It is urgent to transform China's current economic development model. With the rapid expansion of its economic aggregate, problems that lead to unbalanced, uncoordinated and unsustainable development, and conflicts that curb China's sustainable and sound development become increasingly striking. Rising labor costs, shrinking demographic dividends, excessive dependence on energy and foreign core technologies, sharply increasing ecological environmental pressure, all highlight the importance, urgency and difficulty of transforming China's economic development model.

At the same time, there is still no essential progress in various structural reforms designed to cope with the global financial crisis. We still have to wait and see whether great technological revolutions that could restore rapid global economic growth will appear in the coming five to 10 years. Low growth might be a common situation for quite a period of time during the following years, when trade and investment protectionism will become increasingly serious.

While proud of the great achievements we have made, we must be clear on the issues posing severe challenges to social development. We must speed up methods to resolve conflicts and problems that affect social harmony and justice, which further hinder our efforts to build a society of common prosperity. We should not equal development to economic development. When drastic changes occurred in Eastern Europe, the per-capita income, technological capability, military strength and living standards in those countries were much higher than those of China. What led to the rapid collapse of these countries? It taught us a lesson that development results must equally benefit the whole of society and we should pay equal attention to social as well as economic development.

Over the past 60 years and more, the CPC has accumulated rich experience in governing the country. However, under new circumstances, it has a lot of problems to deal with. Improving the Party's leadership and governing capability is key to China's growth. Xi said that the Party must always be ready to listen to the people's voice and respond to their expectations while safeguarding social justice, so as to realize the objective of common prosperity.

Apart from economic growth, development also includes social progress. The major factor affecting development is economic growth, while the transitional period from medium income toward high income hinges on the method and quality of social development. China is now moving toward a high-income society, and thus while transforming the economic development model, we must also further promote social equality, improve policies and push forward systemic reform.

More attention should be paid to the balance of economic growth and social development, while the acceleration of social development should be given more priority, so as to realize tolerant, sustainable and efficient development.

Xi said that reform and opening up is the source to push forward China's development and progress as well as a key to ensuring the Party and people catch up with the times. China's reform is facing many difficulties, so we must seize this opportunity to deepen efforts in key areas with political courage and wisdom.

Accelerating transformation of the economic development model and pushing forward coordinated social and economic growth depends on the establishment and improvement of certain mechanisms. The current task is to transform the government's function and make clear the relationship between itself and the market.

In order to set up a more efficient, standardized and fairer market system, we need to draw a clearer line between the government and market. Unnecessary administrative approval procedures should be cancelled, while some administrative rights should be deregulated to local authorities.

Distributing financial and administrative power between central and local governments remains a priority. It's important to stimulate local government enthusiasm for economic and social progress. The current appraisal system should be further improved by breaking the worship of the GDP and guiding governments at various levels toward the road of scientific development.

Meanwhile, we need to set up an efficient social security network that covers the whole population. The people should be guided to participate in community and public affairs management. There should be a platform for the demand of legitimate rights and interests. If well done, these efforts will help lay a solid foundation for lasting peace and prosperity.