Yicai:

At the Central Economic Work Conference at the end of last year, it was proposed that China would work on boosting domestic demand. In the government work report delivered during the two sessions this year, it is emphasized again that we will take solid steps to implement the strategy of expanding domestic demand. What measures will the MIIT take to further promote automobile consumption and boost domestic demand? Thank you.

Tao Qing:

Thank you for your question. In accordance with the decisions and plans of the CPC Central Committee and the State Council, the MIIT has actively worked with relevant departments to analyze the development of the automobile industry and develop policies and measures to further promote automobile consumption. We have continued to unlock the consumption potential and create multiple application scenarios to advance the high-quality development of the automobile industry. In 2022, we worked with relevant departments to launch preferential policies such as reducing the purchase tax of eligible passenger vehicles, promoting spending on new energy vehicles in rural areas, and guiding local governments to adopt measures to promote consumption, including increasing the quota of vehicle license plates for cities that have restrictions on car purchases and offering subsidies for purchasing vehicles. By taking all these measures, we have advanced steady growth in China's automobile industry, with production volume and sales up 3.4% and 2.1%, respectively, significantly contributing to the recovery of the macroeconomy. Since the beginning of 2023, new energy vehicles still maintain relatively rapid growth despite the current sluggish automobile market. From January to March, China produced 1.65 million and sold 1.586 million new energy vehicles, with a year-on-year increase of 27.7% and 26.2%, respectively.

Next, acting upon the decisions and plans of the CPC Central Committee and the State Council, the MIIT will further unleash the potential of consumer demand, energize the consumer market, and stabilize spending on automobiles and other big-ticket items. We will work with relevant departments to introduce policies and initiatives to maintain stable automobile consumption and expand domestic demand and ensure the implementation of current policies and initiatives. We will improve the "double credits" management provision for corporate average fuel consumption and new-energy vehicles. We will also launch pilot programs in establishing pioneering zones for comprehensive electrification of vehicles in public areas in cities. At the same time, we will guide local governments to uphold the principle of fairness and justice when making pro-consumption policies, as well as safeguard the market order for fair competition to continue improving the overall competitiveness and development quality of China's automobile industry. Thank you!