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Last year, there was a global shortage of energy supply, and some parts of China also saw a shortage of coal and electricity. Although we have ensured a stable supply of energy in a very short period of time, there are still worries about whether a similar situation would take place this year. What countermeasures does the NDRC have to ensure a stable supply of energy? Thank you.

Lian Weiliang:

Thank you for your question. Last year, we indeed faced grave challenges in our efforts to ensure energy supply. China's capability to turn the tide in a short time to ensure energy supply in some places is mainly attributable to the close attention of the CPC Central Committee and the State Council. In recent years, China has planned in advance the construction of energy production, supply, storage, and marketing systems and continued to increase the effective supply of energy. In key window period before the heating season, decisive policies were made, and a series of practical policies and measures were quickly adopted, such as increasing coal production and supply, ensuring full operation of generator units, making early preparation, and keeping sufficient storage of natural gas, as well as coupling the price of coal with that of electricity in a reasonable way. China's institutional strength also helps enhance its capability to ensure energy supply. We have implemented full coverage of medium and long-term contracts for thermal coal and coal used for heating, guided coal prices to return to a reasonable range, and ensured that people's basic energy needs are met. Generally speaking, the energy supply and demand in the heating season was relatively stable, coal stockpiles for heating at power plants were adequate for no less than 20 days of consumption, and there was neither power nor gas rationing. All these have effectively ensured the smooth running of economic and social development as well as a warm winter for all residents.

We understand that our people remain concerned about the energy supply of this year. The global energy supply has been in continuing shortage, both the rapid recovery of our country's economy and rapid growth of exports have driven the rapid increase of energy demand, and our efforts to steadily achieve the carbon-peak and carbon-neutralization goals have required for an accelerated transformation into clean and low-carbon energy, all of which put forward new and higher requirements for ensuring energy supply. China has been deeply integrated into the global economy. The rise in global commodity prices has driven the demand for energy-intensive products, and geopolitical conflicts and changes in global energy supply and demand will affect the security and reliability of the energy supply in our country.

Despite the increasingly unpromising challenges we are facing, China has the condition, ability, confidence and solutions to ensure a secure and reliable supply of energy. In accordance with the deployment and requirements of the CPC Central Committee and the State Council, we will give full play to the coordination mechanism for coal, electricity, oil, gas, and transportation services and focus on ensuring energy supply from four aspects. To be specific, we will emphasize the three "intensifies" and one "ensure," that is, to intensify efforts to increase production capacity, intensify efforts to guarantee reserves, intensify efforts to ensure a stable supply and price, and ensure that people's basic energy needs are met.

First, we will intensify our efforts to increase production capacity. We will vigorously promote the construction of large-scale wind power and photovoltaic bases in sandy areas, rocky areas, and deserts, and build a significant number of peak-shaving plants that utilize pumped storage for electricity generation, by which ways we will increase the effective output of various power generation in a coordinated manner. We will greatly increase investment in oil and gas exploration and development to promote the increase of petroleum and gas reserves and output and free up advanced coal production capacity in an orderly way to maintain the coal output at a reasonable level.

Second, we will intensify our efforts to guarantee reserves. We will accelerate the construction of government- deployable coal reserve capacity to more than 200 million tons, add gas storage facilities of more than five billion cubic meters, increase the electricity supply of pre-emergency and peak-shaving plants to more than 300 million kilowatts, and guide major energy production enterprises and large energy consumers to strengthen their consciousness of social responsibility.

Third, we will intensify our efforts to ensure a stable supply and stable prices. We will give full play to the role of medium and long-term energy contracts and achieve full coverage of medium and long-term contracts for coal, electricity, and gas services in key areas related to people's livelihood and economic development. We will help keep coal prices running within a reasonable range and improve the transmission mechanism of coal and electricity prices.

We will make efforts to ensure that people's basic energy needs are met. Although we are guaranteed with reliable energy supply capacity, with the significant increase in the proportion of unstable power sources, such as climate-vulnerable wind power and photovoltaic plants, residents and enterprises have higher and higher requirements for reliable energy to meet their living and production needs. Through a larger margined, more secure, and more reliable supply guarantee plan, we will ensure energy security and supply in all situations. We will ensure that there will be neither electricity nor gas rationing unless in extreme cases, and even if there's an extreme case, the switches and valves will not be turned off. Supported by the above comprehensive measures, we will ensure the security and reliable supply of energy in China and reassure our people and all energy users.

Thank you.

Reuters:

China set a 5.5% GDP growth target for this year, which is believed by many analysts as a bit difficult to achieve and may require much stronger policy support. What's your take on that? Also, do you have fears of the negative effects of stimulus policies, for example, lower investment efficiency, excess capacity, and possible risks of an asset bubble? In addition, what is the impact of the Ukraine crisis on the Chinese economy and the Belt and Road Initiative (BRI)? Thank you.

Lian Weiliang:

Thank you for your questions. Premier Li Keqiang made a thorough explanation on this year's growth target and the measures to achieve it. The government work report emphasized that the target of around 5.5% represents a medium-high growth rate from a large base figure and demonstrates the country's ability to move proactively. Achieving this goal will require arduous efforts.

NDRC Chairman He Lifeng also expounded on ways to achieve the GDP growth target as he joined the "minister aisle" interview on the sidelines of the ongoing "two sessions." We are well poised to achieve this year's target. We have ample room for development, which is created by implementing the new development philosophy, building the new development paradigm, and promoting high-quality development. We have also accumulated practical experience in driving high-quality development against the backdrop of the COVID-19 pandemic. Particularly, we have an effective policy mix, including prudent and effective macro policies, micro policies that continuously stimulate the vitality of market entities, structural policies that ensure smooth flow of economic activity, policies in the sci-tech sector that energize innovative potential, reform and opening-up policies that drive development, policies that promote more balanced and coordinated regional development, as well as social policies that meet people's basic living needs.

More importantly, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have accumulated rich experience in developing new ways to improve macro regulation as we address various risks and challenges. We have both macro-policy tools and space available to us, and we used them to intensify cross- and counter-cyclical adjustments. We did not adopt a deluge of strong stimulus policies but paid attention to the precision, efficiency, and sustainability of policies. While making sure we achieve the growth target, we effectively avoided problems such as lower investment efficiency, excess capacity, and asset bubble.

This year, we will work on the following three aspects to achieve the GDP growth target. First, we will pay more attention to the implementation of major decisions, issue more policies and measures to further expand domestic demand, and strive to maintain the sound development momentum of foreign trade. Second, we will enhance the coordination of macro policies in order to unleash their combined role in stabilizing growth. In particular, we will strengthen the assessment and analysis of newly issued policies in order to accelerate policies that contribute to economic stability and keep an eye out for policies that work otherwise. Third, we will attach more importance to addressing various risks and challenges, and ensuring food security, energy security, and the stability of industrial and supply chains. We will also work on pandemic control in a more precise manner.

As to the possible impact of the Russia-Ukraine conflict, we are paying as much attention as you do. The conflict brings more uncertainty to global economic development. I want to emphasize that the Chinese economy has strong resilience, ample potential, and adequate space for development. Though the external environment is becoming more complicated, the fundamentals underpinning China's long-term growth remain sound. China is still able to keep its major economic indicators within the appropriate range. Regarding the BRI, both Russia and Ukraine are participating countries of the initiative. China will work along with all participating countries of the Belt and Road, including Russia and Ukraine, to promote the high-quality development of the Belt and Road in the Silk Road spirit of peace and cooperation, openness and inclusiveness, mutual learning, and mutual benefit. We also look forward to seeing the concerned parties peacefully resolve the issues through dialogue, and minimize the conflict's impact on the world economy.

Thank you.