CNR:

We noticed the huge impact of the pandemic on the Chinese and global economy since last year, but China's industrial chains and supply chains have withstood the test and made important contributions to epidemic prevention and control and steady economic growth. What plans and measures do you have to stabilize and strengthen industrial chains and supply chains during the 14th Five-Year Plan period? Thank you.

Xiao Yaqing:

Thanks for your question. I agree with you in that the impact of the pandemic has been a real stress test on our industrial chains and supply chains. We can say that we have withstood the test over the past year, and showcased our advantages in having a comprehensive industrial system, strong capabilities in mobilizing resources and the ability to transform our industries. An obvious example is our early supply of anti-epidemic materials, such as protective clothing, masks, disinfectants, ventilators, and various drugs and auxiliary medical equipment, and our rapid resumption of work and production subsequently.

However, we must be soberly aware of our shortcomings and weaknesses in the industrial chains and supply chains shown in that process. Therefore, we already started analyzing our 41 major industries and their industrial segments, and drawing the map of key industrial chains to find out our gaps, weaknesses and shortcomings. Of course, we have many advantages. After analyzing our industry chains and supply chains, we will be able to accurately design them, implement targeted policies, and lay a solid foundation. This way, we can strengthen industrial clusters that we excel in, and make up for any prominent shortcomings and other weaknesses. In short, we will bolster our strengths and make up for shortcomings. This will ultimately make our industrial chain more resilient. 

To bolster our strengths means to develop our strong points, and strive for more say in development. For example, we will cultivate new industrial chains, as I have just mentioned, in fields such as 5G, new energy vehicles, high-end medical equipment, biomedicine and new materials, and maintain the integrity of industrial chains while improving the traditional ones. We have a number of traditional industrial chains in a wide range of sectors, with many of them producing the largest volume of products in the entire world. They not only meet the needs of China, but also contribute to global economic growth. Therefore, it is very important to maintain the integrity of our industrial chains. We will also optimize the regional layout of our industrial chains. Different regions in China have quite different economic characteristics. Therefore, we will further tap into the advantages of industrial clusters in accordance with regional characteristics and layouts to make the industrial chains more embedded and competitive.

To make up for shortcomings means to make improvements so that we do not drop the ball at critical moments. It mainly involves two aspects of work. One is to reengineer industrial foundation. It targets fields with obvious weaknesses and shortcomings. We will seek breakthroughs via new mechanisms, such as driving the overall industrial development with an application-oriented approach, and selecting the best candidates to lead key research projects. The other is to speed up the construction of national manufacturing innovation centers. We have set up 17 during the 13th Five-Year Plan period, achieving positive results. Next, we will further accelerate construction of national manufacturing innovation centers to boost industrial innovation. We will motivate local companies and improve our manufacturing innovation system and capabilities based on a market-oriented and international standard. Thank you.