Speakers:
Xiao Yaqing, minister of industry and information technology
Tian Yulong, member of the Leading Party Members' Group of the Ministry of Industry and Information Technology (MIIT) and MIIT chief engineer and spokesperson
Chairperson:
Shou Xiaoli, deputy head of the Press Bureau of the State Council Information Office (SCIO) and SCIO spokesperson
Date:
March 1, 2021
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Matters concerning industry and information technology are of crucial significance to the overall development of both the Communist Party of China (CPC) and the Chinese government. Today, we are delighted to be joined by Mr. Xiao Yaqing, minister of industry and information technology, who will introduce the development of this sector and answer your questions. Also present at today's press conference is Mr. Tian Yulong, a member of the Leading Party Members' Group of the Ministry of Industry and Information Technology (MIIT) and MIIT chief engineer and spokesperson. Now, let's give the floor to Mr. Xiao.
Xiao Yaqing:
Friends from the media, ladies and gentlemen, good morning. Welcome to today's press conference and thank you, Ms. Shou, for the introduction. I would like to take this opportunity to brief you on the situation of the industry and information technology sector in China. As you know, 2020 was an extraordinary year. Facing the challenging and complicated international situation, especially the once-in-a-century COVID-19 pandemic, the MIIT and other government bodies have been working under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, fully implementing the decisions and deployments made by the CPC Central Committee and the State Council. The MIIT has earnestly fulfilled our duties to ensure the supply of protective materials and spared no efforts in helping promote the resumption of work and production of the whole industrial chain. We have also been making new efforts concerning the application of information technology in infrastructure, the development of the internet, and the digital economy. These efforts have provided support in obtaining strategic anti-epidemic progress and helping China's economy realize positive growth. Concrete steps have been taken in building China's strength in cyberspace and manufacturing. As the last year of the 13th Five-Year Plan period, 2020 has marked a successful end to the plan.
Looking back over the past five years, China's industry and information technology sector has made remarkable progress. In general, its overall capacity has been further strengthened. New progress has been made regarding innovation in key fields, while growth drivers continue to strengthen and the development environment keeps improving. These have provided strong support for the stable and healthy development of the real economy and even national economy as a whole. Here, I would like to present three groups of figures:
First, the total value-added of industry in China has grown from 23.5 trillion yuan to 31.3 trillion yuan, making China the world's largest manufacturer for 11 consecutive years. China has contributed nearly 30% of global manufacturing output.
Second, during the 13th Five-Year Plan period, the average growth rate of the value-added output from China's high-tech manufacturing sector reached 10.4%, 4.9 percentage points higher than that of the value-added output from industries above designated size. The proportion of value-added output from the high-tech manufacturing sector in that from industries above designated size has increased from 11.8% to 15.1% since the 13th Five-Year Plan began.
Third, the value-added output from the information transmission and software and information technology service industries has also seen remarkable progress, surging from 1.8 trillion yuan to 3.8 trillion yuan, with the proportion in gross domestic product growing from 2.5% to 3.7%.
Looking ahead, the Fifth Plenary Session of the 19th CPC Central Committee has laid out the blueprint for the 14th Five-Year Plan and beyond, underscoring the need for China's economic development to focus on the real economy, and resolutely building China's strength in manufacturing and cyberspace. These are leading the way for our future works and serve as the basic principle. The industry and information technology system will work based on both domestic and international dynamics, bearing in mind the top priorities of both the CPC and the Chinese government. We will develop a full understanding of the new development stage and resolutely implement the new development philosophy. Following the general principle of pursing progress while ensuring stability, we will take high-quality development as the main theme and take supply-side structural reform as the main task, in a bid to ultimately fulfill people's growing needs for a better life. We will ensure both development and security, and work to modernize the industrial and supply chain. By further consolidating the foundation, making use of advantages and reinforcing weak links, we will work to make new progress in strengthening manufacturing and cyberspace in China.
First, we will further implement the strategy of innovation-driven development, and redouble our strategic support to build China's strength in manufacturing and cyberspace. As you know, new-generation information technology, new material technology and new energy technology are developing at an accelerated pace. This has led to profound changes in the developing pattern of the global economy and the international division of labor. Therefore, we need to stick to the basic requirement of being self-reliant in science and technology, giving full play to China's mega-sized market advantages and new types of national framework. We need to promote innovation-driven development, systematically improve innovation capacity, and pay extra attention to the R&D of core technologies. We must improve the supply system of generic basic technologies. In particular, we need to improve the enterprise-centered innovation system and encourage more investment from enterprises, so as to develop more original and groundbreaking technologies. To encourage innovation in this regard not only means developing more products and techniques from specific technologies and products, but also improving the innovation capacity of our manufacturing sector.
Second, we need to work to improve the stability and competitiveness of industrial and supply chains, in a bid to create new advantages for future development. A self-reliant, complete and resilient industrial and supply chain is crucial to the stable growth of the economy. China has the most complete industrial categories and most varieties of supporting industries, which have deeply integrated into the international division of labor. This not only ensures the stable and healthy development of China's economy, but also greatly contributes to global economic growth. We need to highlight improvements to the stability and competitiveness of China's industrial and supply chain, carry out action plans to improve and strengthen these chains concerning our manufacturing sector, and implement projects to rebuild our industrial foundation. We need to accelerate efforts to reinforce weak links, develop our advantages, and foster emerging industrial chains. We will work to build our capacity in developing self-reliant and controllable industrial and supply chains, effectively safeguard China's economic security and develop new advantages for future development, in a bid to firmly seize the initiative in the fiercely competitive global market.
Third, we will vigorously promote the optimization and upgrade of the industrial structure and improve the overall quality of the industry. The optimization and upgrade of the industrial structure are key to improving our economic competitiveness. We will focus on "accelerating the development of the modern industrial system," make efforts to "consolidate, strengthen, upgrade, and ensure unimpeded flows," while deepening supply-side structural reform, pragmatically transforming development patterns, and enhancing the adaptability of the manufacturing supply system according to domestic demand. We will accelerate the implementation of key technological transformation and upgrading and provide quality improvement. We will build a green manufacturing system, promote orderly relocation of some industries in the domestic market, and strengthen graded cultivation for superior enterprises. We will speed up the transformation and upgrading of traditional industries, and foster the development of emerging and strategic industries such as integrated circuits, 5G, new energy, new materials, high-end equipment, new energy vehicles, and green environmental protection. We will also develop future industries to build industrial clusters with international competitiveness.
Fourth, we will accelerate the development of the digital economy and create new driving forces through a digital revolution. The economic digital transformation is an inevitable trend and we should grasp the direction in which digitalization, networking, and intelligentization are developing; give full play to China's existing foundation and advantages; and coordinate digital industrialization and industrial digitalization. We will fully implement a new generation of information and communication infrastructure via 5G, the industrial internet, and data centers, and promote digital transformation in manufacturing, intelligent manufacturing, and a digital revolution in SMEs. We will deeply integrate a new generation of information technology in manufacturing, as well as mix manufacturing with the service industry and speed up the development of the digital economy. The most fundamental pursuit is to promote the development of the real economy.
Fifth, we will further deepen reform, expand high-level opening-up, and enhance new development vitality. The development and achievements in the industrial and information industry rely on reform and opening-up. Implementing the 14th Five-Year Plan (2021-2025) and pursuing new development in the future, we also need to deepen reform and opening-up. In order to realize our goals of building China into a cyber power and a manufacturer of quality, we should devote more efforts to reform and opening-up, make better use of breakthroughs, and take a leading role in reform and maintain stability in manufacturing output. We will press ahead with reforms to streamline administration and delegate power, improve regulation, and upgrade services, and implement measures for reforming the market-based allocation of production factors. We will strengthen industrial policy guidance, make manufacturing more attractive to all types of resource factors, and deeply integrate reform and development. We will further promote efficient interconnection, expand opening up, fully open general manufacturing, and relax restrictions on market access. By doing these things, we can better utilize domestic and international resources and markets, form safer and more controllable industrial chains with more innovation and higher added value, and cultivate additional advantages for Chinese enterprises to participate in international cooperation and competition.
That's all for my introduction. Mr. Tian Yulong and I will now answer your questions. Thank you.
Shou Xiaoli:
Thank you, Mr. Xiao. Now the floor is open to questions. Please state the name of your news outlet before asking your question. Thank you.
