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The Report on the Work of the Government, passed on Wednesday at the Fifth Session of the 11th National People's Congress, has set out major government tasks for this year.

Recently the central government has pledged to open the more heavily state-controlled and monopolized sectors to private investment.

JINAN, Feb. 4 (Xinhua) -- China's massive project to divert water from the south to its arid north will be partially completed this year and will start supplying water in 2013, a water conservancy official in the eastern Shandong Province said Saturday.

Government spending and tax-reduction should be directed to rural-related issues and small and micro-sized enterprises, focusing on stabilizing prices and improving people's livelihoods, so as to create a favorable environment for enterprises, technological innovation and restructuring, he said.

Panetta's visit follows the strategic shift toward Asia announced by US President Barack Obama last year, when the president announced plans to increase military presence in the region by 2017 despite cuts to the military budget.