Xiang Dong, a researcher of the State Council Research Office and member of the drafting group of the 2016 government work report, talked about highlights of this year’s government work report delivered by Premier Li Keqiang on March 5.
Facts and truths
Before the drafting of the report, Premier Li gave clear directions regarding its main idea, framework, focuses, and style.
The most important thing he stressed is facts and truths in the report.
He required that facts and truths should be given in the report regarding the government’s work, policies, measures, problems and difficulties. No empty words shall be written.
Simplicity and lawful governance
Last year, the Premier stressed that “it goes without saying that powers should not be held without good reason.”
In this year’s report, he quoted a Chinese history record emphasizing that improper regulations imposed on the people should be removed.
Premier’s attention to netizens’ ideas and suggestions
Premier Li read all netizens’ ideas and suggestions that were sent to him. He then gave an instruction to the drafting group asking them to use them for reference.
The Premier always pays high attention to netizens’ proposals, which help the decision-makers remain determined to promote reforms.
Priority of governance — people’s wellbeing
Premier Li mentioned in his report that people’s wellbeing is a priority of governance. He pointed out that even as the economy slowed down, financial support for people’s wellbeing should be maintained.
For example, the government made financial support available in critical illness insurance, poverty alleviation and upgrading the rural power grid.
China contributes more than 25 percent to the world’s economic growth
In 2015, China’s GDP growth rate reached 6.9 percent. The Premier pointed out that we have achieved the expected goal as 6.9 percent is still within the range of around 7 percent.
Considering the complicated picture of the world’s economy and China’s huge GDP figure of 60 trillion yuan ($10.41 trillion), such a growth rate is not easy to achieve.
By comparison, growth rates of the United States, the eurozone, Japan, Russia and Brazil reached only 2.4 percent, 1.5 percent, 0.4 percent, minus 3.7 percent and minus 4 percent, respectively.
Thus, China’s economy serves as an important driver to the world’s economy as it contributes more than 25 percent to the world’s economic growth.
New goal of GDP growth rate in 2016 in line with future target
The Premier said that the expected GDP growth rate in 2016 will range between 6.5 and 7 percent.
The new goal of GDP growth rate is in line with the target of the 13th Five-Year Plan.
To comprehensively build a moderately prosperous society and double the GDP on the basis of 2010’s level, the bottom line is 6.5 percent over the next five years. So the new goal is in accordance with the country’s situation.
Employment is government’s top priority
According to the Premier’s ideas about economic speed, China’s economy should neither go too fast nor too slow. Both the attention to economic speed and the efforts to stabilize economic growth are aimed at securing employment.
Employment is the government’s top priority as only when the 1.3 billion people have jobs can they make money and have decent lives.
We have created an average of more than 10 million jobs annually in the past three years and the growth rate of residents’ income reached 7.4 percent, higher than the 6.9 percent GDP growth rate.
New driving forces and the ‘new economy’
The Premier put forward concepts, such as the “new economy”.
So far, driving forces of China’s economy are undergoing transition. The Premier said that efforts should be made to accelerate driving force transition as old driving forces cannot be updated without the development of new ones.
New industries, technologies and business modes, such as the “Internet Plus” and “3D printing”, are examples of the new driving forces which are also the new economy that we will develop in the future.
The transition will be a process in which upgrade of old driving forces will reduce overcapacity while new driving forces will add jobs and create a better environment.
For example, coordination between old driving forces and the “Internet Plus” creates new modes of “crowd innovation, crowd sourcing, crowd support, and crowd funding”, transforming traditional manufacturing mode and organization management mode and promoting traditional industry upgrades.
So the “new economy” is not a word that was randomly written in the report. During the economic transition, the focus will be on structural adjustment, industry upgrades, and development mode transformation.