Full Text: Report on the Work of the Government (11)

Source:Xinhua Published: 2013-3-18 17:58:37

We will continue to implement a prudent monetary policy. We will maintain a balance between boosting economic growth, keeping prices stable and guarding against financial risks.

First, we will improve the policy framework for exercising macro-control prudently and have monetary policy play the role of making counter-cyclic adjustments. The target for growth of the broad money supply (M2) is about 13%. We will employ a full range of monetary policy tools to control market liquidity, increase the money and credit supply at an appropriate pace, and expand the aggregate financing for the economy by an appropriate amount. We will improve the transmission mechanism for monetary policy, better coordinate financial oversight and monetary policy, and improve oversight standards and their implementation.

Second, we will better allocate financial resources. We will guide financial institutions to increase financial support for structural adjustments to the economy, especially for agriculture, rural areas and farmers, small and micro businesses, and strategic emerging industries, and satisfy funding needs for key national projects under construction or expansion. We will broaden financing channels for the real economy and reduce its financing costs. We will promote steady and healthy development of the capital market. Third, we will resolutely guard against systemic and regional financial risks. We will guide financial institutions to operate prudently, and we will tighten oversight over financial risks in certain sectors and regions and risks related to the off-balance sheet activities of financial institutions, and thus make the financial sector's support for economic development more sustainable.

 

III. Suggestions for the Work of the Government This Year

Based on an understanding of the work of the past ten years, especially of the past five years, I wish to make the following suggestions for the government's main work this year.

1. Accelerating the change of the growth model and promoting sustained and sound economic development

All the achievements we have made in China's socialist modernization are attributable to sustained and sound economic development, without which we would have accomplished nothing.

China is still in the primary stage of socialism and will remain so for a long time. This basic national condition has not changed; nor has the principal problem in our society, that is, production falls short of the ever-growing material and cultural needs of the people, or China's international position as the largest developing country in the world. Development is still the key to solving all our problems. We must keep economic development as the central task and give it our undivided attention.

As long as we make full use of this important period of strategic opportunities, respect the law of development, formulate new thinking on development, solve problems hindering development, accelerate the change of the growth model, spur change in the course of pursuing development, and promote development while working for change, we can certainly achieve sustained and sound economic development.

We should unswervingly take expanding domestic demand as our long-term strategy for economic development, and make full use of the basic function of consumption and the key role of investment. The difficulty in and key to expanding domestic demand lie in consumption, and that is also where the potential lies. To expand individual consumption, we should enhance people's ability to consume, keep their consumption expectations stable, boost their desire to consume, improve the consumption environment and make economic growth more consumption-driven.

In the current stage, the role investment plays in promoting economic growth cannot be underestimated. China has both investment capability and investment demand, but the key is to make investment in the needed sectors, optimize the structure of investment, and improve its performance and returns. Governmental investment is important in guiding nongovernmental investment, but its share of the country's total investment is decreasing, so we must further relax controls over market access for nongovernmental investment and stimulate it.

We should energetically change the growth model and speed up structural adjustment of industry. China's productive forces develop on multiple levels, which gives us plenty of room to maneuver. Industries, whether traditional or emerging, labor-intensive or capital-intensive, all have room for development. The important task is to optimize resources allocation and industrial distribution, and solve the following problems: excess production capacity, the lack of core technology, products with low value-added, low-level and redundant industrial projects, and different regions having similar industrial structures. We must accelerate the transformation and upgrading of traditional industries, energetically develop new- and high-tech industries, and raise product quality and competitiveness. (more)

Full Text: Report on the Work of the Government (1)
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Full Text: Report on the Work of the Government (12)

Full Text: Report on the Work of the Government (13)

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Full Text: Report on the Work of the Government (15)



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