In a recent article, Chinese Premier Wen Jiabao stresses that China will remain at the primary stage of socialism for quite a long time and is facing arduous tasks to develop productivity and to reform its political system and improve the socialist democratic and legal system. Yang Lingling, a professor at the Party School of the Central Committee of the Communist Party of China, explains that, from the perspective of the historical tasks at the primary stage of socialism and taking into account both internal and external circumstances, Wen's judgment is an important clarification of the outlook on scientific development that China is carrying out. Excerpts of Yang's comments follow:

Developing tomorrow's socialism

Since the convening of the 16th National Congress of the Communist Party of China in 2002, great efforts have been made to push forward the country's reform and opening up. China is seeing more political, cultural and social development based on economic development.

In 2006, the economy was further strengthened, with a relatively fast growth rate and stable prices. Thanks to a stable and rapid economic growth rate and further economic restructuring, China's financial revenues reached 3.93 trillion yuan, and its gross domestic product exceeded $2 trillion. Bottlenecks in coal, electricity and oil supply and transport were further eased. With its economy growing at a rate higher than 10 percent for four successive years, China is still able to avoid inflation. The reform in key areas was further expanded. Import and export volume in 2006 totaled $1.76 trillion, foreign direct investment topped $60 billion and China's foreign exchange reserves exceeded $1 trillion. The drive to build a new socialist countryside made steady progress. While the agricultural tax was repealed, 460 million farmers in half of the country's counties were included into the rural cooperative medical service system. Various social undertakings were developing fast and people's living conditions were steadily improved. While urban residents' annual per-capita disposable income hit 11,759 yuan, the per-capita net income of farmers reached 3,587 yuan--the highest growth the past decade has seen.

At the same time, China also scored great achievements in foreign affairs. In 2006, China's diplomacy was more active than ever and its relationship with the United States, Japan, Russia and the European Union was further promoted. China enhanced friendly partnership with its neighbors, pushed its cooperation with other developing countries to a new high, and actively participated in the settlement of international hotspots. The year also saw increasing cultural exchanges between China and the rest of the world.

Despite great achievements, we should also notice various striking problems. A weak agricultural foundation made it difficult for farmers to increase grain production and income. Fixed assets investment was still hefty and the extensive economic growth pattern remained. The energy shortage hampered economic growth, while the target of cutting energy consumption by 4 percent failed. There was huge pressure on the appreciation of the renminbi and problems crucial to the immediate interests of the people were poorly tackled.