Fourth, social problems are still serious, and promoting social harmony remains a challenging task. The employment situation, for one, remains serious. The problems of a surplus workforce and shortages of workers in certain occupations exist simultaneously. It is growing increasingly difficult to guarantee employment for new university graduates and to find new employment for laid-off workers, especially for those who are members of zero-employment families and men over 50 and women over 40. The social security coverage is inadequate. Strong public concern has been voiced over the lack of accessibility and affordability of medical treatment and education. There are also serious problems related to food and drug safety, housing, income distribution, public security and production safety. Other problems that have a negative impact on the interests of the people include enterprise restructuring, housing demolition and resident relocation in urban areas, land acquisition and expropriation and environmental protection. Poverty alleviation in old revolutionary areas, ethnic minority regions, border areas and poverty-stricken areas is still an arduous task.

We must take vigorous measures and work hard to solve the above problems.

II. General Requirements and Major Targets for Economic and Social Development in 2007

In carrying out economic and social development work for 2007, we must take Deng Xiaoping Theory and the important thought of Three Represents as our guide, closely follow the guiding principles set out at the Sixteenth CPC National Congress and the third through sixth plenary sessions of the Sixteenth Party Central Committee, fully put into practice the Scientific Outlook on Development and accelerate the building of a harmonious socialist society. We must continue to improve macroeconomic regulation and work hard on economic restructuring and changing the pattern of economic growth, strengthen efforts to conserve resources and protect the environment, deepen reform and opening up and promote independent innovation, promote social development and address problems affecting people's well-being, make economic and social development more scientific and promote sound and rapid development of the national economy to create an excellent environment for the convening of the Seventeenth National Congress of the CPC.

In accordance with the general aims cited above and in the Outline of the Eleventh Five-Year Plan and taking into consideration both necessity and feasibility, we set the major targets for economic and social development in 2007 as follows.

--An appropriate rate of economic growth based on economic restructuring, improved economic performance and reduced energy consumption and pollutant emission. We will increase the proportion of tertiary and high-tech industries in the overall economy. Government revenue for the year will total 4.4065 trillion yuan, with GDP increasing by about 8%. GDP growth has hovered around 10% or slightly higher in recent years. We are leaving some leeway in this year's targets for economic growth to indicate to society the government's intentions in terms of macroeconomic regulation and to guide all sectors of the economy to focus on improving economic structure, changing the pattern of economic growth and improving overall quality and performance. We also hope to prevent people from single-mindedly competing for the fastest economic growth and thereby promote sound and rapid economic growth. The economic growth targets are indicators of the anticipated levels and are for guidance only. Local governments should set targets for local GDP growth at an appropriate level in line with local conditions.