Following is the full text of the Report on the Implementation of the 2012 Plan for National Economic and Social Development and on the 2013 Draft Plan for National Economic and Social Development, which was submitted on March 5 for review at the first Session of the 12th National People's Congress, the country's top legislature, and was adopted on March 17.

Report on the Implementation of the 2012 Plan for National Economic and Social Development and on the 2013 Draft Plan for National Economic and Social Development

First Session of the 12th National People's Congress March 5, 2013

National Development and Reform Commission

Contents

I. Implementation of the 2012 plan for national economic and social development

II. Overall requirements and major objectives for economic and social development in 2013

III. Major tasks and measures for economic and social development in 2013

Fellow Deputies,

The National Development and Reform Commission has been entrusted by the State Council to submit this report on the implementation of the 2012 plan and on the 2013 draft plan for national economic and social development to the First Session of the Twelfth National People's Congress (NPC) for your deliberation and approval and for comments and suggestions from members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

I. Implementation of the 2012 plan for national economic and social development

Last year, in the face of severe and complicated economic situations abroad and arduous tasks of reform, development and stability at home, all localities and departments followed the decisions and plans of the Central Committee of the Communist Party of China (CPC) and the State Council, and took developing in a scientific way as the underlying guideline and accelerating the change of the growth model as the major task. In accordance with the keynote of making progress while ensuring stability and based on the plan for national economic and social development adopted at the Fifth Session of the Eleventh NPC, we implemented the central leadership's macro-control policies and maintained a good momentum in China's economic and social development. Overall, we successfully implemented the plan for 2012.

1. On the whole the economy operated steadily.

Downward pressure on economic growth increased considerably in early 2012. In response the central leadership sized up the situation, gave higher priority to ensuring steady growth, adopted a number of targeted measures, and yielded the desired results. Preliminary estimates suggest China's gross domestic product (GDP) amounted to 51.9322 trillion yuan, an increase of 7.8%, and 0.3 percentage points higher than the targeted figure. We followed a proactive fiscal policy and increased structural tax reductions, thereby ensuring spending on major areas including those related to the people's wellbeing. National revenue totaled 11.721 trillion yuan, an increase of 12.8%, and the fiscal deficit was 800 billion yuan. We followed a prudent monetary policy, maintained stable, reasonable growth in the money and credit supply, and increased support for key areas and weak links. We granted 8.2 trillion yuan in RMB loans for the year, 732 billion yuan more than the previous year. At the end of 2012, the balance of broad money supply (M2) rose 13.8%. We improved regulation of economic activities, and ensured stable and orderly supplies of coal, electricity, petroleum, gas, and transport. The performance of enterprises steadily picked up, and the profits of large industrial enterprises reached 5.5578 trillion yuan, an increase of 5.3% over the previous year.

Domestic demand played a leading role in achieving stable growth. We further enhanced people's ability to consume, cultivated new areas of high consumption, improved the consumption environment, and got consumption to be the main driving force behind economic growth. Retail sales of consumer goods totaled 21.0307 trillion yuan, an increase of 14.3%, and 0.3 percentage points higher than the target. Investment maintained stable growth, and the structure of investment was optimized. We launched a number of major projects laid out in the Twelfth Five-Year Plan, and accelerated development of infrastructure that has a bearing on people's lives. China's total fixed-asset investment amounted to 37.4676 trillion yuan, up 20.3%, and 4.3 percentage points higher than the target. This includes a 24.8% increase in nongovernmental investment, which accounted for 61.4% of the total fixed-asset investment, 2 percentage points higher from the previous year. Final consumption and capital formation contributed 51.8% and 50.4% to the economic growth, respectively.

2. Price increases dropped steadily.

We made keeping overall price levels stable our main task in carrying out macro-control measures, and strengthened comprehensive price regulation and oversight, with the rise in consumer price index (CPI) for the year dropping 2.8 percentage points to 2.6% and being kept below the targeted figure. Adequate market supply was ensured. We strengthened coordination of the production, transportation, and sale of important commodities, as well as handling of their reserves and adjustment of their imports and exports. We released a total of 18.5 million tons of policy-supported grain for the year. We successfully implemented the contingency plan for adjusting the market price of hogs, improved the reserve system for winter and spring vegetables in major northern cities, and carried out trials of the policy-supported insurance system for basic vegetables in an orderly fashion. We tightened oversight and control on market prices and charges, regulated preschool education fees and prices of teaching and tutorial materials for primary and secondary school students, lowered drug prices, and reviewed and rectified illegal and unreasonable road tolls and fees related to enterprises, thereby effectively lightening the burden on consumers and enterprises. We inspected problems in marking of commodity housing prices, fees charged by commercial banks and telecommunication services, and fees related to agriculture and imports and exports. We pushed forward law enforcement efforts to counter price fixing. Last year, we investigated and dealt with 37,800 cases of pricing irregularities, and imposed economic penalties worth 2.122 billion yuan.

3. The position of agriculture as the foundation of the economy was further consolidated.

We increased policy support to strengthen agriculture, benefit farmers, and enrich rural areas. Total central government expenditures on agriculture, rural areas, and farmers increased by 18%; the proportion of investment funds from the central government budget used in this area were raised to 50.5%; and supply of credit for this purpose rose by 20.7%. We implemented the strictest possible system for protecting arable land, and kept the total area of arable land above 121.3 million hectares. We fully implemented the plan to increase China's grain production capacity by 50 million tons, and projects to develop the community-level service system for spreading agricultural technology were carried out in nearly all towns and townships. We accelerated the development of projects to harness major rivers and lakes and protect major water sources in an all-around way, and strengthened efforts to build and transform large and medium-sized irrigated areas, upgrade and retrofit large irrigation and drainage pumping stations, develop small water conservancy projects, and harness small and medium-sized rivers. We upgraded more sea fishing boats and built more large-scale standardized hog and dairy cow farms. We raised the price floors for wheat and rice, offered higher prices for corn, soybeans, and rapeseed purchased and stockpiled on a temporary basis, and increased temporary purchases and stockpiling of cotton and sugar. Total grain output increased for the ninth consecutive year and amounted to 589.6 billion kilograms, up 3.2%, and output of cash crops rose steadily. Working and living conditions in rural areas improved. We provided safe drinking water to 81% of the rural population, installed or upgraded an additional 317,600 kilometers of electric power lines in the countryside, laid or upgraded 194,000 kilometers of rural roads, made methane available to another 1.8 million rural households, and renovated dilapidated houses for 5.6 million rural households. We supported the construction of grain depots with a total capacity of 4.22 million tons, as well as the construction of 105 wholesale markets for agricultural products and cold-chain logistics facilities with a handling capacity of 8 million tons. We carried out the project on rural goods distribution to get retailers to open stores in more townships and villages, and got standardized rural stores to set up in 75% of the country's villages.

4. We speeded up adjustment to the economic structure.

Fresh progress was made in scientific and technological innovation and development of high-technology industries. We introduced guidelines on deepening reform of the management system for science and technology and accelerating development of a national innovation system, and promulgated and implemented the plan to develop strategic emerging industries in the Twelfth Five-Year Plan period. Spending on R&D as a percentage of GDP reached 1.97%. New economic growth areas such as biomedicine, online information services, and ocean engineering equipment grew rapidly. Value-added of high-tech manufacturing industries grew 12.2%, 2.2 percentage points higher than the growth rate of value-added of large industries. Transformation and upgrading of traditional industries progressed further, projects to relocate some major coastal steel bases and steel mills in cities were launched, and the proportion of new dry-process cement reached over 90% of total cement output. Enterprise mergers and reorganizations continued to make progress, and fresh results were achieved in closing down outdated production facilities. We made progress in developing the service sector and quickly developed producer and consumer services. Value-added of the service sector increased 8.1%, 0.2 percentage points higher than the planned target, and this sector continued to rank first in employing people. Transportation infrastructure and energy production are now better able to meet demand. We put into operation 5,382 kilometers of new railway lines, including 2,723 kilometers of high-speed railway lines; opened 58,672 kilometers of new highways to traffic, including 9,910 kilometers of expressways; put into service 96 seaport berths for 10,000 ton-class or larger ships; and built two new civilian airports. We intensified construction of large energy production bases, and accelerated development of green mining and the comprehensive upgrading and renovation of coal-fired power plants. The installed power-generating capacity of on-grid wind power and photovoltaic power facilities increased 15 million kilowatts and 3 million kilowatts, respectively. The output of raw coal, crude oil, and natural gas rose by 3.8%, 2.3%, and 4.4% year on year, respectively. Electricity production increased by 4.8%.