CCTV:

Mr. Huang, China's economic performance this year is one of the key points of common interest. At the beginning of last year, many people, both at home and abroad, expressed pessimistic views about China's economic performance. However, figures published today show that performance has beaten their expectations. But, there are still talks of pessimism. Why is this? What is the real picture of our economy?

Huang Shouhong:

China's economic development has always been surprising in a good way these past years. As we all know, some international media have kept dampening expectations of the Chinese economy, predicting a hard landing from time to time. I once noticed a cover picture showing a skier speeding down a mountain trail comparing China's economic development to such a trajectory. However, facts have proven such reports wrong. Why? China's economy has its own resilience, potential and advantages; it also has a unique and effective internal mechanism for maintaining balance to resist risks. Likewise, China's economic growth was also surprising last year. The situation at the beginning of last year and the time when the annual session of the National People's Congress was held was quite different from how things are going now. Back then, people from various quarters were bearish about China's economy. We were indeed facing a tough time back then as major economic indicators had slipped in the preceding months. Premier Li Keqiang stressed when delivering the government work report last year the need to be prepared for handling a more difficult and complicated situation.

Through efforts on different sides, the Chinese economy started to improve gradually from the third quarter last year, and growth momentum has continued until today. As an ancient Chinese poem goes, "Where hills bend, streams wind and the pathway seems to end. Past dark willows and flowers in bloom lies another village". Every cloud has a silver lining. There are multiple reasons for the improvement. I will only stress one important point here: New growth drivers are picking up pace and strongly supporting the economy. There are two aspects important to the new growth drivers. The first is: new technologies, new industries, new business forms and new models. The Chinese economy has exhibited great vitality and grown rapidly during the transformation. I believe all of you here have already deeply felt this. For example, information industry and online shopping have witnessed a massive upsurge. Tmall.com sales exceeded 120 billion yuan during Taobao's annual Singles' Day shopping event this year.

Huang Shouhong:

For another example, someone said tourism is either a weather vane or barometer for the Chinese economy. Chinese people would like to live within their means. In the past, they saw tourism was a luxury item of consumption; now, it has become a necessity. If Chinese people don't have much money, and their families can't live a good life, who will be in the mood for touring? They will not go. So, when they go on a tour, they must have enough money as well as time and be in a good mood. Therefore, the life of ordinary Chinese people is a very important aspect in observing the economy,.

Second, traditional industries have revived in the process of transformation and upgrading, and now form a strong new momentum. Many traditional industries were forced by market demands to cut excessive industrial capacity and speed up their upgrading, which was beneficial to creating new momentum. So, when observing the development of the Chinese economy in the past year, as well as considering its development in the future, you have to look closely at new momentum being imparted for China's economic development. Today Premier Li also listed several statistics, including the number of newly-registered enterprises and other market entities of various kinds. The number of newly-registered enterprise grew 24.5 percent last year, which means an average of 15,000 new enterprises being registered every day. Adding individually-owned businesses, the number of various market entities saw an increase of 45,000 every day. Those new market entities will definitely become a new source of power for economic development. Of course, there will be elements of life and death for those new entities, but if consider that, currently, 70 percent of them are active, the incremental growth is still very big. Among them, there will be giant enterprises standing out in the future.

All in all, new momentum in the Chinese economy will come from either the new industries and new market entities, or the traditional industries that have been able to achieve transformation and upgrading. When you add the two together, these not only promoted great development for the past year, but also ensures better development for this year, as well as greater hopes for the future. Thank you.

The Nihon Keizai Shimbun:

The Chinese government releases detailed figures for the military budget annually during the two sessions period, so would you share the detailed budget numbers for 2017?

Huang Shouhong:

China is adamant in following a path of peaceful development, upholding the strategic guideline of positive defense; so every year, China will determine the scale of the national defense budget based on the defense construction demands and the level of economic development. The defense budget's proportion in China's GDP is much lower than the average international level. This year there will be some increase, but the extent will not be very high. As for the detailed figures, you may check the fiscal budget report, or check with relevant departments. Thanks.