Wen's speech at Summer Davos 2012 (full text)(2)

- We conserved resources and the environment to enhance capacity for sustainable development. To build a resource-saving and environment-friendly society was identified as an important strategy of national development. This was a major step China took in pursuing sustainable development in the past decade. We incorporated mandatory targets of energy conservation and emission reduction into the national economic and social development plan, scaled up financial input, accelerated the development of an industrial structure, mode of production and consumption pattern conducive to saving energy and resources and protecting the eco-environment, and made vigorous efforts to develop green economy and promote harmony between man and nature. As a result, China's energy consumption per unit of GDP and CO2 emissions both dropped significantly. The environment and air quality standards were revised this year and such new monitoring indicators as fine particulate matter (PM2.5) were added. Forest cover rose from 18.21% in 2003 to 20.36% in 2011. We released and implemented the national plan on climate change and played an active part in international response to climate change under the principle of "common but differentiated responsibilities."

- We balanced economic and social development to improve people's livelihood and promote social equity and justice. To put people's needs first was the most visible highlight in China's development in the past decade. We took improvement of people's lives as the starting point and ultimate goal of all our work, and made real efforts to make development fruits shared by all. We pursued a proactive employment policy. Over 100 million new urban jobs were created in the past ten years, including more than 10 million jobs annually for the past five consecutive years. We made free nine-year compulsory education fully available, established a complete financial aid system for students from poor families and fulfilled our solemn commitment of "not letting a single child drop out of school due to poverty." We made historic progress in building a social safety net covering both urban and rural populations. The new rural pension scheme and the old-age pension scheme for non-working urban residents achieved full coverage, and an urban and rural social aid system was basically established. The medical insurance system covering the entire population took initial shape. More than 1.3 billion urban and rural residents subscribed to the programs and the coverage of basic medical insurance programs topped 95%. We took active steps to adjust income distribution. Basic pension for enterprise retirees increased at an average annual rate of 10% for eight consecutive years. Minimum wage, threshold for personal income tax and the national poverty line were significantly raised. The per capita urban disposable income and per capita rural net income increased at an average annual rate of 9.2% and 8.1% respectively in real terms, making the past decade one of the fastest-growing periods in the history of New China. And, rural income grew faster than urban income in the past two years. We earnestly implemented the UN Millennium Development Goals. China became the only country in the world to meet the goal of cutting its poor population by half ahead of schedule. We scaled up input in building low-income housing and raised its coverage from less than 4% in 2008 to the current 11%.Hundreds of millions of Chinese families and the towns and villages where they live and work experienced tremendous changes in these past ten years, and there were numerous touching stories of Chinese people changing their lives and destinies through hard work and perseverance.

- We deepened reform and opening-up to boost the vitality and momentum of economic and social development. China's reform made continuous breakthroughs in the past decade. This has been the most distinctive feature of our time. We accelerated the building of institutions and mechanisms that are dynamic, efficient, open and conducive to scientific development. We improved the public finance system, placed all extra budgetary funds under budgetary management and made public budgets and final accounts. We unified the tax regimes for Chinese and foreign businesses, carried out a comprehensive VAT reform and speeded up the trial program of replacing business tax with VAT. We pushed forward the pricing and tax reform of refined oil products and launched a price-based reform of resource tax on crude oil and natural gas across the country. We deepened reform in the financial sector. The share-holding reform of large state-owns commercial banks and their listing on the stock market were completed, the problem of split-share structure in listed companies was smoothly resolved and the reform of RMB exchange rate forming mechanism and reform of making interest rates market-based moved forward steadily. Our financial system became much more competitive and resilient to risks, and played an essential role in countering the international financial crisis. We deepened comprehensive rural reform, completely rescinded agricultural taxes, pressed ahead with the reform of tenure in collective forests and launched registration for contracting pastureland in accordance with the law. We unwaveringly consolidated and developed the public sector of the economy, unswervingly encouraged, supported and guided the development of the non-public sector, and ensured equal protection of property rights. All economic sectors developed side by side and their competitiveness and overall strength markedly improved. The deepening of the reform process highly motivated the enthusiasm, initiative and creativity of the people and injected new vigor and vitality into our economic and social development. We pursued a win-win strategy of opening-up, fully met our commitments made upon WTO accession, and placed equal emphasis on exports and imports and on attracting foreign investment and investing overseas. This has not only helped us gain broader space for our development and economic growth, but also made important contribution to economic development in the region and the world.