Page 10 - REPORT ON THE WORK OF THE GOVERNMENT

Thought on Socialism with Chinese Characteristics for a New Era, sets major
quantified objectives and tasks for economic and social development during the

14th Five-Year Plan period. The full draft has been submitted to this session for
your deliberation and approval.
The highlights of the draft Outline are as follows:
—Improving the quality and effectiveness of development and maintaining
sustained and healthy economic growth
Development is the foundation, and it holds the key, for addressing all the
issues our country faces. We must stay true to the new development philosophy,
and ensure it is applied in full, in both letter and spirit, in every stage and aspect of
development. We should encourage people working in all sectors to give high

priority to improving the quality and effectiveness of development to fully tap
China’s growth potential. We will keep major economic indicators within an
appropriate range, set annual targets for economic growth in light of actual
conditions, ensure that overall labor productivity grows faster than GDP, keep the
surveyed urban unemployment rate within 5.5 percent, and keep prices generally
stable. Doing so will enable us to achieve higher-quality development that is more

efficient, equitable, sustainable, and secure.
—Pursuing innovation-driven development and accelerating modernization of
the industrial system
Innovation remains at the heart of China’s modernization drive. We will
strengthen our science and technology to provide strategic support for China’s
development. To improve China’s innovation system, we will work faster to
enhance our strategic scientific and technological capability underpinned by the
development of national laboratories, strive to make major breakthroughs in core
technologies in key fields, and formulate and implement a ten-year action plan for

basic research. We will enhance the capacity of enterprises to make technological
innovation, unlock the creativity of talent, and improve the systems and
mechanisms for making scientific and technological innovation. China’s R&D
spending will increase by more than seven percent per year, which is expected to
account for a higher percentage of GDP than that during the 13th Five-Year Plan
period. Extensive activities will be conducted to help people learn more about

science.
In pursuing economic growth, we will continue to prioritize the development
of the real economy, upgrade the industrial base, modernize industrial chains, and
keep the share of manufacturing in the economy basically stable. We will
transform and upgrade traditional industries, strengthen strategic emerging

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