Box 6: Major Progress in Reforms to Promote the Market-Based Allocation of Production Factors

Land	Ÿ Review and approval: Provincial-level governments were granted the authority to approve the re-designation of all types of agricultural land for development purposes, save for permanent basic cropland; a number of provinces also carried out trials of the approval process for the re-designation of permanent basic cropland for construction and for the requisition of land on behalf of the State Council. Ÿ Planning and management: We based quotas for the allocation of land for construction on the implementation of useful and effective projects, linked increases in the amount of land for construction to the use of existing land for such purpose, and intensified efforts to deal with instances of land being approved for development but not opened up for bidding or being left idle. Ÿ Residential land: We established collective ownership rights, protected the qualification rights and residential property rights of rural residents, and allowed more flexibility in the transfer of land-use rights. 104 counties (including county-level cities and districts) and 3 prefecture-level cities were included in the latest round of trials.
Labor	Ÿ Housing provident funds: We coordinated the development of funds in the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, and the Chengdu-Chongqing economic zone.   Ÿ Inter-regional recognition: We explored measures for mutually recognizing and sharing information about professional qualifications, titles, and periods of continuing education in the Beijing-Tianjin-Hebei, Greater Bay Area, and Yangtze River Delta regions. Ÿ Attracting international talent: We permitted eligible candidates with overseas professional qualifications in finance, architecture, planning, design, and other disciplines to offer their services in pilot free trade zones once they had completed the relevant filing procedures.
Capital	Ÿ Key institutions: We instituted a registration-based IPO system for the ChiNext stock market, steadily advanced the comprehensive reform of the new third board, improved the regulations on refinancing, furthered reforms to make the exchange rate more market-based, and improved the floating exchange rate system. Ÿ Basic infrastructure: We connected the infrastructure of the interbank and exchange bond markets to enable qualified investors from one market to trade bonds on both, thus making bond market trading freer and more efficient. Ÿ Opening up of the financial sector: We removed all restrictions on the negative list for foreign investment related to the financial sector, and simplified the process of investing in China’s capital markets for foreign investors.
Technology	Ÿ Ownership and permanent use rights for on-the-job scientific and technological output: We selected 40 higher-education institutions and research institutes on a per-sector basis to take part in three-year trials, granting researchers the right of use for outputs they produce on the job for a minimum of 10 years. Ÿ Agencies for technology transfer and talent development: We established 11 national technology transfer regional centers, more than 40 technology transfer markets, 453 national agencies for technology transfer, and 36 bases for training relevant personnel, with a view to boosting China’s technology transfer market and capabilities. Ÿ The alignment of technology and capital: We established venture capital sub-funds to support the application of scientific and technological advances, encouraged commercial banks to accept intellectual property rights and future earnings as collateral for financing, and steadily promoted trials of both insurance compensation for newly-developed major technological equipment and insurance cover for initial applications of new materials.
Data	Ÿ Policies and legislation: We solicited opinions from the public on the drafts of the data security law and the personal information protection law, accelerated the drafting of the management provisions for online data security, and made steady progress in the multi-category and multi-level management of data. Ÿ Standardized data collection: We formulated national standards for protecting personal information in relation to online shopping, facial recognition, and other related activities. Ÿ Resource integration and protection: We established an open national platform for sharing public data and promoted the orderly sharing of government data.

 

2) We promoted the reform of state-owned enterprises (SOEs).

We vigorously implemented the three-year action plan for SOE reform. We essentially completed the tasks of relieving SOEs of their obligations to operate social programs and of resolving other longstanding problems concerning SOEs, prudently yet steadily advanced mixed ownership reform, and ensured that the supervision of state capital became more systemic, targeted, and effective. We also made new strides toward developing market-oriented operating mechanisms.

As part of the reform of key sectors, we relieved power grid enterprises of some of their competitive operations such as equipment manufacturing. The China Oil and Gas Pipeline Network Corporation successfully took charge of China’s oil and gas network assets, personnel, and operations, thus creating an interconnected national network of pipelines that will be opened up in a more equitable manner to non-public capital and market entities.

3) We continued to improve the development environment for private enterprises.

We introduced a range of policies and measures to ease market access, strengthen financial support, create an environment of fair competition, and protect the legitimate rights and interests of private businesses and their owners. We gradually lifted restrictions on private businesses engaging in the exploration and development of oil and gas resources, and supported the involvement of private businesses in the development of transportation infrastructure.

We worked speedily to set up a long-term mechanism for ensuring that commercial banks have the confidence, willingness, and ability to loan to private enterprises, and achieved significant results with regard to the settlement of overdue payments owed to private, small, and medium businesses. We made progress on abolishing policies and measures that disrupt China’s unified national market and impinge on fair competition, and attained positive results in the campaign to resolve property rights disputes involving the government.

4) We made continuous improvements to the business environment.

We pushed ahead with the reform to streamline administration and delegate power, improve regulation, and upgrade services. We fully enforced the Regulations on Improving the Business Environment, and carried out business environment evaluations in some cities. The 2020 Report on China’s Business Environment was published.

We carried out extensive reform of the construction project approval system, and largely completed work on a national unified system for project approval and management. We continued to improve the business environment with regard to public bidding and government procurement and introduced online trading for all public resources. The Negative List for Market Access (2020) was published, with the number of listed items being reduced to 123 from the 131 items on the previous version. Restrictions on market access thus continued to be loosened.

5) We accelerated the pace of reform in key areas such as public finance and taxation, the financial sector, and pricing.

We published and implemented the reform plan for dividing fiscal powers and expenditure responsibilities between the central and local governments in such areas as ecological conservation, public cultural services, natural resources, and emergency relief services. We implemented a registration system for the public issuance of all corporate and company bonds, increased the resilience of the capital market and ensured its continued stability, and made the financial sector more adaptable, competitive, and inclusive. We revised the Central Government Pricing Catalog, shortening it by 30%, and deepened price reforms in key areas such as electric power, oil and gas, public utilities, and agricultural products. Reform and opening up in the service sector was stepped up, and reform of the electric power, oil, and gas systems was expanded.

  10. We persistently broadened and deepened opening up, and worked faster to develop new institutions for an open economy.

  We took solid steps to cope with the uncertainties of the Covid-19 pandemic and the external environment, and continued to open up more sectors of the economy in a more thorough fashion to more countries.

1) Greater efforts were made to ensure stable foreign trade and foreign investment.

Last year, China’s total volume of trade in goods reached 32.2 trillion yuan, and foreign investment totaled US$ 144.4 billion. We expanded the coverage of export credit insurance, increased export credit supply, and improved the export tax rebate policy. We kept processing trade stable, and supported the innovative development of border trade.

The development of new forms and models of trade picked up pace with the establishment of 46 additional integrated experimental zones for cross-border e-commerce, the expansion of trials on retail import to 86 cities and throughout Hainan Island, and the launching of 17 new market procurement trade trials. We actively explored new forms of business such as maintenance services in bonded areas and off-shore trade. We successfully hosted the third China International Import Expo and the China International Fair for Trade in Services, and held the 127th and 128th China Import and Export Fair online. Steady progress was made in jointly implementing phase one of the China-US economic and trade agreement.

The two editions of the 2020 negative list for foreign investment regarding the whole country and regarding pilot free trade zones were reduced to 33 and 30 items respectively, with restrictions on market access being further relaxed for services, manufacturing, and agriculture. We issued the 2020 edition catalog of industries open to foreign investment, expanding the scope of investment. We formulated a negative list for foreign investment in the Hainan Free Trade Port, and promoted a higher standard of liberalization and facilitation of investment in this area. Beijing saw a new round of comprehensive trials for further opening up the service sector.

2) Steady progress was made in advancing the Belt and Road Initiative (BRI).

We coordinated efforts to contain Covid-19 and to develop overseas BRI projects, with outbound investment generally remaining stable. China signed the cooperation plan with the African Union on jointly promoting the development of the BRI. International cooperation on production capacity and third-party market cooperation were continuously enhanced. In developing the China-Pakistan Economic Corridor, the two countries worked together to successfully coordinate epidemic response and economic development, thereby providing a model of coordination for other BRI projects. Positive results were achieved in the building of the Kyaukpyu Special Economic Zone in Myanmar and the China-UAE Demonstration Park for Industrial Production Cooperation, and construction progressed steadily on projects to improve connectivity, such as the Jakarta-Bandung high-speed line and the Hungary-Serbia, China-Laos, and China-Thailand rail lines.

We intensified efforts to advance the healthy, green, and digital Silk Road initiatives. China-Europe freight train services continued to develop smoothly, with over 12,000 trips being made despite difficulties, a year-on-year increase of 50%, and the ratio of loaded containers reached 98.4%.

3) Breakthroughs were made in opening-up pacesetter projects.

We issued a comprehensive plan for developing the Hainan Free Trade Port, and worked faster to establish the policy and institutional framework for its development. An additional three pilot free trade zones were set up, including one in Beijing, and the pilot free trade zone in Zhejiang was expanded. Over the course of the past year, 37 institutional innovation practices from pilot free trade zones were applied across the country, bringing the total number of such practices to 260. A total of 12 new integrated bonded areas were established, and another 7 special customs regulation zones were upgraded into integrated bonded areas. Key pilot zones for development and opening up were set up in Baise, Guangxi and Tacheng, Xinjiang.

4) New strides were made toward greater participation in global economic governance.

China has actively introduced its stance and approaches through important multilateral platforms including the BRICS, the UN, the G20, and APEC. We made progress toward the formal signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement, the China-Cambodia Free Trade Agreement (FTA), and the China-EU Geographical Indications Agreement. The China-Mauritius Free Trade Agreement was put into force as scheduled. Negotiations on the China-EU Comprehensive Agreement on Investment were completed on time, and talks on FTAs with Norway and Moldova were accelerated. China proposed the Global Initiative on Data Security, and promoted international cooperation and exchanges with regard to the digital economy. China has worked actively to develop global partnerships, advanced coordination and cooperation with other major countries, strengthened relations with neighboring countries, and enhanced solidarity and cooperation with other developing countries.

11. We stepped up efforts to ensure that people’s basic needs were met.

To address the impact that Covid-19 has had on people’s wellbeing, we scaled up investment and ensured full implementation of policies, thereby establishing a more effective social safety net and helping our people live happier and more secure lives. Per capita disposable personal income nationwide increased by 2.1% in real terms.

1) The employment-first policy was thoroughly and effectively implemented.

Employment is pivotal to people’s wellbeing. Efforts to protect market entities are also intended to stabilize employment and maintain living standards. We therefore strengthened support for enterprises, lightening their burden and helping them to keep their payrolls stable and create more jobs. We provided support and assistance to market entities including key industries, to MSMEs, and to self-employed individuals affected by the epidemic. We also worked to increase employment by expanding effective investment.

We worked to ensure employment for key groups through multiple channels, and supported innovation and business startups as a way to increase employment. We carried out job creation demonstration initiatives through boosting innovation and entrepreneurship in social services such as domestic services, elderly care, childcare, rural tourism, and home appliance recycling. We continued to support migrant workers and city dwellers in returning home and moving to the countryside to start businesses.

We supported flexible employment through diversified channels. We scaled up recruitment in individually-owned businesses, SOEs, public institutions, and community-level programs, and enlarged graduate education enrollment, military recruitment, and internships. We encouraged college graduates to enter market-based employment. We coordinated efforts to ensure employment for key groups such as demobilized military personnel and migrant workers. We supported the establishment of 53 regional public training centers in order to help members of key groups upgrade their skills.

2) Efforts to build a Healthy China made solid headway.

The Healthy China initiative was launched, and extensive activities to improve public sanitation were carried out. A comprehensive effort was made to prevent and reduce teenage myopia. Elderly care and childcare services were improved, and people’s health literacy has improved markedly.

Construction on regional medical centers got under way, and both the development of medical consortiums and comprehensive reforms in county-level public hospitals proceeded smoothly, with 84% of county-level hospitals either meeting or exceeding standards. It is estimated that the number of beds in medical and healthcare institutions has reached 6.5 per 1,000 people.

Continuous progress was made toward the development of a modern hospital management system, and markups on all consumables sold by public medical institutions were abolished. Coordination between the provision of medical services and medical education was also strengthened. The regional registration system for physicians was improved, with the number of active physicians (physician assistants) and general practitioners estimated at 2.9 per 1,000 people and 2.83 per 10,000 people respectively.

Reforms to centralize the procurement and use of medicines and medical consumables were carried forward in a coordinated way, and solid steps were taken to stabilize the supply and prices of in-demand medicines. The number of essential medicines was increased from 520 to 685.

3) The social security system was further improved.

The number of people covered by the basic old-age insurance schemes for urban employees and for rural and non-working urban residents reached 999 million. The centrally-regulated share of enterprise employees’ basic old-age insurance funds was raised from 3.5% to 4.0%, and the collection and spending of funds was jointly managed at the provincial level. Basic pension benefits for enterprise retirees were steadily increased.

Basic medical insurance schemes for urban employees and for rural and non-working urban residents along with the major disease insurance system were all improved. Significant results were achieved in guaranteeing medical insurance for poor people, and steady progress was made in making dynamic adjustments to the catalog of medicines covered by medical insurance.

Workers’ compensation benefits were paid out to 1.85 million employees who had suffered work-related injuries and their dependents. We expanded the scope of unemployment insurance, provided temporary unemployment subsidies, and extended such subsidies to more unemployed migrant workers on a time-limited basis. In 2020, 13.37 million unemployed people received unemployment benefits from varying insurance schemes. A total of 104.2 billion yuan from unemployment insurance funds was refunded in order to help 6.08 million enterprises maintain stable employment, benefiting 156 million employees.

We worked harder to ensure that people’s basic needs were met, expanding the coverage of subsistence allowances to all those in need. We introduced the policy on extending the scope of social assistance, promptly increased social security assistance and benefit payments in step with price increases, and stepped up assistance to people who fell into poverty due to Covid-19 and to uninsured workers who had lost their jobs, making sure that assistance could reach all those in need. Subsistence allowances were extended and basic assistance to persons living in extreme poverty was provided to approximately six million people affected by the epidemic, and more than eight million applications for temporary assistance were approved.

We pushed forward with the renovation of old urban residential communities nationwide, and began the renovation of 40,300 communities, involving 7.36 million households. We consistently improved the housing support system, and began renovations on 2.09 million units of housing in run-down urban areas. We continued to develop the housing rental market in medium and large cities, and worked to help disadvantaged urban residents solve their housing problems.

We took effective and orderly steps to prevent floods and provide disaster rescue and relief.

4) Efforts were redoubled to address inadequacies in public services, strengthen areas of weakness, and improve the quality of services.

We moved forward with the instituting of national standards for basic public services. The gross enrollment ratio for preschool education, the retention rate in nine-year compulsory education, and the gross enrollment ratio for senior secondary education reached 85.2%, 95.2%, and 91.2% respectively. Regular institutions of higher learning enrolled 9.675 million undergraduate students and 1.107 million graduate students.

We worked to ensure that there are at least one or two fully functioning county-level public hospitals in every county, one health clinic in every town and township, and one village clinic in every administrative village.

  The development of the Great Wall, Grand Canal, Long March and other signature national cultural parks was advanced in a coordinated manner. The per capita area of sports venues is estimated at 2.2 square meters, an increase of 4.8%. Comprehensive public service facilities covered 96.4% of urban communities and 83.7% of rural communities, with the area of public service facilities reaching 34.7 square meters per 100 households.

  We continued to provide living allowances and nursing care subsidies for people with disabilities, benefiting 11.53 million people with disabilities who face financial difficulties and 14.33 million people who suffer from severe disabilities, and put in place an estimated 4,403 service facilities for people with disabilities.

  We further improved the quality and expanded the size of the domestic services sector. The Law on the Protection of Minors was revised, and the rights and interests of women and children were more effectively protected. We promoted the development of service facilities for providing assistance to people living in extreme poverty. We issued the guidelines on promoting the healthy development of elderly care and childcare services and the guidelines on the establishment of a sound comprehensive oversight system to facilitate the high-quality development of elderly care services. We continued to carry out special initiatives for public-benefit elderly care, with the number of nursing home beds of all kinds reaching 8.238 million. We also pushed ahead with the development of public-benefit childcare facilities.

  Overall, China achieved positive economic growth in 2020. Projected targets for employment and CPI were satisfactorily met, a basic equilibrium was maintained in the balance of payments, and indicators of innovation, resource conservation, environmental protection, and people’s wellbeing continued to improve. Last year’s major objectives and tasks for economic and social development were accomplished.

  As a result of five years of persistent effort, the targets and tasks listed in the 13th Five-Year Plan were achieved. A major transformation was achieved in China’s economic growth model. China’s aggregate economic output exceeded 100 trillion yuan for the first time, and personal income growth stayed generally in step with economic growth. Per capita GDP surpassed US$ 10,000, 165 major projects were essentially completed, and the material foundation for our country’s development was further strengthened. A social security system covering all urban and rural residents was put in place, considerable headway was made in ensuring the provision of equitable, quality education, and ecological conservation also registered significant progress. China’s economic strength, scientific and technological capabilities, composite national strength, and living standards attained new heights. Historic achievements were therefore made in building a moderately prosperous society in all respects, and we have taken a giant stride toward the rejuvenation of the Chinese nation.

  We owe all of these achievements to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and to the efforts of all localities and departments as they dutifully undertook their responsibilities and effectively implemented the decisions and plans of the Party Central Committee. We also owe all these achievements to the hard work of the Chinese people as they united as one and pressed ahead with a pioneering spirit.

  At the same time, we must recognize that there will be profound and complex changes in both the domestic and international landscape in 2021. The world today is undergoing momentous changes of a kind not seen in a century, and such changes are now happening faster and with added complexity due to the Covid-19 pandemic. Long-standing structural problems remain prominent, while new problems arise from the impact of external factors.

  First, uncertainties in the epidemic situation will impede further economic recovery. Covid-19 continues to spread globally, and the risk of resurgence and the continuing existence of the virus are objective facts. The international community is faced with the dilemma of choosing between resuming work and production and containing the epidemic. There are still areas of weakness in terms of domestic epidemic control, and the prevention of inbound cases and domestic resurgence has been a constant concern for our country.

  Second, a complex and volatile external environment may affect the stability of China’s economy. The global economy is expected to gradually recover, but recovery will be neither stable nor balanced. Macro-economic policies adopted by major economies such as quantitative easing are producing spillovers. Global industrial and supply chains are becoming increasingly region and nation-based, and unilateralism and protectionism are continuing to spread. There is still an array of external variables hindering the steady recovery of China’s economy.

  Third, the foundations for our economic recovery have yet to be strengthened. Effective demand both in and outside China remains weak, consumer spending is still constrained, growth in investment needs to be sustained, and the foundations for continued recovery of exports are far from strong. Micro, small, and medium enterprises and self-employed individuals are experiencing many difficulties. Most industries and enterprises are still recovering from the shock of Covid-19, and they face many problems in the resumption of work and production that are impeding market circulation and dynamic equilibrium in supply and demand.

  Fourth, there are many issues obstructing the creation of new growth drivers. Economic transformation and upgrading along with innovation-driven development are being held back. Keeping industrial and supply chains stable remains a challenging task, and there are still acute bottlenecks hampering our development. The transformation and upgrading of traditional industries is fraught with challenges, the unified domestic market requires further development, and the distribution of resources, production factors, and production capacity need to be improved.

  Fifth, there are security risks in key areas which cannot be ignored. Keeping employment stable remains a challenge. Notable imbalances exist between government revenue and expenditure in some localities. Primary-level governments find it hard to ensure basic living needs, the payment of salaries, and normal functioning. The need to make repayments on local government debts persists. The situation remains challenging with regard to forestalling and defusing financial risks. Enterprises are experiencing greater difficulties in debt repayment. Food and energy security both face new challenges. Improvements in the environment have yet to be consolidated, and there are still quite a few points of weakness in our ability to guarantee people’s wellbeing in terms of education, healthcare, elderly services, and childcare.

  In addition, there is still room for improvement in our work. For example, we need to further improve our capacity for promoting high-quality economic growth and for creating a new pattern of development. Our policies need to be better coordinated, and the implementation of these policies can be made more effective.

  Overall, although we face unprecedented and significant challenges of ever greater complexity, we are also presented with unprecedentedly promising strategic opportunities, and there are more opportunities than challenges. China possesses the notable strengths of the CPC’s leadership and its system of socialism with Chinese characteristics. Our economy’s long-term positive momentum remains unchanged, and our country is still in an important period of strategic opportunity for development. We have the confidence, foundation, and ability to seek opportunities amid crises and turn challenges into opportunities, and thus to continue to open up new prospects for China’s economic and social development.

II. Overall Requirements, Main Objectives, and Policy Orientations
for Economic and Social Development in 2021

 

  The year 2021 is of particular importance in China’s modernization drive. This year, we will launch the 14th Five-Year Plan and embark on a new journey to build China into a modern socialist country in all respects. Our economic work this year will thus take on added importance.

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.