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Thanks to hard work in the first four years of the 10thFive-Year Plan, the Chinese economy has entered a new round of growth.

In recent years, China’s economic relations with countries worldwide have become closer, and its overall, coordinated and sustainable development has attracted the common concern of the international community.

China is now facing a tight supply of water, arable land, petroleum, iron ores and timber; the prospects for the 11th Five-Year Plan and a longer period of time should not be optimistic.

In 2005, the state will continue to intensify and improve macro control, adopt a prudent financial policy and monetary policy and curb excessive growth of fixed asset investment.

The three noticeable changes occurred to the industrial structure in the 26 years after the reform and opening-up, but in recent years, the proportion of the tertiary industry has declined

Food demand will continue to grow. In the next decades, China’stotal grain demand will go up annually due to population growth, higher living standard and progress in urbanization.

The main features of the rural economy in 2004 are characterized by strong policy measures, favorable market environment, visibly higher peasant income and a major turn for better for grain production.

After two decades or so of rapid economic development since the beginning of reform and opening up, the Chinese economy has entered a new and dynamic period of development.