Chinese Minister of National Development and Reform Commission Ma Kai has given an in-depth analysis on China's current economic situation and made a task list for this year.

In his report at the joint conference held by six ministries in Beijing on Feb.28, Ma Kai said that to sustain the momentum of fast, steady economic growth will be the top priority of the macro-control endeavor which will be consolidated and improved.

He warned that lingering and underlying contradictions and problems still exist and may undermine the healthy development of China's economy. For example, lack of creativity, unreasonable economic structure, rough growth model and the bottleneck of resources and environment. The imbalance of rural and urban economies and social and economic development are yet to be solved.

He said the dilemmas are reflected in six aspects including the issue of agriculture, farmers and countryside, the difficulty to yield more harvest and increase farmers' income.

The risk of investment rebound is looming while the present investment is high and grows at a fast pace. The scale of projects under construction is too large and projects to be launched are too many. Some particular sectors have shown the consequences of oversupply. And the growth model is yet to be improved. Science and technology, as well as talented human resources, are still not strong enough to boost the development.

And reform on systems and mechanisms must continue, Ma Kai said.

In addition, some problems which have direct bearing on the interests of the public have not been solved completely. Work safety has not been ensured effectively.

Given all those above, Ma Kai identifies key tasks for this year, the starting point of the 11th Five-year Plan ending 2010, on the economic growth, rural development, independent innovation, growth model, reform on key areas, and harmonious society. Specifically:

--- Sustain the momentum of fast, steady economic growth. That is the top priority of the macro-control endeavor which will be consolidated and improved. Steady fiscal and monetary policies will continue. Fixed assets investment will still be put under close watch. Consumption should be spurred. And the supply and demand of coal, power and oil will be balanced.

--- Make a good beginning for the prospect of the "new socialist countryside". This year is also the starting point to realize the vision of building a new socialist countryside. The principle of "giving more, taking less" should be adhered to. A permanent incentive mechanism encouraging industrial and urban investment on agriculture and rural areas will be established as soon as possible.

Grain production will be secured. Production and living conditions will be improved in rural areas with the focus on infrastructure of water, gas, road and power. Public utilities will develop faster. And farmers will have more cash cows.

--- Achieve remarkable progress on independent innovation and restructuring. The ability of original innovation, integrated innovation and innovation on the basis of introduced technologies will be strengthened.

Sectors thought to have oversupply will face reorganization, transformation and even closing to optimize the structure. Major equipment manufacturing will enjoy more favorable policies. Key projects will push the localization process of crucial equipment manufacturing forward. Hi-tech industries and the service sector will grow faster. Efforts will also be made to coordinate the development between regions.

--- Take further steps on energy saving and transforming growth model. Resources should be used more efficiently. The circular economy will be encouraged. Meanwhile, ecological undertakings and environmental protection also need more attention.

--- Score breakthroughs on reform of key areas and sectors. Reforms will be proceeded on administrative system, rural development, enterprises, finance, tax revenue, investment system and pricing. The opening-up will be promoted to a higher quality to ensure win-win results. Chinese businesses will implement the strategy of "becoming international" in a proactive and steady way.

--- Stride forward on the road of building a harmonious society. The focus for this year will be on employment, social security system, distribution, and social undertakings. The work safety is especially important. Frequent outbreaks of big incidents must be prevented through more investment and supervision on vulnerable sectors like coal mining, transportation and dangerous chemicals.

What's more, problems in land confiscation, demolition, corporate reshuffling, resettlement of residents in water conservancy projects, as well as pollution, must be addressed.

"Looking into the future, we are standing at a new historical point," declared Ma Kai.