Chen Wenjun:

Thank you, Mr. Ning. Now the floor is open for questions. Please identify the news outlet your work for before raising questions.

CCTV:

The year 2021 marks the beginning of the 14th Five-Year Plan. In 2021, China achieved remarkable achievements in coordinating economic development and pandemic prevention and control and maintained stable economic and social development. My questions are for Mr. Ning. What factors played important roles? What do you think of the economy in 2021? 

Ning Jizhe:

The year 2021 was a milestone in the history of our Party and our country and was a year of crucial importance for China's modernization progress. In 2021, we solemnly celebrated the centenary of the founding of the Communist Party of China. We realized the first centenary goal of building a moderately prosperous society in all respects through eliminating absolute poverty. We have embarked on a new journey towards the second centenary goal of making China into a great modern socialist country in all respects. In 2021, facing complex domestics and international landscapes and all kinds of risks and challenges, the CPC Central Committee with Comrade Xi Jinping at its core oversaw the general situation and responded with calm. Our country has been in the lead position in both economic development and Covid-19 response through concerted efforts across China, keeping economic performance within an appropriate range. The major tasks and targets of 2021 were completed. We have made new progress in building a new development paradigm and scored new achievements in high-quality development. The 14th Five-Year Plan was off to a good start. The achievements were mainly the six following aspects. 

First, China's economic growth has been in the lead worldwide, with notably increased economic strength. China's economic growth ranked among the top in major economies worldwide, with the GDP of 2021 growing by 8.1% year-on-year. Its GDP reached 114.4 trillion yuan, exceeding 110 trillion yuan. That was US$17.7 trillion at the yearly average exchange rate, which ranked second globally and was estimated to account for more than 18% of the global economy. The per capita GDP was 80,976 yuan and US$12,551, at the yearly average exchange rate exceeding US$12,000 . At the end of 2021, China's foreign exchange reserves stood at US$3.2502 trillion, the largest in the world. 

Second, the national economy has continued to recover, meeting all major projected goals. In March 2021, the Government Work Report passed by the Fourth Session of the 13th National People's Congress proposed major projected targets for economic and social development in 2021. According to the statistics, the economy grew quite fast. In 2021, the GDP growth rate was 8.1%, higher than the projected target of 6%. The economy increased by 18.3%, 7.9%, 4.9%, and 4.0% in the first, second, third, and fourth quarter, respectively, year-on-year, with an average two-year growth of 4.9%, 5.5%, 4.9%, and 5.2% respectively. The two-year average growth rate of the fourth quarter was higher than that of the third quarter, which demonstrated stable economic performance and employment. In 2021, 12.69 million urban jobs were added, meeting the expected target of more than 11 million. The surveyed urban unemployment rate was 5.1%, lower than the target of around 5.5%. The consumption price rose mildly. The CPI in 2021 increased by 0.9% year-on-year, lower than the target of around 3%.

A basic equilibrium in the balance of payments was maintained. The surplus of the imports and exports of goods expanded 20.4% year-on-year in 2021, achieving steady increases in both the volume and quality of imports and exports. By the end of 2021, the foreign exchange reserves had exceeded US$3.2 trillion for 8 consecutive months. The growth of resident income was basically in line with the economic expansion. The per capita disposable income of Chinese citizens rose 8.1% from the previous year and a two-year average growth of 5.1%, which kept pace with the economic growth, meeting the target of scoring a steady increase in personal income. The energy consumption per unit of GDP dropped. According to preliminary estimates, the energy consumption per unit of GDP in 2021 decreased by 2.7% year-on-year, very close to the target of around 3%. The grain output reached a record high. Last year's total grain output was 682.85 million tons, achieving the target of more than 650 million tons. 

Third, the innovation momentum has been intensified with the rapid growth of the industrial manufacturing industry. In 2021, the national spending on R&D increased by 14.2%, 4 percentage points higher than the growth rate last year, maintaining a two-digit growth since the 13th Five-Year Plan period (2016-2020). The spending on R&D accounted for 2.44% of the GDP, up 0.03 percentage points than last year. Specifically, the basic research spending grew by 15.6% year-on-year, accounting for 6.09% of the total R&D spending, up by 0.08 percentage points than last year. In 2021, the total value-added by industrial enterprises rose by 9.6%, 1.5 percentage points higher than the growth rate of GDP. Specifically, the value-added by the manufacturing industry increased by 9.8%, 0.2 percentage points higher than that of all industries. The equipment manufacturing industry above designated size surged 12.9%, 3.3 percentage points higher than all industries above designated size.

Fourth, foreign trade and investment have grown rapidly, and opening up has been continuously expanded. As a result, the volume and quality of trade goods have increased. In 2021, China's total goods imports and exports expanded 21.4% year-on-year to 39.1 trillion yuan, scoring a two-year average growth of 11.3%. Counted by US dollars, the trade volume was US$6.05 trillion, accounting for a larger proportion in the global market. The imports and exports of general trade made up 61.6% of the total trade volume, up by 1.6 percentage points year-on-year. Trade in services has continued to recover. From January to November 2021, the total trade in services increased by 14.7% year-on-year, with services exports up by 31.5%. The investment attracted set a new record. The actual utilized foreign capital in 2021 was 1.1494 trillion yuan, up by 14.9%. 

Fifth, the reform on the economic system has continued to deepen, further unleashing development vitality. Market entities increased a lot. Reforms to streamline administration, delegate powers, improve regulation, and upgrade services continued apace. At the end of 2021, the total number of market entities in China exceeded 150 million, with more than 40 million enterprises and more than 100 million self-employed businesses. Diverse forms of ownership have developed side by side. Among the industries above designated size in 2021, value-added by enterprises with state-held controlling stakes, corporate enterprises, private enterprises, and foreign, Hong Kong, Macao, and Taiwan invested enterprises increased by 8.0%, 9.8%, 10.2%, and 8.9%, respectively, all rising at a similar pace. Rapid growth has been made in new industries, new business forms, and new models. In 2021, the value-added by high-tech manufacturing enterprises above designated size increased by 18.2% year-on-year, 8.6 percentage points higher than that of the industries above designated size. The online retail sales of physical goods increased by 12%, accounting for 24.5% of the total retail sales of consumer goods.

Sixth, efforts to ensure people's livelihoods have been firm and effective, increasing people's sense of fulfillment. As a result, people's income has increased at a fast pace. In 2021, Chinese citizens' net income from wages and salaries, net business income, and net property income grew by 9.6%, 11.0%, and 10.2%, respectively. As a result, the urban-rural income gap has been narrowed. The urban-rural per capita disposable income ratio of 2021 was 2.5, which was 0.06 percentage points lower than 2020. The production and sales of basic consumption goods in 2021 have seen steady growth. The value-added by the consumer goods manufacturing industry above designated size increased by 9.8% year-on-year. The retail sales of grain, oil and foodstuff, beverages, and daily necessities by enterprises above designated size all registered a two-digit growth. The investment to improve living standards has expanded. The investment in social sectors increased by 10.7% year-on-year. Specifically, education and public health investment grew by 11.7% and 24.5%, respectively. Thank you.