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The theme of this forum – the all-round, balanced and sustainable development of China, is an issue of popular concern both at home and in the international community.

Building a well-off society in an all-round way is a development stage with decisive significance in the third strategic stage in the modernization drive.

Currently, economic growth in China is in a pivotal stage. Since 2003, the CPC Central Committee and the State Council have adopted a series of macroeconomic regulation and control measures to resolve some acute problems, and it seems they are taking effect.

Rural economic situation in 2003 presented the following outstanding characteristics: First of all, SARS epidemic seriously affected farmers’ income, farmers’ work in urban areas between April and June and the sales of farm products.

China’s consumer goods market experienced a test of severe acute respiratory syndrome (SARS) in 2003, and the market operation restrained first and rose later.

The policies and measures in 2004 should be designed mainly to solve the acute contradictions in price performance.

Prudent monetary policy should remain to be the keynote of 2004. To make it more specific, the monetary policy should give priority to interest rate adjustment and open market operation.

Since China started its reform and opening to the outside world in 1978, the gap in regional development can be roughly divided into three periods of changes.