Yicai:

The stability of the industrial and supply chains is crucial for recovering the industrial economy. What measures has the MIIT taken in the first half of this year to ensure the stability and smoothness of the industrial and supply chains? In the second half of the year, what other considerations are there in promoting enterprises to reach stable production and reach the target output? Thank you.

Tao Qing:

Thank you for your questions. The industrial and supply chains are the backbone and blood vessels of the industrial economy. Since March, they have been affected by the COVID-19 epidemic and other factors. The supply chain and the industrial chain have faced many blockages, causing some industrial enterprises to stop work and production. The MIIT resolutely implements the decisions and arrangements of the CPC Central Committee and the State Council, following the overall requirements of preventing the epidemic, stabilizing the economy, and developing safely, and regards a smooth industrial chain and supply chain as the primary task for ensuring stable industrial growth, and has taken a series of measures in conjunction with relevant departments and localities to make every effort to ensure the stable and smooth industrial chain and supply chain.

First, we are focusing on key areas and sparing no effort to get through the blocking points. We first established a daily scheduling mechanism for key provinces and cities to coordinate and solve problems such as obstruction of logistics and transportation and poor connection between upstream and downstream. We dispatched front-line working groups to strengthen cross-regional coordination, and perform closed-loop management and stabilize production under the conditions of ensuring epidemic prevention and control in key regions.

Second, we focus on key enterprises to establish and implement a "white list" system. Focusing on key fields such as medical and epidemic prevention materials, necessities of life for residents, important materials for agricultural production, and key materials for strategic industries, we have released a "white list" of key enterprises to unblock key nodes in the industrial chain and supply chain. At the same time, we have guided more than 20,000 companies on the white list in various regions to achieve regional mutual recognition and promote the coordinated resumption of work and production.

Third, we are focusing on key industries and promoting the upstream and downstream to dock their services. We have built a coordination platform for key industrial chains and supply chains for automobiles, integrated circuits, medical supplies, etc., established a "red light" early warning mechanism for auto companies whose spare parts inventory can last less than three days, and established a "red, yellow and blue" early warning coordination mechanism for bulk raw material supply, etc.. We did these in order to solve the problems reported by enterprises one by one, such as raw material supply, employees returning to work, as well as logistics and transportation issues. Just as Mr. Tian introduced, the national industry and information system have coordinated and solved more than 54,000 problems and demands from enterprises in a timely manner, helping the upstream and downstream to resume work and production synchronously.

With the joint efforts of various regions and departments, the industrial chain and supply chain have become increasingly smooth, and the industrial economy has quickly reversed the downward trend and achieved growth recovery. At present, industrial enterprises above the designated size in the Yangtze River Delta and Pearl River Delta regions have resumed normal production, and the production capacity of key industrial chains such as automobiles and integrated circuits has also fully recovered. In the next step, the MIIT will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, efficiently coordinate epidemic prevention and control and industrial production, and further promote enterprises to stabilize the production and reach the target outputs. First, we will strengthen the monitoring of the operation of key regions, key industries, and key enterprises. Based on the whitelist enterprises in the key industrial chains and supply chains, we will pay close attention to ensuring the implementation of details of various service guarantees and promote key enterprises to stabilize the production and reach the target outputs, which will see a full recovery of production capacity. Second, we will guide the regions where the epidemic occurs to implement the COVID1-19 prevention and control measures in the production process, effectively implement the stable production plan and emergency plan, and ensure stable production under the conditions of epidemic prevention and control. After the impact and experiences in March and April, many enterprises and localities promptly formed their own emergency plans. We are also very confident that we can quickly achieve closed-loop management and stable production under any shock waves. Third, we will further improve the coordination platform of key industrial chains and supply chains and improve the "red, yellow, and blue" early warning coordination mechanism for the supply and demand of bulk commodities. We will strengthen the supply of automotive chips, promote inter-regional, upstream-and-downstream coordination and interaction, and ensure key industrial chains and supply chains are stable and smooth, such as automobiles and integrated circuits. Thank you!