Huang Shouhong:

The objective law and historical trend are independent of people's wishes. People's opinions may differ, but facts speak louder than words. Business leaders choose where and how to make investments depending on their own considerations. In the past two years, China has introduced a large proportion of foreign investment at a fast pace in the international community. It means that foreign business leaders are optimistic of the Chinese market.

As Mr. Sun Guojun said, China will further open its market despite great difficulties this year. We did not slow down or cut back opening up, but instead decided to adopt major policy measures to open our door wider to foreign businesses and foreign investment. For example, we will shorten the negative list for foreign investment, further open up service and manufacturing industries, and establish new pilot free trade zones. The idea of reform and opening up is run through the whole work report.

CNBC:

You said you have collected considerable local feedback in preparation for this report. What is the local attitude toward employment and collaborations between SMEs and foreign businesses? What is their plan to boost employment? Thank you.

Huang Shouhong:

One of pressing problems arising in China's current economic development is employment and people's wellbeing. Impacted by the pandemic, some industries, especially in the service sector, and certain enterprises, especially micro-, small and medium-sized businesses, are facing great difficulties. Some companies have laid off employees or reduced pay rates. Why does the report speak of maintaining security in six areas and placing employment at the top of the list under such circumstances? Because employment provides our people a steady livelihood, and it is the most fundamental factor underpinning economic development. What do we rely on to maintain security in employment? The answer is to protect enterprises and market entities, especially micro-, small and medium-sized businesses. These are major channels for people to get jobs, and more than 80% of employment depends on them.

In response to the current difficulties facing enterprises, especially those micro-, small and medium businesses, the report set out a series of measures aimed at maintaining employment security. We have cut taxes and fees for enterprises on a large scale, especially for the vulnerable ones I have mentioned. We cut taxes and fees by 2.36 trillion yuan last year, and we expect that these measures will see additional savings of more than 2.5 trillion yuan for enterprises throughout this year. In addition, there are some policies to reduce enterprise operating costs. For example, the policy of reducing electricity prices will be extended to the end of the year, and the rates for internet access services will be cut by 15% on average. A hot issue in the reports of the recent two years has been the continuous decrease of the rates. Everyone has benefited and happily enjoyed the increased convenience.

The report also specified a series of measures in the financial sector to alleviate the current difficulties of small and micro-enterprises and employment difficulties. In macro policies in particular, it specified development of new monetary policy instruments that can directly bring benefits to enterprises. Stabilizing employment is the most important task for China this year, which will ensure the wellbeing of the people. It is the most important task and where the greatest achievement lies. The reason why we have not set a specific target for economic growth is largely that we aim to focus everyone's enthusiasm, attention and energy on ensuring employment, ensuring the wellbeing of the people, and protecting market entities. All our policies must directly work on the six areas, especially job security, basic living needs, and operations of market entities. We have many measures to maintain employment security.

However, we all know that the unemployment rate will definitely rise this year. Unemployment is a global problem, and the unemployment rates in countries around the world are much higher than usual. For China, although we are making our best efforts and adopting all possible measures, the unemployment rate may still increase slightly, and there will be more people out of work. What should we do in this situation? We have measures not only in expanding employment, but also in extending the coverage of unemployment insurance.

According to the report, the coverage of unemployment insurance will be extended to ensure that all those underwriting the insurance are provided for, and there are some new measures being introduced this year. For example, it was stipulated in the past that people who were in the unemployment insurance scheme for less than a year were not qualified to claim benefits, but they will be covered this year. Another example is that rural migrant workers will be covered in the locality where they are living, and that subsistence allowances will be made promptly available to eligible urban unemployed people and migrant workers who have returned home.

Some people are concerned about our ability to achieve this. Please rest assured. We now have a surplus of over 460 billion yuan in the unemployment insurance fund, and over two trillion yuan of strategic reserves in the social security fund. We will also promote provincial-level coordination of unemployment insurance this year. Through such a series of measures, we have the ability and the means to address the unemployment trend. In the past two years, we have been transferring a portion of state capital to top up social security funds and increasing the centrally-regulated share of basic aged-care pension funds. This year it will be increased to 4%. The people's quality of life will be ensured and improved. In the special and difficult period of this year, governments should take the lead in tightening their belt. As the economic situation improves, employment, especially the operations of small and micro enterprises, will certainly improve accordingly. Thank you.