Part I: Achievements and Problems

After a decade of efforts, China has achieved remarkable progress in sustainable development.

- Economic development. China has maintained sustained, rapid and healthy growth of its economy. As a result, the country's overall national strength has built up considerably, with its GDP topping 10 trillion yuan. China today is the largest recipient of direct foreign investment in the developing world and the sixth largest trading power in the world. People's livelihood and quality of life have witnessed significant improvement. Furthermore, economic growth is increasingly based on more sustainable ways, relying on enhanced efficiency rather than heavy input of resources. The economic structure is being gradually optimized.

- Social development. The trend of excessive population growth has been checked; science, technology and education have made positive headway; and remarkable progress has also been made in social security, poverty eradication, disaster relief and prevention, medical care and narrowing the regional gap in development.

- Ecological conservation, environmental protection and rational exploitation of resources. The Central Government has greatly increased spending in ecological conservation and environmental protection; the pattern of energy consumption is being gradually optimized; measures for controlling water pollution have been stepped up for key water systems; breakthrough progress has been made in curbing air pollution; comprehensive use of resources has significantly improved; and the ecological environment has improved to some extend thanks to retiring fragile farmlands and switching them to conservation purposes, such as planting trees and grass, and expanding floodwater storage.

- Capacity-building for sustainable development. The strategy of sustainable development has been incorporated into various programs and plans by Central Government ministries and local govern-ments. Public awareness of sustainable development has markedly increased, and relevant laws and regulations have been enacted and enforced.

However, China still faces quite a few challenges in implementing sustainable development.

- The greatest challenges are: a conflict between rapid economic growth and voluminous consumption of resources and ecological deterioration; social development lagging behind economic development; widening disparities between different regions in social and economic development; constraints posed by a large population and scarce resources; and inconsistencies between some existing laws, regulations and policies and actual needs for sustainable development.

- Major problems urgently needed to be resolved include: the comprehensive quality of the population needs improvement; aging of the population is accelerating; the social security system is inadequate; the pressure on employment is heavy; the economic structure is less than rational; the operation system of the market economy needs to be improved; clean energy has a low share in the total energy consumption; infrastructure is underdeveloped; the information infrastructure for the national economy is of a low level; a serious waste exists in the exploitation of natural resources; environmental pollution is serious; ecological deterioration is still not curbed; legislation on resources management and environmental protection needs improvement.

With increasing globalization of the world economy, the international community is enhancing its understanding of and stepping up its efforts for sustainable development and common development. China should, after its accession to the WTO, give full play to the advantage of its system of socialist market economy. In particular, China should give full play to the role of government in organizing and coordinating the implementation of the sustainable development strategy and properly handle the relationship of economic globalization and sustainable development. China should also, based on the achievements of the Johannesburg World Summit on Sustainable Development, actively participate in international cooperation and safeguard the country's fundamental interests, including its economic and ecological security.