The Central Economic Work Conference was held in Beijing on December 3-5.

Top leaders Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang and Zhou Yongkang attended the conference. Hu Jintao is General Secretary of the Central Committee of the Communist Party of China (CPC), President of China and Chairman of the CPC Central Military Commission. Wu Bangguo is Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Chairman of the Standing Committee of the National People's Congress. Wen Jiabao is Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council. Jia Qinglin is Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Chairman of the National Committee of the Chinese People's Political Consultative Conference. Li Changchun is Member of the Standing Committee of the Political Bureau of the CPC Central Committee. Xi Jinping is Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Member of the Secretariat of the CPC Central Committee. Li Keqiang is Member of the Standing Committee of the Political Bureau of the CPC Central Committee. He Guoqiang is Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Secretary of the Central Commission for Discipline Inspection. Zhou Yongkang is Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Secretary of the Political and Legislative Affairs Committee of the CPC Central Committee.

Hu Jintao made important remarks at the conference. He analyzed China's current economic situation and the international economic climate, put forward guidelines and overall requirements for China's economic work in 2008 and clarified the general principles and tasks for doing a good job on economic front next year. In his speech, Wen Jiabao further discussed the major issues in China's economy in 2008 and gave specific instructions on the main objectives and tasks in this regard.

The conference pointed out that 2007 was an important year for the CPC and China. Work on all fronts made headway as we followed the guidance of Deng Xiaoping Theory and the important thought of "Three Represents," earnestly implemented the essential principles put forth at the 16th CPC National Congress and the third, fourth, fifth and sixth plenums of the 16th CPC Central Committee and thoroughly applied the Scientific Outlook on Development.

In particular, the 17th CPC National Congress was a success. It charted the course for China to continue to emancipate the mind, persist in reform and opening up, pursue development in a scientific way, promote social harmony and strive for new victories in building a moderately prosperous society in all respects.

In 2007, all regions and departments carried out the CPC Central Committee's general principles on the economic work, further strengthened and improved macroeconomic regulation, set great store by the basic role of market forces in allocating resources, tried to solve prominent problems and conflicts in economic operations and committed efforts to achieve sound and rapid economic development. The national economy has maintained a good momentum characterized by rapid growth, optimized structure, enhanced efficiency and improved living standards.

The economy developed in a stable and rapid manner; gratifying changes took place in the agricultural sector and rural areas; the economic structure kept improving; remarkable progress was made in energy conservation and emission reduction; reform and opening up continued to deepen; and more tangible benefits were delivered to the people.

In general, the past few years have seen considerable growth in China's comprehensive national strength and international influence, the gradual change of its mode of development, an increase in its potential for development, greater vitality injected into the country's development and fresh progress in different areas of its economic and social development. This provides evidence to the fact that the whole Party and nation have gained a deeper understanding of the Scientific Outlook on Development and applied it with more effective measures and more conscious actions.

The conference pointed out that while recognizing these achievements, China should be clearly aware of the fact that prominent problems in its economic operations have yet to be resolved and that alarming new situations have arisen. The trend for the economy to shift from rapid growth to overheating has not been curbed. Price hike pressure is mounting. The country's agricultural base is still weak. The situation for energy conservation and emission reduction is extremely severe. Problems bearing on the immediate interests of the people remain acute. We must be mindful of potential dangers, stay prepared for adversities in times of peace and show great concern for and deal with all the challenges and problems emerging as we forge ahead in a timely fashion.

The conference stressed that China is in a crucial stage of reform and development as well as an important period of industrialization and modernization. Many of the problems in its economic development are, to a large extent, objective reflections of the country's basic national conditions and the characteristics of its state of development. The 17th CPC National Congress called for accelerating the transformation of our mode of economic development, keeping to the new path of industrialization with Chinese characteristics and propelling three transitions in the mode of economic growth: The transition from relying mainly on investment and export to relying on a well-coordinated combination of consumption, investment and export; the transition from secondary industry serving as the major driving force to primary, secondary and tertiary industries jointly driving economic growth; and the transition from relying heavily on the increased consumption of material resources to relying mainly on advances in science and technology, improvements in the quality of the workforce and innovation in management.

This is an essential conclusion drawn from the long-term practice of China's modernization and an important lesson learned from our experience in applying the Scientific Outlook on Development since the 16th CPC National Congress. It is also a major strategic idea proposed in accordance with China's realities and the correct direction that we must adhere to as we promote China's economic and social development.

We must be fully aware of the major strategic significance and relevance of accelerating the transformation of the mode of economic development, keeping to the path of industrialization with Chinese characteristics to achieve new victories in building a moderately prosperous society in all aspects, and creating a new situation for building socialism with Chinese characteristics. We must earnestly put into practice these strategic tasks, which were put forth at the 17th CPC National Congress and which have a great bearing on the overall interests of China's economic and social development.

We should properly deal with a number of major issues in our work: We must rely on innovation as the driving force, provide strong and lasting technological support for accelerating the transformation of the mode of development, promote the upgrading of the industrial structure and step up the historical transition from a large industrial country to a strong industrial country. We also must balance urban and rural development, form a new pattern that integrates economic and social development in urban and rural areas and strive for common prosperity in urban and rural areas. We must persist in resource conservation and environmental protection, coordinate efforts to promote modernization and develop a conservation culture and give prominence to building a resource-conserving, environmentally friendly society in our strategy for industrialization and modernization. We must coordinate both domestic and international situations, take into consideration and make use of both the domestic and international markets and resources and try to make China's development interact positively with the common development of other countries. We must adhere to the people-first principle, focus more attention on improving people's livelihoods and do well in realizing, safeguarding and developing the fundamental interests of the overwhelming majority of people.

According to the conference, to promote sound and rapid economic and social development, we must lay even greater emphasis on considering both domestic and international situations, correctly grasp the trend of world economy and be more systematic, forward-looking and active in our economic work. We must enhance our capability for coordinating both domestic and international situations, appropriately handle various challenges, improve the quality and level of external economic work and seize the initiative in the opening-up process.

The conference stressed that 2008 will be the first year for carrying out the strategic plans made at the 17th CPC National Congress and a crucial transitional year for implementing the 11th Five-Year Plan (2006-2010). It marks the 30th anniversary of the adoption of the reform and opening-up policy. It is also the year when Beijing will host the Olympic Games. Doing a good job on the economic front this year is of great significance to implementing the essential principles of the 17th CPC National Congress, maintaining the good momentum of economic and social development and achieving new victories in building a moderately prosperous society in all respects.

The conference put forth the overall requirements for the economic work in 2008: Comprehensively implementing the essential principles of the 17th CPC National Congress, holding high the great banner of socialism with Chinese characteristics, following the guidance of Deng Xiaoping Theory and the important thought of the Three Represents, thoroughly applying the Scientific Outlook on Development, focusing on transforming the mode of economic development and improving the socialist market economy, continuing to strengthen and improve macroeconomic regulation, forging ahead with reform and opening up and independent innovation, committing efforts to optimize the economic structure and improve the quality of economic growth,  underlining energy conservation, emission reduction and ecological and environmental conservation, attaching even greater importance to improving people's livelihoods and fostering social harmony, and promoting the sound and rapid growth of the national economy.

The requirements were established with a view to achieving comprehensive, balanced and sustainable development. We should give top priority to sound economic development; try to coordinate the rate, quality and efficiency of economic growth, balance consumption, investment and export, harmonize the population, resources and the environment and properly handle the relations among reform, development and stability; and keep creating new situations for sound and rapid economic and social development.

The conference put forward eight major economic tasks for 2008:

1. Improve and implement policies in macroeconomic regulation to maintain the good momentum of stable and rapid economic development. We should make it the primary goal of macroeconomic regulation to prevent the shift from rapid economic growth to economic overheating and the shift from structural price rises to inflation. We should do a good job in macroeconomic regulation in accordance with the guidelines on controlling the aggregate economic volume, stabilizing prices, adjusting the economic structure and promoting economic balance. We will carry out a prudent fiscal policy and a tight monetary policy in 2008. We will continue to adopt reasonable fiscal expenditure, commit efforts to promote structural adjustment and balanced development, optimize the structure of expenditure, and considerably increase spending on social security, public health, education and housing. We should give greater play to the role of monetary policy in macroeconomic regulation, strictly control the total amount of lending and the rhythm of money injection, better regulate the aggregate demand, improve the balance of international payments and maintain financial stability and security. We will strictly control new construction projects, prevent the rebound of investment and keep economic growth at a reasonable level. We will take effective measures to check the rapid rise of overall price levels, increase the production of daily necessities including grains, edible vegetable oil and meat and other commodities in short supply, improve the reserve system, make macroeconomic regulation over prices more forward-looking, intensify price monitoring, tighten market supervision and improve subsidies for low-income people to offset the effects of rising prices for daily necessities in a timely fashion.

2. Strengthen the position of agriculture as the foundation of the national economy and inject vigor into rural areas and the rural economy. We will properly resolve the issues concerning agriculture, rural areas and farmers—the three issues that are of special significance to stabilizing economic and social development. We will make resolving the issues an urgent task and always see to it that food security is ensured. We will spare no effort to consolidate the agricultural foundation and make the settlement of the three issues a top priority in the work of the whole Party. We will take a path of agricultural modernization with Chinese characteristics, make innovations in the approach to settling the three issues, transform the development mode of agriculture and improve the work in this regard. We will step up efforts to balance urban and rural development and improve policies to support and benefit agriculture. We will improve infrastructure in rural areas, increase the overall capacity of agricultural production, explore more channels for farmers to increase their incomes, commit efforts to resolve the issues bearing on farmers' livelihoods and forge ahead with the building of a new socialist countryside. We will underline agricultural production, arouse the farmers' initiative in farming and growing grain crops and try to reap another good harvest. We will improve the production conditions for agriculture with a focus on water conservation projects, accelerate innovation in agriculture-related science and technology and make agriculture more responsive to natural risks. We will improve the social security system in rural areas, enhance poverty reduction through development and enable farmers to better share the benefits of development.

3. Enhance China's capacity for independent innovation and promote the upgrading of the industrial structure. We will be more demand-driven, make breakthroughs in key technologies vital to economic and social development, accelerate the implementation of the state's major scientific and technological programs and strive for strategic breakthroughs in areas where China has a competitive edge. We will strengthen the leading role of enterprises, and improve legally guaranteed policy system, incentive mechanisms and market conditions to encourage technological innovation and the application of scientific and technological achievements in production. We will give full play to the important role of state-owned enterprises in independent innovation and step up efforts to carry out the intellectual property rights strategy. We will make use of China's comparative advantage, develop a modern industrial system, increase global competitiveness and speed up the development of new competitive advantages based on scientific and technological advances and innovation in keeping with the upgrading of the industrial structure.

4. Intensify efforts to solve difficulties that are hard to tackle and to ensure that major progress is made in energy conservation and emission reduction. The year 2008 is a crucial one for fulfilling the binding objectives on energy conservation set forth in the 11th Five-Year Plan. We must enhance our efforts in energy conservation and emission reduction as we promote development in a scientific way. Despite the difficulties, we will strengthen our efforts to shape a collaborative working mechanism with the guidance of the government, the leading role of enterprises and the participation of the entire society. We will be prepared to engage ourselves in tough, persistent campaigns for energy conservation and emissions reduction. We will improve policies, laws and regulations, strengthen the incentive and restraint mechanisms and promote energy conservation and emissions reduction by legal means. We will accelerate the adoption and implementation of incentive policies for energy conservation and emissions reduction in terms of pricing, taxation and financing and step up efforts to formulate and facilitate the implementation of market access standards, mandatory energy efficiency standards and environmental protection standards. We will enhance enterprises' sense of social responsibility, concentrate on energy conservation and emissions reduction in key industries and areas, accelerate the application of sophisticated and practical technologies, effectively curb the rapid growth of industries that suck in huge amounts of energy and cause heavy emissions, eliminate backward production capacity, seriously implement the responsibility system for conserving energy and reducing emissions and make the objectives fulfillment a yardstick by which to judge the efficiency of economic development. We will enhance the awareness of energy conservation and environmental protection in the entire society and launch public campaigns to save energy and cut emissions.

5. Promote balanced development among regions and step up urbanization in a vigorous yet steady manner. We will continue to follow the general strategy for regional development, improve the market mechanism, work beyond administrative divisions, promote the orderly flow of factors of production, guide the efforts to achieve a rational geographic distribution of industries and better coordinate the development of different regions. In accordance with the requirement to form development priority zones and the principle of equal access to basic public services, we will give more support to the development of old revolutionary base areas, ethnic autonomous areas, border areas and poverty-stricken areas and try to narrow the gap in public services among different regions. We will step up efforts to establish development priority zones by strengthening planning and policy guidance. In line with the general requirement of urbanization with Chinese characteristics, we will strengthen the planning and guidance aspects of the urbanization process, use land in an economical and intensive manner, increase the overall carrying capacity of cities, focus on enhancing the capacity for sustainable development and promote the healthy development of urbanization.

6. Deepen reform in a comprehensive manner to improve the systems and mechanisms promoting scientific development and social harmony. Reform has always been a strong driving force for economic and social development. It is reform that we have made achievements and we will still rely on reform for our future development. In accordance with the requirement put forward at the 17th CPC National Congress to "make our systems and mechanisms full of vigor, highly efficient, more open and conducive to scientific development," we will render the decision making on reform more scientific, make the reform measures more balanced, properly handle the relations between reform, development and stability and promote institutional innovation in all respects. We will deepen the reform of government institutions and accelerate the transformation of government functions. We will continue to carry out reforms in state-owned enterprises to improve their ownership structure. We will deepen fiscal, taxation and investment restructuring to promote the transformation of the mode of economic development. We will also deepen financial restructuring, establish a modern financial system, improve financial regulation and fend off financial risks. Efforts will be made to accelerate the restructuring of social management to improve the public service system.

7. Improve open economy to create a new situation in opening up. We will give overall consideration to internal and external economic work and better integrate our "bring in" and "go global" strategies. We will make innovations in the approach to opening up, expand the areas for opening up, optimize the opening-up structure, improve the quality of opening up and develop new advantages for China to take part in international economic cooperation and competition in the age of globalization. We will expedite our capacity for dealing with fluctuations in the international market. We will make innovations in the way of using foreign capital and improve the structure of the foreign investment utilized. We will persist in the "go global" strategy and explore new ways of investing in and cooperating with other countries. We will implement a strategy of free trade zones and expand bilateral and multilateral trade and economic cooperation.

8. Commit efforts to improve people's livelihoods and promote social harmony. The CPC put forward clear objectives and requirements for improving people's livelihoods at its 17th National Congress—the solemn commitments that the CPC made for the benefit of the Chinese people. We will put more effort into improving people's livelihoods by first solving the most specific problems of the utmost and immediate concerns of the people. We will seriously resolve all kinds of issues related to people's livelihoods in a prioritized manner. We will implement a development strategy that promotes job creation and encourages entrepreneurship to create more employment opportunities. We will improve services for the self-employed, provide better vocational training for the labor force, do our best to help college graduates find jobs and help zero-employment families to have job opportunities in a timely fashion. We will reasonably adjust the distribution of national income, increase the incomes of urban and rural residents, raise the share of work remuneration in primary distribution, increase the incomes of low-income people, and set up a mechanism of regular pay increases for enterprise employees and a mechanism for guaranteeing payment of their salaries. We will improve the social safety net and increase the coverage of basic old-age insurance and basic medical insurance systems for urban residents, explore ways to set up an old-age insurance system in rural areas, launch more pilot projects for basic medical insurance for urban dwellers and popularize the new cooperative medical care system in rural areas. We will intensify efforts to develop education and public health care services. We will allocate more funds to education, make free compulsory education available in both urban and rural areas, improve teaching conditions in rural schools and further improve the quality of the Chinese nation. We must maintain the public welfare nature of public medical and health care services, forge ahead with the restructuring of medical and health care reforms and provide better medical services to the people. We will improve the housing security system, speed up the development of low-rent housing, improve and standardize the affordable housing system, and commit efforts to resolve housing difficulties for low-income families in cities. We will promote the development and prosperity of a socialist culture, accelerate efforts to establish a public cultural service system covering the entire society and better satisfy people's needs for culture. We will improve social management and safeguard social stability and unity.

The conference pointed out that to fulfill the country's economic objectives and tasks in 2008, we must maintain stable and rapid economic development in the spirit of advancing steadily, speed up the transformation of the mode of economic development while giving top priority to sound economic development, make new breakthroughs in improving systems and mechanisms while adhering to the reform and opening-up policy and attach greater importance to improving people's livelihoods under the people-first principle. When making specific plans, we will put developing modern agriculture and prosperous rural economy at the top of the agenda for building a new socialist countryside, control fixed-asset investment, expand consumption demands, accelerate economic restructuring and transformation of the mode of economic development, do a good job in conserving energy and reducing emissions, keep price levels relatively stable, accelerate social development with a focus on improving people's livelihoods, deepen economic restructuring, improve the level of opening up, and promote the reform of the administrative system and the improvement of the government.

The conference stressed that in light of the complicated and volatile international situation and the strenuous tasks of reform and development at home, we should implement the essential principles of the 17th CPC National Congress, fulfill the tasks for the economic work in 2008, promote the sound and rapid development of the socio-economy and enhance the capacity for leading the country in scientific development. We will underline the need to learn to enhance our ideological and technical competence for leading the country in scientific development, adhere to the principle of overall consideration to have a better command of the basic methods of the Scientific Outlook on Development, carry out intensive research to seize the initiative in scientific development, and focus on the implementation of the policies to achieve tangible results. We will direct the whole society's enthusiasm to scientific development and the transformation of the mode of economic growth, make greater strides in reform and opening up and achieve greater success in promoting scientific development and social harmony.

The conference also stressed that maintaining a positive situation featuring economic development and social harmony is essential to fulfill the economic tasks for next year. We should rally closely around the CPC Central Committee with Comrade Hu Jintao as the general secretary and create new situations on all fronts with firm confidence, great enthusiasm, a pioneering spirit and a down-to-earth working style.