It was not at all easy for our country to make all these achievements against the backdrop of the severe impact of the global financial crisis and the negative growth of the world economy. They were the result of the overall planning and correct leadership of the Party Central Committee with Comrade Hu Jintao as General Secretary as well as the concerted and strenuous efforts of the whole Party, the entire army, and the people of all of our ethnic groups. On behalf of the State Council, I hereby express our sincere gratitude to the people of all of our ethnic groups and to the democratic parties, mass organizations, and people from all sectors of society. I also express our sincere thanks to our compatriots in the Hong Kong and Macao special administrative regions, in Taiwan, and overseas, as well as to foreign governments, international organizations, and friends in other countries that take an interest in and support China's modernization.
In the course of the past year, as we conscientiously applied the Scientific Outlook on Development, vigorously responded to the global financial crisis and completed all of our government work, we came to the following conclusions: We must continue to make use of both market mechanisms and macro-control, that is, at the same time as we keep our reforms oriented toward a market economy, let market forces play their basic role in allocating resources, and stimulate the market's vitality, we must make best use of the socialist system's advantages, which enable us to make decisions efficiently, organize effectively, and concentrate resources to accomplish large undertakings. We must balance long- and short-term interests, take into account long- and short-term needs, and address both the symptoms and root causes of problems. We must overcome short-term difficulties and solve major problems as well as strengthen key areas and weak links in order to lay a foundation for long-term development. We must continue to consider domestic and international situations, make it a long-term strategic policy to boost domestic demand, adhere to the win-win strategy of opening up, and quickly formulate a pattern in which domestic demand and foreign demand drive economic growth in concert. We must always remember that developing the economy is inseparable from improving people's wellbeing and safeguarding social fairness and justice; make improving people's wellbeing the focus of development, and the starting point, goal, and lasting driving force of economic development; strive to safeguard fairness and justice; ensure that all of the people share in the fruits of reform and development; and promote social harmony and stability. We must give free rein to the initiative of both the central and local authorities. While stressing unity of thinking and keeping overall interests in mind, we also need to encourage everyone to proceed in light of local conditions and make explorations and innovations, in order to form a powerful, concerted force for overcoming present difficulties. All of these experiences are of vital and profound significance for keeping to the path of socialism with Chinese characteristics, improving our ability to run the socialist market economy, and pushing ahead the process of modernization.
II. Main Tasks for 2010
This is a crucial year for continuing to deal with the global financial crisis, maintaining steady and rapid economic development, and accelerating the transformation of the pattern of economic development. It is also an important year for achieving all the targets of the Eleventh Five-Year Plan and laying a solid foundation for development on the basis of the Twelfth Five-Year Plan.
Although this year's development environment may be better than last year's, we still face a very complex situation. Some positive changes and negative influences are growing while others are diminishing. Short-term and long-term problems are interwoven, domestic and international factors mutually affect each other, and the dilemmas facing economic and social development are increasing. Internationally, the global economy will hopefully turn around. International financial markets are stabilizing, and the overall trend toward increased economic globalization has not changed. Considerable changes and adjustments in the world economic structure will bring new development opportunities. At the same time, many destabilizing factors and uncertainties remain in our external environment. The foundation for global economic recovery remains weak; financial risks have not been completely eliminated; individual countries face difficult choices in phasing out their stimulus policies; larger fluctuations may occur in the prices of major commodities and exchange rates among the major currencies; trade protectionism is clearly reasserting itself; and global problems such as climate change, food security and energy and resource supplies remain complex. Domestically, our country is still in an important period of strategic opportunities. The foundation for economic turnaround is becoming stronger, market confidence has increased, the policy we adopted to boost domestic demand and improve people's wellbeing continues to show results, and enterprises are constantly becoming more competitive and better able to adapt to market changes. Nevertheless, there are still some serious problems affecting economic and social development. There is insufficient internal impetus driving economic growth; our independent innovation capability is not strong; there is still considerable excess production capacity in some industries and it is becoming more difficult to restructure them; while the pressure on employment is constantly growing overall, there is a structural shortage of labor; the foundation for keeping agricultural production and farmers' incomes growing steadily is weak; latent risks in the banking and public finance sectors are increasing; and major problems in the areas of healthcare, education, housing, income distribution and public administration urgently require solutions. We must make a comprehensive and correct judgment of the situation, and we must not interpret the economic turnaround as a fundamental improvement in the economic situation. We need to strengthen our awareness of potential dangers, make full use of favorable conditions and positive factors, strive to resolve problems, make even more thorough preparations to deal with risks and challenges of all kinds, and firmly keep the initiative in our work.