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Chinese Premier Li Keqiang delivered the government’s annual work report during the opening meeting of the Second Session of the 12th National People’s Congress（NPC）—China’s top legislature—in Beijing on March 5. Beijing Review reporters Zhou Xiaoyan， Deng Yaqing， Zeng Wenhui， Miao Xiaoyang and Hou Weili spoke to NPC deputies and members of the 12th National Committee of the Chinese People’s Political Consultative Conference （CPPCC）—China’s top political advisory body—to hear their viewpoints on topics covered in the report. Edited Excerpts follow：
deepening reform
Xu Shousheng， NPC deputy， Secretary of Communist Party of China （CPC） Hunan Provincial Committee
The government work report reflects the fresh mindset held by the new leadership on how to govern the country. It’s a pragmatic and inspir- ing report， which accurately addresses all of the problems that are of deep concern to Chinese citizens. As for the obstacles in the way of China’s future reform， the report doesn’t avoid talking about them or attempt to cover them up. It specifically lists all the problems and spells out how to take on these challenges.
China’s economic structural adjustment has made marked progress. The proportion for which the service industry accounts for has surpassed that of the manufacturing industry for the first time. The growth rate in the less developed central and western parts of the country was much higher than that in the richer eastern region in 2013， signaling more balanced development across the board. An array of measures have successfully helped to deepen reforms， such as using value-added tax to replace turnover tax and setting up the pilot Shanghai free trade zone. China’s fast development in 2013 has proved the doomsayers wrong.
I have two suggestions. Firstly， the institutional reform in the State Council should be accelerated. Right now， certain departments under the State Council still have overlapping functions. This has led to inefficiency and a buck-passing work style. Any department that needs dismantling should be dismantled as soon as possible.
Second， the central region of China has been positioned as a transportation hub. Building such a hub requires hefty investment， which results in central provinces being heavily indebted. Such debt should be shouldered by the Central Government and local governments together rather than local governments alone.
Innovation-driven growth Huang Boyun， NPC deputy， an academician with the Chinese Academy of Engineering
Premier Li’s work report has mentioned “innovation-driven growth” a lot. How exactly to marry economic and technological development and how to transform scientific achievements into productivity represent the main issues？
Progress has been made in that regard. But more needs to be done. First， stock ownership incentives should be implemented in innovation parks so that scientists can enjoy more benefits from the fruits of their research. Second， approval of innovation-related issued should be delegated to provincial governments.
Economic transformation
Huang Taiyan， NPC deputy， President of Liaoning University
China can absolutely meet the GDP growth target it has set itself for 2014 but faces lots of challenges in terms of the CPI limit. Firstly， it takes time to digest the excess currency that the central bank issued to stimulate growth. Secondly， the prices of the labor， land and raw materials are constantly increasing in China.
China experienced three decades of super-fast growth at the expense of cheap labor costs. Now， it faces more restrictions from limited natural resources and an aging society. Domestic consumption should be the new growth engine.
In the past， many Chinese would buy several suitcases of luxurious products during their overseas trips. This shows Chinese people have the ability to consume， but that the domestic market presents some problems. Therefore， the core of China’s economic transformation should be “made-in-China” products， and focus should be placed on their quality， branding and credibility.
Enriching ethnic people
Nyima Zhoima， NPC deputy， Secretary of the CPC Haibei Tibetan Autonomous Prefecture Committee， Qinghai Province
Although not lengthy， Premier Li’s report has concisely summarized government work in the past year as well as paving the road ahead for government work this year. The proposed growth targets are in line with the reality of China’s situation. Colloquial words and proverbs have been used in the report so that everyone can easily relate to the report.
As an NPC deputy from a minority ethnic group， I am especially thrilled by the Central Government’s proposed measures regarding regions inhabited by ethnic groups. Uniting people from all ethnic groups has been high on the priority list in the government work agenda.
I think that can be achieved by factoring in the following three aspects—building community-level connections with these ethnic groups， strengthening social security and， most importantly， economically enriching them. Development is key to solving all of the problems currently faced in China. Similarly， development can also be the “silver bullet” to all the issues that regions containing different ethnic groups are now facing. In Haibei Tibetan Autonomous Prefecture， we have greatly cultivated our tourism industry， which created many jobs and greatly increased local incomes.
Legal system for the market
Li Ruogu， CPPCC member， Chairman and President of the Export-Import Bank of China
Before streamlining administration and instituting decentralization， the government should build a complete system of laws to keep the market in order.
In the past， similar campaigns were launched to reduce government intervention， but rarely worked. Without governmental administration， the market should be supervised and controlled by law. Hence， the existing legal system should be renovated to ensure justice and equity. For example， independent bankruptcy courts should be set up to handle bankruptcy cases and to prevent local protectionism.
Supporting SMEs
Chen Dongzheng， CPPCC member， President of the Shenzhen Stock Exchange
Further economic growth will largely come from small and medium-sized enterprises（SMEs）， which contribute more than 50 percent to China’s GDP， tax revenue， export and investment， and create roughly 80 percent of jobs in the country. For this reason， the government should mobilize all available financial resources to support their development.
Currently， a total of 1，100 enterprises have been listed on the SME board and ChiNext， the growth enterprise board， at the Shenzhen Stock Exchange， and some of them have played a leading role in the business world， despite the fact that they also encounter an array of problems arising from environmental protection， product quality， and so forth.
The growth of SMEs can also propel the urbanization of small towns and villages. The government should put more favorable policies in place to facilitate their development.
Bottleneck of rural development
Du Ying， CPPCC member， Vice Minister of the National Development and Reform Commission
Agriculture is the basis of China’s economy. On many occasions， the government has reiterated that our population of 1.3 billion should strive to realize food self-sufficiency.
Although China’s grain output has increased for 10 consecutive years to 600 million tons， rural development is plagued by three problems.
deepening reform
Xu Shousheng， NPC deputy， Secretary of Communist Party of China （CPC） Hunan Provincial Committee
The government work report reflects the fresh mindset held by the new leadership on how to govern the country. It’s a pragmatic and inspir- ing report， which accurately addresses all of the problems that are of deep concern to Chinese citizens. As for the obstacles in the way of China’s future reform， the report doesn’t avoid talking about them or attempt to cover them up. It specifically lists all the problems and spells out how to take on these challenges.
China’s economic structural adjustment has made marked progress. The proportion for which the service industry accounts for has surpassed that of the manufacturing industry for the first time. The growth rate in the less developed central and western parts of the country was much higher than that in the richer eastern region in 2013， signaling more balanced development across the board. An array of measures have successfully helped to deepen reforms， such as using value-added tax to replace turnover tax and setting up the pilot Shanghai free trade zone. China’s fast development in 2013 has proved the doomsayers wrong.
I have two suggestions. Firstly， the institutional reform in the State Council should be accelerated. Right now， certain departments under the State Council still have overlapping functions. This has led to inefficiency and a buck-passing work style. Any department that needs dismantling should be dismantled as soon as possible.
Second， the central region of China has been positioned as a transportation hub. Building such a hub requires hefty investment， which results in central provinces being heavily indebted. Such debt should be shouldered by the Central Government and local governments together rather than local governments alone.
Innovation-driven growth Huang Boyun， NPC deputy， an academician with the Chinese Academy of Engineering
Premier Li’s work report has mentioned “innovation-driven growth” a lot. How exactly to marry economic and technological development and how to transform scientific achievements into productivity represent the main issues？
Progress has been made in that regard. But more needs to be done. First， stock ownership incentives should be implemented in innovation parks so that scientists can enjoy more benefits from the fruits of their research. Second， approval of innovation-related issued should be delegated to provincial governments.
Economic transformation
Huang Taiyan， NPC deputy， President of Liaoning University
China can absolutely meet the GDP growth target it has set itself for 2014 but faces lots of challenges in terms of the CPI limit. Firstly， it takes time to digest the excess currency that the central bank issued to stimulate growth. Secondly， the prices of the labor， land and raw materials are constantly increasing in China.
China experienced three decades of super-fast growth at the expense of cheap labor costs. Now， it faces more restrictions from limited natural resources and an aging society. Domestic consumption should be the new growth engine.
In the past， many Chinese would buy several suitcases of luxurious products during their overseas trips. This shows Chinese people have the ability to consume， but that the domestic market presents some problems. Therefore， the core of China’s economic transformation should be “made-in-China” products， and focus should be placed on their quality， branding and credibility.
Enriching ethnic people
Nyima Zhoima， NPC deputy， Secretary of the CPC Haibei Tibetan Autonomous Prefecture Committee， Qinghai Province
Although not lengthy， Premier Li’s report has concisely summarized government work in the past year as well as paving the road ahead for government work this year. The proposed growth targets are in line with the reality of China’s situation. Colloquial words and proverbs have been used in the report so that everyone can easily relate to the report.
As an NPC deputy from a minority ethnic group， I am especially thrilled by the Central Government’s proposed measures regarding regions inhabited by ethnic groups. Uniting people from all ethnic groups has been high on the priority list in the government work agenda.
I think that can be achieved by factoring in the following three aspects—building community-level connections with these ethnic groups， strengthening social security and， most importantly， economically enriching them. Development is key to solving all of the problems currently faced in China. Similarly， development can also be the “silver bullet” to all the issues that regions containing different ethnic groups are now facing. In Haibei Tibetan Autonomous Prefecture， we have greatly cultivated our tourism industry， which created many jobs and greatly increased local incomes.
Legal system for the market
Li Ruogu， CPPCC member， Chairman and President of the Export-Import Bank of China
Before streamlining administration and instituting decentralization， the government should build a complete system of laws to keep the market in order.
In the past， similar campaigns were launched to reduce government intervention， but rarely worked. Without governmental administration， the market should be supervised and controlled by law. Hence， the existing legal system should be renovated to ensure justice and equity. For example， independent bankruptcy courts should be set up to handle bankruptcy cases and to prevent local protectionism.
Supporting SMEs
Chen Dongzheng， CPPCC member， President of the Shenzhen Stock Exchange
Further economic growth will largely come from small and medium-sized enterprises（SMEs）， which contribute more than 50 percent to China’s GDP， tax revenue， export and investment， and create roughly 80 percent of jobs in the country. For this reason， the government should mobilize all available financial resources to support their development.
Currently， a total of 1，100 enterprises have been listed on the SME board and ChiNext， the growth enterprise board， at the Shenzhen Stock Exchange， and some of them have played a leading role in the business world， despite the fact that they also encounter an array of problems arising from environmental protection， product quality， and so forth.
The growth of SMEs can also propel the urbanization of small towns and villages. The government should put more favorable policies in place to facilitate their development.
Bottleneck of rural development
Du Ying， CPPCC member， Vice Minister of the National Development and Reform Commission
Agriculture is the basis of China’s economy. On many occasions， the government has reiterated that our population of 1.3 billion should strive to realize food self-sufficiency.
Although China’s grain output has increased for 10 consecutive years to 600 million tons， rural development is plagued by three problems.