Full Text: Report on the work of the government (2)

We continued to put people first, sustaining increases to spending in areas that are important to improving standards of living. We have been working to build up a basic safety net, ensure there is a cushion in place for those most in need, and make relevant institutional arrangements. Despite a slowdown in the growth of government revenue and increased pressure on expenditures, more than 70% of last year's government budget was spent on ensuring standards of living.

We worked to strengthen employment and social security. We improved the policies to stimulate employment and initiated the scheme to help college students and graduates to start businesses, ensuring a steady increase in the employment of college graduates. We unified the basic pension systems for rural residents and non-working urban residents and increased basic pension benefits for enterprise retirees by a further 10%. Construction began on 7.4 million government-subsidized housing units, and 5.11 million such units were basically completed. We established a nationwide temporary-assistance system, increased subsistence allowances by 9.97% for urban residents and 14.1% for rural residents, and increased subsidies and living allowances by more than 20% for disabled military personnel, families of revolutionary martyrs, and old-age veterans.

We continued to make progress in securing fair access to education. We strengthened efforts to improve badly built and poorly operated schools providing compulsory education in poor areas, increased financial aid to students from poor families, and significantly increased the amount available per eligible student for national study assistance loans. The scheme to subsidize the waiving of tuition fees at schools providing secondary vocational education was extended to cover three years of study. Policies have been introduced to ensure that children can receive compulsory education at schools close to where they live without having to take entrance exams, and 28 provincial-level administrative areas began to allow children who live with their migrant worker parents to take the college entrance exam in their cities of residence. The number of students from poor rural areas who were newly enrolled in key colleges and universities increased by more than 10% for the second year running. Through hard work, government spending on education has come to reach over 4% of GDP.

We intensified efforts to reform and develop medical and health care. Trials of serious illness insurance for rural and non-working urban residents were extended to all provincial-level administrative areas, the framework of the system for providing assistance for emergency medical treatment was established, and over 95% of the whole population was covered by medical insurance. The comprehensive reform of community medical and healthcare centers was deepened, and the networks of medical and healthcare services for counties, townships, and villages have been steadily improved. The number of counties and county-level cities carrying out trial public hospital reforms reached over 1,300.

We worked actively to develop the cultural sector. Progress was made in developing major cultural initiatives designed to benefit the public. Great efforts were made to extend radio and television coverage not only to all villages but to all rural homes. Efforts were made to ensure the production of more high-quality literary and artistic works, and the modern culture market was improved. Popular fitness activities are flourishing nationwide, and the 2014 Summer Youth Olympic Games in Nanjing were a great success.

Fifth, we have been developing new forms of social governance, and promoting social harmony and stability.

We responded effectively to natural disasters and emergencies, worked to resolve social problems in a systematic way, and strengthened mechanisms to address problems at the source. These efforts have protected lives and ensured public order.

Last year, when strong earthquakes hit in areas including Ludian and Jinggu counties in Yunnan Province, we launched timely and efficient relief efforts and made smooth progress in post-earthquake recovery and reconstruction. We worked proactively to assist Africa in the fight against Ebola, and effectively prevented the virus from entering China. We intensified efforts to ensure workplace safety and achieved reductions in the number of total accidents, serious and major accidents, and accidents in key industries. Serious efforts were made to prevent food contamination, and on the whole the situation was kept stable in food and medicine safety.

In a major push to advance law-based government administration, the State Council submitted proposals to the Standing Committee of the National People's Congress (NPC) on enacting or revising 15 laws including the Food Safety Law, and formulated or revised 38 sets of administrative regulations including the Provisional Regulations on Enterprise Information Disclosure. We took thorough steps to increase transparency in government operations, and used multiple means to widely solicit comments from the public on major government decisions and policies. The third national economic census was completed. We reformed the system for handling public complaints made in the form of letters or visits. Legal aid was expanded to cover not only people living on subsistence allowances but also those on low incomes. We strengthened efforts in both urban and rural community building, and made direct registration a reality for four types of social organizations, including industry associations and chambers of commerce. We cracked down on crime, strengthened efforts in the comprehensive maintenance of law and order, and effectively safeguarded national security and public safety.

We have been strictly putting into practice the CPC Central Committee's eight-point decision on improving Party and government conduct and making persistent efforts to fight formalism, bureaucratism, hedonism, and extravagance. We have been rigorously implementing the State Council's three-point decision on curbing government spending, and have effectively controlled the construction of new government buildings, the staffing of government bodies and public institutions, and the spending on official overseas visits, official vehicles, and official hospitality. Administrative supervision and auditing oversight have been intensified; efforts have been stepped up to improve Party conduct, build a clean government, and fight corruption; and we have investigated and prosecuted violations of the law and discipline, bringing many offenders to justice.

We have taken strong steps to ensure the implementation of major policies and measures, carrying out inspections, introducing third-party evaluations and public appraisals, and establishing permanent mechanisms. These efforts have gone a long way in advancing all of our work.

Over the past year, Chinese diplomacy has been fruitful. President Xi Jinping and other state leaders visited many countries and attended major international events, including the G20 Leaders Summit, the BRICS Leaders Meeting, the Shanghai Cooperation Organization Summit, the East Asian leaders' meetings on cooperation, the Asia-Europe Meeting, the Annual Meeting of the New Champions 2014 in Tianjin, and the World Economic Forum annual meeting 2015 in Davos, Switzerland. China hosted the 22nd APEC Economic Leaders Meeting, the Fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia, and the Boao Forum for Asia.

China has been participating actively in establishing multilateral mechanisms and writing international rules. We have made steady progress in developing relations with other major countries, entered a new phase in neighborhood diplomacy, and made new headway in our cooperation with other developing countries. Notable progress has been made in conducting economic diplomacy.

Progress has been made in pursuing the Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives; preparations have been made for establishing the Asian Infrastructure Investment Bank, and the Silk Road Fund has been set up.

China is engaging in more exchanges and cooperation with other countries, and is increasingly recognized as a major responsible country on the international stage.

Fellow Deputies,

We owe the achievements of the past year to the overall planning and sound policymaking of the Party Central Committee with Comrade Xi Jinping as General Secretary and to the concerted and unremitting efforts of all members of the Party and the armed forces, and all of China's people.

On behalf of the State Council, I wish to express our sincere gratitude to the people of all our ethnic groups, and to the non-CPC parties, people's organizations, and people from all sectors of society. We would like to express our heartfelt appreciation to our compatriots in the Hong Kong and Macao special administrative regions and in Taiwan, and to Chinese nationals overseas. We also wish to express true gratitude to the governments, international organizations, and friends from all over the world who show understanding for and support China in its endeavor to modernize.

While recognizing our achievements, we must also be mindful of the difficulties and challenges on the road ahead:

--Growth in investment is sluggish; the number of new areas of strong consumer activity is limited; there is no sign the international market is about to significantly pick up; maintaining stable growth is becoming more difficult, and there are still latent risks in some areas.

--The prices of manufactured products are continuing to fall; the costs of factors of production are on the rise; small and micro businesses are finding it difficult and costly to obtain financing; and the going is tough for some enterprises.

--China's economic growth model remains inefficient; our capacity for innovation is insufficient; overcapacity is a pronounced problem, and the foundation of agriculture is weak.

--There are still many problems of public concern in medical services, elderly care, housing, transport, education, income distribution, food safety, and law and order. Environmental pollution is serious in some localities, and major accidents in the workplace are not uncommon.

--There is still much to be improved in the work of the government, with some policies and measures not being satisfactorily implemented. A small number of government employees behave irresponsibly; shocking cases of corruption still exist; and some government officials are neglectful of their duties, holding onto their jobs while failing to fulfill their responsibilities.

We must face these problems head on. In times of peace one must be alert to danger, and in times of stability one must be mindful of the potential for chaos. We must be ready to bear the weight of responsibility, do justice to our historic mission, and live up to the great trust the people place in us.

II. The Plan for Work in 2015

China is the largest developing country in the world; it is still in the primary stage of socialism, where it will remain for a long time to come. At this stage, development is of primary importance to China; it is both the basis for and the key to solving every problem we face. In order to defuse problems and risks, avoid falling into the "middle-income trap," and achieve modernization, China must rely on development, and development requires an appropriate growth rate.

At the same time, China's economic development has entered a new normal. Our country is in a crucial period during which challenges need to be overcome and problems need to be resolved. Systemic, institutional, and structural problems have become "tigers in the road" holding up development. Without deepening reform and making economic structural adjustments, we will have a difficult time sustaining steady and sound development.

We must be adamant in pursuing economic development as our central task and make a thorough job of development as the top priority for ensuring the governance and revitalization of the country. We must continue to promote development in a sound and balanced way through reform and speed up the transformation of the growth model so as to achieve quality, efficient, and sustainable development.

At present, the world economy is undergoing profound adjustment, its recovery lacks drive, the influence of geopolitics is increasing, and there are a greater number of uncertainties at play. Promoting growth, creating jobs, and making structural adjustments have become common goals for the international community. With downward pressure on China's economy building and deep-seated problems in development surfacing, the difficulties we are to encounter in the year ahead may be even more formidable than those of last year.