When we observe and evaluate economic development, we should look not only at the results but also at the process. In 2013, the international financial crisis entered its sixth year. Although the world economy showed signs of recovery, the foundation for recovery remained fragile: unemployment in developed countries was high, major technological innovations capable of driving overall growth were lacking, the momentum for recovery was still relatively weak, and the withdrawal of earlier stimulus policies added uncertainties and risks to the recovery. Growth momentum in emerging market economies generally weakened, with growth rates significantly below expectations. During the year, the characteristics of China's domestic economic transition became more pronounced, the contradiction of overcapacity became prominent, enterprises faced more difficulties in production and operation, there were many constraints on expanding effective domestic demand, and downward pressure on the economy was relatively strong. Facing an extremely complex domestic and international economic situation, the CPC Central Committee and the State Council maintained their composure, responded calmly, adhered to the general principle of seeking progress while maintaining stability, actively innovated the methods of macro-control, defined a reasonable range, stabilized policies, combined short-term and long-term measures, and coordinated efforts to stabilize growth, adjust the structure, and promote reform. Without introducing major stimulus policies, they achieved steady and relatively rapid economic growth. This achievement was truly hard-won.

    When we observe and evaluate economic development, we should look not only at ourselves but also compare with the world. Internationally, in 2013 China's economic growth rate was higher not only than those of developed economies but also than those of other BRICS countries and emerging economies. In the first, second, and third quarters of 2013, the U.S. economy grew by 1.3%, 1.6%, and 2.0% year on year, respectively; the euro area contracted by 1.2% in the first quarter, 0.6% in the second quarter, and 0.4% in the third quarter year on year; Japan grew by 0.1% in the first quarter, 1.2% in the second quarter, and 2.4% in the third quarter year on year; in the third quarter, India grew by 4.8%, South Korea by 3.3%, Malaysia by 5.0%, and Indonesia by 5.6% year on year. Domestically, the 7.7% growth rate was flat compared with the previous year, but the increment in GDP created reached 4,937.5 billion yuan, 300.9 billion yuan more than the previous year.

    When we observe and evaluate economic development, we should look not only at reality but also at underlying laws. At the current stage, China's economic growth of 7-8% not only conforms to the current conditions of China's factor supply and energy, resources, and environment, and to the general rule that the potential growth rate of catch-up economies declines after a period of rapid growth, but is also an objective requirement of China's economic development transformation and upgrading. At present, China is in a critical period of transformation and upgrading, and the economy is showing stage-specific characteristics different from the past. The most prominent changes are mainly reflected in five aspects: in terms of development speed, shifting from the ultra-high growth of double digits in the past to relatively rapid growth of 7-8%, with greater emphasis on steady, healthy, and sustainable development; in terms of development mode, shifting from extensive development to intensive development, with greater emphasis on the quality and efficiency of economic development; in terms of development drivers, shifting from a focus on inputs of labor, land, resources, and other factors to innovation-led development, with greater emphasis on scientific and technological progress and innovation in technology, processes, and products; in terms of development structure, greater emphasis on improving the demand structure, optimizing the industrial structure, promoting coordinated regional development, and advancing people-centered urbanization; and in terms of development purpose, greater emphasis on putting people first and enabling the people to share more of the fruits of reform and development. From the perspective of China's current development reality, a moderate pullback in the current economic growth rate is also conducive to eliminating outdated production capacity, improving the efficiency of resource allocation, accelerating the transformation of the economic development mode and structural adjustment, and achieving longer-term and higher-quality development.

    When we observe and evaluate economic development, we should look not only at speed but also at quality. Over the past year, the structure of economic development has tended to improve, and quality and efficiency have steadily increased. Grain output increased for the tenth consecutive year, further consolidating the fundamental position of agriculture. The value added of high-tech industries accounted for 9.9% of the value added of industrial enterprises above designated size, 0.5 percentage points higher than the previous year. For the first time, the value added of the tertiary industry exceeded that of the secondary industry as a share of GDP, rising to 46.1%. The urbanization rate rose by 1.16 percentage points over the previous year to 53.73%. From January to November, national public fiscal revenue grew by 9.9% year on year, and industrial enterprises above designated size achieved a 13.2% increase in profits. For the full year, the per capita net income of rural residents grew by 9.3% in real terms, 2.3 percentage points higher than the real growth rate of per capita disposable income of urban residents, and rural income growth was faster than urban income growth for the fourth consecutive year. The ratio of per capita urban income to per capita rural income narrowed from 3.10 the previous year to 3.03. Overall labor productivity, that is, the ratio of GDP to employed persons, rose by 7.3% over the previous year. In 2013, although economic growth was flat compared with the previous year, new urban jobs reached 13.1 million, exceeding the previous year; the increase in consumer prices was flat compared with the previous year and below the expected target. In terms of the relationships among indicators, growth of more than 7% was coordinated with inflation below 3% and a registered unemployment rate of around 4%, and was matched with growth of 7.5% in total electricity consumption, 6.9% in industrial electricity consumption, and 10% in freight volume.

    When we observe and evaluate economic development, we should look not only at results but also at orientation. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee and the State Council have repeatedly emphasized the need to establish a correct view of political performance, treating indicators and achievements such as improving people's livelihood, social progress, and ecological benefits as important content in assessing officials, and not simply judging heroes by the GDP growth rate. This is a manifestation of the scientific outlook on development and the correct view of political performance in terms of the view of development speed. At present, more and more people have come to deeply understand from the experience and lessons of China's economic development that excessive speed is not conducive to changing the development mode and adjusting the structure. We must not pay lip service to what we claim to favor: as soon as the economic growth rate declines normally and is actively regulated, we become unable to maintain our composure and simply call it "the lowest speed in 14 years." Changing our mindset is not limited to the government; I am afraid everyone must make an effort.