Under these circumstances, while preventing unhealthy and uncoordinated development due to overemphasis on economic growth, we should also refrain from intentionally curbing rapid economic growth for fear of problems that are caused by rapid development. Therefore, Premier Wen indicates in his article, "China is and will remain at the primary stage of socialism for some time. This is an underdeveloped period. By 'underdeveloped,' first we mean the underdevelopment of productivity. Therefore, we must stick to the principle of centering on economic development and spare no effort to promote productivity."

Premier Wen's emphasis on the extreme importance of "development" to the country's future enriches Deng Xiaoping's theory that "development is the absolute principle."

Key role of reform and innovation

Premier Wen also calls for great efforts to be made to push forward reform and innovation.

Reform and opening up helps to make the country stronger--it has been proved by our experiences in the past 28 years. Problems do occur in the process of reform and opening up, especially in the accelerated industrialization and urbanization and in our struggle for the fruits of reform. Realistic problems emerge as a result of the ongoing in-depth, broad and tough adjustment of interests among different groups. China's corporate system is still to be developed. The focus should be placed on the reform of the property system and the improvement of corporate governance and R&D capabilities. Besides this, the market system in China needs to be improved. At present, China witnesses serious resource wastage and this is directly related to the improper pricing mechanism for land, water, energy and major mineral resources. Administrative monopoly, regional protectionism, market segmentation, all makes it impossible for commodities to circulate freely across the country, preventing the rational allocation of factors affecting production. The size of investment in China is still large and even used to overly expand for a period of time. There are many reasons for this, but it should be first attributed to the underdeveloped governance and internal control system of China's commercial banks.

Overdue transformation of government's functions resulting in some major problems that relate to people's livelihood remains unsettled. In addition, the uncoordinated urban and rural development is closely related to the long-term dual urban-rural structure.