We must act in accordance with objective laws. In our modernization drive we must always proceed from actual conditions in the country and conscientiously abide by objective laws. We should work energetically and seize opportunities to speed up development， but we must not ignore reality， recklessly expand the scale of development and only pursue rapid economic growth. If we do not keep this in mind， we could end up “just spinning our wheels and going nowhere” or even suffering serious losses. Whether we are doing economic work or other work， we must strive for real results by combining our subjective initiative with adherence to objective laws.
In reviewing our work of the past year， we clearly see that many problems and difficulties remain in our economic and social development. First， although the outstanding problems in economic activities have been somewhat alleviated， they have yet to be fundamentally solved. Weaknesses in agriculture as the foundation of the economy still have not improved substantially， and it has become harder to continue increasing grain production and rural incomes. In addition， there is the possibility of a return to overheating in fixed asset investment， supplies of coal， electricity， petroleum and transportation are still very tight， and there is still considerable inflationary pressure on prices.
We must strengthen and improve macroregulation. Macroregulation has been an important way of implementing a scientific outlook on development over the past two years. Both macroregulation and market forces are integral components of the socialist market economy. We need to make better use of the basic role of market forces in allocating resources and carry out macroregulation well. It is important to adapt the direction， focus， timing and intensity of regulation to economic changes and to improve the methods of exercising it， which is mainly through economic and legal means supplemented by administrative means when necessary， in order to promote economic stability and sustained and rapid economic development.