Overall, the planned targets were well met.

17个约束性指标全部完成计划目标。其中，新增建设用地和新增建设占用农用地2个指标预计值超过年初确定的计划目标，主要原因：一是云南鲁甸震后恢复重建过程中，依法先行使用部分新增建设用地，这部分土地将按规定补办相关手续。二是在开展城乡建设用地增减挂钩、工矿废弃地复垦利用等工作过程中，先行使用部分新增建设用地建设农民安置房，进行土地复垦后再实现建设用地的占补平衡。

The 17 obligatory targets have all been achieved as planned. Among them, the target for rural land newly designated for construction and the target for land newly designated for construction as a whole are estimated to exceed the figures set at the beginning of the year. The main reasons for this are twofold:

First, during the post-earthquake efforts of recovery and reconstruction in Ludian, Yunnan, a portion of the land newly designated for construction was utilized in advance in accordance with the law, so the proper procedures for this land use will be made up for in accordance with regulations.

Second, in projects to link the amount of urban and rural land designated for construction to that of land returned to cultivation and in the efforts to reclaim land from deserted industrial and mining areas, part of the quota for land newly designated for construction was used to build housing for displaced rural residents. After reclamation of the abovementioned deserted areas is completed, that land will be used to offset the part of land newly designated for construction that was requisitioned for rural residents.

40个预期性指标运行情况总体符合或好于预期，但部分指标运行值与预期值存在差距。需要说明的是，预期性指标的计划目标不是预测值，而是国家期望的发展目标，体现政策导向，实际运行结果可能高于预期目标，也可能低于预期目标。部分指标运行值与预期目标存在差距，有多种情况。一是一些指标本身带有限高性质，实际运行结果适当低于预期目标也是正常的，比如居民消费价格指数等指标。二是为体现宏观调控政策取向，有些指标会定得比预测值稍高一些，比如社会消费品零售总额增速等指标，实际运行结果与预期目标会有一定差距。三是一些指标低于预期有特殊因素，比如第三次经济普查后经济总量增加，使研究与试验发展经费支出与国内生产总值之比略低于预期目标。四是国内外经济环境变化等不可控因素影响，导致一些指标的实际值低于预期目标，比如由于国际大宗商品价格大幅下跌，导致以美元计价的进出口总额增速低于预期目标。

The overall performance of the 40 anticipatory targets was in line with or better than expectations, but some of them fell short of the planned figures. It should be noted that anticipatory targets are not predicted figures; they are development objectives that the country hopes to achieve and are a reflection of its policy orientation. The actual performance of these targets may be higher or lower than projected figures. There are many cases of discrepancies between the performance of targets and the figures projected.

First, some targets themselves are ceilings, so it is normal that actual performance of such targets may be lower than the targeted figures. An example of this is the target for the CPI.

Second, some targets are set a little higher than estimated figures in order to reflect the orientation of macro-control policies, with the growth rate of retail sales of consumer goods being one such target. The actual performance of these targets might vary a certain amount from targeted figures.

Third, some targets being lower than expected is due to unique factors. For instance, because the size of China’s economy increased after the third national economic census, the target for R&D spending as a percentage of GDP was slightly lower than projected figure.

Fourth, uncontrollable factors such as changes in the domestic or international economic environment may cause the actual figures of some targets to be lower than projected. An example of this is how the sharp drop in the prices of major commodities in the international market has caused the growth rate in the total volume of US dollar-denominated imports and exports to be slower than expected.

总之，在世界政治经济形势纷繁复杂、国内发展新问题新挑战持续显现的情况下，我国经济社会发展取得这样的成就来之不易。这是党中央国务院正确领导的结果，是各地区各部门共同努力的结果，是全国各族人民团结奋斗的结果，值得充分肯定、倍加珍惜。

In short, in the face of complex international political and economic situations and an increasing number of new problems and new challenges in China’s development, the achievements that China has made thus far in economic and social development have not come easily. They are the result of the correct leadership of the Party Central Committee and the State Council, as well as the concerted efforts of all regions, all departments, and the people of all our ethnic groups, and should all the more be fully recognized and cherished.

同时，我们也清醒地认识到，世界政治、经济、地缘等各种因素相互交织，全球经济仍处在国际金融危机后的深度调整中，总体延续缓慢复苏态势。国内长期积累的不平衡不协调不可持续问题和“三期叠加”的影响依然存在，经济运行面临不少困难和挑战。一是经济下行压力还在加大。对稳增长具有关键作用的投资增速持续回落，消费需求难有大的提升，外需难有明显起色，新老增长点青黄不接。二是部分企业生产经营困难。工业生产者出厂价格持续下降，通缩预期上升，资金、劳动力等要素成本上涨，信贷资金向实体经济传导不畅，小微企业融资难融资贵问题仍未根本缓解，企业利润明显下滑，影响企业对未来市场的信心，对就业和居民收入的滞后影响不容忽视。三是传统产业产能过剩且新兴领域有效供给不足。化解产能过剩任务艰巨，去产能化过程中社会压力增大。新兴产业和现代服务业领域准入限制较多，一些需求较旺的领域国内有效供给能力明显不足。四是改革攻坚消除隐形壁垒、突破利益藩篱的难度加大。改革已经进入攻坚期、深水区，深化改革涉及的矛盾、触及的利益更加复杂。有的改革方案质量有待提高，部分改革举措落地情况不尽如人意。五是一些领域潜在风险需要高度关注。房地产市场调整面临较大不确定性，市场呈现分化态势，一些企业出现信用违约，银行不良贷款增加，经济风险逐渐暴露。此外，农业、外贸、社会、民生、生态环保、安全生产等领域也出现一些新的问题。面对这些矛盾和问题，我们一定保持清醒头脑，增强危机意识和底线思维，认真应对，努力解决。

At the same time, we should also be keenly aware that world politics, the economy, and geopolitics are closely intertwined; the global economy is still under profound adjustment following the international financial crisis, and overall, it continues to recover slowly.

Domestically, the long-standing problems of unbalanced, uncoordinated, and unsustainable development remain unresolved; in its current stage of development, China has to simultaneously deal with the slowdown in economic growth, make difficult structural adjustments, and absorb the effects of previous economic stimulus policies; and there are many difficulties and challenges facing the economy.

First, downward pressure on economic growth is building up. Growth in investment, which plays a key role in ensuring economic growth, has continued to slow back down; consumer demand is having a difficult time making significant increases; foreign demand is unlikely to change for the better; and new growth areas in consumer spending have not yet been able to fill the gaps left by old ones.

Second, some enterprises are having difficulties in production and operations. The output producer price index (PPI) has continued to fall; the expectation of deflation is getting stronger; the cost of factors of production such as capital and labor is increasing; there are still problems in the flow of credit funds to the real economy; the problem of small and micro businesses obtaining financing only at great effort and high cost has not been fundamentally alleviated; and enterprise profits have dropped markedly, affecting their confidence in the near-future market and producing a non-trivial ripple effect on employment and people’s income.

Third, there is overcapacity in traditional industries and a lack of effective supply in emerging industries. Resolving the problem of overcapacity is an arduous task that will increase pressure on society. There are too many restrictions upon entering into emerging industries and modern services, and there is a clear lack of effective supply of some goods or services for which there is a huge demand in the domestic market.

Fourth, it is becoming more difficult to remove hidden barriers and break vested interests when tackling the hard problems in reform. As China’s reform is at a critical stage and in a deep-water zone, deepening reform will involve more complicated conflicts and affect more deep-rooted interests. Some reform plans need further improvement, and the implementation of some reform measures is far from satisfactory.

Fifth, potential risks in some areas need our close attention. Adjustments to the real estate market face major uncertainties; different trends have emerged in the market; credit defaults have appeared in some enterprises; the amount of bad debt reported by banks has increased; and economic risks are emerging.

In addition, new problems have also cropped up in agriculture, foreign trade, social work, people’s wellbeing, ecological progress, environmental protection, and workplace safety.

Faced with these issues, we must keep a clear head and become more aware of any possible crisis and the bottom line, then work hard to respond to and resolve them.