Report on the implementation of the 2020 plan for national economic and social development and on the 2021 draft plan for national economic and

REPORT ON THE IMPLEMENTATION OF THE 2020 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2021 DRAFT PLAN FOR NATIONAL ECONOMIC AND

SOCIAL DEVELOPMENT  

 

Delivered at the Fourth Session of the 13th National People’s Congress

on March 5, 2021

National Development and Reform Commission

Esteemed Deputies,

The National Development and Reform Commission has been entrusted by the State Council to deliver this report on the implementation of the 2020 plan, and on the 2021 draft plan for national economic and social development to the present Fourth Session of the 13th National People’s Congress (NPC) for your deliberation and approval. The Commission also invites comments from members of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

 

Box 3: Completion of the 13th Five-Year Plan’s Construction Task for the

Overall Requirements

To effectively promote economic and social development in 2021, we must, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and implement all guiding principles from the Party’s 19th National Congress and the 19th Party Central Committee’s second through fifth plenary sessions.

We must remain committed to the general principle of pursuing progress while ensuring stability, ground our efforts in the new development stage, put into practice the new development philosophy, and create a new pattern of development.

We need to take promoting high-quality development as the general aim, furthering supply-side structural reform as the main task, and reform and innovation as the key source of momentum for our endeavors, and make satisfying the people’s growing needs for a better life our fundamental goal.

We must continue to apply systems thinking, consolidate and expand the achievements of the Covid-19 response and economic and social development, and better coordinate development and security. We need to take solid and comprehensive steps to ensure stability on six key fronts and maintain security in six key areas.

We need to implement macro policies in a targeted and systemic way and keep major economic indicators within an appropriate range. We need to continue to expand domestic demand, strengthen science and technology as strategic support for development, pursue high-standard opening up, and ensure social harmony and stability.

By achieving the aforementioned, we will be able to set the stage for the 14th Five-Year Plan and celebrate the centenary of the Communist Party of China with outstanding accomplishments.

In carrying out specific tasks, we need to focus on the following five aspects.

First, we must continue to follow the general principle of pursuing progress while ensuring stability. We must maintain our strategic resolve and keep major economic indicators within an appropriate range, thereby securing people’s wellbeing, allowing the people to have a greater sense of fulfillment, happiness, and security, and providing the conditions needed to get the 14th Five-Year Plan off to a good start.

Second, we must continue to respond effectively to Covid-19. We must prevent any large inflow or domestic resurgence of infection, get used to promoting economic and social development along with routine Covid-19 control, and consolidate and build on our achievements in containing the virus.

Third, we must remain committed to the new development philosophy and create a new pattern of development. When implementing the 14th Five-Year Plan, we must apply the new development philosophy throughout the whole development process and in all sectors. We should execute the strategy of expanding domestic demand and intensify supply-side structural reform in a coordinated way, build up China’s scientific and technological strength, push ahead both with adjustments to the economic structure and with industrial upgrading, and promote the green transformation of every area of economic and social development. We should work faster to create a new pattern of development that focuses on domestic circulation and features positive interplay between domestic circulation and international circulation.

Fourth, we must continue to deepen reform and opening up. We should remove all institutional barriers and promote high-standard opening up.

Fifth, we must continue to apply systems thinking. We should give full consideration to both domestic and international imperatives, and well coordinate development and security. We should focus on guarding against and mitigating major risks and on tackling major challenges, and balance the quality, structure, scale, speed, performance, and security of development.

Main Objectives

In accordance with the aforementioned overall requirements, and in accordance with the principles of staying firmly rooted in the present while looking ahead to the future, doing everything in our capacity, and balancing what is required with what is possible, we have set the following main objectives for economic and social development in 2021.

§ GDP growth of over 6%

In setting this goal, we have taken the following factors into account. First, this target is in line with China’s economic development goals for the 14th Five-Year Plan period, and is feasible given the comparatively low base rate of growth in 2020. At the same time, we need to remain mindful of worst-case scenarios and keep market expectations stable. Overall, such a target is conducive to ensuring steady, sustainable economic growth. Second, in 2021, the first year of the 14th Five-Year Plan period, as policies and measures are to gradually return to normal following our effective response to Covid-19, a growth target above 6% will guide all sectors to focus on promoting reform, innovation, and high-quality development. Third, we have also considered the conditions for recovery this year. As economic performance returns to normal and stays within an appropriate range, the necessary conditions will be present for this goal to be realized.

§ Over 11 million new urban jobs, and a surveyed urban unemployment rate of approximately 5.5%

The development of the Chinese economy and the service sector, the increased capacity of economic growth to create jobs, and the effective implementation of the policies for improving the business environment and for supporting flexible employment in particular will provide a solid grounding for attaining the target of creating over 11 million new urban jobs.

With regard to the surveyed urban unemployment rate, we have set a target that is 0.5 percentage points lower than the 2020 target, thereby demonstrating our determination to stabilize employment and our policy focus of putting employment first and ensuring job security. As economic performance returns to normal and as efforts to stabilize employment intensify, it should be possible to limit the surveyed urban unemployment rate to approximately 5.5%.

Over the past two years, the surveyed urban unemployment rate has become mature enough to accurately reflect the employment situation and replace the registered urban unemployment rate, and therefore we will not set an annual target for the latter at the national level in 2021. Local governments can still decide whether to set a target for the registered urban unemployment rate based on local circumstances.

§ CPI increase of approximately 3%

A comprehensive assessment of the carryover effect on prices from 2020 and of new inflationary factors in 2021 shows that, overall, China will face an upward pressure on CPI this year that will be smaller than that of last year. After also considering possible increases in the prices of grain, energy, and other major commodities, as well as the need to keep market expectations stable, we have projected a CPI increase of around 3%.

§ Steady growth in personal income

This objective is a key one if we are to realize common prosperity, meet the people’s growing needs for a better life, and embody the people-centered development philosophy. With the performance of businesses improving, and with policies and measures to increase the income of low-income earners and to step up income redistribution beginning to take effect, this year’s target for personal income growth is attainable.

§ Stability in the volume of imports and exports, accompanied by an increase in quality, and a basic equilibrium in the balance of payments

This objective is an important one if we are to properly respond to the complex, changing international situation, create a new pattern of development, and promote high-standard opening up. It is also an attainable one given that China’s industrial and supply chains are steadily recovering, our exports are becoming more competitive, and new forms of business like cross-border e-commerce are flourishing.

§ A drop of around 3% in energy consumption per unit of GDP, and continued reductions in the discharge of major pollutants

We have considered both what is needed and what is possible in setting the target of an approximate 3% drop in energy consumption per unit of GDP. This target is in line with goals of the 14th Five-Year Plan and will help ensure China reaches peak carbon dioxide emissions by 2030.

§ Grain output above 650 million metric tons

Food security is closely linked to China’s development and stability and to the people’s wellbeing. After comprehensive consideration of China’s domestic demand and overall production capacity, the changes in the international food market, our desired degree of self-sufficiency, and the targeted increase in output in 2021, we have set the target of maintaining grain output above 650 million metric tons. This will allow us to keep market expectations stable and to consolidate the foundations upon which food security rests. We will also keep total crop acreage stable and strive to increase yield per unit area.

REPORT ON THE IMPLEMENTATION OF THE 2020 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2021 DRAFT PLAN FOR NATIONAL ECONOMIC AND

SOCIAL DEVELOPMENT  

 

Delivered at the Fourth Session of the 13th National People’s Congress

on March 5, 2021