Hu, also general secretary of the CPC Central Committee, highly valued Deng Xiaoping, Chinese paramount leader at that time, and his most senior associates for their bold decision on restructuring the national economy and opening up to the outside world.

Hu also praised the landmark event of the Third Plenary Session of the 11th CPC Central Committee, on which the central leadership took efforts to mobilize all ranking officials to conduct reformist steps.

Hu said the CPC has successfully transformed inertia resulting from the planned economy to the dynamic socialist market economy, shaping the mechanism that the public ownership plays primary roles while various types of ownership are thriving.

The Chinese economy management policies underscore the comfortable combination of macro control and market dynamics, Hu said.

In tandem with the economic reform, Hu said, the central leadership continuously deepened political, cultural and social restructuring, which helped stimulate economic prosperity as well as social harmony.

Hu said the all-around opening to the outside world has brought remarkable fruits to the Chinese nation, making the country the third biggest player in international trade and the top one in reserving foreign currencies. Under the market-friendly framework, China has attracted nearly one trillion U.S. dollars in foreign direct investment.

The brave transformation also made China the world's fourth powerful economy in terms of gross domestic product, with 24.95 trillion yuan (US$3.6 trillion) in 2007 from 364.5 billion yuan, Hu said.

The Chinese president said the feat of feeding 20 percent of the world's population is quite a contribution to the world, with the personal disposable income rising from 343 yuan to 13,786 yuan. The existing population in poverty greatly shrank to 14 million, from 250 million in 1978.

Hu said China has vigorously pushed forward the socialist democratic politics, featuring the parliamentary system of the National People's Congress, the political consultation arrangement under the CPC leadership, the autonomous governance mechanism in areas populated by ethnic groups, as well as the socialist legal system with Chinese characteristics.

Hu said the pursuit of advanced socialist spirits and culture helped increase cohesion in hearts and minds among the whole Chinese nation.

The government spared no efforts to bettering social welfare, including free nine-year compulsory education, the medical care network and reliable social security, Hu said.

Hu, also chairman of the Central Military Commission, said the CPC leadership in the armed forces has to be insisted on and the People's Liberation Army (PLA) would take more missions in protecting national security, building the country and playing decisive roles in disaster relief.

Hu hailed significant steps in achieving the reunification under the principle of "one country, two systems." With that policy in effect, Hong Kong and Macao are keeping themselves stable and prosperous. After the historic removal of ban on direct links between the mainland and Taiwan, the cross-Strait relation is showing a new prospect.

Hu said the independent foreign policy of peace helped China forge comprehensive ties with developed countries and amiable relations with neighboring countries.

Hu said the CPC has to strictly discipline itself and improve its capability in good governance, corruption resistance and risk control.

He reiterated the principled guidance for a secure and prosperous future.

The first and foremost is to stick to the combination of the Marxist principles and the sinified Marxism, in order to provide theoretical guiding for new rounds of reform and opening.

Secondly, the correct direction of the reform and opening must be steered, with economic construction at the core of the process that combines the Four Cardinal Principles and the reform and open-up policy.

Thirdly, it is important to integrate the pioneering spirits of the people and the CPC leadership.

Fourthly, combination should also be highlighted between the fundamental socialist institutions and development of the market economy, which is expected to bring about vitality in reform and development in China.

Fifthly, the CPC would further push forward political reform in a drive to offer institutional and legal insurance for the socialist modernization.

Sixthly, productivity development should always be concerted with ethics enhancement.

Seventhly, efficiency improvement should be joined with the unswerving pursuit of social equality.

Eighthly, while taking further steps in joining in the globalization, China should always keep independent.

Ninthly, reform and development should go together with maintenance of social stability.

Finally, socialism with Chinese characteristics requires the ruling CPC to improve its capability in governance, corruption resistance and risk control.

Hu said China is still faced with difficulties such as low-efficient modes of development, wealth imbalance between the rich and the poor, and lagging economic state and underdeveloped livelihood in some rural areas.

"The experience in the past three decades tells us," Hu said, "the decision on adopting reform and opening-up has been in agreement with the people's thoughts, compatible with modern tides, and completely right."

Hu said the CPC would insist on holding high the banner of the socialism with Chinese characteristics and further sinifying Marxism; continuing the right way of reform and development towards a vigorous, highly efficient, more open and scientific mechanism; and letting all the people to share the economic and social fruits achieved by the reform and open-up.

Hu said the Chinese are striving for the revitalization of the great nation and making new contribution to the human society.