I. Four "unexpected" economic development this year

The central economic work conference at the end of last year put forward a series of important measures around the "six stabilizers", especially stabilizing growth. At that time, the central economic work conference put forward in particular to maintain economic operation in a reasonable range, to ensure that the economy to achieve the organic unity of quantitative growth and quality improvement. Therefore, according to the measures introduced at the Central Economic Conference at the end of last year, if they can be put in place, there should be no problem in keeping the economic growth at around six this year. Unexpectedly, at the beginning of the new year there is a new crown epidemic, all of a sudden disrupted the normal course of our economic operations, this is the first "did not expect".

Thanks to our institutional strengths and the concerted efforts of the whole country, we were able to contain the spread of the epidemic very quickly. However, we did not expect that during the window period of our fight against the epidemic, some Western countries, based on their arrogance and prejudice, would eventually cause the spread of the epidemic worldwide. This makes us in the fight against the epidemic, can only be outside to prevent the importation of internal rebound, the economy in the normalization of the fight against the epidemic process to move forward, this is the second "did not expect".

We thought that the West should fight against such a big epidemic, but we didn't realize that people dumped China, blamed China for the spread of the epidemic, and not only did not actively fight against the epidemic, but also intensified trade protectionism, unilateralism, hegemony, and strengthened the blockade of China's development, which is the third "unanticipated".

Basically, we are pushing forward our economic development in the midst of multiple pressures, but we did not expect that our economy would maintain a rapid momentum of development in the face of so many difficulties and a severe external environment, with a positive growth rate of 0.7% in the first nine months, an economic growth rate that is beyond the expectation of many people, while in sharp contrast, the economies of the major emerging and developed countries are all on the downward trend, which is the fourth "unanticipated". This is the fourth "unexpected".

This year, China's economy is moving forward in the face of the four "unanticipated" conditions, and the development and growth of the economy have exceeded our expectations, which is the first aspect that I would like to share with you.

II. Major challenges to the promotion of economic development at present and in the future

First of all, we have to see that the pressure of economic downturn has not been dissolved, only because of the epidemic and temporarily out of the focus of people's attention. At the same time, the international environment is becoming increasingly complex, instability and uncertainty increased significantly, the world is in a period of turbulence and change, the blockade and suppression of China will not be reduced, but will only show a different form, so the external environment of China's economy will tighten. Secondly, the domestic economy is in a period of transition, shifting from high-speed growth to high-quality development. To achieve high-quality development must change the mode of development, must convert the economic momentum, must adjust and optimize the economic structure, must promote quality change, efficiency change, power change. This year, the central government has put forward the strategic idea of "promoting the formation of a new development pattern that is dominated by the domestic macro-cycle and mutually reinforcing by the domestic and international double-cycle", which is a major strategic decision to deal with the present and the long term, improve the level of economic development, and is conducive to shaping a new advantage in international economic cooperation and competition.

To promote the formation of the new pattern, we have a lot of favorable conditions, such as institutional advantages, human resources, broad markets, and the people's strong sense of the big picture, the government and the market drive the two wheels. But what determines our achievements is often not in the advantages, but in the degree of overcoming problems and solving them. So we need to recognize the challenges in promoting the formation of a two-cycle pattern and promoting sustained and steady economic growth, and there are four key challenges.

The first challenge is the constraint of supply quality. First, although China has engaged in supply-side structural reform over the past few years, and the overall supply quality has improved, we can't be too optimistic, and the quality of products of a considerable scale is not high. We always say that there are more than 200 products in the world's first, but we rarely have the world's leading brand-name products, our supply system is very complete, there are 41 categories, 207 in the category, 666 sub-categories, we can make anything, but also a large number of imports from abroad, costing more than 11 trillion yuan a year. Second, many special products need to be imported. There is a shortage of resources, but also because we do not have strong technical capabilities, relatively weak. In terms of resource shortages, such as oil, specialty steel foreign dependence is relatively high. From the point of view of weak technological capacity, for example, many seeds in agriculture need to be imported, and chips were imported last year at a cost of 300 billion U.S. dollars. So this is also a manifestation of the poor quality of the supply side. Third, the products and services are disconnected, the products are good not necessarily good service, often heavy sales, light after-sales service, so it is bound to affect the development of the domestic market.

The second challenge, the key core technology is not strong. In recent years, the central government has been emphasizing this issue, the key core technology is not strong on the formation of our dual-cycle pattern what impact? Without the support of key core technologies, without what we call the "four bases": core basic components, advanced basic technology, key basic materials, basic industrial technology to do support, industrial base of advanced and industrial modernization can not be completed, it is difficult to dock the world's high-level industrial chain, can not participate in the world's big cycle. Therefore, the lack of strong key core technologies will affect the domestic economic cycle and the international economic cycle.

The third challenge is the unbalanced development of regions and urban and rural areas. Our regional, urban and rural disparities are relatively large, and by definition, the potential is also relatively large. But this potential is only latent capacity that needs to be stimulated. If the gap is too wide and not addressed, not only will it fail to stimulate demand, but it will also affect social stability. We now see that the gap between east and west has not been completely resolved, and at the same time, the gap between north and south has emerged; the development of the city is getting faster and faster, more and more sophisticated and smarter, while the rural areas are also developing, but relatively slowly. In addition, the income gap between members of society is widening.

The fourth challenge is that there are still weaknesses in governance capacity, or that it is uneven and not highly modernized. How can this have an impact on our double-cycle pattern? First, local protectionism and localism have led to regional blockades, market segmentation, fragmentation, and vicious competition, which has led to mismatch and reallocation of resources, as well as the inability of resource elements to flow freely and autonomously, which will affect overall innovation. Secondly, there is the problem of not wanting to act, not good at acting, not being able to act, and acting negatively, especially now there are a lot of negatively acting, he himself does not do anything, but also does not ask others to do anything. Third, the top and bottom are not connected, the top of the transformation of the function below can not catch. Fourth, the technical means of support is not enough, the level of intelligence and precision is not enough.