II. Overall Requirements and Major Objectives for Economic and Social Development in 2009

In pursuing economic and social development in 2009, we need to fully implement the guidelines adopted at the Party's Seventeenth National Congress and the Third Plenary Session of its Seventeenth Central Committee, take Deng Xiaoping Theory and the important thought of Three Represents as our guide, and thoroughly apply the Scientific Outlook on Development. We will focus on boosting domestic demand to maintain steady and fairly rapid economic growth. We will accelerate the structural adjustment and transformation of the development pattern to improve our sustainable development capability. We will deepen reform and opening up to enhance the vigor and vitality of economic and social development. We will strengthen social programs to solve sensitive and thorny problems concerning people's interests and promote sound and rapid economic and social development.

In view of the above requirements, focusing on the primary task of maintaining steady and fairly rapid economic growth; considering the need to integrate speed with quality, structure and efficiency, balance the domestic and foreign-oriented sectors of the economy, and coordinate economic development with social development; and in conformity with the Outline of the Eleventh Five-Year Plan for National Economic and Social Development, we have set the following major objectives for economic and social development in 2009.

- Maintaining steady and fairly rapid economic growth and keeping GDP growth at around 8 percent. Continuing to set the target of economic growth at 8 percent is primarily aimed at preventing the growth rate from dropping too much. The target was set to meet the objective requirements of the overall work of the Party and the state and the vital interests of the people, and it is beneficial for stabilizing public expectations, strengthening confidence in development, expanding urban and rural employment, increasing people's incomes and maintaining social stability. At the same time, given the slowdown in the growth of the world economy, the complex and volatile external environment, and the considerable increase in domestic problems, this is not a low target and requires the support of strong macro policies, and practical and effective work. Of course, the development we pursue is high-quality, effective development that is people-oriented, comprehensive, balanced and sustainable.

- Further improving the economic structure. We will put more effort into independent innovation, increase the share of tertiary industry in the economy, raise the level of industry concentration, shut down more backward production facilities, continue balancing development among different regions, and lower energy consumption per unit of GDP, sulfur dioxide emissions and chemical oxygen demand by a larger amount. Against the backdrop of the spreading global financial crisis and numerous domestic tensions and problems, we can continually improve the quality and efficiency of development and increase the competitiveness of industries and our sustainable development capability only if we turn challenges into opportunities; transform pressure into motive power; organically integrate maintaining economic growth, boosting domestic demand and adjusting economic structure; accelerate the optimization of the economic structure and the transformation and upgrading of enterprises; shut down backward production facilities; and integrate factors of production. This composite target is put forward to guide all sectors to focus on changing the pattern of development, speeding up economic restructuring, intensifying efforts to conserve energy and reduce pollution, promoting transformation and upgrading of enterprises, improving emergency response capability, and achieving sound and rapid development, while maintaining steady and fairly rapid economic growth.

- Ensuring people's wellbeing. Nine million jobs should be created for urban residents, and we will make every effort to create even more to keep the rate of registered urban unemployment under 4.6 percent. Rural per capita net income and urban per capita disposable income should both rise by 6 percent in real terms. The number of rural people living below the poverty line should be reduced by more than two million. The natural population growth rate should stay within 7‰. In setting these targets, we have taken several major factors into account. The more difficulties we have, the greater concern we should show for people's wellbeing. This is extremely important not only for boosting domestic demand and stimulating growth but also for increasing the confidence and determination of the public to overcome difficulties. The employment situation will be grim this year because some enterprises are experiencing difficulties in their production and operation while our workforce keeps increasing; in particular, the number of college graduates this year will continue to increase. However, by following an even more vigorous employment policy to generate more jobs in all sectors of the economy and by strengthening employment services and job training, we should be able to reach the target for urban job creation. Due to the impact of changes in the domestic and international economic environments, it has become harder for rural residents to find non-farm jobs, which has restricted the growth in rural cash income. Moreover, there are a number of uncertainties affecting the prices of major farm products such as hogs, cotton and soybean. As a result, we cannot be optimistic about the prospects of people's incomes, particularly those of rural residents, rising this year. However, by making greater efforts to adjust the pattern of national income distribution, pressing forward with policies and measures designed to boost personal incomes, and constantly expanding employment channels for rural workers and the latitude for increasing rural incomes, it will still be possible for us reach the targets for increasing both urban and rural incomes.

- Keeping the CPI increase stable at about 4 percent. In setting this target, we have considered both factors that will hold down prices in the short run, including a slowdown in the growth in total demand and the growing problem of supply outstripping demand, and factors that will drive up prices, including the ongoing reform of prices and the inevitability that the cost of labor and resources and environmental costs will rise. In addition, we have also taken into consideration the need to guide market expectations and stabilize confidence in the market.

- Continuing to improve the balance of payments. Exports will continue to grow steadily; imports will further expand, and trade in services will develop more rapidly. We will become better able to effectively distribute resources globally and enhance our new advantages in international competition. Total imports and exports should grow by 8 percent. Structural improvements will be made in the allocation of foreign investment to regions and industries, and China's investment in other countries will grow steadily. Reaching this target is not only a practical necessity to ensure economic growth and employment, but also an important condition for restructuring the economy and raising its level of performance. Although the current international economic environment is grim, the global market is shrinking and trade protectionism is resurgent, China still has significant advantages in international competition because the country is rich in human resources, the quality of its workforce is improving, it is making rapid advances in science and technology, and its enterprises are becoming more responsive to market changes. As long as we seize favorable opportunities presented to us in the course of adjusting the international division of labor, keep opening the country still wider to the outside world, change the way our external economy develops, and take the development path of competing on quality and efficiency and diversifying export markets, we will be able to constantly increase the economy's capability to compete internationally and withstand risks, and maintain and expand its international market share.