Beijing, Nov 9 (IANS): Xi Jinping, who is all set to become China's next leader, has said the Communist Party of China should grasp unprecedented opportunities and coolly tackle challenges.

To thoroughly understand the theme of the congress, one must understand the historical background and soberly realise that the party is facing unprecedented opportunities and challenges, while the key lies in whether the party can grasp the opportunities and tackle the challenges in a cool-headed way, reported Xinhua from a panel discussion during the ongoing 18th National Congress in which Xi participated.

The theme of the congress explicitly defines the path and goal of the Party, Xi said Thursday.

The congress opened at the Great Hall of the People in central Beijing Thursday, and Hu Jintao delivered a report to the congress on behalf of the 17th CPC Central Committee.

The weeklong meet will see a leadership transition, with Xi succeeding Hu Jintao as president and Le Keqiang becoming the next premier.

The underlying theme of the congress is "to hold high the great banner of socialism with Chinese characteristics, follow the guidance of Deng Xiaoping Theory, the important thought of Three Represents and the Scientific Outlook on Development, free up the mind, implement the policy of reform and opening up, pool our strength, overcome all difficulties, firmly march on the path of socialism with Chinese characteristics, and strive to complete the building of a moderately prosperous society in all respects".

In a simple and explicit way, the congress theme explains four major issues concerning the overall work of the party and the country to people within and outside the party, and to China and the rest of the world, Xi said.

The theme of the congress is based on the full comprehension of current conditions of the world, the nation and the party, the new requirements of the nation's development and new expectations of the people, said Xi, adding that it is closely interlinked with the overall plan for promoting economic, political, cultural, social, and ecological progress in the cause of socialism with Chinese characteristics.

Xinhua reported that the party shall continue to hold high the great banner of socialism with Chinese characteristics, maintain an ideological state to free up the mind, implement the policy of reform and opening up, pool the strength and overcome all difficulties, promote economic, political, cultural, social, and ecological progress and party building in an all-around way.

The party shall unswervingly advance along the path of socialism with Chinese characteristics, and unite to forge ahead with tenacity and resolve, Xi said.

Hu's report gives full play to democracy, he said.

The report is clear-cut, profound, pragmatic and comprehensive, and will become the political manifesto and programme of action to make new victory of socialism with Chinese characteristics under new circumstances, Xinhua reported.