Bloomberg:

My question is about industrial output. Crude steel output in the first quarter fell 10.5%, cement fell 12.1%, and yet fixed asset investment (FAI) rose 9.3%. How do you explain the difference, or the massive divergence, between the collapse in industrial output for these products that are used for investment but the continued rise in investment? Thank you.

Fu Linghui:

Thank you for your question. More attention has been paid to the date this year. In general, with the development of China's economy in recent years, which is changing to high-quality development from the high-speed growth, we can see new changes in the driving force of economic growth compared with the past. In industrial production, we have seen that high-tech manufacturing and equipment manufacturing have maintained rapid growth, offering increased support for industry . In industrial investment, high-tech and equipment manufacturing investment has also maintained rapid growth. Therefore, the mode driving economic growth through industrialization and urbanization has changed dramatically compared with the past. You just mentioned that the output of crude steel and cement has dropped. However, industrial production has maintained rapid growth mainly due to the change of driving force of economic development. Now, the industrial sector is moving towards medium and high-end in the value chain. This year, among the three major investment areas, the manufacturing investment has seen a rapid increase, significantly driving the development of traditional industrial products, such as steel and cement. We should treat it objectively and conduct conscientious analyses to draw an accurate conclusion about such an economic phenomenon. Thank you.