Under the new historical circumstances, reform measures such as streamlining administration and scaling back administrative power are no expediency but important steps that both deliver short-term benefits and meet long-term needs. To realize the dual objectives of maintaining a medium-high-level growth rate and moving toward a medium-high-level of development, we need to foster new growth drivers through such reform as streamlining administration and scaling back administrative power. With a fluid situation, the world economic recovery is an uphill journey. The Chinese economy has entered a state of "new normal" and a critical stage where we need to deal simultaneously with slower economic growth, difficult structural adjustments, and the impacts of previous economic stimulus measures. In the first quarter this year, the economy faced many headwinds, but thanks to the targeted regulation measures we adopted since the second half of last year, the downward pressure has been somewhat offset. Now the economic performance is stable on the whole, with positive trends seen in some aspects. For instance, the surveyed unemployment rate dropped in April and industry has been rebounding. But still we are under considerable pressure in other aspects, for example investment is further decreasing. We must roll out more effective measures to sustain the upward momentum and resist the downward pressure. Fundamentally speaking, this requires the government to streamline administration and scale back its administrative power, ease restrictions and strengthen regulation where necessary, and improve services. We have both the confidence to keep the economic performance within a proper range, and the capability to reach the main goals for this year and maintain medium-high rate and level of growth for a fairly long time to come. We are confident because the Chinese economy has big potential, strong resilience, and ample space for readjustment. As long as we stay committed to deepen reform and strengthen the twin engines for economic growth, we will build up stronger and longer lasting force for development, and through hard efforts, bring about a new round of stable and enduring growth for the Chinese economy. Streamlining administration and scaling back administrative power is also essential for building a new system for an open economy. With profound adjustment in the global economic landscape and changing conditions of resource and production factors, our traditional competitive strengths are waning. Weak demand in the international market means heavy pressure for our imports and exports to grow. Therefore, we must speed up the building of an open economy and develop a network of high-standard free trade zones open to all other countries and an international and law-based business environment. We must explore the use of a management model based on pre-establishment national treatment and a negative list, foster and expand new competitive strengths in international cooperation. To achieve these, it is essential for the government to streamline administration and scale back administrative power, lift or exercise regulation where necessary and provide better services. I visited the four free trade zones, including the one in Shanghai. A major feature of them is streamlined administration and devolved administrative power that enable companies to get registered and investment projects to get started more quickly. To improve governance capacity, the government needs to deepen such reform as streamlining administration and scaling back administrative power. The government should withdraw from certain areas as needed so as to do a better job where its role is duly required, just as "cutting off extra branches and leaves helps to make the trunk stronger", so to speak. Only when the government further delegates power where necessary, focuses on where regulation is needed, and provides adequate services, can it be possible for us to come up with new practices in governance, and better meet people's will, promote development and facilitate social harmony.
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