1. Improving macroeconomic regulation to promote steady and rapid economic development.

　　我们围绕解决经济运行中的突出矛盾，注重宏观调控的预见性、及时性和有效性。几年来，针对固定资产投资增长过快、货币信贷投放过多、外贸顺差过大，以及农业基础薄弱等经济发展中不稳定、不协调、不可持续的问题，严把土地、信贷两个闸门，提高市场准入门槛，适时调整财政政策、货币政策，完善产业政策和土地政策，调整经济结构，加强薄弱环节，搞好经济运行调节。根据经济形势的变化，多次及时调整金融机构存款准备金率、存贷款基准利率，取消或降低高耗能、高排放和资源性产品的出口退税。这些宏观调控措施取得明显成效，经济连续五年保持平稳快速发展，没有出现大的起落。

　　We endeavored to make macroeconomic regulation more proactive, responsive and effective, with the focus on resolving major problems affecting economic operation. Over the past few years, we tightened controls on the supplies of land and credit, raised market access requirements, adjusted financial and monetary policies as needed, improved industrial policies and the land policy, adjusted the economic structure, shored up weak links and effectively regulated economic operation to address problems such as overheated growth in fixed asset investment, excessive supplies of money and credit, excessively large trade surplus, and weakness in agriculture, the foundation of the economy, which could cause economic development to become unstable, unbalanced and unsustainable. In response to changes in the economy, we have repeatedly made timely adjustments in the required reserve ratio and the benchmark interest rates for savings and loans in financial institutions and rescinded or reduced export tax rebates for resource products and products whose production is energy intensive or highly polluting. These macroeconomic regulatory measures produced significant results, and China's economy maintained steady and rapid development throughout the five-year period, without experiencing major fluctuations.

　　我们从加强农业基础入手，把促进粮食增产和农民增收作为首要任务，在制度、政策和投入方面采取一系列重大举措。全部取消了农业税、牧业税和特产税，每年减轻农民负担1335亿元。同时，建立农业补贴制度，对农民实行粮食直补、良种补贴、农机具购置补贴和农业生产资料综合补贴，对产粮大县和财政困难县乡实行奖励补助。大幅度增加对农业农村投入，中央财政用于“三农”的支出五年累计1.6万亿元，其中用于农村基础设施建设近3000亿元，地方也较多增加了投入。五年新增节水灌溉面积666.7万公顷、新增沼气用户1650万户、新建改建农村公路130万公里，解决了9748万农村人口饮水困难和饮水安全问题，建立了重大动物疫病防控体系，防止了高致病性禽流感等疫情蔓延。这些措施，极大地调动了农民积极性，有力地推动了社会主义新农村建设，农村发生了历史性变化，亿万农民由衷地感到高兴。农业的发展，为整个经济社会的稳定和发展发挥了重要作用。

　　We adopted a series of major measures related to institutions, policies and investment to increase grain production and rural incomes as a matter of priority and strengthen agriculture as the foundation of the economy. We completely rescinded the agricultural tax, livestock tax and tax on special agricultural products throughout China, reducing the burden on farmers by an average of 133.5 billion yuan per year. In addition, we set up a subsidy scheme for agriculture, instituting direct subsidies for grain producers, subsidies for superior crop varieties, subsidies for the purchase of agricultural machinery and tools, and general subsidies for agricultural production supplies and providing incentives to major grain-producing counties and subsidies to counties and townships with serious financial difficulties. Investment in agriculture and rural areas was greatly increased. Central government allocations for agriculture, rural areas and farmers reached 1.6 trillion yuan over the past five years, including nearly 300 billion yuan that was used for developing rural infrastructure. Local governments also substantially increased their input. During the five-year period, an additional 6.667 million hectares of farmland was equipped with water-saving irrigation facilities, methane gas was made available to 16.5 million more households, 1.3 million kilometers of rural roads were built or upgraded, and safe drinking water was provided to an additional 97.48 million rural residents. A system for the prevention and control of major animal diseases was set up, and the spread of highly pathogenic avian influenza was prevented. These measures greatly encouraged farmers to grow more, gave a strong impetus to the development of a new socialist countryside and brought historic changes to rural China to the great satisfaction of hundreds of millions of rural people. Agricultural development played an important role in ensuring the overall stability and development of China's economy and society.

　　我们制定了国家中长期科学和技术发展规划纲要，对2006－2020年的科技发展做出全面部署，启动一批重大专项。这对增强自主创新能力，推进创新型国家建设，有着重要而深远的影响。基础科学和前沿技术研究得到加强，取得高性能计算机、第三代移动通信、超级杂交水稻等一批重大创新成果，形成了一批具有自主知识产权和市场竞争力的产品。五年中央财政用于科技的投入达到3406亿元。全社会研究与实验发展经费，从2002年1288亿元增加到2007年的3664亿元，占国内生产总值比重从1.07%提高到1.49%。以企业为主体的技术创新体系建设取得重要进展。科技创新支撑和引领经济社会发展的能力明显增强。

　　We formulated the Outline of the National Program for Long- and Medium-Term Scientific and Technological Development, which contains comprehensive plans for the development of science and technology in China from 2006 through 2020 and calls for the launching of a number of major projects. This will have an important and far-reaching impact on efforts to strengthen China's capacity for independent innovation and make it an innovative country. Work in basic research and research in leading-edge technologies was intensified; a number of major innovations such as high-performance computers, third generation mobile communications, and super-hybrid rice were achieved; and a number of products that are competitive and carry Chinese intellectual property rights were developed. The central government spent 340.6 billion yuan on science and technology over the past five years. China's total investment in research, experimentation and development rose from the 128.8 billion yuan in 2002 to 366.4 billion yuan in 2007, with its share in the GDP rising from 1.07% to 1.49%. Major progress was made in developing a system for technological innovation in which enterprises play a key role. The capacity of scientific and technological innovation to sustain and boost economic and social development was markedly increased.

　　我们制定和实施一系列产业政策和专项规划，促进产业结构优化升级。信息、生物、航空航天、新能源、新材料、海洋等高新技术产业加快发展。振兴装备制造业成效显著。旅游、金融、物流等现代服务业蓬勃发展。基础设施基础产业建设取得长足进展，一批重大工程相继建成或顺利推进。青藏铁路提前一年建成通车，三峡工程防洪、发电、航运等综合效益全面发挥，西电东送、西气东输全面投产，南水北调工程进展顺利，溪洛渡水电站、红沿河核电站、京沪高速铁路和千万吨级炼油厂、百万吨级乙烯等一批重大项目陆续开工建设，普光气田、南堡油田等勘查开发取得重大进展。五年新增电力装机3.5亿千瓦，是1950年到2002年53年的总和；新增公路19.2万公里，其中高速公路2.8万公里；新增铁路营运里程6100公里；建成万吨级以上泊位568个；新增电信用户4.94亿户。这些有效改善了能源交通通信状况，增强了经济社会发展后劲。

　　We formulated and implemented a series of industrial policies and special plans designed to improve and upgrade the industrial structure. Development of new and high technology industries in information, biology, aerospace, new energy sources, new materials and oceanography was accelerated. Efforts to boost the equipment manufacturing industry produced significant results. Development of modern service industries such as tourism, banking and distribution was accelerated. Great progress was made in the development of infrastructure and basic industries, marked by the completion of or smooth progress on a number of major projects. The Qinghai-Tibet Railway was opened to traffic a year ahead of time; the Three Gorges Project is fully playing its designed role in flood prevention, power generation and shipping; the projects to send electricity and gas from China's western region to the eastern region are fully operational; the project to divert water from southern China to northern China is progressing smoothly; and construction has been started on a number of major projects such as theXiluoduHydroelectric Plant,HongyanheNuclear Power Plant, Beijing-Shanghai high-speed railway, a ten million-ton capacity oil refinery and a million-ton capacity ethylene plant. Major progress has been made in the prospecting and development of thePuguangGas Field and theNanpuOilfield. Newly added power-generating capacity over the five years totaled 350 million kW, equivalent to all the capacity added between 1950 and 2002. A total of 192,000 kilometers of highways were built, including 28,000 kilometers of expressways. A total of 6,100 kilometers of new railway lines went into operation. An additional 568 berths that can handle ships larger than 10,000 tons were completed. The number of telecommunications users was increased by 494 million. All of the above measures effectively improved the capacity of the energy, transportation and communications sectors and strengthened the basis for further economic and social development.

　　我们高度重视资源节约和环境保护。“十一五”规划纲要把节能和减排作为约束性目标。近两年，又提出并实施节能减排综合性工作方案，建立节能减排指标体系、监测体系、考核体系和目标责任制，颁布了应对气候变化国家方案。依法淘汰一大批落后生产能力，关停小火电2157万千瓦、小煤矿1.12万处，淘汰落后炼铁产能4659万吨、炼钢产能3747万吨、水泥产能8700万吨。启动十大重点节能工程。燃煤电厂脱硫工程取得突破性进展。中央政府投资支持重点流域水污染防治项目691个。继续推进天然林保护、京津风沙源治理等生态建设，五年累计退耕还林、植树造林3191万公顷，退牧还草3460万公顷。加强土地和水资源保护，五年整理复垦开发补充耕地152.6万公顷。经过各方面努力，节能减排取得积极进展，2007年单位国内生产总值能耗比上年下降3.27%，化学需氧量、二氧化硫排放总量近年来首次出现双下降，比上年分别下降3.14％和4.66％。节约资源和保护环境从认识到实践都发生了重要转变。

　　We gave high priority to conserving resources and protecting the environment. Obligatory targets for saving energy and reducing emissions were set in the Outline of the Eleventh Five-Year Plan for National Economic and Social Development. In the last two years, a general work plan for saving energy and reducing emissions was introduced; a system of targets for this work, a monitoring system, a system for assessing work performance and a system of accountability for reaching the targets were put in place; and a state plan to address climate change was promulgated. A large number of backward production facilities were shut down in accordance with the law. They include small thermal power plants with a total capacity of 21.57 million kW, 11,200 small coal mines, backward iron smelting facilities with a total capacity of 46.59 million tons, backward steel plants with a total capacity of 37.47 million tons and cement plants with a total capacity of 87 million tons. Ten major energy-saving projects were launched. Breakthroughs were made in carrying out desulfurizing projects for coal-fired power plants. The central government provided financial support for 691 projects to prevent and control water pollution in major river valleys. Work continued on ecological conservation projects such as those to protect natural forests and control the factors causing sandstorms in Beijing and Tianjin. During the five-year period, the area of farmland retired for forestation and other lands planted with trees amounted to 31.91 million hectares, and grazing land returned to natural grasslands totaled 34.6 million hectares. Protection of land and water resources was strengthened, with a total of 1.526 million hectares of farmland being upgraded, reclaimed or newly developed over the last five years. Thanks to the strong efforts of the whole country, encouraging progress was made in conserving energy and reducing emissions. In 2007 there was a 3.27% year-on-year drop in energy consumption per unit of GDP, and for the first time in recent years there was a reduction in both chemical oxygen demand and the total emission of sulfur dioxide, with the former down 3.14% and the latter down 4.66% from the previous year. People became more aware of the importance of conserving resources and protecting the environment and made greater efforts in this area.

　　我们实施区域发展总体战略。西部大开发继续推进，五年中央财政支持重点建设投资2800多亿元，基础设施和生态环境建设取得明显进展，重点地区和特色优势产业加快发展。制定和实施振兴东北地区等老工业基地战略，大型粮食基地建设不断加强，国有企业改革改组改造取得突破性进展，重大技术装备国产化成效显著，资源型城市经济转型试点进展顺利，老工业基地焕发出新的生机和活力。制定和实施促进中部地区崛起政策措施，粮食主产区现代农业建设步伐加快，重要能源原材料工业、装备制造业和综合交通运输体系进一步发展。东部地区继续率先发展，经济实力和整体素质显著提升。经济特区、上海浦东新区、天津滨海新区开发开放加快推进。这些重大举措，促进了区域经济合理布局和协调发展。

　　We followed a master strategy for regional development. Continued progress was made in the large-scale development of the western region, with central government financial support for key projects totaling over 280 billion yuan over the last five years. Substantial progress was made in infrastructure development and ecological and environmental conservation projects, and development of key areas and industries with local advantages was accelerated. We formulated and implemented the strategy of rejuvenating the old industrial bases such as northeast China, increased efforts to develop large grain production bases, made breakthroughs in reforming, reorganizing and upgrading SOEs, made major progress in using domestically-produced key equipment in place of imports, and made smooth headway in the trial to transform the economies of cities dependent on resource exploitation. The old industrial bases are now showing new signs of vitality. We formulated and implemented policies and measures to promote development in the central region and made accelerated progress in developing modern agriculture in major grain-producing areas. Major energy and raw material industries, the equipment manufacturing industry and the overall transportation system were further developed. The eastern region continued to lead in development, with significant gains in economic strength and overall improvement. The process of developing and opening up the special economic zones, the ShanghaiPudongNew Area and the TianjinBinhaiNew Area was accelerated. These major measures promoted a better distribution and more balanced development of regional economies.