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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 arid 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.