Breakdown of Li's Government Work Report & China's Budget Report
Hi folks,
It’s been a busy morning, listening to Donald Trump’s speech and following the documents published after Li Qiang delivered his Government Work Report in Beijing. I am summarising two documents in this edition. I’ll first go through the central and local budget report and then Li’s work report. A big thank you to the wonderful NPC Observer platform for sharing these documents in the public domain.
I. China’s Budget Report
China’s key budgetary data:
National general public budget revenue was: 21.970212 trillion yuan. Tax receipts fell by 3.4% to 17.497201 trillion yuan. Non-tax revenue, meanwhile, rose by 25.4% to 4.473011 trillion yuan. With the addition of 2.54105 trillion yuan—comprising transfers from budget stabilization funds and from the budgets of government-managed funds and state capital operations as well as utilized carry over and surplus funds—total revenue came to 24.511262 trillion yuan.
Expenditure in the national general public budget rose by 3.6% to 28.461225 trillion yuan. With the addition of 110.037 billion yuan used to replenish the Central Budget Stabilization Fund, total expenditure came to 28.571262 trillion yuan.
Total deficit is 4.06 trillion yuan.
The central government’s general public budget revenue was 10.881771 trillion yuan. Central government’s general public budget expenditure was 14.221771 trillion yuan. As part of the expenditure figure, the central government expenditures increased by 6.5% to 4.072018 trillion yuan; transfer payments to local governments dropped by 2.4%, to 10.039716 trillion yuan.
So what did the central government spend on?
Diplomatic spending totaled 59.519 billion yuan, representing 97.9% of the budgeted figure.
National defense spending was 1.665208 trillion yuan, representing 100% of the budgeted figure.
Public security expenses totaled 226.256 billion yuan, representing 99.4% of the budgeted figure.
Spending on education came to 166.071 billion yuan, representing 100.7% of the budgeted figure.
Spending on science and technology was 361.909 billion yuan, representing 97.6% of the budgeted figure.
Spending on stockpiling grain, edible oils, and other materials totaled 124.038 billion yuan, representing 88.2% of the budgeted figure
Interest payments on debt amounted to 757.315 billion yuan, representing 97.4% of the budgeted figure.
In terms of transfer payments to local governments, the breakdown is:
8.722288 trillion yuan of general transfer payments, representing 104.9% of the budgeted figure
Special transfer payments came to 817.428 billion yuan, representing 104.9% of the budgeted figure
One-off support was 500 billion yuan
2024’s local general public budget breakdown is:
Local general public budget revenue was 23.669207 trillion yuan. This includes 11.926641 trillion yuan in local government revenue, an increase of 1.7%; 10.039716 trillion yuan in transfer payments from the central government; and 1.70285 trillion yuan—comprising transfers from local budget stabilization funds, the budgets of local government-managed funds, and local government state capital operations, as well as utilized carryover and surplus funds.
Expenditures in the local general public budget totaled 24.389207 trillion yuan, representing a 3.2% increase and 85.7% of expenditure in the national general public budget.
The report also informs that out of the 1 trillion yuan ultra-long-term treasury bonds that were issued, 700 billion was was used for the implementation of major national strategies and security capacity-building in key areas; a further 300 billion yuan was used to support large-scale equipment upgrades and consumer goods trade-in programs, especially increases in subsidies for the scrapping and replacement of vehicles and trade-in of home appliances.
On local government debt, the report says that following:
“Tapping into various resources through multiple channels, we implemented a package of measures to defuse debt risks. In line with the decisions and plans of the CPC Central Committee, relevant policies included: providing that hidden debts incurred in the rebuilding of run-down urban areas due to mature in 2029 or later would be repaid according to the original contracts, arranging a carryover quota for local government debt of 400 billion yuan to replenish financial resources of local governments, and allowing an additional 800 billion yuan in special-purpose bonds to be issued each year for five consecutive years to replenish government-managed funds. On this basis, with the approval of the NPC Standing Committee, the central government extended further support for efforts to defuse debt risks by raising the local government debt ceiling by 6 trillion yuan to replace outstanding hidden debts. Approval and allocation for this program has been granted on a one-time basis, with its implementation to be carried out on a yearly basis. The quota for local government debt replacement came into effect the day after all statutory procedures had been completed. Thanks to the combined effects of these policies, the total amount of hidden local government debt to be resolved by the end of 2028 has fallen sharply from 14.3 trillion yuan to 2.3 trillion yuan, with associated interest payments being slashed by about 600 billion yuan. In addition to these policy steps, we also intensified policy communication and work guidance through press conferences and dedicated meetings aimed at facilitating faster implementation of the debt replacement policy. A quota of 2 trillion yuan was issued across the board for 2024, with the work of debt replacement being basically completed in line with this quota. We defined clear standards for winding up the operations of local government financing platforms and stepped up efforts to reform and transform financing platforms on a per-category basis. These efforts have brought about a further reduction in the number of these types of platforms.”
For 2025, the report says:
We have set the deficit-to-GDP ratio for the year at around 4%, which is 1 percentage point higher than last year. The government deficit is projected to be 5.66 trillion yuan, an increase of 1.6 trillion yuan compared with the figure projected at the beginning of last year. This year’s deficit consists of a central government deficit of 4.86 trillion yuan and a local government deficit of 800 billion yuan.
This year, a ceiling of 4.4 trillion yuan will be set on new local government special debts, an increase of 500 billion yuan over last year…The use of newly raised special debts will be tilted toward implementing major regional strategies, developing new quality productive forces, and promoting high-quality development…The use of newly raised special debts will be tilted toward implementing major regional strategies, developing new quality productive forces, and promoting high-quality development.
We will issue 1.3 trillion yuan of ultra-long special treasury bonds, an increase of 300 billion yuan over last year. Of this amount, 800 billion yuan will be used for the implementation of major national strategies and security capacity-building in key areas and 500 billion yuan for large-scale equipment upgrading and consumer goods trade-in programs. The central government budget includes 735 billion yuan for investment, an increase of 35 billion yuan over last year.
We will allocate a certain amount of new local government special-purpose bonds issued this year to replenish local government-managed funds, thus helping local governments resolve their debts. Local governments will be allowed to use funds raised from special-purpose bonds to redeem idle land and purchase commodity housing stock for use as government-subsidized housing. This will help stem the downturn and restore stability in the real estate market. Any idle land and commodity housing to be purchased by local governments must be properly priced to guard against moral hazard. A total of 500 billion yuan in special treasury bonds will be issued this year to support large state-owned commercial banks in replenishing their core tier 1 capital, so as to enhance their ability to maintain stable performance and serve the real economy.
Transfer payments from the central government to local governments will be set at 10.3415 trillion yuan this year. This represents an increase of 8.4% over the actual figure for 2024 after deducting funds raised from additional treasury bonds issued in 2023 that were carried over to 2024.
To boost demand, the report says: “Ultra-long special treasury bonds totaling 300 billion yuan will be issued to support consumer goods trade-in programs. This represents an increase of 150 billion yuan over the previous year.”
On building a modern industrial system, the report says: “We will support the development of emerging industries such as commercial space industry and the low-altitude economy, as well as industries of the future such as biomanufacturing and embodied artificial intelligence (EAI). The central government will allocate 11.878 billion yuan of special funds to support the high-quality development of key manufacturing sectors, representing an increase of 14.5%. Ultra-long special treasury bonds totaling 200 billion yuan will be issued for the upgrading of equipment, representing an increase of 50 billion yuan over last year.”
Other specific planned expenditure:
Investment in education will continue to rise, with educational expenditures in the central budget totaling 174.443 billion yuan, an increase of 5%.
Science and technology expenditures in the central budget will total 398.119 billion yuan, an increase of 10%.
The central government will allocate 42 billion yuan to an award fund to support local governments in increasing their fiscal resources for implementing policies on granting permanent urban residency to eligible people who have moved to cities from rural areas. This marks an increase of 2 billion yuan from last year.
The central government will earmark 120.5 billion yuan in transfer payments to key ecosystem service zones, an increase of 7.5%.
The central government will allocate 34 billion yuan, 26.7 billion yuan, and 4.4 billion yuan, respectively, for the prevention and control of air, water, and soil pollution.
For 2025, this is the state of affairs:
Central general public budget revenue is estimated at 9.886 trillion yuan; expenditure is estimated at 14.746 trillion yuan
Central government expenditures are projected to increase by 6.9% to 4.3545 trillion yuan. The main items included are:
64.506 billion yuan on diplomatic endeavors, up 8.4%;
1.784665 trillion yuan on national defense, up 7.2%;
242.828 billion yuan on public security, up 7.3%;
174.443 billion yuan on education, up 5%;
398.119 billion yuan on science and technology, up 10%;
131.66 billion yuan on stockpiling grain, edible oils, and other materials, up 6.1%;
834.55 billion yuan on debt interest payments, up 10.2%
10.3415 trillion yuan will be transferred to local governments
Local government revenue is projected to rise by 3% to 12.289 trillion yuan. Added to this is the 10.3415 trillion yuan of transfer payments, and 1.8655 trillion yuan transferred from other local sources and utilized carryover and surplus funds. So the total revenue is expected to be 24.496 trillion yuan. Expected expenditure is 25.296 trillion yuan. This will create a deficit of 800 billion yuan at the local level, an increase of 80 billion yuan over 2024, which will be supplemented through the issuance of general-purpose local government bonds.
II. Government Work Report:
Li Qiang’s list of key achievements of 2024
China’s GDP rose to 134.9 trillion yuan, a year-on-year increase of 5%
A total of12.56 million urban jobs were created, and surveyed urban unemployment rates averaged 5.1%
CPI increased by 0.2%
Foreign trade reached a record high, and the global market share of China’s exports increased steadily.
Foreign exchange reserves surpassed 3.2 trillion US dollars.
Per capita disposable income grew by 5.1% in real terms.
Grain output hit a new high of 700 million metric tons, with the yield per hectare rising by 75.75 kilograms.
The value added of high-tech manufacturing and equipment manufacturing rose by 8.9% and 7.7%, respectively
The output of new-energy vehicles passed the 13 million mark.
In cities at and above the prefectural level, the average concentration of fine particulate matter (PM2.5) fell by 2.7%, and the proportion of days with good or excellent air quality rose to 87.2%. The proportion of surface water with a good quality rating reached 90.4%. Energy consumption per unit of GDP dropped by more than 3%, and installed renewable energy capacity grew by 370 million kilowatts.
Total share of urban population today is 67%
The share of electricity generated from non-fossil fuels now accounts for close to 40% of total power generation.
He later said:
We owe our achievements in 2024 to General Secretary Xi Jinping, who is at the helm charting the course, and to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We also owe them to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, and to the concerted efforts of the whole Party, the armed forces, and the Chinese people of all ethnic groups.”
After this, Li talked about the challenges facing the country.
Internationally, changes unseen in a century are unfolding across the world at a faster pace. An increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology. Global economic growth lacks steam, unilateralism and protectionism are on the rise, the multilateral trading system is experiencing disruptions, and tariff barriers continue to increase. All this is undermining the stability of global industrial and supply chains and impeding flows in the international economy. The factors causing geopolitical tensions remain numerous, and they are affecting global market expectations and investment confidence and fueling the risk of volatility in global markets.
Domestically, the foundation for China’s sustained economic recovery and growth is not strong enough. Effective demand is weak, and consumption, in particular, is sluggish. Some enterprises face difficulties in production and operations, and overdue payments remain a prominent issue for enterprises. There are pressures on job creation and income growth. In addition, there are weak links in our work to ensure public wellbeing and some primary level governments have fiscal difficulties. Greater efforts need to be made to address social problems and guard against risks. We in government need to improve our performance and capacity for conducting law based administration. Coordination and cooperation are lacking in some areas of our work, and the pace of implementation for some policies is too slow, with the results being less than expected. Some government departments are not fully service oriented and are thus often inefficient. Some officials either act arbitrarily or lack the drive and ability to deliver. Corruption remains a common problem in some sectors and localities. We must face these difficulties and problems head-on and have stronger confidence in our development. China has distinctive distinctive institutional strengths and many advantages, including an enormous market, a complete industrial system, and a wealth of manpower and talent. We have effective governance mechanisms featuring long-term plans, sound regulation, and coordination between central and local governments as well as vast space for further growth through demand upgrades, structural improvements, and a shift to new growth drivers. The underlying trend of long-term economic growth has not changed not changed and will not change. The giant ship of China’s economy will continue to continue to cleave the waves and sail steadily toward the future.”
For 2025, Li called to:
follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era
fully implement the guiding principles from the Party’s 20th National Congress and the second and third plenary sessions of the 20th Party Central Committee
adhere to the general principle of pursuing progress while ensuring stability
fully and faithfully apply the new development philosophy on all fronts, move faster to create a new pattern of development, and make solid progress in high-quality development
further deepen reform comprehensively and expand high-standard opening up
modernize the industrial system
better ensure both development and security
implement more proactive and effective macro policies
boost domestic demand
promote integrated advancements in technological and industrial innovation
ensure stability in the real estate market and the stock market
guard against and defuse risks in key areas and external shocks
stabilize expectations and boost economic vitality
promote sustained economic recovery and growth
keep improving people’s living standards
maintain social harmony and stability
fulfill the targets and tasks set in the 14th Five-Year Plan to a high standard
The main targets for development this year are projected as follows:
GDP growth of around 5%
surveyed urban unemployment rate of around 5.5%
over 12 million new urban jobs
CPI increase of around 2%
growth in personal income in step with economic growth
a basic equilibrium in the balance of payments
grain output of around700 million metric tons
a drop of around 3% in energy consumption per unit of GDP
continued improvements in the environment
He added:
“In setting the growth rate at around 5 percent, we have taken into account the need to stabilize employment, prevent risks, and improve the people’s wellbeing, as well as the potential for growth and the conditions supporting growth. A target of around 5 percent is well aligned with our mid-and long-term development goals and underscores our resolve to meet difficulties head-on and strive hard to deliver.”
On fiscal policy, he said that the deficit-to-GDP ratio for this year has been set at around 4%. He added:
The government deficit is set at 5.66 trillion yuan, an increase of 1.6 trillion yuan over last year’s budget figure.
Expenditure in the general public budget is projected to reach 29.7trillion yuan, an increase of 1.2 trillion yuan over last year.
A total of 1.3 trillion yuan of ultra-long special treasury bonds will be issued, 300 billion yuan more than last year
500 billion yuan of special treasury bonds will be issued to support large state-owned commercial banks in replenishing capital
4.4 trillion yuan of local government special-purpose bonds will be issued, an increase of 500 billion yuan over last year. The funds raised from these special-purpose bonds will be mainly used for construction investment, land acquisition and reserve, purchase of commodity housing stock, and settlement of overdue payments owed by local governments to enterprises
New government debt will total 11.86 trillion yuan, an increase of 2.9 trillion yuan over last year
We will see to it that governments at all levels fulfill their respective responsibilities and that, at the primary level, basic living needs are met, salaries are paid, and governments function normally. We in government will continue to keep our belts tightened, exercise sound fiscal management, maintain strict financial and economic discipline, and prohibit wasteful spending, so as to free up more funds to support development and meet people’s expectations for a better life.
In terms of monetary policy changes, he promised to “maintain adequate liquidity”, largely via rate adjustments. He also “we will refine and develop new structural monetary policy instruments to provide stronger support for sound development of the real estate sector and the stock market for scientific and technological innovation, green development, the boosting of consumption and for private businesses and micro and small enterprises.”
In addition, he talked about the importance of improving policy coordination.
In terms of the major tasks for 2025, Li talked about the following:
Boosting consumption:
We will adopt special measures to increase spending power, boost the supply of quality products and services, and improve the consumption environment in order to tap the potential of diversified, differentiated spending and promote consumption upgrading. We will promote personal income growth through a variety of avenues, increase the earnings of low variety of avenues, increase the earnings of low- and middle-income groups and reduce their financial burdens, and improve the mechanisms for regular pay increases. Ultra long special treasury bonds totaling 300 billion yuan will be issued to support consumer goods trade in programs. We will increase the diversified supply of health, elderly care, childcare, and domestic services by expanding access, reducing restrictions, and improve supervision in these sectors…This year, 735 billion yuan will be earmarked in the central government budget for investment. We will put ultra long special treasury bonds to good use, increase ultra long term loans and other types of financing support, and strengthen top-down organization and coordination to ensure greater support for the implementation of major national strategies and security capacity building in key areas. To improve the management mechanism for local government special purpose bonds, we will adopt a negative list negative list for areas of investment and delegate power for areas of investment and project review and approval.
Developing new quality productive forces and building a nodern industrial system:
We will advance integrated and clustered development of strategic emerging industries, carry out demonstration initiatives on the large scale application of new technologies, products, and scenarios, and promote safe and sound development of commercial space, the low altitude economy, and other emerging industries. We will establish a mechanism to increase funding for industries of the future and foster industries such as bio-manufacturing, quantum technology, embodied AI, and 6G technology. We will advance trials for integrated development of advanced manufacturing and modern services to accelerate the development of service oriented manufacturing. To promote orderly industrial development and healthy competition, we will improve coordination and planning of industries and strengthen monitoring and early warning for production capacity. We will accelerate innovative development of national new and high tech development zones. We will advance tiered development of innovative enterprises, promote the growth of small and medium sized enterprises (SMEs) that use specialized and sophisticated technologies to produce novel and unique products, and support the development of unicorn and gazelle companies. These efforts will enable more enterprises to surge ahead in new areas and arenas.”
“We will accelerate high quality development of key industrial chains in the manufacturing sector and step up efforts to advance industrial foundation reengineering and major technology and equipment research. We will further extend the coverage of projects and lower eligibility requirements to carry out major technology transformation and upgrading as well as large scale renewal of equipment in the manufacturing sector. We will accelerate the digitalization of manufacturing…”
“We will promote the healthy and well-regulated development of the platform economy and give better play to its role in inspiring innovation, expanding consumption, and stabilizing employment.”
Implementing the strategy of invigorating China through science and education
“A three-year action plan for strengthening education will be drawn up and implemented.” Li also talked about support for basic, secondary and vocational education. He also said that “efforts will be made to ensure access to mental health education.” He called to “intensify the push for breakthroughs in core technologies in key fields and R&D advancements in frontier and disruptive technologies, and accelerate implementation of and forward looking planning for major science and technology projects.” He promised that “a greater share of science and technology expenditures will be allocated to basic research, and investment mechanisms will be refined to include both competition based support and stable funding. Steps will also be taken to adopt a more organized approach to basic research.”
Furthering economic structural reform
In this, he talked about the two unshakable principles or the two unswervings, which imply support for the private sector. “We will complete initiatives to deepen and upgrade SOE reform to high standards, implement guidelines on refining the layout and adjusting structure of the state--owned sector, and move faster to establish a system to assess assess SOEs’ performance in fulfilling their strategic missions. We will take solid steps to implement policies and measures designed to spur the growth of the private sector, effectively protect the lawful rights and interests of private enterprises and entrepreneurs in accordance with the law, and encourage private enterprises with appropriate conditions to institute and refine modern corporate systems with distinctive Chinese features.”
On the issue of overdue payments to enterprises, Li promised to “intensify efforts to tackle this issue at the source, take stronger punitive actions against those who act in bad faith, and implement long term mechanisms to address this issue.” He added that “special initiatives will be launched to regulate enterprise related law enforcement, with a focus on tackling arbitrary charges, fines, inspections and seizures.”
He also talked about the steps needed to build a unified national market. “We will eliminate local protectionism and market segmentation, remove bottlenecks and obstacles such as those impeding economic flows in terms of market access and exit as well as allocation of production factors, and take comprehensive steps to address rat race competition. We will implement guidelines on developing a unified national market and release a new revised version of the negative list for market access to improve access for new forms of business and new sectors. Guidelines will be formulated on fair competition compliance in key areas, and institutions and mechanisms for public bidding will be reformed and improved. We will introduce policies for improving the social credit system and develop an integrated credit repair system.”
Another important commitment in this section is:
“We will improve the standards and foundational institutions for technology finance, green finance, inclusive finance, pension finance, and digital finance. We will deepen comprehensive reforms for investment and financing in the capital market, encourage the entry of long and medium term capital into the market, and strengthen strategic resource reserves and market stabilization mechanisms. Procedures for stock issuance and listing and enterprise merger, acquisition and reorganization will be reformed and improved, and the development of multilevel bond markets will be expedited.”
Expanding higher-standard opening up and stabilizing foreign trade and investment
Under this, he talks about broad-based support for China’s foreign trade. On foreign investment, he says that:
“We will promote comprehensive trials and demonstrations for expanding opening up of the service sector. We will open internet-related, cultural, and other sectors in a well regulated way and expand trials to open sectors such as telecommunications, medical services, and education. We will encourage foreign investors to increase their reinvestment in China and support them in collaborating with upstream and downstream enterprises in industrial chains. We will ensure national treatment for foreign funded enterprises in fields such as access to production factors, license application, standards setting, and government procurement. Foreign investors will receive better services and support, and the launch of landmark investment projects will be expedited. These efforts will help make China a favored destination for foreign investment.”
On BRI, he says that “we will advance both major signature projects and ‘small but beautiful’ public wellbeing projects and produce a number of exemplary cooperative project deliverables.”
“We will work for the signing of the China-ASEAN Free Trade Area 3.0 Upgrade Protocol and speed up the process of joining the Digital Economy Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. We will resolutely safeguard the WTO-centered multilateral trading system, broaden converging interests with other countries, and promote shared development.”
Effectively preventing and defusing risks in key areas and ensuring that no systemic risks arise
We will introduce city specific policies on adjusting or reducing property transaction restrictions. We will intensify efforts to redevelop urban villages and renovate old and dilapidated houses. We will fully tap into potential demand for first homes and better housing. We will optimize urban spatial structures and land use practices and properly control the supply of new land for real estate projects. We will make good use of existing land resources as well as commercial and office properties and facilitate the purchase of commodity housing stock. Governments in cities will be granted greater power to determine the types of entities that can make such purchases, the prices of such properties, and the purposes for which they will be used. We will expand the scope for using the re-lending facility for government subsidized housing. We will leverage real estate financing coordination mechanisms to ensure timely delivery of housing projects and effectively prevent debt defaults by real estate companies. Foundational systems will be established in a well-ordered way to foster a new development model for the real estate sector. To meet people’s demand for high quality housing, we will improve the standards and regulations on building quality homes that are safe, comfortable, eco-friendly, and smart.”
On local government debt, he says that “we will improve and implement a package of measures to defuse debt risks. We will refine evaluation and control measures and make timely adjustment s to the list of localities with high debt risks to support the creation of new space for investment”. He added: “Government debt management will be improved to curb rash borrowing in breach of regulations. We will move faster to remove government financing functions from local financing platforms and press ahead with market oriented transformation of these platforms and the defusing of their debt risks”.
“We will make coordinated efforts to address risks in small and medium local financial institutions and promote their transformation through market and law-based means. We will take integrated approaches including capital replenish ment, mergers and reorganizations, and market exit to defuse risks on a categorized basis.”
Policies related to agriculture and rural areas
Under this, he talks about grain production, maintenance of cultivable land, use of technology, poverty alleviation, east-west cooperation, extension of land contracts, development of rural industries, etc.
Pursuing regional coordinated development
“We will take well conceived and systematic measures to grant permanent urban residency to people moving to cities from rural areas. Moreover, we will ensure that they have full access to basic public services in their place of permanent residence; and we will intensify support to see that children living with them receive compulsory education in cities. We will also enable those eligible to join the housing support system and see that they have smooth access to social security programs.”
He also talks about improving infrastructure and public services, boosting innovation capacity across regional zones and industrial cooperation.
Curbing pollution and ensuring green transition
Among other things, under this he talked about supporting the development of green and low-carbon industries.
“We will steadily advance the second batch of trials for peaking carbon emissions and establish a group of zero carbon industrial parks and factories. We will speed up the establishment of a framework for controlling the total amount and intensity of carbon emissions and expand the coverage of the China Carbon Emission Trade Exchange to more sectors. We will launch carbon emissions statistics and accounting initiatives, develop systems for carbon footprint management and carbon labeling and certification, and take active steps to respond to green trade barriers. We will accelerate the construction of new energy bases in desert areas, the Gobi and other arid areas develop offshore wind farms, and promote both the integration of renewable energy into local grids and the construction of transmission routes. Low carbon upgrade trials will be launched in coal fired power plants. We will develop a package of major projects for climate change response and actively engage in and steer global environmental and climate governance.”
Improving people’s wellbeing and enhancing social governance
Under this, he started by talking about “we will support labor intensive industries in creating jobs and stabilizing employment and strike a balance between the application of new technologies and job relocation for employees.” He talked about supporting entrepreneurship and start-ups. He also said: “We will better protect the rights and interests of people in flexible employment and new forms of employment and expand trials of occupational injury insurance.”
He added: “We will carry out large scale plans for upgrading vocational skills to increase the supply of highly skilled personnel urgently needed in the manufacturing and service sectors. We will move faster to develop a skills based pay system to see that skilled workers get better paid. In short, we will ensure better pay for those with a commitment to hard work, an outstanding skill set, and a dedication to innovation”.
Under this, he also talked about healthcare, pensions, elderly care services, childcare subsidies, veterans’ benefits, etc.
One part of this point includes national security and social stability. On these, Li said:
“We will fully apply a holistic approach to national security, improve institutions and mechanisms for safeguarding national security, and modernize China’s national security system and capacity. We will enforce the responsibility systems for ensuring social stability, strengthen public security governance, and bolster ground level emergency response infrastructure and capabilities…” Among other things, in this he mentioned the Peaceful China Initiative and the Fengqiao Model.
Then came this:
All of us in government at every level should acquire a deep understanding of the decisive significance of establishing Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and of establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; be more conscious of the need to maintain political integrity, think in big picture terms, follow the leadership core, and keep in alignment with the central Party leadership; stay confident in the path, theory, system, and culture of socialism with Chinese characteristics uphold Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee’s authority and its centralized, unified leadership; and closely follow the Party Central Committee with Comrade Xi Jinping at its core in thinking, stance, and action.
Later he said:
“We will refine mechanisms for work related to overseas Chinese and protect the lawful rights and interests of Chinese nationals residing abroad as well as returned overseas Chinese and their families in China. These efforts will help forge a powerful force for all the sons and daughters of the Chinese nation, both at home and abroad, to work together for great achievements.”
“This year, we will continue to apply Xi Jinping Thought on Strengthening the Military and implement the military strategy for the new era. We will stay committed to the Party’s absolute leadership over the people s armed forces, thoroughly implement the system of ultimate responsibility resting with the chairman of the Central Military Commission, continue improving political conduct of the military, and make all out efforts to achieve major advances toward the centenary goal of the People’s Liberation Army. We will step up military training and combat readiness, speed up the development of new combat capabilities, and establish a framework of modern military theories with Chinese characteristics, so as to firmly safeguard China’s sovereignty, security, and development interests. We will complete the tasks laid down in the 14th Five Year Plan for strengthening the military, intensify the implementation of major defense related projects, and move faster to develop the network information system. We will make coordinated efforts to promote military civilian reforms, refine the framework and layout of defense related science, technology, and industries, and improve the working mechanisms for developing integrated national strategies and strategic capabilities.”
Finally, he said:
“We will implement the Party s overall policy for the new era on resolving the Taiwan question. We will stay committed to the one China principle and the 1992 Consensus and resolutely oppose separatist activities aimed at Taiwan independence and external interference, so as to promote the peaceful development of cross Strait relations. We will improve institutions and policies for promoting economic and cultural exchanges and cooperation across the Taiwan Strait and advance integrated cross Strait development to improve the well-being of Chinese people on both sides. We will firmly advance the cause of China’s reunification and work with our fellow Chinese in Taiwan to realize the glorious cause of the rejuvenation of the Chinese nation.”
“We will stay committed to an independent foreign policy of peace and to the path of peaceful development. We will remain firm in pursuing a mutually beneficial strategy of opening up, oppose hegemonism and power politics, oppose unilateralism and protectionism in all forms, and uphold international fairness and justice. China is ready to work with other members of the international community to promote an equal and orderly multipolar world and universally beneficial and inclusive economic globalization, pursue the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative, and actively participate in reform and development of the global governance system. In doing so, we will promote the building of a community with a shard future for mankind and create a bright future of world peace and development.”