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Full text: Report on China's economic, social development plan

Updated: 2011-03-18 15:00
( Xinhua)

Fellow Deputies,

The National Development and Reform Commission has been entrusted by the State Council to report on the implementation of the 2010 plan and on the 2011 draft plan for national economic and social development for your deliberation and approval at the Fourth Session of the Eleventh National People's Congress (NPC), and also for comments and suggestions from the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

I. Implementation of the 2010 Plan for National Economic and Social Development

Last year, the environment for China's economic and social development was extremely complex, and there were various extremely severe natural disasters and major challenges. Under the firm leadership of the Communist Party of China (CPC), the people of all our ethnic groups thoroughly applied the Scientific Outlook on Development. Based on the plan for national economic and social development adopted at the Third Session of the Eleventh NPC, we steadfastly implemented the package plan for responding to the global financial crisis, accelerated the transformation of the pattern of economic development, and consolidated the good momentum in economic and social development. Overall, the plan for 2010 was implemented well, and the main objectives and tasks set forth in the Eleventh Five-Year Plan were successfully accomplished.

1. Steady and rapid economic growth was maintained.

Economic performance was generally stable, with significant improvement in quality and efficiency. GDP for the year was 39.8 trillion yuan, an increase of 10.3%, and 2.3 percentage points higher than the target. Primary, secondary and tertiary industries grew by 4.3%, 12.2% and 9.5% respectively, and 0.3, 4 and 0.8 percentage points higher than targeted figures. Value-added of industry amounted to 16 trillion yuan, up 12.1% and 4.1 percentage points higher than the target. By strengthening regulation and overall coordination of supplies of coal, electricity, oil, gas and transport, we were able to meet all the demands of economic and social development and people's lives, demands from disaster-stricken areas and major events, and demands placed on us at crucial times. National revenue for 2010 was 8.3 trillion yuan, an increase of 21.3%. The deficit was 50 billion yuan less than the budgeted amount. The broad money supply (M2) increased by 19.7% and RMB loans totaling 7.95 trillion yuan were granted in 2010. The performance of enterprises continued to improve, and the profits of large industrial enterprises reached 3.88 trillion yuan in January through November, a year-on-year increase of 49.4%.

(Figure 1: GDP Growth in the Eleventh Five-Year Plan Period)

Domestic demand continued to expand, and the driving forces of economic growth became increasingly coordinated. Policies to stimulate consumer spending achieved positive results and the country's consumption potential was further unleashed. Retail sales of consumer goods totaled 15.6998 trillion yuan, a year-on-year increase of 18.3%, and 3.3 percentage points higher than the target. A total of 77.18 million home appliances, an increase of 130%, were sold through the national program for subsidizing rural residents' purchase of home appliances. A total of 18.06 million motor vehicles were sold, an increase of 32.4%. Appropriate growth was maintained in investment and the investment structure was further improved. Fixed-asset investment across the country amounted to 27.814 trillion yuan, up 23.8% from the previous year and exceeding the target figure by 3.8 percentage points. The plan to increase investment by four trillion yuan over two years was successfully completed. Guidelines on encouraging and guiding the sound development of nongovernmental investment were issued and implemented, which injected new vitality into investment from nongovernmental sources. In 2010, non-governmental investment accounted for 51.1% of total fixed-asset investment in urban areas, 3 percentage points higher than the previous year. Consumption contributed 3.9 percentage points to economic growth, investment contributed 5.6 percentage points, and net exports contributed 0.8 percentage points.

(Figure 2: Public Investment from the Central Government from the Fourth Quarter of 2008 to 2010)

Overall price levels remained basically stable and markets were further standardized. We implemented a number of measures to keep prices stable and improve people's lives. We did a good job of stockpiling and releasing grain, cotton, meat, sugar and other important commodities; increased the varieties of fresh and live agricultural products that qualify for the toll-free policy and extended the policy to all toll roads; improved the mechanism to adjust living allowances for the poor in step with price changes, and therefore reduced the impact of price rises on their lives; suspended or eliminated some charges and fees, reduced the levels of others and lowered drug prices, thereby easing the burden on enterprises and the people; and organized and launched campaigns to rectify unreasonable charges and fees related to enterprises, electricity rates and prices of agricultural products, and to crack down on violations of intellectual property rights and on the production and sale of counterfeit or substandard goods in order to create a well-ordered pricing and market environment. Overall, annual CPI rose 3.3%, meaning the target for price control was basically achieved.

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