The requirements for 2017 are as follows:

-- uphold the leadership of the CPC Central Committee with Comrade Xi Jinping at its core

-- hold high the great banner of socialism with Chinese characteristics

-- fully implement the guidelines from the 18th National Party Congress and from the third, fourth, fifth, and sixth plenary sessions of the 18th Party Central Committee

-- follow the guidance of Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific Outlook on Development

-- put into practice the guiding principles from General Secretary Xi Jinping's major addresses and his new concepts, thoughts, and strategies on the governance of China

-- promote coordinated economic, political, cultural, social,and ecological progress and balanced implementation of the Four-Pronged Comprehensive Strategy*

-- seek progress while keeping performance stable

-- build a strong understanding of and put into practice China's new development philosophy

-- adapt to, approach in the right way, and steer the new normal in economic development

-- take strengthening the quality and benefits of development as a core priority

-- ensure macro policies are stable, industrial policies are targeted, micro policies are flexible, reform policies are practical, and that social policies ensure basic needs are met

-- focus on supply-side structural reform

-- expand aggregate demand as appropriate

-- better guide expectations

-- ensure development is increasingly innovation-driven

-- work to keep growth stable, promote reform, make structural adjustments, improve living standards, and guard against risks

-- maintain stable and sound economic development as well as social harmony and stability

Fulfilling these requirements should ensure that we greet the 19th National Party Congress with outstanding achievements.

* To make comprehensive moves to finish building a moderately prosperous society in all respects, deepen reform, advance the law-based governance of China, and strengthen Party self-governance.

-- Economic growth within an appropriate range

GDP is projected to grow by 6.5% approximately; however in practice, we will strive for better. In setting this objective, we have taken the following into account:

First, the projected GDP growth rate is in keeping with conditions in China. Our country is in a new normal in economic development, having shifted from a high to a medium-high growth rate. In 2016 China's aggregate economic output exceeded 74 trillion yuan; and this year's projected growth rate of around 6.5% will result in a larger increase in economic output than last year's increase resulting from a 6.7% growth rate. Moreover, a growth rate of 6.5% is much higher than most major economies.

Second, the projected growth rate is in line with the goal of finishing building a moderately prosperous society in all respects. China's economy grew by 6.7% in 2016, so an average growth rate of around 6.5% over the next four years would be sufficient to accomplish the objective set out in the 13th Five-Year Plan to ensure that China's GDP in 2020 is double what it was in 2010.

Third, a 6.5% growth rate is needed to achieve the employment objective. All efforts to keep the economy growing at an appropriate rate and to promote economic development are for nothing more than to address the problems which are of most concern to the public.

Fourth, this rate of growth is conducive to fostering healthy public expectations. Facing complex and volatile situations at home and abroad in 2017, we need to provide guidance to all sectors of society so as to focus efforts on improving the quality and benefits of development and promoting structural improvement and upgrading, ensure a proactive response to the impact arising from various uncertainties, and create a favorable environment for supply-side structural reform.

圖表9：國內生產總值和經濟增長率 新華社發

-- Overall stable employment

Over 11 million new urban jobs will be created, 1 million more than the projection for 2016, and the registered urban unemployment rate should stay within 4.5%. In setting these objectives, we have taken the following into account:

First, employment pressure is mounting. About 15 million new workers will enter the job market in 2017, and there will also be a slightly larger number of laid-off workers that need to be reemployed in other industries due to the scaling-down of overcapacity; on the other hand, we will see jobs opening up in urban areas as a result of retirements. Taking these factors into consideration, we need to create around 11 million new urban jobs this year.

Second, employment capacity continues to increase. Due to adjustments in the structure of industry, particularly in terms of entrepreneurship and innovation and the development of the service sector, China's employment elasticity has risen considerably. A growth rate of around 6.5% should ensure that we fulfill our employment target and will allow us to work toward exceeding it.

Third, we need to ensure increases in personal income are basically in step with economic growth. These objectives are a reflection of the Party and government's vision of people-centered development as well as the governance principle that the people's wellbeing comes first and ensuring employment is a top priority. They are also conducive to ensuring stable public expectations and strengthening people's confidence in development.

-- Overall stable prices

The CPI is projected to increase by around 3%. In setting this objective, we have taken the following into account:

First, the carryover effect from the CPI increase in 2016 will be 0.6%, which is basically the same as that of the year before.

Second, the producer price index (PPI) shifted from negative to positive territory in September 2016 and has remained there ever since, and the deflationary pressure on manufacturing has eased to some extent. However, as the effects of the PPI increase are transmitted to downstream industries and toward end consumption, and as the prices of imported goods and international commodity prices rise, new factors will emerge to push up prices.

Third, such a CPI increase leaves us with room to undertake price reform.

-- A basic balance in international payments

We will continue to promote a steady rise in the trade of goods, rapid growth in the trade of services, stability in the use of foreign investment, and the healthy development of outbound investment. In setting these objectives, we have taken the following into account:

First, a turnaround in global economic and trade growth is unlikely in the short term. However, as the policy for promoting steady growth and structural adjustment in foreign trade continues to have an effect, the volume of trade in goods is expected to pick up again.

Second, as the export of high-value-added services such as telecommunications, computers, and information continues to increase rapidly, the structure of trade in services will improve.

Third, significant efforts will be made to create a fair, transparent, and predictable law-based market environment so as to ensure foreign investment remains stable and improves in quality.

Fourth, outbound investment will be robust. In order to avoid irrational investment which may give rise to operational or debt risks, growth in this area should be promoted in an orderly and prudent manner.

-- Improved quality and benefits in development

The contribution of consumption to economic growth will increase. The foundation of agriculture will be further strengthened; solid progress will be made in cutting overcapacity; the development of emerging strategic industries will be accelerated; and increases in the contribution of the value-added of the service sector to GDP will be sustained. More will be spent on research and development and there will be an increase in the contribution of scientific and technological progress to economic growth. Energy consumption per unit of GDP will be reduced by at least 3.4%, carbon dioxide emissions per unit of GDP will be cut by 4.0%, reductions in the emissions of major pollutants will continue, and air and water quality will be further improved. In setting these objectives, we have taken the following into account:

We need to put into practice the philosophy of innovative, coordinated, green, open, and shared development; see that industries are transformed and upgraded, that their quality and performance improves, and that the quality of all products and services increases; and ensure that energy conservation, environmental protection, and ecological improvement efforts are strengthened. These objectives are in line with the efforts to advance supply-side structural reform, and can help to create new growth areas, increase the potential for economic growth, and ensure the economy maintains a medium-high growth rate and moves toward the medium-high end.

圖表10：三次產業占國內生產總值比重 新華社發

-- Improvements in living standards

The number of people living in poverty in rural areas will be reduced by at least 10 million, and 3.4 million people will be relocated from inhospitable areas so as to help them shake off poverty. The percentage of registered urban residents will increase by more than 1 percentage point. Urban residency will be granted to an additional 13 million people with rural household registration living in urban areas and other permanent urban residents. Access to basic public services such as education, health, and culture will become more equitable. The retention rate of compulsory education and the gross enrollment ratio for senior secondary education will continue to rise. The social security system will be further improved with more beneficiaries receiving coverage and an appropriate increase in benefits. Per capita government subsidies for basic medical insurance for rural and non-working urban residents will increase to 450 yuan, while the level of financing for the major disease insurance scheme will also be raised. The natural population growth rate will be about 7.5 thousandths. In setting these objectives, we have taken the following into account:

We must fully implement our vision of people-centered development and work for further progress in ensuring that the Chinese people enjoy the rights to education, employment, medical treatment, old-age care, and housing.

圖表11：城鎮居民、農村居民收入增長及城鄉居民收入比 新華社發

-- Addressing structural conflicts between supply and demand

With fiscal and monetary policies as main pillars, and with the support of investment, consumption, and trade policies, we will work to exert the role of supply-side structural reform policy.

-- Alleviating the difficulties in the real economy

We will take strong measures to cut taxes and fees, fully utilize central government investment to guide and attract investment from private sources; continue to promote reforms on SOEs, on pricing, and on streamlining administration, delegating more powers, improving regulation, and providing better services; and provide more targeted policy guidance.

-- Promoting coordinated and integrated development between regions

We will increase fiscal and financial policy support, implement differentiated regional policies, and ensure that employment and social security policies meet basic needs.

-- Solving problems related to agriculture, rural areas, and farmers

We will fully carry out supply-side structural reform in agriculture, improve agriculture-related subsidy, investment, credit, insurance, and land-use policies, and support technological innovation in agriculture.

-- Preventing investment from being diverted out of the real economy and controlling real estate fluctuations

By utilizing prudent monetary policy and targeted industrial and land policies, we will deepen financial reforms, strengthen market oversight, and prevent and defuse fiscal and financial risks.

-- Providing guidance to ensure positive public expectations

We will do more to explain government policies and to release information to the public and will further improve the property rights protection system.

In relation to specific work, we will focus on the following six areas so as to advance overall development.

First, carrying on institutional innovation to revitalize the market

We will deepen reform in major areas and key sectors, step up innovation in systems and mechanisms, increase institutional supply, take targeted steps to solve prominent conflicts and problems holding back economic and social development, improve the overall effectiveness of reform, and strive for further breakthroughs.

Second, revitalizing the real economy to provide better products

We will intensify efforts to cut overcapacity, reduce excess inventory, deleverage, lower costs, and strengthen areas of weakness; move faster to create new industrial policies and upgrade old ones, and improve the distribution of productive forces, in a bid to bring about a shift from a supply of predominantly medium-low end products to mainly supplying medium-high end ones that conform to changes in demand.

Third, advancing innovation-driven development to foster and strengthen new driving forces

We will fully implement the innovation-driven development strategy, improve policies in support of innovation, increase the supply of innovative resources, provide greater encouragement for business startups and innovations by the general public, promote the replacement of old drivers of development with new ones, and ensure total-factor productivity increases.

Fourth, increasing effective demand to keep the macro environment stable

As the upgrade in demand continues, we will work to increase the supply of quality goods and services and the efficiency of government investment, inject vigor into private investment and private capital, and work to create a balance between supply and demand and a healthy interaction between upgraded consumption and effective investment, so as to ensure development becomes better in quality, more efficient, more equitable, and more sustainable.

Fifth, effectively preventing and defusing risks in key sectors and regions

We will become more aware of potential dangers and keep in mind worst-case scenarios. With a focus on preventing financial risks, excessive corporate leverage, an accumulation of property bubbles, inflated local government debt, and financial difficulties among county and township governments as well as other risks, we will create new and better ways of dealing with risk and never allow the line to be crossed on these risks so as to safeguard social stability.

Sixth, improving people's lives to promote social harmony

Guided by the vision of people-centered development, we will work to solve the structural problems related to employment, use targeted measures to tackle poverty, provide better basic public services, speed up the development of social programs such as education, elderly care, health and family planning, culture, and sports, and take stronger, more effective measures to improve the environment so as to ensure our people have a greater sense of benefit and a higher level of happiness.