He called on Chinese people around the world to join hands to oppose "Taiwan independence" and work for the ultimate reunification of the Chinese nation.

Hu made the speech at a New Year tea party held by the National Committee of the Chinese People's Political Consultative Conference, a top political advisory body composed of various political parties and people from all walks of life.

The tea party was also attended by top leaders of Wu Bangguo, Wen Jiabao, Zeng Qinghong, Wu Guanzheng, Li Changchun, Luo Gan, and presided over by Jia Qinglin, chairman of the CPPCC National Committee.

President Hu said that the mainland's Taiwan policy of "peaceful reunification" and "one country, two systems" will not change. In reiterating his four guiding principles regarding cross-Strait relations, Hu said the mainland will strictly adhere to the one-China principle, continue efforts to seek peaceful reunification, always place its hopes on the Taiwan people, and never compromise in the struggle against "Taiwan independence".

On Hong Kong and Macao, Hu said the central government will support the governments and chief executives of Hong Kong and Macao to administer by law and expand the exchanges and cooperation between the mainland and the two special administrative regions (SARs) of China.

"We will adhere to the policies of one country, two systems, of Hong Kong people governing Hong Kong, and Macao people governing Macao with a high degree of autonomy," Hu said, adding the government will firmly safeguard the long-term prosperity and stability of the two SARs.

BOTH OPPORTUNITIES, CHALLENGES AHEAD

With domestic and international situations undergoing profound changes, China is faced with unprecedented opportunities and challenges, said Hu in an optimistic tone at the party. "Opportunities will in general exceed challenges."

He highlighted the key for the government this year as "timely resolution of contradictions and problems in China's economic and social development," speeding up the construction of a harmonious society to provide an excellent environment and conditions for the convention of the 17th National Congress of the Communist Party of China in the later half of this year.

He said the government will exert more effort in addressing social problems concerning people's life and pursue energy efficiency and environmental protection in its "sound and fast" economic development.

His other New Year resolutions include:

-- pushing forward the reform of the political system in an active and steady manner to expand democracy, especially at local levels;

-- strengthening social security networks, improving medicare services and safety production mechanisms and maintaining public order and social stability;

-- adhering to the absolute leadership of the Party over the People's Liberation Army, promoting military innovation for better national defence;

-- stepping up the fight against corruption and striving to build a clean government, enhancing inner-Party democracy to achieve harmony inside the Party, and constantly improving the Party's administration.

Hu also call on various Parties of the CPPCC to promote unity of different political forces, religions, ethnic groups, social strata and Chinese people at home and abroad, so as to achieve social harmony.