Our hard-won achievements over the past year are a testament to the strength and vitality of the socialist system with Chinese characteristics, and have enhanced the pride and cohesiveness of the Chinese nation. We owe these achievements to the sound decisions made by the Party Central Committee, with Comrade Hu Jintao as General Secretary, and its correct leadership, as well as the concerted efforts and hard work of the Party, the armed forces, and the people of all ethnic groups in China. On behalf of the State Council, I wish to sincerely thank the Chinese people of all ethnic groups, the democratic parties, people’s organizations, and people from all sectors of society. I wish to express my sincere gratitude to our compatriots in the Hong Kong and Macao special administrative regions and in Taiwan, as well as overseas Chinese. I also wish to express my sincere appreciation to governments of other countries, international organizations, and foreign friends around the world who show understanding for and support China in its pursuit of modernization.
我们也清醒地看到，我国经济社会发展仍然面临不少困难和挑战。从国际看，世界经济复苏进程艰难曲折，国际金融危机还在发展，一些国家主权债务危机短期内难以缓解。主要发达经济体失业率居高难下，增长动力不足，新兴经济体面临通货膨胀和经济增速回落的双重压力。主要货币汇率剧烈波动，大宗商品价格大幅震荡。国际贸易投资保护主义强化。从国内看，解决体制性结构性矛盾，缓解发展不平衡、不协调、不可持续的问题更为迫切、难度更大，经济运行中又出现不少新情况新问题。主要是：经济增长存在下行压力，物价水平仍处高位，房地产市场调控处于关键阶段，农业稳定发展、农民持续增收难度加大，就业总量压力与结构性矛盾并存，一些企业特别是小型微型企业经营困难增多，部分行业产能过剩凸显，能源消费总量增长过快。一些长期矛盾与短期问题相互交织，结构性因素和周期性因素相互作用，国内问题和国际问题相互关联，宏观调控面临更加复杂的局面。政府工作仍存在一些缺点和不足，节能减排、物价调控目标没有完成;征地拆迁、安全生产、食品药品安全、收入分配等方面问题还很突出，群众反映强烈;政府管理和服务水平有待提高，廉政建设亟需加强。
We are keenly aware that China still faces many difficulties and challenges in economic and social development. Internationally, the road to global economic recovery will be tortuous, the global financial crisis is still evolving, and some countries will find it hard to ease the sovereign debt crisis any time soon. The unemployment rate remains high in the major developed economies, and they lack impetus for growth. Emerging economies face the dual pressures of inflation and slowing economic growth. The exchange rates of major currencies and the prices of important commodities are experiencing sharp fluctuations. Protectionism in international trade and investment is mounting. Domestically, it has become more urgent but also more difficult to solve institutional and structural problems and alleviate the problem of unbalanced, uncoordinated, and unsustainable development. In addition, China’s economy is encountering new problems. There is downward pressure on economic growth. Prices remain high. Regulation of the real estate market is in a crucial stage. It is getting harder to maintain steady development of agriculture and sustain increases in rural incomes. Pressure to increase total employment coexists with structural shortages of qualified personnel in some industries. Some enterprises, especially small and micro businesses, face increasing difficulties in their operations. Some industries are plagued by excess production capacity. Total energy consumption is growing excessively fast. Moreover, some long-term and short-term problems are interwoven; structural and cyclical factors affect each other; domestic and international problems have become interrelated; and our macro-control work faces a more complex situation. There are still some deficiencies and shortcomings in the government’s work. Targets for conserving energy, reducing emissions, and controlling prices are not being met. Problems concerning land expropriation, housing demolition, workplace safety, food and drug safety, and income distribution are still very serious and the people are still very concerned about them. Government administration and services need to be improved, and efforts to build clean government need to be intensified.
我们一定要以对国家和人民高度负责的精神，采取更加有力的措施，切实解决存在的问题，努力把各项工作做得更好，决不辜负人民的重托。
We must act with a strong sense of responsibility toward the country and the people, take more effective steps to resolve these problems, strive to do all our work better, and truly live up to the people’s expectations.
