China's top legislative body opens annual session

Chinese Premier Li Keqiang delivers the government work report at the opening of the Fifth Session of the 12th National People's Congress in the Great Hall of the People in Beijing on Sunday, March 5, 2017. [Photo: Xinhua]

Chinese Premier Li Keqiang is delivering the government work report at the opening of the Fifth Session of the 12th National People's Congress in the Great Hall of the People in Beijing.

Highlights of the government work report:

What the government will do in 2017

Based on the above considerations, we have set the following key projected targets for development this year:

*GDP growth of around 6.5 percent, or higher if possible in practice

*CPI increase kept at around 3 percent

*Over 11 million new urban jobs, and a registered urban unemployment rate within 4.5 percent

*A steady rise in import and export volumes, and a basic balance in international payments

*Increases in personal income basically in step with economic growth

*A reduction of at least 3.4 percent in energy consumption per unit of GDP, and continued reductions in the release of major pollutants

Employment

An important reason for stressing the need to maintain stable growth is to ensure employment and improve people's lives. As employment pressure grows this year, we will continue to give top priority to creating jobs and implement a more proactive employment policy. This year's target for urban job creation is one million more than last year, underlining the greater importance we are attaching to employment. Considering our sound economic fundamentals and the capacity they bring for job creation, with hard work, this target is attainable.

We will continue to pursue a prudent and neutral monetary policy.

The M2 money supply and aggregate financing are forecasted to grow by around 12 percent in 2017. We will apply a full range of monetary policy instruments, maintain basic stability in liquidity, see that market interest rates remain at an appropriate level, and improve the transmission mechanism of monetary policy. We will encourage a greater flow of financial resources into the real economy, particularly in support of agriculture, rural areas, and farmers, and small and micro businesses. The RMB exchange rate will be further liberalized, and the currency’s stable position in the global monetary system will be maintained.

Take solid and effective steps to cut overcapacity

This year, we will further reduce steel production capacity by around 50 million metric tons and shut down at least 150 million metric tons of coal production facilities. At the same time, we will suspend or postpone construction on or eliminate no less than 50 million kilowatts of coal-fired power generation capacity, in order to guard against and defuse the risks of overcapacity in coal-fired power, improve the efficiency of this sector, and make room for clean energy to develop.

Take targeted policies to cut excess urban real estate inventory

At present, there is still excess supply in the real estate markets of third- and fourth-tier cities. We will support both local and new residents in buying homes for personal use.

We need to be clear that housing is for people to live in, and local governments should take primary responsibility in this respect. We should move faster to establish robust long-term mechanisms for promoting the steady and sound development of the real estate sector, with multiple levels of demand being met primarily by the market, and basic housing support provided by the government. We will take more category-based and targeted steps to regulate the real estate market. Cities that are under big pressure from rising housing prices need to increase as appropriate the supply of land for residential use, and we should better regulate housing development, marketing, and intermediary services.

Today several dozen million people still live in rundown areas in cities and towns. We must continue housing renovations in these areas. This year, we will renovate another 6 million housing units in these areas, continue to develop public rental housing, encourage according to local circumstances the greater use of monetary compensation for those affected by such rebuilding, and improve local infrastructure and public services. With these efforts, we will help more families struggling with housing to bid farewell to rundown areas, and see that with good roofs over their heads our people move on to better lives.

Take multiple measures to cut costs

More small businesses with low profits will enjoy halved corporate income tax, with the upper limit of taxable annual income raised from 300,000 to 500,000 yuan. For small and medium high-tech enterprises, the proportion of R&D expenses that are tax deductible is to be raised from 50 to 75 percent. We will do all we can to see the intensity and impact of structural tax cuts deliver further results. The great number of charges have placed an unbearable burden on many businesses; we are going to slash non-tax burdens.

Poverty reduction and elimination

Poor areas and people living in poverty represent the area of greatest weakness we must face as we work to finish building a moderately prosperous society in all respects. We need to do more in implementing targeted poverty reduction and elimination measures. This year we will further reduce the number of rural residents living in poverty by over 10 million, including 3.4 million to be relocated from inhospitable areas. Central government funding for poverty alleviation will be increased by over 30 percent.

We will take solid steps to pursue a new type of urbanization.

We sped up efforts to promote new types of urbanization in 2016, deepened reform of the household registration system, introduced the residence card system nationwide, and granted urban residency to another 16 million people from rural areas.

We will deepen the reform of the household registration system. This year, at least 13 million new urban residents will be registered as permanent urban residents. We will speed up work to introduce the urban residence card system nationwide. We will support the development of small and medium cities and small towns with distinctive local features. We will help a number of counties and very large towns that meet the criteria to steadily develop into cities, and we will make city clusters better play their role in driving the development of their surrounding areas.

Infrastructure

This year, we will invest 800 billion yuan in railway construction and 1.8 trillion yuan in highway and waterway projects. Construction on another 15 major water conservancy projects will begin; and work on major rail transport, civil aviation, and telecommunications infrastructure projects will be sped up. A total of 507.6 billion yuan of investment has been included in the central government budget this year.

We will step up the development of public facilities in rural areas.

A total of 200,000 kilometers of roads will be upgraded or built in rural areas. We will see that all rural areas have a steady and reliable supply of power and that all electric pumpsets on rural flatlands are connected. Fiber-optic broadband will be extended to 30,000 administrative villages.

Economic globalization

Economic globalization is in the fundamental interests of all countries. China will not shift in its commitment to promoting global economic cooperation, will uphold the multilateral trading regime as the main channel of international trade, and will play an active part in multilateral trade negotiations. China is ready to join hands with the other countries involved to fully put into force and implement the Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN, to conclude talks as soon as possible for the Regional Comprehensive Economic Partnership agreement, and to advance the development of the Free Trade Area of the Asia-Pacific. We will continue to negotiate investment and trade agreements with relevant countries and regions.

China is a responsible country. We have always striven to honor the commitments we have made, and we will firmly defend our due rights and interests.

national defense

Last year, we achieved major breakthroughs in the reform of national defense and the armed forces and made fresh progress and new achievements in our work to make the military more revolutionary, modern, and well-structured.

This year, in pursuing the Party’s goal of strengthening the armed forces in a new era, we will work to build them through political work, strengthen them through reform, and ensure they are run by law. We will boost military training and preparedness, so as to ensure that the sovereignty, security, and development interests of China are resolutely and effectively safeguarded. 

We will uphold the Party’s absolute leadership over the armed forces and uphold and implement the system whereby the Chairman of the Central Military Commission assumes overall responsibility over military affairs. 

We will continue to deepen reforms in national defense and the armed forces. We will strengthen maritime and air defense as well as border control and ensure that important operations related to countering terrorism, safeguarding stability, international peacekeeping, and providing escort in high seas are well organized.

We will enhance our capacity for innovation in defense-related science and technology and step up the development of advanced logistics and equipment. We will strengthen national defense mobilization and readiness of reserve forces. We will continue to promote coordinated, balanced, and compatible development of the economy and national defense, deepen structural reform of defense-related science and technology industries, and intensify military-civilian integration.

Hong Kong, Macao and Taiwan

We will continue to implement, both to the letter and in spirit, the principle of "one country, two systems," under which the people of Hong Kong govern Hong Kong, the people of Macao govern Macao, and both regions enjoy a high degree of autonomy. We will continue to act in strict compliance with China's Constitution and the basic laws of the Hong Kong and Macao special administrative regions; and we will ensure that the principle of "one country, two systems" is steadfastly applied in Hong Kong and Macao without being bent or distorted.

We pledge our full support to the chief executives and governments of the two regions in exercising law-based governance, growing their economies, improving people's wellbeing, advancing democracy, and promoting social harmony. The notion of Hong Kong independence will lead nowhere.

We will promote closer cooperation between the mainland and Hong Kong and Macao. We will draw up a plan for the development of a city cluster in the Guangdong-Hong Kong-Macao Greater Bay Area, give full play to the distinctive strengths of Hong Kong and Macao, and elevate their positions and roles in China's economic development and opening up. We have always had full confidence about ensuring lasting prosperity and stability in Hong Kong and Macao.

We will thoroughly implement the policies on our work related to Taiwan, uphold the one-China principle, and safeguard the 1992 Consensus as our common political foundation. We will protect China's sovereignty and territorial integrity, maintain the peaceful growth of cross-Straits relations, and safeguard peace and stability in the Taiwan Straits. We will resolutely oppose and contain separatist activities for Taiwan independence. We will never tolerate any activity, in any form or name, which attempts to separate Taiwan from the motherland.

We will continue to advance integrated economic and social development between the two sides of the Straits, and make it more convenient for our fellow countrymen and women in Taiwan, particularly young people, to study, work, and live on the mainland. People on both sides of the Taiwan Straits should keep in mind the greater interests of the nation, firmly advance peaceful reunification of China, and jointly create better lives and a bright future for all Chinese.

Review of work in 2016

The economy has registered a slower but stable performance with good momentum for growth.

GDP reached 74.4 trillion yuan, representing 6.7-percent growth, and seeing China outpace most other economies. China contributed more than 30 percent of global growth. 

A total of 13.14 million new urban jobs were added over the course of the year. The number of college graduates finding employment or starting businesses reached another record high. The registered urban unemployment rate stood at 4.02 percent at year-end 2016, the lowest level in years.

Infrastructure became ever-better able to sustain development.

Over 1,900 kilometers of new high-speed rail lines came into service, and more than 6,700 kilometers of expressways and 290,000 kilometers of rural roads were built or upgraded. Construction picked up pace on urban rail transit facilities and underground utility tunnels. Construction began on 21 major water conservancy projects. The number of 4G mobile communications subscribers grew by 340 million and over 5.5 million kilometers of optical fiber cables were added.

Personal per capita disposable income increased by 6.3 percent in real terms. The number of people living in poverty in rural areas was reduced by 12.4 million, including more than 2.4 million people relocated from inhospitable areas. More than 6 million homes in rundown urban areas and over 3.8 million dilapidated rural houses were renovated. In tourism, domestic trips showed rapid growth, and overseas trips exceeded 120 million. People in both urban and rural areas saw a rise in living standards.

achievements in diplomacy

China successfully hosted the G20 2016 Hangzhou Summit, and helped to deliver a number of important pioneering, leading, and institutional outcomes, thus doing its part for global economic governance.

As a major country, China has made outstanding achievements in its diplomacy with distinctive features over the past year. President Xi Jinping and other Chinese leaders visited many countries. They attended major international events, including the 24th APEC Economic Leaders Meeting, the Shanghai Cooperation Organization Summit, the BRICS Leaders Meeting, the Nuclear Security Summit, high-level meetings of the 71st session of the UN General Assembly, the Asia-Europe Meeting, and the East Asian leaders meetings on cooperation. We hosted the first-ever Lancang-Mekong Cooperation Leaders Meeting.

China's coordination and cooperation with other major countries were strengthened, its comprehensive cooperation with neighboring countries continued to be boosted, its friendship and cooperation with other developing countries were deepened, and its interactions with the UN and other international organizations became closer.

China was actively involved in reforming and improving the global governance system. We played our part in ensuring that the Paris Agreement was put into force. Economic diplomacy and personal and cultural exchanges yielded notable outcomes. We were resolute in upholding China’s sovereignty, territorial integrity, and maritime rights and interests. As a responsible major country, China has been playing a constructive role in international and regional issues and has made significant contributions to world peace and development.

problems and challenges

Yet we must not lose sight of the many problems and challenges China faces in pursuing economic and social development. The internal forces driving economic growth need to be strengthened. Overcapacity poses a serious challenge in some industries. Some enterprises face difficulties in their production and operations. Economic prospects for different regions are divergent. Fiscal imbalance is becoming great. And potential economic and financial risks cannot be overlooked.

Environmental pollution remains grave, and in particular, some areas are frequently hit by heavy smog. We need to further strengthen our steps to combat pollution. There are also many problems causing public concern in housing, education, healthcare, elderly care, food and drug safety, and income distribution. It is distressing that there were some major accidents in the coalmining, construction, and transportation sectors.

There is still room for improvement in government performance. Some reform policies and measures have not been fully implemented. Excess fees and charges being levied on businesses and difficulties facing individuals who want to access government services remain standout problems. We still see problems of laws and regulations being enforced in a non-standard, unfair, or uncivil way. A small number of government employees are lazy and neglectful of their duties or shirk responsibility. Corruption often occurs in some sectors.

The Fifth Session of the 12th National People's Congress (NPC), China's top legislative body, opens in the Great Hall of the People in Beijing on Sunday, March 5, 2017. [Photo: China Plus]

The 12th National People's Congress (NPC), China's top legislature, opened its fifth session Sunday morning.