6) Social reforms proceeded in an orderly fashion.

Guidelines for comprehensive reform of the system for the use of official vehicles were formulated, and were implemented first in the bodies of the CPC Central Committee and central government. Plans for a system of public credit records were promulgated and implemented, and mechanisms to enable different departments to share credit information and take joint punitive actions against those who act in bad faith were improved. Significant progress was made in the establishment of a unified registration system for immovable property. The reform of the school examination and enrollment systems was vigorously promoted. The plan for old-age insurance reform in Party and government bodies and public institutions was promulgated as expected. The majority of China's provincial-level administrative areas have established systems enabling residents to settle medical bills incurred in any locality within that jurisdiction via their medical insurance accounts. Trials for the comprehensive reform of county-level public hospitals have been extended to over 50% of counties or county-level cities throughout the country.

7) A new phase of reform and opening up has been initiated.

The strategy of developing the Silk Road Economic Belt and 21st Century Maritime Silk Road entered the implementation phase, the construction of infrastructure was strengthened with a view to achieving better connectivity with neighboring countries, and the opening up of markets in border areas and inland areas was expanded. The operation of the China (Shanghai) Pilot Free Trade Zone yielded transferable experience that can be replicated in other reform projects. The utilization of foreign capital was enhanced in terms of both quality and structure. Non-financial foreign direct investment actually utilized in 2014 totaled US$119.6 billion, up 1.7% year on year. The proportion of foreign investment utilized in the service sector reached 55.4% of the total. Efforts were redoubled to promote international cooperation on production capacity and encourage Chinese equipment to "go global," and good progress was made in initiatives to promote Chinese rail transit equipment, electricity generation, telecommunications, and energy on the international market. China's non-financial outward direct investment reached US$102.9 billion for the year, up 14.1%. A pattern of synchronous growth in inward and outward investment began to take shape.

3. We accelerated industrial structural adjustment and vigorously promoted economic transformation and upgrading.

Through exerting market forces and enhancing policy guidance, we sped up the transformation of the economic growth model and gave new impetus to the improvement and upgrading of the industrial structure.

1) New breakthroughs were made in innovation.

Spending on R&D as a percentage of GDP reached 2.09% in 2014, with corporate R&D spending accounting for over 76% of the total. Cutting-edge innovations such as the Tianhe-2 supercomputer, super-hybrid rice, the Chang'e lunar lander, satellite applications, and the deep-sea manned submersible Jiaolong captured global attention. Breakthroughs were made in a number of key and core technologies and industrial applications, covering the fields of biology, intelligent manufacturing equipment, ocean engineering equipment, regional airliners, mobile Internet, and broadband network equipment. There was rapid development in strategic emerging industries, such as cloud computing, the Internet of Things, and big data. Micro-innovation, crowd innovation, and other innovative and entrepreneurial models showed robust growth. The value-added of the high-tech manufacturing sector rose by 12.3%, four percentage points higher than that of industrial enterprises with annual revenue of 20 million yuan or more from their main business operations.

2) Good headway was made in transforming and upgrading traditional industries.

The technological upgrading of enterprises in traditional industries was carried out vigorously. Initiatives to adjust the distribution of key industries and relocate industries gathered pace. Steady progress was made in the elimination of excess production capacity. Tasks set out at the beginning of last year to eliminate excess production capacity in 15 key industries were completed as planned, effectively curbing the blind expansion of production capacity. Important gains were made in turning the coal industry around.

3) The service sector sustained rapid growth.

New business types and models displayed robust development. Cultural and creative industries and design services were further integrated with related industries, and a mid-to-long-term development plan and three-year action plan were introduced for the logistics industry. The value-added of tertiary industry (the service sector) amounted to 30.7 trillion yuan, increasing by 8.1% over the previous year and accounting for 48.2% of the GDP, 5.6 percentage points higher than that of secondary industry.

4) Basic industries and infrastructure developed quickly.

The country's comprehensive transportation system was further improved, with the total length of railway lines and expressways open to traffic both exceeding 110,000 kilometers. National internet backbone access points were built in seven more cities, and fiber optic broadband was made available to another 30 million households or so. The installed capacity of hydropower facilities nationwide exceeded 300 million kilowatts. Major progress was made in the exploration and exploitation of coal seam gas, shale gas, and deep-water oil and gas. Construction began on 57 of 172 major water conservancy projects that have been planned. The first phase of the central route of the South-to-North Water Diversion Project was put into operation, providing drinking water from the Yangtze River to 60 million residents in the Beijing-Tianjin-Hebei region.