We have paid great attention to developing an advanced socialist culture in order to meet growing public demand. We have made significant progress in constructing a socialist core value system, and achieved success in building Marxist ideological theory. We have instituted campaigns for advanced spiritual civilization and public morality, and boosted efforts to provide moral and ethical education for young people. The cultural sector has been developing vigorously and the cultural industry is experiencing unprecedented prosperity. China's soft power is growing and the Chinese people are becoming better educated. The cohesiveness of the Chinese nation is strengthening conspicuously.

We have paid great attention to developing public welfare, and succeeded in developing and consolidating social harmony and stability. Free and compulsory nine-year education in urban and rural areas has been realized. The general scale of higher education and total enrolment in middle and elementary schools rank first in the world, while the quality of educational institutions is steadily improving. The scale of employment is gradually expanding and the vigor of job creation in the whole society is conspicuously gaining strength. The building of a social security system is accelerating, thus a social security umbrella covering every urban and rural citizen is gradually taking shape. The public healthcare system and basic medical service system are being improved and a reformed cooperative healthcare system in rural areas has expanded to reach nearly every part of the country. Social management is gradually improving and thus social stability is well maintained.

While the absolute leadership of the Party over military forces remains unchanged, China's national defense force and military development have seen substantial progress. Modernization and standardization of the armed forces have comprehensively been progressing. The military strategy and policies set for the new era have been implemented step by step and the building a modern armed forces with Chinese characteristics is well under way. We have made the necessary cuts in the numbers of military personnel, while weaponry has been greatly improved. All military and armed police units have ceased from doing business operation to gain financial help. The relationship of the armed forces with the government and with the public is in good condition. Therefore, the capability of the People's Liberation Army to fulfill its historical task has been strengthened comprehensively, and it has been playing an important role in national defense, economic construction and rescue work in natural disasters.

The basic policy of "one country, two systems" has been implemented successfully, a significant step toward China's peaceful unification. Hong Kong and Macao returned to the motherland and principles such as "one country, two systems," "Hong Kong people governing Hong Kong," "Macao people governing Macao" and a high degree of autonomy have been carried out comprehensively. The Hong Kong and Macao special administrative regions have maintained stability and prosperity. As for the cross-Straits relations between China's mainland and Taiwan, recent years have seen increasingly frequent exchanges in economy, culture and personnel. Exchanges between parties on both sides have been successfully launched. Direct air, shipping and postal links between China's mainland and Taiwan have been established in a historic breakthrough. Remarkable achievements have been made in the battle against the "Taiwan independence" movement. Prospects for the future of cross-Straits relations are bright.

We unswervingly pursue an independent foreign policy of peace. Significant achievements have been made in multi-directional diplomacy. We have upheld the diplomatic principle of maintaining world peace and promoting common development, thus developing an all-round relationship with the developed countries, enhancing cordial relationships with bordering countries and consolidating traditional friendships with developing countries. China has actively participated in multilateral diplomacy, while taking on corresponding international duties. China's international status is rising and its influence is increasing, thus giving China a more constructive role in international affairs.

We have upheld the principles of the Party managing the Party and imposing strict discipline, and achieved a noticeably improvement in standards of Party leadership and governance and in its ability to resist corruption and malpractice. The great engineering of party building has progressed in all dimensions. The campaign to strengthen the Party's governing capacity and to educate Party members in preserving their vanguard nature has been progressing smoothly. Conspicuous achievement has been made in the Party's theory study. Intra-Party democracy has been strengthened. The internal rules and regulations of the Party have been improved. Party organizations at various levels have been enhanced, featuring a vigorous legion of Party members. Because of its continuous devotion to improving the Party's ethical standards, rules and regulations and the fight against corruption, the governing capacity of the Party in leading the reform and opening-up movement and pursuing socialist modernization has greatly increased. The Party's leading role in building socialism with Chinese characteristics has been sustained and strengthened.