Esteemed Deputies,

We owe all the achievements made over the past year to the sound leadership of the Party Central Committee with Comrade Xi Jinping at its core and the concerted efforts of the Party, the military, and the people of all our nation's ethnic groups. On behalf of the State Council, I wish to express our sincere gratitude to all our people, including public figures from all sectors of society, and to other parties and people's organizations. I express our sincere appreciation to our fellow countrymen and women in the Hong Kong and Macao special administrative regions and in Taiwan, and to Chinese nationals overseas. I also wish to express our heartfelt thanks to the governments of other countries, international organizations, and friends from all over the world who have shown understanding and support for China in its endeavor to modernize.

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 coal mining, 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.

We must confront these challenges head-on, be ready to bear the weight of responsibility, and do our all to deliver. We must fulfill our historic mission and live up to the great trust placed in us by the Chinese people.

Esteemed Deputies,

I now wish to discuss with you what the government will do in 2017.

This year, the Communist Party of China will hold its 19th National Congress, so it will be a year of great significance for advancing the cause of the Party and our country. To deliver in our work this year, the government will do the following:

-- Follow the leadership of the Party Central Committee with Comrade Xi Jinping at its core

-- Hold high the banner of socialism with Chinese characteristics

-- Implement fully the guidelines from the 18th National Party Congress and those of the third through sixth plenary sessions of the 18th Party Central Committee

-- Take as our guide Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific Outlook on Development

-- Put into practice the principles from General Secretary Xi Jinping's major addresses and his new vision, thinking, and strategies for China's governance

-- Promote balanced economic, political, cultural, social, and ecological progress and coordinated implementation of the Four-Pronged Comprehensive Strategy (1)

-- Remain committed to the underlying principle of making progress while keeping performance stable

-- Gain a strong understanding of and put into practice the new development philosophy

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

-- Give central importance to improving the quality and returns of development

-- Ensure that macro-level policy is consistent, industrial policy is targeted, micro-level policy injects dynamism into the market, reform policy delivers outcomes, and social policy sees basic living needs are met

-- Focus on supply-side structural reform

-- Expand aggregate demand as appropriate

-- Do better in guiding expectations

-- Strengthen the role of innovation in driving development

-- Maintain stable growth, 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

These efforts should enable us to pave the way for the 19th National Party Congress with outstanding achievements.

The developments both in and outside of China require that we are ready to face more complicated and graver situations. World economic growth remains sluggish, and both the deglobalization trend and protectionism are growing. There are many uncertainties about the direction of the major economies' policies and their spillover effects, and the factors that could cause instability and uncertainty are visibly increasing. China is at a crucial and challenging stage in its own development endeavors, and there are many salient challenges and problems in the economy.

The difficulties we face are not to be underestimated, but we must remain confident that they will be overcome. China has a solid material foundation, abundant human resources, a huge market, and a complete system of industries. It is making faster scientific and technological progress, and has a complete range of infrastructure. We have good conditions for sustaining economic development, and many innovative tools and policy options for conducting macroeconomic regulation. We should follow the leadership of the Party, uphold the Party's fundamental political guidelines, and keep to the path of socialism with Chinese characteristics; we should rely on the inexhaustible creativity of the people, unite as one, and forge ahead. It is our firm belief that by doing this, we will make great new achievements in China's development.

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

The projected target for this year's growth is realistic and in keeping with economic principles; it will help steer and steady expectations and make structural adjustments; and it will help achieve the goal of finishing the building of a moderately prosperous society in all respects.

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.

Note: (1) This refers to making 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.