II. Main Objectives and Tasks for the Twelfth Five-Year Plan Period

We have drawn up the Twelfth Five-Year Plan for National Economic and Social Development (draft) in accordance with the Proposal of the CPC Central Committee for Formulating the Twelfth Five-Year Plan for National Economic and Social Development and submitted it to you for your deliberation and approval.

The Twelfth Five-Year Plan period is crucial for building a moderately prosperous society in all respects and for deepening reform and opening up and speeding up the transformation of the pattern of economic development. From an international perspective, world multipolarization and economic globalization are deepening, and peace, development and cooperation remain the current of the times. The global financial crisis is having far-reaching effects; world economic restructuring is accelerating; profound changes are taking place in global economic governance; breakthroughs in scientific and technological innovation and industrial transformation are on the horizon, and the overall strength of developing countries, especially emerging market economies, is increasing. From a domestic perspective, factors favoring China’s development and the positive long-term development trend have not changed. Industrialization, informationization, urbanization, marketization and internationalization are all intensifying; there is huge potential demand in the market; the supply of funds is ample; the overall scientific and educational level of the people is rising; the quality of the workforce is improving; infrastructure is getting better by the day; the government's ability to exercise macro-control and respond to major challenges has increased significantly; and society remains stable overall. Looking at the overall international and domestic situations, we have concluded that China's development is still in an important period of strategic opportunities.

We must hold high the great banner of socialism with Chinese characteristics, take Deng Xiaoping Theory and the important thought of Three Represents as our guide, thoroughly apply the Scientific Outlook on Development, adapt to the latest changes in the domestic and international situations, and satisfy the new expectations of the people of all ethnic groups for a better life. Taking scientific development as the theme and accelerating transformation of the pattern of economic development as the main thread, we need to deepen reform and opening up; ensure and improve the people's wellbeing; consolidate and expand upon the success of our efforts to respond to the impact of the global financial crisis; promote long-term, steady and rapid economic development and social harmony and stability; and lay a solid foundation for building a moderately prosperous society in all respects.

We will propel economic development to a new level. We have set a target of 7 percent annual increase in the economy over the next five years with significant improvement in the quality and performance of economic growth. Based on 2010 prices, the country’s GDP in 2015 should exceed 55 trillion yuan. We will continue to strengthen and improve macro-control; keep the overall level of prices basically stable; integrate short-term control policies with long-term development policies; adhere to the strategy of expanding domestic demand; fully tap the huge potential of domestic demand; and more quickly get economic growth to be driven by a balanced mix of consumer spending, investment and exports.

We will accelerate the transformation of the pattern of economic development and economic restructuring. We will adhere to the new path of industrialization with Chinese characteristics, strive to fully integrate informationization with industrialization, upgrade the manufacturing industry, and foster and develop strategic emerging industries. We will accelerate the development of the service sector and raise its value-added contribution to GDP by 4 percentage points. We will actively yet prudently carry out urbanization, increase its level from 47.5 percent to 51.5 percent, improve its pattern and forms, and constantly work to raise its quality. We will continue to strengthen infrastructure, and further strengthen the foundation for economic and social development. We will work hard to develop modern agriculture and accelerate the development of a new socialist countryside. We will thoroughly implement the master strategy for regional development and the strategy of development priority zones, and gradually achieve equality of basic public services. We will promote positive interaction between urban and rural areas and among regions, and the balanced development of primary, secondary and tertiary industries.

We will work hard to develop social undertakings. We will continue to give top priority to education, and steadily raise the educational level of the people. We will adhere to the principle of making innovations and leapfrog advances in key areas supporting development and creating a better future; improve the system of and support policies for scientific and technological innovation; and strive to make major scientific and technological breakthroughs. We will increase spending on R&D to 2.2 percent of GDP and promote the conversion of advances in science and technology into actual productive forces. In order to meet the demands of modernization, we will strengthen personnel training and strive to develop a large number of high-caliber personnel. We will vigorously strengthen cultural development and make another great stride forward in the reform and development of culture in order to meet the ever-growing intellectual and cultural demands of the people. We will work hard to develop sports. We will further deepen reform of the pharmaceutical and healthcare systems, improve the basic medical and health care systems, and more quickly reach the goal of making basic medical and health services available to all citizens. We will make innovations in social administration systems and mechanisms, improve the legal and institutional bases and the capacity of social administration, and ensure society is full of vitality, harmonious and stable.