When China began to build socialism, it was way behind developed countries in terms of productive forces. It will take a fairly long historical period before China can achieve industrialization and modernization. Since the founding of the People's Republic of China, and particularly since the introduction of reform and opening-up policy, China has greatly enhanced social productive forces and its overall national strength, and markedly improved the well-being of its people. China has achieved a historic leap from meeting the basic living needs for its people to making life moderately prosperous for them. However, given China's huge population, weak economic base and development imbalances between urban and rural areas and among different regions, its low level of productive forces remains basically unchanged. While continuing economic reform, we have steadily proceeded with reform in the political system. Socialist democracy and legal system are being enhanced, and the Chinese people are playing an increasingly active role in political affairs. People's political, economic, cultural, social and other rights are duly protected. Nonetheless, China's socialist market economy and its democracy and legal system are not yet fully developed. Social unfairness, graft and corruption still exist. The socialist system is not yet mature. Therefore, China still has a long way to go before it can move to a stage higher than the primary stage of socialism. It remains a developing country. Regarding the overall long-term development of socialism, Comrade Deng Xiaoping made a keen observation in 1992 in his remarks during his inspection tour to south China: It will take a very long historical period to consolidate and develop the socialist system, and it will require persistent struggle by many generations, a dozen or even several dozens. We can never rest on our oars.

In the process of reform, opening-up and modernization, we will gain a deeper understanding of what is socialism and how to develop socialism, and we will be able to enrich and advance socialism by adhering to the principle that practice is the only criterion for testing truth. In this connection, two points must be made clear: First, we need to have a full and profound understanding of the basic conditions of China at the primary stage of socialism. To build a country of more than one billion people into a prosperous, strong, democratic, civilized and harmonious modern socialist country is an unprecedented endeavor in human history. It is a historical mission that requires persistent and arduous efforts. Second, we must press ahead with reform and encourage innovation. Comrade Jiang Zemin pointed out, "The great progress our people have achieved under the leadership of our Party in reform, opening-up and modernization in the past more than 20 years has been possible because of the theoretical innovation, institutional innovation, scientific and technological innovation we have pursued." In pursuing reform and innovation, we should not only benefit from and carry forward the inexhaustibly rich and valuable experience our Party has gained in the long years of socialist development and reform; we should also boldly draw upon all the progress of human civilization and all advanced business and managerial expertise that embody the laws governing modern social production. This is the only way for our socialist system to gain strength in competing with the capitalist system. It is with this in mind that we say that socialism is like an ocean which never runs dry as it admits hundreds of rivers. It will take a considerably long historical process for socialism to gain maturity in terms of both theory and practice. Therefore, we must unswervingly adhere to the basic lines of the Party for the primary stage of socialism for the next 100 years and persist in carrying out reform and innovation to ensure enduring vigor and vitality for socialism with Chinese characteristics.

Leading officials at all levels should develop historical and global perspectives and view things from an overall and strategic angle. Only with a full and deep appreciation of the long-term nature of the primary stage of socialism and our historic mission can we truly understand why we have adopted the policies we are pursuing today instead of any other policy and work with stronger commitment, determination and creativity.

II. The Period of Strategic Opportunities for China's Development

The first 20 years of this century will be a period of important strategic opportunities for China. We must not miss it, and we must make full use of it. To embrace this period of strategic opportunities and make good use of it is of utmost importance to our goal of building a society of moderate prosperity in all respects and building socialism with Chinese characteristics.