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The people-centered development philosophy is not an abstract, abstruse concept. We will not restrict ourselves to lip service or idle reflection but put it into practicein all areas of social and economic development.

Socialism with Chinese characteristics has crossed the threshold into a new era. This is a historic juncture in China’s development. The report of the 19th Party Congress makes strategic plans on socialism with Chinese characteristics in the new era, and requests not only that China should finish building a moderately prosperous society in all respects, thus achieving the first centenary goal, but also that we build on this achievement to embark on a new journey towards the second centenary goal of fully building a modern socialist country.

This new era will be an era of building on past successes to further advance our cause, and of continuing in a new historical context to strive for the success of socialism with Chinese characteristics. It will be an era of securing a decisive victory in building a moderately prosperous society in all respects, and of moving on to all-out efforts to build a great modern socialist country. It will be an era for the Chinese people of all ethnic groups to work together to create a better life for themselves and achieve common prosperity for everyone. It will be an era for all of us, the sons and daughters of the Chinese nation, to strive with one heart to realize the Chinese dream of national rejuvenation. It will be an era that sees China moving closer to the center stage and making greater contributions to mankind.

We will stay on the path of peaceful development and continue to pursue a mutually beneficial strategy of opening up. China will not only develop, but also highlight its responsibility for and contributions to the world, and we will not only benefit the Chinese people, but also benefit the people of the world. The realization of the Chinese dream will bring peace to the world, instead of turbulence; it will bring opportunities, instead of threats.

The challenge of the road is the primary problem relating to the success or failure of the undertakings of the Party, and it is the life of the Party.

In 1962, Comrade Mao Zedong pointed out that “it took Western countries more than three hundred years to develop a great capitalist economy.”

We will promote economic construction, political construction, cultural construction, social construction, and ecological civilization in all areas, promote coordinated modernization in all respects and processes, and build a beautiful China.

Throughout the development cycle of a country, major tasks and challenges may arise during various stages of development and the possibility of a period of stagnation exists in each stage. In the low-income stage, anemic economic growth, lagging human development, political instability and social unrest often lead to a vicious cycle in national development. For instance, many countries in Africa have so far failed to fight poverty effectively and remain mired in the “poverty trap”. In the middle-income stage, many countries fall into the “middle income trap”. Even if countries succeed in overcoming the “middle income trap”, their economic growth may still be plagued by the “high income trap”, with Japan being one such example.

Nearly four decades of reform and opening-up shows that China is one of the few successful cases of development. First, sustained high growth became a reality in China. China’s GNP grew by 32.19 times from 1978 to 2016 at constant prices, that is, an annual increase of 9.6%, of which the annual GDP growth hit 9.9% and 7.8% from 1978 to 2010 (high-speed growth) and from 2011 to 2016 (moderately high-speed growth) respectively on average.

As the 2008 financial crisis unfurled with its impact on global trade and economy, China also saw a transition. The country’s high (even super high) speed growth, which peaked at 14.2% in 2007, slackened to medium-to-high growth, thus entering the new normal era of economic development. In response, international organizations such as the International Monetary Fund and the World Bank began to adjust downward projections of Chinese economic growth. In some international media, the prevailing sentiment toward China’s economic development was one of pessimism.

In 2007, Indermit Gill and Homi Kharas (2007), two World Bank economists, published a report titled An East Asian Renaissance: Ideas for Economic Growth, which suggested that East Asia would soon develop into a middle-income region and proposed the concept of the “middle income trap”. It should be noted that the report did not provide an in-depth interpretation of the concept, nor did it offer a clear income range for the “middle income trap”. In 2011, Homi Kharas and Harinder Kohli (2011) further elaborated on the concept, specifying that when a country escapes the poverty trap in the low-income development stage and enters into the middle-income development phase, the country may face growth stagnation and inability to further move up the ladder into the high-income range.

Whether a country can overcome the “middle income trap” is a test of its governance capability. The above comparative analysis of the practices in various countries shows that tackling the “middle income trap” is only possible when certain conditions are met, which may be summarized as follows.

From now until 2050, China faces an important period of strategic opportunity in relation to its development. China has laid a solid foundation for innovation-driven development, and now has the greatest pool of human resources in the world. Given this unprecedented period of strategic opportunity, China is accelerating its efforts to develop a modern economic system and to build the world’s largest domestic market. Meanwhile, China is actively creating important strategic opportunities for the rest of the world, including Chinese markets, tourists, innovation, green energy initiatives, investment, development aid, plans for global governance, and peaceful diplomacy. All of these opportunities have, for the first time, created the conditions necessary for China to achieve its second centenary goal and build a community with a shared future for mankind.