Delivered at the Fourth Session of the 12th National People’s Congress of

the People’s Republic of China on March 5, 2016

Li Keqiang

Premier of the State Council

Esteemed Deputies,

On behalf of the State Council, I will now report to you on the work of the government for your deliberation and approval. I invite comments on my report from the members of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

Let me start with a review of the work we did in 2015.

In the past year, China has encountered many difficulties and challenges in its development. However, under the leadership of the Central Committee of the Communist Party of China (CPC) headed by General Secretary Xi Jinping, and with confidence and courage, all the people of China have worked to overcome obstacles and have pressed ahead with a pioneering spirit. As a result, progress has been achieved and stability ensured in economic and social development, the main tasks and targets for the year have been fulfilled,and major achievements have been made in reform, opening up, and socialist modernization.

■The economy operated within an appropriate range.

GDP reached 67.7 trillion yuan, representing an increase of 6.9% over the previous year—a growth rate faster than that of most other major economies. Food crop production increased for the 12th year in a row. Consumer prices grew slowly. Of particular note, the employment situation overall remained stable, with 13.12 million new urban jobs created over the course of the year, surpassing the year’s target and becoming an economic highlight.

■Encouraging progress was made in structural adjustment.

The service sector as a proportion of GDP rose to 50.5%,accounting for more than half for the first time. The contribution of consumption toward economic growth reached 66.4%. High-tech industries and equipment manufacturing grew faster than other industries. Energy consumption per unit of GDP fell by 5.6%.

■New driving forces for development grewrapidly.

Further progress was made in implementing the strategy of innovation-driven development,the penetration of the Internet into all industries picked up pace, and emerging industries grew rapidly. Business startups and innovations by the general public flourished, with the number of newly registered businesses rising by 21.6% in 2015, or an average of 12,000new businesses per day. New driving forces played a major role in keeping employment stable and pushing ahead industry upgrading, and are now driving