At 9 a.m. on March 5, the Second Session of the Twelfth National People's Congress opened at the Great Hall of the People, where Premier Li Keqiang delivered the Government Work Report. A careful reading of the 2014 Government Work Report reveals numerous "keywords" related to construction.

Housing market: Break ground on 7 million units of affordable housing

"Improve the housing security system. With the goal of ensuring that all our people have a place to live, we will continue to provide guidance tailored to specific conditions, implement the plan step by step, and assign responsibilities at each level, and we will intensify the construction of government-subsidized housing. This year, we will break ground on over 7 million units, including more than 4.7 million units in various types of rundown areas, and strengthen the construction of supporting facilities. We will increase the proportion of affordable housing in large cities. We will advance the merging of public rental housing and low-rent housing. We will develop new mechanisms and tools for policy-based housing investment and financing, and adopt market-based operating methods to provide long-term, stable, and appropriately priced funding support for the construction of affordable housing. Governments at all levels must increase fiscal input, improve construction quality, ensure fair distribution, and improve the mechanisms for eligibility and exit. We will basically complete 4.8 million units of affordable housing within the year, so that the low-income people who have been eagerly awaiting homes can move into new residences as soon as possible. We will carry out classified regulation tailored to different cities, increase the supply of small and medium-sized commercial housing and homes with shared property rights, curb speculative and investment-driven demand, and promote the sustained and healthy development of the real estate market."

Urbanization: Advance a new type of people-centered urbanization

Urbanization is the path we must take to achieve modernization and an important pillar for breaking down the urban-rural dual structure. We need to improve the systems and mechanisms for integrated urban-rural development, adhere to a new urbanization path that is people-centered, synchronized with industrialization, IT application, and agricultural modernization, features optimized layout, promotes ecological progress, and carries forward culture, follow the laws of development, advance actively yet prudently, and focus on improving quality. For some time to come, we will focus on solving the problems of the existing "three groups of 100 million people": we will help approximately 100 million people who have moved from rural to urban areas become urban residents, redevelop rundown urban areas and urban villages where approximately 100 million people live, and guide approximately 100 million people in the central and western regions to become urbanized locally.

We will carry out the orderly granting of urban residency to people who have moved from rural to urban areas. We will advance reform of the household registration system and implement differentiated household registration policies for cities of different sizes. We will gradually grant urban residency to rural migrant workers and their families who are able and willing to work and do business in cities on a long-term basis. We will establish a residence permit system for rural migrants who have not yet obtained urban residency. We will include more children accompanying migrant workers in cities in urban education and enable them to sit college entrance exams where they live, and implement a plan to upgrade the vocational skills of rural migrant workers. We will steadily extend basic urban public services to all permanent residents, so that rural migrants and urban residents can jointly build and share modern urban civilization.

We will increase support for a new type of urbanization in the central and western regions. We will improve the capacity for industrial development and population agglomeration and encourage rural migrants to find employment nearby. We will accelerate the construction of infrastructure such as transportation, water conservancy, energy, and municipal facilities, and strengthen the staying power of urban agglomerations and towns in the central and western regions. We will optimize the structure of towns in the eastern region and further improve the quality and level of urbanization.

We will strengthen innovation in urban management and institutional development. We need to accelerate the redevelopment of rundown areas on a larger scale; we must never have towering skyscrapers on one side and stretches of rundown areas on the other.

Guided by the National Plan on New Urbanization, we will ensure that relevant plans are coordinated and linked. We will improve the efficiency of urban construction land use, give priority to public transportation, protect historical and cultural heritage and natural landscapes, and avoid cities that all look the same. We will strengthen planning and management for small towns and villages. We will explore mechanisms for sharing the costs of granting urban residency to rural migrants and for diversified investment and financing in urban construction. By improving construction and management, we will make our towns and cities distinctive, suitable for living and working, and more vibrant."

Rural development: Over 70 billion yuan in central budget investment in water conservancy; prudently carry out pilot reforms of the rural land system

"Strengthen the foundation for agricultural and rural development. The state will concentrate resources on building a number of major water conservancy projects. This year, we plan to allocate over 70 billion yuan in central budget investment in water conservancy to support key projects such as water diversion, major water sources, governance of rivers and lakes, and efficient water-saving irrigation. Local governments should strengthen the construction of small and medium-sized water conservancy projects and solve the "last kilometer" problem in water use. We will accelerate the completion of a number of high-standard farmland projects that ensure stable yields despite drought or excessive rain, promptly cultivate a number of important improved crop varieties, and develop and promote a number of new types of high-efficiency agricultural machinery.

We will improve rural infrastructure such as water, electricity, roads, gas, and communications, renovate 2.6 million dilapidated rural houses, and upgrade 200,000 kilometers of rural roads. We will attach great importance to the problems of left-behind children, women, and elderly people in rural areas and of "hollow villages." This year, we will again ensure the safety of drinking water for another 60 million rural residents; through efforts this year and next, all rural residents will be able to drink clean water.

We will actively advance rural reform. We will uphold and improve the basic rural operation system and give farmers more property rights. We will keep rural land contracting relationships stable over the long term, promptly carry out the registration and certification of contracted land management rights and rural collective construction land use rights, guide the orderly transfer of contracted land management rights, and prudently carry out pilot reforms of the rural land system."

Optimizing production capacity: Eliminate 27 million tons of steel, 42 million tons of cement, and 35 million standard cases of flat glass

"Industrial restructuring must rely on reform and advance in both directions.

In advancing, we must be more proactive and effective. We will give priority to developing producer services, advance pilot and demonstration projects for comprehensive reform of the service sector, promote the integrated development of cultural creativity and design services with related industries, and accelerate the development of services such as insurance, business, and science and technology. We will promote the deep integration of IT application and industrialization, encourage enterprises to accelerate technological upgrading and improve precision management, improve policies such as accelerated depreciation of equipment, and enhance the competitiveness of traditional industries. We will establish platforms for entrepreneurship and innovation in emerging industries, catch up with and surpass advanced levels in areas such as next-generation mobile communications, integrated circuits, big data, advanced manufacturing, new energy, and new materials, and lead the development of future industries.

In retreating, we must be more proactive and orderly. We will continue to let market competition determine the survival of the fittest and encourage enterprise mergers and reorganizations. For industries with severe overcapacity, we will tighten environmental, energy consumption, and technical standards, clean up various preferential policies, absorb a portion of existing capacity, and strictly control new additions. This year, we will eliminate outdated production capacity including 27 million tons of steel, 42 million tons of cement, and 35 million standard cases of flat glass, ensure that the tasks of the 12th Five-Year Plan are completed one year ahead of schedule, and truly bring capacity down so that it never rebounds."

Energy conservation and emissions reduction: Take strong measures to strengthen pollution prevention and control; advance ecological protection and development

"Strive to build a beautiful homeland with ecological progress.

Ecological progress affects people's lives and the future of the nation. The expansion of smog and the prominent contradictions of environmental pollution are a red light from nature warning against an extensive development model. We must strengthen ecological and environmental protection and resolve to use tough measures to accomplish tough tasks.

Take strong measures to strengthen pollution prevention and control. Focusing on megacities and regions where smog occurs frequently, taking the treatment of fine particulate matter (PM2.5) and inhalable particulate matter (PM10) as a breakthrough, and addressing key links such as industrial structure, energy efficiency, vehicle emissions, and dust, we will improve new mechanisms for joint participation by government, enterprises, and the public, implement joint regional prevention and control, and thoroughly implement the action plan for preventing and controlling air pollution. This year, we will eliminate 50,000 small coal-fired boilers, advance desulfurization upgrades at 15 million kilowatts of coal-fired power plants, denitrification upgrades at 130 million kilowatts, and dust removal upgrades at 180 million kilowatts, eliminate 6 million yellow-label and old vehicles, and supply National IV standard automotive diesel nationwide. We will implement an action plan for clean water, strengthen the protection of drinking water sources, and advance pollution treatment in key river basins. We will implement soil remediation projects. We will tackle agricultural non-point source pollution and build a beautiful countryside. Just as we declared war on poverty, we will resolutely declare war on pollution.

Promote changes in the way energy is produced and consumed. We will intensify energy conservation and emissions reduction, control total energy consumption, and reduce energy intensity by more than 3.9% this year, while reducing emissions of sulfur dioxide and chemical oxygen demand by 2%. We will increase the share of electricity generated from non-fossil energy, develop smart grids and distributed energy, encourage the development of wind and solar power, and begin construction on a number of hydropower and nuclear power projects. We will strengthen the exploration, extraction, and application of natural gas, coalbed methane, and shale gas. We will advance reform of the pricing of resource products and establish a sound tiered pricing system for household water and gas use. We will implement projects to improve building energy efficiency and bring energy-saving products to the people, develop cleaner production, green and low-carbon technologies, and the circular economy, and improve our ability to respond to climate change. We will strengthen water and material conservation and the comprehensive utilization of resources. We will accelerate the development and application of energy-saving and environmental protection technologies and products, and turn the energy-saving and environmental protection industry into a vibrant sunrise industry.

Advance ecological protection and development. We will continue to carry out the conversion of cropland to forest and grassland, with 500 mu planned this year. We will implement major ecological projects such as returning grazing land to grassland, protecting natural forests, preventing and controlling desertification, conserving water and soil, treating rocky desertification, and restoring wetlands. We will strengthen ecological protection of the Sanjiangyuan region. We will implement the functional zoning system and explore the establishment of cross-regional and cross-basin ecological compensation mechanisms. Ecological and environmental protection benefits the present and future generations. Governments at all levels and the whole of society must take further active action to care for the common homeland on which we depend for survival."

Regional economic development: Promptly plan and build the Silk Road Economic Belt and the Maritime Silk Road

"Create a new situation of high-level opening up.

Opening up and reform go hand in hand and reinforce each other. We need to build a new system of an open economy, advance a new round of opening up, ride the waves in the vast ocean of the international market, use this to drive deeper reform and structural adjustment, and accelerate the cultivation of new advantages in international competition.

Expand all-round proactive opening up. We will continue to actively and effectively use foreign investment, promote the further opening of the service sector, and create a business environment where domestic and foreign enterprises are treated equally and compete fairly, so that China remains a preferred destination for foreign investment. We will build and manage the China (Shanghai) Pilot Free Trade Zone well, develop institutional mechanisms that can be replicated and promoted, and launch a number of new pilot programs. We will expand opening up in inland and border areas, making vast stretches of land hot spots for opening up.

Promote export upgrading and balanced trade development from a strategic height. Total imports and exports are expected to grow by about 7.5% this year. We will stabilize and improve export policies, accelerate reform to facilitate customs clearance, and expand cross-border e-commerce pilot programs. We will implement policies to encourage imports and increase imports of products in short supply domestically. We will guide the transformation and upgrading of processing trade, support enterprises in building their own brands and international marketing networks, develop trade in services and service outsourcing, and improve China's position in the international division of labor. We will encourage the export of large complete sets of equipment such as communications, railway, and power station equipment, so that Chinese equipment enjoys a global reputation.

Enhance competitiveness through going global. We will advance reform of the management of outbound investment, mainly adopting a record-filing system and substantially delegating approval authority. We will improve service support in finance, law, and consular affairs, regulate the order of going global, and promote product exports, project contracting, and labor cooperation. We will promptly plan and build the Silk Road Economic Belt and the 21st Century Maritime Silk Road, advance the construction of the Bangladesh-China-India-Myanmar and China-Pakistan economic corridors, launch a number of major supporting projects, accelerate infrastructure connectivity, and expand new space for international economic and technological cooperation.

Coordinate multilateral, bilateral, and regional opening up and cooperation. We will promote negotiations on agreements such as the Trade in Services Agreement, the Government Procurement Agreement, and the Information Technology Agreement, and accelerate negotiations on new issues such as environmental protection and e-commerce. We will actively participate in the building of high-standard free trade areas, advance negotiations on China-US and China-EU investment agreements, and accelerate free trade area negotiations with South Korea, Australia, and the Gulf Cooperation Council. We will continue to promote trade and investment liberalization and facilitation, achieve mutual benefit and win-win results with all countries, and create a new pattern of positive interaction between opening up and reform and development."

Editor: Wu Yue