21st Century Business Herald:

We learned that county-level commercial systems are vital to comprehensively promoting rural revitalization, and relevant arrangements have been made in the "No. 1 central document." What progress has been secured in this regard? Going forward, what measures will MOFCOM take to strengthen county-level commercial systems and promote rural consumption? Thank you.

Chen Chunjiang:

The report to the 20th CPC National Congress states that continuous efforts will be made to pursue the integrated development of urban and rural areas and facilitate the flows of production factors between them. The county-level commerce has its root in rural areas and serves the work, life, and employment of more than 7 million county residents. It connects urban and rural areas and constitutes an important channel for the flow of goods, services, and production factors between them. Relevant arrangements were made in the No. 1 central document. Over the past several years, we have worked with related departments to promote the development of county-level commercial systems and striven to improve the rural consumption environment, increasing service quality and making initial progress along the way. These are mainly reflected in four respects:

First, the commercial network has been continuously improved. In 2022, a total of 983 comprehensive county-based business and trade service centers and 3,941 township markets and business and trade centers were transformed. The transformation work underlines the importance of converting facilities, not traditions, to retain as many of the features and heritage of rural markets as possible.  

Second, logistics services have been constantly accelerated. A total of 506 county-level logistics centers and 650 township-level express delivery outlets have been built. Direct express delivery services are now available in 95% of administrative villages. Currently, more than one-third of counties can have their express parcels sent to villages within a day. 

Third, e-commerce livestreams have been promoted extensively. Livestream marketing has become an effective tool for rural residents to start businesses and increase income. Last year, rural online businesses (online shops) totaled 17.3 million nationwide, up by 6.2% year on year. Among these, 5.73 million, or 33.1%, were livestream e-commerce businesses.

Fourth, the circulation of agricultural products has been improved. A total of 890 wholesale markets for agricultural products and farmers markets have been transformed and upgraded. A total of 960,000 tons of refrigeration storage capacity has been added. The production and marketing connection of agricultural products has become closer, and circulation has become smoother and more efficient. 

Over the past few years, we have witnessed major improvements in rural logistics systems, business facilities, and the consumption environment. However, shortcomings still exist. As for infrastructure, the business outlets in some areas are scattered, and delivery costs are still relatively high. Therefore, further integration and optimization are needed. Regarding the supply of goods and services, goods are often not high in grade, and service provision functions are not rich in variety. In terms of market entities, most are family-based workshops with traditional operation modes, whose levels of digitalization and developing chains are relatively low compared with those in cities. As to market demand, since many villagers have gone elsewhere to find employment, and the majority who have stayed are senior citizens and children, chain businesses and enterprises lack the motivation to invest in rural areas. 

Looking forward, we will earnestly implement the guiding principles of the 20th CPC National Congress and follow the deployment of the No. 1 central document. We will stay problem-oriented, shore up the weak links of county-level commercial development, focus on providing channels at the community level, promote further recovery and expansion of rural consumption, and better contribute to rural revitalization. 

First, we will thoroughly implement the three-year action plan for country-level commerce. We will summarize the previous work experience and apply it at a faster pace, and strive to basically establish relatively improved commercial systems in counties, townships, and villages by 2025 to better meet the work and life needs of rural residents. 

Second, we will speed up efforts to improve the rural consumption environment, act on market principles, and give play to the guiding role of government funds. We will transform and upgrade a group of township markets and a new type of rural convenience stores, improve the logistics systems at the county, township, and village levels, develop new modes such as real-time retail and joint delivery, create consumption scenarios, and stimulate consumption potential.

Third, we will promote the high-quality development of rural e-commerce. We will follow the development trends of the digital economy, develop livestream e-commerce, cultivate agricultural product brands, and sell them via e-commerce across the country to increase rural residents' incomes.

Fourth, we will foster a group of county-level commercial models. We will act on local conditions; explore to make innovations; stimulate localities, enterprises, and the public; and develop a group of county-level commercial models, giving full play to their demonstrating and leading roles. Thank you.