Shou Xiaoli:

Thank you for your introduction, Mr. Fu. Let's move on to the question-and-answer session. Please identify the media outlet you represent before asking a question. 

CNR:

According to the newly-released major economic indicators for the first quarter, industrial production has maintained rapid growth. What are the reasons? What are your expectations for its performance in the days to come? Thank you. 

Fu Linghui:

Thanks for your questions. Industrial production has maintained stable overall this year due to the policies and measures to promote a stable performance of the industrial sector. As a result, the total value-added of industrial enterprises above the designated size grew by 6.5% year-on-year in the first quarter, higher than that of the fourth quarter of last year, and it has maintained rapid growth. Such rapid growth in industrial production results from economic recovery both domestically and globally, and it is also due to industrial innovation as an enhanced driving force and industrial upgrading as a continued driver. Moreover, ramped-up efforts to ensure market supply and rapid growth in relevant sectors have also contributed. 

First, the industrial upgrading has been outstanding as a driving force. Market demand for medium- and high-end products has increased due to the changes in our stage of development. Moreover, industrial upgrading has been accelerated thanks to the effective implementation of the innovation-driven development strategy. As a result, the equipment manufacturing industry has seen sound development, and the high-tech manufacturing sector has witnessed rapid growth, greatly supporting the development of the industrial sector. The value-added of the equipment manufacturing industry increased by 8.1% year-on-year in the first quarter. Among these, the value-added of the electrical machinery and equipment manufacturing sector and the electronic equipment manufacturing sector, such as computers and telecommunications, increased by more than 10%, boosting the value-added growth of industrial enterprises above the designated size by around 1.7 percentage points. The value-added of the high-tech manufacturing industry increased by 14.2% year-on-year in the first quarter, which is also markedly higher than the overall growth of the industrial enterprises above the designated size. 

Second, the output of the consumer goods manufacturing industry has increased. Given the sustained economic recovery, people's demand for consumer goods has grown, leading to growth in the relevant manufacturing sector. The value-added of the consumer goods manufacturing sector climbed 8.1% year-on-year in the first quarter, along with that of the agricultural and sideline food processing sector, the food manufacturing sector, as well as the sector of wine, beverage, and refined tea manufacturing, and the sector of the pharmaceutical manufacturing rising 6.4%, 6%, 12.1%, and 11.8%, respectively. These four sectors have boosted the value-added growth of industrial enterprises above the designated size by around 1 percentage point.

Third, the exports of industrial products have witnessed rapid growth. China has a complete industrial system with strong industrial supporting capability, facilitating it to adapt to changes in global market demands quickly. The increased demand for our industrial products exports to the international market has boosted China's industrial output. The export delivery value of the industrial products climbed 14.4% year-on-year in the first quarter, maintaining rapid growth. The auto manufacturing sector and the specialized equipment manufacturing sector both rose by more than 20%. 

Fourth, the production of the coal and power industries has seen an increase. We have stepped up efforts to ensure the supply of energy and raw materials. Thereby the output of the relevant sectors has witnessed rapid growth. The value-added of the mining sector increased by 10.7% year-on-year in the first quarter, with that of the coal mining and dressing sector climbing 13.2%. Moreover, the sector of production and supply of electricity and thermal power and the gas production and supply sector has also maintained rapid growth. According to preliminary calculations, the increase in the sectors regarding mining, electricity, thermal power, and gas has boosted the growth of industrial added value above designated size by around 1.4 percentage points.

Moreover, those measures and policies to help enterprises alleviate their difficulties have also played a positive role in stabilizing the industrial output. In the first quarter, enterprises' satisfaction with the preferential policies rose 2.7 percentage points compared with the fourth quarter of 2021, with their satisfaction with the tax and fee reduction policy surpassing 85%, according to the results of a survey of nearly 110,000 industrial enterprises above the designated size nationwide.

However, the growth of the production of the industrial enterprises above the designated size slowed down in March due to the growing impact of the pandemic, with their difficulties in production and operation being increased. Given the new situation and changes, we need to take the challenges seriously, and adopt proactive measures to address them. We should also bolster confidence, as the industrial production is generally stable with solid resilience, capable of withstanding the pressure, and maintaining stable performance. 

Going forward, we will ensure the implementation of the support policies to promote industrial economic development. We will step up efforts to support the manufacturing sector and micro and small enterprises, and increase the support for those enterprises severely affected by the pandemic. We will also ensure the supply of energy and raw materials, stabilize the prices, maintain the stability of industrial and supply chains, and promote the stable and healthy development of the industrial sector. Thank you.