Speakers:
Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT)
Luo Junjie, director general of the Bureau of Operation Monitoring and Coordination of the MIIT
Zhao Zhiguo, director general of the Bureau of Information and Communications Administration of the MIIT
Chairperson:
Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Jan. 20, 2022
Chen Wenjun:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Tian Yulong, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT). Mr. Tian will brief you on the development of the industry and information technology sector in 2021 and take your questions. We are also joined by Mr. Luo Junjie, director general of the Bureau of Operation Monitoring and Coordination of the MIIT, and Mr. Zhao Zhiguo, director general of the Bureau of Information and Communications Administration of the MIIT.
Now, let's give the floor to Mr. Tian.
Tian Yulong:
Ladies and gentlemen, friends from the media, good morning. I'd like to begin by expressing my heartfelt gratitude to you for your attention and support for developing the industry and information technology sector. Next, I'll brief you on the general situation of 2021.
Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has made significant decisions to develop China into a manufacturer of quality and build the country's strength in cyberspace. Under the guidance of these decisions, China's industry and information technology sector has seen historic achievements and transformation, providing strong support for building a moderately prosperous society in all respects. In 2021 especially, against the backdrop of complex and challenging environments and multiple risks and challenges, all government bodies and departments involved in the industry and information technology followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We earnestly carried out decisions made by the CPC Central Committee and the State Council and worked hard to coordinate epidemic prevention and control with economic and social development. We forged ahead and overcame difficulties, redoubled our efforts to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment, and market expectations), implemented the tasks of guaranteeing stability in six areas (employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations), and thoroughly carried out the strategies of developing China into a manufacturer of quality and building the country's strength in cyberspace. As a result, China's industrial economy sustained recovery and development. Its information technology sector made positive progress, putting the implementation of the 14th Five-Year Plan off to a good start. The overall growth of industry and information technology in 2021 has the following four features:
First, the industrial economy saw sustained recovery and development. In 2021, following the requirements being made by the Central Economic Work Conference, notably safeguarding macroeconomic stability and ensuring that the economy operates within an appropriate range, we have given greater priority to promoting the stable growth of the industrial sector and taken a series of measures. Through strengthening the guiding role of planning and policies, we introduced and implemented various plans from the 14th Five-Year Plan concerning key sectors and fields of industry and information technology. We formulated a series of policies and measures that ensure the industry's stable growth. We proactively addressed the adverse impact of sporadic pandemic outbreaks, the price hikes in bulk raw materials, and the constraints on energy. We adopted coordinated policies, managed to guarantee the interests of market players, stabilize investment and foster consumption, and effectively ensured the generally balanced and stable development of industrial production. In 2021, China's added value of industries above designated size grew by 9.6% year on year, or an average two-year growth rate of 6.1%. Among them, the growth rate in the third quarter of 2021 declined. However, as our policies on revitalizing the industrial economy took effect, the declining trend was reversed, and the growth rate of the industrial economy rebounded gradually. Under the strong leadership of the CPC Central Committee and the State Council, we managed to overcome various obstacles. As a result, the development of the industrial economy in 2021 generally went well with satisfying results, and this did not come easily.
Second, industrial transformation and upgrading accelerated notably. In 2021, we focused on stabilizing the industrial and supply chain, sped up the digital and green transformation of industries, spared no effort to enhance the core competitiveness of the manufacturing industry, and strived to facilitate the transformation and upgrade of traditional industries as well as the development of emerging industries. As a result, we have accomplished achievements in three aspects. First, the digital transformation of the manufacturing sector was accelerated, and the innovative development of the industrial internet saw remarkable progress. Security systems for internet platforms were established, and the "5G+industrial internet" was applied in 20 scenarios and 10 key industries. The capacity of innovative applications ranked in the top tier globally. Second, the green and low-carbon development of industries saw positive progress. We formulated and published implementation plans concerning carbon neutrality in industrial fields and key sectors and steadily advanced the green transformation of traditional industries. The output of crude steel in 2021 decreased by 32 million metric tons compared with the previous year, down 3%. In the first 11 months of 2021, the energy consumption per unit of the added value of industries above the designated size reduced 5.5% year-on-year, which was remarkable progress. Third, emerging industries maintained a relatively fast growth, and high-tech manufacturing and equipment manufacturing grew a more vital driving force and saw rapid development. Industrial software, big data, cloud computing, artificial intelligence, and other new technologies, industries, and business forms projected a strong growth rate. The new energy vehicles (NEVs) sector, which attracted widespread attention, saw rapid development, and more than 3.5 million NEVs were produced and sold respectively in 2021, up 160% year on year. Therefore, the industrial transformation was brought onto a fast track in 2021.
Third, measures providing vital relief to small- and medium-sized enterprises (SMEs) were implemented and enhanced effectiveness. The CPC Central Committee and the State Council have attached great importance to the development of SMEs and regarded facilitating the development of SMEs as a long-term strategy for stabilizing growth and employment. Under the leadership of the State Council's working mechanism on promoting the development of SMEs, the MIIT has been working with relevant departments of the State Council and local governments to strengthen coordination, supervision, and guidance. We have been working to constantly optimize the business environment of SMEs, further protect and stimulate the vitality of market entities, provide more favorable policies and continuous services. We have also introduced policy packages that provide vital relief and benefit to SMEs and established long-term mechanisms that prevent and resolve the problem of defaults on payments to SMEs, which has proved to be effective currently. Policies such as tax and fee cuts and inclusive financing continue to take effect and significantly reduce the burden on enterprises. In the meantime, we strive to promote the rapid development of SMEs towards high growth potential, advanced technology, and a strong market competitive edge. The MIIT worked with relevant government bodies and introduced policies on developing high-quality manufacturers and improving SMEs' competitiveness. Over 40,000 enterprises in China have high growth potential, advanced technology, and a strong market competitive edge. The number of "little giant" enterprises in China amounted to 4,762, and single-product manufacturing specialists reached 848. They have become the benchmark demonstration enterprises in their respective and specialized fields, and a group of innovative enterprises and business startups continue to emerge and grow.
Fourth, the information and telecom industry made new leaps forward. Last year, by further leveraging the enabling role of the new generation of information technology, we continued improving and building new types of infrastructure, and vigorously fostered new forms of business and new applications, thus continuously enhancing our capacity to support the digital transformation of the economy and society. Here we outline the main features. First, the industry developed at an increasingly higher speed. In 2021, the revenue of the telecom business increased by 8% year on year, and that of software and information technology services grew by 17.7% year on year. The construction of "double gigabit" network infrastructure sped up, covering 300 million households with gigabit optical fiber networks. A total of 1.43 million 5G base stations were established and opened, and 512,000 administrative villages across the country got access to broadband. All those are of historic significance. What is also historic is that telecom difficulties in poor areas were addressed, a remarkable achievement even worldwide. Substantial outcomes were made in the innovative supervision of the industry, with major progress in special projects to regulate the internet industry, regulate apps infringing on users' rights and interests, and upgrade internet applications for the aged. The foundation of security was continuously consolidated, with solid progress in the prevention and combat of telecom and internet fraud, the protection of personal information, and the management of data security. At the same time, the whole industry actively participated in and served major national events. We offered sound telecom and cyber security services to the celebrations of the centenary of the founding of the Communist Party of China (CPC) last year and are going all out to ensure those services at the Winter Olympics and Paralympics. All the venues in the three competition zones in Beijing and Zhangjiakou have realized full coverage of 5G, strong support and guarantee for online broadcasting of events and a smart Winter Olympics.
Those are the main features of our work in four aspects last year. In 2022, we face a more challenging, complex, and uncertain external environment. China's industrial economy faces triple pressure from shrinking demand, supply shock, and weakening expectations, and the task of ensuring stable growth remains a challenge. We will thoroughly implement the spirit of General Secretary Xi Jinping's important addresses and the Central Economic Work Conference, continue to follow the general principle of pursuing progress while ensuring stability, and promote the high-quality development of industry and information technology. We will coordinate epidemic prevention and control and economic and social development, balance development and security imperatives, focus on our goal of building China into a manufacturer of quality and building China's strength in cyberspace, and give top priority to stabilizing industrial growth. We will do a good job in anticipatory adjustments, fine-tuning, and cross-cyclical adjustments; strive to enhance the core competitiveness of the manufacturing sector; improve the quality and efficiency of the industrial economy while promoting its stability; and keep the proportion of the manufacturing sector basically stable. We will strengthen and boost the real economy and lay a solid foundation for the economy so as to welcome the convening of the 20th CPC National Congress with outstanding achievements.
That is all I have for now. My colleagues and I are ready to answer your questions. Thank you.
Chen Wenjun:
Thank you, Mr. Tian. The floor is now open to questions. Please indicate the media organization you work for before raising questions.
