Economic Daily:

The internal and external environment that China faces has undergone significant changes. The Central Economic Work Conference held last year underlined the smooth operation of the industrial chain. Can you please introduce the efforts on maintaining the security and stability of industrial and supply chains and what new measures will be taken in the future? Thanks.

Lin Nianxiu:

Maintaining the security and stability of industrial and supply chains is a strategic requirement of building the new development paradigm. It also matters to China's long-term development and security. The CPC Central Committee and the State Council attach great importance to the security and stability of the industrial and supply chains. General Secretary Xi Jinping has made important instructions on numerous occasions, pointing out the direction and providing the fundamental principles for us. In recent years, the NDRC has worked along with other departments to earnestly implement decisions and policies of the CPC Central Committee and the State Council, shored up the industrial economy, resolved impediments to industrial development, and smoothened economic circulation. This has contributed to a much stronger resilience of industrial and supply chains and increased our capability of maintaining the security and reliability of industrial and supply chains. This can be seen in the following four aspects.

First, a more stable operation. The industrial economy continued to develop steadily. In 2021, industrial added value above the designated size rose 9.6% year on year. Key industries and sectors maintained stable operation. We managed to maintain the supply and steady the prices of commodities and raw materials, effectively guarding against the impact brought to industrial and supply chains by undue fluctuations in prices.

Second, a better structure. We made breakthroughs in key and core technologies, achieving unprecedented results and making major improvements in a number of sectors. Companies generated more vitality and improved their cost-effectiveness. A number of outstanding companies and key equipment have become a calling card of China. A batch of small and medium-sized companies with high growth potential, advanced technology, strong market competitive edges as well as single-product specialists emerged more quickly and showed a promising outlook. Strategic emerging industrial clusters with unique characteristics and complement each other develop and thrive nationwide, adding to the efforts of maintaining stable industrial and supply chains.

Third, stronger development momentum. Industrial sectors amassed great momentum in transformation, upgrading and technological innovation. In 2021, China's high-tech industry saw its investment rise 17.1% year on year, 12.2 percentage points higher than that of investment in general. The manufacturing industry saw its investment in technological transformation rise 13.6% year on year, higher than the growth rate of overall investment in the manufacturing industry, adding new impetus to improving industrial and supply chains.

Fourth, stronger competitiveness. China's exports and global market share created record highs. In 2021, the export delivery value of industrial enterprises rose 17.7% year on year. China's 5G network facilities and applications led the world. The production and sales of new energy vehicles topped the world for seven consecutive years. The production of photovoltaic modules accounted for more than 70% of the world's total. Power transmission and transformation and rail transit already led the world. Industries with strong competitiveness continued to grow, and they have taken up a much better position in global industrial and supply chains.

We should also be keenly aware that facing the complex and volatile international environment and domestic conditions, we still face multiple difficulties and challenges in keeping industrial and supply chains safe and stable. This year's work requires extraordinary efforts from us. Next, the NDRC will work with related departments to take effective measures to keep industrial and supply chains secure and stable. We will continue our major work in five aspects as follows:

First, we will continue to shore up weaknesses. The amount of water a bucket can hold is determined by its shortest plank. Major weak links in industrial chains always hinder the healthy development of the economy. We will focus on key areas concerning the economy, people's wellbeing, as well as strategic and security matters. Dealing with bottleneck problems will be our focal point. We will coordinate the efforts to strengthen weaknesses, promote iterative applications, improve the industrial ecology, and make breakthroughs in key and core technologies. We will implement projects for rebuilding industrial foundations, strengthen weaknesses in basic industries, and cement the foundation for industrial and supply chains.

Second, we will continue to build up and harness our strengths. Our strength maintains the core competitiveness and a powerful and effective tool for industrial competition. We should work to build up our strength. First, we will expand strength in upgrading traditional industries. We will step up efforts to implement the Five-Year Action Plan on Enhancing Core Competitiveness in the Manufacturing Sector. We will increase competitive edges throughout the complete industrial chains and in major areas. Second, we will increase strength in fostering emerging industrial chains. We will seize the opportunity to develop cutting-edge industries and deepen our efforts to develop national strategic emerging industrial clusters. Efforts will be made to accelerate the development of new industries, new business forms, and new models.

Third, continue to eliminate bottlenecks and restrictions. Smoothing economic circulation is the key to stabilizing industrial and supply chains. At present, we will focus on solving the chip shortage problem in the automobile and other manufacturing industries. Last year, due to multiple reasons, there was a global shortage in chips supply, which we will tackle this year. We will continue to ensure the stability of supplies and prices for bulk commodities and raw materials; improve the production, supply, storage, and marketing systems; and strengthen effective supervision of futures and spot markets. We will also carry out projects to link the industrial and supply chains in key fields; set up industrial coalitions in collaborative R&D, product development, and experimental verification; and rely on leading enterprises to guarantee and stabilize industrial and supply chains.

Fourth, we will continue to deepen opening-up and cooperation. We will support the development of cross-border e-commerce and overseas warehouses and promote the efficient operation of industrial and supply chains in the foreign trade sector. We will make better use of foreign investment, encourage foreign-invested enterprises to expand investment in high-end manufacturing and high-tech fields, and support the innovative development of foreign-funded R&D centers. We will also implement regional trade agreements such as RCEP, make good use of various multilateral mechanisms, and establish a mutually beneficial cooperation system for industrial and supply chains.

Fifth, we will continue to strengthen risk prevention. We will establish a risk monitoring system for industrial and supply chains and improve mechanisms for risk assessment, early warning and response so as to enhance our capability to identify and accurately handle risks. We will tighten all parties' responsibilities and strive for early detection, reporting, assessment, and response of risks in order to guarantee the stable operation of industrial and supply chains. Thank you.