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Read in Chinese

Speakers:

Mr. Wang Zhengpu, deputy secretary of the Communist Party of China (CPC) Hebei Provincial Committee and governor of Hebei province 

Mr. Zhang Chengzhong, a member of the Standing Committee of the CPC Hebei Provincial Committee and executive vice governor of Hebei province

Ms. Jin Hui, vice governor of Hebei province

Mr. Zhao Dachun, vice governor of Hebei province

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 29, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the 13th press conference in the series "Promoting High-Quality Development." We have invited Mr. Wang Zhengpu, deputy secretary of the Communist Party of China (CPC) Hebei Provincial Committee and governor of Hebei province, to brief you on forging ahead on a journey of high-quality development in the new era, and to take your questions. Also present today are Mr. Zhang Chengzhong, a member of the Standing Committee of the CPC Hebei Provincial Committee and executive vice governor of Hebei province; Ms. Jin Hui, vice governor of Hebei province; and Mr. Zhao Dachun, vice governor of Hebei province.

Now, I'll give the floor to Mr. Wang for his introduction. 

Wang Zhengpu:

Ladies and gentlemen, good morning. It's a great pleasure to meet you all. First of all, on behalf of the CPC Hebei Provincial Committee and Hebei provincial government, I'd like to express my heartfelt gratitude to you for your long-term interest in and support for Hebei's development. 

Since the 18th CPC National Congress, General Secretary Xi Jinping has paid 11 visits to Hebei, where he delivered important speeches and issued vital instructions. Firmly implementing the guiding principles of the instructions, the entire province has focused on the primary task of promoting high-quality development and the strategic task of creating a new development pattern. We have fully and faithfully applied the new development philosophy on all fronts, and accelerated efforts to foster an economically prosperous and beautiful province. The province's GDP increased by 5.5% in 2023 and by 5.6% in the first quarter of this year. Major indicators have shown a steady increase, maintaining a favorable momentum. 

Now, I'll offer a brief overview from five aspects:

First, we have emphasized innovation, striving to blaze new trails in advancing innovation-driven development. Taking scientific and technological innovation as a core factor in developing new quality productive forces, we have reinforced the principal role of enterprises in innovation, and worked to ensure policies such as additional tax deductions for R&D expenses benefit all eligible enterprises in Hebei, igniting a strong sense of innovation among them. We have established specialized teams to serve the "little giant" companies (novel and elite small and medium-sized enterprises that specialize in a niche market, boast cutting-edge technologies and show great potential). The proportion of industrial equipment connected to cloud platforms and the comprehensive computing index in Hebei rank among the top nationwide. Traditional industries such as steel and equipment manufacturing have made improvements in both quality and effectiveness, emerging industries like biomedicine and digital information have continued to grow, and future industries including aerospace information and satellite internet have been deployed rapidly, contributing to the rapid construction of a modern industrial system. Overall, Hebei is not giving up on traditional industries in its pursuit of innovative development. Meanwhile, it is also endeavoring to catch up in emerging and future industries.

Second, we have highlighted coordination, redoubling efforts to shoulder new responsibilities in promoting the coordinated development of the Beijing-Tianjin-Hebei region and building Xiong'an New Area according to high standards and quality requirements. With coordinated development deepening, the three regions have established a regular consultation mechanism, forming a tighter collaborative pattern. We have partnered with Beijing and Tianjin to develop six key industrial chains, including new energy and intelligent connected vehicles, as well as robots. More than 40,000 enterprises have transferred from Beijing and Tianjin, settling in Hebei. Last year, the volume of contracted technology transactions absorbed by Hebei from Beijing and Tianjin more than doubled, and a historic breakthrough was achieved in attracting second- and third-level subsidiaries of centrally administered state-owned enterprises (SOEs). As we all know, this year marks the 10th anniversary of General Secretary Xi Jinping proposing the strategy of the coordinated development of the Beijing-Tianjin-Hebei region. During the past decade, we have fully implemented a package of special support policies introduced by the central government and secured extraordinary achievements, with the Xiong'an New Area experiencing thriving growth. Construction has been expedited for headquarters of the first batch of relocated central SOEs, namely China Satellite Network Group, Sinochem Holdings, China Huaneng Group and Sinomine Resource Group, as well as Xiong'an campuses of the four universities of Beijing Jiaotong University, Beijing University of Science and Technology, Beijing Forestry University and the China University of Geosciences (Beijing). The Xiong'an branches of Beihai Kindergarten, Beijing Shijia Primary School, Beijing No. 4 High School and Beijing-based Xuanwu Hospital under Capital Medical University, all supported by Beijing, have entered into operation. The Xiong'an New Area Zhongguancun (ZGC) Science Park has been inaugurated, and noticeable results have been yielded with the series of visits to Xiong'an by a thousand ZGC enterprises, a hundred research institutes, a hundred renowned universities, and ten thousand university students in the capital. As a result, the popularity of Xiong'an is steadily increasing.

Third, we have pursued green development, endeavoring to achieve new breakthroughs in advancing the green transition in all respects. We have worked to make solid gains in the battle against pollution, and air quality has continued to improve. The water quality of Baiyangdian Lake has remained stable at Level III according to China's five-tier water assessment system, hastening the recovery of its crucial role as the "Kidney of North China." Strong efforts have been made to achieve Grade A environmental performance in key industries, with the number of steel enterprises in Hebei achieving Grade A for environmental performance ranking first nationwide, reaching 37. Integrated development of culture and tourism has been deepened, with total trips by tourists reaching 840 million last year. "So Close, So Beautiful, Spend Your Weekends in Hebei" has become a slogan for the province.

Fourth, we have enhanced opening-up, redoubling efforts to foster new advantages in deepening reform and opening-up. We have been committed to promoting development by prioritizing the improvement of the business environment, and have mobilized and made deployments for the province's "first meeting of the New Year" themed on business environment for two consecutive years. All enterprise- and people's wellbeing-related items subject to approval can now be handled in government service halls, while the 12345 hotline for government services has reached a stable connection rate of over 98%. Additionally, we have implemented "double-blind" (the information of both evaluation experts and bidders is not disclosed) evaluation reform in public bidding, enabling both SOEs and private businesses to enjoy the same treatment and engage in fair competition. The integration and upgrading of port resources has been promoted, with port cargo throughput surpassing 1.3 billion metric tons last year. The number of China-Europe freight trains has continued to rise.

Fifth, we have strived for shared benefits and made more efforts to achieve new progress in promoting common prosperity. Last year, we promptly relocated affected people when facing historically severe floods. We devoted maximum efforts to disaster rescue and relief, effectively protecting the lives and properties of our residents. We also made all-out efforts to focus on reconstruction after the disaster. We allocated compensation, rescue, and insurance funds in advance, ensuring those affected lived and worked in safe and warm places during the winter. Last year, our total grain output reached 76.2 billion jin (38.1 million metric tons), exceeding the target set by the country. Moreover, we have implemented rolling plans for projects related to people's livelihoods to raise public service standards in education, social security, elderly care, and healthcare. Nearly 900,000 urban jobs were added last year. Doing so has ensured our people feel a growing sense of fulfillment, happiness and security.

Going forward, Hebei will thoroughly implement the important guiding principles set by General Secretary Xi Jinping during his inspection of the province. We will work with solid steps to do a good job in each field, accelerate high-quality development, and strive for a new chapter for Hebei in pursuing Chinese modernization.

That is my brief introduction. Next, Zhang Chengzhong, Jin Hui, and Zhao Dachun, the three vice governors of Hebei, and I will answer your questions. Thank you, everyone.

Xing Huina:

Thank you for your introduction, Mr. Wang. The floor is now open for questions. Please identify the media agency you work for before asking your question.

People.cn:

I'd like to ask about the Xiong'an New Area. This year marks the seventh year since the establishment of the new area. Can you give an introduction about its development over the past seven years? Going forward, what important plans will you focus on? Thank you.

Wang Zhengpu:

I will answer your questions, which are very important and meaningful to Hebei's development. The development of Xiong'an New Area is a major national strategy that was planned, deployed, and promoted by General Secretary Xi Jinping. During each important period and at every critical moment, he has pointed the direction and guided the way for us. Over the past seven years, Xiong'an New Area has emerged from a blueprint into a lively area. With solid steps and steady progress, we are working hard to develop the area into a high-standard, modernized city. Next, I will briefly introduce four aspects of the area's development.

First, the top-level design of the area has basically been completed. We have adhered to a global vision and international standards to develop the area into a place with distinctive Chinese characteristics and future-oriented goals. We formulated a planning system that sets the Plan for Xiong'an New Area in Hebei as the overarching guide. It focuses on the general plan for Xiong'an New Area, the regulatory plan for the Initial Development Zone, the detailed regulatory plan for the Pilot Area, and the governance and conservation plan for Baiyangdian Lake. Special plans for fields such as comprehensive transportation, ecological conservation, and flood control also support the system. The province has implemented the central leadership's Guidelines on Supporting Xiong'an New Area in Comprehensively Deepening Reform and Opening up, and rolled out plans to back up the implementation of relevant financial, fiscal, tax, approval, and other policies, providing important support and guarantees for the construction of the new area.

Second, the new area is taking shape comprehensively as a city. The main road network of the Pilot Area is fully open to traffic. The construction of major municipal infrastructure and a group of landmark projects, such as the Xiong'an Sports Center, has been basically completed. The internet industrial park, science park, headquarters area, and four comprehensive residential areas are all taking shape. In the Initial Development Zone, we have begun the construction of the main road network and accelerated the construction of utility tunnels in the northern section of the fifth borough and other infrastructure. The construction of major projects, including the Xiong'an-Shangqiu High-Speed Railway and the Xiong'an-Xinzhou High-Speed Railway, has also accelerated. Overall, we have developed a total area of 184.5 square kilometers in the new area, involving a total floor area of more than 43 million square meters and over 4,000 buildings.

Third, innovation has enjoyed a more favorable environment. Supported by four relocated universities from Beijing, colleges within Hebei province, and some enterprises, the Xiong'an University Collaborative Innovation Alliance has been formed. We have also accelerated the building of the China Aerospace Information and Satellite Internet Innovation Alliance, and a batch of industrial chain enterprises have been launched in the new area, including China Xingwang Digital Technology Co., Ltd. and PIESAT International Information Technology Limited. With a focus on talent, opening-up, and other institutional innovations, 16 policy measures have been introduced to attract top scientists, young talented people, master craftspeople and other talented people. These 16 items of Xiong'an's talent policies have gained wide attention across society. Moreover, we have launched a scenario collection and display project named "Collection of Future City in Xiong'an" and have also bolstered the rapid development of technological innovation platforms such as the pilot base of the Xiong'an Science and Technology Innovation Center. The new area has become a hub hosting an increasing number of innovations.

Fourth, people's wellbeing has evidently improved. The administrative division code, postal code, and vehicle license plates beginning with "冀X" have been officially put into use in the new area. Enterprises based in Beijing can relocate to Xiong'an through convenient online procedures instead of on-site applications. The social security card is applicable in both Beijing and Xiong'an. A total of 107 services can be accessed through integrated city services. A housing system has been formed in the new area, which ensures supply from multiple sources, provides housing support through multiple channels, and encourages both house purchases and rental. Under this system, more than 120,000 residents have moved into their new homes. We have also stepped up our efforts in forest conservation. The forest coverage rate was 11% before the new area was established and has since risen to 34.7%. We can again enjoy the beautiful scenery of blooming lotuses and lush reeds across Baiyangdian Lake, which has become a paradise for various bird species. The new area is becoming an amazing city that people look forward to visiting and living in

Next, we will firmly adhere to the original mission of the new area, focusing on creating a city of innovation, charm, and the future. First, we will promote relieving Beijing of functions nonessential to its role as the capital. We will accelerate the construction of the first batch of relocation projects, coordinate and enact the second batch of relocation plans, and ensure the implementation of landmark projects. In summary, in the construction of Xiong'an New Area, we will prioritize relieving Beijing of functions nonessential to its role as the capital. Second, we will focus on construction. We will promote the construction of major areas and key projects in an orderly way, improve supporting facilities, and build a modern urban landscape. Third, we will encourage innovation. We will expand the Scenario Pool of Xiong'an Future City innovative platform, promote the introduction of innovative resources through platforms such as the scientific and technological innovation center, and continue to host the "Xiong'an Trip" series of activities. Fourth, we will create a better environment. We will coordinate the ecological governance of Baiyangdian, focus on the construction and management of the "Thousand-Year Forests Project," and create a model city for green development.

Seeing is believing. I extend a warm welcome to all the journalists present. Please take some time to visit Xiong'an New Area in Hebei province and experience firsthand its development and innovative atmosphere. Thank you, everyone!

Economic Daily: 

The results of the 2023 Annual Survey on Business Environment for 100,000 Private Enterprises released by the All-China Federation of Industry and Commerce show that Hebei is one of the top five provinces in the country with the most evident progress. My question is, in terms of optimizing the business environment, what specific measures has Hebei province implemented? What are the new priorities for this year? Thank you.

Wang Zhengpu:

Thank you for your question. This question will be answered by Zhao Dachun, vice governor of Hebei province.

Zhao Dachun:

Thank you for your interest and attention regarding the business environment in Hebei. Since the beginning of this year, our efforts to optimize the business environment have been ongoing, focusing on the general objective of creating a first-class business environment that is market-oriented, governed by the rule of law, and internationalized. We have continuously improved efficiency, pursued reforms, and strengthened regulation.

First, we aim to make public services more convenient. We have set the goal of "four conveniences": simplifying procedures, providing smart services, ensuring immediate processing, and delivering satisfactory outcomes. All approval procedures related to enterprises and people's livelihoods have been centralized at local government service halls. Additionally, we have launched a province-wide integrated online service platform to facilitate "single-window" services and "online access for all." We have integrated all provincial hotlines into a single, unified number, "12345." This makes it convenient for the public to contact us and enables us to proactively detect problems through data analysis and promptly address them. In addition, we can provide real-time supervision and objective evaluation of departmental work, ensuring satisfactory outcomes. We have also innovatively created the "Policy Portal for Enterprise and People's Benefit," transforming the approach from "people seeking policies" to "policies reaching people." This platform ensures that policies are promptly and comprehensively enjoyed. Furthermore, governments at all levels have regularly conducted on-site work to promptly address practical issues. Overall, business confidence in Hebei has generally increased, with an average net increase of over 700 companies per day last year.

Second, we strive to ensure fairer market competition. We treat all entities equally. On the one hand, we have implemented "double-blind" reforms in bidding and tendering processes to achieve full online processing, blind selection of evaluation experts, blind evaluation without the bidders' information, and "decentralized" evaluation with physical isolation, eliminating any possibility of opaque operations. On the other hand, we have thoroughly reviewed and cleared standards and subsidies linked to the nature of enterprises, decisively dismantling "hidden barriers" and delegating more opportunities to the market and enterprises. Since June of last year, the percentage of private enterprises winning bids by volume has increased from 39% to 56%, and the percentage of private enterprises winning bids by number has risen from 73% to 84%. The total revenue and assets of the "Top 100 Private Enterprises in Hebei Province in 2023" increased by 16.43% and 27.28% year on year, respectively.

Third, we are enhancing integrity building. We are urging governments at all levels to protect the legitimate rights and interests of enterprises in accordance with the law, ensuring minimal interference and prompt responses to their needs. We also encourage enterprises to uphold honesty, trustworthiness, and contract compliance. In the National Urban Credit Monitoring Rankings released in February of this year, Shijiazhuang city in Hebei ranked 10th out of 36 cities, including provincial capitals and those at and above the sub-provincial level. Notably, the number of county- and prefecture-level cities that entered the top 20 in their respective categories ranked first and second among all provinces nationwide. This progress is indeed remarkable.

Optimizing the business environment is an ongoing, perpetual process. This year, we will vigorously promote one-stop government services to further enhance the sense of accomplishment for enterprises. We will also continue to improve the level of factor support, ensuring smoother financing channels, more flexible land supply methods, and lower logistics costs, especially for new elements such as computing power and data. Additionally, we will carry out actions to enhance the quality of law enforcement, providing both standards and warmth in enforcement and effectively implementing the rule of law to safeguard the interests of business entities. Thank you!

Hebei Radio and TV Station:

The provincial governor just mentioned that this year marks the 10th anniversary of the significant national strategy for the coordinated development of the Beijing-Tianjin-Hebei region. Relieving Beijing of functions nonessential to its role as the capital is an important task assigned to Hebei by the CPC Central Committee. My question is, how should Hebei seize this opportunity to accelerate its own development while aligning with and serving Beijing and Tianjin? Thank you.

Wang Zhengpu:

Thank you for your question. This question will be answered by Zhang Chengzhong, vice governor of Hebei province.

Zhang Chengzhong:

Thank you for your question. I will answer it. The coordinated development of the Beijing-Tianjin-Hebei region is a significant national strategy. General Secretary Xi Jinping emphasized that relieving Beijing of functions nonessential to its role as the capital city is a priority and urged Hebei to accelerate its development while aligning with and serving Beijing and Tianjin. We will bear in mind General Secretary Xi Jinping's instructions, seize this significant historic opportunity, and comprehensively integrate and undertake the tasks. The coordinated development of the Beijing-Tianjin-Hebei region has achieved remarkable results, entering a stage of all-round, high-quality, and deepened advancement.

First, we will continue to boost efforts to ensure the transfer of functions nonessential to the capital. A key platform system will take shape, where Xiong'an New Area, serving as a major recipient of functions relieved from Beijing, will play the major role. Moreover, supporting platforms, including those promoting cooperation and providing specialized, professional, and customized services, will serve to continually enhance our comprehensive capability in ensuring the transfer of non-capital functions. The development of Xiong'an New Area, serving as a major recipient of functions relieved from Beijing, has entered a phase when the same importance must be attached to both its large-scale construction and its purpose to relieve Beijing of functions nonessential to its role as the national capital. The focus has shifted to high-quality construction, high-level management and high-quality development of relieving Beijing of functions nonessential to its role as the national capital. As such, the role of Xiong'an New Area as a major recipient of functions relieved from Beijing that are nonessential to its role as China's capital has become more evident. Caofeidian district of Tangshan city is positioned with a port, vast tracts of land, and ample potential for development. At the same time, Beijing boasts a wealth of resources in science and technology, education, and talent. As many as 247 industrial projects worth more than 100 million yuan have been transferred from Beijing to Caofeidian, and the latter has invested over 177 billion yuan. Caofeidian is working with Beijing and Tianjin to create new sources of growth for high-quality development in the Bohai Sea region. Around 43,000 companies have moved from Beijing and Tianjin to Hebei province. We will continue to provide good services and support to ensure that the transferred projects can come, stay, and thrive. We will ensure substantial achievements in major areas. Over the past 10 years, the rail network connecting Beijing, Tianjin and Hebei has been quickly taking shape. Moreover, joint efforts to prevent and control environmental pollution have been continuously strengthened, and air quality has been significantly improved. Hebei, Beijing, and Tianjin have made new progress in promoting coordinated innovation, sharing scientific and technological resources, and applying achievements in science and technology research. In 2023, the volume of contracted technology transactions introduced to Hebei province from Beijing and Tianjin reached 81 billion yuan, 12 times that of 2014. To achieve new breakthroughs, we will intensify collaboration with Beijing and Tianjin in such key areas, working together to ensure cleaner air and water, faster traffic, and more dynamic development for the three regions.

Second, we will continue to push forward the integrated development of key regions. Efforts will be intensified to build the demonstration zone for high-quality and integrated development in Tongzhou district and the three northern counties of Langfang city (Sanhe, Dachang, and Xianghe). In the regions along the banks of the Chaobai River, we will promote the integrated development of industrial, supply, and innovation chains. We will continue to hold promotional campaigns for various projects and introduce more projects to cultivate new quality productive forces. Furthermore, we will advance the construction of the Beijing Daxing International Airport Economic Zone, continuously optimize the management system, and explore new approaches for cross-regional integrated development.

Last but not least, we will ensure everyone can enjoy the benefits brought about by the coordinated development. The integration of social security cards in Beijing, Tianjin, and Hebei has enabled people to access services across multiple fields, including government services, social security, and healthcare. As such, it is fair to say that one card takes care of everything. We will continue to accelerate the integration of government services. A total of 203 government service items are now handled according to consistent standards across Beijing, Tianjin, and Hebei, and all business-related government services are now provided on a cross-provincial basis. Take Tongzhou district and the three northern counties of Langfang as an example; in the past, business-related services could only be handled in local areas. However, now, self-service terminals for government services in Tongzhou district enable enterprises to access government service centers in the three northern counties of Langfang without traveling far. Moreover, Beijing, Tianjin, and Hebei have worked together to establish 40 medical treatment partnerships to promote effective cooperation and coordination between different types of medical institutions, and such services have been made available for all cities with subordinate districts in Hebei province. Going forward, we will accelerate the improvement and sharing of public services and ensure that people in the three regions enjoy the dividends of coordinated development. Thank you.

Phoenix TV:

We noticed that Hebei has implemented 20 livelihood projects in recent years. Could you please introduce more details in this regard? What are the key areas of work going forward? Thank you.

Wang Zhengpu:

Thank you. I'd like to invite Ms. Jin to answer your questions.

Jin Hui:

Thank you for your questions. The CPC Hebei Provincial Committee and the Hebei provincial government have firmly adhered to the people-centered development philosophy. As the journalist mentioned, we have implemented 20 livelihood projects for years. We have delivered on our promises to the public through the timely completion of all these tasks. For example, since 2008, we have included rebuilding housing units in run-down urban areas and renovating old residential communities and urban villages as part of our livelihood programs. This has resulted in the reconstruction of 796,000 housing units and the renovation of 13,463 old residential communities and 1,341 urban villages. Such efforts allow residents to transition from old, decayed, and cramped housing units into new apartment buildings. We've also implemented a project to switch rural drinking water sources to river water delivered by the South-North Water Diversion Project. This program has provided nearly 30 million rural residents with access to river water. Hebei was also the first in the country to introduce a program of free genetic screening for pregnant women, which has significantly reduced the birth rates of children with intellectual disabilities and hearing and speech impairments.

A new batch of livelihood projects will be launched in three areas this year. First, stepped-up efforts will be made to improve people's living environment in urban and rural areas. We will complete the task of restoring and rebuilding disaster-damaged rural housing, ensuring all disaster-affected residents can live in safe and secure homes. We are implementing the "pocket park" program to create or upgrade a batch of standardized and small-scale sports themed parks, providing residents with new options for recreation and enjoyment. We will also renovate a batch of toilets in rural areas to help improve the rural living environment. Second, we will focus on strengthening infrastructure in urban and rural areas. We will further elevate the quality of public services, making continued efforts to construct and renovate roads in rural areas, build and expand a group of compulsory education schools, and increase compulsory public education enrollment. We will implement comprehensive scoliosis screenings for all primary and secondary school students across the province, aiming to establish the "Hebei model" for preventing and controlling scoliosis in children and adolescents. In response to families' difficulties in childcare, we will extend the coverage of public childcare services. Third, we will strive to strengthen the social security system. We will make every effort to assist unemployed individuals in finding employment or starting businesses, and support families with elderly members facing special difficulties in renovating their homes to make them more age-friendly. We'll also provide a targeted meal assistance program, meeting the most urgent and pressing needs of people with disabilities. Moreover, we will improve the quality and efficiency of social assistance to ensure people's well-being. So far, all these livelihood projects are being implemented in a smooth and orderly manner. Thank you.

Xinhua News Agency:

Transforming saline-alkaline land into high-yield plots is a major highlight of the work in Hebei. What has Hebei done in treating saline-alkaline land? And what measures will it take this year? Thank you.

Wang Zhengpu:

Thank you to the journalist from Xinhua. Saline-alkaline land is an important aspect of the agricultural work for Hebei. Treating and utilizing saline-alkali land is of great importance to China's national food security. Hebei has a large area of saline-alkaline land. In 2011, Hebei had 10.68 million mu of such land, accounting for 12% of its total farmland. Through our treatment work over more than a decade with measures such as irrigation and water conservancy as well as biological treatment, the area of saline-alkaline land has continued to decrease, demonstrating the great achievements made by Hebei in treating and utilizing saline-alkaline land. 

During his inspection tour of Cangzhou in May last year, General Secretary Xi Jinping issued important instructions, requiring us to make great efforts to develop agriculture featuring saline-alkaline land. Hebei province has resolutely implemented the instructions and taken measures in five aspects in the past year. First, we collected information through technical means and field surveys to determine the quantity, types and distribution of saline-alkaline land. According to our findings, there is currently 5.83 million mu of saline-alkaline land, mainly distributed in Cangzhou, Zhangjiakou and Tangshan. Second, we relied on scientific support. We formed a team of experts to tackle technical challenges, with the aim of making improvements through a combination of water management and soil treatment. Last year, we completed transformation of 180,000 mu of saline-alkaline land. Third, we promoted high-quality crop varieties. We adhere to the principle of developing new varieties suitable for saline-alkaline land and continuing development of facilities for irrigation and water conservancy to reduce salinity and alkalinity. Last year, Huanghua's drought and saline-alkaline-tolerant wheat was listed on the national list of local specialties by the Ministry of Agriculture and Rural Affairs. Fourth, we conducted pilot demonstration programs. We carried out 13 pilot projects tailored to local conditions to explore different industry models and planting patterns. Last year, Hebei province was included in the national pilot program for comprehensive utilization of saline-alkaline land. Fifth, we explored roads to prosperity. We guided leading enterprises in developing deep-processing industries, nurtured well-known brands, promoted the development of industrial chains, and achieved a triple win scenario — whereby farmers earn income, companies gain profit and the market accepts the products. Hebei's saline-alkaline land has produced many distinctive agricultural products, turning what was once a disadvantage into an advantage. These products are of high-quality and suitable for people to eat, making their way into major supermarkets in Beijing and Tianjin. For example, colorful steamed buns from Tangshan and Cangzhou, a provincial-level intangible cultural heritage, are made of drought-tolerant wheat from Cangzhou, and have received widespread acclaim from consumers. 

Moving forward, Hebei will vigorously implement a strategy of sustainable farmland use and the innovative application of agricultural technology to increase farmland productivity. We will focus on key tasks such as the development and promotion of saline-alkaline tolerant crop varieties, soil improvement, specialty industry zone construction, large-scale development and industrialized management. A series of supporting policies and measures will be implemented to tap into the potential of saline-alkaline land development and utilization, maximizing the value of saline-alkaline land through special agriculture. Thank you.

Red Star News:

Last year, Hebei experienced extremely heavy rainfall and flooding. Hebei authorities pledged to complete post-disaster reconstruction within two years. Could you provide us with an update on the progress and outcomes of the restoration efforts? Thank you.

Wang Zhengpu:

Thank you for your question. I'd like to invite Mr. Zhang to answer. 

Zhang Chengzhong:

Thank you for your concern about Hebei's post-disaster recovery and reconstruction. After the massive flooding in July 2023, we resolutely implemented General Secretary Xi Jinping's important instructions, united as one, overcame difficulties and achieved a decisive victory in disaster relief. We have made significant progress in post-disaster recovery and reconstruction. First, we united and worked tirelessly to rebuild a better home. Last year, we repaired, reinforced and built over 165,000 rural houses, while construction of over 21,600 new rural houses will be completed before this winter. We ensured that every household in the affected areas had heating facilities in place to ensure a safe and warm winter. Infrastructure such as water, electricity, roads, gas, communication and sewage treatment was fully restored. All students returned to school on time in the fall of last year. We improved the urban and rural environments, and significantly changed the look of flood-affected areas. Second, the production and living order in the disaster areas have been fully restored. We pre-allocated subsidies and relief funds, pre-compensated insurance funds, and carefully handled the compensation for flood retention areas, providing reassurance to the affected population. We implemented policies to alleviate difficulties and provide assistance, such as rent reductions and loan interest subsidies, allowing market entities to quickly resume normal operations. We restored damaged farmland and agricultural facilities, working to minimize losses from the disaster. In Zhuozhou, one of the hardest-hit areas, some disaster-affected communities established canteens to ensure residents have food, and replanting was carried out in damaged farmland and greenhouses with expert assistance. Finally, we ensured timely and high-quality post-disaster reconstruction. All water-damaged flood control projects should be fully restored by June 30. Over 90% of damaged schools, health centers and nursing homes have been repaired or rebuilt, with full completion expected by the end of this year. In summary, we can fully complete the post-disaster reconstruction work within two years.

In terms of building up capacity for disaster prevention, reduction and relief, we have seized major opportunities presented by the additional issuance of government bonds and have coordinated the planning and implementation of 1,210 projects for post-disaster recovery and reconstruction as well as the improvement of capacity for disaster prevention and relief. Once completed, the projects will greatly enhance Hebei's flood prevention and disaster resilience. In January this year, we issued Regulations on the Transfer of Personnel for Flood Control and Hazardous Relief of Hebei Province, standardizing the entire process of transfer for flood control and hazard evasion and providing legal protection for the transfer of people. In February this year, we cooperated with the People's Insurance Company Group of China (PICC) and other insurance institutions to take the lead in creating comprehensive catastrophe insurance across the country, covering all types of disasters and insured more than 74 million residents in the province with comprehensive catastrophe insurance. Thank you.

Science and Technology Daily:

Data indicates that in the first quarter of this year, investment in Hebei's high-tech industries increased by 45.1%, demonstrating a strong momentum with growth. What experience does Hebei have in promoting technological innovation? What are the next steps in this field? Thank you.

Wang Zhengpu:

Thank you for your questions. I'll invite Mr. Zhao Dachun to answer these questions.

Zhao Dachun:

Thank you for your questions. I'll offer you a brief introduction on scientific and technological innovation in Hebei.

In recent years, we have deeply implemented the strategy of innovation-driven development and striven to turn the key variable of scientific and technological innovation into the maximum increment of high-quality development. Hebei's research and development (R&D) funding growth rate ranks sixth in the country and has maintained double-digit growth for six consecutive years.

First, we let enterprises be the main players. We earnestly execute policies such as additional deductions for corporate R&D expenses and subsidies after R&D investments to make sure enterprises enjoy all the benefit they deserve. At the same time, in order to meet the actual needs of enterprises, we have selected 318 sci-tech special missions to provide one-on-one assistance to "little giant" firms to carry out technological research. Simultaneously, we have also implemented a special initiative to increase R&D investments in SOEs in three years and to strengthen in five years, which has greatly improved the R&D capabilities of provincial SOEs. In the past two years, the R&D investment of Hebei's SOEs has led the nation. The "technology gene" of our enterprises has been significantly enriched.

The second is to empower industrial transformation with technology. We have aimed for high-end, intelligent and green development and to promote the transformation and upgrading of traditional industries. Especially, we have built high-energy innovation platforms with a focus on Hebei's leading industries and conquer key common technologies. For example, the Hebei Iron and Steel Laboratory has gathered eight academician teams to carry out whole-chain innovation from materials and technology to products. The world's first 1.2 million-tonne hydrogen metallurgy demonstration project at Xuanhua Iron and Steel Group Co. Ltd, a subsidiary of our provincial enterprise HBIS Group Co. Ltd, was officially put into operation last year, marking an important milestone in the transformation from traditional carbon metallurgy to new hydrogen metallurgy in China's and even the world's iron and steel industries. At the same time, we have deepened cooperation with research institutes and universities to cultivate and expand strategic emerging industries such as integrated circuits, electronic power equipment and biomedicine. In the first quarter of this year, our high-tech industry investment growth rate was 33.7 percentage points higher than the national average. We have proactively laid out future industries such as aerospace information, advanced computing power and green hydrogen energy. We have built 29 data centers in Zhangjiakou city and several intelligent computing centers in Langfang city. Hebei province ranks fourth in the country in terms of comprehensive computing power index. At the same time, we have also creatively implemented the Science and Technology Innovation Leap Plan at the county level, and the innovation capabilities of Hebei counties have been greatly improved.

Third, we solidly promote the development of Beijing-Tianjin-Hebei region as a collaborative innovation community. We are committed to building a leading area for innovation-driven development in Xiong'an New Area, launching 18 solid incentive policies and building seven innovation ecosystems including satellite internet, a BeiDou Navigation Satellite System and intelligent connectivity, making Xiong'an full with an innovative atmosphere. In addition, we focus on solving the "leapfrog" phenomenon of scientific and technological achievements in Beijing and Tianjin, strive to facilitate the channel for commercializing R&D results from these cities in Hebei, implement special projects for basic research cooperation jointly with Beijing and Tianjin, build a network for the commercialization of scientific and technological achievements, set up two sub-centers of the Jingjinji National Center of Technology Innovation, build up a long-term mechanism for matching the supply and demand of scientific and technological achievements, continue to expand the brand connotation of "So close, so beautiful, spend your weekends in Hebei" and promote the commercialization of technological achievements from Beijing and Tianjin in Hebei, a province with both a beautiful natural environment and a favorable business environment. Last year, we attracted 81 billion yuan in technology contract transactions from Beijing and Tianjin, doubling the amount year-on-year. The siphoning effect of Beijing and Tianjin is acceleratingly transforming into a radiating and driving effect, and this change is quite evident.

Next, we will first seize major national strategic opportunities, give full play to Hebei's geographical position, further deepen collaborative innovation in the Beijing-Tianjin-Hebei region, leverage the role of Xiong'an New Area as an innovation hub and speed up the accumulation of innovative resources and the commercialization of innovation results. Second, we will continue to build a high-level innovation platform, attract high-level innovation teams, create a first-class innovation ecosystem and further enhance the innovation vitality of the province. Third, we will implement the three-year action plan of innovative application scenarios to promote the in-depth integration between industries, universities, research institutes, and end-users, create a number of new industries, new models and new momentum, accelerate the formation of new quality productive forces in Hebei and further promote high-quality development to break new ground.

That's all for my introduction. Thank you.

People's Pictorial:

The slogan "So close, so beautiful, spend your weekends in Hebei" has already become a well-known catchphrase for Hebei. What high-quality cultural and tourism resources can Hebei recommend to tourists for the upcoming May Day holiday? What measures will be taken to improve the quality of tourism services and the tourist experience? Thank you.

Wang Zhengpu:

Thank you for your questions. I would like to invite Ms. Jin to answer.

Jin Hui:

Thank you for your questions. By creating the cultural tourism brand "Spend Your Weekends in Beautiful Hebei," the province not only actively promotes the high-quality development of the cultural tourism industry, but also has accomplished a significant achievement in the coordinated development of the Beijing-Tianjin-Hebei region.

Hebei is so close and so beautiful. It is so close that a one-hour transportation circle has been formed in the Beijing-Tianjin-Hebei region. This region is characterized by the presence of a world-class airport cluster and the three major ports of Qinhuangdao, Tangshan and Cangzhou. The convenient transportation infrastructure facilitates travel in all directions and connects the region to the world. Hebei is also very beautiful, boasting rich historical and cultural heritage, magnificent natural landscape, and warm and genuine hospitality. Hebei is home to 12 5A-level scenic spots and four world cultural heritage sites. It ranks among the top in the country in terms of the number of national key cultural relics protection units and national intangible cultural heritage items.

In recent years, we moved quickly to forge a tourism development paradigm that integrates tourism with culture and promotes wholistic tourism in different seasons. When you come to Hebei, you can visit Yesanpo and Baishi Mountain in Baoding and the Xingtai Great Canyon to experience the majestic mountains, clear waters, marvelous canyons and unique rock formations of the Taihang Mountains. You can also explore historical and cultural cities and towns such as the Zhengding ancient city and numerous traditional cultural villages, tracing the roots of historical culture. You can drive along the Grassland Highway and experience the charm of the summer grasslands. In Chongli, the Winter Olympic town, you can fully enjoy the speed and excitement of world-class ski resorts. Additionally, you are welcome to visit Xiong'an, the City of the Future, and feel the vibrant growth. Explore the beautiful Baiyangdian Lake, known as the Pearl of North China, and experience the charm of northern water towns. The Chengde Mountain Resort, Jinshanling Great Wall and other historical and cultural sites are captivating destinations that never cease to amaze visitors. You can also visit Xibaipo, a sacred site in China's revolutionary history, to witness the profound changes of history and reflect upon the passage of time.

In recent years, we have focused on meeting the demands for high-quality cultural tourism products, emphasizing the integration of culture and travel, and developing wellness tourism. This has made tourism an integral part of people's high-quality lives. Destinations like the Aranya's Lonely Library in Qinhuangdao have become popular attractions for photo enthusiasts. The Unique Dream of Red Mansions theatrical complex in Langfang vividly portrays the timeless story of the novel "The Dream of Red Mansions." The Fantawild Legend Kingdom theme park in Handan has become a preferred destination for educational tourism. Furthermore, the revitalization of intangible cultural heritage items, such as martial arts in Cangzhou, acrobatics in Wuqiao and paper-cutting in Yuxian, allows visitors to immerse themselves in diverse folk customs and traditions.

Next, we will continue to strengthen resource sharing with Beijing and Tianjin, and work together to build the Beijing-Zhangjiakou sports and cultural tourism belt, Great Wall cultural tourism belt and Grand Canal cultural tourism belt. We will make good use of the Winter Olympics legacy, cultivate new forms of tourism, and launch a selection of curated travel routes. We will continue implementing policies such as free passage for tourist charter buses and managing the mini app for travel and tourism in Beijing, Tianjin and Hebei, vigorously supporting travel agencies in bringing visitors to Hebei.

"Spend Your Weekends in Beautiful Hebei." With the May Day holiday fast approaching, we sincerely invite everyone to visit Hebei, explore its beauty, and experience the warm hospitality of its people. Thank you.

Xing Huina:

Due to time constraints, we will take the final two questions.

China Daily:

In recent years, Hebei has accelerated its pace of transformation, with rapid development in industries such as biomedicine and electronic information. What plans are in place for fostering emerging and future industries? What adjustments will be made in the future to deal with the current situation of an imbalanced industrial structure? Thank you.

Wang Zhengpu:

Thank you to the journalist from China Daily. I would like to invite Mr. Zhang to answer them.

Zhang Chengzhong:

Thank you for your interest in and support for the industrial development in Hebei. The province of Hebei is known for its traditional industries, with a complete range of industries and a well-established industrial system. In recent years, we have been relying on sci-tech innovation to drive growth and promote the rapid development of emerging industries such as electronic information and biomedicine. In 2023, the revenue of the biopharmaceutical industry exceeded 100 billion yuan, and the revenue of the electronic information industry exceeded 300 billion yuan. Investment in high-tech industries in the province increased by 24.7%. As Mr. Zhao mentioned, the growth rate in the first quarter of this year has been even faster, reaching 45.1%. In order to foster and expand emerging industries, proactively plan for future industries, develop new quality productive forces according to local conditions, and accelerate the construction of a modern industrial system, our next focus will be on three aspects.

The first aspect is "cluster" aggregation. We are implementing actions to promote the integrated development of strategic emerging industry clusters. We are focusing on supporting nine industry clusters, including biomedicine, electronic information and new energy vehicles. Additionally, we are nurturing eight industry clusters, such as new materials, safety and emergency equipment, and modern traditional Chinese medicine. Our goal is to facilitate the transition of strategic emerging industries from mere aggregation to cluster-based development.

The second aspect is strengthening industry chains. We will extend the industrial chains of emerging industries, fostering not only the "big trees" of leading enterprises but also the "small trees" of upstream and downstream supporting enterprises. Ultimately, this will build up the "forest" of emerging industries, producing a more vibrant industrial ecology.

Finally, we will move towards the "new." We will fully leverage our own advantages and proactively plan for future industries. For instance, Hebei has a solid foundation and advantages in the development of the big data industry. By the end of 2023, the total computing power will exceed 21,000 petaflops. Leveraging this computational advantage, we will vigorously develop future industries such as advanced computing and artificial intelligence. Additionally, we will accelerate the development of aerospace information, green hydrogen energy and other industries, enabling future industries to take root, sprout and flourish as soon as possible.

When it comes to Hebei's industries, the first impression is of heavy industries, with steel dominating. Over the years, we have vigorously promoted the transformation and upgrading of traditional industries. Starting in 2022, the steel industry took the lead, launching a campaign for seven key sectors to strive for an "A" grade in environmental performance. The industry also greatly improved standards for process equipment and environmental governance, while promoting advanced technologies such as low-carbon metallurgy and clean steel smelting. Now, "new" content in Hebei's steel enterprises has significantly increased. For example, the proportions of high-end and low-end HBIS Group's products have shifted from 30% to 70% 10 years ago to 80% to 20% now, making the company the largest manufacturer of steel for household appliances and the second-largest for automobile steel in the country.

Moving forward, we will adhere to the principles of high-end, intelligent and green development, and accelerate the structural adjustment, transformation and upgrade of traditional industries. We will seize the opportunity presented by the nation's push for large-scale equipment updates by implementing projects for the technological transformation and upgrading in the equipment manufacturing industry. By deepening the empowerment of science and technology, we aim to promote the development of high-end material products in the steel industry and accelerate the supplementation and extension of the industrial chain, and promote the specialized, refined and sophisticated development of the chemical engineering industry. Furthermore, we will actively promote green and energy-saving construction material products, allowing traditional industries to "grow new branches from old trees." Thank you.

Xing Huina:

One last question.

Yicai:

Mr. Wang mentioned earlier the continuous improvement of Hebei's ecological environment. As the province with the largest steel industry, how does Hebei adhere to the principle of prioritizing ecology and green development? Thank you.

Wang Zhengpu:

Thank you for your question, I will answer it. We believe that a good ecological environment is the most universal benefit for people's well-being. We also well aware that Hebei's ecological environment has been a weak point. In recent years, we have firmly embraced the principle that lucid waters and lush mountains are invaluable assets. We have resolutely prioritized ecology and green development, coordinating efforts to reduce carbon emissions, cut pollution, expand greenery and stimulate growth. We strive to achieve new breakthroughs through comprehensive green transformation. Over the past few years, we have focused on three main areas:

First, we have fought a rigorous battle against pollution. We have coordinated a multifaceted approach to reduce energy consumption, minimize coal use, enforce regulations on enterprises, control dust, limit vehicles and augment greenery. We have worked hard to safeguard blue skies, clear waters and clean soil. In 2023, the average PM 2.5 concentration across the province was 38.6 micrograms per cubic meter, a decrease of 57.6% from 2014, with 245 days of good air quality. The proportion of surface water sections that achieved excellent ratings in the national examination has remained above 80% for two consecutive years. Through our daily efforts, fighting for every microgram, the number of smoggy days in Hebei has decreased and the frequency of blue skies and white clouds has increased.

Second, we have vigorously pursued green and low-carbon transformation. We have steadfastly promoted the structural adjustment of industries, energy and transportation, and actively pursued a grade A environmental performance in key industries such as steel and coking. We have accelerated the construction of pumped storage power stations while the total installed capacity of wind power, photovoltaic power as well as with the inventory of new energy heavy trucks ranks among the highest in the country, leading to increasingly green development. Particularly in the pursuit of grade A environmental performance, we have guided enterprises towards in-depth emission reduction and low-carbon transformation through measures such as setting standards, providing technological assistance and policy incentives, significantly elevating the level of environmental protection in enterprises.

Third, we have continuously focused on ecosystem restoration. We adhere to the holistic approach to the conservation of mountain, water, forest, farmland, grassland and desert ecosystems. We have carried out the construction of the northern sand prevention belt and the treatment of wind and sand sources in Beijing and Tianjin, implemented ecological rectification projects in the Yan Mountains and Taihang Mountains, intensified mine restoration and have promoted large-scale land greening. As you may know, Hebei has a notable example of ecological restoration – Saihanba in Chengde. This place used to be a desert, but after decades of management and rectification, Saihanba has now become the world's largest man-made forest. It has won the UN Champions of the Earth Award and the UNCCD's Land for Life Award, serving as a vivid example of ecological civilization development.

In our future work, we will adhere to the principle that lucid waters and lush mountains are invaluable assets, firmly holding the "golden rice bowl" of ecological resources and effectively utilizing the "golden key" of green development. We will strive to build a beautiful Hebei with blue skies, green land and clear waters, to support high-quality development with a high-quality ecological environment and to ensure that the benefits of a healthy ecology reach more people.

Thank you.

Xing Huina:

Thank you, Mr. Wang and the other speakers, as well as our friends from the media. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Wang Qian, Zhou Jing, Li Xiao, Ma Yujia, Mi Xingang, Gong Yingchun, Yuan Fang, Liu Jianing, Zhang Junmian, Yan Bin, Zhang Rui, Liu Caiyi, Liu Sitong, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ms. Liang Huiling, deputy secretary of the Communist Party of China (CPC) Heilongjiang Provincial Committee and governor of Heilongjiang province

Mr. Chen Shaobo, a member of the Standing Committee of the CPC Heilongjiang Provincial Committee and executive vice governor of Heilongjiang province

Mr. Yu Jian, vice governor of Heilongjiang province

Mr. Xu Xiangguo, vice governor of Heilongjiang province

Chairperson:

Mr. Xie Yingjun, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 26, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 12th press conference in the series "Promoting High-Quality Development." Today, we have invited Ms. Liang Huiling, deputy secretary of the Communist Party of China (CPC) Heilongjiang Provincial Committee and governor of Heilongjiang province, to brief you on striving to break new ground in high-quality development and sustained revitalization of Heilongjiang, and then answer your questions. Also present today are Mr. Chen Shaobo, a member of the Standing Committee of the CPC Heilongjiang Provincial Committee and executive vice governor of Heilongjiang province; and Mr. Yu Jian and Mr. Xu Xiangguo, both vice governors of Heilongjiang province.

Now, I'll give the floor to Ms. Liang for her introduction.

Liang Huiling:

Ladies and gentlemen, good morning. First, on behalf of the CPC Heilongjiang Provincial Committee, the Provincial People's Government and the people of Heilongjiang province, I would like to express my heartfelt gratitude to you for your long-term interest in and strong support for our province.

General Secretary Xi Jinping has always attached great importance to the revitalization and development of Heilongjiang province, and he cares deeply about the people of the province. In September last year, on the occasion of the 20th anniversary of the implementation of the Northeast China revitalization strategy, General Secretary Xi Jinping visited Heilongjiang again, delivering an important speech and giving important instructions. We bear in mind his instructions with gratitude, firmly grasp our strategic positioning in the overall national development, tightly focus on the primary task of high-quality development, and build and strengthen the province as an important national commodity grain production base and heavy equipment manufacturing base, an important energy and raw material supplier, a vital guardian of ecological security in northern China, and a pivotal gateway for the nation's northward opening-up. We are effectively safeguarding national defense, food, ecology, energy and industrial security, and making solid strides in high-quality development, presenting a vibrant scene in Heilongjiang.

First, we are ensuring that sci-tech innovation leads the overall industrial revitalization. Heilongjiang province is rich in scientific and educational resources, with 78 universities and 120 independent research institutes. We are harnessing the role of sci-tech innovation in increasing output, strengthening the use of national-level innovation platforms, and applying a number of major technological achievements to national strategic tasks such as manned spaceflight. The first large-scale scientific facility in China's aerospace field, constructed by the Harbin Institute of Technology, has been put into use. We are promoting the transformation and upgrading of traditional industries, propeling large-scale equipment renewals, and accelerating the transformation toward high-end, intelligent and green development. Daqing Oilfield is striving to be a model and flagship, with the aim of building a centennial oilfield. It has accumulated crude oil production of 2.53 billion metric tons, accounting for 36% of the national onshore crude oil production. Significant breakthroughs have been made in the exploration and development of continental shale oil. We are vigorously developing strategic emerging industries and future industries, creating industrial clusters in fields such as aerospace and high-end equipment, and accelerating the development of new quality productive forces. A number of national major projects in the new era demonstrate China's strength. For example, the hydrogenation reactor produced by China First Heavy Industries set a new world record, and the Baihetan hydropower station, independently developed by Harbin Electric Corporation, has the world's largest single-unit capacity of 1 million kilowatts for hydro-generating units. 

Second, we are firmly fulfilling our role as a "ballast" in ensuring national food security. Heilongjiang province, situated in one of the world's three major black soil belts, boasts a cultivated area of 258 million mu (about 17.2 million hectares), ranking first nationwide. We are committed to cultivating more high-quality crops, actively implementing plans to increase grain production by tens of millions of metric tons, and prioritizing substantial improvements in grain yield per unit area to enhance overall grain production capacity. Last year, grain output reached 155.76 billion jin (about 77.88 billion kilograms), accounting for 11.2% of the national total, and ranking first nationwide in total production, commercial quantity and outbound quantity. Our main focus is on developing modern large-scale agriculture, while simultaneously fostering the development of technology-driven agriculture, environmentally friendly practices, quality enhancement and branded agricultural products. We are dedicated to establishing modern agricultural bases, enterprises and industries, with top-tier standards in farmland management, organic food certification areas and comprehensive crop mechanization rates, all ranking first nationwide.

Third, we are committed to establishing a model region where "clear waters and green mountains are priceless assets, as are snow and ice." Our province boasts expansive forests, grasslands, wetlands, lakes, rivers and extensive snowscapes, serving as vital ecological buffers in the northern expanse of our nation. We have firmly embraced the notion that nurturing greenery equates to enhancing our strengths and safeguarding forests secures our prosperity. Committed to preserving lush mountains and lucid waters, we are charting a course of ecological conservation and green development. Last year, our region achieved an impressive 94.2% of days with excellent air quality, and our instituted systems of river and lake chiefs earned accolades from the State Council for four consecutive years, underlining the pivotal role of green initiatives in fostering high-quality development. We are actively promoting unique cultural tourism and making high-standard preparations for the 9th Asian Winter Games, aiming to cultivate new economic hubs in the ice and snow sectors. Heilongjiang's ice and snow tourism is experiencing a surge in popularity.

Fourth, we are accelerating the establishment of a pivotal gateway for the nation's northward opening-up. Heilongjiang is a crucial node in the Belt and Road Initiative (BRI), boasting 27 first-class ports with neighboring countries. We are intensifying efforts to enhance open channels, continuously improving port efficiency, and normalizing operations of key infrastructure such as the China-Russia Tongjiang-Nizhneleninskoye cross-border railway bridge and Heihe-Blagoveshchensk cross-border highway bridge. The international aviation hub functions of Harbin Airport have undergone comprehensive upgrades. We are also innovating the development of free trade zones, the Harbin New Area and other open platforms, actively expanding into diversified international markets, and constructing a comprehensive pattern of all-round opening-up. Last year, the province witnessed a 12.3% increase in total foreign trade volume. We are consistently enhancing the business environment, offering end-to-end policy support and services throughout the entire business lifecycle. Our approach ensures accessibility when needed and no unnecessary disruption, with a commitment to swift and efficient processing. Last year, the province witnessed a 14% increase in newly registered enterprises. According to a report by the All-China Federation of Industry and Commerce assessing the business environment of thousands of private enterprises nationwide, our province ranked among the top five provinces for most noticeable advancements.

Fifth, we are working hard to improve people's well-being. Last year, we effectively responded to local flood disasters, intensifying efforts to promote post-disaster recovery and reconstruction. We swiftly restored the order of production and daily life in the flood-affected regions, ensuring the safety and heating for residents impacted by the disaster. In addition, we conducted home visits to ensure that residents' heating needs were met. We promoted smart heating, increasing heating capacity to benefit more than 390,000 households and ensuring that people had a warm winter. We also focused on stabilizing employment. An increasing number of college graduates in the province found local jobs last year , registering the highest level in the past five years. Renovation projects for housing units in rundown urban areas, old residential compounds, and dilapidated houses in rural areas have benefited nearly 1 million people. In the first quarter, the growth rate of per capita disposable income for urban and rural residents ranked among the top in the country.

That is all from me for now. Next, my colleagues and I would like to answer your questions.

Thank you!

Xie Yingjun:

Thank you, Ms. Liang. The floor is now open for questions. Please identify the news outlet you work for before asking your question.

CCTV: 

We have noticed that in the context of promoting high-quality development, many regions have expressed their intention to "accelerate the development of new quality productive forces." What measures will Heilongjiang take to develop new quality productive forces according to local conditions? Thank you.

Liang Huiling:

Your question is very important, and I will answer it. We have specifically formulated and published an action plan on accelerating the development of new quality productive forces. We will focus on three aspects to build the province into a hub for developing new quality productive forces.

First, we will focus on scientific and technological innovation as the driving force. Last year, we introduced 60 measures for innovative development and many other measures for driving industrial revitalization with scientific and technological innovation. We established technology transformation platforms like the Institute for Advanced Technology and the Institute for Artificial Intelligence at Harbin Institute of Technology. In 2023, we completed the transformation of 589 major scientific and technological achievements, and the number of high-tech enterprises grew 22.9%. We will make good use of national sci-tech innovation platforms such as the Harbin-Daqing-Qiqihar National Independent Innovation Demonstration Zone. Efforts will be made to achieve major scientific and technological breakthroughs, cultivate strategic scientific and technological strength, and promote research into new and disruptive technologies in fields such as intelligent robots, life sciences, and continental shale oil. We will adhere to a mechanism in which enterprises set the agenda, research institutions address the problems, and markets evaluate the research results. We will improve this collaborative innovation mechanism among industries, universities, research institutions, and end-users, with enterprises at its core. Efforts will be made to build an ecosystem for innovation and entrepreneurship involving universities and research institutions. We will cultivate and introduce high-tech companies, accelerate the transformation of sci-tech achievements in the province, and foster new growth drivers.

Second, we will focus on local conditions and implement tailored measures. We remain committed to developing a modern industrial system with Heilongjiang's distinctive features, based on the province's unique resource strengths, industrial foundation, and research conditions, to foster new quality productive forces tailored to local conditions. On the one hand, we will revitalize old industries. We will carry out actions to promote technological transformation among 1,000 enterprises each year. With a focus on promoting digital transformation of the manufacturing industry and enhancing the digital capabilities of small and medium-sized enterprises, we will make efforts to accelerate the transformation and upgrading of traditional industries. In the first quarter, investment in technological transformation grew 43.9%. On the other hand, we will create new engines for revitalization. We will implement plans for developing strategic emerging industries and future industries. In the first quarter, the output of high-end equipment, aerospace, and electronic information all experienced double-digit growths.

Third, we will prioritize the development of talent. We will improve the working mechanism for talent cultivation, as part of the efforts to support the development of new quality productive forces. We will work to ensure that the effect of policies is fully unleashed. Guided by the 60 measures for talent revitalization, we will continue to issue supporting documents to fully remove the barriers in talent cultivation, recruiting, and employment. The province has seen the number of its skilled individuals grow by over 260,000 in less than two years. Moreover, the previous trend of people with senior professional titles leaving universities in the province has reversed, with an influx of such individuals now returning to these institutions. We will continue to stimulate the vitality of talent and deepen the reform of the talent system and mechanism concerning salary distribution and the transformation of sci-tech achievements. In addition, we will make good use of systems such as the "negative list" for scientific research funding. We will step up efforts to turn talent into the primary driving force for innovation.

Southern Metropolis Daily:

We have noticed that in 2022, Heilongjiang introduced the 60 measures for talent revitalization in the new era. Could you please tell us what changes these policies have brought about in terms of attracting and retaining talent in Heilongjiang? What further steps will be taken to consolidate the talent foundation for high-quality development? Thank you.

Liang Huiling:

Thank you for your interest in talent revitalization. This question goes to Mr. Chen.

Chen Shaobo:

Thank you for your concern and support for talent revitalization in Heilongjiang. Talent is the key to Heilongjiang's revitalization. Therefore, we have consistently adhered to the principle that talent is our most valuable resource and have introduced a series of concrete measures.

First, we have advanced efforts to implement active and effective talent revitalization policies. As mentioned, we have formulated and implemented the 60 Measures for Talent Revitalization in Heilongjiang in the New Era, along with a series of supporting policies. These policies are active, open, and of high value and quality, leading to positive results. The governor noted that our overall talent pool is expanding, with a significant increase in the number of high-end talents introduced into the province. Moreover, while there was previously a net outflow of individuals with senior professional titles from universities, this trend reversed last year, resulting in a new influx of such talent. Additionally, both the number of college graduates opting to remain in the province and the number of those coming here for employment reached a five-year high, signaling a promising trend of talent returning to and staying in Heilongjiang.

Second, we have made every effort to build a platform for talent development that enables talented people to unleash their full potential. As we all know, Harbin Institute of Technology is one of the best universities for robotics. We have fully leveraged our professional expertise in this regard, and integrated various resources and production factors to give full support for the university to accelerate commercialization of their research findings in robotics. Substantial results have been achieved. I would like to take two companies here as an example. Harbin Boshi Automation Co. Ltd. has achieved breakthroughs in key technologies regarding robots' ability to work in front of a furnace, and Harbin Sagebot Intelligent Medical Equipment Co. LTD. has realized domestic production of surgical robots. Such accomplishments are not easy to achieve. Through these industries and platforms, we have attracted a large number of robotics professionals and other related professionals to the province. Next, we will make sustained efforts in creating suitable jobs and building favorable platforms to better help talented people settle here.

Third, we have intensified efforts to launch key talent programs. In order to support talent development with good faith and money, we have set up special funds financed by the provincial government to implement the "Leading Wild Goose" talent support plan, actively recruiting scientists and technologists who are able to organize and lead scientific research and who have extensive influence in relevant industries and fields, and giving them greater autonomy in their technical routes and their team recruitment and staffing. Meanwhile, we have vigorously implemented a training program for outstanding engineers, steadily promoted the "Skilled Personnel in Heilongjiang" initiative, and continued to carry out activities such as the "Heilongjiang Talent Week." We are accelerating the establishment of a supporting system for talent programs and projects covering all key sectors and areas. Last year, highly skilled personnel reached 825,000 in the province, accounting for 31.7% of the entire skilled workforce.

Fourth, we have jointly fostered a nurturing environment for talent in Heilongjiang province, satisfying the needs of local talent and attracting talented people from afar. We have continuously improved a systematic mechanism to ensure services and support for talent, carried out tiered accreditation for high-level talent, and issued Heilongjiang Talent Cards that offer 24 exclusive services in seven areas including children's education, medical examination and treatment, and transportation, relieving the worries of high-level talent. Meanwhile, we have attached great importance to the discovery, cultivation and use of various talented people, such as people with vocational skills and local talented people, making it common practice throughout the province to identify gifted individuals, value them, respect them and put them to good use.

I would like to take this opportunity to invite talented people from all over the world to join us in building and developing Heilongjiang. Here, you and the province will contribute to each other's success and create a better future together. Thank you.

Xinhua News Agency:

When it comes to Heilongjiang province, people will think of the Greater and Lesser Xing'an Mountains as well as some large rivers such as the Songhua River and the Wusuli River. The province boasts very rich ecological resources. My question is: Over the last few years, what is the situation with ecological and environmental protection in Heilongjiang? Thank you.

Liang Huiling:

Thank you for your attention to this matter. I will invite Mr. Yu to answer your question.

Yu Jian:

Indeed as you said, located in the northernmost and easternmost part of our motherland, Heilongjiang boasts a vast territory, beautiful mountains and rivers, a pleasant eco-environment and distinct seasons. The province remains as determined as ever to pursue green development that prioritizes environmental conservation and adheres to build ecological security shields in northern China. Our work mainly focuses on three aspects. First, we consider ecological resources as the strongest foundation for development. We have taken a holistic and systematic approach to the conservation and improvement of mountain, water, forest, farmland, grassland and desert ecosystems and strived to enhance the diversity, stability and sustainability of the ecosystem. The forest area in Heilongjiang hits 201,200 square kilometers; its wetland area reaches 51,400 square kilometers; and there are 46 national nature reserves in the province. All the numbers rank among the top in the country. Second, we take a beautiful environment as the most inclusive benefit to people's wellbeing. We have given greater priority to keeping our skies blue, waters clear and lands clean. The evaluation results of Heilongjiang's pollution prevention and control work have been among the best nationwide for many consecutive years, showing continued improvement in the environment. The province recorded good or excellent air quality on 94.2% of the days in 2023, 7.4 percentage points higher than the national average. The average annual concentration of PM2.5 stood at 25.5 micrograms per cubic meter, 4.5 micrograms lower than the national average. Our people now enjoy more blue skies, clearer waters, lush mountains, and a growing sense of happiness brought by a healthy environment. Third, we take ecological values as the most enduring competitive edge. Under the premise of protection, we have vigorously developed industries involving eco-tourism, non-timber forest-based economy , health and convalescence tourism, and forest food, so as to promote ecological product value conversion and to constantly translate ecological strengths into development strengths.

For the next step, we will further coordinate the structuring of ecological conditions, industries and residents' livelihood, going all out to build a green Heilongjiang to safeguard national ecological security and to strive to make positive contributions in advancing the Beautiful China Initiative. We will make every effort to safeguard green ecology, to advance pollution prevention and control work, to timely address environmental pollution cases that occur at people's doorsteps and to continue improving the environment, so that people in Heilongjiang will enjoy more blue skies, lush mountains, clear waters and clean air. To promote green development, we will make concerted efforts to cut carbon emissions, reduce pollution, expand green areas, and boost economic growth. We will also build and improve a green, low-carbon and circular economic system, and promote green transition in all respects of economic and social development. Moreover, we will focus on building green homes by advocating green ways of living including green travel, water and electricity conservation, and an "empty plate" campaign. We will also encourage low-carbon, green consumption, improve energy-saving and environmental protection facilities as well as build a modern Heilongjiang featuring a beautiful environment, a developed green economy, and low-carbon ways of production and living. Thank you!

Jinan Times APP:

Heilongjiang is located in one of the world's three major black soil belts, is known for its famous "Great Northern Wilderness" and is a major agricultural and grain-producing province. How does Heilongjiang plan to make new contributions to ensure China's food security and act as a solid foundation for achieving this purpose? Thank you.

Liang Huiling:

Thank you for your question. I will answer this question. The focus of our work is in four aspects.

First, we will improve the comprehensive production capacity of grain. We will implement the plan to increase grain production by 10 million tons, focusing on the integrated utilization of fertile farmland, high-quality seeds and machinery, and useful measures and mechanisms. We will systematically integrate policies, engineering and agricultural measures to stabilize the sown area of grain and focus on increasing per unit yield in large area. By 2026, the comprehensive grain production capacity in the province will reach 180 billion jin (90 billion kilograms).

Second, we will strengthen the protection and utilization of black soil. In terms of arable land, black soil is extremely scarce and invaluable. We will adhere to four specific approaches, increasing efforts to protect black soil, and ensuring that its area does not decrease and that its quality improves. First, we will strengthen engineering measures to prioritize the construction of high-standard farmland on black soil. Second, we will reduce the use of chemical fertilizers and pesticides, return plant stalks to fields, apply organic fertilizer, and substitute with biological agents, with the aim to increase organic matter content of soil. Third, we will highlight technological empowerment, relying on biotechnology and digital technology to improve the management and utilization of black soil. Fourth, we will change backward production methods, promote conservation tillage across large areas, and strictly crack down on unauthorized occupation and destruction of farmland, so as to achieve sustainable utilization of black soil.

Third, we will empower agriculture with science and technology. We give greater prominence to the development of agricultural sci-tech, with our contribution rate of agricultural technological progress ranking among the top in the country. We will vigorously implement the revitalization of the seed industry, establish national bases for quality soybean seed breeding and japonica rice seed production, and strengthen and expand the core of the seed industry. We will build a national pioneering area for large-scale, high-powered, high-end and intelligent agricultural machinery and equipment, accelerate the upgrading and replacement of agricultural machinery, and be the first to achieve the modernization of agricultural material and equipment. Supported by the national key laboratory for smart farming technologies and systems, we will expand the application scenarios of large-scale smart agriculture, and aim to establish 20 unmanned smart farms, each covering an area of 10,000 mu, by 2025.

Fourth, we will create a pioneering region in adopting an all-encompassing approach to food. Leveraging our advantageous location in the world's prime livestock belt, we will vigorously develop modern animal husbandry. We will establish the largest high-end infant formula production base in the country, with the aim of creating a crucial strategic guarantee base for meat, eggs and dairy products at the national level. Additionally, we will harness the advantages of undergrowth resources to promote the recognition of the "nine delicacies and 18 products," such as pine nuts, black fungus and Lonicera edulis fruit, thereby creating a supply hub for eco-friendly forest food products. Moreover, we will capitalize on the province's advantages in rivers and lakes by expanding the supply of premium and high-quality fish, including 26 species of freshwater fish, with the aim of establishing a base for the supply of high-quality cold-water fish. Thank you.

21st Century Business Herald:

As a major agricultural province, the construction of livable, prosperous, harmonious and beautiful rural areas in Heilongjiang province is closely related to the well-being and sense of achievement of rural people. What measures has Heilongjiang taken to learn from and apply the experience of the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project in promoting comprehensive rural revitalization? And what achievements have been made? Thank you. 

Liang Huiling:

Thank you for your interest in this matter. I'd like to invite Mr. Xu to answer these questions.

Xu Xiangguo:

Thank you for your questions. Over the past few years, we have been diligently promoting the comprehensive revitalization of rural areas in line with the specific conditions of Heilongjiang province. We have placed significant emphasis on respecting the will of the people and have implemented concrete measures in the following key areas:

First, we organized study visits to Zhejiang province and hosted thematic seminars. Simultaneously, we held a series of on-site meetings to promote progress, and enable officials at all levels to transform their learning into practical work efficiency through hands-on experience. Through a category-based, region-specific approach, we advanced village planning and constructed five types of beautiful and livable villages, including ecologically friendly villages, well-preserved ancient villages, and aesthetically pleasing and livable villages.

Second, we have implemented a five-year living environment improvement campaign, promoting initiatives such as domestic sewage treatment, household garbage management and enhancements to the appearance of villages. We have also introduced innovative residential construction projects, resulting in 95% of villages across the province becoming cleaner, tidier and more orderly.

Third, we have implemented the initiative to create 100 exquisite villages, 1,000 demonstration villages, and 10,000 beautiful villages. We aim to cultivate distinctive industries, improve public services, and drive the overall creation and enhancement of 9,829 villages (state farms) across the entire province. 

Fourth, we promulgated the regulations of Heilongjiang province on the promotion of rural revitalization and formulated and implemented guidelines for the overall revitalization of rural areas. We established and improved mechanisms for integrated urban-rural management and protection, public participation, and performance evaluation and incentives.

You asked about specific achievements in comprehensive rural revitalization. I think that they can be summarized using three words to provide you all with an introduction.

The first word is "beauty," which describes the picturesque village landscapes. We have focused on creating 100 exquisite villages at the provincial level and 1,000 demonstration villages at the municipal level, promoting the construction of livable, business-friendly, harmonious and beautiful rural areas across the province. Currently, the 54 China beautiful leisure villages and 87 pilot programs for improving residential environment across Heilongjiang have together created a beautiful new rural landscape. As many netizens have commented, "Rural life here is very soothing and appealing."

The second word is "harmony," which signifies the harmonious spirit of the countryside. Our rural areas are tranquil, and local people are pure and unpretentious, just as the lyrics say, "In harmony, neighbors and kin, with unity found in young and old alike." There, we can see and feel the mutual assistance among villagers, who live together as members of one family. We can also feel their sincerity and enthusiasm towards guests. At present, across the province, there are 728 national demonstration villages and towns for rural governance, with 5,212 exemplary villages promoting interconnected development. 

The third word is "happiness," which reflects the joy of the farmers. In the past, people carved out a living in the vast wilderness, setting up shacks, living in cellars. Through their hard work, they turned the once desolate "Great Northern Wilderness" into the now prosperous "Great Northern Granary." Now, leveraging ecological advantages and snow and ice resources, farmers actively engage in new industries and business forms, such as agrarian cultural exhibitions, leisure fruit picking, and forest wellness retreats. They have fertile soil for entrepreneurship, ample job opportunities, and with increased incomes, their wallets have grown fuller. Wealth springs from the chernozem soil, and happiness abounds in this great natural oxygen bar. That's all from me. Thank you.

Red Star News:

We have observed that in the past two years, the number of enterprises investing in Heilongjiang has been increasing, which, to some extent, reflects changes in the local business environment. What has Heilongjiang done to improve the business environment, and what other measures will be taken? Thank you.

Liang Huiling:

Thank you for your attention to this matter. I'll invite Mr. Yu Jian to answer this question.

Yu Jian:

Thank you for your question. As we all know, Harbin's winter sports tourism has recently become a sensation. With proactive service support from government departments, commitments upheld by businesses, and warm hospitality from the locals, Heilongjiang has embraced a "pamper the guests" approach. This has garnered extensive praise and serves as a testament to the ongoing improvement of our province's business environment. As Governor Liang Huiling just said, last year saw a 14% increase in newly registered market entities, a 13.8% rise in newly signed investment projects, and a 68.5% growth in newly established foreign-invested enterprises compared to the previous year.

In our practical work, we focused on the following four aspects. First, we established a mechanism for people to learn from each other and strove for excellence. We benchmarked against advanced regions and mobilized the entire province's efforts to carry out targeted campaigns to optimize the business environment. Through monthly scheduling, quarterly reporting, semi-annual reviews and annual assessments, all local departments have strived for excellence, thus cultivating a favorable atmosphere and inter-level synergy centered on improving the business environment.

Second, we worked with sincerity and passion. By soliciting enterprises' demands and providing government services to them, we opened "fast lanes" and "green channels" for problem-solving. Across the province, 30,000 officials have partnered with 522,000 enterprises, resolving 17,800 practical problems. We have implemented inclusive and prudent regulation and law enforcement across the board, allowing businesses ample room to make and learn from mistakes. More than 310,000 such cases have been handled, demonstrating compassion in our law enforcement. A series of pro-business relief policies were introduced, and the timely and accurate delivery of these policies via the Addressing Problems Across the Province app has ensured that these enterprises can leverage our policies to the fullest extent.

Third, we prioritized immediate action and excellence. With the development of digital governance, we have optimized our administrative service model, advancing multiple initiatives for efficiently accomplishing tasks. Nationally, Heilongjiang leads the way in innovating and demonstrating a focused approach to "retirement procedures," reducing the processing time from 30 working days to just 10 minutes, marking a historic leap. We have introduced more than 500 convenient applications related to public security, public affairs, human resources and social security, healthcare, and transportation, significantly cutting down both the steps and time required for public services.

Fourth, we honored our commitments and tried our best to meet people's demands. We improved the credit system and continued a special campaign to address the issue of "new officials ignoring old debts," clearing up overdue payments to private enterprises. Any actions that damage the government's credibility are met with serious investigation and consequences. The 12345 public service hotline serves as a "central customer service hub", with government departments swiftly responding to and addressing concerns of citizens and market entities. In this way, we ensure that the pressing difficulties and problems that concern business entities and people are resolved.

We are well aware that there is always room for improving the business environment. We will further cultivate a world-class, market-oriented, law-based, and internationalized business environment, making Heilongjiang a favored destination for investment, stimulating the vitality of business entities, and promoting high-quality development and sustainable revitalization. We welcome more companies to invest and do business in Heilongjiang. I believe that through our efforts, the business environment will continue to improve. Thank you.

CNR:

It was just mentioned that Harbin experienced a surge in popularity around this year's Spring Festival holiday, with its winter sports tourism becoming a cultural phenomenon. How will Heilongjiang maintain the momentum of its ice and snow tourism and further amplify the spillover effect? Thank you.

Liang Huiling:

Thank you for your question. During last year's snow and ice season, Heilongjiang launched a "pamper the guests" approach, sparking enthusiasm among visitors. This has led to the flourishing of tourism and related industries, greatly boosting the morale of local officials and residents, and enhancing their confidence and determination to revitalize and develop the region. Moving forward, we will redouble our efforts to enrich our offerings and enhance our services, ensuring that visitors to Heilongjiang are happy, comfortable, and at ease.

First, we will create new growth drivers for the ice and snow economy. Key scenic spots such as Harbin Ice and Snow World, Yabuli Ski Resort and Xuexiang village will be upgraded. The amount of ice at the Harbin Ice and Snow World this year exceeded 200,000 cubic meters, which is nearly three times as much as last year. If you come to Harbin again this winter, you will see a larger, more cultured and more international ice and snow kingdom. We are making preparations for the 9th Asian Winter Games to a high quality, building the China-Shanghai Cooperation Organization (SCO) Ice and Snow Sports Demonstration Zone to a high standard, and creating five centers for ice and snow sports events, talent, industry, culture and cooperation . We will promote innovative development of winter sports equipment such as ice skates, snowboards and ski lifts, and build the world's largest new energy vehicle extreme cold-weather testing base in Heihe and Mohe. We will expedite the development of the entire industry chain of ice and snow sports, ice and snow culture, ice and snow equipment, and ice and snow tourism, build a leading ice and snow economic area, and turn "cold" resources into "hot" economy .

Second, we will develop high-quality, integrated and all-season tourism. We will give full play to the advantages of different sceneries in the four seasons and rich geography, and strive to create special projects such as forest tourism, wetland tourism, boundary river tourism and border tourism, and accelerate the cultivation of new tourism formats such as camping, self-drive tours, travel photography and study, and elderly-care and health tourism. We will strive to transform the characteristic cultural tourism industry from "one place and one season" to "all regions and all seasons." We will strengthen the construction of tourism infrastructure supporting facilities, build star-rated homestays across the province, and a multi-faceted tourism transportation system, accelerate the popularization and promotion of smart tourism, and comprehensively improve tourist satisfaction. We will continue to regulate the order of the tourism market, make good use of advance compensation, ensure that complaints are handled in a timely fashion, and effectively protect the rights and interests of tourists.

Third, we will expand and amplify spillover effects of the tourism industry. We will promote the integrated development of tourism and culture, sports, health care, catering, sports equipment and other primary, secondary and tertiary industries, so that Heilongjiang's history and culture, music and performing arts, local delicacies, and sports events can provide tourists with new experiences, and ensure the local tourism infrastructure and thermal clothes and hats, green food, and special cultural and creative products offer consumers across the country with more choices. We will promote good practices and models of ice and snow tourism, strive to create a first-class business environment, and attract more companies to invest and develop in Heilongjiang. We will see that positive work styles in ice and snow tourism continue to thrive, and take solid, pragmatic and resolute steps to ensure that officials become more capable of serving the people and pursuing development. Thank you.

China Daily:

Heilongjiang is located between 43 degrees and 53 degrees north latitude, in the "Golden Belt" for corn and livestock. We have noticed that Heilongjiang has created distinctive brands in recent years, such as Black Soil Premium Products and Forest Delicacies and Specialties . What has been the result? What is the next step in leveraging the natural endowments to further promote the high-quality development of the processing of agricultural products? Thank you.

Liang Huiling:

Thank you for your interest in this work. I would like to invite Mr. Xu to answer these questions.

Xu Xiangguo:

Thank you for your questions. The two brands of Black Soil Premium Products and Forest Delicacies and Specialties are not only representatives of Heilongjiang's regional agricultural products, but also a green label for agricultural products in the province. Currently, a total of 221 offline stores in 63 cities across the country sell those two brands, with online and offline sales reaching 7.3 billion yuan since 2023. With the rising popularity of Harbin last year, local specialties such as chicken stewed with mushrooms, iron pot stewed goose, wild blueberries, black fungus, hazelnuts, lion's mane mushrooms (Hericium erinaceus) and cranberries, have also attracted the attention of people across the country.

In terms of further promoting the high-quality development of the agricultural product processing industry, we are mainly focused on the principle of "grain planting to the forefront and produce to follow (This means that grain planting should be the source, and produce should be found on the dining table, which requires us to properly deal with the relationship between planting and marketing)" and "agriculture to the forefront and industry to follow (This requires us to integrate the primary and secondary industries and realize intensive processing of agricultural products)", solidly advancing the three-year action plan for the high-quality development of the agricultural product processing industry. Our work is focused on four main aspects:

First, we will genuinely cultivate business entities. We will give full play to the demonstration and leading role of state-owned enterprises (SOEs) such as Beidahuang Agricultural Reclamation Group and leading enterprises in the province such as Feihe Dairy , and build larger and stronger demonstration parks as platform carriers. At the same time, we will expedite the cultivation of a group of small and medium-sized enterprises (SMEs) featuring fast development speed, strong innovation ability, high-quality products and good economic returns, so as to form a development pattern in which large enterprises serve as the backbone of the industry and numerous SMEs are spread across the province.

Second, we will carefully extend the processing chain. As Ms. Liang explained about the protection of black soil, Heilongjiang's certified planting area of green organic food is 94.59 million mu. This is our greatest confidence in developing green agriculture. We will focus on the standardized production of raw materials on one hand and green food processing on the other, and transform and upgrade the traditional processing industry through technological improvements. At the same time, we must strengthen the empowerment of technological innovation to develop and expand our emerging processing industries, develop high-end and refined products with strong market competitiveness, further extend the industrial chain, strengthen the supply chain, and enhance the value chain.

Third, we will closely focus on food quality and safety. We will strictly adhere to the bottom line of product quality, establish a standardized, institutionalized and regular mechanism, and implement quality supervision throughout the entire chain, link and life cycle, so that the quality and safety of agricultural products can be traced throughout the entire process, and the approval rate of provincial agricultural product quality and safety routine monitoring can be stabilized at above 98%. We will truly ensure food safety for consumers "from field to tongue" and "from farm to table."

Fourth, we will wholeheartedly build high-quality brands. This year, whether we are carrying out brand promotional events in first-tier cities, brand culture empowerment campaigns, building themed restaurants, upgrading premium supermarkets, or assisting farmers with livestreaming platforms, we will serve the best dishes and the best products, so that more people can enjoy delicious, fresh, safe and healthy food. Thank you.

Heilongjiang Radio and Television:

The 13th Heilongjiang Provincial Congress of the CPC in 2022 proposed the development of the province in six aspects, with "Quality Longjiang" taking the priority. How does Heilongjiang plan to promote and advance this initiative? What are the key directions? Thank you.

Chen Shaobo:

Thank you for your attention and support with the development of "Quality Longjiang." Heilongjiang has clearly stated its commitment to vigorously building a "four-in-one" quality Longjiang by integrating high-level standards, quality, brands and reputation. We are focusing on the following aspects:

First, we adhere to development that is led by standards. As everyone knows, black soil and ice and snow tourism are Heilongjiang's merits. We have taken the lead nationally in establishing a local standard system for "black soil fertile plow layer construction" and an ice and snow industrial standard system. The Standardization Administration has released 11 national standards for ice and snow sports, with our province taking the leading role in their formulation. Last year, there were 21 new national-level standardization pilot demonstration projects in our province, with 15 standards incorporated into the national enterprise standards "leading" list and eight standards filling international gaps. In addition, China Feihe Limited led the formulation and implementation of two international association standards.

Second, we work to strengthen quality management. We have specifically formulated a set of 60 indicators for high-quality development tailored to the reality of Heilongjiang. We have vigorously implemented projects to improve the quality of industry and to enhance the capacity of quality infrastructure, aiming to comprehensively improve product engineering and service quality. Our food safety work has been rated A-level for six consecutive years by the Food Safety Commission of the State Council in their evaluation and assessment. Last year, two projects won the Luban Prize and the Dayu Prize, respectively. Two individuals and two teams were awarded the National Engineer Awards.

Third, we emphasize brand-driven development. We have vigorously carried out brand building activities, earnestly promoted the transformation and upgrading of "time-honored brands," comprehensively cultivated brands across four fields and extensively fostered "new brands," making every effort to build well-known brands that represent Heilongjiang's characteristics and reputation. To be specific, "the four fields" refers to crude oil, raw coal, grain and timber, all of which represent competitive products from Heilongjiang. Now, "time-honored brand" enterprises, such as China First Heavy Industries, Harbin Electric Corporation, Daqing Oil Field and Beidahuang Group, have been reinvigorated, with 35 companies being listed as China Time-Honored Brands. We have 168 national Geographical Indication (GI) products such as Wuchang rice. We will continue to enhance brand building, allowing more "black soil superior products" to reach the dining table of Chinese people and empowering more "flagship products" from "Longjiang manufacturing" to contribute to the development of a strong country.

Fourth, we step up credit support. We are vigorously improving the social credit system, coordinating the building of government integrity, business integrity, social integrity and judicial credibility. In order to effectively solve the financing problems of small and medium-sized enterprises, we have strived to build a first-class financing credit information platform. Since the platform's official launch this March, 129 various financial institutions have joined in just over a month, releasing 78 financial products and issuing a total of 7.5 billion yuan in loans. This year, Heilongjiang's ice and snow tourism has become a trending topic on the internet, allowing everyone to feel the sincerity and honesty of the Heilongjiang people. Honesty and trustworthiness have become a bright business card in the practice of high-quality development in Heilongjiang. Thank you.

Xie Yingjun:

The last question.

China News Service:

A few days ago, a themed celebration was held in Harbin to mark the countdown of 300 days to the Asian Winter Games. May I ask, what kind of Asian Winter Games will Harbin present to everyone? Thank you.

Liang Huiling:

Thank you for your attention to the Asian Winter Games. The Ninth Asian Winter Games will be held in Harbin from Feb. 7 to 14, 2025. Following the Beijing Winter Olympics, this will be another comprehensive and international winter sports event hosted by China. Heilongjiang has unique ice and snow resources and a solid foundation in ice and snow sports. We will leverage the advantages of being a competitive ice and snow sports province and mobilize the entire province to make this Asian Winter Games a sports and cultural event that showcases Asian style, Chinese ethos, Longjiang characteristics and the charm of this ice city.

First, we will abide by the principle of "a streamlined event" in organizing the games. Harbin is a two Asian Winter Games city, with the first-time hosting being the 3rd Asian Winter Games in 1996. Thus, Harbin has a certain foundation for venue facilities. We will coordinate the needs of the games and post-game utilization, systematically and properly use existing resources, avoid large-scale demolition and construction and utilize the existing facilities for renovation in the implementation of "two competition areas, nine venues, and 37 villages."

Second, we will stick to the principle of "green development" in organizing the games. We will integrate the concept of green development throughout the entire process of the Asian Winter Games. Venue renovations will use energy-saving and environmentally-friendly building materials as well as green, low-carbon construction techniques to ensure environmental protection, green technology and eco-friendly furnishings. We will widely use clean energy, environmentally-friendly products and green, safe food in all aspects of the games, such as using new energy vehicles for torch relay and game services as well as using biodegradable materials for all tableware. The athlete village, technical officials' village and media village will also be heated by clean energy.

Third, we will adhere to the principle of "smartness" in organizing the games. We will apply information technology, intelligent services, biometric identification, artificial intelligence and other technologies in training, event management and security services, providing scientific and technological support for the events and service guarantees. We will comprehensively upgrade the network of venues, transportation hubs, high-speed rail, scenic spots and main hotels. For example, 5G-A technology will be used in venues to provide peak downlink speeds of up to ten gigabits and uplink speeds of up to one gigabit, providing a smoother network experience for everyone.

"Dream of Winter, Love among Asia." The mascots of this Asian Winter Games, "Binbin" and "Nini," are two lovely little Manchurian tigers, symbolizing "Harbin welcomes you." We sincerely look forward to meeting friends from all walks of life in this beautiful ice city and to share the grandeur of the Asian Winter Games. Thank you all!

Xie Yingjun:

Thank you Governor Liang and all the presenters for your introductions. Thank you to all the journalists for your participation. Today's press conference will conclude here. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Cui Can, Wang Wei, Li Xiao, Liu Caiyi, Liu Sitong, Zhang Tingting, Liu Qiang, Yan Bin, Ma Yujia, Mi Xingang, Yuan Fang, Li Huiru, David Ball, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Li Lecheng, deputy secretary of the Communist Party of China (CPC) Liaoning Provincial Committee and governor of Liaoning province

Mr. Wang Jian, a member of the Standing Committee of the CPC Liaoning Provincial Committee and executive vice governor of Liaoning province

Mr. Zhang Lilin, a member of the Standing Committee of the CPC Liaoning Provincial Committee and vice governor of Liaoning province

Mr. Gao Tao, vice governor of Liaoning province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 23, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 11th press conference in the series "Promoting High-Quality Development." Today, we have invited Mr. Li Lecheng, deputy secretary of the Communist Party of China (CPC) Liaoning Provincial Committee and governor of Liaoning province, to brief you on writing a new chapter in Liaoning's full revitalization with greater responsibilities and efforts, and then answer your questions. Also present today are Mr. Wang Jian, a member of the Standing Committee of the CPC Liaoning Provincial Committee and executive vice governor of Liaoning province; Mr. Zhang Lilin, a member of the Standing Committee of the CPC Liaoning Provincial Committee and vice governor of Liaoning province; and Mr. Gao Tao, vice governor of Liaoning province.

Now, I'll give the floor to Mr. Li for his introduction.

Li Lecheng:

Ladies and gentlemen, good morning. First, on behalf of the CPC Liaoning Provincial Committee, the Provincial People's Government and the people of Liaoning province, I would like to express my heartfelt gratitude to you for your long-term interest in and strong support for the full revitalization of Liaoning.

General Secretary Xi Jinping has always attached great importance to the revitalization and development of Liaoning. He has visited the province multiple times to inspect progress, and presided over the symposiums on promoting the revitalization of Northeast China three times. This has helped outline a comprehensive revitalization strategy for Northeast China and Liaoning. We remain committed to his guidance, and fully, accurately and comprehensively implement the new development philosophy. We are focused on high-quality development and establishing a new development pattern as our primary strategic task. We firmly uphold our political responsibilities in safeguarding national defense, food, ecological, energy and industrial security. We are capitalizing on the crucial three-year period following the 14th Five-Year (2021-2025) Plan to vigorously drive the three-year action for full revitalization and new breakthroughs. In 2023, Liaoning's GDP grew by 5.3%, surpassing the national growth rate for the first time in a decade and reaching a total economic output of 3 trillion yuan. In the first quarter of this year, Liaoning's socioeconomic development continued its positive trend from the previous year, with the growth rate increasing to 5.4%, demonstrating enhanced resilience, vitality and creativity in high-quality development.

To thoroughly implement the strategic decisions and deployments of the Party Central Committee and accelerate the promotion of high-quality development, the CPC Liaoning Provincial Committee has set the goal of establishing "six areas" in the new era. Through relentless effort, we aim to transform Liaoning into a major supporting area for national strategies, a key source of technological innovation, a competitive hub for advanced manufacturing industries, a pioneer in the development of modern agriculture, a demonstration area for the integrated development of high-quality culture, sports and tourism, and a core region for opening-up and cooperation in Northeast Asia. Standing at a new historical starting point, we are dedicated to making these plans a practical path to enhance high-quality development, reviving the esteemed legacy of the "eldest son" of the People's Republic of China, and propeling the old industrial base to greater heights.

First, we are courageously leading in the development of new quality productive forces. This year, at the Shenyang sub-venue of the Spring Festival TV Gala, representatives of Liaoning's industrial and technological sectors, including aircraft carriers, fighter jets, industrial robots, and chips, were showcased one by one. They demonstrated Liaoning's industrial strength and technological allure to the nation. Leveraging our scientific and educational resources, we are accelerating the establishment of a regional science and technology innovation center with national influence. We are focused on four trillion-yuan-level industrial bases, in advanced equipment manufacturing, petrochemical and fine chemicals, new metallurgical materials, and high-quality specialty consumer goods industries, and continue making structural adjustments. We have been working on "three major tasks": transforming and upgrading "time-honored brands," deeply developing "original brands" and nurturing and enhancing "new brands," to build a modern industrial system at a high level. We strive to turn sci-tech innovation from the "greatest variable" into the "greatest increase," promoting high-quality development.

Second, we aim to make breakthroughs in deepening reform and opening-up. We regard optimizing the business environment as the primary project to drive high-quality development and comprehensively deepen reforms. With the improving business environment in Liaoning, state-owned enterprises, private enterprises and foreign enterprises are actively establishing themselves in the province. Last year, the total investment in key central-local cooperation projects in Liaoning was 1.3 trillion yuan. The Huajin Aramco project, witnessed by the heads of state of China and Saudi Arabia, and the accelerated construction of the Xudapu Nuclear Power Plant, jointly witnessed by the heads of state of China and Russia, exemplify our efforts. Today, Liaoning's reform and opening-up will continue unabated. We welcome guests from all corners with more substantial strategies and sincere sentiments, ensuring that all business entities and the general public can truly feel that "Northeast China has immense potential for growth."

Third, we are strengthening our advantages by adhering to green development. We are steadfastly fighting the battle against pollution, defending ecological restoration and engaging in the prolonged battle for low-carbon transformation, while coordinating the management of mountain, water, forest, farmland, grassland and desert ecosystems to make Liaoning's comprehensive ecological landscape even more splendid. The green, low-carbon and intelligent transformation of traditional industries is in full swing. This year, the proportion of installed non-fossil energy capacity will reach 50%. In the near future, clean energy will enter many more households all across Liaoning.

Fourth, we are actively working to enhance people's livelihoods and well-being. Last year, Liaoning ranked first nationally in the scale of old residential compound renovations. In the past three years, the number of pocket parks built in Liaoning ranked first in the country. We ensure that people experience small, tangible joys; we focus closely on the old and the young, and will progressively reduce the costs of education, healthcare and pensions for our citizens, enabling children to grow up healthy and the elderly to live long, healthy lives. Our cities are connected by high-speed rail, and our counties by expressways. On weekends, everyone can explore Liaoning's beauty. With the CBA playoffs underway, basketball fans can also come to Liaoning to experience the excitement of these events. In short, we treat "small matters of people's livelihoods" as "important matters," planning more projects to improve the livelihoods and well-being of the people in Liaoning, laying a solid foundation for their happiness and well-being.

That concludes my introduction. Thank you.

Chen Wenjun:

Thank you, Mr. Li. Now, the floor is open for questions. Please state the name of the media outlet you work for before asking your questions.

Economic Daily:

As Mr. Li just introduced, Liaoning's economy saw a growth rate of 5.3% last year, marking the first time in a decade that it exceeded the national average. What factors do you believe are driving this trend? And do you think Liaoning can sustain this upward trajectory?

Li Lecheng:

Thank you for your questions. Liaoning's achievements are attributed to the strong leadership and guidance of the CPC Central Committee with Comrade Xi Jinping at its core, as well as the robust participation and support from all sectors of society. The driving force behind the growth is also thanks to the implementation of the new round of comprehensive support policies for the full revitalization of Northeast China by the CPC Central Committee. We have implemented the decisions and deployments of the CPC Central Committee, and have precisely implemented a package of supporting policies such as the Guideline on Policies and Measures to Further Promote a New Breakthrough in the Full Revitalization of Northeast China in the New Era issued by the CPC Central Committee and the State Council. We have introduced a series of policies and measures in a timely manner to stabilize the economy and reinforce growth, effectively translating policy dividends into tangible results for Liaoning's revitalization and development. The growth has also benefited from Liaoning's unique comparative advantages. Liaoning has a solid foundation across its primary, secondary and tertiary sectors, particularly excelling in its comprehensive industrial system, which leads the way nationally. Liaoning covers 40 of the 41 major industrial categories in the national economy, 197 of the 207 medium-sized industrial categories, and 519 of the 666 small industrial categories. In Liaoning, a constellation of "major national equipment" has emerged, including the debuts of the first domestically-built aircraft carrier and carrier-based aircraft. Robotics, intelligent equipment and aviation equipment hold crucial positions nationwide. Liaoning has significant advantages in terms of its location, with well-developed transportation facilities, ranking high in terms of railway and road network densities, and possessing six important ports including Dalian Port, Yingkou Port and Jinzhou Port, serving as key nodes for the Belt and Road Initiative (BRI) and as key gateways connecting the Eurasian land bridge. Liaoning boasts rich scientific and educational resources, with 114 higher education institutions. The concentration of talent clusters provides an endless source of momentum for scientific and technological innovation throughout the province. Furthermore, the growth is driven by the increasingly entrepreneurial spirit among both officials and the general public across the province. We adhere to the concepts of having an open mind, staying true to principles while exploring innovations, and prioritizing business environment optimization as a key and critical battle. Starting from addressing the "small issues" that trouble and worry enterprises and the public, we are advancing institutional innovation. We have refunded taxes and fees totaling over 140 billion yuan, benefiting 11 million business entities, and continuously lowering production and operating costs for enterprises. The current situation in Liaoning is characterized by harmonious governance, shared aspirations from all levels, and forward-thinking. Across the province, there has been a noticeable surge in the flow of people, goods and capital. The people's enthusiasm, initiative and creativity have been unleashed, fostering enduring confidence and strength for comprehensive revitalization. Liaoning will undoubtedly continue its upward trend, forging a path toward high-quality development. Thank you.

China National Radio:

As we know, Liaoning is an important industrial base for the country. What considerations and arrangements does Liaoning have for developing new quality productive forces in the future?

Li Lecheng:

Thank you for your question. It's an excellent question. As I mentioned in my introduction, Liaoning is striving to take the lead in developing new quality productive forces. I will now elaborate on this aspect.

To foster new quality productive forces, we will reinforce the role of sci-tech innovation in turbocharging growth. This includes advancing the development of key laboratory clusters and basic science centers, establishing Liaoning laboratories, and promoting pre-research projects for major scientific equipment to strengthen the foundation for sci-tech innovation. We are facilitating closer collaboration among tech companies, universities and research institutions, enhancing the integration of research and industry. We are addressing challenging issues in critical areas. For example, Ansteel has developed a novel steel for extreme cold marine equipment, with three products debuting globally and six domestically, providing material support for major marine engineering projects such as the world's first ultra-deep-water drilling platform, "Blue Whale 1." We will continue striving to achieve more original and disruptive sci-tech innovations, and contributing Liaoning's strength to safeguarding the nation's industrial security.

In the pursuit of developing new quality productive forces, we will prioritize the development of the real economy. When discussing Liaoning's industrial landscape, the first thing that comes to mind might be the variety of major national achievements, such as the inaugural domestically built aircraft carrier, carrier-based aircraft, wind tunnel compressors and shield tunneling machines. Additionally, for those of us who use domestically produced smartphones, there is a high likelihood that the motor in your phone's camera originates from Liaoning. Currently, Liaoning holds the top position domestically and ranks second globally for this particular product. Aside from manufacturing numerous major national equipment, Liaoning has also cultivated many "hidden champions." We remain steadfast in our commitment to advancing the high-end upgrading of traditional industries and the industrialization of cutting-edge technologies, with a focus on areas such as digitalization and sustainability, to comprehensively boost our industrial competitiveness.

As part of our efforts to develop new quality productive forces, we will comprehensively deepen reform. Through a reform-oriented approach, we aim to efficiently gather innovative factors and conduct major technological innovation verification and demonstration applications. This will forge a seamless link between innovation and practical application, ensuring that more research outcomes can transition from theoretical concepts to tangible market products. For instance, we support large centrally administered state-owned enterprises (SOEs) in addressing emission reduction and carbon reduction technologies through open competition. This approach has resulted in a 1.9% reduction in comprehensive energy consumption per metric ton of steel, a 43.6% decrease in labor costs, and savings of millions of yuan in foreign software licensing fees. Furthermore, we will persist in our efforts to adjust and optimize the state-owned economy, empowering more promising entities to play pivotal roles in the economic landscape by confronting challenges head-on and overcoming obstacles effectively.

That is all from me. Thank you.

Beijing Youth Daily:

My question is regarding talent. In 2023, we saw Liaoning reverse the trend of 11 consecutive years of continuous net outflow of its population, achieving a net inflow of 86,000 people. What efforts has Liaoning made in attracting and retaining talent? Could you also please share the initiatives and strategies Liaoning is implementing to further retain talent? Thank you.

Li Lecheng:

Thank you for your question. I would like to invite Mr. Zhang to answer this question.

Zhang Lilin:

Thank you for your keen observation of the full revitalization of Liaoning province, especially the development and changes of Liaoning's talent work. You mentioned the changes last year, which have not been seen in 11 years. The net population inflow was 86,000. Although this is not a huge number of people, it demonstrates a qualitative change. This change signifies our upward economic development and industrial direction. It is a concentrated reflection of our improved environment and stronger economic vitality, which fully demonstrates that the outside world's expectations of Liaoning have undergone major changes.

Talent is the primary resource. Talent is a key element in Liaoning's revitalization. In recent years, we have taken the three-year action plan for comprehensive revitalization aimed at making new breakthroughs as our general guide, fully promoting high-quality development, further stimulating innovation vitality, creating more openings, and expanding the talent pool. We have accelerated the creation of an upgraded business environment as a solid leverage, striving to create a market-oriented, law-based and international business environment to attract more investment, introduce more enterprises, and create a more attractive platform for talents. In terms of practical measures, we continue to promote the optimization of talent introduction policies. We have taken the "creating a province strong in talent" strategy as one of the 10 new breakthroughs and 50 key tasks. We continue to prioritize the development of talents, optimize the talent environment and enhance the attractiveness for talents. Last year, six new academicians to the Chinese Academy of Sciences (CAS) and the Chinese Academy of Engineering (CAE), were employed in Liaoning, bringing the provincial total to 61. Meanwhile, 4,387 full-time doctoral degree holders and personnel with senior professional titles at home and abroad were introduced, a year-on-year increase of 77%; and 401,000 college graduates were employed, a year-on-year increase of 20.8. This provided solid support in terms of talent for achieving the first phased victory in the three-year action plan of comprehensive revitalization for new breakthroughs.

We will set the goal of making Liaoning a popular choice for talent, and strive to create an international talent destination focused on Northeast Asia by attracting talented professionals, retaining them and putting them to good use. We will innovatively implement the Liaoning Talent Initiative, continue efforts to attract graduate students to remain in or come to live and work in Liaoning, and continue to deepen the reform of the talent development system and mechanism. We will ensure the implementation of policies such as providing rewards and subsidies, housing, schooling and medical services, to make Liaoning a more affectionate place so that more of talented people can settle down, feel at ease and have a promising career here.

That is all from me. Thank you.

Science and Technology Daily:

As you mentioned, Liaoning province has more than 110 universities and research institutes, as well as 61 academicians, and has abundant sci-tech resources. How will Liaoning next promote the transformation of these premium scientific and educational resources into advantages for innovative development? Thank you.

Gao Tao:

That is a very good question. The key to Liaoning's high-quality development lies in innovation-driven development. We will set the goal of creating a hub for major technological innovation, focus on creating a regional technological innovation center with national reach, and adhere to attaching importance to both sci-tech innovation and institutional innovation. We will develop new quality productive forces according to local conditions, strive to open up new areas and new arenas, and build a modern industrial system with Liaoning characteristics, as part of the efforts to transform the advantages of our scientific and educational resources into a winning force for revitalization and development. The focus will be on the following aspects:

First, we will coordinate the construction of the innovation system, and consolidate the "beams and pillars" of sci-tech innovation. We will promote the construction of Shenyang Hunnan Science and Technology City, Yinggeshi Science City in Dalian and Shenyang-Fushun Scientific and Technological Innovation Park to create a regional sci-tech innovation powerhouse. We will systematically deploy strategic sci-tech strength and strive to launch more national-level innovation platforms in Liaoning. The province has received approval to build 11 new national key laboratories. We have also established and operated four Liaoning laboratories with new systems and mechanisms to explore new models for the construction of major innovation platforms. This year, we will focus on key industrial clusters to build 20 provincial key laboratory clusters to further promote the in-depth integration of technological and industrial innovation.

Second, we will promote high-level scientific and technological self-reliance, and strengthen research on core technologies in key fields. We support leading companies to take the lead in establishing innovation consortia and implement major sci-tech projects focusing on high-end computer-numerical-control machine tools, energy storage and hydrogen energy industry. We will make breakthroughs starting from zero in a number of major scientific issues in key areas such as chemistry, materials and energy. We will resolve a number of choke points in the fields of high-end equipment, new energy and integrated circuit equipment. A large number of major equipment such as the CAP1400 (Guohe One) canned motor main pump and the AGT-110 heavy-duty gas turbine were developed in Liaoning.

Third, we will reform and innovate systems and mechanisms, and open up channels for the transformation of sci-tech achievements. We will further improve the service system for the transformation of sci-tech achievements, and promote more achievements to move from laboratory to workshop, integrate into the industrial chain, and gain access to the market. Focusing on key industrial areas, we will promote the construction of 36 pilot test bases and build a public service network for pilot test covering the entire province as an intermediate station for the transformation of sci-tech achievements. We have also actively cultivated over 400 sci-tech service institutions to carry out professional and market-oriented roadshow activities, and promoted the transformation and industrialization of sci-tech achievements. In 2023, Liaoning's technology contract turnover reached 130.83 billion yuan, a year-on-year increase of 30.8%.

Fourth, we will cultivate and strengthen sci-tech enterprises, and continue to stimulate innovation vitality. We have vigorously cultivated technology-based enterprises and enterprises that use specialized and sophisticated technologies to produce novel and unique products. We have supported enterprises to take the lead in establishing 600 substantive alliances between industries, universities and research institutes, and bringing together more than 2,000 universities, scientific research institutions and key enterprises to carry out collaborative innovation. We have also organized and carried out special events to introduce technicians into enterprises and rural areas to provide more precise services for industrial development. In 2023, our small and medium-sized sci-tech enterprises and new- and high-tech enterprises grew by 55.6% and 16.0%, respectively. There were 1,029 newly added start-up enterprises with strong innovation ability and high growth potential and gazelle enterprises, and 41 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge in Liaoning province. We also saw the birth of the first unicorn enterprise in the province. As Mr. Li mentioned, the "biggest variable" of technological innovation is being transformed into the "biggest increment" in promoting high-quality development in Liaoning. That is all from me. Thank you.

N Video from Nanfang Metropolis Daily:

Liaoning province is renowned for its abundant energy resources. However, it faces pressure to reduce carbon emissions and tackle environmental pollution, among other pressing issues. What efforts will Liaoning make to accelerate energy mix readjustment and achieve a transition toward green and low-carbon practices? Thank you.

Wang Jian:

I'll answer this question. As the journalist said, as a heavy-industry base, Liaoning province faces the challenge of accelerating the transition to green and low-carbon practices due to its significant and intense energy consumption. In recent years, we have upheld the concept that lucid waters and lush mountains are invaluable assets and have intensified efforts to coordinately promote carbon emission reduction, pollution reduction, green development expansion and economic growth, so as to make "green" a defining feature of the full revitalization of Liaoning province.

We have made substantial efforts in the following two areas:

First, we intensified our efforts to control and reduce carbon emissions at the source. Recognizing our high proportion of fossil fuel consumption, we have significantly increased the utilization of wind and solar energy in a concentrated and efficient manner, aiming to build up the province's strength in clean energy production. Currently, clean energy accounts for 49.5% of the province's total installed power generation capacity, with this share expected to exceed 50% this year. By the end of the 14th Five-Year Plan period (2021-2025), the proportion of the installed capacity of clean energy is expected to reach 56.8%. While ensuring energy supply, we are actively promoting the construction of smart power grids to better manage clean energy resources, encompassing grid connection, distribution, and control. Moreover, we have been implementing pilot projects for establishing integrated energy systems, enabling the comprehensive and coordinated arrangement of power sources, grids, loads, and energy storage to ensure effective generation, transmission, and utilization of new energy.

In order to build Liaoning province into a clean energy powerhouse, we will leverage its strengths in energy equipment and scientific research in the energy sector. This includes bolstering specific sectors, such as nuclear energy, power transmission and transformation, hydrogen energy, and energy storage. Additionally, we will implement new-type energy storage pilots for lithium-ion batteries, vanadium redox flow batteries, compressed air technologies, and sodium-ion batteries. Furthermore, we will actively promote the development of industrial chains related to hydrogen energy production, storage, transportation, and application. All these efforts will help ensure national energy security in an all-round manner.

Second, we prioritize carbon emission reduction in existing sectors. Liaoning's refining capacity ranks second nationwide, and its steel and iron production capacity ranks fourth. While our petrochemical and metallurgical industries are competitive, they are also top priorities for carbon emission reduction. We will promote large-scale equipment upgrades to accelerate technological transformations in the petrochemical, metallurgical, and other manufacturing industries, advancing toward higher-end, more intelligent, and greener development. Last year, a total of 537 key projects for ultra-low emission transformation were completed in steel and iron enterprises, and the rate of fine chemicals in the province's chemical industry reached 46.2%, an increase of 1.2 percentage points from 2022. Moreover, we have implemented rigorous market access controls and have resolved to halt the blind development of energy-intensive and high-emission projects. We have stepped up efforts to promote energy-saving renovations of buildings and facilitate the transition to green and low-carbon transportation, aiming to ensure a lighter industrial structure, a greener economic model, and higher-quality development.

That's all for my introduction. Thank you.

Thecover.cn:

Industrial revitalization serves as a prerequisite for the revitalization of Liaoning province. However, traditional heavy industries rely highly on resources and cause significant environmental damage. How will Liaoning province build a modern industrial system with its own distinctive advantages to revitalize the old industrial base? Thank you.

Li Lecheng:

Thank you for your question, and I'll provide an answer. It's widely acknowledged that the industrial sector serves as the backbone of Liaoning's economy. Therefore, revitalizing the industrial sector is a top priority for the overall revitalization of the province. In 2023, Liaoning ramped up its efforts in industrial restructuring, transformation, and upgrading, successfully achieving higher-quality growth with appropriate expansion of output. This year, the province aims to establish a modern industrial system with distinctive competitiveness, supporting its full revitalization in the new era through high-quality and new-type industrialization. We will enhance efforts in the following aspects:

We will focus on industrial restructuring. Greater efforts will be made to cultivate key industrial clusters and establish four trillion-yuan-level industrial bases. Additionally, we will advance large-scale equipment renewals and technological transformation, intensifying efforts to upgrade the equipment manufacturing industry to a more advanced and innovative level, expand downstream operations in the petrochemical and fine chemical industries, ensure cutting-edge innovations in the new metallurgical materials industry, and enable the consumer goods industry to produce more high-quality and specialized products. Meanwhile, we will develop emerging industries such as integrated circuit equipment and biomedicine while nurturing future-oriented industries such as artificial intelligence and cell therapy. Moving forward, we will advance technological innovation, making efforts to push forward industrial upgrading through innovation. We will carry out industrial foundation reengineering projects and research projects on major technologies and equipment. We will also implement the high-quality development action plan for key industrial chains in the manufacturing industry, focusing on the development of major fields, such as high-performance membranes and the titanium industry. This year, we will establish four provincial-level manufacturing innovation centers and intensify research efforts to achieve breakthroughs in core technologies in key fields, facilitating their industrialization and enhancing the resilience and competitiveness of industrial and supply chains. Additionally, we will prioritize industrial transformation and upgrading. Efforts will be made to accelerate the use of intelligent technologies to promote development. This year, we anticipate the establishment of more than 20 5G factories and over 10 "5G+industrial internet" integrated application pilot zones, along with the creation of over 100 provincial-level industrial internet platforms. We will ramp up efforts to hold a successful Global Industrial Internet Conference this year and will execute the special action plan to empower the development of small- and medium-sized enterprises (SMEs) through digitalization, promoting their digital and intelligent transformation and network-based connectivity. In addition, we will strive for green development. Efforts will be made to promote the development of the industrial sector in a green, low-carbon and circular manner. We will implement measures to peak carbon dioxide emissions in the industrial sector and facilitate the green and low-carbon transformation of key industries such as petrochemicals, steel and iron, and building materials. These efforts will help improve industrial energy efficiency and facilitate the comprehensive use of resources. We will enhance the green manufacturing system with the goal of reaching 650 provincial-level green manufacturing enterprises by the end of this year. We will intensify efforts to support enterprise development, including boosting major industrial companies' development and improving public service systems for SMEs. This year, we will promote the integrated development of small-, medium- and large-sized enterprises, aiming to establish 1,000 new innovative SMEs, 300 SMEs that use special and sophisticated technologies to produce novel and unique products, and 50 provincial-level single-product champion enterprises in the manufacturing sector. 

That's all for my introduction. Thank you.

Liaoning Radio and Television Station: 

I would like to ask a question about agriculture. We all know that Liaoning province has a wide variety of agricultural products, such as strawberries from Dandong, cherries from Dalian and river crabs from Panjin. Could you please explain how Liaoning plans to leverage these rich agricultural resources to promote high-quality agricultural development in the future? Thank you.

Wang Jian:

I will answer this question. It is often said that the land shapes its people and fosters unique characteristics. Liaoning is located in the southern part of the Northeast Plain, one of the world's three major black soil regions. The province boasts "mountains accounting for 60%, rivers and lakes accounting for 10% and arable land accounting for 30% of its territory," with a complete ecosystem including mountains, rivers, lakes, oceans, wetlands, and more. The unique natural resources and climate conditions have endowed Liaoning with distinct advantages in agriculture. The province produces a wide range of agricultural products with superior quality and has many well-known geographical indication (GI) products. We aim to become a pioneer in the development of large-scale modern agriculture, and to accelerate the construction of a strong agricultural province and a leading province in the food industry.

First, we must firmly shoulder the political responsibility of guaranteeing national food security. Liaoning is one of the 13 major grain-producing provinces in China, with its grain yield per unit area ranking among the top. Last year, our total grain output reached 25.64 million metric tons, reaching a new historic high. To increase grain production capacity, we will implement actions to enhance capacity, consolidate the foundations of food security, strictly adhere to the red line for protecting arable land, increase investment, raise standards and strive to become a model province for the construction of high-standard cropland. We will also implement projects for the protection of black soil according to different types, converting more arable land into "stable-yield fields" and "high-yield fields." Seeds are the "chips" of agriculture, and we will fully leverage our advantages in agricultural science and technology to carry out actions for the revitalization of the seed industry, providing a guarantee of seed sources for food security.

Second, we will actively adopt an all-encompassing approach to food and build a diversified food supply system, transforming agriculture into an inclusive industry. The distinctive advantages of Liaoning's agriculture are obvious. As mentioned earlier by the journalist, strawberries in Dandong, cherries in Dalian and river crabs in Panjin are all well-known to everyone. In addition, we have many other specialty agricultural products. For example, our offshore resources are abundant with the Liaodong Bay and Haiyang Island being two major traditional fishing grounds, ranking fourth in the country in terms of marine aquaculture output. Additionally, fruits in southern Liaoning, miscellaneous grains in western Liaoning and the "six treasures of traditional Chinese medicine" in eastern Liaoning are also renowned nationwide. Furthermore, Liaoning's greenhouse vegetables achieve year-round production and sales, ensuring supply throughout the seasons. We will focus on developing superior varieties, improving quality and building brands, further refining quality and expanding the scale of specialty agricultural products, allowing people to taste more Liaoning's specialties and flavors.

We will also strive to extend the industrial chain of agriculture and increase its added value. We will cultivate a group of leading enterprises, accelerate the construction of 100-billion-yuan industrial clusters in livestock and poultry, grains and oils, aquaculture, and fruits and vegetables, forming a development pattern in the food industry with leading enterprises and thriving clusters. We will make good use of Liaoning's unique advantages in agriculture, achieving industrial prosperity, agricultural strength and rural prosperity. Thank you.

People's Daily: 

Just now, it was mentioned that Liaoning has carried out a large amount of effective work in areas such as providing services for the elderly and children as well as renovating old communities. Could you please tell us what other efforts Liaoning has made to continuously improve people's well-being? What measures will be taken in the future? Thank you.

Zhang Lilin:

Thank you for your concern toward people's livelihoods. Benefiting the people is an eternal theme for us. In recent years, we have focused on addressing the pressing difficulties and problems that concerned the people most, releasing practical measures, doing practical things and seeking solid outcomes. We have issued the "Implementation of Measures on Further Guaranteeing and Improving People's Livelihoods in the Three-Year Action Plan for Comprehensive Revitalization of Liaoning," and formulated a list of practical matters for the people, striving to ensure that the people feel more fulfilled, have a more sustainable sense of happiness and experience a greater sense of safety. In 2023, the proportion of general public budget expenditures used for people's livelihoods in the province reached 76.5%. In the future, we will further guarantee and improve people's livelihoods in the pursuit of high-quality development, making the lives of Liaoning’s citizens better day by day.

First, we will make people feel more at ease with housing. We will make great efforts to build government-subsidized housing, implement urban renewal actions and create more high-quality living spaces. The province will renovate another 4,600 kilometers of old pipe networks, including 300 kilometers of gas pipelines, 1,500 kilometers of water supply pipelines, 1,500 kilometers of heating pipelines and 1,300 kilometers of drainage pipelines. We will continue to renovate 700 old communities and 4,463 buildings, covering a total construction area of 18 million square meters and benefiting 256,000 households, making life more comfortable for the general public.

Second, we will strive to make people more satisfied with education. We will accelerate the formation of a high-quality and balanced basic public education system. The proportion of public-interest kindergartens and regular senior high schools with high quality and distinctive features in the province have reached 89.9% and 56.4% respectively. We will ensure there are special needs education resource centers in all city-level administrative areas, accelerate the development of high-quality, well-balanced and integrated compulsory education in both urban and rural areas, and expand the scale of regular senior high schools with high quality and distinctive features. Thus, we will make students and parents more satisfied with education. 

Third, we will try to make people more satisfied with employment. We will carry out a series of actions to guarantee and promote employment, so as to advance revitalization. In 2024, Liaoning plans to release policy dividends in the field of human resources and social security and issue loans for enterprises to bolster employment totaling more than seven billion yuan, helping companies fill more than 700,000 vacancies. We will shift from "being able to find jobs" and "finding jobs quickly" to "finding good jobs" and "being content with one’s job," helping job hunters attain full employment.

Fourth, we aim to make public health care services more caring. Upholding the principle of medical professionals providing the necessary services for people's health, we are advancing the expansion of high-quality medical resources and striving for a balance in regional distribution. In 2024, we will add 100 key clinical specialties at the provincial, city and county levels. We are creating warmer health care services by optimizing outpatient processes throughout the pre-diagnosis, diagnosis and post-diagnosis stages. We are also promoting multidisciplinary diagnosis and treatment models, flexible scheduling of outpatient appointments, and establishing one-stop service centers. Our goal is to ensure that the people have reliable medical support to improve their lives and health.

Fifth, we aim to help the elderly feel greater reassurance. We will steadily increase the level of social insurance benefits and implement a comprehensive social security coverage plan. We will strengthen the construction of urban and rural community elderly care service networks, focusing on providing elderly care services on their doorstep. We are committed to creating "15-minute elderly care service circles" that ensure convenient access to services. Additionally, we will carry out senior-friendly transformations for 15,000 households with elderly people in special difficulties, further enhancing the peace of mind for the elderly.

That concludes my introduction. Thank you.

CCTV:

Earlier, Mr. Li mentioned that optimizing the business environment should be regarded as the "first move" and "key battle" in comprehensive revitalization. What are your considerations for the next steps in building the business environment?

Li Lecheng:

Thank you for your question. This matter is of great concern to various sectors of society. We often say that businesses create wealth, while the government creates the environment. We consider optimizing the business environment as the "first move" and "key battle" in the three-year action plan for comprehensive revitalization. We will continue to deepen reforms in key areas, improve government services, focus on benefiting enterprises and the people, and strive to explore a new path that is in line with the reality of Liaoning province and has its own characteristics.

To improve the business environment, we have started by focusing on the government itself. We firmly believe that integrity and the rule of law are the cornerstones of optimizing the business environment. We have initiated special campaigns to ensure government compliance and commitment, emphasizing that new officials must address old issues. We have made significant efforts to address instances of government misconduct, and we have overseen the resolution of nearly 17,000 issues related to the business environment. As a result, market confidence, industry confidence and social confidence have all significantly improved.

Enabling the public to handle their affairs without relying on personal connections is like giving them a reassuring dose of fairness and justice. We have initiated the reform to eradicate favoritism in handling affairs, promoting a campaign in Liaoning of "No Favoritism, No Personal Gain." Throughout the province, more than 900 beneficial policies have been implemented that can instantly be enjoyed without the need for application, benefiting over 11 million enterprises and allowing business entities to fully reap the benefits of these policy dividends.

We are striving to ensure that good things are done well and done quickly. We are actively promoting a direct reporting system between the provincial authorities and counties for land requisition and modularized approvals, significantly reducing the time required for approval. By reducing the tax and fee burden on enterprises, last year we achieved over 40 billion yuan in additional tax and fee reductions, exemptions, refunds and deferred payments provincewide. We have implemented a "one-stop" approach for 35 high-frequency scenarios, resulting in a reduction of average processing time by 62%. This year, we will further expand this approach to include 48 scenarios.

Telephone calls from ordinary people serve as the best opportunity for us to optimize the business environment. Currently, the 12345 hotline has been developed into the centralized customer service for government affairs across the entire province. By addressing specific small issues, scenarios and initial signs of improvement, we are promoting targeted rectification of persistent problems in the business environment. Last year, the hotline received a total of 12.55 million requests, with a completion rate of 99%, effectively addressing various demands.

How is the business environment in Liaoning? Let me provide you with some data. Last year, the business vitality of enterprises in Liaoning increased to 66.7%, showing year-on-year growth of 3.4 percentage points. The in-place investment increased by 16% compared to the previous year. Both domestic and foreign enterprises have shown their trust in the province's business environment by actively engaging and investing. Entrepreneurs can pursue their dreams with confidence while we stand as their strongest support and best partner.

We sincerely welcome friends from the media to visit Liaoning, explore its wonders, and closely observe the development of our business environment. We also welcome your valuable feedback. Thank you.

Phoenix Satellite Television:

Cities like Shenyang and Dalian have always been popular tourist destinations. Additionally, places like the wetland park in Panjin have also garnered significant attention. How does Liaoning plan to turn this widespread attention into a solid foundation for the long-term development of its cultural tourism industry, attracting people to visit and also return? Thank you.

Gao Tao:

Thank you for your interest in Liaoning's cultural tourism sector. Liaoning province boasts beautiful natural landscape, rich cultural heritage and warm, genuine people. We have a diverse range of mountains, rivers, forests, fields, lakes, grasslands and deserts, each with their own unique beauty. The historical legacies of the Hongshan culture, San-Yan culture, Liao and Jin dynasties culture, and the early Qing dynasty culture have been preserved over time. Moreover, the people of Liaoning province are known for their hospitality and kindness. We are working tirelessly to present the most beautiful aspects of Liaoning to visitors from both home and abroad.

At the end of last year, the National Cultural Heritage Administration (NCHA) announced the latest findings in its research project to trace the origins of Chinese civilization, confirming that the Niuheliang Site of the Hongshan culture represents the first stage of ancient Chinese civilization. This discovery has attracted a large number of tourists to visit the city of Chaoyang in Liaoning, seeking to explore its ancient wonders.

During this year's Spring Festival holiday, visitors flocked to Liaoning to revel in ice and snow activities and hot spring relaxation, attracted by its combination of accessibility, moderate temperatures, and affordability. Liaoning's abundance of ski resorts, coupled with its milder winter temperatures, has made the province a consistently sought-after destination for ice and snow tourism. In Shenyang, visitors flocked to the Xiaoheyan morning market to experience the quintessence of affordability and made a stop at the internet-famous Shenyangzhanzhan subway station to partake in the "Listen to Advice Tourism" trend (The Shenyang Bureau of Culture, Tourism, Radio and Television reverted the station's name back to its original version after heeding the advice of internet users). Additionally, visitors explored the historical relics of the Qing dynasty (1616-1911) at the Shenyang Imperial Palace, one of the nation's two remaining ancient imperial palace complexes. During the Spring Festival holiday, Liaoning received a total of 40.866 million visitors, a year-on-year increase of 299.6%, generating a total revenue of 41.27 billion yuan, a year-on-year increase of 572.7%.

This trend continues to gain momentum. This spring, Liaoning has witnessed a resurgence in the popularity of flower and bird appreciation tours. Visitors have been flocking to the province to admire the stunning spring blossoms and picturesque landscapes, indulge in distinctive local cuisines, and immerse themselves in folk culture. Currently, Gangdong 5th Street in Dalian has emerged as a bustling new tourist destination.

Moving forward, we will continuously refine our tourism offerings and enrich the cultural depth of ice and snow, oceanic, borderland, and game-based experiences. By incorporating elements of leisure travel, we will vigorously develop ice and snow hot spring tours, eco-friendly residential getaways, marine and island excursions, revolutionary legacy study journeys, and distinctive culinary explorations, among others. Our aim is to introduce a wider range of high-quality cultural, sports, and tourism-integrated products that not only cater to market demand but also embody rich regional characteristics.

By capitalizing on the opportunity to host China's 15th National Winter Games and embracing the concept of "traveling with sports events," we will enhance and diversify our cultural and sports tourism experiences. This initiative aims to deeply ingrain Liaoning's tourism slogan, "Mountains and seas bear affection; Liaoning beckons with heart and harmony," within the hearts of visitors and establish the province as a pioneering region for the high-quality, integrated development of cultural and sports tourism.

That's all for my answer. Thank you.

Chen Wenjun:

The last question, please.

China Daily:

This year's Summer Davos meeting will take place in Dalian, Liaoning. As an important platform for enhancing international exchange and cooperation, what are the unique aspects of this year's event? Positioned as a hub in Northeast Asia, what steps will Liaoning take next to pioneer new opening-up frontiers? Thank you.

Li Lecheng:

Thanks for your interest in this regard. This year's Summer Davos Forum will gather more than 1,500 guests from across the globe in Dalian, marking a historical milestone in both scale and level of attendees. The hosting of this event in Liaoning aligns perfectly with the province's strategy of positioning itself as an opening-up and cooperation hub in Northeast Asia. Meanwhile, the theme of this year's forum, "Next Frontiers for Growth," mirrors Liaoning's aim of pioneering new frontiers for opening-up.

Situated at the core of Northeast Asia, Liaoning boasts both coastal and border regions. With its extensive coastline, favorable port resources, and advantageous location near Japan, South Korea, Russia and Mongolia, the province also enjoys a strong industrial foundation with comprehensive industrial categories and a wealth of innovative resources driven by the concentration of scientific and educational talents. These factors make Liaoning one of the provinces with the richest opening-up traditions, the greatest opening-up potential, and the highest opening-up vitality. We will fully leverage our geographical, industrial, and production factor resources, deeply integrate into Belt and Road cooperation, and advance opening-up to the north and east. We will conduct targeted investment attraction efforts, actively promote the development of foreign trade and economic ties, and deliver higher-quality services to foreign-funded and foreign-trade enterprises. We will also focus on Fortune Global 500 enterprises and prominent domestic and international corporations to secure a range of high-caliber, large-scale projects, as well as ventures that harness cutting-edge technologies to create novel and distinctive products. Additionally, we will endeavor to grow foreign trade and fully leverage domestic and international exhibitions to aid enterprises in expanding their global reach. We will cultivate new business forms and models of foreign trade, and steadily expand the scale and improve the quality in terms of exporting used cars and the "new three," namely photovoltaics, lithium-ion batteries and new energy vehicles. We will fully explore new growth drivers such as cross-border e-commerce, overseas warehousing, transit trade, and bonded trade. Moreover, we will accelerate the construction of a sea-land corridor in northeast China, work to establish the China-Europe Railway Express (Shenyang) Cargo Consolidation Hub, and steadily improve the quality and scale of China-Europe Railway Express operations, thus advancing the quality and effectiveness of sea-rail intermodal transportation. We will continue to enhance various opening-up platforms by implementing four strategies: upgrading the pilot free trade zone, driving innovation and quality improvement in the economic and technological development zone, empowering the special customs regulation zone, and fostering synergistic development among different platforms.

When adopting a global perspective, nothing escapes our sight. By strategically planning our opening-up with a worldwide perspective, synchronously driving the development of investment, consumption, and export, advocating competitive growth among state-owned enterprises, private businesses, and foreign companies, and expediting the attraction of capital, technology, and talent, Liaoning will undoubtedly set forth on a more expansive path towards revitalization and development. In closing, I would like to take this opportunity, through the media in attendance today, to extend an invitation to businesspeople from both China and around the world to come to Liaoning. Let's join hands to build Liaoning into a hub of opening-up and cooperation in Northeast Asia, and share the valuable opportunities presented by northeast China's all-round revitalization. Thank you.

Chen Wenjun:

Thank you, Mr. Li. Thanks to the other speakers and friends from the media. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Qin Qi, Liu Qiang, Yan Bin, Yuan Fang, Gong Yingchun, Zhang Junmian, Mi Xingang, Huang Shan, Liu Caiyi, Zhou Jing, Xu Xiaoxuan, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Hu Yuting, deputy secretary of the Communist Party of China (CPC) Jilin Provincial Committee and governor of Jilin province

Mr. Cai Dong, a member of the Standing Committee of the CPC Jilin Provincial Committee and executive vice governor of Jilin province

Mr. Li Guoqiang, vice governor of Jilin province

Ms. Yang Andi, vice governor of Jilin province

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 22, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 10th press conference in the series "Promoting High-Quality Development." Today, we are very pleased to be joined by Mr. Hu Yuting, deputy secretary of the Communist Party of China (CPC) Jilin Provincial Committee and governor of Jilin province, who will brief you on striving for new breakthroughs to revitalize Jilin in the new era and then take your questions. Also present today are Mr. Cai Dong, a member of the Standing Committee of the CPC Jilin Provincial Committee and executive vice governor of Jilin province, as well as two vice governors of the province, Mr. Li Guoqiang and Ms. Yang Andi.

Now, I'll give the floor to Mr. Hu Yuting.

Hu Yuting:

Ladies and gentlemen, friends from the media, good morning. I would like to start by extending my deep appreciation for your long-standing interest in and support for the revitalization and development of Jilin. It is also my pleasure to have the opportunity to brief you on this topic.

General Secretary Xi Jinping holds high expectations for the revitalization and development of Jilin. Since the 18th CPC National Congress, he has conducted three inspection tours in the province and put forward the important requirements for us to "shoulder new responsibilities, achieve new breakthroughs and make new accomplishments." This has drawn up a blueprint for Jilin's comprehensive revitalization, and injected strong impetus into the endeavor.

Bearing in mind such expectations, we have resolutely shouldered the important mission of safeguarding the nation's security in food, industry, energy, eco-system and national defense, ushering in a phase of accelerated revitalization and development. In 2023, Jilin's GDP saw year-on-year growth of 6.3%, outpacing the national GDP by 1.1 percentage points. In the first quarter of this year, the province's GDP growth rate hit 6.5%, again surpassing the national economic growth by 1.2 percentage points. With the growth rates of its multiple economic indicators ranking among the top in the country, Jilin has maintained a sound momentum of achieving stable growth while making further progress.

Jilin is not only a key industrial base in the country, but also a major farming province and one rich in ecological resources. Its industrialization started early, and it served as the cradle of the country's auto, chemical and film industries. Jilin has achieved numerous unprecedented national milestones and made key historic contributions to the nation.

On the new journey in the new era, we have kept this historical heritage in mind, carried forward our diligent traditions, and spared no effort to shore up weak links and embrace new challenges. We are poised to achieve new breakthroughs in Jilin's comprehensive revitalization.

Jilin's biggest advantage lies in its agricultural sector. Located within one of the world's three major chernozem soil regions, Jilin leads the nation in large-scale farming and agricultural mechanization. Its annual grain output has exceeded 40 billion kilograms for three consecutive years, and its pioneering role in advancing modern agriculture has been further consolidated.

Jilin's primary strength stems from its manufacturing industry. "Made-in-Jilin" products like vehicles from FAW Group , high-speed trains from CRRC Changchun Railway Vehicles, and satellites from Chang Guang Satellite Technology are well-recognized across the country. Notably, the world's first hydrogen-powered urban train completed its test run here. The Jilin-1 satellites have become the world's largest sub-meter-level commercial remote sensing satellite constellation.

Jilin's innovation strength comes from its edge in science, education and humanities. It is home to 66 colleges and universities, 106 research institutes, and numerous national strategic sci-tech facilities. It ranks fifth nationwide in terms of the scientific research material conditions index , and boasts huge potential for innovation-driven development.

Jilin has made "green" a defining feature of its ecological environment. It boasts not only lucid waters and lush mountains, but also abundant ice and snow resources. Jilin ranks top in the country in the comprehensive evaluation of forest resources. In addition, it is rich in wind and photovoltaic power, and also enjoys a vast expanse of land, providing a unique advantage for the development of new energy industries.

On the new journey in the new era, we will seize the opportunities and work to the best of our abilities. There is much that we can do in achieving new breakthroughs in Jilin's comprehensive revitalization. Specifically, we aim to make breakthroughs in the following fields:

First, we will spur industrial innovation by making sci-tech innovations, and develop new quality productive forces in accordance with Jilin's local conditions. We will implement a sci-tech innovation mechanism, making organized efforts to achieve sci-tech breakthroughs and foster their applications. By doing so, we will address the needs of the industrial sector, further pool strength to make sci-tech breakthroughs in this regard, and expedite their application. We will ramp up efforts to develop the "four key clusters": big agriculture , big equipment , big tourism and big data. We will bolster the "six emerging industries": new energy, new materials, new medicine, new healthcare, new services and new e-commerce. In addition, we will enhance the construction of "new facilities in four categories": new infrastructure, new environment, new lifestyle and new consumption pattern. With such efforts, we aim to develop a high-quality development system and a high-level living system.

Second, we will focus on the development of modern agriculture and expedite efforts to enhance Jilin's agricultural capabilities. We will prioritize the nation's food security and adopt an all-encompassing approach to agriculture and food . In accordance with Jilin's advantages in natural resources, we will strengthen chernozem soil protection and improve saline-alkali land. In addition, we will promote the application of smart agricultural machinery and bio-breeding technologies, foster the production of green and organic food, and develop a modern agriculture industry with a value surpassing the 1-trillion-yuan ($138 billion) mark.

Third, we prioritize ecological progress, insist on green development, and pioneer in building a beautiful China. We will view lush mountains and lucid waters as invaluable assets and firmly safeguard ecological security, better preserving the eco-environment by developing eco-tourism and vice versa. We plan to create world-class ice and snow brands and tourism attractions for both winter and summer. By 2027, tourism revenue is expected to exceed 1 trillion yuan. We will proactively develop the clean energy industry and accelerate efforts to forge a "green hydrogen+" industrial cluster with global competitiveness.

Fourth, we have comprehensively deepened reforms, and elevated the level of opening-up and cooperation. We will work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. We will empower development and increase efficiency by lifting restrictions and unleashing people's ingenuity. While deepening and improving reforms of state-owned enterprises (SOEs), we will also vigorously develop the private sector. We will continue to improve the business environment, increasingly conduct approval procedures online, and make "getting things done without having to rely on personal connections" the standard practice. We aim to deeply involve ourselves in the Belt and Road Initiative and build Jilin into an important gateway for China's opening-up in the north and a hub for cooperation among northeastern Asian countries.

Fifth, we are promoting the high-quality development of the population and enhancing talent support. We will comprehensively improve the quality of the population, create more favorable conditions for innovation and entrepreneurship, offer more support for talent, and expand employment opportunities in various industries. Our goal is to attract more than 60% of college graduates to stay in Jilin for work, thus cementing the positive trend of a net inflow of talent and population into the province.

We have experienced a lot and are now facing a new horizon. It's time for Jilin to realize comprehensive revitalization in the new era. This is highly anticipated. We welcome our friends from the media to visit Jilin again and continue to support this northeastern province. 

That's all from me for now. Thank you all.

Shou Xiaoli:

Thank you, Mr. Hu. Now, the floor is open for questions. Please identify your news agency before raising your questions.

CNR:

I have noticed that Jilin's total grain output has exceeded 40 billion kilograms for three years in a row. So, as an important province for agriculture and grain production, how does Jilin plan to fulfill its role in firmly safeguarding food security in China? Thank you.

Hu Yuting:

Thank you for paying attention to Jilin's agricultural development. Jilin has been a frontrunner in terms of grain production in China. It is located in one of the three major black soil areas in the world and is renowned for its advantageous conditions for cultivating corn and rice. It is also endowed with vast plains and boundless stretches of land for developing large-scale modern agriculture. 

You just mentioned that Jilin's total grain output has exceeded 40 billion kilograms for three consecutive years. Last year, Jilin's total grain output reached 41.865 billion kilograms, rising to the fourth position in the country. The per-unit output ranked first among major grain-producing provinces. More than 90% of the grain output was commercialized, and more than 50% of the grain output was allocated outside the province. Under the new initiatives of increasing grain production capacity by 50 million metric tons, Jilin is assigned to accomplish one-fifth of the total increase, or 10 billion kilograms. As a result, Chinese citizens will be able to enjoy more grain produced in Jilin.

These are the due responsibilities we need to shoulder to realize the goal of continuing to safeguard national food security. The task is weighty, and the solution lies in fostering new quality productive forces in agriculture and in raising total factor productivity through the following measures:

First, we will increase fertile farmland. Jilin has nearly 100 million mu (6.67 million hectares) of black soil land, often referred to as the "giant panda of farmland." We have leveraged our scientific and technological strengths to better protect and utilize black soil, and ensure grain output. We have promoted new, eco-friendly farming methods, such as returning plant stalks to fields and implementing no-tillage planting. Additionally, we have renovated and improved medium- and low-yield fields. This year, we aim to create 666,667 hectares of high-standard croplands, striving to be the first to upgrade all basic croplands to high-standard ones. We will also develop saline and alkaline lands as backup resources to expand agricultural production, expecting a 133,333-hectare increase in fields. We aim to add 4.3 billion kilograms of grain output by sustainably utilizing farmlands to enhance grain production capacity.

Second, we will cultivate quality seeds. Seeds are dubbed as the "chips" of agriculture. We have actively promoted the revitalization of the seed industry and established breeding platforms for key crops such as corn, rice and soybeans. We advocate for the integration of seed breeding, propagation and popularization to expand the use of quality seeds. Thanks to the use of fine seeds, per-unit yields have increased, resulting in a 3 billion-kilogram output increase.

Third, we will utilize high-quality equipment. The overall mechanization rate in crop production in Jilin has reached 94%, which is 20 percentage points higher than the national level. Moving forward, we will focus on developing high-end, smart agricultural machinery, including powerful equipment suitable for flatlands, small-sized machinery for hilly terrain, and innovative solutions that address market gaps, particularly unmanned ones. Mechanization improves efficiency and reduces losses, resulting in a 150 million-kilogram increase in output.

Fourth, we will adopt useful measures. Fertigation and compact planting enable a 30% increase in output per mu (0.067 hectares). We promote commercial agricultural services, provide support to new types of agribusinesses, and expand large-scale, intensive, and standardized operations. Through the utilization of new technologies and services, output has increased by 3.75 billion kilograms.

Lastly, we will develop smart agriculture. We have established digital platforms for agricultural development, promoted soil testing and formulated fertilization plans, deciphered the secrets of soil composition, and expanded the application scenarios of the Jilin-1 satellite to include soil moisture content monitoring, early warning of crop diseases and pests, and meteorological services. This will empower large-scale modern agriculture with smart technologies.

We are confident in maintaining a strong growth momentum of grain production. The province's expected grain output in 2024 is 44 billion kilograms and that of 2030 is anticipated to exceed 50 billion kilograms. Thank you.

CRNTT:

In the first quarter of this year, the value-added industrial output of Jilin's industrial enterprises above designated size witnessed double-digit growth, as did the automobile manufacturing industry. As an old industrial base, what factors support Jilin's good momentum for long-term development of industrial economy? What measures will the local authority take to promote new industrialization? Thank you.

Hu Yuting:

Jilin is an important industrial base in the country. You are very familiar with industrial issues. Mr. Li will answer your questions.

Li Guoqiang:

Thank you for your concern about Jilin's industrial economy. The foundation, strength, and potential of the province's comprehensive revitalization lie within its industrial sector. In the first quarter of this year, we achieved a remarkable 10.4 percent growth in industrial added value, building upon last year's 6.8 percent. China's leading automaker, FAW Group Co., Ltd., located in Jilin, ranked first in production and sales nationwide. Jilin's success mainly attributed to its pursuit of a new path of industrialization, focusing on three key areas.

First, we have facilitated intelligent industrial transformation and digitalization, which are seen as essential for the future of industrialization. With the backing of financial institutions, we spend hundreds of millions of yuan each year on intellectualization and digitalization. We have implemented a series of policies to upgrade every company with digital and smart technologies in an orderly manner, whether they have single production lines or entire production plants. We aim to complete a round of intellectual and digital upgrading for all of Jilin's industrial enterprises above designated size within three years.

Second, we have promoted the formation of industrial clusters, which is a crucial measure to advance new industrialization and make industrial and supply chains more secure. We have fostered 10 major industrial clusters in the province, including a trillion-yuan automotive industry cluster, a 100 billion yuan carbon fiber industry cluster, a corn-based bioproduct industry cluster and seven industrial clusters with the output of over 100 billion yuan. By 2030, the output value of these clusters is expected to account for 85% of the total industrial output.

Third, we have developed hubs for high-end industries, which is key to grasping the initiative of future-oriented industries and supporting new industrialization. Although Jilin's future-oriented industries are still in their initial stage, some major enterprises have already made forward-thinking plans. For example, in the field of intelligent connected vehicles, the FAW Group has completed its hardware design for a high-performance supercomputing platform, which can meet the functional needs of advanced automatic driving. The group has also completed domestic production of the whole industrial chain in the high-precision positioning system for automobiles. In the field of high-speed rail transportation, the CRRC Changchun Railway Vehicles Co., Ltd . developed a hydrogen-powered urban commuter train with a maximum range of over 1,000 kilometers on a single charge and accelerated the manufacturing of high-speed maglev train at a speed of 600 kilometers per hour. In the field of satellite applications, the number of Jilin-1 satellites in orbit increased to 108, making it the largest remote-sensing satellite constellation operating at sub-meter resolution in the world. In the field of ultra-HD displays, the Changchun Institute of Optics, Fine Mechanics and Physics (CIOMP) under the Chinese Academy of Sciences (CAS) can produce high-quality full-color LED displays using its unique technology of single full-color display chips. Cedar Electronics, one of Jilin's specialized and sophisticated enterprises that produce new and unique products , developed 75-inch to 165-inch ultra-HD direct digital TVs, filling a domestic gap in this area.

Next, we will accelerate the development of a modern industrial system and embark on a road to new industrialization featuring Jilin's characteristics and advantages. Thank you.

People's Daily Online:

Recently, Jilin's restaurants for the elderly have attracted wide attention from the public. Could you please introduce the progress of the program? What other measures will Jilin take to address livelihood issues? Thank you.

Cai Dong:

Thank you for your attention on this important issue. There are around 6 million elderly people in our province, accounting for about a quarter of the total population. Meeting their dining needs and improving relevant services is a significant matter related to people's livelihoods and well-being. We have already built a batch of restaurants for the elderly, effectively providing them convenience, resulting in positive feedback. This year, we will build and renovate 1,300 restaurants for the elderly in the province to ensure every community has at least two establishments and each township has at least one. Furthermore, we aim to achieve full coverage of meal services for the elderly in urban and rural communities with relatively concentrated aging populations and higher demands within about three years.

The elderly dining service epitomizes Jilin's work to improve people's livelihoods. We regard the small matters in people's lives as important issues, strive to address them with dedication and sincerity, and truly respond to the needs and aspirations of the people. For example, in terms of employment, we are fully committed to promoting employment for key groups such as college graduates and migrant workers. In 2023, the proportion of college graduates staying in the province to work exceeded 60%, with many young people from other provinces choosing to pursue careers here. Additionally, the proportion of migrant workers employed within the province has increased from approximately 60% in the past to around 80% currently. Another example is heating supply, which is a matter of great concern to the people. We have made significant efforts to address related issues. On one hand, we have established a digital supervision platform to monitor the outlet temperature and operating curves of heating ports in real-time. On the other hand, we have established a reward and punishment mechanism for heating-supply enterprises, resolutely removing those receiving many complaints and providing poor service from the market to ensure that the people can enjoy a warm winter. Furthermore, in healthcare, we have implemented the policy of "only one registration for each medical visit," which we will pilot this year in over 100 major hospitals. At the same time, we are vigorously promoting the delivery of high-quality medical resources to township hospitals to make healthcare access more convenient.

This year, our province will focus on seven areas: employment promotion, social security, education benefits, health care, elderly care, cultural and sports activities, and public services. We will implement 25 livelihood projects, paying particular attention to major and difficult issues of widespread concern, and delivering practical benefits that enhance people's sense of fulfillment. For example, we will upgrade the valves and pipes for users of bottled liquefied gas, support the construction of "vibrant playgrounds" in primary and secondary schools, and reform passenger transport routes to make them similar to the model for buses.

Our financial investment in livelihood projects has been increasing every year, with over 70% of new finances being allocated to safeguard people's livelihoods. Our goal is to quickly address shortcomings, secure the basic livelihoods of the people, and align high-quality development with the people's interests, ensuring that the fruits of development benefit a wider range of people. Thank you.

Science and Technology Daily:

We all know that the development of new energy is progressing rapidly nationwide, and Jilin province has abundant wind and solar power resources. Could you please elaborate on how Jilin province will transform its advantages in wind and solar power resources into advantages in new energy development? What are the key measures? Thank you.

Hu Yuting:

Thank you for your question. The advantages of new energy in Jilin province can be summarized in three sentences.

First, "Jilin possesses unlimited wind and solar power resources." Jilin province has hundreds of millions of kilowatts of potential development capacity for wind and solar power resources, offering vast development space. The average utilization hours for wind energy are close to 3,300 hours, and the average utilization hours for solar energy are nearly 3,000 hours, equivalent to nine hours of power generation potential per day.

Second, "Jilin has strengths in wind and solar power." Jilin province enjoys strong advantages in terms of its location for developing new energy, being close to domestic industrial hubs such as the three northeastern provinces and the Beijing-Tianjin-Hebei region. Our industrial development has a solid foundation, with strong demand for greening traditional manufacturing. With vast and flat land, abundant unused land for project construction, comprehensive transportation infrastructure, and abundant water and biomass resources, Jilin possesses complete conditions for developing a new energy industry chain.

Third, "Jilin has established the groundwork for hydrogen power." We are utilizing wind and solar power resources, straw resources, and river and lake resources as raw materials to vigorously promote the transformation of green electricity into forms of energy such as green hydrogen, green ammonia, green methyl alcohol, green aviation fuel and green materials. Our goal is to establish a hydrogen-based industrial cluster, with the aim of becoming "China's hydrogen capital." Currently, more than 20 leading companies in related industries have settled in Jilin, and over 10 ten-billion-yuan "green hydrogen plus" projects have been launched.

Of course, to transform the advantages in wind and solar power resources into development advantages, we need to innovate our thinking and strive to find a path suitable for making transformative advancements in new energy in Jilin province.

First, policy breakthroughs are required. We encourage leading enterprises or consortia to serve as the main operators of green power industrial parks. We have established a series of supporting policies in terms of electricity pricing, power transactions, project land use and project approval, which are highly operable and valuable.

Second, innovative models are required. We adopt energy supply models such as incremental distribution networks, local power grids, direct supply of new energy and self-contained loads, which are collectively known as "green power plus consumption." With these models, 80% of Jilin's green power can achieve local transformation, thus solving the problem of grid consumption. For example, we support distributed self-generation and self-consumption for flexible electricity use and manufacturing projects such as "hydrogen-based green energy." For modern industries that consume high amounts of energy, such as carbon fiber and new materials, we maximize the use of green power through reasonable ratios of wind and solar power or direct supply models.

Third, expansion of the industrial ecosystem is required. We are building several 10-million-kilowatt-level green power industrial parks and a batch of ten-billion-yuan hydrogen-based green energy industrial parks. We are promoting the integrated development of modern energy storage and other related green industries, while expanding application scenarios and enlarging the industrial scale of hydrogen-fueled vehicles, hydrogen-powered trains and a series of other products to create a complete "green hydrogen plus" industrial chain.

In general, green electricity is a valuable resource in Jilin, and bound to be a powerful means for us to foster emerging industries and future industries. Thank you.

Yicai:

Since last year, the State-owned Assets Supervision and Administration Commission of the State Council has been advancing a new round of initiatives to deepen and enhance SOE reform. As a major hub for SOEs, what measures has Jilin taken to deepen SOE reform? Thank you.

Hu Yuting:

Thank you for your interest in the development and reform of Jilin's SOEs. For Jilin to achieve a breakthrough in revitalization, SOEs must take the lead. In recent years, Jilin has made steady progress in SOE reform. With enterprises operating steadily and soundly, the quality and efficiency of development are consistently rising. However, when measured against the requirements of the central government's new round of SOE reforms and the goal of high-quality development, we still have a considerable amount of work to do. We are facing the issues head-on and are vigorously advancing our action plan to deepen and enhance SOE reform in order to strengthen core functions and improve the core competitiveness of enterprises. We aim to use two to three years to increase the assets of Jilin's provincial SOEs by 50%, doubling their revenue and profits and revitalizing Jilin's SOEs to restore their former strength.

First, we are promoting strategic restructuring and specialized integration of SOEs.. We are accelerating channeling stated-owned capital to strategic emerging industries like new energy, new materials and big data, concentrating on competitive sectors such as large-scale agriculture and tourism and extending into foundational, essential and livelihood-related areas. This approach aims to fully leverage SOEs' supportive roles in technology innovation and industrial security. Jilin is rich in forest resources, with us previously having two large forest industry groups. Due to homogenous competition, the resource advantage was not being fully utilized. Through our reform strategy of merging, integrating and harmonizing, we combined these two separate groups into a single forest industry group to strengthen core industries like ecological protection, product processing, under-forest economy, beverages and leisure resorts. By shedding non-essential businesses, the enterprise has seen sound operation, with substantial increases in revenue and profits this year.

Second, we are increasing the leading role of SOEs in scientific and technological innovation. We support SOEs taking the lead in integrating production, academia, research and application, forming innovation consortia, building platforms for the commercialization of scientific and technological achievements and expanding application scenarios. We have implemented elevated management for Jilin Chemical Fiber Group, coordinating provincial resources and establishing a carbon fiber research institute to tackle critical technologies. High-grade products have already achieved mass production, with expanded applications in aerospace, rail transportation, automotive lightweighting, sports equipment, household goods and other fields. Additionally, the downstream product industrial park is under construction. Currently, Jilin Chemical Fiber boasts the world's largest capacity for protofilament and China's largest capacity for carbon fiber, pressing ahead toward becoming a world-class innovative enterprise that uses special and sophisticated technologies to produce novel and unique products.

Third, we are optimizing governance system and enhancing core competitiveness. We are innovating the SOE oversight and evaluation system by implementing a target-based responsibility system for corporate leaders through their tenures. We are reducing the number of management levels in enterprises, optimizing equity structures and promoting enterprises to conduct reforms and improve their structures. By increasing governance efficiency and improving operational quality and effectiveness, we have restructured and consolidated 66 small and scattered provincial-level SOEs into 12 larger and stronger ones, reducing the number of firms by 81.8%. The levels within the companies have been decreased from five to three, with the total number of enterprises across all levels reduced from 826 to 542, representing a 34.4% decrease.

At present, we are making efforts to deepen and enhance SOE reform, and we expect that over the next several years Jilin's SOEs will regain their vitality. Thank you.

Beijing Youth Daily:

The business environment has been a topic of wide concern. We have observed that Jilin province has made The Conference on Optimizing the Business Environment its first meeting of the year for four consecutive years. What efforts has Jilin made in this regard? Thank you. 

Cai Dong:

Thank you for your interest in Jilin's business environment. In recent years, Jilin has made significant progress in improving its business environment with digital technologies and advancing socioeconomic development through an optimized business environment. 

In 2018, we took the lead across China in formulating administrative services and a digital construction governance bureau. Adopting the model of provincial coordination as well as city and county application, we significantly improved online approval efficiency. The overall approval time for engineering construction projects has been reduced by over 60%, and the time to start a business has been shortened from the original 11 days to just 1 day with the fastest cases completed in just 20 minutes. We have implemented a credit evaluation reform for business entities in 41 fields, and, currently, the comprehensive city credit directories from various cities and prefectures rank among the top in the country.

The improvements in the business environment have injected strong momentum into Jilin province's high-quality development. In 2023, the number of business entities in Jilin increased by 14%, with the number of businesses entities per one thousand people ranking eighth nationwide. Over the past five years, the utilized capital of attracted investment has increased by over 30% annually, and a number of landmark and leading major projects have been implemented in Jilin. 

This year, we will launch initiatives focusing on improving the business environment. We have formulated 40 specific measures to facilitate breakthroughs as well as to solve key and minor problems, thus creating a first-class business environment featuring streamlined process and providing online and one-stop services.

For instance, in terms of administrative law enforcement, we have set up a mechanism for law enforcement supervision and management marked by "reporting in advance," "presenting certificates on-site," "scanning QR codes for inspection" and "follow-up evaluation." Law enforcement officers inspect and record through QR codes generated by the corresponding APP, inform about inspection matters by showcasing the QR code and then the businesses can make comments through the APP after the law enforcement actions. At the same time, we have also established a system of benchmarks for administrative discretion and made a list of cases that "receive no punishment for first violation" so as to effectively address issues of arbitrary law enforcement after a combination of policies and measures.

Regarding construction and approval of projects, for example, we implement "one-stop services or online handling." For cases that can't be handled online, we can provide assistance or proxy services and integrated access to government services, so that enterprises as well as the public can save more time and energy. In addition, concerning the protection of project factors, we have built a land-supply model combining "standardized land and a commitment system," set up a digital supermarket for available land, provided projects with land for construction in a targeted manner and promoted connectivity and interaction between immovable property registration platforms and financial platforms, thus realizing "one-stop" handling of mortgage loan and mortgage registration. Here, I'd like to share with you how we improved our efficiency and made significant changes. Taking the Audi FAW new energy vehicle project that was a collaboration between Jilin province and Germany as an example, we set up a special team for targeted services. It took only 20 minutes to complete the enterprise registration and the construction permit process was finished within 2 days. We completed handling of construction review and other procedures within 15 days, while capping the main structure of the factory area in 5 months. In one and a half years, the project was completed and started trial operation. Such speed was also highly praised by the German partners as "Chinese speed, industry miracle."

In short, Jilin's business environment is improving and its future bears high expectations. We welcome media friends to examine our work. Thank you.

Jilin Radio and TV Station:

Recently, Changbaishan Global Geopark was listed in the Global Geoparks network by the United Nations Educational, Scientific and Cultural Organization (UNESCO). As we know, Jilin boasts a wealth of prestigious tourist sites including Changbai Mountain and Chagan Lake as well as abundant winter tourism resources. What are the province's measures and plans to promote the high-quality development of its tourism industry? Thank you.

Hu Yuting:

Thank you for your attention to Jilin's tourism industry. I'll invite Ms. Yang to answer this question.

Yang Andi:

Thank you for your attention to tourism in Jilin. Representing the origin of tourism in Jilin, Changbai Mountain is a paragon for the development of Jilin's cultural tourism industry. The sacred mountains and waters, powder snow, hot springs and sea of forests have formed an ecological barrier for the Northeast Asia region. Its listing in the Global Geoparks Network by UNESCO signifies that Jilin has more confidence and strength in efforts to build a world-class tourism brand.

We will promote the high-quality development of Jilin's tourism industry through five comprehensive approaches:

First, an all-dimensional layout in the whole province will be built. As you just mentioned, Jilin is a province with abundant tourism resources, good structure, strong differentiation and outstanding advantages when it comes to resources for winter activities. It boasts many hot springs and extensive wetlands, competitive border location conditions and has profound cultural and historical heritage. Though our cultural and tourism industries started relatively late, it developed quickly, from the solo highlight of Changbai Mountain area during the 12th Five-Year-Plan period (2011-2015), to the "core leading pairs" of Changbai Mountain area and Changchun-Jilin tourism economy during the early period of the13th Five-Year-Plan (2016-2020), to the "three growth poles" of the western ice industry center in the middle of the 13th Five-Year Plan period, to the "four engines of growth" after the rise of Tonghua and Meihekou cities during the late 13th Five-Year-Plan period, and then to the building of cities and counties throughout the province with annual GDPs exceeding 100 billion yuan and 10 billion yuan, respectively. Through these efforts, a fully supported spatial layout with diversified development has basically taken shape.

Second, full-season development will be carried out. In terms of different seasons, we will solve the problem of winter tourism by focusing on the local feature of ice and snow, promote innovative development of art and leisure industries and form an industrial model where winter tourism interplays with summer one, they together stimulate spring and autumn tourism, and each season has its own special features.

Third, the whole industrial chain will be promoted. Aiming to build the province both as a winter resort and a summer resort, we will make more efforts to form a double industrial pattern. "5+X" industrial chain with snow and ice sports, tourism, culture, equipment manufacturing and scientific innovation at its core is taking shape. We will also optimize the four traditional business models including summer resorts in mountains, waterfronts, forests as well as rural areas, and highlight the three new types of sectors including health care at summer resorts, study tours and extended stays at summer resorts.

Fourth, we will build a complete product portfolio. In winter, Jilin features ice and snow activities for vacation and leisure purposes, forming a vibrant product ecosystem to appeal to high-end and mass-market tourists at both day and night and throughout the year. In summer, Jilin has built a diversified tourism product system featuring refreshing experiences with its scenic mountains and rivers, tranquil forests, serene countryside, unique culture, leisurely lifestyle and gourmet food. Jilin has also staged an array of well-designed tourism products for autumn and spring, which are themed on seeking the most beautiful fairytale of autumn in Jilin, Changbai Mountain spring snow, and spring blossom appreciation tours.

Fifth, we will provide all-round services. We will continue to improve tourism infrastructure. The six airports in Jilin will have more than 280 air routes by 2025. The opening of the Shenyang-Changbaishan high-speed railway will bring tens of millions of passengers to Changbai Mountain. The province's scenic spots will attain full 5G network coverage to improve service capabilities. At the end of last year, the number of beds in Beidahu Ski Resort reached 8,000, making it the largest single ski resort in Asia in terms of reception capacity. By the end of this year, another 1,000 beds will be added. The number of ice and snow sports instructors has increased from less than 300 when the industry began to 6,417 now. To optimize the market environment, the provincial government took the lead and joined forces with the public security, transportation, commerce, culture and tourism, market regulation and other departments to carry out comprehensive rectification in six key areas, so as to create a convenient, comfortable and safe tourism environment.

Lastly, I would like to sincerely invite all friends from the media to visit Jilin. Jilin is a beautiful province and I am waiting to see you there. Thank you.

Shou Xiaoli:

The last two questions, please.

CCTV:

We have noticed that Jilin province has introduced many measures to support the development of the private sector, especially in terms of improving enterprise-related services. Can you give us a detailed introduction?

Li Guoqiang:

Thank you for your interest in private enterprises. Private enterprises account for half of Jilin's GDP. To some extent, we can even say that only when the private economy is robust, can Jilin achieve prosperity. We have focused on four areas, namely, policy innovation, service consideration, industry expansion and quality improvement.

We stress policy innovation. Last year, we introduced 41 substantial policies to support the development of private enterprises. Some measures set the pace in the country. For example, 41 fields have used professional credit certificates to replace the previous reports of non-violation records. Now, as long as you enter company-related information online, the certificate will be issued within 3 seconds, which allows enterprises to make fewer visits to government departments in order to get things done and greatly improves efficiency. This new method has gained widespread popularity among private enterprises.

We provide considerate services for our enterprises. Governments at all levels often hold corporate salons, roundtable meetings and other activities to listen to the needs of enterprises in person and to help them address problems in a practical way. We resolve matters that can be addressed quickly and immediately, and try our best to handle those that are difficult. In cases where no solutions can be found, we will explain clearly to the company the reasons why. Let me give you two examples. The first example is last year we had a company that wanted to go public, and needed relevant departments to provide reports. It would probably take several months for the company to complete all established procedures. So, we changed from sequential approval to parallel approval and it only took seven working days to complete the approval process, creating convenient conditions for the company's listing. For the second example, we have a company that needs to spend more than 2 million yuan annually in treating electronic waste generated in production. After learning about the situation, we helped this company establish contact with a new energy company to buy the electronic waste as raw material. In this way, this company not only eliminates electronic waste disposal fees, but generates additional income. There are many other examples like these two in Jilin. At the same time, we have made the transition from solely solving one concern to solving concerns of the same category. For example, we face a shortage in talent in the automobile and pharmaceutical industries, both of which are key industries in our province. To tackle this problem, the CPC Jilin Provincial Committee and the Jilin Provincial People's Government have introduced special policies for talent recruitment in these two sectors, with talent being able to receive up to more than 2 million yuan in support.

We have greatly increased the number of business entities. Mr. Cai has just elaborated from the perspective of the business environment, saying that last year the number of business entities in Jilin increased by 14%, and the number of business entities per 1,000 people in the province is among the highest across the country. You may not have expected this.

We have improved quality in terms of empowerment. We have mainly focused on cultivating science and technology enterprises. Last year, our science and technology enterprises grew by 15.36% and small and medium-sized science and technology enterprises grew by 72%, ranking first in the country, which everyone may not have expected, either.

Not long ago, we held a provincial conference on the development of private economy. Next, we will carry out a series of activities serving enterprises in terms of talent, technology, finance and project matchmaking, continue to use solid measures to improve the "soft" environment and build a cordial and clean relationship between government and business in order to make Jilin truly a hub for investment and business development. Thank you. 

Shou Xiaoli:

The last question, please. 

Cover News:

In recent years, the number of wild Amur tigers and Amur leopards in Jilin has continued to increase, and they have been frequently seen "on camera," indicating significant improvement in the ecosystem. Could you share with us the good experiences and practices of Jilin province in protecting the ecological environment and building a beautiful Jilin? Thank you.

Hu Yuting:

Thank you for your interest in Jilin's efforts in ecological conservation. Now, with the growth and expansion of wild animal populations, animal diversity in Jilin has continued to increase, reflecting the ongoing enhancement of the province's ecological environment. Here is a set of data to share with you. The current numbers of wild Amur tigers and Amur leopards in Jilin are over 50 and 60, respectively. While the figures may seem modest, they represent a doubling compared to 2017. This 100% increase in population for these special species is remarkable. New Amur tiger and leopard cubs are born every year, forming a relatively stable breeding population. In Jilin's Hunchun city, the core area of the Northeast China Tiger and Leopard National Park , "roadblocks" caused by these special species frequently occur, as is evident from online videos. These encounters are not only seen in our surveillance cameras but are also often experienced by tourists on roads within certain scenic areas, signifying considerable populations for these special species. In addition, the Chinese merganser, dubbed "the giant panda of birds," has seen its population exceed 600, doubling over the past five years. Furthermore, tens of thousands of white cranes and red-crowned cranes migrate and settle in the wetlands of west Jilin each year. Currently, Jilin has established a system of protected areas, including the Northeast China Tiger and Leopard National Park, 36 nature reserves and 88 natural parks, with the protected area accounting for 17% of the province's total land. 

Green is a defining feature of Jilin. In the east, the land is adorned with rugged mountains where tigers and leopards dwell. In the west, expansive grasslands and wetlands see the graceful flying of cranes in the sky. In the central region, fertile plains stretch for miles, filling the air with the fragrance of abundant grains. We protect Jilin's ecology as we would our own eyes, striving to build it into a pilot zone for the Beautiful China Initiative.  

For one thing, we have accelerated efforts to build up Jilin's strengths in ecology. Jilin stands as the source of the Songhua River, Yalu River and Tumen River, with five major water systems weaving across the province. The Changbai Mountain in Jilin, one of China's six major forested areas, constitutes a crucial ecological shield in Northeast Asia, earning the acclaimed titles of "Changbai Forest Sea," "Northeast Water Tower," and "Gene Bank of Species." We have consistently implemented the ecological conservation and restoration project targeting the mountain, water, forest, farmland, grassland and desert ecosystems. In recent years, a diverse ecological pattern has emerged, with extensive forests, interconnected grasslands and interspersed wetlands. The Chagan Lake in west Jilin ranks as the seventh largest freshwater lake in the country, and winter fishing practices on the lake have been recognized as a national intangible cultural heritage. We have implemented the Chagan Lake conservation and development project, aiming to restore forests, grasslands and wetlands. As a result, the ecological environment around the lake has significantly improved, earning it a 5A rating scenic spot this year, and making it another signature attraction for Jilin's tourism.  

Additionally, we have continuously elevated the ecological "happiness index." Taking the improvement of ecological environment as a crucial aspect of people's well-being, we have made solid efforts in preventing and controlling pollution, consistently achieving new highs in the quality of the environment across the province. Jinlin now sees around 93% of days with good or excellent air quality, leading the nation in this regard. In the Changbai Mountain area, the air contains over 40,000 negative oxygen ions per cubic centimeter. Today, "Jilin Blue" has become a prevailing hue of happiness, with clean, beautiful and livable villages scattered across the province. 

We sincerely invite you to Jilin and experience its lush mountains, lucid waters, fertile black soil, clear blue sky and refreshing air. Thank you.  

Shou Xiaoli:

Thank you, Mr. Hu. Thanks to all the speakers and our friends from the media. Today's press conference is hereby concluded. Goodbye. 

Translated and edited by Zhu Bochen, Wang Wei, Liu Sitong, Huang Shan, Lin Liyao, Ma Yujia, Wang Ziteng, Yuan Fang, Liu Jianing, Zhang Tingting, Wang Yanfang, Yan Bin, Zhang Junmian, Xu Xiaoxuan, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers: 

Mr. Wang Dongwei, vice minister of finance

Mr. Li Xianzhong, director general of the Department of Treasury of the Ministry of Finance (MOF)

Mr. Wang Jianfan, director general of the Budget Department of the MOF

Chairperson:

Mr. Xie Yingjun, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 22, 2024

Xie Yingjun:

Ladies and gentlemen, good afternoon. Welcome to this briefing held by the State Council Information Center (SCIO). This is a regular briefing on China's economic data in the first quarter. Today, we have invited Mr. Wang Dongwei, vice minister of finance, to brief you on China's fiscal revenue and expenditure in the first quarter of 2024, and to take your questions. Also present today are Mr. Li Xianzhong, director general of the Department of Treasury of the Ministry of Finance (MOF), and Mr. Wang Jianfan, director general of the Budget Department of the MOF.

Now, I'll give the floor to Mr. Wang for his introduction. 

Wang Dongwei:

Ladies and gentlemen, friends from the media, good afternoon. I'm very glad to meet you again. Thank you for your long-term interest in and support for the fiscal work. First, I will brief you on China's fiscal revenue and expenditure in the first quarter of 2024.

Since the beginning of this year, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we have thoroughly implemented the guiding principles of the Central Economic Work Conference and the "two sessions" (National People's Congress and Chinese People's Political Consultative Conference). Following the decisions and deployments outlined in the government work report, we have appropriately enhanced the intensity of our proactive fiscal policy and improved its quality and effectiveness . We have consistently leveraged fiscal policy space effectively, strengthened the coordination of fiscal resources, and improved the policy toolkit and its utilization, promoting sustained economic recovery and growth. In the first quarter, fiscal revenue and expenditure maintained a stable performance, presenting the following three features:

First, fiscal revenue maintained a rebound trend when calculated on a comparable basis. In the first quarter, revenue in the national general public budget reached 6.0877 trillion yuan ($0.84 trillion), marking a year-on-year decline of 2.3%, or comparable growth of 2.2% after adjusting for special factors, maintaining a recovery trajectory. What are the special factors? One is the inflated baseline caused by the entry into treasury of partial tax deferrals for micro, small and medium enterprises in manufacturing during the first few months of 2023. Another is the decline in this year's fiscal revenue as a result of the carryover effect of the four tax reduction policies introduced in mid-2023. In the first quarter, national tax revenue stood at 4.9172 trillion yuan, a year-on-year decrease of 4.9%, yet maintained stable growth after adjusting for the aforementioned special factors. 

Second, tax revenue of certain industries such as cultural tourism and advanced manufacturing registered rapid growth. In terms of services, the tax revenue from accommodation and catering, which are closely related to consumer spending, increased by 44.7%, culture, sports and recreation by 26.7%, transportation, storage and postal services by 6.8%, and retail by 5.7%. These figures demonstrate that the vitality of consumer spending is continuously being unleashed. Regarding manufacturing, its tax revenue in the first quarter experienced a year-on-year decline, yet registered stable growth after adjusting for incomparable factors such as the aforementioned inflated baseline. Despite the influence of incomparable factors, the tax revenue of certain subsectors in manufacturing still performed well by showing an upward trend. For example, the tax revenue of railway transportation equipment manufacturing increased by 9.5%, and computer manufacturing increased by 6.8%. 

Third, funding for key areas was effectively ensured. Fiscal departments at all levels strengthened coordination of fiscal resources, accelerated budget approval and utilization of additionally issued treasury bonds, and strengthened sufficient funding for major national strategic tasks and efforts to meet people's basic living needs. Meanwhile, we improved the structure of fiscal expenditure, made sure that Party and government departments get used to keeping their belts tightened, spending where necessary and saving where possible, and thus pooling financial resources to accomplish major tasks. In the first quarter, expenditure in the national general public budget increased by 2.9% year on year. Specifically, expenditure on social security and employment was 1.2708 trillion yuan, up by 3.7%; education was 1.0436 trillion yuan, up by 2.5%; urban and rural community development was 561.4 billion yuan, up by 12.1%; agriculture, forestry and water was 518.5 billion yuan, up by 13.1%; and housing support was 204.9 billion yuan, up by 7.8%.

Moving forward, the MOF will make solid efforts to implement the proactive fiscal policy, and strengthen fiscal management and supervision. We will integrate enhancing macro regulation, expanding domestic demand, fostering new growth drivers, and preventing and defusing risks, further improve the quality and effectiveness of the fiscal policy, and consolidate and strengthen the momentum for economic recovery and growth.

That's all for my introduction of the fiscal revenue and expenditure in the first quarter. Now, my colleagues and I are ready to answer your questions. Thank you. 

Xie Yingjun:

Thank you, Mr. Wang. Now the floor is open to questions. Please identify the media outlet you work for before asking your question. 

Xinhua News Agency:

As Vice Minister Wang just mentioned, China's fiscal spending expanded by 2.9% in the first quarter, ensuring effective funding for key areas . Could you provide further information on how this budget was allocated? Thank you.

Wang Dongwei:

Thank you for your question. In the first quarter, finance departments at all levels kept their belts tightened and continued to prioritize and ensure funding for key areas, while observing the principle of controlling general expenditures. In the first quarter, China's general public budget spending was nearly 7 trillion yuan (US$985 billion), up by 2.9% compared to the same period last year. This was not easy, especially due to last year's concentrated settlements with pandemic-related expenses. This growth underscores our efforts in enhancing the intensity of our proactive fiscal policy as well as to improve its quality and effectiveness. Here, I'd like to elaborate on how we have achieved this.

First, all funds from additionally issued treasury bonds were allocated at the beginning of the year. An additional one trillion yuan of treasury bonds issued in the fourth quarter of last year were mostly used this year. By the end of February, the Ministry of Finance had already assigned all one-trillion-yuan bonds to local governments. Official data showed that the funds specifically targeting expenditures in urban and rural communities, agriculture, forestry, water conservancy , and disaster prevention and emergency management increased by 12.1%, 13.1% and 53.4% year-over-year, respectively, showing double-digit growth.

Second, over 80% of transfer payments' budget has been issued. For 2024, the central government has planned 10.2 trillion yuan for transfer payments to local governments, a comparable increase of 4.1%. After the National People's Congress approved the central budget for 2024, the Ministry of Finance promptly completed the budget allocation as per the Budget Law .

By early April, all of the central government's budgets for this year were approved with 8.68 trillion yuan of transfer payments being allocated to local governments, accounting for 85.1% of the budget that was set early this year. All projects eligible under general transfer payments and those under shared fiscal powers have been fully funded.

Third, the process of making budgetary funds available for fiscal expenditures has been accelerated. In the first quarter, China's general public budget spending has already completed 24.5% of the total budget, exceeding the average rate for the same period over the past three years. Several sectors registered rapid growth in fiscal spending, including social security and employment, healthcare, urban and rural communities, transportation, and housing. Fiscal spending with social security and employment reached 30.7%, urban and rural communities 26.2%, healthcare 25.1% and transportation 25.1%. All ahead of schedule.

That's all I'm going to say for this question. Thank you.

China Financial and Economic News:

According to media reports, investors have been actively purchasing savings bond, leading to a situation where some banks are unable to meet demand. How do you view this phenomenon? Thank you.

Wang Dongwei:

My colleage Mr. Li Xianzhong will answer this question.

Li Xianzhong:

Thank you for your question. Savings bonds represent national credibility. They are favored by investors due to their capital preservation and interest protection along with stable returns. The progression of March's and April's issuance of savings bonds was generally stable, but there was, to a certain extent, imbalances between supply and demand. To explain this, it is important to understand that there are different types of savings bonds and different issuance methods. Currently, we have two kinds of savings bonds: certificated bonds and electronic bonds .

Certificated savings bonds are normally available at bank counters. Due to varying customer bases and demands at each branch, there are challenges with adjusting the sales quotas across different branches, which can lead to supply-demand imbalances at some locations. Take the issuance of certificated bonds in March, the Beijing branch of a major commercial bank sold 70% of its total allocation on the first day. Each issuance of treasury bonds would normally last for 10 days. 14 out of 466 outlets in Beijing sold the planned volume within half an hour, causing some investors at the counters to miss out on purchasing bonds.

Electronic savings bonds can be purchased at both bank counters and online via smartphones. And the sales quota can be flexibly adjusted among different channels, either between different banks, different outlets or through online methods. According to statistics, investors over 60 years old, who normally prefer purchasing at bank counters, account for 55% of the total investors of savings bonds. To better meet the needs of this traditional customer segment, the sales quota for electronic savings bonds on the first day are weighted towards counter sales, allocating 60% of the total quota to branch counter sales. This ensures that demand at the counters is generally met.

Since April, the public has paid more attention to savings bonds, which was influenced by factors such as some banks lowering deposit interest rates and suspending sales of large deposit certificates. 99.7% of the planned electronic savings bonds issued in April were sold out on the first day of issuance, which was significantly faster than the average in recent years. At many banks' counters, the bonds were sold over two hours. As the internet or mobile phone platforms could accommodate more investors to buy products simultaneously, these sales were more concentrated, leading to a momentary imbalance between supply and demand of bonds in some banks. Online or on mobile platforms offered by 32 banks, investors had about half an hour on average to purchase savings bonds. The bonds were sold out online or on mobile platforms within a minute at two banks while at seven other banks the record was six minutes.

In order to further meet investors' demand for bond purchases, we will take the following four measures in the next step: First, we will pay close attention to changes in the supply and demand relationship and sales of savings bonds, and study how to appropriately increase the issuance scale. The core of being "hard to purchase bonds for investors" is that demand is strong and supply is relatively insufficient. So, our next step is to appropriately increase the scale of issuance. Second, we will study how to further reduce the limits on individual purchases so that savings bonds can benefit more investors. Third, we will continuously improve the information service of electronic savings bonds on the basis of ensuring over-the-counter sales, and steadily increase the online (mobile phone) sales of electronic savings bonds. At the same time, we will encourage and guide more investors to purchase bonds online or through mobile banking, so as to improve their purchasing experience. Fourth, we will work with relevant departments to further optimize certificate savings bonds' mechanisms for quota allocation to better match branches with actual needs. We will optimize the mid- and long-term arrangements for the issuance ratio of certificate and electronic savings bonds to better meet the needs of investors' demand when purchasing bonds.

That's all for my introduction. Thank you.

Yicai:

In the fourth quarter of last year, the central government issued additional treasury bonds worth one trillion yuan. Can you give us a detailed explanation to the use and distribution of these additional funds? And what measures has the MOF taken to strengthen capital supervision? Thank you.

Wang Jianfan:

Thank you for your questions. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, and upon review and approval by the Standing Committee of the National People's Congress, an additional one trillion yuan of treasury bonds were issued in the fourth quarter of 2023, with a focus on supporting post-disaster recovery and reconstruction and making up for shortcomings in disaster prevention, reduction and relief. It is of great importance to comprehensively improve China's resiliency against natural disasters and better protect the safety of people's lives and property in China. The MOF has earnestly implemented and refined a work plan and has completed tasks in a concrete and orderly manner.

First, we have organized the issuance of treasury bonds well. After the Standing Committee of the National People's Congress reviewed and approved the plan for the additional issuance of treasury bonds, the MOF promptly adjusted the treasury bond issuance plan for the fourth quarter, optimized the issuance window and the mix of bond maturities, mobilized members of the treasury bond underwriting group to prepare for debt repayments and ensured a smooth issuance of additional treasury bonds to raise funds fully. With the coordination and cooperation of all relevant parties, the issuance of one trillion yuan of treasury bonds was successfully completed by the end of 2023.

Second, we have worked hard in allocating funds raised by the issuance of treasury bonds. The National Development and Reform Commission (NDRC) and the MOF, along with relevant departments, have established a special working mechanism to organize the application and review of treasury bond projects in a timely manner. According to the project list determined by the special working mechanism, the MOF had allocated all funds raised by the issuance of the additional treasury bond to localities in advance by this February. We have urged and guided local authorities to use these funds for specific units and projects in line with the pace of progress, resulting in practical outcomes as soon as possible.

Third, we have made good arrangements for funds raised from the issuance of additional treasury bonds. The MOF has established a separate allocation mechanism for these funds. In December of last year, we allocated 500 billion yuan of funds to local governments in two batches. From January to February of this year, we allocated another 500 billion yuan of funds to local governments in three batches. In general, all one trillion yuan has been allocated to localities to ensure that projects in various areas could be launched and promoted smoothly.

Fourth, we have established a supervision system for funds raised by treasury bonds. The MOF formulated the "Measures for the Management of Additional Treasury Bond Issuance in 2023" to standardize the allocation and use of funds raised by the government bonds, to improve the integrated budget management system and to conduct full-process supervision over funds. We have urged local regulatory bureaus to set up normalized supervision mechanisms in order to promptly discover and address existing issues. We have prompted local governments to standardize the use of funds and improve their efficiency.

Next, the MOF will actively utilize its functions, guide local governments to accelerate the implementation of projects and continuously enhance our supervision on the issuance of additional treasury bonds, ensuring the precision and efficiency of fund use. Thank you.

CCTV:

We have noticed that in the first quarter of this year, the central government introduced some policies supporting new drivers of economic growth. Could you please elaborate on the relevant situation and what policy considerations will be taken in the next step? Thank you.

Wang Dongwei:

Thank you for your question. I will answer it. The central government attaches great importance to cultivating new drivers of economic growth and vigorously supports them. I will respond in the following way:

First, we focus on supporting the high-quality development of the manufacturing industry. Centering on vigorously promoting the building of a modernized industrial system and accelerating the development of new quality productive forces, the central government has allocated special funds in the manufacturing sector to make up for weaknesses and strengthen advantages in key technologies and industries and to promote leapfrog development in industries such as new-generation information technology, high-end equipment and new materials. Soon, we will collaborate with departments such as the Ministry of Industry and Information Technology to implement a new round of fiscal support policies for small and medium-sized enterprises with specialized and sophisticated technologies to produce novel and unique products , cultivating more corresponding experts in vital links within the industrial chain. We will pilot new technological transformation in some cities in the manufacturing sector and allocate 3 billion yuan in 2024 to support the "intelligent transformation, digital transformation and networking " of the first batch of around 20 pilot cities, so as to enhance the high-end, intelligent and green standards of the manufacturing industry.

Second, we will focus on promoting the growth of the digital economy. The central government's fiscal support will spotlight key areas of the digital economy, including supporting the construction of digital infrastructure, cultivating industrial internet platforms and promoting the digital transformation of small and medium-sized enterprises, in order to promote the deep integration of the digital economy and the real economy. In the first quarter, the growth rate of the value added of information transmission, software and information technology services reached 13.7%. In 2023, we allocated 3 billion yuan to support 30 pilot cities in carrying out pilot projects for the digital transformation of small and medium-sized enterprises and address the prominent issue of "not daring to transform, unwilling to transform and not knowing how to transform" faced by those enterprises. This year, another 3 billion yuan will be allocated to expand the scope of the pilot. In the next step, we will work with relevant departments to launch the digital transformation and upgrading of transportation infrastructure, supporting the digital transformation of a number of busy national highways, ordinary national roads and high-grade waterways, aiming to promote intelligent expansion, safety efficiency improvements and industrial integration of transportation facilities.

Third, we will focus on expanding and promoting domestic demand. We will make good use of fiscal and tax policies to support the implementation of large-scale equipment renewal and trade-ins of old consumer goods. Centering on the trend of upgrading residents' consumption, we will integrate existing policies with new ones, adhere to the linkage between the central government and local governments, actively promote the trade-in of old durable consumer goods, such as automobiles and household appliances, and cultivate new growth points for consumption. We will support the implementation of county-level actions for commercial construction and the construction of modern commercial and trade logistics systems to improve the level of guarantee for consumption service . Soon, we will work with relevant departments to launch county-level charging and battery swapping facilities to make up for weaknesses and, this year, we will support about 70 pilot counties in 24 provinces to tap the potential of new energy vehicle consumption within rural areas.

Fourth, we will focus on improving the quality and efficiency of infrastructure. We will comprehensively use policy such as additional issuance of treasury bonds, special local government bonds, the central government budget for investment and vehicle purchase tax funds to promote the construction of key fields and major projects. For example, since 2022, a total of 13.7 billion yuan has been allocated to support the implementation of national comprehensive freight hub reinforcement work in two batches of 25 cities, aiming to promote the reduction of comprehensive logistics costs.

Next, we will work with relevant departments to support some large and medium-sized cities in implementing urban renewal actions, including updating and renovating underground pipe networks. At the same time, we will support a new batch of cites to reinforce their functions as national comprehensive freight hubs. These efforts will further improve the shortcomings of infrastructure and better leverage the stimulus effect of government investment.

That's all I have to say. Thank you.

Bloomberg News:

What is the reason for the slow issuance of local special bonds since the beginning of this year? And when is the issuance expected to speed up? Thank you. 

Wang Jianfan:

In order to implement the decisions and deployments of the CPC Central Committee and the State Council, actively play the role of local government bonds, stimulate effective investment and promote steady economic recovery and growth, in December 2023, the MOF performed approval procedures in accordance with the law and approved part of the 2024 quota for local government special bonds in advance.

In 2024, the MOF will work with related departments to continuously improve and adjust the investment areas of local government special bonds and the scope of project capital. We will include more fields of new energy, new infrastructure and new industries for investment in local government special bonds. We will issue bonds to support independent new-type energy storage and the comprehensive treatment of water environments in key river basins; guide local governments to provide more support for areas including infrastructure of national industrial parks, integrated application of 5G technologies, urban village renovation, construction and supply of government-subsidized housing and college dormitories; further plan major projects that deliver significant socio-economic benefits, have a strong driving effect, are wanted by the people, and need to be implemented. We will allow the use of local government special bonds as project capital for government-subsidized housing to help the bonds play their leveraging role. Meanwhile, we will guide local governments to strengthen project reserve, focusing on key investment areas identified by the CPC Central Committee and the State Council, and strictly implement the list of prohibited items. We have worked with related departments to ask local governments to submit their demands for new special bond projects in 2024. Currently, the MOF has been strengthening the review of projects from the aspects of project maturity, balance of financing and revenues, and fund use compliance to improve the quality of project reserves. 

In the first quarter of 2024, all localities issued special bonds within the limit of the 2024 quota for local government special bonds approved in advance, mainly for the construction of projects in key areas identified by the CPC Central Committee and the State Council, such as municipal construction, industrial park infrastructure, social programs, transportation infrastructure and government-subsidized housing projects. Special bonds have played a positive role in strengthening the economic foundation, shoring up weak links, improving people's lives and expanding investment. The issuance scale of special bonds in the first four months was smaller than the same period in previous years. This is due to two factors. On one hand, the scale of issuances at the beginning of previous years was expanded to cope with the impact of special factors such as the COVID-19 pandemic. On the other hand, it is also related to demand for local project construction funds, conditions for construction in winter and spring, bond market interest rates and other factors. At the same time, we have also done a lot of work to improve the quality of special bond projects and strengthen the preliminary preparations of projects. Overall, the issuance scale for the whole year is still in line with expectations.

Next, the MOF will work with related departments to guide local governments to issue special bonds at the right pace, optimize the pace and scale of government investment, guide and ensure the funding demand of major projects, use special bonds more efficiently, give full play to the driving and amplifying effect of government investment, consolidate and build momentum for economic recovery and growth, and continue to effectively pursue higher-quality economic growth and appropriately increase economic output. Thank you. 

Guangming Daily:

At present, spring plowing and sowing have entered a critical period. How has the central government's financial support for spring plowing been this year? Are there any new initiatives? Thank you. 

Wang Dongwei:

Thank you for your questions. I will answer your questions. Plans for the year begin in spring. Spring plowing is of great significance for stabilizing agricultural production throughout the year, and especially grain production. The central government has strengthened policy implementation, and funds related to agricultural production have been allocated this year to support a good start to agricultural production throughout the year. I would like to share several points with you. 

First, we will focus multidimensional efforts on the land to help consolidate the foundation of grain production. There are three main measures: First, we will increase capital investment. We are guiding all localities to make good use of an additional 224.9 billion yuan of treasury bonds issued at the end of 2023 to efficiently advance the cultivation of high-standard cropland, and the redevelopment and upgrading of irrigated areas. Continued support will be provided this year through transfer payment to cultivate modern and high-quality farmland with high and stable yields regardless of drought or floods. Second, subsidies for farming have been increased. The central government's subsidy per mu of high-standard cropland has been increased from 1,300 yuan to 2,400 yuan, and local requirements for supporting funds from major grain-producing counties have been canceled. Third, the scope of support has been expanded. An allocation of 5.2 billion yuan will be used for expanding the conservational tillage area of black soil to 100 million mu. A total of 4 billion yuan has been allocated for expanding pilot programs for comprehensive utilization of saline-alkali land from two provinces to 12 provinces. We should either grow tolerant crops in such land or transform such land for specific crops, so as to expand the space for agricultural production. 

Second, we focus on strengthening efforts in technology to support cost reductions and efficiency improvements in agricultural production. There are three main aspects: Firstly, supporting the increase in per unit yields for grain and oil crops across large areas. An allocation of 4 billion yuan will support the implementation of actions to increase the per unit yields of large-scale planters of grain and oil crops and promote the application of technologies such as dense planting and precision seeding to increase production. An allocation of 3.4 billion yuan will support the implementation of actions to grow key crops such as grain and oil crops through an eco-friendly, high-yield, and efficient approach, accelerating the integrated utilization of fertile fields, good seeds, high-quality machines, and useful methods and management systems. Secondly, supporting the revitalization of the seed industry. An allocation of 11 billion yuan will continue to support the seed source related key core technology R&D of key varieties such as corn and soybeans, and be used to carry out integrated pilot projects for the research, development, promotion and application of major varieties, implementing policies such as incentives for counties with significant seed production. Thirdly, supporting the promotion and application of agricultural equipment. This year, an allocation of 24.6 billion yuan will support the subsidization for purchase and application of agricultural machinery and strengthen the implementation of the scrapping and replacement of old agricultural machinery, which is included in the new round of large-scale equipment upgrades that I just mentioned.   

Third, we focus on providing support to enhance services and improve the agricultural service system. The main aspects include: Firstly, increasing support for socialized services. An allocation of 8.8 billion yuan will support various regions in providing commercial agricultural services to help solve the problem of "who will farm." Secondly, strengthening the foundation of agricultural talent. An allocation of 5.8 billion yuan will support the implementation of the Shennong elite project, a national program for fostering strategic scientists in agriculture, and the Touyan project that prepares leaders for rural revitalization, as well as programs to develop competent farmers, accelerating the cultivation of agricultural talent adapted to agricultural development. Thirdly, strengthening agricultural credit guarantee services. An allocation of 4.2 billion yuan in fund for rewards and subsidies will offer support for the national agricultural credit guarantee system to innovate and improve products related to grain production, processing and circulation. As of the end of March, there were 1.13 million projects under guarantee, with a balance of 398 billion yuan under guarantee.

Fourth, we focus on creating synergy of policies to improve the grain production income guarantee mechanism. There are four points: Firstly, ensuring the income of grain farmers. An allocation of 185.2 billion yuan will be used to continue subsidies protecting cultivated land fertility, subsidies for corn and soybean producers, and rice-related subsidies, and to increase the minimum purchase price for wheat and early indica rice. We implement policies to reward and subsidize domestic soybean crushing and processing and stabilize soybean planting expectations. Secondly, strengthening support for major grain-producing areas. This year, 57.1 billion yuan has been allocated for incentive funds in major grain-producing counties, achieving 19 consecutive increases. An allocation of 56.2 billion yuan for agricultural insurance premium subsidies will ensure the comprehensive implementation of the policy to insure the full cost and planting income of three major grain crops. Thirdly, fully supporting agricultural disaster prevention, reduction and relief efforts. Carrying out the approach of spraying pesticides, germicides, plant growth regulators and foliar fertilizers to prevent plant diseases, insect pests, and dry-hot wind hazards is very important for wheat production during the spring plowing season. We have allocated 1.6 billion yuan in advance to carry out this work. In the first quarter, more than one billion yuan was allocated to support the efforts in response to the impact of rain, snow, freeze and drought. We strengthened the assessment of crop pest and disease situations and will allocate relevant funds for prevention and control in the near future. Fourthly, improving the diversified input mechanism. We give play to the leverage effect of fiscal funds, innovating investment methods, coordinating with financial policies, and leveraging policy effects.

That is all from me. Thank you.

Zhinews of Shenzhen Satellite TV: 

The scale of government procurement in China is huge and plays an important role in guiding and promoting socio-economic development. What new measures will be taken in government procurement next to promote innovation and establish a modern industrial system? Thank you.

Li Xianzhong: 

Thank you for your question. In recent years, the MOF has actively utilized government procurement to support technological innovation, green environmental protection, small and medium-sized enterprises (SMEs) and rural revitalization, assisting in the high-quality development of the economy and society. Next, in accordance with the decisions and deployments of the Party Central Committee and the State Council, the MOF will continuously establish and improve a government procurement policy system that conforms to international rules, focusing on supporting the development of new quality productive forces and constructing a modern industrial system. This year, our work will mainly involve three aspects:

First, we will study and establish a cooperative innovation government procurement system. Cooperative innovation procurement refers to the procurement of innovative products that are not currently available on the market and require research and development, with the procurers starting to get involved as early as in the R&D stage, purchasing R&D services first and then purchasing the newly developed products. We summarized the characteristics of this new procurement method: it not only compensates suppliers for their R&D costs but also places orders in the form of a commitment to purchase a certain amount of innovative products, stimulating corporate innovation vitality through sharing R&D risks and jointly exploring initial markets. This approach is conducive to promoting the integrated management of innovative products from discovering demand and R&D to application and promotion, better supporting the innovation of applied technologies and the transformation of sci-tech achievements. Previously, the MOF did research and drafted the interim regulatory measures for cooperative innovation government procurement, and publicly solicited opinions from all parties. The measures are now ready for issuance and will be released in the near future.

Second, we will continue to improve the policies which support government procurement of green products. In recent years, as part of efforts to promote green transformation and upgrade of the building industry, the MOF has worked with relevant departments to adopt policies which support government procurement of green building materials in order to construct higher-quality buildings. Trials have been launched in various places. This year, based on knowledge gained from these trials, the ministry will expand the scope of policy implementation, with the number of trial cities rising from 48 to 100 and the number of green building material products covered by government procurement standards increasing from 75 to 100. By doing so, we will further intensify our support for promoting green buildings and using green building materials. Meanwhile, the ministry will further deepen and expand policies that support government procurement of other green products, strengthening policies and measures involving compulsory or preferential government procurement of eligible green products. All these will ensure that the government continues to leverage its role as a model and leader in procurement of green products.

Third, we will continue to implement policies involving equal treatment of domestic and foreign enterprises in terms of government procurement. Products made and services provided by both domestic and foreign enterprises in China must be treated on an equal footing during government procurement. This has been our consistent policy. In 2021, the MOF issued a notice on implementing policies involving equal treatment of domestic and foreign enterprises in terms of government procurement , reiterating and stressing this principle. Next, we will enhance regular supervision over procurement staff and agencies, and conduct special rectification focusing on their unequal treatment of domestic and foreign enterprises. We will intensify law enforcement and punish by law those who violate laws and regulations. In addition, we will learn from standard international practices and, after research, set up standards for government procurement of products made in China, aiming to better ensure the implementation of policies involving equal treatment of domestic and foreign enterprises in terms of government procurement.

That's all from me. Thank you.

National Business Daily:

It was proposed in this year's government work report that starting this year ultra-long special treasury bonds will be issued for the next several years. These bonds will be used to implement major national strategies and build up security capacity in key areas. One trillion yuan of such bonds will be issued in 2024. My questions are: What has the MOF done in regard to ultra-long special treasury bonds? And what is being planned for the next step? 

Wang Jianfan:

Thank you for your questions. The issuance of ultra-long special treasury bonds is a major strategic decision made by the CPC Central Committee and the State Council, which is of great importance when it comes to building a great country and achieving national rejuvenation. With examination and approval by the National People's Congress, the MOF has included in the budget for 2024 the revenue and expenditure generated from ultra-long special treasury bonds in 2024. Meanwhile, the preparatory work for ultra-long special treasury bond issuance has made steady progress. The ministry has actively participated in making an action plan to support the implementation of major national strategies and enhance the country's capacities to ensure security in key areas.

For the next step, with a focus on implementation, the MOF will closely coordinate and cooperate with relevant authorities in all work involving ultra-long special treasury bonds.

First, we will promptly issue ultra-long special treasury bonds according to their project allocations. Based on the bond market demand and the implementation timetable of projects supported by ultra-long special treasury bonds, we will scientifically design bond variety and maturity, so that the bond issuance will match the projects' timespan. Meanwhile, we will coordinate the issuance of general treasury bonds and special treasury bonds, ensuring that they are issued at the right pace and satisfying funding needs for projects supported by special treasury bonds. 

Second, we will strengthen coordination between central and local government funds, and between existing funds and the increase of funds. With funds raised from the issuance of ultra-long special treasury bonds, they will form a synergy so that their overall effectiveness is enhanced.

Third, we will study and establish supervision mechanisms based on funds raised from the issuance of ultra-long special treasury bonds. We will strengthen supervision over the whole process of fund allocation, distribution and utilization, ensuring the funds are well regulated and used in a safe and efficient way.

Xie Yingjun:

The last question, please.

Jimu News:

Macroeconomic data shows that the economy has continued to recover and improve in the first quarter of this year. Could you please elaborate on the specific areas where proactive fiscal policies will focus in the next phase to reinforce this positive economic momentum? Thank you.

Wang Dongwei:

Thank you for your question. Let me answer it. This year's government report explicitly states that we should appropriately enhance the intensity of our proactive fiscal policy and improve its quality and effectiveness. By observing the fiscal revenue and expenditure in the first quarter, it is evident that fiscal policy has been proactively deployed efficiently and quickly in order to provide robust support for the continued improvement and recovery of the economy. Moving forward, the MOF will focus on six key areas:

First, we will fully support sci-tech advancements to lead industrial innovation. In line with national strategic requirements, we will increase investments in basic research, applied basic research and cutting-edge research. We aim to accelerate the implementation of major national sci-tech projects, support research on disruptive and frontier technologies and advance the development of critical technologies. We will implement structural tax cuts and fee reductions, focusing on supporting sci-tech and manufacturing innovation. Moreover, we will coordinate the use of special fiscal funds and government investment funds to foster the growth of strategic emerging industries and accelerate the transformation and progression of traditional industries.

Second, we will focus on boosting domestic demand. We will coordinate the effective use of policy instruments such as government bonds, special local government bonds and central budget investments to drive the expansion of effective social investment. Meanwhile, we will implement and refine fiscal and tax support policies, actively promote replacing old durable goods, like cars and home appliances, so as to encourage expanding domestic consumption.

Third, we are committed to actively supporting the improvement and enhancement of the public's welfare and livelihood. In education, our focus is on increasing funding for high school education to meet the financial needs of students. We will promote the high-quality and balanced development of compulsory education, advocate for widespread and enhanced public-interest preschool education and ensure that vocational schools meet fixed standards. We will also push forward the development of world-class universities with Chinese characteristics and superior disciplines. In terms of social security, we will enhance subsidies for basic pension insurance funds, elevate public health service standards, vigorously implement first-rate employment policies and assist people in need. Regarding environmental protection, we will continue to effectively combat pollution. There are two significant points to highlight. First, we have established subsidy funds for the shelterbelt program in northwest, north and northeast China to support key projects in ecosystem restoration and management; second, we have created special funds dedicated to the disposal of electrical waste and electronic products to promote the comprehensive use of resources.

Fourth, we are committed to enhancing food and energy security at a higher level. We will increase incentives for major grain-producing counties, achieving a "19th consecutive increase" in funding to effectively motivate key production areas to prioritize agriculture and grain production. Additionally, we will enhance support for agricultural insurance premium subsidies and expand insurance coverage for major agricultural products. We will actively support efforts to ensure a stable energy supply and price stabilization, promote the sustainable development of renewable energy, encourage an increase in the production of unconventional natural gas and take multiple measures to improve energy security.

Fifth, we will promote coordinated urban and rural regional development. We will implement and improve fiscal and tax policies, vigorously promote new urbanization, support local governments in moving faster to grant permanent urban residency to eligible people who have moved to cities from rural areas, facilitate the implementation of major regional strategies and increase support for special regions such as old revolutionary base areas, ethnic minority regions and border areas.

Sixth, we will strengthen budget execution management and financial operation monitoring. We will direct local authorities and relevant departments to promptly refine allocated budgets into specific projects, enabling rapid release of policy effectiveness and maximizing the benefits of fund utilization. Simultaneously, we will enhance fiscal revenue and expenditure analysis to ensure that at the primary level basic living needs are met, salaries are paid and governments function smoothly. In addition, we will resolutely implement austerity measures for party and government organs, reinforce budget execution constraints and promote the safe and standardized use of fiscal funds.

While focusing on the six aspects outlined above, we will also adhere to the decisions and arrangements of the Party Central Committee and the State Council to better coordinate development and security, to continuously advance the prevention and resolution of local government debt risks, to accelerate the implementation of plans to defuse risks and to promote the reform and transformation of local government financing platforms in a classified manner.

That's all for my response to this question. Thank you.

Xie Yingjun:

Thank you to all of the speakers of your briefings. Thank you to all the journalists for your participation. Today's press conference is now concluded. 

Translated and edited by Xu Xiaoxuan, Zhou Jing, Guo Yiming, Ma Yujia, Wang Yanfang, Wang Ziteng, Yuan Fang, Yang Xi, Zhang Junmian, Xiang Bin, Liu Sitong, Li Xiao, Wang Wei, Wang Yiming, Li Huiru, David Ball, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Ms. Guo Tingting, vice minister of commerce

Mr. Yang Tao, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM)

Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM

Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM

Ms. Ji Xiaofeng, a person in charge of the Department of Foreign Investment Administration of MOFCOM

Chairperson:

Mr. Xie Yingjun, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 19, 2024

Xie Yingjun:

Ladies and gentlemen, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). Today, we have invited Ms. Guo Tingting, vice minister of commerce, to brief you on China's commerce work and performance in the first quarter of 2024, and to take your questions. Also present today are Mr. Yang Tao, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM); Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM; Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM; and Ms. Ji Xiaofeng, a person in charge of the Department of Foreign Investment Administration of MOFCOM.

Now, I'll give the floor to Ms. Guo for her introduction. 

Guo Tingting:

Friends from the media, good afternoon. Thank you for your long-term interest in and support for the commerce work. Now, I'll brief you on China's commerce performance in the first quarter of 2024. It has been widely noted that the national economy got off to a good start in the first quarter, and the performance of commerce was also generally stable with an optimized structure, contributing to sustained economic recovery and growth.  

Consumption remained the primary driving force behind economic growth. In the first quarter, China's gross domestic product (GDP) increased by 5.3% year on year, with final consumption expenditure contributing 73.7% and driving GDP growth by 3.9 percentage points. Sales of upgraded goods saw rapid growth. In the first quarter, total retail sales of consumer goods grew by 4.7%, with retail sales of sports and entertainment products and communication equipment by enterprises above designated size growing by 14.2% and 13.2%, respectively. Service consumption continued to unleash its potential. Consumers' demand for quality and diverse "experiential" consumption constantly rose. In the first quarter, retail sales of services increased by 10%. Catering consumption remained buoyant, growing by 10.8%.

Foreign trade got off to a stable start. In the first quarter, trade in goods reached 10.2 trillion yuan, surpassing the 10-trillion-yuan mark for the first time in a single quarter, and the growth rate stood at 5%, marking a new high for the past six quarters. The contribution rate of net exports to economic growth rose to 14.5%. In terms of goods, exports of mechanical and electrical products grew quickly, exports of labor-intensive products also performed well, and exports of textiles and garments as well as furniture and its components increased by 5.4% and 23.5%, respectively. Driven by domestic demand, imports of energy and integrated circuits grew by 8% and 14.3%, respectively. In terms of markets, emerging markets remained vibrant, with imports from and exports to Belt and Road partner countries growing by 5.5% in the first quarter. Developed markets showed signs of recovery, with growth in imports and exports related to the U.S. increasing by around 5.5 percentage points compared to the same period last year. As for market entities, the number of foreign trade enterprises with import and export records increased by 8.8% in the first quarter, with the number of private enterprises growing by 10.4%, accounting for 85.3% of the total. A recent survey on key foreign trade enterprises conducted by MOFCOM showed that in March, the proportion of enterprises reporting employment increases reached 88.8%, growing by 1.7 percentage points compared to the previous two months. This indicates further strengthened confidence and expectations of enterprises.

In terms of attracting foreign investment, the "Investment in China" series of activities has been enthusiastically received. The inaugural flagship event alone attracted more than 140 representatives from foreign enterprises and business associations across 17 countries and regions. In the first quarter, 12,000 foreign-funded enterprises were newly established, an increase of 20.7%. As for the investment structure, investment in high-tech manufacturing in the first quarter accounted for 12.5%, an increase of 2.2 percentage points compared to the same period last year. Investment in the service industries closely related to people's lives also achieved rapid growth. In terms of the investment scale, utilized foreign investment reached 301.67 billion yuan in the first quarter, remaining at a historically high level.

Outbound investment maintained stable development. In the first quarter, non-financial outbound direct investment reached 242.92 billion yuan, an increase of 12.5%. Investment in the ASEAN and the EU grew rapidly by 36.7% and 34.5%, respectively. Investment in leasing and business services, manufacturing, and the wholesale and retail industry increased by 45.5%, 36.4% and 14.9%, respectively. The value of newly contracted projects stood at 330.64 billion yuan, an increase of 11.9%, with completed turnover reaching 230.13 billion yuan, an increase of 6.1%.

Next, MOFCOM will continue to thoroughly implement the decisions and deployments of the Communist Party of China (CPC) Central Committee and the State Council. Focusing on the three important positions of the commerce work (namely commerce work being an important component of the domestic economy, serving as a vital link between the domestic and international economic flows, and playing a crucial role in creating a new development pattern), we will strive to continue to expand consumption, ensure the overall stable performance of foreign trade and foreign investment, and promote high-level opening-up. We will also take multiple measures to advance high-quality development of commerce, thus providing strong support for achieving higher-quality economic growth and appropriately increasing economic output.

That's all for my introduction. Now, my colleagues and I are ready to answer your questions. Thank you. 

Xie Yingjun:

Thank you, Ms. Guo. Now the floor is open to questions. Please identify the news outlet you work for before asking your question.  

China Financial and Economic News:

The 135th China Import and Export Fair is currently being held. Could you please describe the current situation at the Canton Fair? Thank you.

Guo Tingting:

Thank you for your attention to the Canton Fair. The 135th Canton Fair is currently being held. Recently, Chinese Premier Li Qiang inspected the fair and presided over two consecutive symposiums, engaging in in-depth exchanges with overseas buyers and representatives from firms participating in the fair. This fully reflects the significant importance the CPC Central Committee and the State Council attach to the Canton Fair and foreign trade.

We will fully implement the decisions and deployments of the CPC Central Committee and the State Council to ensure the success of the Canton Fair. This aims to provide more high-quality products for consumers worldwide, offer more cooperation opportunities for enterprises globally, and inject new momentum into the recovery of the global economy and trade.

Today is also the last day of the first phase of the 135th Canton Fair, which has been characterized by four main features in terms of exhibitor and participant attendance as well as negotiations.

First, there has been a high attendance of overseas buyers. As of yesterday, approximately 120,000 overseas buyers attended the fair, marking a 22.7% increase over the previous session. Second, the composition of exhibitors has been further optimized. The number of national-level high-tech enterprises and specialized single-product manufacturers attending the first phase increased by 33% compared to the previous session. The number of high-tech enterprises involved in smart living, the "new three" (namely electric vehicles, lithium-ion batteries, and solar cells), and industrial automation rose by 24.4%. Third, the exhibits have better reflected the development of new quality productive forces. Over 90,000 AI products were displayed during the first phase of the fair, and transactions involving industrial automation equipment and new energy vehicles significantly increased, with some even doubling from the previous session. Fourth, the functionality of online platforms has been further improved. The online platforms of the fair continue to operate regularly. Up to yesterday, about 294,000 buyers from 229 countries and regions participated in the fair online.

I would also like to extend another invitation to our media friends here. The Canton Fair will continue with its second and third phases, which will be held in Guangzhou from April 23 to 27 and May 1 to 5, respectively. These phases will showcase consumer goods, gifts, decorations, textiles, and other products. We welcome everyone to continue following and providing in-depth coverage of the fair. Thank you.

Jimu News:

Economic and trade cooperation is an important part of the Belt and Road Initiative (BRI). What achievements has China made in deepening economic and trade cooperation with its BRI partners in the first quarter? What are the highlights?

Yang Tao:

Since the beginning of this year, the Ministry of Commerce has thoroughly implemented the guiding principles of General Secretary Xi Jinping's important speeches on BRI cooperation and earnestly implemented the eight major steps to support high-quality Belt and Road cooperation. It has continued to deepen economic and trade cooperation with BRI partners. Some new progress and achievements have been made in this regard, which are mainly reflected in the following four aspects:

First, economic and trade cooperation got off to a good start. In the first quarter, China's trade in goods with BRI partners exceeded 4.8 trillion yuan, an increase of 5.5%, 0.5 percentage point higher than the overall growth rate of foreign trade, accounting for 47.4% of total imports and exports. In terms of exported goods, there are not only high-tech products related to enterprise production, such as electronic information, instruments, apparatus, and equipment manufacturing, but also consumer products that meet everyday needs, like household appliances and clothing. Regarding imports, we actively share the opportunities of China's enormous market with our BRI partners. China's imports of industrial products from its BRI partners, including energy and mineral products, integrated circuits, and auto parts, continued to increase in the first quarter.

Second, outbound investment saw steady growth. In the first quarter, China's non-financial direct investment in BRI partners reached 54.32 billion yuan, an increase of 12%, accounting for 22.4% of total outbound investment in the same period. China's investment in RCEP countries increased by 33.5%, and its investment in Central and Eastern European countries increased by 41.3%, both significantly higher than the overall growth rate of outbound investment.

Third, for project construction, we have ensured stability while improving quality. In the first quarter, the turnover of China's contracted projects in BRI countries reached 184.6 billion yuan, an increase of 7.9%. Cooperation projects have also become more environmentally friendly. In the first quarter, the turnover from energy conservation and environmental protection projects increased by 18.4%, 12 percentage points higher than the segment's overall revenue growth. For example, we have completed a number of photovoltaic power station projects in the Middle East, West Asia, Central Asia, and other regions, which will provide green and clean energy to the local areas.

Fourth, the development of cooperation mechanisms has accelerated. In terms of free trade agreement negotiations, we successfully held the fifth round of negotiations on Version 3.0 of the China-ASEAN Free Trade Area (FTA) and signed an early harvest arrangement for the China-Honduras Free Trade Agreement (FTA). In terms of cooperation in emerging areas, we signed six memorandums of investment cooperation in green, blue, and other fields with the United Arab Emirates, Angola, and the Maldives. In terms of exhibition platforms, the recently concluded fourth China International Consumer Products Expo and the 135th Canton Fair have attracted many exhibitors from BRI partners. Exhibitors from BRI partners participating in the Canton Fair increased by 46%, and companies from partner countries accounted for 64% of the participants in the import exhibition of the fair.

Next, we will implement the decisions and plans of the CPC Central Committee and the State Council and strive to ensure that the economic and trade cooperation established at the third Belt and Road Forum for International Cooperation delivers results. Efforts will also be made to enhance cooperation in trade and investment, project construction, and emerging areas, to provide robust support to deepen and solidify BRI cooperation. Thank you.

Cover News:

This year, China launched a year-long program to stimulate consumption. The first quarter has ended. What trends have been observed in the consumer market? What measures will the Ministry of Commerce take to promote consumption? Thank you.

Xu Xingfeng:

Thank you for your interest in our efforts to promote consumer spending. Ms. Guo has already briefed us about the consumer market's contribution to economic growth in the first quarter, so I will not repeat it here. Regarding your question about the new characteristics of the consumer market, they can be summarized as follows:  

First, growth has been stable. This is primarily reflected in bulk consumption such as automobiles, home appliances, and home furnishing. In the first quarter, new car sales grew 10.6% year on year to 6.72 million, including new energy vehicles, which increased by 31.8% year on year. Retail sales of home appliances by businesses above designated size grew 5.8% year on year, 1.1 percentage points higher than total retail sales. The building materials sector also saw a positive turnaround, with the growth rate of retail sales increasing from -7.8% at the end of last year to 2.4% in the first quarter.

Second, demand has been strong, particularly evident in service consumption. In the first quarter, retail sales of services grew by 10.0% year on year, six percentage points higher than goods. Per capita consumption expenditure on services grew by 12.7% year on year, accounting for 43.3% of per capita consumption expenditure. Catering revenue grew by 10.8% year on year to 1.34 trillion yuan.

Third, there have been multiple highlights, mainly reflected in new types of consumer spending. In the first quarter, China's online retail sales totaled 3.3 trillion yuan, up 12.4% year on year. Online retail sales of physical goods rose 11.6% to 2.8 trillion yuan, contributing 23.3% to China's total retail sales. The concept of green consumption has also gained popularity among consumers, with sales of green and organic food by key retail enterprises monitored by the ministry growing by about 14% year on year.

These are the three major characteristics of the consumer market in the first quarter: stable growth in bulk consumption, strong demand for services, and multiple highlights in new types of consumer spending.

China has launched a year-long program to stimulate consumption this year, as outlined in the government work report. Following the decisions and plans of the CPC Central Committee and the State Council, we actively promote relevant work. The overall approach involves adopting relevant policies and organizing activities to promote consumption. Regarding policies, we will adopt a problem-oriented approach, focusing on addressing bottlenecks and difficulties in the circulation sector. We will introduce a series of policies to boost consumer confidence. We have already introduced policies concerning trade-in of consumer goods, digital consumption, catering consumption, rural e-commerce, and recycling of renewable resources. Moving forward, we will continue to focus on the development of international consumption center cities, the innovative development of service consumption, and the construction of a modern commercial circulation system, and we will continue to introduce relevant policy measures.

In terms of activities, as previously introduced to the press, we are organizing a series of pro-consumption activities throughout the year to benefit all. We will arrange weekly scenarios, monthly events, and seasonal themes. When organizing these activities, we focus on four aspects. First, we organize activities during festivals and holidays. For example, we have already held pro-consumption events during the Spring Festival and Qingming Festival, and plan to organize such events during the upcoming May Day holiday as well, with enriched festive atmosphere. Second, we are emphasizing the integrated development of industries. Everyone knows that various sectors, including commerce, tourism, culture, sports and health, are moving toward integrated development. Following the Spring Festival, the 110th China Food and Drinks Fair was held in Chengdu, mixing exhibitions with tourism, music, and gourmet food to promote consumption in different scenarios. Third, we are highlighting key product categories. For key products related to trade-ins for old consumer goods, such as automobiles, home appliances and home furnishing, we will continue to carry out promotional activities. Fourth, we are emphasizing local characteristics. For example, Beijing's consumption season highlights local culture and cuisine, while Guangxi's "33 Consumption Festival" has fully integrated local ethnic cultures. Meanwhile, Fujian's pro-consumption campaign has showcased local cultural heritage. Thank you. 

CCTV:

The World Trade Organization (WTO) has published full-year data on merchandise trade for 2023. China stabilized its market share in imports and exports, maintaining its position as the world's largest nation in goods trade for the seventh consecutive year. How does the Ministry of Commerce view the current foreign trade situation and its future outlook? Thank you.

Guo Tingting:

Thank you for your question. In 2023, despite facing multiple difficulties and challenges, China withstood pressure and maintained its size and market share in foreign trade, showing strong growth resilience. China has remained the top trading country in goods for the seventh straight year. In 2023, its share of world exports stood at 14.2%, the same as in 2022. The country's share of world imports reached 10.6%, slightly higher than in 2022. In the first quarter of this year, China's imports and exports of goods rose by 5%, maintaining steady recovery and growth. Achieving such results amid slower global trade growth was no easy feat.

Looking ahead to the next phase of foreign trade, we generally feel that there are both opportunities and challenges. The opportunities can be summarized into the following three positives aspects:

First, the domestic economy's recovery and growth have been boosted, establishing a solid foundation. Foreign trade performance is closely related to the domestic economy. In the first quarter, the national economy grew by 5.3%, and the value added of industrial enterprises above designated size increased by 6.1%. This provides a solid foundation for consolidating the fundamentals of foreign trade.

Second, business expectations continue to improve, with increasing confidence. In March, the Purchasing Managers' Index (PMI) for China's manufacturing sector reached 50.8%, re-entering the expansion zone. A recent survey of over 20,000 exhibitors at the Canton Fair showed that 81.5% of the respondents reported an increase or stability in their order books, a 16.8 percentage point increase compared to the previous session. Enterprises are relatively optimistic about their order situations and are more actively exploring international markets.

Third, key industries are stabilizing and showing positive momentum, with increasing strength. After a downward cycle lasting two years, the electronic information industry is gradually recovering in terms of trade in its main products. In the first quarter, China's integrated circuit industry grew by 24.2%, imports increased by 14.3%, and exports of computers and components grew by 8.6%. This also demonstrates our capabilities in industrial support and integration.

From the perspective of challenges, they are notably reflected in three areas:

First, there is a slowdown in the expected growth of external demand. Recently, the World Trade Organization released its "Global Trade Outlook and Statistics" report, lowering the projected growth rate of world merchandise trade volume for 2024 to 2.6%, 0.7 percentage point lower than the forecast in October last year.

Second, the risks from geopolitical conflicts are increasing. The Ukraine crisis has experienced prolonged fluctuations, the impact of the Palestinian-Israeli conflict continues to spill over, and the blockade of the Red Sea route has already altered global shipping patterns, thereby increasing risks to oil supply. Additionally, this year is a "super election year" globally, bringing various uncertainties.

Third, there is a rising trend of trade protectionism. In our surveys and discussions with foreign trade enterprises, many of them have expressed that certain countries are politicizing trade issues, establishing trade barriers, and disrupting global industrial and supply chain stability. As a result, enterprises face increased interference and greater difficulties in market development.

Currently, in accordance with the decisions and plans of the CPC Central Committee and the State Council, the Ministry of Commerce is actively collaborating with local governments and departments to develop and implement a series of targeted, practical and effective measures to support stable foreign trade. These measures are designed to enhance the capabilities of foreign trade enterprises and expand their market presence. We are confident in our ability to achieve this year's goals of improving quality, increasing quantity, and ensuring the stability of foreign trade. We are committed to contributing to the promotion of sustained economic recovery and long-term development. Thank you.

China Daily:

In recent years, we have observed changes in the structure of China's export products. How does the Ministry of Commerce view the issue of trade structure, and what is the outlook for trade growth this year? Thank you.

Li Xingqian:

Thank you for your questions. In recent years, the structure of China's exports has been undergoing optimization and upgrading. In terms of product structure, there has been positive momentum in exporting high-tech, high value-added, and environmentally friendly products that are driving green and low-carbon transformation. Taking the "new trio" of electric vehicles, lithium-ion batteries, and photovoltaic products as examples, their combined exports grew by 88.4% in 2022 and increased by 27.6% in 2023, surpassing 1 trillion yuan in export scale. At the same time, we see many Chinese foreign trade enterprises focusing on enhancing their independent research and development capabilities and advancing digitalization, smart transformation, and green transformation. This has led to the formation of an innovation advantage in China's manufacturing industry.

From the perspective of trade modes, the proportion of China's general trade exports has continued to increase, reaching 64.6% in 2023. This reflects the ongoing enhancement of China's independent development capabilities in foreign trade. The processing trade is transitioning from traditional manufacturing processes to higher value-added activities like design and maintenance. In 2023, high-tech products accounted for 53% of China's total exports in the processing trade.

From the perspective of market distribution, our trading partners have become more diverse. In 2023, the proportion of China's exports to emerging markets rose to 55.3%. We have also strengthened trade ties with countries participating in the Belt and Road Initiative. In the first quarter of this year, the proportion of exports to these countries further increased to 46.7%.

Considering the export performance of the first quarter, we see three sectors with innovative vitality and potential for sustained growth.

First, the foundation for exports of complete sets of equipment is robust. Chinese industries, such as automotive and equipment manufacturing, have consolidated innovative achievements along both long and complete industrial chains. If some components or functional systems are considered individually, they are full of creativity and technological sophistication. I'll briefly mention two examples: in-car voice systems in automobiles are rapidly advancing toward the domain of AI. Meanwhile, forklifts commonly used in factories and warehouse logistics are progressively becoming electrified and unmanned, undergoing iterative upgrades.

Second, the demand for smart products is growing. Chinese export products increasingly employ special and sophisticated technologies to produce novel and unique products, delving deeper into segmented fields. Smart products, such as robots, are favored by consumers. In the household appliance sector, there has been an emergence of floor-cleaning robots, pool-cleaning robots, lawn-mowing robots, and high-rise building window-cleaning robots in response to demand, each featuring its own advanced technology. In the field of industrial robots, China is also an important exporter and application market. According to statistics from the International Federation of Robotics, the annual average growth rate of robot installations in China from 2017 to 2022 was 13%. Customs data indicate that China's industrial robot exports increased by 86.4% in 2023.

Third, low-carbon, energy-saving, and environmentally friendly products are highly popular. Currently, environmentally friendly food trays and straws made from biodegradable materials have replaced disposable plastic products and become the market's mainstream choice. Biodegradable tableware made from bagasse is well-received in exports, resulting in bagasse becoming more expensive than sugarcane. In some areas, such as air-source heat pump equipment, which is more energy-efficient, it can save energy by 75% compared to traditional electric heating or coal-fired boilers. These products are selling well in the European market. New textile fabrics that can be dyed without water save water and energy in the dyeing process and do not emit wastewater, which customers deeply appreciate.

At the same time, we need to recognize that traditional labor-intensive products still hold competitive advantages. In the first quarter, China's export of labor-intensive products increased by 9.1% year on year; among them, exports of textiles and garments, plastic products, and furniture and parts grew by 5.4%, 14%, and 23.5%, respectively. "Made in China" is currently evolving into "Created in China." New export growth poles will continue to emerge, and we are confident in achieving this year's goals of steadily increasing the volume and enhancing the quality of foreign trade. Thank you.

CMG Voice of China: 

Since last year, data on China's foreign investment attraction have shown certain fluctuations. How does the Ministry of Commerce view the current situation of investment attraction? What further steps will be taken? Thank you.

Ji Xiaofeng: 

Thank you for your questions. From the perspective of overall global, transnational investment and the economic situation in various countries, fluctuations in FDI are a normal phenomenon. To comprehensively assess the situation of foreign investment attraction in China, we need to consider not just changes in scale but, more importantly, the optimization of the structure and its prospects.

First, let's consider changes in the scale of investment attraction. In the first quarter of this year, China attracted over 300 billion yuan in foreign investment. During the same period last year, China reached its highest quarterly volume of foreign investment attraction. There has been a slight decrease this year due to the impact of a high base. Additionally, in the first quarter of this year, China saw the establishment of 12,000 new foreign-funded businesses, an increase of 20.7% year on year, maintaining the trend of rapid growth in new enterprises since last year. Foreign investment typically involves a process from project signing and company registration to construction completion and operation commencement. As foreign capital arrives progressively with the pace of project construction, fluctuations in data during this process are commonly observed. The increase in the number of new enterprises is an indicator and will support future investment inflows.

Second, let's consider the optimization of the investment structure. In the first quarter of this year, the utilized foreign investment in China's manufacturing industry reached 81.06 billion yuan, with 37.76 billion yuan being attracted to the high-tech manufacturing sector. Both figures accounted for a higher proportion of total investment attraction than in the same period last year, increasing by 2.3 and 2.2 percentage points, respectively. Investment attraction growth in some advanced manufacturing sectors has also been relatively fast. For example, attracted investment in the medical equipment manufacturing industry remarkably increased by 169.7% year on year, fully demonstrating the continuous optimization of China's investment attraction structure.

The basic trend of China's economic recovery and long-term improvement generally remains unchanged. With the continuous advancement of China's new quality productive forces and the gradual effects of a series of policies aimed at stabilizing the economy, promoting openness, and attracting foreign investment, the conditions and environment for foreign investment in China are expected to continue improving. Recently, the American management consulting firm Kearney's Global Business Policy Council released its 2024 Foreign Direct Investment Confidence Index (FDICI). In this index, China rose from seventh to third place last year, reflecting multinational corporations' continued willingness to expand their investments in China.

Next, MOFCOM will thoroughly implement the arrangements of the Central Economic Work Conference and the government work report, mainly advancing our work in five areas. First, we will relax foreign investment access. We will downsize the negative list for foreign investment access in a reasonable way, comprehensively abolishing access restrictions in the manufacturing sector and easing market access in the medical, telecommunications and other service sectors. We will also revise the catalogue of industries for encouraging foreign investment, add and supplement encouraging items, and provide broader space for foreign investment in China by "reducing restrictions and increasing incentives." Second, we will enhance investment promotion. We will ensure the success of major events with the theme of "Invest in China," strengthen our promotional efforts at abroad to attract foreign investment, boost targeted investment in areas such as advanced manufacturing, strategic emerging industries, digital and intelligent technologies, and green technologies, and continuously optimize the industrial structure of foreign investment. Third, we will strengthen services and support. We will leverage the role of special task forces for crucial foreign-funded projects, make good use of roundtable discussions for foreign-funded enterprises as well as the system for collecting and handling their issues and demands, communicate with these enterprises in a candid and practical manner, and promptly address their difficulties and problems. Fourth, we will build open platforms. We will align with international high-standard economic and trade rules, implement the plan to deepen the construction of the Integrated National Demonstration Zone for Opening up the Services Sector, and introduce a new round of open and innovative policy measures in other pilot provinces and municipalities in due course. As a series of activities will be held this year to commemorate the 40th anniversary of the establishment of the first batch of national economic and technological development zones, we will promote the innovation and upgrading of these zones and strengthen their role as platforms for attracting investment. Fifth, we will optimize the investment environment. Recently, the "24 Measures for Foreign Investment" have been continuously implemented, including policies to promote cross-border data flow and to optimize payment services, which have been widely praised by foreign-funded enterprises. Next, we will continue to promote the implementation of these measures, conduct another evaluation on it in due course, and truly transform policy measures into tangible benefits for foreign-funded enterprises. Thank you.

Nanfang Daily, Nanfang Plus:

Recently, MOFCOM and other departments released the Action Plan to Facilitate and Encourage Trade-ins of Consumer Goods. Could you please elaborate on how this action plan will be implemented? And what tangible benefits can ordinary consumers expect from this plan?

Xu Xingfeng:

Thank you for your interest in trade-ins of consumer goods. With the approval of the State Council, MOFCOM and 13 other departments issued the action plan and held a work promotion meeting jointly with relevant departments. We are working together with other departments and local governments to promptly implement the plan. Currently, Guangdong, Zhejiang, Shandong, Hunan, Shanxi and other regions have already issued detailed measures. Automobile, home appliances and furnishing companies involved in trade-ins have responded positively and launched preferential packages. We are also organizing local events, as part of the "National Campaign on Consumer Goods Trade-ins," across the country to make the policy widely known. The first event was launched in Haikou during the 4th China International Consumer Products Expo. We will work with relevant departments to specify policy measures and improve operational procedures as soon as possible, in a bid to make the process simpler and more precise.

You are concerned about the benefits consumers can expect from trade-ins. The action plan is a major decision made by the CPC Central Committee and the State Council, and we are actively promoting its implementation. As trade-ins involve millions of households and the vital interest of the people, we respect consumers' wishes and respond to their demands in policy design, aiming to give them a sense of gain. The benefits are reflected in the following aspects.

When it comes to automobiles, selling or scrapping an old car and buying a new one is an action by the people. We will expand and extend this point throughout the entire chain of automobile circulation and consumption, aiming to make our citizens more satisfied. Specifically, the first thing is that buying cars will be more cost-effective. Currently, companies are responding actively and offering promotional discounts. Policy packages and a combination of measures will be introduced, offering benefits from various aspects such as finance, taxation, credit and insurance to reduce the cost of buying cars, making them more affordable. Second, more convenient services will be provided for the people to use cars. We will improve infrastructure such as charging stations, parking facilities and intelligent transportation. We will carry out pilot reforms on automobile circulation and consumption, supporting the development of industries focused on car modification, leasing, RV camping, sports events and classic cars. Third, selling cars will be more worry free. We will advance nationwide efforts to rescind all local policies that restrict sales of non-local second-hand vehicles, in order to stimulate demand for second-hand cars and enable car owners to sell their cars at more satisfactory prices. A second-hand car information inquiry platform will be established to make car information more transparent and car prices more reasonable, allowing people to buy second-hand cars with the same confidence as buying a new one. Consumers will be happier if they can buy used cars with better conditions and more guaranteed after-sales services at the same price. Fourth, it will be more convenient to scrap cars. The final step in automobile circulation is scrapping. We encourage dismantling companies to collect cars door-to-door so that it's more convenient for car owners to surrender their to-be-scrapped vehicles for disposal. Overall, it will be more cost-effective for consumers to buy cars, and more convenient services will be provided for them to use, sell and scrap cars.

In terms of home appliances, home furnishing and decoration: First, we will prioritize the convenience of consumption. People have no place to put old furniture they want to keep, there is no one to collect household appliances that people want to throw away, and people do not have anywhere to stay temporarily when renovating their homes: these are all difficulties facing ordinary people in their daily lives. We will encourage the creation of "storage rooms," "recycling stations" and "relocation houses," as well as "internet + recycling" and "one-stop collection of old items, delivery of new ones, disassembly and assembly" to take the worry out of renovation. Second, we will prioritize information transparency. Nowadays, people are living healthier lives and want green building materials, while elderly people require senior-friendly renovations. However, some consumers do not know which building materials are green and which elderly-friendly products are up to the mark. We will work with relevant departments to initiate activities to introduce green building materials into rural areas, dynamically improve the catalog of elderly-friendly home furnishings, and promote "demonstration home decoration rooms" within shopping malls, communities and platforms so that consumers can obtain information through multiple channels. Third, we will prioritize smart technologies and convenience, with a focus on smart homes. Nowadays, smart homes are rapidly developing and have entered thousands of households. However, there is still insufficient compatibility between smart products of different brands, and sometimes people have too many remote controls. Next, we will work with relevant departments to speed up the improvement of compatibility standards and promote the application of smart products in more living scenarios. Fourth, we will prioritize living environment optimizations. We will organize and carry out actions to promote safe home improvements in communities and improve after-sales service for home appliances, so as to boost satisfaction and confidence in consumption.

Next, we will continue to listen widely to opinions and suggestions of various parties, and do our best so that consumers can get genuine benefits. We also welcome friends from the media and consumers to supervise the implementation and effects of the policies. Thank you. 

The Poster News APP:

MOFCOM has established a roundtable mechanism for foreign-funded enterprises, and organized and convened a number of roundtable meetings for foreign enterprises this year. Could you please introduce the results of the roundtable meetings for foreign enterprises in providing them with service guarantees? What are the plans going forward?

Ji Xiaofeng:

Thank you for your questions and interest in the roundtable events. In accordance with the plans of the CPC Central Committee and the State Council, in July 2023, MOFCOM relied on the foreign trade and investment coordination service mechanism to upgrade and establish a roundtable meeting system for foreign-funded enterprises to further strengthen regular communication and exchanges with foreign-funded enterprises and foreign business associations. The roundtable meetings do not set restrictions and foreign companies are encouraged to speak freely. After the meetings, the problems and demands reported by the companies are compiled and managed with follow-ups on the results, which has been highly praised by foreign-funded companies. Overall, the roundtable meetings have played three kinds of roles:

First, the roundtable meetings built unimpeded channels of expression and fully listened to the opinions and suggestions of enterprises. So far, MOFCOM has held 24 roundtable meetings for foreign-funded enterprises, with more than 600 foreign-funded enterprises and foreign business associations participating. To date, nine meetings have been held this year, including roundtable meetings held overseas to communicate with foreign companies in Germany, France and Denmark, and roundtable meetings held domestically and themed around such fields as medicine and consumer goods. At the roundtable meetings, MOFCOM, together with relevant departments, acquired detailed understandings of the issues, demands, opinions and suggestions of foreign-invested enterprises from various countries and industries, through face-to-face, point-to-point consultation, providing an important reference for formulating policies and optimizing services.

Second, the roundtable meetings have strengthened policy interpretation and fully publicized China's business environment. Since last year, we have relied on activities such as roundtable meetings to explain comprehensive policies, such as the 24 specific pro-foreign investment measures and the new action plan issued by the General Office of the State Council to attract foreign investment, special policies targeting cross-border flows of data and environmental protection, and regional opening-up policies including the ones for promoting integrated economic development of Chengdu and Chongqing. These efforts allow foreign-funded enterprises to have a more comprehensive and in-depth understanding of China's major policies and measures and fully seize new investment opportunities in China.

Third, the roundtable meetings have adhered to a problem-oriented approach and coordinated efforts to resolve pressing difficulties and problems. Based on the pains and difficulties reported by foreign-funded enterprises at the roundtable meetings, MOFCOM established a list of issues and worked with relevant departments to tackle the problems. The establishment of the roundtable mechanism has promoted multiple departments to introduce measures to benefit enterprises, including facilitating foreigners to come to China, outlining clear requirements for cross-border flows of data, and extending preferential policies on tax-deductible allowances and subsidies for foreign nationals in accordance with relevant national regulations.

Moving forward, MOFCOM will give further play to the role of the foreign investment enterprise roundtable meeting system, and build the roundtable meetings into an important platform for candid communication, pragmatic exchanges and problem-solving between the government and enterprises. Thank you.

Xie Yingjun:

The final question, please.

China News Service:

Green and digital transitions represent new driving forces and emerging trends in foreign trade development. Could you please elaborate on the specific manifestations of these eco-friendly and digital practices in the current foreign trade landscape? What measures will the Ministry of Commerce take to further enhance green and digital transitions? Thank you.

Li Xingqian:

Thank you for your questions. Green and digital transitions are shaping the direction and future of international trade development, serving as pivotal drivers for innovation and structural upgrading in foreign trade.

In terms of promoting green trade development, Chinese foreign trade enterprises are at the forefront of global carbon reduction practices and actively promote the development of green and low-carbon products and services. In the design, research and development phase, Chinese foreign trade enterprises carry out green product evaluation and certification based on green design product standards, emphasizing emissions reduction, low carbon, and recyclability of the products. During raw material procurement, recyclable resources and degradable materials are increasingly used in foreign trade products. In the manufacturing process, Chinese enterprises actively participate in trading of green electricity and green certificates, strengthen energy conservation and carbon reduction management, and conduct technological process improvements, so as to reduce the carbon footprint of foreign trade products. Taking Zhejiang province as an example. In the first quarter of this year, Zhejiang's green certificate trading volume was equivalent to 5.94 billion kilowatt-hours of electricity. In the logistics and warehousing sector, an increasing number of enterprises have begun to use new energy heavy-duty trucks and ships for transportation, which helps reduce carbon emissions in foreign trade transportation and delivery.

In the field of green development, we need to accomplish tasks in four aspects. First, we need to focus on popularization. We should provide training for enterprises, explain regulations, and interpret policies to enhance the green and low-carbon awareness and development abilities of foreign trade enterprises. Second, we need to build a platform. We need to provide a regular public service platform for society. Third, we should promote typical examples. We need to select typical cases nationwide and promote experiences and practices. Fourth, we need to foster cooperation. We should strengthen communication and consultations through bilateral and multilateral channels to expand the market space for green products.

In terms of enhancing the level of digitalization in trade, digital technologies are currently penetrating the entire process and various phases of trade, injecting new impetus into the development of international trade. In the production phase, traditional production lines have been upgraded and transformed with intelligent technology, significantly improving customized, low-volume production capabilities. In the marketing stage, digital technology helps our foreign trade enterprises accurately target customers, lower transaction costs, and enhance their ability to expand markets and cultivate brands. In the logistics phase, after digitalization, by using electronic trade documents, the document processing speed has been significantly improved by 80%, and the operating cost has been reduced by 30%. For customer services, Chinese foreign trade enterprises have been using remote supporting tools and conducting smart diagnosis, which greatly improved the efficiency of after-sales services such as preparing spare parts and distribution. In addition, we collaborate with relevant departments to promote digital upgrades in various aspects of trade, including improving customs clearance efficiency and providing more convenient financing support for foreign trade enterprises.

In the field of trade digitalization, we need to focus on four key areas. First, we should encourage more trade entities to use electronic trade documents and promote interconnectivity between enterprises on the document platform. Second, we need to accelerate the building of the Guangdong-Hong Kong-Macao Greater Bay Area as a pilot zone for global trade digitalization and explore connectivity of digital infrastructure, rules and standards to speed up the digital integration of the entire trade chain. Third, we need to nurture leading enterprises in digital transformation, and provide digital solutions for small- and medium-sized enterprises. Fourth, we will leverage bilateral and multilateral platforms to strengthen digital trade cooperation with our trading partners, and jointly explore more application scenarios of digitalization in the trade sector. Thanks.

Xie Yingjun:

Thank you to all the speakers and journalists. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Huang Shan, Yan Xi, Zhang Junmian, Cui Can, Liu Sitong, Liu Caiyi, Li Huiru, Mi Xingang, Zhang Rui, Wang Ziteng, Wang Wei, Yan Bin, Yan Xiaoqing, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers: 

Mr. Zhu Hexin, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE)

Ms. Wang Chunying, deputy administrator and spokesperson for SAFE

Mr. Zou Lan, director general of the Monetary Policy Department of PBC

Ms. Zhang Wenhong, a person in charge of the Statistics and Analysis Department of PBC

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson for SCIO

Date:

April 18, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zhu Hexin, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE), and Ms. Wang Chunying, deputy administrator and spokesperson for SAFE, to brief us on China's financial performance and foreign exchange receipts and payments data in the first quarter of 2024, and to also take your questions. Also present today are Mr. Zou Lan, director general of the Monetary Policy Department of PBC, and Ms. Zhang Wenhong, a person in charge of the Statistics and Analysis Department of PBC. 

Now, I'll give the floor to Mr. Zhu for his introduction. 

Zhu Hexin:

Friends from the media, good afternoon. Since the beginning of this year, PBC and SAFE have adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and firmly implemented the guiding principles of the Central Economic Work Conference and the Central Financial Work Conference as well as the deployment of the "two sessions" (the annual gatherings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference). We have comprehensively applied various policy tools to support the economic recovery. First, we lowered the required reserve ratio by 0.5 percentage points, and released more than 1 trillion yuan of medium- to long-term liquidity, maintaining a reasonably ample liquidity in the banking system. Second, we appropriately cut interest rates, reducing re-lending and re-discount interest rates for the rural sector and small businesses by 0.25 percentage points . We guided the cut of over-five-year loan prime rate (LPR) by 25 basis points , with the decrease exceeding market expectations. Third, 500 billion yuan of Pledged Supplementary Lending (PSL) was issued, supporting three major projects, namely the construction of government-subsidized housing, the building of dual-use public infrastructure that can accommodate emergency needs and the redevelopment of urban villages. Fourth, we launched a 500-billion-yuan re-lending program for scientific and technological innovation and technological transformation, and fully implemented the decisions and deployments made by the CPC Central Committee and the State Council to advance a new round of large-scale equipment upgrading and consumer goods trade-in programs . Fifth, we promoted stable performance of the foreign exchange market. We adopted comprehensive measures to keep the RMB exchange rate basically stable, and enhanced policy support for foreign exchange facilitation in cross-border trade and investment. In addition, we steadily promoted high-level foreign exchange opening up and facilitated the development and reform of foreign exchange business in banks in an orderly manner. 

As of now, the policies have yielded notable results, mainly reflected in the following aspects. First, the total finance volume has increased steadily. By the end of March, aggregate financing grew by 8.7%, with an addition of 12.9 trillion yuan in the first quarter. The M2, or broad money, increased by 8.3%, with an addition of 12.5 trillion yuan in the first quarter. The balance of RMB loans grew by 9.6%, with an increase of 9.5 trillion yuan in the first quarter. These figures indicate that the financial sector maintains stable support for the real economy. Second, financing costs experienced a steady decline. In the first quarter, the interest rates on new enterprise loans stood at 3.75%, down by 0.22 percentage points year on year. Particularly, the interest rates on new individual housing loans registered 3.71%, down by 0.46 percentage points year on year. Third, the credit structure continued to improve. By the end of March, loans provided by financial institutions to high-tech manufacturing industries, inclusive loans to micro and small businesses, loans to the rural sector and loans to the private sector grew by 27.3%, 20.3%, 13.5%, and 10.7% year on year, respectively. These rates were all significantly higher than the overall loan growth rate of 9.6%. Fourth, credit maintained a steady pace. In the first quarter of 2023, financial institutions exhibited rapid loan issuance. However, efforts have been made since the second half of last year to guide a balanced distribution of credit, easing the phenomenon of financial institutions rushing to meet deadlines. In the first quarter of this year, the proportion of loan issuance was returning to the historical average level, ensuring ample room for credit growth in the next three quarters. Fifth, the foreign exchange market demonstrated strong resilience. There is considerable focus on the steady increase of RMB against a basket of currencies, with the RMB exchange being stable relative to other global currencies. Additionally, cross-border capital flows were generally balanced, and foreign exchange reserves were generally stable. 

Overall, a series of monetary policies introduced earlier are gradually taking effect, leading to a sustained recovery and a good start for the national economy. There is still room for monetary policy adjustment in the future. We will closely monitor the effects of these policies as well as the progress of economic recovery and goal attainment, thereby judiciously utilizing reserve tools as opportunities arise. 

Ms. Wang will brief you on specific data regarding foreign exchange receipts and payments in the first quarter of this year.

Wang Chunying:

Good afternoon, everyone. Now, I'll brief you on detailed data regarding foreign exchange receipts and payments in the first quarter of 2024. Since the beginning of this year, the external environment has remained complex and fluid, while the Chinese economy maintained recovery momentum. As Mr. Zhu just said, the foreign exchange market demonstrated strong resilience, cross-border capital flows were generally stable and market expectations and transactions remained rational and orderly. 

As for specific data, in the first quarter of this year, the cross-border receipts and payments by non-banking sectors stood at $1.6586 trillion and $1.6555 trillion, respectively, resulting in a surplus of $3.1 billion. Foreign exchange settlement and sales by banks registered $542.2 billion and $567.0 billion, respectively, creating a deficit of $24.8 billion . Here are five specific characteristics:

First, cross-border capital posted small amounts of net inflow. In the first quarter, banks registered a surplus in the balance of foreign-related receipts and payments on behalf of clients. Cross-border capital saw net inflow in January and February, however net outflow occurred in March. This result can be attributed to seasonal factors. In particular, after the Spring Festival, foreign trade enterprises resumed production and procured raw materials in large amounts. Driven by increasing demand for payments for imports, cross-border payments rose. Although, cross-border receipts are expected to grow after products are exported. 

Second, banks saw a small deficit in foreign exchange settlement and sale business. In the first quarter, the monthly average deficit reached $8.3 billion. The bank foreign exchange settlement on behalf of clients decreased by 3% year on year; and foreign exchange sales were almost the same as for the same period in 2023. Currently, enterprises enjoy greater convenience in accessing RMB funds and there are more diverse channels. For example, through a type of foreign exchange swap, enterprises can convert part of foreign capital into RMB for use and agree to convert it back in the future, to replace and reduce a portion of foreign exchange settlement for the current period. 

Third, the foreign exchange settlement ratio and the foreign exchange sales rate both fell but were generally stable. Enterprises showed reasonable willingness in foreign exchange settlement and sales. In the first quarter, the foreign exchange settlement ratio, a measure of customers' willingness to settle foreign exchange, stood at 62.2%, a slight fall of 1.6 percentage points year on year, showing somewhat weakened demand; and the foreign exchange sales rate, a measure of customers' willingness to buy foreign exchange, stood at 66.5%, down 1.8 percentage points, showing that the willingness to buy foreign exchange did not continue to rise. In recent years, domestic entities gradually got used to the two-way fluctuations of RMB exchange rates, with expectations for forex rates being more stable. Enterprises' foreign exchange settlement and sales mainly depend on actual demand. Foreign exchange transactions have become substantially more reasonable. 

Fourth, the scale of forex derivative transactions continued to expand. Business entities' awareness of exchange rate risk neutrality continued to improve. In the first quarter, enterprises managed exchange rate risks through forex derivatives, including forwards, swaps and options, to the amount of $395.8 billion, up 23% year on year; and the proportion of enterprises conducting hedging operations was 28.1%, up 3.2 percentage points from the same period in 2023. In January and February, more than 5,000 enterprises received forex rate risk hedging services for the first time. 

Fifth, the volume of China's foreign exchange reserves remained basically stable. As of the end of March, China's forex reserves reached $3.2457 trillion, a $7.7 billion increase from the end of 2023. The increase is mainly influenced by changes in forex rates and asset prices along with other factors impacting the valuation. 

That is all from me on forex receipts and payments in the first quarter of 2024. 

Shou Xiaoli:

Thank you both for your introductions. Now the floor is open for questions. Please identify the news outlet you work for before asking your question. 

CCTV:

My questions are concerning the vitality of business entities. In order to invigorate business entities, this year's government work report came up with an array of arrangements. What concrete measures have been taken to provide convenient financing services for business entities? And what specific results have been achieved so far? Thank you. 

Zhu Hexin:

Thank you for your questions. They are good ones. Financial institutions and financial policies all aim to serve the real economy and the healthy development of business entities. General Secretary Xi Jinping pointed out that the financial sector should insist on its fundamental purpose of supporting the real economy. To examine the effectiveness of financial support for the real economy, we should understand how convenient it is to access financial services and how satisfied business entities are with the services. Operating in China's super large economy, business entities should better leverage the domestic and international markets and resources. Since the beginning of this year, the PBC and SAFE have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, insisted on serving the real economy as the fundamental purpose, and focused on improving convenience of services for business entities, making efforts and achieving remarkable results in the following aspects: 

First, streamlining government administration, delegating power and continuing to improve the business environment. We made headway in optimizing approval procedures, reformed 10 items related to enterprise business licenses, amended regulations and normative documents, and implemented the notification and commitment system for certain administrative approval items. We improved services regarding changes to basic accounts and cancellation of bank accounts, and promoted one-stop government services. Also, we further improved government transparency and emphasized the need to fully listen to the ideas of business entities while collecting suggestions for policy making. 

Second, focusing on private and micro, small and medium enterprises and clearing the way for channeling funds into the real economy. In terms of loans, we fully exerted the roles of refinancing, rediscounts and instruments that support inclusive loans to micro and small businesses. We guided financial institutions to increase loans to private and micro, small and medium enterprises to reduce their financing costs. Related data was introduced in the opening remarks. In general, the growth of loans to private businesses and micro and small businesses were both noticeably higher than the average growth of all kinds of loans. In terms of debts, we removed obstacles so enterprises can issue bonds for financing smoothly, and more corporate bonds were issued. In the first quarter of this year, more than 3.65 trillion yuan of debenture bonds were issued, up 3.5% year on year. As of the end of March, instruments supporting private enterprises in bond financing had supported 143 private businesses in issuing more than 251.5 billion yuan of bonds. There are large numbers of micro and small businesses and private enterprises, and they use a lot of bills. In this regard, we optimized the bill business and related functions to help enterprises accelerate capital turnover and ease the pressure caused by invested funds. In the first quarter, more than 144,000 micro, small and medium enterprises issued bills, accounting for 93.2% of all enterprises that issued bills; and 169,000 micro, small and medium enterprises went through bills discounted transactions, accounting for 96.5% of all enterprises conducting such transactions. 

Zhu Hexin:

Third, integrating efforts in both domestic and foreign currencies, and facilitating cross-border trade and investment. Cross-border RMB transactions continue to become more convenient. We have introduced a range of supportive policies for cross-border RMB transactions, including initiatives to stabilize foreign trade and investment, foster innovative offshore trade practices, facilitate new forms of foreign trade, and digitize capital account transactions. At the same time, we are advancing pilot projects for integrated domestic and foreign currency fund pools in an orderly manner. In the first quarter, nearly 30% of China's cross-border settlements for goods trade were conducted in RMB. For four consecutive months, the RMB has held its position as the fourth global payment currency. Notably, data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) indicates a further increase in the share of RMB, reaching nearly 4.7%.

Measures aimed at easing foreign exchange transactions have yielded significant results. Specifically, they involve optimizing the processing of foreign exchange receipts and payments in trade. We guide prudent and compliant banks to provide more convenience for high-quality enterprises regarding their forex receipts and payments in trade. In the first quarter, transactions totaling over $300 billion were facilitated through streamlined procedures. Recently, we have introduced six policy measures to enhance the registration and management of foreign trade enterprise directories and simplify trade-related receipts and payments procedures for companies operating within special customs supervision zones. Notably, the registration and management of directories of enterprises involved in trade-related forex receipts and payments, previously requiring the approval from SAFE, are now handled by banks directly, further optimizing foreign exchange procedures for foreign trade enterprises. According to our tally, more than 100,000 business entities are set to be benefited.

We have enhanced the pilot programs for advancing high-quality openness in cross-border trade and investment. Based on the insights gained from previous pilot projects in four regions, we have broadened the scope to include Shanghai, Jiangsu, Guangdong (including Shenzhen), Beijing, Zhejiang (including Ningbo) and the entirety of Hainan province. This expansion is aimed at further streamlining foreign exchange receipts and payments, reducing administrative burdens, cutting paperwork, lowering costs and boosting efficiency for businesses. In the first quarter, transactions totaling nearly $80 billion were processed under the pilot initiative.

We have supported the development of new formats and models in trade. Banks and payment institutions are encouraged to process trade settlements based on electronic transaction information from new business models like cross-border e-commerce. In the first quarter, a total of 230 million related transactions were processed, involving over 1.2 million small and micro businesses.

We have conducted reforms in bank forex business in an orderly manner. This involved redesigning forex business procedures in banks, resulting in a 50%-75% average time reduction in facilitated forex transactions.

Furthermore, we have strengthened promotion of the concept of exchange rate risk neutrality and updated the guidelines for enterprise exchange rate risk management. We have supported enterprises, especially micro, small and medium enterprises, in managing exchange rate risks more effectively. In the first quarter, the proportion of forex derivative transactions in bank-client transactions reached nearly 30%, representing an increase of 3.9 percentage points from the previous year.

Next, the PBC and SAFE will continue raising the quality and standards of financial services. We will intensify policy evaluation and follow-up efforts to ensure that our policies are effective. Our aim is to assess the impact of various policies during implementation, ensuring that they truly empower businesses, enhance their competitiveness, and ultimately guarantee that the policies are translated into action to benefit enterprises and individuals and fully unleash the innate drive and vitality of diverse business entities, supporting high-quality economic development. Thank you.

21st Century Business Herald:

How does the PBC view the M2 balance surpassing 300 trillion yuan at the end of March? What are the PBC's plans for addressing the issue of funds sitting idle or simply circulating within the financial sector? Regarding inflated balance sheets, what measures will the PBC take to curb this trend?

Zou Lan:

I will answer your questions. The broad money supply (M2) balance has now surpassed 300 trillion yuan, reflecting sustained financial support for the growth of the real economy in recent years. China has experienced prolonged periods of rapid economic growth, resulting in continuously expanding economic size and quickly accumulating enterprises capital and residents assets. These changes have fueled increased demand for money. Corresponding to the stage of economic development, China has sustained a prolonged period of rapid, double-digit growth of monetary and credit supply, fostering an environment conducive to economic development. During the three years of the pandemic in particular, in order to stabilize the overall economy, the financial sector intensified its efforts in counter-cyclical adjustments. Overall, the current stock of money is indeed substantial.

China is currently accelerating its economic restructuring, transformation, and upgrading. There have been significant changes in the supply-demand relationship in the real estate sector, and efforts have been strengthened to prevent and control local government debt risks. The economy continues to go light, with credit demand showing signs of weakening compared to previous years, and the credit structure undergoing optimization and upgrading. However, relevant parties are still going through a process of understanding and adaptation to these changes. Some banks remain fixated on pursuing a scale-driven operating model and internal assessments, exceeding the genuine financing needs of the real economy. Additionally, some enterprises, capitalizing on their advantageous positions, utilize low-cost loans for investment in wealth management products and fixed-term deposits or relend to other enterprises. Consequently, their primary business operations fail to generate profits, and financial activities become their main source of income, resulting in funds sitting idle or simply circulating within the financial sector, thereby reducing fund utilization efficiency. In response, this year's government work report timely proposed measures to "prevent funds from sitting idle or simply circulating within the financial sector."

Relevant departments will strengthen efforts to monitor the phenomenon of funds simply circulating within the financial sector and improve management assessment mechanisms. In the future, as the economy undergoes transformation and upgrading, effective demand recovers and social expectations improve, the phenomenon of funds sitting idle or simply circulating within the financial sector will also be alleviated. The current rapid growth in the total money supply may slow down, leading to some disturbances in the data, making it inappropriate for simple year-on-year comparisons. However, this does not imply a reduction in the intensity of financial support for the real economy. Instead, efficient enterprises in genuine need of funds will receive more financing, reflecting an enhancement in the quality and effectiveness of financial support. Thank you for your questions.

CNBC: 

The decline in social financing at the beginning of the year has raised concern among analysts about weak demand. What is the PBC's view of this? Thank you.

Zhang Wenhong:

I will answer this question. Thank you for your question. As Mr. Zhu mentioned earlier, aggregate financing stood at 390.32 trillion yuan by the end of March, representing an 8.7% increase year on year. This growth rate was 0.3 percentage points lower than the end of previous month. Social financing in the first quarter increased by 12.93 trillion yuan, 1.61 trillion yuan lower than the same period in 2023, primarily due to a high base last year. However, looking at data from the same period in previous years, the increase in social financing in the first quarter of this year was still at a relatively high level. From a structural perspective, there are four main features:

First, credit supply remained steady, with financial institutions maintaining a reasonable growth in RMB loans issuance to the real economy. In the first quarter, RMB loans issued by financial institutions to the real economy increased by 9.11 trillion yuan, which was 1.59 trillion yuan less than in 2023, but 773 billion yuan more than in 2022.

Second, financing through issuance of government bonds remained at a reasonable scale. In the first quarter, net financing through issuance of government bonds reached 1.36 trillion yuan. Although the increase narrowed slightly compared with the previous year, it was roughly in line with the average for the same period from 2020 to 2023.

Third, debt financing by enterprises experienced growth. In the first quarter, net debt financing by enterprises was 1.12 trillion yuan, up by 255.1 billion yuan year on year.

Fourth, off-balance-sheet financing, such as trust loans and undiscounted bankers' acceptance bills, also increased year on year. In the first quarter, trust loans and undiscounted bankers' acceptance bills increased by 198.3 billion yuan and 550 billion yuan, respectively, with respective year-on-year growth of 202.4 billion yuan and 81.4 billion yuan.

Overall, the social financing scale growth in the first quarter basically aligned with this year's projected economic growth and CPI increase. Achieving a growth rate of 8.7% on a high base from last year was actually quite robust. Moreover, this year, the PBC has emphasized guiding financial institutions to ensure balanced credit growth. Although there was a slight year-on-year decline in the first quarter in the increase of aggregate financing, it was still at a relatively high historical level, which has bolstered the real economy while enhancing the sustainability of credit growth by avoiding a lack of momentum at excessively high levels. Thank you.

Securities Times:

Since the fourth quarter of last year, foreign institutions have started to significantly increase their holdings of Chinese domestic bonds. Can you introduce the specific situation? And what is the outlook for foreign investors in the Chinese bond market? Thank you.

Wang Chunying: 

Thank you for your questions. Regarding the increase of recent foreign capital inflows into Chinese domestic bonds, I would like to share the following points: 

First, the scale of investment has increased significantly. Last year, the net increase in foreign bond holdings was $23 billion, while in the first quarter of this year, it already reached $41.6 billion. As of the end of March, over 1,129 foreign institutions from over 70 countries and regions had entered the Chinese bond market, with their bond holdings surpassing $570 billion, accounting for approximately 2.6% of the total domestic bond custody, up 0.2 percentage points from late last year. Second, the investment structure remains reasonable. The holding entities, including foreign central banks and financial institutions like banks, increased their holdings of China's domestic bonds in an orderly manner, especially medium- to long-term bonds such as government bonds and policy financial bonds. Our statistics show that between October last year and March this year, foreign investment in bonds with a term of over one year accounted for 56% of the total. Third, the investment yields remain stable. 

Looking ahead, the trend of foreign institutions' investment in China's domestic bonds is likely to maintain steady growth. I would like to elaborate on a few aspects. 

From an economic perspective, first, the macro environment provides support. The underlying trend of long-term economic growth remains unchanged, with various macro policies providing momentum for continued domestic economic recovery, offering foreign investors a sound macroeconomic environment. Second, the investment value is assured. The RMB exchange rate remains stable, and RMB assets have shown unique returns compared to global assets, helping investors diversify risk. Additionally, China's bond market is the second largest in the world, is growing in terms of breadth and depth, and has strong liquidity, which enhances the investment value of RMB bonds. Third, there is demand for global allocation. The use of RMB in global cross-border transactions has been steadily increasing. Mr. Zhu already shared the latest figures. The increasing international influence of RMB makes RMB assets an important choice for foreign investors' global portfolios.

From a policy perspective, the PBC and SAFE will continue to pursue market-oriented, law-based and internationalized development, steadily expanding the opening-up of China's bond market, and facilitating the participation of foreign investors. We are currently working on the following areas. First, we are opening repurchase operations to more foreign institutions, enriching liquidity management tools for foreign investors. Second, we continue to promote the domestic RMB bonds in offshore markets as widely accepted and qualified collateral. Earlier this year, bonds under the Bond Connect program were allowed as the eligible collateral for the RMB liquidity facility. We are also exploring additional scenarios, such as using bonds under Bond Connect as margin for Swap Connect. Third, we are optimizing the mechanisms for overseas institution's direct market entry, Bond Connect and Swap Connect, while continuing to enhance communication and exchange with foreign institutions, creating a better investment environment. Overall, China has continued to improve the institutional opening-up of the financial market, optimized the investment environment and refined services. Foreign capital investing in China's bond market has stable and sustainable room for improvement. Thank you.

Cover News:

The current account has always played an active role in stabilizing China's balance of payments and the foreign exchange market. What is your judgment on the future development trends of China's current account? Thank you.

Wang Chunying:

Thank you for your question. Your question is also our concern. Current account transactions are closely linked to the real economy. The balance of trade in goods and services under the current account is directly involved in national accounts and plays an important role in maintaining the balance of payments.

Based on the situation in the first quarter of this year, the current account surplus remains within a reasonable and balanced range. According to preliminary statistics, the trade surplus in goods and services exceeded US$60 billion in the first quarter, which for the same period in history is at a relatively high level. With this support, the current account had a remaining surplus in this year's first quarter.

Looking ahead, China's current account has the foundation and conditions to sustain a certain scale of reasonable surplus. We would like to analyze it in the following areas:

First, the trade surplus in goods will remain at a relatively high level. We believe there are two supporting factors. On the one hand, there is structural support, and on the other hand, there is support from cyclical factors. First, there are new growth drivers in exports. With the transformation and upgrading of China's industries, the performance of export with high-end manufacturing products, new energy vehicles, etc. has been very impressive this year. Another feature is our trade methods. New trade models such as cross-border e-commerce, market procurement and other new trade formats continue to expand. In addition, the performance of traditional export markets is relatively stable. At the same time, emerging markets along the Belt and Road are rapidly expanding, and our trading partners are more diversified. From the perspective of cyclical factors, the current demand for increasing inventories in developed economies such as the United States has begun to arise, and the global electronic product consumption cycle has bottomed out. These will further boost exports of various Chinese products.

Second, the structure of trade in services has been optimized, and the role of trade in producer services has become more prominent. Travel is an important component in trade- in services. As residents' cross-border activities resume, cross-border travel expenditure is recovering on a regular basis. On the other hand, China has already adopted a visa-free policy for many countries. At the same time, the PBC, the SAFE, among other departments, are promoting more convenient payment services for overseas visitors, a move that is expected to incentivize increased inbound tourism. In the first quarter of this year, China's travel revenue increased by about 30% year-on-year, and it is expected to continue to maintain an upward momentum. More importantly, in recent years, trade in services has developed with high quality, and exports of producer services have increased steadily. Last year, China's trade surplus in telecommunications, computer, information services and commercial services totaled US$57.2 billion, which was a historic high. It has continued to grow in the first quarter of this year. This will also help the balance of trade in services.

In the medium to long term, the trajectory of a country's current account is shaped by its economic structure and the caliber of its manufacturing sector. First, the current account reflects the relationship between savings and investment. At present, China's savings rate is at a relatively high level. It is anticipated that the positive disparity between savings and investment rates will persist, fostering a reasonable surplus in the current account. Second, as China's manufacturing industry is undergoing transformation, upgrading and high-quality development, it will gradually enhance the competitiveness of our products. This shift is expected to reduce reliance on some imported products, underpinning a stable medium- to long-term outlook for the current account, which encompasses trade in goods. We believe that China's current account is well-positioned to maintain a reasonable surplus moving forward. Thank you.

Bloomberg:

The yuan has experienced sustained pressure against the U.S. dollar this year. Despite recent data indicating a pick-up in China's economic momentum, the currency continues to grapple with a range of unfavorable external influences. How do you foresee the yuan exchange rate performance in the second quarter and what steps might the central bank take to maintain a stable exchange rate for the yuan? Thank you.

Zhu Hexin:

Thank you for your questions. As Ms. Wang Chunying said during her introduction, the RMB exchange rate has remained generally stable recently. Since the beginning of this year, as we all know, the market's expectations for a shift in the U.S. Federal Reserve's monetary policy have been recurring. The dollar index recently reached its highest point of over 106, which is a high in the past six months. The turmoil in the international financial market has intensified. Everyone has also noticed that major currencies such as the Japanese yen, euro, and British pound as well as some other emerging market currencies have experienced growing fluctuations. Affected by external shocks, the exchange rate of the RMB against the U.S. dollar has fluctuated. In fact, the RMB against a basket of currencies has remained stable, and there is still a certain appreciation on the basis of stability. As of the end of March, the CFETS (China Foreign Exchange Trade System) RMB Index was at 99.78, an increase of 2.4% compared with the end of the previous year.

The PBC and SAFE are committed to maintaining the basic stability of the RMB exchange rate, and their objective and determination will not change. The RMB exchange rate has a solid foundation and conditions to remain basically stable. The stability of the exchange rate is closely related to the economic situation. In the first quarter, the economy showed signs of recovery and improvement, reflecting the quality of our economic development and international competitiveness. In the short term, the economy had a good start in the first quarter, improving in multiple areas and accumulating positive factors. This effectively offsets external disturbances and provides support for the RMB exchange rate. Meanwhile, the maturity of our foreign exchange market continues to improve, and its resilience is increasing, which means that the trend of the RMB exchange rate will fluctuate in both directions and maintain relative balance. Looking at the medium and long term, there are even more supporting factors. China's economy has entered a stage of high-quality development, achieving balance in international payments. The depth and breadth of the foreign exchange market will further expand, and risk-neutral awareness among market participants will significantly increase. Our research shows that the risk aversion awareness of market participants is constantly strengthening, their ability to manage exchange rate risks using forex derivatives is improving, and cross-border use of the RMB is steadily growing. The basic stability of the RMB exchange rate has solid macro and micro foundations. We have the confidence, conditions and capabilities to maintain the stable operation of the foreign exchange market.

The PBC and SAFE will adopt a China-centric approach, considering both internal and external balance. We will adhere to a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies for adjustment. We will emphasize the decisive role of the market in determining the exchange rate while continuing to implement comprehensive policies and stabilize expectations. We will closely monitor changes in the foreign exchange market, firmly correct pro-cyclical behaviors, prevent the formation of one-sided expectations and self-reinforcement in the market, and guard against the risk of exchange rate overshooting. We will maintain the RMB exchange rate at a reasonable and balanced level. Thank you for your questions.

Economic Daily:

The Central Financial Work Conference proposed focusing on accomplishing the "Five Major Tasks" and clarifying the future development direction of the financial sector. Could you please clarify what specific new deployments are you referring to? And what are your considerations in the next stage?

Zhu Hexin:

Thank you for your questions. I will answer them. The "Five Major Tasks" have garnered significant attention and high expectations. They are also important measures to implement the directives of the Central Financial Work Conference, and the PBC and SAFE are making every effort to promote them.

The Central Financial Work Conference emphasizes the importance of excelling in technology finance, green finance, pension finance, inclusive finance and digital finance. We refer to these as the "Five Major Tasks," which provide high-quality financial services for socio-economic development. Since the beginning of this year, the PBC has fully implemented the decisions and arrangements of the CPC Central Committee and the State Council. We have pursued a prudent and moderately flexible monetary policy, effectively and precisely leveraging monetary policy tools to address both overall and structural concerns. We have diligently carried out the "Five Major Tasks" and guided financial institutions to increase support for these tasks, as well as key areas and weak links of the national economy, such as the private sector. I would like now to share a set of data with everyone. The credit structure continues to be optimized, with credit growth maintaining a relatively high level. The availability of financing has significantly improved, and financing costs have remained stable with a downward trend. As of the end of March, the year-on-year growth rates for loans in high-tech manufacturing, loans for technology-oriented small and medium-sized enterprises, loans for inclusive small and micro businesses, loans for agriculture-related activities and loans for the private economy were 27.3%, 20.4%, 20.3%, 13.5% and 10.7%, respectively. By the end of 2023, the growth rate of green loans was even higher at 36.5%, significantly surpassing the overall loan growth rate. As mentioned earlier, the overall loan growth rate was 9.6%. The loan approval rate for technology-oriented small and medium-sized enterprises reached 47.9%, more than double the rate in 2017. The number of credit beneficiaries in the inclusive small and micro business sector has exceeded 60 million. In March, the weighted average interest rate for new inclusive small and micro business loans was 4.36%, reaching a historic low. 

With the approval of the central government, the PBC established a credit market department to take the lead in promoting the work of the "Five Major Tasks." Next, we will increase support from various aspects, including policy frameworks, incentives, constraints and the development of financial service capabilities.

First, we will strengthen top-level design and systematic planning to promote the formation of a "1+5" policy framework. The "1" refers to the overall institutional design, while the "5" represents the respective measures of the "Five Major Tasks." We will work together with relevant departments to clarify the work goals, key tasks and implementation pathways. On one hand, we will ensure the effective implementation of policies that have already been introduced. Previously, we, along with relevant departments, issued policies such as the Action Plan to Increase Support for Financing of Technology-oriented Enterprises and the 25 measures to boost financial support for private firms. Recently, the PBC, in collaboration with the National Development and Reform Commission (NDRC) and six other departments, issued the Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development . On the other hand, while three of the "Five Major Tasks" already have a certain foundation, efforts are being intensified to promote the remaining two tasks, namely, pension finance and digital finance. This will contribute to making the institutional design of the "Five Major Tasks" more robust and the policy framework more solid.

Second, policies alone are not enough. We should guide financial resources to focus on key areas through incentive. We need to give full play to structural monetary policy tools, properly use the newly established 500 billion yuan ($69 billion) relending loans for technological innovation and improvements and support small and medium-sized technology enterprises and key sectors in upgrading to digital, intelligent and high-end technologies. Credit lines for inclusive loans to micro and small businesses will be raised to no more than 20 million yuan per borrower , so as to direct more financial resources to accurately invest in inclusive fields. We need to promote and improve financial, statistical indicators in relevant fields, and study and develop the financial service evaluation in key areas such as technology finance and digital finance.

Third, the implementation should rely on financial institutions. We encourage financial institutions to leverage their strengths in organization, management and technology, to use information methods such as the internet and big data, to enhance the capacities in services associated with technology, sustainability and SMEs, to improve the adaptability and inclusiveness of financial services, to actively promote pilot reforms in regional financial innovation in areas such as technology and green finance and to create a typical service model that can be replicated and promoted. 

With top-level design policies in place, incentive and constraint tools are gradually improved, with financial institutions playing a crucial role in providing vitality and resources to the operating entities. Therefore, all departments should work together, link every step and generate synergy, enabling the operating entities to be more dynamic and healthy.

Focusing on the "five priorities" is an important aspect of promoting high-quality development of financial services for the real economy and crucial part of deepening the structural reform of financial supply. The PBC will strengthen cooperation with relevant industrial regulatory departments, fully rally the enthusiasm of financial institutions and continuously enhance the effectiveness of financial support for the "five priorities."

When giving my introduction, some policy tools, especially structural policy tools, are of great concern to everyone. The structural policy tools have played a significant role in supporting major strategies, key areas and vulnerable aspects of national economy. Since Mr. Zou Lan is here today, we invite him to explain more.

Zou Lan:

Mr. Zhu mentioned that the financial sector should take the application of the "five priorities" as a key focus, so as to serve the high-quality development of the real economy and continue to optimize credit structure. This not only reflects the specific implementation of the central government's deployment, but also meets operation and development needs for the financial industry. However, the financial business is usually hard to change. There is still a process of capacity building in optimizing internal assessment objectives and mechanisms as well as improving the quality and efficiency of products and services. In order to encourage financial institutions to optimize their credit structure more quickly, the PBC has been continuously innovating its operations for a period of time. On the basis of the original relending loans, the PBC has set up targeted structural monetary policy tools in the form of preferential interest rates. These tools provide incentives for financial institutions to optimize their products and services and to compensate for certain operational costs that financial institutions may experience in the short term. 

From the operational perspective, commercial banks make their own choices and bear the risks of issuing loans to enterprises in accordance with market-oriented principles; then, the PBC issues relending loans based on the commercial banks' applications and actual loan conditions. Structural monetary policy tools do not change the nature of business when commercial banks provide loans and central banks provide relending loans to commercial banks. This does not mean that the central bank directly or indirectly issues loans to enterprises. We are aware that there have been some misunderstandings in discussions regarding this matter. In terms of implementation principles, structural monetary policy adheres to the principles of "focusing on key areas, being reasonable and appropriate, and advancing and retreating in a timely manner." As of the end of March 2024, the total amount of these tools is 7.5 trillion yuan, accounting for approximately 17% of the central bank's total assets. There are a total of 10 existing tools, which have been continuously integrated and optimized; tool-supported areas have achieved basic coverage of the "five priorities."

That's all from me. Thanks. 

Red Star News:

We have noticed that at the beginning of this year, management approach for bank foreign exchange businesses was implemented. How is the effect so far? What are the follow-up measures to further improve the bank's capabilities for expanding foreign exchange businesses? Thanks.  

Wang Chunying:

Thank you for your questions. The SAFE issued the trial management approach for bank foreign exchange businesses at the end of 2023. The management approach adheres to the principle of "the more trustworthy, the more convenient" and "know your customer." The aim is to explore and promote a process of reengineering for commercial banks' foreign exchange business. It involves setting up a comprehensive business framework that includes customer identification and classification before the business process and differentiating in-process reviews and post-monitoring reports, so as to improve the mechanism of "those who have fulfilled their duties are not held accountable ," and to "reduce the burden" on enterprises and "relief pressure" on banks. Since being implemented over three months ago, the management approach has received positive comments from all sectors of society, with the effects and responses being quite good. 

On the one hand, the reform of foreign exchange business in banks has created a more favorable policy environment which will offer more convenience to trustworthy clients. Mr. Zhu talked about policy support for foreign exchange facilitation in his briefing as well. By the end of this year's first quarter, four banks had participated in the reform's pilot program. These four banks have reduced the average time they spent in handling foreign exchange businesses for their top-tier Category I clients by 50-75%. For example, a lithium-ion battery company used to handle an average of 50 or 60 foreign exchange transactions every month. After being included in the Category I client policy, the business process was streamlined to less than an hour. The policy has made foreign exchange businesses much easier for companies. As such, companies have been benefiting from the reform. Local governments have also expressed their recognition of the reform and welcome it. Overall, the reform of foreign exchange business in banks represents an important measure to facilitate cross-border trade, investment and financing.

On the other hand, the reform of foreign exchange business in banks has been helpful in improving banks' services for cross-border financial businesses. First, it motives banks to integrate their internal information and to know about their clients in a comprehensive manner, so as to identify their target clients and make proper arrangements. Given the large amount of client information in different banks, the reform of foreign exchange business in banks enables commercial banks to integrate the internal information of their clients and to match high-quality services with low-risk clients. Therefore, this provides banks with greater space for product innovation. Second, risk identification has become more efficient. After the reform, banks are able to fully leverage knowledge about their clients from the beginning, allowing them to better fulfill their responsibilities for customer due diligence. Therefore, this will help banks identify risks early on and issue early warnings. Third, the principle that "those who have fulfilled their duties are not held accountable " has been clarified in legislation for the first time. This will thus enable banks to be competent, motivated and capable of engaging in such business, ensuring that facilitation policies can be effectively put into practice. We have released the first batch of 10 explanatory cases to help banks understand the criteria of principles accurately and to avoid unnecessary review. Overall, the logic behind the reform of foreign bank exchange businesses aligns with the direction of banks' business development and meets the requirements of banks' risk control. As such, the reform has been recognized by banks. 

Currently, more banks are preparing for the reform of bank foreign exchange businesses, and reworking the process of foreign exchange businesses. More market entities are expected to benefit from the reform. Going forward, the SAFE will advance the reform in a sound and cautious manner, ensuring that the reform will be implemented only when the necessary conditions are in place. We will intensify endeavors to prevent and control risks in a bid to ensure that the foreign exchange management system and mechanism become more open and safer. 

First, we will enhance policy promotion and guidance, providing tailored guidance for banks which would like to conduct reforms in a bid to reduce their trial-and-error cost. Second, we will introduce guidelines for relevant businesses by establishing a supportive regulatory system focusing on key parts, such as customer due diligence and customer classification, so as to offer specific operation standards for banks. Third, we will keep the case library updated to ensure the mechanism that "those who have fulfilled their duties are not held accountable" can be applied in more situations. We will provide the banks with appeal channels and third-party review mechanism in a bid to ensure inspections and law enforcement on foreign exchange businesses are more transparent and open.

The aforementioned is an overview of the situation regarding foreign bank exchange businesses. We'd love to get the state of affairs in front of a wider audience through media exposure. While "good wine needs no bush," we also afraid of not enough publicity. However, we are unafraid because we have all of you. Thank you.

Yicai:

What was the total amount of credit extended and its allocation in the first quarter of this year? What are the expected changes in credit allocation and distribution in the coming months? Thank you. 

Zhang Wenhong:

Thank you for your questions. The total credit amount and credit allocation are closely watched by all. Mr. Zhu provided an update on data regarding total loan volume in his opening remarks. The total loan volume data across different sectors in the first quarter reveals that the total loan volume has maintained steady and rapid growth. At the end of March, the outstanding balance of yuan-denominated loans held by financial institutions was 247.05 trillion yuan, an increase of 9.6% year on year. In the first quarter, yuan-dominated loans rose by 9.5 trillion yuan, with the new loan additions lower than the same period last year. This is attributed to the high base from the previous year. From a longer-term perspective, the new loan additions in the first quarter of this year outpaced the same period in 2022 by a significant margin of 1.13 trillion yuan. Data shows that financial system's credit support for the real economy has maintained a high level.

In terms of borrowers, loans issued to enterprises and public institutions constitutes the primary source of credit growth. In the first quarter, loans extended to enterprises and public institutions increased by 7.77 trillion yuan, with medium- and long-term loans growing by 6.2 trillion yuan. This trend underscores the financial system's sustained and stable funding support for the real economy. In the same period, household loans grew by 1.33 trillion yuan, which was primarily driven by a 1.29-trillion-yuan increase in business loans.

Speaking of sectoral distribution, new loans were primarily issued to key sectors such as manufacturing, infrastructure and the service industry. The growth rate of loans issued to the real estate sector showed an upward trend. The structure of sectoral distribution of loans is undergoing continuous optimization. The specific details are as follows: 

First, medium- and long-term loans issued to the manufacturing sector continued to grow at a relatively high rate. At the end of March, the volume of medium- and long-term loans issued to the manufacturing industry grew by 26.5%, surpassing the overall growth rate of such loans across all industries by 12.2 percentage points. Notably, medium- and long-term loans to high-tech manufacturing companies increased by 27.3%, marking a 0.8 percentage point rise from the previous month.

Second, medium- and long-term loans issued to the infrastructure industry witnessed a steady growth. At the end of March, the volume of medium- and long-term loans issued to the infrastructure industry increased by 13.4%, with its total amount surging by 1.97 trillion yuan in the first quarter.

Third, a comparatively higher increase was recorded in medium- and long-term lending to the service industry, excluding the real estate sector. This type of lending grew by 13.1% at the end of March, and increased by 2.87 trillion yuan cumulatively in the first quarter, accounting for half of the increase in medium- and long-term lending to all industries. 

Fourth, the growth rate of medium- and long-term loans to the property industry increased. At the end of March, medium- and long-term loans to the real estate sector rose by 4.9%, 0.6 percentage point higher than that at the end of last year. In the first quarter, this type of loans increased by 672.7 billion yuan, with the amount of newly added loans higher than that of the same period last year. 

Going forward, the PBC will follow the arrangements made at the central financial work conference. We will maintain the reasonable and steady growth of credit, continue optimizing the credit structure, focus on improving efficiency, and advance high-quality financial services for key fields and weak links. Thank you. 

Shou Xiaoli:

The final question.

Phoenix TV:

We noticed that the real interest rate has become a hot topic recently. Some people think the rate is relatively high. What is the opinion of the PBC? Thank you. 

Zou Lan:

I'm glad to answer this question. The real interest rate has indeed attracted much attention in the market, which we have also noticed. In earlier years, when talking about the real interest rate, we referred to the interest rate paid by enterprises or residents. However, in addition to the interest rates stated in loan contracts, there were still various fees such as guarantee fees and mortgage registration fees. Therefore, when we mentioned the real interest rate in the past, we meant to lower it by reducing comprehensive financing costs. But this time, people are probably treating it as a theoretical economic concept. Simply put, by deducting the inflation rate from the nominal interest rate, we get the real interest rate which is being discussed this time. Therefore, it is both related to the nominal interest rate and influenced by the inflation trend. In the past several years, the nominal interest rate has continued to decrease, playing a positive role in promoting the overall economic recovery and growth. However, domestic demand is comparatively weak, while at the same time, prices are at a lower level. For example, this January, the year-on-year CPI growth rate dropped for a period to minus 0.8%, which I think is also a major reason why discussion of the real interest rate became heated. The PBC will focus on ensuring stable prices and promoting a mild rebound in prices while implementing monetary policies. It will also put more emphasis on the characteristics and development of inflation indicators. Given that prices are currently at a lower level mainly due to structural and phased reasons, we still need to carry out more in-depth observation and analysis.

From the structural perspective of prices, price indices such as CPI and PPI, as well as the average interest rates on loans, refer to the notion of average figures. However, as the economic structure is transforming and upgrading, old driving forces are being replaced by new ones, and steady progress is being made in pursuing high-quality development, economic and financial indicators in various areas will become even more divided. Against such a backdrop, we need to pay attention to both the average figures and the structural elements. Loan interest rates vary among different sectors and enterprises, and meanwhile, the amount of increases and decreases in their product prices are not the same. Therefore, they have different senses of the real interest rate. For instance, in areas of the service sector such as culture and entertainment, and fields related with new growth drivers, prices have continued an upward trend, and financial institutions are proactively providing financing support. The nominal interest rates in these sectors are comparatively lower. Therefore, after deducting the price increase rate from the financing interest rate, people in these sectors feel that the real interest rate is lower. In contrast, for industries closely related to the real estate sector, such as the ferrous metal industry, their product prices saw comparatively bigger drops. Consequently, financial institutions are more cautious and nominal interest rates are higher, which leads to a relatively higher real interest rate. For areas that currently require tight allocation of financial resources, slightly higher real interest rates can help enterprises control production capacity and reduce inventory to a certain extent. This also demonstrates the requirements made at the central financial work conference on maintaining reasonable and sufficient monetary aggregate and allowing structural adjustments.

From the viewpoint of phased changes in prices, on the one hand, China has sustained its sound economic growth and overall demand is expanding, thereby having the right foundations and conditions for a price recovery. On the other hand, prices for some agricultural products have reached a turning point of adjustment, and tourism and travel have become more frequent, both of which will help promote an increase in prices. Therefore, we are expecting an overall moderate recovery of prices from low levels, and at the same time, real interest rates will also change accordingly. Of course, we still need to pay attention to the range, speed and fluctuations of the recovery.

In general, we still need to comprehensively study and analyze the situation of prices and the real interest rate. A series of measures taken in the previous phase have already taken effect. In the future, we will continue to examine the situation by considering multiple elements, including economic recovery momentum, inflation trends and the advancement in transformation and upgrading. Based on price changes and development, we will maintain the nominal interest rate within a reasonable range and consolidate the momentum for economic recovery and growth. Meanwhile, we also need to fully consider the needs of high-quality development, avoid reducing the motivation of structural adjustments, prevent low interest rates, and avoid involuntary competition intensifying or funds circulating within the financial sector without entering the real economy, which may result in further price decreases or a negative cycle. Thank you.

Shou Xiaoli:

Thank you to all the speakers and journalists for your participation. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Yuan Fang, Liu Sitong, Huang Shan, Qin Qi, Liu Jianing, Wang Yanfang, Yan Bin, Liu Qiang, Liu Caiyi, Zhang Rui, Yan Xiaoqing, Wang Qian, Gong Yingchun, Li Huiru, Zhou Jing, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Shan Zhongde, vice minister of industry and information technology

Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT)

Ms. Tao Qing, spokesperson for MIIT and director general of the Operation Monitoring and Coordination Bureau of MIIT

Chairperson:

Ms. Xing Huina, deputy director general for the Press Bureau of the State Council Information Office (SCIO) and spokesperson for SCIO

Date:

April 18, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). We have invited Mr. Shan Zhongde, vice minister of industry and information technology, to brief you on China's industry and information technology sector's development in the first quarter of 2024, and to take your questions. Also present today are Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT) and Ms. Tao Qing, spokesperson for MIIT and director general of the Operation Monitoring and Coordination Bureau of MIIT.

Now, I'll give the floor to Mr. Shan for his briefing. 

Shan Zhongde:

Ladies and gentlemen, greetings to you all. I'd like to express my gratitude to you for your long-term interest in and support for the development of China's industry and information technology. First, I'll give you an overall introduction in this sector. 

Under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the MIIT has thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, and adhered to the general principle of pursuing progress while ensuring stability. We have actively cooperated with local governments and various departments to front-load efforts to ensure effective implementation, vigorously promoting new industrialization. In the first quarter of 2024, a notable overall pattern emerged: the industrial economy maintained a rapid growth, yielding positive results in high-quality development and achieving a good start overall. This was specifically evidenced in four areas: stable and favorable performance in the industrial economy, accelerated progress in new industrialization, stable growth in information and communication, and ongoing improvement of the business environment. 

First, stable and favorable performance in industrial economy was primarily demonstrated as follows. Industrial production secured rapid growth. In the first quarter, the value added of China's industrial enterprises above designated size grew by 6.1% year on year, an increase of 1.5 percentage points compared to 2023. Key industries such as electronics, chemicals and automobiles made notable contributions to this growth, with prominent industrial provinces and cities playing a major role. The industrial enterprises' profits continue to increase. In the first two months of this year, the profits of the industrial enterprises above designated size increased by 10.2% year on year, marking continuous growth since August of last year. Market expectations are positive. In the first quarter, industrial investment increased by 13.4%, with the number of industrial enterprises above designated size continuing to rise. In March, the manufacturing purchasing manager's index (PMI) bounced back to the expansion zone, reaching 50.8%. In the first quarter, the value added of small and medium-sized industrial enterprises above designated size grew by 7.4% year on year. It can be said that multiple factors drove a continuous improvement in the industrial economy. 

Second, accelerated progress in new industrialization. Consistently taking high-quality development as a top priority, we strive to fulfill the crucial task of achieving new industrialization and vigorously promoting the initiative. We lead industrial innovation through scientific and technological innovation, actively fostering and developing new quality productive forces, constructing a modern industrial system underpinned by advanced manufacturing and fortifying efforts to make the manufacturing sector higher-end, smarter and more eco-friendly. It can be said that new breakthroughs were secured in high-end development. We have coordinated the implementation of projects launched to achieve breakthroughs in core technologies in key fields, industrial foundation reengineering projects as well as research projects focused on major technologies and equipment. Our efforts have brought about new streams of innovation. Notably, an initial prototype for a 300-megawatt F-class heavy-duty gas turbine has been assembled. We have made solid strides in delivering in the initiative of pursuing high-quality development of key manufacturing chains and to build up advanced manufacturing clusters. In the first quarter, the value added of high-tech manufacturing increased by 7.5% year on year. The intelligence level has achieved new improvements. Expedited efforts have been made to advance the four deep integrations between digital technology and manufacturing, digital economy and real economy, information technology and industrialization as well as artificial intelligence (AI) and manufacturing. Currently, 421 national demonstration factories for intelligent manufacturing have been established. The central and local governments jointly introduced a series of polices to support upgrading enterprises with digital and smart technologies. Nearly 10,000 digital workshops and smart factories have been built nationwide. Green development has also made progress. Consistent efforts have been made to drive the green and low-carbon transformation in the industrial structure, with application scenarios for hydrogen energy and new energy storage ways among others, seeing constant expansion. In the first quarter, the market share of new energy vehicles exceeded 31% and energy consumption per unit of industrial added value created by enterprises above designated size in traditional sectors, such as steel and non-ferrous metals, continued to decline.

Third, stable growth in information and communication. In the first quarter, telecommunication businesses' revenue grew by 4.5% year on year. The infrastructure played an ever-growing supporting role. Steady progress was made in the construction of the "dual-gigabit" internet, which features a 5G network and a gigabit optical network. Now, a cumulative total of 3.647 million 5G base stations have been established, 5G penetration rate has exceeded 60% and 207 cities have achieved the standards of gigabit cities, guiding the construction of a hierarchical computing power infrastructure. The empowerment effects of information technologies have continued to grow. 5G applications have been widely adopted in areas such as manufacturing quality inspection and mining production. Applications of the industrial internet have been integrated into 49 major economic categories, forming more than 200 industrial internet demonstration and application programs. Information and communication have played a big role in improving people's well-being. Continued efforts have been made in the governance of apps, strongly and effectively protecting the rights and interests of users. The promotion of demonstration cases for elderly-friendly internet applications have also been further accelerated. 

Fourth, our business environment is constantly improving. We are striving to foster a world-class business environment that is market-oriented, law-based, and internationalized, with a focus on four key areas: enhancing services to enterprises, reinforcing the principal role of enterprises in innovation, facilitating closer collaboration between industry and finance, and promoting open development. In terms of enhancing services to enterprises, we have launched the "Together for the Benefit of Enterprises" initiative aimed at small and medium-sized enterprises (SMEs), and micro-businesses. We have also launched special campaign to settle overdue payments owed to enterprises and established a robust mechanism to address this problem in the long term. Furthermore, we have implemented various policies to support enterprises and listed tasks for reducing their burden this year, focusing on solving the pressing difficulties and problems that concern them most. In terms of reinforcing the principal role of enterprises in innovation, we have been nurturing and expanding high-tech companies and innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We have also been supporting enterprises of all sizes in pursuing development through collaboration with each other in order to spark innovation and boost growth momentum. In terms of facilitating collaboration between industry and finance, we have leveraged the role of the national industry-finance cooperation platform that has helped companies to secure an accumulative finance of over 780 billion yuan. In terms of strengthening open development, we have thoroughly implemented policy measures to remove market access restrictions on foreign investment in manufacturing, further opened up value-added telecom services, and deepened mutually beneficial cooperation with companies worldwide.

Going forward, we will continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council, and fortify our confidence for development, innovation, and opening up. We are committed to opening up the manufacturing sector and promoting open cooperation for a shared future. We will strengthen the integration of scientific and technological innovation with industrial innovation and accelerate the integration of digital technologies with the real economy. We will do our best to stabilize industrial growth, accelerate the development of new quality productive forces, and promote the development of generic technology platforms and pilot-scale testing platforms. We will leverage information technology, digital technologies, smart technologies, and green technologies to advance new industrialization, move the manufacturing sector toward higher-end, smarter, and greener production, continuously consolidate the momentum for recovery and growth of the industrial sector, foster new driving forces for development, and provide solid support for high-quality and sustainable development of the industrial sector.

That concludes my overview of the first quarter. Now, my colleagues and I are ready to answer your questions.

Xing Huina:

Thank you, Mr. Shan. We now move to the Q&A session. Please identify the media organization you represent before raising your questions.

China National Radio:

Since the first quarter of this year, the industrial sector has been speeding up its recovery. How do you look at the current development of the industrial sector?

Shan Zhongde:

Thanks for your question. As I just mentioned, in the first quarter, the value added of China's industrial enterprises above designated size grew 6.1% year on year, marking the highest growth in the past eight quarters and signaling a solid start with rapid industrial development. To answer your question, I would like to further elaborate on three aspects.

First, major industrial provinces and cities, as well as key industrial sectors, have maintained stable growth. Among 31 provincial-level regions in China, 28 recorded year-on-year value-added industrial growth, with nine major industrial provinces such as Jiangsu, Shandong, Zhejiang, Fujian, and Hubei outpacing the national average. Among 50 major industrial cities, Shenzhen, Suzhou, Hefei, Nantong, Taizhou, and Dongguan registered double-digit growth. Major industrial provinces and cities played a crucial role in supporting industrial growth. Key industries are operating steadily and showing signs of improvement. Out of the 41 major industrial categories, 37 sectors, including electronics and automobiles, have seen year-on-year value-added growth, with the proportion of growing sectors expanding by 22 percentage points compared to last year. The equipment manufacturing sector has sustained rapid growth, with its value added growing by 7.6% year on year in the first quarter, contributing 2.4 percentage points to the growth of industrial enterprises above designated size and playing a crucial role in providing support and driving growth. The production of consumer goods has notably improved, with its value added growing by 4.2% year on year in the first quarter, reversing the downturn seen since April 2022. The raw materials manufacturing sector has maintained stable growth, with its value added growing by 7.5% year on year in the first quarter, and with industries such as non-ferrous metals and chemicals outpacing the overall industrial level.

Second, the high-tech manufacturing and emerging industries have maintained rapid growth. Specifically, high-tech manufacturing has shown a noticeable rebound, with its value growing by 7.5% year on year in the first quarter, 2.6 percentage points higher than the fourth quarter last year. Emerging industries have also demonstrated strong growth in key products. For instance, solar batteries grew by 20.1%, while polysilicon and monocrystalline silicon, which are relevant to the photovoltaic industry, saw their growth rates soaring above 50%. Additionally, the production and sales of new energy vehicles grew by 28.2% and 31.8%, respectively, in the first quarter. Furthermore, the MIIT and six other departments jointly issued Guidelines for Promoting the Innovative Development of Future Industries and Guidance for the Innovative Development of Humanoid Robotics, which are aimed at supporting enterprises in exploring new areas and accelerating the development of new quality productive forces. 

Third, there is a continuous accumulation of positive factors contributing to the recovery and growth of the industrial economy. The industrial economy has significant development potential, strong confidence, and robust momentum. The main manifestations include sustained market demand, with manufacturing investment increasing by 9.9% year on year in the first quarter, the export delivery value of industrial enterprises above designated size growing by 0.8% year on year, automobile sales increasing by 10.6% year on year, and consumers' spending on home appliances up 5.8% year on year. Particularly noteworthy is that policies promoting large-scale equipment upgrades in the industrial sector and consumer goods trade-in have accelerated release of market space. Business entities have confidence, as profits of industrial enterprises above designated size have been consistently growing, and private investment in the manufacturing sector has increased by 11.9% year on year. According to a survey conducted by our ministry in the first quarter among 36,000 key enterprises, 76% of them expect their output value to increase or remain stable in the second quarter. The driving force for development is abundant, with the number of industrial enterprises above designated size increasing by 19,000 to reach 501,000 by the end of February compared to the previous year. The efforts made by 178 national high-tech zones in leading and demonstrating high-quality development have achieved remarkable results, and 45 advanced manufacturing clusters have become important forces driving innovation and development in key industries and fields.

Next, we will focus on implementing the requirements of high-quality development throughout the entire process of new industrialization. We will strengthen the deep integration of scientific and technological innovation with industrial innovation, develop high-tech industries, achieve industrialization, cultivate and develop new quality productive forces, and accelerate the construction of a modern industrial system supported by advanced manufacturing. We will adhere to the principle of prioritizing quality and efficiency and solidly promote stable growth, transformation of growth model, increased momentum, and risk mitigation in order to consolidate and enhance the positive trend of the industrial economy's recovery.

I'll just add these details to the question. Thank you.

National Business Daily:

In recent years, the rapid development of the information and communication technology has significantly improved the quality of life of the general public. May I ask about the progress made by the MIIT in promoting the development of the information and communication industry in the first quarter? What are the key areas of focus for the next steps? Thank you.

Zhao Zhiguo:

Thank you for your questions. The MIIT has fully implemented the decisions and plans of the CPC Central Committee and the State Council. Adhering to the general principle of pursuing progress while ensuring stability, the MIIT has been promoting the high-quality development of the information and communication industry and has achieved positive results. In the first quarter, the revenue from the telecommunications sector reached 443.7 billion yuan, with a year-on-year growth of 4.5%, maintaining steady growth overall and laying a solid foundation for the year's work. There are several aspects to highlight:

We have persisted in developing appropriately future-oriented infrastructure. As of the end of March, the cumulative number of 5G base stations built nationwide reached 3.647 million. 5G penetration rate has exceeded 60%, and the number of ports with gigabit network service capability reached 24.56 million. The world's first 400G all-optical interprovincial backbone network officially became commercially available. As we all know, 400G currently represents the fastest and highest transmission speed globally. We have now established and commercially utilized a 400G network, thereby better supporting efficient interconnectivity of computing power and data across different entities, types, and regions.

We have accelerated efforts to make innovative breakthroughs and acted as leaders in the technological industry. Breakthroughs were made at a faster pace in key technologies. The commercial verification of 5G lightweight (RedCap) technology on high, medium, and low-frequency bands was completed. The performance indicators of quantum computing prototypes continued to improve, and breakthroughs were achieved in quantum error correction testing. The industrial strength has been steadily enhanced. In the first quarter, the shipment of 5G mobile phones in our country, reached 56.43 million units, accounting for 83.7% of the total mobile phone shipments during the same period. It can be said that this reflects a significant demand for high-end or smart 5G phones, reaching a share of 83.7%.

We have deepened application empowerment and promoted integrating digital technology into the real economy. In terms of industrial application, 5G technologies have been integrated into 74 out of 97 major categories of the national economy. They have been extensively applied in key sectors such as industry, mining, power, and healthcare. The "5G+ industrial internet" projects exceeded 10,000, and application empowerment has accelerated its expansion into core and control links. Previously, these technologies were primarily applied in peripheral links, but now they are gradually accelerating their expansion into control or core links. In terms of personal application, generative AI has also been widely promoted and adopted in applications such as chatbots, intelligent search, and text generation. In the first quarter, mobile internet traffic increased by 14.3% compared to the same period last year.

We have stepped up efforts to ensure inclusive development that deliver benefits to all and guarantee public services. Telecommunication services have steadily advanced, and by the end of last year, the internet penetration rate in rural areas of our country reached 66%, narrowing the urban-rural gap. Age-friendly products and services have become more accessible, with new application scenarios such as 5G video customer support and payment verification by drawing a pattern continuously emerging and gradually being implemented. Efforts to safeguard people's wellbeing have been continuously intensified. Centering on improving work conduct and rectifying misconduct, we have made every effort to protect users' legitimate rights and interests. In the first quarter, we intercepted a total of one billion scam phone calls and text messages.

Going forward, the MIIT will prioritize high-quality development to consolidate and enhance its competitive advantages and leading position in the information and communication sector. First, we will lay a solid foundation by accelerating the implementation of policies related to large-scale equipment updates and promoting the optimization and upgrading of information infrastructure. We will also promote the coordinated development of computing infrastructure and accelerate the formation of a national unified computing system. Second, we will focus on innovation, which we believe is fundamental. We will integrate 5G with big data, cloud computing, AI, and other technologies to accelerate the evolution of 5G. As we all know, 5G is now evolving to 5G-Advanced (5GA) or 5.5G, and we will accelerate R&D in 6G and 10G optical networks. Third, we will strengthen application efforts by accelerating the promotion of R&D and applications in areas such as big data and AI. We will implement the AI Plus initiative and continue accelerating the industrial internet's large-scale application. Fourth, we will improve supervision by speeding up the issuance of policies and opinions on innovative information and communication industry management, optimizing the business environment, and continuing to create a first-class business environment to better serve market entities. Fifth, we will safeguard security by strengthening technical support, improving industry network and data security management, and promoting the innovative development of the network and data security industry. Thank you.

Red Star News:

The high-end and intelligent development of the manufacturing industry is attracting significant societal attention. Could you please share the work that has been done to promote the development of intelligent manufacturing? What are the considerations for the next steps? Thank you.

Shan Zhongde:

I will answer these questions. Thank you for asking. Intelligent manufacturing is the key technology and primary task for transforming China's manufacturing industry from being large in size to being strong in capability. It focuses on building China's strength in manufacturing and is an important task for promoting new industrialization. We are vigorously advancing intelligent manufacturing to achieve high-quality, efficient, green, and safe manufacturing products. Meanwhile, in terms of developing intelligent manufacturing, the manufacturing technology system, production model, industrial form, and value chain will be further refined. In recent years, we have focused on four key areas to promote the development of intelligent manufacturing:

First, we have increased our efforts to achieve technological breakthroughs. We are focusing on developing intelligent manufacturing processes, equipment, products, and software systems. We are working to achieve breakthroughs in core technologies such as industrial robots, intelligent testing equipment, and additive manufacturing equipment. Additionally, we are strengthening innovative advancements in integrating processes, equipment, and software, particularly in areas like process digitization, equipment intelligence, quality inspection, and supply chain collaboration. The total output value of China's intelligent manufacturing equipment sector has now exceeded 3.2 trillion yuan.

Second, we have enhanced the supply of solutions. A robust network of service providers is essential to develop intelligent manufacturing and promote enterprises' digital and intelligent transformation. We are focusing on cultivating over 150 system solution providers with main business revenues exceeding 1 billion yuan. System integration capabilities in sectors such as steel, petrochemicals, and lithium batteries have reached an internationally advanced level. Solutions, including mixed-line flexible production, integrated processing and testing, and high-precision, high-reliability assembly, have also achieved significant breakthroughs, empowering more than 3,400 companies.

Third, we have enhanced leadership and demonstration efforts. For three consecutive years, we have collaborated with the National Development and Reform Commission and four other departments to implement smart manufacturing pilot demonstration actions. As a result, we have cultivated 421 national demonstration factories and more than 10,000 provincial-level digital workshops and smart factories. Technologies such as AI and digital twins are now applied in over 90% of these demonstration plants.

Fourth, we have strengthened the formulation of standards. The MIIT, in conjunction with the Standardization Administration of China (SAC), has released guidelines for the construction of a national smart manufacturing standards system. We have issued 408 national standards and led the formulation of 48 international standards to promote the standardized, institutional, and systematic development of intelligent manufacturing.

Next, based on our current work, we will focus on several key areas:

First, we will strengthen the leveraging role of applications. We will deeply promote the construction of smart factories and smart supply chains, carry out the AI Plus initiative, build smart industrial parks, and cultivate exemplary cases of digital transformation and intelligent development. We will support traditional industries and small- and medium-sized enterprises in technological transformation using mature and advanced applicable technologies. The goal is that by 2025, more than 70% of manufacturing enterprises above designated size will have transitioned to digital and network-based operations, and several smart manufacturing demonstration factories will be built to lead industrial development.

Second, we will improve supply support. We will plan and deploy major scientific and technological innovation projects in the intelligent manufacturing sector and strengthen breakthroughs in core technologies in key fields such as intelligent manufacturing processes, equipment, products, and software systems. At the same time, we will cultivate intelligent manufacturing system solution providers, fostering a group of providers with advanced technologies and strong service capacities. We aim to better promote the digital transformation and intelligent enhancement of more enterprises by 2025.

Third, the infrastructure will be improved. We will adopt an appropriately forward-thinking approach for information infrastructure like 5G networks, computing power, and Internet of Things, work faster to create industrial internet platforms, accelerate the innovative growth of industrial internet, and build a better system of standards for intelligent manufacturing. In particular, we will enhance evaluations with an aim to build a batch of industrial internet platforms that have influence in industries and across regions by 2025.

We have guided large-scale equipment renewals this year. Meanwhile we have systematically promoted intelligent manufacturing application research, advanced scientific and technological research, and  strengthened infrastructure by using this opportunity in a bid to vigorously make the manufacturing sector more digitalized, internet-powered, and smarter, providing strong support to boost China's strength in manufacturing.

That's all from me. Thank you.

China Daily：

We noticed that the ministry recently rolled out a series of policies and measures to pursue the green development of the manufacturing industry. What have been the results in this regard? And what are the plans for the next steps? Thank you.

Tao Qing:

Thank you for your questions. Pursuing green and low-carbon growth is in line with the trend of technological revolution and industrial transformation. The ministry has fully implemented Xi Jinping Thought on Ecological Civilization, worked faster to build a modernized industrial system, and made achievements in moving the manufacturing sector toward greener production.

In terms of utilization of resources and energy, we have significantly improved the energy efficiency of products. China's steel, primary aluminum, cement clinker, and other industries have achieved significant improvements in unit product energy efficiency. The energy consumption structure has continued to be optimized. We have promoted a batch of typical application scenarios and cases for industrial green microgrids in key industries and sectors such as steel, petrochemicals, and chemicals.

In terms of product structure, we have continuously enhanced the capacities of green products. The proportion of advanced manufacturing and the supply capacity of green technical equipment and products have increased markedly. For example, in the first quarter, the production and sales of new energy vehicles were 2.115 million and 2.09 million, respectively, a year-on-year increase of 28.2% and 31.8%, with the market share reaching 31.1%.

In terms of green manufacturing, we have given full play to the leading and guiding role of relevant enterprises. At present, at the national level, a total of 5,095 green factories, 371 green industrial parks, 605 green supply chain management companies, and more than 500 green manufacturing professional service institutions have been built.

In terms of cultivating new driving forces, we have moved faster to set up a layout for the development of the future-oriented industries. In industrial sectors, application scenarios have been enriched in the hydrogen energy industry and the new type of power storage technologies. China's first 10,000-tonne demonstration project in green hydrogen industry was built and put into operation. The first million-tonne hydrogen-based shaft furnace in the steel industry successfully ignited and started production.

Next, we will further implement the arrangements on fully pursuing green growth of the industrial sector made at the national meeting on promoting new industrialization, as well as focus on forging new advantages in green development of the industry and creating a number of green manufacturing industry benchmarks. We will focus on three aspects.

First, we will speed up green and low-carbon transformation and upgrading in traditional industries. Efforts will be made to encourage large-scale equipment renewal and trade-in of consumer goods and guide enterprises, industrial parks, and key industries to promote a new round of green and low-carbon technological transformation. We will accelerate the adjustments and optimization of product mix, energy consumption structure and raw materials mix of traditional industries, and speed up their process reengineering, with a view to enhancing the competitiveness of industries. 

Second, we will promote green, low-carbon, and forward-looking growth of emerging industries. Efforts will be made to guide information and technological infrastructure like data centers and base stations to expand the use of green energy. For example, we will accelerate the comprehensive utilization of new-type solid waste, such as decommissioned batteries, photovoltaic modules, and wind turbine rotor blades. Focusing on the realization of peaking carbon dioxide emissions and achieving carbon neutrality, we will lay out the development of future-oriented industries like hydrogen energy, energy storage, biomanufacturing, and carbon capture, utilization and storage, in keeping with the trend of energy revolution and industrial transformation.

Third, we will cultivate new business forms in green manufacturing. Vigorous efforts will be stepped up to promote the deep integration of eco-friendly and digital practices, modern services and green manufacturing, and consumer' needs for green consumption and the supply of sustainable products. We will work hard to cultivate new business forms and foster new growth drivers. Thank you.

Cover News：

According to the government work report this year, we will develop appropriately future-oriented digital infrastructure, work faster to create a nationally unified computing system, and foster industrial ecosystems for computing. What does the ministry specifically plan to do in this regard? Could you provide more details about the development of China's computing power sector and discuss the next steps for its growth? Thank you.

Shan Zhongde:

Thank you for your questions. Acting in line with the arrangements and requirements on working faster to create a nationally unified computing system pushed forward in this year's government work report, the MIIT has strengthened policy guidance, developed computing infrastructure, enhanced the innovation capacity of industries, and promoted the implementation of computing power applications, all of which have delivered positive outcomes.

First, we have actively guided the development of computing infrastructure. We have accelerated the implementation of the action plan for the high-quality development of computing power infrastructure, advanced the coordinated development of computing, networks, storage, and application, and guided the building of the tiered system of computing infrastructure encompassing national hubs, regional centers, and local peripheries. As of the end of 2023, more than 8.1 million standard racks were in use at data centers across China, with the total computing power reaching 230 EFLOPS, which is 230 quintillion floating-point operations per second.

Second, we have focused on strengthening the foundation of computing power development. We have optimized the computing power structure, promoted a diversified supply of computing resources, and gradually expanded the proportion of intelligent computing power, satisfying the development of AI applications. As of the end of 2023, China’s intelligent computing power has reached 70 EFLOPS, which is 70 quintillion floating-point operations per second, a growth rate of over 70%. We have pushed basic telecommunication enterprises to plan and construct more than 180 optical trunk cables under the "East Data, West Computing" project, expanded the interconnection bandwidth of backbone networks to 40T, and covered major cities nationwide with 20-millisecond latency circles of computing power hubs.

Third, we have accelerated the scheduling of computing power resources. We have strengthened research on key technologies regarding the interconnection between computing resources, developed cloud scheduling systems for computing networks, established a computing resource identification system, and improved standards and norms for the interconnectivity of computing power. We have enhanced the efficiency of data transmission between networks, upgraded the functions of new-type internet exchange centers and backbone direct connection points, and improved the ability of computing power to access networks.

Fourth, we have effectively built a computing industry ecosystem. We organized the selection of successful cases among new-type national computing centers to enhance the guiding role of excellent practices. We collected over 5,000 projects of innovative application of computing power, covering various fields such as finance, transportation, and urban governance. We guided the establishment of a matrix for computing industry development and created a community for the development of the industry to better promote integrated and coordinated development, enabling computing power centers to achieve better development.

Next, we will continue to build a nationwide integrated computing power system from three aspects. First, we will coordinate computing resources and improve utilization efficiency. We will optimize the composition of computing infrastructure, deepen the coordination and monitoring of computing infrastructure, and guide the coordinated development of computing power in the eastern and western regions. We will encourage basic telecommunication enterprises to continuously improve the direct interconnection networks linking from computing power clusters to major cities, enhance computing networks’ access capacity, and promote standardized interconnection of public computing power to improve utilization efficiency. Second, we will strengthen the leading role of intelligent computing and optimize the computing power structure. We will actively promote the development of AI computing architecture and software ecosystem, accelerate the breakthrough of a number of landmark technological products and solutions, and encourage various entities to explore new modes of intelligent computing center construction and operation, including multi-party collaboration mechanisms, to better utilize intelligent computing power. Third, we will stimulate computing power demand and improve computing services. We will research and establish a public computing power service supervision and management system, organize computing service scheduling and operation safety monitoring and evaluation, cultivate a number of competitive computing service providers, create a nationwide unified computing service market, continuously optimize computing power network products and services, reduce the cost of computing services for small and medium enterprises, and enhance the inclusiveness and accessibility of computing power.

Arguably, computing power has become an important engine to promote high-quality economic and social development, as well as a vital foundation for technological innovation and high-quality industrial development. We will continue to make efforts in the areas of computing power structure, intelligent computing supply, efficiency improvement, and service guarantees, providing stronger support for accelerating new-type industrialization and serving the construction of a new pattern of development.

That's all I have to say, thank you.

China News Service:

This year, the development of the low-altitude economy has attracted widespread attention. We understand that the MIIT along with three other departments have just issued an implementation plan for the innovative application of general aviation equipment. What are your considerations and plans for developing the low-altitude economy? Thank you.

Shan Zhongde:

I'll answer this question. As you said, the low-altitude economy is currently quite popular, and provinces and cities such as Jiangsu, Shandong, and Shenzhen have issued relevant policies for its development. The low-altitude economy is a typical emerging industry, a typical representative of new quality productive forces, and an important direction for cultivating new growth drivers. It is innovation-driven, green and low-carbon, and integrates digital and real economy. Not long ago, the MIIT, together with the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration of China, jointly issued an implementation plan on innovative application of general aviation equipment (2024-2030), aiming to accelerate the commercial application of new-type general aviation equipment featuring unmanned, electric, and intelligent technologies, and promote the large-scale development of "low-altitude logistics distribution," "low-altitude urban air traffic," and "low-altitude emergency rescue," etc.

As we all know, the development of the low-altitude economy relies on advanced aircraft and requires digital-driven and internet-based support as well as communications. The general aviation manufacturing industry provides essential equipment for the growth of the low-altitude economy, while information and communication networks offer solid foundational support. In recent years, the general aviation equipment manufacturing industry, represented by drones, has achieved rapid progress. According to incomplete statistics, by the end of 2023, there were over 2,300 civilian drone manufacturing enterprises in China, producing more than 1,000 mass-produced drone types. In 2023, China delivered over 3.17 million civilian drones, with the general aviation manufacturing industry's output value exceeding 51 billion yuan, marking a year-on-year increase of nearly 60%. Moving forward, to develop the low-altitude economy while balancing high-quality growth with high-level security, it is essential to enhance coordination among various departments and foster cooperation between central and local authorities. This will accelerate the creation of new growth engines for the low-altitude economy. The focus will be on following four key areas:

First, accelerating equipment innovation. Developing the low-altitude economy requires advanced low-altitude equipment, focusing on trends such as unmanned, electric, and intelligent technologies. This involves expediting breakthroughs in core technologies for new types of general aviation equipment, including key innovations in batteries and motors used in the aviation industry. The goal is to build a product system for low-altitude equipment that meets the needs of various application scenarios, characterized by low cost, high reliability, high performance, and high safety.

Second, strengthening application-driven development. By focusing on various application scenarios, such as logistics, rescue, and transportation, we will establish a demonstration system for multi-scenario applications in low-altitude settings, guided by the development of an industrial ecosystem. We will proactively cultivate high-tech enterprises and specialized, innovative "little giant" enterprises in the low-altitude economy. Additionally, we will accelerate the development of the industrial chain centered around the innovation chain, encouraging genuine integration between industry, academia, and research to better advance the low-altitude economy.

Third, enhancing technological integration. We will fully utilizing and leveraging next-generation information and communication technologies, digital technologies, intelligent technologies, and AI. We will accelerate the development and innovation of intelligent low-altitude connectivity technologies and models, providing robust support for building a future system characterized by safe and efficient low-altitude operations. By leveraging advanced equipment, network technologies, and application-driven scenarios, we can achieve significant progress in the low-altitude economy.

Fourth, strengthening standards support. We will accelerate the establishment of an industrial standards system that spans the entire lifecycle of low-altitude equipment, covering research and development, design, production, testing, verification, and operational support. We will collaborate with relevant departments to promote the construction of a third-party testing and certification system. We believe that the low-altitude economy is a major direction for the future development of emerging industries. It is destined to evolve into an industry with a trillion-yuan scale, significantly benefiting the public and better fulfilling people's aspirations for a better life.

That's all from me. Thank you.

China Financial and Economic News:

AI has emerged as a powerful catalyst for industrial transformation, drawing considerable attention to its integration with various industries. What factors should be considered when promoting the role of AI in facilitating new industrialization? Thank you.

Tao Qing:

Thank you for your question. I will answer it as follows. AI is a strategic technology leading the new wave of technological revolution and industrial transformation, serving as a crucial driver of new industrialization. In recent years, with joint efforts across various sectors, China has made significant progress in the development of AI. The number of AI enterprises has exceeded 4,500, and innovative achievements such as intelligent chips and general large models have rapidly emerged. Intelligent infrastructure continues to be strengthened, and the construction of digital workshops and smart factories has accelerated, laying a solid foundation for AI-enabled new industrialization.

Going forward, we will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, carry out the tasks outlined in the National Meeting on Promoting New Industrialization and the government work report, and fully leverage the strengths of China's complete industrial system, large industrial scale, and diverse application scenarios. We will focus on the deep integration of AI and manufacturing, with intelligent manufacturing as the main direction and application scenarios as the driving force, to promote the intelligent transformation of the manufacturing industry and empower the industrial manufacturing system at a high level, providing new momentum for high-quality development.

First, we will accelerate breakthroughs in fundamental AI technologies to strengthen the foundation for application empowerment. By focusing on key underlying technologies such as algorithms and computational power for large models, we will expedite advancements in critical core technologies and products, including intelligent chips, large model algorithms, and frameworks. Additionally, we will accelerate the deployment of intelligent IoT terminals and industrial clouds, enhancing the operational management capabilities of computational power for manufacturing. Additionally, we will guide ecosystem enterprises to rapidly develop globally competitive general large models, cultivate industry-specific large models for manufacturing scenarios, and build high-level industrial databases to unlock the value of industrial data elements.

Second, we will accelerate the smart upgrading of key links, critical industries, and major products in the manufacturing sector. We will deepen the integration and application of AI technology throughout the entire manufacturing process to significantly enhance the smart-tech levels of R&D, pilot-scale testing, production, services, and management. Targeting key industries that have a significant impact on the national economy, a strong driving force, and a solid foundation for digitalization, we will launch special actions for AI-empowered new industrialization. This includes strengthening the connection between supply and demand, publicizing and implementing standards, and fostering application to expedite the smart upgrading of key industries and also improve the smart-tech levels of high-end equipment, critical software, and intelligent terminals among major products and equipment.

Third, we will improve the support system, and cultivate and expand the industrial ecosystem. We will provide stronger guidance on standards and establish and enhance the standard system for AI-empowered new industrialization. We will optimize the layout of AI manufacturing innovation centers, industrial technology public service platforms, and key laboratories, enhance collaborative innovation across the industrial chain, and reinforce the construction of an open-source AI ecosystem. We will also improve mechanisms for AI talent cultivation, security assurance, and international cooperation. Thank you!

People's Posts and Telecommunications News:

This year marks the 30th anniversary of China's connection to the internet. Could you please provide an overview of the key achievements in China's internet development over the past 30 years? What measures will be taken in the future to further promote its development?

Zhao Zhiguo:

I'll answer this question. Thank you for asking. On April 20, 1994, China opened its first 64K international dedicated line, achieving full functional connection with the internet and becoming the 77th member of the internet community. Thirty years have flown by, and the day after tomorrow, April 20, will be the 30th anniversary of this historic moment. Over the past 30 years, China's internet development has achieved significant accomplishments, providing a solid foundation and strong support for accelerating new industrialization and boosting its strength in manufacturing and cyberspace. These achievements can be summarized in five aspects: large scale, strong foundation, wide application, favorable environment, and extensive cooperation. Specifically:

First, in the aspect of scale, the comprehensive strength of the industry has continuously improved. By the end of 2023, the number of registered websites exceeded 3.8 million, the number of internet users reached 1.09 billion, and the internet penetration rate was 77.5%. From January to February this year, China's internet business revenue reached 246.3 billion yuan, up by 7.6% year on year, with total profits reaching 16.97 billion yuan, up by 6.5% year on year. According to estimates from relevant institutions, the market value of Chinese internet businesses is nearly 10 trillion yuan, with nine companies ranked among the top 30 global internet companies by market value. Their international competitiveness has been significantly enhanced.

Second, in the aspect of strong foundation, China's network facility has reached a global leading position. China has built the world's largest network infrastructure with advanced technology, fully completed IPv6 transformation, with the number of country code top-level domain registrations being the highest in the world. A comprehensive, multi-layered, and multi-dimensional network interconnection architecture is rapidly taking shape, and the quality of network services is advancing towards world-class levels.

Third, in the aspect of wide application, the role of integration and empowerment is evident. In the field of daily life, applications such as instant messaging, mobile payments, and ride-hailing have flourished, exploring new spaces for digital life. In the field of production, 5G applications have been integrated into 74 of the 97 major categories of the national economy, and the industrial internet has covered all 41 major industrial categories.

Fourth, in the aspect of favorable environment, the industrial ecosystem and order are continuously improving. The new regulatory system is continuously strengthened, significantly enhancing the compliance of business operations, the openness of the industrial ecosystem, and the robustness of security measures. The comprehensive service system that benefits the public and enterprises has gradually improved, and the protection of user rights is effectively strengthened.

Fifth, in the aspect of extensive cooperation, mutually beneficial cooperation continues to deepen and become more practical. China is deeply involved in global digital governance and international rule-making, promoting high-quality Belt and Road cooperation and practically carrying out all-around cooperation in digital transformation to share the dividends of digital economic development with other countries.

Next, regarding internet development, we will focus on the following three aspects of work:

First, we will stick to innovation-driven development and foster new quality productive forces. We will step up the construction of a new type of information infrastructure, systematically make plans to realize breakthroughs in core technologies in key fields, and promote the R&D and application of frontier technologies such as 6G, the next-generation internet, and quantum communication.

Second, we will adhere to the integration of the digital economy and the real economy and accelerate the new type of industrialization. We will promote the deep integration of AI and manufacturing, further advance the large-scale application for "5G+industrial internet," and speed up building a modern industrial system supported by advanced manufacturing.

Third, we will adhere to reform and opening-up and continue to optimize the business environment. We will improve policies and systems, promote the modernization of the industrial supervision system and our capabilities, advance work-style rectification, and continue to improve the quality of our services. In addition, we will further open up the telecommunication market and stimulate the vitality of various market entities. Thanks.

China Electronics News:

Currently, we all attach great importance to the industrial application of scientific and technological achievements. The application of laboratory findings cannot be achieved without the support of pilot-scale testing platforms. What plans will the MIIT make to promote the industrial application of scientific and technological achievements?

Shan Zhongde:

Thank you for your question. I'll answer it. We often say that it is difficult to transform scientific and technological achievements. Whether the achievements are mature and advanced determines their transformation level. Through pilot-scale testing, we can improve the maturity of the achievements, effectively accelerate the transformation of scientific and technological achievements, and speed up scientific and technological innovation. Pilot-scale testing is a transitional test that transforms the new products in the trial production stage into a real production process. This is the key to the transformation of scientific and technological achievements and also an organic component of the manufacturing innovation system. It provides important support for a modern industrial system. Through pilot-scale testing, we can improve product performance and quality, achieve stable mass production, and accelerate the commercialization of innovative products.

In order to better promote high-quality and high-performance development of products, at the beginning of this year, the MIIT worked with relevant departments to formulate the Implementation Opinions on Innovative Development of Pilot-Scale Testing in Manufacturing Industry," with a focus on enhancing our capabilities to support pilot-scale testing and improve the transformation and commercialization of scientific and technological achievements. Relevant work will be carried out in three aspects.

First, we will improve the pilot-scale testing and validation capabilities. Only when our capabilities advance can the transformation level of innovation achievements be well improved. We will conduct projects to improve our pilot-scale testing capabilities and scientifically plan our capacity building for advanced pilot-scale testing in key industries. We will support the layout and construction of a number of major pilot projects with strong driving forces in process-type manufacturing industries such as petrochemicals, chemicals, and metallurgy, as well as in discrete manufacturing industries such as equipment, automobiles, and electronics. At the same time, we will support leading enterprises in the industrial chain to make overall plans on integrating pilot-scale testing with R&D and production, in a bid to establish complete capabilities in pilot-scale testing and promote the full coverage of pilot-scale testing in key industrial chains.

Second, we will build pilot-scale testing platforms. We will enhance technological upgrading, promote the digital, networked, intelligent, high-end, and green development of pilot-scale testing, and build a system for pilot-scale testing service platforms. In particular, we will support the construction of comprehensive and professional public service institutions for pilot-scale testing, build application scenarios and test environments, promote product R&D, design and validation test, and speed up our efforts to meet industry development needs. In addition, we will strengthen the pilot-scale testing function of existing innovation and service platforms, enhance technology development and transformation, and open up experimental capabilities, test sites, and research results.

Third, we will improve the ecosystem for pilot-scale testing development. We will develop pilot-scale testing industries in an innovative way and foster excellent enterprises. We will expand the supply of products, such as precision measuring instruments, high-end test equipment, and design simulation software, and promote pilot-scale testing platforms to provide more accurate and effective services. In addition, we will strengthen the role of standards in providing support and guidance, establish a sound system of standards for pilot-scale testing, release a set of key standards, and cultivate inter-disciplinary talent and outstanding engineers who are good at solving complex engineering problems. We will support local governments to formulate policies and measures for pilot-scale testing development and provide funding, talent, and financial support for pilot-scale platforms.

Our goal is that by 2025, the country's manufacturing industry will witness positive progress in pilot-scale testing; its key industrial chains will see the full coverage of pilot-scale testing; the digital, networked, intelligent, high-end, and green development of pilot-scale testing will be significantly improved; and the pilot-scale testing service system will be continuously improved. At the same time, we will build pilot-scale testing platforms with globally advanced standards, further create a sound ecosystem for pilot-scale testing development, better enable high-quality development of the manufacturing industry, and promote the sustained growth of China's industrial economy.

That's all from me. Thanks.

Xing Huina:

Today's press conference will conclude here. Thank you to all the speakers and journalists.

Translated and edited by Xu Xiaoxuan, Huang Shan, Guo Yiming, Liu Qiang, Liu Caiyi, Yan Bin, Wang Qian, Ma Yujia, Zhou Jing, Wang Ziteng, Liu Sitong, Qin Qi, Li Huiru, Mi Xingang, Yuan Fang, Yan Xiaoqing, Wang Wei, Jay Birbeck, Tom Arnsten and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Liu Sushe, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Yuan Da, deputy secretary-general of the NDRC and director general of the Department of National Economy of the NDRC

Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 17, 2024

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited officials from the National Development and Reform Commission (NDRC) to brief you on the current economic situation, explain related policies and take your questions. Joining us today are Mr. Liu Sushe, vice chairman of the NDRC; Mr. Yuan Da, deputy secretary-general of the NDRC and director general of the Department of National Economy of the NDRC; and Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC.

Now, I'll give the floor to Mr. Liu for his introduction. 

Liu Sushe:

Thank you, Mr. Chen. Good afternoon. I'm very glad to attend today's press conference held by the SCIO, together with my two colleagues. Yesterday, the National Bureau of Statistics published major indicators showing the national economic performance in the first quarter of this year. Generally speaking, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the whole nation united and strived through collective effort to implement the strenuous tasks of reform, development and maintaining stability despite a serious and complicated international situation. As a result, the economy continued to recover and improve in the first quarter: economic growth was better than expected; the economic structure continued to improve; the quality and performance of the economy strengthened; employment and prices were generally stable; and overall market expectations improved. Social stability was also maintained, and socioeconomic development got off to a good start. 

Currently, favorable conditions for economic development continue to multiply. However, we still face many risks and challenges in economic development, because the external environment remains complicated, serious and largely uncertain, effective domestic demand is insufficient due to weak expectations, and the foundations for continued economic improvement need to be further consolidated. The NDRC will implement the arrangements of the Central Economic Work Conference and the tasks specified in the government work report, and adhere to the general principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old. It has intensified efforts on macro regulation, and advanced recently launched initiatives such as large-scale equipment upgrades and replacing old consumer goods with new ones, and intensified efforts to attract and utilize foreign investment. We will step up efforts to promote the issuance of special ultra-long treasury bonds among other measures. We will take steps to further the work in important areas to develop the modern industrial system, expand domestic demand, comprehensively deepen reform and expand high-standard opening-up, promote coordinated urban-rural development, promote green and low-carbon development, ensure basic living standards, improve people's livelihoods, and properly prevent and defuse risks in certain areas. We will actively foster and develop new quality productive forces, enhance guidance over expectations, invigorate market confidence, and do our best to cement and further boost the economic recovery and improvement, so as to accomplish all of the socioeconomic development goals and tasks for the year to a high standard. 

That is all from me for now. Next, my two colleagues and I are happy to answer your questions. Thank you.

Chen Wenjun:

Thank you, Mr. Liu. The floor is now open for questions. Please identify the news outlet you work for before asking your question. 

CCTV:

Since the beginning of this year, we've noticed an increase in projects starting nationwide. What measures have the NDRC taken to drive investment through government funding? What progress has been made on the allocation and utilization of budgetary investment of central government and special bonds issued by local governments? And what measures will the NDRC take to boost private investment? Thank you.

Liu Sushe:

Thank you, I will answer these questions. The Central Economic Work Conference has made important arrangements to increase effective investment, and the government work report also called for actively increasing effective investment. The NDRC has earnestly implemented related requirements, worked with relevant parties to promote investment, and made government investment, such as investment within the central budget, special local government bonds and additional government loans issued in 2023, play their role in driving investment, thereby increasing effective investment. In the first quarter, nationwide investment in fixed assets grew 4.5% year on year, 0.3 percentage point higher than the growth in January and February, and 1.5 percentage points higher than the growth last year, exhibiting a steady recovery. Investment in manufacturing and infrastructure exhibited rapid growths of 9.9% and 6.5%, respectively. Private investment grew 0.5%, with the growth rate continuing to recover, accounting for 51.6% of all investment. Specifically, we have taken measures in the following aspects: 

First, moving faster in allocating planned investment within the central budget. The central government arranged for a total of 700 billion yuan ($96.61 billion) in budgetary investment this year. Together with relevant parties, the NDRC has prioritized quality and efficiency, strengthened its backup of projects and enhanced preparatory work and coordinated work to compile investment plans. So far, more than 200 billion yuan of the planned investment within the central budget has been allocated, accounting for more than 30% of the annual total. Next, we will further accelerate the allocation of planned investment, enhance the implementation of investment plans, conscientiously carry out project construction and supervision, and continue to increase the effectiveness of utilized investment within the central budget. 

Second, completing preliminary screening of projects to be funded by special local government bonds. This year's special bonds total 3.9 trillion yuan. Previously, the NDRC has collaborated with the Ministry of Finance (MOF) to expand the investment areas of the special bonds and business sectors eligible for funding. Recently, according to the responsibilities related to special bonds, the NDRC examined investment areas and preliminary work on projects submitted by local governments and completed the preliminary screening of projects to be funded by special bonds. The results have been sent to the MOF and different localities, the MOF is vetting the costs and income balances of projects financing, and preparatory works have been advanced for various projects. Overall, many projects have passed the preliminary screening and have large demands for funding, which means that we are on solid ground to issue and utilize special bonds this year. We will work with relevant parties to finalize the list of projects for preparation, urge local governments to expedite the issuance and utilization of bonds, and promote various projects to achieve solid progress.

Third, we have worked to accelerate the implementation of projects supported by additional treasury bonds allocated in 2023. By February, the NDRC had released all three lists of projects supported by an additional 1 trillion yuan worth of treasury bonds, allocating the funds to 15,000 specific projects. Since March, the commission has established an online allocation mechanism to ensure these projects begin construction at an earlier date. It has also worked with relevant competent authorities to supervise project implementation and regulate all stages, from start to finish. We have completed supervision over the first batch of projects in 12 provinces, with other provinces also exercising self-supervision. Supervision over the second and third batches of projects will be conducted within this year. Tomorrow, the NDRC will hold a teleconference to discuss the implementation and promotion of projects supported by additional treasury bonds allocated in 2023, briefing on project progress and supervision, and making timely rectifications of the problems revealed. Also, the commission will intensify efforts to ensure that local governments assume their primary responsibilities and promote all these projects to start construction before the end of June.

At the same time, we will work to ensure that government investment and policy incentives effectively drive society-wide investment. Various policies will be fully implemented to guide no-government investment. Specifically, we will give full play to an already-launched national information system of cooperation projects between government and private capital, comprehensively implement the specific requirements of the guidelines on compiling the franchising plan and effectively implement a new mechanism for cooperation between government and private capital. More major projects will be promoted publicly to attract private investment. We will also study expanding the scope of trials to allow more banks to participate in combined debt-equity investments, guide banks to continuously increase financing support for privately invested and national major projects, and take a wide range of steps to stimulate investment from nongovernmental sources. Thank you.

The Beijing News:

The central authorities have decided to issue ultra-long special treasury bonds, starting this year and over each of the next several years, with 1 trillion yuan of such bonds being issued this year. My question is: have you made a detailed plan for when and how to issue these bonds? Thank you.

Liu Sushe:

I will answer this question, to which all parties are now paying close attention. The central authorities have decided to issue ultra-long special treasury bonds, starting this year and consecutively over the next several years. These bonds will be used to implement major national strategies and build up security capacity in key areas. This is a major strategic decision made by the CPC Central Committee and the State Council with a view to realizing the overall goal of building a great country and achieving national rejuvenation. Implementing the plans of the Party Central Committee and the State Council, the NDRC has worked with relevant authorities to research and draft an action plan to support the implementation of major national strategies and enhance the country's capacities to ensure security in key areas. Once approved, the action plan will be implemented.

The action plan is goal-oriented and aims for targeted breakthroughs. It aims to pool all resources to help secure accomplishments and solve problems crucial to China's modernization and development, which have long gone unsolved for years and now require promotion by the central authorities. The action plan ensures that high-quality development and greater security reinforce each other, consolidating the foundation for national security and long-term development. The plan coordinates fixed-asset investments with soft power development and eliminates deep-seated obstacles through reform and an innovative approach. Adhering to an orderly step-by-step approach, it pledges to issue 1 trillion yuan of ultra-long special treasury bonds in 2024.

In terms of the areas involved, the focus will be on achieving greater self-reliance and strength in science and technology, promoting integrated urban and rural development, facilitating coordinated regional development, enhancing the capabilities of ensuring grain and energy security, spurring high-quality development of the population, and comprehensively advancing the Beautiful China Initiative. In terms of implementation, we will ensure that projects proceed according to the plan, that investment funds stay with the projects they are allocated to, and that supervision is focused on fund allocation. The NDRC has taken the lead and worked with relevant government departments to strengthen coordination, provide financial support, improve investment channels, and intensify supervision. The priority is to implement a batch of projects that are sufficiently well-prepared and ready for immediate launch. Meanwhile, we will accelerate the introduction of supporting policies for project implementation, eliminate deep-seated obstacles via structural and institutional reforms, and form synergy with major project construction. This will ensure the high-quality implementation of tasks, guided by clearly defined action plans. Thank you.

Jinan Times APP:

Yesterday, the NBS released China's economic data for the first quarter, much of which exceeded the expectations of some market institutions. What's your view on the current state of the Chinese economy, its prominent features, and future trends? Thank you.

Yuan Da:

Thank you for your question. All sides are interested in China's economic situation. Mr. Liu has just provided an overall introduction regarding the situation in the first quarter. Since the start of this year, the Chinese economy has sustained the momentum of recovery, achieving a stable and positive start. Available data shows increases, progress, and improvement based on overall economic stability.

First, the growth rates of China's major economic indicators saw a steady increase. China's economic growth picked up, with the first quarter's gross domestic product growing by 5.3% year on year and 1.6% quarter on quarter, representing an increase of 0.1 and 0.4 percentage points, respectively, over the fourth quarter of last year. The country also saw accelerated industrial production, with the value added of industrial enterprises above designated size growing by 6.1% year on year, 1.5 percentage points higher than the overall growth rate of 2023. Growth in investment and exports was good. Fixed-asset investment rose 4.5% year on year, 1.5 percentage points higher than the growth rate for the entire year of 2023. China's exports of goods calculated in RMB increased by 4.9%, 4.3 percentage points higher than the annual growth rate for last year.

Second, steady progress has been made in structural adjustments to the economy. The industrial structure is steadily improving, with the acceleration of the transformation of growth drivers. The manufacturing industry has grown rapidly, with a year-on-year increase of 6.7% in the first quarter, including a 7.5% growth in the value added of high-tech manufacturing. Emerging industries are developing rapidly, with 40.6% and 26.7% increases in the outputs of 3D printing equipment and service robots, respectively. Producer services are developing at a faster pace, with a 13.7% increase in the value added of information transmission, software and information technology services, up by 2.5 percentage points from the previous quarter. The three drivers of growth – consumption, exports and investment – are working together more cohesively. Domestic demand continues to act as the main driver of growth, contributing 85.5% to the economic growth in the first quarter. Net exports have driven economic growth more effectively, with the contribution rate of external demand shifting from -3.1% in the previous quarter to 14.5%.

Third, corporate performance, employment and people's income as well as market expectations are steadily improving. The performance of enterprises has recovered quickly, with profits of industrial enterprises above designated size increasing by 10.2% year on year in the first two months. Employment and people's income are improving steadily, with the urban surveyed unemployment rate at 5.2% in March, down 0.1 percentage point from the previous month and the same period last year. Personal per capita disposable income increased by 6.2% in real terms in the first quarter, continuing to outpace economic growth. Market expectations are stable and improving. The manufacturing PMI came in at 50.8% in March, up 1.7 percentage points from the previous month, bouncing back to the expansion zone after five consecutive months of contraction. The production and operation expectation index for manufacturing enterprises was 55.6%, up 1.4 percentage points from the previous month, and the business activity index for non-manufacturing industries was 53%, up 1.6 percentage points from the previous month.

At the same time, we are aware that external risks and challenges remain, and there are still many difficulties in terms of domestic economic operation. In summary, China's economy achieved a good start in the first quarter, laying a solid foundation for achieving the annual targets. As the various policy measures introduced earlier continue to take effect and the new tasks and measures deployed by the CPC Central Committee and the State Council are implemented, the positive trend of China's economic recovery will be continuously consolidated. We are more confident and assured of achieving the annual targets to a high standard. Thank you.

Bloomberg: 

In the data yesterday, we saw that the utilization rate of industrial capacity fell to 73.6% in the first quarter; that was the lowest since the first quarter of 2020, and down from the last three months of last year. This pullback comes as the U.S. and Europe scold Beijing for building up what they see as excess capacity. Would the NDRC like to respond to that? And also, just separately, will the messages that have been delivered by Yellen and Scholz in their visits this month about China's industrial policy in any way shape or influence Beijing's plans? Thank you.

Jin Xiandong: 

Thank you for your questions. The utilization rate of industrial capacity is an indicator reflecting the short-term relationship between production and demand, affected by factors such as demands and profits. Looking at data from recent years, the quarterly fluctuations in capacity utilization rate are relatively large, with the first quarter showing relatively lower rates and the fourth quarter relatively higher, which is related to factors such as the Spring Festival holiday. Our preliminary analysis suggests that the capacity utilization rate is expected to gradually rebound in the coming quarters.

Regarding capacity issues, we need to start from economic laws and view them objectively and dialectically. In a market economy, the supply-demand balance is relative, and imbalance is common. Moderate oversupply is conducive to market competition and survival of the fittest, which is a widespread phenomenon. Some link capacity issues to international trade, believing that exporting more goods indicates overcapacity, which is groundless. China imports a large amount of chips, aircraft, soybeans, crude oil and other goods every year. Does this mean that the exporting countries of these goods all have overcapacity?

In the context of economic globalization, both supply and demand have global characteristics. Each country possesses greater capacities in their respective advantageous industries and lesser capacities in others, which is determined by their comparative advantages. Only by strengthening cooperation can we achieve common development. According to estimates by the International Energy Agency, global demand for new energy vehicles in 2030 will be more than three times that of global sales in 2023. In the process of promoting green and low-carbon transformation and development, there is huge market demand in new energy fields such as electric vehicles, which creates a shared opportunity for the development of all countries. The continuous development of China's new energy industry and the provision of high-quality capacity not only meet its own needs for high-quality development but also make important contributions to global response to climate change and green and low-carbon transformation. Thank you.

Zhonghongwang.com: 

We noticed that the 2024 editions of the Basic Catalog of Public Credit Information and the Basic List of Disciplinary Measures for Dishonest Practices have been issued. Compared with the 2022 versions, what are the main improvements this year? And how will the implementation of the catalog and list be promoted going forward? Thank you.

Jin Xiandong: 

The social credit system is an important part of the socialist market economy and social governance, as well as an important support for the healthy development of the economy and society. In accordance with the requirements of the State Council, since 2021, the NDRC, together with relevant departments, has compiled the National Basic Catalog of Public Credit Information and the National Basic List of Disciplinary Measures for Dishonest Practices, defining the scope of public credit information, the types of punishment measures for dishonest practices, and the applicable subjects. It has played an important role in protecting the legitimate rights and interests of entities whose credit information is gathered.

To further improve the legalization and standardization of the social credit system , the NDRC recently revised and compiled the 2024 editions of the catalog and the list based on the 2022 editions. The update was made in response to the new requirements of economic and social development, as well as new laws, regulations, and important documents issued over the past two years. The revision of the catalog focuses on strengthening intellectual property protection. The most significant change in the new edition is the addition of the "intellectual property information" category, which includes "trademark pledge registration information," "patent mortgage registration information," and "software copyright information." Additionally, entries such as "social insurance payment status and overdue information" have been added. The revision of the list focuses on alignment with new regulations and measures. For instance, in line with regulatory measures in the financial sector, punitive content such as "prohibition from entering the securities and futures markets according to law" has been added, and those responsible for serious violations in the private equity investment fund sector will be banned from participating in the securities and futures markets.

Moving forward, we will collaborate with relevant parties to effectively implement the catalog and the list, further standardize the collection and use of public credit information, strictly enforce disciplinary measures against dishonesty according to the law and regulations, and effectively protect credit entities' legitimate rights and interests. Our focus is on three main areas. First, for local regulations that clearly define the scope of public credit information inclusion and measures for disciplinary action against dishonesty, we will urge local governments to promptly compile supplementary catalogs and lists in accordance with relevant regulations. We will ensure that other local policy documents are not used as the basis for compiling catalogs and lists. Second, in sectors where lists of seriously dishonest entities are established, we will encourage relevant departments or regulatory agencies to introduce management measures for these lists, specifying the criteria for identification, conditions, and procedures for removal, as well as relief measures. Third, we will urge all regions to strictly adhere to the scope defined in the catalog and the list when collecting and using public credit information and carrying out disciplinary actions. If any locality is found to be using credit information outside the scope of the catalog as public credit information or implementing disciplinary measures beyond the list, we will order immediate rectification and issue a notification, resolutely preventing the generalized and abusive use of credit.

Furthermore, we will continue to improve the credit repair mechanism. Recently, the NDRC, in conjunction with the State Administration for Market Regulation, issued a document to promote mutual recognition of credit repair results between the "Credit China " website and the National Enterprise Credit Information Publicity System , thus resolving the issue of "multiple repairs" for business entities. Moving forward, we will strengthen departmental coordination and continuously improve the efficiency of credit repair, enabling eligible business entities to repair their credit in a more convenient and efficient manner in accordance with laws and regulations. This will further promote the construction of the social credit system and continuously stimulate the vitality of business entities. Thank you.

Zhejiang Daily:

I have several questions regarding the private economy. First, I would like to know how the private economy is developing now. Second, as a specialized agency dedicated to promoting the growth and development of the private economy, what specific challenges has the Private Economic Development Bureau solved so far? Last, I would like to know about the next steps to boost the development prospects and confidence of the private economy. Thank you.

Yuan Da:

Thank you for your questions. In the first quarter of this year, the development of the private economy got off to a good start, with positive trends in key indicators. First, the growth rate of industrial production has accelerated. In the first quarter, the value added of private industrial enterprises above designated size increased by 5.4% year on year, an acceleration of 3.4 percentage points compared to the same period last year. In the first two months, the profits of these enterprises increased by 12.7%, which was 2.5 percentage points faster than the overall profit growth rate of industrial enterprises above designated size. Second, the potential for private investment continues to be unleashed. In the first quarter, private investment increased by 0.5%, with the growth rate accelerating by 0.1 percentage point compared to the previous two months. Excluding investment in real estate development, private investment increased by 7.7%, with private investment in manufacturing growing by 11.9% and infrastructure private investment growing by 8.1%. Third, the foreign trade growth rate for private enterprises was significantly faster than the overall level. In the first quarter, imports and exports of private enterprises, denominated in yuan, increased by 10.7%, which was 5.7 percentage points faster than the overall import and export growth rate, accounting for 54.3% of the total. Among them, the growth rates of exports and imports of private enterprises were faster than the overall growth rates by 4.8 and 7.8 percentage points, respectively.

At the same time, we are also aware that the development of private enterprises still faces some difficulties. The NDRC, along with relevant parties, is fully committed to addressing the urgent and pressing issues faced by private enterprises. On the one hand, we are strengthening vertical coordination. We have established a mechanism for regular communication and problem-solving with private enterprises. We have mobilized development and reform departments at the national, provincial, municipal, and county levels to regularly collect, address, provide feedback on, and track the effectiveness of issues reported by private enterprises, striving to ensure that private enterprises genuinely benefit from our efforts. On the other hand, we are strengthening horizontal coordination. We have established an interdepartmental joint meeting mechanism to promote the growth and development of the private economy, collaborating with 42 departments and units to address issues. As of the end of March this year, the NDRC had collected the demands and suggestions of private enterprises through various channels. After deducting duplicates and unverified information, we have collected approximately 560 items, with about 300 items having been processed and further tracked for effectiveness. Our goal is to resolve a category of problems that will benefit a group of enterprises and support an entire industry.

We recently organized a national conference on optimizing the business environment and the first plenary session of the Inter-ministerial Joint Conference on Promoting the Development of the Private Economy, outlining the major tasks for 2024. Next, the NDRC will further intensify its efforts and coordinate its work, focusing on three aspects. First, we will strengthen laws and regulations. We will accelerate the legislative process of the law to support the development of the private sector , and continue to improve the mechanism for working unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. Efforts will be made to accelerate the legal and institutional arrangements to ensure the equal treatment of state-owned and private enterprises, in order to give full play to the role of the rule of law in consolidating governance foundations, ensuring stable expectations and bringing long-term benefits . Second, we will effectively address problems facing enterprises. We will make the best use of the comprehensive service platform for developing the private economy. We will make concerted efforts to establish a closed-loop system for collecting information, addressing issues that have been identified, providing feedback and monitoring the outcomes of actions. We will intensify coordinated efforts to resolve common issues and prominent problems that hinder the development of the private economy, and ensure the safety, protection, stability and benefits of enterprises. Third, we will continue to create a favorable environment. We will put in place a mechanism for regular government-business communication, organize regular on-site meetings to support the growth of the private economy, and thoroughly implement the plan for nurturing prominent figures in the private economy in the new era. Efforts will also be made to review and promote experiences for boosting the high-quality development of the private economy across the country and actively creating a favorable environment for supporting the growth of the private economy. Thank you.

China Daily: 

The concession model has played a significant role in the construction of infrastructure, such as transportation, municipal services and energy. However, in some areas, there are still problems such as difficulties for enterprises entering the market and lack of standardized management in project implementation. The NDRC recently announced the newly revised Measures for the Administration of Concession for Infrastructure and Public Utilities. How will the new measures help solve these problems? Thank you.

Liu Sushe:

Thank you, I will answer your question. Implementing concession of infrastructure and public utilities is a significant reform measure and institutional innovation in the field of investment and financing. The NDRC, in cooperation with relevant departments and after thoroughly soliciting opinions and suggestions from all parties, recently revised the measures issued in 2015. This revision adheres to a problem-oriented approach, focusing on prominent problems in the field of concession, including the difficulties faced by private enterprises entering the market and lack of standardized management in project implementation, and proposes a series of innovative institutional measures. 

In order to tackle the difficulties faced by private enterprises in entering the market, the new regulations further improve the mechanism and rules in different stages including project initiation, concessionaire selection and project construction and operation, increasing support for private enterprises. First, during the project initiation stage, the measures emphasize the quality of preliminary work, and adopt the principle of sharing risk between government and social capital. Efforts should be made to scientifically assess the feasibility of concession operations and clarify revenue channels. This ensures project implementation and stabilizes the expectations of private investment. Second, in the stage of concessionaire selection, the measures enhance transparency. The regulations require concessionaires to be chosen through a process of open competition, providing diversified participation channels for private enterprises. This approach boosts their investment confidence. Third, during project construction and operation, the regulations protect the legitimate rights and interests of investors. They prohibit differential treatment of concessionaires based on ownership when providing investment and financing support. Additionally, they stipulate that the benefits of cost-reduction, performance-improvement and innovative actions conducted by concessionaires belong to themselves, with the aim of spurring innovation among private enterprises. 

Regarding the lack of standardized management in project implementation, the newly revised measures improve provisions in areas such as the concept and scope of concession, project management and contract fulfillment, striving to enhance project quality and efficiency. First, they emphasize that the primary goal of concession is to serve the public interest and specify that no additional administrative permits are needed. This clear distinction sets it apart from commercial franchises and aims to curb the practice of charging sky-high concession transfer fees. Second, they clarify the responsibilities of the central and local governments and division of labor among different departments, further streamlining the investment management processes. They also define the scope of user fees, improve the price adjustment mechanism and require dedicated funds for specific purposes. Third, they strengthen penetrating supervision and establish a major event notification system. Additionally, from a full lifecycle perspective, they introduce a system to handle complaints and refine the dispute resolution mechanism, urging governments and enterprises to fulfill their obligations.

Next, the NDRC will work with relevant departments to fully implement the newly revised measures, improve the quality and efficiency of concession projects, and continue to stimulate the vitality of private investment. Thank you. 

Hong Kong Bauhinia Magazine:

Following the rise of the ice and snow economy, China saw a tourism boom during the Qingming Festival holiday. What's your take on the trend of the consumer market? And what are the NDRC's considerations in actively fostering new growth drivers of consumption? Thank you. 

Jin Xiandong:

Thank you for your questions. China's consumer market has been recovering since the beginning of this year. As you mentioned, from the ice and snow economy earlier this year to the consumption boom during the Spring Festival holiday, and now to the "holiday economy," we have seen the emergence of diversified consumption hotspots and trends, which has driven a steady growth in consumer spending. In terms of spending on consumer goods, sales revenues of the market continue to recover. In the first quarter, the retail sales of consumer goods surpassed 12 trillion yuan, up 4.7% year on year. With the ongoing consumption upgrade, retail sales of sports and entertainment products and communication equipment grew by 14.2% and 13.2%, respectively. Bulk consumption has maintained steady growth, and green consumption has become a new trend. Data from the China Association of Automobile Manufacturers shows that automobile sales in the first quarter increased by 4.6% year on year. Sales of new energy vehicles rose by 31.8%, increasing their market share to 31.1%. Service consumption has grown rapidly. The retail sales of services in the first quarter grew by 10% year on year, 6 percentage points higher than that of goods. Demand for cultural and tourism consumption is booming. The box office during the Qingming Festival holiday hit a new historical record. Domestic trips made during the holiday increased by 11.3% compared to the same period in 2019, and tourists' spending increased by 12.7%. The enthusiasm for travel during the upcoming May Day holiday is also rising. These not only reflect people's expectations for a better life, but also demonstrate the momentum and vitality of the country's economic recovery.

Looking forward to the year ahead, driven by policies aimed at bolstering domestic demand and fostering consumption, regions and sectors across the country are continuously innovating consumption scenarios and enhancing the consumption environment. With an increasing number of favorable factors supporting consumption growth, there is optimism that consumption will maintain a stable trajectory of improving and upgrading. The NDRC will further leverage the role of the Inter-Ministerial Joint Conference on improving consumption systems and mechanisms, ensuring coordinated efforts across departments and regions to implement and refine policies and measures aimed at promoting consumption. This will facilitate a transition from post-pandemic recovery to sustained expansion in consumption. The work will be focused on the following three key areas:

First, our efforts will concentrate on ensuring stable employment and boosting income to effectively enhance residents' consumption. We will further implement the employment priority policy, organize and carry out a three-year action plan to promote youth employment, strengthen support for entrepreneurship in rural areas and utilize every possible means to stabilize and promote employment. Simultaneously, we will enhance the mechanism for adjusting minimum wage standards, facilitating a reasonable and steady growth in residents' incomes while also diversifying channels to increase property income for both urban and rural residents.

Second, our focus will be on expanding demand and ensuring high-quality supplies, continually fostering new drivers for consumption growth. We will encourage initiatives oriented toward market and consumer demand, nurturing multiple innovative consumption scenarios and formats. This includes supporting the advancement of new technologies such as artificial intelligence and the Internet of Things, actively promoting trends in smart homes, entertainment, tourism, sports events and domestic brands. Additionally, we will collaborate with relevant departments to effectively implement programs such as trade-in schemes for consumer goods.

Third, we will prioritize protecting consumer rights and cultivating a sound consumption environment. This entails working closely with relevant departments to enhance mechanisms for consumer complaints and protection of rights, expediting the establishment of a robust system for safe consumption, strengthening supervision and law enforcement in consumer affairs, regulating online transactions and effectively safeguarding the legitimate rights and interests of consumers. Thank you.

Nanfang Daily, Nanfang Plus:

This year, China's economic performance has started off well, but there are still many existing problems and contradictions. Could you please provide insights into the key measures that will be implemented to further drive the sustained recovery and improvement of the economy? Thank you.

Yuan Da:

Thank you for your question. As I mentioned earlier, the economy in the first quarter has seen a good start, but we are also keenly aware of the challenges and difficulties in economic operation. The external environment is complex, severe and uncertain, with insufficient effective demand. Some industries and enterprises are facing operational difficulties and risks persist in certain areas.

Regarding these issues, the Central Economic Work Conference last year conducted forward-looking analysis and made systematic arrangements. The Government Work Report further outlined plans, and relevant parties are currently working diligently to address them. Some issues have shown signs of improvement. For example, the manufacturing PMI, indicating market expectation, has returned to expansion territory in March. Certain issues have exhibited new changes. For instance, the demand problem has seen net exports contributing positively to economic growth in the first quarter, compared to the negative contribution in the quarter before. Changes have also been observed in market consumption patterns with the growth rate of catering retail sales declining from 13.9% in the same period last year to 10.8%, while the growth rate of petroleum and product retail sales decreased from 10.3% to 4.5%. Some risks and hidden dangers have accumulated over the long term and require further concerted efforts to resolve.

To effectively carry out our work in the second quarter, it is essential to prioritize implementation. We must steadfastly adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and comprehensively implement the arrangements of the CPC Central Committee and the State Council. This will further solidify and bolster the positive trend of economic recovery. Our focus will be on the following three key aspects:

First, we will strive to implement established policies and key tasks more efficiently. This involves ramping up the implementation of macroeconomic policies, effectively utilizing the proactive fiscal policy and prudent monetary policy. We will coordinate policies across various sectors including industry, investment, consumption, employment and pricing to ensure consistency in our macroeconomic policy direction and foster a collective policy effort. Specifically, we will expedite the implementation of major initiatives such as equipment upgrades, trade-in programs for consumer goods and the issuance of ultra-long-term special treasury bonds to support national major strategies and enhance security capacity in crucial areas.

Second, we will intensify efforts to address primary contradictions and challenges. This entails actively stimulating domestic demand by expediting the allocation of central budget investments and the issuance and utilization of local government special bonds. We will employ a new mechanism for collaboration between government and social capital, and increase consumption of such goods as automobiles, household appliances and smartphones and also consumption of services like cultural and tourism services. Furthermore, we will vigorously advance the construction of a modern industrial system, pursue greater self-reliance and strength in science and technology and propel the transformation and upgrading of traditional industries. We will also support the expansion of new growth drivers such as future industries. Through a comprehensive approach encompassing demand expansion, supply optimization, reform deepening and reserve adjustment, we will ensure price stability at reasonable levels. Additionally, we will deepen reforms in pivotal sectors and effectively implement strategies to attract and utilize foreign investment more robustly. Special attention will be given to facilitating employment for certain key groups such as college graduates, and risks and hidden dangers in key sectors will be addressed.

Third, we will enhance major policy planning and conduct preparatory research to maintain policy options for different eventualities. In response to changing domestic and international environments and evolving development needs, we will conduct thorough major policy planning. For instance, we will explore how to establish the new before abolishing the old and accelerate the development of new quality productive forces tailored to local conditions. Furthermore, we will strengthen economic monitoring, forecasting and early warning, and ensure ongoing preparatory research to maintain macroeconomic policy options for different eventualities. We will also enhance our ability to design cross-cyclical policies and provide effective countercyclical adjustments. This will ensure that we are equipped with adequate and effective policy tools to address various impacts and challenges.

The worth of any plan lies in its implementation. In our upcoming work, we will prioritize effective implementation, problem-solving and coordination, enhancing the delivery and application of macro policies at the micro level to ensure tangible results and to make policies more perceptible and accessible. Thank you!

Chen Wenjun:

Due to time constraints, we only have time for two last questions. 

China News Service:

We have observed that the low-altitude economy has sustained momentum since the beginning of the year. Notably, it was mentioned for the first time in the Government Work Report and the NDRC has advocated for the establishment of new growth engines, including the low-altitude economy. Could you provide an update on any current developments within the low-altitude economy and any forthcoming measures to be introduced this year? Thank you.

Jin Xiandong:

Thank you for your questions. Recently, people have been paying close attention to the low-altitude economy . This sector encompasses logistics transportation, urban transport, agriculture, forestry, plant protection, emergency rescue, sports and leisure activities, cultural tourism, and other sectors. It also involves high-end manufacturing, artificial intelligence and other industries. Characterized by broad service fields, long industrial chains, and diversified business formats, the low-altitude economy is emerging as a strategic industry with promising prospects. It is also a typical representative of new quality productive forces. Promoting the development of the low-altitude economy actively and prudently is of great significance and holds a bright future. 

At present, China has a solid foundation for developing the low-altitude economy, which can be understood in three aspects. First, support policies have been well implemented. Relevant departments have introduced a series of management systems focusing on the optimization of flight activity approval procedures, airspace classification, and real-name registration of drones. Second, we have invested more on infrastructure in the sector. In recent years, various regions have strengthened the construction of low-altitude flight infrastructure. By the end of 2023, 449 general aviation airports and 32 flight service stations had been built and registered across the country. Low-altitude economic development scenarios have been explored and expanded based on local conditions. Recently, the Shenzhen-Zhuhai electric vertical take-off and landing (eVTOL) aircraft completed its inter-city flight across the bay, drawing widespread attention. Third, we have the capability to drive the growth of low-altitude economy. China's new low-altitude vehicles are developing vigorously. In particular, new technologies such as information communications, the Beidou Navigation Satellite System, and high-precision navigation are widely used, and some enterprises' autonomous driving technology continues to advance, all of which will provide technical support for the development of the low-altitude economy.

At the same time, it should also be noted that China's low-altitude economic development is still in its preliminary stages and faces many difficulties and challenges. These include strengthening top-level design, improving safety supervision, enhancing infrastructure, refining basic rules and systems, and cultivating market formats. Next, the NDRC will strengthen coordination with relevant departments, insist on making progress while maintaining stability, and better coordinate high-quality development with high-level safety. The NDRC will promote a favorable environment with market demand as the focus, technological innovation as the driving force, and open airspace as the guarantee, aiming to create a good situation for the healthy development of the low-altitude economy, which will feature rich and diversified scenarios, smart and efficient supply, and safe and standardized supervision. Thank you.

China Economic Information Service (CEIS):

In recent years, China has experienced significant trends, including an aging population and a declining birth rate, leading to a higher proportion of elderly citizens. Despite these changes, there remains a gap between the existing elderly care and childcare services and the actual needs of the population. What considerations does the NDRC have in terms of elderly care and childcare services? Thank you.

Liu Sushe:

I will answer this question. Elderly care and childcare services affect hundreds of millions of families and are among the most practical problems that are of the greatest and most direct concern to the people. General Secretary Xi Jinping attaches great importance to elderly care and childcare services and has issued important instructions and directives many times.

Work should be emphasized on advancing Chinese modernization with support from the high-quality development of the population. The CPC Central Committee and the State Council have pursued a proactive national strategy in response to population aging, refined childbirth policies to promote the long-term balanced development of the population, and made a series of major arrangements to improve the elderly care and childcare service systems. The NDRC actively implements and continuously improves elderly care and childcare services in three aspects: expanding supply of services , optimizing existing capacity, and improving quality.

First, we will expand supply of services. To proactively adapt to population aging and meet the growing demand for elderly care and childcare services, the NDRC has revised and issued an implementation plan for the 14th Five-Year Plan, responding actively to the aging population and constructing an elderly care and childcare service system, giving full play to the demonstration and driving role of investment from the central government. A total of 21.8 billion yuan from the central budget was allocated from 2021 to 2023 to drive the expansion of elderly care and childcare services in various regions. In 2024, China will further increase investment support within the central budget, focusing on the building of the "elderly care and childcare" facility service system. At present, the number of childcare centers per 1,000 people in China has reached 3.3, an increase of 0.8 from 2023. Forty-eight prefectures and cities across the country have launched pilot projects for the construction of comprehensive childcare service centers, which will be further promoted on a larger scale in the future. At the same time, we will also promote professional community-based elderly care institutions through investment-led mechanisms, so that people can enjoy elderly care services nearby.

Second, we will optimize existing capacity. The Outline of the 14th Five-Year Plan proposes building a senior care service system that coordinates home-based and community-based institutions and combines medical and health care. Through the continuous promotion of structural adjustments, the proportion of nursing beds in nursing homes exceeded 60% in 2023, achieving the goals listed in the 14th Five-Year Plan ahead of schedule. In the next stage, we will also organize localities to implement several professional and large-scale integrated medical and nursing care projects to improve the overall standard of elderly care services. At the same time, to effectively address the practical problems of insufficient childcare supply and abundant kindergarten resources, we will work with relevant departments to promote the coordinated allocation of childcare services for children aged 0 to 6 years across various places. By supporting kindergartens with declining enrollments in transitioning to childcare services or other developments, we aim to promote an orderly connection between service provisions for children aged 0 to 3 and 3 to 6 years.

Third, we will improve quality. In 2023, China's population aged 60 and over accounted for 21.1% of the total, marking the entry into a moderately aging society , which places higher requirements on the quality of elderly care products and services. This year's "No.1 central document" issued by the central authorities focuses on developing the silver economy and improving the well-being of the elderly and proposes 26 policy measures. Next, we will work with relevant departments to fully implement these policies. At the same time, to further improve childcare services, we will also work with relevant departments to organize and implement the quality assessment of childcare institutions, ensuring that policies are implemented earnestly so that people can receive better services. Thank you.

Chen Wenjun:

Thank you to all the speakers and journalists for your participation. Today’s briefing is hereby concluded. See you next time.

Translated and edited by Liu Sitong, Wang Qian, Li Xiao, Wang Yanfang, Xiang Bin, Huang Shan, Wang Ziteng, Li Huiru, Cui Can, Zhang Junmian, Qin Qi, Yuan Fang, Yan Bin, Ma Yujia, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speaker:

Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 16, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS), to brief you on China's economic performance in the first quarter of 2024, and to take your questions. 

Now, I'll give the floor to Mr. Sheng for his introduction. 

Sheng Laiyun:

Friends from the media, ladies and gentlemen, good morning. I'm very glad to be taking part in a press conference held by the SCIO again, and speaking with you. It's great to see many old friends here. As usual, I will start by briefing you on the main indicators and data for the economic performance in the first quarter of this year, and then take your questions.

The national economy got off to a good start in the first quarter.

In the first quarter, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council; adhered to the general principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old; intensified efforts on macro regulation; gave priority to ensuring stability in expectations, growth and employment; and continued to push ahead with transforming the growth model, making structural adjustments, improving quality and enhancing performance. As a result, policies continued to take effect, production and demand were stable and even increased, employment and prices were generally stable, market confidence continued to rise, and high-quality development made new progress. The national economy continued its good recovery momentum, getting off to a good start.

According to preliminary estimates, gross domestic product (GDP) in the first quarter reached 29,629.9 billion yuan, up by 5.3% year on year at constant prices, or up by 1.6% over that in the fourth quarter of 2023. By industry, the value added of the primary industry was 1,153.8 billion yuan, up by 3.3% year on year; that of the secondary industry was 10,984.6 billion yuan, up by 6.0%; and that of the tertiary industry was 17,491.5 billion yuan, up by 5.0%.

1. Agricultural production witnessed good momentum and animal husbandry grew steadily.

In the first quarter, the value added of agriculture (crop farming) witnessed a year-on-year increase of 3.8%. The planting area of winter wheat remained stable and generally good growth was observed. The spring farming and sowing were carried out in an orderly manner. According to the year-round planting intention survey, the planting area intended for rice and corn nationwide increased. In the first quarter, the output of pork, beef, mutton and poultry was 24.90 million tons, up by 1.4% year on year. Of this total, the output of pork dropped by 0.4%, while the outputs of beef, mutton and poultry grew by 3.6%, 0.1% and 6.1%, respectively. The output of milk was up by 5.1% and that of eggs up by 1.5%. At the end of the first quarter, the number of pigs registered in stock was 408.50 million, down by 5.2% year on year; and 194.55 million pigs were slaughtered, down by 2.2% in the first quarter.

2. Industrial production registered fast growth and high-tech manufacturing growth accelerated.

The total value added of industrial enterprises above designated size grew by 6.1% year on year in the first quarter. In terms of sectors, the value added of mining increased by 1.6%, that of manufacturing increased by 6.7%, and that of the production and supply of electricity, thermal power, gas and water increased by 6.9%. The value added of high-tech manufacturing increased by 7.5%, 2.6 percentage points faster than the fourth quarter of 2023. Analysis by types of ownership showed that the value added of state holding enterprises was up by 5.2%; that of share-holding enterprises was up by 6.5%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 4.8%; and that of private enterprises was up by 5.4%. In terms of products, the production of electric vehicle charging facilities, 3D printing devices and electronic components increased by 41.7%, 40.6% and 39.5% year on year, respectively. In March, the value added of industrial enterprises above designated size went up by 4.5% year on year, or down by 0.08% month on month. In March, the manufacturing purchasing managers' index (PMI) stood at 50.8%, 1.7 percentage points higher than the previous month. The production and operation expectation index was 55.6%, up by 1.4 percentage points. In the first two months, the total profits made by industrial enterprises above designated size were 914.1 billion yuan, up by 10.2% year on year.

3. The service sector enjoyed sound growth momentum and modern services grew quickly.

In the first quarter, the value added of services went up by 5.0% year on year. Specifically, the value added of information transmission, software and information technology services, leasing and business services, transportation, storage and postal services, accommodation and catering, and wholesale and retail grew by 13.7%, 10.8%, 7.3%, 7.3% and 6.0%, respectively. In March, the index of services production increased by 5.0% year on year. Specifically, the index of services production of information transmission, software and information technology services, leasing and business services, and accommodation and catering went up by 12.7%, 8.2% and 6.2%, respectively. In the first two months, the business revenue of service enterprises above designated size grew by 12.0% year on year, 3.7 percentage points faster than that of 2023. In March, the business activity index for services stood at 52.4%, 1.4 percentage points higher than that of the previous month. The business activity expectation index was 58.2%. Among which, the business activity index for industries like postal services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services and capital market services were above 60.0%.

4. Market sales registered stable growth and service consumption grew quickly.

In the first quarter, the total retail sales of consumer goods reached 12,032.7 billion yuan, up by 4.7% year on year. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 10,428.0 billion yuan, up by 4.6%, and that in rural areas stood at 1,604.7 billion yuan, up by 5.2%. Grouped by consumption patterns, the retail sales of goods were 10,688.2 billion yuan, up by 4.0%; and the income of catering was 1,344.5 billion yuan, up by 10.8%. Goods for basic living enjoyed good sales, with the retail sales of grain, oil and food and of beverage by enterprises above designated size up by 9.6% and 6.5%, respectively. The sales of some upgraded goods grew quickly. The retail sales of sports and recreational articles and of communication equipment by enterprises above designated size grew by 14.2% and 13.2%, respectively. Online retail sales reached 3,308.2 billion yuan, up by 12.4% year on year. Specifically, the online retail sales of physical goods were 2,805.3 billion yuan, up by 11.6%, accounting for 23.3% of the total retail sales of consumer goods. In March, the total retail sales of consumer goods increased by 3.1% year on year, or up by 0.26% month on month. In the first quarter, the retail sales of services went up by 10.0% year on year.

5. Investment in fixed assets rose steadily and investment in high-tech industries grew quickly.

In the first quarter, the investment in fixed assets (excluding rural households) reached 10,004.2 billion yuan, up by 4.5% year on year, 1.5 percentage points faster than that of the previous year; the investment in fixed assets was up by 9.3% with the investment in real estate development deducted. Specifically, the investment in infrastructure grew by 6.5%; that in manufacturing grew by 9.9%; and that in real estate development declined by 9.5%. The floor space of new commercial buildings sold was 226.68 million square meters, down by 19.4% year on year; the total sales of new commercial buildings were 2,135.5 billion yuan, down by 27.6%. By industry, the investment in the primary industry went up by 1.0%, that in the secondary industry up by 13.4%, and that in the tertiary industry up by 0.8%. The private investment went up by 0.5%. Deducting the investment in real estate development, the private investment grew by 7.7%. The investment in high-tech industries grew by 11.4% year on year, of which the investment in high-tech manufacturing and high-tech services grew by 10.8% and 12.7%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicles and equipment and in the manufacturing of computers and office devices grew by 42.7% and 11.8%, respectively. In terms of high-tech services, the investment in e-commerce services and information services grew by 24.6% and 16.9%, respectively. In March, the investment in fixed assets (excluding rural households) grew by 0.14% month on month.

6. Imports and exports of goods grew steadily and the trade structure continued to optimize.

In the first quarter, the total value of imports and exports of goods was 10,169.3 billion yuan, an increase of 5.0% year on year. The total value of exports was 5,737.8 billion yuan, up by 4.9%. The total value of imports was 4,431.5 billion yuan, up by 5.0%. The trade balance was 1,306.3 billion yuan in surplus. Imports and exports by private enterprises increased by 10.7%, accounting for 54.3% of the total value of imports and exports. Imports and exports with Belt and Road partner countries grew by 5.5%, accounting for 47.4% of the total value of imports and exports. Exports of mechanical and electrical products grew by 6.8%, accounting for 59.2% of the total value of exports. In March, the total value of imports and exports was 3,558.0 billion yuan, down by 1.3% year on year. The total value of exports was 1,986.9 billion yuan, down by 3.8%; and that of imports was 1,571.0 billion yuan, up by 2.0%.

7. Consumer prices were generally stable and producer prices for industrial products dropped.

In the first quarter, the consumer price index (CPI) maintained the same level year on year. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 1.7%; clothing up by 1.6%; housing up by 0.2%; articles and services for daily use up by 0.8%; transportation and communication down by 1.4%; education, culture and recreation up by 2.3%; medical services and health care up by 1.4%; and other articles and services up by 2.9%. In terms of food, tobacco and alcohol prices, the prices of fresh fruit went down by 7.3%, pork down by 7.0%, fresh vegetables down by 3.9% and grain up by 0.4%. The core CPI excluding the prices of food and energy grew by 0.7% year on year. In March, the CPI went up by 0.1% year on year, or down by 1.0% month on month.

In the first quarter, producer prices for industrial products went down by 2.7% year on year. Specifically, the prices in March dropped by 2.8% year on year, or down by 0.1% month on month. In the first quarter, the purchasing prices for industrial producers went down by 3.4% year on year. Specifically in March, the prices dropped by 3.5% year on year, or down by 0.1% month on month.

8. Employment was generally stable and the surveyed unemployment rate in urban areas declined slightly.

In the first quarter, the urban surveyed unemployment rate averaged 5.2%, down by 0.3 percentage points over that of the same period last year. In March, the surveyed unemployment rate in urban areas was 5.2%, 0.1 percentage points lower than that of the previous month and that of the same month last year. The surveyed unemployment rate of population with local household registration was 5.3% and that of population with non-local household registration was 5.1%, of which, the rate of population with non-local agricultural household registration stood at 5.0%. The urban surveyed unemployment rate in 31 major cities was 5.1%. Employees of enterprises worked an average of 48.6 hours per week. By the end of the first quarter, the number of rural migrant workers totaled 185.88 million, up by 2.2% year on year.

9. Residents' incomes increased steadily and the incomes of rural residents grew faster than that of urban residents.

In the first quarter, the nationwide per capita disposable income of residents was 11,539 yuan, a nominal growth of 6.2% year on year; and the real growth was 6.2% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 15,150 yuan, a nominal growth of 5.3% year on year and a real growth of 5.3%; and the per capita disposable income of rural households was 6,596 yuan, a nominal growth of 7.6% year on year and a real growth of 7.7%. In terms of income sources, the nationwide per capita salary income, net business income, net property income and net income from transfers grew by 6.8%, 6.8%, 3.2% and 4.8% in nominal terms, respectively. The median of the nationwide per capita disposable income of residents was 9,462 yuan with nominal growth of 6.4% year on year.

Generally speaking, the national economy made a good start in the first quarter with positive factors amassing, laying a strong foundation for achieving the annual development targets. However, we should be aware that the external environment is becoming more complex, severe and uncertain, and the foundation for stable and sound economic growth is not yet solid. Next, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirits of the Central Economic Work Conference and the "two sessions" (the annual gatherings of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference), and adhere to the principles of pursuing progress while ensuring stability, promoting stability through progress and establishing the new before abolishing the old. We should fully and faithfully apply the new development philosophy on all fronts, accelerate the efforts to create a new development pattern, strive to promote high-quality development, actively cultivate and develop new quality productive forces, and strengthen the implementation of macro policies. We must effectively boost economic vitality, prevent and defuse risks, improve public expectations, consolidate and enhance the momentum for economic recovery and growth, and continue to effectively pursue higher-quality economic growth and appropriately increase economic output.

There are the main indicators and data regarding China's economic performance in the first quarter of this year. Now, I'm glad to answer your questions. 

Shou Xiaoli:

Thank you, Mr. Sheng, for your introduction. Now, the floor is open for questions. Please state which news organization you represent before asking your questions. 

Phoenix TV:

We've just reviewed the released data. Overall, major economic indicators show quite positive performance in the first quarter. How would you evaluate the overall economic performance in the first quarter? 

Sheng Laiyun:

Thank you for your question. The economic indicators in the first quarter did indeed perform well. In the first quarter, we intensified the implementation of macroeconomic policies with concerted efforts from various regions and sectors. Policies were enacted proactively and implemented rigorously, leading to sustained economic recovery and a favorable start to the year. I'd like to summarize the first quarter's economic performance with four groups of key terms.

The first key term is continuing recovery. In the first quarter of this year, the overall national economy continued last year's upward trend, with crucial indicators of production demand showing positive growth. In terms of production, the primary industry remained relatively stable, with a year-on-year growth of 3.3%, according to data recently released. The secondary industry grew by 6%. The growth rate of value added to industrial enterprises above the designated size increased by 3.1 percentage points year on year and by 0.1 percentage point compared to the fourth quarter of last year, showing stable growth. The service industry grew by 5%, with contact-intensive services, such as accommodation, catering, transportation and tourism, continuing to grow rapidly. As we know, last year witnessed rapid development in the service industry following the new phase of pandemic prevention and control. Despite a high growth rate in the service industry last year, this year has witnessed stable growth, demonstrating steady production with upward trends. In terms of the three major demands, indicators of investment, consumption and import and export demonstrate overall stable growth. Fixed asset investment in the first quarter increased by 4.5% year on year, a 1.5 percentage points higher from the 3% growth rate of last year. Total retail sales of consumer goods increased by 4.7%, with service retail sales growing by 10%. According to data from customs, import and export grew by 5%, reaching a record high in six quarters. Therefore, the three major demands increased with stability. 

The second key term is a steady start, which is reflected in four major macroeconomic indicators: GDP growth, employment, inflation and international balance of payments. In the first quarter, GDP grew by 5.3% year on year, slightly higher than the growth rate of 5.2% in the fourth quarter of last year, indicating stable growth. Employment indicators show steady improvement, with the urban surveyed unemployment rate averaging 5.2% in the first quarter, a decrease of 0.3 percentage point compared to the same period last year. With the economy picking up, the overall employment situation has improved. The consumer price index remains consistent compared to the first quarter of last year, while the core CPI, excluding food and energy, increased by 0.7% year on year, similar to quarters from last year. The international balance of payments remains overall balanced. Looking at these four major macroeconomic indicators — GDP growth, employment, inflation and international balance of payments — the overall economic trend in the first quarter remains stable, with a sound start.

The third key term is progress with stability. It refers to the national economy achieving reasonable growth in quantity while also achieving effective improvement in quality, thereby continuing to make new advancements in high-quality development. First, innovation development has achieved new results. In the first quarter, the value added of high-tech manufacturing industries above the designated size increased by 7.5% year on year, 2.6 percentage points higher than the fourth quarter of last year. Coordinated development mainly refers to continued improvement of industrial and demand structures. In the first quarter, domestic demand contributed 85.5% to economic growth. Both the internal structures of industries and demands have seen positive improvements. Green development has continued to make new achievements. In the first quarter, energy consumption per unit of GDP decreased by 0.1% year on year. If the consumption of raw materials and non-fossil energy is deducted, energy consumption would decrease even further. Open development and high-level opening-up have further advanced, and China's total imports and exports with the Belt and Road countries grew by 5.5%. Shared development has continued to make new achievements, with the per capita disposable income of residents nationwide increasing by 6.2%. These indicators suggest that high-quality development continues to make new progress.

The fourth key term is promising start. It's precisely because the economy has continued to recover with a smooth initial process and steady progress that we have achieved a promising start. Looking at various major economic indicators, we find that the stability and coordination of economic performance have strengthened, market vitality has increased and the confidence of market entities has continued to rise. The PMI, which was previously released, stood at 50.8% in March, rebounding to the expansion zone. This reflects the overall positive momentum of sustained recovery in the economy, leading to a promising start overall.

However, we must be sensibly aware that the global situation remains complex and challenging, and domestically we are at a critical stage of structural adjustment and transformation. The confidence of market entities and the momentum of economic recovery both need further enhancement. Going forward, we must resolutely implement the decisions and arrangements made by the CPC Central Committee and the State Council to promote stable economic development. We need to further intensify policy implementation, consolidate the foundations of the economy, continue enhancing overall market confidence and economic momentum and solidify the basis for continued improvements with economic recovery. Thank you!

The Beijing News:

We have noticed that the CPI has been positive for two consecutive months, but in March the growth rate significantly narrowed, only rising by 0.1%, which is lower than external expectations. What are the reasons for this? What are the predictions for future trends in CPI? Thank you.

Sheng Laiyun:

Thank you for your questions. We are very concerned with changes in market prices. First, the CPI in March, as you just mentioned, decreased by 1% month on month and increased by 0.1% year on year, with the increase dropping by 0.6 percentage point compared to the previous month. This is mainly due to seasonal price declines after the Spring Festival, with significant drops in food prices and prices of services such as tourism. After the Spring Festival, the weather has warmed up and major agricultural products are in ample supply, leading to a 3.2% decrease in March's food prices. That led to a fluctuation of nearly 0.6 percentage point in CPI month on month. After the Spring Festival, tourism prices, including airfare, significantly decreased, driving down prices for non-food items. According to estimates, the decrease in non-food prices resulted in a 0.37 percentage point month-on-month decrease in March's CPI. The seasonal decline in food and non-food prices after the Spring Festival caused a significant month-on-month decrease in CPI during the month of March.

Second, despite a month-on-month decrease in March, the CPI showed overall stability in terms of quarterly performance. The core CPI, excluding energy and food prices, was 0.7% in the first quarter, which was essentially the same as the fourth quarter of last year. The CPI stayed negative for three consecutive months in the fourth quarter of last year, with the average CPI for the fourth quarter down by 0.3% year on year. However, in the first quarter of this year, the CPI remained unchanged from a year earlier, and increased by 0.3 percentage point compared to the fourth quarter of last year. This was consistent with the momentum of economic recovery.

Third, CPI fluctuations in the first quarter were due to distinct structural and temporal factors. Among the eight major categories in the consumer price index, food prices were down by 3.2%, and transportation and communication decreased by 1.4%, according to the newly released data. Prices for other categories, including clothing, housing, education, culture and recreation, as well as other goods and services, all witnessed increases. Particularly, prices for education, culture and recreation, as well as clothing prices, even increased by more than 1.5 percentage points. Considering both monthly and quarterly figures, the changes in the consumer price index demonstrate distinct structural characteristics. 

Lastly, regarding the future trend, we believe that the CPI is expected to recover slowly. As the economy sustains positive momentum, we will see increasing demand, which serves as an important fundamental factor to support the recovery of the CPI. Moreover, agricultural products such as hogs are also seeing a turning point in price adjustment. Consumption during upcoming holidays, such as the Labor Day holiday, will continue to drive consumer price recovery for travel-related items. In addition, there are other factors that can boost demand, hence having impacts on consumer prices. Overall, the CPI is expected to witness gradual recovery from a low level. Thank you.

CCTV:

The economic growth in the first quarter represents good momentum for economic recovery. Did this performance exceed expectations? What are the reasons behind this? Thank you.

Sheng Laiyun:

In the first quarter, China's GDP grew by 5.3% year on year. Many people believe this figure is higher than expected, but I'd like to elaborate on this a bit. First, China's 5.3% GDP growth portrays real-world conditions. From the perspective of calculation, the 5.3% GDP growth in the first quarter was mainly driven by improvement in industry and services. The industrial added value grew by 6% in the first quarter, marking a significant increase compared to the level of the same period last year and that during the fourth quarter. Mainly due to the recovery of exports and the adoption of a series of policies, the country saw increasing demand in the first quarter. Hence, the industrial sector achieved a sound performance. According to preliminary calculations, the 6% growth in the industrial sector contributed 37.3% to overall GDP growth, which promoted growth of the latter by nearly two percentage points. The service sector, due to the Spring Festival, made a larger contribution to GDP growth in the first quarter. As such, the service sector continued its rebound from a relatively high level last year. In particular, the contact-based service sector witnessed rapid growth. In the first quarter, retail sales of services grew by 10%, six percentage points higher than that of commodities. You must have noticed reports focused on this. According to data released by the Ministry of Culture and Tourism, the number of travelers and tourism consumption during the Spring Festival holiday exceeded the levels recorded during the same period in 2019, and the number of tourist trips increased by 34.3% year on year. The service sector has maintained a good momentum of development, with its contribution to economic growth being 55.7% in the first quarter. Industry and services contributed more than 90% of GDP growth. Based on calculations, the GDP growth in the first quarter was consistent with industrial recovery and the rebound of the service sector . 

Second, the 5.3% GDP growth was achieved on solid ground. The GDP is calculated by the production approach and verified by the expenditure approach. The three major demand indicators released today all witnessed stable rebound. Fixed-asset investment grew by 4.5% in the first quarter compared to the same period last year. This figure didn't deduct commodity prices, and the real growth rate would be 5.9% if commodity prices were deducted. Total retail sales of consumer goods increased by 4.7%, and exports rose by 5%. Based on calculations, the growth rates of the three major indicators were consistent with that of the GDP.

Third, the growth of physical indicators was consistent with the GDP growth. To evaluate China's economy, people tend to use freight volume or electricity generation volume for verification. In the first quarter, the total electricity consumption increased by 9.6%, with industrial electricity consumption rising around 8%. Freight volume grew by 5.3%, commercial passenger traffic increased by 20.5% and port cargo throughput increased by 6.1%. When it comes to exports, port freight volume is a very straightforward indicator. Additionally, the bank loan data that everyone follows also shows that the M2 balance at the end of March increased by 8.3% year on year. Given all this, we can see that the growth of physical indicators was consistent with the 5.3% GDP growth.

Of course, we also noticed that there were imbalances in economic recovery. GDP calculation is a combination of the added value of all industries, which is an indicator that reflects the overall situation. We can see that the recovery of consumption was not as well as production, and the recovery of micro, small and medium-sized enterprises (MSMEs) was not as good as large enterprises. As such, there were disparities in economic recovery, and people may also have different opinions when it comes to these figures. Going forward, we will pay closer attention to imbalances in economic development, especially the development of MSMEs, while reinforcing the basis for economic recovery.

21st Century Business Herald:

Mr. Sheng mentioned just now that the industrial recovery situation was relatively good in the first quarter. Could you please provide an overall evaluation of the recovery of industrial production in the first quarter? And what are the reasons for this, as well as the subsequent trends and prospects? Thank you.

Sheng Laiyun:

Thank you for your question. Industry is indeed a highlight in the recovery and development of the first quarter, with China's value-added industrial output increasing by 6%. This is also a relatively good performance in recent years, with an increase of 3.1 percentage points compared to the first quarter of last year, and an acceleration of 0.8 percentage point compared to the fourth quarter of last year, indicating a positive trend in industrial economic recovery. Why was industrial performance better than expected in the first quarter? What are the reasons? Our analysis covers several factors.

First, business confidence is increasing driven by policy. You are all aware that from last year to this year, and especially this year, all regions and departments released a series of policies and measures to support the development of the real economy. Moreover, all regions have been accelerating the implementation of policies. These policies have had positive effects on enhancing the drive for enterprise production, improving the environment for enterprise development, and boosting confidence in enterprise development. China's official manufacturing PMI, which has just been released, came in at 50.8% in March, up 1.7 percentage points from February. Furthermore, the PMI for large, medium and small enterprises are all above the critical threshold of 50%, which has not been easy. This indicates that confidence among enterprises is increasing.

Second, both domestic and external demand have changed for the better. From the perspective of external demand, as the world economy shows signs of recovery, our exports in the first quarter were better than expected. According to the customs statistics that have just been released, exports increased by 4.9%. We have our own data, called the export delivery value of industrial products. It was -2.2% in the fourth quarter of last year and 0.8% in the first quarter of this year, showing a rebound of 3 percentage points. From the perspective of domestic demand, we are more interested in one data point, which is the value added of the consumer goods manufacturing industry. Because from the perspective of household consumption, the focus is mainly on purchasing processed consumer goods. Last year, the value added of consumer goods manufacturing enterprises was around zero and continued to run at a low level. The value added of consumer goods manufacturing enterprises grew by 4.2% in the first quarter of this year, an increase of more than 4 percentage points. Therefore, we can feel the improvement in both domestic and external demand, supporting industrial economic growth.

Third, the industrial recovery is related to the promotion of some recent policies. The central government introduced a policy to promote large-scale equipment upgrades and the trade-in of consumer goods, which also boosted business confidence to some extent, prompting some enterprises to schedule production in advance. Another reason for the significant rebound is related to the continuous cultivation and driving force of new growth momentum. Among the newly released data, the value added of high-tech manufacturing industry above the designated size increased by 7.5% in the first quarter, 1.4 percentage points higher than the growth rate of industrial enterprises above the designated size. We have calculated that the major high-tech manufacturing industry in the first quarter drove the value-added industrial output by 1.1 percentage points, highlighting the role of new growth momentum and new industries.

Of course, the relatively good industrial growth rate also has a certain relationship with the base from last year. During the first quarter of last year, some regions were still affected by the pandemic and the industrial value-added growth was 2.9%. As such, there is indeed a base effect, but the main reasons are the three factors I just mentioned. Looking ahead, as the several factors supporting the improvement in industrial recovery continue to play a role in the foreseeable future, we predict that the positive trend of industrial economic recovery will continue. Of course, further consolidating the foundation of the recovery requires increasing support for the real economy. Thank you.

Reuters:

Some March economic indicators such as foreign trade, credit and commodity prices show weak economic growth and insufficient aggregate demand. What are the reasons for this? And will a slowing global economy and a higher statistical base later in the year jeopardize hitting this year's growth target of around 5%?

Sheng Laiyun:

Thank you for your question. It's a good question. You may have noticed that some economic indicators declined in March compared to January and February. This decline was from a statistical perspective. We conducted a thorough analysis, finding that one very important reason for this is that the comparison base from last year was relatively high, meaning that the actual production level for March was not low. In January and February last year, some regions were still affected by the pandemic, and some companies delayed their production, including exports and order fulfillment, until March. In March and April last year, whether in terms of industry or imports and exports, some major indicators had relatively high base numbers, and some industries saw a rebound in production and sales, resulting in a relatively high comparison base. Due to this relatively high base, the year-on-year growth rate this year declined. As I just mentioned, the monthly production level is not low. Let me give you an example. In terms of the added value of industries above designated size, when converted into added value per working day, March's figures show faster growth compared to January and February. However, in terms of year-on-year growth, there was a 2.5 percentage points decline in March compared to January and February. Some physical quantity indicators, such as industrial electricity consumption, exhibit similar characteristics. The average daily industrial electricity consumption in March was higher than that of January and February, and the same is true of freight volume and loan indicators. As such, when observing changes in China's economy, it is important to look not only at year-on-year growth data but also at month-on-month changes and some absolute quantities. This is especially true when observing short-term economic fluctuations.

Second, we should pay attention to the future trend of the economy, including the trend in the second quarter and whether the 5% target can be achieved for the whole year. Currently, there is an accumulation of positive factors supporting the continued recovery of the Chinese economy. First, as mentioned earlier, external demand is picking up. Although the global economy faces complex situations and great uncertainties this year, some leading indicators show that the global economy is recovering. The global manufacturing PMI in March was 50.6%, marking the third consecutive month of recovery. I also noticed the indicators released by the World Trade Organization (WTO) and the China Council for the Promotion of International Trade (CCPIT) on global freight volume. The WTO predicts that global trade in goods growth may reach 2.6% this year, an improvement from last year's negative growth, which is conducive to supporting export demand. Internally, many economic indicators, including the recently released PMI and other related demand indicators, show that China's economy is recovering. This recovery is especially driven by policy support. Earlier this year, to continue stimulating demand, the central government introduced policies to support equipment upgrades and the trade-in of consumer goods. These policies are the driving force behind the ongoing economic recovery. In addition, based on the prospects for the next stage, the holiday economy will continue to show positive effects. As a result, the economy is expected to maintain its recovery momentum in the future.

Last, I would like to emphasize that when we observe the Chinese economy, in addition to changes in economic aggregate, we should also pay more attention to the improvement of quality and efficiency, especially the effectiveness of China's economic structural adjustment and the progress of high-quality development. Since the 18th CPC National Congress, China's economy has entered a new stage of transformation, upgrading, and high-quality development. Traditional industries have been adjusted, new driving forces have been accelerated, and high-quality development has continued to advance. Even though in the past few years, we have faced a complicated and challenging global landscape and undergone growing pains of domestic structural adjustment and transformation, including adjustments to the real estate sector, China has persisted with economic transformation and upgrading, and high-quality development continues to yield new results. To illustrate this, let me provide some data. In terms of innovation and development, R&D expenditure accounted for 1.91% of GDP in 2012 and 2.64% last year. The urbanization rate has also been increasing steadily, rising from about 53% in 2012 to 66.2% last year, an increase of nearly 1 percentage point annually. Moreover, China's share of the international export market has grown from about 10% in 2012 to around 14% currently. In addition, our economic aggregate and residents' income have more than doubled compared to 2012. This demonstrates that our innovative development, coordinated development, green development, open development, and shared development have continued to make steady progress, and the quality of development has been consistently improving.

Next, China is still in the stage of structural adjustment, transformation, and upgrading. Some companies need to undergo transformation and upgrading, which means they have to endure some growing pains during this process. Due to the adjustment of traditional industries and the cultivation of new driving forces, it is natural for some economic growth fluctuations to occur. However, the quality of development continues to improve, and high-quality development continues to make progress. This is what constitutes the basis for China's economic recovery. Therefore, when we say that the economy is improving, it is not just about a rebound in the growth rate but also an improvement in quality. Only by looking at the Chinese economy in this way can we have a more comprehensive view and enhance our confidence in China's economy. I am fully confident about the Chinese economy's continued improvement and high-quality development. Thank you.

Red Star News:

How were real estate investment and sales in the first quarter? Have the measures introduced in some places to guarantee the delivery of housing projects and promote real estate financing taken effect? What is the outlook for the industry in the future? Thank you.

Sheng Laiyun:

Thank you for your questions. The real estate market is of great concern to everyone. Based on real estate investment and sales in the first quarter, the housing market is still in the process of adjustment. Regarding real estate issues, there are a few points to consider:

First, the decline in real estate sales indicators expanded in the first quarter of this year, which can be attributed to the high base of comparison last year. As I mentioned earlier, real estate sales saw a "mini-boom" in March due to special circumstances last year. The sales area of newly built commercial housing in March was approximately 138 million square meters, the highest among all months last year. The growth rates of new commercial housing sales and sales area in April were the fastest in the 12 months of last year. The sales area of newly built commercial buildings in March this year was 113 million square meters, which was about 25 million square meters less than in March last year. The year-on-year growth rate is slowing down. However, I also compared the total real estate sales volume in each month after June last year and found that the total real estate sales volume in March this year was higher than the absolute level in each month in the second half of last year. This suggests that while real estate sales in the first quarter of 2024, especially in March, did experience a decline due to the high base of comparison from the same period last year, the absolute amount is not low.

Second, the effects of policy measures supporting the stable development of the real estate sector are continuing to manifest. Let me provide you with a few pieces of data: Regarding the "three major projects," after the Central Financial Work Conference last year, both the central government and local authorities accelerated the progress of the "three major projects," which included the building of government-subsidized housing and dual-use public infrastructure that can accommodate emergency needs, as well as the redevelopment of urban villages, amid efforts to foster a new development model for the real estate sector. Data shows the "three major projects" have boosted real estate investments by 0.6 percentage point, demonstrating their effectiveness. The second set of data pertains to the positive impact of the "white list" mechanism on financing amounts for compliant real estate projects. As we know, this year, in order to address financing difficulties faced by real estate enterprises, relevant departments have introduced policies to support financing projects included in the "white list." According to first-quarter data, the decline in domestic loans for real estate enterprises narrowed by 1.2 percentage points, directly credited to the application of the financing policies associated with the "white list" mechanism. The third set of data concerns real estate sales. This year various localities have intensified their efforts to support the stable development of the real estate sector, including measures such as relaxing purchase restrictions and lowering interest rates for housing provident fund loans. Moreover, over 30 cities have implemented selling-old-for-new schemes. As a result of local governments' collective efforts, the decline in both the sales area and sales volume of newly built commercial housing in the first quarter narrowed by 1.1 percentage points and 1.7 percentage points, respectively, compared to the January-February period. These three sets of data demonstrate the continued apparent impact of policies supporting the stable development of the real estate sector.

Lastly, I would like to emphasize that we should have a rational perspective on this round of real estate adjustments. I also shared some views on this issue during the press conference in the third quarter of last year. On one hand, after more than two decades of rapid expansion, the real estate sector is undergoing a needed adjustment according to the growth cycle of the sector. The current adjustment in the real estate sector is beneficial to the subsequent establishment of new models for its high-quality development. As the traditional production capacity is cleared from the market, developers can build better houses and provide better services, which is also beneficial for consumers. Furthermore, China's ongoing urbanization serves as a fulcrum to support its real estate market. As of 2023, the urbanization rate of the country's permanent residents was 66.2%, but the urbanization rate in terms of registered permanent residents was still less than 50%. There are 180 million rural migrant workers who have not yet gained permanent urban residency, and the proportion of home purchases in cities among these migrant workers is not high. Among our existing housing stock, small- and medium-sized units below 90 square meters still account for the vast majority. With the improvement in people's living standards and further promotion of urbanization, the overall rigid demand and need for improved housing remain sufficient. The Chinese real estate market still has the conditions to support its sustainable and healthy development. We need to rationally view the current round of real estate adjustments. Thank you.

Bloomberg:

You just mentioned that China's GDP grew 5.3% year-on-year in the first quarter of 2024, and the figure was thought to be higher than expected. Does this mean that the economy is relatively stable and does not require strong policy support? Or do you think there are still some weaknesses in the current economic situation, such as imbalanced recovery? The second question is related to industrial output in March, which seems to be relatively weak compared to expectations. Does this indicate any slowdown in the manufacturing sector? Thank you.

Sheng Laiyun:

Thank you for your question. I actually indirectly addressed this question earlier. First, regarding fluctuations in industrial output in March, it reflects some changes in the domestic and international environment, indicating the need for further enhancement of industrial development momentum. On the other hand, the decline in industrial output in March is partially influenced by the comparison base, and we maintain an optimistic outlook for the future. Furthermore, concerning the foundation for economic recovery, the 5.3% GDP growth rate indicates the national economy has sustained recovery momentum and got off to a good start. However, as I explained earlier, there are indeed imbalances evident in the process of economic recovery and the performance of various industries. The growth momentum of the consumer goods manufacturing sector is still lower than the average growth rate of industrial companies above designated size, and disparities exist among different regions. Traditional industries recovered at a slower pace due to the drag from real estate adjustments. However, the value added of high-tech manufacturing grew 7.5% year-on-year, 1.4 percentage points higher than the average level of industrial companies above designated size. They became an important driving force behind the relatively good performance of the industrial sector within the first quarter. Therefore, the economic recovery is indeed uneven and exhibits some differentiation. However, I think this is normal. As I mentioned earlier, the Chinese economy is currently in a new stage of transformation and development. From the perspective of transformation, some traditional industries do require adjustments, while emerging industries are performing well. Looking ahead, our policies will continue to increase support for the development of the real economy. In addition to overall support, we will pay more attention to addressing imbalances in economic development, accelerate the cultivation of new industries, particularly emphasizing technological innovation, and coordinate the technological transformation of traditional industries with the development of new industries and the cultivation of future industries. Thank you.

China Profiles:

The fifth national economic census is an important investigation to take stock of the country’s conditions and strengths. Could you share with us the progress of the census? And how to ensure the quality of its statistics? Thank you.

Sheng Laiyun:

Thank you for your questions as well as your interest toward our statistical work and the economic census. The fifth national economic census is a large-scale investigation of the national conditions and strengths as our country enters a new era. Under the firm leadership of the Party committees and government departments at all levels, and with the concerted efforts of census workers and statisticians, the progress of the fifth economic census has been very smooth. We have nearly completed the on-site registration phase with a data submission rate already exceeding 90%. Currently, we are transitioning from on-site registration to reviewing the data. After this review, we will conduct quality checks and then compile the data. The results of the fifth economic census will be released to the public in the third quarter, providing a clearer and more comprehensive understanding of our economic landscape.

Regarding data quality, the NBS places high importance on this aspect, treating it as the lifeline of our work. Striving for high-quality census results is both a goal and a requirement of the fifth economic census. From the outset, we established a comprehensive system for data quality control that is based on Statistics Law and regulations regarding census, and have implemented corresponding quality control measures. Throughout the census process, we have strictly adhered to these protocols, including enhancing training for census workers to ensure accurate data collection. We also have robust monitoring mechanisms in place to ensure data is accurately recorded and reviewed on an ongoing basis. As I just mentioned, we have moved into the data verification stage, where we will further examine the submitted data, including logical consistency checks. If issues arise, we will return to the businesses for verification. Additionally, we will conduct a nationwide sampling survey to assess the quality of reported data, with dedicated survey teams from the NBS performing on-site verifications. We have a comprehensive set of procedures in place to control the quality of census data. I also want to reassure everyone that all personal and business information is strictly confidential, so there should be no room for concerns when providing accurate information. We welcome public oversight and particularly encourage continued support and monitoring from the media. Thank you.

China National Radio:

My question is about developing new quality productive forces. The central government highly values fostering and developing new quality productive forces. Could you provide an update on the progress made in the first quarter by emerging sectors, high-tech manufacturing and green energy products?

Sheng Laiyun:

Thank you for your question. As you just said, the central government highly values the fostering and development of new quality productive forces, which have been a key focus in both last year's Central Economic Work Conference and this year's government work report. Party committees and government departments from various localities have put forward a series of policy measures to support enterprise innovation in an effort to foster and develop new quality productive forces.

From the data for the first quarter, we can see positive outcomes from these policies. The new quality productive forces are showing encouraging results across various industries, operational activities and products. Let me share some specific data:

Emerging industries have maintained accelerated development. In Q1, the value added of high-tech manufacturing above designated size grew by 7.5% year on year, or 2.6 percentage points higher than Q4 last year. The high-tech service sector also maintained a rapid growth trajectory, with the value added in information transmission, software and information technology services growing by 13.7%, which is 2.5 percentage points higher than in Q4 of last year. We've also seen fast-paced development in new industries and a rapid increase in new products. Particularly, the production of new energy vehicles grew by 29.2% in Q1 on top of several years of high growth. Solar battery production increased by 20.1%, and products related to photovoltaics such as polycrystalline and single crystalline silicon saw growth rates exceeding 50%. Service robots increased by 26.7%, and industries such as semiconductors and 3D printing maintained double-digit growth. New products continue to emerge and sustain high growth rates.

Furthermore, new business models continue to emerge with strong growth. Driven by the ongoing development and application of big data, the internet and the Internet of Things, we are seeing a transformation in production methods and the continued rise of new business forms. Areas such as live-streaming and instant retail are particularly vibrant. Online retail sales, reflecting new business model trends, grew by 11.6% in Q1, continuing the trend of double-digit growth from previous years.

In addition, new investments and infrastructure projects maintain good development momentum. In the first quarter, investment in high-tech industries increased by 11.4% year on year, which was 1.1 percentage points higher than that of last year, and investment in high-tech service industries grew by 12.7%. Additionally, the construction of a batch of new infrastructure projects is accelerating, including 5G base stations. As of the end of February, 132,000 new 5G base stations have been added, bringing the total number to over 3.5 million. The implementation of new infrastructure projects, such as the Eastern Data and Western Computing project and optical fiber communications, is also being accelerated. The digital economy is an important aspect of new quality productive forces. The central and local governments attach great importance to the development of the digital economy and are accelerating the digital transformation of traditional industries and the development of the digital industry. The estimated value added of core industries of the digital economy is expected to exceed 12 trillion yuan in 2023, accounting for around 10% of GDP.

As we can see from the data in these areas, new quality productive forces are being continuously cultivated and developed under the high attention of local governments as well as various ministries during the transformation and upgrading of enterprises. Next, we must continue to accelerate the cultivation and development of new quality productive forces, as they are the greatest driving force and the best focus for China's economic transformation and high-quality development. Therefore, we must plan comprehensively and take into account local conditions. While upgrading and transforming traditional industries, we should also accelerate the cultivation of emerging and future industries to strengthen and expand new quality productive forces. Thank you.

Shou Xiaoli:

Due to time constraints, we will take two final questions.

ThePaper.cn:

In the first quarter, the producer price index (PPI) continued its downward trend that began last year, and the month-on-month improvement was not significant. How does the NBS assesses the current PPI situation? And what are your predictions for the next stage? Thank you.

Sheng Laiyun:

Thank you for your questions. Among the many positive indicators released, the PPI is indeed worthy of close attention, so your question is very pertinent. The PPI, or the producer price index, refers to the prices at which industrial producers sell their products. In the first quarter of this year, the PPI decreased by 2.7% year-on-year, and in the fourth quarter of last year, it decreased by 2.8%. There are a few points I would like to make about this:

First, analyzing this round of adjustments and the trend, the PPI has begun to show a narrowing decline. Why is this? Let's extend the time frame. This round of PPI adjustments started in October 2022, when PPI was -1.3%. At that time, it was the impact of U.S. interest rate hikes and the decline in international energy prices that caused the PPI to turn negative for the first time. Since then, the decline continued to widen, reaching a low point in June last year when the PPI was -5.4%. However, as China's economy has recovered and improved, the decline in the PPI has continuously narrowed. If we plot a graph for these 18 months, it forms a standard V-shape. Therefore, although the PPI is still decreasing, the rate of decline is narrowing, which is consistent with China's economic recovery.

Second, from a structural perspective, the PPI in the first quarter and March still demonstrated strong structural characteristics. Moreover, the decline in the PPI is due to multiple reasons, including demand factors, as well as cost reductions brought about by industrial restructuring, transformation and technological progress. Therefore, this round of PPI decline is caused by multiple factors from a structural perspective. From an industrial perspective, the top three industries that had a significant impact on PPI's decline last year were coal mining, washing and dressing, non-metallic mineral products, and ferrous metal smelting and pressing. First, the price of coal mining decreased by 15.3% in the first quarter, which had an impact on PPI of nearly 11%. Second, the non-metallic mineral products industry, mainly cement, declined by 7.9% in the first quarter, dragging down the PPI by nearly 15%. Third, the ferrous metal smelting and pressing industry, mainly steel, saw a price decline of 5.0%, which also had an impact on PPI of about 11%. As a result, these three leading industries combined had a nearly 40% impact on the decline of PPI. However, these industries are often related to adjustments of relevant industrial chains brought about by the current industry adjustments, so they are not entirely due to demand. Therefore, this round of PPI adjustments is related to our structural adjustment, transformation and upgrading, as well as industrial differentiation, and cannot be attributed solely to insufficient demand.

Third, you asked about the future trend, which is also something we are very interested in. Our initial assessment suggests that the PPI will continue to show a narrowing decline and a steady increase. First, the economy is recovering, and overall demand is also picking up, which is conducive to supporting the recovery of prices. Second, the stimulatory effects of policies will continue to emerge, especially with the implementation of policies related to promoting large-scale equipment upgrading and replacing old consumer goods with new ones, which will positively impact related industries. Third, there are structural adjustments in some industries. Our greater efforts in supply-side structural reform and transformation and upgrading and the elimination of some traditional industries will bring positive changes to the market supply-demand relationship. There is also a statistical factor, known as the carry-over effect. Last year, the carry-over effect on PPI in the first quarter was -2.3 percentage points, while in the second quarter, it was only -0.9 of a percentage point. In other words, compared with the first quarter, the carry-over effect alone narrowed by 1.4 percentage points in the second quarter, which will support a significant narrowing of the decline in PPI. Of course, price changes are directly related to market changes, so there is considerable uncertainty, and we will continue to monitor the changes in PPI. However, the overall trend will continue to show a narrowing decline and a recovery toward a positive trend, which is consistent with the general trend of China's economic development. Thank you.

Yicai:

What are the highlights for the consumer data from the first quarter? During the recent Qingming Festival holiday, both the number of trips taken and tourism consumption achieved double-digit growth compared to the same period in 2019. What are the positive and effective supporting factors for subsequent recovery of consumption?

Sheng Laiyun:

Thank you for your questions. The changes in the consumer market are indeed one of the well-performing areas in economic operations for the first quarter, with quite a few highlights. The consumption data introduced just now shows that retail data grew by 4.7%, and the growth rate of service consumption was also relatively fast. Moreover, the stable growth of consumption is an important source of support for economic growth. As I mentioned earlier, with GDP growth, the contribution rate of domestic demand is 85.5%, of which consumption contributes 73.7%. This demonstrates that consumption indeed played an important supporting role in economic growth in the first quarter.

Regarding the good performance and characteristics they have shown, I believe there are a few points you can pay attention to.

First, overall consumption of physical goods has been relatively stable. The total retail sales of consumer goods increased by 4.7% in the first quarter to surpass 12 trillion yuan, marking a relatively high level for the first quarter. The physical goods consumption of residents, including food consumption, daily necessities consumption and some housing-related consumption, has also remained relatively stable. Therefore, the overall physical goods consumption of residents is relatively stable.

Second, service consumption has grown relatively fast. In the first quarter, service retail sales increased by 10%, which is 6 percentage points higher than that of goods retail. From the residents' perspective, per capita service consumption expenditure grew by 12.7%, which is also 4.4 percentage points higher than the 8.3% growth in the overall consumption of residents. Besides, the share of residents' service consumption expenditure has reached 43.3%, an increase of 1.6 percentage points compared to the same period last year. Service consumption is accelerating.

Third, online consumption remains robust. As I also announced earlier, the online retail sales of physical goods has increased by 11.6%. What's more, driven by the adoption of new technologies, online sales models are constantly innovating and setting new sales records.

Fourth, there has been continued improvement in consumption upgrade. After resolving the issue of ensuring adequate food and clothing, and then achieving a moderately prosperous society in all respects, there has been an accelerated increase in consumption for the purpose of development and enjoyment. This aligns with the major trends of consumption and industrial upgrading. This is also why tourism has remained popular this year and why there's a fast growth rate in high-level consumption areas such as education, training and elderly care. From a retail perspective, according to the data just introduced, sales of sports and entertainment goods have increased by 14.2%, and sales of communications equipment by 13.2%. From the perspective of residents, our expenditures on transportation and communications and on education, culture and entertainment have all seen double-digit growth, exceeding 10%. This indicates that the trend towards upgraded consumption is moving in a positive direction.

Fifth, holiday consumption continues to surge. During the Spring Festival and Qingming Festival holidays, both the number of travelers and tourism revenue exceeded the levels from 2019, with year-on-year growth rates in the double digits. Furthermore, from the north to the south and from the east to the west, various localities are continuously creating new internet-famous brands. This has propelled holiday consumption and significantly bolstered the recovery of the service industry and the economy.

Another notable characteristic is that green consumption is gaining popularity. Everyone is pursuing healthier and greener modes of travel. A very prominent feature is that, despite the declining trend in sales of fuel vehicles in recent years, sales of new energy vehicles have continued to be strong. According to data from the China Association of Automobile Manufacturers, new energy vehicle sales increased by more than 30% in the first quarter. Additionally, the penetration rate of new energy vehicles now exceeds 40%, with the latest data showing 41.6%, a 7.6 percentage point increase from the same period last year. All these aspects not only demonstrate sustained vitality in the consumption field but also present new trends in consumption development, therefore worth paying close attention to.

Looking to the future, the favorable conditions supporting consumption continue to increase. For example, policy support, including the policy for replacing old consumer goods with new ones, is expected to make a profound impact. Additionally, localities are creating consumer brands, improving consumption conditions and fostering an environment conducive to residents' consumption. The economy is also continuously warming up and improving, with residents' incomes and employment both on the rise, which is conducive to enhancing the capacity for consumption. Furthermore, consumer confidence is steadily recovering. So overall, taking these favorable conditions into account, our future consumer market is expected to continue to improve. Especially considering China's large population and the scale advantage of consumption, the vast market consumption potential also serves as a ballast stone for the continuous and stable improvement of the Chinese economy. Of course, we must also recognize that consumption ultimately depends on income support. Although income growth is recovering, the lingering impact of the COVID-19 pandemic in recent years means that income levels still need to continue to rise. While consumer confidence has been recovering for several consecutive months, the overall consumer confidence index remains below the critical value. These unfavorable factors remind us that we must continue to strengthen the foundation for economic recovery and improvement and enhance the capacity and confidence of residents' consumption, which is a long-term task. However, I remain optimistic about the continuous improvement and future prospects of consumption. Thank you.

Shou Xiaoli:

Thank you, Mr. Sheng Laiyun, and thank you to all the journalists that are present. That concludes today's press conference.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Liu Jianing, Zhou Jing, Gong Yingchun, Wang Wei, Wang Mengru, Huang Shan, Yan Bin, Wang Qian, Liu Caiyi, Zhang Junmian, Ma Yujia, Guo Yiming, Wang Ziteng, Li Huiru, Zhang Rui, Yuan Fang, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)

Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 12, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data from the first quarter of this year. We are very pleased to be joined by Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC), and Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC, who will brief you on China's import and export performance in the first quarter of 2024, and also take your questions.

Now, I'll give the floor to Mr. Wang.

Wang Lingjun:

Ladies and gentlemen, good afternoon. It is my pleasure to meet with you again. Welcome everyone to today's press conference. I will start by briefing you about China's import and export performance in the first quarter of this year, and then my colleague and I will take your questions.

In the first quarter of this year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China has adhered to the general principle of pursuing progress while ensuring stability. It has also worked to fully and faithfully apply the new development philosophy on all fronts, moved faster to create a new pattern of development, and thoroughly promoted high-quality development. As a result, the national economy has sustained its recovery momentum, making steady improvements in the quality of foreign trade and new milestones in the scale of imports and exports. Specifically, the country's foreign trade in the first quarter has the following five features:

First, China's scale of foreign trade during the January-March period exceeded 10 trillion yuan (about $1.38 trillion) for the first time in history, while the growth rate hit a six-quarter high. Customs statistics show that in the first quarter of the year, the country's foreign trade in goods stood at 10.17 trillion yuan, up 5% year on year. Specifically, exports from China increased 4.9% year on year to 5.74 trillion yuan, while imports rose 5% year on year to 4.43 trillion yuan, 4.1 and 2.3 percentage points faster than the growth rate in the fourth quarter of 2023, respectively.

Second, China's trade with the Belt and Road Initiative (BRI) partner countries and other BRICS countries grew at a rate higher than the overall level. From January-March, the country's trade with BRI partner countries reached 4.82 trillion yuan, up 5.5% year on year, accounting for 47.4% of total foreign trade volume, 0.2 percentage points higher than the same period last year. Notably, trade with member states of the Association of Southeast Asian Nations (ASEAN) increased 6.4% year on year to 1.6 trillion yuan. Trade with the nine other BRICS nations reached 1.49 trillion yuan during the same period, up 11.3% year on year, accounting for 14.7% of the country's total foreign trade volume. In addition, trade with the European Union, the United States, South Korea and Japan hit 1.27 trillion yuan, 1.07 trillion yuan, 535.48 billion yuan and 518.2 billion yuan, accounting for a combined share of 33.4% of the total.

Third, the imports and exports of private businesses in China sustained double-digit growth. In the first quarter of the year, the foreign trade value of the country's private businesses reached 5.53 trillion yuan, an increase of 10.7% over the same period last year, accounting for 54.3% of the country's total. Concurrently, the imports and exports of foreign investors in the country stood at 2.97 trillion yuan, accounting for 29.3% of the total, while that of state-owned enterprises stood at 1.64 trillion yuan, accounting for 16.1%.

Fourth, China's exports of machinery and electronic products as well as labor-intensive products witnessed robust growth momentum. During the January-March period, the country's export value of machinery and electronic products expanded 6.8% year on year to 3.39 trillion yuan, accounting for 59.2% of the total. Among this, the exports of computers and computer components, vehicles and ships saw year-on-year increases of 8.6%, 21.7% and 113.1%, respectively. In addition, the exports of labor-intensive products amounted to 975.72 billion yuan, up 9.1% over the same period last year. Within this category, exports of textiles and garments, plastic products, as well as furniture and furniture parts grew by 5.4%, 14% and 23.5% year on year, respectively.

Fifth, the imports of major commodities and consumer goods related to people's livelihoods expanded steadily. In the first quarter of this year, the country's imports of major commodities, including energy resources, metal ores and grain increased 6.2% year on year. Among them, the imports of energy products such as crude oil, natural gas and coal grew 8% year on year to 286 million metric tons; and metal ores like iron and aluminum increased 5% to 374 million metric tons. Grain imports amounted to 38.42 million metric tons, up 5.1% year on year. Concurrently, the imports of machinery and electronic products expanded 9.6% year on year. Among them, the imports of electronic components rose 13%. Meanwhile, imports of textiles and garments as well as dried and fresh fruits and nuts expanded 12.6% and 18%, respectively.

Overall, China's foreign trade got off to a robust and promising start in the first quarter of the year, laying a solid foundation for meeting the annual target of steadily increasing the volume and raising the quality of foreign trade. Currently, the international environment is undergoing profound changes, and the global economy is facing multiple grave challenges, all of which will pose greater tests to China's foreign trade. However, at the same time, we should also acknowledge that the country's overall economy continues improving; its comprehensive competitiveness in foreign trade keeps strengthening; and its sound growth momentum in imports and exports is being further consolidated.

Customs authorities bear the responsibility of safeguarding borders and driving development. We will work under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and earnestly act on the decisions of the Central Economic Work Conference and the government work report. We will adhere to the general principle of pursuing progress while ensuring stability. By enhancing the construction of Smart Customs and leveraging its enabling role in building China's strength in customs services, we will ramp up efforts to optimize the business environment at ports, facilitate cross-border commerce, and steadily increase the volume and quality of foreign trade. Through these efforts, we aim to play our part in achieving the annual socioeconomic growth targets and celebrate the 75th anniversary of the founding of the People's Republic of China with significant accomplishments.

Shou Xiaoli:

Thank you, Mr. Wang. The floor is now open for questions. Please identify the media outlet you work for before raising your questions.

China Daily:

You just mentioned that China's foreign trade maintained steady growth in the first quarter, with increases in both imports and exports. How do you view China's foreign trade situation in the first quarter? Considering the current global economic situation and geopolitical changes, what difficulties and uncertainties might we anticipate in the second quarter? What measures is the customs department implementing to address these? Thank you.

Wang Lingjun:

Thank you for your questions, which touched on three aspects. I'll address each one in turn. Against the backdrop of the country's sound economic fundamentals, and thanks to the hard work, pioneering spirit, and innovation of the vast number of people engaged in foreign trade, China has made new strides in the high-quality development of foreign trade. We have continued to improve the quality of foreign trade while sustaining the volume of imports and exports. As a result, China's foreign trade saw growth in both imports and exports in the first quarter.

First, we have enhanced the dynamism of market entities. In the first quarter, the number of foreign trade enterprises engaged in imports and exports grew by 8.8%. The number of private companies and foreign-invested enterprises increased by 10.4% and 1%, respectively. Additionally, the foreign trade volume of state-owned companies reached a historic high during the same period.

Second, we have cultivated new growth drivers. In the first quarter, China's imports and exports of intermediate goods increased by 4.4%. Meanwhile, the imports and exports of China's cross-border e-commerce grew by 9.6%. The number of overseas warehouses established by Chinese enterprises for cross-border e-commerce purposes rose by 11.8%. We have accelerated the development of new business forms and models. 

Third, regional development has leveraged its distinctive strengths. The country's eastern, central, western, and northeastern regions have each capitalized on their respective advantages and made contributions. The eastern region has taken on major responsibilities, with the growth rate of exports and imports in the first quarter being 2.7 percentage points and 1.2 percentage points higher than the overall rate, respectively. The central region has shown a shift toward advanced and green transformation in the manufacturing sector, with exports of advanced equipment and electric vehicles increasing by 42.6% and 107.3%, respectively. The western region has managed industrial transfers in an orderly manner, and the imports and exports of the processing trade have shifted from decline to growth. New progress has been made in foreign trade to fully revitalize northeast China. The volume of imports and exports in the first quarter exceeded 300 billion yuan for the first time.

Fourth, our trading partners have become more diversified. In the first quarter, China's trade with BRI partner countries increased by 5.5%, 0.5 percentage point higher than the overall growth rate. Trade with Latin America and the five Central Asian countries achieved double-digit growth. During the same period, trade with traditional markets such as the U.S. and Japan showed positive recovery trends, with the decline in imports and exports in the first quarter narrowing by 5.9 percentage points and 1.2 percentage points, respectively, compared to 2023. 

Looking ahead to the second quarter, foreign trade faces some difficulties and challenges, including geopolitical tensions and trade protectionism. However, there are also many favorable factors for foreign trade development. Global trade is showing signs of a steady recovery. On Wednesday, the WTO also predicted a rebound in trade, estimating that the volume of world trade in merchandise will grow by 2.6% in 2024. The latest report from the U.N. Conference on Trade and Development is also optimistic about the global trade in goods. According to the China Customs Trade Prosperity Statistical Survey , in March, there was a significant increase in the proportion of enterprises reporting higher export and import orders compared to the previous month. It is expected that China's imports and exports will continue to improve in the second quarter, maintaining a growth trend for the first half of the year.

To act in accordance with the guidelines of the CPC Central Committee and the State Council, customs will focus on the high-quality development of foreign trade and continue to introduce new policies and measures to improve regulatory efficiency and services. In March, we convened a meeting on launching a special campaign aimed at promoting cross-border trade facilitation, during which we proposed 33 reform and innovation measures to benefit enterprises and the public. Moving forward, customs will continue to follow up on implementing these policies and measures. Additionally, we aim to better understand the expectations and demands of enterprises and local governments. We will focus on promoting trade facilitation, optimizing the business environment at ports, reducing costs and fees for enterprises, and fostering new growth drivers for foreign trade. We will introduce more timely and effective policies and measures and spare no effort to support the steady and high-quality development of foreign trade. Thank you.

Red Star News:

As previously mentioned, the imports and exports of private enterprises maintained double-digit growth in the first quarter, continuing to play a leading role in China's foreign trade. What were the key achievements? What steps are planned to help private enterprises participate in international competition?

Wang Lingjun:

Thank you for your questions. In recent years, private enterprises have delivered remarkable results in foreign trade, continuously providing surprise and excitement. Mr. Lyu will provide more detailed information about this topic.

Lyu Daliang: 

Good afternoon, friends from the media! I am very pleased to share insights into the import and export performance of private enterprises in the first quarter. 

The imports and exports of private enterprises maintained strong momentum in the first quarter, achieving double-digit growth. Mr. Wang also mentioned this earlier. I believe that there are at least three aspects worth applauding and celebrating for private enterprises, which are as follows:

First, increased contribution. Looking at the number of market entities, about nine out of 10 foreign trade enterprises with import and export records are private enterprises. In terms of growth rates, the export and import growth rates of private enterprises are 4.8 percentage points and 7.8 percentage points higher, respectively, than the overall rate. The share of foreign trade volume accounted for by private enterprises in China's total imports and exports has increased to 54.3%, further cementing their principal role in stabilizing foreign trade. 

Second, the innovation capacity of private enterprises is becoming increasingly stronger. Private enterprises are the driving forces behind innovation and creativity, and they have become the largest importers and exporters of high-tech products in China. In the first quarter, imports and exports of high-tech products by private enterprises grew by 16.2%, 12.2 percentage points higher than the overall growth rate for similar products. Specifically, exports of ships and marine engineering equipment, and rail transportation equipment increased by 90.5% and 24.9%, and imports of high-end machine tools grew by 14.8%. Private enterprises have made significant contributions to accelerating the cultivation and development of new quality productive forces in foreign trade.

Third, private enterprises have increasingly diverse trading partners. Chinese private enterprises have fearlessly ventured into new markets and expanded their business to all corners of the world. They have established close trade connections with various countries, including Chile in South America, Norway in Northern Europe, and neighboring Southeast Asian countries. In the first quarter, private enterprises performed well in both traditional and emerging markets. Their imports and exports with the European Union, the United States, and Japan increased by 1.8%, 9% and 6.7%, respectively. Meanwhile, their imports and exports with ASEAN, Latin America, and Africa grew by 10.9%, 20.2% and 12.8%, respectively.

Overall, private enterprises have shown positive momentum and promising prospects in foreign trade. Next, customs will continue to work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector, as well as fully implement the guidelines and their supporting measures on promoting the development of the private sector, with a focus on explaining policies for enterprises and further addressing prominent problems concerning market access, access to factors of production, impartial law enforcement, and protection of rights and interests. Through these efforts, we will continuously stimulate the endogenous motivation and innovative vitality of foreign trade companies, including private enterprises. Thank you.

Reuters: 

Good afternoon. A question from Reuters. Analysts say the fact that producer prices continue to decline compared with 2023 levels is evidence of overcapacity among Chinese manufacturers, as that suggests factory owners are cutting costs in the distribution and sales process. China's exports fell 7.5% in March in U.S. dollar terms. So does that show Chinese factory owners are no longer able to cut prices to attract buyers abroad? And what can they do in the future to improve their fortunes? Thank you.

Wang Lingjun:

Thank you for your question. I would like to address it from two perspectives.

First, we do not think that the decline in producer prices necessarily indicates the so-called "overcapacity." The decrease in product prices can often be attributed to various factors, such as fluctuations in raw material prices, technological updates, and voluntary concessions made by manufacturers. Particularly in today's rapidly evolving technological landscape, companies continuously invest in research and development, innovation, and the application of new technologies and processes. This not only improves product quality but also greatly reduces production costs, allowing for the expansion of profit margins downstream.

Second, the global popularity of Chinese products stems from their innovation and quality. For example, China's strong research and development capabilities have led to the creation of smart and environmentally friendly home appliances that provide consumers with a better experience, meeting their higher demands for quality of life. Similarly, China's reliable, durable, and high-performance engineering machinery, coupled with comprehensive after-sales service, enjoys global popularity and can be found at major overseas construction sites. Additionally, Chinese ceramics, an important symbol of Chinese civilization, embody Chinese culture and stories and are exported internationally. These achievements are the results of our companies' diligent efforts and the rational choices of numerous users and consumers. Thank you.

China News Service:

In 2024, the BRICS group expanded to include 10 member countries. Could you please make an introduction to China's trade with other BRICS countries? What are the expectations for the future? Thank you.

Lyu Daliang:

Since the first BRICS summit in 2009, China's trade relations with other BRICS countries have become increasingly close. The import and export value between China and the other four BRICS countries — Russia, India, Brazil, and South Africa — grew from 960.21 billion yuan in 2009 to 4.32 trillion yuan in 2023, with an average annual growth rate of 11.3%. This growth rate is 3.8 percentage points higher than China's overall import and export growth rate during the same period.

In 2024, the BRICS cooperation mechanism entered a new stage as Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia officially became members of the BRICS group. In the first quarter, China's imports and exports with the other nine BRICS countries reached 1.49 trillion yuan, an increase of 11.3%, accounting for 14.7% of the country's total imports and exports. China's cooperation with the other BRICS countries exhibits strong complementarity across various sectors, characterized by distinct features in imports and exports.

China is Brazil's largest trading partner and largest export market, while Brazil is China's largest trading partner in Latin America. In the first quarter, China's exports to Brazil reached 114.28 billion yuan, an increase of 25.7%, and imports from Brazil amounted to 208 billion yuan, with a growth rate of 30.1%, indicating a rapid increase in imports. Trade between China and Russia continues to expand. In 2023, the two countries achieved their joint annual trade target of $200 billion set by their top leaders ahead of schedule. Since the beginning of this year, trade between China and Russia has continued to grow in sectors such as energy, automobiles, and general machinery equipment. Trade between China and India has seen year-on-year growth for five consecutive quarters, with an increase of 8.5% in the first quarter, maintaining a good development momentum. South Africa has been China's largest trading partner in Africa for 14 consecutive years. In the first quarter, China's exports to South Africa amounted to 35.11 billion yuan, while imports from South Africa reached 66.46 billion yuan.

In addition, China has maintained good cooperation with Saudi Arabia and the United Arab Emirates when it comes to energy trade. In the first quarter, both countries were among China's top 10 import sources for energy products. China has carried out pragmatic cooperation with Egypt and Ethiopia in the field of infrastructure. In the first quarter, China's exports of foreign contracted projects to the two mentioned countries achieved rapid growth. Also, our small commodities are very popular in Iran. In the first quarter, China's export volume to Iran through market procurement trade increased by 15.2%. This answers your first question about the import and export situation of China and other BRICS countries.

Regarding your second question, I think the prospect for cooperation in development is promising, and we are fully confident. The latest forecast from the International Monetary Fund shows that the volume of trade in goods and services in developing countries will grow by 4.5% in 2024, higher than the overall global growth rate of 3.3%. As representatives of emerging markets and developing countries, the BRICS countries are expected to become the current global accelerators for economic recovery and trade development. So far, the BRICS countries' volume of trade in goods holds about 20% of the world's total but trade with each other only accounts for about 10% of their respective total foreign trade, meaning there is still great potential for growth. It is believed that, as the content and areas of cooperation among the BRICS family are further enriched and developed, bilateral and multilateral economic and trade exchanges are expected to achieve more positive growth. Thank you.

Bloomberg:

My question is about the trade balance last year. Last year, the customs administration reported a good surplus of 823 billion dollars but the State Administration of Foreign Exchange reported a good surplus of 594 billion dollars. Why is there such a difference between these two numbers which should indicate the same thing? The State Administration of Foreign Exchange explained that free trade zones were part of the reason for this difference but this difference in the data only started to appear in 2021 and there hasn't been a radical expansion of free trade zones since 2021. So, can you please explain in detail what you think is the reason that these two numbers are so radically different? Thank you.

Lyu Daliang:

I understand that your question is essentially about the difference between the surplus and deficit of trade in goods according to customs' statistics and the international balance of payments for trade in goods according to the statistics released by the State Administration of Foreign Exchange (SAFE). What I want to say is that the statistical principles of these two numbers are different. The trade in goods calculated by customs is based on the cross-border principle. As long as goods move across borders, they will be included in customs' statistics, regardless of whether or not the ownership of the goods is transferred. The balance of payments for trade in goods in the international payments statistics, compiled by SAFE, is based on the principle of transfer of ownership, regardless of whether or not goods move across borders. This is an important difference between the two statistical methods.

I can give two examples to elaborate. The first example is what is now called factory-free manufacturing, which means that multinational companies entrust domestic companies to manufacture products and then sell them domestically. In this case, there is no cross-border flow of goods, and customs does not count them. But its ownership has been transferred and the balance of payments needs to be calculated. This difference is more prominent when it comes to electronic products, processing and manufacturing.

The second example is processing of supplied materials and bonded warehousing. Ownership of processing of supplied materials does not transfer across borders. The ownership of some bonded warehousing products does not transfer when they cross the border. This kind of cross-border flow must be reflected in customs' statistics, but not in foreign exchange receipts and payments statistics, which is also the reason for the difference.

In addition, the pricing methods of customs' statistics and balance of payments statistics are also different. For customs' statistics, as we all know, imports to China are calculated based on CIF pricing, while exports are calculated based on FOB pricing. China's balance of payments statistics, including our trade in goods and international balance of payments, are based on FOB price, excluding freight charges and insurance. Because of the differences in these statistical principles and methods, the two numbers will show certain changes as the situation changes. For specific figures, both statistics are accessible to the public. You can do your own calculation. Thank you.

CMG:

We have noticed that imports of bulk commodities such as energy and metal ores continued to increase in the first quarter. Does this mean that domestic demand has increased? As mentioned in this year's Report on the Work of the Government, we should actively increase the import of high-quality products. Can you brief us on the import situation? In addition, what are your expectations for China's import trends this year? Thank you.

Wang Lingjun:

Thank you for your questions. For many years, China has insisted on implementing the strategy of increasing imports. Imports have maintained a good upward trend. Specifically speaking:

First, the import market is huge. China has been the world's second largest import market for 15 consecutive years, with a cumulative import scale of nearly 200 trillion yuan. According to preliminary estimates, last year China accounted for 10.6% of the total global value of imports, continuing to maintain a high standard of more than 10%. In the first quarter of 2024, China's imports have increased in both volume and price, and the scale of imports reached a new high. It can be said that China's large market provides great opportunities to the world.

Second, the demands of production and consumption increased. As the Chinese economy continuously recovers and grows, industrial production has expanded quickly, and consumer needs have increased steadily. The country's huge market and the significant demand for both production and consumption have driven an increase in imports of raw materials, key components, and consumer goods. In the first quarter of this year, the volume of energy product imports and metal ore imports rose by 8% and 5%, respectively. Meanwhile, the import volume of integrated circuits and semiconductor manufacturing equipment increased by 14.3% and 82.7%, respectively. The growth rates of imports in sectors like textiles, garments, dried and fresh fruits, beef, televisions, and racing bicycles all exceeded double-digit increase, and imports of consumer goods related to people's basic everyday needs also had a relatively good performance. Imports of various high-quality products from around the world provide not only more and better choices for domestic consumers but also more opportunities for foreign enterprises.

Third, imported products varied in different regions. Leveraging their respective advantages and actively involving themselves in the nation's new development dynamic, all regions nationwide have diligently implemented the strategy for coordinated regional development . These efforts have brought a fresh look for imports featuring distinctive characteristics, high complementarity, and great diversity. Playing a leading role in opening-up, the Yangtze River Delta region is the most important field for importing high-tech products and consumer goods. Nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area performed strongly in the electronics industry, with the import volume of computer accessories and integrated circuits up by 74.2% and 19.2%, respectively, accounting for over 40% of the national total. The Beijing-Tianjin-Hebei region plays a prominent role in guaranteeing the supply of bulk commodities and covers more than half of the country's crude oil, natural gas, and grain imports. The central and western areas accelerated their industrial transformation and witnessed double-digit growth in imports of semiconductor manufacturing equipment and flat-panel display modules. Traditional industrial bases in the northeast region were revitalized, with imports of automotive parts and agricultural machinery increasing by 4.5% and 62.2%, respectively, both surpassing the national average.

Generally speaking, thanks to its vast market and varied market demands, the Chinese economy is poised to swiftly unleash its market potential, offering sustained support for imports and bringing more benefits to a wider global market. Moving forward, the GAC will follow the guidance of decisions and deployments on boosting the imports of high-quality goods released in this year's government work report and consistently implement various supporting measures. We will also advance quarantine access for high-quality agricultural and food products and expand imports of key components, major raw materials, energy, and resources. More efforts will be made, and more practical measures will be taken to serve high-quality development and high-level opening-up. Thank you.

Phoenix TV:

This year marks the 60th anniversary of the establishment of diplomatic relations between China and France. Over the past six decades, the two countries have enjoyed increasingly close cooperation in economy and trade. In 2023, the bilateral trade volume reached $78.9 billion, and China's imports of goods from France grew 5.5% year on year. Could you please provide an overview of the current situation regarding imports and exports between the two countries? Additionally, what kinds of expectations do you have for the future? Thank you.

Lyu Daliang:

I will first brief you on the trade situation between the two countries. In March 2019, President Xi Jinping paid a visit to France, which opened a new chapter for Sino-French relations. During the past five years, the two countries have deepened their economic and trade cooperation and achieved fruitful results. From 2019 to 2023, China's imports and exports with France grew by 5.9% annually. At present, France is China's third-largest trading partner within the EU, while China is France's largest trading partner in Asia. In the first quarter of this year, China's imports and exports with France reached 127.22 billion yuan.

In the agricultural products sector, France is China's largest source of imports in the EU. In 2023, China imported French agricultural products with a value of 46.95 billion yuan, up by 50.5% from 2019, and its import value approached 10 billion yuan in the first quarter of 2024. More and more agricultural products, including dairy products, pork and wine sourced from French farms nearly 10,000 kilometers away, are making their way onto Chinese dinner tables.

In the consumer goods sector, China's imports from France grew 12.3% annually during the past five years. Among them, imports of cosmetics, bags, jewelry, clothing, and clocks and watches have exceeded double-digit growth in terms of the average annual growth rate. At the same time, Chinese products have become increasingly popular in France. During the past five years, China's consumer goods exports to France grew by 3.9% annually. In the first quarter of this year, China's exports of household appliances, mobile phones, furniture and toys to France increased by 30.6%, 27%, 24.3% and 28%, respectively.

In the high-tech products sector, France is China's major source of imports for aircraft and aerospace components, which accounted for around 30% of China's total import volume of the same kind in the past five years. Currently, the two countries are expanding their cooperation on sci-tech innovation. During the past five years, China's imports of material technology products, biotechnology products, and integrated circuits from France grew annually by 38.8%, 13.9% and 14%, respectively, enjoying double-digit growth. In the first quarter of this year, imports of these products exceeded double-digit growth.

Regarding your second question, as China and France strengthen their comprehensive strategic partnership, they will expand exchanges and cooperation widely and deeply through close communication and coordination, pushing their bilateral economic and trade relations to a new level. Thank you.

Nanfang Daily, Nanfang+: 

Since 2014, cross-border e-commerce has been included in China's government work reports for 11 consecutive years, and it has also become a new driving force for the growth of foreign trade. May I ask, in the first quarter of this year what was the import and export situation of cross-border e-commerce like? What has customs done to promote the sound development of cross-border e-commerce? Thank you.

Lyu Daliang:

With the development of internet technology, cross-border e-commerce, leveraging advantages such as online transactions, contactless delivery and short transaction chains, has helped consumers and producers from various countries "purchase and sell globally," and has become a "new force" in global trade.

The rapid development of global cross-border e-commerce has not only facilitated global access of Chinese products but has also become an important channel for foreign consumer goods to enter the Chinese market. In the first quarter, according to preliminary calculations, China's cross-border e-commerce imports and exports totaled 577.6 billion yuan, an increase of 9.6% year on year. Among them, the exports totaled 448 billion yuan and imports totaled 129.6 billion yuan. What I would like to clarify is that according to China's cross-border e-commerce statistical survey system, cross-border e-commerce statistical surveys are conducted twice a year, including a full-year survey of the previous year and a survey of the first half of the current year, with monthly and quarterly data as preliminary estimates. Cross-border e-commerce imports and exports are already included in the total import and export volume for the same period.

In recent years, customs have continuously deepened comprehensive reforms of cross-border e-commerce in line with its characteristics and development trends, continuously improved regulatory and service efficiency, ensured the quality, safety and clearance convenience of imported and exported goods, actively promoted the collaborative governance between customs and cross-border e-commerce platforms and effectively advanced the sound and well-regulated development of cross-border e-commerce. Next, customs will work with relevant departments to focus on the difficulties and bottleneck issues in the supervision of cross-border e-commerce, continue to promote innovation in systems, management and services as well as promote the high-quality development of cross-border e-commerce, facilitating domestic and foreign consumers and producers to enjoy more and better products. Thank you.

The Paper.cn: 

The year 2024 marks the beginning of the second decade of the BRI cooperation. May I ask, how was the import and export performance between China and BRI partner countries in the first quarter of this year? What new measures has China's customs taken to advance the BRI cooperation? Thank you.

Wang Lingjun: 

Thank you for your questions. Since the proposal of the BRI, economic and trade exchanges between China and BRI partner countries have witnessed a vibrant first decade and are now actively embracing a new golden decade. In the first quarter of this year, trade between China and BRI partner countries continued to maintain good momentum of development. As I have already mentioned the relevant data in the initial briefing, I won't repeat it again now.

In terms of imports, the "Chinese market" continues to bring development opportunities to various countries. In the first quarter, China imported goods from BRI partner countries worth 2.14 trillion yuan, up by 3.6% year on year. Various advantageous commodities from BRI partner countries, such as crude oil from the Middle East, natural gas from Central Asia and metal ores from South America, were exported to China. Meanwhile, we have continued to facilitate the access of high-quality agricultural and food products with agricultural imports from BRI partner countries reaching 149.87 billion yuan in the first quarter. Imports such as sesame from Pakistan, black tea from Sri Lanka and cranberries from Peru all saw double-digit growth, allowing numerous high-quality agricultural products from various countries to enter Chinese households via the jointly developed prosperous Belt and Road route. While bulk commodities might be hard to reach for many, agricultural and food products from all corners of the world can easily be found in supermarkets.

Regarding exports, "Made in China" continues to provide stable supplies to various countries. In the first quarter, China exported goods worth 2.68 trillion yuan to BRI partner countries, up by 7% year on year. China has intensified industrial cooperation with BRI partner countries, achieving double-digit growth in the export of high-tech intermediate products such as electronic information, instruments and high-end equipment, and supporting the industrial development and technological progress of related countries. "Made in China" has effectively met the diverse consumer demands of BRI partner countries with exports of automobiles, household appliances, clothing and accessories increasing by 30.9%, 19.4% and 6% year on year, respectively. From daily consumer goods to large durable goods, Chinese products are widely welcomed by consumers. China and BRI partner countries continue to deepen cooperation in the infrastructure sector, enhancing the long-term development capabilities of BRI partner countries. In the first quarter, China exported 20.04-billion-yuan worth of turnover through overseas contracted projects to BRI partner countries, with exports to ASEAN, the Middle East and Central Asia increasing by 31.4%, 169.3%, and 3.6% year on year, respectively. Exports of photovoltaic products exceeded 30 billion yuan while more than 120,000 sets of renewable energy generators, such as solar and wind power, were exported, supporting the energy transformation and green low-carbon development of BRI partner countries.

In the first quarter of this year, the General Administration of Customs signed 11 cooperation agreements with BRI partner countries, including nine related to the access of agricultural and food products and two related to institutional cooperation. Next, in accordance with President Xi Jinping's proposal of "eight major steps" to support high-quality Belt and Road cooperation at the Third Belt and Road Forum for International Cooperation, customs will enhance communication and coordination with counterpart departments of BRI partner countries, deepen cooperation in port management, supply chain connectivity and agricultural and food product access and make contributions to the stable and far-reaching development of high-quality cooperation of Belt and Road. Thank you.

21st Century Business Herald:

How was the trade situation between China and other RCEP member countries in the first quarter? What are your expectations for China's future trade with these countries? What efforts has the GACC made in advancing the implementation of the RCEP? Thank you.

Wang Lingjun:

Thank you for your questions. The RCEP, which came into effect on Jan. 1, 2022, has been in force for nearly two years and four months. It has fostered close trade ties among member countries and serves as a vivid example of regional countries sharing development opportunities. I'd like to ask Mr. Lyu to elaborate on the situation.

Lyu Daliang:

I will outline China's import and export situation with other RCEP member countries in the first quarter of this year. According to customs data, total trade between China and the other 14 RCEP countries reached 3.08 trillion yuan, marking a 2.7% increase. This accounted for 30.3% of China's total trade in goods . The trade data reveals the following two main characteristics:

First, regional cooperation has become even closer. In the first quarter, China's exports to other RCEP member countries reached 1.6 trillion yuan, growing by 2%. Among them, the export of intermediate goods increased by 2.1%, accounting for 31.7% of China's total intermediate goods exports. Exports of electronic components and labor-intensive intermediate goods both maintained double-digit growth. During the same period, China's imports from other RCEP member countries amounted to 1.48 trillion yuan, marking a 3.4% increase. Bulk commodities, primarily consisting of metal ores and energy products, saw a 2.8% increase in import volume, constituting 42.3% of China's total bulk commodity imports. The import and export of intermediate products demonstrate the close economic ties and cooperative relationships between regional members.

Second, many import and export enterprises have enjoyed tangible benefits. In the first quarter, imports under the RCEP framework enjoyed preferential treatment worth 24.69 billion yuan, with a tax concession of 670 million yuan, marking increases of 35.3% and 38.7%, respectively. This benefited 4,320 enterprises. In terms of exports, 18,000 enterprises applied for RCEP certificates of origin, covering goods valued at 63.94 billion yuan, reflecting a 2.6% increase. Furthermore, 729 approved exporters issued RCEP statements of origin, involving goods valued at 2.41 billion yuan, marking a 12.6% increase. These measures have brought tangible benefits to relevant enterprises.

As Mr. Wang mentioned, the RCEP has been officially implemented for over two years now. During this period, the GACC has diligently implemented the arrangements of the CPC Central Committee and the State Council regarding the implementation of the RCEP. We have focused on building a globally-oriented network of high-standard free trade areas, implementing customs procedures and trade facilitation rules, strengthening international cooperation in animal and plant quarantine and food safety, continuously improving the quality of public services for the RCEP, and promoting the effective implementation of policies such as tariff concession under the RCEP framework.

Next, the GACC is committed to maintaining high-quality implementation of all RCEP-related initiatives. We will enhance international exchanges and cooperation with customs authorities of RCEP member countries, promote the establishment of an online platform providing services related to certificates of origin and preferential treatment for enterprises, conduct training in RCEP-related fields, and help local governments, industries and enterprises seize opportunities under the RCEP framework and fully benefit from policy dividends. Thank you.

Shou Xiaoli:

The last two questions please.

Guangming Daily:

We have noticed that the World Customs Organization's Global Authorized Economic Operators (AEO) Conference will be held this May in China for the first time. Could you please provide an overview of the event preparations? Thank you.

Wang Lingjun:

Thank you for your question. AEO stands for "authorized economic operator," which is an accreditation system advocated by the World Customs Organization . It grants preferential treatment and facilitation to companies with high levels of creditworthiness, compliance with laws and security standards. Enterprises that obtain AEO certification benefit from reduced inspections, priority processing, designated contact officer services, and other convenient services during customs clearance. AEO can be considered a "green pass" for global trade, enabling businesses to expedite customs clearance and outperform their competitors in terms of trade costs.

In recent years, the GACC has earnestly implemented the important instructions by General Secretary Xi Jinping, vigorously advancing the international mutual recognition process of AEO and intensifying efforts to foster AEO-certified enterprises. Currently, China has signed AEO mutual recognition agreements with 26 economies, including Singapore and the European Union, covering 52 countries and regions. This achievement maintains China's global leadership in both the number of signed mutual recognition agreements and the number of countries and regions which signed agreements with China. The number of AEO-certified enterprises in China has reached 5,860. In the first quarter of this year alone, the total import and export volume of AEO-certified enterprises exceeded 3 trillion yuan, playing a pivotal role in bolstering China's open economy.

Shenzhen will hold the 6th Global AEO Conference on May 8, which represents the highest-level conference in the global AEO field and the first major international conference hosted by China Customs since the 20th CPC National Congress. It is of great significance in showcasing the achievements of Chinese modernization and assisting in the construction of a major trading nation. Approximately 1,200 representatives from customs authorities worldwide, relevant international organizations, industry associations and AEO enterprises are expected to attend the event themed "Harnessing the Power of AEO Programs for Inclusive and Sustainable Global Trade." The GACC will take this conference as an opportunity to promote the country's advanced experiences and practices in the AEO field, participate in the formulation of international AEO rules, further promote AEO institutional opening-up, continuously expand the "circle of friends" for international AEO mutual recognition, and strive to contribute Chinese wisdom and solutions to the reform of the global governance system. Friends from the media here today are welcome to cover the conference through interviews, publicity and reports. Thank you.

Zhinews of Shenzhen Satellite TV:

The Guangdong-Macao In-Depth Cooperation Zone in Hengqin officially started closed-loop operation on March 1. What achievements have the customs authorities made in safeguarding the closed-loop operation of the zone? And how will the customs authorities continue to support the construction of the zone going forward? Thank you.

Lyu Daliang:

As this year marks the 25th anniversary of Macao's return to the motherland, there is heightened interest in matters concerning Macao. As a reporter from Shenzhen, you might have a keen interest in Hong Kong and Macao affairs. I would like to share some updates on the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.

Construction of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin is a significant decision personally planned, deployed and promoted by General Secretary Xi Jinping. The customs authorities have implemented General Secretary Xi Jinping's important instructions, focusing on the original intention of developing and constructing the zone, based on the integrated development of Hengqin and Macao and vigorously promoting the high-quality development of the zone. Since this January, we have successively introduced the Supervision Measures for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and eight supporting customs business announcements. We strive to construct an intelligent customs supervision system that aligns with the high-standard development of the zone, ensuring effective management, openness, efficiency and good user experience.

Hengqin is known for its dual-tier management system, comprising the "first line" and the "second line." The "first line," oriented toward Macao, has seen customs actively seek alignment with Macao's rules and mechanisms, significantly simplifying customs supervision procedures. For example, to expedite vehicle traffic, Guangdong and Macao have implemented "one-time collection, separate processing, and joint inspection and release" for cross-border vehicles, reducing overall clearance time by 50%. For smoother passenger travel, we have implemented a "cooperative inspection, one-time release" mode for health quarantine, set up a "new home" express lane for inbound traffic, and introduced a "one-time clearance" inspection mode for outbound, enhancing the clearance experience of passengers. To accelerate goods clearance, we have adopted a series of measures such as "guaranteed qualification and compliance verification" for Macao-origin goods and "triple linkage and triple consistency" supervision for fresh aquatic products supplied to Macao, actively promoting the connection of inspection and quarantine rules between Hengqin and Macao.

Statistics show that in the first month of closed-loop operation, customs authorities oversaw roughly 1.759 million inbound and outbound crossings on the "first line" and handled 170,000 instances of vehicles entering and exiting. Among them, the "new home" express lane saw over 140,000 passages, while the "one-time clearance" process was used in excess of 740,000 instances.

Regarding the "second line," which deals with the mainland areas outside of Hengqin, the customs authorities have maintained a balance between coordinated development and security, deepening collaborative governance with local authorities. We have pioneered a five-sphere regulatory model integrating classification, risk, intelligence, credit and coordination. This approach has enabled precise and intensive supervision, minimizing the impact on the circulation of goods and items, and striving for greater convenience in the circulation of resources. In the first month of closed-loop operation, vehicles were released from the outbound area over 1.46 million times, and people passed through approximately 4.47 million times, with all lanes running in a smooth and orderly manner, and customs supervision mechanisms operating efficiently and smoothly.

Next, customs authorities will continue to implement various policies and measures, fully support and serve the high-quality development of the cooperation zone, and promote the implementation of the first-phase construction goals and tasks outlined in the general plan for building a Guangdong-Macao In-Depth Cooperation Zone in Hengqin. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang and Mr. Lyu, and thank you to all friends from the media for you participation. That hereby concludes today's press conference. Goodbye.

Translated and edited by Zhu Bochen, Wang Qian, Cui Can, Ma Yujia, Liu Caiyi, Zhang Junmian, Yan Bin, Huang Shan, Lin Liyao, Zhou Jing, Mi Xingang, Li Xiao, Qin Qi, Wang Yanfang, Wang Ziteng, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers: 

Mr. Liu Xiaoming, deputy secretary of the Communist Party of China (CPC) Hainan Provincial Committee and governor of Hainan province

Ms. Xie Jing, vice governor of Hainan province and director general of the Hainan Provincial Department of Science and Technology

Mr. Guan Jirong, deputy secretary-general of the CPC Hainan Provincial Committee and executive vice director of the Office of the Hainan Free Trade Port Working Committee

Mr. Chen Jiyang, deputy secretary-general of the People's Government of Hainan Province and director general of the Hainan Provincial Department of Business Environment Development

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 11, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the ninth briefing in the series "Promoting High-Quality Development." We have invited Mr. Liu Xiaoming, deputy secretary of the Communist Party of China (CPC) Hainan Provincial Committee and governor of Hainan province, to brief you on deepening reform and opening-up across the board, and accelerating the development of a free trade port with Chinese characteristics and global influence. He will also take your questions. Also joining us today are Ms. Xie Jing, vice governor of Hainan province and director general of the Hainan Provincial Department of Science and Technology; Mr. Guan Jirong, deputy secretary-general of the CPC Hainan Provincial Committee and executive vice director of the Office of the Hainan Free Trade Port Working Committee; and Mr. Chen Jiyang, deputy secretary-general of the People's Government of Hainan Province and director general of the Hainan Provincial Department of Business Environment Development.

Now, I'll give the floor to Mr. Liu for his introduction.

Liu Xiaoming:

Good morning. It’s a great pleasure to meet you here. First of all, on behalf of the CPC Hainan Provincial Committee and the Hainan provincial government, I'd like to express my heartfelt gratitude for your long-term interest in and support for Hainan. 

April 13 marks the sixth anniversary of General Secretary Xi Jinping's announcement of establishing the Hainan Free Trade Port (FTP). Over the past six years, we have consistently adhered to the principle of serving the national strategies with high-level opening-up and driving Hainan's high-quality development. An initial FTP policy system has been established, with the main framework focusing on trade, investment, cross-border capital flows, personnel mobility, free and convenient transportation, and the safe, orderly flow of data. The construction of the Hainan FTP has taken shape and gained momentum, serving as both a booster and an accelerator for Hainan's high-quality development. General Secretary Xi Jinping has successively affirmed Hainan's progress with expressions like "smooth start," "vigorous progress," "significant advancements," and "vibrant thriving." During his inspection tour to Hainan in 2022, the general secretary called for accelerating the development of Hainan into a free trade port with Chinese characteristics and global influence, turning Hainan into a paradigm of reform and opening-up in the new era, and shaping it into a landmark showcasing Chinese splendor. 

Last year, several economic and social indicators in Hainan displayed growth rates that ranked among the top in the country. Specifically, Hainan's GDP increased by 9.2%, the value-added of industries above designated size grew by 18.5%, and the per capita disposable income of urban and rural residents went up by 6.3% and 8.3%, respectively. Trade in goods and services, reflecting the FTP's economic performance, increased by 15.3% and 29.6%, respectively. Moreover, Hainan's opening-up involved two-way engagement, with imports accounting for around two-thirds and outbound direct investment surging by 104.9%, allowing the world to share in the development opportunities presented by Hainan and China. 

Currently, we're coordinating the preparations for achieving independent customs operations with economic and social development, and conducting various stress tests for these operations. We are striving to play a more significant leading role in promoting high-level opening-up, accelerating high-quality development, and enhancing the tangible benefits gained from a high-quality life. By doing so, we aim to better serve and integrate into the new development pattern and celebrate the 75th anniversary of the founding of the People's Republic of China with outstanding accomplishments.

First, we will drive high-level opening-up through the construction of the Hainan FTP. We will fully leverage the role of the FTP as a comprehensive pilot platform for reform and opening-up, focus on innovative reforms and pioneering opening-up strategies, and introduce a number of integrated institutional innovations with broader significance and greater influence. We will take the lead in aligning with high-standard international economic and trade rules, conducting thorough stress tests, and promoting dynamic upgrading, optimization, and effectiveness of Hainan FTP policies. 

Second, we will empower the establishment of a modern industrial system with new quality productive forces. We have made the tough decision to break away from the economy's dependence on real estate and accelerated the establishment of Hainan's characteristic modern industrial system, described as"4 plus 3 plus 3." The "4" refers to vigorously developing the tourism industry, modern services, high-tech industry, and characteristic high-efficiency tropical agriculture. The contribution of these four leading industries to the province's GDP has increased by over 10 percentage points since 2018. The first "3" involves forward-looking arrangements for the three future industries of Nanfan, or seed breeding in South China , deep-sea technology, and commercial aerospace, creating an important practice base for developing new quality productive forces. The second "3" refers to effectively reclaiming overseas consumption in three areas: high-end shopping, healthcare and education.

Third, we will make coordinated efforts to advance the integrated development of education, science and technology, and talent. We will solidify the development of basic education and enhance its openness, promote the high-quality and balanced development of basic education, and strive for leapfrog development in higher education. By doing so, we aim to expedite the construction of an international education innovation island and explore a path for high-level opening-up in China's education sector. We will create dual hubs for sci-tech innovation and institutional reform and focus on achieving technological breakthroughs in areas such as biological breeding, ocean observation, and the application of satellite big data. In addition, we will expand international sci-tech exchange and cooperation and accelerate the reform of the property rights system reform for sci-tech advancements. By 2025, we aim to achieve the goal of attracting a million talents to Hainan.

Fourth, we are promoting coordinated regional development by treating the entire province as a single entity and promoting the integrated development of the island. We upgrade three economic circles, namely the Haikou Economic Circle, the Sanya Economic Circle, and the Danzhou-Yangpu Economic Circle. We also connect coastal cities with the Hainan Island Ring Road Tourism Highway and form a synergy with central ecological conservation areas among mountains to enhance overall development momentum.

Fifth, we are accelerating green and low-carbon transformation by striving to be a model in achieving the dual carbon goals. We regard the protection of the ecological environment as the top priority for Hainan. Therefore, we are continuously implementing landmark projects such as the Tropical Rainforest National Park, promoting clean energy islands and clean energy vehicles, banning plastics, advancing prefabricated construction, enhancing integrated water management, and developing the Boao near-zero carbon demonstration zone . Hainan aims to take the lead nationwide and make more contributions by establishing ocean carbon sinks and promoting green and low-carbon initiatives.

Sixth, we are expediting efforts to address inadequacies in public well-being from the perspective of development. This involves increasing investment in people's livelihoods, continuously introducing high-quality education and medical resources, ensuring that children have access to quality education nearby, and ensuring that residents can receive medical treatment locally for both minor and major ailments. We aim to convert the surge in business entities and investment project development brought about by the policies of the FTP into more high-quality employment opportunities, thus enhancing residents' sense of gain as we develop the FTP.

That's all for my introduction. Next, my colleagues and I will be happy to answer your questions. Thank you, everyone!

Xing Huina:

Now, the floor is open for questions. Please state the news organization you represent before asking your questions.  

People's Daily: 

During the past six years, Hainan has been working on building the China (Hainan) Pilot Free Trade Zone and has carried out exploratory work on setting up a free trade port with Chinese characteristics. Could you please introduce the current situation of the Hainan FTP construction? Thank you.

Liu Xiaoming: 

Thank you for your question; I will answer it. These years, Hainan province has resolutely implemented the decisions and arrangements made by the CPC Central Committee and the State Council. Following the requirements of the master plan of the Hainan FTP, we have made efforts quickly and steadily to shape up the FTP, mainly focusing on the following four aspects. 

First, the accelerated release of policy benefits has made Hainan a hotbed for investment. Under the working mechanism of "central coordination, departmental support, and provincial implementation," the policy framework of the Hainan FTP has taken shape, bringing tangible benefits to businesses and the public. For instance, the three zero-tariff lists for imported raw and auxiliary materials, means of transportation and yachts, and self-use production equipment have resulted in a cumulative import value of 20.2 billion yuan and tax reductions of 3.81 billion yuan. The zero-tariff policy for domestically sold products with no less than 30% value-added from processing has been expanded to key industrial parks across the province, resulting in a cumulative domestic sales value of 4.71 billion yuan and tax reductions of 420 million yuan. In 2023, the number of offshore duty-free shopping visitors and the amount spent increased by 59.9% and 25.4%, respectively, year on year. Currently, foreign investment in Hainan continues to increase, with the number of newly established foreign-funded enterprises growing by 65% annually since 2018, totaling 6,543 enterprises.

Second, Hainan has been steadily expanding institutional opening-up by taking the lead in experimenting with high-standard economic and trade rules. Leveraging the advantages of various policies from the Regional Comprehensive Economic Partnership (RCEP) and the FTP, we have pioneered the implementation of international high-standard economic and trade rules. Hainan has introduced a series of new measures in areas such as trade in services, digital trade, intellectual property protection, and cross-border data flows. To address policy implementation bottlenecks, pain points of lack of application scenarios, and difficulties in achieving noticeable effects, Hainan has promoted cross-department, cross-domain, and cross-regional institutional integration innovation through in-depth planning. It has released a total of 16 batches of 140 institutional integration innovation cases, among which 11 have been replicated and promoted nationwide by the State Council, and six have been commended nationally.

Third, Hainan has comprehensively prepared for the initiation of independent customs operations and steadily advanced toward higher standard opening-up. In 2023, we launched the preparations for independent customs operations, vigorously implementing three lists concerning tasks, projects, and stress tests with strenuous efforts. This year marks a pivotal year for advancing customs closure operations. We will complete the construction of hardware and software for independent customs operations and conduct comprehensive, whole-process stress tests on policy systems, facilities, system platforms, and management capabilities. Simultaneously, we are striving to create a first-class business environment characterized by the rule of law, internationalization, and facilitation, to ensure smooth initiation of independent customs operations as scheduled.

Fourth, Hainan has made solid and effective progress in risk prevention and control, with significant improvements in governance systems and capabilities. Adhering to the principle that effective management allows for greater opening-up, we have established contingency plans, improved mechanisms, and made regular adjustments to address potential risks associated with the implementation of various policies in the FTP. Through initiatives such as Smart Hainan and Hainan Credit, we will be able to identify, prevent, and manage risks, as well as firmly guard against systemic risks. Thank you.

Red Star News:

The growth rate of Hainan's expenditure in research and experimental development has ranked among the top nationwide in recent years. What are the features and highlights of Hainan in terms of sci-tech innovation? Thank you.

Xie Jing:

In recent years, Hainan has fully leveraged its comparative advantages in temperature, depth, latitude and greenness, referred to as "three degrees and one color," to accelerate the establishment of innovation hubs in key industries such as seed development, deep-sea exploration, and aerospace. These efforts have also contributed to promoting green transformation. Significant achievements have been made in sci-tech innovation. Notable examples include Sanya's Nanfan Silicon Valley and the Deep Sea Science and Technology City, which have emerged as national benchmarks and clusters for sci-tech innovation in the seed industry and deep-sea research, respectively. With the completion of the country's first commercial aerospace launch site, aerospace research forces are also accelerating their convergence in Hainan.

In the past three years, the sci-tech development in Hainan can be summarized by "four new achievements": First, there have been a leap in the number of national-level sci-tech innovation platforms, marked by the establishment of the Yazhou Bay National Laboratory, which resulted in the doubling of the number of national-level sci-tech innovation platforms in Hainan. Second, research and development (R&D) investment has reached new heights, with the growth rate for R&D spending by the entire society ranking at the forefront of the country for three consecutive years and the number of patent applications granted more than doubling. Third, there have been new achievements in introducing and cultivating sci-tech professionals, with the number of national-level professionals in key areas growing geometrically and the full-time equivalent of R&D personnel doubling. Fourth, there has been new progress in corporate innovation, with a 75% increase in the number of high-tech enterprises in the province and nearly a threefold increase in the turnover of technology contracts.

Going forward, Hainan will focus on the following aspects to accelerate the development of sci-tech innovation and the sci-tech system reform:

First, we will further leverage comparative advantages to enhance sci-tech innovation capabilities in key areas such as land, sea and air, thereby significantly contributing to national strategic development in science and technology.

Second, we will further concentrate on developing useful science and technology, centering on emerging industries such as the digital economy, petrochemical new materials, and biomedicine, as well as the three future industries of Nanfan, or seed breeding in south China, deep-sea exploration, and aerospace. We plan to launch a series of scenario applications, enhance the commercialization of scientific and technological achievements, and promote the deep integration of the innovation and industrial chains.

Third, we will further emphasize institutional integration and innovation, launch a three-year intensive campaign for sci-tech system reform, reinforce the principal role of enterprises in innovation, and strive to achieve landmark results.

Fourth, we will fully leverage the open advantages of the FTP to enhance international sci-tech cooperation level and create a competitive international open innovation environment. Thank you!

Cnr.cn:

Hainan has proposed building itself into an important player for developing new quality productive forces. Can you introduce the advantages of Hainan? Going forward, what are the key areas for Hainan to focus on? Thank you.

Liu Xiaoming:

Thank you for your questions. I will address them. We are relying on Hainan's comparative advantages in two key areas to build the province into an important player for developing new quality productive forces. The first area is its natural endowment in terms of temperature, depth, latitude and greenness, also known as the "three degrees and one color." The second area is the benefits derived from the policies for the FTP and opening-up. Specifically, we will make great efforts in the following five aspects to build Hainan into an important player for developing new quality productive forces:

First, we will strive to develop the seed industry. Hainan is a tropical province, and more than 70% of China's main crop varieties are cultivated through seed breeding in south China, forming what is known as the Nanfan seed industry. Currently, we have gathered over 2,800 innovative seed enterprises, with the output value of the Nanfan seed industry exceeding 12 billion yuan. Next, we will exert all efforts to make breakthroughs in developing seeds, often referred to as "agricultural chips." We will also accelerate the construction of the Nanfan Agricultural Silicon Valley , which serves the whole country. For example, a variety of domestically produced durians, branded Shushangshu, was first introduced to the market in Sanya and was well received last year. We will strengthen research, development, innovation, and utilization to promote the localization of more imported fruits and vegetables.

Second, we will strengthen the marine industry. Hainan is the province with the largest marine area in China, thereby boasting a wide range of application scenarios. Currently, Hainan has over 1,000 high-tech marine enterprises, and a batch of major deep-sea equipment has been put into operation. Going forward, we will actively advance emerging marine industries such as deep-sea technology, marine intelligent equipment manufacturing, and deep-sea aquaculture. This year, the goal is to exceed 310 billion yuan in gross marine product. Moreover, we have a greater goal of building a stronger Hainan with a thriving marine industry over the next decade.

Third, we will focus on the aerospace industry. Hainan is ideally suited for the development of the aerospace industry due to its geographical latitude. The No. 1 launch pad of China's first commercial spacecraft launch site was completed at the end of last year, and the construction of the No. 2 launch pad was also finished at the end of March this year, expected to be capable of supporting regular launches starting in June. Currently, many leading domestic commercial aerospace enterprises are competing for launch opportunities. With a focus on the rocket chain, we will also expand and promote the establishment of "space plus" industrial projects, such as the satellite chain and the data chain, striving to develop the Wenchang International Aerospace City into a hub that integrates space launches, R&D, manufacturing, tourism, and international exchanges.

Fourth, we will pursue green development. We are deepening our efforts to build a "clean energy island," significantly reducing carbon footprints. The proportion of installed clean energy equipment has reached 78.5%, ranking among the highest in China. During the Boao Forum for Asia Annual Conference 2024, the near-zero carbon demonstration zone at Dongyu Island received wide attention. We will explore more practical approaches for transforming carbon into a valuable resource, building a 2.0 version of the clean energy island, developing green industries such as offshore wind power and photovoltaic projects, promoting the production, storage, transportation and utilization of green hydrogen, and advancing the green transformation and upgrading of industries such as petrochemical new materials.

Fifth, our efforts will focus on digitization. We will leverage the Hainan FTP's policies on the secure and orderly flow of data, and improve digital infrastructure such as 5G, green computing power and international communication submarine cables. We will also establish a comprehensive bureau for stepping up international communications services as soon as possible. We will enrich application scenarios for different sectors including helping Chinese games "go global", and develop local industries with a competitive edge, such as digital health and key components, to promote the digital economy of the Hainan FTP.

As a Chinese saying goes, "Seeing is believing." We welcome friends from the media to visit Hainan and experience firsthand the development and panoramic display of the new quality productive forces there. Thank you.

TASS news agency: 

Everyone is very interested in the independent customs operations. How has the preparation of related projects progressed? Could you also outline the vision for the development of the Hainan FTP after the implementation of island-wide independent customs operations? Thank you.

Guan Jirong:

The independent customs operations is of milestone significance for the development of the Hainan FTP and for the island province's high-quality development. At present, Hainan regards it as a top priority and is redoubling its efforts to make breakthroughs by focusing on the following three lists. The first one is the task list, which includes more than 40 key tasks, such as port planning and construction, as well as policy and institutional framework design, all progressing in an orderly manner. The second one is the project list, where the main work of 31 projects involving the independent customs operations has been basically completed. The third one is the stress test list, with full coverage and large-scale testing currently in full swing.

With solid progress made in the independent customs operations, several key and core policies have been put in place, bringing tangible benefits to businesses. In the future, we will ensure our policies bring even more benefits to enterprises. Here, I would like to share with you the vision of the Hainan FTP after it launches independent customs operations. In terms of trade liberalization and facilitation, more and more imported goods will enjoy zero-tariff treatment in Hainan, and consumers will reap greater benefits. We will pursue opening-up against higher standards in the services trade, with fewer restrictions on overseas individuals participating in domestic vocational qualification examinations. Consequently, an increasing number of overseas talent and professionals will come to work in Hainan. Regarding investment liberalization and facilitation, market access for foreign investment in medical care, education, telecommunications, and other fields will be further relaxed. People can enjoy world-class education in Hainan and access international drugs and medical devices yet to be marketed in China, as well as high-level foreign medical technology services. In terms of cross-border capital flow, Hainan will promote the free and convenient flow of capital across borders in an orderly manner, and the ability of the financial sector to serve the real economy will continue to strengthen. In the future, it will be more convenient to carry out cross-border wealth management in Hainan, which is conducive to attracting high-net-worth individuals (HNWI) to settle in Hainan and realize the global allocation of their assets. Concerning the facilitation of the entry and exit of personnel, people from 59 countries can enjoy visa-free access to Hainan. The number of foreign-funded enterprises is increasing, and more foreigners will become employees of local companies in Hainan, who can act as legal persons in public institutions, state-owned enterprises, and statutory organizations in Hainan. In terms of transportation facilitation, Hainan ranks second among China's provincial-level regions for the registered tonnage of international sailing ships. In the future, more international flights will stop over in Hainan to load passengers and cargo. The number of routes from Hainan to overseas regions will continue to increase, making it more convenient to reach the world from Hainan.

The blueprint has been drawn, and now is the time to forge ahead. We have the confidence and determination to fully implement the decisions and requirements of the central authorities and launch the independent customs operations as scheduled with the support of relevant ministerial-level departments and the joint efforts of the entire province. Thank you.

Hong Kong Bauhinia Magazine:

The business environment is a crucial aspect of the development of the FTP. What measures will Hainan take to further improve its business environment and attract more business entities to settle there? Thank you.

Chen Jiyang:

We often say, "Whether a business environment is good or not, business entities have the final say." The CPC Hainan Provincial Committee and Hainan provincial government regard the business environment as one of the eight important pillars supporting the development of the FTP. Hainan is taking all kinds of pragmatic and effective measures to optimize its business environment in order to enhance enterprises' sense of gain and satisfaction.

We have proposed to boost two brand initiatives in Hainan: One is called "Hainan FTP Welcomes Your Complaints" and the other is "Hainan FTP Serves You." Supporting the first brand initiative is a business environment complaint platform, which has been in operation for more than three years. We have received over 7,000 complaints from enterprises, with more than 95% of them resolved, including some long-standing problems that existed before the establishment of Hainan province.

For the other brand initiative, "Hainan FTP Serves You," we continually launch a variety of service measures for enterprises. For example, in the second half of last year, Hainan province carried out large-scale research and service activities targeting enterprises above designated size as well as specialized and sophisticated enterprises that produce new and unique products. Led by principal officials of the CPC Hainan Provincial Committee and Hainan provincial government, we visited the enterprises, provided corresponding policies and services, and settled various problems. The enterprises rated our services and expressed their satisfaction with a rating of over 96%.

This year, the CPC Hainan Provincial Committee and the Hainan provincial government have launched a comprehensive campaign to improve the overall business environment. The primary focus is on being responsive to all requests and minimizing unnecessary disturbances. In terms of responsiveness, we have optimized several mechanisms. For instance, we have integrated services for handling business environment issues, the 12345 hotline, and various other channels for gathering feedback. This integration has enabled us to establish a comprehensive mechanism for collecting and addressing all enterprise issues. Businesses can now easily voice their concerns anywhere and at any time. With all issues incorporated into a single system, the resolution process is transparent to both businesses and government departments concerned, making it easier for us to track and supervise its progress. To achieve the goal of minimizing unnecessary disturbances, we have also recently launched an integrated monitoring platform for business-related activities. Government departments must now register to get data and material when they pay visits to enterprises, extend invitations to business leaders for events, or carry out enforcement inspections. While this may cause some inconvenience for the government, it offers greater convenience and peace of mind to businesses, allowing them to focus more effectively on their production and operations. Thank you.

Liu Xiaoming:

Let me add further details to Mr. Chen's response. Hainan possesses two main features. The first emphasizes the rule of law in the development of the FTP. Therefore, in the process of building the business environment, we are dedicated to creating a setting that is based on the rule of law and is both international and convenient. In 2021, the Standing Committee of the National People's Congress enacted the "Law of the People's Republic of China on the Hainan Free Trade Port ," which formally anchors relevant policies in legal documentation, providing business entities with more stable expectations. The second feature is that Hainan has established a business environment management system. At the end of 2022, Hainan set up the country's first provincial business environment construction department, and in 2023, business environment bureaus were successively established at the municipal and county levels. This framework aims to coordinate efforts to improve our business environment. Thank you.

Cover News:

Hainan has abundant tourism resources that are attractive to both domestic and international tourists. How will Hainan further enhance the quality of its tourism services and improve visitor experiences? Thank you.

Xie Jing:

The tourism industry is one of Hainan's four pillar industries. Last year, Hainan saw a year-on-year increase of 49.9% in domestic and international tourist arrivals and a surge of 71.9% in its total tourism revenue, both reaching record highs. Hainan emerged as one of the provinces with the fastest recovery of the tourism market following the COVID-19 pandemic. During this year's Spring Festival, tourist arrivals and total tourism revenue increased by 48.8% and 62.7%, respectively, both setting historical records. The tourism sector has maintained good momentum, turning the traditional "Golden Week" into a prolonged "golden season."

The soaring popularity of tourism in Hainan is a testament to the deep affection that numerous tourists hold for the region. This is something we must cherish and protect with more efforts. We will implement stronger measures to showcase Hainan tourism as a landmark feature of the FTP. Our efforts will focus on the following three aspects:

First, we will concentrate on developing an international tourism consumption center by leveraging the supply side. This year, we will launch an intensive campaign to improve international tourism consumption. We will plan a series of iconic projects to create more tourist attractions and enhance tourism consumption scenarios. Additionally, we will upgrade our tourism infrastructure, continuously expand the capacity of airports and seaports, and provide tourists with a wider range of choices and improved experiences.

Second, we will strengthen industry standards and market guidance. We will fully leverage the role of industry associations and bolster industry self-discipline. We will introduce preferential measures such as joint marketing of air tickets and hotel bookings to guide businesses in setting reasonable prices. As we all know, Hainan is known for its warm sunshine during the winter; but actually, it also features refreshing sea breezes in summer. With its tropical rainforests and an island tourist highway, Hainan offers beautiful scenery and is an ideal travel destination year-round. By promoting off-peak tourism, we aim to provide tourists with more cost-effective travel options.

Third, we will vigorously crack down on irregularities in the tourism market and focus on improving service quality. We maintain a strict zero-tolerance attitude toward deceptive practices that target tourists. We will promptly investigate and penalize such misconduct, enforcing stringent regulations and imposing heavy penalties. Throughout the year, we will continue to take strong measures to clean up and improve the tourism market, ensuring that no one tarnishes the reputation of Hainan's tourism sector. Additionally, we will enhance the training and development of tourism professionals. We will launch the "Year of Enhancing Quality Tourism Services" campaign in 2024.

Currently, under the theme "Welcome to Cool Hainan for a Break from the Summer Heat," we are launching a series of signature activities such as "100 performances and 1,000 sporting events." We are developing unique tourism products, including water sports, rainforest hot springs, intangible cultural heritage events of the Li and Miao ethnic groups, and educational tours. The China International Consumer Products Expo 2024 will open the day after tomorrow , and we extend a special welcome to all present here today. We also expect more friends to come to Hainan for a deep and immersive experience. Thank you.

CMG:

Hainan has set its regional GDP growth target at around 8% for this year, which is relatively high compared to the national average. What measures will Hainan implement to achieve this ambitious goal? Thank you.

Liu Xiaoming:

Thank you for your question. I will answer this question. Hainan province has set a GDP growth target of about 8% this year. This is a proactive development goal we set based on in-depth research, taking into account what is needed and what is possible, as well as the present and the future. At present, we are pooling resources to carry out critical tasks on the following seven areas, including preparations for independent customs operations , enhancing investment expansion and efficiency, upgrading international tourism and consumption, reinforcing and upgrading weak links in the industrial chains , enhancing the overall business environment, ensuring financial stability while fostering expansion and quality improvement, and achieving a steady increase with improved quality in foreign trade and investment. We will vigorously improve government efficiency to ensure that predetermined goals can be achieved.

Based on the economic data in the first quarter, Hainan’s economy is functioning soundly, continuing its upward trend. We will focus on both the real economy and the facilitation of capital and personnel flow, continuously enhancing economic vitality.

In terms of the real economy, we will strengthen the stability of our industrial pillars. This year, we will continue to reinforce and upgrade weak links in industrial chains, accelerate development alignment with the Guangdong-Hong Kong-Macao Greater Bay Area, promote interplay and industrial cooperation with the national strategy of the development of the Yangtze River Delta and coordinated development of the Beijing-Tianjin-Hebei Region, and promote the implementation of a new round of key industrial projects. On Feb. 27, the world's largest wind turbine blade officially rolled off the production line in Hainan. The swept area of this blade is equivalent to 9.4 standard football fields, demonstrating that Hainan now has the manufacturing capacity for ultra-large wind turbine components. This is also a microcosm of Hainan's efforts to promote the development of advanced manufacturing.

On the other hand, we aim to facilitate the capital and personnel flow at the FTP. Currently, we mainly focus on the following two aspects. The first is foreign trade and investment. This year, we will fully implement a new negative list for foreign investment at the Hainan FTP, establish and operate a multi-functional free trade account, upgrade the single window for international trade, and vigorously develop new business models such as cross-border e-commerce, overseas warehousing, offshore trade, and digital trade, and attract more international inflows of goods and capital with freer and more convenient trade and investment . The second is tourism and consumption. In the first quarter, the number of tourists received by Hainan and its total tourism revenue are expected to increase by 17.6% and 32.3%, respectively, with inbound tourism quadrupling compared to the same period of last year. Next, we will continue to work on winning back customers in three major areas, create special consumption scenarios such as "tourism + performing arts" and "tourism + sports," host the fourth China International Consumer Products Expo, and plan a series of major cultural tourism projects based on Hainan’s round-the-island tourist highway and the Hainan Tropical Rainforest National Park. For inbound tourists, we will make full use of the visa-free policy covering 59 countries, and introduce more entry facilitation measures. For example, we are about to launch a "Hainan wallet," which will enable inbound tourists to convert foreign currencies into electronic RMB on their mobile phones upon arrival in Hainan. They can use the electronic RMB anywhere they can use China's mobile payment system such as Alipay or WeChat.

I would like to add one more thing here. Hainan’s tourism is improving continuously, but there are still some bottlenecks. For example, during peak tourist seasons, vehicles crossing the Qiongzhou Strait experience congestion, economy air tickets are difficult to obtain, and there are still occasional service disputes. We are doing our best to address these issues, not only during the peak season of the Spring Festival holiday but also during the off-season. Therefore, we are confident and determined to further enhance Hainan’s reputation as a hub of tourism and consumption, ensuring that domestic and foreign guests can feel at home and travel in Hainan with peace of mind. Thank you.

China Daily:

Boao Lecheng International Medical Tourism Pilot Zone has been granted preferential policies for licensed drugs and medical devices, and has introduced more than 390 types of drugs and devices from overseas, providing more treatment options for domestic patients in urgent need of new medicines. What is Boao Lecheng's current operating situation? What are its development plans and prospects? Thank you.

Xie Jing:

As the only "special medical zone" in China, Boao Lecheng International Medical Tourism Pilot Zone has consistently adhered to the strategic positioning assigned by the nation and has essentially achieved a supply of innovative medicines and equipment that are in sync with the rest of the world. It has become a city of hope for patients with rare, difficult and complicated diseases to find new medicines, devices and treatments. Over the past five years, the number of medical tourists in the zone has increased by an average of 56% annually, while operating income has increased by an average of 65% per year. Additionally, the number of users of licensed drugs and medical devices has risen by an average of over 200% annually.

Recently, many people may have noticed that a drug for treating ALS, approved for sale in the United States in April last year, was introduced to Ruijin Hainan Hospital in Boao Lecheng just six months later. At the beginning of this year, domestic patients with ALS began using this innovative drug in Lecheng. Lecheng has pioneered the use of 391 such imported medicines and devices that are urgently needed for clinical use in China, benefiting more than 60,000 patients. At present, 28 medical institutions in Lecheng, including Ruijin Hainan Hospital, which has been approved to build a regional medical center, are open and operational. By the end of 2024, 10 more hospitals will open one after another, forming a "domestic + international" and "comprehensive + specialty" medical pattern. Lecheng has good medicines, equipment and hospitals. More and more domestic patients can access the most cutting-edge drugs and medical devices by coming to Lecheng, without having to go abroad or travel across oceans.

Lecheng is also leading the country in launching several tasks for institutional integration and innovation , such as real-world data research and the "medical + pharmaceutical" two-in-one supervision system. Currently, Lecheng has established close cooperation with over 170 pharmaceutical equipment companies from 20 countries. By using real-world data-assisted clinical evaluation in Lecheng, 13 pharmaceuticals and medical devices have been approved, significantly shortening the approval process. As a result, Lecheng has become the primary channel for the rapid entry of the world's latest pharmaceuticals and medical devices into China.

Next, we will focus on the following three aspects:

First, we will provide the people with better medical services and more innovative drugs and medical devices . This involves attracting more internationally renowned medical institutions and physicians, increasing the introduction of innovative drugs and medical devices from around the world, and contributing more "Lecheng strength" to the vision of building a "Healthy China."

Second, we will further deepen institutional integration and innovation. We will advance real-world data research from the "pilot" stage to the "upgraded" stage, offering Hainan's practical experience in exploring the deepening reform of drug and medical device evaluation and approval systems in China.

Third, we will continue to develop Lecheng into an international medical tourism destination . We will fully leverage Hainan's advantages in tourism resources and visa-free entry policy for 59 countries to expand into the international market and enhance Lecheng's global appeal. Thank you!

China News Service:

What specific measures has the Hainan FTP taken in terms of institutional innovation? How will it create more iconic achievements that distinguish it as an FTP in the future? Thank you.

Guan Jirong:

After several years of unremitting efforts, Hainan has achieved remarkable results in institutional integration and innovation. It has launched 16 batches of 140 innovation cases and gradually established a more mature working mechanism.

First, we have maintained coordination between the provincial government and central ministries. We have paid more attention to top-level design, strived for in-depth participation and strong support from relevant ministries, and jointly promoted 10 key innovation tasks. For example, the "five-in-one" intellectual property rights and the application of real-world data in medical insurance are at the forefront of the country. Second, we have benchmarked against high-standard economic and trade rules. We have implemented RCEP and further promoted 20 action measures. We have aligned with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and conducted pilot projects in areas such as certification, accreditation and market entity registration. We have also coordinated with the Digital Economy Partnership Agreement (DEPA) and started the formulation of a digital trade development plan. Currently, remarkable results have been achieved. Total trade in goods between Hainan province and RCEP member states achieved double-digit growth in 2023, and the total service trade volume doubled during the same year. Third, we have focused on key areas. We have planned and promoted a series of institutional integration and innovation initiatives centered around the policies and rules of the "five liberalizations and facilitation s, and the secure and orderly flow of data (the liberalization and facilitation of the flow of trade, investment, cross-border capital, personnel and transportation)." For example, we have implemented the full-process supervision model for "zero-tariff" imported goods, a traceability code management system for offshore duty-free goods, the "Yangpu Port in China" ship registration system," and "credit plus" approval services.

These institutional innovations have further stimulated the development vitality of the Hainan FTP and have played a positive role in enhancing its international competitiveness. For example, we launched China's first "single-window" system for international investment, achieving the goal of requiring only a single visit to register and establish an enterprise. The number of forms and documents required by enterprises has been reduced by 55%, and the approval process time has been cut by 70%. Additionally, a number of institutional innovation achievements have also been explored and established in areas of foreign-related lawyer services, international commercial dispute resolution, and the joint review and inspection of foreign nationals' work and residence permits.

Next, we will prioritize institutional integration and innovation as key approaches to create more remarkable achievements. First, we will focus on independent customs operation s and promote institutional integration. With no existing models to draw from, especially in the supervision of "second line" ports, we propose basic strategies such as "minimizing customs clearance time and the clearance processes , categorized supervision, smart supervision, and credit supervision." We must explore and establish a sound and efficient operating model through extensive institutional innovation. Second, we will focus on institutional opening-up through pilot projects. With greater determination and effort, we aim to align with high-standard international economic and trade rules. We will focus on building "two headquarters bases," "two networks," and "two hubs" and accelerating exploration in areas such as improving property rights protection, market access, fair competition, and social credit management. Third, we will concentrate on reforming and improving institutions in key areas. We will adopt a problem-oriented approach and swiftly address bottlenecks restricting Hainan's high-quality development. For example, to improve the business environment, we will strengthen the concept of "integrated government" and effectively solve problems in market access, resource acquisition, fair law enforcement, and the protection of rights and interests. This will provide companies with confidence and accelerate the development of a business environment based on the rule of law, internationalization and facilitation. Thank you.

National Business Daily:

We've noticed that the wild population of Hainan gibbons has increased to 37, distributed across six families , which has heightened expectations for Hainan's Tropical Rainforest National Park. How does Hainan plan to meet these expectations and further develop the National Ecological Civilization Pilot Zone ? Thank you.

Liu Xiaoming:

Thank you for your question and your thorough research. Indeed, the population of Hainan gibbons, once as low as 11 across three families, has grown to 37 across six families. You have certainly done your homework well. Let me answer your question.

The Hainan Tropical Rainforest National Park, as one of the first five national parks in China, is recognized by General Secretary Xi Jinping as a "national treasure," and is an epitome of Hainan's efforts to build the National Ecological Civilization Pilot Zone. In Hainan, not only can you enjoy the sun, beaches, and waves, but you can also delve deep into the rainforests to breathe the fresh air and discover its magical allure.

The National Ecological Civilization Pilot Zone is one of the strategic roles designated to Hainan by the central government. In recent years, we have steadfastly prioritized ecological development by "setting scientific objectives, maintaining ecological redlines, serving as a model, and exploring new paths" to actively advance the development of the pilot zone.

First, we have established clear scientific objectives. We aim to achieve nationally leading standards in environmental quality and ecological conservation, making Hainan a prominent showcase of the practices and achievements of Xi Jinping Thought on Eco-Civilization to the world.

Second, we have been upholding strict ecological redlines. We actively engage in initiatives to protect our blue skies, clear waters, and clean lands, rigorously addressing any issues to ensure continuous improvement in our environmental conditions. Last year, for example, we achieved a 99.5% rate of good or excellent air quality days, a PM2.5 level of 12 micrograms per cubic meter, and 95.9% of our provincial surface waters were rated as good or excellent.

Third, we aim to serve as a model. This involves the six landmark projects that have already yielded significant results. For instance, we are actively building Hainan into a clean energy island and promoting the adoption of clean energy vehicles. Hainan has the country's highest adoption rate of clean energy vehicles, with one out of every two new vehicles fueled by clean energy. Moreover, the Boao near-zero carbon demonstration zone is now operational and is striving to develop globally recognized "Boao Standards."

Fourth, we are exploring new paths to convert ecological advantages into developmental and competitive advantages. For example, a bamboo fungus cultivation project in Baisha county has implemented the Gross Ecosystem Product (GEP) accounting method to evaluate its ecosystem, product and cultural research values. This project received a 500,000 yuan loan without collateral, encouraging businesses to engage in transformative environmental practices and ensuring local communities benefit from the ecological environment. This approach promotes both a high level of environmental protection and high-quality economic and social development.

We fully understand that Hainan belongs not just to its local residents, but also to the entire Chinese population. We will make greater efforts to develop a high-quality National Ecological Civilization Pilot Zone, strive to pioneer a beautiful China, safeguard our national garden throughout all seasons, and better fulfill the people's deep affection and expectations! Thank you!

Sansha Satellite TV:

Hainan's foreign trade has shown strong momentum in recent years, with private enterprises becoming the main force behind this expansion. Could you elaborate on the measures Hainan is taking to promote the development of the private economy? Thank you.

Chen Jiyang:

The private economy in Hainan can be summarized by the figures "8-6-9-9-9." To date, Hainan is home to 3.8 million private businesses, which contribute over 80% of the province's tax revenue, nearly 60% of its GDP, and about 90% of employment opportunities, among which 90% are high-tech enterprises. Private businesses account for 97% of all business entities in the province, underscoring that the private sector is an indispensable force in the construction of the Hainan FTP and a focal point in improving Hainan's business environment.

Hainan is committed to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector . We are dedicated to creating a favorable environment for the private sector by improving the system of fair competition, treating all types of business entities equitably, and enhancing support for the private economy and private businesses. Our main efforts are concentrated in the following three areas:

First, we are strengthening policy guidance. We have developed 26 specific measures to support the development of the private economy, focusing on six aspects including enhancing the confidence of private enterprises. These measures include integrating support and encouragement indicators for the private economy into the economic and social development plans at all levels across the province, as well as into comprehensive performance assessments of high-quality development at the municipal and county levels .

Second, we are improving our institutional framework. We have meticulously implemented the Regulations of Hainan Free Trade Port on Fair Competition , the country's first local regulation on fair competition, and continuously conducted screenings and cleanups of explicit and implicit barriers to market access. We have introduced a series of machine-assisted reforms, such as machine-assisted planning and bidding processes, ensuring that private economic entities can compete on an equal footing. Taking the machine-assisted bidding system as an example, we have innovatively implemented a fully digital transaction process for bidding and government procurement. As of the end of 2023, these transactions amounted to 15.52 billion yuan. Among the 276 bidding sections completed last year, the number of participating bidding entities per unit section increased by 12.4 times. In the past, these numbers were often in single digits; now, they generally reach double digits, and in some bidding sections have reached triple digits, indicating a rapid increase in the participation of private economic entities.

Third, we have enhanced service efficiency. The private sector is an important target of our enterprise services. Last year, the province embarked on a comprehensive survey and service campaign for enterprises above the designated size, delivering policies, services, and solutions to enterprises, with private businesses accounting for 38% of the total. This year, we will continue to carry out special service actions targeting 10,000 enterprises, with private enterprises expected to account for nearly 90%. Thank you.

Guangming Daily:

Recently, Hainan province unveiled a series of key talent policies, including the Measures for Comprehensively Attracting, Cultivating, and Utilizing Talent in Hainan FTP. These policies represent a comprehensive optimization and enhancement of existing frameworks. Could you please elaborate on the province's achievements in attracting, cultivating, and utilizing talent in recent years, and also share your plan for the future?

Liu Xiaoming:

Thank you for your question. Hainan province has steadfastly adhered to the principle that talent is the primary resource. We have coordinated the implementation of the One Million Talent Recruitment Action Plan of Hainan Province and the "South China Sea Series" talent training initiative, creating a conducive environment for both living and professional growth, thus cultivating a fertile ground for talent development. Over the past five years, Hainan has successfully attracted nearly 700,000 talents from diverse backgrounds.

Looking ahead, we aim to further enhance the integrated development of education, science, technology and talent. We will continuously refine our policies to support talent development, striving to create a vibrant environment where talent from all corners of the globe converges to jointly build the FTP . To this end, we will deploy "five strategic cards":

First, we will play the card for "talent attraction and cultivation." We aim to attract top talent more frequently and effectively. For instance, teams selected for the Hainan Provincial Excellent Talent Team may receive up to 30 million yuan in funding. Simultaneously, we are dedicated to vigorously developing local talents and accelerating the implementation of the South China Sea Talent Development Plan in conjunction with the "Hainan Merchant" training program.

Second, we will play the card for "platform construction." With the operation of Yazhou Bay National Laboratory , the Hainan Deep-Sea Technology Innovation Center , and the imminent commissioning of the commercial space launch site, Hainan province has attracted a string of world-class scientific and technological platforms. These provide the province with world-class research facilities and an entrepreneurial environment, offering a broad stage for talent development. Furthermore, these platforms facilitate the development of new quality productive forces and their important practice bases in light of Hainan's actual conditions.

Third, we will play the card for "reforms." We will enhance the talent evaluation system, placing greater emphasis on innovative value, ability, and contribution. We will explore reforms in the property rights system for scientific and technological achievements, alongside comprehensive intellectual property rights protection. Additionally, we will establish a system that balances the free exploration of scientific research talents with organized scientific research, enabling talents to freely showcase their abilities within the province.

Fourth, we will play the card for "opening-up." We will introduce more convenient and open policies regarding foreigners' entry, exit, and work permits to support international scientific and technological exchanges and cooperation. Hainan province, for instance, boasts a visa-free entry policy for citizens of 59 countries and has attracted foreign talents from over 100 countries and regions to reside and work within the province.

Fifth, we will play the card for "services." We will continuously enhance public services, ensuring that talent of all kinds can work comfortably, happily, and with dedication in the province. For example, to address the housing needs of talents, we will vigorously develop affordable housing options. These options will allow them to purchase properties at prices that do not exceed 10 times their annual family income or 60% of the previous year's average commercial housing sales price. Additionally, talents in different categories are eligible for corresponding housing subsidies. We also issue Tianya Elite Cards , which grant high-level talents access to premium services in areas such as children's education, healthcare and transportation.

Today, I extend a heartfelt invitation to outstanding Chinese and foreign talents, as well as graduating students. We eagerly anticipate and welcome you to choose Hainan province, integrate with our community, and contribute to its development. Let us work together to build the Hainan FTP, inspire our youth, and realize our dreams. Thank you!

Xing Huina:

That concludes today's press conference. Thank you to the four speakers and all the members of the media for your participation. Goodbye.

Translated and edited by Wang Qian, Xu Xiaoxuan, Liu Jianing, Liu Sitong, Zhang Rui, Zhou Jing, Li Huiru, Zhang Tingting, Zhang Junmian, Liu Caiyi, Wang Wei, Yan Bin, Huang Shan, Yan Xiaoqing, Liu Qiang, Guo Yiming, Yuan Fang, Wang Ziteng, Li Xiao, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Zhou Naixiang, deputy secretary of the Communist Party of China Shandong Provincial Committee and governor of Shandong province

Mr. Fan Bo, vice governor of Shandong province

Mr. Song Junji, vice governor of Shandong province

Mr. Sun Aijun, director of the Shandong Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 10, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the eighth briefing in the series "Promoting High-Quality Development." We have invited Mr. Zhou Naixiang, deputy secretary of the Communist Party of China (CPC) Shandong Provincial Committee and governor of Shandong province, to brief you on Shandong's practice in green, low-carbon and high-quality development, and to take your questions. Also present today are Mr. Fan Bo, vice governor of Shandong province; Mr. Song Junji, vice governor of Shandong province; and Mr. Sun Aijun, director of the Shandong Development and Reform Commission.

Now, I'll give the floor to Mr. Zhou for his introduction.

Zhou Naixiang:

Good morning, everyone. It's a great pleasure to brief you on Shandong's high-quality development. First of all, on behalf of the CPC Shandong Provincial Committee, the Shandong provincial government and the more than 100 million Shandong residents, I'd like to express my heartfelt gratitude to people from all walks of life for their long-term interest in and support for Shandong's development. 

Shandong is a major province in terms of population, culture, resources and economy. It bears the significant responsibility entrusted by the CPC Central Committee and the State Council to build a pilot zone for green, low-carbon and high-quality development.

Showing great care and high expectations for Shandong, General Secretary Xi Jinping has made inspection visits to the province on multiple occasions, providing guidance and charting the course for us and requiring us to lead the way and break new ground. We have kept in mind the general secretary's expectations, shouldered our missions and forged ahead, making solid progress in promoting high-quality development and fostering a strong, modern province. 

The economy has improved in both quantity and quality. Shandong's GDP has grown by an average of over 6% annually, reaching 9.2 trillion yuan ($1.27 trillion) last year, with three cities surpassing the 1-trillion-yuan mark. The output of high-tech industries has accounted for over 51% of the total industrial output of enterprises above designated size, an increase of over 3 percentage points year on year, and the number of market entities in high-tech industries has reached 14.74 million. The major national strategy for ecological protection and high-quality development of the Yellow River basin has been thoroughly implemented. Approval has been given to develop the metropolitan areas of Jinan and Qingdao.

Abundant results have been achieved in scientific and technological innovation. R&D spending across Shandong has maintained a growth of over 12% in the past three years. With construction of Laoshan Laboratory initiated, Shandong now boasts 21 key national laboratories. The world's first fourth-generation nuclear power plant, China's Shidaowan high temperature gas-cooled reactor nuclear power plant, has gone into commercial operation. The Oriental Maritime Space Port has sent 57 satellites into space through sea launches. The world's first high-speed maglev transportation system with a speed of 600 kilometers per hour has rolled off the assembly line. The province owned 240,000 invention patents by the end of last year, up 26.5% year on year.

Industrial upgrading has been accelerated. The value added of industries above designated size has maintained an average growth rate of 7.4% over the past two years. A total of 11 flagship industrial chains have been cultivated at a faster pace. Shandong is now home to more than 200 manufacturing enterprises that are champions in their individual categories, 1,032 "little giant" companies (novel and elite small and medium-sized enterprises that specialize in a niche market, boast cutting-edge technologies, and show great potential), and over 45,000 small and medium-sized sci-tech enterprises. Shandong also boasts 47 national industrial internet platforms, with its industrial digitalization index ranking among the top in the country. 

Breakthroughs have been made in infrastructure building. The length of in-service high-speed railways in Shandong has reached 2,810 kilometers, ranking first nationwide. Construction of the Tianjin-Weifang and Weifang-Suqian high-speed railways — two sections of the second Beijing-Shanghai high-speed railway — as well as the Shandong section of the Xiong'an-Shangqiu high-speed railway has been expedited. The length of expressways has exceeded 8,400 kilometers. Significant progress has been made in building the modern water network. Over 200,000 5G base stations have been put into operation.

The ecological environment has continued to improve. Energy consumption per 10,000 yuan of GDP has decreased by 15.8% over the past three years. The installed capacity of new energy and renewable energy has exceeded 97 million kilowatts. The average concentration of fine particulate matter (PM2.5) has dropped by 19% over the past three years, and 83.7% of surface water sections monitored by the state have been rated either good or excellent for quality.

The people's well-being has improved. Government spending for people's well-being has remained at around 80% of the total amount. Over 1.2 million urban jobs were added annually, and public services and social security have continuously improved.

On the new journey, we will implement the general secretary's important instructions and requirements on Shandong's development, making solid efforts to write a new chapter of Chinese modernization in Shandong. We will take concrete actions to resolutely advocate the establishment of both Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and resolutely uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the authority of the Party Central Committee and its centralized, unified leadership. This year, we will make efforts to ensure GDP growth reaches more than 5% and the per capita disposable income of residents increases by around 5.5%.

First, we will make solid efforts to nurture and develop new quality productive forces. We will implement the three-year action plan for developing new quality productive forces, enhancing scientific and technological innovation, and reinforcing the principal role of enterprises. A total of 100 major programs targeting sci-tech innovation will be carried out in the integrated circuit industry and machine tool industry. We will advance industrial upgrading and seize significant opportunities to promote large-scale equipment updates and consumer goods trade-ins. We will intensify our efforts to build a modern industrial system, which will support the development of six traditional industries, nine competitive industries, nine emerging industries, and seven future industries. We will also ramp up efforts to attract and cultivate talent by enhancing our initiatives to attract and retain top talent, our programs to cultivate and support exceptional scientific and technological talent, and the Taishan talent programs. By doing so, we aim to facilitate a mutually reinforcing interaction among science, education and talent.

Second, we will remain committed to building Shandong into a model of rural revitalization. We will intensify our efforts to build a beautiful and harmonious countryside, making it an attractive place to live and work. We will also continue to advance the construction of the "Granary of Shandong." We will ensure that annual grain production remains stable above 110 billion kilograms and that the output of vegetables, fruits, aquatic products, meat, eggs, and milk remains among the highest in the country. Moreover, we will make sure our total output value of agriculture, forestry, animal husbandry, and fisheries continues to lead the country.

Third, we will ramp up efforts to achieve new heights of opening-up. We will promote the development of national-level opening-up platforms, including the China-SCO Local Economic and Trade Cooperation Demonstration Area (SCODA), the Jinan Start-up Area for Growth Drivers Transformation, and the pilot free trade zone. We will make greater efforts to attract high-quality investment and consolidate and improve foreign trade and investment. We will further boost the quality and efficiency of government services, and cultivate a market-oriented, law-based and world-class business environment.

Fourth, we will make solid efforts to build Shandong into a maritime province. We are committed to building world-class port clusters and supporting the development of competitive industrial clusters, such as offshore engineering equipment and marine biomedicine. We also aim to increase the cargo throughput of Shandong's coastal ports to over 2 billion tons and ensure that at least 95.6% of our coastal waters maintain good water quality.

Fifth, we will intensify efforts to build a beautiful Shandong. Efforts will be made to cut carbon emissions, reduce pollution, and expand green development. We will also accelerate the construction of five major clean energy bases, such as nuclear and offshore wind power bases, enabling more cities to use the energy generated by nuclear power. We are committed to creating beautiful national-level rivers, lakes, and bays to make Shandong a place where waters are cleaner and mountains are greener.

Sixth, we will ensure and improve people's well-being. This year, we aim to create more than 1.1 million urban jobs and 100,000 new urban public welfare jobs. Additionally, we plan to renovate and upgrade 560,000 old urban residential communities and 10,000 village medical clinics. We will devote greater efforts to key areas of people's livelihoods, including education, healthcare, social security, elderly care, and cultural activities, all aimed at improving the quality of people's lives.

That's all for my introduction. Thank you. 

Chen Wenjun:

Thank you, Mr. Zhou. Now, the floor is open for questions. Please identify the news agency you represent before asking your questions.

CCTV:

I've learned that Shandong's first local regulation for the protection of the Yellow River will take effect on July 1 this year. Given that Shandong province serves as an important area for the ecological protection and high-quality development of the Yellow River Basin, what achievements has the province made in implementing this major national strategy? Additionally, what new efforts will be made in this regard? Thank you.

Zhou Naixiang:

I'll answer this question. The Yellow River meanders for thousands of miles and flows into the sea in Dongying, Shandong province.

General Secretary Xi Jinping has always kept the development of the Yellow River in mind and has required Shandong to "take the lead in advancing the ecological conservation and high-quality development of the Yellow River Basin."

We have comprehensively implemented policies, focused on effective implementation, and made significant progress.

Here, I would like to use a few figures to illustrate this progress:

The first is 373. This refers to the number of bird species currently inhabiting the Yellow River Delta National Nature Reserve, which is twice as high as the number during its early construction. Over the years, we have restored more than 300,000 mu (20,000 hectares) of wetlands in total. With flocks of birds flying along the river and inhabiting its surrounding area, this major nature reserve is brimming with vibrant vitality. We welcome you to visit the Yellow River Estuary National Park.

The second is 600,000, which represents the number of residents relocated from the Yellow River floodplain and those whose houses were fortified. We have adopted multiple measures, such as relocating people to more hospitable areas, building elevated foundations in nearby neighborhoods, and providing follow-up support, allowing residents in the river's floodplain to break free from the threat of flood disasters and live in peace. 

The third is 8 million mu, representing the amount of land nationwide dedicated to new varieties of salt-tolerant and alkali-resisting crops cultivated in Shandong. We have established the National Saline-alkali Land Comprehensive Utilization Technology Innovation Center and successfully cultivated 37 new varieties of salt-tolerant and alkali-resisting crops, such as soybeans, rice and potatoes. These efforts have filled multiple gaps, ensuring the application of salt-tolerance technology, also referred to as the "salt-tolerance chip," in grain planting in China. 

The last figure is 37 million metric tons. It refers to the overall reduced production capacity in steelmaking, aluminum electrolysis, and oil refining by the nine cities along the Yellow River. We have established 370 green factories and 38 green industrial parks, all above the provincial level. This is part of our efforts to transform our industries toward green and upgraded development.

There are still more aspects of our work, which I will not list individually.

Going forward, to make the Yellow River a river of happiness that brings benefits to the people, we will make steadfast and persistent efforts focusing on three main aspects:

First, we will work to ensure the long-term stability of the Yellow River. 

We will implement the flood control project for the lower reaches of the Yellow River as outlined in the 14th Five-Year Plan. A total of 24 riverways will be renovated, and 10 diversion culverts and sluices will be rebuilt. Particular efforts will be put into improving the security level of Dongping Lake's flood storage and detention area, which is the only vital flood storage and detention area in the Yellow River Basin. Once completed, it will greatly enhance the flood control capacity in the lower reaches of the Yellow River. We are steadily advancing this project.

Second, we will strengthen ecological conservation and governance.

We will accelerate our efforts to protect the ecological corridors along the Yellow River, create a high-quality Yellow River Estuary National Park, strengthen the comprehensive management of rural nonpoint source pollution, and carry out the action plan on biodiversity conservation. With these efforts, we will strive to make the Yellow River Delta more beautiful and charming.

Third, we will promote high-quality transformation and upgrading across the Yellow River region.

The integrated development of the nine cities along the Yellow River will be advanced, and a great sci-tech innovation corridor will be created in the region. We will also further develop our competitive industries, such as high-end equipment, the green chemical industry, and modern agriculture. Additionally, we plan to build an integrated 10-gigawatt wind power and solar energy storage and transmission base on the salt and alkali mudflats in north Shandong.

Moreover, we will build a high-quality Shandong section of the Yellow River National Cultural Park, strengthen our calling card — the Nishan Forum on World Civilizations — and create an internationally influential Yellow River cultural experience corridor. Thank you.

Phoenix Satellite Television:

As we know, Shandong boasts well-developed traditional industries. Could you please elaborate on what plans Shandong has to advance new-type industrialization and future-oriented industries that are suited to its local characteristics? Thank you.

Fan Bo:

Thank you. I'm glad to answer your question. Shandong is a major economically developed province, and also an industrial and manufacturing powerhouse. The province boasts large-scale industries with complete supply systems. We are making rapid progress in replacing old growth drivers with new ones. The province has also effectively integrated the application of information technology with industrialization, resulting in sound industrial development momentum. Shandong boasts all 41 major industrial categories, 197 intermediate categories out of 207, and 603 of 666 small categories. In 2023, the industrial value-added of the province reached 2.92 trillion yuan, and investment in the "four new" economies — comprising new technologies, industries, business forms and models — grew by 11.1%. Additionally, Shandong ranks among the highest in the country in terms of the number of national-level industrial internet platforms, the industrial digitization index, and the digital transformation index for the manufacturing industry. In the first two months of this year, our growth rate of the added value of industrial enterprises above designated size was 9.4%, 2.4 percentage points higher than the national level.

We will prioritize the development of the industrial sector, focusing on high-end, smart, green and clustered development. We aim to explore new approaches and assume greater responsibility for driving new industrialization forward.

We will make every effort to promote high-end sectors.

We will optimize traditional industries in a coordinated manner, boost emerging industries, and plan the development of future-oriented industries. We will promote industrial innovation through technological innovation, develop new quality productive forces tailored to local conditions and circumstances, and build a modern industrial system underpinned by advanced manufacturing. By doing so, we aim for high-tech industries to contribute around 52% of the total output value this year from industrial enterprises above designated size.

We will spare no effort to foster new growth engines featuring intelligent technologies.

The digital industry will be advanced alongside the digital transformation of traditional industries. The province will speed up the upgrading of enterprises with smart, digital and IT technologies, turning digitalization into a powerful engine for new industrialization.

This year, the digital coverage of industrial enterprises above designated size will increase to around 90%, which is 2 to 3 percentage points higher than in 2023. 

We will spare no effort to promote the transition to green development.

We will intensify our efforts to advance energy conservation and carbon and pollution reduction initiatives to build a comprehensive green industrial system. This year, we aim to ensure that energy consumption per unit of added value for industrial enterprises above designated size decreases by more than 4%.

We will spare no effort to build industrial clusters.

Our integrated approach will support enterprises of all sizes, strengthen key industrial chains, and develop high-quality advanced manufacturing clusters, industrial parks and development zones.

In 2024, we will aim to establish about 5,000 new industrial enterprises above designated size. Additionally, around 20 enterprises will increase their annual revenue to 10 billion yuan and approximately 10 will increase their annual revenue to 50 billion yuan. We will also work to nurture about 1,000 innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

Future-oriented industries are an important area of new industrialization. Shandong has proactively adopted development plans in 24 key areas, including blockchain technology and virtual reality (VR). With a focus on seven future-oriented industries, including artificial intelligence (AI), quantum technology and deep sea and aerospace exploration, we will intensify efforts to build several pioneering zones and specialized industrial parks to accelerate the creation of new strengths for new industrialization. Thank you.

ITAR-TASS:

I noticed that last year, Shandong's imports and exports increased by 1.7% year on year. In particular, its trade with Russia grew by 27.6%. What are the reasons behind the fast growth of Shandong's imports and exports? What measures will you take to further enhance its foreign trade? Thank you.

Song Junji:

Thank you for your questions. As you mentioned, last year, Shandong's imports and exports maintained good momentum for growth, with the total value reaching 3.26 trillion yuan. The province has led the country in agricultural exports for 25 consecutive years and engages in trade with over 230 countries and regions. Russia is also an important cooperation partner. As one of the leading provinces in opening-up and trade, Shandong has given full play to its role and taken on significant responsibilities.

These achievements are mainly due to our integrated efforts in policymaking, market expansion and service improvement. Meanwhile, we have ensured traditional growth drivers like general trade and new ones like cross-border e-commerce develop concurrently. For example, in terms of policymaking, the province issued seven documents last year and 153 policies and measures related to commerce. In terms of market expansion, we have implemented a plan to organize local companies to participate in exhibitions held overseas. Local foreign trade companies attended more than 540 overseas exhibitions last year. In terms of service improvement, we have improved mechanisms such as "Commerce Plus Port," "Commerce Plus Finance," and "Commerce Plus Customs," providing over 641 billion yuan in credit for commercial and trade enterprises in 2023. All these efforts have provided solid support for stabilizing and growing foreign trade in Shandong.

This year, we will prioritize cultivating new momentum in foreign trade as a key focus of opening up wider to the world, strive to leverage strengths and address weaknesses, promote stability and improve quality in foreign trade, and focus on achieving the "four news."

First, we will introduce "new policies." Since the beginning of this year, in order to promote exports of the "new trio" (electric vehicles, lithium-ion batteries and photovoltaic products), build leading supply chain enterprises and promote the development of cross-border e-commerce, four documents and 37 policies and measures have been released.

Next, we will focus on areas such as intermediate trade, market procurement trade and overseas warehouse construction, continue to optimize a series of policies and measures, expand the scale of credit support such as "Shandong Trade Loan" and "Tariff Insurance," provide precision support for foreign trade enterprises, and continuously stabilize market expectations.

Second, we will explore "new markets." There is a common saying in the foreign trade industry: "After a thousand emails, we still need to meet in person." Therefore, Shandong province launched the "Remarkable Shandong for Worldwide Trade" market expansion campaign this year. We plan to hold and participate in 263 exhibitions and 10 themed matchmaking events overseas this year, support enterprises in "going out" to expand markets, and help more and more high-quality products from Shandong go overseas.

Third, we will foster "new products." We will actively leverage the RCEP agreement, deepen economic and trade connections with key ASEAN markets, consolidate and expand the export scale of intermediate goods and green, low-carbon products, actively integrate into regional industrial chains, and better transform Shandong's industrial advantages into trade advantages.

Finally, we will develop "new business models." We will implement the Cross-border E-commerce Leap Development Action, cultivate 50 new well-known cross-border e-commerce brands and 10 cross-border e-commerce trading platforms this year, and promote the growth and strength of cross-border e-commerce.

At the same time, we will optimize market procurement trade, provide precision support to enterprises in areas such as exhibition and sales platforms, overseas marketing promotion and mutual market development, continuously foster new foreign trade growth, and strive to deliver a "report card" showing stable quantity and quality improvement in imports and exports. Thank you.

Beijing Youth Daily: 

I noticed that netizens have recently given Shandong a new title, calling it the "First Province of High-speed Rail in China." The reason is that as the governor mentioned, the length of in-service high-speed railways in Shandong has reached 2,810 kilometers, ranking first in the country. As the gateway to the outside world in the Yellow River Basin, how will Shandong expand and strengthen its transportation advantages and better play a leading role? Thank you.

Zhou Naixiang:

Thank you. I'll answer this question.

With strong transportation, all industries thrive. Shandong is the first province in the country to build a strong transportation demonstration zone with relevant ministries. In recent years, we have accelerated the construction of a modern, comprehensive, multidimensional transportation network and achieved positive results.

In terms of railways, the construction of "Shandong on the tracks" has been accelerated.

Within the province, the high-speed rail network continues to expand, with five new high-speed rail lines completed in the past three years. A total of 145 trains per day operate on the Jinan-Qingdao high-speed rail line, achieving "bus-like" operations.

Outside the province, there are now four high-speed rail corridors connecting Shandong to other provinces. Currently, there are seven high-speed rail lines under construction. Once completed, the total length of high-speed railways in Shandong will exceed 4,300 kilometers, realizing high-speed rail access to every city and seven corridors reaching other provinces.

In terms of freight railways, the backbone freight railway network of "Four Verticals and Four Horizontals" continues to improve, with a total length of 5,018 kilometers, and all main lines have been electrified.

Regarding highways, the urban and rural road networks are becoming increasingly dense.

In the past two years, 14 expressways have been completed and opened to traffic, and 33 are under construction. The total length of expressways in operation has exceeded 8,400 kilometers, 36.6% of which are composed of six or more lanes.

The nation's first zero-carbon smart highway, the Jinan-Weifang Expressway, has been completed and opened to traffic. The scale of rural road networks has reached 264,000 kilometers, achieving the goal of "every village connected by asphalt road, every household connected by hardened road."

In terms of airports, solid progress has been made in constructing airport clusters.

The 4F-class Qingdao Jiaodong International Airport has been completed and put into operation. The second construction phase of Yantai Airport has been finished, while Jining Da'an Airport has been relocated and is now operational. The second construction phase of Jinan Airport has also been accelerated. 

Moving forward, we will continue to expedite the development of transportation infrastructure, with a planned investment of 325 billion yuan in transportation this year.

First, we will accelerate the establishment of a comprehensive transportation network. Situated in proximity to Beijing, Tianjin, and Hebei in the north, connected to the Yangtze River Delta in the south, neighboring Japan and South Korea in the east, and linked to the Belt and Road in the west, Shandong possesses natural advantages for constructing an interconnected transportation network. Following the strategy of ensuring smooth channels, weaving dense networks, strengthening hubs, and promoting improvement and upgrades, we will actively construct 10 major transport infrastructure channels featuring four horizontal and five vertical routes, stretching along the Yellow River and connecting with the sea. We will also expedite the construction of world-class port clusters.

We will accelerate the planning and construction of the Laiwu-Linyi high-speed railway. Upon completion, the railway will unleash tremendous potential in the hinterland of Shandong, including the Yimeng Mountain area.

Second, we will speed up efforts to improve the efficiency of transportation services. The freight logistics system will be optimized, further promoting road-to-rail and road-to-waterway transfer and the vigorous development of multimodal and sea-rail intermodal transport. More than 2,300 China-Europe freight trains departing from Shandong will be operated this year. We will implement freight railway network coordination, expansion, and enhancement projects, with nine renovated railway projects, including the line from Dongjiakou to Yishui.

We will promote comprehensive transport services with a single ticket system, a single document system, and a single container system, facilitating the seamless movement of people and goods.

Third, we will accelerate the development of new business forms in smart transportation. By incorporating intelligent technologies into Shandong's transportation infrastructure, we will actively develop replicable and applicable applications, such as autonomous driving and fully automated port operations. This will empower transportation development with smart technologies.

In conclusion, we will fully leverage the pioneering role of transportation to explore new paths and contribute to boosting China's strength in transportation from Shandong. Thank you.

Economic Daily:

I've noticed that in 2023, the digital economy's proportion of Shandong province's GDP exceeded 47%. What measures will be taken in the future to promote the deep integration of the digital economy and the real economy to further drive the high-quality development of the digital economy? Thank you.

Sun Aijun:

Thank you for your concern. The digital economy is key to winning future competition. We have accelerated efforts to build Shandong into a digital powerhouse in recent years. Last year, the value-added of the digital economy reached 4.3 trillion yuan, accounting for 47% of the province's GDP, which is nearly 8 percentage points higher than the proportion of the secondary industry. It can be said that the digital economy has contributed almost half of Shandong's GDP. In particular, as a major manufacturing province, we have made great efforts to promote the integration of the digital economy and the real economy. Shandong ranks among the top in the country for its industrial digitalization index, with 47 national-level industrial internet platforms and 35 national-level smart factories, the most in the country.

Last year, the Shandong Provincial Committee of the CPC and the Shandong Provincial People's Government held a conference on the high-quality development of the digital economy. It established a special fund of 10 billion yuan, with increasingly strong support. We will seek breakthroughs in three major areas, leading economic and social transformation in all aspects with digital transformation.

First, we will strengthen the digital industry, which is our key focus. After years of cultivation, we have built a sound foundation. Shandong province's big data industry accounts for one-eighth of the country's total, and the integrated circuit industry now has a complete industrial chain. Shandong company Inspur's shipments of general servers rank first in the country, and Goertek's virtual reality headsets account for 80% of the global medium- and high-end market. Based on these, we have planned and implemented 10 major projects, such as "Strong Chip" in integrated circuits and "Solid Link" in advanced computing, while launching 100 leading projects each year. We have formulated supporting policies in taxation, finance, and land use, provided targeted one-on-one support, and promoted the information technology industry's revenue to maintain double-digit growth, aiming to exceed 2.4 trillion yuan by the end of next year.

Second, we will deepen digital development. Approximately 20% of the province's efforts will be dedicated to digital industrialization, while the majority, around 80%, will be allocated to industrial digitalization. With a solid industrial foundation, Shandong has a high demand for smart transformation and various digital scenarios. Currently, we are implementing eight major actions to promote industrial digitalization, with 32 "industrial brains" supporting the digital transformation of the manufacturing sector. Over the next two years, we plan to establish more than 500 bases for smart agricultural applications and 10 platform economy clusters. By focusing on these areas, the province aims to tap into the huge market of industrial digitalization.

Third, we will enhance digital infrastructure. To develop the digital economy, the construction of new infrastructure is essential. We have two national internet backbone access points in Jinan and Qingdao, making us the first province in the country with "dual hubs." Shandong also has the largest number of Internet of Things terminals, totaling 220 million. We are committed to expanding these efforts. This year, all 16 cities in Shandong province will meet the gigabit city standard. In addition, we aim to build and put into operation another 70,000 5G base stations by the end of next year, bringing the total number to over 270,000. These efforts are aimed at further intensifying the digital infrastructure network and boosting the development of the digital economy. Thank you.

Xinhua News Agency:

Shandong boasts a diverse range of agricultural products with distinctive characteristics, including Zhangqiu scallions, Laiyang pears, and Weixian radishes, which have become well-known Shandong brands. What are the next steps for Shandong to leverage its advantage as a major agricultural province and drive progress in rural revitalization?

Sun Aijun:

Thank you for your question. As you mentioned, Shandong is a major agricultural province. With 6% of China's arable land and 1% of its freshwater resources, Shandong contributes 8% of the nation's grain, 10% of its meat, eggs and milk, 11% of its vegetables, 12% of its fruits, and 13% of its aquatic products. In 2018, General Secretary Xi Jinping assigned Shandong the crucial task of developing a model for rural revitalization. Over the past six years, with the general secretary's directive in mind, the whole province has made significant progress in accelerating rural revitalization and establishing itself as a major agricultural province.

In terms of industrial development, its total output value of the farming, forestry, livestock, and fishing industries reached 1.25 trillion yuan last year, ranking first in the nation. Shandong is the only province with over 10,000 agricultural product processing enterprises above designated size. Moreover, the province has surpassed 110 billion jin in total grain output for three consecutive years. Shandong has successfully cultivated five out of the top 10 wheat varieties promoted nationwide, playing a significant role in ensuring China's overall food supply.

In terms of increasing farmers' income, rural residents' income reached 23,776 yuan, 1.6 times that of 2017.

In pursuing rural development initiatives, we have achieved the harmless treatment of almost all domestic waste in rural areas. Moreover, optical fiber broadband now covers all villages in the province. These efforts have led to significant improvements in the rural environment and have made the daily lives of farmers much more convenient.

From this new starting point, we will deliver a solid performance in rural revitalization and further improve the quality and effectiveness of the Shandong model.

Our top priority is to safeguard food security. We have built more than 76 million mu of high-standard farmland. This year and next, we will build another 1.47 million mu and upgrade 6.13 million mu. Our goal is to create more high-stable-yield farmland capable of irrigation during droughts and drainage during floods. Efforts will be made to ensure that grain output remains stable at over 110 billion jin, fulfilling our commitment to ensuring food security.

The key is to accelerate the development of the entire agricultural industrial chain. We will focus on cultivating 100-billion-yuan industry clusters such as Shouguang vegetables, Yantai apples, and Yanhuang beef cattle, with the aim of bringing more high-quality agricultural products to people's kitchen tables across the nation. In addition, we will intensify efforts to promote the integrated development of the primary, secondary and tertiary industries. For example, Zhongyu Group in Binzhou city is a company that focuses on the deep processing of wheat. The company can produce over 600 kinds of products from 1 ton of wheat, generating a value 2.5 times higher than typical processing enterprises. Sanjianxi village in Zhangqiu district of Jinan city has increased its collective revenue by nearly 10 million yuan over the past five years by developing characteristic industries, such as ancient village clusters rich in folk culture. Numerous examples exist in sectors like deep processing of agricultural products, pre-made dishes, and rural tourism, all of which boast huge market potential. Therefore, we will make every effort to expand and strengthen these sectors.

The key to rural revitalization lies in improving the quality of life of farmers. Following an approach of contiguous development, we will strategically establish a batch of exemplary demonstration areas for rural revitalization in Shandong every year. Each demonstration area will receive a maximum subsidy of 50 million yuan, which will primarily be used for environmental governance and infrastructure construction, and aimed at enhancing the livability and suitability for both residence and employment in rural areas. Shandong has over 2.7 million practical professionals in rural areas, and we will leverage the driving force of this group to develop more industries that can bring prosperity to the countryside. By further expanding channels for increasing farmers' incomes, we aim to ensure that the over 40 million rural residents can share benefits created in pursuing rural revitalization.

That's all from me. Thank you.

China Arab TV:

In 2023, Shandong's domestic invention patents increased by 26.5% compared to the previous year, indicating an accelerating pace of innovation and development in the province. How will Shandong promote industrial innovation and develop new quality productive forces through sci-tech innovation? Thank you.

Song Junji:

Thank you for your attention. Shandong is a major province for sci-tech and innovation. With a large talent pool, solid industrial foundation and strong innovation capabilities, Shandong possesses favorable conditions and a good foundation for developing new quality productive forces.

In terms of investment, provincial-level funding for sci-tech innovation has exceeded 14.5 billion yuan for two consecutive years, leading to a 12.1% increase in R&D investment across the entire province.

In terms of achievements, significant breakthroughs have been made in domestic alternatives such as machines tools, carbon fiber and synthetic rubber. Additionally, the world's first fourth-generation high-temperature gas-cooled nuclear power plant has been put into commercial operation.

In terms of talent, there are over 7,400 national-level leading talents with expertise of strategic importance in the province, and the average annual influx of university graduates has reached 818,000 since 2020, representing a 43% increase compared to 2019.

In terms of industries, last year, economic investment in the "four news," represented by new technologies, new models, new formats and new industries, accounted for over 57% of total investment. The proportion of high-tech industries in the overall industrial output value reached 51.35%, an increase of 3.1 percentage points. The number of small and medium sci-tech enterprises has surpassed 45,000.

Sci-tech innovation is a core element in developing new quality productive forces. Going forward, we will firmly grasp innovation as a key factor and promote the deep integration of sci-tech innovation and industrial innovation. In this regard, there are four key aspects:

First, we will lead through integrated policy planning and guidance.

We are currently researching and formulating documents such as a three-year action plan for cultivating new quality productive forces, which will be issued and implemented in the near future.

Simultaneously, we will focus on the transformation of traditional industries, the cultivation of emerging industries and the layout of future industries. We will promote the integrated development of talent chains, education chains, industry chains and innovation chains, with the aim of concentrating innovation resources in new quality productive forces.

Second, we will leverage the role of enterprises as the main drivers of innovation.

This year, we plan to implement 100 major provincial-level sci-tech projects, of which no less than 90% will be led and undertaken by enterprises.

Additionally, we aim to restructure over 200 provincial key laboratories, with the proportion of work taken on by enterprises reaching approximately 75%. This will truly empower enterprises to take center stage and play a leading role in sci-tech innovation.

Third, we will promote achievements into the market.

We will carry out regular selection and release of "Shandong Excellent Achievements" for the market. Approximately five major innovative achievements will be selected and released each month. We will organize a matchmaking roadshow event every quarter, and select around 10 landmark achievements each year. These efforts aim to facilitate the transition of more promising achievements from the laboratory to the production line.

Fourth, we will create a first-class innovation and industrial ecosystem.

We will deepen the national reform pilot projects in sci-tech rewards, talent classification evaluation and achievement evaluation. This will accelerate the establishment of a talent evaluation system that is guided by innovation value, capabilities and contributions.

We will enhance scientific and technological cooperation and exchanges, promoting the construction of the Shandong branch of the Hong Kong Science Park. This year, we aim to secure 500 technology cooperation projects.

We will further implement the Taishan talent project and leading talent attraction plan. Additionally, we will host the third talent development conference, so that more outstanding individuals can thrive in Shandong. Thank you.

The Poster News APP:

Shandong has nearly one-sixth of the country's coastline. Could you please elaborate on the measures taken to make Shandong a competitive maritime province? Additionally, what are the next steps in this regard? Thank you.

Fan Bo:

Thank you for your concern and attention to Shandong province's marine work.

Focusing on implementing the arrangements to "pay more attention to managing the seas and oceans" and "build world-class ports," we have continuously innovated our ideas and measures, deepened reforms in key fields, adhered to land-sea coordination, and strived vigorously for our maritime strength. Solid steps have been taken in building a competitive maritime province, mainly reflected in the following "four accelerations":

We have accelerated the development of the marine economy. The province's gross ocean product exceeded 1.7 trillion yuan in 2023, maintaining the second position nationwide.

We have accelerated breakthroughs in the marine science and technology. Laoshan Laboratory, the only national laboratory in the marine field, has been put into operation. Shandong province has gathered 46 national marine scientific research platforms and has had 16 projects winning the National Science and Technology Awards in recent years, ranking first in the country.

We have accelerated the construction of ports. Shandong province has 29 large berths of 200,000 tons and above, enabling the accommodation of the world's largest ships. In 2023, the cargo throughput reached 1.97 billion tons, maintaining the first position in the country.

We have accelerated the improvement of ocean ecology. Last year, the proportion of excellent quality water in the nearshore areas was 95.6%, ranking third in the country.

Next, we will continue to promote three major actions, namely, the construction of ports, industries, and ecology.

The first action is to focus on building a world-class port cluster.

Leveraging our ports as the province's greatest advantage in opening-up, we will work with provinces along the Yellow River basin to build a corridor connecting land and sea. We will advance the formation of an opening-up pattern that integrates land-sea coordination, intermodal transportation at home and abroad, and mutual assistance between the eastern and western regions. We will strive to achieve a cargo throughput of over 2 billion tons and a container throughput of over 40 million TEUs, allowing more cargo to reach the sea and the world through Shandong's ports.

The second action is to gather efforts to cultivate new quality productive forces in the marine field.

We will focus on new technology breakthroughs. We will make an all-out effort to provide service and support, ensuring the standardized operation of Laoshan Laboratory. Aiming to address bottlenecks, we will advance the implementation of 44 major marine sci-tech innovation projects and two demonstration projects.

We will concentrate on advancing new manufacturing. We will nurture and expand industrial clusters, including high-end marine vessels and engineering equipment, marine biomedicine, and marine new energy and materials. We will build three world-leading bases for the research, development and manufacturing of marine engineering equipment, the marine biomedicine industry, and offshore wind power with a capacity of tens of millions of kilowatts.

We will focus on cultivating new business formats. We will vigorously develop marine ranching complexes, marine big data, artificial intelligence, and other forms, and build and improve a modern marine industrial system. By 2025, the annual average growth rate of the province's gross ocean product will be 6%, accounting for more than 18% of the region's GDP.

The third action is to focus on painting a new picture of harmony between humanity and the ocean.

We will build the Yellow River Estuary National Park and Changdao (Marine) National Park with high standards and implement ecosystem protection and restoration projects for seas, islands, bays, shorelines, beaches, and coastal wetlands to make the province's sea clearer, water more lucid, and beaches cleaner. We will create high-quality cities such as Qingdao, the "Vibrant Ocean Capital," Yantai, the "Fairyland Coast of Prestige," Weihai, the leisurely land of "Thousand-mile Mountains and Seas," and Rizhao, the "Sunny Coast of Vibrancy." The 3,505-kilometer coastline will become more colorful, fully displaying the province's beauty of nature, ecology and humanity. Thank you.

Science and Technology Daily:

The province of Shandong has traditionally been a major energy producer and consumer in China and faces the critical task of reducing coal consumption and controlling energy consumption. How will Shandong achieve green and low-carbon transformation? What measures will be taken to expand the development and use of new energy? Thank you.

Sun Aijun:

Thank you for your questions. As you mentioned, Shandong has traditionally been a major energy producer and consumer in China and has long played an important role in ensuring national energy security. In recent years, based on the actual situation of our own industry and energy structure, we have seized the major opportunity of building a green, low-carbon, and high-quality development pilot zone and accelerated energy transformation in two areas.

On the one hand, we have continued ramping up efforts to conserve energy. Just as Mr. Zhou Naixiang mentioned, in the first three years of the 14th Five-Year Plan, Shandong's energy consumption per 10,000 yuan of GDP dropped by 15.8%, while the economy grew at an average annual rate of 6%. This means we have achieved economic growth at a medium-to-high-speed with less energy consumption, which is not easy. Next, we will focus on key industries such as chemicals, steel, and electrolytic aluminum, exerting greater effort to improve corporate energy efficiency and meet the dual energy consumption control targets in the 14th Five-Year Plan.

On the other hand, the energy structure has been continuously adjusted and optimized. We have sped up the construction of a new energy system. As of the end of March this year, new energy and renewable energy sources account for 45% of the province's total installed power capacity, increasing by 15 percentage points from 2020. The proportion of coal-fired power generation has dropped to less than half of the total installed capacity, significantly reducing its dominance in our energy and electricity consumption.

Building on this basis, we will further accelerate the development of new energy and renewable energy. In this regard, Shandong is endowed with unique natural resources and favorable locational conditions. We have planned and constructed five major clean energy bases, including offshore wind farms, offshore photovoltaic projects, and the Jiaodong Peninsula Nuclear Power Base. Together with onshore wind farms and county-wide distributed photovoltaic projects, the total installed capacity will reach 240 million kilowatts, and the total project investment will exceed 2 trillion yuan, which can drive industrial investment of more than 860 billion yuan.

In terms of nuclear power, the CAP1400 unit will be completed and go into commercial operation this year. In June, the first phase of an expansion of Shidaowan Nuclear Power Plant will start. In addition, several projects, such as the first phase of the Zhaoyuan Nuclear Power Plant, are accelerating preliminary work. By the end of 2025, the scale of nuclear power in operation and under construction in the province is expected to reach 19.7 million kilowatts. Shandong will become a leading province in nuclear power generation.

In terms of wind power, there are currently 4.81 million kilowatts of installed capacity offshore in operation, ranking third in the country. This year, we will focus on advancing provincial-administrated offshore projects to open and integrate as much as possible. Onshore, we launched the first group of centralized wind power projects last year, totaling over 8.7 million kilowatts. These projects have started one after another. The development of the second batch of projects will be launched soon.

In terms of photovoltaics, Shandong's installed capacity ranks first nationwide. This year, we will accelerate the development of Lubei Base project and fully connect the 10-million-kilowatt projects included in the country's third batch of large-scale wind and solar bases to the grid. At the same time, on the consumption side, we are accelerating the development of new types of energy storage. This year, the total energy storage capacity will exceed 5 million kilowatts and continue to top the whole country. Through these measures, green power supply capacity will be greatly improved. By the end of 2025, the proportion of non-fossil energy consumption in the province will increase by more than 2.5%, making greater breakthroughs in energy transformation and low-carbon development. Thank you.

Chen Wenjun:

Due to time constraints, this will be the last question.

China Daily:

I've noticed that in recent years, Shandong has introduced a series of policies and measures, such as streamlining procedures for starting businesses, among others. How will you further create a more favorable environment for enterprises, allowing them to invest and develop in Shandong with confidence and assurance? Thank you.

Zhou Naixiang:

Thank you for the question. I'll take this one. A good business environment, especially top-notch government services, is the "golden signboard" for economic and social development.

The CPC Shandong Provincial Committee and the provincial government place high importance on the business environment, vigorously implementing actions to innovate and enhance the business environment. Shandong is continuously advancing the "Double Full Lifecycle and Double Hundred Services" project to streamline government services. Focusing on the "full life cycles" of both enterprises and individuals, over 100 high-frequency service items have been identified and published. Efforts have been made to achieve simplified, integrated, and comprehensive processing, with significant reductions in the number of procedural steps, application materials, and processing time compared to before the reforms. Shandong has taken the lead in carrying out the "No-Certificate Province" initiative nationwide. To date, 1,098 items have been canceled or shifted to a notification and commitment system for certificates and business licenses, and electronic documentation has been used over 700 million times.

Since last year, we have established a regular mechanism for communication between government and businesses. Leading officials at all levels take the initiative to engage with entrepreneurs through various means, such as visits to enterprises, setting up entrepreneur reception rooms, and face-to-face meetings at chambers of commerce or business associations. At the same time, we have opened a direct hotline to the governor for entrepreneurs, the public number "96178," and established the "2115" rapid-response mechanism for enterprise appeals. Upon receiving an appeal, we ensure on-site arrival or contact within two hours, propose handling suggestions within one working day, and resolve issues or confirm services within 15 working days.

These measures have achieved great results. According to the survey "Business Environment Evaluation by Ten Thousand Private Enterprises," conducted by the All-China Federation of Industry and Commerce (ACFIC), Shandong has been consistently ranked as one of the provinces with the best business environment in the country for four consecutive years.

Going forward, we will actively serve and integrate into the unified national market, promoting an interplay between a well-functioning government and an efficient market. We will strengthen the construction of a rule of law government, effectively address the appeals and issues of enterprises, and enable various types of businesses to invest, innovate and thrive in Shandong.

Dear journalists, Shandong is currently experiencing a convergence of strategic opportunities, solid development foundations, and prominent comparative advantages. Across the province, there is a high spirit of ambition, practical action, and entrepreneurial enthusiasm that continues to soar.

We will place greater emphasis on innovation-driven development, vigorously cultivating and developing new quality productive forces. We will prioritize ecological preservation, firmly following the path of green, low-carbon, and high-quality development. We will focus more on improving the business environment, enabling various businesses to thrive in Shandong. Furthermore, we will pay more attention to benefiting the people, striving to make the lives of those in Shandong more prosperous and fulfilling.

We sincerely invite everyone to visit Shandong to explore and experience "Friendly Shandong, Remarkable Shandong." We welcome your valuable opinions and suggestions on our work. Let us join hands to create a better tomorrow for Shandong together. Thank you all!

Chen Wenjun:

Thank you, Governor Zhou and all the speakers, and thank you to all the journalists present here. This concludes our press conference. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Wei, Gong Yingchun, Ma Yujia, Zhou Jing, Yuan Fang, Li Xiao, Zhang Junmian, Mi Xingang, Wang Qian, Liu Jianing, Huang Shan, Cui Can, Liu Caiyi, Wang Yanfang, Wang Ziteng, Zhang Rui, Yan Bin, Li Huiru, Liu Qiang, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Zhao Long, deputy secretary of the Communist Party of China (CPC) Fujian Provincial Committee and governor of Fujian province

Ms. Guo Ningning, a member of the Standing Committee of the CPC Fujian Provincial Committee and executive vice governor of Fujian province 

Mr. Meng Qian, director of the Fujian Provincial Development and Reform Commission 

Mr. Weng Yuyao, director of the Fujian Provincial Department of Industry and Information Technology

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 8, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference in the series "Promoting High-Quality Development" held by the State Council Information Office (SCIO). Today, we are pleased to have invited Mr. Zhao Long, deputy secretary of the Communist Party of China (CPC) Fujian Provincial Committee and governor of Fujian province, to brief you on pursuing high-quality development as an overarching task and advancing Fujian's practice for Chinese modernization, and to answer your questions. Also present today are Ms. Guo Ningning, a member of the Standing Committee of the CPC Fujian Provincial Committee and executive vice governor of Fujian province; Mr. Meng Qian, director of the Fujian Provincial Development and Reform Commission; and Mr. Weng Yuyao, director of the Fujian Provincial Department of Industry and Information Technology.

Now, I'll give the floor to Mr. Zhao for his introduction. 

Zhao Long:

Thank you, Mr. Chen. Good morning, everyone. I'm very pleased to meet with you here to introduce the high-quality economic and social development of Fujian. First, on behalf of the CPC Fujian Provincial Committee and the Fujian provincial government, I would like to express my sincere gratitude to friends from all walks of life for your long-term interest in and support for Fujian.

It is well-known that Fujian is an important birthplace and practice ground for Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. General Secretary Xi Jinping worked in Fujian for 17 and a half years. During that period, he personally led and promoted the reform, opening-up and modernization of Fujian, creating valuable intellectual and cultural wealth, and practical achievements for us. Since assuming duties in the CPC Central Committee, the general secretary has always placed great importance on and cared for the high-quality development of Fujian, drawing a magnificent blueprint for a new Fujian featuring dynamic mechanisms, upgraded industries, improvement of people's livelihoods, and a beautiful environment. He explicitly put forward the "four requirements ," encouraging us to make greater progress in accelerating the modernization of the economic system, to better serve and integrate into the new development pattern, to make greater strides in exploring new ways to promote integrated development with Taiwan, and to achieve greater breakthroughs in creating a high-quality life. This has charted the course and provided fundamental guidance for Fujian's high-quality development.

This year marks the 10th anniversary of General Secretary Xi Jinping's proposal to build a new Fujian that is "dynamic, upgraded, prosperous and beautiful." Over the past decade, we have always kept his expectations in mind and pressed forward with gratitude, promoting high-quality development in all aspects. The province's gross domestic product (GDP) has successively surpassed three 1-trillion-yuan thresholds, increasing from 2.5 trillion yuan to 5.4 trillion yuan ($746.18 billion), ranking eighth in the country. Its per capita GDP has risen from 64,000 yuan to 130,000 yuan, ranking fourth in the country. Building a new Fujian in the new era has reached a new level, and a splendid scroll of Chinese modernization is gradually unfolding across Fujian province.

We have accelerated the building of a prosperous and strong Fujian, laying a more stable foundation for high-quality development. Today's Fujian is rapidly building a modern industrial system, covering 38 out of the 41 major industrial categories, with the proportion of value added manufacturing in GDP ranking fourth nationwide. It shows the following features: First, we are moving toward high-end development. Our pillar industries such as electronic information, advanced equipment manufacturing, and modern textile and garment have achieved a scale exceeding 1 trillion yuan. Leading enterprises like Contemporary Amperex Technology Co. Limited, Fuyao Glass Industry Group and Anta Sports are known worldwide. Second, we are advancing toward intelligent development. Smart transformation and digital conversion have equipped traditional industries with "digital wings," with the proportion of enterprises in the province with key business segments fully digitalized ranking third nationwide. Third, we are transitioning toward green development. New energy industries such as power batteries, new types of energy storage and offshore wind power have seen strong growth, with clean energy making up 63% of the province's installed capacity.

We have accelerated the building of an innovative Fujian, enhancing the driving force behind high-quality development. Today's Fujian is not only experiencing an "acceleration" in scientific and technological innovation, but an increasing number of innovative laboratory findings have been put into industrial production. Over the past decade, Fujian's total R&D investment has exceeded 630 billion yuan, seven provincial innovation laboratories have achieved breakthroughs in 150 core technologies, the cumulative transaction amount of technology contracts has exceeded 163.3 billion yuan, the number of national high-tech enterprises has surpassed 12,000, and the industrialization efficiency index for advanced and innovative technologies ranks third nationwide.

We have accelerated the building of a dynamic Fujian, expanding the scope for high-quality development. Today's Fujian sees its path of reform becoming broader, with significant progress in 10 key areas. Reforms in areas such as forestry, medical care and the system of specially dispatched technicians have been promoted nationwide. Fujian is further widening its door to the world, with the Maritime Silk Road core area and the BRICS innovation base playing an ever-greater effect as "window displays ." The free trade pilot zone has introduced 275 nationally pioneering measures, with the total volume of imports and exports growing at an average annual rate of 6.5%. The business environment is continuously improving, with our integrated government service capability ranking in the top tier nationwide. The number of business entities has increased from 1.4 million to 7.61 million, marking a 4.4-fold increase.

We have accelerated the building of a happy Fujian, where high-quality development is even more substantial. Today in Fujian, the lives of ordinary people have become richer and more fulfilling. In the past decade, 5.89 million new urban jobs have been created, and the per capita disposable income of residents has grown from 23,000 yuan to 45,000 yuan, ranking seventh nationwide. The preschool enrollment rate is 99.2%, the consolidation rate of compulsory education is 99.5%, and the gross enrollment rate for senior high school is 97.2%, all of which are among the highest in the country. The average life expectancy in the province has increased to 78.85 years.

We have expedited the construction of a beautiful Fujian, adding a touch of green for the region's high-quality development. In today's Fujian, the air is noticeably fresher, boasting an impressive 98.5% of days with excellent air quality in cities with subordinate districts. The concentration of PM2.5 stands at just 20 micrograms per cubic meter, which is 10 micrograms below the national average. Waters become clearer, with 99% of major rivers and 88.7% of nearshore seas achieving excellent water quality. The environment is cleaner, with the intensity of major pollutant emissions at 60% of the national average. The forest coverage rate is 65.12%, ranking first in the country for 45 consecutive years.

We have accelerated the construction of a safe Fujian, strengthening the foundation for the region's high-quality development. In today's Fujian, the exemplary practices of "reaching out to the grassroots" and "prompt action and practical work" have become well-established. The evaluation of public safety construction ranks among the top nationwide, maintaining a continuous public safety satisfaction rate of over 99%.

As we embark on the new journey, our focus remains steadfast on advancing the greatest political goal of promoting the Chinese path to modernization, firmly grasping the primary task of high-quality development, and adhering closely to the important "four requirements ," which encourage us to make greater progress in accelerating the modernization of the economic system, to better serve and integrate into the new development pattern, to make greater strides in exploring new ways to promote integrated development with Taiwan, and to achieve greater breakthroughs in creating a high-quality life. We will strive to transform the magnificent blueprint for the new Fujian outlined by General Secretary Xi Jinping into reality. In doing so, we will make new and greater contributions to the construction of a strong nation and the rejuvenation of the Chinese nation.

That's all from me. Thank you.

Chen Wenjun:

Thank you, Mr. Zhao. Now the floor is open for questions. Please state the name of the media outlet you work for before asking your questions. 

CCTV:

This year marks another significant milestone in comprehensively deepening reforms. Fujian has been at the forefront in reform and opening-up. As such, what new measures are you taking in deepening reforms and expanding opening-up this year? Thank you.

Zhao Long:

Thank you for your question. I will answer this. 

It is well-known that before reform and opening-up, Fujian province ranked eighth from bottom nationwide in terms of total economic output, suffering from weak foundations and insufficient development. However, after the initiation of the reform and opening-up policy, the central government granted us pioneering policies. The Fujian people, known for their indomitable spirit, diligence and courage, seized the momentum of reform and opening-up to transform the province from a relatively backward region into a thriving economic hub, where citizens enjoy prosperous lives and robust international engagements. Fujian has thus become a blessed land. As I mentioned earlier, the province's total economic output has surged to eighth place nationwide, and our per capita GDP ranks fourth in the country. We have also explored a path of high-quality development. Throughout this journey, innovative practices stemming from reform and opening-up have served as the most potent driving force. I would also like to share with you the story of the "Jinjiang Experience" here.

In the early 1980s, Jinjiang locals were known for their motto "Love to compete and will win, losing gracefully, and smiling in defeat." They kick-started their entrepreneurial endeavors with the help of the "three supplies and one compensation" trade modes, namely, processing with supplied materials, processing according to supplied samples, assembling with supplied parts, and compensation trade, with numerous enterprises emerging like mushrooms after rain. This spurred rapid development in the private sector economy. During his tenure in Fujian, General Secretary Xi Jinping visited Jinjiang seven times in six years, personally summarizing and refining the "Jinjiang Experience." This amalgamation of people's pioneering spirit with a systematic understanding of reform and specific deployment requirements became the "golden key" that guided Jinjiang and even the entire Fujian toward high-quality development. In today's Jinjiang, there is one entrepreneur for every seven individuals, and one enterprise for every 21 people. Although Jinjiang constitutes only 1/200 of the land area of Fujian, it contributes 1/16 of the province's total economic output, building itself into a renowned hub of brands at home and abroad. Many well-known brands, such as Anta, 361 Degrees and Xtep in sports, as well as Hengan Group , Panpan Foods and clothing firm Septwolves , all originate from Jinjiang. Without the reform and opening-up policies, Jinjiang's present-day achievements would have been unimaginable.

In Fujian, there are many similar stories, such as the calls for loosening restrictions and delegating power, the forestry reforms in Wuping, the healthcare reforms in Sanming, and the deployment of science and technology experts. It can be said that Fujian's current development and achievements are due to reform and opening-up, and its future prospects and hopes also rely on this policy. Moving forward, we will continue to adhere to the principles of uninterrupted reform and continued opening-up, consistently deepening the process of reform and opening-up. Specifically, we will focus on the following two aspects:

In terms of reform, we will focus on four main areas. First, we will address key issues in ideological understanding, promoting the spirit of pioneering and striving for success, and continuing to use the spirit, mindset and measures of reform to solve problems and drive development. Second, we will focus on key areas of reform, including market-oriented allocation of production factors, state-owned assets and enterprises, fiscal, taxation and financial systems, and the transformation of green resources. Third, we will grasp key links, particularly in balancing between the objectives and means of reform, between eradicating the old and establishing the new, between higher authorities and local development, and between the definition of what's right and what's wrong, continuously removing institutional barriers that hinder high-quality development, ensuring the government effectively balances the interests of multiple parties, and allowing the market to play its role with more vitality. Fourth, we will highlight Fujian's characteristics, continuously deepening reforms in areas such as healthcare, forestry and the deployment of science and technology experts, striving to offer more of Fujian's experiences to the rest of the country.

In terms of opening-up, we will focus on three areas. The first is going global and extending a warm welcome. We will better leverage domestic and international markets and resources and conduct the "Invest in Fujian" global investment attraction event. By intensifying efforts to attract foreign investment, we aim to expand further into markets in ASEAN, Europe, and emerging economies, making foreign capital and enterprises eager to come, stay and thrive. The second area involves proactively aligning with the country's major regional strategies. Our statistics show that Fujian's trade with the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area accounts for more than 55% of its inter-provincial trade. Given our proximity and connectivity to these two major economic regions, we will enhance coordination and collaboration with them. For example, we plan to improve efficient transportation networks, facilitate the sharing of innovative resources, optimize the mechanism for industrial alignment, and promote the integrated development of culture and tourism, striving to achieve seamless connectivity. The third area is leveraging the advantages of overseas Chinese. As 15.8 million overseas Chinese originate from Fujian, there is a saying: "Wherever there is sunlight and seawater, Fujian people are working hard." Since the launch of reform and opening-up in 1978, the vast number of Fujian people overseas have shown patriotism, love for their hometowns, dedication to success, integrity, and philanthropy, making indispensable contributions to the development and progress of Fujian. We will always remember and keep this in our hearts. Today, we will vigorously implement the Fujian Business Return Project, providing more convenience for overseas Fujian people to invest in Fujian and promoting the convergence of more resources and production factors in Fujian, thus achieving win-win development featuring mutual benefits.

That's all for my introduction. Thank you.

Cover News:

Fujian's private economy is well-developed. Just now, Mr. Zhao mentioned several private enterprises, such as CATL, Fuyao Glass Industry Group Co., Ltd ., and Anta. Could you share with us how Fujian has promoted the expansion and strengthening of private enterprises to advance the high-quality development of the private economy? Thank you.

Zhao Long:

Ms. Guo will answer this question. 

Guo Ningning:

Thank you for your interest in Fujian's private sector. Fujian, a major province for the private economy, sees its private enterprises contributing nearly 70% of GDP, over 70% of tax revenue, over 70% of scientific and technological advances, over 80% of jobs, and over 90% of business entities. As Mr. Zhao mentioned earlier, the growth and expansion of Fujian's private sector can be attributed to the "Jinjiang Experience." In recent years, being always mindful of the expectations on us, we have fully supported private enterprises in breaking new ground and dedicating themselves to success. Globally, one out of every three pieces of automotive glass and one out of every five pairs of trainers are manufactured in Fujian. Additionally, Fujian leads in the global market share of new energy vehicle power batteries.

Inheriting and carrying forward the "Jinjiang Experience," the CPC Fujian Provincial Committee and Fujian provincial government have always believed that private enterprises and entrepreneurs "belong to our own family", and have handled matters of these enterprises as "our own," have resolved their difficulties, and have made concrete efforts to benefit them. Last year, we pioneered the strategy of building Fujian's strength through the private economy in the new era and introduced the "1 plus N" policy measures. By doing so, we aim to devote the entire province's support to the dense forest of private enterprises and the economy so that they can thrive and continue to expand in Fujian's fertile soil. We have focused our efforts on three areas:

First, we have endeavored to cultivate top-tier market entities. We have supported private enterprises in adhering to their operations and core business without relenting, and specializing in areas such as the production of shoes, paper, tea, clothing, glass and batteries. We have also encouraged them to remain committed to innovation and technological advancements and to develop more century-old brands and boutique stores, ensuring that large enterprises grow stronger and small ones flourish.

Second, we have worked to provide first-class government services. We have adhered to the principle that government services should be available wherever private enterprises operate. Utilizing both online and offline channels, we have aggregated the entire province's government big data for sharing and have fully leveraged information technology platforms. Our goal has been to provide private enterprises with efficient and integrated services, making every effort to enable tasks to be accomplished efficiently and data to be collected just once. Over 83% of services can be accessed without a single visit. In Fujian, many cities and counties follow the four principles when serving private enterprises: arriving when needed, being available on demand, delivering on promises, and providing thoughtful services. Our aim is to build a convenient Fujian with the capacity, efficiency and favorable environment to handle matters, thus ensuring successful handling. 

Third, we have redoubled our efforts to create a top-class business environment. Adhering to the principles of market orientation, rule of law, and internationalization, we have supported fair competition among various market entities and ensured their efficient access to diverse production factors and resources. We have safeguarded the property rights of private enterprises and the rights and interests of private entrepreneurs in accordance with the law, thereby enhancing the internal momentum of these enterprises and unlocking the vitality of innovation, entrepreneurship and creation.

That's all for my introduction, thank you. 

National Business Daily:

Fujian's "Ningde Model" is a successful example of targeted poverty reduction and alleviation. However, there is still much work to be done to transition from poverty alleviation to rural revitalization. Could you share any new developments and measures regarding Fujian's endeavors toward all-around rural revitalization? Thank you.

Guo Ningning:

Thank you for your attention and concern for rural revitalization in Fujian. During the period When General Secretary Xi Jinping was working in Ningde, he led local people to fight against poverty and proposed a series of important concepts on poverty alleviation, such as "constant dropping wears away a stone ," "maintain a persistent and hard-working spirit ," "weak birds take flight early ," "implement the practices of going into communities to communicate the Party's lines and policies, carry out research and studies, address people's complaints, and conduct field work ," "increase confidence before relieving poverty," and "acquire knowledge and skills before relieving poverty." His book titled "Up and Out of Poverty " provides us with valuable ideological, spiritual wealth and practical achievements. In 2019, when replying to a letter from residents of Xiadang Township in Ningde, General Secretary Xi Jinping encouraged villagers to work continuously on a path of rural vitalization reflecting the characteristics of eastern Fujian province .

Always bearing in mind what General Secretary Xi Jinping has envisioned for the province, the CPC Fujian Provincial Committee and the provincial government made unremitting efforts to promote the comprehensive revitalization in five aspects: businesses, talent, culture, ecosystems, and organizations in the countryside, and work on a path of rural vitalization with distinctive local features. Last year, the per capita disposable income of rural residents in Fujian reached 27,000 yuan, ranking sixth in the country. This year, we plan to consistently implement the "Thousand Villages Demonstration and Ten Thousand Villages Prosperity" project. In the next five years, we will pool the capital of 2.6 billion yuan each year to build over 1,000 provincial-level demonstrative villages on rural revitalization and renovate more than 10,000 villages across the province. We will focus on the following three fields:

First, we will develop characteristic industries according to local conditions. We insist on our way to promote high-quality development on modern agriculture with local features, expand industrial chain, ascend value chain and endeavor to build an industrial system that focuses on agricultural modernization. . During the 14th Five-Year Plan period (2021-2025), we fully committed to constructing 30 key industrial parks for modern agriculture, 20 major industrial clusters with local advantages and characteristics, 100 towns featuring agriculture industries as well as 2,000 demonstrative villages with local specialties. At present, Fujian tea, Fujian fruits, Fujian fish, Fujian grain and Fujian mushrooms have already become famous. The reputation of "Funongyoupin", the regional public brand of green and good-quality agricultural products in Fujian, has improved continuously.

Second, we will fully advance the building of harmonious and beautiful villages. With a target of "ensuring modern standards of living in rural areas ," we will build and renovate what is needed and promote rural development in an orderly manner. At the beginning of this year, we issued a guidebook on local villages classifications and carried out a new round of classifying work in rural areas in Fujian. Next, we will formulate rural construction guideline and improve rural landscape through micro-renewal, building beautiful courtyards, beautiful micro landscape, beautiful small parks, beautiful countryside as well as beautiful leisure tourist spots, so as to make our villages comfortable for both living and travelling. 

Third, we will improve civilization standards in rural areas. We will strengthen Party organizations at village level, utilize the positive role of village regulations and folk conventions and improve the rural governance model that combines self-governance, rule of law and rule of virtue. We will fully maximize the role of resident first secretaries , technicians sent to local areas, rural revitalization instructors and rural financial assistants. More college graduates, skilled personnel, rural migrant workers and entrepreneurs will be encouraged to go back and work in villages and counties within Fujian. We will facilitate financial services in all villages and nurture a number of "new type of farmers" who have a good knowledge of agriculture, love our rural areas, and care about rural people. Nowadays, villages in Fujian are harmonious, beautiful and prosperous.

Southern Metropolis Daily:

New quality productive forces has emerged as a buzzword this year, which arouse wide attention from all industries. Local governments have taken actions to drive their future growth. As a major economically developed and coastal province in southeastern China, what will Fujian do to develop new quality productive forces? Thank you.

Zhao Long:

Thanks for your question and I will answer it. We all know that productivity is the fundamental driving force for the progress of human civilization and social development. In today's world, as a new round of sci-tech revolution and industrial transformation keeps advancing, the proposal of new quality productive forces provides a scientific guidance for upgrading traditional economic growth modes and promoting high-quality development.

It is especially urgent for Fujian to foster new quality productive forces. Due to some historical reasons, as you all know, innovation is a shortcoming for our province. But we can rely on sound foundations in the real economy and relatively complete industrial chain to foster new quality productive forces. More importantly, the people of Fujian are brave to work hard and have strong creativity, building a good atmosphere for innovation. We will grasp the scientific connotation and core meaning of new quality productive forces, unswervingly promoting high-quality development by fostering new quality productive forces. We will focus on the following five aspects.

First is sci-tech innovation. The distinguishing point of new quality productive forces is innovation. We will accelerate building Fujian into an innovation-driven province. This year, investment in research and development (R&D) are expected to grow at an average annual rate of more than 18%, and the number of national high-tech enterprises will exceed 13,000.

Second is modernization of industrial system. The key of new quality productive forces is good quality. We will holistically advance digital and intelligent transformation of traditional industries, foster strategic emerging industries, like information technology, new energy, new materials and biomedicine, and boost future-oriented industries including artificial intelligence and quantum technology in order to make traditional industries higher-end, smarter and more eco-friendly. Within the year, we will also implement national policies on large-scale equipment renewal, continue to launch over 1,000 projects on technological transformation and nurture more than 1,000 specialized and sophisticated enterprises that could produce novel and unique products.

Third is green and low-carbon development. New quality productive forces are inherently green ones. We will leverage Fujian's advantages in clean energy and green industries, and make great efforts to develop industries like power batteries, offshore wind power and new types of energy storage. We will strengthen the green service industry and establish a supply chain that is energy-saving, circular, green and low-carbon. As was previously mentioned, Fujian's installed capacity of clean energy accounts for 63% of its total, which is a significant advantage for us to achieve high-quality development. We will strive to achieve 100% utilization of clean and green electricity by manufacturing enterprises across the entire province as soon as possible.

Fourth is the provision of production factors. This primarily involves deepening the reform of market allocation of production factors and accelerating the flow efficiency of factors such as land, capital, technology and data. In this respect, our goal is to ensure that enterprises can quickly obtain the production factors they need and be able to transfer these products out quickly as they wish. For example, we are actively revitalizing land with inefficient functions and promoting the standardized construction of industrial parks. Last year, through the reform, the province added over 5 million square meters of standardized factory buildings. This year, we will step up efforts to a larger scale, and over 20 million square meters of new standardized factory buildings are expected to be constructed.

Fifth is to create a top-tier business environment. We will continuously improve administrative services and step up efforts in strengthening legal guarantees, enhancing the credit system, protecting intellectual property rights, and building a new type of cordial and clean relationship between government and business , in a bid to create a market-oriented, law-based and internationalized business environment. For example, in terms of administrative services, we will fully utilize the integrated law enforcement platform and promote reforms to improve the efficiency of data collection and matter handling to support the development of new quality productive forces, just like Ms. Guo Ningning introduced earlier.

That's all from me. Thank you!

Phoenix TV:

I am interested in the construction of a Digital Fujian . Could you please share with us the progress made in digital economy development, digital administrative services and digital society construction? And what's your plan to leverage advantages and seize opportunities to better serve high-quality development through digital empowerment? Thank you.

Meng Qian:

Thank you for your questions. The Fujian provincial government made the arrangement to build a Digital Fujian back in 2000. Since then, we have adhered to the principle of unified management and have compiled and implemented five-year Digital Fujian plans for five consecutive times, making Fujian province the earliest and only province that has consistently made such efforts. We have enhanced the construction of digital infrastructure and aggregated holistic administrative data from all levels across the province, enabling us to "have access to the province's data with one single click." We have strived to maintain digital economic development as the highland for the future, with the added value of the province's digital economy reaching 2.9 trillion yuan, accounting for 53.3% of GDP. We uphold the concept of "bringing digital technology closer to society, the people and daily life," and the reality of exploring the province with just a mobile phone is coming true. For example, the integrated law enforcement platform mentioned by Mr. Zhao Long earlier — the Min Law Enforcement Platform — covers over 4,000 law enforcement entities across the provincial, municipal, county and township levels. It coordinates and summarizes different functions and multiple matters, enabling "one visit for multiple inspections" and "one-time processing with mutual recognition across the province." This approach has improved the quality of inspection and law enforcement, reduced interference with enterprises, and facilitated online supervision and appeal of our law enforcement actions by enterprises. It can be said that digitalization has greatly enhanced the efficiency and effectiveness of our digital governance.

Next, our work will focus on five aspects. First, we will further implement the three-year rolling action plan for new infrastructure construction, strengthen the construction of digital infrastructure, solidify the hardware support for the Digital Fujian, and make digital computing, storage and transmission efficient. Second, we will strengthen system integration, better integrate and clarify the data across the province, and establish an integrated public data system for the whole province. At the same time, we will remove institutional barriers to enable data supply and make it accessible to enterprises and the public, thus expanding the breadth of data application. Third, we will continue to strengthen and expand digital industry clusters and make proactive plans for future industries. We will strive to create a new benchmark for digital transformation, promote new-type industrialization with digitization, and enhance the penetration of data in economic development. Fourth, we will promote the construction of a digital government, especially by optimizing the Min Law Enforcement Platform, the digital monitoring platform for business environment and other distinctive brands, and improve fine economic and social management, making our digital governance more precise. Finally, we will implement the digital service improvement project to enhance the functions of the provincial administrative service platform, especially by optimizing public services such as healthcare and elderly care, so that digital services better demonstrate a human touch.

Finally, I would like to take this opportunity to promote an upcoming event. Next month, our Fuzhou city will host the Digital China Summit for the seventh consecutive year. We welcome you to visit Fuzhou and join us in supporting the development of Digital Fujian and Digital China. Thank you!

Beijing Youth Daily:

The county economy in Fujian province is flourishing, and we are keen to explore this topic. We noticed that on the second day following the resumption of production after the Spring Festival holiday, Fujian organized an on-site promotion event for the development of key industrial chains in counties across the province. I would like to ask what progress has been made in Fujian regarding this work, and what specific measures are planned next? Thank you.

Zhao Long:

This question goes to Mr. Weng.

Weng Yuyao:

County governance ensures national stability. The county economy is a fundamental part of the national economy and a key pillar for realizing new industrialization, new urbanization and rural revitalization across the board. Over the years, we have focused on key industrial chains within counties and forged a path of county development with Fujian characteristics. Overall, there are several features:

First, the county economy has improved. Last year, there were 16 counties (cities, districts) in our province with a GDP exceeding 100 billion yuan, up by six compared to 2020. A total of 11 counties and districts were selected among the top 100 county economies nationwide, ranking seventh in the country. The GDP of all counties (cities, districts) in the province either exceeded or approached the significant milestone of 10 billion yuan. Despite constituting just one-fifth of the total counties and districts in the province, 17 major economic counties, such as Changle and Xiangan counties, contributed more than 40% of the province's GDP and over 60% of industrial revenue.

Second, industrial clusters with local features have expanded. Jinjiang has developed a complete industrial chain for footwear and apparel industry, establishing 12 listed companies and more than 20 well-known brands, making it a nationally renowned production base for men's wear and sports shoes. Ningde has been designated a national advanced manufacturing cluster for power battery production. Fu'an is recognized as the world's largest stainless steel production base.

Third, the competitiveness of regional brands has increased. Fuqing's automotive glass, Changle's textile fibers, Dehua's ceramic crafts, Guangze's Sunner chicken, Shaowu's fluorine chemicals, and Changting's rare earth processing technology have all become Fujian's hallmarks with substantial influence across the nation. These examples highlight the diversified industrial development across the counties.

Next, we will increase efforts to enhance key industrial chains within counties to elevate high-quality economic development in these areas.

First, we will tailor our policies to fit local conditions and offer category-specific guidance. We will improve the working mechanism by assigning dedicated teams to each industry, creating maps for key industrial chains, publishing white papers, and bolstering policy support. We plan to clearly define each county's leading industries, development priorities, and strategies, encouraging them to strengthen cooperation and complement each other with their unique strengths. We will also promote the integrated development of primary, secondary, and tertiary industries, urban and rural areas, and Fujian and Taiwan.

Second, we will rely on innovation to drive upgrading and transformation. We will implement policies like providing funding support through loan interest subsidies for technical transformation, promoting large-scale equipment upgrades and consumer goods trade-in, and accelerating enterprises' smart and digital transformation. Efforts will be made to select leading industrial teams and achieve breakthroughs in core technologies in key fields. Furthermore, we will deepen the standardized construction of industrial parks and intensify efforts to develop the circular economy. These efforts aim to push the high-end, smart and green development of industries.

Third, we will cultivate leading enterprises and drive development in stages. We will identify leading enterprises in the industrial chain, encourage and support enterprises to grow stronger and bigger, and enhance their leading role in driving the development of industrial chains. For example, Contemporary Amperex Technology Co., Ltd. (CATL) has attracted over 80 upstream and downstream enterprises to settle in Jiaocheng district. This ensures that more than 85% of raw materials for lithium-ion battery production are sourced and purchased locally. In addition, we will ramp up efforts to develop specialized and sophisticated enterprises that produce novel and unique products, high-tech enterprises, and single-product specialists . These initiatives are geared towards cultivating new quality productive forces and enhancing the momentum of industrial development. Thank you!

China News Service:

Fujian has promoted the community-based care project for the elderly by providing them meal services and holding lectures. I've heard that senior citizens can dine, learn and entertain themselves at these venues, and that the concept has become very popular. Could you please provide specific details? Additionally, what other measures has Fujian implemented to improve people's well-being? Thank you.

Zhao Long:

Thank you for your interest in Fujian. I will answer this question. In his 2024 New Year message, General Secretary Xi Jinping said, "Our goal is both inspiring and simple. Ultimately, it is about delivering a better life for the people. " On the eve of the Spring Festival in 2023, General Secretary Xi Jinping, talking via video link with elderly people at a social welfare home in Fuzhou, stated, "Whether a society is a happy one or not, it is very important to see whether the elderly are enjoying a happy life. "

China's aging population is on the rise. In Fujian, individuals aged 60 or above account for 19.3% of the province's total population, which means that Fujian has transitioned into a moderately aging society. In response, we have taken a series of measures, such as establishing "canteens and schools for elderly people." Launched in 2019, the program aims to integrate community resources and expand services to address challenges faced by the elderly, such as difficulties in buying groceries, cooking and having meals. Fujian is now home to over 3,000 community canteens for the elderly, providing service for more than 150,000 people daily. This initiative has been included in the annual program for the benefit of people by the provincial committee and provincial government. Some canteens have expanded their services beyond meals to include activities such as calligraphy practice, music appreciation, dance classes, social gatherings, conversation and card games. These recreational activities are enjoyed by the elderly, contributing to their happiness, health and well-being in their later years.

Next, we will continue to focus on ensuring and improving people's livelihoods, addressing not only the question of quantity but also reinforcing the quality. We aim to transform people's aspirations for a better life into reality.

First, we will prioritize employment for key groups. This year, we will strive to achieve an increase of over 500,000 jobs within urban areas. Currently, our province faces significant structural contradictions in employment, particularly in the shortage of skilled professionals. To address this issue, we will collaborate with universities and enterprises, enhance supportive policies and strengthen vocational skills training. This will help meet the demands for high-quality talent in enterprises and cultivate a larger pool of highly skilled professionals.

Second, we will ensure to provide education that is satisfactory to the people. We will promote the expansion and improvement of basic education. This year, as part of our practical initiatives, we have planned to renovate and expand 150 public kindergartens and create an additional 40,000 public primary and secondary school slots. This means that more high-quality schools close to people's homes. Furthermore, we will further enhance vocational education and strengthen higher education institutions.

Third, we will promote the decentralization of high-quality medical resources to the local level. In recent years, we have supplemented and trained over 7,000 local medical personnel in counties and villages. We will continue to enhance the capacity of primary healthcare services, establish eight national regional medical centers and 13 provincial-level regional medical centers, and strengthen the pairing between tertiary hospitals at both the provincial and municipal levels and 25 relatively weaker county-level hospitals. Additionally, we will deepen the implementation of policies such as requiring medical personnel to serve at the grassroots level before they can be promoted to professional titles, aiming to ensure that small hospitals have more competent doctors and better facilities. Our goal is to address common and prevalent diseases in cities and counties and to provide solutions for minor ailments in rural areas.

In conclusion, when it comes to people's livelihoods, there are no small matters and there are numerous aspects to consider. As long as it is a matter that concerns the common people, we will spare no effort in handling the concerns and strive to achieve their satisfaction. That's all I have to say for now. Thank you all.

Shenzhen TV Zhi News: 

Last year, the central government specifically issued opinions to support the construction of a demonstration zone for cross-strait integrated development in Fujian. Could you please provide an update on the current progress? What are the next steps to effectively utilize the policies and actively explore new paths for cross-strait integration and development? Thank you.

Guo Ningning：

Thank you for your question. After the central government issued its policies, we convened the 5th Plenary Session of the 11th Provincial Party Committee to conduct specialized discussions and arrangements. We reviewed and approved the implementation guidelines for carrying out and implementing the central policies, putting forward 15 key tasks in four areas. We have taken the central government's "blueprint" and transformed it into concrete "construction plans" tailored specifically for the province of Fujian.

We are focusing on promoting integration through connectivity, benefits and affinity, and accelerating the construction of demonstration zones for cross-strait integration and development.

In terms of promoting integration through connectivity, we have vigorously promoted the resumption of maritime and air routes between Fujian Province and Kinmen, Matsu and other areas. Maritime routes have been restored between Fuzhou Mawei District, Lianjiang to Matsu and Xiamen and Quanzhou to Kinmen. Air routes have also resumed between Fuzhou to Taipei as well as Fuzhou to Kaohsiung, with a significant increase in passenger traffic. Moreover, Fuzhou, Xiamen and Pingtan have introduced over 2,000 rent-free and public rental housing for Taiwan compatriots. Now, it is very convenient for Taiwan compatriots to travel to Fujian. they can live, work and start businesses in Fujian with a sense of security and comfort.

In terms of promoting integration through benefits, we have vigorously implemented equal treatment, allowing Taiwan compatriots and enterprises in Fujian to enjoy comprehensive development opportunities. For example, Taiwan brands such as "Cheng Shin Tire（CST） " and "Taizu" have joined the family of well-established mainland enterprises and have shown remarkable progress. Last year, more than 2,100 new Taiwan-funded enterprises were established in Fujian with a high growth rate. The actual utilization of investment from Taiwan exceeded 7 billion yuan, more than doubling from the previous year, leading the mainland in both aspects. The cumulative trade volume between Fujian and Taiwan has exceeded 1.5 trillion yuan.

In terms of promoting integration through affinity, we have successfully organized key events such as the Cross-Strait Forum and the Cross-Strait Youth Festival. In 2023, a total of 573,000 Taiwan compatriots visited Fujian. Fujian is also home to 26 national-level cross-strait exchange bases, ranking first in mainland China. The compatriots from both sides of the strait are getting closer and closer, fostering a stronger sense of kinship.

Next, we will focus on four aspects to accelerate the exploration of new paths for integrated development across the Taiwan Strait. First, we will promote social integration, and further expand the application scenarios of residence permits for Taiwan residents, allowing Taiwan compatriots in Fujian to enjoy equal treatment in such areas as medical care, housing, elderly care and education, so that they can rest assured that they can come, integrate and develop well. Second, we will take further steps to promote economic integration. We will specifically plan and create more key projects for the integrated development between Fujian and Taiwan for Taiwanese companies and entrepreneurs. We have already introduced a series of supporting and encouraging policies that provide comprehensive support, whole process guarantees and full cycle services, so as to provide more and better development opportunities for Taiwan compatriots and Taiwanese companies in Fujian. This will bring benefits to people on both sides of the Taiwan Strait and improve their lives. Third, we will make significant efforts to promote emotional integration. More than 80% of Taiwan compatriots have ancestry in Fujian. We will further enhance the connections between relatives on both sides of the Taiwan Strait and foster connections between villages with the same name. We will invite more Taiwan compatriots who have never visited the mainland for family visits, sightseeing and exchanges in Fujian. We will also invite them to personally experience the new development, changes and achievements on the mainland and in Fujian. They can feel the sense that the "two sides of the Taiwan Strait are one family, Fujian and Taiwan are close," and feel connected in blood and in heart. Fourth, we will make great efforts to promote regional integration. We are taking the lead in promoting integration with Taiwan in cities such as Fuzhou, Xiamen and Pingtan. On this basis, we will guide other regions in the province to find their positioning and coordinate efforts, and achieve comprehensive integration and development with Taiwan across the entire Fujian province.

That's all from me. Thank you.

Chen Wenjun:

The last two questions, please.

Zhonghongwang.com:

We have learned that Fujian province has introduced a series of measures in the first quarter, including a focus on making a stable and good start to the year. Could you briefly introduce the progress Fujian has made in expanding investment and stabilizing growth this year? Thank you.

Zhao Long:

I'd like to ask Mr. Meng to answer this question.

Meng Qian:

Thank you for your question. As you're all aware, in the first two months of this year, China's economy has kept a good momentum of  steady growth. The situation in Fujian is the same as the whole country. According to the data, our situation is even more optimistic. The first quarter has just ended, and the data is still being compiled and has not yet been released. However, we can feel the warmth of Fujian's economic spring from the roaring machinery, busy traffic and bustling crowds. Here is a set of objective figures to share with you. In the first quarter, the province's industrial electricity consumption increased by 13% year on year, highway traffic increased by 9%, offline consumption increased by 9.1%, hotel occupancy increased by 9.5% and tourist flow in scenic areas increased by 18.2%. These are all double-digit or close to double-digit growth rates, reflecting the basic situation of industries such as manufacturing, transportation, commerce and tourism. I believe that those of you who are familiar with the economic work will sense the confidence of Fujian's economy.

Of course, the data also reveals some problems, primarily in certain traditional industries that are still facing difficulties, and the transformation of the real estate industry has not been completed. These are "growing pains," indicating that our shift from old to new growth drivers is still a work in progress.

Next, we will continue to adhere to the general tone of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will give full play to Fujian's advantages in areas such as digital technology, marine, ecology, private economy, reform and opening-up, and overseas Chinese. We will strive to implement major strategies such as the innovation-driven development strategy , the strategy of building Fujian into a strong province for private economy in the new era, and the strategy of promoting regional coordinated development. Furthermore, we will accelerate the construction of a demonstration zone for cross-Strait integrated development and achieve high-quality development across the entire province. Specifically, we will address three aspects:

First, we will pursue development for the people and ensure smooth economic circulation . The purpose of economic development is to better meet people's aspirations for a better life . Investment and consumption serve as a means to drive economic growth, but their fundamental purpose is to meet people's livelihood needs. With investment, people can travel on faster high-speed trains and go to better hospitals for medical treatment. With consumption, people are able to afford the latest Huawei smartphone and enjoy better travel services. The key now is to ensure smooth economic circulation by implementing policies that synergize efforts in stabilizing employment, increasing income, expanding investment, promoting consumption and improving people's livelihoods. In that way, we will be able to overcome bottlenecks in economic operations, address pain points in business development, and resolve issues that people are concerned about.

Second, we will focus on innovation-driven development and develop new quality productive forces. We are working on developing the digital economy, marine economy, green economy and cultural tourism economy, continuously creating new growth drivers and development advantages. In this regard, private enterprises in Fujian have great potential. We have a private enterprise called Huafeng (Huafeng Textile Group). They built a high-level team from all over the world and developed new technology, producing a sportswear garment from a dozen or so mineral water bottles. The company has been favored by many international brands. Our goal is to help enterprises like these grow and thrive.

Third, we will deepen reforms and enhance the driving forces for development. Mr. Zhao offered a detailed introduction to our measures to comprehensively deepen reforms and expand openness. I'll now elaborate on two specific initiatives. One is further enhancing efforts to create a superior business environment this year. The key is to allow business entities to fully exert their roles and functions and let them fully engage in the entire process of formulating policies, resolving issues, and evaluating policies, thereby enhancing the sense of gain among enterprises. The other is to further promote the development of the core region of the 21st Century Maritime Silk Road. On the ninth day of the first lunar month, which falls on Feb. 18 this year, we initiated the construction of an ethylene project in Gulei, Zhangzhou, a collaboration between China and Saudi Arabia with a total investment of 44.8 billion yuan, making it the largest foreign-invested project in Fujian to date. This is just a glimpse of the achievements made in building the core region of the 21st Century Maritime Silk Road. I believe that through our collective efforts, Fujian's economy will continue to improve.

Thank you all! 

Hong Kong Bauhinia Magazine: 

Fujian is the first national ecological civilization pilot zone. It is a "green" province. Could you share with us Fujian's practices and measures taken to preserve its ecology and environment? Thank you.

Zhao Long:

Thanks for your appreciation of Fujian's eco-environment. I will answer this question. 

This last question concerns the eco-environment, which is an important issue and an advantage of Fujian. General Secretary Xi Jinping once pointed out that ecological resources are Fujian's most valuable assets, and ecological advantages are its best competitive edge, which make it crucial for the province to exert the greatest efforts to advance ecological civilization. Fujian takes great pride in its eco-environment and feels the weight of its responsibilities for ecological conservation. During his tenure in Fujian, the general secretary laid out a visionary strategic plan for building Fujian into an ecological province. Major media outlets recently reported that when working in Fujian, the general secretary advanced the ecological transformation of Yundang Lake in Xiamen, inland waterways in Fuzhou, and Mulanxi River in Putian, and promoted soil erosion control in Changting county, among many other important practices, and helped the province achieve remarkable ecological progress. Today, Fujian boasts clear blue skies and a poetic land of greenery. It's truly a natural gallery and a paradise on earth.

To advance human civilization, we must pursue ecological progress. We know deeply that a sound ecosystem is fundamental to a thriving civilization. We must respect nature, abide by its laws, and protect it. We understand that mountains, waters, forests, farmlands, lakes, grasslands, and deserts form a community of life whose ecosystems must be conserved systematically to promote ecological progress. We also appreciate that lush mountains and lucid waters are invaluable assets. A superb eco-environment is a public good that benefits all and offers the most equally accessible form of welfare. People are happy to live amid green mountains and clear waters, while these natural assets can be transformed into social and economic wealth.

While doing our work, we gained a deep understanding that the eco-environment is of great importance and is extremely fragile, so we have to protect it like we protect our eyes, preserve the mountains, waters, and vegetation across Fujian, and always take pride in our lush mountains and lucid waters. What we do mainly involves three things. First, we will promote green and low-carbon development. We will continue accelerating the green transformation of the industrial structure, energy structure, transportation modes, and urban-rural development. Green lifestyles involving consumption, housing and transportation will be strongly encouraged. We will promote the recycling of resources, striving to create a resource-saving and environmentally-friendly society. Second, we will make efforts to keep our skies blue, waters clear, and lands clean. Last year, the Central Environmental Protection Inspection Team carried out a thorough inspection of Fujian, discovering unsolved problems in pollution prevention and control. Prompted by inspection and rectification requirements, we will deepen environmental improvement and defuse hidden pollution risks. We are currently working on formulating a plan for this purpose. After rectification, Fujian's eco-environment will experience another significant improvement. We will be able to create a beautiful homeland with amazing sights of blue skies and white clouds, starry nights, clear waters and green shores, fish swimming merrily, azure seas and silver beaches, dolphins chasing waves, a picturesque countryside and more livable environment. Third, we will make more efforts to protect and restore the eco-environment and optimize territorial space development pattern. Fujian has proposed creating beautiful cities, villages, rivers, lakes and bays, as well as green, low-carbon industrial zones. We will continue to take a holistic and systematic approach to conserving and improving mountain, water, forest, farmland, grassland, and sandy land ecosystems in the Minjiang River Basin and Jiulong River Basin. These two rivers are the mother rivers of Fujian, and we must preserve them well to better benefit the people. Also, we will improve the nature reserve system centering around the Wuyishan National Park to improve the diversity, stability and sustainability of the ecosystem.

Fujian's mountains and waters have taken on a new look. An excellent eco-environment and profound culture make up the stunning beauty of Fujian and make it an attractive place for refreshing and enjoyable experiences. We earnestly welcome people from home and abroad to visit Fujian and explore the exquisite mountains and waters, the vast sea and clear, blue sky, as well as our ancient red-brick houses and sacred revolutionary sites. "Refreshing Fujian" will undoubtedly live up to your expectations of a distant and poetic land. This is my final answer. Thank you, everyone!

Chen Wenjun:

Thank you, Mr. Zhao. Thank you, all speakers and journalists. Today's press conference concludes now. Goodbye!

Translated and edited by Zhang Rui, Wang Wei, Qin Qi, Liu Sitong, Xu Xiaoxuan, Wang Yanfang, Lin Liyao, Ma Yujia, Wang Ziteng, Cui Can, Liu Caiyi, Wang Qian, Yan Xiaoqing, Li Huiru, Zhang Junmian, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers: 

Mr. Zhang Gong, deputy secretary of the Communist Party of China (CPC) Tianjin Municipal Committee and mayor of Tianjin 

Mr. Liu Guiping, a member of the Standing Committee of the CPC Tianjin Municipal Committee and executive vice mayor of Tianjin

Ms. Shen Lei, a member of the Standing Committee of the CPC Tianjin Municipal Committee and director of the Publicity Department of the CPC Tianjin Municipal Committee

Mr. Dai Yongkang, director of the Tianjin Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 3, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the sixth briefing in the series "Promoting High-Quality Development." We have invited Mr. Zhang Gong, deputy secretary of the Communist Party of China (CPC) Tianjin Municipal Committee and mayor of Tianjin, to brief you on striving for excellence in four key areas and contributing Tianjin's efforts to advance Chinese modernization, and to take your questions. Also present today are Mr. Liu Guiping, a member of the Standing Committee of the CPC Tianjin Municipal Committee and executive vice mayor of Tianjin; Ms. Shen Lei, a member of the Standing Committee of the CPC Tianjin Municipal Committee and director of the Publicity Department of the CPC Tianjin Municipal Committee; and Mr. Dai Yongkang, director of the Tianjin Development and Reform Commission.

Now, I'll give the floor to Mr. Zhang for his introduction. 

Zhang Gong:

Ladies and gentlemen, good morning. It's a great pleasure to have this opportunity to brief you on Tianjin's development. First of all, I'd like to express my heartfelt gratitude to you for your long-term support for and interest in Tianjin's work.

Ahead of last Spring Festival, General Secretary Xi Jinping visited Tianjin and guided relevant work, delivering an important speech where he put forward the crucial requirement of striving for excellence in four key areas (namely fostering new quality productive forces, further deepening reform and opening up across the board, promoting cultural inheritance, and making urban governance more modernized). This has pointed out the direction and injected strong momentum for Tianjin to pursue high-quality development on the new journey.

Over the past year, focusing on the central task of economic growth and the top priority of high-quality development, we have further implemented 10 initiatives, such as striving for solid progress in the coordinated development of the Beijing-Tianjin-Hebei region, supporting and guiding the high-quality development of the Binhai New Area, promoting port-industry-city integrated development, and invigorating the city through science, education and workforce. These efforts have yielded positive results in several aspects:

First, stability and effectiveness have been further improved. Last year, Tianjin's GDP increased by 4.3%, with general public budget revenue rising by 9.8% and tax revenue by 17.2%. In the first quarter of this year, the general public budget revenue grew by 7.3%. Second, momentum for progress has been further accumulated. Accelerated advancement was observed in several key projects such as the second final assembly line of the Airbus A320 series aircrafts , the 12-inch production line of the Semiconductor Manufacturing International Corporation (SMIC), the 1.2 million-ton ethylene program of INEOS and Sinopec , and Novo Nordisk's capacity expansion. Last year, the number of market entities in Tianjin increased by 7.9%, and Tianjin Port's container throughput reached 22.18 million twenty-foot equivalent units (TEUs). In the first quarter of this year, container throughput increased by 7.2%. R&D spending across Tianjin has reached 3.49% of GDP, and the Tiankai Higher Education Innovation Park is thriving, fostering an increasingly vibrant atmosphere for innovation and entrepreneurship. Third, positive expectations have become more evident. A number of centrally administered state-owned enterprises (SOEs), financial institutions, leading private businesses, and multinational corporations have actively engaged in cooperation discussions in Tianjin. An array of important exhibitions and competitions have been held in the city, such as the 14th Summer Davos Forum, the World Intelligence Congress, the 2023 Tianjin International Shipping Industry Expo , the China Tourism Industry Exposition , and the 2023 China International College Students' Innovation Competition. In Tianjin, visitors can admire the beautiful scenery along the Haihe River, watch the sunrise at Dongjiang Port, enjoy the sea of blossoms at Wudadao historical urban area (also known as the Five Great Avenues), indulge in shopping at the Florentia Village outlet mall, and savor delicious local cuisines at the Northwest Corner. "Tianjin Flavor" tourism has further magnified the city's vitality and charm. The per capita disposable income of Tianjin residents exceeded 50,000 yuan (around $6,912) last year, with public services becoming more balanced and accessible.  

Moving forward, we will bear in mind the expectations of General Secretary Xi Jinping, anchor ourselves to the goal of building a modern socialist metropolis in all respects, and strive to pursue Chinese modernization and high-quality development, thereby consistently showcasing Tianjin's new accomplishments. The main aspects of our work are:

First, we will focus on urban integration and continue striving to make solid progress in the integrated development of the Beijing-Tianjin-Hebei region. We will deepen institutional innovation for coordinated development, and constantly improve joint contribution and sharing of public and market-oriented services. We will proactively serve the relieving of Beijing of functions non-essential to its role as China's capital, and place greater emphasis on allocating and attracting market-oriented resources. In addition, we will leverage the role of the Binhai New Area as a strategic cooperation function zone, achieving its coordinated development with Xiong'an New Area and Beijing municipal administrative center while highlighting their own distinct strengths . By increasing synergy in scientific and technological (sci-tech) innovation and integration of industrial systems, we aim to apply more sci-tech advances and make industrial support more efficient within the Beijing-Tianjin-Hebei region. We will continuously enhance the region's service efficiency in railways and waterways, so as to make personnel exchanges more convenient as well as internal and external logistics circulation more efficient.

Second, we will concentrate on sci-tech innovation and industrial rejuvenation, and strive for excellence in fostering new quality productive forces. We will work to nurture the function of cities in promoting sci-tech innovation and applying the advancements, and build a regional center for application of sci-tech advances based on relevant resources and manufacturing supporting. We will deepen collaboration between Tiankai Higher Education Innovation Park and various innovative resources in the capital, strengthen the cultivation of a market-oriented sci-tech service system and policy support, thus moving more sci-tech advances from labs to production lines in and out the Beijing-Tianjin-Hebei region. Moreover, we will actively attract national strategic sci-tech forces to establish a presence in Tianjin, facilitate the transformation and upgrading of traditional industries according to local conditions, and capitalize on strengths and avoid weaknesses to foster and expand emerging industries, thus constructing a modern industrial system in an orderly manner. 

Third, we will center on optimizing the business environment and institutional opening-up, and strive for excellence in further deepening reform and opening-up across the board. We will unswervingly consolidate and develop the public sector, and to encourage, support, and guide development of the non-public sector, promote the reform and development of SOEs on a categorized basis, and build up the private sector. With the aim of better serving market entities, we will introduce a series of scenarios to efficiently handle matters. To energize the vitality of sci-tech innovation personnel and enterprises, we will upgrade the policies for Tiankai Higher Education Innovation Park. Leveraging the advantages of ports, comprehensive bonded zones, pilot free trade zones and the comprehensive pilot program for service sector opening, we will intensify exploratory efforts in the pilot program for institutional opening-up in such fields as sci-tech finance, "bonded plus," financial leasing, shipping services, exhibition services and cross-border data flows. 

Fourth, we will spotlight protection and utilization, and yield remarkable results in promoting cultural preservation and development. We will steadfastly follow the principles of cultivating culture, enriching people's lives through culture, enhancing the city's cultural vibrancy, and driving industrial development with cultural initiatives. We will improve the public cultural service system to better meet citizens' needs, promote the integration of culture and tourism, and accelerate the construction of distinctive tourist destinations, further enhancing the vitality and charm of the city.

Fifth, we will focus on ensuring residents' well-being and promoting urban governance modernization. We will prioritize ensuring residents enjoy peace and contentment in work and life. Based on the characteristics of Tianjin being a super-large city, we will expedite the development of refined management, smart governance, and participatory governance, and pursue a content-rich development path. We are committed to steadily promoting urban renewal, constantly increasing the efficiency of urban operational services, and enhancing the city's overall safety.

The development of Tianjin relies on the concern and support of friends from various sectors. We sincerely invite you to visit Tianjin, experience the optimism and openness of Tianjin's people, and feel the vigorous vitality of Tianjin's development.

That's all for my introduction. My colleagues and I would like to answer your questions. Thank you!

Chen Wenjun:

Thank you, Mr. Zhang. Now, the floor is open for questions. Please identify the news agency you represent before asking questions.

Hong Kong Bauhinia Magazine:

This year marks the 10th anniversary of implementing the coordinated development of the Beijing-Tianjin-Hebei region, a major national strategy. Can you elaborate on Tianjin's achievements in deepening and solidifying the coordinated development of the Beijing-Tianjin-Hebei region? What measures will Tianjin take to promote the coordinated development of Beijing and Tianjin, as well as further expand the breadth and depth of cooperation among the three regions? Thank you.

Zhang Gong:

Thank you for your questions. I will address them now. This year celebrates the 10th anniversary of the Beijing-Tianjin-Hebei coordinated development strategy. Over the past decade, Tianjin has focused on implementing this significant national regional development strategy, actively pursued integrated development to enhance Tianjin's growth, and significantly advanced regional coordination and integrated development with Beijing.

In terms of achievements, consensus on coordinated development among the three regions has deepened over the past decade, not only among government departments but also in enterprises and markets. Meanwhile, integration between Beijing and Tianjin has progressively strengthened, with high-speed rail and expressways drastically reducing travel times between the regions and facilitating the seamless flow of people. This mobility has spurred cooperation across various aspects. Currently, about 70,000 to 80,000 people travel between Beijing and Tianjin daily via intercity high-speed railways. The number of people living in Tianjin who are working, conducting business, or spending weekends in Beijing for leisure and vacation is on the rise. Such exchanges and interactions are bound to create new opportunities for cooperation at various levels.

Practical cooperation across multiple fields continues to accumulate fruitful results. Economically, market-oriented cooperation is expanding in various aspects, such as industrial complementarity, logistics collaboration, service expansion, and energy security. Many central state-owned enterprises like CNOOC, Sinopec, China Electronics Technology Group Corporation, China Unicom, and CHN Energy Investment Group have expanded their presence in Tianjin. In terms of technological innovation collaboration, the interaction and empowerment among parks, enterprises, and technology service providers across Tianjin, Beijing, and Hebei are continuously increasing. Examples include the Tiankai Higher Education Innovation Park and Zhongguancun. Entities like the Chinese Academy of Medical Sciences, 360, Lenovo, and Zhongguancun Hardware Space Group Co., Ltd. are expanding their cooperative footprint in Tianjin. Regarding ecological governance, collaborative efforts in joint prevention, construction, and governance among the three regions are deepening in standards and measures. In terms of public services, measures like the direct settlement of medical expenses across the three regions, enhanced cooperation in public education, and the integration of social security cards have significantly eased the lives of residents in these areas and furthered city integration efforts.

Moving forward, we will make continuous and pragmatic efforts to expand cooperation among the three regions. We will proactively support relieving Beijing of functions non-essential to its role as China's capital, the development of Xiong'an New Area, and the construction of Beijing's sub-center, primarily in the following aspects:

First, our efforts will center on the development of city clusters, with an emphasis on enhancing soft connectivity through public services. We aim to boost cooperation in areas including education, healthcare, social insurance, elder care, culture, commerce, tourism, and transportation. By advocating for uniform standards in similar practices, we will make commuting and daily life more convenient for people in the three regions.

Second, in the coordination of scientific and technological innovation and the integration of industrial development, greater emphasis will be placed on nurturing the development of the technology service industry. We will leverage the unique role of market-oriented technology services in the application of technological advances and facilitate extensive collaboration within the technology service industry.

Third, in the process of actively helping relieve Beijing of functions non-essential to its role as China's capital, attention will be paid to market-based allocation of resources and factors for talent introduction and cultivation. The government's macro planning guidance has been very clear and deeply ingrained in people's minds. Next, special attention will be paid to the follow-up of market-oriented resources. In particular, we will rely on Tianjin's scientific and educational resources, the policy space of the Binhai New Area, and Tianjin's own advantages in terms of public services and comprehensive costs. Efforts will be continuously made in market-oriented resource allocation, building mechanisms for sharing benefits, incentivizing the application of advances, and establishing market-oriented industrial supporting platforms.

Fourth, we will leverage the role of Tianjin Port as a shipping hub in northern China. In the process of advancing the integrated development of ports, industries, and cities, we will focus on cultivating and improving shipping services and functions, expanding domestic and international shipping routes compatible with regional industries, and optimizing smart custom clearance capabilities. We will make good use of policies in comprehensive bonded zones and free trade pilot zones, and enhance institutional openness.

The 10th anniversary marks a new starting point. We will take more pragmatic and precise measures, continuously seek breakthroughs in mechanisms, platforms, paths, and shared benefits, and better expand the depth and breadth of service to regional development. Thank you.

CCTV:

I just heard Mr. Zhang mention ten initiatives during his introduction, so I would like to ask you to elaborate on what the city has done so far and the highlights of these initiatives. Additionally, in which key areas and critical links will you introduce innovative measures this year? Thank you.

Zhang Gong:

Thank you for your attention to Tianjin's ten initiatives. Now, I would like to invite Mr. Liu to answer these questions.

Liu Guiping:

Thank you for your questions. Since the start of last year, Tianjin has been focusing on key areas critical to its long-term development. In line with the guiding principles of the report to the 20th CPC National Congress, the city has undertaken 10 initiatives to promote high-quality development, achieving initial success. Significant progress has been made in promoting the coordinated development of the Beijing-Tianjin-Hebei region, with over 40 central government enterprises’ second level or third level subsidiary companies establishing themselves in Tianjin through market-based approaches. Industry and information technology departments across the Beijing-Tianjin-Hebei region have jointly released industrial chain maps in six key areas. Furthermore, the Tianjin-Daxing Airport Intercity Railway was officially launched on Dec. 28, 2023, reducing travel time between Tianjin West Railway Station and Beijing Daxing International Airport to just 40 minutes. Tianjin Binhai New Area has given full play to its role in supporting and guiding the city’s high-quality development. Last year, the area's GDP saw a 4.6% increase, surpassing Tianjin's average growth rate. The State Council has also approved the establishment of the Tianjin Lingang Comprehensive Bonded Zone. Tianjin's cluster of marine engineering equipment industries has emerged as the important one of its kind in China. Remarkable progress has been made in invigorating Tianjin through science and education and in developing a quality workforce. The CPC Tianjin Municipal Committee and Tianjin municipal government have planned the development of Tiankai Higher Education Innovation Park in a holistic manner. So far, the number of registered businesses has exceeded 1,500. Tianjin's R&D spending accounts for 3.49% of its GDP, and the ratio ranks third in the country. The metropolis was ranked 18th globally in the Nature Index Science Cities 2023. The integrated development of our port, industry, and city has enhanced the supporting capacity of the port, accelerated the development of port-related industries, and injected fresh vitality into the port city. Mr. Zhang just mentioned that last year, container throughput at Tianjin Port reached 22.18 million TEUs, an increase of 5.5% year on year, ranking eighth in the world. We have sped up the high-quality development of manufacturing with intensified efforts. Twelve well-designed key industrial chains continued to grow. Their value-added accounted for 79.8% of that in industrial enterprises with annual revenue of 20 million yuan or more from their main business operations. The action plan for downtown renewal and upgrading has been implemented effectively and in an orderly manner. Work has begun on 14 urban renewal projects implemented last year with an investment of 9.1 billion yuan, covering a total area of 10 square kilometers. We have advanced all-around rural revitalization. Last year, despite the major flood unseen in Tianjin in more than 60 years, our grain output has remained steady at over 2 million metric tons for eight consecutive years. The number of new types of agricultural business entities exceeded 20,000. Thirty new demonstration villages on rural revitalization have been built. New progress has been achieved in green and low-carbon development. The annual average PM2.5 concentrations in Tianjin met the national target. Energy consumption per unit of GDP dropped by at least 10% from 2020. We have enabled people to enjoy a higher quality of life. The surveyed urban unemployment rate stood at 5.4%. The per capita disposable income of residents increased by 4.7%. The urban-rural per capita disposable income ratio was 1.79, the lowest in China. This means the income gap between urban and rural residents in Tianjin is the narrowest throughout the country, laying a solid foundation for pursuing common prosperity and integrated urban-rural development. We have improved the quality and effectiveness of our efforts in guiding community-level governance through Party building, so that primary-level organizations are better able to carry out their work.

Frankly speaking, it is difficult to elaborate on all the data and practices related to Tianjin's ten initiatives in such a short time. I can only offer you a brief introduction. If you want to learn more about our achievements, we sincerely welcome you to visit Tianjin, as the mayor suggested. Moving forward, we will introduce innovative measures focusing on five key aspects:

First, we will focus on major national strategies. We will continue to explore the coordinated development of the Beijing-Tianjin-Hebei region and the urban integration of Beijing and Tianjin municipalities. By enhancing innovation in systems and mechanisms, we will make coordinated efforts to promote the development of the Beijing-Tianjin-Hebei region as a collaborative innovation community.

Second, we will focus on developing new quality productive forces. After nearly a year since its launch, we plan to introduce version 2.0 of the support policies for the Tiankai Higher Education Innovation Park. Additionally, we will devise an implementation plan for the high-quality development of modern service industries to encourage deeper integration of advanced manufacturing and modern services.

Third, we will focus on fully utilizing our city's potential. We will implement a plan to put idle assets to good use through a multi-tiered and categorized approach. Furthermore, we will continue to improve the city's facilities and its capacity to provide services.

Fourth, we will focus on expanding domestic demand. We will work to increase effective investment, promote consumer goods trade-in programs, and accelerate efforts to develop Tianjin into an international consumption center.

Fifth, we will focus on reform and opening-up. We will step up efforts to build a financial innovation operation demonstration zone, take actions to upgrade pilot free trade zones, conduct pilot trials in advantageous areas, and deeply involve ourselves in the Belt and Road Initiative cooperation.

Thank you. 

China Daily:

In recent years, Tianjin has made continuous efforts to develop itself into an international shipping center and a green port. In particular, the metropolis unveiled an action plan for the integrated development of its port, industry, and city. Could you please introduce your achievements and future plans in this regard? Thank you.

Zhang Gong:

Thank you for your question. I will once again give the floor to Mr. Liu.

Liu Guiping: 

Thank you very much for your interest in Tianjin. Tianjin, a city built by the sea, has thrived thanks to its port. In recent years, we have fully implemented the important instructions given by General Secretary Xi Jinping during his inspection of Tianjin Port, thus accelerating the integrated development of the port, industry, and city.

The construction of a world-class, smart, and green hub port is advancing rapidly. We have launched China's first unmanned driving demonstration port zone and built the world's first "smart zero-carbon" wharf. Tianjin Port connects to three Eurasian continental bridges leading to Erenhot, Manzhouli, and Khorgos ports. We maintain economic and trade exchanges with over 500 ports in more than 180 countries and regions, offering 145 container shipping routes and operating over 550 monthly liner services. As previously mentioned, Tianjin Port handled over 22 million TEUs of containers and 558 million tons of cargo last year, ranking eighth and 10th worldwide, respectively. We are committed to the coordinated development of the Beijing-Tianjin-Hebei region. Tianjin Port serves as a crucial measure of Beijing's business environment. To better support Beijing's development, we have established a Beijing-Tianjin coordinated port service center in Beijing. Additionally, we have aided the development of Xiong'an New Area by creating a service center in Xiong'an Comprehensive Bonded Zone. We offer 44 sea-rail intermodal transport channels covering the Beijing-Tianjin-Hebei region and northeast, north, and northwest China. Last year, our throughput reached 1.227 million TEUs, placing us third in China in this category.

The supportive role of port-related industries continues to strengthen. Last year, Dalian Shipbuilding Industry Co., Ltd (DSIC) Tianjin Shipbuilding Co., Ltd.  delivered three 16,000-TEU container ships with independent intellectual property rights. The 1.2 million-ton Sinopec Nangang ethylene project reached the conditions for trial production. The Tianjin International Petroleum & Gas Exchange Center began trial operations. Last year, Tianjin International Cruise Home Port welcomed 85,000 inbound and outbound passengers, ranking first in the country.

The integrated development of the port, industry, and city is accelerating mutual empowerment. Leading shipping companies, such as China COSCO Shipping Corporation Limited, are expanding their presence in Tianjin at an accelerated pace. Last year, the company signed a strategic cooperation agreement with the municipal government. The company is expected to add two more ocean shipping routes next month. The development of the shipping service cluster zone is also speeding up. Last year, over 1,000 new shipping service enterprises were registered, up 13.5% year on year. The first Tianjin International Shipping Industry Expo was held last year, enhancing the service radiation capacity and international influence of Tianjin Port. The expo will be held annually, with this year's edition scheduled for July.

Next, we will focus on building a key strategic hub in northern China to facilitate the "dual circulation" of domestic and overseas markets, and we will spare no effort in promoting the integrated development of the port, industry, and city. Specifically, we aim to make improvements in four areas, known as the "Four Enhancements." First, we will enhance port support capabilities by accelerating the development of multimodal transportation involving roads, railways, sea, and air, optimizing the loading, unloading and transport system, and improving port throughput, cargo handling capacity, and distribution capabilities. Second, we will enhance port operation levels by promoting smart, green, and low-carbon development with high-end cargo specialization, value-added services, and efficient management. Third, we will enhance the quality of port-related industrial development by fully utilizing marine resources, focusing on the development of port and maritime economies, and creating new business formats and models. Fourth, we will enhance the development of the port city by promoting urban planning, functional layout, environmental improvement, and business design to create a port city landscape. Thank you!

Shenzhen TV Zhi News: 

In February of this year, the Beijing-Tianjin-Hebei region jointly released distribution maps of major historical and cultural resources, revealing shared cultural heritage with distinctive local characteristics. For example, Beijing boasts a rich heritage as an ancient capital, while Hebei is renowned for its Yanzhao cultural heritage. Now, I would like to know, what are the main characteristics of Tianjin's culture? Additionally, what measures will be taken to further leverage these distinctive cultural characteristics in urban development? Thank you.

Zhang Gong:

Thank you for your interest in Tianjin's culture. Now, let's give the floor to Ms. Shen Lei to answer this question.

Shen Lei:

Thank you for your question. You also mentioned the Beijing-Tianjin-Hebei region from a cultural perspective. I understand that culture is the accumulation and continuation of history. Beijing, Tianjin and Hebei are connected geographically and share the same cultural heritage. However, each region has its own historical development context, leading to distinct cultural characteristics.

Tianjin boasts a 10,000-year history of human activity, a history of civilization spanning thousands of years, and a city history of six centuries. It is often dubbed "a window into modern China's past century" because it created over 100 "firsts" in modern Chinese history. Therefore, it is also referred to as the "gateway to the capital region, a hub of river and sea transport, an epitome of modern history, a frontier of cultural integration, the cradle of national industry, and the pioneer of modern education." Its unique geographical environment, where rivers meet the sea, coupled with the shifting dynamics of modern times, has endowed Tianjin with a cultural characteristic and temperament of "diversity, inclusiveness, fusion, harmony, openness, and innovation." This characteristic and temperament have deeply integrated into the fabric of the city's development and permeated the lives of its residents, shaping the city's appearance, personality, external features, and internal qualities.

For example, the "urban charm" of Tianjin is characterized by the Haihe River flowing through the city, imparting a unique aura to the urban landscape. The historical architectural buildings on both banks of the Haihe River, commonly known as "small Western-style buildings," are diverse and distinctive, presenting a "world architecture expo" and bearing witness to legendary stories of many historical figures. This has given Tianjin a unique urban landscape blending Eastern and Western influences, and ancient and modern styles. The "cultural and artistic charm" of Tianjin is evident in its abundance of cultural celebrities and artists, being a prominent center for the development of various art forms such as Peking Opera, cross-talk, northern Chinese folk art, Ping Opera, and Chinese drama. Tianjin audiences love art and know how to appreciate the beauty of art, and the mutual interaction between actors, audience, and art has become a unique cultural phenomenon. The "humanistic character" of Tianjin is reflected in the optimistic, humorous, hospitable, and righteous nature of its people, which has become a distinctive cultural characteristic of the city. In Tianjin, you can experience the city's grand atmosphere, featuring both generosity and cosmopolitanism, blending the ancient with the modern, and offering a profound yet romantic feel wherever you go.

Culture is the soul of a city, representing its image and influencing its development. We will cherish and develop urban culture with greater care and affection, promoting cultural enrichment, benefiting the people, nurturing the city and fostering industry through culture. First, cultural protection and inheritance. We will preserve and utilize historical and cultural areas, heritage buildings, and intangible cultural heritage. Second, cultural transformation and presentation. We will delve into Tianjin's rich historical and cultural resources to enhance the supply of high-quality cultural products and services. Third, cultural branding and identification. By highlighting Tianjin's unique elements, we will strengthen Tianjin's art, literary, tourism, creative and time-honored brands. Fourth, cultural dissemination and exchange. We will share Tianjin's stories through various platforms and resources to spread its brilliance in cultural exchanges. Thank you.

Xinhua News Agency: 

Mr. Zhang mentioned Tiankai Higher Education Innovation Park earlier, and we have noticed that since its opening in May last year, Tiankai Higher Education Innovation Park has attracted widespread attention. What were the considerations in building the park? And what role will Tiankai Park play in Tianjin's development of sci-tech innovation in the future? Thank you.

Zhang Gong: 

Thank you for your interest in Tiankai Higher Education Innovation Park. I'll answer this question. Tiankai Higher Education Innovation Park gets its name from a combination of Tianjin University and Nankai University, and the name suggests "Tian Gong Kai Wu," an ancient book about technologies in the Ming Dynasty. We hope this platform can lead to greater sci-tech innovation and cultivate more leading figures in innovation and entrepreneurship, nurturing a mutually beneficial relationship between the city and universities, innovation and entrepreneurship. The construction of Tiankai Higher Education Innovation Park is in line with the needs of the coordinated development of the Beijing-Tianjin-Hebei region, the increasingly evident integration of Beijing and Tianjin, and closer collaboration in sci-tech innovation. It is an important measure in cultivating Tianjin's own innovation capacity, stimulating its technological innovation vitality and continuously promoting the development of Tianjin's new quality productive forces.

As Mr. Liu just mentioned, since opening in May last year, Tiankai Higher Education Innovation Park has registered more than 1,500 technology-based innovative enterprises and introduced 225 technology financial and service institutions. In fields such as new energy, new materials, synthetic biology, artificial intelligence, biomedicine, precision measurement and brain-machine engineering, a vibrant innovation scene has been preliminarily formed.

Next, we will focus on building Tiankai Higher Education Innovation Park into an influential source of innovation, a highland for regional technology achievement transformation, and an ecosystem of sci-tech innovation services. We will focus on policy services, technology services and professional services, develop and optimize the park, and continuously promote its quality development.

We will work on improving policies and support mechanisms in line with the rules for developing science and technology parks and market-oriented operations, focusing on stimulating the vitality of various types of personnel and institutions engaged in sci-tech innovation. We will introduce more targeted upgraded support policies for Tiankai Higher Education Innovation Park to better nurture and attract innovative achievements, talents and investment.

We will work on cultivating a strong technology service system and creating a favorable innovation ecosystem. We will first nurture and leverage the roles of funds such as the Haihe Industry Fund, Tianjin University Jiuanhaitang Fund and Nankai Xinkaihu Fund, vigorously introducing market-oriented technology service industries such as technology and business verification, pilot testing, inspection and testing, and knowledge services to facilitate achievement transformation.

We will work on optimizing government services and further strengthening supporting services and policy coordination for sci-tech and talents. Talent-driven development is of great concern, especially against the backdrop of increasingly close integration in the Beijing-Tianjin-Hebei region. We will introduce an upgraded version of the "Haihe Talent" policy and promote the construction of a smart park service platform, launching more efficient service scenarios to continuously expand the application scenarios of technological innovation achievements in Tianjin.

We will work on promoting comprehensive opening-up and cooperation in Tiankai Higher Education Innovation Park, strengthen cooperation with Zhongguancun and other advanced domestic science and technology innovation parks, and explore extensive cooperation with international technology service companies.

We will coordinate the implementation of the "one core, two wings and multiple points" plan for Tiankai Higher Education Innovation Park. Currently, the overall planned area of the park is 80 square kilometers. We will orderly enhance the core area's functions in innovation driving services and expand the achievement transformation and basic supporting functions of the extended area, continuously improving the market-oriented operation and management mechanism.

Tiankai Higher Education Innovation Park is a newly established science and technology innovation park. We hope that everyone will continue to care for and support its development. With everyone's help, the park will surely thrive and become a fertile ground for innovation and entrepreneurship. Thank you.

Hong Kong Economic Herald: 

We have noticed that Tianjin has introduced many measures in recent years to support the development of the private economy. Recently, Tianjin has also launched activities to visit and serve private enterprises. What are the typical practices Tianjin is taking to optimize the business environment and serve the private economy? And what are the next steps in focusing on the concerns of enterprises? Thank you.

Zhang Gong: 

Thank you. This is a very important question. I would like to invite Mr. Dai, director of the Tianjin Development and Reform Commission, to answer.

Dai Yongkang:

Thank you very much for your interest in Tianjin's business environment and private economy. As you mentioned, we have long been committed to working unswervingly both to consolidate and develop the public sector and encourage, support, and guide development of the non-public sector, treating private enterprises and entrepreneurs as our own family and serving the development of enterprises with care and affection. Last year in particular, we held a citywide high-quality development conference for the private economy and hosted the China Private Enterprises Investment and Financing Conference , and proposed a package of support measures addressing the concerns of private enterprises. Last year, the growth of the added value of the private economy increased by 4.5 percentage points compared to the previous year. There were more than 300,000 newly registered private business entities throughout the year, an increase of 13.3% over the previous year, accounting for 99% of the newly registered business entities in the city. The quality of our private economy development has also been relatively good, with tax revenue growing by 26.1%.

The term "our own" conveys a sense of respect and recognition, and it is the essence of our service and commitment. In the following steps, we will focus on addressing the concerns of enterprises and provide full support for the growth of the private economy. We will continuously optimize the development environment, provide greater room for private enterprises to thrive within major strategic implementations, ensure more stable expectations for private enterprises during comprehensive and deep-rooted reforms, and enhance precise services to give private enterprises a stronger sense of accomplishment. We will demonstrate a clear stance of support for "our own," employ effective measures in service delivery, fulfill our commitments, and enable businesses to benefit and gain confidence. Our efforts to promote the development of the private economy will primarily revolve around three aspects:

First, support should be substantial. We aim to expand the space for the development of the private economy, create more opportunities, and provide a broader stage. This support includes assisting large enterprises in participating in Tianjin's major projects and key tasks, as well as facilitating the integration of small- and medium-sized private enterprises into the industrial chain so as to provide necessary support and complement large enterprises and major projects. This will empower all types of business entities to actively contribute in various areas, including major project construction, technological innovation, industrial cluster development, and domestic and international market expansion.

Second, actions should be prompt. We deeply understand that time is a cost for businesses. Therefore, we will intensify efforts to reform the business environment and further enhance the delegation of powers to streamline administration. Building upon the foundation of removing barriers to market entry, we will address the challenges faced in business operations. This includes promoting the direct cancellation of approval requirements, shifting from approval-based processes to record-filing systems, implementing commitment-based notifications, and optimizing the classification of approval services. We will vigorously promote initiatives such as immediate processing, one-stop services, online procedures, and integrated solutions. Furthermore, we will continue to advance online problem-solving measures in the Beijing-Tianjin-Hebei region, aiming to reduce time costs for enterprises.

Third, services should be delivered with warmth. We will continue to carry out various activities, such as visiting and serving enterprises, to keep in close contact with private businesses. We aim to truly fulfill our role as guardians of enterprise development, facilitators of resource connections, and providers of attentive and reliable services. Additionally, we will vigorously promote the spirit of Tianjin merchants in the new era, striving to create a positive social atmosphere that respects entrepreneurs and innovators.

That concludes my introduction. Thank you.

Guangming Daily: 

Tianjin is a national advanced manufacturing research and development base. Airbus's second assembly line and Lenovo's innovation industry park have already been established in Tianjin. Industries such as intelligent technology, green petrochemicals, automobiles, and equipment manufacturing are also witnessing accelerated growth. What new initiatives has Tianjin implemented to promote industrial revitalization and accelerate the development of new quality productive forces? Thank you.

Dai Yongkang:

Thank you for your attention. As we all know, Tianjin is a key industrial city in modern China, and the central government has designated it as a national advanced manufacturing research and development base. This recognition highlights the advantages of Tianjin's industrial foundation and provides a path and direction for us to promote industrial revitalization and develop new quality productive forces based on local conditions.

Tianjin boasts a solid foundation and advantages in the manufacturing sector. We are home to 38 national engineering research centers, 77 national enterprise technical centers, 28 national champions in specific fields, and 253 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge as well as single-product specialists. Tianjin has also nurtured a batch of new research and development institutions that integrate scientific research, industry and finance, such as the Tianjin Research Institute for Advanced Equipment of Tsinghua University,  Peking University (Tianjin Binhai) New Generation Information Technology Research Institute , and Tianjin International Joint Academy of Biomedicine. Moreover, the city has established 10 major industry talent innovation and entrepreneurship alliances, connecting 100 universities and research institutes, 75 academicians and experts, and 1,700 leading entrepreneurs. Additionally, Tianjin has gathered a workforce of 35,000 engineers. These factors provide robust support for promoting industrial revitalization and developing new quality productive forces. Going forward, they are expected to play an even greater role.

Next, we will focus on four areas of work. We will strengthen our efforts in leading, traditional, emerging, and future industries. We will use sci-tech innovation to lead industrial innovation, enhance the driving force of industrial development through industrial innovation, and promote the manufacturing industry's high-end, intelligent and green development.

The focus of our leading industries is to move towards the high-end segment. Concerning our traditional leading industries, such as green petrochemicals, automobiles, and equipment manufacturing, we will vigorously enhance the supply capacity of high-end products, the localization rate of key components, and the level of cluster development. For example, in the important value chain of green petrochemicals, we are promoting the development of a high-end and refined chemical chain. We are accelerating the construction and operation of projects like a 1.2 million-ton ethylene project , as well as the Zhejiang NHU Co., Ltd. and Henghe projects, aiming to establish the Nangang Chemical Materials Base and a green petrochemical industrial cluster.

The focus of our traditional industries is quality improvement and upgrading. We are accelerating intelligent transformation, digitalization and networked integration in areas such as metallurgy, the light industry, and traditional Chinese medicine. This effort aims to drive equipment renewal, process upgrading, and digital empowerment, as well as enhance the quality and efficiency of development.

The focus of our emerging industries is to accelerate their growth and expansion. We are cultivating a number of strategic emerging industry clusters characterized by strong innovation capabilities, unique strengths, and high concentration in fields such as computing power, information technology, and integrated circuits. For example, in the information technology and creative industry that we are currently promoting, we are enhancing the "PK" system, which is built around the Phytium central processing unit and Kylin operating system. We are implementing the "Double Hundred Project" with 100 products and 100 application scenarios in the information technology and creative industry, aiming to establish Tianjin as a leading force and a demonstration leader in this field.

The focus of our future industries is to seize opportunities. We will accelerate our efforts in areas such as artificial intelligence, biomanufacturing and life sciences to establish a strong presence and explore new pathways for developing new quality productive forces. Thank you.

N Video from Nanfang Metropolis Daily:

Last year, as part of the economic endeavors, cities across the country have been creating cultural and tourism IPs that have continued to gain popularity. Tianjin boasts unique cultural and tourism resources. Some netizens have said that eating breakfast and listening to Xiangsheng have become a must-do for travelers. Could you please elaborate on the distinguishing features of Tianjin when it comes to innovating new models and scenarios for cultural and tourism consumption? What are you considering to implement for the next step? Thank you.

Zhang Gong:

Thank you. I'll invite Ms. Shen Lei to answer this question.

Shen Lei:

Thank you for your interest in Tianjin's cultural and tourism sector. I have also noticed such statements online. In fact, there are many attractions and activities in Tianjin. Besides Tianjin's breakfast and Xiangsheng, as you mentioned, visitors can also ride in a carriage, visit foreign-style buildings, cruise along the Haihe River, climb Panshan Mountain, watch the sunrise and admire the flower fields. These are also must-do activities for travelers in Tianjin. In terms of natural resources, Tianjin boasts a combination of mountains, sea, rivers, lakes, wetlands and hot springs. It has the beautiful Panshan Mountain, the lively Haihe River, the vast Bohai Bay and wetlands that attract migrating birds. In terms of cultural resources, Tianjin has the thousand-year-old Dule Temple , the National Maritime Museum of China known as the "Forbidden City on the Sea," and the Beijiang Museum , which is considered a living fossil. There are also interesting folk cultures and traditional folk art such as Yangliuqing New Year paintings and Clay Figure Zhang . Visitors can enjoy delicious food and snacks everywhere in Tianjin, and the streets are filled with the bustle and hustle of daily life. If you explore Tianjin with a "city walk" on the weekend, wandering along the banks of the Haihe River or strolling through the historical districts, I believe you will have a sense of being transported to Europe. If you are interested in China's modern history, coming to Tianjin is definitely a great choice. If you are considering visiting Tianjin right now, I suggest you go to the Five Great Avenues to see the crabapple blossoms, experience an immersive performance in a foreign-style building, or visit Jizhou district to climb the Great Wall, admire the pear blossoms and have a rest at a homestay. I believe you will find it a worthwhile trip.

Currently, the cultural and tourism industry is showcasing unprecedented vitality, and the cultural and tourism market is undergoing some new changes and presenting new traits. We need to grasp the trends and respond to these changes. First, we need to adapt to the trend of deep integration of various industries. Tourism is not only an industry but also an important carrier. We need to promote the integrated development of cultural tourism with commerce, agriculture and sports as well as technology, leveraging digitization to empower the cultural tourism industry. Second, we need to adapt to the transformation of cultural tourism supply going from "meeting demand" to "creating demand." The current cultural tourism market has shifted from input-driven market to one driven by innovation . We need to increase the supply of cultural tourism products that are empathetic, immersive and interactive to develop urban, youthful and culturally rich tourism. Third, we need to adapt to the characteristics of the era of mass tourism. Nowadays, tourism has become a lifestyle and an experience for people. The development of cultural tourism depends not only on the sector's resources but also on the resources of the entire city. Therefore, we need to comprehensively improve the supply of cultural tourism products, urban management services and promotional efforts, leveraging all three aspects to create a culturally distinctive tourism destination. Mr. Zhang Gong has already invited everyone to visit Tianjin. We particularly hope that everyone will come to experience the charm and vitality of this city. 

That's all I have to say. Thank you!

Chen Wenjun:

Due to time constraints, we only have time for two more questions.

Yicai:

The China (Tianjin) Pilot Free Trade Zone is about to celebrate its ninth anniversary. Could you please elaborate on the breakthroughs and achievements made by the zone over the past nine years? Also, what are the new deployments to further advance institutional high-level opening-up and to strengthen industries? Thank you.

Liu Guiping:

Thank you for your question and your attention to the China (Tianjin) Pilot Free Trade Zone . The zone is among the second batch of China’s pilot free trade zones and the first of its kind in north China. In the past nine years since its establishment, we have strictly followed the intention of the country to establish the zone, focusing on building institutional highlands rather than “policy depressions” that simply rely on policy incentives to attract investment and enterprises and exploring successful institutional practices that could be replicated in other parts of China . We have always adhered to testing institutions for the country and seeking development for the region, firmly grasped the core task of institutional innovation and continuously launched a series of innovative achievements, effectively stimulating market innovation vitality and promoting the high-quality economic and social development of the city. So far, the zone has implemented a total of 615 institutional innovation measures, of which 42 leading and iconic innovation achievements have been replicated and promoted nationwide. For example, Tianjin's industries such as financial leasing, commercial factoring, parallel importing of cars and bonded maintenance rank among the top in the country. Our financial leasing, especially aircraft leasing business, ranks second globally, and the premium of our commercial factoring business accounts for 30% of the country's total. Now, the zone has 88,000 business entities of various types with an average annual actual utilization of foreign capital exceeding $2 billion and an average annual import and export volume exceeding 200 billion yuan. With only 1% of the city's land area, it contributes 30% of the city's foreign trade and 40% of the actual utilization of foreign capital, effectively playing the role of a "testing ground" for reform and opening up.

The next step in the zone will be to strictly implement arrangements made by the CPC Central Committee and follow the important instructions of General Secretary Xi Jinping to further improve and solidify the institutional innovation of the zone and to further test institutions for the country. There are several main considerations:

First, we will advance institutional opening-up to meet high standards. Aligning with international benchmarks, we plan to prioritize key sectors such as trade, investment, finance, intellectual property rights, and environmental protection. We will further promote the pilot programs of institutional opening-up, aiming to establish a robust system and regulatory framework aligned with high-level institutional opening-up. We will explore innovations in cross-border data flow regulations, pioneering the implementation of standardized classification and grading criteria for enterprise data within a free trade zone. Tianjin's successful practices, combined with practical application scenarios, are expected to be steadily promoted and replicated across the country.

Second, we will attract and cultivate advantageous industries with high-level capabilities. We will fully implement the "negative list + pre-establishment national treatment" policy, develop "bonded+", and leverage the advantages of ports, logistics and industries. We will effectively implement the bonded maintenance policy for tax-exempt imported goods, which will be repaired under bonded status and then re-exported. Additionally, we will launch pilot projects for bonded remanufacturing of automotive parts, and continuously deepen the construction of the "five major bonded centers." We will develop "finance+" initiatives, continually burnishing the image of financial services such as financial leasing, commercial factoring and free-trade accounts. We will vigorously promote "digital+", advancing cross-border data flow and expanding platform economy industry clusters, such as cross-border e-commerce and online freight. We will further develop "trade+" initiatives, continuously strengthening business formats such as automobile import and export, cold chain logistics and service trade.

Third, we will act to promote the high-quality upgrading of the free trade zone. We plan to intensify efforts in institutional innovation, bolster the nurturing of promising sectors, leverage the combined advantages of policies related to the free trade zone, the opening-up of the service sector, and comprehensive bonded zones. Focusing on enhancing national strategic capabilities, elevating our platform's level for opening-up, and improving the quality and efficacy of institutional innovations, we will expedite the launch of enhancement action plans for the free trade zone, actively driving the implementation of new institutional innovation measures such as healthcare and financial opening-up.

We have confidence that under the strong leadership of the CPC Central Committee and the State Council, Tianjin FTZ will fulfill its predetermined objectives in this new historical phase. Through its own explorations, the free trade zone will undoubtedly facilitate Tianjin's reform and opening-up more effectively. This will contribute significantly to Tianjin's economic and social development, adding a significant stroke to the composition of the "Tianjin Chapter" of Chinese modernization. Thank you.

National Business Daily:

We know that Tianjin is a mega-city with a population of over 13 million people, and its residents are deeply concerned about various aspects of life such as employment, elderly care, education and healthcare. Could you please tell us about any new measures Tianjin has taken to ensure residents' well-being and to improve their quality of life? Thank you.

Zhang Gong:

This is a very good question. Ensuring residents' well-being and improving their lives are of paramount importance in the development of a mega-city. The ultimate goal of economic and urban development is to bring about a better life for residents. We will focus policies on the areas of people's livelihoods, extend services to cover all aspects of daily life and allocate resources toward improving quality of life. We will make concerted efforts to address practical issues directly related to people's lives, continuously meeting the new demands of residents.

In the fields of education and healthcare, our focus is on promoting balanced development. In education, we will further implement the project of radiating and leading high-quality educational resources in basic education. We will continue to expand the coverage of high-quality educational resources with plans to build, expand and renovate 12 compulsory education schools this year, adding 20,000 new student positions. In healthcare, we will accelerate the establishment of national medical centers at the Chinese Academy of Medical Sciences Blood Disease Hospital and the First Teaching Hospital of Tianjin University of Traditional Chinese Medicine . We will accelerate the construction of the Tianjin Hospital of Peking Union Medical College Hospital Phase II project and renovation projects, such as the Tianjin Huanhu Hospital . This year, we aim to complete the third phase of the Municipal People's Hospital, allowing the public to access more high-quality, efficient and affordable medical and health services.

In terms of "elderly care and child care," our focus is on strengthening service guarantees. Regarding the elderly, we will further develop the "Tianjin Elderly Care" service brand, expand care and in-home services for seven categories of particularly disadvantaged elderly individuals and continue to enhance meal assistance for the elderly to ensure they receive increased care and support. In terms of child care, we will persist in implementing the Child Health Enhancement Plan, intensifying monitoring and prevention efforts against childhood myopia, obesity and mental health issues. Furthermore, we will improve meal management in schools and reinforce comprehensive governance around school premises.  

In terms of social security, our focus is on safeguarding the bottom line of people's livelihoods. Regarding employment, we will explore and expand job opportunities, support flexible employment and provide assistance to those facing difficulties in finding work. In terms of medical insurance, this year we will raise the maximum reimbursement limit for outpatient and emergency services by an additional 1,000 yuan. Concerning housing, this year we aim to secure 5,000 units of affordable rental housing and construct 2,000 units of affordable housing for sale. This approach aims to gradually alleviate housing difficulties for new residents, young people and other vulnerable groups within the city.

In the field of urban renewal, our primary focus lies in elevating functional quality. We are directing our efforts towards upgrading business formats, enhancing functionalities and improving overall quality. This involves a concerted effort to enhance urban amenities and service capabilities. We have undertaken seven urban renewal projects alongside a batch of initiatives aimed at transforming urban villages. Moreover, we have initiated renovations and upgrades for 275 aging residential neighborhoods and are actively constructing embedded service facilities within urban communities. This year, we plan to install an additional 10,000 charging stations, facilitating the usage of electric and new energy vehicles. We aim to complete three rail lines, including the first phase of the west section of Metro Line 11, and to accelerate the transformation of Jinbin light railway . In line with resilient and secure city construction, we will thoroughly implement fundamental safety production measures, carrying out renovations of outdated gas, heating and water supply pipelines in an orderly manner by region and year. This year, we will renovate 623 kilometers of gas pipeline networks, 150 kilometers of heating pipeline networks and 30 kilometers of water supply pipeline networks. Additionally, we will harness technology to empower urban operations, thus bolstering intelligent supervision and enhancing the intrinsic safety level of the city. 

In short, we will diligently implement the 20 people-oriented projects that were established at the beginning of the year, aligning closely with the decisions and arrangements of the CPC Central Committee. Through these endeavors, we aspire to deliver tangible benefits to the residents of Tianjin. Thank you, everyone!

Chen Wenjun:

Thank you to Mr. Zhang and the other speakers. Thank you to all the journalists for your participation. Today's conference will end here. Goodbye!

Translated and edited by Xu Xiaoxuan, Wang Qian, Liu Jianing, Zhou Jing, Li Xiao, Wang Yanfang, Mi Xingang, Zhang Junmian, Xiang Bin, Yuan Fang, Liu Caiyi, Li Huiru, Wang Ziteng, Qin Qi, Zhang Rui, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Xu Kunlin, deputy secretary of the Communist Party of China (CPC) Jiangsu Provincial Committee and governor of Jiangsu province 

Mr. Ma Xin, a member of the Standing Committee of the CPC Jiangsu Provincial Committee and executive vice governor of Jiangsu province 

Mr. Hu Guangjie, vice governor of Jiangsu province

Mr. Fang Wei, vice governor of Jiangsu province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 2, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are holding the fifth briefing in the series "Promoting High-Quality Development." Today's theme is Jiangsu's new frontier: Prosperous, beautiful and culturally advanced modernization. We have invited Mr. Xu Kunlin, deputy secretary of the Communist Party of China (CPC) Jiangsu Provincial Committee and governor of Jiangsu province to brief you on the relevant information, and to take your questions. Also present today are Mr. Ma Xin, a member of the Standing Committee of the CPC Jiangsu Provincial Committee and executive vice governor of Jiangsu province; Mr. Hu Guangjie, vice governor of Jiangsu province; and Mr. Fang Wei, vice governor of Jiangsu province.

Now, I'll give the floor to Mr. Xu for his introduction. 

Xu Kunlin:

Ladies and gentlemen, friends from the media, good morning. It's a great pleasure to meet you here and answer your questions. First of all, on behalf of the CPC Jiangsu Provincial Committee and the Jiangsu Provincial Government, I'd like to express my heartfelt gratitude to you for your long-term interest in and support for Jiangsu's work.

On March 5, General Secretary Xi Jinping took part in a deliberation with the delegation of Jiangsu province at the second session of the 14th National People's Congress (NPC) and delivered an important speech. He emphasized the need to firmly focus on the primary task of high-quality development, and develop new quality productive forces according to local conditions. He expressed the hope that Jiangsu will have greater confidence, exert its utmost, and shoulder greater responsibilities to make even more contributions to the nation. The entire Jiangsu province is thoroughly studying and implementing the guidelines of the general secretary's important speech, earnestly executing the guidelines from the Central Economic Work Conference and the "two sessions," and pursuing substantive and solid results in all its work. Jiangsu is taking practical actions to uphold establishing Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and resolutely uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership. First, Jiangsu will consolidate and build momentum for economic recovery and growth. Seizing the opportunity presented by the new wave of large-scale equipment upgrading and trade-ins for consumer goods, the province will continuously expand investment with good returns, unlock consumption potential and strengthen dynamic foreign trade, thereby fulfilling the political duty of shouldering greater responsibilities. Second, Jiangsu will accelerate turning itself into an important front for developing new quality productive forces. It will fully cement basic research, effectively construct and utilize high-level innovation platforms such as Suzhou Lab and Purple Mountain Laboratories, and strive to build an industrial sci-tech innovation center with global influence. Third, Jiangsu will work hard to develop an advanced manufacturing base with international competitiveness. It will coordinate the upgrading of traditional industries, the expansion of emerging industries, and the nurturing of industries of the future. The province will foster 10 high-standard national advanced manufacturing clusters, and expedite the development of a modernized industrial system with advanced manufacturing as the backbone. Fourth, Jiangsu will redouble its coordinated efforts to advance in-depth reform and high-level opening-up. It will focus on reforms in key areas such as market-oriented allocation of factors as well as investment and financing, and speed up the construction of a two-way opening-up hub with global appeal. Fifth, Jiangsu will make urban-rural and regional development more coordinated. It will promote the development of the Yangtze Economic Belt, the integrated development of the Yangtze River Delta in a coordinated manner. Additionally, it will deepen construction of the "1+3" key functional zones, namely the Yangtze River city cluster and its coastal economic belt, the Yangtze River and Huaihe River ecological economic zone, and the Xuzhou city as a central city in the Huaihai economic zone, thereby enhancing their leading role while establishing a new development pattern. Sixth, Jiangsu will steadily guarantee people's well-being. It will make sure that high-quality development and greater security reinforce each other, and ensure people's access to childcare, education, employment, medical services, elderly care, housing, and social assistance at a higher level, thus giving the people a growing sense of fulfillment, happiness and security.

Jiangsu bears the earnest expectations of General Secretary Xi Jinping. During every crucial period and at each key juncture, he provides guidance and points the direction for us, steering us on the right path. During his inspection visit to Jiangsu from Dec. 13 to 14 in 2014, the general secretary drew a great blueprint for developing a prosperous, beautiful and culturally advanced new Jiangsu, providing guidance for Jiangsu's endeavor toward creating a moderately prosperous society in all respects and presenting a vision for the future of Jiangsu's modernization drive. In November 2020, he entrusted Jiangsu with the honorable mission of striving to become a model and leading the way by example. In March and July 2023, he urged Jiangsu to continue to lead high-quality development and Chinese modernization, respectively. The general secretary's demands for Jiangsu have been consistent and in line with the times, focusing on modernization and pointing to high-quality development, assigning it the responsibilities of leading the way and making greater contributions. People across the province are brimming with gratitude and are rallying their efforts to forge ahead, striving to translate the general framework of developing a prosperous, beautiful and culturally advanced new Jiangsu into concrete efforts.

In terms of economic prosperity, Jiangsu's GDP has leapt by 6 trillion yuan over the past decade, soaring from 6.51 trillion yuan in 2014 to 12.82 trillion yuan in 2023. All of its 13 cities with subordinate districts have entered the nationwide top 100, with the total economic output of five cities exceeding 1 trillion yuan. As for people's prosperity, the per capita disposable income of residents has increased from 27,200 yuan to 52,700 yuan, and the urban-rural income gap ratio narrowed from 2.30:1 to 2.07:1, making Jiangsu one of the provinces with the narrowest urban-rural income gap. The average collective operating income per village exceeds 2.3 million yuan annually. Regarding beautiful environment, energy consumption and carbon dioxide emissions per unit of GDP have dropped by around 26.4% and 30.9%, respectively, while total economic output nearly doubled. The air quality in Jiangsu has met the Level II standard for three consecutive years, and the water quality of the Jiangsu section of the Yangtze River has remained at Level II for six years in a row. Furthermore, Taihu Lake has been safe from pollution and damage for 16 consecutive years, with its water quality and algae situation reaching the best level in 16 years. As for advanced culture, all 13 prefecture-level cities have become "National Civilized Cities." The "Zhangjiagang Experience" in creating civilized cities and the "Mazhuang Experience" in promoting rural cultural-ethical progress have exerted widespread influence. The fruits of high-quality development have nurtured a flourishing civil society in Jiangsu.

Friends from the media, the quest for a prosperous, beautiful and culturally advanced new Jiangsu reflects General Secretary Xi's profound care and high hopes. It demonstrates the theoretical and practical strength of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We will keep his instructions in mind, move forward with gratitude, and strive to be at the forefront of writing a new chapter of modernization in our quest for a modernized Jiangsu. Thank you.

Chen Wenjun: 

Thank you, Mr. Xu. The floor is now open for questions. Please identify the media outlet you represent before raising your questions.

CCTV:

Good morning, Mr. Xu. You just mentioned that during this year's "two sessions," when General Secretary Xi Jinping participated in the deliberations of the Jiangsu delegation, he emphasized that Jiangsu, as a developed province in east China and an economic powerhouse, should better leverage its strength to drive the development of the whole country. Moving forward, how will Jiangsu leverage its strength to consolidate and bolster the positive trend of economic recovery? Thank you.

Xu Kunlin:

Thank you for your question. This year, our goal is to achieve a GDP growth rate of over 5%, and we are committed to putting in more effort in practical work to aim for even better results. Last year, Jiangsu's GDP growth rate was 5.8%, 0.6 percentage point higher than the national rate. Both its economic aggregate and increment accounted for one-tenth of those of the nation, making further contributions to the development of the whole country. This year, we hope to maintain this momentum. With confidence, we will exert our utmost efforts and courageously shoulder great responsibility to seize all favorable opportunities, utilize all favorable conditions, and act in a timely manner to make greater contributions to the country's overall development. Our top priority is to seamlessly integrate the strategy of expanding domestic demand with supply-side structural reforms. With such efforts, we can better coordinate consumption, investment, and foreign trade, thereby promoting sound economic flows.

First, we will strive to expand productive investment. Investment plays a vital role in stimulating economic growth. In 2023, investment contributed 34.1% to Jiangsu's economic growth, with investment in manufacturing accounting for 44.6%, playing a significant role. Private investment accounted for 66.5%. We place great emphasis on leveraging the driving role of major projects, focusing on industrial investment projects, and fully stimulating the vitality of private investment. In the first two months of this year, Jiangsu's value-added of industries above the designated size grew by 9.6%, 2.6 percentage points higher than the national average, and its fixed assets investment rose by 5.1%, 0.9 percentage point higher than the national level. Another positive trend is that the growth rate of private investment has overcome the low-level growth that had persisted since June 2022, with a 5.6% increase in the first two months of this year, demonstrating that confidence in development and investment across the whole society is growing. China is pushing forward with large-scale equipment renewals, which, with huge investment, will stimulate new growth drivers. Based on our investigation, Jiangsu needs 900 billion yuan to update its equipment across the entire province this year. As such, we have introduced a loan interest subsidy policy for the manufacturing sector: provincial finance authorities will offer a 1-percentage-point discount on loan interest rates for manufacturing-related equipment procurement and renovation projects. At the same time, city- and county-level governments are encouraged to provide an additional 1-percentage-point discount. The first batch of loans will be subsidized with 30 billion yuan, and when this fund is used, we will offer more.

Second, we will stimulate potential consumption. Consumption is fundamental in promoting economic growth, contributing 79.8% to last year's GDP growth. Our provincial finance department has allocated a certain amount of funds for two consecutive years to host promotion activities to encourage people to buy green and energy-saving household appliances, achieving positive effects. We plan to continue the promotion this year. In the first three months of this year, we held more than 2,600 promotion events and issued vouchers and digital RMB red packets to benefit consumers. During the Spring Festival, Jiangsu's cultural and tourism market flourished. Statistics from cultural and tourism departments showed that spending in Jiangsu during the holiday accounted for 11.2% of the national total, ranking first in the country. We estimate that this year, spending on consumer goods replacements in Jiangsu will reach around 70 billion yuan. Therefore, we are moving faster to formulate policies and lists to support trade-ins for automobiles, household appliances, and home furnishings. We will also organize promotional activities in the countryside to encourage local people to buy new home appliances and automobiles. We will try to create more spending scenarios, attract more consumers, and stimulate market vitality. In the first two months of this year, the total retail sales of consumer goods increased 6.1%, 0.6 percentage point higher than the national average.

Third, we will strengthen dynamic foreign trade. Last year, Jiangsu's imports and exports fell short of expectations in the first three quarters. In response, we conducted a thorough analysis, identified the root cause, and implemented targeted measures to stabilize our international market share. As a result, we achieved positive growth for three consecutive months in the fourth quarter, registering a growth rate of 7.3%, 5.7 percentage points higher than the national average. Cross-border e-commerce development has been a weak point in Jiangsu. To address this issue, we formulated an action plan last year to promote the high-quality development of cross-border e-commerce and organized corresponding training sessions. Our efforts paid off, resulting in an annual growth of 13.4% in cross-border e-commerce. This year, we aim to cultivate more than 110 provincial-level cross-border e-commerce industrial parks and 15 cross-border e-commerce industrial belts with local features. Additionally, we have promoted the merger and restructuring of five provincially administered trading companies, including Jiangsu SOHO Holdings Group Co., Ltd. Following the restructuring, these enterprises' total import and export volume surpassed $11 billion. Currently, we are expanding our global trade layout and striving for further growth. This year, we are committed to achieving positive growth in imports and exports. In the first two months of this year, our imports and exports increased by 13.4%, 4.7 percentage points higher than the national average.

In summary, as a developed province in eastern China and one of the country's economic powerhouses, we have the confidence and capacity to shoulder more responsibilities to make greater contributions to the nation's overall development. Thank you.

Economic Daily:

It's well-known that Jiangsu province is one of the crucial parts in the integrated development of the Yangtze River Delta, and is also one of the major components of the Yangtze River Economic Belt. Moreover, Jiangsu is the place where the Belt (the Silk Road Economic Belt) and Road (the 21st Century Maritime Silk Road) converge. Given all this, what efforts has Jiangsu made to leverage its status as an economically-developed province to drive growth so as to better serve the country toward creating a new pattern of development? Thank you. 

Ma Xin:

For a long time now, Jiangsu has seized the opportunities brought about by national strategies, and given full play to the advantages of its distinctive industries. By boosting "chains" via "points" and driving "networks" via "chains," we stepped up efforts to advance integrated development of innovation chains, industrial chains and supply chains, creating more new strengths for innovation-driven growth so as to make contributions to China's overall high-quality development. We have focused our work on the construction of "one center, one base and one hub."

The construction of the "one center" aims to promote cross-regional collaboration in sci-tech innovation and industrial advancement so as to build an industrial and sci-tech innovation center with global influence. We have made coordinated efforts to ensure progress in both sci-tech innovation and industrial advancement, to achieve breakthroughs in core technologies in key fields and to facilitate the commercialization of scientific and technological advances. For example, the founding of the Jiangsu Industrial Technology Research Institute has connected scientific research with industries. It follows the idea that "make R&D an industry and take technologies as commodities," and support scientific and technological research in a new way which makes use of both fiscal allocation and investments. Over the past ten years, the institute has undertaken over 20,000 research programs entrusted by enterprises, carried out 5,000 major national and provincial-level research programs and helped build 1,350 new types of innovation enterprises. By doing so, a beneficial cycle has taken shape where development of industries gets boosted by sci-tech research while innovation in science and technology gets advanced by industrial development. 

The construction of the "one base" focuses on efforts to strengthen, consolidate and extend industrial chains, so as to build a basis for an advanced manufacturing sector with a global competitive edge. The manufacturing sector in Jiangsu has witnessed advanced development with its scale accounting for one eighth of the national total. Moreover, the province developed a complete range of industries with complete chains. Industries empowered by science and technology have developed into industrial chains, clusters and beyond. Take XCMG Hanyun Technologies as an example, it developed China's first industrial internet platform, offering services to more than 80 fields besides the equipment manufacturing sector. Thanks to digital and intelligent transformation, and network-based connectivity, the platform helps to realize the multiplier effect of industrial internet, and promote industrial development in a smart, green and integrated manner. 

The construction of the "one hub" aims to give multiple strengths of geographical position, opening-up and regional coordinated development full play so as to build a globally attractive and two-way open hub. We have made greater efforts to boost development of the province that serves as the intersection of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and support enterprises to "go global" and promote industries to "bring in foreign investments." Resource factors both domestic and from abroad will gather in Jiangsu and be allocated to Jiangsu, which will be helpful in ensuring a new stage in the opening-up reach. Jiangsu has fully integrated into and contributed to the development of the Yangtze Economic Belt and the integrated development of the Yangtze River Delta, and has strengthened synergy with other regional development strategies and major regional strategies, so as to better leverage its role in driving regional and national development. Thank you. 

Jiangsu Broadcasting Corporation:

I noticed that the industrial and technological innovation was made one of the top priorities at Jiangsu province's "new year's first meeting" this year. What efforts will Jiangsu continue to make in this regard? Thank you. 

Hu Guangjie:

We will focus on industrial sci-tech innovation and strive to achieve the target of making Jiangsu a center "that holds global influence" in a bid to ensure sci-tech innovation and industrial innovation. By doing so, we are aiming to ensure the role of Jiangsu in driving scientific and technological innovation, in leading the development of industries and in resource factors allocation, so as to serve the country's high-level self-reliance and strength in science and technology. We will step up efforts in the following aspects:

First, we will transform educational and scientific resources in a more efficient manner. Jiangsu possesses rich educational and scientific resources, and it leads the country in the number of universities, national innovative cities and national high-tech zones. We are deepening strategic cooperation with national-level scientific research institutes, such as the Chinese Academy of Sciences and the Chinese Academy of Engineering, to attract more innovative enterprises to come to Jiangsu, to grow in Jiangsu and to gain market achievements in Jiangsu. For instance, over the past 18 years, the Suzhou Institute of Nano-Tech and Nano-Bionics (SINANO) of Chinese Academy of Sciences has been taking the lead in the groundbreaking and high-quality development of the nanotechnology industry. Currently, Jiangsu's nanotechnology industry accounts for approximately 30% of the national market, and the application of nanomaterials in biomedicine and other functional material fields is leading in the country. We will ramp up efforts to serve the building of national strategic scientific and technological forces, and to establish national-level technology transfer centers in universities and a batch of proof-of-concept centers. By doing so, more scientific and technological achievements will get the opportunity to be commercialized.

Secondly, we will step up efforts to promote development of high-quality enterprises. Innovation is one of the characteristics of Jiangsu enterprises and the number of small and medium sci-tech enterprises and that of listed companies on the Science and Technology Innovation Board all rank among the top in the country. We have fostered 1,474 national-level specialized and sophisticated "little giant" firms and 241 single-product champions in manufacturing sector, with their leading products being able to shore up weak links or fill in the gaps of key areas in the industrial chains. For example, a robotics company in Nanjing has maintained its R&D investment of over 10% for years and has strengthened research in core technologies in key fields, such as the servo system and the controller. As a result, it has become China's top manufacturer of industrial robots for four consecutive years. We will continue to advance the cultivation of enterprise and support initiatives to strengthen industrial chains as well as actions to foster specialized and sophisticated businesses. We are striving to establish an "innovation matrix" which is composed of 200 leading manufacturing enterprises, 15,000 specialized and sophisticated businesses and 50,000 innovative SMEs by the end of the 14th Five-Year Plan period (2021-2025).

Thirdly, we will pool innovative talent more effectively. With approximately 1.17 million R&D professionals in Jiangsu, including 65% of the country's academicians and 40% of its top-tier talent, Jiangsu will direct its efforts towards cultivating a robust pool of basic research talent, establishing a provincial basic science center and promoting the "Basic Research Special Zone" program to implant the seeds for industrial innovation. At the same time, greater efforts will be made to advance the National Graduate College for Engineers program with high standards, appoint experts and professors to enterprises as "vice president responsible for technology development" and "industry professors," deepen integration between the industry and the education sector, foster more master craftsmen and highly-skilled talent and create a favorable environment for talent development. The goal is to encourage more "hidden talent" to emerge and showcase their abilities to the fullest in Jiangsu. Thank you.

Cover News:

Jiangsu boasts an advanced manufacturing sector and possesses favorable conditions and capabilities for developing new quality productive forces. Could you please elaborate on the next steps needed to be taken in order to make Jiangsu an important locality for the development of new quality productive forces, considering the local conditions in the province? Thank you.

Xu Kunlin:

Thank you. I'll take this question. General Secretary Xi Jinping said it is important to make Jiangsu a major locality for the development of new quality productive forces. This positioning for the province means both a significant responsibility and a glorious mission for us. We will adhere to the principle of building the new before discarding the old, taking measures in line with local conditions and giving differentiated guidance. We will focus on building an industrial science and technology innovation center with global influence to strengthen the integration between scientific and technological innovation and industrial innovation.

Firstly, we will focus on basic research. Leveraging our strengths in the concentration of universities, research institutes and talent resources, we aim to achieve groundbreaking originality, starting from ground zero. The provincial government has allocated substantial funds of 2.48 billion yuan this year to support the construction of laboratory systems and drive major basic research projects across Jiangsu. Currently, Jiangsu leads in the establishment of 35 national key laboratories, with efforts underway to exceed 40 this year. This year, we will also establish special zones in applied and basic research, work with universities like Nanjing University and Southeast University to build high-standard research centers in physics, applied mathematics, and synthetic biology and implement 40 major projects in basic research. The goal is to make groundbreaking progress from zero to one.

Secondly, we will focus on industrial upgrading. We will vigorously promote the development of strategic emerging industry clusters, striving to secure a competitive advantage in futuristic fields and sectors. Simultaneously, we will facilitate the intelligent transformation, digitization and networking of manufacturing industries to bolster the strengths of traditional sectors. For example, a traditional casting enterprise in Suzhou has achieved over 90% automation in its intelligent casting demonstration workshop through data-driven decision analysis and intelligent transformation, reducing the product customization cycle from 7 days to half a day. This leads to an increase in the per capita production efficiency by 221% and the establishment of a casting industry park to guide the green transformation of small and medium-sized traditional casting enterprises in the supply chain.

Thirdly, we will reinforce the principal position of enterprises in innovation. Last year, we formulated action plans to enhance technological innovation capabilities of enterprises as well as policy measures to support private enterprises to participate in major scientific and technological innovation. In 2023, we saw the addition of 5,000 new high-tech enterprises, bringing the total to 51,000, as well as 795 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge to make a cumulative total of 1,474 such enterprises. We are committed to introducing additional policies to accelerate the integration of industry, academia and research that is spearheaded by enterprises. Our goal is to reach a total of 55,000 high-tech enterprises and 100,000 tech SMEs this year. Effective promotion of enterprise innovation is key to boosting total factor productivity and to fostering robust new quality productive forces. Thank you.

China Daily:

Jiangsu has been a pioneer for national opening-up. What new steps will Jiangsu take to promote higher-level opening-up and open economy? Thank you.

Fang Wei:

As we often say, Jiangsu thrives on reform and opening-up. Opening-up is our defining nature. Now, our goal of high-level opening-up is to build a two-way open hub with global appeal. I want to elaborate this with three keywords.

The first keyword is "hub." Jiangsu is located at an important intersection of the Belt and Road Initiative's trade routes. To the west, our railway links directly to Europe with a total of 24 China-Europe and China-Asia railway routes in operation. To the east, our shipping routes connect to major global ports, welcoming over 26,000 ships annually. Jiangsu has emerged as a crucial transit hub for trade with Japan, South Korea, Southeast Asia, Central Asia and Europe. Jiangsu boasts one of the most diverse manufacturing sectors and one of the most comprehensive industrial chains in China, with the operating income of six industries including machinery, electronics, light industry and textiles exceeding one trillion yuan for each. Our exports of the "new trio," namely, electric vehicles, lithium-ion batteries and photovoltaic products, account for 18.4% of the country's total exports, ranking first nationwide. These exports serve as pivotal nodes in both domestic and international industrial cycles. Benefited from a huge market size, Jiangsu's trade with other parts of the country as well as the world reached nearly 10 trillion yuan. Our ports handle over 3.5 billion metric tons of cargo annually with foreign trade cargo throughput up to 600 million metric tons. The two figures account for one-fifth and one-eighth of the country's total, respectively. Therefore, Jiangsu stands as a pillar and bridge boosting the dual circulation of domestic and international markets. Leveraging these strengths, we will strive to expand domestic demand, promote further opening-up, position the province as a hub for higher-level opening-up, a hub for industry and supply chains and a hub strategically driving the dual circulation of domestic and international markets.

The second keyword is "two-way opening up." In the past, Jiangsu focused primarily on opening up eastward, dominated by exports and attracting foreign investment. The province has increased its efforts to expand opening up to both domestic and international markets, pursue opening up both eastward and westward, place equal emphasis on imports and exports, and integrate moves to bring in outside resources with the drive to go global. Currently, Jiangsu's foreign trade dependence degree, the ratio of foreign trade volume to the province's GDP, stands at 40.9%, with a significant portion coming from emerging markets. The proportions of foreign-funded enterprises and private enterprises are nearly equal. In addition, open parks have served as key platforms for Jiangsu's push for a "two-way opening up" strategy. The 158 development zones at or above the provincial level have contributed to half of the province's economic output, 80% of foreign investment, and 80% of imports and exports. For example, Kunshan, a county-level city in the province, has fully leveraged the role of its economic and technological development zone and comprehensive bonded zone to cultivate an open economy. Its foreign trade has accounted for one-seventh of the province's total. Suzhou Industrial Park, a vital window for China's reform and opening up, will mark its 30th anniversary this year. The province is accelerating efforts to deepen trials on opening up and innovation. Since the establishment of the Jiangsu Pilot Free Trade Zone five years ago, 379 independent innovations have been introduced. Efforts have been made to promote opening up and innovation throughout the biomedicine industry chain and cross-border data flow, as well as pilot programs to facilitate services for foreign nationals in the province. These efforts are expected to further enhance the park's leading role in the future.

The third keyword is "globally attractive." Jiangsu has actively fostered international relations, boasting 363 friendly cities in 67 countries and regions, ranking first nationwide. The province also stands as one of the regions in China with substantial foreign investment, hosting 43,000 foreign-invested enterprises. Over 400 Fortune Global 500 companies have invested in Jiangsu. In recent years, foreign-funded enterprises have increased their investment, expressing their faith in Jiangsu with practical actions. Jiangsu is now home to 395 regional headquarters and functional institutions, as well as 293 foreign-invested research and development centers. For example, Taicang, a county-level city in the province, hosts more than 500 German-funded enterprises and is known as a hub for German companies. Looking ahead, we will step up institutional openness and innovation to attract more global capital, technology, and talent to Jiangsu, gaining new advantages in developing an open economy at a higher level.

Yicai:

Just as Mr. Xu said, Jiangsu has a number of traditional competitive industries such as the light industry, textiles, and chemicals, but these traditional industries are facing challenges in pursuing transformation and upgrading due to a variety of factors including a large industry size. What are the next steps to advance the upgrading of these industries and to foster emerging and future industries? Thank you.

Hu Guangjie:

Thank you for the questions. Jiangsu is a major manufacturing province, with its manufacturing sector spanning all 31 major categories. It boasts six industries with a scale exceeding 1 trillion yuan and is home to 10 national advanced manufacturing clusters. Industries like integrated circuits, ship and offshore engineering equipment, and biomedicine lead the country in terms of scale. To pursue greater development, we adhere to the real economy and strive to build a modern industrial system in the province. We have been promoting the manufacturing sector's advanced, smart, and green development, thereby strengthening our core competencies.

First, we are upgrading traditional industries. We have pushed forward the upgrading of traditional industries by developing digital and green technologies. The provincial government has allocated 200 million yuan in rewards and subsidies to kickstart the renovation of outdated equipment in chemical enterprises. Next, to align with national policies on large-scale equipment renewal, we will implement a series of policies, including loan interest discounts for industrial enterprises undertaking technological upgrading projects and special loans for such projects. We will ramp up efforts to increase the proportion of advanced production capacity in traditional industries, such as steel, petrochemicals, and building materials. We are the first in the country to implement the "digital-driven, smart and internet-based transformation" initiative to upgrade the manufacturing sector. The provincial government sets up a special fund of 1.2 billion yuan annually for this purpose, and cities and counties in the province allocate 4 billion yuan for loan interest discounts to support this work. Currently, about 50,000 technological upgrading projects have been implemented. This year, our goal is to ensure that all industrial enterprises above designated size embark on digital transformation.

Second, we are developing clusters of emerging industries. Jiangsu boasts a complete industrial system and strong support capacity. For example, in the field of new energy vehicles (NEVs), production in the province has surpassed 1 million for the first time, covering the entire industrial chain from vehicles to batteries, motors, and electric controls. The production and sales of power batteries lead the nation. In Changzhou alone, power battery production encompasses 31 out of the 32 essential stages, supported by over 3,000 upstream and downstream enterprises throughout the entire industrial chain. Industrial clusters have flourished in various sectors throughout Jiangsu. We will continue to consolidate and enhance the strength of these clusters while leveraging the guiding role of funds for provincial strategic emerging industrial clusters, which total more than 100 billion yuan. Efforts will be made to develop competitive industries such as new energy, new materials, and high-end equipment into internationally competitive strategic emerging industrial clusters.

Third, we are cultivating future industries. Various sectors of Jiangsu's future industries are taking shape. Nanjing and Suzhou have been approved as national innovation centers for third-generation semiconductor technology. We are the country's first to achieve the technological breakthrough needed for mass-producing 6-inch silicon carbide power devices. The province's biomanufacturing industry generates about 15% of the sector's total national revenue. The hydrogen energy industry has developed a complete industrial chain spanning production, storage, transportation, refueling and application. In addition, we will actively explore the application of artificial intelligence in the manufacturing sector and establish an innovative system for future industries that integrates cutting-edge technologies, application scenarios and leading zones. Efforts will also be made to enhance the allocation of resources, such as finance and talent. Through these efforts, we aim to gain momentum and advantages in developing future industries. Thank you. 

Changjiang Daily:

Despite its long-standing reputation as the "land of fish and rice," Jiangsu has only half the national average of per capita arable land. How has Jiangsu managed to boost grain production and achieve stable and high yields as it advances agricultural modernization? Thank you.

Ma Xin:

It's well-known that Jiangsu boasts a strong industrial capacity, but actually, it also has a robust agricultural industry. Allow me to present two sets of figures in this regard. First, Jiangsu's total grain acreage has steadily remained above 80 million mu (about 5.3 million hectares) for 14 consecutive years. Its total grain output has consistently exceeded 70 billion jin (35 million metric tons) for 10 consecutive years, reaching a record high of 75.95 billion jin in 2023. The per unit rice yield surpassed 600 kilograms, ranking first among major rice-producing provinces. Second, Jiangsu has managed to produce 5.5% of the country's total grain with only 3.2% of the nation's arable land. It not only ensures self-sufficiency in grain for the province with the highest population density, but also results in a surplus in grain output that can be allocated to other provinces. General Secretary Xi Jinping commended this, saying, "this is rather extraordinary for a coastal province in the eastern region." To attain these achievements, we have focused our efforts on the following three aspects:

First, we have kept developing fertile cropland to ensure grain output. Jiangsu has been working to increase the amount of high-standard cropland, improving cropland quality, and enhancing its ecological environment. In the first three years of the 14th Five-Year Plan period (2021-2025), governments at all levels in Jiangsu have invested 28 billion yuan to add and rebuild 11.17 million mu of high-standard cropland. A total of 80% of Jiangsu's permanent basic cropland, totaling 42.8 million mu, has been converted into high-standard cropland. Starting this year, we will accelerate the implementation of digital monitoring for high-standard cropland, specify the total area, quality, productivity and operational details, and provide digital access to all high-standard cropland.

Second, we have highlighted the role of technology in boosting grain output. We have worked to make breakthroughs in key techniques related to seeding and agricultural machinery. The contribution of sci-tech progress to agricultural development has exceeded 72.5%, and the mechanization rate in the plowing, planting and harvesting of crops reached 87.2%, over 10 percentage points higher than the national average. Since the beginning of the 14th Five-Year Plan period (2021-2025), 14 of our rice varieties have been added to the list of super rice made by the Ministry of Agriculture and Rural Affairs, accounting for 11% of the nation's total. These improved varieties have contributed to over 45% of the increase in agricultural production.

Third, we have managed to secure the availability of farming workforce. Jiangsu has taken the lead domestically in training "new farmers." It established a specialized academy named after the well-known local agricultural expert Zhao Yafu to train "new farmers" for the new era. These farmers are not only passionate but also adept at technology, skilled in business operations and proficient in management practices. In recent years, Jiangsu has witnessed the rise of exemplary individuals such as Wei Qiao, honored as "National Outstanding Individuals in Crop Cultivation," who have served as inspiration for more "new farmers" to contribute to agricultural advancement.

Moving forward, Jiangsu will roll out a three-year action plan aimed at boosting per unit crop yield by making comprehensive enhancements in seeding, crop cultivation methods, agricultural machinery and the fertility of cropland. It will also take targeted measures to increase the output of rice, wheat and corn, and strive to realize a significant yet balanced increase in grain output. Thank you.

Xinhua Daily:

I understand that the water quality of Taihu Lake last year reached its best level since 2007. Could you please introduce Jiangsu's efforts to advance ecological conservation of Taihu Lake and its plans going forward? Thank you.

Fang Wei:

The ecological condition of Taihu Lake has attracted widespread public attention, and improving the lake is Jiangsu's due responsibility. Since 2007, the Jiangsu provincial government has invested a total of 34 billion yuan, mobilizing over 300 billion yuan from various levels of government within the province and the private sector. Nearly 8,000 lake harnessing projects have been implemented here, and the ecological environment has seen significant improvements after 15 years of efforts. Monitoring statistics in several indicators, including total phosphorus level, nitrogen density, occurrences of algal blooms, occurrences of blue-green algae and its maximum coverage, reached their best levels since 2007. For example, the lake's phosphorus level stood at 0.052 mg/L and nitrogen was 1.09 mg/L, down by 48% and 61%, respectively, compared with the year 2007. As a result, in the first half of last year, the Ministry of Ecology and Environment rated Taihu Lake as "good" for the first time. Currently, the lake is undergoing a new round of comprehensive harnessing projects. Our goal is to bring about a qualitative change in the lake's ecological environment within the next decade, transforming it into a world-class ecological and innovation lake area.

The harnessing of lakes has always been a global challenge, especially when it comes to large, shallow ones like Taihu Lake. The Taihu Lake Basin is densely populated, with numerous towns and industries. The lake area covers one-fifth of Jiangsu's total area, housing over 30% of its population and contributing to more than 40% of its economic output. Carrying out lake harnessing projects in such an area presents challenges that are unprecedented worldwide. The harnessing of Taihu Lake is not just about solving technical problems; it requires a fundamental shift in our concept of and approach to development. In the new round of lake harnessing efforts, we are taking a comprehensive approach, focusing not just on the lake itself but also on its upstream areas. Precision efforts have been implemented targeting both the water and the shores. We have learned that while issues may appear in the water, their roots often lie onshore. Therefore, we are closely monitoring 40 key rivers in the basin, implementing tailored measures to tackle pollution sources, and comprehensively transforming industries, reducing pollution and restoring the ecological environment. Last year, we took actions against and upgraded over 4,500 polluting companies in areas like Yixing in Wuxi, Gehu Lake in Changzhou, as well as Taohu Lake. This resulted in a reduction of major pollutant emissions by over 1,500 metric tons and the repurposing of more than 30,000 mu of existing land used for construction. We are prioritizing efforts to strike a balance between the prevention of additional pollution and reduction of current pollution. We are monitoring the 20,282 phosphorus-related enterprises in the basin and tracking their phosphorus emissions. The rate of urban sewage collection is increasing by 5% annually. We have also carried out ecological dredging in the lake, with 49 million cubic meters of sediment removed so far, equivalent to 70 Slender West Lakes in Yangzhou. In the new round of lake harnessing efforts, we plan to continue removing more than 30 million cubic meters of sediment from Taihu Lake and effectively reduce pollution. We will also implement measures to enhance the lake's ecological capacity and increase greenery in the area. This includes reclaiming land around the lake, building wetlands and nurturing underwater greenery, in a bid to continuously enhance the lake's ecological capacity. In addition, we will work to achieve shared prosperity among the community, the lake and the cities, enriching the charm of Jiangsu and bolstering its green development with the captivating scenery of Taihu Lake. By creating a better ecological environment and presenting a more advanced development pattern, we will offer Taihu Lake's solution to new quality productive forces.

We believe that through our sustained efforts, the governance of Taihu Lake will accumulate experience for thorough treatment of shallow lakes and long-term ecological improvement of large lakes, and set a benchmark for the governance of other lakes across the country. Thank you.

CNR:

We know that Jiangsu province, located by the sea, boasts rivers and lakes. The Grand Canal, a historic shipping route, runs through Yangzhou, and a major foreign trade port thrives in Taicang. My question is how Jiangsu province will leverage these strengths in the next phase of developing its water transportation. Thank you. 

Xu Kunlin:

Thanks, I will answer this question. When looking at a map, we find Jiangsu is the only province in China that is located by the sea and, at the same time, boasts large lakes and rivers. It has unique conditions for waterway transport. Lately, the CPC Jiangsu Provincial Committee and Jiangsu provincial government specifically held a meeting with the aim of building Jiangsu as a waterway transport hub. We launched a three-year action plan, starting this year, to build Jiangsu as a waterway transport hub with more distinctive characteristics. We will fully implement the requirements of the CPC Central Committee and the State Council to further reduce the cost of logistics in the whole of society. The cost of water transport is relatively low, roughly one-third the cost of train services and one-seventh of road transports. Moreover, it is greener. It is the right time to comprehensively develop water transport in Jiangsu with the emphasis on inland waterways and ports.  

The first is the construction of inland waterways. Jiangsu's total inland waterway mileage has reached 24,000 km, roughly one-fifth of the nation's total. Its total mileage, network density and length of high-grade waterways rank top in the country. We make the construction of Grade II waterways the top priority. Grade III waterways allow the passage of ships with a maximum load capacity of 1,000 tons, and Grade II waterways 2,000 tons. The Beijing-Hangzhou Grand Canal runs through Jiangsu from north to south. We will firstly construct the entire Jiangsu section of the Grand Canal into Grade II waterways. We will advance the coordinated development of multi-modal transport such as combining shipping with train services or road transport. We will build a high-grade waterway network featuring "two vertical and five horizontal axes," and the length of Grade II waterways and above is expected to be close to 1,100 km by 2025. Two crisscrossing arteries of Grade II waterways will be formed, with the Yangtze River running west to east and the Grand Canal north to south. And ships with a maximum load capacity of 2,000 tons will be able to pass smoothly through the Jiangsu section of the Grand Canal 24 hours a day. When we first started to comprehensively develop water transport in Jiangsu, inland cities such as Huai'an and Suqian have seen benefits. We are able to expand our industrial development from the coastal areas and areas along rivers to the inland regions. A large number of industrial projects have been launched in inland regions. A total of 12 projects with an investment of 10 billion yuan are under construction in Huai'an alone. 

The second is the construction of ports along Yangtze River and inland ports. The Jiangsu section of the Yangtze River assumes more than 70% of the cargo volume of the river's total, which makes these waterways golden waterways and diamond sailing areas in the true sense. As the first port along the Yangtze River, Taicang Port handled 8.04 million TEUs last year, taking a lead among ports along the river for the fourteenth straight year. The previously small river port has become a big hub. We will seize the opportunity of strategy for promoting integrated development of the Yangtze River Delta, advance the integrated development of Shanghai Port and Taicang Port and the coordination of Taicang Port with Ningbo Port, in order to increase the number of TEUs handled by Taicang Port to 10 million as soon as possible and promote its transformation from a logistic port to a goods trade port. We will build the port into a major north wing of the Shanghai international shipping center and a demonstration of multi-modal transport in the Yangtze River Delta.  

The third is the construction of coastal ports. Lianyungang Port is the only one in the province boasting a 300,000-ton-class waterway and one of the few in China that has a terminal for 400,000-ton-class ore carriers. We vigorously advanced this port's cooperation with Shanghai Port. In 2023, over 100,000 TEUs were transported by the waterway between Liangyungang Port and Shanghai Port, an increase of almost 50%. Lianyungang Port has cooperated with land ports of seven provinces in central and western China, serving as their outlet to the sea, and a total of 806 trains departed or arrived at the port along the China-Europe Railway Express last year, increasing by 10.7%. We are boosting unmanned operations, digital empowerment and further facilitating customs clearance, constantly reinforcing services and support for central and western China and regions along land bridges. Central Asia places a high value on Lianyungang Port. Last year, when I visited Central Asia and met their leaders, they told me that they had visited Jiangsu province five times and every time they came to Lianyungang. Thanks.

Chen Wenjun:

Because of time limitations, we will now take the last two questions.

Beijing Youth Daily:

My question is related to people's livelihood, and employment is the most basic component of people's wellbeing. Now is the peak time of job hunting for fresh college graduates. So, what measures has Jiangsu rolled out to attract college graduates to work in the province? Thanks. 

Fang Wei:

College graduates are a valuable human resource. This year, the number of college graduates in Jiangsu is expected to exceed 730,000. The province has always advocated literacy and education, and values talent very much. We always spare no effort to attract college graduates, specifically in three aspects.

The first is the number of job opportunities. Since last year, we have released 9.5 million jobs on public employment service platforms. Last year, the province created 1.38 million new urban jobs, accounting for one-tenth of the nation's total. The high number of jobs has paved the way for college graduates' employment in Jiangsu. We will launch more job fairs specifically targeted toward college graduates and will organize both online and offline recruitment activities spanning all categories and levels, delivering Jiangsu's job opportunities to college graduates.  

The second is the increment of supplies. In recent years, Jiangsu has been actively expanding the employment capacity of traditional industries while vigorously cultivating advanced industrial clusters. The development of emerging strategic industries and forward-looking planning for future industries, such as software and information services in Nanjing, high-end manufacturing in Suzhou, biomedicine in Suzhou, Taizhou and Lianyungang, Wuxi's Internet of Things and integrated circuits and new energy in Changzhou, have created numerous job positions with high technical content and high added value in human resources. In the past year alone, more than 1 million high-quality jobs were created and made available, enabling graduates seeking employment in Jiangsu to find suitable positions where they could apply what they have learned.

The third is the quality of services. For university graduates who have just left school and stepped into society, there is a greater need for policy support and services that are understanding at this time. Various places in Jiangsu have successively introduced sincere and benevolent policy packages, such as youth talent stations, job interview subsidies, living allowances and talent housing vouchers. We will deepen the alignment with the needs of industries and enterprises, continuously optimize support policies and build a full-cycle growth ladder for graduates. We will further increase the supply of education, housing and healthcare, ensuring that graduates can stay and integrate smoothly into Jiangsu.

Taking this opportunity, we hereby extend an invitation to university graduates nationwide, warmly welcoming everyone to choose Jiangsu and showcase their talents in building a "strong, rich, beautiful and high-quality" new Jiangsu. Thank you. 

21st Century Business Herald under Southern Finance Omnimedia:

We have noticed that Jiangsu has introduced a series of policy measures in recent years to optimize the business environment from various aspects such as market supervision and government services. Could you please tell us what other reform measures will Jiangsu take next to continue building a first-class business environment?

Xu Kunlin:

Thank you, I'll take this question. As a leading region and economic powerhouse in the eastern part of China, Jiangsu boasts enormous industrial technology strength, abundant scientific and educational resources and a vast market scale. It has been rated as the province with the best business environment for five consecutive years. A strong business environment requires a comprehensive approach, and having a well-supported and complete industrial ecosystem is crucial. Jiangsu's manufacturing sector covers all 31 major categories with its added value accounting for 14.1% of the country's total and about 4% of the global total. This makes it one of the provinces with the most diverse manufacturing categories, the most complete industrial chains and the most comprehensive supporting facilities. Considering power batteries as an example, Jiangsu has achieved full coverage of the industrial chain. During my visits to many representatives emphasized that if you invest in Jiangsu, 70% of the supporting facilities can be completed locally. There is an ample supply of capital. Last year, Jiangsu added 2.93 trillion yuan in domestic and foreign currency loans, ranking first in the country for two consecutive years with the financial sector's comprehensive strength being among the top in the nation. This year, the provincial and city governments' finances, along with state-owned assets, will jointly establish an emerging strategic industries cluster fund exceeding 100 billion yuan, which will soon be allocated. Jiangsu is rich in talent resources, boasting 168 universities, 2.62 million students and more than 1.17 million R&D workforce. The total number of talent resources exceeds 14 million. We have an excellent cultural environment with continuously improving levels of basic public services such as education, healthcare and elder care. We are promoting the more quality medical resources being made available and weighted toward the community level, enhancing the provision of top-notch educational resources and constructing more quality schools and hospitals close to people's homes. There is no such thing as a perfect business environment. It is a continuous improvement process. We will advance the development of the "five aspects" - policy, market, government service, rule of law, and culture - in an integrated manner, striving to create a "paradise for entrepreneurs and a heaven for innovators."

On the one hand, we are creating a policy environment that delivers a stronger sense of gain. At the beginning of last year, Jiangsu was among the first in the country to introduce 42 policies aimed at promoting an overall improvement in economic operation, which were followed by 28 incremental measures in the middle of the year. We employed these measures to alleviate the burdens and difficulties faced by businesses, resulting in an accumulated total of 218.5 billion yuan in new tax cuts, fee reductions and delayed fee payments. This year, we will push for more government services to be accessible online in a "one-stop" manner, and for more beneficial policies for enterprises to be available "without application, for immediate and direct benefit." The subsidized interest for large-scale equipment upgrades mentioned earlier is an example; we are collaborating with banks so that enterprises don't need to apply and the banks instead will directly implement the policy. At the same time, we are committed to resolving past issues and maintaining credibility and promises. By deeply understanding and trusting enterprises, we commit to fulfilling our commitments to them by "keeping our word" and "turning words into actions."

On the other hand, we are working to create a more international investment environment. Last year, Jiangsu's actual use of foreign capital ranked first in the country, and its shares in January and February of this year has further increased. We have developed 18 high-value measures to ensure national treatment for foreign-invested enterprises and to enhance the convenience of residency and stays for foreign employees of these enterprises. Wuxi took the lead in "system integration" and introduced 10 convenient measures for foreigners coming to Wuxi, creating six convenient scenarios for entry and exit, payments, consumption, business and work, residence and travel, and education and medical care. We will also continue to align with high-standard international economic and trade rules and thoroughly implement Jiangsu province's regulations on promoting and protecting foreign investment, making Jiangsu one of the most appealing and competitive investment destinations globally.

Lastly, I would also like to invite each of you to visit Jiangsu and see it for yourself. This will help you learn more about it and promote it. Thank you all.

Chen Wenjun:

Thank you, Mr. Xu and other three speakers. Thank you to all the journalists in attendance. Today's press conference is now concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Zhou Jing, Liu Qiang, Guo Yiming, Zhang Junmian, Cui Can, Yuan Fang, Zhu Bochen, Wang Qian, Wang Yanfang, Liu Sitong, Zhang Rui, Li Huiru, Ma Yujia, Gong Yingchun, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Wang Weizhong, deputy secretary of the Communist Party of China (CPC) Guangdong Provincial Committee and governor of Guangdong province

Mr. Zhang Hu, member of the Standing Committee of the CPC Guangdong Provincial Committee and executive deputy governor of Guangdong province

Mr. Ai Xuefeng, director general of the Guangdong Provincial Development and Reform Commission and director general of the Guangdong Provincial Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area

Mr. Tu Gaokun, director general of the Department of Industry and Information Technology of Guangdong Province

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

March 29, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the fourth press conference in the series "Promoting High-Quality Development." Today, we are pleased to be joined by Mr. Wang Weizhong, deputy secretary of the Communist Party of China (CPC) Guangdong Provincial Committee and governor of Guangdong province, to brief you on the situation and answer your questions. The topic he will brief you on is "Guangdong's dedication to advancing high-quality development and spearheading Chinese modernization." Also present at today's press conference are Mr. Zhang Hu, member of the Standing Committee of the CPC Guangdong Provincial Committee and executive deputy governor of Guangdong province; Mr. Ai Xuefeng, director general of the Guangdong Provincial Development and Reform Commission and director general of the Guangdong Provincial Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area; and Mr. Tu Gaokun, director general of the Department of Industry and Information Technology of Guangdong Province.

Now, I will give the floor to Mr. Wang for his introduction.

Wang Weizhong:

Good morning, everyone. I am very pleased to brief you on Guangdong's promotion of high-quality development. First of all, I would like to express my heartfelt thanks for your long-term interest in and support for the economic and social development of Guangdong.

General Secretary Xi Jinping profoundly pointed out that as Guangdong takes the lead in reform and development, it will feel a deeper necessity and urgency to promote high-quality development. He earnestly hopes that Guangdong will focus its efforts on advancing high-quality development and play a demonstrative and leading role. Last April, during his fifth visit to Guangdong since the 18th CPC National Congress, the general secretary instructed Guangdong to spearhead Chinese modernization by focusing on high-quality development as the primary task and constructing a new development pattern as the strategic mission. This is to make the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) a strategic pivot for the new development pattern, a demonstration area for high-quality development and a leading area for Chinese modernization, which we summarize as "one pivot, two areas."

The CPC Guangdong Provincial Committee has fully implemented the guiding principles of the 20th CPC National Congress and the important speeches and instructions made by General Secretary Xi Jinping during his inspections of Guangdong, making specific deployments for the "1310" scheme, which entails anchoring the one overarching goal of leading the path forward, unleashing the three major driving forces of reform, opening up and innovation, and striving to achieve breakthroughs in 10 aspects. For two consecutive years, we have held the Guangdong High-quality Development Conference on the first working day after the Spring Festival, seizing the major opportunities presented by a new round of technological revolution and industrial transformation. We aim to accelerate the mutual promotion of dual strengths in industry and technology, develop new quality productive forces as Guangdong's strategic move and long-term plan, and strive to create a new Guangdong.

First, we must resolutely shoulder the responsibility of being a major economic province by truly taking on the main burden and strengthening the foundation for high-quality development. Guangdong is a major economic province, a populous province and a leading foreign trade province. Last year, our GDP reached 13.57 trillion yuan, accounting for one-tenth of the national total and ranking first in the country for 35 consecutive years. The total number of business entities in Guangdong exceeded 18 million, including 7.8 million enterprises, which accounts for one-seventh of the national total. We have issued policies and measures in a "fast, accurate and practical" manner to stabilize expectations, growth and employment. We are focused on expanding investment, promoting consumption, stabilizing foreign trade and striving to achieve the economic growth target of 5% for 2024.

Second, we aim to explore the building of the Guangdong-Hong Kong-Macao GBA as a lever to fully deepen reform and opening-up across the province, creating an important source of momentum for high-quality development. Since the release of the Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area five years ago, the central government has granted Guangdong significant opportunities, including the development of the GBA, the Shenzhen pilot demonstration zone, and key platforms such as Hengqin, Qianhai, Nansha and Hetao. Centered around the new positioning of "one pivot, two areas," we are working closely with Hong Kong and Macao to accelerate the construction of a world-class bay area, aiming to create the best-developed bay area. On March 1, the Hengqin Cooperation Zone started closed-loop operation, marking a crucial step toward the integration of Hengqin and Macao. The Shenzhen-Zhongshan Bridge and the Huangmao Cross-sea Channel are set to be completed and open this year, enabling one-hour connectivity between the major cities of the GBA.

Third, we are establishing a critical front for new quality productive forces, injecting strong vitality into high-quality development. Guangdong has 71,000 industrial enterprises above designated size and 75,000 high-tech enterprises, both of which rank first in the country. Guangdong also ranks first nationwide in all the categories of number of Patent Cooperation Treaty (PCT) international patent applications, regional development index of intellectual property rights (IPRs), volume of valid registered trademarks, and volume of valid invention patents. The region's innovation capacity has been the highest in the country for seven consecutive years. We adhere to the principle that the real economy is the foundation and manufacturing is the key, consolidating eight 1-trillion-yuan-level industrial clusters including new generation electronic information, green petrochemicals, smart home appliances, advanced materials, modern light industry and textiles, software and information services, modern agriculture and food, and automobiles. We are also accelerating the development of integrated circuits, new energy storage, new energy vehicles, the low-altitude economy and artificial intelligence (AI) into 500-billion-yuan-level and 1-trillion-yuan-level industrial clusters. We are speeding up the construction of a "basic research plus technological breakthrough plus results commercialization plus sci-tech finance plus talent support" full-process innovation chain, with the aim of building a globally influential industrial sci-tech innovation center.

Fourth, we have made utmost efforts to implement the High-quality Development Project for Counties, Towns and Villages (hereinafter, "High-quality Development Project") to address the unbalanced and insufficient development between urban and rural areas. Drawing on the experience of the Green Rural Revival Program in Zhejiang province, we have proposed the High-quality Development Project and set clear goals: initiating the project within a year, achieving preliminary results within three years, making significant changes within five years, and undergoing fundamental transformation within 10 years. We have remained committed to comprehensively expanding county economies, upgrading urban infrastructure, and promoting rural revitalization in an all-round manner. Additionally, we have facilitated the orderly transfer of industries both domestically and internationally, particularly from the Pearl River Delta to the east, west and north of Guangdong province. Our goal is to turn shortcomings into potential.

Fifth, we have made concerted efforts to promote ecological construction in Guangdong province, laying a solid foundation for high-quality development. Last year the province enjoyed good air quality on 94.8% of days, and its forest coverage has reached 53%. While we have made progress in the province's green transformation, we are now focused on making it more beautiful. We have firmly upheld the principle that lucid waters and lush mountains are invaluable assets. To achieve this, we have launched six major actions for ecological construction, focused on optimizing forest composition and structure, and actively and prudently worked toward peaking carbon dioxide emissions and achieving carbon neutrality. These efforts are aimed at creating bluer skies, greener lands and clearer waters in the province.

Sixth, we have remained committed to a people-centered approach and ensured that the benefits of high-quality development are shared by all in the province. We have launched 10 livelihood improvement projects, enhanced public service and social security systems, and worked hard to resolve the pressing difficulties and problems that concern people the most, with the aim of achieving common prosperity. The number of employed people in the province stands at around 70 million, accounting for one-tenth of the national total. Among them, 43.65 million are migrant workers, with an additional 1.17 million added last year. We will make every effort to ensure the employment of key groups and strive to make significant contributions. 

Friends from the media, spring has arrived in the Lingnan area and Guangdong is bustling with opportunities. We will make promoting Chinese modernization our utmost political task and uphold high-quality development as a fundamental principle of the new era. Our goal is to welcome the 75th anniversary of the founding of the People's Republic of China with outstanding achievements. We also invite you to visit Guangdong and report on its charming, vibrant, dynamic and innovative features. Guangdong, nestled between mountains and the sea, boasts stunning landscapes, numerous delicacies and a healthy and livable environment. 

That's all for my introduction. We are willing to answer your questions. Thank you. 

Chen Wenjun:

Thank you, Mr. Wang. Now the floor is open for questions. Please identify the news agency you represent before asking your questions. 

Beijing Youth Daily:

We noted that this year's government work report set the GDP growth target at around 5%. Mr. Wang just mentioned that major economic provinces should shoulder their responsibility by taking on the main burden. How will Guangdong assume this responsibility and contribute more to national development? Thank you.

Wang Weizhong:

Thank you for your question. As one of the major economic provinces, Guangdong must bear greater responsibilities, leading the way in economic development and making more contributions to the nation. Our target this year is 5%, and we are confident in achieving it. Our confidence stems from decisions made by the leadership of the CPC Central Committee. The Central Committee set the goals of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We have pursued economic development and high-quality development as our central task and redoubled our efforts to promote project investments. Last year, the province's industrial investment grew by 22.2%, maintaining double-digit growth for 36 consecutive months. Investment in technological upgrades grew by 22.4%, the highest in the past six years. This year, Guangdong has allocated 1 trillion yuan for key provincial construction projects and over 320 billion yuan for industrial projects. The province is also accelerating the construction of 55 major manufacturing projects with investments exceeding 5 billion yuan each, and planning a large number of high-quality projects for future implementation. In 2023, we encouraged over 9,300 enterprises to undergo technological transformations and more than 5,000 industrial enterprises above designated size to undergo digital transformation. Building on last year's success, we aim to promote technological upgrades for over 10,000 industrial enterprises and digital transformation for 9,200 industrial enterprises above designated size. Our confidence comes from the vibrant market and a surge in popularity. Last year, the number of market entities in Guangdong increased by 1.728 million, reaching 18 million. Among them, the number of self-employed individuals rose by 1.11 million, exceeding 10 million, and the total number of enterprises reached 7.8 million, accounting for one-seventh of the national total. In the first two months of this year, an additional 330,000 market entities were established, including 182,000 self-employed individuals and 148,000 enterprises. With a population exceeding 150 million, Guangdong received 777 million tourists last year, generating tourism revenue of over 950 billion yuan, ranking first in the country. During this year's Spring Festival holiday, Guangdong received 76.07 million visitors, up 68%, with the revenue of the province's tourism market growing by 160% to 69.4 billion yuan. Guangdong is experiencing a surge in popularity. From January to February, Guangdong's economy showed a momentum of rebound and improvement, with its industrial sector, consumption, investment and total imports and exports rising by 10.6%, 6.1%, 4.3% and 24.9%, respectively.

We will seize every favorable opportunity, take advantage of all favorable conditions and work as much as possible to consolidate and build momentum for economic recovery and growth. In terms of serving enterprises, Guangdong helped them save an additional 200 billion yuan last year. In 2024, the province will launch a number of new enterprise-friendly policies in order to reinforce the principal position of enterprises in innovation and to reduce the costs of logistics, bringing more tangible benefits to enterprises. The CPC Central Committee has deployed a new round of large-scale equipment upgrades and trade-ins with consumer goods, which is quite in line with conditions in Guangdong. Guangdong is both a major manufacturing and consumption province. We are stepping up efforts to formulate implementation plans and supportive policies. We will adhere to the market-based approach, promote government guidance, increase fiscal, tax, financial and production support, and promote the advancement and transformation of equipment in seven major fields, with a focus on saving energy and reducing carbon to ultra-low emissions, safely manufacturing products, and promoting digital transformation and intelligent upgrades. We will carry out trade-ins of consumer goods including automobiles, household appliances and home decorations in order to deliver more tangible benefits from policy dividends. We will make a good start in the first quarter, achieve good results in the first half of the year and deliver an excellent performance throughout the year. Thank you.

CRNTT:

Five years ago, the Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area was released. What results have been achieved in the past five years? What other measures will be taken to promote the construction of the GBA? Thank you.

Zhang Hu:

Thank you for your questions and your attention to the construction of the Guangdong-Hong Kong-Macao GBA. Over the past five years, Guangdong has always kept in mind General Secretary Xi Jinping's earnest expectations, insisted on taking the Guangdong-Hong Kong-Macao GBA as our key work, and collaborated with Hong Kong and Macao to actively promote its construction, which has achieved remarkable results. The achievements are mainly apparent in five areas:

First, the comprehensive economic strength has reached a new level. The combined regional GDP of the GBA increased from 10.8 trillion yuan in 2018 to over 14 trillion yuan in 2023, contributing to one-ninth of China's GDP within less than 0.6% of the country's landmass. The real economy has seen better development. Guangdong now owns eight 1-trillion-yuan industrial clusters in areas such as new generation electronic information and green petrochemicals.

Second, our capacity for scientific and technological innovation continues to grow. We have made comprehensive efforts to build the GBA into an international sci-tech innovation center, a comprehensive national science center, and a magnet for high-level professionals. National major projects such as the Pengcheng Laboratory and the Guangzhou Laboratory have been established in the area. At present, there are 75,000 national-level high-tech enterprises in this area, including a number of leading technology companies such as Huawei, Tencent, BYD, Midea and Gree. The Shenzhen-Hong Kong-Guangzhou technology cluster has ranked second in the world for four consecutive years. In terms of comprehensive capacity of regional innovation, Guangdong has ranked first nationwide for seven consecutive years.

Third, the internal and external communication networks have been improved at a fast pace. Guangdong's high-speed railway has 2,838 kilometers of operation mileage, and the public transit system in the GBA continues to improve. The Hong Kong-Zhuhai-Macao Bridge (HZMB) has been completed and is functional, so travel time between major cities in the GBA is now at most an hour. The annual passenger throughput within the GBA airports exceeds 280 million, and the annual container throughput of the local ports exceeds 85 million TEUs. Its shipping network covers major cities and key trade ports worldwide.

Fourth, the construction of major cooperation platforms has been accelerated. The tax policy of "opening up the first line and controlling the second line" in Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Zhuhai city has been implemented in a smooth and orderly fashion since it took effect on March 1 of this year. (The "first line" refers to the border between Hengqin and the Macao Special Administrative Region and the "second line" refers to the border between Hengqin and other parts of the Chinese mainland.) Tax policy dividends benefit Guangdong and Macao; Qianhai in Shenzhen has introduced China's first investor protection regulations and has actively promoted cooperation with Hong Kong in modern service industries such as finance and law; the three exchanges — the Guangzhou Futures Exchange, the Guangzhou Shipping Exchange, and the Canton Data Exchange — have been established in Nansha. A comprehensive service base has been inaugurated and in operation to help Chinese companies "go global." The Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone is gaining momentum.

Fifth, market integration is gradually improving. A number of landmark projects such as the "Hong Kong and Macao Medicine and Equipment Connect" policy, the "Bay Area Social Security Service" program, the Cross-boundary Wealth Management Connect Scheme, and Cross-border Public Services have been implemented. Since the implementation of the "Northbound Travel for Macau Vehicles" and "Northbound Travel for Hong Kong Vehicles" schemes, the number of vehicles solely registered in Hong Kong and Macao, or so-called single-plated vehicles, which pass through the Zhuhai Highway port of the HZMB, has exceeded 2 million. The three places jointly announced a total of 183 GBA standards covering food, traditional Chinese medicine, elderly care and other fields.

Going forward, we will follow the new positioning of "one pivot, two areas" given to the GBA by General Secretary Xi Jinping and work with Hong Kong and Macao to actively build the GBA into a world-class bay area and one of the best developed bay areas in the world.

That's all from me for your questions. Thank you.

Le Label Diplomatique: 

Guangdong is a major province with foreign investments and trade. It plays an important role in China's opening up process. My question is: As a pioneer province, what measure will Guangdong take to further deepen international cooperation, including with Africa, to attract foreign investments and promote foreign trade development?

Wang Weizhong:

Thank you for your question. I will answer this question. As is widely known, Guangdong is a powerhouse in foreign trade, boasting a foreign trade-to-GDP ratio of 64%. Notably, Dongguan's ratio stands at 124% and Shenzhen's at 113%. Foreign trade and investment are pivotal in the Guangdong's development. Since the launch of reform and opening-up in 1978, Guangdong has spearheaded the processing trades including accepting customers' materials for processing, assembling parts supplied by clients, processing with supplied samples, and compensation trade. The province has also actively attracted foreign capital, advanced technology and management experience. This proactive approach has swiftly integrated the province into the international division of labor. In just over 40 years, Guangdong has evolved from a comparatively agrarian province to one of China's most economically vibrant and open regions. Last year alone, its foreign trade volume reached 8.3 trillion yuan with accumulated foreign investment exceeding $578 billion, accounting for one-fifth of the nation's total. Remarkably, foreign investment utilization has remained stable at over $20 billion for nine consecutive years, with more than 350 Fortune Global 500 companies having a presence across Guangdong.

In recent years, facing a complicated and challenging international environment, we have resolutely implemented the decisions and arrangements of the CPC Central Committee, vigorously promoted foreign investment and trade and issued a series of policies to stabilize foreign trade and investment. As a result, the scale and proportion of imports and exports, and the actual utilization of foreign investment, have remained stable. Particularly, despite various pressures last year, our imports and exports reached 8.3 trillion yuan, growing against the odds by 0.3%. Among the growth, cross-border e-commerce imports and exports reached 843.3 billion yuan, a growth of 25.2%, accounting for roughly 40% of the national total. Leveraging Guangdong's comprehensive industrial support, sound business environment and vast market potential, we have attracted investments exceeding $10 billion from companies like BASF, ExxonMobil and CNOOC Shell. CNOOC Shell's Phase III project commenced construction last year, while ExxonMobil's Phase I is set to commence production by the end of this year, and BASF's integrated project is scheduled for completion next year. Many foreign-funded enterprises have established research and development centers in Guangdong. We have held the Guangdong-Hong Kong-Macao Greater Bay Area Global Investment Promotion Conference for two consecutive years and conducted investment attraction events overseas. Last year, we held the Guangdong-Hong Kong-Macao Greater Bay Area and Europe Economic and Trade Cooperation Conference in Germany, achieving significant results. Over the past two years, we have signed a cumulative total of 1,700 projects during two investment promotion conferences. The total investment of those projects reached 4.7 trillion yuan. In January and February of this year, Guangdong established 2,982 new foreign-funded enterprises, a growth of 38.1%, demonstrating that Guangdong is the preferred and optimal destination for foreign investment.

Next, we will firmly pursue higher-standard opening-up, leveraging the synergies of the "five international linkages," which are foreign trade, investment, outsourcing, economic cooperation and talent introduction, in order to fully support the growth of foreign trade and investment.

First, we aim to enhance the quality and effectiveness of foreign trade. We will implement policies to stabilize foreign trade and promote growth, expand trade in intermediate goods, nurture new export growth drivers, such as the "new trio," namely, electric vehicles, lithium-ion batteries, and photovoltaic products, stabilize and enhance processing trade, promote the development of new forms of foreign trade and consolidate and expand diverse international markets. Africa is a significant trading partner with the total trade volume exceeding 270 billion yuan last year, marking a growth of 3.9% and accounting for 13.7% of the trade between China and Africa. Products such as mobile phones from Shenzhen, furniture from Foshan and lighting fixtures from Zhongshan are highly favored by African consumers. Notably, the mobile phone produced by Transsion Holdings are tailored specifically for the African market. I have personally visited this company, witnessing its widespread popularity among African consumers.

Second, we will promote coordinated development of domestic and foreign trade. We will ensure that products sold domestically are produced on the same production lines, meet the same standards, and are of the same quality as exported products, facilitating smooth transitions for businesses between domestic and international markets. This endeavor aims to amplify the reach of Guangdong's innovative technologies, high-quality products and branded services across the country.

Third, we will foster a world-class business environment that is market-oriented, law-based and internationalized, and advance institutional opening up. This includes fully implementing the negative list for foreign investment and service mechanisms for major foreign investment projects like the "through train " and "one-stop" service. Through more efficient and high-quality services, we aim to build the "Invest in Guangdong" brand. Next month, we will host the 135th session of the China Import and Export Fair, also known as the Canton Fair. We sincerely welcome merchants and friends from home and abroad to come to Guangzhou and participate in this event, achieving mutual cooperation and success.

CNBC:

Guangdong, known for its robust manufacturing and export sectors, is striving for high-quality development. Could you provide insights into the status of both high-end manufacturing within the province and exports from the province? What proportion do they constitute in overall local development? Additionally, what are the province's plans for advancing high-end manufacturing, particularly in preventing inefficient investments? Thank you. 

Tu Gaokun:

Thank you for your questions. Guangdong steadfastly upholds the real economy as its foundation with manufacturing as its backbone. The local manufacturing industry is both our "pillar" and "cornerstone." As a globally significant manufacturing hub, Guangdong's manufacturing enterprises of designated size achieved a total operating income of 17 trillion yuan in 2023, and value-added of the manufacturing sector accounted for 32.7% of GDP. When combined with manufacturing-related productive service industries, this figure exceeded 60%. Notably, in the first two months of this year, Guangdong's manufacturing enterprises of designated size saw a robust 10.8% year-on-year increase in value-added, signaling a clear trajectory toward more steady growth.

Guangdong, as a leader in foreign trade and investment, has maintained strong connections with global markets and industrial and supply chains which are characterized by mutual interdependence. Manufacturing of goods accounts for 95% of Guangdong's total import and export volume, with exports reaching nearly 5.4 trillion yuan in 2023, two-thirds of which are from the equipment manufacturing sector. In the first two months of this year, exports amounted to 878 billion yuan, a remarkable 27.2% year-on-year increase. Through collaborative partnerships with numerous foreign counterparts, Guangdong's manufacturing industry actively contributes to globalization, fostering mutual benefits and win-win outcomes.

We have always believed that there is no such thing as a "sunset industry," only "sunset businesses." Whether it is traditional industries that cater to basic necessities of life, emerging industries that explore new frontiers or future industries with their boundless possibilities, they are all essential for social development and equally important. Guangdong has been steering manufacturing toward the mid- and high-end in global value chains in recent years. We continue to promote industrial innovation through technological innovation, making breakthroughs in a series of key core technologies and products to meet the increasingly sophisticated demands of domestic and international markets. Guangdong is home to five state-level manufacturing innovation centers, including those focused on new energy storage, which will play an even greater role in the future. We continue to build the foundation of the real economy through industrial clusters and support the comprehensive development of 10 strategic pillar industries, 10 strategic emerging industries, and five future industries to create new growth engines such as biomanufacturing, commercial aviation and the low-altitude economy. We continue to empower the manufacturing industry with digital intelligence, and guide the digital transformation of the manufacturing industry from "point" to "chain" and expanding to "network," promoting artificial intelligence to empower new industrialization, accelerating the green transformation of production methods, and forming green production.

In this process, we are committed to encouraging all types of advanced and high-quality production factors to flow smoothly into high-efficiency, high-quality manufacturing fields and improving total factor productivity. At the same time, we are willing to continue working with our partners to provide diverse opportunities and choices for global investors and consumers. Thank you.

CMG: 

Guangdong is well-known as a national innovation hub and also a province that is home to a large number of market entities. How does Guangdong guide and give full play to the main role of enterprises in innovation? And how is it accelerating the aggregation of innovative elements and the transformation of innovation results?

Ai Xuefeng:

Thank you for your questions. Since the implementation of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area five years ago, Guangdong has achieved significant results in driving development through innovation. In this process, enterprises have played the main role, which is clearly reflected in the four figures of "90%" coming from enterprises, namely approximately 90% of R&D institutions, 90% of R&D personnel, 90% of R&D investment, and 90% of patent applications and approvals. Guangdong will continue to empower enterprises to play a leading role in innovation under the new circumstances, promoting leading technology enterprises to transform into ecological-oriented and platform-leading enterprises, cultivating a group of innovative "chain-leader" enterprises, strengthening specialized, refined, distinctive and new "little giant" enterprises, and accelerating the incubation of a batch of "new species" enterprises in new fields and new tracks to form a good model of close cooperation between upstream and downstream, and integration of innovation among small, medium and large enterprises.

Therefore, we will involve more enterprises in government decision-making on innovation. We will improve the mechanism of demand-oriented science and technology projects, and improve the normal communication mechanism with science and technology enterprises. We will urge enterprises to act as the "originators," "responders" and "evaluators" of technological innovation, and ensure that "those who can hear the sound of gunfire direct the operations on the ground."

We will allocate more innovation resources toward enterprises. We will promote greater openness and the sharing of major scientific and technological infrastructure with enterprises, as well as facilitating the flow of high-level research personnel into enterprises. We will vigorously develop the technology service industry, particularly by establishing a financing system that covers the entire lifecycle of funding needs for technology enterprises.

We will have enterprises take the leading role in tackling core technological challenges. We will increase the proportion of enterprise-led projects in provincial key R&D plans and major special projects to over 80%, give enterprises the right to formulate their own technical directions, and support enterprises as "contractors" to organize and carry out technical research.

We will empower enterprises to accelerate the transformation of scientific and technological achievements. Focusing on the needs of enterprises in the fields of integrated circuits, new displays, new energy storage, new materials, biomedicine and other fields, we will accelerate the construction of pilot platforms aimed at promoting the engineering and industrialization of cutting-edge technologies to facilitate the implementation and transformation of more scientific and technological achievements in Guangdong.

We will encourage innovative enterprises in the reform of science and technology systems and mechanisms. We will implement the policy of super deduction of R&D expenses, promote the demonstration application of scientific and technological achievements of a number of enterprises, accelerate the opening of application scenarios to small and medium-sized enterprises (SMEs) focused on technology, and create an ecosystem conducive to enterprise innovation. Thank you.

Hong Kong Bauhinia Magazine: 

The topic of business environment reform is of great concern to everyone. How will Guangdong further optimize the business environment and create good conditions for enterprise development? Thank you.

Zhang Hu: 

Thank you for your question, and thank you for your interest in Guangdong's business environment. In recent years, we have resolutely implemented the decisions and plans of General Secretary Xi Jinping and the CPC Central Committee, deepening reform of the business environment in key areas and at crucial links, and have achieved significant results. Guangdong has been recognized as the province with China's best reputation for business environment for four consecutive years, according to a report by the All-China Federation of Industry and Commerce (ACFIC) that evaluated the business environment of 10,000 private enterprises. The provincial government has also led the nation for the past five years in integrated administrative service capabilities. At present, the number of market entities in the province exceeds 18 million, of which 7.8 million are enterprises, accounting for one-seventh of the country's total.

Next, we will focus on the concerns of enterprises and the public, optimize the four environments and actively foster a world-class business environment that is market-oriented, law-based and internationalized. 

First, we will foster a centralized, efficient, competitive and orderly market environment. We will quicken our steps to serve and integrate into the unified national market, fully implement the policy of "entry unless on the list" and treat business ownerships of all types equally. We will further implement special measures to broaden market access in Shenzhen, Hengqin and Nansha, and take the lead in broadening market access in an orderly manner in the fields of biomedicine, education and culture, green and low-carbon development and applications of advanced technologies. 

Second, we will foster a well-regulated, convenient, open and transparent environment of government services. We have launched "integrated online services" and "one-stop processing", achieving a 94.07% online handling rate for provincial government services, with 92.63% of these services requiring no physical visits. Next, we will continue to deepen the reform of administrative review and approval procedures, improve the mechanism for regular communication between government and business, and introduce more preferential policies to provide one-stop life-cycle services for enterprises. 

Third, we will foster a fair and just legal environment conducive to healthy development. We will quicken our steps to study and introduce regulations on promoting high-quality development of the private sector in Guangdong province, ensuring legal protection for corporate property rights and entrepreneurs’ interests. We will further improve the diversified dispute settlement mechanism, promote "internet plus regulation" and credibility supervision, and see that businesses are undisturbed in their operations and their needs are addressed. 

Fourth, we will foster an open environment with smooth circulation and win-win cooperation. Leveraging the synergies of the "five international linkages," we will further pursue higher-level opening up. We will spend more efforts in building an open economic system to a higher level. We will implement the eight major steps to promote high-quality Belt and Road cooperation, and actively encourage Chinese enterprises to "go global."

That's my answer, thank you. 

Guangming Daily:

The unbalanced development between urban and rural areas and among different regions is a big challenge for Guangdong. Therefore, last year, Guangdong launched the "High-quality Development Project for Counties, Towns and Villages." How has it worked out in the past year? What’s the next step? Thank you. 

Wang Weizhong:

Thank you for your questions. I will address this issue. Since the 18th CPC National Congress, General Secretary Xi Jinping has noted that the unbalanced development between urban and rural areas and among different regions is the biggest challenge of Guangdong's high-quality development, asking us to strengthen top-level design and make constant efforts to turn weak links into potential strengths. Successive CPC Guangdong Provincial Committees and provincial governments have undertaken extensive work in this regard, significantly improving the developmental conditions within eastern, western and northern Guangdong. 

Since the 20th CPC National Congress, based on the good foundation laid in the past, the CPC Guangdong Provincial Committee and the provincial government have learned and applied the experience of the project "Green Rural Revival Program," and have proposed to implement the "High-quality Development Project for Counties, Towns and Villages" in Guangdong. We have made the project a top priority amid our efforts to promote Guangdong’s high-quality development. The project aims to coordinate the advantages of the county, the characteristics of the towns and the resources of the villages by pooling resources and strengthens of all sectors in order to promote the development of the county, the towns and the villages, and to achieve a good start to the 14th Five-Year Plan. The county GDP grew by 5.2% last year, 112 were included on the list of China’s top 1,000 towns, and the income ratio between urban and rural residents narrowed to 2.36:1. For example, Gaozhou, a county-level city under Maoming city, has driven county-wide revitalization by focusing on industrial development. Last year it attracted 74 new projects with a total investment of more than 8 billion yuan. This led to a 43.5% increase in industrial investment, driving the county's GDP to over 76 billion yuan.

Next, we will accelerate the construction of the "High-quality Development Project for Counties, Towns and Villages." Counties serve as the vanguard, with robust county economies bolstering city economies. We will accelerate new urbanization initiatives with a focus on county seats, and take tailored measures to cultivate industries that empower the county and enrich its citizens, such as food processing and culture and tourism sectors, thereby enhancing the county’s overall capacity to support development. Meanwhile, we will intensify efforts to improve county-level facilities and conditions for education and culture. Each county in Guangdong is distinct, necessitating a path of specialized and differentiated development. Whether it is industry, agriculture, commerce or tourism, we develop according to local strengths. For example, coastal counties with abundant marine resources are encouraged to develop the maritime economy, such as portside industries, marine pastures and seaside tourism. Towns act as nodal points, playing an important role in connecting cities and villages. We will speed up the creation of comprehensive service networks, thriving business hubs and convenient living environments, transforming towns into centers of rural governance, service and economic activity. Villages are the bedrock. We must give priority to developing rural industries and improving the living environment. In particular, we should better develop local specialties to create more renowned "Cantonese brand" agricultural products, boosting farmers’ incomes and wealth. For example, Maoming city has vigorously developed its distinctive agricultural sectors, including lychee, longan, and orange, with the total agricultural output exceeding 100 billion yuan for three consecutive years. We will continue to carry out projects that address weak links in rural areas, make great efforts to manage rural domestic wastewater and accelerate the construction of a beautiful and harmonious countryside that is ideal to both live and work in.

We believe that through continuous efforts, we will meet the target of realizing effectiveness in three years, significant changes in five years, and substantial transformation in 10 years, achieving a brand-new urban and rural landscape across Guangdong province and prosperity for all. Thank you.

Nanfang Daily, Nanfang+:

We understand that biomanufacturing is considered a new industrial revolution in the manufacturing sector and has attracted significant attention. May I ask what considerations Guangdong province has in developing biomanufacturing? Thank you.

Ai Xuefeng:

Thank you for your question. Biomanufacturing utilizes biological principles and technologies to produce products. It is currently in the early stages of an industrial boom and is rapidly expanding into critical sectors such as food, medicine, materials and energy. This expansion is making it a focal point of competition among the world's major economies.

During the process of promoting mutual reinforcement between technology and industry, Guangdong province has planned for the biomanufacturing industry with foresight. We have established world-leading infrastructure for synthetic biotechnology. Big science facilities have provided support for both basic and applied basic research in synthetic biology and have been fully open and shared during construction to serve enterprises and industrial development. We have built an innovative service platform for biomanufacturing. We have established open innovation carriers, including synthetic biology innovation and entrepreneurship complex, industrial innovation center, and public service platform. Notably, last year, Guangdong province was approved to build a national biomanufacturing industrial innovation center in Shenzhen Guangming Science City, which is currently the only national-level industrial innovation hub in this field. We have nurtured a number of "new species" enterprises in biomanufacturing. In the past three years, one of every two synthetic biology companies in the country has settled in Guangdong province. At the same time, we have also achieved a series of innovative achievements. For example, the research conducted by the Shenzhen Institute of Advanced Technology of the Chinese Academy of Sciences on converting carbon dioxide into glucose and fatty acids, along with the world's first construction of the most comprehensive atlas of human immune cell development, have been included among the top 10 domestic scientific and technological advancements in the past two years.

Next, we will seize the opportunity to further accelerate the development of the biomanufacturing industry. First, we will optimize its development layout. We will promptly formulate an action plan for the industry's high-quality development, design key directions and fields based on technological and market maturity as well as Guangdong province's innovative advantages and industrial needs, and deploy major platforms and projects. Second, we will promote technological research and development in the biomanufacturing industry. We will coordinate special funds for technological innovation and advanced manufacturing, increase support for frontier and disruptive technological innovations in biomanufacturing, and build a globally leading source of innovation for biomanufacturing. Third, we will promote the industrialization of biomanufacturing research results. We will accelerate the construction of a number of pilot-scale testing platforms, further strengthen scenario applications, and promote biomanufacturing to empower key areas such as medicine and health, industrial materials, agriculture and food, new energy, and green environmental protection. Thank you.

Hong Kong Economic Herald:

The governor just mentioned that Guangdong province's forest coverage rate has reached 53%, and the province is advancing the Green and Beautiful Guangdong Campaign. Could you please tell us what measures will be taken next? Thank you.

Zhang Hu:

Thank you for your question and your interest in the Green and Beautiful Guangdong Campaign. The province is green throughout the year, and as you mentioned, the forest coverage rate has now exceeded 53%. In recent years, the province has resolutely implemented Xi Jinping Thought on Ecological Civilization. Committed to the overall goal of "being at the forefront," the provincial Party committee has decided to deeply promote the Green and Beautiful Guangdong Campaign. The aim is to promote high-quality development and take the campaign as a strategy for advancing ecological civilization. The campaign practices the concept that "lucid waters and lush mountains are invaluable assets," focusing on high value-added and green development. We strive to make Guangdong province a demonstration and window for practicing Xi Jinping Thought on Ecological Civilization. Moving forward, we will continue to promote "six major actions."

First, we will implement a precise forest quality improvement action. We will carry out in-depth optimization of forest stands and the improvement of forest forms. This year, we aim to complete the tasks of optimizing and enhancing 2 million mu of forest stands and nurturing and improving 2 million mu of forest. We will tap into the economic benefits of precise forest quality improvement and vigorously develop related economies such as homestay tourism and forest wellness.

Second, we will implement an action for integrating and enhancing urban-rural greening and beautification. Currently, our province has established 193 demonstration sites for the Green and Beautiful Guangdong Campaign, achieving full coverage of county-level administrative areas. Next, we plan to fully develop national forest cities and national garden cities and combine the "Hundred, Thousand and Ten-Thousand Project" to focus on promoting greening and beautification efforts in counties, towns and villages.

Third, we will launch an initiative to promote ecological conservation of protected areas. We will step up efforts to develop the Nanling National Park and Danxia Mountain National Park, building 104 demonstrative protected areas; develop the South China National Botanical Garden to a high standard; and build the International Mangrove Center in Shenzhen with a 10,000 mu (666.67 hectares) demonstration zone for mangrove forest.

Fourth, we will implement an action plan to improve the quality of ecological green corridors. We will increase green coverage along expressways, national and provincial highways and railways; make coordinated efforts in the construction of forest trails, greenways, green belts as well as ancient post roads; achieve integrated development among neighboring ancient villages, historical sites and natural parks; and foster stronger connections between networks of forests, water and roads, so as to build a green and beautiful ecological network with greater connectivity.

Fifth, we will launch an initiative to strengthen protection of ancient and famous trees. Efforts will be made to carry out surveys and monitor these trees, while real-time and dynamic management will be implemented. We will rescue and preserve these ancient and famous trees to retain people's nostalgic memories about the past.

Sixth, we will carry out a provincial initiative to encourage people to care for, plant and protect green spaces. Centering on the theme of "I Plant Trees for Guangdong," we will mobilize all sectors of society to grow and protect plants. Through joint actions, we will create a beautiful homeland with abundant green plants that can be seen throughout the whole year. 

Ecological development under the Green and Beautiful Guangdong Initiative is a long-term project. We will take this goal as guidance to protect the fields, trees, rivers and mountains of Guangdong, build a pilot zone for the Beautiful China Initiative, and foster pacesetters for green and low-carbon development, so that green ecological advantages can be transformed into high-quality development advantages. Thank you.

21st Century Business Herald:

Recently, the State Council has taken steps to promote large-scale equipment upgrades, with a focus on bolstering the technological transformation of key industries. What has the Guangdong government done in terms of the transformation and upgrading of enterprises? And what other specific measures will be taken next? Thank you.

Tu Gaokun: 

As you are all aware, the State Council is promoting large-scale equipment upgrades. Yesterday, the State Council held a video conference to make arrangements, which provided a good opportunity for us to bolster technological transformation. Technological upgrading is an ongoing theme in enterprise development, and Guangdong has long been committed to promoting technological transformation and equipment upgrading. In terms of policies, it has issued regulations and policies such as the "Regulations on Promoting High-quality Development of the Manufacturing Industry," "Opinions of the Guangdong Provincial Committee of the Communist Party of China and the People's Government of Guangdong Province on Promoting the High-quality Development of Guangdong as a Strong Manufacturing Powerhouse" and "Circular on Printing and Issuing 'Several Measures on Promoting Industrial Enterprises in Guangdong Province to Accelerate Technological Transformation under the New Situation'", and publicized these policies to nearly 7 million enterprises through "yst.gdzwfw.gov.cn," a platform for businesses to access government services. In terms of resources and factors, we have guided financial capital investment, established a mechanism for utilization of project land-use quota in advance, opened a "green channel" for energy conservation review, and accelerated the development of major technological upgrading projects, such as Maoming Petrochemical's refinery transformation and upgrading and ethylene quality improvement project, and Gree's intelligent equipment project. In terms of guidance and demonstration, we highlighted the creation of a batch of demonstration enterprises and projects with advanced technological reforms, clear achievements and strong industry driving force, and replicated and promoted a series of typical cases. For example, taking home appliances as a starting point, Foshan adopted a model of "major enterprise investment plus supporting facilities from industrial chain," and helped drive the digital transformation of more than 100 SMEs in the industrial chain through platform solutions. 

The above measures have achieved good results. As Mr. Wang just said, the growth rate of investment in industrial technological upgrading last year was the fastest since 2018 and increased another 22.8% from January to February this year. Many enterprises reported that after technological upgrading, their production efficiency increased more than 15% and production costs reduced by over 10%.

Next, we will continue to prioritize technological transformation as the most crucial element in maintaining the vitality of the manufacturing industry. We will regard it as one of the key projects in upholding the dominance of the manufacturing industry and our commitment to continuous small-scale technological improvements. We will continue to implement policies for technological transformation, fully promote large-scale equipment upgrades, and initiate actions for technological transformation and equipment renewal in Guangdong province to improve quality and efficiency. Moreover, we will implement projects to empower and enhance technological transformation, ensuring these policies yield substantial benefits for enterprises. We will continue to explore paths for enterprise technological transformation, implement digital transformation projects for industrial clusters and carbon-peaking actions in the industrial sector, promote the transformation and upgrading of industrial chains and supply chains, and continuously enhance the digital and green level of enterprises. We will continue to cultivate technological transformation entities and innovation carriers, implementing enterprise gradient cultivation plans, and enhancing our manufacturing collaborative innovation system. We will improve the quality and efficiency of manufacturing innovation centers and enterprise technology centers at all levels, thereby providing continuous technical support for the technological transformation of enterprises. Thank you. 

Cnr.cn:

I noticed that at this year's Guangdong Provincial High-quality Development Conference, it was proposed to accelerate the mutual promotion of industry and technology and vigorously develop new quality productive forces. This topic has attracted a lot of attention. As an economically powerful province, what considerations and plans do you have in this regard? Thank you.

Wang Weizhong:

Thank you for your question; I'll answer this one. As you mentioned, for the past two years, we have held the Guangdong Provincial High-quality Development Conference on the first working day after the Chinese New Year. Guangdong is a major province in terms of economy, manufacturing, and scientific and technological innovation. The added value of Guangdong's manufacturing industry accounts for one-eighth of the country's total. Last year, Guangdong province invested 460 billion yuan in research and development, accounting for 3.39% of its GDP. When it comes to developing new quality productive forces, Guangdong province is not only well-positioned, capable and confident, but also recognizes its responsibility to do so. We will develop new quality productive forces according to local conditions, promote industrial innovation through scientific and technological advancements, and integrate innovation into enterprises, industries and overall development.

For Guangdong province, the development of new quality productive forces relies on innovation and industry.

First, we need to adhere to a high level of self-reliance and strength in science and technology, accelerate the construction of a whole-process innovation chain, use disruptive and cutting-edge technologies to cultivate new industries, new models, and new driving forces, and build an industrial science and technology innovation center with global influence. Over the years, we have consistently invested more than one-third of provincial-level scientific and technological innovation funds in basic research. We have launched more than 10 batches of research and development programs in key areas, striving to overcome technological bottlenecks and develop more original and disruptive achievements. For example, in addressing weaknesses in high-end equipment and medical devices, we have promoted cooperation between enterprises, universities, and research institutes, overcoming difficulties in areas such as ECMO, high-end MRI equipment, and high-end surgical robots. To tackle the "chip shortage" problem, we have implemented the Powerful Guangdong-Made Chips initiative. This effort is attracting major projects in areas such as analog chips, sensors, and photomasks, aiming to build China's third hub of integrated circuits. In response to the "last mile" challenge in transforming and applying scientific and technological achievements, we have established several concept verification centers and pilot platforms, primarily serving small- and medium-sized enterprises. This will boost the application and promotion of more new technologies and products in Guangdong province, striving to build a modern, new Guangdong that advances, strengthens, and succeeds through innovation.

Second, we must transform and upgrade traditional industries, cultivate and strengthen emerging industries, arrange the development of industries for the future in advance, and build a modern industrial system that is more internationally competitive. Traditional industries should never be neglected. We encourage enterprises to speed up equipment updates and process upgrades, allowing trillion-level traditional industries such as textiles and clothing, food and beverages, and home appliances and furnishings to leverage their advantages and unleash new vitality. At the same time, we are vigorously developing emerging industries such as integrated circuits, new energy storage, new energy vehicles, offshore wind power, bio-manufacturing, and commercial aerospace. We are advancing the layout for future industries such as quantum technology, the life sciences, and artificial intelligence. We are opening up new areas and new paths for development, continuously shaping the development of new driving forces and new advantages. For example, in the field of low-altitude economy, Guangdong province has been at the forefront of research and innovation. Currently, Guangdong's consumer drones account for over 90% of the national market and more than 70% of the global market, with leading companies such as DJI, EHang and Xiaopeng. In addition, Shenzhen has released the country's first local regulations for the low-altitude economy. In February this year, the world's first cross-sea and cross-city electric "air taxi" made its first flight in Guangdong province. The journey from Shenzhen to Zhuhai takes only about 20 minutes by air, compared to approximately 2 hours and 45 minutes by car. It is expected to officially start manned flights by 2026, which will nurture a new trillion-yuan-level industry cluster in Guangdong province.

Leveraging well-developed industrial facilities, a strong supply of innovation, and rich application scenarios, now is the right time for Guangdong province to develop new quality productive forces with promising prospects. Talent is considered our most valuable resource. To attract this talent, we aim to build a "nest" that attracts "phoenixes." We are committed to drawing in talent, creating platforms for them, and gathering gifted individuals from around the world. We warmly welcome people to come to Guangdong to innovate, start their businesses, and realize their dreams. Thank you.

Chen Wenjun:

Thank you, Mr. Wang, and all the speakers. Thank you for coming, and with that, today's press conference is concluded. Goodbye.

Translated and edited by Zhang Rui, Wang Qian, Cui Can, Ma Yujia, Yan Bin, Wang Wei, Qin Qi, Wang Yanfang, Wang Mengru, Yang Xi, Liu Qiang, Wang Ziteng, Yuan Fang, Zhang Tingting, Zhang Junmian, Yan Xiaoqing, Zhou Jing, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Gong Zheng, deputy secretary of the Communist Party of China (CPC) Shanghai Municipal Committee and mayor of Shanghai

Mr. Hua Yuan, a member of the Standing Committee of the CPC Shanghai Municipal Committee and deputy mayor of Shanghai

Mr. Gu Jun, secretary-general of the Shanghai Municipal People's Government and director of the Shanghai Municipal Development and Reform Commission

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 28, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the third press conference in the series "Promoting High-Quality Development." Today, we are glad to be joined by Mr. Gong Zheng, deputy secretary of the Communist Party of China (CPC) Shanghai Municipal Committee and mayor of Shanghai, who will brief you on the "five centers" initiative of Shanghai and accelerating the building of a modern socialist international metropolis with global influence, and then take your questions. Also present today are Mr. Hua Yuan, a member of the Standing Committee of the CPC Shanghai Municipal Committee and deputy mayor of Shanghai; and Mr. Gu Jun, secretary-general of the Shanghai Municipal People's Government and director of the Shanghai Municipal Development and Reform Commission.

Now, I'll give the floor to Mr. Gong for his introduction.

Gong Zheng:

Ladies and gentlemen, friends from the media, good morning. It is a great pleasure to have the opportunity to brief you on Shanghai's high-quality development and its expedited efforts in building "five centers." On behalf of the CPC Shanghai Municipal Committee and the Shanghai Municipal People's Government, I would like to start by extending my deep appreciation for your long-standing interest in and support for the development of Shanghai.

The construction of international centers of economy, finance, trade, shipping and sci-tech innovation in Shanghai is not only an important mission entrusted to the city by the CPC Central Committee, but also the only path for Shanghai to achieve high-quality development. Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, Shanghai has continuously facilitated the construction of "five centers" and seen remarkable progress in enhancing its urban functions and core competitiveness. In terms of building an international economic center, Shanghai's GDP reached 4.72 trillion yuan (about $663.7 billion) in 2023, continuing to rank among the top cities in the world. Regarding its international financial center construction, the turnover of Shanghai's financial markets hit a record high in 2023, exceeding 3,300 trillion yuan. Licensed financial institutions continued to gather in Shanghai, with the total number reaching 1,771 by the end of last year, including 548 foreign-funded ones. As for the development of an international trade center, in 2023, the total international trade volume of goods at Shanghai ports hit 10.7 trillion yuan, accounting for 3.6% of the world's total, maintaining first place among all cities worldwide. With respect to the city's establishment of an international shipping center, the container throughput of Shanghai Port also reached a record high in 2023 with 49.158 million twenty-foot equivalent units (TEUs), ranking first globally for 14 consecutive years. In addition, Shanghai's development of a sci-tech innovation center has seen three inspiring achievements: The city's total R&D expenditure reached around 4.4% of its GDP; the number of high-value invention patents per 10,000 people rose to 50.2; and the city secured fifth place in the latest Science and Technology Cluster Ranking by the World Intellectual Property Organization (WIPO).

On the new journey, we will thoroughly implement the guiding principles of General Secretary Xi Jinping's speech delivered during his visit to Shanghai, bearing in mind the Party's and the people's expectations and developing a stronger sense of mission and responsibility. Focusing on the primary task of facilitating high-quality development and the strategic task of creating a new development pattern, we will prioritize the building of the "five centers," ensure coordination in various aspects concerning socioeconomic development, and expedite the efforts to build Shanghai into a modern socialist international metropolis with global influence, so as to fully leverage the city's leading and exemplary role in developing a Chinese path to modernization.

First, we will accelerate efforts to build Shanghai into an international economic center focusing on improving its international standing and global influence in economic governance. We will continue bolstering the city's GDP, strive to create a modern industrial system, and pursue new quality productive forces based on unique local characteristics. We will emphasize the enabling role of sci-tech innovation, enhance further integration between sci-tech innovation and industrial innovation, and proactively advance new industrialization. We will adopt a coordinated approach to promoting the transformation and upgrading of traditional industries, bolstering the development of emerging industries, and developing future-oriented industries in advance, in a bid to create a group of world-class high-end industrial clusters.

Second, we will speed up Shanghai's development of an international financial center focusing on enhancing the internationalization of financial markets and bolstering their competitiveness and influence. We will coordinate with central financial authorities and thoroughly roll out high-level financial opening-up on the basis of enhancing the safety and manageability of the markets. We will further optimize four systems, namely those related to the financial markets, products, institutions and infrastructure. We will also make efforts in the five sectors of technology finance, green finance, inclusive finance, pension finance and digital finance, in order to provide better services to support the real economy, sci-tech innovation and Belt and Road Initiative (BRI) cooperation.

Third, we will ramp up actions to build an international trade center focusing on strengthening the city's role as a trading hub. We will thoroughly implement plans to upgrade free-trade zones in the city, taking the lead to establish institutional arrangements and supervisory models that align with high-standard international economic and trade rules such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). We will also speed up and establish pilot cooperation zones regarding "Silk Road e-commerce," open demonstration zones for creative promotion of import trade, and establish the eastern hub international business cooperation zone, so as to expedite the development of new types of trading such as offshore trade, cross-border e-commerce and bonded maintenance.

Fourth, focusing on enhancing the global allocation of shipping resources, we will move faster to build Shanghai into an international shipping center. We will strive to address weaknesses in advanced shipping services, strengthen shipping insurance underwriting and service capabilities, explore innovative maritime arbitration models, and attract more shipping enterprises and other functional institutions to operate in the city. At the same time, we will accelerate the development of seaports, airports, cruise terminals, and shipping hub systems, and vigorously promote the smart and green transformation of the shipping industry.

Fifth, we will accelerate the transformation of Shanghai into an international sci-tech innovation center, emphasizing its role as a source and nurturing ground for sci-tech innovation. We will further pool national strategic strengths in science and technology, strategically plan and build major scientific and technological infrastructure, and strengthen the role of enterprises in promoting sci-tech innovation. Moreover, we will prioritize enhancing basic research capabilities in key areas, intensify efforts to achieve breakthroughs in critical core technologies, and facilitate the transformation and industrialization of scientific and technological advancements. We aim to seize control of pivotal segments in the industrial chain and secure a high-end position in the value chain.

As General Secretary Xi Jinping noted, Shanghai is a city of glory, innovation, openness, and aspiration. This serves as both heartfelt encouragement and a strong impetus for us. We will continue to give full consideration to both the domestic and international imperatives, aligning Shanghai's development with the central government's strategic positioning of the city, economic globalization, national development, and the overall plan for the development of the Yangtze River Delta. We will promote the city's spirit of "diversity, pursuit of excellence, open-mindedness and humbleness" and its character of "openness, innovation and inclusiveness." By comprehensively deepening reform and opening-up from a higher starting point, we will promote coordinated and synergized development, mutually empowering the construction of the "five centers." We will continuously achieve excellent results in the high-quality development of Shanghai's economy and society. This will enable us to welcome the 75th anniversary of the founding of the People's Republic of China with tangible actions and accomplishments.

That's all for my opening remarks. Next, Mr. Hua Yuan, Mr. Gu Jun, and I are ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mayor Gong, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before asking your questions.

Science and Technology Daily:

I'm interested in the development of prioritized industries like integrated circuits, biomedicine, and artificial intelligence, as well as traditional industries like automobiles. I'm wondering what is the next step for promoting the development of these industries. What is Shanghai's plan to encourage the development of new quality productive forces? Thank you.

Gong Zheng:

Thank you. I'll take the questions. Developing new quality productive forces is key to Shanghai's high-quality development. We must strive to lead the way and stay ahead.

Overall, Shanghai has a solid foundation and various advantages in developing new quality productive forces. First, it boasts strong, comprehensive scientific and technological capabilities. Shanghai has gathered a significant number of national strategic scientific and technological forces, including national laboratories. There are currently 20 major scientific and technological infrastructure projects either completed, under construction, or planned for the future. Additionally, we have attracted prestigious research institutions, including the Tsung-dao Lee Institute and the Shanghai Institute for Mathematics and Interdisciplinary Sciences.

Second, Shanghai's industrial transformation and upgrading have been underway for quite some time. The city has largely shaped its industrial development around modern service industries as the mainstay, strategic emerging industries as the driving force, and advanced manufacturing as the backbone. In 2023, strategic emerging industries accounted for 43.9% of the total output value of industrial enterprises above designated size. 

Third, Shanghai boasts a large number of high-level professionals. We've been making substantial efforts to attract and retain top-tier talents, and particularly the three prioritized industries of integrated circuits, biomedicine, and artificial intelligence have attracted more than 800,000 talents. Shanghai’s integrated circuits talents account for approximately 40% of the national total.

Looking ahead, we will thoroughly implement General Secretary Xi Jinping's important instructions on developing new quality productive forces, promoting industrial innovation through sci-tech innovation, and applying more sci-tech achievements to specific industries and industrial chains to accelerate the development of new quality productive forces. Our focus will be on continuously improving the high-end, intelligent, green, and integrated development of industries in the following three aspects based on our inherent advantages.

First, we will promote the "2+2" strategy, emphasizing the consolidation of the advantages of traditional industries. As mentioned earlier, traditional industries such as automobiles, steel, and chemicals still take up a large proportion of Shanghai's economy, with some being advantageous industries that cannot be overlooked or abandoned. Therefore, we are focusing on promoting the deep integration of advanced manufacturing with modern service industries, with particular emphasis on producer services. Additionally, we are prioritizing the "two transformations" strategy, encouraging all industries, especially traditional ones, to undergo digital, green and low-carbon transformations. We aim to empower traditional industries through new technologies, models, and formats, transforming them into new quality productive forces.

Second, we will promote the "3+6" model to establish innovation hubs for emerging industries. The "3" refers to three pioneering industries designated to Shanghai by the CPC Central Committee: integrated circuits, biomedicine, and artificial intelligence. Last year, these industries collectively amounted to a total scale of 1.6 trillion yuan. We will continuously implement national strategic deployments, take up our mission and tasks, and initiate a new round of "Shanghai Solutions" to consistently achieve breakthroughs in key links and improve the resilience and security of industrial and supply chains. The "6" means six major industries with unique features and foundations in Shanghai. We will accelerate the development of four industry clusters in electronic information, life and health, automobiles, and high-end equipment, each with a scale of 1 trillion yuan. Additionally, we will develop two clusters in advanced materials and fashion consumer goods, each with a scale of 500 billion yuan.

Third, we will introduce the "4+5" scheme to nurture new engines for the development of future-oriented industries. The "4" denotes four new fields: digital economy, green and low-carbon, metaverse and intelligent terminals. The "5" refers to five future-oriented industries: healthcare, intelligence, energy, space, and materials. We have devised action plans and strategies to further enhance our deployment of disruptive technologies and cutting-edge sectors. Efforts will be made to achieve breakthroughs in core technologies in key fields and establish industrial development advantages in several subdivisions. Thank you.

Phoenix TV:

Shanghai has long been a magnet for foreign investment, and it has set its sights on becoming a premier global investment destination. Could you share some of the key initiatives Shanghai plans to launch to attract foreign investment? Thank you.

Hua Yuan:

Thanks for your question. Shanghai has always placed great emphasis on attracting and utilizing foreign investment. In recent years, we have amended and improved relevant policies to encourage multinational corporations to set up regional headquarters, introduced and implemented upgrade plans for foreign R&D centers, and issued a set of measures to stabilize foreign investment. The city's actual use of foreign capital has exceeded $20 billion for four consecutive years. Last year, that number surpassed $24 billion, setting another record high. We are particularly pleased to see new regional headquarters of multinational corporations and foreign R&D centers established in Shanghai every year. In 2023, 65 regional headquarters and 30 foreign R&D centers were newly established in Shanghai, bringing the total number to 956 and 561, respectively. This has helped Shanghai become the city with the most regional headquarters of multinational corporations on the Chinese mainland. At present, its accumulated actual use of foreign capital has exceeded $350 billion, with more than 70,000 foreign companies established and flourishing there. These data indicate that Shanghai is already one of the top choices both for foreign investment and the global industrial chain layout of multinational corporations.

In our view, foreign investors are optimistic about Shanghai largely because of its continuously improving business environment and expanding advantages in opening up. For example, the globally renowned pharmaceutical company Moderna established its presence in Shanghai last year. From contract signing to groundbreaking, it took just over three months. "Moderna speed" has become a new benchmark in the city for supporting major foreign projects. Guided by the action plan, which includes 24 specific pro-foreign investment measures unveiled by the State Council, we will implement the national edition of the negative list for cross-border trade in services and the latest negative list for foreign investment. We will promote "Moderna speed" throughout the city, ensuring that all foreign projects have guaranteed space, efficient approval processes, and timely services. Our focus will be on the following three aspects.

First, we will further expand opening up. By aligning with international high-standard economic and trade rules, we will steadily expand institutional opening up, lift all restrictions on foreign investment in the manufacturing sector, and further implement comprehensive trials for expanding openness in the service sector, so as to embrace global enterprises and talent with a more open mindset.

Second, we will intensify our efforts to promote foreign investment. We will continue to leverage the role of institutions and organizations like global partners for foreign investment, organize a series of overseas promotion campaigns titled "Invest in Shanghai, Share the Future," and encourage foreign enterprises to invest more in key fields such as green development, digital transformation and sci-tech innovation.

Third, we will focus on improving our capability to serve enterprises. We will optimize the dedicated team and service commissioner system for foreign projects and the service package system for key companies, hold government-enterprise roundtables, and resolve practical difficulties and problems for foreign businesspeople. We will also implement various measures to improve the business environment and provide more targeted and quality services, enabling foreign investors to have a stronger sense of gain. Thank you.

CCTV:

This year marks the 10th anniversary of Shanghai's efforts to establish itself as an international sci-tech innovation center. What kinds of breakthroughs has Shanghai made in sci-tech innovation over the past decade? What will the city do to enhance its role in driving sci-tech innovation? Thank you.

Gong Zheng:

Building Shanghai into an international sci-tech innovation center is a major national strategic task that General Secretary Xi Jinping personally planned, deployed, and promoted. Over the past 10 years, we have followed the arrangements of the central authorities, sustained the dual driving forces of sci-tech innovation and institutional innovation, and achieved significant improvements in comprehensive sci-tech strength and overall innovative efficiency. First, we have explored the frontiers of science and technology and realized several original achievements, such as the world’s first macaques cloned from somatic cells and the world’s first artificial single-chromosome eukaryotic cell. Second, in response to major national strategic demands, we have led 929 major national sci-tech projects, participating in the development of several assets of national strategic importance. These include the Tianzhou cargo spacecraft, the Shenzhou manned spacecraft, the Xihe solar exploration satellite, and the Zhurong Mars rover. Third, we have concentrated on economic development, playing an important role in production of the C919 large aircraft and the first domestically made large cruise ship, the Adora Magic City, and independently developed a number of major strategic products that rank among the most advanced in the world. Fourth, we have prioritized people’s lives and health and improved our capacity to research and develop innovative drugs and medical devices. Over the past 10 years, nearly one-fifth of the Class 1 innovative drugs and medical devices approved for market launch in China were developed in Shanghai.

At present, we are stepping up the transition from establishing the framework to strengthening functionality in building Shanghai into an international center for sci-tech innovation. We will thoroughly implement the arrangements and requirements of the CPC Central Committee, effectively enhance Shanghai's role as a cradle of sci-tech innovation, and strive to build the city into an important driver for developing national sci-tech strength.

First, we plan to strengthen entities engaged in innovation. Shanghai is home to over 80 national-level advanced sci-tech research platforms, many new-type research and development institutions, and more than 24,000 new high-tech enterprises. We should offer strong support for these innovative entities to grow rapidly, ensure that national laboratories and national key laboratories in Shanghai are constructed and utilized properly, improve the innovation system of high-level research universities, foster more leading sci-tech enterprises with strong creative capabilities, and quickly develop systematic strategic sci-tech strength.

Second, we aim to enhance innovation and achieve more breakthroughs. We will target cutting-edge technologies, emerging sectors, and key development trends, including the health sector, smart technologies, energy, and materials. We will take the initiative to map out major sci-tech projects. Innovation and technological breakthroughs originate from basic research. Shanghai is building itself into a pilot area for promoting basic research. We task strategic scientists with selecting, managing, tracking, and assessing talent, mainly focusing on selecting talent instead of projects and providing long-term and stable funding for outstanding scientists to advance basic research in high-risk and high-value fields.

Third, we will facilitate the transformation of sci-tech research achievements. The critical part addresses the issues involving platforms, funds, carriers, and services. We are considering establishing funds to guide sci-tech innovation and enhance coordination among various government funds set up for this purpose. This approach aims to guide more social capital to invest in early-stage companies, invest small, invest in hard technology, and invest for the long run. Meanwhile, we also plan to build several high-quality incubators, focusing on forward-looking and in-depth incubation to provide sci-tech enterprises with quality services through different stages of their development.

Fourth, we will establish networks for promoting openness and innovation. Shanghai has inaugurated the Pujiang Innovation Forum and the World Laureates Forum, among other platforms for international exchanges. We will further improve and leverage these important platforms, advance the development of the Yangtze River Delta community of sci-tech innovation, and try to be part of the global innovation network. We will also explore new paths and modes for international sci-tech exchange and cooperation and quickly shape a healthy and globally-competitive ecosystem for sci-tech innovation. Thank you.

ThePaper.cn:

Mr. Gong just said that Shanghai has ranked first worldwide for 14 consecutive years in terms of container throughput. However, I have learned that Shanghai still has some work to do to catch up with London and Singapore in the shipping service sector. So, how does Shanghai plan to improve itself in this regard? Thank you.

Hua Yuan:

Thank you for your question. Mr. Gong discussed this subject in his opening speech, and I will add some details.

You all know that Shanghai had essentially established itself as an international shipping center by 2020. The city boasts various resources and elements for developing the shipping industry, well-developed shipping service functions, an excellent business environment, and efficient shipping and logistics services. Currently, we are focused on improving this international shipping center. The most important task is to quickly address the weaknesses in high-end shipping services to comprehensively enhance the global allocation of shipping resources. By making breakthroughs in high-end shipping services, we plan to further strengthen Shanghai’s role as an international shipping center and promote the digital, intelligent, and green transformation of the shipping industry to make a greater contribution to implementing major national strategies. This involves work in three aspects:

First, we should improve services. We should make efforts to develop shipping-related insurance, maritime arbitration, and other high-end shipping services. Regarding shipping-related insurance, we aim to leverage the construction of an international reinsurance center, facilitate innovation in shipping-related insurance products and business models, and enhance the underwriting capacity of shipping-related insurers in the global market. In terms of maritime arbitration, we will fully implement the Regulations of Shanghai Municipality on Promoting the Development of an International Commercial Arbitration Center enacted at the end of last year, research ad hoc arbitration, and offer support for overseas arbitration and dispute settlement organizations to set up and operate branches in Shanghai, and encourage business entities to prioritize Shanghai as the preferred place for dispute settlement.

Second, we will strengthen the hub. Generally speaking, we will continue to improve the construction of the "three ports and one system," which includes seaports, airports, cruise ports and the collection and distribution system. We will accelerate the development of significant projects, such as the Xiaoyangshan North Operation Area, Shanghai East Railway Station, and the fourth expansion phase of Shanghai Pudong International Airport. In addition, we will step up efforts to develop multimodal transportation, including water-to-water transfer and sea-rail intermodal transport, and actively support the growth of the cruise economy.

Second, we will promote transformation, focusing on both smart and green transformation. In terms of smart transformation, by focusing on blockchain technology, we aim to enhance Shanghai's international container transportation service platform. We will accelerate the building of a demonstrative platform for piloting the shipping trade digitalization. Regarding green transformation, our priority is to advance the establishment of a green shipping corridor between Shanghai Port and Los Angeles Port. Additionally, we are expediting the development of clean fuel supply chains for ships, including green methanol and LNG. Furthermore, we intend to encourage the adoption of eco-friendly transportation methods, such as pure electric vessels.

That's all for my answer, thank you.

Southern Metropolis Daily:

As the leader in the integrated development of the Yangtze River Delta, how will Shanghai continue to play a pivotal role? What are the plans for integrating resources? Thank you.

Gong Zheng:

Thank you for your question. This question goes to Mr. Gu.

Gu Jun:

Thank you for your question. As we all know, the Yangtze River Delta is one of the most vibrant, open, and innovative regions in China's economic development, with Shanghai acting as the core city within this world-class urban cluster. We are committed to fully implementing the guiding principles outlined in General Secretary Xi Jinping's speech at the symposium on advancing the integrated development of the Yangtze River Delta. Our focus is on both integration and high-quality development, harnessing Shanghai's leadership to strengthen cooperation with the provinces of Jiangsu, Zhejiang, and Anhui. By excelling in resource sharing and playing to our collective strengths, we are moving toward the cohesive development of the Yangtze River Delta. The key is to advance synergies in four areas:

First, sci-tech innovation. We will establish cross-regional bases for national laboratories, improve the planning of the national technology innovation center system, and facilitate joint research within the sci-tech innovation community. There will also be support for the cross-regional transfer and application of sci-tech innovation outcomes.

Second, industrial innovation. We will improve mechanisms for coordinated industrial development, focus on major strategic areas, and facilitate enterprises with trans-regional operations. We will also push forward innovative development among small and large enterprises throughout the upstream, midstream and downstream industrial chains. Our goal is to build world-class, high-end industry clusters in areas like new energy, artificial intelligence, and biomedicine.

Third, opening up. We will actively learn from and align with the best practices of pilot free trade zones, working toward the building of a Belt and Road comprehensive service platform in the Yangtze River Delta. Additionally, we will utilize the leading role of the Hongqiao International Airport as an opening hub, enhance the spillover effects of the China International Import Expo, and promote the Yangtze River Delta's competitive production capacity, quality equipment, applicable technology, and standards to go global.

Fourth, institutional mechanisms. We will formulate and implement a new three-year action plan and advance the formulation of a territorial space plan for the Shanghai metropolitan area. We aim to gradually align public service mechanisms, policies, and standards. Moreover, we will continue to innovate and replicate successful practices in creating the demonstration zone for integrated ecological and green development in the Yangtze River Delta and explore new cooperation models with neighboring regions. Thank you. 

Xinmin Evening News:

Shanghai is home to many tall buildings and, at the same time, harbors old neighborhoods in need of improved living conditions. How does Shanghai improve people's quality of life through urban renewal? Thank you.

Gong Zheng:

Thank you for your question; I will answer it. The CPC Shanghai Municipal Committee and Shanghai municipal government attach great importance to providing livable and secure housing for citizens and continue to carry out urban renewal and the reconstruction of old areas. On July 26, 2022, we marked a significant milestone by completing the renovation of contiguous dilapidated old lane houses below level-two standard in downtown Shanghai, thus concluding an over three-decade-long campaign to improve residents' living conditions. Following the completion of these old neighborhood renovations, we plan to speed up and intensify the renovation of "two old houses and one village," which refers to scattered old houses below the level-two standard, non-standard old housing, and urban villages. We aim to complete the reconstruction project within 10 years, spanning the tenure of two governments. Last year was the first year of the reconstruction project, and we completed the annual target ahead of schedule. We completed the renovation of 123,000 square meters of scattered dilapidated houses below the level-two standard and 296,000 square meters of non-standard old housing. Additionally, we initiated 10 urban village transformation projects. Most importantly, we have removed barriers in carrying out renovation projects. Over the years, we have achieved "two innovations":

One is pattern innovation. For example, we have initiated renewal projects aimed at comprehensive application, such as renovating Fangualong's incomplete staff housing and reconstructing Ruikangli's incomplete alleyways. In the Ruikangli project, we explored four combined resettlement methods: voluntary application for relocation, physical resettlement in another location, repurchase or re-leasing at the original site, enabling residents to choose according to their needs and achieving cost reduction and efficiency improvement for the project.

The other area is policy innovation. We have issued implementation guidelines for urban renewal and a series of supporting policies. For instance, we have explored and established a "three-engineer" responsibility system, involving the collaboration of responsible planners, architects, and assessors. This approach allows professionals to handle their specialized tasks, addressing issues such as insufficient planning and coordination, low design quality, and mismatched standards and specifications in urban renewal.

In the next step, Shanghai will continue to make significant efforts to explore a sustainable path for urban renewal, focusing on the renovation of old areas and housing, as well as urban villages, to improve the living conditions of more citizens. Additionally, we will carry out the renovation and upgrading of old industrial zones, commercial and business districts, and conservation areas, accelerate the renovation of the second facade of the Bund, and implement several renewal projects such as Wusong Innovation City, further enhancing the city's quality and stimulating its vitality. Thank you.

Xinhua News Agency:

We know that Pudong has always been at the forefront of reform and opening-up and has made significant reform efforts in recent years. Could you introduce some of the breakthrough institutional innovations made during the comprehensive pilot reform in Pudong? Thank you.

Gu Jun:

Thank you for your question. Launching the comprehensive pilot reform in Pudong is a significant measure to further promote high-level reform and opening-up, and to accelerate the construction of a leading zone for socialist modernization. It also plays an important role in supporting the accelerated development of "five centers" and enhancing the city's capabilities and core competitiveness. Mayor Gong Zheng earlier introduced the latest progress in Shanghai's development of "five centers." Pudong is the core area for the construction of these "five centers" in Shanghai. Since last year, we have been mobilizing the entire city's efforts to advance the implementation of the Pudong comprehensive pilot reform program, resulting in a continuous emergence of landmark institutional innovation achievements. These innovations mainly manifest in "three batches":

First, a batch of pioneering reforms are being rapidly implemented. China's first-ever Containerized Freight Index Futures was listed for trading, the pilot reform of the architect responsibility system has continued to deepen, and the Pudong New Area has introduced 18 innovative regulations, 23 management measures, and two local regulations with Pudong-specific chapters.

Second, a batch of leading opening-up initiatives is being promoted. China's first marine bonded liquefied natural gas (LNG) bunkering was successfully completed, the Shanghai International Reinsurance Trading Center and the Shanghai Data Exchange International Board were launched, and pilot projects for importing remanufactured products in key industries were initiated.

Third, a batch of groundbreaking innovations is making breakthroughs. We have launched the open competition mechanism for selecting the best public service platforms and accelerated the temporary practice license system for foreign professionals. The number of open innovation centers for large enterprises has reached 90, and the function of sci-tech innovation engines is becoming more prominent.

Next, we will target key areas that have the conditions for making pioneering breakthroughs, strengthen system integration and collaborative efficiency, and strive to make efforts in three areas to better play the role of the national reform and opening-up experimental field.

First, we will promote high-level institutional opening-up. We will formulate and implement special management measures to relax market access in Pudong, orderly promote opening-up in areas such as telecommunications and healthcare, implement pilot reforms like the copyright registration system, and accelerate the construction of a national institutional opening-up demonstration zone.

Second, we will enhance global resource allocation capabilities. We will actively expand the application scenarios of e-CNY, promote the development of offshore economic and trade activities for the convenience of cross-border payments and receipts by multinational enterprises, establish and improve a safe and convenient cross-border data flow mechanism, and continuously enhance the level of factor aggregation and outreach.

Third, we will establish and improve the legal support system. In cooperation with the Shanghai Municipal People's Congress and its Standing Committee, we will formulate six more regulations for Pudong New Area this year, focusing on areas such as free trade accounts, commercial mediation, and enterprise compliance reform. Thank you.

People's Daily:

The development of Shanghai as an international metropolis cannot be separated from international talent. I would like to ask what attracts international talent to Shanghai, and in particular, how does the city attract top international talent? Thank you.

Gong Zheng:

Thank you for your question. I will answer it. Talent is our primary resource. It can be said that a city's competitiveness depends on the caliber of talent it possesses. In the process of accelerating the construction of the "five centers," we have always insisted on gathering the best talents from around the world, continuously enhancing the empowering role of talent. This talent advantage has become a strong pillar supporting Shanghai in enhancing the city and its core competitiveness. In recent years, the total talent pool in Shanghai has continued to grow. For example, last year, we introduced and attracted a total of 172,000 domestic and overseas professionals, a 12% year-on-year increase. Currently, the total talent pool in Shanghai has exceeded 6.75 million. The clustering effect of high-end overseas talent has also continued to increase. Through the implementation of policies such as the "Talent Peak" project and special talent introduction and training projects in key sectors, we have gathered a large number of urgently needed high-end professionals. Shanghai has issued 441,000 work permits to foreigners and over 310,000 returned overseas students have come here to work and start businesses, both figures ranking first nationwide. Shanghai has always been a fertile ground for international talents chasing their dreams.

We also know that without international talent, Shanghai couldn't achieve its vision of developing the international "five centers." Therefore, we must recruit all kinds of top talent from around the world, accelerate the development of comparative advantages in international talent competition, and boost the construction of high-level talent hubs to new heights. We aim to focus our efforts on three areas:

First, we will strive to construct a high-level innovation platform aligned with national strategies. Focused on the significant talent needs during the development of the "five centers," our goal is to establish the four world-class platforms, namely, a basic scientific research platform, an industrial innovation platform, a scientific and technological service platform, and the Shanghai Global Talents Innovation and Entrepreneurship Competition. Our objective is to create a "magnetic field" with a strong attraction to gather talent, providing them with opportunities and spaces for development, as well as enabling them to achieve success in Shanghai.

Second, we will build high-efficiency systems and mechanisms driven by reform and innovation. We will implement a more open, active, and effective talent policy and deepen the comprehensive pilot reform of the system and mechanism for talent development. Our approach includes delegating authority and loosening restrictions in talent discovery, recommendation, evaluation, and other areas, as well as building a rational pyramid-shaped talent structure to fully stimulate their potential for innovation and creativity.

Third, we will concentrate on services and support, aiming to establish a high-quality talent ecosystem. We will accurately meet the needs of talent regarding residency, settlement, inbound and outbound travel, and so on. By leveraging measures such as the premium service plan for outstanding global talent and the one-stop life-cycle reform of talent services, we will further integrate high-quality resources, enhance service quality, and strive to create an excellent ecosystem for the development of top-class professionals in Shanghai. Thank you.

Shou Xiaoli:

The last two questions, please.

Yicai:

We have noticed that Shanghai has recently installed over 30,000 foreign card point-of-sale (POS) terminals and launched a series of policies and measures to improve convenient payments. What other conveniences will Shanghai provide for foreigners working, living, and traveling in China? Thank you.

Hua Yuan:

Thank you for your question. This issue is of great concern to many people from overseas. As we all know, Shanghai is China's largest aviation and shipping hub, as well as a top destination among overseas visitors for business, study, and tourism. We have earnestly implemented the decisions and plans of the CPC Central Committee, and made dedicated efforts to develop a new payment service system with mobile payments as the main component, bank card payments as the focus, and cash payments as the foundation. We will continue to improve this Shanghai solution in convenient payments.

First, we are advancing mobile payments. We have encouraged UnionPay, Alipay, and WeChat Pay to innovate cross-border payment methods, making it easier for users to conduct mobile payments with domestic merchants. Currently, China UnionPay supports payments from more than 180 overseas wallets at UnionPay direct merchants, and Alipay enables e-wallets from 10 countries and regions to make payments in China.

Second, we have improved bank card payments. Last year, we focused on key business districts and areas, activating and installing over 37,000 POS terminals for foreign bank card users. In key sectors such as commerce, tourism, and transportation, we have achieved full POS coverage for major merchants. Currently, Shanghai ranks first nationwide in foreign card POS transaction volumes and per-customer transaction values.

Third, we have improved cash payment systems. Shanghai maintains a comprehensive network for RMB cash withdrawals and exchanges, which includes over 8,000 ATMs, more than 3,500 Chinese-funded bank branches, 13 licensed foreign exchange outlets, and 183 foreign exchange agents, providing foreigners with convenient access to cash.

As Shanghai continues to see increasing inflows of overseas visitors, the city will further remove the barriers for foreigners to work and live in Shanghai. We aim to offer more high-quality, efficient, and convenient services and create a more welcoming environment for them. Specifically, we will align with Shanghai's "five centers" initiative and step up efforts to optimize the following two aspects.

On the one hand, we will continue to optimize the convenience of payment methods. This includes further increasing the availability of POS (Point of Sale) machines for international credit cards, expanding their application scenarios, setting up one-stop service desks at airports and other areas, and promoting citywide accessibility for international credit cards to be able to withdraw yuan from ATMs. We will also accelerate the development of key commercial districts such as Nanjing East Road, Nanjing West Road and Huaihai Middle Road into model districts for departure tax refunds. In the near future, we will introduce specific measures to further enhance the convenience of payments.

On the other hand, we will continue to optimize the content of services related to foreign affairs. At the beginning of this year, the International Services Shanghai online portal was launched. The objective of this website is to welcome and help foreigners, making it easier for those coming to Shanghai to better understand and integrate into the city. We will adhere to a user-oriented approach and empathetic thinking, continuously enhancing the multilingual and scenario-based functions, making it useful and practical for all foreigners in Shanghai, and a service that they will truly love to use. We welcome everyone to explore the online service, use it often and share your valuable feedback and suggestions. Thank you.

Economic Daily:

Last year, the central financial work conference proposed to "boost the competitiveness and influence of Shanghai as an international financial center." Subsequently, Shanghai has also released an implementation plan to build pilot financial reform zones for scientific and technological innovation. May I ask, how will Shanghai promote the coupling of the international financial center and the sci-tech innovation center? Thank you.

Gong Zheng:

Thank you for your question. Let me answer it. The development of five international centers in Shanghai includes the international financial center and the sci-tech innovation center. Therefore, both finance and sci-tech innovation are core functions of Shanghai. It is only by moving forward in a two-way manner that we can best help all parties involved to achieve success. In our work practice, we have also deeply felt that the high-quality development of finance relies heavily on the empowerment of technology. The self-reliance and self-improvement of technology cannot be achieved without the support of a highly compatible financial service system. You could say that there is no finance without technology and no technology without finance.

In recent years, under the guidance of relevant central government departments, Shanghai has vigorously promoted the integration of science and technology within finance, and has gradually established a sci-tech finance system based on sci-tech credit, sci-tech insurance, equity investments and a multi-level capital market. Going forward, we will continue to focus on the entire chain and process of sci-tech innovation, relying on important platforms, such as the sci-tech finance reform pilot zones, to make strides in improving the quality and efficiency of Shanghai's sci-tech financial services. There are a few key measures:

First, we aim to optimize the ecosystem for technology investment, guiding the flow of financial resources to nourish the original innovation of sci-tech companies. Shanghai is a major cluster for equity investment institutions. The city hosts over 1,800 private equity and venture capital managers and manages more than 8,900 funds with a total scale reaching 2.3 trillion yuan — all three metrics ranking among the top in the country. We will further promote the high-quality development of the equity investment sector, guiding social capital to increase support for sci-tech companies that are in the startup phase, because the startup phase involves higher risks and more uncertainties, yet requires financial support. Recently, we have initiated the establishment of the Shanghai Sci-Tech Innovation Financial Research Institute, a social organization dedicated to fostering the development of angel investments, with the goal of strengthening the discovery and investment nurturing of early-stage projects, thereby facilitating effective investment matchmaking for social capital.

Second, we aim to strengthen the multi-level capital market, fully aiding technology enterprises in listing and financing for better development. Since its establishment five years ago, the Science and Technology Innovation Board (STAR Market) has become the preferred listing venue for hard and core technology companies. So far, there have been 570 companies listed, with initial public offering (IPO) funds cumulatively exceeding 900 billion yuan. Among these, 90 listed companies are from Shanghai. Although Shanghai does not have the highest number of listed companies, it ranks first in terms of cumulative IPO funds and market value among companies listed on the STAR Market, with IPO funds reaching 230 billion yuan. We will cooperate with the national regulatory authorities, continue to deepen capital market reforms, enhance the functions of the capital markets, such as the Shanghai Stock Exchange's Main Board and the STAR Market, and strive to make the Shanghai capital market an important, supportive engine for sci-tech innovation and in developing new quality productive forces.

Third, we aim to create sophisticated sci-tech credit and insurance products to better meet the diverse financial needs of sci-tech enterprises. We will guide financial institutions to adapt to the characteristics of new factors, such as technology, data and talent, to recognize the value of intangible assets, and to innovate products and services like credit and insurance, thereby increasing support for sci-tech innovation. For example, we have encouraged some commercial banks to pilot "sci-tech enterprise employee stock ownership plans and equity incentive loans" for technology-based non-listed companies in the Lin-gang Special Area and Zhangjiang Science City. This initiative is very helpful for stabilizing core employees and stimulating innovation vitality. Next, we will also support financial institutions in innovating and launching more specialized financial products that are urgently needed by sci-tech enterprises. Thank you.

Shou Xiaoli: 

Thank you to all the speakers, and thank you to all the journalists for your participation. Today's press conference will now conclude. Goodbye, everyone.

Translated and edited by Zhu Bochen, Wang Qian, Guo Yiming, Liu Sitong, Lin Liyao, Liu Qiang, Zhang Junmian, Cui Can, Huang Shan, Wang Ziteng, Zhang Rui, Yan Bin, Wang Wei, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Hao, deputy secretary of the Communist Party of China (CPC) Zhejiang Provincial Committee and governor of Zhejiang province

Mr. Xu Wenguang, member of the Standing Committee of the CPC Zhejiang Provincial Committee and executive deputy governor of Zhejiang province

Mr. Lu Shan, vice governor of Zhejiang province

Mr. Du Xuliang, director of the Zhejiang Provincial Development and Reform Commission

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

March 27, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the second press conference in the series themed "Promoting High-Quality Development." We are pleased to have invited Mr. Wang Hao, deputy secretary of the Communist Party of China (CPC) Zhejiang Provincial Committee and governor of Zhejiang province, to brief you on "seeking solid progress in implementing the 'Double-Eight Strategy' and striving to pioneer a new chapter in Chinese modernization," and to answer your questions. Also present at today's press conference are Mr. Xu Wenguang, member of the Standing Committee of the CPC Zhejiang Provincial Committee and executive deputy governor of Zhejiang province; Mr. Lu Shan, vice governor of Zhejiang province; and Mr. Du Xuliang, director of the Zhejiang Provincial Development and Reform Commission.

Now, I will give the floor to Mr. Wang for his introduction.

Wang Hao:

Ladies and gentlemen, good morning. I am very pleased to meet you all today. First of all, on behalf of the CPC Zhejiang Provincial Committee, the Zhejiang Provincial People's Government and the 66.27 million people of Zhejiang province, I would like to express our heartfelt thanks for your long-term interest in and support for Zhejiang. Next, I will briefly introduce the situation regarding Zhejiang's advancement of high-quality development.

Zhejiang is the place from which the red boat of the Chinese revolution set sail. General Secretary Xi Jinping, who worked in Zhejiang for six years, personally crafted the "Double-Eight Strategy" (which identifies eight strengths Zhejiang possesses in economic structure, geological location, industries, coordinated urban-rural development, ecology, mountain and ocean resources, environment and culture, as well as eight measures the province is taking to exploit these strengths) as the overarching program and strategy for the province's development. Since the 18th CPC National Congress, the general secretary has visited Zhejiang six times to inspect and guide its development. He encouraged Zhejiang to "continuously strive for practical efforts, seek new development at the forefront, and demonstrate responsibility by leading the charge." He has called on Zhejiang to become a vital window showcasing the advantage of the socialist system with Chinese characteristics for the new era, entrusting it with the significant mission of building a demonstration zone for high-quality development and common prosperity. Especially in September last year, he granted Zhejiang the new role of pioneer of Chinese modernization and the new mission of vigorously writing a new chapter of Chinese modernization in Zhejiang, elevating the province's development to an unprecedented level. We have remembered the general secretary's entrustment, gratefully advanced under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely carried out the in-depth implementation of the "Double-Eight Strategy," and strived to be pioneers on the new journey, writing a new chapter. Zhejiang has greater comprehensive strength, more robust vitality, more harmonious urban and rural regions, and its people's lives are richer. The path of high-quality development is becoming broader and creating greater confidence.

We have continued to adhere to high-quality development as our top priority, resolutely embracing our role as a leading economic province. We implemented the "No. 1 Development Project" for digital economy innovation and quality enhancement, the "No. 1 Reform Project" to optimize and improve the business environment, and the "No. 1 Opening-up Project" to empower and elevate the "sweet potato economy" (symbolizing Zhejiang's growth strategy, with local investments spreading globally like sweet potato vines, enhancing international engagement and strengthening the local economy). With these three "No. 1" projects as the overall driving force, we initiated and implemented the "Ten Major Projects," including the "Thousand Major Projects, Trillion Yuan Investment" initiative, as specific action points and entryways to accelerate the creation of a modern industrial system with Zhejiang characteristics, and to promote effective qualitative improvements and reasonable quantitative growth of the economy. In 2023, the province's GDP reached 8.2553 trillion yuan, growing by 6%, and creating 6.5% of the national GDP with only 1.1% of the country's land and 4.7% of its population. The general public budget revenue was 860 billion yuan, an increase of 7%, ranking third nationwide in total volume.

We vigorously promoted further innovation, deepened reforms, overcame challenges, and enhanced opening-up to further cultivate and solidify our lead in future development. We focused on leveraging scientific and technological innovations to create new development advantages, accelerating the growth of new quality productive forces, with the R&D intensity of the whole society reaching 3.15%, and our regional innovation capability ranking fourth nationwide. We strived to build a market-oriented, law-based and internationally first-class business environment, implementing 32 policy measures to promote the high-quality development of the private economy, boosting market expectations and corporate confidence. The number of market entities in the province has reached 10.4 million, meaning there is one entrepreneur for every 6.5 people in Zhejiang. We focused on amplifying the advantages of an open economy: In 2023, the total import and export volume of the province reached 4.9 trillion yuan, of which 3.57 trillion yuan were exports, accounting for as much as 15% of the national total.

We remained focused on narrowing the "three major gaps" (the urban-rural income gap, the per capita GDP gap between eastern and western regions, and the wealth gap between the urban rich and poor) as our principal direction, making concrete progress in the construction of a demonstration zone for common prosperity. We consistently deepened the "Thousand Villages Demonstration and Ten Thousand Villages Renovation" project, supported the high-quality development of mountainous and island counties with a "one county, one policy" strategy, and leveraged the integration of basic public services as a breakthrough point to further reduce disparities between regions, urban and rural areas, and incomes. This fostered the integrated development of urban and rural areas, and accelerated the drawing of a new picture of "thousands of villages playing leading roles, tens of thousands of villages being revitalized, common prosperity across the province, and harmonious and beautiful urban and rural areas." In 2023, the per capita disposable income of urban and rural residents reached 74,997 yuan and 40,311 yuan, respectively, maintaining first place among all provinces and regions for 23 and 39 consecutive years, respectively. The urban-rural income gap ratio has narrowed to 1.86; the disparity between different regions continues to diminish; and the per capita disposable income gap ratio between the highest and lowest earners in cities with subordinate districts reduced to 1.56.

We put into practice the idea that "lucid waters and lush mountains are invaluable assets," and continuously make the effort to highlight the uniqueness of the "picturesque and dynamic Zhejiang." We are committed to building the province into a "big garden." In 2019, Zhejiang was recognized as the first ecological province in China. In 2023, the first National Ecology Day events were held in Zhejiang. The Green Rural Revival Program and the Blue Circle program that focuses on marine plastic waste treatment won the United Nation's Champions of the Earth award, successively. The province's forest coverage rate stands at 61.3%, ranking the third in the country.

Zhejiang is committed to implementing a "streamlined, safe and splendid" competition planning protocol for sporting events, ensuring that both the Hangzhou Asian Games and Asian Para Games are successful. Additionally, such efforts also serve as a window to showcase Chinese modernization. The Hangzhou Asian Games and Asian Para Games deliver to the world a great event that is distinctly Chinese, uniquely Asian and spectacular, allowing the world, therefore, to experience the dramatic changes in Zhejiang under the guidance of the "Double-Eight Strategy," as well as the outcomes of China's high-quality development and the vitality of modernization. It also gives a strong impetus for us to keep going on the new journey and make achievements in the new era.

We will thoroughly study and implement the spirit of important speeches and instructions made by General Secretary Xi Jinping, and take high-quality development as an obligatory task, striving to reach the goal of meeting people's expectations for a better life. We will implement the "Double-Eight Strategy" in a pragmatic manner and aim toward writing a new chapter in advancing Chinese modernization in Zhejiang, so as to contribute more to the building of a strong country and rejuvenation of our nation.

That's all for my brief introduction. Thank you.

Chen Wenjun:

Thank you, Mr. Wang. Now the floor is open for questions. Please identify your media outlet before raising questions.

CMG:

It has been more than 20 years since Zhejiang adopted the "Double-Eight Strategy." What efforts, centering on the high-quality development, will be made to further advance the "Double-Eight Strategy?" Thank you. 

Wang Hao:

Thank you for your question, and I'll answer it. General Secretary Xi Jinping personally proposed the "Double-Eight Strategy" for the development of Zhejiang when he worked in the province, and made a series of key and foresighted decisions and arrangements. Last year marked the 20th anniversary of the implementation of the "Double-Eight Strategy." Guided by the "Double-Eight Strategy," Zhejiang in the past 20 years has witnessed remarkable changes in a widespread, systemic and profound manner. Under the guidance of the "Double-Eight Strategy," historic achievements have been made in high-quality development and modernization. Looking forward, Zhejiang will continue to unswervingly and fully implement the "Double-Eight Strategy" so as to "serve as a pioneer, and write a new chapter."

Currently, Zhejiang has continued putting into practice the "Double-Eight Strategy," which aims to achieve the goal of becoming "a pioneer in Chinese modernization," as well as the mission of "writing a new chapter of Zhejiang in advancing Chinese modernization." Year in and year out, we will stay focused on our goal and work hard toward it, ensuring our efforts are always results-oriented, pioneering and responsive to the trends of the time. We will step up endeavors in the following four aspects:

First, we will make greater efforts to address the "growing pains" that emerge when pursuing high-quality development, and take the lead in building new strengths for development through sci-tech innovation. We will stay committed to the path of new industrialization, and ramp up efforts to develop new quality productive forces according to local conditions. We will promote the building of a sci-tech innovation system and foster advanced manufacturing clusters, and pursue progress in making Zhejiang a strong province in education, science and technology and human resources. We will boost efforts to address problems that hinder high-quality development, such as the lack of resource factors, weakened momentum, constrained development spaces and imbalances and inadequacies, so as to build the province into a place with high-level capabilities for innovation and an advanced manufacturing base in the world.

Second, we will step up efforts to make landmark achievements in building a demonstration zone for common prosperity, and establish the province into a key example in promoting common prosperity. We will explore and establish fundamental systems and mechanisms that are conducive to promoting common prosperity. Greater efforts will be made to advance the Green Rural Revival Program in the new era and promote high-quality development in counties located in both mountainous regions and island areas. We will strive for high-quality shared public services so as to guarantee that more tangible benefits can be delivered to the people. Meanwhile, we will try our best to create more experiential practices that can be repeated and promoted.

Third, we will make greater efforts to explore new ways in deepening institutional innovation, and write a new chapter in deepening reform and opening up. We will promote the reform of public services in a bid to lower enterprise costs and increase their profits, continuing to improve the business environment so as to promote high-quality development of the private economy and to build the province into a pilot for high-quality and efficient reform. We will promote high-level opening up and encourage enterprises to "go global" and "bring in foreign investments." Intensified efforts will be made to build world-class ports and to steadily expand institutional opening up with the aim of making the province outstanding for higher-level opening up.

Fourth, we will focus on enhancing the potential of Zhejiang's culture to actively explore our path toward modern Chinese civilization. We will champion the Red Boat Spirit of the Chinese Communists and the Zhejiang Spirit that keeps pace with the times. Cultural heritage sites, including the Liangzhu Ruins, the West Lake, and the Grand Canal, will be better preserved and passed on. We will also advocate for the deep integration of culture and tourism and develop cultural programs and the cultural industry, aiming to make Zhejiang a renowned and favored destination , known for its picturesque landscapes, traditional Chinese culture, and dynamic development.

Seeking solid progress in implementing the "Double-Eight Strategy" is both a demanding and important task. We will see that officials correctly understand what it means to perform well and integrate this understanding into their actions. Every task should be implemented and deliver tangible results. By doing so, Zhejiang will take decisive, rapid, and effective steps to fully implement the requirements of General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee. 

That's all from me. Thank you.

21st Century Business Herald:

This year's No. 1 central document mandates that all localities draw on and apply the experience from the Green Rural Revival Program in Zhejiang province to advance rural revitalization. Could you please introduce the changes the program has brought to Zhejiang? Thank you.

Xu Wenguang:

Okay, I'll take this question. Over the past two decades, the Green Rural Revival Program has made thousands of villages beautiful and improved the well-being of thousands of people in Zhejiang. The program won the UN Champions of the Earth award and has been praised by Zhejiang farmers as the most welcomed and most beneficial practice to farmers adopted by the Party and the government since implementing the household contract responsibility system. My introduction will focus on three aspects:

First, the Green Rural Revival Program has brought tremendous changes to rural areas. Many people say that the villages in Zhejiang are the most impressive, with beautiful landscapes everywhere they go. Through the full implementation of the Green Rural Revival Program, we have achieved public transportation coverage and broadband connection in all villages. Public service centers have been built in every village. The centralized treatment of sewage and refuse has resulted in cleaner courtyards and a more beautiful rural environment. Meanwhile, we have adopted a category-based, region-specific approach to focus on specialty products and the diverse beauty of individual villages. Urban residents visit the beautiful countryside to experience a poetic life far from the hustle and bustle of the city. Their consumption during countryside trips attracts more young people to return to their hometowns to start businesses, creating a positive cycle.

Second, the Green Rural Revival Program has developed a model of integrated urban-rural development. From the start, it was not merely about improving the rural living environment. It was not a simple task of painting walls or decorating villages, but a new approach to treating cities and the countryside as indivisible, systematically encouraging interaction between the two to accomplish integrated development. During the sewage revolution, garbage revolution, toilet revolution, and the construction of a beautiful and harmonious countryside, we have consistently emphasized the leading role of cities and the supporting role of the countryside in each other's development. By doing so, we have created a favorable environment for integrated urban-rural development in Zhejiang.

Third, the Green Rural Revival Program has advanced rural governance based on collaboration, participation, and shared benefits. We have taken into full account the government's capabilities and the people's desires. The government should proactively, earnestly, and with concrete steps perform its duties where necessary while avoiding overreach that would dominate or interfere in matters where the people should have greater say. By doing so, we have established an effective rural governance model, ensuring that the people are at the heart of rural revitalization and benefit directly from it. In recent years, eco-agriculture, rural e-commerce, rural tourism, and other new forms of business have thrived in Zhejiang. The province has nurtured "new farmers" for modern agriculture and built "common prosperity workshops" to ensure that all rural residents have jobs and income. As a result, the per capita disposable income of rural residents has exceeded 40,000 yuan. All these efforts facilitate our goals of building a beautiful countryside, creating a beautiful economy, and pursuing a be

tter life.

Next, we will continue to deepen the Green Rural Revival Program in the new era. By coordinating efforts to strengthen , rural and urban prosperity, and integrated development, Zhejiang will contribute more to advancing rural revitalization across the board.

That's all from me. Thank you.

Hong Kong Bauhinia Magazine:

The CPC Central Committee has entrusted Zhejiang with an important mission to build a demonstration zone for common prosperity through high-quality development. What measures has the province taken in recent years to advance common prosperity and promote coordinated urban-rural and regional development? Thank you.

Du Xuliang:

Thank you for your question. In recent years, we have made high-quality development our main task, focused on narrowing the "three major gaps," taken reform and innovation as our fundamental driving force, and aimed to satisfy the people's demand for a better life. We have taken down-to-earth and well-targeted steps and yielded solid results in the building of a demonstration zone. I think this work can be summarized in three sentences:

The first sentence is about narrowing the regional gap and putting mountain and sea areas on a journey toward common prosperity. For Zhejiang, the key and the challenge in achieving common prosperity lie in the counties located in mountainous areas and islands. We have formulated a "one county, one policy" approach to promote a path of shared prosperity with distinctive characteristics for mountainous and island counties. For example, Jingning county in the city of Lishui, Zhejiang province, is the only She autonomous county in the country. We have supported local governments in developing specialty brands such as tea leaves and green agricultural products, to create a model of high-quality public services in mountainous counties, helping the local people share in the prosperity. Similarly, Shengsi county, the island county in Zhejiang furthest from the mainland, has focused on resources such as fishing, ports and tourism, creating a model for the development of island counties. In the past two years, the major economic indicators and the income growth rate of residents in Zhejiang's mountainous and island counties have both been higher than the provincial average.

The second sentence is about narrowing the urban-rural gap and helping cities and villages thrive on their own conditions. We have promoted the integrated development of urban and rural areas, and tried to ensure all residents enjoy a happy life. In Zhejiang, with village and residential committees as the core, people can access public services such as medical care, elderly care, and education within a 15-minute walk in cities or a 15-minute ride in the countryside. More than 90% of villages in the province have completed the "Beautiful Village in the New Era" program. The goal of developing the economy while preserving the rural environment is gradually becoming a reality.

The third sentence is about narrowing the income gap and striving to expand employment. We have ramped up efforts to expand the middle-income group and raise the income of the low-income group. We also launched the "Employment and Entrepreneurship in Zhejiang" program, and made more efforts to increase the incomes of people on low incomes. For instance, we have actively promoted the "shared prosperity workshops" and guided eligible enterprises to establish production and processing lines in rural areas, making it convenient for more people, and especially the low-income group, to find jobs locally. At present, the province has built over 10,000 "shared prosperity workshops," creating nearly 500,000 jobs, with average monthly incomes rising by around 2,600 yuan per person.

Promoting common prosperity is a long-term task. We will continue to step up our efforts to make the economic pie bigger and divide it well, and also make sure that more successful practices can be replicated in other parts of China.

That is all from me. Thank you.

Phoenix TV:

We know that Zhejiang's private economy is very active, with a large number of business entities. Going forward, what measures will the province take to promote its private economy? Thank you.

Du Xuliang:

Thank you for your question. Zhejiang merchants are a precious resource and wealth for Zhejiang. They are hardworking, enterprising, resourceful, and resilient. They have made outstanding contributions to the high-quality development of Zhejiang. This can be illustrated with a set of figures: By the end of 2023, the private economy had contributed 67.2% of Zhejiang's GDP, 71.7% of its tax revenue, 80.2% of its imports and exports, 87.5% of its employment, and 96.9% of its market entities. The province has ranked first in the country for 25 consecutive years for the number of top-500 private enterprises. We often say that we should not only care about what achievements these private enterprises have made, but also what challenges and difficulties they have faced. Therefore, we fully support the development of the private economy, strive to reduce pressure on the environment, provide timely assistance, and address concerns about development. By doing so, we hope to boost internal drive for development and stimulate greater vitality for innovation, creating new advantages for the development of the private economy. The main measures are as follows: 

First, we will safeguard the development of private enterprises based on the rule of law, and ensure they are confident in their investment. Zhejiang province has introduced regulations on fostering the growth of its micro, small and medium-sized enterprises and on optimizing its business environment. We have strengthened work regarding the enactment, revision, abolition and interpretation of laws and regulations related to the business environment. We have abolished and revised 20 regulations, and overhauled and standardized 2,379 normative documents, striving to create a stable, fair, transparent, and predictable environment for the development of private enterprises.

Second, we will introduce more pro-business policies for private enterprises. Among the 32 policies introduced to promote the high-quality development of Zhejiang's private economy, there are many substantial and new measures. For example, to further break the "glass doors," "invisible doors," and "swing doors" that hinder business, we proposed the "Seven Prohibitions," such as lifting restrictions on ownership forms, organizational forms, or equity structures. They are aimed to remove barriers that prevent private enterprises from participating fairly in bidding. Furthermore, to fully meet the urgent needs of private enterprises for resource elements, we have proposed a new mechanism, whereby the proportions of industrial funds, newly added land, and new energy consumption in private investment projects should all exceed 70%.

Third, we will provide continuous support for the development environment and ensure private enterprises to grow confidently. We have outlined and proposed "three lists of projects" recommended to private capital, namely, a list of major projects and those addressing weaknesses, a list of key projects on industrial and supply chains, and a list of user-pay franchise projects. Additionally, we actively support private capital's entry into traditional monopolistic fields such as railways, oil and gas. Private investment has participated in the construction of landmark projects like the Hangzhou-Shaoxing-Taizhou Railway, the Hangzhou-Wenzhou Railway, the Zhoushan green petrochemical base, and the San'ao nuclear power plant.

In summary, we will steadfastly work to consolidate and develop the public sector while encouraging, supporting, and guiding the development of the private sector. We will make greater efforts to help private enterprises solve their problems, enable private investment to enter and thrive in more areas, encourage private enterprises to expand into more markets and grow stronger, and continuously enhance Zhejiang's private economy as the "golden business card" of the province. Thank you!

zhonghongwang.com:

We observed that this year, Zhejiang's "first meeting of the Lunar New Year" made comprehensive arrangements for building a skilled workforce. Could you please tell us what measures Zhejiang will take to attract high-caliber talent and stimulate innovation vitality? Thank you.

Lu Shan:

Thank you for your question. This year, our "first meeting of the Lunar New Year" was themed around seeking solid progress in implementing the "Double-Eight Strategy." We are focused on comprehensively strengthening the development of three key teams: high-caliber officials, high-level innovative talents and entrepreneurs, and highly skilled workers. These efforts provide solid support for pioneers and breakthroughs.

Here, I will focus on the development of high-level innovative talents and elaborate on our measures in three areas:

First, we will attach equal emphasis to attracting and nurturing talent to gather a greater pool of talent. With eagerness and sincerity, Zhejiang consistently seeks talent from home and abroad to come and develop in the province. In 2023, the province attracted 1.25 million university graduates, brought in and fostered 535 state-level leading talents and 523 young talents. At the same time, we emphasize the cultivation of innovative spirits and capabilities, with particular attention given to nurturing outstanding innovative talents and improving the quality of independent talent cultivation. In particular, we actively develop higher education to its full potential and enhance its overall level, advancing the integration of science with education, industry with education, as well as vocational and general education. We aim to cultivate more young talents capable of adapting to the demands of new quality productive forces.

Second, we will establish a good platform to enable talents to achieve greatness. We will accelerate the construction of scientific and technological innovation platforms such as national laboratories, the top 10 provincial laboratories, the top 10 provincial technology innovation centers, 21 national key laboratories, and 119 provincial-level new R&D institutions. We will also support enterprises in establishing technology centers and R&D centers and encourage leading enterprises to lead the establishment of innovation consortia. We will provide a broad stage for talents to display their capabilities and achieve their aspirations, making Zhejiang a place where various talents can realize their value. For example, the Liangzhu Laboratory emphasizes enabling young talents to shoulder major responsibilities and play leading roles, cultivating a group of entrepreneurial and innovative talents with both the spirits of scientists and the qualities of businesspeople.

Third, we will optimize services to retain talent. We will focus on addressing the key concerns of professionals in five aspects: housing, transportation, childcare, registered residency, and income. We will continuously upgrade and improve the four major systems: the financial support system for talent development, the housing guarantee system for talents, the education service system ensuring quality education, and the comprehensive healthcare service system covering people's entire lifespans. This is aimed at alleviating the worries of talents and transforming Zhejiang into a haven where all types of talents can thrive and settle. We will promote the value-added reform of talent services, delegate power to employers, and ease restrictions on talent, ensuring that we refrain from unnecessary interference and remain responsive to their needs. We will establish an efficient system for the transformation and application of scientific and technological achievements, enhance the system for intellectual property protection, adopt a tolerant and prudent approach to supervising innovation and entrepreneurship activities, and support the development of new industries, formats, and models. This fosters a virtuous cycle where Zhejiang nurtures talents and talents contribute to the prosperity of Zhejiang.

That's all I want to say. Thank you!

Tide News under Zhejiang Daily Press Group:

At the end of every year, people in Zhejiang receive an open letter from the provincial governor, soliciting practical project proposals that the provincial government will undertake in the following year. Could you please inform us how Zhejiang province handles this matter and what the results are? Thank you.

Wang Hao: 

Thank you for your question. I'll answer it. Our goal is to fulfill the people's expectations for better lives. Practical work concerning people's livelihoods is not only a major project for improving livelihoods and development but also a major project for winning people's hearts. Back in 2004 when General Secretary Xi Jinping worked in Zhejiang, he personally advanced the efforts of the CPC Zhejiang Provincial Committee and the Zhejiang provincial government to take the lead in issuing the "Opinions on Establishing and Improving a Long-term Mechanism for Delivering Services to the People." For the first time, "focusing on 10 aspects of practical matters concerning livelihoods" was included in the provincial government work report. For the past 20 years, we have been dedicated to addressing the most pressing, direct, and practical issues of the people. With the collaboration of provincial, city, and county-level governments, we dedicate ourselves to practical matters for the people each year, creating a "golden business card" for Zhejiang.

In 2023, we focused on practical matters to improve people's livelihoods and launched the "Seven Benefits" public service project. This initiative was designed to ensure people's access to quality childcare, education, employment, medical services, elderly care, housing, and social assistance.. These are the specific contents of the "Seven Benefits." Based on this project, the provincial government identified 10 key aspects for improving people's livelihoods in 2023 and detailed them into 56 major items and 31,569 specific matters and tasks. Through our efforts over the past year, we have fully achieved the anticipated target, with a satisfaction rate of 99.5% among the public. In 2024, the provincial government will continue to plan and implement 32 projects in 10 key aspects. Our main approach in specific work is as follows:

In the solicitation phase, we collect suggestions for livelihood projects through the governor's open letter, ensuring people's voices are heard and responded to. Every October, the provincial government issues an open letter in the name of the governor to the entire province, seeking opinions and suggestions from the public on the practical matters concerning the coming year's livelihood projects. The response has always been enthusiastic, with high public participation. The open letter for soliciting livelihood projects in 2024 received 29.33 million views and over 40,000 suggestions.

When planning livelihood projects, we adhere to the principle of doing our best within our capabilities, focusing on addressing the most urgent and pressing issues of public concern. We prioritize basic, inclusive, and essential livelihood security, targeting major issues that people are deeply concerned, and those minor yet significant matters affecting people's daily lives. We strive to implement livelihood projects that truly resonate with the people. At the same time, we promote inclusive and accessible basic public services through these projects without being overambitious or inflating expectations. Moreover, we ensure that improving people's livelihoods is based on sustainable economic development and fiscal capacity at all levels.

In the decision-making process for public livelihood projects, we invite deputies to the People's Congress and members of the Political Consultative Committee to thoroughly review and discuss the projects, with the government strictly implementing and ensuring proper execution. We consider the 10 aspects of the provincial government's livelihood projects as a key part of the annual government work report and submit them to the provincial "two sessions" for review and discussion. Additionally, at the municipal, county and township levels, we have implemented a voting system by deputies to the People's Congress to decide on livelihood projects. This means that the projects are submitted to the People's Congress, and the specific projects to be implemented are determined through a differential voting process by the deputies. Based on the voting results of deputies at all levels, we identify the specific implementation items each year, promoting a more democratic, standardized, and rule-based mechanism for addressing public welfare matters.

In the implementation phase, we adhere to quantification, digitization, and closed-loop management to ensure that our promises are kept and that our actions lead to results. Every year, the provincial government's 10 aspects of livelihood projects are divided into a system of "two lists": a project list and a construction standard list. We clearly define the specific locations, construction standards, completion timelines, and responsible entities for each project. All projects are included in the government's digital platform for supervision. At the year's end, we publicly announce the progress of each project and location and present a report to the deputies and members of the provincial "two sessions." Simultaneously, we conduct evaluations on the public's satisfaction with the implementation of these projects, ensuring results and the fulfillment of our promises.

That's all for my answer. Thank you!

China Daily:

Recently, Zhejiang province's "one-stop service window for unresolved issues" has attracted attention online and in the media, even trending on social media. Could you please share with us any future innovations and explorations the province plans to undertake to improve the business environment and provide convenience to enterprises? Thank you.

Xu Wenguang:

Thank you for your question. I appreciate everyone's concern for Zhejiang province's business environment. The business environment is a concentrated reflection of comprehensive competitiveness, closely related to Mr. Du Xuliang's previous answer regarding the private economy. Zhejiang province has never stopped its steps to optimize business environment, including  improvement of work efficiency, "four lists and one network" reform, "one-stop service " project and the digital transition. Since 2023, the province has vigorously implemented the "No.1 Reform Project" to optimize and upgrade the business environment, led by the reform of value-added government services, continuously promoting the business environment to the forefront of the country. Zhejiang has been rated as the province with the best reputation for the business environment by the All-China Federation of Industry and Commerce for four consecutive years. By the way, I am the team leader of this project. 

The value-added reform of government services we are promoting can be summarized into four new methods:

First, we have created a new platform where all kinds of matters can be handled in one location. By leveraging existing local government service centers, we have established comprehensive enterprise service centers. Here, businesses can access not only basic government services, such as convenient approvals, but also enjoy customized, advanced services according to their needs. For example, when opening a restaurant, not only can basic government services such as registration and seal engraving be handled at one time, but more than 10 value-added services, such as catering site surveys and fire safety guidance, can also be provided at the same time. The one-stop service window you just mentioned is set up in the comprehensive enterprise service center, ensuring that all kinds of matters and complicated issues that are difficult to handle through conventional "technical judgment" but should be managed based on "value judgment" can all be resolved here.

Second, we have provided directly accessible new experiences that strengthen digital intelligence empowerment policies. Leveraging the achievements of digital reform, we created an online "policy calculator" to accurately deliver the 32 policies for high-quality development of the private sector and other enterprise-friendly policies issued by our province directly to enterprises, allowing them to access and benefit from the policies without needing to apply. We transformed the business environment from "enterprises searching for policies" to "policies finding enterprises." In 2023, Zhejiang distributed 71.2 billion yuan in rewards and subsidies, reducing the financial burden on market entities by more than 330 billion yuan.

Third, we have built a new mechanism for the efficient, closed-loop resolution of enterprise-related issues. The most effective approach involves proactively addressing the demands of enterprises and solving their various challenges. We have established an efficient closed-loop resolution mechanism for enterprise-related issues, striving to collect and efficiently resolve enterprise-related issues on a multi-tiered, multi-level and categorized basis. We call it the "three-classification mechanism." This mechanism shifts away from the traditional reliance on personal acquaintances and interpersonal relationships when enterprises encounter problems. Instead, it provides institutional arrangements between the government and businesses, as well as business environment evaluation.

Fourth, we have made new breakthroughs in addressing challenging issues. We concentrate on areas such as bidding, intermediary services, intellectual property protection, and the relationship between government and business. We have planned and implemented special initiatives to remove various institutional barriers to enhance the sense of gain and degree of satisfaction among enterprises and the public. For example, to cultivate a cordial and clean relationship between government and business, we issued behavioral guidelines and formulated three lists to categorize positive, negative, and recommended interactions between government and business.

There is no best business environment, only a better one. Zhejiang will further advance the "No. 1 Reform Project" to improve the business environment, providing a strong impetus for developing new quality productive forces and promoting high-quality development.

That's all from me for this question. Thank you.

China Arab TV:

Facing a complex and fast-changing international environment, how will Zhejiang, as an export-oriented province, respond to challenges and promote openness? Thank you.

Lu Shan:

Thank you for your question. Mr. Wang Hao just mentioned that Zhejiang's total import and export volume last year reached 4.9 trillion yuan, ranking at the forefront among provinces, autonomous regions, and municipalities in terms of contribution to national import and export growth. As you said, with Zhejiang's foreign trade dependence ratio surpassing 60%, the development of an open economy is of great significance to us. Moving forward, we will focus on promoting the "three further improvements," including improving our open economy, becoming a dual circulation strategic hub, and expanding our institutional opening-up system. We will actively participate in the Belt and Road Initiative, deeply implement the "No. 1 Opening-up Project," and accelerate Zhejiang's transition into a province with higher-level opening-up. I will report on three specific aspects:

First, we will promote institutional opening-up and improve the level of openness. We will support open platforms, such as the Zhejiang Pilot Free Trade Zone, to align with international high-standard economic and trade rules, steadily promote the institutional opening-up of rules, regulations, management, and standards, accelerate the formation of new mechanisms for trade and investment cooperation, and fully promote the construction of Ningbo Zhoushan Port into a world-class port to enhance its capacity for commodity resource allocation. We will support Yiwu city in deepening the comprehensive reform of international trade, making it easier for global buyers to purchase and sell products worldwide. It is necessary to innovate and develop digital trade and optimize the "cross-border e-commerce + industrial belt" and "overseas warehouse + front warehouse + independent station" models to help more micro-, small- and medium-sized enterprises open stores and sell goods globally.

In September this year, the third Global Digital Trade Expo will be held in Hangzhou. This expo was elevated to a national first-class exhibition last year and was also included in this year's government work report. We will further promote the expo as a national-level international professional exhibition under the theme of digital trade and go all out to host this grand event. Here, we sincerely invite businesspeople worldwide to attend the exhibition, discuss cooperation, promote common development, and share benefits.

Second, we will continue "bringing in" high-quality enterprises from around the world so they can share high-quality development opportunities in Zhejiang. We are committed to fostering a first-class business environment that is market-oriented, internationalized, and law-based. We implement a management system that combines pre-entry national treatment with the negative list, and by regularly hosting roundtable meetings for foreign-funded enterprises, we strive to help address production and operation difficulties, ensuring these companies have more confidence in their investments and development in China. We will advance the global investment promotion campaign of "invest in Zhejiang" and try our best to attract a number of large, high-quality and high-tech projects as well as foreign-funded enterprises that use unique and sophisticated technologies to produce novel and unique products. Last year, Saudi Aramco and Rongsheng Petrochemical Co. Ltd. in Zhejiang province achieved strategic cooperation. We sincerely hope more enterprises will choose Zhejiang as an important investment destination and take the "express train" of Zhejiang's high-quality development.

Third, we will continue "going global" to develop and expand the businesses of overseas Zhejiang residents. Zhejiang people have always been courageous pioneers, and currently, more than 2 million Zhejiang merchants are doing business worldwide. We will further steady progress and improve the quality of foreign trade by advancing the campaign of "tens of thousands of enterprises expanding the market to increase orders." We will motivate private enterprises to implement "pioneering actions," encourage them to make global plans, construct a number of overseas industrial parks with Zhejiang businesspeople as the main contributors, launch a series of "small but beautiful" projects such as Silk Road e-commerce, and build a number of multinational corporations deeply engaged in the international market. At the same time, we will deepen exchanges and cooperation with friendly provinces, states, and sister cities and enhance economic and trade exchanges, cultural communication, and mutual learning among civilizations on a wider scale.

That's all from me, thank you.

Chen Wenjun:

Due to time constraints, we'll take the last two questions.

CNR:

We have noticed that last year's inaugural National Ecology Day event was held in Huzhou. As the birthplace of the concept that "lucid waters and lush mountains are invaluable assets," how does Zhejiang give full play to its ecological value and turn "green" into "gold?" Thank you.

Xu Wenguang:

Thank you for your question. As Mr. Wang mentioned earlier, Zhejiang holds the distinction of being China's first ecological province. On Aug. 15, 2023, the first National Ecology Day event was held in Huzhou, Zhejiang province. Over the years, under the guidance of the concept that "lucid waters and lush mountains are invaluable assets," Zhejiang has continuously pursued development paths focused on economic transformation and upgrading, efficient resource use, continuous environmental improvement, and balanced and harmonious development between urban and rural areas. This approach is mainly reflected in the following four aspects:

First, we have pursued high value-added economic growth. We have continued to restructure and upgrade industries with persistence by constantly phasing out small, poorly managed, and heavily polluting enterprises and cultivating high-tech, high-precision and advanced industries. This allows for the development of eco-friendly industries and the industrialization of environmental protection, improving the quality of growth through the replacement of old growth drivers with new ones. We took the lead in the construction of collaborative innovation zones to reduce pollution and carbon emissions. Starting with cities, parks, enterprises, and other areas, we have promoted the integrated planning, deployment, promotion, and assessment of carbon emission and pollution reduction efforts to accelerate the realization of win-win environmental, climate, and economic benefits.

Second, we have focused on ecological conservation to improve the environment. We strengthened the synergistic effect of pollution and carbon reduction, rolled out a series of combined measures to advance water management, improve soil conservation, and reduce gas, waste and plastic pollution. In 2023, the proportion of excellent and good quality surface water controlled at the national level reached 97.5%, and air quality was good or excellent on 91.6% of the days over the past year. Over the past two years, we have made great efforts to address environmental problems that concern the public, including noise, odor, and black and malodorous water bodies. As a result, the public satisfaction rate for environmental protection has continued to improve for 12 consecutive years.

Third, we cultivated "new strengths" in governance. As the nation's first province to pilot the digital transformation of the ecological environment, we have established an integrated decision-making command platform covering the whole processes. We strived to achieve precise control to guarantee environmental quality, pinpointing and accurately managing issues. Notably, with the launch of the digital system for environmental impact assessment (EIA) in Zhejiang, we strived to use the least costs and time to ensure effective oversight while streamlining regulation, so as to facilitate enterprises to accelerate project construction. Presently, the EIA system has been accessed and used by enterprises for 270,000 times.

Fourth, we nurtured green "growth points." We prioritized leveraging social capital, market-oriented approaches, and third-party collaboration to catalyze the transformation of ecological value. This involved promoting ecological products' diversified development, multi-tiered utilization, and value increment at various links. For example, the Blue Circle environmental initiative was recognized with the United Nations Champions of the Earth Award for addressing marine plastic pollution. It engages fishermen, shipowners, and enterprises and mobilizes coastal communities to collect marine plastic waste. By establishing funds for secondary value distribution, this model not only offers a Chinese solution to the global challenge of marine plastic pollution but also boosts income for local fishermen. We firmly believe that through technological, model, and institutional innovations, we can undoubtedly transform more "lucid waters and green mountains" into even more valuable assets in the future.

That's all from me. Thank you.

Science and Technology Daily:

As a major economic province, what measures does Zhejiang plan to take next in building a modern industrial system and developing new quality productive forces? Thank you.

Du Xuliang:

Thank you for your question. We are actively implementing the arrangements of the central authorities while tailoring our efforts to the specific realities of Zhejiang, and swiftly constructing a modern industrial system that embodies the unique characteristics of our province. In essence, we aim to build a modern industrial system that is guided by the development of new quality productive forces, with advanced manufacturing as its core, propelled by technological innovation, and centered on digital economy; relying on modern transportation and logistics networks, and underpinned by modern infrastructure; and featuring a deep integration of modern services with advanced manufacturing and modern agriculture and a profound fusion of digital and real economy. 

We believe the following four aspects are of critical significance.

First, our approach entails establishing a "315" technology innovation system to develop new quality productive forces based on local conditions. In the "315" system, "3" signifies the building of three major hubs for science and technology innovation: internet plus, life and health, and new materials. And "15" means focusing on accelerating breakthroughs in 15 strategic areas essential for future development, including cloud computing and future networks, intelligent computing and artificial intelligence, and big data and information security. Our goal is to surpass a research and development intensity of 3.4% across society by 2027, with high-tech industries contributing 68% of the total value added by enterprises above designated size.

Second, our approach includes establishing "415X" advanced manufacturing industry clusters to expedite the development of a global advanced manufacturing hub. The construction of such an advanced manufacturing hub is a major strategic objective outlined in the "Double-Eight Strategy." The term "415X" represents our focus on consolidating superior resources to establish four advanced industrial clusters in next-generation information technology, high-end equipment, modern consumption and health, and green petrochemicals and new materials, each valued at 1 trillion yuan, as well as 15 featured industrial clusters valued at 100 billion yuan each and numerous high-growth emerging industrial clusters at the 10-billion-yuan level. By 2027, we aim to see the total revenue of enterprises above designated size within "415X" advanced manufacturing industry clusters surpass 12 trillion yuan, while maintaining the contribution of manufacturing value added to GDP at around one-third.

Third, we will implement the "Number One Development Project" to drive innovation and enhance the quality of the digital economy, empowering the upgrading of industrial and supply chain capabilities. Leveraging Zhejiang's first-mover advantages in developing digital economy, this project aims to exert digital economy's role to expand and multiply the results of socioeconomic development and better empower industrial development. We will move faster to foster strategic emerging industries like integrated circuits and artificial intelligence, while also accelerating the process of turning data into valuable assets. By 2027, we expect the digital economy's value added to exceed 7 trillion yuan, with core industries' value added surpassing 1.6 trillion yuan.

Fourth, we will continue to reach out for the further development of Zhejiang, enhancing our openness to the world. We are committed to seamlessly integrating high-level outbound cooperation with high-quality inbound cooperation, advancing institutional openness, and building world-class ports. We aim to drive the coordinated development of sea, air, land, and information ports, seeking to access, mobilize and allocate resources on a broader scale. By increasing openness, we will strive to create new opportunities for industrial development.

That's all from me. Thank you!

Chen Wenjun:

Thank you to Mr. Wang and other speakers. Thank you to all journalists. Today's press conference concludes here. Goodbye!

Translated and edited by Wang Qian, Zhang Rui, Gong Yingchun, Wang Ziteng, Yuan Fang, Ma Yujia, Li Xiao, Cui Can, He Shan, Mi Xingang, Wang Wei, Liu Sitong, Qin Qi, Zhang Junmian, Yan Bin, Zhang Tingting, Li Huiru, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers: 

Mr. Wu Hao, secretary-general of the National Development and Reform Commission (NDRC)

Mr. Zhu Bing, director general of the Department of Foreign Investment Administration at the Ministry of Commerce

Mr. Hua Zhong, a person in charge of the Department of Foreign Capital and Overseas Investment at the NDRC

Ms. Zhou Yu, a person in charge of the International Department at the People's Bank of China

Mr. Jia Tongbin, a person in charge of the Department of Foreigners Management at the National Immigration Administration

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 20, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to the regular briefing on the State Council's policies held by the State Council Information Office (SCIO). The Action Plan to Steadily Promote High-Level Opening-Up and Enhance Efforts to Attract and Utilize Foreign Investment has already been released to the public. To provide deeper insights, we are pleased to invite Mr. Wu Hao, secretary-general of the National Development and Reform Commission (NDRC), to introduce the action plan's details and answer your questions. Also attending today's briefing are Mr. Zhu Bing, director general of the Department of Foreign Investment Administration at the Ministry of Commerce; Mr. Hua Zhong, a person in charge of the Department of Foreign Capital and Overseas Investment at the NDRC; Ms. Zhou Yu, a person in charge of the International Department at the People's Bank of China; and Mr. Jia Tongbin, a person in charge of the Department of Foreigners Management at the National Immigration Administration.

Now, let's give the floor to Mr. Wu for his introduction.

Wu Hao:

Thank you, Ms. Shou. Good afternoon. Recently, the General Office of the State Council issued the Action Plan to Steadily Promote High-Level Opening-Up and Enhance Efforts to Attract and Utilize Foreign Investment. Yesterday, the full text was published on the Chinese government's official website. Next, I will briefly introduce the relevant information to you.

General Secretary Xi Jinping emphasized that China will continue to improve its level of opening up, build a new system for a higher-level open economy, and consistently create a business environment that is market-oriented, law-based and international. This year's government work report pointed out that we will promote alignment with high-standard international economic and trade rules, steadily expand institutional opening-up, ensure the overall stable performance of foreign trade and foreign investment, and foster new strengths in international economic cooperation and competition. 

To thoroughly implement the guiding principles of important instructions made by General Secretary Xi Jinping, as well as the decisions and arrangements of the Communist Party of China (CPC) Central Committee and the State Council, the NDRC and the Ministry of Commerce, in collaboration with relevant departments, have adhered to a problem-oriented approach. We have widely solicited opinions and suggestions from foreign-funded enterprises, and deeply analyzed difficulties and bottlenecks, as well as demands and hopes expressed by various parties. In light of the new circumstances and requirements, we actively planned a new round of more vigorous policies and measures to attract foreign investment, culminating in the formulation of the action plan.

In recent years, the Chinese government has continuously intensified its efforts to open up, launching a series of policies to stabilize foreign investment and optimize the environment for foreign investors. The introduction of the action plan once again demonstrates our high regard for attracting foreign investment, enhancing beneficial interactions with the global economy through high-level opening-up, and bolstering international investors' confidence in investing in China through concrete actions. The action plan adopts pragmatic measures to attract more foreign investment by expanding market access, facilitating the flow of innovation factors, and aligning with high-standard international economic and trade rules.

First, it further expands the space for foreign investment. The action plan proposes expanding market access and increasing the level of liberalization for foreign investments. A new version of the negative list for access of foreign investment will be introduced, continuing to reduce restrictions on foreign investment access. Additionally, pilot access programs will be launched in areas of great concern to foreign enterprises, such as health care and value-added telecommunications. At the same time, more qualified foreign institutions will be supported to conduct business in areas such as banking, insurance and bond funds.

Second, it further optimizes the business environment. The action plan proposes optimizing the environment for fair competition and providing good services to foreign-funded enterprises. It pushes for the effective implementation and execution of relevant policies, issues rules for fair competition reviews in the field of bidding and tendering, and focuses on eliminating local protectionism and ownership discrimination. It also introduces standards for government procurement of domestic products, requiring that products produced by both domestic and foreign-funded enterprises that meet the standards be treated equally in government procurement activities. Additionally, the action plan proposes improving the scientific rigor of administrative enforcement and promptly correcting irregular administrative enforcement actions.

Third, it further enhances the facilitation of cross-border factor flows. The action plan proposes facilitating the flow of innovation factors and promoting innovation cooperation between domestic and foreign-funded enterprises. Regarding the travel of business personnel, the action plan specifies that the visa validity period for management and technical personnel in foreign-funded enterprises, as well as their accompanying spouses and minor children, will be extended to two years. Additionally, it will provide greater convenience for foreign talents, facilitating their work, stay, residence and permanent residence in China. In terms of data flow, the action plan will promote the safe and orderly cross-border transmission of data related to research and development, production and sales of foreign-funded enterprises. It will also develop data transfer standards for the Guangdong-Hong Kong-Macao Greater Bay Area to facilitate convenient data flow within the bay area.

Next, the NDRC and the Ministry of Commerce will work with various regions and government departments to ensure the effective implementation of the action plan. We welcome foreign-funded enterprises and all sectors of society to provide suggestions and feedback on the implementation of the action plan. We will consider the satisfaction of enterprises and the public as a significant benchmark, striving to create a world-class business environment that is market-oriented, law-based and international, and provide service guarantees for foreign-funded enterprises investing and operating in China.

That is all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wu, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before raising your questions.

CCTV:

We noticed that both the Government Work Report and the action plan call for the expansion of the Catalogue of Encouraged Industries for Foreign Investment . What does the NDRC plan to do in this regard? Also, in what areas will foreign investment be encouraged in the future? Thank you.

Wu Hao:

Thank you for your questions. The Catalogue of Encouraged Industries for Foreign Investment is an investment promotion policy stipulated by the Foreign Investment Law and its supporting rules and regulations , encouraging and guiding foreign investors to invest in certain industries, areas and regions. The current 2022 edition of the Catalogue is now under revision. For more details, I will hand over to my colleague, Mr. Hua Zhong, from the Department of Foreign Capital and Overseas Investment.  

Hua Zhong:

Thank you, Mr. Wu, and thanks for the questions from CCTV. Here is more information on what's underway with expanding the Catalogue of Encouraged Industries for Foreign Investment.

The 2022 edition of the Catalogue contains a total of 1,474 items, including 519 items applicable nationwide and 955 items that target priority industries in central and western regions. Currently, eligible foreign investments in encouraged categories can enjoy three preferential policies in accordance with the law: (1) equipment imported for self-use in foreign investment projects within the total investment amount shall be exempt from customs duties (except for those listed in the Catalogue of Imported Major Technical Equipment and Products not Eligible for Tax Exemption and the Catalogue of Products Imported for Foreign Investment Projects and Not Eligible for Tax Exemption); (2) a reduced corporate income tax rate of 15% is applicable for qualified enterprises in encouraged industries in the western region and Hainan; and (3) priority access to land supply is granted to encouraged industrial projects with intensive land use, and the base price for such land may be set at no less than 70% of the national lowest price for industrial land of the same grade as the land in question.

According to the requirements of this year's Government Work Report, the NDRC, in collaboration with relevant departments, has initiated the revision of the Catalogue. During the process, we will engage in extensive consultations through field research, discussion forums and other forms with foreign chambers of commerce and foreign-invested enterprises to gather a wide range of opinions and demands. Our preliminary considerations include: first, the revision of the national catalogue will continue to prioritize foreign investment in the manufacturing sector while also promoting the integrated development of the service and manufacturing sectors. We will increase support for fields such as advanced manufacturing, modern services, advanced and new technologies, and energy-saving and environmental protection. We welcome multinational companies to continue expanding their investments in these areas within China and deepen cooperation with upstream and downstream enterprises for mutually beneficial and win-win development. Second, the revision of the catalogue for central and western regions will fully leverage the local resources and industrial conditions, appropriately increasing support for basic manufacturing, applicable technologies and consumer welfare projects. With rich resources, a vast market and sufficient human resources, China's central, western and northeastern regions enjoy increasingly better business environments. We invite global multinational companies to focus more on these areas and expand their operations there. Thank you!

Economic Daily:

We've noticed that the People's Bank of China (PBC) has frequently organized seminars with foreign-funded institutions to enhance dialogue. Additionally, last year saw the establishment of financial working groups with both the U.S. and the EU . Could you discuss the impact of financial diplomacy in stabilizing foreign investment? Thank you.

Zhou Yu:

Thank you for your interest in the People's Bank of China's work. Since last year, the PBC has intensified its efforts in international communication and collaboration. We've engaged actively with our counterparts in other countries' financial regulatory authorities and enhanced interactions with various international financial organizations and foreign financial institutions, particularly large multinational banks. These efforts have played a significant role in stabilizing foreign investments.

Speaking of our communication with international counterparts, as you might have noticed, the PBC has worked with U.S. and EU counterparts in establishing two working groups, namely, China-U.S. Financial Working Group with the U.S. Department of the Treasury, and the China-EU Financial Working Group with the Directorate General for Financial Stability, Financial Services and Capital Markets Union of the European Commission. These two groups signify the first dedicated communication and coordination mechanisms in the financial sector that the PBC has established with two of the world's leading economies, the United States and the European Union. To date, the China-U.S. Financial Working Group has convened three meetings and we just concluded the first meeting of the China-EU Financial Working Group yesterday. We also maintain similar cooperative and communicative mechanisms with BRICS nations and some neighboring Asian countries. These mechanisms are useful in the following aspects. First, they enhance our policy dialogue concerning macroeconomic issues, monetary policy and financial stability, thereby improving our mutual understanding of each other's policies and aid in our macroeconomic policy formulation.

Yesterday, a counterpart from the European Union offered an excellent description. He said that previously he had only known us by name, but now, through dialogue and interaction, he can connect our names with our lively faces, and that we now know who to contact in order to solve issues through conversation. 

Second, other than policy communication, both sides also offer support for financial institutions to solve specific issues through such exchange mechanisms and arrangements, so they can better operate businesses in each other's markets and jointly help boost the prosperity of the economy and the financial sector. In communication and exchange with major economies, we often compare notes on issues regarding international financial trends and global economic and financial stability. This kind of communication and exchange is also a type of global public good conducive to global financial stability. 

In addition to improving policy-related discussions in financial areas between financial regulators, we also focused on enhancing direct communication with foreign financial institutions. The PBOC has a great tradition of regularly holding talks with foreign financial institutions and enterprises, presided over by PBOC heads. Through face-to-face discussion, we listen to what the foreign institutions have to say, learn about their demands regarding business operations and reply to their questions on regulatory policies. We are more than happy to resolve their doubts and boost trust. Issues are solved on site wherever possible and unsolved ones will be itemized and tackled later on. 

As just mentioned, yesterday we held the first meeting of the China-EU Working Group on Financial Cooperation. As part of this communication mechanism of financial regulators, we specially hosted a China-EU Financial Roundtable yesterday afternoon where financial authorities from both sides heard the ideas and suggestions of nearly 30 banks, security firms, insurers, asset managers and credit bureaus from China and Europe. These financial institutions analyzed key areas to promote China-EU financial cooperation in the next steps while also sharing difficulties they've faced in practice and demands regarding business operations. Financial regulators from both sides readily agreed to take down these issues as "homework" to be completed, tackling these issues as early as possible in order to achieve tangible achievements as the result of cooperation. 

For example, to address the concerns of financial institutions, we focus on two aspects. First, cross-border flow of financial data. There are national regulations with cross-border data flow. The financial sector is data-intensive and subject to strict regulations. The cross-border data flow in this sector has its specificities. We learned about the demands of multinational financial institutions and conducted thorough study and research. On this basis, the PBOC is working with several other financial regulators to design an institutional arrangement for cross-border flow of financial data, to determine key data catalogues for the financial sector and to establish unified regulation and compliance standards. By adopting these measures, we guide foreign institutions with clearer regulations. With ensuring our financial and data security as the prerequisite, we pledge to do our best to help foreign financial institutions lower their compliance costs regarding cross-border data flow and improve efficiency of data transmission, enabling more agility and convenience in their Chinese operations to attract more foreign investment. 

Second, payment-related matters. We all know that China leads the world in terms of mobile payment. But due to varied payment habits, many foreigners have found it difficult to make payments in China. Lately, we issued a number of measures to improve payment services. We also released a payment guide for foreign nationals in China. I brought one with me today after handing out one to each of our EU counterparts yesterday. They thought the guide could come in handy and help them solve payment issues they might encounter while staying in China. We also plan to begin providing help at an earlier stage, offering the guide to foreigners even before they come to China so that, upon arrival, they will be able to enjoy more convenience payment-wise. 

In short, by talking to international peers, multinational financial institutions and foreign financial institutions, we are able to better understand each other's policies and help business entities effectively solve issues encountered in daily operations. These solid efforts improve the business environment and make China's financial sector more appealing. Thank you. 

N Videos at Southern Metropolis Daily:

Since last year, the scale of China's utilized foreign investment has declined. What does the NDRC think about this? And how do you plan to proceed with priority tasks? Thank you. 

Wu Hao:

Thank you for your questions. Indeed, we also noticed that domestic and international media recently showed much interest in the amount of China's actual utilized foreign investment. I believe this reflects concerns over whether or not China will continue to expand openness. General Secretary Xi Jinping stressed repeatedly that China's door of opening up will not be closed, instead it will open even wider. China firmly champions and safeguards economic globalization. We believe that opening up is an important force for boosting globalization. As for the issue of utilized foreign investment that you just mentioned, we may interpret it from three dimensions: 

First, from a global perspective, fluctuation in global cross-border investment is normal. In recent years, with the intertwining of global turmoil and increasingly complex global economic conditions, fluctuation in global cross-border investment has intensified. In 2021, after reaching a comparatively high level, global data showed a sustained decline. In January of this year, the "Global Investment Trends Monitor" released by the United Nations Conference on Trade and Development showed that global cross-border investment had decreased by 18% in 2023 after excluding transshipment factors in multinational enterprise investments. In such a context, China has maintained a robust momentum in attracting foreign investment.

Second, viewing from a longer time frame, China's actual utilization of foreign investment in 2023 remained at a historic high. Since the reform and opening up, China's actual utilization of foreign investment has continued to increase, becoming an important investment destination for global transnational corporations. Despite some fluctuations in the numerical scale of foreign investment in China during 2023, an assessment from both quantitative and qualitative standpoints reveals a more objective picture. In terms of quantity, China's actual utilization of foreign investment exceeded 1.1 trillion yuan last year, ranking the third highest on record. In terms of quality, the structure of foreign investment utilization in China continues to improve. In 2023, the proportion of investment in high-tech industries reached 37.4%, an increase of 1.3 percentage points compared to 2022, and the proportion of investment in the manufacturing sector reached 27.9%, an increase of 1.6 percentage points.

Third, from the perspective of future trends, China has significant advantages in attracting foreign investment, offering vast opportunities. China is the world's largest and most promising market, continuing to release enormous demand in advanced manufacturing, new urbanization and the upgrading of a structure for consumption. At the same time, China has a good and stable policy environment and the most complete industrial system in the world, which can provide multinational companies with efficient and reliable industrial support systems. China's growing infrastructure network, abundant talent resources and rich innovative application scenarios create a good investment space for foreign companies to expand into new technologies, industries and business models. Last year, the number of newly established foreign-funded enterprises in China increased by 39.7%, fully reflecting the enthusiasm of foreign capital in sharing opportunities in the Chinese market and their confidence in future investment prospects.

We believe that for multinational companies, partnering with China means embracing opportunity, and investing in China means investing in the future. Moving forward, the NDRC will work with various regions and departments to advance high-level opening up in accordance with the decisions and deployments of the Party Central Committee and the State Council. The focus will be on four aspects: First, we will steadily expand institutional opening up in terms of rules, regulations, management and standards to accelerate the creation of new hubs for opening up. Second, we will reasonably reduce the negative list for foreign investment entry, implementing measures to eliminate foreign investment restrictions in the manufacturing sector and further relaxing restrictions on foreign investment access. Third, we will continuously optimize the business environment, ensuring equal treatment for enterprises of various types of ownership and improving the direct communication mechanism for foreign-funded firms as well as resolving specific challenges encountered by foreign-funded projects during implementation and operational phases. Fourth, we will strengthen services for foreign-funded projects. We plan to roll out a new batch of major foreign-funded projects, strengthen the guarantee of project components and promote the inflow of foreign capital through flagship foreign-funded projects. Thank you!

Bloomberg: 

My question is about the 24-point plan that was released last year and then how you plan to update that plan. The commentary from various chambers of commerce — the Japanese Chamber of Commerce, the EU Chamber of Commerce, and the US Chamber of Commerce — is that although the 24-point plan was a good plan, very little of it was actually implemented in the time since. The only real thing I can see is the extension of tax changes. That's been the main thing that has been implemented from that point. So is this new plan an updating of the 24-point plan? Will that be continued? How would that be implemented to improve the business environment? Thank you.

Zhu Bing: 

Thank you for your question. First of all, last year, the State Council issued the "Opinions on Further Optimizing the Foreign Investment Environment and Increasing the Attraction of Foreign Investment," which is "the 24-point policy" you just mentioned. Since the introduction of this policy, it has received extensive attention and high praise from the industry. The Ministry of Commerce, together with various departments and localities, has been actively promoting the implementation of various policy measures according to their respective responsibilities. Recently, the Ministry of Commerce, along with relevant departments, conducted a phased assessment and evaluation of the implementation of "the 24-point policy," and adopted methods such as questionnaires and symposiums to solicit feedback from foreign-owned enterprises. Overall, more than 60% of the measures have been implemented or have made positive progress. More than 90% of the surveyed foreign-owned enterprises gave a relatively positive evaluation of our work.

Looking specifically at the progress you asked about, out of the 59 measures in six areas, 10 have been completed. For example, the Cyberspace Administration of China has issued a document explicitly prioritizing "effectively safeguarding the legitimate rights and interests of enterprises online" as a key task in reporting cases of online infringement, established a webpage for online reporting and launched the 12377 hotline number. In December, they highlighted a batch of typical cases, including issues raised by foreign-funded enterprises. The Ministry of Finance and the State Taxation Administration have also issued announcements, extending the implementation period of the tax exemption policy for subsidies received by foreign individuals and the tax refund policy for domestic equipment procurement by foreign-funded R&D institutions until the end of December 2027. They have also lowered the threshold for enjoying the tax refund policy related to domestic equipment. The National Intellectual Property Administration and the Ministry of Justice have issued the opinions on strengthening the adjudication of patent infringement disputes in the new era, further improving the administrative adjudication system and mechanisms. The National Immigration Administration has released a new version of the permanent residence identity card for foreigners, making transportation and daily consumption more convenient for foreign nationals in China. They also introduced measures such as relaxing the conditions for applying for port visas for foreign nationals coming to China. Progress has been made in 28 items at this stage. For example, the Cyberspace Administration of China has formulated relevant regulations on cross-border data flow and is currently seeking public opinions. The Ministry of Finance is actively formulating the definition of "domestically produced" for government procurement products. The National Medical Products Administration has proposed requirements on the application materials for market registration of chemical drugs and therapeutic biological products that are previously produced overseas and now produced domestically, and has sought public opinions on the draft announcement. The State Administration for Market Regulation has issued a work notice with measures to deal with policies that discriminate against foreign-funded enterprises and implement local protection. Meanwhile, 21 items are being continuously promoted. For example, the Ministry of Commerce is leveraging the role of special taskforces focusing on major foreign-invested projects under the coordination and service mechanism for foreign trade and foreign investment. They regularly coordinate and resolve difficulties encountered by these projects. The National Intellectual Property Administration supports relevant localities in setting up intellectual property service stations during exhibitions, strengthening exhibition-related intellectual property services such as issuing exhibition certificates, accepting applications for priority examination of patents, and providing comprehensive consultations.

Last month, we held a dedicated roundtable meeting on the implementation of the 24 Measures for Foreign Investment. We invited nine foreign chambers of commerce in China, including the ones you mentioned earlier — the Japanese Chamber of Commerce and the European Chamber of Commerce, as well as representatives from over 60 foreign-invested enterprises. Many foreign-invested companies and chambers of commerce have recognized and appreciated the tremendous efforts made by the Chinese government to improve the business environment. They have said that the Chinese market has huge potential and numerous opportunities, and they will continue to deepen their presence and expand their investment in China.

Next, the Ministry of Commerce, in collaboration with relevant departments, will continue to promote the swift implementation of various measures, evaluate foreign investment policy implementation, and provide timely updates to foreign-invested enterprises. The action plan is a newly issued document by the Chinese government, which calls for intensified efforts by all regions and departments to attract and utilize foreign investment. With this and the 24 Measures for Foreign Investment, we will strive to excel in this aspect of work. If foreign-invested enterprises encounter any difficulties or issues when trying to take advantages of the policies, then we encourage them to provide feedback to us, to help us better unleash the full benefits of these policies. Thank you. 

Global Times:

We have noticed that at recent State Council executive meetings, strengthening service guarantees in facilitating the flow of innovative elements and reinforcing confidence of foreign investment in China have been emphasized. As such, what additional measures are the National Immigration Administration taking to facilitate the entry of foreign individuals into China to engage in work, study, investment and entrepreneurship. Thank you.

Jia Tongbin:

Thank you for your question. We welcome more foreign friends to come to China to travel, work, study, invest and start businesses. The National Immigration Administration actively provides efficient and convenient immigration management services in terms of policies, mechanisms and procedures. We are collaborating closely with human resources and social security departments to strengthen information sharing, optimize procedures, and integrate application materials, on the basis of law-based and standardized management. We have comprehensively promoted the implementation of a one-stop approval mechanism for work permits and work-related residence permits for foreign nationals, which involves unified acceptance, parallel approval and simultaneous issuance. In order to facilitate efficient processing, the exit-entry administrations of public security authorities can issue residence permits with a validity period of up to five years for foreign nationals who are employed in China and have applied for work-related residence permits for a consecutive period of one or more years. Foreign management and professional technical personnel, as well as members of scientific research and innovation teams, working in well-known enterprises and research institutions, are also eligible for this policy. And for those who meet relevant conditions, permanent residency in China may be granted. Moreover, foreign management and professional technical personnel working in China are allowed to adjust their work positions across regions within the enterprises or institutions they work for or pursue degrees and continue education at domestic universities without needing to reapply for residence permits.  

The NIA has upgraded its services for the convenience of foreigners. For example, after on-site verification by the exit and entry administration departments of the public security organs, foreign nationals who apply for residence permits for the purpose of either investing, starting a business, working or studying in China no longer have to submit their passports during the processing time. If approved, they can receive a residence permit at an agreed time with their passport, thus allowing them to handle relevant affairs that require a passport during the meantime. When foreign nationals apply for visas, they no longer have to submit paper proof of accommodation within China and business licenses of the inviting or employing enterprises, if the relevant information can be verified online through the NIA's trans-departmental information sharing system. In addition, the NIA accelerated its application of information technology to facilitate foreign nationals' access to immigration management services. For example, the NIA launched both a web-based and a mobile edition of its service platform, through which foreign nationals can make online appointments, trace application progress and check personal visa information.

Next, working with relevant departments, the NIA will focus on helping attract talent and investment to foster a world-class business environment in China. We will formulate more active, open and effective entry and exit polices and measures to better serve the country's high-level opening-up, and help attract and utilize more foreign investment. Thank you.

China Daily:

How is China encouraging foreign enterprises to participate in China's high-quality development, especially in the green economy, digital economy and healthcare industry? Is there any specific measure or policy to support foreign enterprises' investment in these fields? Thank you.

Wu Hao:

Thanks for your questions. The green economy, digital economy and healthcare industry are key areas related to new types of consumption to be cultivated as is proposed in this year's government work report. They are also fields with huge potential and hot spots for global cross-border investment. The NDRC is working with relevant parties in this regard. Mr. Hua will give you a detailed introduction.

Hua Zhong:

Thank you, Mr. Wu, and thanks for the questions from China Daily. The NDRC is working with relevant departments on introducing effective measures to encourage and support foreign enterprises' investments in China's green economy, digital economy and healthcare industry, so as to share with them the great opportunities in the country's mega-market.

First, we have launched trials for market access. The action plan proposed that pilot free trade zones (FTZs) in Beijing, Shanghai and Guangdong be allowed to open up fields including the development and application of genetic diagnosis and treatment technologies, on a trial basis, to a few qualified foreign-invested enterprises, and that opening-up measures in information services (app stores only) achieve desired effects in the FTZs. The NDRC will work with relevant departments to effectively implement relevant polices.

Second, we have upgraded services for major foreign-funded projects. Together with relevant departments and provincial governments, the NDRC established a special working group mechanism to accelerate the implementation of major foreign-funded projects by promoting coordination to resolve issues related to project planning, approval, land use, sea use, environmental assessment and energy consumption. For major foreign-funded projects in the green economy, digital economy and healthcare industry, the mechanism will provide whole life cycle service and open green channel to facilitate their early implementation. As of the end of February, a number of such projects, which were listed in the first seven batches of 51 major foreign investment projects, had already started construction and operation in China. 

Last, we have introduced more supportive polices. In recent years, the Chinese government has initiated a series of policies, including the Catalogue for Guiding Industries in Green and Low-carbon Transition (2024 Edition), Three Year Action Plan for "Data Factors x" (2024-2026), and Opinions on Developing the Silver Economy to Enhance the Well-being of the Elderly. Measures have also been introduced to provide financial support for enterprises, including foreign-invested ones, when they invest in the green economy, digital economy and healthcare industry. When amending the Catalogue of Encouraged Industries for Foreign Investment , we fully considered the needs of digital logistics, intelligent manufacturing, biomedicine, energy conservation and environmental protection, and other fields. Thank you.

Nanfang Daily, Nanfang Plus:

We noticed that the action plan requires easing the visa application process for foreign business personnel and their families. Could you brief us on the background and content of relevant policies? Thank you.

Jia Tongbin:

Thank you for your interest in immigration management. The NIA earnestly implements the decisions and arrangements of the CPC Central Committee and the State Council, fulfilling its obligations to serve the country's high-standard opening-up and high-quality development. We continuously deepen reform of immigration management services; advance policy and institutional innovation, as well as system integration and promotion; and promote institutional opening-up in alignment with international high-standard economic and trade rules. These efforts aim to provide better and more convenient immigration management services for foreign investors and business personnel.

Since 2023, more than 20 policies and measures have been introduced to attract and support foreign nationals coming to China, providing services for their work and life in the country.

First, we have been continuously optimizing policies and measures for foreign nationals coming to China. We have promptly resumed and gradually relaxed the conditions for applying for port visas and launched port visa services at more ports. Port visa entry has been streamlined for foreign nationals holding ordinary passports who urgently need to come to China for business cooperation, visits, exchanges, investment, entrepreneurship, tourism, and other purposes. Currently, over 950,000 applications have been processed, bringing the number of issuances back to pre-pandemic levels. The scope of visa-free transit policy has also been steadily expanded. Foreign nationals from 54 countries are currently eligible for up to 72- or 144-hour transit visa-free policies, which are available at 31 ports in 18 provinces (autonomous regions and municipalities directly under the central government) in China. The visa-free transit policy has allowed a total of 550,000 foreigners to come to China for exchanges, cooperation, and business negotiations without visas.

Second, we have actively provided visa facilitation for international business personnel. For foreign nationals engaged in business cooperation, investment, and entrepreneurship in China, a multiple-entry visa can be issued for up to five years if there are legitimate reasons for multiple entries and exits. They can also extend or reissue their visas at the nearest location. After implementing the above policies, the number of visa applicants in China increased by 150% year on year. In accordance with the deployments of the action plan, two-year valid visas have been issued to foreign management and technical personnel of foreign-invested enterprises. Accompanying spouses and minor children are also eligible to apply for visas of the same duration. Extension or reissue procedures can be carried out for these visas. These measures further facilitate the exchange of international business personnel.

Third, we have been continuously improving immigration and entry-exit administration services. We have developed multilingual government websites and new media platforms to provide timely updates on policies and regulations concerning visa applications and the entry of foreign nationals into China. The 24-hour service hotline of the National Immigration Administration's (NIA) 12367 government affairs service platform has been launched globally. Since 2021, the 12367 service platform has provided consultations and resolved issues for more than 7 million people, achieving a service satisfaction rate of 97%. Relevant policies and measures have effectively promoted the exchange of foreign business personnel, stabilized expectations for development in China, and helped create a first-class business and foreign investment environment.

Next, the NIA will continue to focus on attracting and utilizing foreign investment with greater efforts. We will take the initiative to coordinate with relevant authorities and continue to deepen the reform of immigration management services, along with policy and system innovation. We aim to accelerate institutional opening-up, actively support the construction of a new development pattern, and promote a high level of opening-up to the outside world. Thanks.

China News Service:

We have noticed that the action plan calls for continued efforts to build the "Invest in China" brand. What steps will the MOC take to further develop this initiative? Thanks.

Zhu Bing:

Thank you for your question. Last year, in accordance with the State Council's directives, the MOC conducted a series of activities for the "Invest in China Year" campaign. We organized 20 key activities, including launch ceremonies, keynote forums, summit meetings, and special promotional events, to build communication platforms and facilitate the signing of numerous foreign investment projects.

The Central Economic Work Conference and the government work report both called for the building of the "Invest in China" brand. Moving forward, we will earnestly implement the decisions and deployments of the Party Central Committee and the State Council, and develop the "Invest in China" brand across three areas in accordance with the requirements of the action plan.

First, we will create high-quality activities. In 2024, we will combine "go-global" and "bring-in" investment promotion strategies and host over 20 high-quality events both domestically and internationally. On the morning of March 26, we will co-organize the first landmark event with the People's Government of Beijing Municipality at China National Convention Center. Many multinational companies have signed up for the event. According to statistics, over 60 general managers for the China region and higher-level executives have confirmed their participation. Additionally, we will host a series of activities such as "CIIE goes local" and local-themed promotions in various locations, as well as conduct promotions in Europe, the U.S., Japan, South Korea, and the Middle East. We welcome friends from the media to continue paying attention to "Invest in China" activities and help us promote it.

Second, we have provided high-quality services. Last year, we upgraded and established a roundtable conference system for foreign-funded enterprises and actively listened to the opinions, suggestions, and issues raised by these enterprises. So far, we have organized 17 roundtable conferences of various types, coordinated and resolved over 600 difficulties and problems raised by foreign enterprises, and identified a new batch of key foreign investment projects. We will continue to leverage the role of specialized groups for key foreign investment projects and hold monthly roundtable meetings with foreign-funded enterprises. We will make good use of channels such as the system for "collecting and handling problems and issues of foreign-funded enterprises" to address their concerns in a timely manner. In addition, we will further strengthen the "full life cycle" service guarantee for key foreign investment projects. This includes expediting project implementation, accelerating production, and achieving production targets ahead of schedule.

Third is to create a favorable environment. Since the introduction of the 24 pro-foreign investment measures , we have prompted relevant departments to implement support policies in a timely manner, continuously magnifying the benefits brought by our polices. At the same time, we will actively implement the MOC's functions described in the action plan, make continuous efforts in expanding access, promoting investment, improving services, optimizing the business environment and aligning with international high standards. All the efforts will accumulate positive effects in line with the 24 measures, strengthening the sense of fulfillment for enterprises. We will also work with all parties to implement the Foreign Investment Law and its implementation guidelines, comprehensively ensure that foreign enterprises can enjoy the same benefits as local ones, and create a world-class business environment.

Market News International: 

Since the introduction of Northbound Trading of Swap Connect , what is your evaluation of Swap Connect so far? Will the PBOC increase the current trading quota? And what new measures will the central bank take for the further opening of China's bond and derivatives market? Thank you.

Zhou Yu:

Thank you for your question. Swap Connect is indeed an important measure to prompt the opening-up of China's financial market in recent years. Its main function is to assist overseas investors to better manage their interest rate risks, which is very helpful to enhance the attractiveness of the domestic financial market. Since its launch in May last year, from our observations, it has been operating smoothly, achieving a total transaction volume of 1.2 trillion yuan in less than a year as of the end of last month. You also asked about its quota. Based on the current situation, the existing quota is sufficient. Of course, we also considered this, and if the quota is insufficient in the future, we have a communication mechanism with the Hong Kong regulatory authorities. We will consider increasing the quota in a timely manner based on the actual situation of market development.

You also asked about the opening-up of China's bond and derivatives market. I would like to give you a brief introduction. The opening-up of China's financial industry mainly includes two parts: one is the opening-up of financial markets you just asked about, and the other is the opening of financial services. Regarding the opening-up of financial markets, we continue to steadily expand the two-way opening-up of financial markets. The well-known market interconnection mechanisms, such as Shanghai-Hong Kong Stock Connect , Shenzhen-Hong Kong Stock Connect , Bond Connect , and Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (Cross-boundary WMC) , are all operating stably. With the arrangement of these mechanisms, we are also constantly exploring new measures to make investors' investment activities more convenient under these mechanisms.

For example, in January this year, we worked with the Hong Kong Monetary Authority to include bonds under Bond Connect into the scope of eligible collateral for the Hong Kong Monetary Authority's renminbi liquidity arrangements, and opened up the business for overseas investors to participate in domestic bond repurchase . Previously, only overseas central banks, overseas sovereign institutions and overseas renminbi business clearing banks could participate in bond repurchase. However, since this opening-up, all overseas institutions entering China's inter-bank bond market can participate in our bond repurchase. This approach can enhance the attractiveness of China's bond market.

At the same time, we are also continuously optimizing the pilot of the Cross-boundary WMC. For example, a recent measure is that the sales business of renminbi deposit products of mainland banks is now included in the scope of eligible products for Northbound Trading. As of the end of February, the total amount of China's bonds held by overseas institutions was 3.95 trillion yuan, close to 4 trillion yuan, and the growth rate has remained at about 30% in recent years. This also shows the achievements of the opening-up of China's financial market and demonstrates the attractiveness of China's bond market.

Another important aspect of financial openness is the opening of the financial service industry, also known as the access issue of foreign financial institutions. From the perspective of access, since 2018, we have significantly relaxed market access in the financial service industry, which has received positive feedback and attracted more than 110 foreign financial institutions to operate in China. In November last year, we issued a bank card clearing business license to Mastercard NUCC Information Technology (Beijing)Co., Ltd, the joint venture of Mastercard and NetsUnion Clearing Corporation (NUCC) .

For foreign financial institutions, it is not only access that is important, but also their operations. In terms of operations, while treating Chinese and foreign financial institutions equally, we also fully consider the uniqueness of foreign financial institutions and understand some practical difficulties and demands they encounter when operating in China. Under the premise of maintaining fair competition, we are working to create a better business environment for them. For example, the PBOC has introduced a carbon reduction supporting tool, a structural monetary policy tool, through which low-cost loans are provided to financial institutions. When it was first launched, only Chinese-funded financial institutions could enjoyed such low-cost loans.. However, many foreign institutions showed interest. In a safe and secure manner, we fully considered the demands of foreign institutions and continuously expanded the scope of financial institutions that can participate in the scheme for carbon reduction.. To date, 13 foreign banks have now been included, which is a practical measure demonstrating our continuous expansion of opening-up.

Overall, we have been constantly improving our financial supervision capacity. On the premise of maintaining financial security and financial stability, we have coordinated openness and security, continued to strengthen the connectivity of domestic and overseas financial markets, and created a market-oriented, law-based and international world-class business environment to attract more foreign investment and long-term capital to do business in China, take root and bear fruits. Thank you.

Shou Xiaoli:

We will have one last question.

ThePaper.cn: 

Aligning with international high-standard economic and trade rules and deepening reforms in relevant domestic fields are important tasks for attracting foreign investment. What work has MOFCOM done in this area? What are the considerations for the work in the next stage? Thank you.

Zhu Bing:

Thank you for your questions. In September last year, General Secretary Xi Jinping emphasized the need to be more proactive in aligning with international high-standard economic and trade rules and steadily expand institutional opening up with regard to rules, regulations, management and standards, when presiding over the eighth group study session of the Political Bureau of the CPC Central Committee . Setting out from its responsibilities, MOFCOM is actively implementing the work from both internal and external aspects.

In the external area, we have taken the initiative to align with high international standards and promote the construction of free trade zones. In 2023, we signed free trade agreements (FTAs) with Ecuador, Nicaragua and Serbia, respectively, and signed a protocol to further upgrade the FTA with Singapore. In February this year, we signed an FTA early harvest arrangement with Honduras. At present, we have signed 22 FTAs with 29 countries and regions, covering more than one-third of total foreign trade. Moreover, the level of our negotiation and signing of FTAs is getting higher and higher. For example, in the new agreements signed with Nicaragua and Singapore, we made commitments to high-level trade in services and investment openness in the negative list. At the same time, we are actively promoting negotiations on FTAs such as Version 3.0 China-ASEAN Free Trade Area , and actively driving accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA) , conducting multi-channel communication and consultation with members in accordance with the CPTPP accession procedures, and holding over 10 rounds of consultations with DEPA members at all levels to complete the preliminary discussions on all terms. Next, we will actively promote relevant FTA negotiations or upgrade negotiations, continue to expand the global network of high-standard free trade zones, further increase the proportion of zero-tariff products in trade in goods during the negotiations. We will expand the openness of trade in services and investment in the form of negative lists, expand the opening-up of telecommunications, medical and other service industries in an orderly manner, expand market access for digital products and other markets, and actively align with high-standard economic and trade rules such as the digital economy, green economy, standards certification and government procurement, and promote institutional opening-up.

In the internal area, we have taken the initiative to align with international high-standard economic and trade rules and conduct pilot reforms in relevant fields. Currently, in accordance with the decisions and plans of the CPC Central Committee and the State Council, we have actively aligned with international high-standard economic and trade rules such as the CPTPP and DEPA to deepen reforms in relevant domestic fields, and have achieved positive results. At the same time, we have also taken the initiative to conduct preliminary trials in the alignment of international high-standard economic and trade rules. Last year, we submitted to the State Council and issued the Several Measures for Conducting the Pilot Program of Aligning with International High Standards and Promoting Institutional Opening Up in Eligible Pilot Free Trade Zones and the Hainan Free Trade Port, the Overall Plan for Comprehensively Aligning with International High-standard Economic and Trade Rules and Promoting High-level Institutional Opening-Up of China (Shanghai) Pilot Free Trade Zone , and the Work Plan to Support Beijing in Pursuing the Initiative for the National Comprehensive Demonstration Zone for Further Opening-Up of the Service Sector . We have put forward more than 180 pilot measures in total. Next, MOFCOM will follow the decisions and plans of the CPC Central Committee and the State Council, and work with relevant departments to proactively align with high-standard economic and trade rules, further promote legislation, amendments and policy adjustments in relevant domestic fields, and deepen domestic reforms. At the same time, we will promote the implementation of various pilot measures to deliver results, organize reviews and evaluations in a timely manner, and do a good job in replicating and promoting the pilot measures. We will also give full play to the role of platforms such as pilot free trade zones, free trade port and national comprehensive demonstration zones for expanding opening-up in the service sector, promote preliminary trials at a deeper level and in a wider range of areas to accumulate more experience for the country's high-level institutional opening-up, serve to build a new development pattern, and promote high-quality development. Thank you.

Shou Xiaoli:

Thank you to all the speakers and friends from the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Zhang Rui, Wang Qian, Guo Yiming, Liu Sitong, Xiang Bin, Liu Qiang, Liu Caiyi, Yan Xiaoqing, Lin Liyao, Ma Yujia, Wang Ziteng, Yuan Fang, Yan Bin, Zhang Junmian, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Yin Yong, deputy secretary of the Communist Party of China (CPC) Beijing Municipal Committee and mayor of Beijing

Mr. Xia Linmao, a member of the Standing Committee of the CPC Beijing Municipal Committee and executive vice mayor of Beijing

Mr. Jin Wei, a member of the Standing Committee of the CPC Beijing Municipal Committee and vice mayor of Beijing

Mr. Yu Yingjie, a member of the Standing Committee of the CPC Beijing Municipal Committee, secretary of the Education Work Committee of the CPC Beijing Municipal Committee, and a member of the Leading Party Members Group of the Beijing Municipal People's Government

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 19, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This year marks the 75th anniversary of the founding of the People's Republic of China (PRC), and is also a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan (2021-2025). We will hold a series of press conferences themed "Promoting High-Quality Development," inviting relevant departments from the 31 provinces, autonomous regions and municipalities as well as from the central government. They will introduce measures and achievements in implementing the decisions and arrangements made by the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core. Today, we are holding the first press conference in the series. We have invited Mr. Yin Yong, deputy secretary of the CPC Beijing Municipal Committee and mayor of Beijing, to brief you on leveraging Beijing's strategic role as the national capital and initiating a new chapter in high-quality development, and to take your questions. Also present today are Mr. Xia Linmao, a member of the Standing Committee of the CPC Beijing Municipal Committee and executive vice mayor of Beijing; Mr. Jin Wei, a member of the Standing Committee of the CPC Beijing Municipal Committee and vice mayor of Beijing; and Mr. Yu Yingjie, a member of the Standing Committee of the CPC Beijing Municipal Committee, secretary of the Education Work Committee of the CPC Beijing Municipal Committee, and a member of the Leading Party Members Group of the Beijing Municipal People's Government.

Now, I'll give the floor to Mr. Yin for his introduction.

Yin Yong:

Friends from the media, good morning. It gives me great pleasure to meet you here and brief you on leveraging Beijing's strategic role as the national capital and initiating a new chapter in high-quality development. I would like to begin by extending, on behalf of the CPC Beijing Municipal Committee and the Beijing Municipal People's Government, our heartfelt appreciation for your long-standing support for Beijing-related work.

The CPC Central Committee attaches great importance to Beijing's high-quality development. General Secretary Xi Jinping has conducted several inspection tours of Beijing and provided personal guidance on key issues, critical plans and priorities related to the capital's long-term development. In line with the grand blueprint for the capital's development, we have outlined specific tasks and worked hard to bring the overall vision to reality. Last year, Beijing's gross regional product (GRP) grew by 5.2% from the previous year to 4.4 trillion yuan ($611.23 billion). General public budget revenue increased by 8.2%, exceeding 600 billion yuan. Per capita GRP remained the highest among provincial-level regions in China, while energy and water consumption per 10,000 yuan of GRP were the lowest. All in all, solid progress has been made in the capital's high-quality development.

This year marks the 75th anniversary of founding of the PRC, and is a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan. Beijing will fully act on the guiding principles of the Central Economic Work Conference and implement the plans made at the annual "two sessions." With high-quality development as our top priority in the new era and Chinese modernization as our principal political objective, we will adhere to the general principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will further incorporate the Five Key Initiatives [namely, building Beijing into an international center for innovation; making progress in building the "two zones" — the Integrated National Demonstration Zone for Opening up the Services Sector and the China (Beijing) Pilot Free Trade Zone; developing the digital economy; stimulating and creating new demand through supply-side structural reform; and making greater headway with Beijing-Tianjin-Hebei coordinated development through relocation of functions non-essential to the role of the capital] into the new development dynamic and redouble efforts to promote the capital's development in the new era.

First, we will reinforce Beijing's role as the national capital and actively fulfill our responsibilities in promoting the coordinated development of Beijing, Tianjin and Hebei province. This year marks the 10th anniversary of advancing Beijing-Tianjin-Hebei coordinated development. With further implementation of the Master Plan of Development for Beijing (2016-2035), we will improve the incentives and set mandatory targets to relieve Beijing of its non-capital functions in a steadfast and orderly way, improve the city's services for the central Party and government bodies, and enhance the city's overall living environment. We will continue to support Xiong'an New Area, with its development as part of our own duties, and set well-conceived annual targets to drive the high-quality development of the Beijing Municipal Administrative Center. In collaboration with Tianjin and Hebei, we will develop a metropolitan area around the capital featuring integrated transport networks, joint eco-conservation actions, seamless sharing of public services, and coordinated functions. Our goal is to turn the Beijing-Tianjin-Hebei region into a pilot and demonstration zone for Chinese modernization.

Second, we will enhance the development of Beijing as an international center for scientific and technological innovation to fully unleash the city's strengths in nurturing new quality productive forces. We will coordinate education, technology and talent resources of Beijing to bolster our scientific and technological capabilities. We will continue to implement action plans to secure the city's leading position in basic research and achieve breakthroughs in core technologies within key fields. Forward-looking plans will be adopted to open up new grounds in future-oriented industries. We will build a modernized innovation-led industrial system and accelerate a number of landmark projects in such sectors as integrated circuits, new energy vehicles and biomanufacturing. To establish Beijing as a global pacesetter in the digital economy, we will strengthen and expand our lead in artificial intelligence, high-level autonomous driving and among other domains. We will work quickly to foster an innovation ecosystem. Pilot reform measures for the Zhongguancun Science Park will be implemented on a rolling basis to elevate it into a world-class science park that better empowers the capital's high-quality development.

Third, we will strive to become a pilot zone for the Beautiful China Initiative, demonstrating Beijing's resolve in fighting against pollution. We will cut carbon emissions, reduce pollution, expand green development and pursue economic growth in a coordinated way. We will step up efforts to keep the skies blue. We will consolidate our gains in air quality improvement. We will work actively and prudently toward peaking carbon emissions and achieving carbon neutrality. To further improve the energy mix, we will scale up green electricity transmissions to our city and work to raise the share of renewable power to 25%. We will continue to turn Beijing into a national forest city, implant vitality into urban park spaces and design a picturesque garden city, enabling citizens to fully enjoy the pleasures of park visits and allowing the city to flourish with natural beauty.

Fourth, we will advance the "two zones" development to further explore Beijing's path toward more in-depth reform and wider opening-up. We will expedite the implementation of the latest work plan to accelerate the development of the Integrated National Demonstration Zone for Opening up the Services Sector and further develop the China (Beijing) Pilot Free Trade Zone in order to cultivate more experiences that can be replicated in other parts of China. We will make "Beijing services" a recognizable brand representing excellent governmental support for business operation by introducing more favorable policies that are readily and swiftly accessible with no requirement for enterprises to complete applications. In doing so, we aim to create a top-class business environment characterized by stability, fairness, transparency and predictability.

Fifth, we will ensure and improve people's well-being to establish Beijing as a model for precision urban governance. By focusing on improving people's well-being in seven aspects and meeting their expectations for a better life in five areas, we will enhance our reform in delivering swift responses to public complaints, effectively addressing issues that our people are most concerned about. We will ensure comprehensive management of the city's transportation system with the goal of raising the rate of green commuting to 75% in the downtown districts. More will be done to support dependent elders and toddlers, including expanding care services for elderly individuals with physical and mental challenges and adding 10,000 public-interest nursery slots for children under the age of three. We will continue to deepen the integrated reform of medical treatment, medical insurance and medicine supplies to better meet the healthcare needs of our citizens. A total of 70,000 units of rental housing for low-income groups will be made available and 80,000 units of government-subsidized housing will be established. To ensure both development and security, we will make our city more resilient, intelligent and livable while stepping up post-disaster recovery and reconstruction efforts. Our goal is to ensure that our people experience a growing sense of fulfillment, happiness and security through solid improvements in our work.

That's all from me for now. Thank you all!

Chen Wenjun:

Thank you, Mr. Yin. Now, the floor is open for questions. Please identify the news agency you represent before asking questions.

CCTV:

We all know that the international center for innovation is one of the strategic stances in the "four centers" urban strategy plan that is designated for Beijing by the central government. Mr. Yin, how does Beijing plan to establish itself as the international center for innovation and a hub for high-caliber personnel?

Yin Yong:

Alright, I'll answer your question. Building Beijing into an international sci-tech innovation center is the mission entrusted to the city by the CPC Central Committee. Beijing has a prominent advantage in educational and technological talent and has the foundation and conditions to contribute to the country's self-reliance and strength in science and technology. From a hardware perspective, Beijing is home to 92 universities and more than 1,000 research institutes. It leads the nation in the number of national laboratories and major scientific facilities. Additionally, our R&D intensity has remained at around 6% for many years, ranking at the forefront both nationally and globally. From a software perspective, we have introduced a series of regulations, including those on commercializing scientific and technological achievements and protecting intellectual property rights. We have implemented 24 pilot reform measures in Zhongguancun, continuously solidifying the institutional environment that supports comprehensive innovation. From a talent perspective, Beijing is home to over 550,000 scientific researchers, nearly half of the academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering, and more than a quarter of the experts from the "Ten Thousand Talents Program." We have achieved 411 selections to the global "Highly Cited Researchers" list, ranking first among cities worldwide. Our talent advantage is also prominent in cutting-edge scientific and technological fields. For example, in the highly regarded field of artificial intelligence, Beijing's top AI talents account for about 43% of the national total.

In recent years, Beijing's efforts in building itself into an international sci-tech innovation center has yielded significant results. From the perspective of scientific research outcomes, we have surpassed 262 patent ownerships per 10,000 people and published 1,292 highly cited papers, both of which rank first in the nation. We have also seen the emergence of major innovative achievements such as the new generation quantum computing cloud platform, Quafu, and the ultra-large-scale intelligent model, Wudao 3.0. From the perspective of industrial commercialization, in 2023, the transaction volume of technology contracts in Beijing exceeded 850 billion yuan, with an average of 337 technology-based enterprises being established daily. The numbers of national high-tech enterprises, "little giant" enterprises that utilize special and sophisticated technologies to produce novel and unique products, and unicorn companies all rank first among cities nationwide. From a comprehensive evaluation, Beijing has been ranked first in the Nature Index Science Cities globally for eight consecutive years, entering the forefront of global innovative cities.

Facing a new round of global technological and industrial changes, we will continue swiftly seizing opportunities and maintaining momentum in the following areas.

First, in terms of enhancing our capacity for scientific and technological breakthroughs, we must concentrate firmly on three aspects. First, focus on "breakthroughs" by thoroughly implementing action plans for key and core technologies, striving to overcome technical "bottlenecks" in various fields. Second, focus on "taking the lead" by targeting over 20 areas, such as future information, health, manufacturing, energy, materials, and space, actively seizing the upper hand in future industrial development. Lastly, focus on "upgrading," which involves concentrating on more than 30 sub-fields in sectors of high-end, sophisticated and cutting-edge technologies, bolstering scientific and technological innovation, and continuously enhancing the core competitiveness of our key industries.

Second, we must deepen the reform of the scientific and technological system, focusing on solving four types of problems. To address the disconnection between industry, universities, and research institutes, we emphasize establishing enterprise-led innovation consortia, making effective use of the open competition mechanism for selecting the best candidates to lead research projects, and promoting better coordination between industry, universities, and research institutes. To tackle the difficulties in commercializing scientific and technological achievements, we need to effectively implement the regulations on achievement commercialization, genuinely protect the rights and interests of R&D personnel, and allow them to fully enjoy the benefits of commercialization. Regarding the issue of science and technology parks being "small, scattered, and weak," we adopt a "one park, one plan" strategy to optimize and enhance the development quality of each park. We employ a bottom-out mechanism to compel all parks to improve their operational and management capabilities. To address the lack of vitality among scientific research entities, we grant greater autonomy to new-type R&D institutions. While the government does not interfere with daily activities, we will strengthen third-party assessments and evaluations. For those with poor evaluation results, we will gradually "phase out" support in terms of funding, aiming to bolster the excellent and eliminate the weak.

Third, we will strengthen the training and introduction of talents, and coordinate four types of talents in a systematic way. For leading scientists, we will establish a mechanism for their rapid discovery, introduction and arrangement, and provide special support and guarantee policies for innovative teams. For young scientists, we must make good use of and launch more support programs such as the “Beijing Young Scholars” and “New Scientific and Technological Stars”, provide more long-term and stable scientific research funding, and encourage young talents to take the lead. For outstanding engineers, we will deepen the pilot reform of engineering master and doctor training that integrates industry and education, and cultivate talents that are urgently needed in the industry. For master craftsmen and highly skilled workers, we will strengthen the construction of studios for them and cultivate high-quality industry talents.

Talents are the future and source of vitality in a city. We will make more meticulous efforts in talent-related work, and widen the door for talent recruitment, so that all kinds of talents can find a place in Beijing and give full play to their abilities. Thank you.

Reuters:

Beijing has several high-tech projects in the pipeline, including the expansion of autonomous driving projects by Baidu and Pony.ai and new factories for CATL’s batteries and Xiaomi’s EV production. What more can we expect this year in terms of regulatory efforts to attract more investment in these areas? And what aspirations does Beijing have for its role in EV and AV development?

Yin Yong:

Thank you for your questions. You have noted the layout and development of companies such as Baidu, Pony.ai, Xiaomi and CATL in Beijing. These are closely related to Beijing's high-level autonomous driving projects.

New energy vehicles (NEVs) and autonomous driving (AD) are important forces behind smart transport and may profoundly change the way people travel and urban governance. From the perspective of urban management, we are paying particular attention to the changes that AD may bring. In the past few years, Beijing has conducted in-depth research on the development of AD technology. Through comparative analysis, we found that although the current AD technology is developing rapidly, the cost is still relatively high, and there is still a long way to go to achieve safe and reliable commercial applications. At the same time, it seems that there is no connection between smart AD and the smart development of Beijing. Therefore, Beijing took the lead in adopting vehicle-infrastructure cooperated autonomous driving (VICAD) technology three years ago to promote the development of AD technology. We started in the Beijing Economic-Technological Development Area (located in Yizhuang, southeast Beijing), designating an area of 60 square kilometers for the pilot, which we gradually expanded to 600 square kilometers. The pilot has now entered its third stage. We have created a VICAD system that feeds various data back to self-driving vehicles through intelligent sensing devices on the roadside and the cloud dispatching system. This significantly improves the safety of AD vehicles and reduces the costs and dependence for AD capabilities. We have opened AD vehicle application scenarios from Beijing Daxing International Airport to Yizhuang, and from the three cultural landmarks in Beijing’s sub-center to the subway station, launched an AD freight transport pilot from Beijing to Tianjin Port, and implemented unmanned sanitation vehicles for road cleaning at night. Driverless taxis have also been put into commercial operation. We have achieved exciting results. We are planning a larger-scale construction to connect some of Beijing’s suburban areas. These promotions and applications have brought unexpected results. For example, the AD vehicle service launched by Beijing Daxing International Airport provides passengers arriving at night with more choices; unmanned sanitation vehicles can clean at night no matter the weather conditions, and without getting tired or falling asleep; and driverless taxis provide passengers with greater privacy — with some passengers arranging meetings during their rides. Through the construction of a roadside sensing system, there is improved perception of traffic flow at intersections. Formerly, the signal light timing method at these intersections was relatively fixed, that is, the intervals between light changes were fixed. Now in the pilot area, the daily setting of traffic light intervals at each intersection will be dynamically adjusted 110 times on average per day based on the actual traffic flow on the roads. Take the 160 square kilometers in the Beijing Economic-Technological Development Area as an example. Last year, despite a 20% increase in traffic volume, vehicle speed in the area increased by more than 15%, which contributed toward solving the problem of urban traffic congestion through the optimization of traffic light interval scheduling. 

These exciting practical results inspire us to further deepen the interplay between autonomous driving and smart city construction. We will continue to attract more leading enterprises and research institutions in this field, improve upstream and downstream support for the industrial chain, and welcome various types of capital, especially long-term capital, to increase investment in this area. Our explorations have also attracted significant attention from domestic and international counterparts. Institutions and companies from countries such as the United States, France, Japan and Singapore have come to exchange and discuss ideas. We are willing to share the explorations and practices carried out in Beijing to collectively address the common challenges we face in urban management and social development.

Thank you.

China News Service:

As an international metropolis, how does Beijing continue to enhance its functions as a center for international exchange in the new era? How can it further provide more friendly and convenient government services for foreign-invested enterprises and foreign nationals? Also, we are aware that Beijing has proposed the development of a new pattern for a center for international exchange, known as "one core, two axes and multiple zones." What significant progress has been made so far in this regard, and what are the key priorities for future work?

Yin Yong:

Thank you for your questions. I would like to invite Mr. Xia to answer.

Xia Linmao:

Thank you for your questions. Beijing has always paid a lot of attention to the needs of foreign-invested enterprises and foreign nationals, striving to work on details to make foreign nationals’ work, study, life and travel in the city more convenient. We have created an international version of official portal website in nine languages, including English, French and Russian. Additionally, information services can be obtained by following the English-language "Beijing Service" official account on WeChat. Furthermore, we have built a foreign-related service system covering the entire city, consisting of 416 government service centers at the municipal, district and subdistrict (township) levels. We have 338 service windows dedicated to foreign languages, ensuring multi-linguistic support for various services. The 12345 government service center you are all aware of responses to public needs promptly and is able to handle calls in eight languages; foreign nationals in Beijing can receive many services with their passports; and many services can be provided online, such as hospital appointments, booking tickets for scenic spots and setting up businesses, all from the convenience of their own homes, saving time, effort and money.

Next, we will make greater efforts to address issues that foreign nationals are concerned about. For example, in terms of payment methods, we are focusing on making payments by cash, foreign bank cards and electronics means more convenient. In terms of transportation, we are also in the process of developing an English map of Beijing city, and are collaborating with railways, subways, buses and car rental services to provide better services.

In terms of education and healthcare, in places where significant numbers of foreign professionals live and work, such as the "three cities and one area,” namely, Zhongguancun Science City, the Huairou Science City, the Beijing Future Science City, and the Beijing Economic and Technological Development Area, as well as the Chaoyang district and the Beijing Municipal Administrative Center, we are focusing on strengthening the development of international schools and international hospitals and are optimizing the service experience for foreign nationals, including improving services related to medical insurance settlements and commercial insurance.

In terms of communication, we are further improving the process for both online and in-person registration of phone cards. Regarding airport services, we have established overseas guest payment service centers at both Beijing Capital International Airport and Beijing Daxing International Airport. Additionally, we are expanding the construction of airport integrated service centers to provide services in areas such as consultations, payments, tourism, transportation and telecommunications, so that everyone arriving in Beijing can enjoy a comprehensive range of services.

Regarding the spatial pattern of "one core, two axes and multiple sections" for international exchanges, specifically: "One core" refers to the core functional area; "two axes" refers to the Central Axis and Chang'an Avenue and its extensions; and "multiple sections" include various areas such as the embassy districts and the two international airports, which provide robust support for state diplomacy affairs and people-to-people exchange activities within the city. The quality of traditional areas for hosting national events, such as Tiananmen Square and the surroundings along Chang'an Avenue, has been continuously enhanced in recent years. The international communication function along the Central Axis and its extensions continues to improve. The capacity of the venues around Yanqi Lake to host international conventions has been expanded and upgraded, with both the Yanbai Villa and the Qihu Hotel now operational. Next, we will focus on exploring the potential of historical buildings, themed museums, and characteristic hutongs in the core area, aiming to establish a batch of "national reception halls." We will coordinate efforts to improve the infrastructure construction of the Fourth Embassy District. Progress will steadily continue in upgrading the supporting facilities around Yanqi Lake and the major project of the Beijing base of the China Conservation and Research Center for Giant Panda. Simultaneously, we will focus on improving the service capabilities of the Beijing Olympic Park. By the end of this year, the main construction of the second phase of the National Convention Center will be completed, and the second phase of the New China International Exhibition Center will also finish construction. The ongoing optimization of the hardware and software environment that is internationalized will further burnish Beijing's global image as a historical and cultural hub.

Science and Technology Daily:

It is well known that the annual Zhongguancun Forum is an important platform for China's global cooperation and exchange in science and technology innovation. Could you please provide an update on the preparations for this year's forum? What are the new highlights compared to previous years? Thank you.

Yin Yong:

Thank you for your questions. Mr. Yu will answer them.

Yu Yingjie:

Thank you for your interest in the Zhongguancun Forum. As you mentioned, it is a state-level platform for global sci-tech innovation exchanges and cooperation, consistently emphasizing innovation and development as its core themes. Since 2007, we have successfully convened this event 14 times. Last year's forum was successfully conducted under the strong leadership of the CPC Central Committee and the State Council, with the participation of all parties involved. Over 5,000 guests from 86 countries and regions attended the event, with more than 1,160 domestic and foreign participants delivering speeches. During the main session of the forum, 129 projects were signed with a total value exceeding 81 billion yuan. Additionally, over 1,400 journalists from nearly 200 domestic and foreign media outlets provided comprehensive and in-depth coverage of the 2023 Zhongguancun Forum. We would like to take this opportunity to sincerely thank our media friends for their long-term attention and support for this event.

Approved by the State Council, the 2024 Zhongguancun Forum will be held for the first time at the newly finished permanent venue from April 25-29. This year's theme is "Innovating for a Better World." We will continue to uphold a high-end profile, with a heightened focus on its state-level and internationalized features. The forum continues to be jointly organized by the Ministry of Science and Technology, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission of the State Council, the Chinese Academy of Sciences, the Chinese Academy of Engineering, the China Association for Science and Technology, and the Beijing Municipal Government. Nearly 10 ministries and organizations support the event, including UNESCO, the World Intellectual Property Organization (WIPO), the International Association of Science Parks and Areas of Innovation, and the Ministry of Education. Notably, UNESCO will participate as a supporting organization for the first time. We will adhere to a goal-oriented approach, placing greater emphasis on effectiveness and leadership, closely following international trends in science and technology development. We have planned five main sections, including the opening ceremony and plenary session, nearly 60 parallel forums, the Zhongguancun International Technology Trade Fair, and the Zhongguancun International Cutting-edge Technology Competition, among other key events. Furthermore, the forum will unveil a series of groundbreaking scientific and technological innovations to the rest of the world, effectively showcasing Beijing's achievements in pursuing sci-tech innovation. In addition to the main sessions, we will also host a series of activities throughout the year. Since the beginning of this year, we have organized 28 events focusing on cutting-edge topics such as large-scale model applications, cellular and genetic therapies, and quantum computing. Overall, preparations for the 2024 Zhongguancun Forum are progressing smoothly, and we are committed to ensuring that it becomes a vibrant and effective global platform for sci-tech innovation exchanges and cooperation.

We would like to extend a cordial invitation here to scientists, entrepreneurs, investors, business starters and media from home and abroad to attend the 2024 Zhongguancun Forum to discuss cutting-edge technologies, industrial development trends, innovation rules, and scientific and technological governance, and to share innovative ideas and development concepts, making innovative contributions to the construction of a better world.

Thank you.

Bloomberg:

I had a question about real estate. For Beijing this year, in terms of stabilizing the real estate market, in terms of building more affordable social housing, in terms of redeveloping more parts of the city, are there any plans for 2024 that you can share with us? And in terms of restrictions on home purchases, is there more room to loosen those restrictions either in more districts of Beijing or at a greater degree across the city? Thank you.

Xia Linmao:

Thank you for your questions. Following the decisions and requirements of the Party Central Committee and the central government, the Beijing Municipal Government will scale up "three major projects" — the building of government-subsidized housing, the construction of dual-use public infrastructure that can accommodate emergency needs, and the redevelopment of urban villages — to accelerate the formation of a new real estate model. Just now, Mr. Yin explained that we will raise funds to build 70,000 government-subsidized rental housing units and complete 80,000 affordable housing units this year. We will increase the supply of "one bed" and "one room" products, focusing on resolving the housing problems of new urban residents, young people and migrant workers. In terms of choosing where to locate this housing, we will prioritize areas around subway stations and industrial zones where people work and live, and areas with good support infrastructure. 

At present, some villages located in the city's urban-rural fringe area, where is covered mostly by barriers for afforestation, urgently need improving and upgrading. We call these "urban villages," which have common problems, such as high public health risks, housing with significant fire hazards, underdeveloped support facilities, dirty environment, and challenging social governance. Citizens living in these areas are eagerly awaiting improvements. We will adopt three models in accordance with the functional orientations and development situations of different regions. The first model is demolishing and rebuilding, the second is upgrading and improving, and the third is a combination of the first and second. We will carry out critical tasks and focus on key parts in inner city areas and key ecological nodes. This year, we plan to redevelop 20 urban villages, eliminate potential safety hazards, improve people's quality of life and living environment, and upgrade the quality of urban development. We also hope that some demonstration projects will emerge during the process of redeveloping the urban villages.  

You also asked about real estate policy. We remain committed to the principle that housing is for living in and not for speculation, and are fully implementing Beijing's overall plan. We continue to adopt district-specific policies and targeted measures, and adhere to the principles of encouraging both housing rentals and purchases, integrating urban areas and industries, balancing job opportunities and housing provisions, and fostering an environment conducive to living and working in. We have been improving policies on real estate regulation to meet people’s demand for buying their first home or improving their housing situation, better meeting the multilevel and diverse needs of homebuyers, and promoting the healthy development of the real estate market in Beijing. Thank you.

China Daily:

It is widely accepted that fostering a world-class business environment is an important measure to offset downward risks to the economy and bolster confidence of market entities. We understand that the Meeting of International Business Leaders Advisory Council for the Mayor of Beijing will kick off soon and leading multinational companies will be invited to attend. My question is, how will Beijing further improve its business environment to boost the economic driving forces? Thank you.

Yin Yong:

Thank you for your question. I will answer this one. Fostering a good business environment provides a strong support for enterprises. We have continued to carry out various measures, and listened to enterprises' opinions and advice on Beijing's business environment, such as by visiting enterprises. Last weekend, we visited companies in Beijing such as PwC, Meituan and Alibaba. In a few days, we will hold the Meeting of International Business Leaders Advisory Council for the Mayor of Beijing, which you just mentioned. We will communicate in person with the heads of a dozen leading multinational companies and listen to their insights on Beijing's business environment.

We are keenly aware that there is always room for further improvement in the business environment. Over the years, we have facilitated its development and made leapfrog progress annually. To date, we have introduced more than 1,200 reform measures in this regard, leading to a reduction of over 60% in approval items, a 71% decrease in processing time, a 74% cut in mandatory materials, and the elimination of more than 320 previously-required permits. We have also rolled out the "one integrated license" policy across more than 40 sectors and introduced 62 one-stop government services. In addition, an integrated and comprehensive supervision system has been applied in 50 scenarios in a bid to streamline oversight efforts and prevent disruptions to business activities caused by redundant supervision procedures. Over 90% of business oversight is conducted through the random selection of both inspectors and inspection targets. Looking forward, we will adhere to a problem-oriented approach, improve businesses' sense of gain, and take it as our ultimate goal to enhance the city's strength in business-related services.

We need to make additional efforts in the following aspects:

First, we need to emphasize both top-level design and the experience of businesses. We must adopt both top-down and bottom-up approaches. Regarding top-down measures, we need to study advanced practices from various countries and cities and draw on their useful experience, including the World Bank's business environment evaluation framework. We should take a systemic approach and roll out reform measures across all aspects and links of the business environment, in a bid to comprehensively improve our service capacity and administrative efficiency. As for bottom-up measures, we need to heed the needs of businesses and base our policymaking efforts on their requirements. By addressing specific issues, we need to summarize our experience, develop a sound mechanism in this regard, and continue to tackle the most pressing difficulties and concerns of businesses. Take, for example, the hosting of economic and technological exhibitions involving foreign enterprises. Previously, obtaining approval for such events required 34 working days, 26 pieces of documentation, and nine procedures. However, after streamlining administrative procedures, we now only need six working days and 16 pieces of documentation. Building on this progress, we have extended our efforts to introduce more one-stop government services for approving large-scale commercial performances and sporting events.

Second, we need to provide businesses with both inclusive and tailored services. Inclusive services refer to measures that improve the overall business environment and benefit all enterprises with our reform measures. For instance, when encountering difficulties, many businesses opt to reach out to the service hotline 12345. Currently, this hotline receives an average of over 500 calls per day, redirecting business inquiries to relevant government bodies for further assistance. With general issues resolved within seven days and complex ones within 15 days, the hotline has achieved a satisfaction rate of 96.9% among enterprises. Another example is the mini-program of the People's Government of Beijing Municipality. This versatile mobile application is widely used by citizens to access government services. We have launched a dedicated section for business-related services within this mini-program, providing convenient access to solutions for 158 frequently asked business issues. In addition, recognizing that enterprises used to face difficulties accessing numerous and complex government policies, we have adopted AI models that integrate all sorts of policies and offer precise recommendations to businesses, ensuring more policies are accessed and enjoyed by businesses without the need for application. As for tailored services, we will provide customized services tailored to the needs of each enterprise. We have introduced a package of service policies and a "steward-style service" mechanism, and adopted a list-based management for the needs of enterprises. Both municipal and district-level governments have also established special task forces to deliver tailored services to specific sectors and regions. These task forces regularly visit relevant enterprises and provide all sorts of assistance directly at their doorstep. Such service policy packages and the "steward-style service" mechanism have become key highlights of Beijing's business environment.

Third, we need to focus on both development and security. We have always placed equal emphasis on upholding standardized management and fostering enterprise growth. We also encourage fair competition and compliant development among businesses. We will continue to improve the effectiveness of government supervisory efforts, making them more precise and well-conceived through the utilization of credit- and big data-based supervisory methods. In addition, we will reinforce comprehensive supervisory approaches, significantly increasing remote supervision in daily regulation and reducing the frequency of site inspections. These measures aim to create a safe and high-quality operating environment for businesses.

Thank you.

Hong Kong Bauhinia Magazine:

The Central Financial Work Conference was held in Beijing in late October last year, making arrangements for current and future financial work and setting a target to accelerate the building of a strong financial sector. Being that finance is a very important and competitive industry in Beijing's economic structure, what considerations are being taken into account with promoting high-quality development of the financial industry and ensuring both development and security? Thank you.

Yin Yong:

Thank you for your question. Mr. Jin Wei will answer this question.

Jin Wei:

Thank you for your question. Beijing is the national financial management center, and its total financial assets have amounted to 215 trillion yuan, accounting for approximately half of the country's overall financial assets. The added value of its financial industry makes up one fifth of the city's added value of all industries, and local tax revenue from this sector also accounts for one fifth of the city's total. With a great sense of responsibility, we will strengthen our commitment to fulfilling our mission in financial work.

First, we will coordinate development and security and assume a greater role as the national financial management center. Beijing is the location of central financial management departments with many well-known domestic and foreign financial institutions gathered here. Our primary task is to provide good services. We actively support the construction of infrastructure facilities such as the National Fintech Risk Monitoring Center in order to create a favorable environment for the implementation of financial policies. The number of listed companies on the Beijing Stock Exchange has tripled since its opening, and we will continue to support its strong development. At the same time, we adhere to our responsibilities and duties, continuously improving the quality and efficiency of supervision, strengthening collaboration between the central and local governments, enhancing risk prevention mechanisms at the source, preventing and defusing risks in key areas in a prudent and orderly way, and promoting high-quality development of the financial industry while safeguarding the bottom line of risk control.

Second, we will observe the principle of serving the people and focus on five key areas. These five key areas are very familiar to journalists, so here I will briefly introduce our ideas. In terms of technological finance, we will focus on building the Zhongguancun Pilot Financial Reform Zone for Scientific and Technological Innovation, exploring new models to integrate support through equity, loans, bonds and insurance, establishing government investment funds, deepening the pilot comprehensive service for the registration and transfer of stock options, and maintaining double-digit growth in loans to high-tech enterprises. In terms of green finance, we will explore green financial standards that are in line with international standards and support the China Beijing Green Exchange in building a voluntary emissions trading institution. In terms of inclusive finance, we will carry out special actions, providing more products and more convenient services at lower costs to micro and small businesses. In terms of pension finance, we will guide financial institutions to improve the quality and efficiency of their services in the elderly care industry and accelerate the development of third-pillar pension plans and long-term care insurance, among others. In terms of digital finance, we will leverage Beijing's position as a global benchmark city for the digital economy, accelerate the digital transformation of finance, build 10 application scenarios of digital RMB and 10 demonstration zones for its use, and expand pilot programs for the regulation on fintech innovation. Additionally, we will guide financial institutions to implement the coordination mechanism for urban real estate financing, support the "three major projects" regarding new infrastructure, such as the construction of affordable housing, continue to explore the pilot program for catastrophic insurance, and increase support for post-disaster reconstruction.

Third, we will follow the principle of seeking progress while maintaining stability and take solid steps to promote institutional opening up. We will firmly seize the important opportunities during the construction of the "two zones" and carry out pilot programs such as the integrated capital pooling of domestic and foreign currencies for multinational companies. A number of landmark foreign-funded institutions have successively settled in Beijing.

This year, we will also explore and improve the negative list management for capital projects, continue to advance the QDLP and QFLP pilot schemes, host the Financial Street Forum and Sibos 2024, and promote the opening up of the financial industry to a higher level. Thank you.

Beijing Youth Daily:

Education is an indispensable part of high-quality development for the capital. With the overall decline in the national birthrate, many kindergartens in Beijing have redundant seats and some private kindergartens are experiencing operational difficulties. What considerations does the Beijing municipal government have for these situations and how will it promote the better development of preschool education?

Yu Yingjie:

Thank you for your questions. Preschool education is an important component of basic education and has always been a focus of our government's work. Over the years, Beijing has consistently monitored and analyzed changes in the birthrate and school-age population. As you mentioned, considering the decline in birthrate, empty preschool seats are gradually becoming abundant, especially in private kindergartens where there are more and more vacancies. We have conducted a comprehensive assessment and, based on analysis and study, will simultaneously promote the quality improvement of preschool education and its structural optimization in order to ensure its high-quality development.

First, we will comprehensively improve the quality of preschool education. We will further optimize the resource structure and ensure the availability of resources for public-interest preschool education, responsive to the trends of the eligible population for preschool enrollment. We will further promote the development of the Ministry of Education's experimental zones for improving the quality of preschool education, strengthen the construction of the teaching and research system at the three levels of city, district and kindergarten, and rely on preschool education and research bases to drive the overall improvement of regional preschool education quality. Additionally, we will improve the quality evaluation system and explore scientific evaluation methods.

Second, we will actively promote childcare services. We will conduct childcare work as a forward extension of each child's growth and education chains, implementing an integrated design. We support eligible kindergartens to participate in the pilot program of childcare services, establishing childcare classes for 2- to 3-year-olds while fully meeting the enrollment needs of 3- to 6-year-olds, aiming to provide abundant preschool places for children under three by converting preschool places for children above three. Just now, Mr. Yin said in his opening remarks that, building on the 6,000 new preschool places for children under three last year, 10,000 new places will be added this year to effectively address the needs of childcare services for toddlers.

Third, we will improve our work on private kindergartens. Through enrollment plan management, we will guide private kindergartens to set reasonable enrollment sizes following the supervision and evaluation requirements of the popularization of preschool education for the benefit of all. Simultaneously, we support eligible private kindergartens, especially public-interest ones, in establishing childcare classes. We also support the transformation and development of private kindergartens.

Next, Beijing will maintain the correct direction for preschool education development, enhance the preschool education system and mechanisms, and improve various policy guarantee systems for preschool education. We strive to promote the popularization as well as safe and quality development of preschool education for the benefit of all, meeting the public's expectations for nurturing young children. Thank you!

Chen Wenjun:

The press conference has been going on for nearly an hour, and we will now take the last two questions.

Beijing Radio & Television Station:

Mr. Yin, as Beijing residents, we often call the 12345 citizen service hotline when we encounter problems in our daily lives. We find its response and resolution processes to be effective and convenient, and we hope that the hotline can become even more effective and convenient in the future. How will Beijing deepen the reform of the mechanism of prompt handling of public complaints to better serve the people in the future? Thank you.

Yin Yong:

Thank you for your question. The mechanism of prompt handling of public complaints is a practice that originated from grassroots efforts in serving our citizens. It is an effective means for us to solve pressing difficulties and problems that concern the people most and carry out urban governance that is attentive to detail. It is also an important means for us to implement the philosophy of "the city is built by the people, and the city is for the people."

This reformative practice of serving the people with practical actions has gone through three stages: "departments responding to the call of the township government," "prompt handling of public complaints," and "resolving problems before receiving the public complaints." As early as 2017, a working mechanism of "departments responding to the call of the township government" was established in Jinhaihu, a town in Pinggu district, Beijing, to address the issue of illegal mining. In 2018, we completed a review of and promoted the experiences, implementing the mechanism of "all departments responding to the call of the sub-district and township governments" citywide to improve the efficiency of solving problems for the people. This marked the first stage. In 2019, we improved the mechanism, requiring all departments responding to the call of the sub-district and township governments to process public complaints without delay, and established a service mechanism centered on the 12345 citizen service hotline. This approach allowed for quick responses, efficient handling, and prompt feedback on public complaints and demands. This was the second stage. In 2021, in response to several high-frequency issues commonly reported by the public, we established a "solving one problem per month" working mechanism and proactively addressed major concerns before receiving the public complaints, which marked the third stage. The reformative practice of prompt handling of public complaints has yielded significant results. Last year, the 12345 hotline received an average of nearly 60,000 calls daily and processed 21.44 million complaints from citizens throughout the year, roughly equating to one complaint per resident. The public complaints were 100% responded, of which 95.5% were resolved, and the satisfaction rate reached 96.1%.

Going forward, we will strive to meet citizens' needs for a better life, assuring to handle public complaints promptly. As for the reform this year, we will focus on three key areas: First, we will continue to optimize hotline services and improve the whole working system for receiving complaints, assignments, handlings, and assessments. Particularly, we will improve the mechanism for assessment, effectively utilizing assessment as a tool to ensure more reasonable allocation of public service resources. We will strengthen language services for foreigners, gradually improving the service capabilities of the city as an international exchange center. We will further optimize hotline services for enterprises and dispel enterprises' concerns to make requests. We will enhance integrated hotline services in the Beijing-Hebei-Tianjin region to reduce the need for cross-regional travel. Second, we will conduct monthly campaigns. Based on big data analysis focused on citizens' complaints, we have specified 13 specialized governance tasks, including improving park management services and solving difficulties related to people's well-being. Third, we will leverage data resources, taking public complaints and requests as a means to precisely analyze public opinion, and transform their voices into a reference for decision-making, further improving the ability of joint and precise urban governance. 

Our effort to ensure prompt handling of public complaints is an ongoing process, and there's no end to it. We will do our best to serve our citizens. Thank you.

Economic Daily:

This year marks the 10th anniversary of the coordinated development of the Beijing-Tianjin-Hebei region. What will Beijing do to better leverage its wealth of innovation to benefit the entire region, promoting collaborative innovation and industrial cooperation across Beijing, Tianjin and Hebei? Thank you.

Yin Yong:

Thank you for your question. I will answer it. The coordinated development of the Beijing-Tianjin-Hebei region is a major national strategy. In advancing the implementation of the strategy in recent years, we have continuously deepened our understanding and increasingly felt that the Beijing-Tianjin-Hebei region is a region with the most complementary resource endowments in China. Why do we say that? As is widely known, Beijing boasts advantages in technology, talent and capital. Tianjin has favorable conditions in terms of key industrial layout, port trade and freight logistics. Hebei is highly competitive in natural resources and labor force and has great development potential. Therefore, the three regions are complementary in their advantages, and can realize coordinated development.

In the past 10 years, we have built and improved an integrated working mechanism in the three regions according to arrangements and decisions of the CPC Central Committee, and have accomplished various tasks and objectives in integrated regional development through lists and programs. We accelerated the formation of "one core and two wings," with the framework in Beijing's sub-center now fully operational. Before the Spring Festival this year, we completed the relocation of a second batch of municipal administrative agencies. So far, nearly 30,000 municipal agency staff members work at the sub-center. Xiong'an New Area is developing with sound momentum. Three colleges and one hospital there are already in operation with support from Beijing. The Zhongguancun Science and Technological Park in the Xiong'an New Area is also in operation. The development of regional integrated transportation has yielded fruitful results with travel among Beijing, Tianjin, and Xiong'an only taking half an hour. The commute time of major cities in the Beijing-Tianjin-Hebei region has been shortened to 1 to 1.5 hours. Joint prevention, control and governance of ecological environment has been  continuously deepened. The average density of fine particulate matters in the three regions was reduced by about 60% compared with 10 years ago in 2013. Collaborative innovation and industrial cooperation have been continuously deepened. In 2023, the value of Beijing's technological contracts with Tianjin and Hebei increased tenfold compared to 10 years ago.

Next, Beijing will work with Tianjin and Hebei to focus on technological innovation and industrial coordination, to accelerate developing new quality productive forces and to build a pioneering and demonstration zone for Chinese modernization. We plan to step up efforts in several aspects: First, we will continue to enhance interconnectivity of infrastructure. In a bid to ensure the smooth circulation of people, goods and other elements, we will improve the regional highway network, speed up the construction of inter-city railways and promoting interconnectivity of regional air, land and sea ports. Second, we will deepen coordination of innovation chains and industrial chains. Centering on industrial chains such as hydrogen power and bio-manufacturing, we will roll out tailored policies for each industry to further expand industrial chains and provide supporting facilities, as well as jointly build advanced manufacturing clusters. Third, we will work together to optimize local conditions for development. We will build integrated regional business environments and advance the release of an action plan for fostering first-class business within the Beijing-Tianjin-Hebei region. In terms of administrative services, we will set equal standards for similar items. For example, we will increase the number of enterprises' mutual recognition of qualifications and certifications to over 20. As for public services, joint construction and shared benefits will be enhanced so that high-quality education and medical resources in Beijing will serve more people in the region. Thank you. 

Chen Wenjun:

Thank you, Mr. Yin, other speakers and friends from the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Wang Yiming, Xu Xiaoxuan, Zhang Rui, Zhou Jing, Yan Bin, Yuan Fang, Liu Caiyi, Liu Sitong, Qin Qi, Wang Yanfang, Zhou Jing, Zhu Bochen, Wang Ziteng, Wang Wei, Xiang Bin, Huang Shan, Liu Jianing, Li Huiru, Wang Qian, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC)

Mr. Yan Bojin, chief risk officer of the CSRC and director general of the Department of Public Offering Supervision of the CSRC

Mr. Shen Bing, director general of the Department of Fund and Intermediary Supervision of the CSRC

Mr. Guo Ruiming, director general of the Department of Listed Company Supervision of the CSRC

Mr. Zhang Chaodong, a person in charge of the Department of Personnel and Education of the CSRC

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 15, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC), to brief you on strengthening regulation and forestalling risks to promote high-quality development of the capital market, and to take your questions. Also present at today's press conference are Mr. Yan Bojin, chief risk officer of the CSRC and director general of the Department of Public Offering Supervision of the CSRC; Mr. Shen Bing, director general of the Department of Fund and Intermediary Supervision of the CSRC; Mr. Guo Ruiming, director general of the Department of Listed Company Supervision of the CSRC; and Mr. Zhang Chaodong, a person in charge of the Department of Personnel and Education of the CSRC.

Now, I will give the floor to Mr. Li Chao for his introduction.

Li Chao:

Friends from the media, good afternoon. Today, we are releasing four key documents. I'd like to take this opportunity to introduce the main background and summarize the contents of these documents.

To thoroughly implement the guiding principles of the Central Financial Work Conference and in accordance with the relevant work arrangements of the State Council, the CSRC, in collaboration with relevant parties, has formulated and issued four documents after careful investigation and research, and gathering opinions from all involved parties. The first document focuses on tightening scrutiny over initial public offerings (IPOs) and improving the quality of listed companies from the source. The second document aims to strengthen the supervision of listed companies. The third document focuses on enhancing the supervision of securities companies and public funds, as well as expediting the establishment of first-class investment banks and investment institutions. Lastly, the fourth document emphasizes implementing strict standards for political integrity, capability development and disciplined conduct, thereby comprehensively enhancing the self-improvement of the CSRC system. Of these four documents, the first three will be released in full today, while the main content of the fourth document on self-improvement will be announced through a press release.

In formulating these documents, we have paid attention to the following aspects:

First, we have adhered to goal orientation and problem orientation. We have focused on accelerating the construction of a safe, regulated, transparent, open, dynamic and resilient capital market, enhancing the market's functions and roles. We did not avoid contradictions, faced problems directly, effectively responded to market concerns, and developed a path for the capital market with Chinese characteristics.

Second, we have firmly focused on the key priorities of strengthening supervision, preventing risks and promoting high-quality development. Strong supervision and risk prevention are essential for high-quality development and are areas in which investors and market participants have voiced many opinions and suggestions. This document emphasizes "strengthening the foundation" and "strict supervision and management." On one hand, it focuses on improving the quality of listed companies, protecting the legitimate rights and interests of investors, and further enhancing market supervision measures. On the other hand, it also emphasizes the need to address internal challenges and strengthening the management of the CSRC. 

Third, we have maintained a systematic approach and implemented comprehensive strategies. The documents issued this time form an organic whole, systematically proposing policy measures from various aspects such as IPOs, continuous supervision of listed companies, and supervision of intermediaries.

Now, I will briefly introduce the main contents of the documents.

Firstly, the document on tightening scrutiny over stock listings aims to improve the quality of listed companies from the source. It comprehensively and strictly strengthens the supervision of IPOs, tightening the responsibilities of all relevant parties in the entire issuance supervision chain. It includes a total of eight policy measures. These are: strictly controlling the quality of declarations of companies planning to list, prohibiting the blind pursuit of listings and excessive financing for profit-making purposes, and promptly and strictly pursuing responsibilities for financial fraud, false statements and misleading packaging in accordance with the law; implementing a system of regular and periodic inspections to ensure comprehensive and continuous oversight, and strengthening the accountability of intermediaries as "gatekeepers"; highlighting the primary responsibility of the exchange review, closely monitoring whether companies planning to list engage in last-minute dividend distributions prior to listing, and strictly supervising overpricing and overfunding; considering the secondary market's capacity and implementing necessary adjustments for the issuance of new shares; significantly increasing the proportion of random inspections on companies planning to list and intensifying problem-oriented on-site inspections; studying the enhancement of listing standards and conducting strict reviews of unprofitable companies; strengthening the thorough supervision of shareholders of companies planning to list to prevent illegal wealth accumulation through unlawful practices; and strengthening the entire chain of supervision and accountability mechanisms. If members of the listing committee and registration reviewers are found to have committed serious negligence or violated disciplinary integrity, they shall be held accountable to Party discipline and administrative responsibilities for life.

The second guideline focuses on enhancing the supervision of listed companies. Aimed at boosting investment value and protecting investors, it outlines 18 measures to address key issues of wide concern, including combating financial fraud, strictly regulating share reduction, improving dividend oversight, and bolstering market value management. According to these measures, efforts will be made to promote the establishment of a comprehensive system for preventing and penalizing financial fraud in the capital market and enhancing thorough supervision capacities to ensure transparent performance and authentic data. Share reduction will be appropriately linked to dividends and situations where the stock price falls below net asset value or below the issue price. Entities found in violation will be ordered to buy back unlawfully reduced shares and submit the price discrepancies. Oversight of cash dividends will be fortified to increase investor returns. Actions will be taken to ensure that listed companies take primary responsibility for managing their market value and to encourage high-quality companies to actively engage in share buybacks.

Li Chao:

The third is the guideline on enhancing the supervision of securities firms and public offering funds. This document concentrates on rectifying the positioning of industry institutions, promoting their functional performance, improving their professional services, and enhancing oversight effectiveness. According to the 25 measures outlined in the guideline, industry institutions will be urged to rectify their operational ethos, prioritize their functions, and effectively fulfill their fiduciary duty. Efforts will be made to refine the mechanism for preventing conflicts of interest and rigorously crack down on illegal acts by shareholders and actual controllers compromising the interests of institutions and investors. Determined efforts will be made to combat misconduct such as the pursuit of money, extravagance, seeking quick profits, and flaunting wealth. Personnel management and supervision will be strengthened to maintain integrity within the industry. Cooperation will be provided to competent departments to continue improving the remuneration management system for industry institutions. The guideline also proposes vigorously developing equity funds and fortifying the core investment and research capacities of public offering funds to improve services for investors. Additionally, the access management of shareholders and businesses will be reinforced, and the qualification criteria and associated systems for senior executives will be upgraded. At the same time, the document places equal emphasis on penalizing both institutions and individuals, imposing both economic and disqualification punishments, and ensuring regulatory accountability and self-discipline, thereby encouraging industry institutions to enhance their own capabilities.

The fourth document focuses on enhancing the self-improvement of the CSRC. Strengthening self-improvement is organizationally crucial for the CSRC to comprehensively fulfill its primary regulatory responsibilities and to promote the high-quality development of the capital market. This document emphasizes a commitment to strictness, facing issues head-on, being strict with the CSRC itself, and leading self-development through self-reform. It advocates for further promoting the exercise of full and rigorous Party self-governance, improving Party conduct and building integrity, and combating corruption. It outlines measures in three respects. First, it emphasizes political integrity, upholding and strengthening the Party's overall leadership in the capital market and implementing the requirements of political and people-oriented specific regulatory tasks, effectively safeguarding the legitimate rights and interests of the vast number of small- and medium-sized investors. Second, it highlights capability development, striving to cultivate a team of regulatory officials capable of shouldering significant responsibilities. Additionally, policies incentivizing officials to take on responsibility, be proactive in their work, and strictly enforce accountability will be refined. Third, it underscores disciplined conduct, ensuring the strict tone, measures, and atmosphere are consistently upheld. Furthermore, rigorous actions will be taken to address the issue of officials entering the business sector after leaving government or vice versa and to rectify pointless formalities, bureaucratism, hedonism, and extravagance. A tough stance will be continuously maintained against corruption.

Following the release of the four documents, we will expedite the introduction of supporting rules and institutional measures. Through these policies and measures, we aim to promote the establishment of institutional mechanisms conducive to the long-term stability and development of the capital market, thus advancing its progress with Chinese characteristics more effectively.

That's all for my introduction. Thank you!

Shou Xiaoli:

Thank you for your introduction, Mr. Li. The floor is now open for questions. Please identify your media outlet before asking questions.

Red Star News:

The introduction mentioned the importance of strictly managing access to IPOs to enhance the quality of listed companies from the outset. What specific measures will be taken in this regard? Thank you.

Yan Bojin:

Thank you for your question. This time, the CSRC issued a document dedicated to enhancing access to IPOs, outlining several targeted measures. Some of these measures reinforce past effective practices, while others introduce new arrangements. The core objective is to fortify the regulatory chain for IPOs, enforce stricter oversight, and enhance the various functions of the market. Practical observations have revealed deficiencies such as unsound internal control mechanisms, irregular corporate governance among some prospective listed companies, and even instances of financial fraud. In response, we will strengthen supervision across all links of the entire IPO chain. Prospective listed companies must adopt a correct IPO mindset, effectively implement the modern corporate system, and assume primary responsibility for the quality of information disclosure. Intermediary institutions must diligently fulfill their role as "gatekeepers" by fully employing methods such as verifying cash flow to ensure financial authenticity. We will also establish a regular and ongoing on-site supervision mechanism for intermediary institutions, aiming for full coverage within a three-year cycle. Exchanges must fulfill their duty as the primary reviewing party, enhance their examination of prospective listed companies, and stringently regulate overpricing and over-funding. Additionally, the CSRC will intensify institution establishment, implementation, and coordination, and significantly increase the proportion of on-site inspections. We will deepen interdepartmental oversight cooperation and ensure retrospective checks and accountability for fraudulent issuance and other activities violating laws and regulations throughout the entire IPO chain.

We have also fully drawn on the opinions and suggestions of all parties in the market, and there will be stricter requirements for the listing threshold, mainly in three aspects. First, modern corporate systems must be established before listing. The funds of investment projects should be reasonable, complete with well-conceived short-, medium- and long-term plans. Sudden "clearance-style" dividend payment should not be carried out, and the "key minority" should have a good reputation. Second, we will study and improve the listing indicators for some boards. From the perspective of regulatory practice, the current financial indicators for listing in some boards are relatively low and the comprehensive indicators are insufficient. They do not fully guide the diversion of enterprises to appropriate boards. We have also heard many market voices suggesting improvement to listing indicators. We will carefully analyze and systematically study this matter, especially by referring to the situation of newly listed enterprises in recent years and enterprises now under listing application review, and then guide the Shanghai and Shenzhen Stock Exchanges to revise the listing rules, appropriately raising the financial indicators for some boards and enriching comprehensive indicators, so as to enable enterprises at different stages of development, in different industries, and with different sizes to list in appropriate boards. Third, we will strictly regulate the listing of unprofitable enterprises. In practice, the development of technology companies may have an unprofitable stage, which does not necessarily mean that these companies have poor continuous operating capabilities. Some high-quality technology companies can grow better and faster through listing, but they must not be "pseudo-technology" enterprises that piece together technologies. In this regard, we will seek the opinions of relevant industry authorities on the technological quality of unprofitable enterprises, and better coordinate the support for technological development and the protection of investors' interests. Thank you. 

CCTV:

We have just heard Vice Chairman Li Chao talk about the CSRC's efforts to further advance full and rigorous Party self-governance, improve Party conduct, build integrity, and fight corruption. Could you please elaborate on the important measures and work arrangements in this regard to provide critical support for the high-quality development of the capital market? Thank you.

Li Chao:

Thank you for your question. We deeply understand that the capital market is a highly regulated and transparent market, which requires an incorruptible market environment. Financial corruption not only seriously hinders the effectiveness of the capital market in serving the real economy but also seriously undermines the authority of regulatory departments and their image in society. The people, especially investors, deeply abhor this. With a deep understanding of General Secretary Xi Jinping's important thoughts on the Party's self-reform, the CPC committee of the CSRC and the discipline inspection and supervision group stationed at the CSRC fully implement the spirit of the Third Plenary Session of the 20th CPC Central Commission for Discipline Inspection and continue to advance efforts in exercising full and rigorous Party self-governance, improving Party conduct, building integrity, and fighting corruption. A systematic approach is adopted, focusing on coordinated and sustained efforts to ensure officials do not have the audacity, opportunity or desire to be corrupt.

First, we have strengthened the deterrent effects towards corruption. The area of public offering review is at high risk for corruption, which the market is highly concerned about. In accordance with the unified deployment of the CPC Central Commission for Discipline Inspection and the National Supervisory Commission, the discipline inspection and supervision group stationed at the CSRC has continuously intensified its efforts and conducted a special campaign against corruption in the area of public offering review. So far, we have investigated and handled 16 typical corruption cases with those under investigation including Zeng Changhong, Wang Zongcheng, Feng Henian, Liu Ti and Cao Jian. These cases have involved CSRC officials at the director-general level, stock exchange executives, members of the public offering review committee and employees of market intermediary institutions. Through the investigation and handling of these cases, we have resolutely combated new and hidden forms of corruption in the capital market, such as abandoning regulatory responsibilities, disrupting regulatory order, creating financial risks and infringing on the rights and interests of small and medium-sized investors. 

Second, we have improved the mechanisms for reducing corruption opportunities by making relevant institutions tighter and stricter. Reducing corruption opportunities relies primarily on institutions. In accordance with the opinions of the discipline inspection and supervision group stationed at the CSRC on "promoting better practices through cases," "promoting good governance through cases," and urging stricter supervision, and in view of the new characteristics of corrupt behaviors reflected in the cases, such as "equity corruption" and "shadow shareholders," we have improved the regulatory system from multiple dimensions, including strengthening institutional supply and enhancing penetrative supervision. To adapt to the characteristics of power exercise after full implementation of the registration-based IPO system, we have focused on key powers such as policymaking, administrative approval, regulatory law enforcement, punishment and accountability to improve institutions and mechanisms and strengthen supervision and restraints on the exercise of public power. We have enhanced the transparency of supervision in a bid to promote supervision and standardization through openness and worked to eliminate the space for power rent-seeking from the source. We have implemented the central government's deployment on investigating both bribe taking and giving, and established a comprehensive mechanism for punishing bribe givers in the capital market to strengthen the deterrent effect of one-time bribe giving leading to restrictions everywhere.

Third, we enhanced the awareness of officials to not have the desire of corruption. The key lies in voluntary self-discipline. Every time the Disciplinary Inspection and Supervision Team stationed at the CSRC investigates a case, it conducts an in-depth analysis of the case's characteristics and specially produces a warning video for education. We worked together with the team and carried out warning education on a regular and comprehensive basis to deepen the use of cases to promote reform. In 2023, we collaborated with the team to build the first regular integrity education base in the CSRC system, and organized all cadres to receive on-site education by stages and in groups. Transparency is the best way to fight against corruption. We warmly welcome supervision from all parties in the market and all sectors of society. At the same time, we will always keep a clear mind, persist in fighting corruption, and get used to working under supervision of different parties.

Going forward, the CSRC Party Committee will work with the Disciplinary Inspection and Supervision Team stationed at the CSRC to effectively shoulder the political and primary responsibilities to conduct thorough and strict Party self-governance, improve Party conduct and build integrity, and prevent corruption, ensuring that Party self-governance becomes stricter, tougher and more effective. Thank you.

China Securities Journal:

The Central Financial Work Conference emphasized the need to comprehensively strengthen financial supervision and effectively prevent and defuse financial risks. You just mentioned the opinions (tentative) on strengthening supervision of securities companies and public funds to accelerate construction of first-class investment banks and investment institutions. According to the opinions, what important measures should be taken to enhance supervision of sponsor institutions and make sure investment banks fulfil their responsibilities as "gatekeepers". Thank you.

Shen Bing:

Thank you for your question. The supervision and professional quality of sponsor institutions are the general concerns of business entities. As a supervisory body, the CSRC urges intermediaries including investment banks to fulfill their responsibilities and truly play their role as "gatekeepers." This is not only the deep expectation of investors, but also a critical element to improve the quality of listed companies at the source and to promote high-quality development of the market. Based on the opinions you just mentioned, I would like to introduce some relevant measures in supervision of institutions. The supervisory efforts can be summarized as implementing strict supervision, strengthening accountability and functions, and optimizing the ecosystem. 

In terms of strict supervision, we have made it clear in the mechanisms and rules that problems such as "IPOs withdrawal after investigation" must be investigated to the end and the person responsible shall be held accountable. In daily supervision, we pay special attention to the prominent issues that are of great concern to the market such as relatively high withdrawal-and-rejection rate and dramatic changes in performance. We strictly implement the principle of "declaration means taking responsibility" and urge sponsors to effectively strengthen internal control and perform verification and inspection responsibilities. We also strengthen information sharing and coordination of supervision and law enforcement in on-site inspections to improve supervisory synergy and effectiveness.

In terms of strengthening accountability, Mr. Li Chao has just made some introductions. We must adhere to see-through supervision and comprehensive accountability, implement dual penalty for institutions and personnel, and make good use of qualification penalty and maximum punishment and other practices in accordance with the law. In particular, penalties will be increased for investment bank directors and senior executives who are responsible for violations to laws and regulations, even including general managers and companies' chairmen. In accordance with the law, we strictly investigate and deal with intermediaries and their employees suspected of committing serious illegal conducts, especially those involving facilitating fraud, and those suspected of committing crimes will be transferred to judicial authorities. We will truly and thoroughly implement the three-dimensional accountability system covering civil, criminal and administrative responsibilities.

In terms of strengthening functions, investment banks are urged to put functionality first, take it as their responsibility to serve the high-quality development of the real economy and protect the legitimate rights and interests of investors, strengthen the construction of core capabilities of investment banks, such as project screening and evaluation and pricing, and recommend truly high-quality companies to the market and investors while firmly blocking those problematic companies from the market.

In terms of optimizing the ecosystem, the professional quality of investment banks will ultimately be reflected in the quality of sponsored listed companies. We attach great importance to the existing classified evaluations of securities companies and the assessment mechanism of investment banking businesses, so that they can truly play their influencer role. In addition, we will improve the system for disclosing negative reviews of sponsor representatives to truly tighten reputation constraints. At the same time, we will strengthen supervision for the integrity of investment banks and their employees, and focus on fighting prominent problems such as improper shareholding and transfers of interests. We set up and improved the comprehensive disciplinary mechanism for bribers, so the black sheep in the sector can be rejected and restricted all around, creating a clean and healthy industry ecosystem. We will fully implement the spirit of the Central Financial Work Conference, pay close attention to the implementation of the opinions, further implement the requirements of intensifying efforts in supervision, and urge intermediaries to play their role as "gatekeeper," making sure listed companies are truly qualified. Thank you.

Nanfang Daily, Nanfang+: 

All parties abhor financial fraud practices in listed companies. We have noticed that the CSRC has repeatedly said that it will focus on preventing and cracking down on fraud. How will the CSRC intensify its crackdown on financial fraud of listed companies? 

Guo Ruiming:

Financial fraud undermines the bottom line of the capital market, and must be cracked down on resolutely. The CSRC has a very firm attitude on this. In recent years, we have invested heavily in regulatory resources. Some of the cases that have attracted people's attention have reflected our efforts. However, frankly speaking, there is still a long way for us to go to meet the expectations of all parties in the market. Going forward, we will work with all regions and departments to strengthen synergy to build a comprehensive punishment and prevention system for cracking down on financial fraud, which mainly includes the following aspects:

Our top priority is to crack down on five types of illegal practices. The first is long-term and systemic fraud, and fraud involving third-party collusion. Targeting these practices, we will seriously investigate the responsibilities of scammers and their accomplices, and resolutely abolish the "ecosystem" of the fraud. The second is fraudulent issuance of stocks and bonds. We will resolutely block fraudsters from entering the capital market and firmly eliminate those who sneak inside. The third involves the abuse of accounting policies and accounting estimates to manipulate profits. The fourth is falsification through activities like financing trade. The fifth is the fraudulent actions that harm the interests of listed companies. These five types are where we will focus our efforts on.

Second, we will hold those responsible to account through comprehensive means in an all-round way. In addition to administrative punishment, we will also adopt a variety of disciplinary measures. For criminal cases, we will make full use of the institutional advantages of the public security and procuratorial organs stationed in the CSRC to jointly investigate and punish a number of typical and malignant cases. In terms of civil cases, we will implement a system of advance compensation, litigation support and commitment of parties involved in administrative law enforcement to compensate investors for their losses and significantly raise the cost of illegal activities. We will also launch more cases to solidify the results. We will resolutely ban those who are most responsible from market entry. Those who meet the standards for mandatory delisting due to major violations will be resolutely delisted.

Third, we will strengthen the internal control and defense lines of companies. An effective internal control system in listed companies is a crucial foundation for preventing systemic financial fraud. Therefore, our focus is on strengthening the functions of the company's board of directors, especially boards of auditors and independent directors in anti-fraud, thus leveraging the internal checks and balances in corporate governance. At the same time, we will encourage internal reporting, and we are exploring increasing the amount of rewards for reporting. Finally, we will strengthen the responsibilities of intermediaries as "gatekeepers." For those intermediaries that lose professional ethics or collude in fraud, we will resolutely impose severe penalties, including industry bans and other penalties. Moreover, we will urge the audit evaluation agencies to timely uncover and proactively report clues of financial fraud in listed companies. We will apply lenient or mitigated punishment in accordance with the law for those who proactively report. The purpose of these measures is to leave fraudsters with nowhere to hide. Thank you.

Phoenix TV:

We have noticed that the documents mention strengthening the random selection of companies to be listed and intensify problem-oriented on-site inspections. What are the considerations behind this approach? What are the specific arrangements for the next step? Thank you.

Yan Bojin:

Thank you for your interest in IPO on-site inspection. On-site inspection is an administrative law enforcement measure granted to the CSRC by the Securities Law. In the field of issuance supervision, it serves as an extension and supplement to the written review for IPO applications. In January 2021, the CSRC issued and implemented the "Provisions on On-site Inspection of Initial Public Offering Companies," which stipulated the procedures, methods, and requirements for on-site inspections of IPO companies. Since the implementation of this system, the CSRC has mobilized resources across the entire system and conducted on-site inspections of 100 IPO companies in an orderly manner. Based on the inspection findings, the CSRC has taken various measures, including initiating investigation against three companies that were suspected of financial fraud in accordance with the law. Through rigorous on-site inspections, regulatory pressure has been transmitted to all levels, and the on-site inspection system has played a key role in improving the standardization of information disclosure and preventing financial fraud.

Recently, we have revised the "Provisions on On-site Inspection of Initial Public Offering Companies" based on our practical experience. One of the most important amendments, which has drawn considerable attention, is the clarification that companies withdrawing their listing applications during the on-site inspection process will still undergo thorough investigations. In other words, even if the listing application is withdrawn, we will still conduct the inspections, hold it accountable if necessary. This is to fundamentally address the issue of "withdrawing after inspection" that has occurred in some companies. At the same time, the new regulations have further improved on-site inspection procedures, introduced a mechanism for conducting inspections without prior notification, and emphasized unifying the standards for processing.

Next, we will significantly increase the proportion of on-site inspections. The primary consideration is to simultaneously increase the number of random sampling and problem-oriented on-site inspections, ensuring that the on-site inspection coverage rate is no less than one-third of the companies to be listed. For signs of fraudulent issuance and financial fraud discovered during on-site inspections, once verified, we will severely punish them. Through this approach, we will effectively deter those attempting to list companies with hidden issues, thereby improving the quality of listed companies from the outset. Thanks.

Market News International:

The CSRC stepped up regulation on shareholding reduction last August, but it has not completely prevented major shareholders from implicitly liquidating shares at high prices after listing. I would like to ask what more stringent and specific measures will be introduced in the future to improve regulation on reductions by major shareholders. Thank you.

Guo Ruiming:

I will take this question. Next, we will comprehensively improve the regulations on shareholding reductions and prevent shareholders from implicitly reducing their shareholdings in accordance with the principle of substance over form. The main measures include: First, we need to clarify the reduction rules in cases such as divorce and dissolution of controlling shareholders. Second, we must clarify the reduction rules for scenarios like stock pledge liquidation and gifts. Third, we need to prohibit major shareholders, directors, and senior executives from engaging in derivative transactions involving the company's stocks, forbid restricted stocks from being used in refinancing and lending, and prevent shareholders with restricted stocks from selling securities. For illegal reductions of holdings, we will order the repurchase of stocks, pay the price differences, and impose severe penalties on those who refuse to correct their actions. Thank you.

China News Service:

Just now, Mr. Li Chao mentioned that the CSRC is implementing strict standards for political integrity, capability development and disciplined conduct, comprehensively improving itself and promoting the high-quality development of the capital market. May I ask, in this regard, what are the key considerations and important measures of the CSRC? Thank you.

Zhang Chaodong:

Thank you for your question. the CSRC's work, including its self-improvement, has always received great attention from all sectors of society. There are many expectations and numerous suggestions that have been put forward. We listen to them carefully and strive to make improvements. On March 6, Wu Qing, chairman of the CSRC, emphasized at a press conference on economy, during the second session of the 14th National People's Congress, that strict supervision and management are essential. Strict management means strict self-discipline and strict control over our team. On the first day after the Spring Festival, the discipline inspection and supervision team stationed at the CSRC also held a special meeting to put forward strict supervisory requirements for strengthening the self-improvement of the CSRC. Through years of practice, we have deeply realized that the effectiveness of the CSRC's self-improvement is crucial for the overall situation of the reform, development and stability of the capital market. It also concerns the image and credibility of the CSRC.

To this end, we have thoroughly studied and comprehended the guiding principles of General Secretary Xi Jinping's series of important speeches, instructions, and directives. We have earnestly implemented the relevant requirements from the Office of the Central Financial and Economic Affairs Commission and the Central Financial Work Commission. Approaching self-improvement from a political standpoint, we have formulated specific opinions on comprehensively strengthening the self-improvement of the CSRC system.

During the drafting process of the opinions, we focused on the "three ones": The first is "one standard," which refers to the implementation of strict standards for political integrity, capability development and disciplined conduct. The second is "one goal," which is to provide a strong guarantee for high-quality development of the capital market. The third is "one orientation," which is to adhere to strictness as the priority, using rigorous management to promote stern supervision. Along with the rapid development of the capital market, the young team at the CSRC has been tested and has grown. However, we are also acutely aware that there is still a significant gap between the requirements of the CPC Central Committee and the expectations from a broad array of investors, and that some prominent issues exist. As vice chairman Li Chao just mentioned, we must be strict with ourselves and engage in self-revolution, confront substantive issues, deeply probe the ideological roots, maintain strict control and management with unwavering resolve all the way through, making great efforts to resolve these issues and to truly achieve a major transformation in thought, perspective and action. The opinions mainly propose the following key measures:

In terms of upholding the political nature and people-oriented focus of capital market regulations, we propose strong advancement in the building of political institutions and in the education and guidance of regulatory officials to uphold their original aspirations of serving the nation through finance and serving the people with finance. They must loyally fulfill the functions and duties entrusted by the Party and the state, carrying out all tasks with a sense of mission and responsibility. In the practice of strengthening regulation, preventing risks and promoting high-quality development, we must keep a firm political direction and persistently adhere to the people's standpoint.

In terms of strict management, we emphasize the need to continuously advance the normalization and long-term implementation of central inspections and rectifications, highlighting the governance of people, authority and affairs through systems. We observe a strict tone and measures, forming and consolidating a strict atmosphere. Issues such as the "revolving door" phenomenon between government and business, as well as "evasive resignations," have severely damaged the credibility of regulation and the healthy ecology of the capital market, attracting widespread criticism. Moving forward, we will address the fundamental issue raised by the discipline inspection and supervision team stationed at the CSRC, which is to diminish the "value of official status" for departing personnel. We will implement comprehensive measures from both ends of business and management, govern across the entire chain and deepen specialized rectifications.

In terms of strict supervision, we resolutely implement the requirement that supervision must be "sharp and thorny," with defined boundaries, reflecting the strict orientation in aspects such as stringent systems, enforcement and outcomes. Focusing on strict supervision, we optimize the regulatory system and enhance the guarantee of regulatory strength. Concurrently, we improve the supervisory capacities of our cadres, strengthen regulatory accountability and promote assertive regulatory actions.

In terms of changing work styles, we emphasize the need for practical actions and immediate execution, rigorously ensuring task implementation and resolutely rectifying pointless formalities, bureaucratism, hedonism and extravagance. We strictly investigate and deal with behaviors that violate the guiding principles of the central Party leadership's eight-point decision on improving work conduct and deeply promote exercising full and rigorous governance in compliance with the Party, improving Party conduct, building integrity and fighting corruption. We insist on in-depth investigation and research, to listen earnestly and respond sincerely to the market's concerns and doubts with a humble and cautious attitude, to make the utmost effort to solve prominent issues and to work wholeheartedly to build a positive image for the CSRC.

Self-improvement is an ongoing journey. Next, we will earnestly ensure the implementation of the opinions and with new achievements in our self-improvement. We will promote the high-quality development of the capital market. Thank you.

Economic Daily:

What specific considerations has the CSRC made in enhancing the inclusiveness and adaptability of capital market regulatory rules, promoting improvements in the quality of listed companies, and better serving the development of new quality productive forces? Thank you.

Li Chao:

During this year's "two sessions," General Secretary Xi Jinping emphasized the importance of developing new quality productive forces in accordance with local conditions, during his participation in the deliberations of the Jiangsu delegation. The CSRC has earnestly studied the important instructions and requirements of General Secretary Xi. As for how to effectively leverage the role of the capital market to better serve the development of new quality productive forces, considerations have primarily been taken into account in the following areas:

First, from the source, which is in the aspect of IPOs, efforts are being made to enhance the inclusiveness, adaptability and precision support of new quality productive forces. However, basic offering standards must of course be maintained.

Second, for companies that have already been listed, leveraging capital market tools such as mergers and acquisitions, corporate restructuring and equity incentives is crucial to facilitate the development and growth of listed companies involved in new quality productive forces.

Third, it is important to further improve the multi-tiered capital market system, including areas such as venture capital funds, with the aim of continuously enhancing the quality and effectiveness of serving the development of new quality productive forces. Thank you.

Yicai:

Mr. Wu Qing, chairman of the China Securities Regulatory Commission, stated at a press conference during this year's "two sessions" that enhancing the construction of the intrinsic stability mechanism in the capital market includes, at least, "one bedrock " and "five pillars." Among these, higher-quality professional services are one of the pillars. In the previously mentioned opinions regarding strengthening oversight over institutions, what are the key measures for promoting the securities and fund institutions to better play their roles to provide higher-quality services? Thank you.

Shen Bing:

Thank you for your question. In our recent announcement regarding the strengthening of regulation for securities firms and public funds, and the accelerated cultivation of first-class investment banks and institutions, we have outlined the development goals for the securities and fund industry. Specifically, we have identified 25 key measures, focusing on phased tasks for the next five years. These measures provide a timetable, roadmap and blueprint for expediting the cultivation of first-class investment banks and institutions. Allow me to provide a brief overview:

First, we aim to rectify the positioning of institutions in the industry. There are gaps in terms of operational concepts, functional effectiveness, governance levels, compliance awareness and other aspects within the institutions in the industry according to the requirements set forth in the Central Financial Work Conference for cultivating first-class investment banks and institutions. The issuance of the opinions this time emphasizes the need to strengthen the leadership of the Party. Through measures such as improving classification evaluation and risk control indicator systems, institutions in the industry are urged to rectify their operational concepts and prioritize functionality, while consistently adhering to the development principle of financial services for the nation and the people.

Second, we aim to enhance corporate governance. Sound and robust corporate governance and compliance risk control are crucial for financial institutions. The opinions systematically put forward requirements for the governance framework of institutions in the industry. For instance, the document highlights the need for a clear equity structure, streamlined organizational structure, well-defined responsibilities, comprehensive information disclosure, reasonable incentive and restraint mechanisms, effective internal controls, and an architectural framework conducive to fostering ethical conduct within the industry. Additionally, institutions in the industry are required to improve mechanisms for preventing conflicts of interest such as related-party transaction management. For high-risk businesses, the principle of "if it cannot be properly supervised, it should not be conducted" should be adhered to. It is essential to enhance assessment mechanisms for compliance risk control and implement the requirements of comprehensive risk management and compliance management across organizations.

Third is to promote cultural progress. In recent years, some practitioners in the sector have led lavish lifestyles, seeking short-term successes and quick profits while flaunting their wealth. Such harmful trends severely damaged the reputation of the sector. Now "The Opinions" urges related financial institutions to vigorously advocate and implement the five financial ethics of Chinese characteristics, which are being honest, fulfilling social responsibilities, exercising prudence, innovating while upholding traditional values and abiding by the law. Vetting and regulation procedures should be strengthened in key processes such as enrollment and appointment. Practitioners with unlawful or immoral behaviors should be removed from the sector with firm resolve. Supervisory bodies should enhance accountability and punitive measures, improve information disclosure regarding penalties and better utilize practitioners' credit records, so as to legally and rigorously prevent law-breaking personnel from continuing to work in the profession. In collaboration with other departments in charge of related work, the supervisory bodies should also continue to improve the salary management system for the sector. Different parties should poll strengths to quickly create an environment of strict disciplines for industry practitioners in order to maintain a good reputation of the sector. 

Fourth is to level up the capacity for providing professional services. This is key to cultivating top-notch investment banks and other investment institutions. "The Opinions" urges related financial institutions to focus on their primary responsibilities and core businesses, fulfil their important roles in ensuring stable and sound performance of the financial market, in discovering value and curbing risks; in facilitating inflow of medium and long-term capital to the market, in improving long-term returns for investors and in supporting high-standard opening up of the financial market. For this purpose, we will provide oversight and recommend to related financial institutions that they strengthen core capabilities, optimize financial services and product supplies and provide products and services that truly suit investors. Also, we will offer support to realize the strategic plans that promote technology-related financing, green financing, inclusive financing, pension financing and digital financing. Thank you. 

Shou Xiaoli:

Due to time limitations, we will have one last question. 

ThePaper.cn:

Investors buy stocks to invest in listed companies. Can you discuss the measures to be taken by the CSRC to elevate the investment values of listed companies and improve sense of gain for investors? Thank you. 

Guo Ruiming:

Thank you for your question. Listed companies comprise the cornerstone of the capital market. In recent years, the overall performance of listed companies has improved. However, we still have a long way to go in terms of increasing investment values and boosting investors' sense of gain. Our efforts will mainly focus on three aspects:

First, we will encourage listed companies to pay attention to investors' returns. Listed companies are the best performers in different sectors. They should act like best performers and provide more benefits to investors, because this is the only way to attract and keep investors engaged. Next, we will formulate guidance for market value management of listed companies, guiding major index stocks to be more willing to benefit investors. We will also push relevant departments to include listed companies' work in improving investment values and market value management into the internal and external examination and appraisal systems, so that best performing listed companies can set good examples and play a guiding role. For companies with stock prices lower than net values, we will offer oversight and urge them to come up with measures for improving investment values. 

Second, we will push more listed companies to pay dividends and buy back their shares. For companies that haven't paid dividends or have only paid extremely small amounts of dividends for years, we will issue warnings and urge them to pay dividends, with other criteria being considered as well. We will also push best performing companies to pay dividends more than once a year with consideration of half-year reports and third-quarter reports, thus to improve investors' sense of gain. Meanwhile, we will offer guidance and support for more listed companies to buy back their shares and encourage cancellation after repurchase, because this is another issue investors pay attention to. 

Third, we will support companies to cement fundamentals. As Mr. Li just mentioned, we will support the mergers and acquisitions of listed companies as well as corporate restructuring, encouraging listed companies to improve performance through capital market tools such as equity incentives so they can excel and strengthen. We will also offer oversight and urge listed companies to improve communication with investors and learn more about investors' demands. Competitive products need effective promotional efforts just the same. So, listed companies should do a good job in managing relationships with investors and take proactive measures to stabilize investors' expectations. 

Last but not least, strict regulation will be implemented on backdoor listings and reckless conglomerate mergers. We will also resolutely crack down on speculative behaviors surrounding backdoor listings, so the principle of survival of the fittest can be better exerted and a healthier ecosystem can be created in the sector. Thank you. 

Shou Xiaoli:

Thanks to all speakers and journalists for attending this press conference. It is hereby concluded. 

Translated and edited by Wang Yiming, Wang Qian, Xu Xiaoxuan, Wang Ziteng, Yuan Fang, Liu Sitong, Yan Bin, Zhang Tingting, Li Huiru, Yan Xiaoqing, Zhang Rui, Liu Caiyi, Huang Shan, Ma Yujia, David Ball, Rochelle Beiersdorfer and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speaker:

Mr. Huang Shouhong, head of the government work report drafting team and director of the State Council Research Office

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

March 5, 2024

Chen Wenjun:

Hello, ladies and gentlemen, and welcome to this briefing held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Huang Shouhong, head of the government work report drafting team and director of the State Council Research Office, to elaborate on the Report on the Work of the Government.

Now, let's give the floor to Mr. Huang.

Huang Shouhong:

Hello, friends from the press. It's a pleasure to meet you and introduce the drafting of the report.

As you know, last year was the first year for implementing the guiding principles from the 20th National Congress of the Communist Party of China (CPC). This year marks the 75th anniversary of the People's Republic of China (PRC). It is also a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan. Against the backdrop of a complex and changing global economy, how has China, the world's second-largest economy, done in the past year? How should we view it? What new goals have we set for this year? What are our plans? And what are the development prospects? These questions are not only of concern to the Chinese people, but also to the international community. The Report on the Work of the Government delivered by Premier Li Qiang this morning reviewed the work of the past year, made requirements for this year's work, put forward the policy orientation, and responded to the concerns of all parties.

The CPC Central Committee and the State Council have attached great importance to the drafting of the government work report. General Secretary Xi Jinping has issued important instructions and specific requirements on multiple occasions when presiding over meetings of the Standing Committee of the Political Bureau of the CPC Central Committee and the Political Bureau of the CPC Central Committee, and during the deliberation on the report, providing guidance and fundamental guidelines for the drafting of the report. Premier Li Qiang presided over the drafting of this year's report. He chaired executive and plenary meetings of the State Council to discuss the draft, and convened several themed symposiums to study and revise the report and formulate relevant policies.

This year's Report on the Work of the Government follows the conventions of previous reports. As you know, the Report on the Work of the Government is a programmatic document for government governance and is normative to a certain degree. Therefore, this year's report follows the established norms, but also has some new characteristics, which can be summarized in many ways. In my personal opinion, they can be viewed from the following three aspects:

First, the report this year both reflects "top-down alignment" and is "down-to-earth." "Top-down alignment" means that the report precisely keeps to the correct political direction and fully adheres to the decisions and plans of the CPC Central Committee with Comrade Xi Jinping at its core. This can also be said to be the most prominent and important feature of this year's report. As we all know, at the beginning of its term of office last year, the current government made it clear that it would act as a faithful executor and an action-oriented and pragmatic team for the implementation of the decisions and plans of the CPC Central Committee. When the drafting work began this year, Premier Li Qiang clearly requested that the report thoroughly implement the decisions and arrangements of the CPC Central Committee. The main content of the report this year, including the review of last year's work and the overall requirements, main targets for development, macro policy orientations, and key tasks of government work this year, were all drafted in accordance with the guiding principles of the important speech delivered by General Secretary Xi Jinping at the Central Economic Work Conference last year. The report this year includes 10 major tasks, nine of which are the key tasks deployed by the general secretary in his speech at the Central Economic Work Conference. At the same time, considering that education, science and technology, and talents are the foundational and strategic pillars for building a modern socialist country in all respects, and considering that the 20th CPC National Congress has listed "science and technology, education and talents" in a separate section, the report has added a new section on "invigorating China through science and education and consolidating the foundations for high-quality development." Meanwhile, following established practice, the report also incorporates content on culture, social governance, government self-improvement, ethnic and religious affairs, overseas Chinese affairs, national defense and military development, Hong Kong and Macao, Taiwan, and diplomacy. These parts have all been drafted in line with the relevant directives of the CPC Central Committee. Following the Central Economic Work Conference, the CPC Central Committee convened a series of important meetings, including those of the Central Commission for Comprehensively Deepening Reform and the Central Commission for Financial and Economic Affairs , which also resulted in the formulation of key measures. After each meeting, the drafting team promptly studied and grasped the new initiatives and incorporated them into the report. Consequently, during the solicitation of opinions, all parties unanimously agreed that this year's report effectively embodies the "three full reflections." This means that it fully reflects Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; fully reflects the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, and the Central Economic Work Conference; and fully reflects the important instructions and directives of General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee.

Huang Shouhong:

The "down-to-earth" aspect of this year's report is reflected in the fact that it accurately reflects the pulse of society, fully represents the aspirations and concerns of the people, and responds to the concerns of all stakeholders, especially those at the grassroots level, the general public and businesses. All the policies and measures are practical, aligned with the needs of the people, and beneficial to businesses. How has this been achieved? By extensively listening to opinions. Extensive consultation is not unique to this year's report; it is a cornerstone of the Party's approach to developing important documents and policies. This aligns with the principle of "from the people and to the people " — the "mass line" leadership and work method of the CPC. General Secretary Xi Jinping has made clear requirements for policy and document formulation, emphasizing the importance of transparent decision-making and collective wisdom. The general secretary embodies this principle through his own actions. For instance, in preparation for last year's Central Economic Work Conference, General Secretary Xi Jinping presided over a series of symposiums to gather opinions. He also undertook research visits to various locations on many occasions. As shown on TV and in news reports, the general secretary has actively engaged with people at all levels, visiting factories, workshops and farms to talk with local officials and ordinary people, hearing their opinions and suggestions. The general secretary's commitment to listening to the voices of the people, understanding their needs and learning about their living standards serves as a benchmark for us all. The major decisions made by the CPC Central Committee are a culmination of this very principle — gathering diverse perspectives to make informed decisions. It is even more important to openly seek advice and pool wisdom to ensure the standard of the draft report and implement the decisions and arrangements of the CPC Central Committee.

Huang Shouhong:

During the drafting and revising of the government work report, Premier Li Qiang visited grassroots communities for many occasions, and heard opinions and suggestions from representatives of all walks of life at three symposiums, including one attended by experts in various fields, businesspeople , and representatives from sectors such as education, research, culture, and health; and one attended by leaders of non-CPC political parties and the All-China Federation of Industry and Commerce, and representatives of persons without party affiliation. He also presided over a symposium to listen to the opinions and suggestions of local officials at provincial, municipal, county and township levels on the draft government work report. Other leaders of the State Council also listened to opinions and suggestions through a range of methods.

During the drafting process, the report's drafting team was open to the opinions and suggestions of local authorities and government departments as well as those from all sectors of society. The draft report was based on the opinions and suggestions on the work that were put forward by local authorities and government departments. After the draft report was finished, it was printed and distributed to all localities, government departments and units to solicit opinions. This year, more than 4,000 copies were handed out, from which more than 1,100 pieces of feedback were sorted through. All sectors of society paid great attention to the drafting of the government work report and put forward a large number of suggestions through various methods. Many news media, online platforms, Weibo, forums and so on, collected netizens' opinions. For example, this year, the gov.cn website teamed up with 29 online media platforms to launch @State Council, Share Your Views on 2024 China's Government Work Report campaign. As of yesterday, more than 1.6 million comments have been received from netizens, an increase of 82% over last year. The gov.cn website selected 1,150 representative suggestions and forwarded them to the drafting team. After preliminary sorting, a large stack of opinions and suggestions was forwarded to us each time with very detailed content, including reasons and suggestions. Some netizens even provided a feasibility analysis and timelines for the introduction of their suggested policies. This was very thoughtful. The netizens who left comments included both young and old, male and female. The oldest one was 82 years old and the youngest was 12 years old. Some netizens praised the practice of extensive listening to opinions on the draft work report. One of them commented: "Asking the people for their needs and suggestions makes the government work report more down-to-earth, well-grounded and engaging."

During the solicitation campaign, we also received suggestions from netizens from more than 40 countries, including investors, economists, teachers and doctors. They provided opinions and suggestions on topics such as investing and starting businesses in China, visa processing, and travel and shopping in China, among others. This year, the number of participating foreign netizens and the countries they come from increased significantly compared with previous years. This also reflects the fact that more and more people around the world are interested in China. They are optimistic about China's future, and are willing to cooperate with China and walk side by side with the Chinese people.

Overall, a large number of people made suggestions for this year's government work report. A total of 1.6 million people made suggestions on the gov.cn website alone, and millions more participated through other media-organized events. As such, the number of participants is huge and they represent all different occupations and age groups.

Approximately 10,000 people directly participated in the revision of the government work report. This includes the more than 4,000 relevant local and department officials mentioned earlier, as well as deputies to the people's congresses, members of the Chinese People's Political Consultative Conference, and other relevant individuals.

Huang Shouhong:

We considered all these suggestions one by one, including those from netizens, to see if we could incorporate them either fully or partly. Even if we could not incorporate an entire suggestion, we still carefully examined each one, considering whether it contained reasonable elements and practical guidance at the operational level. Following the principle of incorporating as much as possible, we put forward our recommendations, which were submitted to the CPC Central Committee and the State Council for approval in accordance with the procedures and then written into the report. In the following days, we will continue to revise the report in accordance with the opinions of lawmakers and political advisors.

Second, the report integrates top-level plans with demands of grassroots communities. It combines the decisions and plans of the CPC Central Committee and the State Council with the demands and suggestions from all sectors of society, transforming them into specific task lists, blueprints and policy agendas for the government and its departments. As you know, the Central Economic Work Conference sets the overall tone, draws the big picture and outlines major policies, while enterprises and the public express their specific desires and demands. All of these need to be refined and translated into concrete policies and feasible measures. The report, after thorough research and deliberation, has formulated specific work tasks and policy measures, organically aligning the CPC Central Committee's decisions and plans with the wishes and demands of enterprises and the public.

The government work report covers a wide range of topics. Due to space limitations, we strived to condense the text while ensuring each sentence is carefully revised. We aimed to express richer content and meaning using concise language. Meanwhile, following Premier Li Qiang's instructions, we paid special attention to ensuring better connection between the government work report and the draft plan for national economic and social development as well as the draft budgets. The government work report primarily focuses on key points and summaries. It currently consists of 16,900 Chinese characters. The draft plan for national economic and social development and draft budgets, on the other hand, delve into specifics and details. The development plan report contains 58,900 Chinese characters, and the budget report contains 19,500 Chinese characters. These three reports complement each other, forming an organic whole. Therefore, when reading the government work report, it is essential to also consider the other two reports in order to gain a comprehensive understanding of the government's overall work arrangements this year.

Third, the report adheres to the principles of truthfulness, pragmatism and simplicity. Some journalists who were present for Premier Li Qiang's delivery of the report may have been deeply impressed by this aspect. This year's report follows the stylistic norms, aiming to be informative while also simple. When discussing last year's achievements, the focus is on presenting facts and data without embellishment. The report highlights the distinctive features of last year's work without attempting to cover every detail. In outlining this year's work, the emphasis has been placed on new arrangements and initiatives. For important tasks that require continuous progress and major strategies that require continuous implementation, concise summaries are provided. When introducing various policies and measures, the focus is on practical content — which is what the public are most interested in. The report strives to be targeted, proposing effective policies and measures that genuinely address the concerns of society. The language used aims for simplicity and clarity, to ensure that it can be understood by ordinary people.

Huang Shouhong:

Earlier, I introduced the drafting of the government work report and its characteristics. Recently, I have read some international reports where some people often get confused about confrontation with complex and severe international environments and various risks and challenges. Many countries often find that their development goals cannot be achieved as expected or the results may fall short of their expectations. With regards to that, they ask one question: how can China always accomplish its goals and tasks in these years and continue to attain new achievements in its development ? There are many reasons for this. One reason is that when the CPC and the Chinese government make development goals and put forward important policies, we implement the mass line, bring democracy into full play and seek the biggest common ground possible, which thus lay a solid popular and social basis, instead of decisions being made by a few people behind closed doors and reflecting the will and aspiration of only a few people. This year's government work report fully demonstrates the bond between the Party and the people as well as the resonance between policymaking and public opinion. It also fully reflects the will, aspiration and demand of the people nationwide. I believe that after the deliberation and approval at the second session of the 14th NPC, the report will be jointly followed and acted upon accordingly by the people nationally and will gather strong driving force for economic and social development. The goals and tasks put forward in the report will definitely be accomplished. As a Chinese saying that many are familiar with goes, "People with one mind and heart have the power to move a mountain."

The report is comprehensive, systematic, and rich in content. To understand it, we must grasp its main ideas and purpose. According to my personal understanding, the soul of the report is Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and its essence is the guiding principles of the Central Economic Work Conference. The main idea that runs through the report is that upholding high-quality development is of paramount importance in the new era. The report focuses on the central task of economic development and the priority task of high-quality development. Advancing high-quality development requires full and faithful application of the new development philosophy on all fronts and a good grasp of its general logic of reform, opening up and innovation as well as the starting point and ultimate goal of safeguarding and improving people's wellbeing.

Due to time constraints, that's all for my brief introduction. Next, I would like to discuss the drafting of the report with you. Thank you.

Chen Wenjun:

Thank you, Mr. Huang. Now the floor is open for questions. Please identify your media outlet before raising questions.

CCTV:

This year's government work report reviewed the work accomplished and achievements attained last year. What's your thoughts of these achievements? When reviewing the achievements of last year, the report described that these achievements "did not come easily." What's the difference in last year's difficulties? How were these difficulties overcome? Thank you.

Huang Shouhong:

We have all experienced the past year together. Different people may have different opinions towards the achievements we made last year. Generally speaking, I believe that these achievements are commendable and carry weight. They demonstrate both significant progress and great potentials, and consist of both material and cultural wealth.

We can see external, tangible, and visible achievements that can be measured by data. For instance, China's economic aggregate surpassed 126 trillion yuan, with a growth rate of 5.2%. We can make comparisons both horizontally and vertically. By a vertical comparison, the growth rate of 5.2% is 2.2 percentage points faster than last year, and is faster than the average annual growth rate of 4.5% in the past three years during the COVID-19 pandemic. By a horizontal comparison, China takes a leading position among major global economies and is still the largest driver of growth for the global economy, contributing about 30% to total global economic growth.

There are also achievements that cannot or are difficult to be quantified but can be perceived and felt by everybody. For example, new industries, new business forms and models continue to emerge; public transportation is more convenient and there is a larger variety of goods and services for people.

In addition to that, there are also many intrinsic, profound and silent changes, such as the transformation of concepts, consistent improvement to institutions, improvements in conduct and accelerated shift with the growth model.  

Overall, we can perceive the achievements we made last year from multiple dimensions and perspectives. This is like what a Chinese poem says, "One gets different impressions of a mountain when viewing it from the front, sideways, at a close range or from afar." We will have different feelings about these achievements when viewing them from different perspectives. Generally speaking, China's economic development last year saw both growth in quantity and improvement in quality as well as intangible positive trends. It can be said that these achievements are high-value additions. In his 2024 New Year message, General Secretary Xi Jinping spoke profoundly about the work and achievements in the previous year. In 2023, we marched forward with solid and robust steps, in high spirits and with great confidence.

These achievements have been attained with tremendous efforts and are extraordinary. In your question, you mentioned that when we talk about these achievements we often say that these achievements came with difficulty. During the process of soliciting opinions, many organizations and individuals put forward suggestions, and the word "uneasily" in their comments was always preceded by a word, some by "very," some by "particularly," some by "extremely," and so on. As mentioned earlier, this year's report values plainness and simplicity, so these adverbs, including "very," "extremely" and "particularly," were not added. However, last year was indeed not easy. You all experienced last year personally and must have deep feelings. At the beginning of last year, we achieved a smooth transition with our COVID-19 response efforts. The transition itself was a complex process and all parties have made tremendous efforts, which in itself is a great achievement.

In terms of economic development, according to the report, we were faced with a combination of multiple difficulties and challenges, which can be said to be rarely seen in our work. It is the interlacing of multiple factors such as pandemic factors and complicated economic recovery factors. During the last three years of the pandemic, we have made great achievements in protecting people's lives and health. At the same time, the COVID-19 pandemic has affected China's economic performance and damaged its economy. In addition, contradictions and risks that have been building up over the years are becoming more evident, including the risks in the real estate sector, local government debt and small and medium-sized financial institutions. We also encountered many new conditions and problems, such as insufficiency with domestic demand and decline in external demand as well as co-existence of cyclical and structural problems. Honestly speaking, it would not be easy to cope with just one of these challenges. It would be harder to effectively handle all these challenges. Therefore, faced with an extremely complicated and severe situation, it was not easy for us to maintain stable economic performance and complete the tasks for economic development in 2023. In many areas, just as mentioned in the report, there are many positive trends, which are even harder to achieve. Therefore, to understand the achievements of last year, we must combine background and situational circumstances. It is just like when we look at a painting, we need to look at the background.

What does China owe to its commendable achievements that did not come easily in the past year? The report notes that we owe our achievements in 2023 to General Secretary Xi Jinping, who is at the helm charting the course, to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, and to the concerted efforts of the whole Party, the armed forces, and Chinese people of all ethnic groups. At the same time, these achievements once again demonstrate the decisive significance of establishing Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era while fully demonstrating the strong resilience, potential and momentum of China's economy.

Huang Shouhong:

There are three characteristics of our macro policies and efforts last year worth summarizing.

First, giving priority to consolidating the foundations of the economy. The expression "consolidating the foundations," used in the report is frequently found in traditional Chinese medicine. After three years of COVID-19, the Chinese economy has entered an overall recovery stage, analogous to the process of "recovering from a serious illness." At the same time, it faces multiple difficulties and challenges, exerting increased pressure on our economy. There are two ways to respond to this circumstance. One approach is to implement a deluge of stimulus policies and strong stimulus measures to increase the growth rate in the short term. If we did so, we would certainly achieve a higher growth rate in the short term but would suffer its after-effects. The other approach is to pursue progress while ensuring stability, just like how traditional Chinese medicine helps patients who just recovered from a serious illness to recuperate and restore their vitality. After analysis and comparison, we opted for the approach of consolidating the foundations of the economy to ensure stable growth and sustain momentum. We implemented a number of measures conducive to both current and future development.

Second, strengthening interplay between policies to see that together they deliver greater outcomes. Since we faced multiple challenges last year, each with its own nature and characteristics, we could hardly adopt a single policy that would address all challenges. Therefore, last year, we placed greater emphasis on coordinating policies to ensure that, collectively, they deliver greater outcomes. To address tasks including expanding domestic demand, improving the economic structure, bolstering confidence, and preventing and defusing risks, we adopted a comprehensive range of robust and effective policies, including well-coordinated fiscal, monetary, and employment policies, to create synergy.

Third, placing an emphasis on taking targeted steps. In view of different contradictions and problems, we implemented varied targeted measures. Last year, for example, we introduced policies to support the development of state-owned enterprises, private companies, and foreign investment in response to the specific situations and needs of different business entities. There were both shared policies and targeted measures to address different difficulties and needs.

On the whole, we achieved commendable accomplishments last year and accumulated valuable experience. A thorough understanding of these achievements last year ensures a deeper insight into the reasons behind China's economic achievements in the past few years and boosts confidence in achieving development goals this year, as the logic and fundamental driving factors are the same. This is also why I spent more time elaborating on it.

Thank you.

Market News International:

According to the government work report, China has set a GDP growth target of around 5%. Why has the GDP target been set at this level? And what measures will authorities implement to ensure this target can be met?

Huang Shouhong:

In setting the growth rate for this year at around 5%, we considered evolving dynamics at home and abroad, along with other relevant factors, as well as what is needed and what is possible. It can be said that we have set this target based on current needs and with a long-term view. To be specific, from the perspective of current needs, we require a certain rate of economic growth to expand employment, increase people's incomes, and prevent and defuse risks. There is relatively high employment pressure this year, with more than 12 million new urban jobs to be created. If we do a rough calculation based on the relationship between employment and economic growth, or how economic growth will stimulate employment, the economy needs to maintain a growth rate of around 5% to meet the employment target. Certainly, other needs should also be taken into account.

In the long term, or in the medium to long term, we will basically realize socialist modernization by 2035, which entails reaching a per capita GDP level comparable to moderately developed countries. While no specific quantitative requirement is stated, there is an implicit requirement for the economic growth rate. According to comprehensive estimates, to basically realize socialist modernization by 2035, we will need to maintain an economic growth rate of around 5%. This target is set based on a comprehensive analysis of the supporting conditions and favorable factors for China's economic growth.

Actually, this has been the way that the Party and the government have set development goals over the years, considering both what is needed and what is possible. While higher targets may be desirable in terms of what is needed, setting targets unattainable due to lack of support would not work. As for whether we can achieve the growth target we have set, I believe there are conditions and support to achieve a growth rate of 5% this year.

Recently, there have been forecasts for China's economic growth rate this year. Some major international organizations, including the International Monetary Fund, along with some economists, have made their forecasts and shared their views. As for why we have expressed confidence in our ability to achieve this target, I will elaborate on it here not from an academic or theoretical perspective, but based on a basic logic and common sense.

First, the fundamental driving factors for China's economic growth, including the 5.2% growth achieved last year, have remained unchanged, with some even growing significantly stronger. According to the report, China possesses several advantages for developing its economy, including vast market demand, a complete industrial system to ensure supply, and a huge and highly skilled workforce. For example, in recent years, new driving forces have been rapidly developing and growing stronger year by year. The new energy vehicle sector, for example, has expanded from scratch to what it is now in just over a decade. Last year alone, the production and sales volume exceeded 9 million, accounting for more than 60% of the global share.

Second, positive factors for economic development have been on the rise since the beginning of this year, while some of the unfavorable factors hindering economic development last year are weakening. In January and February of last year, we were still working hard for a smooth transition in epidemic response following a major, decisive victory in the fight against COVID-19. This year, the lingering effects of the epidemic are waning. For example, progress was made last year in preventing and defusing risks in real estate, local government debt, and small and medium financial institutions, thanks to the concerted efforts of all stakeholders. Real estate investment and sales improved overall. Certainly, some conditions are still changing. Local debt risks have been alleviated on the whole, and the reform of small and medium financial institutions to defuse risks is accelerating. In terms of preventing these major risks and potential dangers, we still face challenging tasks, as well as new situations and problems. But in any case, we are in a better situation this year than last year, not worse. The same applies to some other factors as well. By no means am I ignoring the difficulties and challenges in saying so. In fact, China still faces challenging and complex evolving dynamics at home and abroad in its economic development, and the report describes at length the difficulties and challenges we face. However, despite difficulties every year, we have consistently improved our quality of life. Zooming out, we can see that in recent years, China has been developing, progressing, and growing stronger in addressing difficulties and challenges.

Third, some major policy measures taken since last year gradually started to take effect this year. It takes some time for policies to take effect after they are implemented, so the effects of policies adopted in the second half of last year are expected to be revealed this year.

Moreover, we have gathered extensive experience while dealing with the difficulties over the past couple of years, especially those problems last year that have not been seen for several years. Fiscally and financially speaking, China's government debt ratio is below 60%, and its financial systems operated in a robust and stable manner. The country has ample space in macroeconomic policies. The government work report pointed out a lot of major policies to achieve this goal. There are also various tools in reserve that will enable us to deal with any unexpected shocks to the Chinese economy, or unexpected changes in the international environment.

According to the report, generally speaking, there will be both strategic opportunities and challenges, with favorable conditions outweighing unfavorable ones. China's economy expanded by 5.2% last year, so it is entirely possible that the economy will achieve the growth target of around 5% this year. Of course, hard work is necessary to make things happen. In order to achieve this year's target of 5% growth, we must meet challenges head-on and overcome difficulties, and all sides need to make continued efforts. In this regard, the report pointed out that as long as we fully implement the decisions and plans of the Party Central Committee, make good use of all favorable opportunities and conditions, and fully leverage the motivation, dedication and creativity of everyone , we will undoubtedly overcome any difficulties and challenges, promote sound and steady economic growth, and achieve this year's projected growth target.

Thank you. 

People's Daily:

We noted that this year's government work report put forward a lot of new policies and measures to ensure and improve the people's well-being, which we have all been looking forward to. What new benefits will the people receive this year? Can all these promises be fully met given the fact that some local governments are facing fiscal pressure? Thank you. 

Huang Shouhong:

Thank you for your questions. Improving the people's well-being is the fundamental purpose of development. This year's report focused on the public's concerns, and put forward a lot of policies and measures. Efforts to ensure and improve the people's well-being are reflected in many places in the report with various requirements.

For example, the overall requirements section and other parts of the report mention improving the people's well-being. In the section on education, the report stressed efforts to improve the conditions in boarding schools in rural areas. There are more than 30 million boarding students in compulsory education nationwide, many of whom are left-behind children. Although the conditions of boarding schools in rural areas have improved remarkably in recent years, many weak links remain. As such, the report emphasized increasing efforts to shore up such weak links so as to ensure these children can attend school and study well.

Regarding medical and health services, the report pointed out that subsidies for basic medical insurance will continue to increase, with government subsidies for basic medical insurance for rural and non-working urban residents increasing by 30 yuan to 670 yuan per person per year. Moreover, regarding difficulties in receiving medical treatment and getting reimbursement, the report noted that efforts will be made to implement and refine the policies on settling medical expenses where they are incurred, to improve medical services with a patient-centered approach, and to promote mutual recognition of medical examination results between hospitals.

Regarding social security, the report pointed out that continued efforts will be made to increase basic pensions for retirees, and the minimum basic old-age benefits for rural and non-working urban residents will be raised by 20 yuan per month. I'd like to briefly introduce this point. Currently, more than 170 million elderly people across the country have been receiving old-age insurance benefits for urban and rural residents. The minimum standard will be raised by 20 yuan this year, an increase of 19.4%, which is the largest increase in recent years.

The report contains a lot more measures to ensure people's well-being, but I will not list them all due to time constraints. 

Huang Shouhong:

As mentioned previously, some local governments are facing fiscal pressure. As such, there have been concerns raised about whether there will be sufficient financial support for the measures proposed in the government work report, as well as the reports on budgets, national economic and social development plans, and whether the promises can be fulfilled. The government work report made special emphasis in this regard, and made arrangements accordingly. In the section on proactive fiscal policy, it stressed that it will further improve the structure of government spending, and ensure sufficient funding for major national strategic tasks and efforts to meet people's basic living needs. The central government will increase transfer payments to local governments this year, with its budget being more than 10 trillion yuan. Governments at the provincial level, meanwhile, should allocate more fiscal resources to lower-level governments to ensure that at the primary level, basic living needs are met, salaries are paid and governments function smoothly. The budget report also made detailed arrangements on spending to meet basic living needs, which you may also refer to. 

I believe the arrangements for improving the people's well-being made this year will be fully implemented with the concerted efforts by all of us throughout the country. The government work report also emphasized efforts to address inadequacies in public well-being from the perspective of development. This is very important. Improving the people's well-being is also a driving force for economic development. Addressing problems regarding employment, elderly care and medical care will not only improve people's well-being, but also unleash the enormous potential of domestic demand. Therefore, we need to deal with issues regarding people's well-being, such as ensuring elderly care and child care, and facilitating kindergarten and school enrollment of children. As such, we need to increase investment, which will lead to expenditures in other areas. All the measures to ensure and improve people's well-being can be achieved, as we have made sure that the measures and targets are entirely feasible, and the government has studied and formulated supporting measures. While ensuring and improving the people's well-being, our fundamental principle is to do everything we can within our capacity. The government needs to fulfill its responsibility to meet people's basic needs, and provide a cushion for those most in need. On top of this, the government will do its best to improve people's well-being. Thank you. 

Beijing Youth Daily:

My question is about people's well-being. Employment is pivotal to people's well-being. In recent years, the employment of young people, especially college graduates, has generated widespread concern. The latest Report on the Work of the Government proposed adding no fewer than 12 million urban jobs this year. What were the considerations in setting this goal when faced with relatively high pressure in this regard? And can this goal be achieved? Thank you.

Huang Shouhong:

Thank you for your questions. Employment is pivotal to people's well-being. It concerns the most fundamental interests of both the country and individuals. Employment of the younger generation is the most important concern of every family.

In recent years, the CPC Central Committee and the State Council have put great emphasis on employment, and taken a slew of measures. This year's government work report highlights an employment-first approach and makes a series of measures. First, this year's report projects the number of added urban jobs to exceed 12 million, compared to "about 12 million" in last year's report. This demonstrates that the Party and the central government's strong efforts, determination and clear policy orientation in stabilizing employment. 

The report proposes an array of policies and measures in three aspects to achieve employment objectives, especially those about guaranteeing employment for young people and college graduates: First, policy support will be bolstered, including macro policy support. The report requires further support of fiscal and financial policies for employment, rolling out more policies conducive to stabilizing expectations, maintaining growth and guaranteeing employment. Meanwhile, specialized policies promoting employment are enhanced, such as policies on unemployment insurance premiums refunds, special loans for stabilizing and increasing employment, and employment and social insurance subsidies. 

Second, support for enterprises in key industries and key groups will be strengthened. The report requires to provide more support to sectors and enterprises with a large capacity for creating jobs, and more assistance for key groups like college graduates. The report also arranges work to ensure fair employment and guarantee the rights and interests , which are of great social concern.  

Third, vocational skills training will be enhanced. In China, the pressure on aggregate job creation coexists with the related structural issues. In many industries, fields and regions, some people don't have jobs, while some jobs are in urgent need of employees. Shortages of talented workers occur in many industries and sectors. For example, the manufacturing sector faces a shortage of 30 million employees. The potential need for elderly care workers amounts to more than 10 million, but the number of such workers is only over 300,000. Families with elders, especially those having elders with disabilities, may find it difficult to find skilled and practiced elderly care workers. Now, China has more than 5 million nurses, with an annual increase of 300,000 people. But the average number of nurses for each 1,000 people is only 3.7, lower than the average number of developed countries, which is from eight to 15 nurses. The shortages indicate our employment potential and the key lies in taking measures to align labor supply with demands and coordinate labor force's employment skills, professions and abilities with demands. The report points out that we will enhance vocational skills training to meet job demands in sectors such as advanced manufacturing, modern services, and elderly care. These policies shall ease current employment pressure and improve labor force's caliber in a bid to meet needs for high-skilled workers during economic development. 

In general, we face great pressure in stabilizing employment while seeing to the huge potential that lies in employment, and we strive to fully unleash this potential. The employment condition this year certainly will be promising. Thank you.

Lianhe Zaobao:

Chinese Premier Li Qiang mentioned in this year's government work report that the targeted fiscal deficit-to-GDP ratio is set at 3%. Why does China set the number at 3% this year? How to interpret this percentage? Thank you. 

Huang Shouhong: 

As is widely recognized, the fiscal deficit-to-GDP ratio serves as a crucial indicator reflecting the strength of fiscal policy and degree of fiscal risk. Globally, there is a "red line" of a 3% fiscal deficit ratio, but it is not a golden rule as many countries' deficit-to-GDP ratio may far surpass 3% at times, with some reaching double digits. In China's case, our deficit-to-GDP ratio has been kept within a reasonable and moderate range over the years, taking into account factors such as supporting economic growth, preventing fiscal risks and achieving fiscal sustainability. Over the years, China's deficit-to-GDP ratio only exceeded the 3% mark in 2020 and 2021, during the response to the COVID-19 pandemic. Otherwise, it has remained below the level. In the beginning of 2023, the central government set a deficit-to-GDP ratio of 3% when arranging the budget. With the issuance of an additional 1 trillion yuan in special treasury bonds in the fourth quarter, which counted towards the deficit, the ratio rose to approximately 3.8%. This year, we have set the deficit-to-GDP ratio at 3%, the same as the budget arranged at the beginning of last year. Although this year's deficit ratio is slightly lower compared with last year's after the issuance of 1-trillion-yuan government bonds , the overall level is appropriate. The fiscal arrangement is in line with the overall positive trend of China's economic operations, sending an optimistic message to the international community, which is also conducive to controlling the government debt ratio and enhancing fiscal sustainability. It also reserves policy space to address potential future risks and challenges. After considering these elements, we have set the deficit-to-GDP ratio for this year at 3%.

Recently I noticed that some experts, scholars and institutions are discussing what China's deficit-to-GDP ratio should be. Some suggest a little bit over 3% while some say a little lower than 3%. Fiscal deficit-to-GDP ratio should be set according to the general fiscal policy tools. The report says the country will appropriately enhance the intensity of proactive fiscal policy and improve its quality and effectiveness this yea r, which requires coordinated deployment of various policy tools to unleash overall effects. These include deficit, as well as other policy tools such as special bonds of local governments, national debt and preferential tax and fees policies. Therefore, this year's lower deficit after last year's adjusted budget doesn't mean the proactive fiscal policy abates. Rather, proactive fiscal policies mentioned in the report shall be considered as a whole. Though the deficit-to-GDP ratio maintains at 3%, the expanded GDP leads to a total of 4.06-trillion-yuan deficit this year, which is 180 billion yuan more than the budget at the beginning of last year. Besides, 3.9 trillion yuan of special-purpose bonds for local governments will be issued this year, an increase of 100 billion yuan over last year. The fiscal revenue this year will sustain a growing trend, and the fiscal expenditure will be quite large. This year, general public expenditures in the government budget are projected to reach 28.5 trillion yuan, an increase of 1.1 trillion yuan over last year. Hence, the fiscal policy this year is appropriately strengthened, and the key is to spend the budget wisely on vital sectors. By doing so, we will guarantee sufficient funding for major national strategic tasks and efforts to meet the people's basic living needs as required by the work report. 

Thank you. 

Zhinews of Shenzhen Satellite TV:

Last year, China saw a decline in actual foreign investment utilization, raising concerns about the confidence and outlook of some foreign enterprises in the country. How should we interpret this situation? What policies and measures will be implemented this year to attract foreign investment? Thank you.

Huang Shouhong:

From a data perspective, there was a decline in the actual utilization of foreign investment last year. Short-term fluctuations are normal and result from various factors, including many elements that are incidental or only last for a certain period. In addressing this issue, the focus should be on assessing the overall trend and trajectory.

Last year, according to data from the United Nations Conference on Trade and Development, global foreign direct investment (FDI) declined by 18% after excluding the rapid growth of FDI intermediaries. At the same time, countries worldwide are intensifying their efforts to attract investment, resulting in increased competition in this area. Last year, China's growth in attracting foreign investment decreased by 8% when denominated in RMB. However, the overall size remains relatively big, considering both horizontal and vertical comparisons. Vertically, China is currently at its third-highest level, slightly lower than in 2021 and 2022. Horizontally, China continues to rank first among developing countries in attracting foreign investment, with its share of global FDI exceeding 10% and remaining relatively stable.

Of course, attracting foreign investment faces some disruptive factors, and there are indeed some noteworthy new situations and issues to consider. However, it's important to note that investors are rational and focus on medium and long-term returns. According to statistics from relevant authorities, foreign investors who have invested and operated in China in recent years have enjoyed a direct investment return rate of around 9%, which is relatively high internationally. Therefore, China remains globally attractive for foreign investment. With China's vast market and immense potential, many technologies get adopted and promoted quickly here once brought in, including new ones in the field of digital economy. With over a billion smartphone and internet users in China, any new technology introduced here can be promoted quickly. The investment potential and opportunities in China are enormous, which is why foreign investors maintain a high level of enthusiasm for investing in the country. Recent surveys by some foreign chambers of commerce have shown that the vast majority of companies investing in China have no plans to reduce their investments, with a high proportion continuing to regard China as their top or one of their top three global investment destinations.

The government work report outlines several key measures to attract foreign investment. First, it emphasizes the steady expansion of institutional openness. Second, it underscores the ongoing efforts to relax market access for foreign investment. Over the years, the negative list for foreign investment access have consistently shortened. In 2013, the first version of the negative list contained 190 items, but the current nationwide version has been reduced to 31, and the version for free trade zones to 27. This year's report proposes abolishing all restrictions on foreign investment in the manufacturing sector. Market access restrictions will also be reduced in services sectors such as telecommunications and healthcare. Additionally, it stresses the need to regularly remove policy measures that undermine fair competition between domestic and foreign enterprises. Third, it emphasizes strengthening services for foreign investors, including the need to make China a favored investment destination and facilitate easier work, study and travel for foreign nationals in China. Thank you.

ThePaper.cn:

We have observed that some private enterprises currently lack confidence and are pessimistic about their development prospects, resulting in a reluctance to invest and expand production, further affecting private investment and employment. What effective measures will be taken this year to boost the expectations and confidence of private enterprises?

Huang Shouhong:

The private sector is a crucial component of the Chinese economy and a key driver of modernization. The CPC Central Committee and the State Council have attached great importance to the development of private enterprises and the private economy. In recent years, General Secretary Xi Jinping has delivered a series of important speeches, and the CPC Central Committee and the State Council issued documents last year to promote the development and growth of private enterprises. The government work report outlines the following measures in this regard:

First, it requires the implementation and refinement of various supportive policies. Over the years, numerous supportive policies have been introduced to promote the development of private enterprises. The overall implementation of these policies has been positive, but there are areas where full implementation has been lacking. It is imperative to continue refining and meticulously implementing these policies. Additionally, new measures addressing the concerns of enterprises should be introduced. For instance, regarding the issue of overdue payments frequently raised by private enterprises, the report calls for the improvement of the long-term mechanism to prevent and resolve overdue payments owed to private enterprises. Furthermore, to address the challenges of difficult and expensive financing faced by private enterprises, the report suggests increasing the proportion of loans to private enterprises and expanding the scale of bond financing, among other measures.

Second, it calls for efforts to optimize the business environment to address enterprises' concerns. The report highlights the importance of tackling the prominent issues faced by private enterprises concerning market access, access to factors of production, impartial law enforcement, and the protection of rights and interests. These issues are frequently reported by private enterprises. Additionally, measures will be taken to deepen the construction of a unified national market while ensuring a market order based on fair competition.

Third, it proposes support for the innovative development of the private economy. Since the beginning of reform and opening up, many private enterprises have made bold explorations and exhibited a keen entrepreneurial spirit, significantly contributing to economic growth, job creation, and the enhancement of people's livelihoods. This entrepreneurial spirit is a valuable asset. The report underscores the importance of encouraging entrepreneurship and supporting entrepreneurs to focus on innovative development and lead their companies to greater success. On the one hand, the government should cultivate a sound environment and provide platforms for private enterprises. On the other hand, private entrepreneurs should proactively pursue opportunities and overcome challenges. Reflecting on the past 40 years of reform and opening up, private enterprises have thrived despite various obstacles. While they currently face numerous difficulties and problems, it's helpful to consider the progress made compared to 40 years ago, 10 years ago, or even five years ago. Conditions for the development of private enterprises and various other factors have greatly improved. China's market mechanisms, legal environment and credit system have all seen significant enhancements. In the past, with the support of the Party and the government, private enterprises have continuously flourished. In today's landscape, by responding proactively to the requirements of the CPC Central Committee, private enterprises, which have achieved remarkable success in the past, are poised to achieve great new accomplishments in the future.

That's all from me for this question. Thank you.

Yicai:

The Central Economic Work Conference, held at the end of last year, pointed out that insufficient effective demand is a difficulty and challenge that needs to be addressed currently. This year's government work report makes arrangements for expanding domestic demand. What efforts will be made in this regard? Thank you.

Huang Shouhong:

Domestic demand has always been the main driving force of China's economic development. In recent years, it has accounted for more than 90% of economic growth. Following a smooth transition in epidemic response last year, China has seen a fast recovery in domestic demand. However, difficulties and issues also emerged during the expansion of domestic demand. The government work report has made arrangements in this regard, mainly focusing on three aspects:

First, we will promote steady growth in consumer spending. This year, we will take a full range of steps to unlock potential demand by increasing incomes, improving supply, and reducing restrictions. Potential demand is evident. Since last year, activities such as Village Super League football games, village Spring Festival galas, ice and snow tourism, and crossover collaborations have gained immense popularity. Street shopping in cities and leisurely tours in rural areas have become new trends, while domestic brands are gaining traction with consumers. These trends highlight the significant potential of new consumption patterns, which we plan to expand further this year. At the same time, we will boost spending on automobiles, home appliances, and other big-ticket items. That will include both newly added items as well as equipment renewal and trade-in of consumer goods. Additionally, we will propel the expansion and improvement of service consumption. In recent years, with economic development and the improvement of people's living standards, the demand for services has surged and service consumption has enjoyed sustained growth. This year, new measures will be taken to respond to this trend.

Second, we will work to increase effective investment. On the one hand, we will fully leverage the stimulating effect of government investment. In terms of volume, both central budgetary investment and local special bonds will increase compared to last year. In terms of investment areas, these investments primarily target areas where we need to address deficiencies and boost momentum, such as scientific and technological innovation, energy conservation, emission reduction, and ensuring people's well-being. On the other hand, we will stabilize and expand private investment. Relevant departments formulated policies to promote private investment last year, and this year, they will further implement and enhance some new measures proposed in the government work report.

Third, we will promote the integration of investment and consumption. This year, more emphasis will be placed on coordinating the expansion of domestic demand and deepening supply-side structural reform to create a virtuous cycle of mutual promotion between consumption and investment. For instance, not long ago, the Central Commission for Financial and Economic Affairs and a State Council executive meeting assigned an important task: to promote large-scale equipment renewal and trade-in of consumer goods. This initiative is significant for boosting both consumption and investment. The combination of these two aspects is one way of coordinating investment and consumption and tapping into the potential of domestic demand. Additionally, we will actively advance people-centered new urbanization, which offers comprehensive benefits. From the perspective of domestic demand, it serves as a large platform integrating investment and consumption. Last year, China's proportion of permanent urban residents in the total population was 66.2%, which still lags behind the rates of over 80% seen in developed countries. The urbanization rate of registered residents was even lower. From this perspective, there is still considerable room for development and improvement in China's new urbanization. An increase in urbanization will generate significant demand for both consumption and investment. According to relevant estimates, the consumption demand brought by a person moving to the city is significantly higher than that of a rural resident. This year, as a matter of priority, we will move faster to grant permanent urban residency to eligible people who have moved to cities from rural areas , as outlined in the government work report.

Thank you.

Red Star News:

The CPC Central Committee has reiterated multiple times the need to enhance the consistency of macro policy orientation to build a stable, transparent, and predictable policy environment. Thus, what aspects will the government pay attention to when formulating policies? Thank you.

Huang Shouhong:

Consolidating and building momentum for economic recovery and growth require us to enhance the consistency of macro policy orientation. In this regard, related arrangements have already been made at last year's Central Economic Work Conference and in this year's government work report.

First, we must enhance understanding, which means achieving unity in thinking with the CPC Central Committee. All localities and government departments have their own duties. When fulfilling these duties, they have to bear in mind the overall situation of the cause of the Party and the country. This year, our goal is to fulfill the main targets and tasks and promote high-quality development. Therefore, all localities and government departments have a responsibility to adhere to and serve this goal. They should actively consider what to do, and adopt more policies conducive to maintaining stable expectations, economic growth, and employment. They must exercise caution in formulating measures that could be contractionary or inhibitive in nature, and ensure the proper timing, intensity, and effect in introducing policies. Unity in thinking and enhanced understanding will lay a solid foundation for the consistency of macro policy orientation.

Second, we must set up and improve effective coordination mechanisms, thereby fully leveraging the roles of assessment, gatekeeping, and coordination. On the one hand, government departments under the State Council will conduct comprehensive and holistic assessments before introducing new policies to ensure they are conducive to steady growth and high-quality development. On the other hand, based on this, the National Development and Reform Commission will carry out further assessment using its policy and document evaluation mechanism. Policies and documents will only be released and implemented if they are proven, through the evaluation mechanism, to have no negative impact on stabilizing the macroeconomy and market expectations. Since many non-economic policies might directly or indirectly affect social expectations and economic operation, they will be included in the evaluation of the consistency of macro policy orientation according to the Central Economic Work Conference, in a bid to enhance policy coordination.

Third, in policymaking, all localities and government departments should heed and draw on the propositions and views of all concerned parties. They should pay attention to the views of business entities and respond to their concerns when formulating policies related to enterprises. Last year, relevant authorities established a regular communication mechanism between the government and enterprises, which has been well-received by enterprises. This mechanism will continue to be upheld and improved this year. Additionally, we should communicate policies to the public in a targeted manner to avoid misinterpretation and misjudgment by business entities. By doing so, we will effectively boost people's confidence in development and improve public expectations.

Thank you.

Chen Wenjun:

The press briefing has lasted nearly 100 minutes. We now have time for one last question.

CRNTT:

A good policy hinges on its implementation. The government work report this year proposed a number of policies and measures. How can we ensure that they are fully implemented? What does the government plan to do this year to transform its functions and improve its performance? Thank you.

Huang Shouhong:

Successful implementation is central to a good policy. No matter how good a policy is, it is meaningless if it is not implemented. This is like a flower reflected in a mirror or a moon reflected in water. Following the requirements of General Secretary Xi Jinping on policy implementation, which are to take prompt, pragmatic, resolute and effective steps to fully deliver on all work initiatives, the State Council has established and improved a mechanism to ensure the full implementation of this year's policies. This mechanism requires joint efforts from all levels to address challenges at the initial, intermediate and final stages of policy implementation.

First, we should see that all those involved assume their full responsibilities. Efforts to this end must start with the departments under the State Council. The government work report will have legal validity once it is deliberated and approved by the National People's Congress. Then, the State Council will break down and disseminate all policy requirements in the report to the related departments and set deadlines for formulating detailed and effective measures, as well as supporting policies. Arrangements have already been made in this regard, and related departments have conducted studies into the implementation of the policies and measures set out in the report concurrently with its drafting. As a result, we will see some specific policies and measures being released after the "two sessions." Localities should align with the guiding principles of the CPC Central Committee, the arrangements in the government work report, and their local conditions, and make proactive plans and fully utilize drivers and levers in their work, which are also necessary for policy implementation.

Second, we should enhance coordination among all involved parties. All localities and government departments should adopt a holistic approach to the government's operations. From the perspective of the public, enterprises, and external stakeholders, the government is a single entity, regardless of the region or department. The government will be blamed if any department or locality fails in policy implementation. That is why adopting a holistic view is crucial. We should promote efficient coordination between central government departments and local governments, as well as between and within different departments, and establish corresponding rules. We should adopt list management and closed-loop management for implementing major policies to address problems wherever they arise throughout the entire process, from policy design and implementation to feedback.

Third, we should strengthen supervision and inspections of policy implementation. Since last year, the new term of the State Council has improved its supervision and inspection mechanisms and made many specific arrangements in this regard. Meanwhile, the government work report emphasizes the need to strengthen follow-up evaluations of policy implementation and make timely adjustments and improvements to address various problems such as inadequate and superficial implementation.

Fourth, all involved parties, including the news media, the public, and enterprises, should play supervisory roles in policy implementation. The public and enterprises are most aware of which policies have not been implemented. Their joint participation in supervision will create synergy to ensure the full implementation of policies. This will ensure that the final outcomes of our work align with the Party Central Committee's decisions and intentions, meet the people's expectations, and ensure that the objectives and tasks for this year's economic and social development are accomplished.

Regarding your question on transforming functions and improving performance, the report emphasized the need to "improve government performance across the board." This includes accelerating the building of a digital government and promoting one-stop government services to enhance our service levels. We will firmly tackle pointless formalities and bureaucratism and improve oversight, inspection and evaluation. I will say no more due to time limits.

In short, the CPC Central Committee and the State Council attach great attention to the issue of implementation. They have already taken measures and will consistently adopt measures to ensure that the content of the government work report and promises made by the government are effectively fulfilled, living up to the great hopes and expectations of people across the country.

That's all from me. Thank you.

Chen Wenjun:

Thank you, Mr. Huang, and thank you to all our friends from the media. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Li Huiru, Huang Shan, Xu Kailin, Zhou Jing, Zhang Jiaqi, He Shan, Gong Yingchun, Wang Qian, Liu Jianing, Qin Qi, Yuan Fang, Mi Xingang, Lin Liyao, Wang Wei, Li Xiao, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Han Wenxiu, executive deputy director of the Office of the Central Financial and Economic Affairs Commission and director of the Office of the Central Rural Work Leading Group

Mr. Zhu Weidong, deputy director of the Office of the Central Financial and Economic Affairs Commission and deputy director of the Office of the Central Rural Work Leading Group

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson for the SCIO

Date:

Feb. 4, 2024

Chen Wenjun:

Ladies and gentlemen, good afternoon. China unveiled its "No. 1 central document" for 2024 yesterday, outlining deployments for studying and applying the Green Rural Revival Program's experience to effectively advance rural revitalization across the board. To offer you a precise and thorough understanding of this important document, we invited Mr. Han Wenxiu, executive deputy director of the Office of the Central Financial and Economic Affairs Commission and director of the Office of the Central Rural Work Leading Group, and Mr. Zhu Weidong, deputy director of the Office of the Central Financial and Economic Affairs Commission and deputy director of the Office of the Central Rural Work Leading Group, to introduce and interpret this document as well as to take your questions.

Now, I'll give the floor to Mr. Han for his briefing. 

Han Wenxiu:

Ladies and gentlemen, greetings to you all. Under the strong leadership of the Communist Party of China (CPC) Central Committee, with Comrade Xi Jinping at its core, our work related to agriculture, rural areas and rural residents yielded notable results last year with agricultural output increasing, incomes for rural residents rising and rural areas' development flouring. Today marks Lichun, or the beginning of spring, the first of the 24 solar terms in the traditional Chinese lunar calendar. As the saying goes, with the arrival of Lichun, all living things come to life, signaling the start of a busy year for farming. Yesterday, the 2024 "No. 1 central document" on studying and applying the Green Rural Revival Program's experience to effectively advance rural revitalization across the board was released to the public. This signifies the 12th "No. 1 central document" that gives guidance for agricultural work, rural areas and rural residents successively being issued by the central government since the 18th CPC National Congress. It fully demonstrates such work's strategic significance as a top priority on the Party's work agenda, delivering a substantial "gift package" of policies to the rural residents for the new year. 

General Secretary Xi Jinping places great importance on agriculture, rural areas and rural residents, always caring for the rural population. At the Central Economic Work Conference held at the end of last year, he emphasized making sustained efforts to deliver in rural-focused work and made vital instructions on many occasions. This year's "No. 1 central document" presents a distinct theme and coherent structure, aiming to thoroughly implement the guiding principles of General Secretary Xi Jinping's important speeches and instructions as well as adhering to and strengthening the Party's overall leadership on work regarding agriculture, rural areas and rural residents. Anchoring the goal of building a strong agricultural sector, focusing on advancing rural revitalization across the board and drawing on the experience of the Green Rural Revival Program, the document systematically lays out procedures for current and future work regarding agriculture, rural areas and rural residents, and specifies priorities and approaches for rural revitalization. The overall framework of the document can be summarized as "ensuring two aspects, improving three sectors and enhancing two points."

"Ensuring two aspects" refers to ensuring national food security and no large-scale return to poverty. Ensuring national food security prioritizes implementing the food crop production strategy based on farmland management and technological application, maintaining stable farmland area while increasing per unit crop yield and guaranteeing that the grain output remains above 650 million metric tons. Ensuring no large-scale return to poverty prioritizes monitoring and applying assistance mechanisms to prevent people from slipping back into poverty, reinforcing industrial and employment support and striving to help areas and people that have just shaken off poverty build their own momentum for growth.

"Improving three sectors" means the cultivation of rural industrial development, rural construction and rural governance. Improving rural industrial development prioritizes spurring agricultural development by bolstering industries, raising quality standards and promoting green development, accelerating efforts to build a modern rural industrial system and transforming agriculture into a modernized large-scale industry. The key to improve rural construction lies in consistently upgrading rural infrastructure, living environments and public services based on local conditions and the needs of rural residents. Improving rural governance focuses on bettering the rural governance model based on self-governance, rule of law and rule of virtue, under the leadership of the Party, promoting cultural and ethical progress as well as ensuring social stability and harmony within rural areas.

The "two strengthenings" mean strengthening technologies and reforms as dual driving forces and strengthening measures for increasing farmers' income. The key to the former is to coordinate and promote sci-tech innovation and institutional innovation, further boosting rural revitalization with more vitality. The key to the latter is to implement actions that increase farmers' income and offer support to ensure continued income growth, allowing farmers to gain wealth and continuously improve their lives.

This year's "No. 1 central document" emphasizes the approach of pursuing progress while maintaining stability, promoting stability through progress, and establishing the new before demolishing the old. It also maintains that we should be goal-oriented and problem-oriented, focus on major tasks and overall deployments simultaneously, and balance work arrangements for the whole year and for different periods. Our work should be targeted and effective, driving innovation in policies and systems to tackle challenges and bottlenecks in rural revitalization, as well as addressing prominent issues of concern to farmers. The document contains several key points, proposing concrete policies and measures to improve agricultural insurance, refine the benefits compensation mechanism for main producing areas, enhance high-standard farmland development, and facilitate the transition of farmers to urban residents. The aim is to achieve solid results through effective measures and firm efforts, promoting comprehensive rural revitalization to attain new accomplishments and bring more tangible benefits to the farming population.

That's all from me for now. Next, my colleague Mr. Zhu and I will take your questions.

Chen Wenjun:

Thank you, Mr. Han. The floor is now open to questions. Please identify the news agency you work for before asking your question.

CCTV:

This year's "No. 1 central document" focuses on learning from the experience of the Green Rural Revival Program to advance comprehensive rural revitalization. However, situations differ in various localities. So, what should different regions learn from the program? And how should they go about learning it? Thank you.

Han Wenxiu:

The Green Rural Revival Program was a major policy decision that was personally planned and promoted by General Secretary Xi Jinping during his tenure in Zhejiang. It started with improving the rural environment and addressing issues of insanitation, disorder, and dilapidation. Over the past 20-plus years, the program has expanded its scope to cover all aspects of rural revitalization and has become a systematic effort. It has not only profoundly transformed the overall appearance of rural Zhejiang but has also become a successful example of promoting comprehensive rural revitalization through its pioneering efforts.

What should we learn from the program experience? I believe the key is to understand and apply the philosophies and methodologies used in the process. Zhejiang has gone through different stages to implement the program, with cities and counties differing in their foundations and conditions. However, the philosophies and methodologies have remained consistent throughout. These widely applied philosophies and methodologies include committing to the goals, making solid efforts, and perseverance; adopting a people-centric approach by setting objectives based on farmers' needs and aspirations; maintaining a holistic mindset by coordinating urban and rural development; adopting a region-specific, category-based method to foster and boost rural industries to enrich farmers; improving Party-building efforts as the guiding force while strengthening primary-level structures; and continuously enhancing and improving rural governance. These development philosophies, methodologies, and mechanisms for carrying forward our work reflect our values and derive effective measures. They are the essence of the program and are worth learning from.

How do we learn from the program experience? The key is to start from reality and make breakthroughs based on actual conditions. China's vast countryside results in significant variation. Natural conditions, customs and traditions, development levels, and foundations for carrying out work all differ from one place to another. Therefore, while learning from and using the experience of the program, we should grasp its essence and adapt it flexibly to local realities. It is important to closely align with the actual situation and, by addressing prominent issues of great concern to farmers, determine the focus and clarify the steps to proceed with the work. We should innovate based on local conditions, and progress step by step, and pool strengths to accomplish concrete results that ordinary people can feel and see. As we continuously achieve phased results in rural revitalization, the sense of gain, happiness, and security among rural residents will continue to increase. Thank you.

People's Daily:

The "No.1 central document" emphasized "two ensures," with the first being to ensure national food security. Could you please outline the practical measures that will be taken to stabilize food production and ensure food security at a higher level? Thank you.

Zhu Weidong:

Food security is of utmost importance to any country. In recent years, facing challenges such as a severe global food security situation and frequent domestic natural disasters, we have prioritized feeding our population of 1.4 billion as the top task in our work related to agriculture, rural areas and farmers. We have made every effort to boost production and secure good harvests. In 2023, China's total grain output reached a historic high of 695.41 million metric tons, up 8.88 million metric tons from the previous year. This ensures we have a sufficient food supply and full reserves, providing strong support for sustained economic recovery.

However, we should be aware that structural problems in the food supply remain prominent, and the tight balance between grain supply and demand has not fundamentally shifted. Therefore, we must redouble our efforts to ensure national food security at all times. This year's "No. 1 central document" coordinated work on grain production, circulation, and consumption, introducing a series of policies. Centering on ensuring food production and supply, the document outlined major measures such as stabilizing grain acreage and increasing per-unit crop yield, so as to maintain grain output above 650 million metric tons.

First, we will keep grain acreage stable. The key is to motivate farmers to grow grain and local governments to prioritize grain production. To encourage farmers, we will strengthen policies and measures regarding prices, subsidies, and insurance. In terms of prices, we will appropriately increase the minimum purchase price for wheat and set a reasonable minimum purchase price for rice to protect farmers from being harmed by low grain prices. In terms of subsidies, we will continue to provide subsidies for purchasing agricultural supplies with the aim of protecting the soil fertility of cultivated land. We will offer subsidies for corn and soybean producers, as well as for growing paddies. We will improve subsidies for purchasing and using agricultural machinery, optimize the mechanism for ensuring the supply and stabilizing the price of agricultural materials, and enhance the effectiveness of subsidies. In terms of insurance, we will expand the coverage of full-cost insurance and planting income insurance policies. We will work to ensure that the insurance policies are implemented across the country for the three staple grains — rice, corn and wheat, and cover more areas for beans in an orderly manner. Implementing these policy measures will ensure that farmers can profit from growing grain. To motivate local governments, we will emphasize both responsibility and support. We will ensure that both Party committees and governments assume responsibility for food security and step up efforts to support major grain-producing counties. Efforts will also be made to develop an inter-provincial horizontal compensation mechanism for the major grain producing and marketing regions. These efforts will motivate local governments to focus on grain production without suffering losses. 

Second, we will focus on increasing per-unit crop yield. Given the limited arable land and minimal room for expansion, the potential for growth primarily lies in enhancing per-unit crop yield. The document clearly states that the focus for increasing grain output should be on significantly boosting per-unit crop yield on a large scale. This will be achieved by launching a grain yield improvement project and promoting high-quality fields, seeds, machinery, and practices. The focus should be on seeds and cultivated land. In terms of seeds, we will move faster to invigorate the seed industry and achieve breakthroughs in core technologies in key fields, striving for significant progress. We will strengthen agricultural infrastructure for cultivated land, raise the investment standards and quality of high-standard farmland development, and improve water conservancy facilities. Efforts will also be made to enhance the capacity for disaster prevention, reduction, and relief in agriculture. We will implement multiple measures to promote a new round of action to increase grain output by 50 million metric tons.

Third, we will expand food sources. Ultimately, food security is about food sufficiency. Meat, eggs, milk, fruits, vegetables, and fish are all necessities for a high-quality life, and none should be missing from the dining table. Solving the food problem requires an all-encompassing approach to agriculture and food. While protecting the ecological environment, we will utilize all available land resources and establish a diversified food supply system to ensure that people across the country have enough to eat, a varied diet, and a healthy diet.

Fourth, we will enhance grain conservation and reduce food losses and waste. In a sense, conserving grain and reducing food loss is equivalent to increasing grain output and supply. Currently, there is significant grain loss at all stages of production, transportation, storage, processing, and consumption, with food waste at the dining table being particularly alarming. The document emphasizes the need to deepen food-saving actions, promote the value of thrift, cultivate healthy eating habits, and resolutely curb food waste, making grain conservation a widespread social practice. Thank you.

The Paper.cn:

Major grain-producing areas serve as an important anchor for ensuring national food security. However, these areas are often stuck in a long-time financial dilemma, which is the negative correlation of grain yields and the fiscal revenue. May I ask, what policies and measures have been adopted to incentivize major grain-producing areas? Thank you.

Han Wenxiu:

Major grain-producing areas play a big part in increasing grain production capacity and ensuring grain supply. China's 13 major grain-producing areas produce more than 80% of the country's total output. Meanwhile, we should also notice the poor economy and government finances of these areas, which is a prominent problem. Major grain-producing counties are often weak economically and face fiscal difficulties. This problem, if it remains unsolved, will discourage them from wanting to continue to grow grain and will affect the overall grain production and supply. This year's No. 1 central document has made targeted arrangements for this with a focus on refining the interest compensation mechanism for major grain-producing areas. 

On the one hand, we will step up support to major grain-producing counties. We will focus on further increasing rewards and subsidies to major commercial grain-producing counties that make more contributions to national food security, and cancel the matching requirements for funds used in high-standard cropland development in major grain-producing counties. We will also address the weaknesses of major grain-producing counties in their public services and launch an initiative to improve their relevant capacity. This year, trials will first be launched in four major grain-producing provinces and an autonomous region, including Jilin, Heilongjiang, Anhui, Henan, and Inner Mongolia, and then gradually be promoted in other places.

On the other hand, we will establish an interest compensation mechanism for major grain-producing areas. This year, we will strive to make solid progress in solving the long-time challenge. The No. 1 central document has proposed exploring the establishment of a trans-provincial interest compensation mechanism for grain-producing and grain-selling areas and deepening production-marketing coordination through multi-channels. At present, relevant departments are busy developing specific implementing measures. In overall consideration of factors such as grain production, circulation, and consumption in major grain-producing and grain-selling areas, a basic approach has been put forward that requires major grain-selling areas to provide a certain level of financial support for major grain-producing areas so as to deliver real gains to them through horizontal interest compensation. Also, the two sides should further expand collaboration in industries, talent, and technological services and take more solid measures to ensure major grain-producing areas won't suffer losses from growing grains. 

In terms of industrial development, we will expand and extend the industrial chain. Major grain-producing areas are endowed with abundant grain resources, yet their small-scale grain processing industry has a poor conversion rate of on-site processing. The No. 1 central document has proposed to promote the layout of agro-processing industry in major grain-producing areas, including supporting the construction of agro-processing industrial parks in major production areas of grains and other important agricultural products, supporting the development of the whole-industrial-chain processing of soybeans and other agricultural products in the northeastern region, creating food and feed industry clusters, and promoting value-added transformation on-site and in the vicinity so as to speed up our efforts to bring prosperity to major grain-producing counties and their residents.  

That concludes my brief answer. Thank you.

Beijing Youth Daily:

Thriving industries are the prerequisite for rural revitalization. An important experience drawn from the Green Rural Revival Program is to take industries as our foundation. May I ask what measures you will take to develop local rural industries so that they have a competitive edge? Thank you.

Zhu Weidong:

Industries serve as the foundation for rural revitalization. During these years, all localities have laid a good foundation for developing rural industries, while weak business entities, short industrial chains, inadequate capacity to drive development, and homogeneous competition remain prominent problems. This year's No. 1 central document has stressed that we should adhere to spurring agricultural development by invigorating industries, raising quality standards, and promoting green development. We should also accelerate the construction of a modern rural industrial system that coordinates the planting of grain, feed, and cash crops; gives equal consideration to agriculture, forestry, animal husbandry, and fishery; improves the interconnection of production, processing, and marketing; and promotes the integration of agriculture, culture, and tourism. By doing so, we will turn agriculture into a large modern industry.

First, we should prioritize local specialties. Different regions in China, although differing greatly from each other, are blessed with a rich endowment of natural resources. So there is huge potential for developing local specialties. We should adopt modern operating concepts, standards, and models to fully demonstrate the competitive edge of local specialties, create brands with distinct local characteristics, and accelerate the conversion of resource strengths into product and industrial strengths.

Second, we will focus on industrial integration. During this year's Spring Festival holiday, rural homestays saw high demand in various regions, which emerged as a new highlight of holiday consumption. To meet new consumption needs, we will explore the multiple functions of agriculture, the diverse values of villages, and develop new industries and business formats, including ecological tourism, forest healthcare, and leisure camping. We will promote the integrated development of the primary, secondary, and tertiary industries in rural areas to create new growth points for the rural economy.

Third, we will strengthen the processing of agricultural products. To meet residents' demands for convenience and improved quality in consumption, we will advance the coordinated development of agricultural product production, primary processing, fine processing, and deep processing. We will renovate and improve processing facilities and further expand the breadth and depth of agricultural product processing.

Fourth, we will enhance rural logistics. Currently, some areas face difficulties in selling fine products and achieving good prices due to insufficient logistics distribution capacity, which hinders industrial development. The document makes plans on improving the logistics distribution system in counties and villages, optimizing the cold chain logistics system for agricultural products, and implementing high-quality development projects for rural e-commerce. In particular, rural e-commerce has become a crucial engine driving the development of rural industries. Through e-commerce platforms, local specialty products from remote mountain valleys can reach urban households. We will provide greater support to accelerate development in this area. Thank you.

China Rural Periodicals, Crnews.net:

Income is the most concerning issue for rural residents. What arrangements will be made to promote sustained income growth for farmers? Thank you.

Zhu Weidong:

Increasing rural income is the central task of our work related to agriculture, rural areas and farmers. In recent years, rural income growth has shown sound momentum. In 2023, the per capita disposable income of rural residents reached 21,691 yuan, growing 7.6% year on year in real terms. The income gap between urban and rural residents has narrowed to a ratio of 2.39-to-1. However, there are also difficulties and challenges in maintaining this momentum. This year's document places a strong emphasis on measures to strengthen income growth for farmers, focusing on four key areas.

First, we will tap the potential of industrial operations to increase rural income. Promoting rural household businesses remains a key focus for increasing farmers' income. The document proposes implementing campaigns to facilitate rural income growth and supporting the development of family-operated projects such as specialized planting and breeding, handicraft workshops, and those related to the non-timber forest-based economy. It also calls for optimizing monitoring and early-warning mechanisms for the whole industrial chain, strengthening coordinated regulation across various kinds of products, increasing the effectiveness of consumer assistance actions to support income growth for farmers, and ensuring price stability to promote income growth. Meanwhile, we will intensify policy support for integrating rural and industrial development, enhancing mechanisms that ensure new agricultural business entities and agriculture-related enterprises enjoy supporting polices which also help drive rural income growth. This will better engage farmers in industrial development and allow them to share in the benefits of added value.

Second, we will stabilize the income of rural migrant workers. Wage income has become the primary pillar of farmers' income. The document emphasizes advancing vocational skills training for farmers, optimizing mechanisms for cross-region information sharing and well-organized labor collaboration, supporting senior migrant workers in finding jobs, and actively promoting work-relief programs in major projects as well as agricultural and rural infrastructure construction, thereby advancing rural employment through various channels. To address issues concerning wage arrears owed to rural migrant workers, the document proposes enhancing prevention and control at the source, strengthening risk warning, and improving long-term mechanisms to address the root causes. As this year comes to an end and the Chinese New Year approaches, relevant departments are conducting campaigns to combat back pay, striving to ensure a happy new year for rural migrant workers.

Third, we will expand rural transfer income. Transfer income is an important part of income for general rural households and particularly for the low-income population. We will continue to beef up policy support to strengthen agriculture, benefit farmers, and raise rural living standards, and gradually increase social security levels in rural society. The document emphasizes strengthening supervision over agricultural-related capital and projects and carrying out a severe crackdown on illegal activities such as embezzlement and fund fraud. We will ensure that all subsidies and allowances for farmers are fully allocated and that farmers receive the true benefits.

Fourth, we will give farmers more comprehensive property rights and interests. There is still significant potential for property income growth. The document proposes encouraging the revitalization and utilization of resources and assets, including idle rural residential land, vacant houses, and barren land, through methods such as renting, cooperative development, and equity participation. These measures aim to create conditions to increase farmers' property income through multiple channels. Thank you.

China News Service: 

Ensuring that a large-scale return to poverty does not occur is the bottom-line requirement for promoting comprehensive rural revitalization. Could you please tell us about the current situation in consolidating the results of poverty alleviation? How can we ensure this bottom line and help areas that have been lifted out of poverty move from "receiving aid" to "becoming self-sufficient?"

Han Wenxiu: 

Eliminating absolute poverty is a historic achievement recognized worldwide, attained through the hard work of the entire nation under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core. Preventing a large-scale return to poverty is a critical task in work related to agriculture, rural areas, and rural residents. In recent years, effective mechanisms and measures have been established across various regions, and the achievements in poverty alleviation have been consolidated. By the end of 2023, over 60% of those monitored to prevent a return to poverty had eliminated the risk. Support measures have been implemented for the remaining individuals, effectively preventing a large-scale return to poverty.

For a family or community, poverty alleviation is not a one-time effort. Structural unemployment, illness, disasters, accidents, and other factors can still push people back into poverty. Preventing a large-scale return to poverty is both a major economic and political task that requires continuous effort. We cannot afford to slacken our efforts in either thinking or action. This year's No. 1 central document emphasizes three key areas:

First, we must improve monitoring and support. Monitoring factors and dynamic changes that could lead to a return to poverty must be timely and effective, with immediate support measures to eliminate risks. We must ensure responsibilities are fulfilled, make good use of big data early warning systems, and further enhance the timeliness of monitoring and the precision of support to secure the bottom line of preventing a return to poverty. Additionally, efforts should be accelerated to promote interconnectivity between the poverty prevention monitoring system and the dynamic monitoring information platform for low-income populations, strengthening cross-departmental information integration and sharing to avoid redundant construction and information silos.

Second, we must strengthen industrial and employment support. These are fundamental measures to consolidate and expand the achievements of poverty alleviation. In recent years, a batch of industrial projects have been implemented as part of the poverty alleviation efforts. Strengthening industrial support should focus on improving the quality, efficiency, and sustainability of industries, providing targeted guidance, and addressing shortcomings in technology, infrastructure, and marketing in accordance with the requirements made in this year's No. 1 central document on consolidating, upgrading, revitalizing, and adjusting industries. Additionally, enhancing the performance management of funded projects will ensure that the local population has a stable industrial foundation. Last year, a total of 33.969 million people who have been lifted out of poverty found jobs outside their hometowns, an increase of 1.19 million over the previous year, showing a stable increase. To strengthen employment support, the focus should be on stabilizing the employment scale of the people who have shaken off poverty, advancing initiatives to prevent a return to poverty through employment, and leveraging the roles of labor collaboration between eastern and western regions, employment support workshops, and public welfare jobs. This will ensure that those with the ability to work have stable jobs.

Third, we must enhance self-development capabilities. With less than two years left in the transition period for consolidating and expanding the results of poverty alleviation and effectively linking them with rural revitalization, it is fundamentally necessary to enhance internal motivation and focus more on "self-sufficiency" for the continuous development of areas that have shaken off poverty and the sustained income growth of people who have gotten rid of poverty. The goal is to transition from "receiving aid" to "becoming self-sufficient." The No. 1 central document specifies that for key areas, such as counties receiving focused support for rural revitalization and concentrated resettlement areas for relocation, further preferential support policies in fiscal, finance, land, talent, and paired assistance should be implemented. These policies aim to improve development conditions, enhance development capabilities, and help these areas achieve income growth and prosperity through their own efforts, thereby enhancing their living standards. Thank you.

Tide News under Zhejiang Daily Press Group:

The 20th CPC National Congress proposed building a beautiful and harmonious countryside that is desirable to live and work in. So, what are the current priorities for rural development? And how can we advance this goal? Thank you.

Zhu Weidong:

Rural development is the focal point of solving the imbalance between urban and rural areas. It also has great potential to expand domestic demand and promote high-quality economic development. Rural development has made positive progress in recent years, and rural infrastructure and public services have been greatly improved, but there still are many weak links. The "No. 1 central document" for 2024 emphasizes that rural development should be based on the actual conditions of each locality and the needs of farmers. It should seize opportunities to benefit all and focus on accomplishing specific tasks effectively.

First, we will enhance the guiding role of rural development plans. It is necessary to comply with the principles of rural development and the trend of urbanization, and provide classified guidance for village planning. Plans should be formulated only if necessary; if there is no need, plans can be temporarily set aside. We should not recklessly require villages to formulate plans. The practice in some places of setting unrealistic targets and schedules must be corrected promptly. It is necessary to adhere to "open-door planning" to ensure that the plans align with the actual situation of the village and the wishes of the farmers. This way, rural officials and residents can understand, abide by, and utilize the plans effectively.

Secondly, we must continue to improve the living environment. Different regions have varying levels of economic development and natural geographical conditions. Therefore, we should upgrade rural toilets and sewage and refuse treatment facilities based on local conditions. We should explore a reward and subsidy model where farmers voluntarily renovate their toilets according to standards, and receive subsidies from the government after passing inspection. This clarifies the roles of the government and farmers. We should fully leverage the motivation of farmers. We must continue to fight against pollution in agriculture and rural areas and promote the integrated protection and restoration of the rural ecology, ensuring that rural areas have bluer skies, greener lands, and clearer waters.

Third, we need to address inadequacies in infrastructure. We will list prominent issues reported by farmers and resolve them one by one. In response to safe drinking water issues in some places, the document requires to improve the rural water supply facilities based on local conditions. The increasing number of new energy vehicles (NEVs) in rural areas calls for strengthening the planning and construction of charging and battery-swapping facilities in key villages and towns. We will address the poor seismic resistance of rural houses in some areas. This requires continuing the renovation of dilapidated rural houses and the seismic retrofitting of rural houses to ensure that farmers can live safely and with peace of mind.

Fourth, we will improve public services. We will focus on public services that are inclusive, meet essential needs, and ensure basic living standards for people in difficulty, and address the concerns of farmers. In education, we should strengthen the construction of boarding schools and properly run necessary small-scale rural schools to improve the quality of rural education. In healthcare, we should channel more medical resources towards rural areas, gradually increase the proportion of medical insurance funds used in rural medical and health institutions, and accelerate the inclusion of village clinics into the designated medical insurance institutions, making it more convenient for rural residents to seek medical treatment and obtain medication. In elderly care, we should improve the rural elderly care services and the incentive mechanism for basic pension schemes to incentivize urban and rural residents to pay more to get more, resolving their worries about the future.

Fifth, we must grasp the proper timing, intensity, and effectiveness of rural development. Rural development should prioritize building for the benefit of farmers and focus on sustainability. In some areas, phenomena such as boastfulness, wasting manpower and money, implementing a one-size-fits-all approach, and issuing coercive orders in rural development must be resolutely rectified. We must adhere to the principles of proceeding from reality, prioritizing quality over quantity, and emphasizing progress based on effectiveness. We oppose rash and reckless moves or unthinkingly borrowing money to carry out construction beyond the current development stage. Thank you.

Science and Technology Daily:

We understand that rural governance is a key and challenging aspect of modernizing the national governance system and governance capacity. So, how can we address the current prominent problems in rural governance and improve the level of rural governance?

Han Wenxiu:

China's rural areas are undergoing major changes, including profound shifts in the size and structure of rural population, ways of life and work, way of thinking and cultural concepts, and the traditional rural order. These changes have put forward new requirements for modernizing the rural governance system and governance capacity. The "No. 1 central document" for 2024 focused on improving the level of rural governance and made arrangements in several aspects.

First, strengthening primary-level Party organizations in rural areas. As the saying goes, a train can only run fast because of its locomotive. Primary-level Party organizations serve as the "locomotive" in driving the development of various rural undertakings. The document emphasizes advancing rural revitalization through Party-building and keeping a clear focus on the primary level in strengthening Party organizations. The Party committees at the county level should ensure their role in promoting the development of townships in a bid to boost the development of villages, effectively playing the political and organizational functions of the primary-level Party organizations in rural areas. Currently, Party committees at village and township levels take on many responsibilities and have limited resources and heavy burdens, so it is crucial to address the problem of "a little horse pulling a big cart" in community-level governance. A strict entry system for higher-level departments' involvement in grassroots affairs must be implemented, along with a sound list of grassroots responsibilities and tasks. It is essential to strengthen management responsibilities of towns and townships over representative offices and personnel of county-level departments, increase the allocation of staffing resources to townships, optimize various agriculture-related inspections and assessments, and reduce the burden of superfluities surrounding inspections and assessments. This will allow grassroots Party committees to focus more on connecting with the people and serving the people. 

Second, improving the rural governance system under the Party's leadership. The key is to continue to shift the focus of social governance to the community level, channel resources down to the community level, and combine traditional governance resources with modern governance methods. The document calls for applying and further developing the "Fengqiao model" in the new era and implementing the practices of going into communities to communicate the Party's lines and policies, carry out research and studies, address people's complaints, and conduct fieldwork, improving mechanisms for preventing social tensions and disputes at the source, screening and providing early warnings, and settling issues through multiple means. It also calls for promoting effective methods, such as the accumulated points system and the list system, to resolve problems at the community level and nip them in the bud. Some areas have been struggling with recurring natural disasters and safety incidents for a long period. The document emphasizes the need to promote the construction of disaster prevention and mitigation projects in rural areas, an information-based emergency management system, and public fire safety facilities, aiming to enhance risk avoidance, self-rescue, and mutual rescue capabilities. Additionally, the document calls for continued efforts to crack down on various illegal activities to make rural areas safer.

Third, enhancing public civility in rural areas. The modernization of agriculture and rural areas should cohere with material and cultural-ethical advancement. We adhere to the combination of dredging and blocking, addressing both symptoms and root causes via a two-pronged approach. On one hand, we must ensure the supply of high-quality cultural and intellectual products, promote a flourishing rural culture, and strengthen the protection, inheritance, and innovative development of fine rural traditional culture. In recent years, activities like "village BA" basketball tournaments, "village super league" football games, and "village spring festival galas" have been very popular. This year, many activities were held across the country during the Spring Festival holidays, empowering farmers to take the lead, and ensuring that mass cultural and sports activities thrive and flourish. On the other hand, priority should be given to addressing undesirable rural customs. In some regions, extravagant weddings and funerals have become a heavy burden on farmers, causing significant distress. The document calls for a comprehensive approach to address the pressing issues of excessive betrothal gifts and lavish weddings and funerals, promoting social reforms so as to provide farmers with more convenient social services. It also calls on empowering the system of villager autonomy and strengthening the incentive and constraint functions of village rules and regulations, aiming to eliminate bad habits and foster new trends in rural areas. Thank you.

Economic Daily:

The migration of rural populations to urban areas remains a dominant trend. Given this, what efforts will be made to ensure coordinated development between new urbanization and rural revitalization and better promote the urbanization of the migrating agricultural population? Thank you.  

Zhu Weidong:

As the journalist pointed out, China is witnessing rapid urbanization, and this process is expected to continue for a long period. In 2022, China's permanent rural population was 491 million. Experts estimate that over 100 million more rural residents will move to urban areas by 2035. We need to foster a welcoming and supportive environment for those moving to urban areas while ensuring a comfortable and satisfying life for those who stay. We will coordinate new urbanization with rural revitalization across the board and ensure integrated design and coordinated implementation in a bid to facilitate the two-way flow of various factors and foster a new development paradigm of integrated development of urban and rural areas. This year's "No. 1 central document" has made specific deployments in this regard.

First, it is about solidly advancing the granting of permanent urban residency to eligible individuals who have moved from rural areas to cities. The emphasis is on implementing a new round of actions to grant permanent urban residency to these individuals, improving the system for providing basic public services in areas of permanent residence, and accelerating the expansion of urban public services to cover all permanent residents. The document stresses the importance of encouraging eligible counties (cities, districts) to include all urban permanent residents in the housing security policy, thereby helping farmers who are able and willing to move to cities better integrate into urban life.

Second, it focuses on protecting the legal rights and interests of farmers who move to and settle in cities. The process of farmers relocating to urban areas is lengthy, and before they have fully settled, we should not hastily cut off their option to return to the countryside. It is essential we safeguard their rights to rural land contractual management, the use of rural land designated for housing, and collective income distribution.

Third, it focuses on accelerating the integrated development of urban and rural areas within counties. Over the years, urbanization in county areas has developed rapidly, with more farmers moving to counties for employment and residence. The document emphasizes enhancing the comprehensive accommodation capacity and governance ability of counties, promoting the functional integration and complementarity of counties, townships, and villages, and optimizing the allocation of resources and factors. The key is to employ a dual approach. On the one hand, we will advance urbanization with counties as key hubs, enhancing these counties as leaders and leveraging their role in driving rural areas. On the other hand, we will adapt to trends in rural development and demographic changes, optimizing the layout of villages, industrial structures, and the allocation of public services. We will work to ensure that basic livelihood needs are met while avoiding the wastage that occurs when villages are newly built and then abandoned as people move away. Thank you.

Chen Wenjun:

The last two questions.

Southern Metropolis Daily:

To address the issues facing agricultural and rural development, we ultimately must rely on reform. Could you please tell us what arrangements this year's "No. 1 central document" has laid out for rural reform? What new reform measures have been introduced? Thank you.

Zhu Weidong:

To promote rural revitalization, we must effectively utilize the powerful tool of deepening reform. On the new journey of the new era, the tasks related to agriculture, rural areas, and rural residents are more challenging, and the issues are more complex. We must further deepen rural reform, break institutional obstacles, and liberate and develop productive forces. This year's "No. 1 central document" has outlined key tasks for deepening rural reform.

First, we need to consolidate and improve the basic rural operational system. The policy direction to extend rural land contracts by another 30 years upon the expiration of the second-round contracts has been clarified. This year, we will conduct province-wide trials, exploring specific implementation methods, thereby laying a solid foundation for nationwide expansion. The document also proposes building a modern agricultural operation system based on small agricultural households, with a focus on new types of agribusinesses, and supported by commercial agricultural services. We aim to rapidly develop a high-quality production and operation force suitable for modern agricultural development, with a specific focus on addressing the issue of "who will farm the land."

Second, we need to deepen the reform of the collective property rights system. The preliminary phase of this reform, which included asset inventory and share quantification, has been completed. As we focus on completing the second half of this reform, we will encourage various localities to explore diversified approaches, such as property rentals, intermediary services, and asset-based shareholding, based on local conditions and under strict risk control. This aims to promote the healthy development of new rural collective economies.

Third, we must uphold fundamental principles and break new ground. Rural reform has entered uncharted territory, affecting the vital interests of hundreds of millions of farmers. We must stick to the bottom line of rural reform, encourage local exploration and system innovation, enhance the integration and efficiency of reform measures, and stimulate the vitality and dynamism needed for rural revitalization. Thank you.

China Daily:

Agriculture is fundamentally based on land. Could you please tell us what new requirements this year's "No. 1 central document" has put forward regarding the protection and development of farmland? Thank you.

Han Wenxiu:

Farmland is the backbone of food production, and there can be no food security without secure farmland. Over the past two years, various regions have implemented stringent measures to enforce farmland protection systems, yielding positive results. According to statistics, China's total farmland area has witnessed a net increase for three consecutive years from 2021 to 2023. This year's "No. 1 central document" emphasizes improving the comprehensive system for protecting farmland quantity, quality, and ecology. Efforts will be focused on three main areas to ensure the amount of farmland is guaranteed and its quality is improved.

First, the total amount of farmland must be strictly maintained. The red line of 1.8 billion mu (120 million hectares) of farmland must not be crossed. The latest round of national land space planning has specified the protection tasks for 1.865 billion mu of farmland and 1.546 billion mu of permanent basic farmland, with responsibilities allocated to each region. The document sets clear requirements for implementing these tasks. For the lawful occupation of farmland, the focus is on reforming and improving the balance system of occupation and compensation, adhering to the principle of "compensation determines occupation," strengthening the quality acceptance system for compensated farmland and preventing situations where more land is occupied than compensated or higher-quality land is replaced with lower-quality land. For illegal acts such as unauthorized occupation or destruction of farmland, including the unauthorized construction of "greenhouses," destruction of black soil, and illegal soil extraction, a zero-tolerance policy must be maintained, with resolute rectification and severe punishments enforced, investigating and addressing every case that is discovered. Regarding the issue of converting farmland to non-grain uses, it requires a careful balancing act. It is crucial to consider the relationship between grain production, the security of important agricultural products, and farmers' income, and to clearly define the scope of rectification, arrange restoration schedules reasonably, and carry out the rectification and restoration of illegally occupied farmland in a classified and steady manner. The implementation of central policies must be strictly followed, with attention paid to the methods used for implementation, avoiding oversimplification or one-size-fits-all approaches.

Second, farmland quality must be improved. The "No. 1 central document" emphasizes the construction of high-standard farmland to enhance farmland quality. It prioritizes transforming farmland in the northeast black soil region, plains regions, and areas with water irrigation conditions into high-standard farmland, ensuring that limited funds are used effectively. In response to widespread concerns about low investment standards for high-standard farmland construction, a firm commitment has been made to raise central and provincial investment subsidies this year. Additionally, quality supervision will be strengthened to ensure that every plot of land transformed into high-standard farmland meets the rigorous standards set forth. Rural collective economic organizations, new agricultural business entities, and farmers are encouraged to participate directly in constructing and maintaining high-standard farmland.

Third, we must tap into the potential of reserved farmland resources. The focus is on two types of land: abandoned land and saline-alkali land. For abandoned land, regions are encouraged to utilize it according to local conditions, planting grain where suitable or engaging in other economic activities where appropriate. In cases where genuine challenges prevent cultivation, rural collective economic organizations are supported in effectively using it through various means such as land transfer, trusteeship, and unified management. Saline-alkali land, which is abundant in our country, holds immense development potential with technological advancements. The approach combines "suitable land for crops" and "suitable crops for land," matching seeds with saline-alkali land to carry out zonal and classified management and improvement of saline-alkali farmland, and exploring effective ways to comprehensively utilize saline-alkali land. Thank you.

Chen Wenjun:

Thank you, Mr. Han Wenxiu and Mr. Zhu Weidong, and thank you to all the journalists. This concludes today's press conference. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Qian, Liu Sitong, Ma Yujia, Cui Can, Zhang Junmian, Li Xiao, Zhou Jing, Liu Jianing, Wang Wei, Xiang Bin, Yan Bin, Huang Shan, Gong Yingchun, Yang Xi, Li Huiru, Zhang Rui, Yuan Fang, Wang Yiming, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Dongwei, vice minister of finance

Mr. Wang Jianfan, director general of the Budget Department of the Ministry of Finance (MOF)

Mr. Li Xianzhong, director general of the Department of Treasury of the MOF

Mr. Hou Junming, director general of the Department of Asset Management of the MOF

Chairperson:

Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Feb. 1, 2024

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Wang Dongwei, vice minister of finance, to brief you on fiscal revenue and expenditure in 2023, and to take your questions. Also present today are Mr. Wang Jianfan, director general of the Budget Department of the Ministry of Finance (MOF); Mr. Li Xianzhong, director general of the Department of Treasury of the MOF; and Mr. Hou Junming, director general of the Department of Asset Management of the MOF.

Now, let's give the floor to Mr. Wang for his introduction.

Wang Dongwei:

Ladies and gentlemen, good morning. I'd like to express my gratitude for your long-term interest and support in the fiscal work. Today, I'm very glad to be here to brief you on fiscal revenue and expenditure in 2023.

The year 2023 marked the first year of the full implementation of the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and a year of economic recovery and growth following three years of COVID-19 pandemic prevention and control. The MOF has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and thoroughly implemented the guiding principles of the 20th CPC National Congress, the second plenary session of the 20th CPC Central Committee, and the Central Economic Work Conference. In line with the decisions and deployments of the CPC Central Committee and the State Council, the MOF has enhanced macro fiscal regulation, steadily executed positive fiscal policy, and promoted the recovery and high-quality development of the economy. In 2023, the fiscal and budgetary work had five features.

First, fiscal revenue maintained a rebound trend. Thanks to such factors as economic recovery and large-scale value-added tax (VAT) credit refunds lowering the base, fiscal revenue rebounded in 2023. Revenue in the national general public budget exceeded 21 trillion yuan, up by 6.4%. Specifically, the fiscal revenue in eastern, central, western and northeastern China increased by 6.7%, 6.9%, 10.7%, and 12%, respectively. The fiscal revenue of all 31 provinces in China registered positive growth. 

Second, fiscal expenditures continued to grow. At the beginning of 2023, the deficit-to-GDP ratio was projected to be 3%. To support post-disaster recovery and reconstruction and improve the disaster prevention, mitigation and relief capacities, a further 1 trillion yuan of government bonds were issued in the fourth quarter, all of which were allocated to local governments through transfer payments. Expenditures in the national general public budget reached 27.46 trillion yuan in 2023, up by 5.4%. Key areas were guaranteed effectively, with expenditures on social security and employment increasing by 8.9%, education by 4.5%, technology by 7.9%, agriculture, forestry and water by 6.5%, and urban and rural community development by 5.7%. 

Third, tax and fee reduction policies continued to be improved and optimized. At the beginning of 2023, some tax and fee policies were extended and optimized. In the second half of last year, a number of expiring tax and fee policies were extended and refined based on changes to the economic situation, further reducing the tax and fee burdens on business entities and providing targeted support to the high-quality development of the real economy, including the manufacturing industry. In 2023, newly implemented tax and fee reductions, tax refunds and postponements for fee payments nationwide exceeded 2.2 trillion yuan. 

Fourth, special-purpose bonds policy exerted higher effectiveness. In 2023, 3.8 trillion yuan of local government special-purpose bonds were allocated, prioritizing support for mature and ongoing projects. The focus remained on key areas, avoiding a scattered approach and expanding the investment scope of special-purpose bonds into 11 sectors. The range of utilization of special-purpose bonds as project capital was also broadened to cover 15 aspects. At the same time, efforts were intensified in the issuance and utilization of special-purpose bonds, effectively driving the construction of key projects with both immediate and long-term benefits in areas such as transportation, water resources and energy.

Fifth, the bottom line for risk prevention was further consolidated. For one thing, efforts were made to formulate a package of plans to address local government debts. Solid progress was made in defusing hidden debt risks of local governments as well as addressing existing risks and curbing new ones. For another, more transfer payments were made to local governments, with such payments in 2023 reaching 10.29 trillion yuan. The policy for rewards and subsidies to ensure basic funding for county-level governments was improved, channeling more funds toward regions with relatively weak financial resources and greater burden on ensuring basic living, salary payments and normal government functioning. Simultaneously, we guided provincial-level governments to channel more financial resources toward lower levels of government, with the aim of ensuring basic living, salary payments and normal government functioning at the primary level.

Since the beginning of this year, the basic trend of a solid rebound, improvements, and long-term growth in economic performance has not changed. Macroeconomic policies have continued to take effect, and steady progress has been made in pursuing high-quality development, laying a solid foundation for revenue growth. Fiscal revenue will continue to rebound. In terms of government expenditure, we will maintain its necessary intensity and a certain scale of transfer payments to local governments. The specific budget for revenue and expenditure in 2024 will be refined and perfected in accordance with the decisions and deployment of the CPC Central Committee and the State Council, and we will submit it to the National People's Congress for deliberation and ratification as per procedure.

Next, the MOF will continue to adhere to the principles of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will coordinate the strategy of expanding domestic demand and deepening supply-side structural reform, new urbanization and all-round rural revitalization, and high-quality development and high-level safety. We will intensify fiscal macro-regulation and effectively implement a proactive fiscal policy, consolidating and building on the momentum of recovery in economic performance.

That's all for my introduction on fiscal revenue and expenditure in 2023. My colleagues and I are ready to take questions. Thank you!

Chen Wenjun:

Thank you, Mr. Wang. Now, the floor is open for questions. Please identify the news agency you represent before asking questions.

Reuters:

According to the Central Economic Work Conference, China will implement its 2024 fiscal policy by appropriately strengthening it to improve quality and effectiveness. I would like to ask, how does the MOF assess the trend of fiscal revenue and expenditure this year? How can fiscal policy effectively support the economic recovery? Thanks.

Wang Dongwei:

Thank you for your questions. As you mentioned, the Central Economic Work Conference set a clear goal for strengthening counter-cyclical and cross-cyclical adjustment of macro policies and implementing a proactive fiscal policy by appropriately strengthening it to improve its effectiveness.

Appropriately strengthening the proactive fiscal policy involves four aspects. First, China will maintain an appropriate level of fiscal spending, sending a positive signal. Second, China will rationally arrange the scale of government investment, spurring more investments and amplifying their effects. Third, China will improve transfer payments to further equalize access to basic public services, ensuring basic living needs, salary payments, and normal government expenditures at the primary level. Fourth, China will optimize and adjust tax policies to make them more precise, targeted and effective.

Improving the effectiveness of the proactive fiscal policy focuses on six aspects: tightening the government's belt, improving the composition of government spending, strengthening performance-based management, tightening financial discipline, boosting fiscal sustainability, and strengthening policy coordination. We will improve fiscal management in a sound, standardized, and law-based manner. We will ensure that every cent is used where it is needed most, and that the same amount of spending creates the greatest benefit.

We will work with a focus on the following seven priorities:

First, we will expedite our efforts to modernize the industrial system. On the one hand, we will make full use of policy instruments such as government subsidy policies, loan interest subsidy policies, and preferential tax treatment to tackle vexing issues in terms of basic products, core technologies, and key software, especially in key industrial chains such as the new generation of information technology and integrated circuits. On the other hand, we will fully leverage the guiding role of government investment, such as funds to support the transformation and upgrading of the manufacturing sector and industrial investment in advanced manufacturing. We will find market-based solutions to encourage non-government capital to invest in key manufacturing areas and open up new industrial sectors.

Second, we will vigorously boost domestic demand in two ways: investment and consumption. In terms of investment, we will expand investments that generate good returns. We will fully harness related government bonds, continue to issue a certain amount of local government special-purpose bonds, and rationally expand investment within the central government budget, giving full play to government investment's guiding and leveraging role. In terms of consumption, we will inject new impetus into consumption. In 2024, we will follow the trend of upgrading consumption by citizens, forge new drivers of growth in culture, tourism, education, and elderly care, enhance adjustment measures such as social security and transfer payments, increase incomes of urban and rural residents, and encourage consumer spending and improve spending power.

Third, we will further implement our strategies for invigorating China through science and education. We will step up investment in education and ensure the implementation of the requirement that government budgetary spending on education remains no less than 4% of GDP. Additionally, we will guarantee that education spending allocated through the government's general budget and the average education spending allocated per student continue to increase, promoting the development of a high-quality education system. We will fully support the achievement of breakthroughs in core technologies in key fields, meet the funding needs of major national science and technology projects, and make efforts to achieve greater self-reliance and strength in science and technology.

Fourth, we will support efforts to ensure and improve people's well-being. We will implement the employment priority policy, coordinate and make good use of policies on tax and fee reductions, social insurance premiums and loan interest subsidies, and support startups and employment through multiple channels. We will improve the multi-tiered and categorized social assistance system. At the same time, we will enhance budget management and channel more financial resources toward lower levels of government to maintain basic living needs, salary payments and normal government functioning, ensuring the bottom line at the primary level.

Fifth, we will step up efforts to promote comprehensive rural revitalization. We will support the implementation of a new drive to increase annual grain production capacity by 50 million metric tons, enhance investment in high-standard cropland development, ensure the incomes of grain growers, and improve the reward policy for major grain-producing counties. Another important step is to expand the scope of the full cost insurance policy and planting income insurance policy for the three major staple food crops to achieve full nationwide coverage. We will improve the ability to ensure food security, as part of our major work in implementing the national food security strategy of food crop production based on farmland management and technological application. At the same time, we must make good use of bridging funds from the central government to strengthen industrial and employment assistance, and support the consolidation and expansion of poverty alleviation achievements. What's more, we will learn and utilize the experience of the Green Rural Revival Program  to advance rural development according to local conditions.

Sixth, we will promote urban-rural development and regional development . We will vigorously promote new urbanization and support local governments in granting permanent urban residency to eligible people who move from rural to urban areas. We will further improve fiscal and tax policies that support major national strategies for regional development, and increase support for regions with unique features such as old revolutionary base areas, areas with large ethnic minority populations, and border areas.

Seventh, we will support efforts to strengthen ecological conservation. We will maintain investment, improve fiscal and tax policies, cultivate the endogenous driving force for green and low-carbon transformation and development, and promote the construction of Beautiful China pilot zones.

That's all from me. Thank you.

ThePaper.cn:

In 2023, China added 2.22899 trillion yuan in new tax and fee reductions and tax rebates and deferrals. Could you introduce the specific situation? In addition, which market entities have been the main beneficiaries? And what new considerations are there in 2024 in this regard? Thank you.

Wang Jianfan:

Thank you for your questions. In 2023, in accordance with the requirements of the proactive fiscal policy to be more efficient, more targeted and more sustainable, we coordinated the needs of corporate relief and fiscal affordability, and gave further priority to make our work more forward-looking, consistent and targeted. We extended and further refined preferential tax and fee policies. At the same time, we focused on certain areas and key links, accurately implemented a batch of new preferential tax and fee policies, truly supported the development of enterprises facing difficulties, and promoted the sustained recovery of the national economy, ensuring that the economy maintained growth momentum.

On the one hand, more than 70 expired preferential tax and fee policies were extended and refined in batches. Early last year, we had clearly extended and refined some of the preferential tax and fee policies before they expired. In the second half of the year, we continued to extend and refine a group of expired preferential tax and fee policies based on changes in the economic situation. Most of the policies will be extended directly until the end of 2027. With a focus on improving supply quality and expanding effective demand, these policies aim to provide major support for micro and small enterprises and self-employed individuals, help the real economy to get stronger and do better, build our self-reliance and strength in science and technology, increase incomes and expand consumption to meet people's basic living needs, stabilize foreign trade and investment, and support the healthy development of capital markets.

On the other hand, we focused on certain areas and key links to accurately implement new preferential tax and fee policies, mainly through the following actions. We implemented the policy of value-added tax (VAT) credit refunds in the advanced manufacturing sector to support high-quality development of manufacturing. We increased the super deduction rate of research and development expenses of integrated circuit and industrial mother-machine enterprises to enhance scientific and technological innovation. We raised the standard for special additional personal income tax deductions for care of infants and young children under the age of 3, children's education, and care of the elderly, to further reduce the burden of childbearing, childrearing and elderly care. Preferential tax treatment was given to construction and transactions of government-subsidized housing to ensure and improve people's well-being.

According to statistics from related departments, among all the newly implemented tax and fee reductions and tax rebates and deferrals nationwide in 2023, new tax and fee reductions totaled approximately 1.57 trillion yuan, and VAT credit refunds were around 650 billion yuan. In terms of industries, the manufacturing and related wholesale and retail industries added nearly 950 billion yuan in tax and fee reductions and tax rebates and deferrals, accounting for 42.6% of the total, the highest proportion of tax preferential treatment among all industries. In terms of the scale of enterprises, the new tax and fee reductions and tax rebates and deferrals for micro, small and medium-sized enterprises were about 1.43 trillion yuan, accounting for 64% of the total, and they were the most obvious beneficiaries.

In 2024, we will fully implement the deployments of the Central Economic Work Conference, carry out structural tax and fee reduction policies, maintain the continuity and stability of policies, enhance their accuracy and pertinence, and focus on supporting technological innovation and manufacturing development. We will strengthen policy supply, and promote the economy to achieve effective qualitative improvements and reasonable quantitative growth. Thank you.

China Financial and Economic News:

Data assets have become important strategic resources for promoting the development of the digital economy. We have also noticed that the MOF recently issued the Guidelines on Strengthening Data Asset Management. What are the considerations of the MOF regarding strengthening the management of data assets and promoting the development of the digital economy? Thank you.

Hou Junming:

Thank you for your concern for and attention to data asset management. As you mentioned, data assets have become important strategic resources for promoting the development of the digital economy. Therefore, it is crucial to emphasize and strengthen data asset management. In recent years, China has emerged as one of the fastest-growing countries in the global digital economy. By the end of 2022, China's digital economy had reached 50.2 trillion yuan, accounting for 41.5% of the country's GDP. General Secretary Xi Jinping has pointed out that the development of the digital economy holds great significance and represents a strategic choice to seize new opportunities in the new round of scientific and technological revolution and industrial transformation. The CPC Central Committee has made a series of decisions and deployments regarding the development of the digital economy, clearly putting forward the requirements for data asset compliance, standardization, and appreciation.

Compared with traditional assets, data, as a new type of asset, is replicable and non-excludable. These characteristics impose higher requirements on data asset management. The MOF has actively implemented the decisions and deployments of the CPC Central Committee and successively formulated and issued the Interim Provisions on Accounting Treatment of Enterprise Data Resources and the Guidelines on Data Asset Evaluation. Recently, the MOF also issued the Guidelines on Strengthening Data Asset Management, making clear provisions on the development and utilization, value evaluation, income distribution, and information disclosure of data assets. All these efforts aim to promote compliant and efficient circulation and use of data assets, unlock the full value of data assets, and enhance total factor productivity.

Next, we will focus on the following three areas:

First, we will strengthen the full-process management of data assets. We will standardize data asset registration, storage, use, disclosure, and disposal. By establishing a clear and complete management framework for data assets, we will promote data resources as assets in an orderly manner and better leverage their economic and social value.

Second, we will advance the development and utilization of data assets. We will encourage the effective supply of public data assets in accordance with laws and regulations, increase the release or disclosure of data asset information, and improve the transparency of data asset flow. We will support diversified development and utilization models in data-rich industries such as finance, transportation, healthcare, and energy. Furthermore, we will establish a reasonable income distribution mechanism to fully incentivize all participants.

Third, we will ensure the compliant and safe utilization of data assets. We will strengthen the monitoring and supervision of data assets, harness advanced technologies effectively, and rigorously mitigate management risks such as data leakage, damage, and loss. At the same time, reasonable procedures will be set up in data asset evaluation, transactions, and related processes to prevent the inflation of data asset value. 

Through these efforts, we aim to standardize and fortify data asset management, further stimulate the development of the digital economy, and facilitate equitable access to the dividends of the digital economy for all. Thank you.

Bloomberg:

Fiscal spending actually contracted in the first several months of last year. How will China pace fiscal spending and central and local government bond sales throughout this year? Secondly, what is the front-loaded quota for new local special bonds and general bonds this year, and how does it compare with last year? Thank you.

Li Xianzhong:

Thank you for your questions. Your questions actually involve two aspects: fiscal spending arrangements and government bond issuance arrangements.

Regarding fiscal spending arrangements, you just mentioned that fiscal spending contracted in the first few months of last year. In fact, during January-May 2023, the national general public budget expenditure reached 10.48 trillion yuan, an increase of 580 billion yuan compared to the same period in 2022, representing a growth of 5.8%. It should be noted that fiscal spending was substantial and progressed rapidly in the initial five months of last year. However, in June and July last year, the national general public budget expenditure slightly declined, mainly due to a one-time large expenditure during the same period in 2022. That raised the base and led to a temporary decrease in the growth rate in June and July 2023. It was in line with expectations, and there was no contraction in fiscal spending. Looking at the whole of last year, as Mr. Wang Dongwei just mentioned, the national general public budget expenditure exceeded 27 trillion yuan for the year, up 5.4% year on year. The expenditure reached a new high, demonstrating the effectiveness of proactive fiscal policies and providing strong support for economic recovery.

Regarding this year's fiscal expenditure plans, as vice minister Wang Dongwei mentioned, we are currently detailing and refining these plans in line with the directives of the CPC Central Committee and the State Council. These plans will be announced to the public following the approval of the NPC according to standard procedures. What I can confirm is that, in 2024, we will maintain the necessary intensity of fiscal spending.

These are some of our arrangements for government bond issuance. For national bonds, we plan to front-load the issuance within the NPC-approved ceiling for the outstanding balance to support necessary spending intensity. For local government bonds, under the requirements of the CPC Central Committee and the State Council, and as authorized by the NPC Standing Committee, the MOF has established and improved a management system since 2019 to allocate in advance new local government debt limits. This guides local governments to improve budget management and reasonably schedule the issuance of new local government bonds, effectively reducing financing costs and accelerating fund allocation. According to our statistics, from the establishment of this system in 2019 to 2023, the MOF allocated new local government debt limits of 1.39 trillion, 2.85 trillion, 2.36 trillion, 1.79 trillion, and 2.62 trillion yuan in respective years, totaling over 11 trillion yuan. In December 2023, after completing legal approval procedures, the MOF allocated part of the new local government debt limits for 2024 to support major project construction so that work can begin on them the moment government funds are received , leveraging local government bonds to drive economic growth.

This is all for my report. Thank you.

CCTV:

As we know, scientific and technological innovation is the logical starting point and the key driver for high-quality development. My question is, what have national finances done to improve the allocation of innovation resources and build China's self-reliance and strength in science and technology? Also, could you share any new measures planned for 2024? Thank you.

Wang Dongwei:

Thanks for your question. I'll take this one. Implementing the innovation-driven development strategy and building high-level self-reliance and strength in science and technology requires the improvement of the new system for mobilizing resources nationwide to better allocate innovation resources, boost China's strength in strategic science and technology, and promote deeper integration of the innovation, industrial, capital, and talent chains . In recent years, national finances have prioritized science and technology expenditure. From 2018 to 2023, fiscal spending on science and technology increased by an annual average rate of 6.4% from 832.7 billion yuan to 1.06 trillion yuan. At the same time, we've been utilizing various policy tools such as tax incentives, government procurement, asset management, and fiscal financing to support scientific and technological innovation. In 2023, through a series of central government policies and strong fiscal support, we saw rapid progress in establishing a national laboratory system and constructing large-scale scientific facilities. We also witnessed the successful launch of the Shenzhou-17 spaceship, the debut commercial flight of the C919 large passenger airplane, and the constant emergence of innovative outcomes in fields like artificial intelligence, quantum technology, and biomanufacturing.

In 2024, finance departments will take more robust and effective measures to drive the construction of a modern industrial system led by scientific and technological innovation and develop new productive forces. I would like to elaborate on this from two perspectives.

First, in terms of policy orientation, we should focus on four "key areas." First is emphasizing the primary role of enterprises in innovation. We'll implement structural tax cuts and fee reductions with a focus on supporting technological innovation and the development of the manufacturing sector. We aim to leverage fiscal funds to catalyze significant investment in technology innovation from financial resources and private capital, encouraging the flow of innovation resources towards enterprises. Second, we will harness the power of demand to drive innovation. By capitalizing on our vast domestic market, we aim to significantly encourage the application and iteration of innovative outcomes. This includes implementing and refining policies of subsidy for insurance for the first use of major technological equipment and new materials, addressing initial application bottlenecks in a market-oriented manner. Third, we will be committed to enhancing the resilience and security of our industrial and supply chains. This involves integrating and optimizing related fiscal special projects, focusing on key industrial chains, and supporting technological breakthroughs in critical weak areas. We will implement fiscal policies to support innovative small and medium enterprises (SMEs) that use special and sophisticated technologies to produce novel and unique products , encouraging more companies to specialize in niche markets and pursue excellence and innovation. Fourth, we will focus on boosting the enthusiasm and creativity of scientific researchers. Two important pilot reforms in this area include supporting the advancement of salary system reforms in universities and research institutes and accelerating the reform of the ownership or long-term use rights of on-the-job inventions by scientific researchers. The goal is to fully stimulate the initiative and creativity of these researchers.

Second, in terms of the use of funds, we should advance reform of the mechanisms for the allocation and use of fiscal science and technology funds. In this regard, we need to achieve the "four strengthens." First, we need to strengthen our foundations. We will increase investment in basic research, applied basic research and cutting-edge research, and improve our capabilities in original innovation. Second, we need to strengthen our ability in tackling key problems. We will double our efforts to achieve breakthroughs in core technologies in key fields, thus gaining the high ground in the scientific and technological endeavor. Third, we need to strengthen our capabilities. We will focus on national laboratories, national research institutions, high-level research universities and leading scientific and technological enterprises to support the strengthening of national strategic scientific and technological capabilities. Fourth, we need to strengthen efficiency. Projects, funds, talents as well as base innovation resources will be coordinated so as to comprehensively strengthen performance management, and strive to improve the effectiveness of government research funds.

That's all from me. Thank you.

Xinhua:

As we all know, agriculture, rural areas and rural residents serve as the ballast of China's economic development, with food security as its top priority. Last year, China had a bumper harvest in grain production. What role has the MOF played in supporting grain production and ensuring food security? And what are the plans going forward? Thank you.

Li Xianzhong:

Thank you for your questions. Food security is a matter of national importance. In 2023, the central government consistently made ensuring national food security a top priority of its financial policies to support agricultural development, providing strong and effective support for China's grain output hitting a record high. Specifically, the central government mainly focused on two aspects:

On the one hand, we optimized policy support by focusing on the foundation of food security. First, we improved and adjusted the central government's transfer payment policies related to agriculture. For example, the grain and oil production guarantee fund was set up, which was mainly used to support the construction of centralized seedling cultivation facilities, including strip-intercropping of soybean and corn. Second, we gave full play to the role of fiscal funds as the main channel, fully implemented the strategy of conserving and using arable land as well as promoting grain output through high technology, allocated 92 billion yuan to support 80 million mu of newly-built and improved high-standard farmland, actively advanced the protection and utilization of black earth, and initiated pilot projects for comprehensive utilization of saline-alkali land. We supported the campaign to revitalize the seed industry and vigorously enhanced the mechanization level in agriculture. Third, we continued to improve the policy systems for prices, subsidies and insurance. We raised the minimum purchase price for wheat, steadily implemented policies relating to farmland fertility protection subsidies and rice subsidies, increased support for major grain-producing counties, and expanded the coverage of full cost insurance and planting income insurance for the three major grain crops to all major grain producing counties across the country. Fourth, we optimized diverse input mechanisms, gave full play to the leveraging role of finance, and actively guided financial and private capital to participate in investment. We launched a pilot program to discount interest on loans for high-standard farmland.

On the other hand, we strengthened financial support focusing on the critical periods of grain production. First, at the key time of spring ploughing, we issued a 10-billion-yuan fund for granting one-off subsidies to crop-growing farmers to stabilize their expectations and reduce the cost of grain planting. Second, to prevent diseases and pests, dry and hot winds, and the collapse of summer wheat, we allocated 1.6 billion yuan to support the "three prevention measures" by crop-dusting in major wheat producing areas. Third, in response to the impact of protracted rainfall during the reap period in Henan province and typhoons and floods in some parts of northern and northeastern China, we accelerated the allocation of disaster relief funds to support wheat harvest and drying while resuming agricultural production in disaster areas, thus effectively reducing food losses due to disasters. Fourth, at the critical stage of fall harvest, 2.4 billion yuan was allocated to support "spraying to promote growth" measures for corn and soybeans in key northern areas to help increase the fall harvest.

In 2024, the central government will increase the central and provincial investment subsidy levels for the construction of high standard farmland, and continue to support campaigns including those for revitalizing the seed industry and complementing the weak links in agricultural machinery equipment. We will continue our efforts to upgrade agricultural socialized services, explore the establishment of an interest-compensation mechanism between grain production and marketing areas, optimize the diversified investment mechanism, and at the same time, strengthen the supervision of capital use and policy implementation to better safeguard national food security.

That's all from me. Thank you.

Thecover.cn:

Issues regarding the sustainability of the pension system and the timely and full payment of pensions are of concern to the public, given China's rapidly aging population. How would you respond to the public's concern? Thank you.

Hou Junming:

Thank you for your question. The issue is of great concern to everyone. It is important to ensure people's access to elderly care and improve their well-being as China's population ages rapidly. Pension payments potentially concern the interests and well-being of every Chinese citizen and their families. In recent years, finance departments at all levels have fulfilled their responsibilities to ensure pensions are paid on time and in full. Efforts have been made in the following three areas:

The first is to increase government subsidies. In 2023, the central government allocated about 1 trillion yuan in fiscal subsidies for basic pension insurance, which was weighted towards the central and western regions and old industrial bases. Local governments have proactively fulfilled their responsibilities in this regard to ensure that basic pensions are paid on time and in full.

The second aspect involves the nationwide pooling system for pension funds. Initiated in 2022, as planned by the central authorities, this system enables pension funds to be properly transferred from regions with a surplus to those facing deficits nationwide. In 2023, a total of 271.6 billion yuan of pension funds were transferred nationwide, effectively addressing the problem of pension fund surpluses in some regions and payment difficulties in others.

The third aspect concerns the management of pension funds. We have worked with relevant departments to regulate fund collection and distribution, ensuring that the policies for financing and receiving pension benefits are fairer and more reasonable. This aims to make the old-age pension system more equitable and sustainable.

Remarkable improvements have been witnessed in terms of pension fund collection and distribution thanks to the aforementioned efforts in recent years. By the end of 2023, the balance of China's pension insurance funds for urban workers stood at nearly 6 trillion yuan, ensuring timely and full pension payments.

Moreover, according to decisions and plans made by the CPC Central Committee and the State Council, we have allocated special funds to support the program to improve home- and community-based basic care services for senior citizens, as well as the program to provide concentrated care services for elderly people who cannot perform essential self-care and who are economically disadvantaged. We have introduced a series of preferential tax and fee policies to support the development of the elderly care service sector and the "silver economy" (economic activities that offer products and services to seniors). By doing so, elderly people will not only have the financial support they rely on to support them through old age but also access to affordable and high-quality care services.

In 2024, our efforts will focus on two priorities. First, the central government will allocate more financial subsidies and ensure the implementation of the nationwide pooling system for pension funds. We will intensify efforts to improve relevant systems and mechanisms to protect the funds people rely on to support them through old age. Next, we will step up support for elderly care services and improve the networks for institution, community and at-home elderly care services. We will promote the coordinated development of elderly care programs and services and improve the quality and efficiency of elderly care services. Thank you.

Chen Wenjun:

The last two questions, please.

CNR Business Radio:

Performance-based budgetary management plays a crucial role in improving the efficiency of fiscal funds. What new progress and achievements have financial authorities made in this regard? What efforts will be made to further improve the efficiency of performance-based budgetary management in 2024?

Wang Jianfan:

Performance-based budgetary management is a crucial component in improving the modern budget system. In September 2018, the CPC Central Committee and the State Council issued a guideline to establish a performance-based budgetary management system, making specific arrangements for performance-based budgetary management. Following the guidelines, the MOF established and improved the performance -based budgetary management system, enhancing its quality and efficiency. As a result, a whole-process performance-based budgetary management mechanism has taken shape, guiding all regions and departments to develop a performance-awareness culture, and improving the efficiency of fiscal policies and the quality of public services.

In 2023, we stepped up our efforts to shore up weaknesses in a targeted and problem-oriented manner, and to improve the quality and efficiency of our work in key links. We have ramped up efforts in the following six aspects:

The first aspect involves efforts in conducting trials on performance evaluation prior to the implementation of programs and policies. By combining budget reviews with project approvals, we conducted ex-ante performance evaluations for major projects that are newly added or extended by central departments and ministries, as well as newly established transfer payments, to make the budget-making process more science-based from the very beginning.

The second aspect is to strengthen the management of performance targets. We achieved full coverage in managing performance targets for project expenditures by central departments and ministries, transfer payments under shared fiscal powers, and special transfer payments. Moreover, we provided guidance to ensure that central departments, ministries, and local financial departments set their performance targets in a scientific manner. We also made greater efforts to review performance targets for key projects, improving the quality of the performance targets set.

Third, we strengthened oversight of budget performance. During the budget execution, we relied on the integrated central budget management system to carry out oversight of budget performance, analyzed key projects' implementation progress and attainment of performance targets, as well as fixed performance deviations and fund management loopholes in a timely manner.

Fourth, we improved the quality and effectiveness of performance assessment. We have organized a comprehensive performance self-assessment of central authorities' project spending, integrated transfer payments under shared fiscal powers , and special transfer payments. In accordance with the principles of priority and quality, we assessed the performance of 52 projects in key areas such as education, sci-tech, and agriculture and rural areas.

Fifth, we stepped up the application of performance assessment results. Linking the assessment results with budget arrangements, we lowered to different extents the budget for central projects with lower scores in the key fiscal performance assessment in 2023. For regions with poorer performance, we reduced transfer payment allocation modestly.

Six, we worked to report and disclose performance information. The performance goal and assessment results of key projects were reported to the National People's Congress. Together with the public disclosure of the budget and final accounts of central authorities, we organized central authorities to disclose the performance goal of 811 projects and assessments results of 745 projects, increasing from the previous year. 

Next, the MOF will continue to improve the budget performance management system in accordance with the overall requirements for a sound and modern budget system and give better play to the role of budget performance management in optimizing the allocation of resources and improving the effective use of funds. Thank you.

Phoenix Satellite Television:

The central economic work conference has made arrangements for the building of a modern industrial system. What has the MOF done to support the building of such a system? What are the policy considerations for 2024? Thank you.

Wang Dongwei:

Thank you for your questions. Your questions are very important and have been closely followed by business entities. I will answer your questions.

General Secretary Xi Jinping stressed that a modern industrial system is the material and technological foundation of a modern country and the focus of economic development must be placed on the real economy. In 2023, the MOF has taken a host of measures in a targeted way to accelerate the building of a modern industrial system underpinned by the real economy. We have taken the following measures:

First, we have accelerated the development of strategic emerging industries. We have introduced the policy of granting extra value-added tax credits for advanced manufacturing enterprises, improved the special funds for the manufacturing industry, government investment funds, insurance compensation for the application of newly developed major technical equipment, and other supporting policies. We have accelerated the advancement of key technologies and industries to make up for shortcomings and enhanced the resilience and security of industrial and supply chains. This has given rise to new industries, business models, and new momentum. Let me give you an example. For the implementation of the insurance compensation policy for the application of newly developed major technical equipment , the central government subsidized 80% of the premiums of insured companies and supported the application of more than 30,000 units or sets of major technical equipment. 

Second, we have quickly promoted the transformation and upgrade of traditional industries. By utilizing the special central fund for boosting the manufacturing sector, we rendered stronger support to new-generation information technologies and industrial internet platforms to provide technological support for the digital transformation of traditional industries. We have allocated 3 billion yuan to pilot the digital transformation of SMEs in various cities. A total of 30 pilot cities have been identified in the first batch on the basis of merit to guide local governments, strengthen policy coordination, and promote the in-depth integration of the digital economy and the real economy.

Third, we have vigorously promoted the development of enterprises that use special and sophisticated technologies to produce novel and unique products. We have continued to provide financial awards and subsidies for such SMEs and guided them to be more innovative and specialized. By the end of 2023, we had fostered more than 12,000 national-level "small giant" enterprises that use special and sophisticated technologies to produce novel and unique products, and over 100,000 provincial ones in China. The national fund for the development of SMEs has been fully tapped into to mobilize non-government capital to support innovation and development of seed and startup-stage SMEs with growth potential. By the end of 2023, the SME development fund had invested in 36 sub-funds, with an accumulative investment of 47.76 billion yuan, of which more than 70% was invested in seed and startup-stage, growth SMEs. 

In 2024, the MOF will focus on developing new types of industrialization and enhancing the core competitiveness of industries. We will give full play to the leading role of fiscal funds and the credit enhancement role of government investment funds to create a lever effect, supporting the rapid development and expansion of strategic emerging industries. Efforts will also be made to promote the transformation and upgrade of traditional industries at a faster pace, promote the cultivation and exploration of new tracks of industries in an accelerated way, and effectively serve the building of a modern industrial system. 

That's all for my answers to the questions. Thank you.

Chen Wenjun:

Thanks to all the speakers and journalists here. Today's briefing is now concluded. See you all.

Translated and edited by Xu Xiaoxuan, Wang Qian, Wang Yanfang, Liu Sitong, Yan Bin, Wang Wei, Yan Xiaoqing, Guo Yiming, Li Xiao, Zhang Tingting, Li Huiru, Gong Yingchun, Huang Shan, Cui Can, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration

Mr. Ren Duanping, director general of the Business Registration Bureau of the SAMR

Mr. Xu Lefu, director general of the Antitrust Enforcement Department II of the SAMR

Mr. Liu Sanjiang, director general of the Quality Development Bureau of the SAMR

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 31, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Pu Chun, vice minister of the State Administration for Market Regulation (SAMR) and administrator of the National Certification and Accreditation Administration, who will brief you on stimulating the vitality of business entities to promote high-quality economic development. We are also joined by Mr. Ren Duanping, director general of the Business Registration Bureau of the SAMR; Mr. Xu Lefu, director general of the Antitrust Enforcement Department II of the SAMR; and Mr. Liu Sanjiang, director general of the Quality Development Bureau of the SAMR.

Now, I'll give the floor to Mr. Pu for a brief introduction.

Pu Chun:

Good morning. Thank you for your long-term interest in and support for the efforts concerning market regulation. It is my pleasure to speak with you on the topic of stimulating the vitality of business entities to promote high-quality economic development, and to take your questions. I will now start with a brief introduction.

The Central Economic Work Conference has underscored the need to fully stimulate the endogenous power and innovation vitality of various business entities. Through our market regulation practices over the years, we have recognized the role of business entities as major participants in economic activities, key suppliers of job opportunities and main drivers of technological advancement. Effectively stimulating the vitality of business entities and fully unleashing their endogenous power is of great significance to consolidating and strengthening the momentum of economic recovery and fostering high-quality economic development. Responsible for market regulation and law enforcement, the market regulator is the guardian of business entities' lawful rights and interests and the driver of economic growth. It is our responsibility to provide sound services and help business entities address difficulties and problems occurring during production and business operation. We will earnestly carry out the guiding principles of the Central Economic Work Conference, innovate regulatory methods and improve regulatory effectiveness, with a focus on the following aspects:

First, we will carry out further reform work and advance innovation. Reform and innovation are the sources of stimulating vitality. We will continue improving the rules on market access as well as the exit mechanism for business entities, in a bid to provide them with greater convenience. By comprehensively adopting credit rating-based regulatory measures and those assisted by smart technologies, we will work to improve the effectiveness of ongoing and ex post regulatory efforts and create a sound regulatory environment featuring less disruption and timely response. In the meantime, we will optimize the evaluation methods for business entities, and attach greater importance to the comprehensive and multi-dimensional evaluation system involving business size and structure, the levels of staying active, law compliance, innovation and competitiveness, economic returns and corporate social responsibility. We will provide guidance to localities and government departments on paying more attention to the development quality of business entities, in a bid to effectively achieve higher-quality growth based on a reasonable increase in their total number.

Second, we will work to promote fair competition. An inclusive and fair market environment is a crucial prerequisite for stimulating market vitality. We will speed up the development of a unified national market, taking stronger action against administrative monopolies and local protectionism. We will also work to remove policy measures that impede the functioning of a unified market and fair competition, and safeguard business entities' right to independent management. Moreover, we will investigate and deal with monopolistic cases as well as those concerning unfair competition in accordance with the law. In addition to leveraging the strength of large enterprises' size and helping to improve core competitiveness, we will also safeguard the development and innovation vitality of micro, small and medium-sized enterprises. We will strive to develop and carry forward the culture of fair competition, and work to create a social environment that acknowledges and practices fair competition.

Third, we will work to ensure that the law is enforced in a strict, procedure-based, impartial and non-abusive way. The rule of law secures the best business environment, and provides fundamental support for stimulating market vitality and ensuring orderly operation. We will perform our duties in strict accordance with the law, bring all administrative activities into line with the rule of law, and create a more stable, transparent, procedure-based and predictable environment for business entities to develop. We will also expedite efforts to improve the system of baselines for administrative discretionary powers regarding market regulation, and establish and implement the case guidance system, so as to avoid excessive punishments for minor misconducts and differentiated punishments for similar cases. We will make better use of measures such as admonition and administrative guidance, patiently communicate and explain our regulatory measures, and proactively seek understanding and support, in a bid to demonstrate a human touch in law enforcement.

Fourth, we will work to improve assistance measures. Well-conceived and targeted favorable policies for enterprises are an effective method for stimulating vitality. We will further improve our regular communication mechanism with business entities, understand their demands and suggestions in a timely manner, and help resolve prominent issues facing them. Based on our duties in market regulation, we will formulate more practical, heart-warming and higher-quality policy measures in terms of developing incentives for good-faith actors, providing assistance in quality-related issues and technological aspects, and supporting self-employed individuals. We will redouble our efforts to end unjustified charges levied on businesses and help reduce their burden.

Fifth, we will make efforts to regulate market order. Taking action against violators is a strong protection of law-abiding behavior and a means to stimulate vitality. We will strictly deal with infringements of intellectual property, the production and sale of counterfeit goods, and other illegal activities that disrupt market order in accordance with law. Enhanced protection of trade secrets will be implemented to firmly safeguard the legitimate rights and interests of business entities. In the meantime, initiatives will be undertaken to expedite the improvement of compliance management systems in key areas, fostering an enhanced awareness of compliance and integrity among business entities, with the aim of achieving more regulated, sustainable and dynamic development.

That is all for my introduction. Thank you.

Xing Huina:

Thank you Mr. Pu for your introduction. The floor is now open for questions. Please identify your news outlet before asking your question.

ThePaper.cn:

As the Spring Festival approaches, we have noticed that the SAMR has recently intensified efforts to stabilize prices and ensure the quality of essential consumer goods during the holiday season. Could you please provide more details about this initiative? Thank you.

Pu Chun:

I will answer this question. The New Year and the Spring Festival represent traditional peak seasons for consumption, and the prices and quality of essential consumer goods are major concerns for all people. In order to ensure the stability of prices and the quality of important consumer goods during the New Year and the Spring Festival, and to guarantee that people can enjoy a joyful and harmonious start to the new year, the SAMR has stepped up efforts to stabilize prices and ensure quality during this period. This includes establishing regulatory lists for four major categories: food, industrial products, life services and pharmaceuticals, focusing on key areas of holiday consumption.

First, we will closely follow the consumption hotspots of New Year and Spring Festival, and strengthen the monitoring of price fluctuations. We will focus on key areas of consumption related to people's everyday lives, including rice, vegetables, fruit and heating-related issues. We will concentrate on holiday-related consumption, including rice, flour, cooking oil, vegetables, meat, eggs, dairy products, New Year's Eve dinner reservations, cultural and entertainment activities, hotel bookings, transportation logistics, as well as the increased demand for medicine and energy due to cold weather. We will conduct thorough online and offline price monitoring and tracking analysis to make informed judgments.

Second, we will strengthen the enforcement of price regulation laws to stabilize market price levels. We will closely monitor early signs and trends of issues that emerge, proactively estimate potential risks that may affect market order, increase the frequency of market inspections, and effectively intensify regulatory efforts on the prices of key consumer goods.

Third, we will strictly control food quality and safety, guarding the red line of consumption safety. We will fully leverage the mechanism that targets differentiated responsibilities to ensure effective results, intensify efforts to see that all responsibilities are fulfilled, namely, the primary responsibility of the enterprise itself and the regulatory responsibility of the government in the locality where the enterprise is located, precisely prevent and control risks, decisively eliminate issues such as the sale of expired, spoiled and counterfeit or substandard food, and rigorously guard against regional and systemic food safety problems. Efforts will be intensified to identify potential quality and safety hazards, with a focus on industrial clusters, wholesale markets and rural markets. We will conduct continuous inspections of potential hazards in product quality and safety, strengthening quality supervision and spot checks, implementing a "ledger-style" management approach, and effectively eliminating quality and safety hazards.

Market regulation departments across various regions, fully considering local consumption characteristics, are making full use of a tiered regulatory toolbox. They comprehensively employ methods such as reminders, administrative guidance and administrative law enforcement. This includes the launch of a platform for price and fee regulation, monitoring and early warning services, organizing supermarket and department store price policy reminder briefings, conducting a series of actions, such as regulation on food safety, rectification of safety hazards in special equipment, and addressing quality and safety issues in gas appliances. These actions aim to guide business entities to operate in accordance with the law and regulations. As of Jan. 16, market regulation departments across the country had deployed inspection personnel on a total of 481,100 visits, inspecting 322,100 units. In terms of pricing, 252 cases had been filed, resulting in 80 penalized cases with a total amount of 533,600 yuan being penalized or returned. In terms of product quality, 1,108 cases had been filed, resulting in 279 penalized cases with a total penalty amount of over 2.62 million yuan. In terms of food safety, 2,681 cases had been filed, resulting in 2,197 penalized cases with a total penalty amount of around 10.74 million yuan. Thank you.

Cover News:

The Central Economic Work Conference has proposed proactively developing the digital economy. Currently, regular oversight of the platform economy is receiving significant attention. Regarding the anti-monopoly supervision for the concentration of business operators, what measures has the SAMR taken to conduct regular oversight? Thank you.

Xu Lefu:

Thank you for your question. The SAMR attaches great importance to the regular oversight of the platform economy, actively planning high-quality measures to support its development. Regarding the anti-monopoly supervision for the concentration of business operators, we are steadily advancing the routine regulatory approach of ensuring pre-compliance, conducting mid-process reviews and implementing post-accountability measures to promote high-quality development of the platform economy.

The term "pre-compliance" entails promoting adherence to regulations in advance with an emphasis on ensuring enterprises to shoulder due responsibilities. We have emphasized enhancing enterprises' compliance awareness and released a guideline on anti-monopoly compliance for the concentration of business operators. We have also established routine communication mechanisms with platform enterprises, taking proactive steps to assist businesses in their compliance operations. We have observed, in recent years, platform enterprises, particularly major platform enterprises have greatly enhanced their compliance awareness. They have commonly established internal anti-monopoly compliance systems and dedicated appropriate human resources to this endeavor. Currently, due to the substantial increase in anti-monopoly compliance awareness, there have been no newly added illicit practices associated with business operator concentration by platform enterprises since the new Anti-Monopoly Law came into effect on Aug. 1, 2022.

Efforts have focused on providing review services and improving review efficiency in the review process. We revised and released the Provisions on the Review of Concentration of Undertakings, and launched an antitrust review system for the concentration of operators, clarifying internal work requirements for simple cases. Specifically, such cases must be addressed within 20 days of enterprises registering applications, and the review must be completed within 20 days of application acceptance. The system will issue notifications if the handling of cases exceeds the required 20 days, and the staff responsible for the cases should provide explanations, aiming to offer enterprises clear and stable expectations for supervision. In 2023, the average review time for operator concentration cases was 25.7 days; for straightforward cases, it was 17.7 days. This efficiency is among the highest in major anti-monopoly jurisdictions. Since the amended Anti-Monopoly Law took effect on Aug. 1, 2023, we have unconditionally approved 29 cases of concentration of platform operators in accordance with the law, without any approvals with conditions or prohibited cases. 

Follow-up accountability refers to law enforcement, deterrence, and investigation into responsibility. Currently, we are expediting research and development of standards for discretion in administrative penalties for illegal business concentration, and the Rules for Dealing with Ineligible Cases of Concentration of Operators with Possibilities of Excluding or Restricting Competition. This aims to intensify regulation on illegal business concentration and so-called "killer mergers," including those that fail to meet thresholds but still exclude or restrict competition or have the potential to do so after the enforcement of the Anti-Monopoly Law. The goal is to enhance deterrence with mechanisms to champion fair market competition.

We always believe that pro-competition policies are pro-development policies. Anti-monopoly regulation aims to encourage enterprises to grow stronger in accordance with the law and to champion sound and sustainable industrial development, thereby providing consumers with more high-quality and economical goods and services. Going forward, the SAMR will continue to act on the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will promote development as well as strengthen supervision and regulation, adopt an open-minded and prudent attitude in supervision, and continuously improve regular supervision capabilities to support the sound and standardized development of the platform economy. Thank you.

Red Star News:

Self-employed individuals are the capillaries of the national economy, underpinning employment expansion and the improvement of people's livelihoods. May I ask what progress the SAMR has made in promoting their development? What measures will be taken to promote their development quality? Thank you.

Pu Chun:

These are very good questions. Let's invite Mr. Ren to answer the questions.

Ren Duanping: 

Thank you for your questions. Self-employed individuals, which are the largest in number among China's market entities and an essential part of the private economy, play a critical role in stabilizing economic growth, promoting employment, and improving people's livelihoods. General Secretary Xi Jinping has emphasized the importance of taking effective measures to support the development of self-employed individuals. The State Council released regulations on boosting the development of self-employed individuals, providing legislation guarantee in this regard. The SAMR will earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, and continue to take effective measures to advance the sound and orderly development of self-employed individuals.

First, the SAMR has established a regular communication mechanism between itself and self-employed individuals. In line with the State Council's arrangements and requirements for building a regular communication mechanism, officials from the SAMR hosted three symposiums on self-employed individuals, engaged in face-to-face communication with representatives of self-employed individuals, and learned about their conditions, problems, and suggestions. By improving the problem transfer and supervision mechanism, we have better addressed common issues of concern to self-employed individuals and continued to optimize assistance measures.

Second, the SAMR launched a service month campaign and worked with 13 departments to establish a diverse assistance mechanism. In July 2023, the second session of the National Self-Employed Individuals Service Month campaign was initiated, during which a total of 29,200 symposiums on self-employed individuals were held. We visited approximately 4.3 million self-employed individuals, addressing problems and difficulties through 174,600 cases.

Third, the SAMR advanced targeted assistance for different categories and types of self-employed individuals. Based on the experience of 12 pilot provinces, the SAMR, along with 14 departments, including the National Development and Reform Commission, the State Taxation Administration, and the National Financial Regulatory Administration, released a guideline on targeted assistance for self-employed individuals of various types and categories. This guideline clarifies classification methods and cultivation measures for four types of self-employed individuals, including those striving for subsistence, growth, and development and those that are renowned, specialized, high-quality, and innovative.

With concerted efforts from various regions, local relevant departments, and all sectors of society, self-employed individuals nationwide have achieved stable and sound development, with an improved level of activity and increased revenues. By the end of 2023, the total number of registered self-employed individuals in the nation reached 124 million, accounting for 67.4% of business entities across China and providing employment for nearly 300 million people. The year 2023 saw 22.582 million newly registered self-employed individuals, marking an 11.4% increase year on year. Self-employed individuals act as the capillaries of industrial and supply chains and the nerve endings of markets. Their stable development sustains the hustle and bustle on the streets and maintains the livelihoods of hundreds of millions of families, demonstrating the strong vitality and resilience of the Chinese economy.

Next, the SAMR will focus on the following aspects to improve the quality of development of self-employed individuals in accordance with the deployments of the Central Economic Work Conference:

First, we will comprehensively promote targeted assistance based on different types and categories. We will guide local authorities to refine classification criteria, establish a unified national "List of Self-Employed Individuals," leverage the leading and exemplary role of enterprises featuring novel, special products of famous brands with high quality, and encourage various regions and departments to introduce more targeted policies and measures to support the development of self-employed individuals.

Second, we will give full play to the role of the "National Self-Employed Individuals Development Network," which was initially established and is being enriched in content and service resources. We will explore market-oriented means to provide services, including laws and policies, market supply and demand, recruitment information, entrepreneurship training, and financial support for self-employed individuals.

Third, we will create a favorable atmosphere. We will enhance the regular communication mechanism between the SAMR and self-employed individuals, address challenging issues, and continue to carry out the third edition of service activities for self-employed individuals nationwide. We will increase incentives and publicity for outstanding self-employed individuals, continue to monitor their activity, and thus better support their high-quality development. Thank you.

CCTV:

The Central Economic Work Conference highlighted the importance of maintaining positive interactions between high-quality development and high-level safety. Food safety is a critical issue affecting people's well-being. We want to know what the SAMR has done to strengthen supervision over food safety and what are your plans moving forward? Thank you.

Pu Chun:

Thank you for your question; I'll answer it. Food safety relates to people's health and safety. Since the 18th CPC National Congress, General Secretary Xi Jinping has made a series of important statements, providing theoretical guidance and fundamental instructions for our work regarding food safety. The SAMR has firmly implemented the important instructions given by General Secretary Xi Jinping, carried out the decisions and arrangements of the CPC Central Committee and the State Council, adopted a problem-oriented approach, prevented and defused risks, never allowed the bottom line to be crossed on major food safety issues, and ensured the steady and positive momentum of food safety.

First, we have strengthened localized management responsibility and corporate principal responsibility for food safety. We guided local authorities to establish and improve a mechanism featuring a multi-level targeted prevention approach, implemented the system of "three lists plus one commitment letter" (responsibility list, task list, inspection list, and food safety responsibility and task commitment letter), and further fulfilled localized management responsibilities. We encouraged enterprises to appoint food safety officers and directors in accordance with laws and regulations, establish a risk control list, and strictly implement the "daily control, weekly investigation, and monthly scheduling" work mechanism. When problems occur, we can find the responsible parties and conduct investigation.

Second, we have established a robust food safety standard system. The SAMR has revised the Food Safety Law and its implementation regulations, formulated and introduced 16 supporting regulations on food safety, and issued 87 supplementary methods for food testing and 49 methods for quick inspection, providing a strong institutional guarantee and technical support for law-based supervision.

Third, we have continued to enhance our supervision to ensure food safety. We coordinated pre-incident, during-incident and post-incident supervision, optimized the registration management process for special foods, strengthened on-site inspections of food production and operation licenses, and strictly controlled market access. We fully implemented risk-based graded supervision, formulated a supporting checklist of key inspection points, increased inspection frequency for high-risk foods and their enterprises, and guide local governments to strengthen random inspections. In 2023, we completed 7.0349 million batches of food safety supervision and sampling inspections, with a failure rate of 2.72%, a reduction of 0.14% from the previous year. 

Fourth, we have combined punishment and clemency in punishing illegal acts. We focused on addressing prominent issues of public concern while strengthening the handling and investigation of food safety cases. The first three quarters of 2023 saw 334,500 food safety violation cases nationwide, 33,500 of which were exempted from punishment, and the average fine per case was 4,900 yuan, showing a downward trend. These figures not only reflected the effectiveness of food safety supervision, but also showed an improvement in our concept and modes of law enforcement, which was recognized by the public.

Moving forward, the SAMR will continue to keep in mind the worst scenarios, strengthen risk management, pay close attention to the delivery of duties, improve the food safety risk prevention and control system, improve the consultation, major accident and public opinion emergency response mechanism, and effectively protect the food safety of the people. That's all from me. Thank you.

Hong Kong Bauhinia Magazine:

The Central Economic Work Conference proposed enhancing quality support and standard leadership. Would you please introduce the efforts made by the SAMR on quality support and standard leadership? Thank you.

Pu Chun:

I'll invite Mr. Liu to answer the question.

Liu Sanjiang:

Thank you for your interest in quality issues. To build a modernized industrial system and advance high-quality economic and social development, it is essential to fully leverage the roles of quality support and standard leadership. In accordance with the plans of the Central Economic Work Conference, we will strive to establish quality benchmarks and advanced standards based on fully implementing the outline to improve the overall quality of China's economy.

In terms of setting up quality benchmarks, we will promote high-quality development to empower enterprises, industrial and supply chains, as well as counties in a systematic manner.

First, we will identify a group of leading enterprises that help improve the overall quality of China's economy, better leveraging the role of quality in fostering enterprise growth. Focusing on areas such as quality technological innovation, improvement in quality management, and enhancement of brand competitiveness, we will select a group of companies known for their pursuit of quality to serve as models for other companies in key sectors such as information and communication, engineering machinery, and new energy vehicles.

Second, we will initiate a series of major signature projects to enhance the quality of industrial and supply chains, thereby bolstering industries with high-quality growth. Focusing on key industrial chains such as integrated circuits, artificial intelligence, and quantum information, we will outline the quality profile of these industrial chains, formulating lists of quality issues, research topics, and policies to strengthen comprehensive quality management of industrial chains. We will also enhance our quality infrastructure and promote coordinated quality improvements throughout industrial and supply chains.

Third, we will foster a group of counties, districts and towns of high-quality development, giving more play to the role of quality in promoting sustainable urban development. We will establish a comprehensive system to evaluate the development quality of counties. Counties, districts and towns are encouraged to formulate and implement their urban quality development strategies based on their own mission and resources. Modern quality management concepts and tools are also used to advance refined, high-quality and intelligent urban development, thus strengthening the grassroots foundation for China to improve the overall quality of its economy.

In terms of strengthening the advancement of standards, we will take three measures. First, we will raise technical, emissions, and energy consumption standards to better leverage the role of standards in boosting domestic demand. We will improve the quality and safety requirements for consumer commodities such as home appliances and furniture, along with service standards. We will upgrade smart manufacturing, green manufacturing, and service-oriented manufacturing standards to promote new infrastructure standards for infrastructure such as data centers and electric vehicle charging stations. We will also improve fuel consumption standards for passenger cars and heavy commercial vehicles. We will enhance standards on energy consumption quotas and for terminal product energy efficiency of key industries. In particular, we will strengthen the development and implementation of mandatory national standards for key industrial products and special equipment that are safety-critical, ensuring these standards are as strong as possible. We aim to leverage standards to pioneer large-scale equipment updates and consumption product replacement programs.

Second, we will steadily expand institutional opening up for standards to enhance our performance in international competition and cooperation. We will establish a more open standardization system, actively participate in the governance of international standard organizations, strengthen the interactive development of standardization with technological innovation, and contribute more of China's visions to improving the international standard system. In combination with cooperation demands in industries, trade, engineering, etc., we will accelerate the compilation of foreign language versions of Chinese standards.

Third, we will implement a series of major signature projects to better leverage the role of standards in safeguarding the stability of industrial chains. We will focus on important industrial chains such as integrated circuits, industrial robots, and the large-scale application of the BeiDou Navigation Satellite System. We will develop technological standards for key areas such as artificial intelligence security and driving assistance systems. We will accelerate the conversion of independent technologies into independent standards and establish a standard system that adapts to industrial chains. Thank you.

Guangming Daily:

We have noted that last year, the SAMR released regulations on credit restoration for business operators. These regulations have played a positive role in assisting business entities to correct their mistakes and rebuild their credit. Could you please provide an introduction to this? Thank you.

Pu Chun:

This is a very important question, and I will answer it. In recent years, the SAMR has prioritized adhering to high-quality development in the new era. We have actively innovated institutional mechanisms, vigorously promoted credit restoration for business entities, and helped them improve their credit levels and market competitiveness, fully promoting high-quality economic development of China.

By the end of December 2023, market regulation departments across the country have restored 850,000 administrative punishment records for various business entities, restored 4.96 million pieces of information on the list of abnormal business operations, and resolved the abnormal status of 17.76 million individual businesses. These business entities were relieved from restrictions in tendering and bidding, investment and financing, and the awarding of honorary titles in accordance with the law, unleashing the vitality of business entities and creating a market-oriented, law-based and world-class business environment.

The SAMR has introduced the Administrative Measures for Credit Repair in Market Supervision and Management and the Regulations on Procedures for Credit Repair Regarding the Lists of Entities with Serious Acts of Bad Faith and Disclosed in Administrative Penalty Announcements (Trial Implementation). These measures aim to establish a credit repair framework that features hierarchical and categorized management with phased exits. Relying on the National Enterprise Credit Information Publicity System, we provided guidance for local authorities to establish and enhance online credit restoration systems, enabling credit restoration to be available online nationwide. This facilitates efficient and convenient credit restoration services for business entities. Extensive publicity and interpretation efforts have been conducted to enhance enterprises' awareness of credit restoration policies, guiding them to actively repair their credit and elevate their credit standing. Proactive guidance has been given to local market supervision departments to establish and improve mechanisms for information sharing and mutual recognition with the Credit China website, promoting mutual recognition and synchronization of credit restoration results, and contributing to the construction of a unified national market.

Market supervision departments in various regions have innovated their credit restoration mechanisms, continuously improving their service capabilities and levels. Shandong, Jiangxi, Yunnan, and Xizang have established a mechanism for the simultaneous delivery of administrative penalty decisions and credit restoration notifications, promptly informing business entities of credit restoration methods and procedures. Beijing and Yunnan have shortened the processing time for credit repair applications, efficiently assisting business entities in rebuilding their credit. Jiangsu has implemented personalized reminders for credit restoration, enhancing the precision of credit restoration services. Anhui has explored the implementation of three credit restoration models: "commitment with further delivery," "commitment for verification-free services," and "instant application, instant handling." These models use commitments to facilitate credit restoration. It also set up "credit restoration stations" to provide one-stop services for "registration" and "credit restoration." Active guidance is provided to local innovations in work mechanisms to enhance credit repair efficiency. Thank you.

CNR:

The recently revised Provisions of the State Council on the Declaration Standards for the Concentration of Business Operators have come into force. Could you please provide some background information and the main content of this revision? Moreover, what positive effects will it have in terms of stimulating the vitality of business entities? Thank you.

Xu Lefu:

Thank you for your concern about antitrust work. The declaration standards for business concentration are an important part of the antitrust review system. The Provisions of the State Council on the Declaration Standards for the Concentration of Business Operators, promulgated and implemented in 2008, set specific turnover thresholds for declaring business concentration. This has played a key role in clarifying businesses' obligations to declare, defining the scope of supervision, screening for competition risks, and improving the efficiency of antitrust reviews. As of the end of 2023, antitrust enforcement agencies under the State Council have concluded reviews of 5,789 cases of business concentration. Among these, three cases were prohibited, and 61 cases were approved with additional restrictive conditions, effectively preventing monopolistic behavior, maintaining a market environment of fair competition, and promoting the healthy development of the socialist market economy.

Over the past decade, as China's economy has continued to flourish, the turnover declaration criteria established in 2008 have become inadequate for promoting high-quality development. From 2008 to 2022, China's GDP grew from 31 trillion yuan to 121 trillion yuan, the number of corporate entities increased from 4.96 million to over 28 million, and the number of enterprises with annual turnover exceeding 400 million yuan rose from 32,800 to over 90,000. The number of business concentration declarations surged, reaching 867 in 2022, a tenfold increase from the 77 declarations in 2009. As a result, some small- and medium-sized business concentrations, which clearly did not have exclusionary or restrictive effects on competition, were included in the declaration scope, raising the institutional transaction costs of business concentration. Therefore, it is necessary to raise the declaration criteria. 

The new regulations have increased the global aggregate turnover threshold for participating operators in the concentration in the previous fiscal year from above 10 billion yuan to above 12 billion yuan, the aggregate turnover threshold in China from over 2 billion yuan to over 4 billion yuan, and the unilateral turnover threshold in China from above 400 million yuan to above 800 million yuan. Additionally, it is stipulated that the implementation of the revised standards will be evaluated in light of the economic development situation.

The new declaration criteria will offer at least two benefits to businesses. First, they will help reduce the costs of investment and merger and acquisition transactions for companies. According to estimates, the threshold increase will result in an annual average reduction of over 200 declarations for small- and medium-sized M&As, accounting for over 30% of all declarations. Second, the criteria will contribute to improving the overall efficiency of economic operations. With the higher declaration criteria, the efficiency of corporate investment and M&A activities will significantly improve, boosting market confidence and stimulating the vitality of business entities. This will further consolidate and enhance the positive momentum of China's economic recovery.

In the next step, the SAMR will focus on promoting and implementing the new regulations. While facilitating business declarations, it will efficiently conclude concentration cases with no anticompetition behavior in accordance with the law and address the adverse effects of concentrations on competition. This will help create a level playing field for various types of business entities, providing strong support for building a new development paradigm and promoting high-quality development.

Xinhua News Agency:

Last year, the CPC Central Committee and the State Council released the national outline of building a quality-powered nation. Could you brief us on the progress and achievements made by the SAMR in implementing the outline and promoting quality development? Thank you.

Liu Sanjiang:

Thank you for your question. Quality is the foundation of development, a benefit to the people and a strategy for strengthening the nation. Building China into a quality-powered nation is a crucial aspect of comprehensively advancing the noble cause of building China into a great modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts. The CPC Central Committee and the State Council issued the national outline of building a quality-powered nation, providing guidelines to take a coordinated approach in this regard. Since the release of the outline, various regions and departments have focused on the development goals, key tasks, and major projects, vigorously implementing them and achieving positive progress and accomplishments. To summarize, there are four main aspects as follows:

First, we've enhanced work mechanisms for product quality. Through restructuring, the State Council established the National Leading Group for Coordinating and Promoting Building China into a Quality-powered Nation, with the number of member departments increasing to 33. We conducted a central quality inspection and assessment for the first time, effectively strengthening the endeavor. Various localities also issued implementation documents tailored to their realities, promoting quality enhancement in provinces, regions and cities. We held comprehensive and multi-channel publicity activities, successfully hosting events such as the China Quality Conference in Chengdu and China's "Quality Month" campaign. The public's overall awareness of product quality has been further improved, and the collaborative effort to transform China into a quality-powered nation has been consistently consolidated. 

Second, we implemented actions to enhance quality. Eighteen departments jointly issued an action plan to further improve the quality of products, projects, and services, accelerating quality improvements and upgrades. The qualification rate of products in the manufacturing industry increased steadily to 93.65%, and the consistency of major consumer goods standards with international standards reached 96%. The satisfaction scores for life services and public services have risen to 78.01 and 79.85, respectively, placing them in the relatively satisfied range and moving more towards the satisfied range.

Third, we have strengthened quality and safety supervision. We have improved quality supervision systems, including risk monitoring, supervision, random inspections, and defect recalls, and addressed quality issues in over 20 key consumer products, such as firefighting products and gas stoves. Special operations like the "Double Punch" and "Iron Fist" campaigns were conducted to severely crack down on quality violations. In 2023, a total of 56,700 cases of quality violations were investigated and handled, resulting in the recall of 6.728 million defective vehicles and 10.42 million defective consumer products.

Fourth, we have solidified the foundation for quality infrastructure. We have issued guidelines and management measures for the construction of national quality standard laboratories, and the selection and construction work for the first batch has been initiated. A total of 192 national measurement benchmarks, 65,000 social public measurement standards, 877 national quality inspection centers, and over 1,400 comprehensive service platforms for quality infrastructure have been established. The total number of various standards has exceeded 3.3 million items, and the number of certified organizations for quality certification has surpassed 1 million, further highlighting the effectiveness of quality infrastructure services in supporting industrial and enterprise development.

Promoting quality development and building China into a quality-powered nation requires the active participation of the entire society, perseverance, and sustained efforts. In this regard, we hope the media will contribute more to quality publicity, creating a strong societal atmosphere that highly values quality and pursues high quality. Let's work together to advance this pursuit. Thank you.

China Daily:

The Central Economic Work Conference proposed implementing structural tax reduction and fee reduction policies. The SAMR recently announced the results and data of the previous stage of work related to enterprise fees. What arrangements and work plans does the administration have for managing arbitrary charges on enterprises in the future?

Ren Duanping:

Thank you for your question. The SAMR has steadfastly implemented the decisions and arrangements of the CPC Central Committee and the State Council, launching special rectification initiatives to combat unjustified charges levied on businesses for five consecutive years. Through regulatory law enforcement aimed at eliminating unjustified fees and rectifying disorder, a total of 320,000 charging units have been inspected, and over 18 billion yuan has been refunded to enterprises. Recently, in line with the Central Economic Work Conference's decisions and arrangements to implement structural tax and fee reduction policies and support scientific and technological innovation and the development of the manufacturing industry, the administration has conducted targeted surveys into some scientific and technological innovation and manufacturing enterprises. This effort comprehensively addresses the problems businesses face with enterprise-related charges, improving the relevance and effectiveness of managing enterprise-related fees.

During the surveys, enterprises reported noticeable improvements in the business environment after years of continuous rectification, and the collection of unjustifiable fees has been effectively curbed. However, scientific and technological innovation and manufacturing enterprises still have expectations for fee reduction and burden alleviation. For instance, these enterprises want to reduce the costs associated with protecting new inventions and technologies, hoping for a smoother commercialization of technological achievements with lower costs. Manufacturing enterprises are more focused on the progress of new projects and the renovation of equipment, seeking faster approval, lower financing costs, and more transparent charges for intermediary services. Additionally, enterprises have various demands regarding fair competition, electricity and energy consumption, transportation and logistics, industry associations, and other aspects.

Focusing on the sci-tech innovation and real concerns of manufacturing enterprises, we have carefully reviewed the relevant situation and will adopt targeted measures to respond to the needs of enterprises, and take practical steps to advance sci-tech innovation, boost the confidence of manufacturing enterprises, ensure their stable expectations and promote their growth. Next, the SAMR will prioritize work in the following three aspects:

First, we will carry out a special safeguarding campaign through market regulation. Giving priority to regulating charges on enterprises, we will step up our efforts to regulate charges on sci-tech innovation and manufacturing enterprises and strictly investigate and prosecute illegitimate charges on enterprises, to safeguard the healthy development of sci-tech innovation and the manufacturing industry, maintain a sound business environment and competition order, and ensure stable and smooth industrial and supply chains.

Second, we will improve services for sci-tech innovation and manufacturing enterprises. In response to the concerns of enterprises learned during inspections and surveys, we will enhance cooperation with the relevant authorities, develop positive interactions between oversight and law enforcement and policy formulation, promote the optimization of structural fee reduction policies, and strengthen coordination among departments, to form a synergy for governance.

Third, we will release guidelines on regulations for charges on enterprises. At present, the public is solicited on its opinions on rules for handling illegal charges on businesses, and we will release the rules in due course after making revisions and improvements based on the opinions of all parties. We will also accelerate the introduction of guidelines of compliance for charges on enterprises by industry associations and chambers of commerce in accordance with procedures. The SAMR will improve the quality and efficiency of institutional supply, and consolidate the results of regulating charges on enterprises. Thank you.

Xing Huina:

Last question, please.

Economic Daily:

While requiring the unleashing of consumption potential to promote the recovery of consumption, the central government also clearly stated that we should oppose waste and excessive consumption. We have noticed that the SAMR has done a great deal of work to curb food waste. Could you explain a little about this work? Thank you.

Pu Chun:

I'll answer this question. Food is of primary importance to the people. As the saying goes: "Consider how difficult it is to obtain rice and grain." Frugality is a traditional virtue of the Chinese nation and has consistently been the fine tradition of our Party. In 2023, the SAMR fully implemented General Secretary Xi Jinping's important instructions on curbing food waste, and launched a three-month nationwide campaign to curb food waste, achieving positive results. 

First, we have tightened regulations and strengthened inspections and law enforcement. Focusing on key areas including food delivery, wedding banquets, buffets, and canteens, we have launched campaigns such as random checks on restaurants and inspected 4.67 million canteens and restaurants, among which 78,100 were found to have food waste, with 92,000 problems rectified. We have strictly and quickly investigated, prosecuted and corrected illegal conduct including failing to actively and promptly remind customers when they order more food than they could eat, and encouraging and misleading customers into ordering excessive quantities of food. We have promoted procedures to simplify the handling of cases involving minor violations of the law. 29,800 cases were handled with orders for rectification and warnings, and 6,201 typical cases were published in a timely manner.

Second, we have focused on regulating services on food delivery platforms. We have worked with the Ministry of Commerce to issue the Guiding Opinions on Giving Play to the Leading Role of Online Catering Platforms and Effectively Preventing Delivery Food Waste," urged leading food delivery platforms to play an exemplary role, and guided them to take specific measures including whole-process reminders, giving detailed portion descriptions, adjusting the thresholds for discounts, promoting small portions of food, and establishing reward mechanisms for food conservation, thereby promoting the well-regulated and sound development of the food delivery industry. 

Third, we have continued to improve the long-term working mechanism. The SAMR published the Opinions on Further Improving the Work on Curbing Food Waste and put forward clear requirements on preventing food waste at wedding banquets together with the Office of the Spiritual Civilization Development Steering Commission and the Ministry of Civil Affairs. Since the launch of the special campaign last year, we have successively issued five national standards such as the General Rules for Anti-Food Waste Management in the Catering Industry and guided relevant industry associations to formulate six group standards. Local regions have also formulated and revised 111 relevant local standards and group standards.

Fourth, we have strengthened organization and guidance of publicity and education work. We have carried out anti-food waste activities in 371 universities to popularize information, launched a discussion using the hashtag #CleanPlatesAreVirtuous on Douyin, organized 28,700 large restaurant chains to remind their customers to reduce food waste, and guided localities to make 10.35 million publicity products, reaching more than 900 million people. We have advanced the publicity of relevant standards and laws on food waste prevention in various places, covering 55,000 catering service units and 130,000 employees. 

Curbing food waste cannot be accomplished overnight and we must make sustained and consistent efforts. We hope that everyone in society will take action to participate in, publicize and safeguard the "Clean Plate" campaign, fight together in the protracted battle against food waste, and foster a new social value where waste is seen as shameful and thriftiness is applauded. We also hope that journalists can raise awareness in this regard and jointly foster a sound atmosphere which advocates frugality and cherishing food. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to all the speakers and journalists here. Goodbye.

Translated and edited by Zhu Bochen, Qin Qi, Liu Jianing, Zhang Tingting, Wang Ziteng, Liu Caiyi, Mi Xingang, Xu Kailin, Wang Wei, Huang Shan, Zhang Rui, Li Huiru, Zhou Jing, Zhang Junmian, Wang Yanfang, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Wang Wentao, minister of commerce

Mr. Wang Shouwen, China international trade representative and vice minister of commerce

Ms. Guo Tingting, vice minister of commerce

Chairperson:

Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 26, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very pleased to have invited Mr. Wang Wentao, minister of commerce; Mr. Wang Shouwen, China international trade representative and vice minister of commerce; and Ms. Guo Tingting, vice minister of commerce, to brief you on seeking progress through stability and promoting stability with progress for new breakthroughs in high-quality commerce development, and to take your questions.

Now, I will give the floor to Mr. Wang Wentao for his introduction.

Wang Wentao:

Ladies and gentlemen, good afternoon. I am very happy to be attending this SCIO press conference to brief you on the business operations in 2023 and the work plans for implementing the deployments of the Central Economic Work Conference in 2024. First of all, on behalf of the Ministry of Commerce (MOFCOM), I would like to express my heartfelt thanks to everyone for your long-term concern and support for commercial work.

In the past year of 2023, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, united as one, and overcame difficulties to promote overall stable business operations throughout the year and take a step forward in high-quality development. I think this progress can be summed up simply using three terms:

The first is "ensuring stability." Our business work is all related to China's three drivers of growth: consumption, investment and net exports. Specifically, total retail sales of consumer goods reached unprecedented levels, with final consumer spending contributing 82.5% to economic growth in 2023. Building upon a robust starting point, we witnessed a positive upturn in foreign trade denominated in RMB. The share of our exports in the international market remained consistently stable at around 14%. Two-way investment also flourished, with the actual utilization of foreign capital marking the third-highest in history, and non-financial outbound direct investment increasing by 16.7% in RMB. On the whole, these areas maintained a stable foundation and made substantial contributions to the overall recovery of the national economy.

The second term is "improvement." This signifies the constant optimization of structures and the continuous enhancement of development quality and substance. For instance, in terms of consumption, online retail sales surged by 11%, maintaining a rapid growth rate, while service retail sales experienced a remarkable 20% increase, revealing substantial growth potential. In foreign trade, China's import and export proportion of intermediate goods reached 61.1%, marking a historical high. Notably, the import and export share of private enterprises increased by 3.1 percentage points, reaching 53.5%, firmly establishing their significant role. Foreign investment also witnessed an upswing in high-tech industries and manufacturing. The growth rate of foreign investment in manufacturing, wholesale and retail outpaced the average, while foreign investment collaboration in green, digital and blue industries continued to expand.

The third term is "empowerment." New development dynamics continued to emerge in various sectors. For instance, the share of online retail sales of physical goods in total retail sales reached a record high of 27.6%. Green, health and smart products as well as domestic "trendy products" have gained immense popularity, evolving into fresh patterns of consumer preferences. Notable achievements include a 50% increase in automobile exports and a 19.6% rise in cross-border e-commerce exports, both of which have emerged as new engines for foreign trade growth. The number of newly established foreign-funded enterprises surged by 39.7%, reflecting the enthusiasm of foreign investors to participate in opportunities within the Chinese market. There have also been new developments and breakthroughs, such as the successful completion of text negotiations for the World Trade Organization (WTO) Investment Facilitation for Development Agreement, which is the first major issue that China has taken the lead in at the WTO. We have signed or upgraded free trade agreements with four countries including Nicaragua. The release of China's inaugural plan on enhancing international economic and trade cooperation in digital and green fields received positive responses from more than 30 countries and international organizations.

This year marks the 75th anniversary of the founding of the People's Republic of China and holds paramount significance in achieving the goals and tasks outlined in the 14th Five-Year Plan (2021-2025). The MOFCOM will continue to adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee. We will implement the directives of the Central Economic Work Conference and the Central Conference on Work Relating to Foreign Affairs. Upholding the "three important" positioning, we will propel consumption from post-pandemic recovery to sustained expansion, fortify the foundations of foreign trade and investment, expand high-level opening-up to the global community, and through tangible actions and outcomes in high-quality business development, contribute positively to economic recovery and the promotion of Chinese modernization.

Now, my colleagues and I are ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang, for your introduction. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

ThePaper.cn:

In 2023, China's total foreign trade volume reached 41.76 trillion yuan, showcasing significant resilience. Global institutions generally anticipate increased uncertainties in the world's economic and trade development for 2024. What is your perspective on China's foreign trade situation in 2024? Additionally, could you elaborate on the policies and measures that the MOFCOM plans to implement to stabilize the development momentum of foreign trade? Thank you.

Wang Wentao:

Thank you for your questions. Since last year, under the strong leadership of the CPC Central Committee, we have concentrated on policy, entities, markets and other aspects. We have taken proactive and targeted measures to promote the overall stability of foreign trade operations. The scale of imports and exports reached 41.76 trillion yuan, achieving the goal of ensuring stability and enhancing quality. This accomplishment has been hard-earned and can be evaluated from three dimensions:

Looking from a longitudinal perspective, China's imports and exports achieved a positive growth of 0.2% compared to the high base of 2022, and an increase of over 30% compared to the pre-pandemic year of 2019. Especially, as mentioned earlier, our exports are expected to maintain a stable market share of around 14% in the international market.

Looking horizontally, the United Nations Conference on Trade and Development estimated that global trade in goods likely declined by 7.5% in 2023. In comparison, China's foreign trade performance was better than the global average and that of most major economies.

Upon closer examination, the structure of foreign trade has continuously been optimized, with two notable breakthroughs. First, China's exports of "new three" products — new energy vehicles, photovoltaic products, and lithium-ion batteries — surpassed 1 trillion yuan for the first time, with a growth of nearly 30%. This indicates a continuous improvement in the structure of our export commodities. Second, the number of business entities engaged in real import and export activities topped 600,000 for the first time, reaching 645,000. This demonstrates the continuous growth and optimization of foreign trade entities.

You just asked about the outlook for 2024, which is a question that everyone is concerned about. In general, this year, the development of China's foreign trade will face a more complex and challenging external situation. On the one hand, there is weak demand, and the global economy is still sluggish. The International Monetary Fund predicted that global economic growth will decrease to 2.9%. On the other hand, the environment is unfavorable, with rising trade protectionism and increasing geopolitical conflicts. There is a significant increase in spill-over risks. For example, the recent disruption in the Red Sea shipping channel has disrupted international trade. However, it is important to recognize that China's foreign trade development still has many favorable conditions. For example, the competitiveness of the foreign trade industry continues to improve, new business formats and models are flourishing, and digitalization and green development are accelerating. We have confidence and determination in implementing the arrangements made at the Central Economic Work Conference and consolidating the foundation of foreign trade and foreign investment. Specifically, our work will focus on four aspects:

First, we will promptly introduce new policies. The earlier these policies and measures are implemented, the greater their impact will be. Last April, we formulated policies aimed at stabilizing the scale and optimizing the structure of foreign trade, which have yielded positive results. We will continue to ensure their effective implementation. Additionally, in line with the new situation and tasks for this year, we will conduct policy research and add more tools to our toolbox. We recently conducted a survey to understand the suggestions and demands from localities and enterprises. Currently, we are actively conducting a new round of policy research and evaluations, with the aim of releasing new policies as soon as possible. These policies will be combined with existing ones to form a package so that they will have a synergistic effect to the largest extent.

Second, we will accelerate the cultivation of new growth drivers. Specifically, we will enhance the competitiveness of our industries. Leveraging our advantages, such as our complete industrial foundation and comprehensive manufacturing sector, we will expand trade in raw materials, semi-finished products, components, and other intermediate goods. We will seek vitality through innovation, promoting the development of new business formats and models in areas such as cross-border e-commerce, bonded maintenance, and market procurement. We will draw motivation from reforms, establishing an import and export catalog of green and low-carbon products, accelerating the digitalization of international trade documents, and driving green trade development and full-chain digital transformation.

Third, we will assist in exploring new markets. In the foreign trade industry, there is a saying: "A thousand emails are not as effective as one face-to-face meeting." Therefore, we will continue to organize important expos such as the Canton Fair and the China International Fair for Trade in Services. We will actively support companies in participating in overseas exhibitions and promote cross-border business personnel exchanges. We will create more opportunities for communication and exchanges between enterprises, helping them better connect with markets and customers and strive to secure more orders.

Fourth, we will unleash new potential for imports. We not only aim to expand exports but also to increase imports. The market is the most scarce resource, and China's super-large-scale market advantage provides vast market space and cooperation opportunities for enterprises from various countries. We will expand imports of high-quality consumer goods, advanced technologies, important equipment, and key components. We will also increase imports of energy and resource products as well as domestically scarce agricultural products. We will leverage platforms such as the China International Import Expo to enhance diversified import channels and improve the facilitation of import trade. We will also foster the development of national import trade promotion and innovation demonstration zones. The goal of these efforts is to transform China's super-large-scale market into a shared global market, injecting new momentum into the development of our national economy and the global economic recovery. Thank you.

Bloomberg:

My question is about foreign investment in China. Recently, the Chinese government introduced 24 measures aimed at expanding efforts to attract foreign investment. Not long ago, a representative from the Japanese Chamber of Commerce and Industry in China mentioned that while the Chinese government has made efforts to ensure personal income tax reductions and facilitate visa applications, there are still specific issues in other areas that have not been implemented. Additionally, there are no further detailed rules regarding the new regulations on cross-border data transmission. What measures will the MOFCOM take to address the concerns of businesses in these areas?

Wang Wentao:

Last year, the State Council issued the Opinions on Further Optimizing the Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment, commonly referred to as the "24 Measures to Attract Foreign Investment." After the release of these measures, the MOFCOM, together with relevant departments and local governments, further refined work tasks, implemented measures, and set timelines. We also conducted promotion and interpretation through press conferences, roundtable meetings with foreign-invested enterprises, and other events. Many journalists present here also contributed to the extensive promotion and introduction of these measures.

You just asked about the implementation of these measures. I would like to first provide an introduction to friends from the media. The guidelines to further optimize China's foreign investment environment and beef up foreign investment inflow contain 59 specific policies and measures. Over the past five months, we have worked hard with relevant departments to advance their implementation. Overall, over 60% of the policies and measures have been implemented or made positive progress. To be specific, among 59 policies and measures, we have completed 10 items, made phased progress in the implementation of 28 items, and continued to advance the implementation of 21 items. Just as you mentioned, policies such as tax exemption for foreign personal allowances and benefits and tax refunds for foreign-funded R&D institutions purchasing Chinese-made equipment have been extended until the end of 2027. For another example, the new version of the foreign permanent resident ID card has been officially put into use, and the guide for foreign businesspeople working and living in China has been released. These measures have facilitated travel, life, and consumption for foreign friends in China.

With regard to the regulations you mentioned to regulate and promote cross-border data flows, what I can tell you is that our competent authorities are driving forward the issuance of these regulations. Concerning 59 policies of the guidelines, local governments are also making supporting implementation arrangements and introducing some policies based on the characteristics of local foreign-funded enterprises.

I would also like to point out that foreign-funded enterprises have the best say on how these measures are implemented and whether they are effective. We are now making assessments by means of questionnaires and symposiums to get to know the real thoughts of foreign-funded enterprises. At present, over 90% of foreign-funded enterprises have given positive feedback. Of course, they also raise many opinions and expectations. We have attached great importance to them and will work on them in our follow-up work. The MOFCOM will continue to accelerate the implementation of these measures and release information about the work concerning government procurement, standard formulation, and investment facilitation, which are of general concern to foreign-funded enterprises, in a timely manner. Here, I would like to tell you that whatever difficulties and problems foreign-funded enterprises encounter, they can report them to the MOFCOM through at least three channels. The first one is the special work group on key foreign capital programs; the second one is the roundtable meeting of foreign-funded enterprises; and the third one is the online system for the collection and handling of problems and appeals of foreign-funded enterprises. We will actively promote the solution of these problems and the implementation of relevant policies and measures.

Thank you.

Nanfang Daily, Nanfang+:

In 2023, the Regional Comprehensive Economic Partnership (RCEP) entered into full effect. China signed free trade agreements with many countries and continued to enlarge its circle of friends via free trade. What progress has been made by China in the development of its free trade areas? What follow-up measures will be taken by the MOFCOM to advance the high-standard development of free trade areas? Thank you.

Wang Shouwen:

Thank you for your questions. General Secretary Xi Jinping put forward that we should expand the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. The MOFCOM has resolutely implemented the decisions and plans of the CPC Central Committee and adopted a series of measures last year, achieving good results. 

First of all, just as Mr. Wang mentioned, in 2023, we made a new record in terms of the negotiation and signing of free trade agreements. We have recently signed four agreements, including free trade agreements with Ecuador, Nicaragua, and Serbia, and the protocol on further upgrading the free trade agreement with Singapore. We have also completed negotiations on the early harvest arrangements for the free trade agreement with Honduras. As of today, we have signed 22 free trade agreements with 29 countries and regions, accounting for about one-third of China's total foreign trade volume.

In terms of the content of the free trade agreement, new progress has been achieved concerning high standards. For example, China committed to a negative-list model of services and investment opening-up by signing an FTA with Nicaragua and reaching a protocol to further upgrade the FTA with Singapore, which marked a historic moment in China's FTA negotiation history. In addition, free trade agreement negotiations at present all include cooperation on standards, including digitization of trade documentation.

The RCEP you just mentioned is indeed worth highlighting in our introduction. RCEP has been in effect for two years, and it has brought tangible benefits to Chinese enterprises and our free-trade agreement partners. Last year, the trade volume of China with other 14 RCEP member countries reached 12.6 trillion yuan, up 5.3% from 2021 before the agreement came into force. China's exports to RCEP member countries increased by 16.6%, 4.6 percentage points higher than the growth rate of China's total exports over the same period. What is worth mentioning is that China's exports of NEVs, lithium-ion batteries, and photovoltaic products have a more impressive performance.

In terms of tariff reduction and exemption, under the framework of the RCEP agreement, tariff concessions on import products for Chinese enterprises amounted to 2.36 billion yuan last year. While enterprises of RCEP countries benefited from 4.05 billion yuan of tax breaks for products imported from China in 2023. Clearly, that's the result of mutual benefits. We have also helped local enterprises and industries to enjoy the benefits brought by these free trade agreements. 

At the same time, we have actively worked towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). On Aug. 18, 2022, China set up a working group to advance talks on joining the DEPA . We have completed over 10 rounds of negotiations at the ministerial level, bureau level, and technical level. Mr. Wang has had full exchanges with ministers of DEPA member countries, and primary discussions of all items have now been completed.

This year, it can be said that we will have a richer agenda for our free trade agreement negotiations. We will strive to complete the negotiations on the China-ASEAN Free Trade Agreement 3.0, which will be held in Hangzhou next week. We will also complete the negotiation with Honduras, negotiations with Peru about the upgrading of our free trade agreement, and continue to work towards joining the CPTPP and DEPA.

In addition, we will launch negotiations on free trade or upgrading free trade agreements with the Gulf Cooperation Council, New Zealand, South Korea, and Switzerland to further implement the requirement of expanding the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. 

In terms of high standards, we will also add some new content, including raising the proportion of zero-tariff treatment in trade in goods; promoting negative-list model of services and investment opening-up, including the opening up of telecommunications, health care, and other service industries; expanding market access for digital and other products; and incorporating high-standard economic and trade rules concerning digital economy, green economy, and standard certification, and government procurement into new free trade negotiations.

Thank you for your questions.

CCTV:

We have noticed that at the National Business Work Conference, the MOFCOM proposed focusing this year on the "Year of Consumption Boost" to promote the continued expansion of consumption. Could you provide a detailed introduction to the relevant situation? Thank you.

Wang Wentao:

I will answer this question. Thank you for your interest in business work, especially in consumption promotion. The issue you raised concerns the "Year of Consumption Boost" and the aim to continually expand consumption. I will offer a detailed introduction to our plans.

First, we will ensure the success of a series of activities themed "Year of Consumption Boost." Last year, we organized numerous activities centered on the recovery and expansion of consumption, achieving significant results. This year, adhering to the keyword "sustained expansion," as mentioned at the Central Economic Work Conference, we aim to enhance the rebound momentum of the consumer market. We have designated this year as the "Year of Consumption Boost" following last year's designation as the "Year of Consumption Promotion." Focusing on the keywords of "sustained expansion," we will collaborate with relevant departments and other parties to organize various consumption promotion activities. These initiatives will create a strong consumption atmosphere and provide residents with diverse and richer consumption experiences. For example, we plan to spotlight the festive season, combining traditional festivals, public holidays, and other peak consumption periods, and organize activities such as an online Spring Festival-themed shopping fair, a digital agricultural promotion fair, and an ice and snow consumption season. The online Spring Festival-themed shopping fair is currently underway, and we invite everyone to participate. Additionally, we will highlight local characteristics, guiding and supporting each region to leverage its unique advantages. This will involve combining local characteristics and folk customs to cultivate iconic event brands, such as the Beijing-Tianjin-Hebei Consumption Season , Shanghai's "May 5 Shopping Festival ", Zhejiang's "Zheli Lai Xiaofei" or "Shopping in Zhejiang" campaign, and the "Love Chongqing " consumption campaign, among others, to boost spending.

Second, we will promote the trade-in of cars, home appliances, etc. This is a key point in promoting consumption this year. According to statistics, China's automobile and home appliance markets have transitioned from a pure "era of increment" to an "era that emphasizes both increment and stock." In 2023, there were about 340 million cars in existence, and the number of major categories of home appliances, such as refrigerators, washing machines, and air conditioners, exceeded 3 billion. Some home appliances have been used for more than 10 or 20 years, and there is a great demand and potential for replacement. At the same time, we have also observed a systematic trajectory for the replacement of old consumer goods such as automobiles and home appliances, requiring coordinated integration and comprehensive policies across production, supply and marketing, upstream and downstream industries, government, enterprises, and consumers, as well as online and offline channels. We will strengthen support and guidance, take the improvement of technology, energy consumption, emissions, and other standards as the driving force, remove difficulties and bottlenecks in replacing old products with new products, and stabilize and expand traditional consumption to better meet the needs of replacing and upgrading consumer goods. All of this will be carried out based on respecting the wishes of consumers.

Third, we will promote the consumption of "China-chic" domestic products. Nowadays, high-quality products designed and made in China embody the national spirit and fine Chinese traditional culture, while "trendy products" represent the trend of fashion and quality consumption. We have observed that the crossover collision and integration of domestic products with trendy products have stimulated a new consumption focus in people's lives. The MOFCOM will continue to focus on the consumption of domestic trendy products and has carried out a series of related activities. For example, since 2006, we have been recognizing China's time-honored brands. Last year, we improved the dynamic rotation management mechanism by eliminating long-underperforming brands while also planning to incorporate new ones. In accordance with relevant regulations and standards, we plan to identify a new group of more than 300 Chinese time-honored brands. Many products from these brands are well-known domestic goods to us. In response to the fashionable, customized, and personalized needs of consumers, they have launched many trendy products that are deeply loved by consumers, especially modern young people. This year, we will also organize the "Time-honored Brands Carnival" and the "Time-honored Brands Digital Museum." Through these methods, we aim to promote the protection, inheritance, and innovative development of time-honored brands, laying a solid cultural and commercial foundation for the consumption of "China-chic" products.

Fourth, we will continue to optimize the consumption environment. The consumption environment and the development of circulation facilities differ between urban and rural areas in China, necessitating different methods, policy guidance and promotion. In cities, we will continue to promote the cultivation and construction of international consumption centers, gradually improve the urban commercial system led by pedestrian streets, supported by smart business districts, and based on convenient living areas, and continuously improve the consumption capacity of cities. In rural areas, we will thoroughly implement the three-year action plan aiming to strengthen the nation's county-level commerce system , accelerate the shoring up of weak links in rural commerce, build a well-equipped and smooth two-way rural circulation network, encourage industrial products to go to the countryside and agricultural products to go to the city, and continue to release rural consumption potential.

Thank you.

CNBC:

The scale of foreign investment attracted by China declined in 2023. What are the main reasons for this? What measures will the MOFCOM take to attract more foreign investment this year? What areas will the MOFCOM pay more attention to? Thank you.

Wang Wentao:

Thank you for your questions. These are pressing questions that everyone is closely monitoring. I will elaborate on them.

Domestic and international media have closely monitored fluctuations in the scale of China's foreign investment attraction, with many reports on the subject. First, instead of delving into a series of data analyses, let me start with perspective and vision. What I want to emphasize is that this issue should be observed and analyzed from multiple perspectives. Premier Li Qiang, in a recent speech in Davos, mentioned that one must broaden their vision and take a panoramic view to see the whole picture in an objective and comprehensive manner . This is how I will answer your question.

If we take a longer-term perspective, China's foreign investment scale has remained high in recent years. Last year, China actually utilized foreign investment of $163.25 billion, equivalent to 11.3 trillion yuan. Although this was a year-on-year decline, the scale was only surpassed by two exceptional years, 2021 and 2022, ranking as the third highest in history.

From a structural analysis perspective, we look not only at the numbers but also at the structure of foreign investment, which involves analyzing its quality. The structure of foreign investment in China has continuously been optimized, with the proportion of high-tech industries reaching 37.4%, up 1.3 percentage points from 2022, reaching a historical high. In particular, the proportion of foreign investment in the manufacturing sector has increased by 1.6 percentage points to 27.9%. However, the rankings of countries can be influenced by certain foreign projects, especially large-scale projects from specific nations, introducing a level of uncertainty. Looking at the country-specific investment situation in 2023, developed countries such as Canada, the United Kingdom, France, Switzerland, and the Netherlands have significantly increased their investments in China. The number of newly established foreign-funded enterprises in China from the European Union, the United States, and Japan has also seen growth.

As mentioned earlier, short-term foreign investment data may experience fluctuations. This is a normal phenomenon in accordance with economic laws. In particular, the implementation of large-scale projects often affects the fluctuations of the current and following years. The fundamental strength of China's long-term economic growth remains unchanged, especially with China's commitment to the fundamental national policy of opening up to the outside world. China has always embraced an open attitude and sincerely welcomes enterprises from all countries to invest in China. We firmly believe China will continue to be a popular destination for foreign investment.

Last year, following central deployments, the MOFCOM conducted the "Invest in China" campaign to attract foreign investment. Throughout the year, we hosted 20 key events and facilitated over 600 supporting activities in various regions. These efforts led to the signing of several major projects and resolved numerous issues. We also established a system of roundtable meetings with foreign-funded enterprises to enhance regular communication and exchange with them and foreign business associations. At the ministerial level, my colleagues and I organized 15 roundtable meetings last year, with the participation of over 400 foreign-funded enterprises and foreign business associations. Through face-to-face interactions, we gained insights into the suggestions and needs of these enterprises and continued to work towards resolving their issues. We have also heard from some foreign-funded enterprises that these activities not only address specific issues but also demonstrate China's determination to openness and its welcoming attitude toward foreign investment. They have also recognized the pragmatic and efficient approach of the Chinese government, which has further strengthened their confidence in the Chinese market and economy. Some foreign-funded enterprises have asked where the next "China" will be. However, they firmly believe that the "next China" will still be China. They will continue to choose China and establish their businesses here.

Building on last year's "Invest in China" campaign, we are continuing to develop the "Invest in China" brand this year. We have preliminary plans to organize over 20 investment promotion activities, both domestically and internationally. These activities will include a flagship event, the 2024 "Invest in China" Summit, as well as 10 overseas activities and 12 domestic activities. We will support local governments in hosting complementary events under the "Invest in China" brand, leveraging their regional advantages, resource endowments, and industrial characteristics. This coordinated approach will create a unified national investment promotion strategy. Many of you in the media have shown interest in or reported on the "Invest in China" campaign last year. We kindly request your continued coverage of our "Invest in China" brand series of activities this year. We hope you will provide comprehensive and in-depth reporting to enhance the impact of these events.

In addition to building the "Invest in China" brand, we will continue implementing the 24-point guidelines for attracting foreign investment introduced last year. Our efforts will focus on easing access to foreign investment, continuously optimizing the investment environment for foreign businesses, and effectively utilizing the Foreign-Funded Enterprises Roundtable Meetings. We will also maintain the system for gathering and responding to the concerns and needs of foreign-funded enterprises. The Foreign-Funded Enterprises Roundtable Meetings have now been institutionalized, with a monthly schedule in place. These meetings will cover different industries, regions, or countries, totaling 12 sessions. Our aim is to make these roundtable meetings a platform for open and practical communication and exchanges with foreign-funded enterprises.

Yesterday afternoon, I had a discussion with a Japanese business delegation visiting China. They all expressed their hope for a secure and reassuring environment to develop in China. We are also willing to ensure a secure and reassuring environment for all foreign-funded enterprises, including Japanese companies, to develop in China. In other words, we are committed to making efforts to realize the vision put forward by foreign-funded enterprises that the "next China" will still be China. Thank you all.

Hong Kong Bauhinia Magazine:

Chinese President Xi Jinping announced eight actions to promote the high-quality development of the Belt and Road Initiative at the third Belt and Road Forum for International Cooperation (BRF). May I ask what new considerations and measures the MOFCOM has in place to implement and deepen mutually beneficial cooperation with Belt and Road partner countries? Thank you.

Guo Tingting:

Thank you for your question. In last October, the third BRF was successfully held in Beijing. Chinese President Xi Jinping delivered an important speech and announced eight actions to promote the high-quality development of the Belt and Road Initiative. This has set the direction and provided fundamental guidance for the next "golden decade" of Belt and Road cooperation.

Over the past year, the MOFCOM, in collaboration with relevant parties, has made substantial efforts to promote new progress and achievements in Belt and Road economic and trade cooperation. This can be summarized in three main aspects:

First, the scale has steadily expanded. In 2023, the total merchandise trade volume between China and Belt and Road partner countries reached 19.5 trillion yuan, up 2.8%. This accounted for 46.6% of China's total foreign trade, an increase of 1.2 percentage points. Our non-financial direct investment in Belt and Road partner countries amounted to 224.09 billion yuan, growing by 28.4%. The turnover of contracted projects reached 930.5 billion yuan, showing a 9.8% increase.

Second, the quality has continuously improved. The turnover of contracted projects in energy conservation and environmental protection sectors has increased by 28.3% among BRI partner countries. A batch of signature projects and small-scale yet impactful programs have been successfully promoted, with the implementation of nearly 700 various assistance projects among these countries.

Third, cooperation has become more tight-knit. During the third BRF, we successfully held the thematic forum on trade connectivity, and launched the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development alongside more than 30 countries. Twenty-three memorandums of investment and cooperation in green, digital and marine sectors were signed last year. So far, we have set up trade connectivity working groups with 22 BRI partner countries and working groups on investment and cooperation with 55 BRI partner countries, and signed MoUs on e-commerce cooperation with 30 countries.

In the next steps, we will fully implement the guiding principles of President Xi Jinping's speeches and focus on carrying out eight major steps, adding more substance to BRI economic and trade cooperation. Next, we will deepen our work in four aspects.

First is to deepen trade and investment cooperation. In trade, we will actively expand the import of quality goods from BRI partner countries, enhancing the balanced development of trade. We will expand trade in services in a positive manner and better leverage the trade corridors such as the China-Europe Railway Express and the New International Land-Sea Trade Corridor. In investment, as Mr. Wang Wentao introduced earlier how to deliver a satisfactory performance in the work related to foreign investment, we will provide environment and services with higher quality for investment from BRI partner countries, sharing China's development opportunities with BRI partner countries. At the same time, we will encourage enterprises to develop new ways for outbound investments, including expanding the tri-party and multiparty market cooperation and improving and upgrading overseas economic and trade cooperation zones.

Second is to promote the construction of cooperation projects. We will promote both signature projects and "small-scale yet impactful" livelihood programs. We will enhance communication with BRI partner countries, and advance joint infrastructure projects in fields such as energy, transportation, and communication, building a multidimensional Belt and Road connectivity network. Additionally, we will focus on health, education, environment protection, and poverty reduction, and promote the completion of more projects benefiting local people, boosting the economic and social development of BRI partner countries.

Third is to explore new areas of cooperation. In green development, for example, we will continuously make ‘green' a defining feature of the Belt and Road Initiative, sign memorandums of investment cooperation on green development with more countries, and encourage enterprises to carry out further practical cooperation in fields such as green infrastructure, green energy, and green transportation. In the digital field, we will expand e-commerce cooperation with BRI partner countries, accelerate the construction of pilot zones for Silk Road e-commerce cooperation, and ensure the success of the third Global Digital Trade Expo .

Fourth is to deepen the implementation of cooperation achievements. We will strive to implement the outcomes of the third BRF and carry out and promote the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development . We will advance the construction of the pioneering zone for in-depth China-Africa trade and economic cooperation and build joint demonstration zones for innovative development of economy and trade with ASEAN countries. Furthermore, we will enter into or upgrade free trade agreements and investment protection treaties with more BRI partner countries, providing strengthened institutional safeguards for high-quality Belt and Road cooperation.

Thank you.

Market News International:

In 2024, does the Ministry of Commerce expect any progress in China's application to join the CPTPP? And what new measures will the Ministry of Commerce take this year to support China's application? Thank you. 

Wang Shouwen:

Thank you for your questions. We highly value China's application for CPTPP and have organized relevant departments and industries to carry out full, encompassing, and deep evaluations on all terms within CPTPP. We have also conducted comprehensive, in-depth, and abundant research on CPTPP's rules with regard to trade in goods and services and investment. We conclude that we are confident and able to meet CPTPP's high standards. Therefore, last year we prepared a document for the application, making introduction and interpretation on matters involving all obligations of the CPTPP from our position. We have presented the document to all CPTPP member countries.

You asked about our measures this year. First, we will proceed to conduct in-depth communication with CPTPP member countries at all levels, including in-depth communication in multilateral international conferences like G20 and APEC. Second, in 2023, following the decisions and deployment of the CPC Central Committee and the State Council, and aligning with high-standard international economic and trade rules, including those within CPTPP, we have released two important documents, including measures on promoting institutional opening-up in eligible pilot free trade zones and the free trade port in line with high-standard international economic and trade rules and an overall plan for promoting the high-standard institutional opening-up of China (Shanghai) Pilot Free Trade Zone in line with high-standard international economic and trade rules . Emphasizing these high international standards, we have formulated measures for domestic institutional opening-up for practices in China. If effective, we will replicate and apply these practices elsewhere. Therefore, we will enhance international communication and advance domestic pilot practices. I believe our conditions for joining CPTPP will be right this year.

Phoenix TV:

At last year's summit meeting in San Francisco, the Chinese and U.S. presidents fostered a future-oriented San Francisco vision . We have also noted that the MOFCOM and its U.S. counterpart established a multi-tiered communication and exchange mechanism last year. How does the MOFCOM view the trend of Sino-U.S. economic and trade relations for this year? What specific considerations are there for the economic and trade cooperation? Thank you.

Wang Wentao:

I'll answer your questions. This year marks the 45th anniversary of the establishment of diplomatic relations between China and the U.S. Looking back, bilateral trade has grown by more than 200 times during the past 45 years, with two-way investment stock exceeding $260 billion. According to our statistics, over 70,000 American enterprises have invested and operated in China. China and the U.S., being the world's largest developing and developed countries, respectively, are each other's important trade partners, with two-way trade and investments surging and the industrial and supply chains closely integrated. Sino-U.S. economic and trade collaboration has expanded from a singular focus to various sectors of the economy, contributing substantially to the economic and social development of both countries as well as the well-being of the two peoples. 

The Chinese and U.S. presidents met in San Francisco last November, fostering a future-oriented San Francisco vision . This has pointed to the direction for the development of bilateral economic and trade relations and greatly bolstered the confidence and expectations of the business communities in both countries in engaging in economic and trade cooperation. We always believe that the common interests of China and the U.S. in economic and trade sectors far outweigh our differences. Both parties should enhance dialogues and exchanges, work to help enterprises address various challenges encountered in practical economic and trade cooperation, and explore the potential of such collaboration. For example, many enterprises from the two countries, especially those from the U.S., have expressed that their main concerns relate to the current state of Sino-U.S. relations, worrying about the politicization of economic and trade issues. If "de-risking" is to be executed, this is the greatest risk, without doubt, as some American enterprises told us. They also expressed hope that I could share their concern with my American counterpart on an appropriate occasion. In addition, the enterprises are concerned about some other issues, including a substantial increase in operational costs due to additional tariffs and obstacles to market access due to two-way investment limitations. Sanctions have posed uncertainties to enterprises and their partners, highly elevating their compliance costs. These are all issues both sides need to discuss in the future and work to resolve. We are sincerely committed to driving the resolution of issues that concern businesses.

Next, China is willing to faithfully implement the San Francisco vision with the U.S. and fully leverage the communication and exchange mechanism developed by the MOFCOM and its U.S. counterpart and the export control information communication mechanism. The former mechanism includes ministerial talks, biannual, vice-ministerial conferences, and monthly negotiations at the director level. The two countries should maintain regular communication, properly manage differences, strengthen mutual understanding and trust, promote practical cooperation, and strive to create a favorable environment for economic and trade cooperation, especially the stability of enterprises. 

Thank you.

Shou Xiaoli:

Due to the limited time, the last question, please.

Southern Metropolis Daily:

China's cross-border e-commerce imports and exports maintained rapid growth in 2023. What were their overall characteristics? The Central Economic Work Conference emphasized the expansion of cross-border e-commerce exports. To this end, what specific measures will the MOFCOM take this year?

Wang Shouwen:

Thank you for your questions. General Secretary Xi Jinping underscored the promotion of the accelerated development of cross-border e-commerce and other new business forms and models. Cross-border e-commerce is one of the new growth drivers of foreign trade. Just now, Mr. Wang Wentao introduced that cross-border e-commerce played a crucial role in China's positive growth in foreign trade last year. China's cross-border e-commerce imports and exports recorded 2.38 trillion yuan last year, an increase of 15.6% and 15.4 percentage points higher than the nation's overall growth rate of imports and exports.

The entities of cross-border e-commerce are constantly expanding. Preliminary statistics indicate that there are now 645,000 enterprises across China with actual imports and export performance, among which more than 10,000 are cross-border e-commerce players. This represents a remarkable force. 

Our cross-border e-commerce ecosystem is continuously improving. Previously, well-known cross-border e-commerce platform companies were predominantly from the U.S. Now China also boasts powerful and renowned cross-border e-commerce platforms, with their app downloads ranking among the top globally. We also have mature platforms and overseas warehouses. By the end of last year, we had 1,800 overseas warehouses and 255 all-cargo airplanes, an increase of more than 200 and 32 from 2022, respectively.   

Additionally, we have made marked progress in brand building. For instance, one notable aspect of cross-border e-commerce lies in its direct engagement with foreign consumers, bypassing intermediaries and directly presenting the brands of Chinese export businesses. By the end of last year, the number of overseas trademarks we registered exceeded 30,000, up from 20,000 by the end of 2022. 

This year, we will continue to nurture cross-border e-commerce as a new growth driver for foreign trade. The measures are as follows: First, we will introduce "Measures for Expanding Cross-Border E-Commerce and Promoting the Development of Overseas Warehouses." Second, we will develop "cross-border e-commerce plus industrial belts," encourage traditional foreign trade enterprises to transition into cross-border e-commerce, support leading enterprises in driving the coordinated development of upstream and downstream supply chains, and incubate more startups based on the cross-border e-commerce industrial parks nationwide. Third, we will strengthen industry exchanges and training. Yesterday, we organized an on-site meeting for cross-border e-commerce overseas warehouses in Shenzhen, inviting representatives from government departments, the industry, and cross-border e-commerce enterprises for discussion. This year, we plan to intensify training efforts to train 100,000 individuals. Fourth, we will promote the issuance of the "Guidelines for Cross-Border E-Commerce Intellectual Property Protection." In the development of cross-border e-commerce, we aim to ensure the protection of intellectual property in all links of the first stage, the last stage, payment, marketing, and overseas warehousing. Ms. Guo just mentioned the Belt and Road cooperation. Cross-border e-commerce represents an important part of cooperation with Belt and Road partner countries. We will support international exchanges within cross-border e-commerce integrated pilot zones and pilot zones for Silk Road e-commerce cooperation . We believe that cross-border e-commerce will play a more significant role as a new growth driver for foreign trade. Thank you. 

Shou Xiaoli:

Thanks to all the speakers and friends from the media. Today's press conference is hereby concluded. Goodbye! 

Translated and edited by Wang Yiming, Wang Qian, Zhang Rui, Wang Wei, Xu Kailin, Yang Xi, Yan Bin, Liu Caiyi, Li Huiru, Wang Ziteng, Wang Yanfang, Ma Yujia, Xu Xiaoxuan, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA)

Mr. Li Mingxiao, spokesperson of the NFRA and director general of the Policy Research Department of the NFRA 

Mr. Liu Zhiqing, spokesperson of the NFRA and a person in charge of the Statistics and Risk Surveillance Department of the NFRA

Mr. Guo Wuping, director general of the Financial Inclusion Department of the NFRA

Mr. Yin Jiang'ao, a person in charge of the Property and Casualty Insurance Supervision Department of the NFRA

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 25, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA), who will brief you on how the financial sector contributes to the high-quality development of economy and society, and take your questions. Also present today are Mr. Li Mingxiao, spokesperson of the NFRA and director general of the Policy Research Department of the NFRA; Mr. Liu Zhiqing, spokesperson of the NFRA and a person in charge of the Statistics and Risk Surveillance Department of the NFRA; Mr. Guo Wuping, director general of the Financial Inclusion Department of the NFRA; and Mr. Yin Jiang'ao, a person in charge of the Property and Casualty Insurance Supervision Department of the NFRA. 

Now, let's give the floor to Mr. Xiao for his introduction. 

Xiao Yuanqi:

Thank you, Ms. Xing. Ladies and gentlemen, greetings to you all. I'm very pleased to have this opportunity today to speak with you. My colleagues and I are happy to answer your questions, and we'd like to express our gratitude to you for your great support and care for the financial regulation work and the development of the financial sector. Now, I'll give a brief introduction. 

The NFRA adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and comprehensively implements the guiding principles of the 20th National Congress of the Communist Party of China (CPC) and the second plenary session of the 20th CPC Central Committee. We have thoroughly studied, taken on board and executed the guiding principles of the Central Financial Work Conference, the Central Economic Work Conference, and the important speech delivered by General Secretary Xi Jinping at a study session on promoting high-quality development of finance, attended by principal officials at the provincial and ministerial level at the Party School of the CPC Central Committee (National Academy of Governance). Following the principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old, we fully and faithfully apply the new development philosophy on all fronts and accelerate efforts to foster a new pattern of development, in a bid to vigorously promote high-quality economic and financial development.  

We adhere to the CPC Central Committee's centralized, unified leadership over the financial work. We will ensure that the financial work maintains political integrity and people-centeredness, and constantly deepen reform of the financial management system and the exercise of full and rigorous Party self-governance. By doing so, we aim to ensure that we will advance the financial work in the right direction and effectively implement the major decisions made by the CPC Central Committee regarding this sector. 

We abide by the fundamental purpose of the financial sector supporting the real economy. We will continuously satisfy the financial needs in economic and social development as well as the public's ever-growing demands for finance, and work to safeguard the legitimate rights and interests of financial consumers. In addition, we will actively provide support to expand effective demands and investments that generate returns, guarantee the financing needs of major projects and those for the people's well-being, and contribute to integrated urban-rural development and coordinated regional development. We will increase support for the manufacturing industry, emerging strategic industries, and science and innovation sectors. We will improve the green financial system, and support the building of a green, low-carbon development hub. We will also boost the integrated development of the digital economy and real economy. Furthermore, we will bolster financial supply to areas important to people's lives and weak links, vigorously promote inclusive finance, improve the quality of services for private enterprises, micro and small enterprises, and new urban residents (permanent residents without local household registrations), and enhance financial services to advance rural revitalization and build up China's strength in agriculture. We will accelerate the development of pension finance, continuously further the third-pillar pension plans, and fully back the development of the health industry and silver economy. We will enhance comprehensive financial services for foreign trade, and support and consolidate the overall stability of foreign investment and trade. In addition, we will expand and enrich financial instruments to meet people's multi-tiered and diverse financial needs.

We always take preventing and controlling financial risks as a constant pursuit. We will prudently guard against and defuse the financial risks of key institutions and areas, and ensure that no systemic risks arise. Following the market-oriented, law-based principle, and grasping the right timing, extent and effectiveness, we will promote small and medium-sized financial institutions in defusing their risks through reform in an orderly manner. We will unswervingly consolidate and develop the public sector and unswervingly encourage, support and guide the development of the non-public sector. We will equally meet the reasonable financing needs of real estate enterprises of different ownerships, and energetically advocate the construction of the "three major projects," including establishing public infrastructure for both normal and emergency use and renovating urban villages. Additionally, we will actively work to defuse risks of outstanding local government debt and strictly control new debt. We will conduct supervision in accordance with laws and regulations, strengthen oversight on institutions, behaviors and functions as well as carry out penetrating and continuous oversight, and promote the building of a financial supervision system and mechanism with full coverage and with no blind spots left, so as to render financial regulation more effective. 

We always promote high-quality development of finance. We will guide financial institutions to optimize their business structures and growth models, so that they can realize the transformation from extensive expansion driven by quantity to refined management focused on quality, and achieve high-quality, sustainable development. We will deepen financial supply-side structural reform, constantly consolidate the corporate governance of financial institutions, steadily improve their operation and management capabilities, and continue to establish and improve the modern financial enterprise system with Chinese characteristics. In addition, we will steadily advance high-standard institutional opening up in the financial sector, further facilitate cross-border investment and financing, attract more foreign financial institutions and long-term capital to operate and expand business in China, and encourage Chinese and foreign financial institutions to enhance cooperation for common, mutually beneficial development. 

Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the NFRA will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, fully strengthen financial regulation, prevent and defuse financial risks, and ensure that no systemic risks arise. We will also focus on supporting the "five priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance, so as to provide strong financial support for the high-quality development of economy and society as well as for the realization of Chinese modernization and the great rejuvenation of the Chinese nation. 

That is all for my introduction. Now, my colleagues and I are ready to take your questions. 

Xing Huina:

The floor is now open for questions. Please identify the media outlet you represent before asking questions. 

ThePaper.cn:

The Central Economic Work Conference put forward actively and prudently defusing real estate risks and equally meeting the reasonable financing needs of real estate enterprises of different ownerships. What plans does the NFRA have for the real estate sector at present and what plans will be taken going forward? Thank you.

Xiao Yuanqi:

Thank you very much for your questions, which are of great concern and importance to the public and the NFRA. Recently, we have actively assisted industrial authorities and local governments to adopt a comprehensive approach on both supply and demand sides amid our efforts to step up financial support. The Ministry of Housing and Urban-Rural Development (MOHURD), the People's Bank of China (PBC), and the NFRA introduced the policy to recognize households with mortgage records but no local property ownership as first-time homebuyers, making them eligible for favorable down payments and mortgage rates. The PBC and the NFRA jointly released a set of 16-point financial measures to support the stable and sound development of the real estate market. They also studied and established a dynamic mechanism to adjust mortgage rates for first-time homebuyers, lowered the bottom line of mortgage rates for second-time homebuyers, and encouraged banks to lower the interest rates of outstanding loans for first-time homebuyers. All these policies and measures have delivered positive results in enhancing financial services in the real estate sector, satisfying the legitimate financing needs from the real estate market, and promoting the stable and sound development of the real estate market.

This January, the MOHURD and the NFRA jointly released a notice on establishing a financing coordination mechanism for the real estate sector at the city level. The notice urged cities at and above the prefecture level to set up a financing coordination mechanism for the real estate sector, establish a platform for facilitating communication between governments, banks, and enterprises, and promote coordination between real estate companies and financial institutions. 

We all know that the real estate sector entails a long industrial chain and covers a wide range of areas, thus playing an important role in the economy and people's lives. Therefore, the financial sector must endeavor to fulfill its responsibility to give strong support to the real estate sector. At present, banks finance the real estate sector mainly by the following means: First, by property developer loans and individual housing loans, also known as mortgage loans. To date, outstanding developer loans and individual housing loans stood at 12.3 trillion yuan ($1.72 trillion) and 38.3 trillion yuan, respectively. In 2023 alone, 3 trillion yuan in developer loans and 6.4 trillion yuan in housing mortgage loans were issued. That is to say, together, the banking sector provided nearly 10 trillion yuan in loans – a remarkable amount – to the real estate sector. Second, via banks' investment in bonds issued by real estate companies. At the end of last year, outstanding property developer bonds held by banks totaled 427.5 billion yuan. In 2023, banks invested heavily in such bonds, increasing 15% from a year earlier. In addition, banks' merger and acquisition loans and extensions for outstanding loans to real estate companies topped 1 trillion yuan in 2023.

We have actively cooperated with the MOHURD and the PBC, and provided financial support to ensure that overdue housing projects were completed and delivered. By the end of 2023, most of the 350 billion yuan worth of lending set aside for this special purpose had been delivered to such projects. Commercial banks have also provided funds to ensure the construction and delivery of presold projects.

The NFRA will guide financial institutions to make full use of existing support policies, continue to provide better financial services for the real estate market, maintain the stability of credit lines to the sector, meet legitimate financing needs, and make their contribution to promoting the stable and sound development of the real estate market. In the near future, we will focus on the following major work: 

First, we will accelerate the implementation of the financing coordination mechanism for the real estate sector at the city level to ensure it will produce effects. Under the mechanism led by municipal governments, a list of projects eligible for financing assistance will be provided on a just and fair footing to financial institutions within their respective administrative regions. All these are elucidated in the notice released by the NFRA and the MOHURD. Based on assessments of property projects using market-oriented and legal principles, financial institutions are expected to proactively meet the legitimate financing needs of projects that are making smooth progress and have sufficient collateral, reasonable liabilities, and guaranteed repayment sources. For projects that are experiencing temporary difficulties but maintaining a basic fund balance, financial institutions are expected to provide stronger support by extending outstanding loans, rescheduling repayments, and issuing additional loans rather than making hasty withdrawals, suspension, and withholding of loans. We will also meet with banks in the near future to urge them to take timely action so that with joint efforts from municipal governments and the housing and urban-rural development authorities, they will make good use of independent policy tools according to each city's own conditions to better satisfy the legitimate financing needs of real estate projects.

Second, we will urge financial institutions to effectively meet the requirements in managing operating property loans. Last night, the NFRA and the PBC jointly released a notice on managing operating property loans. The notice, which is quite targeted and made after conducting preliminary investigations and soliciting opinions and suggestions from the relevant sectors, financial institutions, and relevant authorities, allows banks to provide operating property loans for property developers. Such loans, provided by national banks on the basis of controllable risks and business sustainability, are permitted to be used by rule-following and promising real estate companies to repay their outstanding loans and bonds by the end of this year.

Third, we will continue to provide quality housing loan services for customers. According to each city's own conditions, we will support local municipal governments and housing and urban-rural development authorities to further improve housing loan policies involving down payments and mortgage rates. We will also guide and urge banks to provide better financing services to meet people's demand for buying their first homes or improving their housing situation.

Fourth, we will guide and require banks and other financial institutions to strengthen their support for the "three major projects" that include the construction of public infrastructure used for daily life and emergency situations and the rebuilding of "villages" inside cities. Meanwhile, solid progress is expected as soon as possible. Thank you.

CMG:

I would like to ask, how did the banking and insurance industries perform overall in 2023, especially in the aspects of risk and stability? And what predictions does the NFRA have regarding their development prospects this year? Thank you.

Liu Zhiqing:

Good afternoon. Thank you for your questions. Here, I will give you a brief introduction about the stable operation and overall performance in the banking and insurance sectors of last year. The total assets and main business in these two industries grew steadily. As of the end of 2023, the assets of financial institutions in China's banking sector grew 9.9% year on year to 417.3 trillion yuan. China's yuan-denominated loans rose by 22.75 trillion yuan, and the year-on-year increase was 1.31 trillion yuan more than registered in the previous year. The total debt stood at 383.1 trillion yuan, up 10.1% year on year. New yuan deposits hit 25.74 trillion yuan, down by 510.1 billion yuan from the previous year. By the end of last year, insurance company assets increased 10.4% year on year to 29.96 trillion yuan. Approximately 25.4 trillion yuan in financing support was provided for economic and social development through bonds, stocks, equity investment, and other measures, increasing 2.9 trillion yuan compared with the beginning of last year. Claim and benefit payments reached 1.89 trillion yuan, up 21.9% year on year. Agricultural insurance provided 4.98 trillion yuan to guarantee reductions in agricultural development risks.

Asset quality remained stable generally. At the end of 2023, the outstanding balance of NPLs of financial institutions in China's banking sector was 3.95 trillion yuan, up by 149.5 billion yuan compared with the beginning of last year, according to preliminary statistics. The NPL ratio was 1.62%, and the ratio of loans overdue more than 90 days to NPLs stood at 84.2%, remaining at a relatively low level. Last year, China's banking sector disposed of 3 trillion yuan in non-performing assets.

The ability to defuse risks has been strengthened. According to preliminary statistics, commercial banks had accumulated net profits of 2.38 trillion yuan in 2023, up 3.24% year on year. The balance of loan loss provisions reached 476.8 billion yuan, and the provision coverage ratio was 205.1%, staying at a relatively high level. The capital adequacy ratio of commercial banks reached 15.1%, and the tier 1 CAR was 10.5%. Among those, the capital adequacy ratio of large commercial banks reached 17.6%, and the tier 1 CAR was 11.7%. The leverage ratio of commercial banks was 6.8%, remaining stable. China's insurance sector demonstrated adequate solvency. As of the end of 2023, the comprehensive solvency ratio of the insurance sector was 196.5%, and the core solvency ratio was 127.8%. Among those, the comprehensive solvency ratio and the core solvency ratio of property insurance companies were 236.5% and 204.3%, respectively. The comprehensive solvency ratio and the core solvency ratio of life insurance companies were 186.2% and 110.3%, respectively. 

The liquidity of Chinese banks remained sound. At the end of 2023, the liquidity coverage ratio of banks with total assets no less than 200 billion yuan was 151.6%, with a net stable funding ratio of 125.5%. The high-quality liquid assets adequacy ratio of banks with assets below 200 billion yuan was 269.4%. The liquidity indicators of all kinds of institutions remained at a relatively high level. The ratio of various deposits to total liabilities reached 69.2% due to banks' steady capital sources. In 2023, the net cash flow from insurance companies' operating activities hit 1.71 trillion yuan.

Looking ahead to 2024, the fundamentals of China's economy remain unchanged, and they will maintain long-term growth. Thanks to an increasingly improved industrial foundation, factor endowments, and innovation capacity, new driving forces will be formed in new urbanization, green transformation, and other fields, which will inject strong impetus into the banking and insurance industries and provide more opportunities rather than challenges. The banking industry is expected to maintain steady growth momentum, with institutional and structural regimes becoming more reasonable and financial resource allocation also improving. In the past three years, the average growth rate of total assets in China's insurance industry remained at 8.7%, showing a sound momentum. The industry contains huge potential and strong capability to serve economic and social development, which will play more effective roles as both an economic shock absorber and a social stabilizer. Thank you.

Chengdu.cn:

How about the growth rate of loans in the manufacturing industry and for new and high-tech enterprises? What kinds of supportive measures did the NFRA take? What else will you do to encourage banking and insurance institutions to provide more financial resources to sci-tech innovation and advanced manufacturing? Thank you.

Li Mingxiao:

The NFRA has adhered to the fundamental purpose that finance is to serve the real economy. Focusing on key areas like sci-tech innovation and advanced manufacturing, we have continuously improved financial supervision policies, encouraged financial institutions to increase financial support and advance financial services, to practically promote high-quality economic and social development.

In the aspect of sci-tech innovation, we issued a circular to improve full life-cycle financial services for tech companies, allocating more financial resources to advance sci-tech innovation, as well as providing differential and various financial services to meet the needs of tech firms at different development stages. We also encourage banking institutions to diversify models for IP pledge financing services and the means of insurance to offer protection so as to attract more tech companies to apply for their initial loans with banks. We also encourage banking and insurance institutions to set up branches in places where science and technology resources are concentrated, with a focus on providing better financial services for tech firms. We have improved the mechanism applied for loans to tech companies which ensures that those who have fulfilled their duties are not held accountable. Tolerance of non-performing loans to small- and micro-technology enterprises can be relaxed by no more than 3 percentage points compared with the other loans. By the end of 2023, the balance of loans granted to new and high-tech enterprises registered an increase of 20.2% year on year. Among those, medium- and long-term loans and credit loans both accounted for more than 40%.

In the aspect of advanced manufacturing, we have improved key monitoring and daily supervision and worked together with relevant departments to jointly issue a series of policies, such as guidelines on quality projects in the manufacturing industry and guidelines on accelerating the transformation and upgrading of traditional manufacturing industry. In doing so, the policy environment of high-quality development in the manufacturing sector has been optimized, and the efforts to increase medium- and long-term loans for manufacturing companies have been made an institutionalized and regular practice. We have also guided financial institutions to give priority to supporting high-quality development in manufacturing through themed conferences and special training, which provided concrete support for the manufacturing sector to move toward higher-end, smarter, and greener production. As of the end of 2023, the balance of loans granted to manufacturing companies increased 17.1% year on year, of which the balance of medium- and long-term loans grew 29.1% year on year.

Next, the NFRA will fully implement the decisions and plans of the CPC Central Committee and the State Council, make all-out efforts to promote techfin, and promote the building of a multilevel techfin service system. Under the premise of keeping risks under control, we will work with relevant departments to steadily advance the construction of financial reform pilot zones for sci-tech innovations, intensify financial support for the manufacturing industry, and guide financial institutions to fully implement all measures and requirements. Efforts will be made to diversify financial products and services, strengthen the support for sci-tech innovation and advanced manufacturing, and foster new productive forces, thereby providing strong financial support for accelerating the establishment of a modern industrial system. Thank you!

Market News International:

How should banks optimize their credit structure and revitalize existing loans? And is there currently arbitrage trading in the banking system, and if so, what are the policies needed to address these issues? Thank you.

Liu Zhiqing:

Thank you for your questions. Over previous years, the credit structure of China's banking industry has continued to optimize, and financial support for the real economy has become more targeted and robust. Financial resources have been delivered in more key areas and weak links, such as sci-tech innovation, advanced manufacturing, green development, inclusive finance support for small and micro-businesses, and infrastructure. Our focus is on promoting high-quality economic development. My colleagues have talked about the statistics on how the financial sector supports the real economy. Through the efforts of financial regulatory authorities, banking institutions have increased their disposal and recovery of non-performing assets over the years. Since 2017, a total of 18 trillion yuan of non-performing bank assets have been disposed of. A significant amount of financial resources that were occupied were put into more efficient use and allocated to sectors that are more promising and in need. In terms of the use of funds, the vast majority of the funds are used for the real economy to meet the financing needs of enterprises, residents, and other market entities, thereby supporting the recovery of the economy and boosting effective demand.

Going forward, the NFRA will continue to guide and support the banking institutions in increasing credit support and optimizing the structure. We will focus on five key areas: techfin, green finance, inclusive finance, elderly care finance, and digital finance. Our goal is to remove obstacles to the flow of funds into the real economy and increase the efficiency of capital use so that the real economy can be better served by financial resources. Thank you.

China Banking and Insurance News:

The central financial work conference pointed out that economic and financial risks remain relatively high and require relevant departments to timely handle the risks of small and medium-sized financial institutions. What measures will the NFRA take in 2024 to address such potential risks? Thank you.

Xiao Yuanqi:

Thank you for your question, which many of you may be concerned about. I'll be happy to answer it. First, I want to share with you some statistics. Currently, there are 3,912 small and medium-sized banks in China. These are mainly city commercial banks, rural credit cooperatives, and rural banks, with total assets of 110 trillion yuan, accounting for 28% of the total assets of the banking industry. For these 3,912 banks, the outstanding agricultural loans and small and micro enterprise loans stood at 21 trillion yuan and 29 trillion yuan respectively, accounting for 38% and 44% of that of the entire banking industry. These small and medium-sized banks play a vital role in supporting private, small, and micro businesses, as well as rural development and revitalization. The operations of China's small and medium-sized banks are generally stable, with stable asset quality, strong capital strength, and good performance in terms of capital adequacy ratio, provision coverage ratio, and asset quality. These are all reasonable and healthy indicators of their operation and regulation. However, a small number of small and medium-sized banks have accumulated some problems and risks in the past, and the risks of some small and medium-sized banks remain relatively high. Compared to the whole banking industry or the small and medium-sized banking system, these high-risk banks account for a small proportion in terms of number, assets, and non-performing assets. For these small and medium-sized banks with relatively high risks, we will conduct strict regulations to gradually reduce their risks. Additionally, we will work with local party committees, governments, and relative departments to roll out customized plans and measures for deepening reform and addressing risks. In general, we are using multiple methods to resolve and dispose of the existing risks in a prudent and orderly way, as well as controlling the new risks in a strict manner. As a result, a large number of such banks have reduced their risks and achieved sustainable operations. Our measures to deepen reform and address risks are paying off.

The financial regulatory authorities will fully implement the decisions and plans of the CPC Central Committee and the State Council, work with local party committees, governments, and relevant departments to push forward reform, prevent and control risks of small and medium-sized banks, and improve their management. Our work will focus on the following aspects:

First, strengthen corporate governance. We will integrate party leadership with company management, optimize the equity structure, standardize the duties of corporate governance entities, and establish a balanced and efficient corporate governance mechanism. In particular, we will make efforts to guard against manipulation by major shareholders and insiders and prevent the transfer of interests and illegal and irregular transactions.

Second, we will work with local party committees and governments to select and appoint qualified personnel for key positions in local small and medium-sized banks according to the standards of political strength, competence, and discipline. We should also strengthen the construction of the executive team and the talent pool. Efforts will be made to require large banks and national joint-stock banks, as well as some leading small and medium-sized banks, to transfer talents and technology to other local small and medium-sized banks, including the core customer system and the risk control system. This work has already begun, and the results are significant. For example, China Merchants Bank has provided great support to Liaoshen Bank in terms of risk control, talent, and information systems. We will enhance the behavior management of executives and key personnel, improve their political integrity, legal awareness, and professional competence, and ensure that they operate banks in line with laws and regulations.

Third, category-based policies will be implemented to deepen reforms. For the system of rural credit cooperatives, the focus is on transforming the functional positioning of provincial rural credit unions and standardizing their performance. The "one province, one policy" initiative has been launched to implement reforms in rural credit cooperatives, achieving phased results. Some reform plans for rural credit cooperatives have been approved by the State Council, some are actively being organized and implemented, and some have already started operations. We have conducted a phased assessment, achieving the expected results and demonstrating the effect. We have adopted a combination of measures to advance reforms in  city commercial banks. The "one bank, one policy" initiative has also been launched. The overall goal is to fundamentally enhance small- and medium-sized banks' long-term sustainable operation and development by further reforming the systems and mechanisms. This will better serve the real economy and numerous households and enhance risk prevention and control.

Fourth, we will urge small- and medium-sized banks to focus on their main businesses. Small- and medium-sized banks must firmly adhere to their market positioning of serving the local community, small and micro businesses, agriculture, rural areas and farmers, contributing to rural revitalization. They should base themselves locally, become more refined, and deeply cultivate their local markets. Small- and medium-sized banks have a natural advantage in being familiar with the local environment. Small- and medium-sized banks should have the will and ability to resist the temptation of disregarding risks and recklessly pursuing rapid and complete development. Small- and medium-sized banks should carry out differentiated and characteristic operation and give full play to their unique advantages. Small- and medium-sized banks have many advantages, and they are very familiar with customers in the local area. This advantage must be fully utilized, and the future development prospects of small- and medium-sized banks are quite broad.

Fifth, we will adhere to results-oriented and problem-oriented approaches, seeking stability while making progress, addressing both the symptoms and root causes, and comprehensively strengthening supervision to prevent and resolve risks. We will strictly regulate the entry standards of small- and medium-sized banks, strictly regulate the access qualifications of shareholders and executives, and thoroughly examine the sources of capital, utilizing capital's role in controlling leverage, allocating resources, and absorbing losses. Capital supervision is crucial and a key focus of our regulatory efforts. We will implement early identification, warning, mitigation, and disposal of risks, adhering to the "four earlies" approach and the principle of early prevention and control of small risks. We will establish a robust corrective mechanism with stringent constraints. Efforts will be made to prevent and control risks in small- and medium-sized banks, as well as in larger institutions. Efforts should be directed towards preventing and controlling existing risks, and the most important is controlling new risks. We will focus on the "key individuals," "key events," and "key behaviors" associated with financial risks, strictly enforce the law, take an unequivocal stance, and resolutely crack down on financial corruption and illegal activities. It is necessary to stimulate and enhance the endogenous mechanism of financial institutions to prevent and control risks, and further strengthen and solidify it, so as to prevent, control and manage risks fundamentally and at their source. We will actively promote a financial culture with Chinese characteristics and resolutely follow the path of developing finance with Chinese characteristics. Thank you.

China Economic Information Service: 

We know that in recent years, China has continuously promoted the specialized development of old-age financial institutions, and old-age financial reforms are steadily advancing. Could you please introduce the current situation of this work and the arrangements for the next steps? Thank you.

Yin Jiang'ao: 

This question is closely related to each of us. The NFRA adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, continuously deepens the reform of commercial old-age finance, and has achieved certain results in guiding old-age insurance institutions to focus on the transformation and development of their main businesses, and serving the construction of China's multi-level and multi-pillar old-age insurance system.

First, we have vigorously developed commercial insurance annuities. We support insurance institutions in leveraging their advantages in long-term, stable investment and old-age risk management to continuously expand the supply of commercial insurance annuities. Currently, the accumulated scale of pension funds has exceeded 6 trillion yuan, covering nearly 100 million people.

Second, we have initiated a pilot program for old-age wealth management products. These products adopt asset allocation strategies that meet old-age needs, realizing the long-term and stable appreciation of investors' pension benefits. Since the pilot program started in September 2021, 11 wealth-management companies have issued 51 products in 10 pilot cities, attracting approximately 470,000 subscribers and reaching a scale of more than 100 billion yuan.

Third, we have promoted the development of specific old-age deposit pilots. These deposit programs are piloted by the four banks — Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank — in five cities. The terms are divided into four categories: five years, 10 years, 15 years, and 20 years, with interest rates slightly higher than those of five-year deposits at large banks. Since the pilot programs began in November 2022, approximately 200,000 depositors have participated, and the total balance is nearing 40 billion yuan.

Fourth, we have initiated a pilot program for commercial pension businesses. Commercial pension is offered by old-age insurance companies, encompassing old-age planning, account management, and financial products to deliver comprehensive life-cycle pension fund management services to consumers. Since the pilot program commenced in January 2023 in 10 provinces (municipalities), more than 590,000 accounts have been opened.

Fifth, we have promoted the regular operation of exclusive, commercial, old-age insurance. This product offers universal old-age insurance with simplified insurance process, flexible payments, and stable returns. It ensures annuity payments are received after reaching the age of 60. The pilot program began in June 2021 and was officially launched in October 2023. As of the end of the previous year, the number of policies stood at approximately 740,000, with the accumulated old-age reserve exceeding 10.6 billion yuan.

Sixth, we have actively fostered the growth of the personal pension system. We provide guidance to commercial banks, wealth-management companies, insurance firms, and other entities to actively participate in personal pension offerings. We also encourage the establishment of a comprehensive industry information platform and the creation of product display areas to simplify consumer decision-making.

Seventh, we have consistently advanced the professional development of old-age insurance companies. In November 2023, the interim measures for the supervision and management of pension insurance companies were issued, laying out precise requirements for corporate governance, business management, and the enhancement of risk prevention and control within pension insurance companies.

Next, we will thoroughly study and implement the guiding principles of the Central Financial Work Conference, focusing on the critical task of developing financial services for elderly care and implementing policies related to the silver economy. We will encourage insurance institutions to leverage their advantages in offering insurance protection to vigorously develop commercial insurance annuities. We will use exclusive commercial pension insurance as a key approach to actively meet the pension security needs of people in new industries and business models. We will further optimize the supply of financial products related to private pensions and improve the related regulatory rules in accordance with the characteristics of private pensions. We will promptly summarize experiences and continuously promote the pilot of commercial pension finance. We will also steadily push forward the transformation and development of pension insurance companies, guiding them to leverage their professional advantages and better participate in and serve the construction of China's multi-tiered and multi-pillar old-age insurance system. Thank you!

Yicai: 

I would like to ask, how will the NFRA optimize the structure of inclusive loans to small- and micro-businesses and loans to agriculture, rural areas and farmers in the future in order to promote a stable reduction in comprehensive financing costs? Additionally, how will the administration comprehensively utilize inclusive credit and insurance to support the development of enterprises that use special and sophisticated technologies to produce novel and unique products? Thank you.

Guo Wuping:

Thank you. The development of inclusive finance was proposed at the third plenary session of the 18th Central Committee of the Communist Party of China in 2013. After more than a decade of development, inclusive finance in China has made significant progress. The NFRA has continuously strengthened regulatory guidance. Most banks have established special departments for inclusive finance, increased the proportion of inclusive finance in their internal assessments, and continuously improved their service quality and efficiency in key areas such as small- and micro-businesses, agriculture, rural areas, and farmers to serve the real economy. As of the end of last year, outstanding loans to small- and micro-businesses reached 29.06 trillion yuan, a year-on-year increase of 23.27%. This rate is 13.13 percentage points higher than the average growth rate of all loans. Additionally, the interest rate has been decreasing annually, with the average interest rate for newly issued inclusive loans to small- and micro-businesses last year being 4.78%, a year-on-year decrease of 0.47 percentage point. Inclusive loans for agriculture, rural areas, and farmers reached 12.59 trillion yuan by the end of last year, a year-on-year increase of 20.34%, which is a relatively fast growth rate, exceeding the average growth rate of all loans by 10.2 percentage points. The interest rate also recorded a year-on-year decrease of 0.87 percentage point. These are manifestations of the inclusive financial system with Chinese characteristics.

This year, we will follow the decisions and deployments of the Central Financial Work Conference, implement the requirements regarding inclusive finance, and integrate loans to small- and micro-businesses, loans to agriculture-related entities, and loans to private enterprises to form a unified regulatory approach for inclusive credit. We will carry out assessments, evaluations, and data disclosure and, at the same time, clarify regulatory focuses. There are several aspects to this:

First, we will require banks and other financial institutions to focus on the capital needs of small- and micro-businesses and agriculture-related entities, reasonably determine the pace of credit issuance, and strive to ensure that the growth rate of inclusive loans in these two areas is not lower than the average growth rate of all loans.

Second, we will actively develop first-time and follow-up loans, ensuring that follow-up loans continue wherever possible. We encourage medium- and long-term loans that match the production and operation cycle, and promote revolving loans that can be borrowed and repaid at any time to meet the diversified financing needs of market entities.

Third, we will gradually increase the proportion of collateral-free loans for small- and micro-businesses, which reached 19.19% at the end of last year, a year-on-year increase of 2.29 percentage points. This year, we will continue to encourage banks to relax collateral requirements and increase the issuance of credit loans.

Fourth, we will strengthen regulatory oversight of financial institutions in areas such as product sales, information disclosure and fee pricing to protect private enterprises' legitimate right to autonomous choice and fair trade. At the same time, we will increase credit support for private small- and micro-businesses, ensuring that their loan growth rate is not lower than the growth rate of all loans. We will also enhance credit support for small- and micro-business owners to raise the proportion of loans and the number of accounts for small- and micro-businesses. Additionally, we will reasonably increase the loan-to-deposit ratio in counties, allocate a certain proportion of new county deposits for local loans, and provide comprehensive financial services in counties to promote balanced development between urban and rural areas and contribute to common prosperity.

For enterprises that use special and sophisticated technologies to produce novel and unique products, we will encourage banks, in terms of inclusive credit, to consider the characteristics of these enterprises. Banks are advised to apply big data, artificial intelligence, and other technologies to support credit decisions. We will actively use information about these enterprises' technological research and development, patent innovation, intellectual property, and so on, to develop exclusive financial products for them and expand the scale of credit. Additionally, inclusive insurance can be utilized. We will encourage insurance companies to strengthen insurance services throughout the entire lifecycle of these innovative SMEs. For example, we will promote distinctive insurance products such as property insurance for research and development equipment, product liability insurance, product quality assurance insurance, patent insurance, export credit insurance, and insurance for the first set of major technical equipment. These products are designed to help enterprises mitigate disasters and losses, expand foreign trade, and pursue sci-tech innovation.

We will uphold a people-centered approach in financial work, bear in mind its political significance, make more efforts in inclusive finance, and strive to build China's characteristic inclusive financial system that is accessible, beneficial, and affordable in order to better serve the real economy and the people. Thank you!

China News Service: 

In promoting green finance, what specific implementation plans and incentive measures does China have to promote green and low-carbon transformation and the development of the environmental protection industry?

Li Mingxiao: 

Thank you for your question. We have always placed great importance on green finance, and China's green finance is at the global forefront. In recent years, the NFRA has adhered to the guidance of Xi Jinping Thought on Ecological Civilization. It has encouraged the banking and insurance systems to increase financial support for green development, continuously improving the service quality and efficiency of green finance, and thus promoting the green transition of economic and social development. We have carried out work in the following five aspects:

First, we have strengthened regulatory guidance. We have promoted the implementation of the "Guidelines for Green Finance in the Banking and Insurance Industries." We have enhanced tracking, monitoring, and supervision, organized symposiums on green finance services, and guided banking and insurance institutions to develop green finance from a strategic height. This includes increasing support for green, low-carbon, and circular economies, preventing environmental, social, and governance risks, and improving their own environmental, social, and governance performances. We have also worked with relevant departments to promote the construction of a green finance standard system. We will research and improve green finance support measures in the fields of industry, construction, and ecological and environmental protection, guide localities in exploring green finance practices, and improve various supporting policy measures. 

Second, we improved statistical monitoring. We regularly organized banks to tally green financing data, used all sorts of funding to offer support, and guided banks' credit funds to support the development of green and low-carbon industries in a market-oriented and law-based manner. As of the end of 2023, 21 major banks' green credit balance reached 27.2 trillion yuan, up 31.7% year on year. We improved the statistical standards for green insurance and pushed for insurers to enhance risk protection in the fields of environmental resource protection and social governance, green industries, and green living consumption. In 2023, green insurance premiums reached 229.7 billion yuan, with insurance indemnities reaching 121.46 billion yuan. 

Third, we optimized performance appraisals. We organized 21 major banks to conduct green credit self-evaluation and urged self-examination and prompt rectification in accordance with relevant supervision mechanisms and criteria. We guided the China Banking Association to conduct green banking reviews. Green financing has been seen as an important reference for the regular supervisions, on-site inspections, and corporate governance requirements of banks and insurers, enhancing the incentives and constraints to promote the development of green financing. 

Fourth, we enriched products and services. We encouraged banks and insurers to fulfill their duties and develop climate-friendly green financing products, lawfully, with controllable risks and business sustainability, and meet green and low-carbon projects' financing and risk management requirements so as to provide diversified and differentiated financing services. We broadened the coverage of green insurance, developed green trust funds and green leasing, and expanded green consumption credit services in an orderly manner. We steered insurance funds to support green projects' investment and construction. 

Fifth, we strengthened risk management. We set up information-sharing mechanisms with other departments in charge of these industries to promote regulatory coordination. We urged banks and insurers to establish and improve green financing management systems and include environment, society, and governance-related requirements into the comprehensive risk management system. We strictly controlled new financing projects related to carbon emissions and firmly curbed the unbridled development of projects with high energy consumption, high emissions, and low quality, so as to reduce carbon emissions and ensure energy safety and industrial and supply chain safety. We guided banks and insurers to explore and address climate-change related financial risks and enhance risk management and information disclosure. 

In the next step, the NFRA will firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, fully advance the grand strategy of promoting green financing, improve the policy system for developing green financing, optimize financial products and services, and guide banking and insurance sectors to provide financial services and contribute to achieving peak carbon emissions and carbon neutrality and building a beautiful China. Thank you.  

Zhinews of Shenzhen Satellite TV:

Digital financing has been developing rapidly. What new plans and strategies have been formulated to strengthen digital financing regulation and risk control, as well as promote innovation in financial technology? Thank you.

Liu Zhiqing:

Thank you for your question. People are concerned with the progress made in digital financing as well as related regulation. At present, digital technologies, such as internet technology, big data, cloud computing, artificial intelligence, and blockchain, are developing rapidly and transforming our way of living and production. The central financial work conference proposed five initiatives, including one targeting digital financing. We are paying great attention to this sector and have adopted a series of measures to promote digital financing and to steer the digital transformation of the financial sector. For example, we encourage banks and insurers to continue to enrich digital financing products and services in the important fields involving small and micro-sized businesses, green development, agriculture, rural areas, and rural residents, sci-tech innovation, and global trade. We continue to follow up on the implementation of the previously released guidelines on the digital transformation of banking and insurance sectors, advance the objectives and tasks of digital transformation of financing step by step, and promote exchanges of digital transformation experiences between institutions. We support large institutions to fully mobilize internal resources, offer risk control tools and technologies to small and medium-sized financial institutions under market-oriented and law-based principles, and help small and medium-sized financial institutions enhance risk management. Mr. Xiao just mentioned several examples of cooperation. Through collective efforts of financial institutions and supervisory departments, the financial sector's digital transformation advanced quickly, offering products and services with better quality and effect to benefit the real economy. 

We will continue to strengthen supervision and guidance and promote digital financing with diversified measures. We will guide financial institutions to improve the quality and effect of services and thoroughly enhance risk management. 

First, we will continue to promote digital transformation in the banking and insurance sectors. We will conduct assessments of digital transformation-related work and incorporate them into the supervisory and rating system of banking and insurance sectors' use of information technology. We will guide financial institutions to strengthen top design and coordinated planning, devise science-based development strategies, increase investment in resources and factors of production, and reform management and services. 

Second, we will enhance the effectiveness of digital empowerment. We will fully mobilize financial institutions to initiate actions, continue to optimize digital financial products and services, provide financial support in important areas such as sci-tech innovation, advanced manufacturing, green development, and development of micro, small and medium-sized enterprises, and effectively reduce corporate financing costs. Financial institutions will actively expand service channels, including mobile internet terminals, reach out through digital technologies to clients that traditional financial services have difficulty attracting, and continue to elevate the inclusiveness and accessibility of financial services. 

Third, we will improve the risk prevention and control capabilities of related industries. We will push banks and insurers to integrate digital risk control tools into their workflows, fully utilizing digital capabilities to level up risk management, internal control and compliance.

Fourth, we will improve the supervision of network safety and data security risks. We will push banks and insurers to improve regular monitoring of network safety risks and emergency response capabilities, effectively protecting data security and client information, and enhancing the risk management of technology outsourcing in digital ecosystem scenarios. 

Fifth, we will regulate digital innovation and secure the bottom line of risk control. We will demand that banks and insurers establish prudent approval processes, assess the technological and business logic changes brought by new products, new businesses, and new modes, and make sure that the use of new technologies is prudent and compliant with regulations so as to secure the bottom line and prevent risks while going through digital transformation. Thank you. 

Xing Huina:

Due to time constraints, we will now take one last question.

Economic Daily:

The Central Financial Work Conference stressed that we should work hard to advance high-level opening-up of the financial sector, steadily expand institutional opening-up, and attract more foreign financial institutions and long-term capital to invest and operate in China. How will the NFRA implement the guiding principles of the conference to promote the high-level opening-up of the banking and insurance industries? Thank you.

Xiao Yuanqi:

Thank you for your question. I'll answer this one. We recently launched over 50 measures to promote opening-up of the financial sector, which can be summarized in the following aspects:

First, we have scrapped restrictions on the ratio of foreign shareholding in banking and insurance institutions, including restrictions on equity investment, acquisition and capital increase in financial institutions. Foreign investors can now hold 100% of shares of a banking or insurance institution in China, gaining full ownership. There are now such institutions, including wholly foreign-owned insurance companies, wealth management companies with foreign majority ownership, wholly foreign-owned money brokerage companies, and wholly foreign-owned insurance asset management companies. They have all been approved to open for business and are operating well at present. In addition, all the restrictions concerning the financial sector in the negative list for foreign investment have been removed.

Second, we have significantly eased the quantitative entry thresholds for foreign institutions. Requirements in the past regarding total assets and operation terms for foreign-funded banks and insurance institutions have now all been canceled. More emphasis is now laid on comprehensive assessment of the qualification of foreign investment. For another example, the types of institutions have also been greatly enriched. Now various foreign financial institutions, including banks, insurance companies, brokerage companies, wealth management subsidiaries and asset management companies, have been established in China and are operating well. There are now five wealth management subsidiaries with foreign majority ownership in China and they have very good experience and practices concerning product design and risk control and prevention. For another example, foreign-funded banks and insurance institutions now have exactly the same business scope as their Chinese counterparts and receive full national treatment.

As of the end of last year, foreign-funded banks had established 41 legal-person banks, 116 branches of foreign and Hong Kong, Macao and Taiwan banks, and 132 representative offices in China. The number of operating institutions totaled 888 and total assets reached 3.86 trillion yuan. Overseas insurance institutions had established 67 operating institutions and 70 representative offices in China. The total assets of foreign-funded insurance companies reached 2.4 trillion yuan and their market share in the domestic insurance sector had reached 10%, a relatively high proportion. With in-depth participation in the development of China's economy and finance and in the operation of the financial market, foreign-funded financial institutions have become a very important force in China's financial sector. 

We will further align with relevant rules and regulations in the financial sector in international high-standard economic and trade agreements, and resolutely continue to advance high-level opening-up in the financial sector. On the basis of implementing the pre-establishment national treatment plus negative list management system, we will adhere to the market-based, law-based and international principles and welcome various foreign-funded institutions and long-term capital to China to set up and develop businesses. We will encourage foreign-funded financial institutions to carry out extensive cooperation with their Chinese counterparts in equity management and product development, such as through exchanges and training for technologies and personnel.

At the same time, we also welcome foreign-funded institutions with professional expertise in wealth management, asset management, asset utilization and disposal, as well as climate change response, green finance and sustainable operations to come to China to engage in various forms of cooperation. We will also support foreign financial institutions to deeply engage in supporting Shanghai and Hong Kong to cement their positions as international financial centers. China will continue to expand the opening-up of the financial sector.

That's all for my answer to your question.

In addition, I would like to add a few words to the earlier question with regard to improving the credit structure of banks. In terms of regulation, we have introduced two very important quantitative regulatory measures and rules for optimizing the structure of credit assets. First is the regulation of credit and loan concentration where credit granting and loans to a single customer, a single group and a single sector are all linked to capital, with very strict proportions, to prevent financial resources only flowing to large enterprises. There is another very important regulatory indicator. We have launched a joint credit granting mechanism where banks are able to share information concerning credit granting and financing regarding the same enterprise. By doing so, we will ensure that the corporate debt ratio will not be pushed up to a high level and financial resources are utilized in areas where they are most needed, so as to meet the actual and reasonable financing needs of different enterprises, individuals and market entities, avoid funds circulating within the financial sector without entering the real economy, and increase the efficiency of the use of funds. 

That is all from me. I would like to thank you and all the friends from the media for your questions. Thank you all again for your interest in and support for the work on finance, especially the regulation work of the NFRA. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thank you to all the speakers and friends from the media.

Translated and edited by Xu Xiaoxuan, Wang Wei, Li Xiao, He Shan, Lin Liyao, Huang Shan, Cui Can, Li Huiru, Xiang Bin, Wang Yanfang, Zhang Lulu, Wang Qian, Liu Sitong, Zhang Rui, Xu Kailin, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers: 

Mr. Pan Gongsheng, governor of the People's Bank of China (PBC)

Mr. Zhu Hexin, deputy governor of the PBC and administrator of the State Administration of Foreign Exchange (SAFE)

Mr. Xuan Changneng, deputy governor of the PBC

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 24, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Pan Gongsheng, governor of the People's Bank of China (PBC); Mr. Zhu Hexin, deputy governor of the PBC and administrator of the State Administration of Foreign Exchange (SAFE); and Mr. Xuan Changneng, deputy governor of the PBC, to brief you on implementing the decisions of the Central Economic Work Conference and providing financial support for the high-quality development of the real economy, and to take your questions.

Now, let's give the floor to Mr. Pan for his introduction.

Pan Gongsheng:

Thank you. Good afternoon. I'm very glad to speak with you today alongside Mr. Zhu and Mr. Xuan. 

First of all, I'd like to express my gratitude to you all for your interest in and coverage of reform and development of the financial sector as well as for the work of the PBC and the SAFE.  

The CPC Central Committee with Comrade Xi Jinping at its core highly values financial work. General Secretary Xi Jinping delivered an important speech at the Central Financial Work Conference last year, underlining that China will remain committed to the path of financial development with Chinese characteristics, boost high-quality development of the financial sector , and accelerate the building of China into a strong country in finance. The Central Financial Work Conference held at the end of last year outlined the overall requirements, policy orientation and key tasks for the financial work in 2024. Recently, General Secretary Xi Jinping addressed the launch ceremony of the special seminar on provincial and ministerial-level key officials promoting high-quality development of finance. His important speech provided renewed mobilizations and deployments for effectively handling current and future financial tasks in the coming period.

The PBC and the SAFE, in the spirit of being professional and down-to-earth, will effectively implement the decisions and deployments of the CPC Central Committee, and adhere to the fundamental purpose of providing financial support for the real economy. We will intensify macro regulation, enhance counter- and cross-cyclical adjustments, consolidate and cement the recovery momentum of the economy, and continuously promote the high-quality development of the economy. 

In 2024, we will focus on the following work:

First, we will adhere to the prudent monetary policy, faithfully implement the requirements of maintaining flexible, appropriate, precise and effective policies, and continue to foster a favorable monetary and financial environment for the steady growth of the real economy. Last year, we appropriately enhanced counter-cyclical adjustments, reduced the required reserve ratio two times, and cut policy rate two times. We also guided an orderly reduction of the existing housing loan rate, and steered financial institutions to maintain an appropriate aggregate of credit and ensure a stable issuance pace. These measures yielded positive results. In 2024, in terms of the aggregate, we will comprehensively leverage multiple monetary policy tools, maintain reasonably ample liquidity, and ensure that the aggregate financing and money supply are in step with the targets of economic growth and price levels. Regarding the pace, we will ensure balanced issuance of new credit and enhance the stability of credit growth. Concerning the structure, we will continually optimize the credit structure, and boost financial support for private companies as well as micro and small enterprises. Additionally, we will earnestly implement the recently issued 25 measures on strengthening financial support for the private economy, and improve the quality and effectiveness of providing financial support for the real economy. At the same time, we will focus on putting inefficiently used financial resources to work and make more efficient use of idle funds. As for prices, we will consider internal and external balance, promote steady reduction of overall financing costs, and keep the RMB exchange rate generally stable at an adaptive, balanced level.  

Second, we will strengthen financial support to major strategies, key areas and weak links, and focus on supporting the "five priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance . In 2023, we further increased the effectiveness of monetary policy in promoting economic structure adjustment, transformation and upgrading, and the transformation from old to new growth drivers. In addition, we guided financial institutions in increasing credit support to key areas and weak links. The growth rates of inclusive loans to small enterprises, loans to technology-based small businesses, medium and long-term loans to the manufacturing sector, and green loans were much higher than the average growth rate of all lending in 2023. Going forward, we will continue to use monetary policy tools to adjust both the monetary aggregate and the monetary structure, and enhance tool innovation. We will also continue to guide financial institutions in focusing on supporting the "five priorities." To this end, the PBC will set up a credit market department under central approval.

Third, we will prudently and effectively prevent and defuse financial risks in key areas. Preventing and controlling financial risks is an ongoing pursuit in the financial work. At present, China's financial risks are generally manageable, the overall operation of financial institutions are stable and the financial market operation is steady. Next, we will strengthen the capacity for financial risk monitoring, early warning and assessment, and work toward establishing a financial risk liability management mechanism that aligns responsibilities with authority and integrates incentives and constraints. Employing market-oriented, law-based measures, we will cooperate with local governments and relevant departments in prudently and effectively preventing and defusing financial risks in key areas and institutions. Furthermore, we will refine the financial safety net and continue to promote legislation on financial stability.

Fourth, the PBC will continuously carry out financial reform and opening up. In terms of advancing financial reform, the PBC will strive to build a financial market that is rule-based, transparent, open, vibrant, and resilient. It will further optimize the financing structures, market systems and product systems, in a bid to offer better and more efficient financing services for the growth of the real economy. The PBC will also further bolster the development of the market related to credit and payment. Recently, the PBC has been working with the provincial government of Zhejiang to guide Qiantang Credit Rating through its application for a licensed personal credit firm. As for resolutely promoting high-quality financial opening up, the PBC will expand institutional opening up in the financial sector and boost connectivity between domestic and overseas financial markets. It will also take prudent and solid measures to step up the internationalization of the RMB and continue supporting Hong Kong and Shanghai in improving their statuses as international financial centers.

Fifth, the PBC will proactively participate in global financial governance and further forge international financial cooperation. The PBC will put multilateralism into action, strengthen communication, and promote coordination in global macro-economic and financial sectors through platforms such as the Group of 20 (G20), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS). The PBC will honor the consensus reached at the China-U.S. presidents' meeting in San Francisco and take the lead in carrying out the tasks of the China-U.S. and China-EU financial working groups.

This year marks the 75th anniversary of the founding of the People's Republic of China. We firmly believe that, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will surely make progress along the path of financial development with Chinese characteristics and contribute to building a great country on all fronts through a Chinese path to modernization via the financial sector.

That concludes my introduction. Next, my colleagues and I will take your questions.

Shou Xiaoli:

Thank you, Mr. Pan. The floor is now open for questions. Please identify the media organization that you work for before asking your questions.

CNBC:

If the U.S. Federal Reserve (Fed) doesn't raise interest rates again this year, will the PBC have greater flexibility to adjust its monetary policy? Thank you.

Pan Gongsheng:

Thank you for your question. I usually spend half an hour every morning at work to stay updated with news from CNBC, and I noticed that there are a lot of discussions on this issue as many experts have shared their insights on your channel. As far as I'm concerned, this is a very good question. Currently, the changes in this year's monetary policies by major central banks, such as the Fed, have attracted great attention, and the PBC also continues to monitor the situation. As we know, since the Fed started to raise interest rates in March 2022, its interest rates have seen a cumulative increase of 525 basis points to the current 5.25-5.5% range. The European Central Bank (ECB) has also raised its interest rates 10 consecutive times, with its main refinancing rate surging from 0% to 4.5%. Therefore, interest rates in both the U.S. and the European region currently stand at record highs. In the meantime, it has also become evident that the rapid increase in interest rates is gradually affecting economic growth, inflation, and the financial markets of developed economies. There has been a lot of discussion from actors in these markets, who expect a possible interest rate cut by the Fed and the ECB in 2024. In general, the Fed's monetary policy direction indicates it will shift this year.

Over the past year, due to the impact of market expectations toward the interest rate policies of the U.S., the U.S. dollar exchange rate has seen certain fluctuations. The U.S. Dollar Index (USDX) surged as high as 114 in 2022, its highest level since 2002. It generally remained above 100 throughout 2023 and is currently fluctuating around 103. The changes in the USDX are closely tied to the expectation of interest rate policies. Therefore, as the Fed halted this round of interest rates increase, the market in general is also anticipating a weak momentum for a significant strengthening of the USDX in the future.

What impact does the shift of the Fed's monetary policies have on those in China? Well, China's monetary policies have always given prominence to the country's own development, whilst balancing both domestic and overseas situations. In 2023, in the face of the spillover effect of major economies' monetary policies, the PBC worked in accordance with domestic economic growth and reduced both the interest rates and the reserve requirement ratio (RRR) twice. This helped maintain reasonably sufficient liquidity, optimized credit loan structure, and effectively bolstered the real economy. In the meantime, based on the supply and demand of the foreign exchange market, the PBC and the SAFE also managed to stabilize market expectations through macro policies and prudent management measures. In general, the RMB exchange rate has remained basically stable despite complex situations.

To sum up, the monetary policies of developed economies are expected to put less pressure on other countries in 2024, and the cyclical difference of monetary policies between China and the U.S. is narrowing. This shift in the external environment objectively strengthens the autonomy of China's monetary policy measures and makes them more flexible.

Thank you.

China Daily:

The Central Economic Work Conference has underscored the importance of coordinating high-quality development with high-level security. It has also called for efforts to advance reform in key sectors and stabilize the overall performance of foreign trade and foreign investment. How does the PBC evaluate China's cross-border capital flow? How does it plan to reform measures related to foreign exchange facilitation? Thank you.

Pan Gongsheng:

Throughout last year, the change in both the domestic and overseas environment did have a certain impact on China's foreign exchange market, but it remained stable in general. I'll give the floor to Mr. Zhu for these questions.

Zhu Hexin:

Thank you for your questions. Governor Pan Gongsheng has already summarized and commented on them, and I'm happy to follow up as his successor at the SAFE. We have navigated through many challenges last year. According to the statistics of the SAFE, China's recent cross-border capital flows have become more stable, as reflected in the continued high-scale net inflow of the current account. The full-year current account surplus for 2023 is expected to reach around $280 billion, with the merchandise trade surplus exceeding $600 billion, marking the second-highest figure in history. Moreover, recent foreign investment in China has shown a positive trend. It is worth noting that since September of last year, foreign capital has increased its net holdings of Chinese domestic bonds for four consecutive months, with a cumulative increase of over $64 billion. We predict that the stability of cross-border capital flows in China will further improve this year, the current account will maintain a reasonable surplus, and foreign capital inflows under the capital account will be more active.

On the one hand, our industrial chain is complete, and we are constantly promoting industrial upgrading. Our production and manufacturing capabilities are robust, contributing to the competitiveness of our trade in goods. Foreign trade products and markets are becoming increasingly diversified. Policies aimed at stabilizing foreign trade and regional cooperation are gradually showing effects, with new export growth points continuously emerging. The number of business entities is increasing, and their products are gaining more competitiveness. Our cooperation will extend to more countries and regions, enhancing the stability of foreign trade.

On the other hand, foreign capital inflows under the capital account will become more active. Governor Pan Gongsheng, in his response to the first question, mentioned anticipated changes in the Fed's monetary policies for 2024. He also mentioned the gradual decrease in their spillover effects, which will ease our external financial conditions. This is expected to encourage a resurgence of international investment and a stabilization or even a rebound in foreign investment. At the same time, with our complete industrial chains and vast market, the diversification of RMB assets and investment in recent years will gradually paying off. We are confident in this aspect.

Regarding the second question about facilitation, our overall direction is to continue coordinating high-quality development with high-level security, deepening reform, and promoting facilitation. We aim to serve the real economy and ensure a stable and positive long-term economic trend. We will focus on the following five aspects:

First, we will continue to promote facilitation in cross-border trade, investment and financing. Our focus is primarily on technology innovation and SMEs, with continually expanding coverage. We aim to empower cross-border financial service platforms through technology, solving real problems for SMEs. We will also support the development of new trade formats, such as cross-border e-commerce and overseas warehouses. Through facilitation, we aim to make cross-border financing more convenient for innovative and technological enterprises. We will support SMEs and sci-tech innovation enterprises in their startup stage with more benefiting foreign exchange policies. Meanwhile, exchange rate fluctuations can be a concern for businesses. If not managed properly, they may lead to losses even for profitable businesses. Therefore, we should proactively improve services in exchange rate risk management for enterprises. In December 2023, we introduced nine measures in the fields of cross-border trade, investment, and financing to support foreign trade and investment. The key issue is not just having policies but ensuring their implementation and continuous evaluation and improvement, so as to truly offer convenience to enterprises and benefit both enterprises and individuals. This will be an important aspect. 

Second, we will continue to steadily promote high-standard institutional opening up. We will expand trials on high-level opening in cross-border trade and investment and improve the pilot program for integrating domestic and foreign currency for multinational corporations. Many of our corporations have demands in this respect, and we need to consider how to promote the measures based on the trial effects. We will unify management rules for foreign investment in Chinese domestic securities and futures, support regional opening-up and innovation, promote interconnectivity between domestic and foreign financial markets, and attract more foreign financial institutions and long-term capital to open and expand businesses in China.

Third, we will continue to promote the internationalization of the RMB in a prudent and solid manner. RMB internationalization is a clear direction and trend. Last year, the proportion of RMB cross-border payments in the trade of goods increased rapidly, reaching 25%, the highest level in recent years. In the next phase, our focus will be on facilitating trade and investment. We will strengthen the coordination between domestic and foreign currencies and further improve policies and infrastructure related to cross-border RMB transactions. Our aim is to better meet the needs of overseas investors for RMB asset allocation, holding, and risk hedging. We will actively support the steady development of the offshore RMB market, with a particular emphasis on enhancing the hub function of the offshore RMB market in Hong Kong.

Fourth, we are intensifying efforts to improve the management system, characterized by being prudent at the macro level and regulating the micro level. On the one hand, we are enhancing the monitoring and early warning response mechanism for cross-border capital flows, improving market communication and expectation guidance, and maintaining the basic stability of the RMB exchange rate. On the other hand, we are strengthening comprehensive regulation in the foreign exchange field, enhancing oversight of cross-border RMB transactions, promptly identifying and addressing abnormal situations, and taking tough action against illegal activities. Meanwhile, many of you may have noticed the recently introduced management approach for bank foreign exchange businesses, which has been well-received by banks. We are currently in the pilot phase of implementing this initiative. A core issue here concerns ensuring that those who have fulfilled their duties are not held accountable, which is of great concern to all banks. We have addressed this issue in the approach mentioned earlier. If the pilot phase progresses smoothly, we aim to include more banks in our system. The ultimate goal is to further enhance facilitation and better serve business entities.

The last aspect drawing widespread attention involves the continuous effort to improve the management of foreign exchange reserves with Chinese characteristics. We will spare no effort to ensure the secure and value-preserving flow of foreign exchange reserve assets.

Thank you.

Reuters:

Last year, the Chinese economy maintained a low inflationary trend, with certain months experiencing simultaneous CPI and PPI declines. This raised concerns in the market about deflationary pressures. How does the central bank view the price trends this year? What policy measures will be taken to address potential deflation risks?

Pan Gongsheng:

Thank you for your questions. Price trends are a matter of great concern. I would like to share some perspectives on this.

The issue has drawn widespread attention from media journalists and scholars. When discussing this matter, it's important to analyze it from a broader perspective and over a slightly longer period. We need to examine the trajectory of price changes in major global economies and China over the past few years and the underlying logic behind them. I remember, a few years ago, when the pandemic hit, that to tackle the crisis effectively, major global economies generally implemented loose fiscal and monetary policies. The pandemic caused significant disruptions to the global supply chain, compounded by geopolitical events like the Russia-Ukraine conflict. As a result, major economies saw a rapid increase in inflation. The CPI inflation rate in the U.S. peaked in June 2022 at 9.1%, while the highest rate in the eurozone was 10.6% in October 2022.

For China, we adhered to normal monetary policies during the pandemic, avoiding excessive tightening or loosening. Our industrial chain and supply capacity remained robust, ensuring stable operations. Despite global high inflation, our country's price levels remained generally stable, without significant issues of inflation or deflation. In 2021 and 2022, China's CPI increased by 0.9% and 2%, respectively.

After the pandemic, major central banks in the U.S. and Europe swiftly and intensively adjusted their monetary policies in response to high inflation. In just over a year, the Federal Reserve increased interest rates 11 times, raising the policy interest rates by 525 basis points. Similarly, the European Central Bank raised its rates 10 times, with an upward adjustment of 450 basis points. From a historical perspective, it's quite rare to see such rapid and intense adjustments to policy interest rates within such a short period. Meanwhile, the global supply chain has gradually recovered since the end of the pandemic, leading to an overall decline in commodity prices. We have noted that inflation levels in the U.S. and Europe have fallen from the previous high of around 10% to the current level of approximately 3%. We believe that the rapid and unexpected decline in inflation levels in developed economies also has implications for prices in China. I just provided a global perspective on this issue. Figuratively speaking, it's like inflation levels in developed economies falling from the 10th floor to the third floor, while China's decline is from the second floor to the ground. This gives us the overall macro context.

From a domestic perspective, there is insufficient effective demand, overcapacity in certain industries, weak social expectations, and low price levels. In 2023, the CPI increased by only 0.2%, marking a significant decline compared to the previous year. International financial organizations, such as the International Monetary Fund, along with various financial institutions in the market, also predict that China's price levels will experience a moderate rebound in 2024, driven by sustained improvements in domestic demand and changes in external price conditions.

Referring to the second question, what measures will the PBC take? We will intensify cross- and counter-cyclical adjustments when employing monetary policy tools, fostering a conducive monetary and financial environment for economic growth and price stability. I would like to share three key points with you all.

First, we will prioritize the maintenance of price stability and fostering a moderate price rebound as a crucial aspect of our monetary policy. This entails a steadfast commitment to monetary policy objectives, ensuring currency stability to promote economic growth.

Second, we will optimize the allocation of financial resources. We will guide financial institutions to scientifically assess risks, restricting financing supply to industries with overcapacity, and meeting reasonable consumer financing needs in a more targeted manner. 

Third, we will enhance coordination between financial policies and other measures. This extends beyond the financial domain, addressing broader macroeconomic considerations. It involves leveraging policy synergies to boost household income, create more employment opportunities, strengthen the social security system, and fully implement a consumer-driven strategy. The primary objective is to support the expansion of domestic demand, facilitate supply-demand alignment, and promote a positive economic cycle. Thank you.

Economic Daily:

China's economic development is facing and will face challenges and opportunities. Given this, how will the central bank determine the orientation of monetary policy? Thank you. 

Pan Gongsheng:

I believe the vast majority of journalists here today would like to ask the same question, which is very important and is of great public concern .

In 2023, China's economy witnessed rapid recovery after the country's smooth transition in its COVID-19 response. The Chinese economy sustained its recovery momentum, and steady progress was made in pursuing high-quality development. According to data released recently by the NBS, China's GDP grew 5.2% last year, sustaining high-speed growth. China's economy is still facing some difficulties and challenges, such as the aforementioned lack of effective demand, overcapacity in some industries, weak market expectations , and external uncertainties. However, there are many positive factors from the perspective of the central bank. We should adopt a big-picture mind. China's monetary policy was prudent over the past few years compared to some developed economies which “”tend to make drastic changes to their monetary policy Moreover, the country's monetary policy adjustment and the transmission mechanism have improved, which has created favorable conditions for supporting its economic growth in a sustainable way.

There is currently ample space for monetary policy. We will ensure a balance between short-run and long-run equilibrium, maintain steady growth while guarding against risks, and maintain a fine balance between internal and external equilibrium. We will strengthen counter-cyclical and cross-cyclical adjustments, and create a good monetary and financial environment for high-quality economic development. The central bank will lower the reserve requirement ratio (RRR) by 50 basis points on Feb. 5 to inject long-term liquidity of about 1 trillion yuan ($140 billion) into the market. The central bank will also lower the interest rates for re-lending and re-discount for loans to the agriculture sector and small enterprises by 0.25 percentage point from tomorrow. Moreover, we will continue to promote a steady reduction in social comprehensive financing costs. I'd like to make a detailed introduction from the following four aspects:

First, we will maintain the growth of total social financing within a reasonable range. We will continue to make use of tools for improving liquidity, including the RRR, re-lending and re-discount facilities, the medium-term lending facility and open market operations, in a bid to provide strong support for promoting the growth of credit and social financing within a reasonable range. China's average RRR is 7.4%, meaning China still has ample room to maneuver compared to other major economies. The RRR is an effective tool to supplement medium- and long-term liquidity in the banking system. The lowering of the RRR by 50 basis points will take effect on Feb. 5, which will inject long-term liquidity of about 1 trillion yuan ($140 billion) into the market.

Second, we will focus on equilibrium of both the interest rate and foreign exchange rate of the RMB. Monetary policy operations will mainly serve the domestic economy when it comes to interest rates. There is still a gap between current price levels and price targets. You may be aware that major Chinese banks cut deposit rates in November and December. We will lower the interest rates for re-lending and re-discount for loans to the agriculture sector and small enterprises to 1.75% tomorrow, down from 2%. All these measures will lower the loan prime rate, or LPR, a market-based benchmark lending rate. Moreover, expectations that the U.S. Federal Reserve will shift its monetary policy can help expand China's room for monetary policy operations.

We will maintain the flexibility of the foreign exchange rate of the RMB, and ensure that the exchange rate serves as an automatic stabilizer in adjusting the macro economy and for the balance of payments. We will adhere to the principle that the exchange rate should be mainly determined by the market, and prepare for worst-case scenarios. Efforts will be made to expand policy tools to deal with the situation, and prevent unilateral consistent expectations and their self-reinforcement. By doing so, we aim to keep the RMB exchange rate basically stable at a reasonable and balanced level.

Third, we will improve efficiency of monetary policy in terms of structure. Increased efforts will be made to manage the relationship between quantity and structure, and between the existing amount and the incremental amount, in a bid to support the "five priorities." Credit lines for inclusive loans to micro and small businesses will be raised from 10 million yuan per borrower to 20 million yuan per borrower. We will continue to leverage support tools for inclusive loans to micro and small businesses and the targeted re-lending facilities to boost public-interest elderly care services. We will also increase the re-lending and re-discount quotas for the agriculture sector and small enterprises, and expand carbon-reduction support tools to ensure that more enterprises in more areas can receive support. Furthermore, efforts will be made to integrate existing tools and plans and develop new ones for supporting technological innovation and digital finance. Following market-oriented and law-based principles, we will support debt restructuring and other methods to revitalize financial resources that have been inefficiently allocated, so as to make better use of funds.

Fourth, we will ramp up efforts to improve policy coordination and pool strengths. The overall debt scale of government departments, especially that of the central government, is not high compared to some other countries. There is still ample room for proactive fiscal policies. China issued an additional 1 trillion yuan (about $137 billion) in treasury bonds in the fourth quarter of 2023, and the large majority of them will be used in 2024, in an effort to let investments really work. Given the low cost for issuing government bonds and a lower share of domestic holdings of government bonds, there is much room for increasing government bonds purchases. China's monetary policy is more capable of maintaining liquidity ample, issuing large-scale government bonds and supporting investment projects.

Thank you.

Thecover.cn:

What do you think of China's credit supply in 2023? How do you view the relatively large fluctuations in certain quarters or months? Will China continue to maintain a strong credit expansion in 2024? Thank you. 

Pan Gongsheng:

Since Mr. Xuan is responsible for the monetary policy department, he is in the position to answer your questions. 

Xuan Changneng:

This issue I believe is of great concern to the market entities and media. Mr. Pan provided some information earlier about credit support for the real economy. 

In 2023, the PBC utilized the dual functions of monetary policy tools in terms of aggregate and structure , guiding financial institutions to enhance loan support for the real economy. Consequently, the total scale of credit loans registered steady and rapid increase. By the end of 2023, outstanding RMB loans stood at 237.6 trillion yuan, marking a 10.6% increase year on year. This represented an increase of 22.7 trillion yuan in 2023, 1.3 trillion yuan more than that of 2022. The structure of loans also continued to improve. By the end of 2023, outstanding inclusive loans to micro and small businesses had increased by 23.5% year on year. The growth rates of loans to enterprises that use special and sophisticated technologies to produce novel and unique products, as well as to technological SMEs, were 18.6% and 21.9% year on year, respectively. Outstanding medium- and long-term loans to the manufacturing sector grew by 31.9% year on year, with loans to high-tech manufacturing industries surging by 34% and outstanding medium- and long-term loans to the infrastructure industry increasing by 15% year on year. The growth rates of loans to major sectors and weak links significantly exceeded the 10.6% growth rate of total loans.

Additionally, you mentioned that loan data fluctuated widely in certain quarters and months. According to previous years' data, the first quarter, especially the first month of the year, typically sees bigger increases in loans, while April, July, and October usually experience smaller increases. These seasonal changes are caused by objective economic and financial factors. As the saying goes, "The whole year's work depends on a good start in spring." Market entities often anticipate a strong start at the beginning of the year, and major projects typically commence early in the year. Spring plowing and wage payments before the Chinese New Year also lead to substantial financing needs. With pandemic prevention and control entering a new phase, the accumulated loan needs of the past three years were simultaneously released, resulting in a significant rise in loans in the first quarter of 2023. Economic recovery needs stable and sustainable loan support. The key is moderate control, respecting objective laws while avoiding abnormal loan behavior substantially diverging from previous levels. 

Regarding the loan situation in 2024, it is projected to maintain rapid growth in the first quarter, resulting from strong starts by banks and the benefits delivered by policies in the second half of 2023. The PBC will continue to guide financial institutions to ensure stable and sound support for the real economy, with loans being issued more evenly throughout the year.

Last but not least, I suggest not over-interpreting credit loan data for a single month. Rather, we should adopt diverse approaches to evaluate financial support to the economy, such as referring to the social financing scale, which covers a wider range, and observing changes in financing costs by referring to interest rates. Thank you.

Yicai:

Preventing and defusing financial risks, especially forestalling systemic risks, is essential for our financial work these years. Can you introduce measures to prevent financial risks, especially systemic risks? Thank you.

Pan Gongsheng:

Thank you. Preventing and controlling financial risks has always been a critical issue for the financial industry. The central government attaches great importance to this and has made systemic arrangements at the Central Economic Work Conference and the Central Financial Work Conference. I would like to share some points from a macro perspective on preventing and defusing financial risks based on the central government's arrangements.

First, balancing economic growth, economic structural adjustment, and financial risk prevention is essential. The economy underpins finance, and finance reflects economic performance. Many problems in economic performance can lead to financial issues and intertwine with financial risks. The key to eradicating the root of financial risks lies in balancing economic growth, economic structural adjustment, and financial risk prevention, namely achieving a balance between development, reform, and stability, which is often mentioned.

Second, we should strengthen financial supervision, improve mechanisms for risk prevention, early warning, and disposal, and ensure a robust financial safety network. Here are several points. First, we should enhance enterprise governance and risk management within financial institutions, which serve as the first line of defense for preventing and defusing major risks. Second, we need to tighten financial supervision, leverage the role of macro-prudential management, micro-prudential supervision, and behavioral supervision , and strengthen coordination among them to form an integrated effort. Third, advancing the construction of a financial safety network is essential. We need to improve our ability to monitor and evaluate risks and give early warning, and optimize early rectification mechanisms for financial risks with stringent restrictions. We need to establish a risk disposal responsibility mechanism that aligns authority with responsibility and is compatible with incentives. We should fully utilize the role of industry guarantee funds and financial stability guarantee funds and enhance the function of professional risk disposal of deposit insurance. Fourth, we will strengthen legal guarantees for financial stability, accelerating the creation of laws and regulations, including a law on financial stability.

Third, we should defuse risks in major sectors in an orderly way and mitigate overall financial risks. In recent years, a number of major risks have been effectively addressed, and financial institutions have generally maintained steady performance. Since 2023, various departments and localities have implemented effective measures to support the resolution of risks in real estate and local debts. Under the guidance of financial management departments, financial institutions have provided significant support to ensure the stability of financing channels for real estate enterprises, especially top enterprises. Recently, the PBC, in conjunction with the NFRA, will issue a policy on improving operating property loans, encouraging prominent real estate enterprises to revitalize stock assets, expand capital usage, and thus improve liquidity. The policy will be released either this evening or tomorrow evening. Local government debts are highly localized, and it is primarily a few underdeveloped areas that are facing debt repayment difficulties, exerting limited impact on the economic and financial aggregate. I provided a comprehensive explanation on this at a conference in Hong Kong in November 2023. The PBC will continue to collaborate with administrative departments of industries and local governments to provide financial support and defuse risks. 

Fourth, we will coordinate financial openness with security, continually enhancing the level of financial risk prevention and control within the framework of an open macroeconomic landscape. First, in recent years, we have systematically promoted the opening of the financial services industry and financial markets, continually improving the facilitation of cross-border trade and investment. Second, we are deepening the reform of the RMB exchange rate mechanism, increasing exchange rate resilience, while simultaneously strengthening balanced macroeconomic governance of cross-border financial flows to maintain the stability of the foreign exchange market. Mr. Zhu Hexin provided some specific interpretations earlier. Currently, the foreign exchange hedging ratio for enterprises is around 25%, and enterprises have greatly increased their awareness of exchange rate hedging. At the same time, the proportion of RMB in cross-border trade payments has reached around 25%, reducing currency mismatch risks. These two 25% figures do not overlap because one pertains to exchange rate hedging and the other to using the RMB. Additionally, China's foreign exchange market operates more resiliently, with more mature market participants, and regulatory authorities in the foreign exchange market are more composed and experienced in the face of market changes. Third, we will advance international financial cooperation, actively participate in global financial governance, strengthen multilateral and bilateral dialogues, lead the establishment of China-U.S. and China-EU financial working groups, enhance coordination of macroeconomic policies, and jointly reinforce the global financial security network. Last week, the PBC and the U.S. Treasury Department convened the third meeting of the China-U.S. Financial Working Group, with Deputy Governor Xuan Changneng leading the Chinese delegation. Fourthly, we will refine measures for the secure management of financial industry data, ensuring safer and more convenient cross-border data flows with clearer regulations.

In the next steps, the PBC will resolutely implement the Central Committee's various arrangements for guarding against and defusing financial risks. We will adhere to a systemic approach and consider worst-case scenarios to ensure that the bottom line of preventing systemic financial risks is maintained. These are the four aspects I shared with you at the macroeconomic level. Thank you.

Market News International:

The RMB depreciated against the U.S. dollar in 2023. How does the central bank view the outlook for the RMB exchange rate this year? And what factors might affect the exchange rate? Thank you.

Pan Gongsheng:

Thank you for your question. The questions we addressed earlier are somewhat related to the points you just raised.

Last year, the onshore RMB exchange rate against the U.S. dollar fell by 2%, while the offshore rate declined by 2.5%. The currency index of emerging market countries dropped by 3.8%. In our neighboring countries, Japan experienced a 7.3% decline in the yen, and the South Korean won depreciated by 2.7%. Combining these factors provides a more comprehensive view of the changes in the RMB exchange rate last year. Short-term factors influencing exchange rates are diverse, including economic growth, monetary policy, financial markets, geopolitical factors, and risk events. However, the medium- to long-term trends fundamentally depend on economic fundamentals. Therefore, our assessment indicates that in 2024, the RMB exchange rate will continue to maintain basic stability at a reasonable and balanced level.

The factors supporting the stability of the RMB exchange rate can be summarized as follows:

First, the domestic economy is performing steadily and robustly. China's economy exhibits a solid fundamental base, maintaining a long-term positive trend. This forms a crucial foundation for the overall stability of the RMB exchange rate.

Second, there have been some changes in the external international financial environment. As I mentioned earlier, recent market shifts regarding the U.S. Federal Reserve's monetary policy and the diminishing momentum of the U.S. dollar appreciation are widely recognized, in my opinion. The anticipated improvement in the alignment of monetary policy cycles between China and the U.S. is expected to contribute to the alleviation of interest rate differentials, fostering greater stability and balance in the RMB exchange rate and cross-border financial flows.

Third, RMB assets possess appealing investment and hedging value. The continuous opening up of China's financial markets has made RMB bonds, as one of the few globally stable financial markets, highly attractive to overseas investors. Since September of last year, China's RMB bond market has witnessed four consecutive months of net inflows, with overseas investors holding nearly 500 billion yuan of domestic bonds.

Fourth, the microeconomic foundation for exchange rate stability becomes more solid. A basic balance in international payments, with the ratio of the current account balance to GDP staying within a reasonable range, standing at 1.6% in the first three quarters of 2023. Cross-border trade and investment facilitation continue to improve, ensuring balanced bidirectional cross-border financial flows. The foreign exchange market has enhanced resilience, and the participants have become more mature. I have been serving as the administrator of the SAFE since 2015, and comparing the current situation with that time over the past eight years, I believe the maturity of China's foreign exchange market has significantly improved. Moreover, there is a more extensive use of exchange rate hedging tools, and the RMB's internationalization level has rapidly increased. Business entities are now better equipped to cope with external shocks and exchange rate fluctuations.

The Central Economic Work Conference and the Central Financial Work Conference emphasized the need to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Historical practices have repeatedly demonstrated that the PBC and the SAFE, as regulators of the foreign exchange market, possess the experience, capability, and confidence to address various shocks and challenges, ensuring the stable operation of China's foreign exchange market.

In the next phase, the PBC and the SAFE will adhere to the decisions and deployments of the CPC Central Committee and the State Council, maintain the market-driven determination of the exchange rate, ensure the resilience of the RMB exchange rate, and leverage the exchange rate as a macroeconomic and automatic stabilizer for international balance. Simultaneously, considerations on worst-case scenarios will be maintained, with the enrichment of response tools to prevent the risk of excessive exchange rate adjustments and the formation of unilateral consensus expectations and self-reinforcing expectations.

As we discuss financial market operations, including the foreign exchange, bond, and stock markets, I would like to share some insights into my views on the trends and changes in the foreign exchange market for this year and beyond.

The CPC Central Committee and the State Council attach great importance to the stable and sound development of the capital market. On Jan. 22, the State Council held an executive meeting to conduct targeted research and make arrangements. At present, China's macro-economy has sustained the momentum of recovery. There is ample room for macro policies and for maneuver, and the capital market has a solid foundation for stable and healthy growth. The PBC will faithfully implement the guiding principles of the State Council executive meeting and strengthen counter-cyclical and cross-cyclical adjustments of the monetary policy. With a focus on stabilizing the market and strengthening confidence, we aim to consolidate and enhance the momentum of economic recovery, and create a sound monetary and financial environment for the operation of financial markets, including the capital market.

Thank you.

Financial Times:

Currently, the interest rate spread between domestic banks' deposits and loans is gradually narrowing. We have also observed that the LPR has remained unchanged recently. How does the PBC guide commercial banks in managing their assets and liabilities? How does the PBC effectively promote the reduction of comprehensive financing costs? Thank you.

Xuan Changneng:

Thank you for your questions. These issues were also mentioned by Mr. Pan when he answered related questions just now. In particular, he just announced the relevant policies and measures that we will be launching soon. Here, I will provide an overall introduction to the work of the PBC in this regard for 2023, as well as our policy orientation.

In 2023, the PBC effectively implemented a series of interest rate policies aimed at promoting a significant reduction in comprehensive financing costs. Just as Mr. Pan mentioned, first, we lowered policy interest rates twice. In June and August 2023, we cut the interest rates of reverse repos and the medium-term lending facility by 20 and 25 basis points , respectively, leading to a continued decline in the LPR. Second, we adjusted and optimized housing credit policies. We continued to implement the dynamic adjustment mechanism for first-home mortgage rates , and promptly reduced the lower limit of second-home mortgage rates by 40 basis points at the end of August, encouraging banks to lower interest rates on existing first-home mortgage loans. Third, we further promoted the liberalization of deposit interest rates. Based on the rapid growth of household savings and the significant decline in lending rates, major banks lowered deposit rates three times, with medium- and long-term deposit rates falling even further.

Overall, these measures have effectively promoted a significant decline in the costs of corporate financing and consumer credit. In 2023, the weighted average interest rate of corporate loans was 3.88%, down 0.29 percentage point over the previous year, continuing to hit a new low since statistics were collected. Interest rates on more than 23 trillion yuan of existing mortgage loans were lowered, with an average decrease of 0.73 percentage point, resulting in a reduction of approximately 170 billion yuan in annual interest payments for mortgage borrowers. The overall decline in interest rates has effectively reduced the interest burden on enterprises and residents, thereby stimulating loan demand, optimizing the allocation of financial resources, and improving the unimpeded flow of domestic economic circulation.

As Mr. Pan mentioned, the PBC will lower re-lending and rediscount rates to support agriculture and small businesses, and domestic banks have already moderately lowered deposit rates. These measures will contribute to reducing comprehensive financing costs. Moving forward, the PBC will continue to enhance the relevance and coordination of interest rate policies through reform, giving priority to China's monetary policy, balancing internal and external policies, and further leveraging the positive role of interest rate policies in promoting consumption, stabilizing investment, and expanding domestic demand. There are several aspects to consider:

First, we will reasonably maintain the level of interest rates. Based on our assessment of future price changes, we will proactively manage the actual interest rate level, ensuring it aligns with the requirements for achieving potential economic growth.

Second, we will comprehensively consider the relationship between deposit interest rates, financial management rates of return, dividend rates, and more, and better utilize the market-based adjustment mechanism for deposit interest rates. We will support banks in reducing liability costs while maintaining a reasonable and orderly market competition environment, thereby creating opportunities to lower loan interest rates.

Third, we will encourage banks to increase government bond sales among residents. This initiative aims not only to provide residents with more investment products that offer safety, liquidity, and profitability but also to further open up diversified channels for converting savings into investments.

Fourth, we will improve the formation mechanism of the LPR and encourage quoting banks to improve quotation quality on the premise that banks ensure sustainable support for the real economy and risks are kept under control. Meanwhile, we will strengthen monitoring of loan interest rates and enhance self-discipline management to prevent funds from idling in the corporate sector and to curb arbitrage.

Fifth, we will implement a dynamic adjustment mechanism for first-home mortgage rates. We will cooperate with local governments to adopt the lower limit of mortgage rate policies according to local conditions, and optimize interest rate structures for personal loans, including mortgage loans, consumer loans, and business loans. This will support the stable and healthy development of the real estate market.

Additionally, the PBC will continue to cooperate with relevant departments to rectify and regulate unreasonable enterprise-related service charges by banks, and effectively reduce the comprehensive financing costs for enterprises.

CCTV:

The CPC Central Committee has issued a clarion call to move faster to build China into a financially strong country. What considerations does the PBC have in terms of implementation? Thank you.

Pan Gongsheng:

Thank you. I will take this question. Since the 18th CPC National Congress, China's reform of the financial system has made significant progress. The construction of a modern financial regulation system, financial supervision system, financial institution system, financial product and service system, and financial infrastructure system continues to advance. The role of finance in contributing to the real economy and preventing and controlling risks has been significantly enhanced. With China's rise in political and economic status, the international influence of the PBC and the level of RMB internationalization have greatly improved. These developments have laid a good foundation for boosting China's strength in finance.

Currently, China's banking industry ranks first globally in terms of asset size. Its bond market ranks second in the world, and its foreign exchange reserves have ranked first worldwide for 19 consecutive years. The development of digital finance, green finance, and inclusive finance is at the forefront of the world. The RMB holds the third-largest overall share within the International Monetary Fund's Special Drawing Rights currency basket, and over 80 countries and economies have included the RMB as a reserve currency.

Building China into a financial powerhouse is a long-term goal and a systematic project. It requires adhering to the basic principles of marketization, rule of law, and internationalization, and it requires long-term efforts and perseverance. We must continue the reform aimed at improving the socialist market economy and continuously enhance and improve financial market's role in allocating resources. We need to continuously improve the rule of law in finance and enhance the transparency, stability, and predictability of financial systems and policies. We should coordinate deep-level financial reform and high-standard financial opening-up, continuously promote the opening up of the financial service industry and financial market to the outside world, enhance the level of trade and investment facilitation, and strengthen the building of financial security capabilities and make sure they are compatible with the level of openness.

General Secretary Xi Jinping has pointed out that a financial powerhouse should have six key core financial elements and emphasized the need to have a strong currency and a strong central bank. Currency is the foundation of the financial system as well as an overall reflection of a nation's comprehensive strength, international competitiveness, and macroeconomic governance capabilities. A strong currency can better fulfill the functions of measure of value, medium of exchange, methods of payment, and store of value. It enhances the confidence of currency holders, meets the needs of opening up and cross-border investment and financing, and provides a favorable monetary and financial environment for the healthy development of the national economy.

We will focus more on establishing a two-pillar regulation framework comprising of sound monetary policy and macro-prudential policy in order to achieve the dual objectives of currency stability and financial stability. We will accelerate the construction of a modern central bank system, with responsibilities centered around monetary policy, prevention and control of systemic financial risks, financial stability and national financial security, international financial governance and cooperation, financial markets, financial infrastructure construction, and financial management and services. We will continue to promote supply-side structural reforms in the financial sector, optimize the system of financial institutions and the structure and distribution of the financial market, and accelerate the development of a modern financial system with Chinese characteristics.

Meanwhile, the People's Bank also undertakes important responsibilities in key tasks such as building strong financial institutions, strong international financial centers, robust financial supervision, and high-caliber teams of financial professionals. We will adhere to the centralized and unified leadership of the CPC Central Committee in financial work, deeply understand and grasp the political and people-oriented nature of financial work, firmly follow the path of developing finance with Chinese characteristics and effectively carry out various tasks. We will continue to promote high-quality development of the financial sector and vigorously build China into a financial powerhouse. Thank you.

21st Century Business Herald:

Currently, small and micro enterprises are showing an uneven recovery. In terms of financial support for private enterprises, what further measures can be taken to better stimulate the development of business entities? Thank you.

Zhu Hexin:

Thank you for your question. Just now, Governor Pan Gongsheng announced two important measures that directly benefit the development of our private economy. Supporting the development of the private economy has been the consistent policy of the CPC Central Committee, and the private economy is an essential component of our economic system. The private economy is characterized by its large volume and extensive coverage, encompassing various aspects related to the national economy and people's well-being. Therefore, we must spare no effort in supporting its development. The private economy plays a crucial role in stabilizing growth, improving people's livelihoods, promoting entrepreneurship, and increasing job opportunities. The private economy is of high importance – a few years earlier, it had accounted for more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovation achievements, more than 80% of urban employment and more than 90% of enterprises. 

In our financial services for the real economy, the private economy is an important field. Therefore, the People's Bank has made significant and effective efforts in this regard. On one hand, it is about how to implement this concept. As everyone knows, according to the requirements of the central authorities, we have always upheld and improved China's fundamental socialist economic systems and worked unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. We see the private economy as equal to the public economy and treat private enterprises the same as state-owned enterprises. On the other hand, it is not just about the concept but also about putting it into action. This involves effectively implementing our financial policies through financial institutions. The most pivotal part is how to fully dedicate ourselves to implementing measures in the private economy and promote the private economy as a vital production force and a significant source of growth. In this regard, we have achieved significant results. Previously, there were concerns about the difficulties and high costs of financing. However, in reality, we have made significant progress in recent years. Here, we can use a set of data to illustrate the achievements we have made in serving the private economy. By the end of last year, outstanding loans to privately owned enterprises exceeded 41.2 trillion yuan, with an increase of 3.8 trillion yuan for the entire year. This represents a year-on-year increase of 950 billion yuan. The number of private enterprises that were granted credit lines reached 7.16 million, with an increase of 1.16 million for the entire year, marking a year-on-year increase of 80,000. In November, the weighted average interest rate for newly issued loans to privately owned enterprises was 4.24%, which decreased by 23 basis points compared to the same period in the previous year.

This time, everyone also noticed the central financial work conference's emphasis on the five priorities of technology finance, green finance, inclusive finance, pension finance, and digital finance. These five priorities are closely related to the private economy and private enterprises. Therefore, when carrying out these tasks, we must pay more attention to providing financial support for the development of the private economy. The People's Bank will primarily focus on the work in the following areas:

First, we will focus on the implementation of policy incentives. We will continuously improve policy tools. To start with, the People's Bank has announced significant positive news and two major measures. These two measures are part of our policy toolbox. Who will implement them? Financial institutions. What should financial institutions do? We must make every effort to promote the implementation of policies, fulfilling the aspirations of financial institutions and the requirements of private economy development. For example, by effectively integrating aspects, such as due diligence and exemption from accountability, and performance examination, we can ensure that our policy tools play a greater role.

Secondly, we will enhance our service capabilities, with a primary focus on financial institutions. Through the utilization of technology and the dismantling of information barriers, we can address certain gaps in supporting the private economy and enterprises. Specifically, issues such as credit loans and initial funding requirements for private enterprises can be resolved through technological empowerment and shared information.

Thirdly, we will ensure diversification of fund sources. This involves traditional credit support as well as direct financing markets such as bonds, a domain in which the PBC has made significant strides. It is noteworthy that technology companies also require support from the capital market. Meanwhile, it's worth noting that there is a significant presence of technology-oriented private enterprises within the private sector, a focus area for the PBC. On one hand, there is an emphasis on increasing loans to tech-focused businesses and issuing innovation and technology-related financing instruments, aiming to support private enterprises in boosting their investments in technology and research and development. The second aspect involves collaborating with relevant enterprises and departments to promote the smooth flow of various stages in the venture capital industry, including fundraising, investment, management, and exit processes for equity investment. This is aimed at delivering high-quality services for the development of early-stage private technology enterprises. To sum up, the private economy and private enterprises hold great importance, and financial institutions and enterprises should step up to play a more substantial role. Thank you.

Shou Xiaoli:

Due to time constraints, we'll take the last question.

Phoenix TV:

We would like to inquire about the progress made by the PBC in recent years towards enhancing the openness of the mainland's financial industry to Hong Kong. Additionally, could you share how the new measures implemented by the PBC will further financial cooperation between the mainland and Hong Kong and integrate Hong Kong more effectively into the overall national development? Thank you.

Pan Gongsheng:

Thank you for your questions. Over the past few years, the PBC, along with relevant Hong Kong institutions, has consistently worked towards implementing major projects annually. The high-level opening up is a fundamental national policy. Hong Kong is a major international financial center, the world's largest offshore RMB market, and a crucial asset management and private wealth management center in Asia. The PBC has consistently supported the development of Hong Kong as an offshore RMB hub, promoting high-level openness of the mainland's financial industry to Hong Kong and safeguarding Hong Kong's status as an international financial center and its long-term prosperity and stability.

In recent years, the PBC, in collaboration with mainland financial regulatory authorities, has initiated and continuously refined programs such as the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects, the Bond Connect program, the Cross-boundary Wealth Management Connect, and Swap Connect. These programs make it much easier for international investors to manage mainland stocks and bonds in Hong Kong. Similarly, they provide Hong Kong residents with convenient access to mainland wealth management products.

To further advance the high-level openness of the financial sector of the Chinese mainland, deepen financial cooperation between the mainland and Hong Kong, and solidify and enhance Hong Kong's status as an international financial center, the PBC and the Hong Kong Monetary Authority (HKMA), building on thorough preparatory work, have decided to introduce six policy measures. Now, I invite Xuan Changneng, vice governor of the PBC, to elaborate on these six measures. Mr. Xuan oversees international business at the PBC. 

Xuan Changneng:

Now, I will detail the six measures aimed at deepening financial cooperation between Hong Kong and the mainland. The PBC and the HKMA have jointly launched six financial measures, including various aspects such as financial market interconnection, cross-border capital facilitation, and the deepening of financial cooperation. These measures can be summarized as "three connections and three conveniences."

Specifically: First, RMB bonds under the Bond Connect program will be deemed eligible collateral for the HKMA's RMB Liquidity Facility. Second, there will be a further opening up for foreign investors to participate in the onshore repurchase agreement market, supporting all foreign institutional investors that have entered the inter-bank bond market to engage in bond repurchasing, including through the Bond Connect channel. Third, detailed implementation guidelines for optimizing the Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) will be released to expand and facilitate individual investment channels in the GBA. Fourth, policies will be implemented to facilitate measures on the remittances for property purchases by Hong Kong and Macao residents in the mainland cities in the GBA to better meet the housing needs of residents. Fifth, the scope of pilot projects for collaboration on cross-boundary credit referencing between Shenzhen and Hong Kong will be expanded to facilitate cross-boundary financing for Shenzhen and Hong Kong enterprises. Sixth, the cross-boundary e-CNY pilot zones will be expanded to bring more convenience to Hong Kong and mainland residents and enterprises.

Next, the PBC will closely collaborate with the mainland and Hong Kong financial management departments to jointly promote the implementation of these policies, further optimize financial services, strengthen financial cooperation, and support the continued development of Hong Kong as an international financial center. Thank you.

Pan Gongsheng:

In preparation for the policy measures just announced by Mr. Xuan, the PBC, along with relevant mainland financial management departments and the HKMA, has undertaken substantial preparatory work. Some of the policy documents for these measures will be released later this evening by the PBC and the HKMA in coordination with other relevant departments.

As the Chinese Spring Festival is approaching, with fewer than 20 days to go, I would like to take this opportunity to extend my warmest wishes to all the reporters and your family members for a joyful, prosperous, and healthy Chinese New Year! Thank you all.

Shou Xiaoli:

Thank you to all the presenters, and thanks to all the reporters for your participation. That concludes today's press conference.

Translated and edited by Xu Xiaoxuan, Wang Qian, Zhu Bochen, Wang Yiming, Mi Xingang, Liu Sitong, Qin Qi, Huang Shan, Gong Yingchun, He Shan, Liu Jianing, Yuan Fang, Wang Ziteng, Ma Yujia, Yan Bin, Wang Wei, Zhang Rui, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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Read in Chinese

Speakers:

Mr. Yuan Ye, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Mr. Zhuang Shuxin, secretary general of the SASAC

Mr. Li Bing, deputy secretary general of the SASAC and director of its Bureau of Financial Oversight and Operational Evaluation

Mr. Xie Xiaobing, a person in charge of the Bureau of Property Right Management of the SASAC

Chairperson:

Mr. Xie Yingjun, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 24, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Yuan Ye, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), to brief you on enhancing core functions, improving core competence and better realizing the high-quality development of centrally administered state-owned enterprises (SOEs), and take your questions. We are also joined by Mr. Zhuang Shuxin, secretary general of the SASAC; Mr. Li Bing, deputy secretary general of the SASAC and director of its Bureau of Financial Oversight and Operational Evaluation; and Mr. Xie Xiaobing, head of the Bureau of Property Right Management of the SASAC.

Now, let's give the floor to Mr. Yuan Ye for a brief introduction.

Yuan Ye:

Thank you. Ladies and gentlemen, good morning. I am delighted to meet with friends from the media and brief you on state assets and SOEs.

The year 2023 that has just passed was the first year of fully implementing the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and a year of economic recovery and development after three years of COVID-19 prevention and control. It was also a crucial year for state-owned assets and SOEs to remember their mission and responsibilities and restart on a new journey with continued efforts. General Secretary Xi Jinping issued important instructions on the work of state-owned assets and SOEs. He presided over several important meetings to review significant documents regarding state-owned assets and SOEs, inspected multiple SOEs, and delivered important speeches. At the recently held Central Economic Work Conference, he made significant arrangements for the reform and development of SOEs. This has provided clear guidance on the direction and fundamental principles for us to solidly carry out the work related to state-owned assets and SOEs, promote the high-quality development of SOEs, and better fulfill their functions, missions and responsibilities.

Over the past year, we have thoroughly implemented the guiding principles of General Secretary Xi Jinping's important speeches and instructions, earnestly carried out major arrangements made by the CPC Central Committee and the State Council, focusing on enhancing core functions and improving core competence. We have adhered to the comprehensive leadership of the Party over SOEs, deepened the reform of state-owned assets and SOEs, enhanced the ability to create value, intensified efforts in technological innovation, accelerated the development of strategic emerging industries, and promoted SOEs to better fulfill their economic, political and social responsibilities. Remarkable achievements have been made in various aspects, making significant contributions to starting the new journey on a positive note. In 2023, central SOEs achieved operating income of 39.8 trillion yuan, with a total profit of 2.6 trillion yuan and a net profit attributable to the parent company of 1.1 trillion yuan, realizing steady and high-quality growth. The cumulative completion of fixed asset investment (including real estate) was 5.09 trillion yuan, a year-on-year increase of 11.4%, among which, strategic emerging industries completed investment of 2.18 trillion yuan, a year-on-year increase of 32.1%; and research and development funding reached 1.1 trillion yuan, surpassing the 1-trillion mark for two consecutive years.

This year marks the 75th anniversary of the founding of the People's Republic of China and is a crucial year for achieving the goals and tasks of the 14th Five-Year Plan. State-owned assets and SOEs will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, comprehensively implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, thoroughly implement the arrangements of the Central Economic Work Conference, adhere to the general principle of seeking progress while maintaining stability, and firmly grasp the necessity of adhering to high-quality development in this new era. We will deeply implement actions to enhance the reform of SOEs, focus on improving the innovation and value creation capabilities of central SOEs, further optimize and restructure the state-owned economy, accelerate the construction of a modern industrial system, and better leverage the roles of technological innovation, industrial control and safety support. This is aimed at continuously driving the economy to achieve efficient improvements in quality as well as reasonable growth in quantity and make new contributions to China's endeavor to build itself into a stronger country and rejuvenate the Chinese nation on all fronts by pursuing Chinese modernization.

Next, my colleagues and I are willing to answer your questions. Thank you.

Xie Yingjun:

Thank you, Mr. Yuan. The floor is now open for questions. Please identify the media outlet you represent before asking your questions.

China News Service:

The Central Economic Work Conference stated that we should seek progress while maintaining stability, promote stability through progress, and establish the new before abolishing the old. What work will the SASAC and central SOEs take as priorities to better contribute to consolidating and strengthening the momentum of economic recovery? Thank you.

Yuan Ye:

Thank you for your question. I’ll answer this. As you mentioned, the Central Economic Work Conference issued plans and arrangements for the work this year. The SASAC has conscientiously implemented the plans of the conference. We made detailed and overall arrangements for implementation at a meeting of heads of central SOEs held not long ago. At the meeting, we proposed that in the next stage of development, central SOEs should pay more attention to high-quality development and focus on improving value creation capacity during the process. In terms of value creation capacity, we encourage central SOEs to enhance value in five aspects. First is value-added; second is functional value; third is economic value added; fourth is the proportion of income and value added of emerging strategic industries; and fifth is brand value. The purpose is to guide enterprises to resolutely implement the guiding principles of the Central Economic Work Conference; to seek progress while maintaining stability, promote stability through progress and establish the new before abolishing the old; to continue to strengthen core functions and improve core competitiveness; to grow bigger, better, and stronger in the process of serving national strategies; and to better achieve unity between economic, political and social benefits. 

To be specific, by encouraging central SOEs to enhance value added, we guide them to promote the development of the state-owned sector and strive to achieve satisfactory returns for shareholders, profits for companies, income for employees and tax revenues for the country, thereby making a greater contribution to national economic growth. By emphasizing improvement in functional value, we guide central SOEs to play a proactive role in serving national strategies, safeguarding national security, and safeguarding and improving people’s well-being, and to help bring into full play the strategic support of the state-owned sector. By calling for greater economic value added, we guide central SOEs to optimize investment direction and layout, curb the impulse for blind investment, reduce inefficient and ineffective capital investment, and generate more profitable income and profit with operating cash flow. By emphasizing increased proportion of income and value added of emerging strategic industries, we encourage central SOEs to accelerate the shift to innovation-driven growth, and to play a leading role in developing new productive forces and making new growth drivers stronger at a faster pace. By highlighting brand value, we encourage central SOEs to enhance capacity-building and image-building, improve the added value and leading role of brands, and accelerate the building of world-class enterprises. 

Specifically, we will give priority this year to work in five aspects.

First, we will focus on improving quality and performance and make every effort to advance the continued recovery of China’s economy. At the beginning of this year, the SASAC launched a special action to enhance quality and performance and ensure stable growth and give play to the key role of effective investment. At the same time, efforts are being made to improve the quality of listed companies controlled by central SOEs and to enhance returns for investors. We will strengthen lean management and make more contributions to economic and social development by comprehensively improving the quality and efficiency of central SOE operations.

Second, we will focus on advancing industrial innovation through scientific and technological innovation, and develop new productive forces and advance new-type industrialization at a faster pace. We encourage enterprises to further reinforce their principal role in scientific and technological innovation and make greater efforts to gather innovative resources, strengthen organization of innovation and build a better innovation ecosystem, and speed up efforts to secure breakthroughs in core technologies in key fields. We will keep working on both emerging strategic industries and traditional industries, actively develop new industries and new arenas, and accelerate efforts to consolidate the foundation of and transform traditional industries, and make industrial and supply chains more resilient and secure, so as to provide more support for modernizing the industrial system.

Third, we will focus on deepening the reform of state-owned capital and SOEs and accelerate the building of new modern SOEs. We will carry out the action to deepen the reform of SOEs, establish a sound modern corporate system with distinctive Chinese features and a market-oriented operating mechanism, further improve supervision methods, and raise service efficiency, so as to add vitality and boost momentum for the high-quality development of enterprises.

Fourth, we will focus on enhancing the capacity for providing strategic support and meeting basic needs and better serve China's overall economic and social development. We will resolutely implement the coordinated regional development strategy and major regional strategies, optimize the distribution of major productive forces, and provide livelihood service and fundamental guarantees. At the same time, we will step up efforts to ensure the market supply and stable prices of food and strategic energy resources so as to serve the building of the new development paradigm.

Fifth, we will focus on strengthening Party leadership and Party building, and guide and safeguard the high-quality development of enterprises through high-quality Party building. In doing this, we will uphold General Secretary Xi Jinping's important thought on Party building as the overarching principle, take the rectification of problems identified in inspections as an opportunity, focus on ensuring the fulfillment of political responsibility for governance over the Party, and give priority to improving the systems for exercising full and rigorous Party self-governance. We will lay more emphasis on addressing inadequacies and shoring up weak points, on promoting standardization and institutionalization, and on giving better play to the role of Party building in enterprises. We will strive to combine strengthening Party leadership with improving corporate governance, and advance in-depth integration between Party building and corporate production and operation, to provide fundamental guarantees for high-quality development of enterprises and effectively translate the political strengths of Party building into innovation, development and competitive strengths of enterprises.

In general, we will keep to our mission in advancing the cause of the Party and the country, and resolutely play a strategic role in serving the building of a great modern socialist country in all respects, a leading role in driving the upgrading of the industrial system, and a supporting role in promoting China’s economic and social development. Thank you.

Nanfang Daily, Nanfang Plus:

Last year, General Secretary Xi Jinping stressed during an inspection tour in northeastern China's Heilongjiang province that resources for sci-tech innovation should be integrated to guide the development of strategic emerging industries and future industries so as to form new productive forces at a faster pace. My question is, what progress was made in 2023 by central SOEs in developing strategic emerging industries and future industries? What major steps will be taken? Thank you.

Yuan Ye:

The question you raised is very important. As I just said, central SOEs will take developing new productive forces as a major task. Now, let's invite Mr. Zhuang to elaborate on this matter.

Zhuang Shuxin:

Thank you for your questions. At present, a new round of scientific and technological revolution and industrial transformation is reshaping the global economic structure and industrial landscape, giving birth to an increasing number of new industries and new business forms and models. Strategic emerging industries and future industries, especially, have become new arenas for businesses from different countries to compete, as well as the primary platform for developing new productive forces.

Since last year, the SASAC and all central SOEs have carefully studied and implemented the principles from General Secretary Xi Jinping's important instructions on accelerating the growth of new productive forces and propelling the advancement of new industrialization. We have regarded developing strategic emerging industries and future industries as a task that possesses big-picture importance and will serve as locomotives. We have made positive progress in this regard.

First, we have identified new directions for development. Two campaigns were launched for central SOEs to boost strategic emerging industries, such as next-generation mobile communications, artificial intelligence (AI), biotechnology, and new materials, and to foster future industries, such as future information. By doing so, we have identified the priority and direction of development and laid out detailed targets and pathways.

Second, we have effectively ignited new growth engines for enterprises. A full range of policies were made in resource investment, core business fostering, and personnel training, providing enterprises with maximum and effective support. The management of their primary responsibilities and core business was optimized, and a dynamic mechanism for adjusting their core business was established and improved. We encouraged enterprises to speed up their transformation and upgrading and look for new growth drivers. We also fostered emerging industries that are of long-term and strategic importance. Enterprises acted quickly to improve their systems and mechanisms to adapt to new industries and new arenas and implement supporting policies. Enterprises have been encouraged to pursue innovation and exploration and take a trial-and-error approach, thus invigorating businesses and increasing efficiency. 

Third, we have made breakthroughs in the layout of industries. Last year, the investment from central SOEs in strategic emerging industries totaled 2.18 trillion yuan, marking an increase of 32.1% year on year. Numerous pivotal projects were initiated in sectors like photovoltaic-based hydrogen production, carbon fiber manufacturing, and automotive chips. New businesses were established across a number of industries, such as laser manufacturing, quantum communications, and satellite internet. We also pursued restructuring and integration efforts in sectors including electronic technology, new energy, environmental conservation, and intelligent connected vehicles. New industries and new business forms are becoming major growth areas of enterprises.

Next, we will improve work mechanisms and optimize supporting policies. Mobilizing the resources of the whole system, we will work ceaselessly and make every effort to develop strategic emerging industries and future industries. Focusing on the two campaigns launched by central SOEs in this regard, we will move faster to achieve pivotal progress in increasing the revenue of strategic emerging industries, as well as the contribution of their value-added to GDP, thus achieving strategy transition in the layout and structure of central SOEs. To be specific, we plan to initiate a number of major projects, select 100 representative projects of strategic emerging industries, foster clusters of strategic emerging industries, launch special actions such as AI+, and act quickly to make landmark advances in key areas such as biotechnology, new materials, and new energy vehicles (NEVs). We will also move faster to make technological breakthroughs in industrial development and cultivate start-up enterprises, leading enterprises, and unicorn enterprises so as to deliver signature products in sectors such as brain-like intelligence, quantum information, deep earth and sea exploration, and laser manufacturing. We will establish a new systematic business environment, create innovative cooperation models among central SOEs, local enterprises, and enterprises of all sizes and forms of ownership, and strengthen coordination across different businesses and sectors so as to jointly build a business environment featuring efficient coordination and sound growth. The funds given to strategic emerging industries will deliver results at a faster pace. We will make solid efforts to promote industrial innovation with technological innovation and ensure central SOEs play a leading role in forming new productive forces and strengthening new growth drivers. Thank you.

Yicai:

In the past year, what progress have central SOEs made in promoting strategic restructuring and professional integration? In the coming year, which key areas will they focus on for restructurings and business integration? Thank you.

Li Bing:

I'll answer these questions. In 2023, the SASAC implemented the arrangements of the 20th CPC National Congress on accelerating efforts to improve the layout of the state-owned sector and adjust its structure. The SASAC intensified its efforts in restructuring the central SOEs and integrating their businesses, yielding positive results in four areas. First, we supported the implementation of national strategies and enhanced our capabilities. We have made continuous progress in optimizing resource allocation in fields such as data and information, leveraging the role of central SOEs as the "national team" to serve the needs of national strategies more effectively. Second, we improved the efficiency of resource allocation and the quality of development. We integrated cruise operation resources to establish platform companies and strengthened professional operational capabilities. The first domestically-built large cruise ship, Adora Magic City, completed its successful maiden voyage for commercial purposes. We facilitated the transfer of China International Water & Electric Corp, a subsidiary of China Three Gorges Corp, to China Communications Construction Co, and the transfer of National Bio Energy Group, under State Grid Corporation of China, to State Power Investment Corporation. We also promoted China Huaneng Group to conduct pilot operation and maintenance services for 22 new energy projects for 13 central SOEs. These efforts enabled companies to focus on their core businesses and achieve high-quality development. Third, we focused on nurturing new growth drivers and promoting the development of strategic emerging industries. We guided central SOEs to focus on mergers and integration, making innovation breakthroughs, and internal collaboration, so as to accelerate the development of strategic emerging industries. We held two centralized signing ceremonies for 25 key projects in business integration, covering strategic emerging industries like environmental protection, biotechnology, and new energy vehicles. Fourth, we have been gathering innovative resources and strengthening research and development capabilities. China Electronics Technology Group Corp completed restructuring of China Hualu Group Co Ltd, consolidating its strengths in the field of electronic information and enhancing its ability to supply key technological products. This helped to shore up key links in industrial chains and created synergistic advantages in areas such as smart manufacturing and data storage.

Next, the SASAC will, in accordance with the requirements outlined by the action plan guiding SOEs to deepen reform, focusing on the goal of steadfastly improving, expanding, and strengthening SOEs, further advance the work of restructuring and integration to deliver a substantive result. First, we will strengthen overall planning and enhance the effectiveness of restructuring and integration. Starting from improving the layout of the state-owned sector and adjusting its structure, and in line with the implementation of the 14th Five-Year Plan, we will carry out overall planning for the main directions and key tasks of restructuring and integration, improving the layout and adjusting the structure in a planned way and with the right pace. Second, we will give priority to serving national strategies and advance strategic restructuring and the establishment of new central SOEs in a prudent manner. We will focus on implementing strategies for innovation-driven development, coordinated regional development, and boosting China's strength in science and technology, manufacturing and cyberspace during the strategic restructuring and the establishment of new central SOEs. We will continue to promote the concentration of state-owned capital in important industries related to national security and the lifeline of the national economy, in important industries related to the national economy and people's livelihood, such as the provision of public services, emergency capacity building, and public welfare, and in forward-looking strategic emerging industries, and fully leverage the role of state-owned capital and central SOEs as the backbone and ballast of the economy. Third, we will focus on developing strategic emerging industries and vigorously promote professional integration. By leveraging the leading role of central SOEs, and in line with the characteristics of the integrated development of strategic emerging industry clusters, we will make greater efforts to conduct professional integration in the fields such as information communication, new energy, and equipment manufacturing. We will actively explore new arenas, seize new highlands, and shape new advantages by deepening strategic cooperation in the industrial chain ecosystem, and expediting our efforts to modernize the industrial system. Thank you.

CMG:

In the report to the 20th CPC National Congress, it is stated that to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development. Last year, what work did the SASAC carry out to promote the high-quality development of enterprises? What progress was achieved? Are there any new plans for this year? Thank you.

Yuan Ye:

Thank you for your questions. As you mentioned, to build a modern socialist country in all respects, we must, first and foremost, pursue high-quality development, and it is also a distinct feature of the development of central SOEs on the new journey of the new era. Last year, under the guidance of the SASAC, central SOEs focused on the main task of pursuing high-quality development. They emphasized the unity of benefits and efficiency, highlighting their ability to create value. Our aim extended beyond expansion; we also encouraged central SEOs to become stronger and more competitive, and shoulder greater responsibility in effectively upgrading and appropriately expanding China's economic output.

Focusing on this goal, we have fully implemented the guiding principles of the 20th CPC National Congress and further improved our assessment and management system. Centering on high-quality development, promoting enterprises to enhance their core competitiveness and advancing central SOEs into world-class companies, we established the system of management by objectives characterized by "one profit, five ratios". The term "one profit" refers to emphasizing the assessment of profit indicators, fully reflecting the ability of enterprises to create value for society. The "five ratios" include return on equity, overall labor productivity, ratio of spending on R&D to GDP, operating cash flow ratio, and debt-to-asset ratio. Last year's objectives clearly stated that it was essential to ensure steady profit growth. As I mentioned earlier, the goal of achieving steady profit growth was accomplished in 2023. The objectives also included overall stability of the debt-to-asset ratio, and further improvement of return on equity, ratio of spending on R&D to GDP, overall labor productivity, and operating cash flow ratio.

In terms of specific work measures, in accordance with such a target management system, a special action to improve quality and efficiency was launched at the beginning of last year. This move aims to promote China's SOEs to achieve business objectives in line with requirements for high-quality development. We have also set up a quarterly round table meeting system for central SOEs. These meetings focus on the production and market operations of relevant enterprises. Simultaneously, we assist central SOEs in resolving production and operational issues, aiding them in accelerating the transformation of the development model for higher quality and greater efficiency.

Judging from the results, it is evident that central SOEs, with a bigger picture in mind, have taken proactive measures and strengthened confidence to overcome various difficulties. They have delivered solid and substantial results. 

On the one hand, there has been a steady increase in quantity. Despite challenges such as insufficient domestic and international demand and a decline in prices of bulk commodities last year, central SOEs maintained overall operational stability and achieved steady growth in profitability. As highlighted in the opening statement, last year, central SOEs recorded impressive income and profit results. By the end of the year, the total assets of central SOEs reached 86.6 trillion yuan, a year-on-year increase of 6.4%.

On the other hand, there has been a significant improvement in quality. Last year, central SOEs' average return on net assets reached 6.6%, maintaining a good level of shareholder returns. Overall labor productivity per capita reached 784,000 yuan, and the operating cash ratio was 10.1%, showing a steady monthly increase throughout the year. The average asset-liability ratio of central SOEs stood at 64.8% at the end of last year, effectively controlled at around 65%, achieving overall stability. Last year, we also strengthened the governance of loss-making enterprises and the disposal of inventory and accounts receivable. This has also achieved positive effects, playing a crucial role in improving enterprises' performance, as well as enhancing their asset quality.

As we look at the indicators, what is even more gratifying is that the driving forces for enterprise development have been strengthened significantly. For example, the driving role of innovation is accelerating. Last year, central SOEs substantially increased their total research and development spending. As mentioned in the opening statement, we have invested more than 1 trillion yuan for two consecutive years. The driving role of investment is also constantly increasing. With a focus on promoting high-quality and stable development, serving the country's major strategies, and building a modern industrial system, central SOEs completed total investments exceeding 6 trillion yuan last year. The total amount of fixed-asset investment exceeded 5 trillion yuan, with investment in primary businesses accounting for over 95%. Investment in strategic emerging industries increased more than 30% year on year, accelerating the cultivation of new growth drivers.

Overall, central SOEs have worked together diligently and pragmatically, achieving progress while maintaining stability and promoting high quality through progress. With high-quality and stable growth, central SOEs have positively contributed to the steady recovery and improvement of China's economy.

Just now, I also mentioned some of the measures to be taken this year to implement the guiding principles of the Central Economic Work Conference. We will continue to adhere to the target management system of "one profit and five ratios" (total profit, as well as return on net assets, operating cash ratio, asset-liability ratio, R&D investment intensity, and labor productivity), and make efforts to ensure steady profit growth and continuous optimization of the five ratios. Next, we will continue working to steadily improve the performance of central SOEs and achieve improvements in return on net assets, labor productivity, and operating cash ratio. We will continuously enhance the intensity of research and development investment and science and technology input-output efficiency, and maintain a stable overall asset-liability ratio. We will promote high-quality development of central SOEs with tangible actions and results, amid our efforts to better fulfill our economic, political, and social responsibilities and effectively serve Chinese modernization.

Thank you.

Jinan Times APP: 

In 2023, what significant progress did central SOEs make in advancing scientific and technological innovation, especially in building capabilities for developing original technology and national innovation platforms? In 2024, how will we guide enterprises to play a leading role in technological innovation and drive the building of a modern industrial system through scientific and technological innovation? Thanks.

Yuan Ye:

Good questions. As I just introduced, in the past two years, central SOEs have continued to increase investment in research and development, which has exceeded 1 trillion yuan for two consecutive years. We continue to optimize assessment indicators and encourage enterprises to increase investment in research and development. In the assessment of corporate profits, the investment in research and development is also added back to profits to encourage enterprises to strengthen investment in scientific and technological innovation. Mr. Zhuang Shuxin will give you a detailed answer.

Zhuang Shuxin:

Thank you for your attention regarding the sci-tech innovation of central SOEs. Sci-tech innovation is the country’s fundamental interest and the motive force for the development of enterprises. In 2023, the SASAC and central SOEs actively implemented the new system for mobilizing resources nationwide to make key technological breakthroughs, vigorously promoting sci-tech innovation with a strong sense of urgency and firm measures and further advancing the innovation efficacy.

First, central SOEs’ principal role in sci-tech innovation has been strengthened. Central SOEs have been organized to undertake a number of major national sci-tech tasks and key projects in technological innovation. They were deeply involved in the construction of a system of national laboratories and completed the rearrangement of major national laboratories in fields such as energy, engineering, and medicine. They made efforts to establish a number of national technological innovation centers and actively participated in the construction of international sci-tech innovation centers and regional innovation centers.

Second, the construction of innovation systems continued to progress. We have accelerated the breakthrough of key and core technologies, advanced the planning and construction of original technologies incubators, and implemented 11 specialized action plans with one aimed at strengthening target-oriented basic research. As Mr. Yuan mentioned, central SOEs’ investment in research and development exceeded one trillion yuan for two consecutive years, and 29 individuals and 20 teams from central SOEs have been honored with the National Engineer Awards. A group of academicians and experts from central SOEs have entered the pool of national sci-tech experts.

Third, high-quality innovative achievements emerged quickly. The demonstration project of fourth-generation nuclear power technology for fast reactors has been completed and put into operation. High-temperature gas-cooled reactors have been commercialized, the Shenzhou-16 and Shenzhou-17 spaceships were successfully launched, the C919 passenger aircraft had its debut commercial flight, and the 6G network architecture set a world record for long-distance transmission. Direct-drive offshore wind turbines have reached a world-leading level. Significant breakthroughs have been made in key materials, basic components, and foundational software. Central SOEs have led the formulation of a number of international, national, and industry standards.

In 2024, we will focus on strengthening enterprises’ principle role in sci-tech innovation, fully leverage central SOEs' role to boost China's strength in strategic science and technology, and prioritize the four key areas of work as follows.

First is to accelerate technological breakthroughs to foster the resilience of industrial and supply chains. We will promote the deep integration of enterprises into the national innovation system, actively undertaking major national sci-tech tasks. Focusing on key industrial chains in the manufacturing sector, key and core technological research will be carried out, and an updated version of the innovation alliance of central SOEs will be fostered, promoting collaboration among enterprises, universities, and research institutes and connectivity among large, medium, and small-sized enterprises. Utilizing the advantages of SOEs in application scenarios, we will drive the transformation and application of technological achievements.

Second is to enhance the leading role of original innovation and improve the industrial innovation system. We will encourage central SOEs to summarize major scientific subjects from economic, social, and industrial development needs and strengthen applied fundamental research, generating a batch of original achievements in cutting-edge fields. We will encourage central SOEs to steadily increase the research and development funding and advance the efficiency of sci-tech output, fueling development with higher technological contribution.

Third is to fortify the driving force of innovation and accelerate the shaping of new productivity. Highlighting strategic emerging and future industries, we will progress central SOEs with consistent strategic assessments, technological foresight, and benchmarking analysis, strengthening the planning to develop cutting-edge technologies, stepping up to foster innovative SOEs, and relying on technological innovation to open up new fields and channels and foster new driving forces and advantages for development.

Fourth is to create an innovative ecosystem to boost innovation vitality and power. We will guide central SOEs to take advantage of various national sci-tech policies; issue more policies to empower enterprises, deregulate, ease burdens, and reinforce positive incentives; implement in-depth digital transformation initiatives; and enhance digital and intelligent technologies to empower new industrialization. We will vigorously encourage dedication to scientific advancement and entrepreneurship and improve the sustained ability for innovation and value creation. Thank you.

Xinhua News Agency:

As mentioned in Mr. Yuan's response, this year's focus will continue to be on improving the quality of central SOE holding listed companies. With regard to this, as SASAC released a plan for reinforcing the quality of these companies in 2022, I would like to inquire as to the progress of related work and what measures the SASAC will take to promote the quality and efficiency of central SOE holding listed companies? Thank you.

Yuan Ye:

Thank you for your questions. It is crucial to improve the quality of central SOE holding listed companies. As I mentioned earlier, we have emphasized "one profit and five rates" in the target management system to motivate the ability of value creation for central SOEs. The requirement for listed companies is the same. In recent years, we have consistently focused on quality improvement of central SOE holding listed companies to increase investor returns. For detailed information on relevant work, I'll ask Mr. Xie to respond.

Xie Xiaobing:

Thank you. The previous discussions by our colleagues focused on high-quality development. Listed companies account for a large proportion of central SOEs and are an important part of central SOEs, as we have previously explained to our media friends before. Our high-quality assets are primarily held by listed companies. The high-quality development of listed companies is closely related to that of central SOEs. Just now, our work on promoting the high-quality development of central SOEs was introduced. Here, I would like to share what we have done in light of the characteristics of listed companies.

In recent years, we have collaborated with the China Securities Regulatory Commission (CSRC) and other relevant departments to promote the high-quality development of listed central SOEs. Our work has focused on several key areas:

First, we have contributed superior offerings to the capital market and have optimized its layout and function. In recent years, we have listed 21 companies on the A-share market, 14 of which are listed on the Science and Technology Innovation Board. These are companies with strong technological capabilities. At the same time, we have actively utilized these companies' platforms to conduct professional restructuring, incorporating quality assets into the listed companies. According to preliminary statistics, the value of integrated assets in the past two years has exceeded 300 billion yuan.

Second, we have ensured synergy between science, technology, industry, and finance. Through the platform of listed companies, we attracted relevant funds to bolster scientific and technological innovation capabilities. This effectively connected the "technology-industry-finance" chain, and made it more visible in the capital market. According to preliminary statistics, in the first three quarters of 2023, listed companies controlled by central SOEs invested 288.5 billion yuan in scientific research, with an average of 780 million yuan per company.

Third, we have maintained high standards in the disclosure of information from listed companies. Our listed central SOEs have adhered to the regulatory requirement of “taking information disclosure as the core." In the information disclosure quality evaluation conducted by the Shanghai and Shenzhen stock exchanges, nearly half of our listed companies were rated A, indicating a very high standard of information disclosure. At the same time, we have actively expanded our ESG reporting coverage, achieving 80% by the end of last year. According to our plans, we will achieve full coverage in the 2023 annual report disclosure.

Fourth, we have constantly enhanced our value creation and market recognition. We have strengthened regular and multi-level interactions with investors, achieving full coverage in performance briefings for three consecutive years. Both the chairman and general manager have attended the performance briefings of listed SOEs. In 2023, 12 listed central SOEs engaged in stock buy-backs, while 32 saw an increase in holdings by major shareholders. In 2022, the cash dividend payout ratio reached 44.6%. By mid-2023, 20 central SOEs had issued mid-term performance dividends totaling nearly 80 billion yuan.

Overall, listed companies controlled by central SOEs have remained focused on their core businesses, leading to a continuous increase in overall scale. Business performance has maintained a generally stable trend, with the industrial layout becoming more optimized and operation quality steadily improving. According to the third-quarter report of 2023, the total assets and net assets of the 383 listed companies controlled by central SOEs on China’s mainland have reached 53 trillion yuan and 17 trillion yuan, respectively. The operating revenue and net profit attributable to equity holders were reported at 18.63 trillion yuan and 1.06 trillion yuan, respectively. Overall, the return on equity (ROE) reached 7.53%.

Now, 154 out of the 383 listed companies are in strategic emerging industries, representing over 40% of the total. By the end of 2023, the market value of listed companies controlled by central SOEs on China’s mainland had reached 13.5 trillion yuan. We recognize that enhancing the quality of listed companies is a long-term endeavor requiring sustained efforts. Moving forward, we will concentrate on the following aspects to further improve their quality:

First, we will continue to build a listing pattern with a clear definition and incremental development. We will promote the general idea of "strengthening and improving a group of enterprises, adjusting and revitalizing a batch of enterprises, and cultivating and reserving a bunch of enterprises." This approach aims to steadily improve incremental growth, consistently deliver high-quality products to the capital market, and actively improve existing stocks. As a result, listed companies can intensively work in their industries to grow better and stronger, becoming leading entities in their sectors. On the other hand, we have resolved to proactively implement policies and resolutely adjust and revitalize the listing platforms of some enterprises that do not align with their main business or advantages.

Second, we will make continuous efforts to improve the standard operation of listed companies. We will enhance cooperation and communication with securities regulatory authorities to jointly promote the standardized operation of listed central SOEs and further improve the quality of information disclosure. At the same time, we should properly resolve the risks of listed companies and encourage them to set an example for honest and standardized operations in the capital market.

Third, further research will be conducted on incorporating market value management into performance assessments of central SOE leaders. In the early stages, we have encouraged central SOEs to include indicators related to value realization in the performance evaluation system of listed companies. Building on this, we will include the effectiveness of market value management in the assessment of central SOE leaders. This approach aims to guide them to pay more attention to the market performance of listed companies they manage. We will convey confidence and stabilize expectations promptly through market holding increases, buybacks, and other means and enhance cash dividends to better reward investors.

Thank you.

ThePaper.cn:

Recently, there have been widespread cold spells across the country, and all sectors of society are closely monitoring the energy supply. What actions did central SOEs undertake to ensure energy supply in 2023? What progress has been made? What are the key arrangements for follow-up work? Thank you.

Li Bing:

Your question is of great concern to society at present. In 2023, facing multiple severe challenges such as high temperatures, low water levels, typhoons, freezing rain, snow, and earthquakes, the SASAC and central SOEs resolutely implemented the major deployments of the CPC Central Committee and the State Council. They effectively played a crucial role in ensuring people's livelihoods and stabilizing production, supply, and prices. Various measures were taken to successfully complete key supply tasks during the peak demand periods of summer and winter, the Spring Festival, the two sessions, the Chengdu Universiade, and the Hangzhou Asian Games. These efforts effectively maintained economic and social stability and made a significant contribution to the sustained improvement of the domestic economy.

In 2023, central SOEs' safeguarding work in energy and power supply included several aspects:

First, the central power generation enterprises strengthened thermal coal inventory management. The thermal coal inventory was consistently maintained at a high level. Coal power units operated safely and efficiently, generating a total of 5.35 trillion kilowatt-hours of electricity throughout the year. This accounted for 52% of China's installed capacity and contributed to 63% of the country's electricity generation.

Central SOEs responsible for the power grid fully leveraged their strengths in optimizing the allocation of large power grid resources, thereby enhancing mutual support in balancing excesses and shortages. Throughout the year, a total of 4,761 cross-regional and cross-provincial power supports were organized, with the electricity volume reaching 20.9 billion kilowatt-hours. They controlled load management and capacity scale to the maximum extent, firmly maintaining the bottom line against power outages.

Prioritizing safety and compliance, central SOEs in the coal sector expanded their mining operations, spearheaded the implementation of the long-term price agreement mechanism for thermal coal, and maximized thermal coal supply. The cumulative coal production throughout the year was 1.13 billion tons, with an average daily output of 3.083 million tons, a year-on-year increase of 4.5%, hitting another record high.

Central SOEs in the petroleum and petrochemical sector fully utilized the potential of domestically produced and imported gas to ensure a safe and stable oil and gas supply. Cumulative sales of natural gas throughout the year reached 354.39 billion cubic meters, marking a year-on-year increase of 6.1%. Assets totaled 202.85 billion cubic meters, a year-on-year increase of 6.8%, and imports were 147.05 billion cubic meters, reflecting a year-on-year increase of 8.8%.

Moving forward, the SASAC will bear in mind the overall situation of safeguarding national energy security and economic operational security. It will strive to enhance the role of SASAC and central SOEs as the "backbone" and "cornerstone" in critical moments. The SASAC will supervise and guide central power generation SOEs, coal SOEs, power grid SOEs, and petroleum, petrochemical, and natural gas SOEs to follow unified arrangements. This will ensure the supply of essential services for people's livelihood and guarantee a warm winter and enjoyable holidays for the public.

In the long run, we will focus on accelerating the construction of new power systems. We will promote the building of peak-shaving power sources, such as gas power, pumped storage, and electrochemical energy storage, tailored to local conditions. Additionally, we will advance the construction of approved power generation projects and ensure their timely operation and grid connection. We will increase investment in technological innovation in strategic emerging industries such as energy storage, hydrogen energy, nuclear energy, and virtual power plants and continuously improve the long-term mechanism for ensuring energy supply. Thank you.

Securities Time:

Could you share the overall achievements of the campaign organized by SASAC for closer cooperation across industrial chains in 2023, and also the plans for this year? Thank you.

Zhuang Shuxin:

Thank you for your question. As we know, China has a large and comprehensive industrial system, but it also faces numerous bottlenecks and challenges. These require not only guidance from policy departments but also proactive efforts from enterprises, especially industry leaders, to efficiently link upstream and downstream operations and ensure smooth production and supply cycles.

Last September, SASAC, along with the Ministry of Industry and Information Technology, initiated the common chain campaign aiming to build closer collaborations across the industrial chain. By establishing platforms for cooperation and supply-demand matchmaking, we have promoted deeper collaboration between central SOEs and those in the industrial chains, working to build a new pattern of orderly competition and integrated development among large, medium, and small enterprises.

On one hand, we focused on building a new mechanism for cooperation across the industrial chain. Through joint ventures, increased investments, mergers, and acquisitions, we established mechanisms for supply-demand matching, joint project development, and shared results, enhancing the efficiency of industrial chain collaboration. We have also leveraged the strengths of industry leaders to create a new ecosystem featuring openness, shared benefits, integration, and win-win cooperation.

On the other hand, we focused on laying a solid foundation for the security and development of the industrial chain. We have strengthened innovation cooperation with enterprises in the industrial chain, jointly undertaking projects to strengthen foundations, improve weaknesses, and remake industrial basic capabilities, aiming to resolve the issues of a lack of foundational components and core technologies in the industrial system. We opened up the application scenarios of central SOEs to allow more products and services from the industrial chain to be included in the procurement catalog, starting from initial installations and editions. This has created conditions for the large-scale application of new products and technologies and accelerated the advancement of new industrialization.

By the end of last year, central SOEs hosted 13 events under the campaign, covering areas like machine tools, mobile information, rail transit, and low-carbon metallurgy in Beijing, Shanghai, Guangzhou, Shenyang, and other places. They released over 1,000 supply and demand lists, signed off over 5,000 agreements, and established deep cooperation with numerous enterprises.

Notably, the State Grid created the world's largest new energy cloud platform, providing a one-stop service for new energy planning, grid connection, and transactions. The platform hosts 17,000 companies, providing grid connection services for over 12,000 projects.

State Power Investment Corporation Limited (SPIC), through its contract-based cooperation model, has made solid strides in industrial chain development surrounding the "Guohe One" project, achieving 100% domestic substitution capability for entire machines by the end of 2023.

CRRC Corporation Limited has led the coordinated development of over 6,900 enterprises in the rail transit equipment chain, forming two world-class industrial clusters in Zhuzhou and Qingdao, with a global new vehicle sales market share exceeding 30%.

China Mobile fully upgraded its partnership program to connect and cooperate with enterprises across the industrial chain, conducting over 550 collaborative projects with key industry enterprises and providing over 150 billion yuan in supply chain finance services.

Going forward, SASAC and central SOEs will take more substantial measures to consolidate the campaign, significantly enhancing the resilience and competitiveness of the country's industrial chain.

We will further enhance coordination between the supply and demand sides. To further promote industrial integration and development, we will conduct more high-quality thematic activities, release more supply-demand lists, and attract more enterprises to join our campaign.

We will also innovate in how we conduct the campaign, organizing joint, high-level events in large-scale industries and enhancing cooperation to jointly build industrial clusters in regions with relatively sound industrial foundations.

We will continue to create cooperation outcomes. With continuous efforts in supply-demand connection, collaborative support, innovative cooperation, resource sharing, industry empowerment, and industrial integration, we aim to develop a number of effective, replicable cooperation models and create high-quality, influential demonstration projects. The goal is to promote the integrated development of upstream, midstream, and downstream enterprises as well as among big, medium, and small enterprises. Thank you.

Xie Yingjun:

Due to time limitations, we'll take one last question.

Cover News:

As indicated at the Central Economic Work Conference, China will deepen and upgrade its SOE reforms to strengthen their core functions and core competitiveness. 2023 marks the first year for China to implement the campaign for deepening and upgrading the SOE reform. Could you share with us the major progress since the campaign's launch and the future plans for advancing SOE reforms more effectively and substantially? Thank you.

Yuan Ye:

I'll take this last question. The three-year reform campaign from 2020 to 2022 has yielded positive results. The CPC Central Committee with Comrade Xi Jinping at its core has made the strategic plan of deepening and upgrading the SOE reform riding on the current positive momentum.

The latest round of SOE reform has distinctive characteristics of the era. Regarding the reform tasks, they can be broadly categorized into two main aspects. The first one refers to institutional reform, mainly aiming to consolidate the achievements made over the past three years of reform so as to realize the transition from a focus on quantity to a focus on quality. The emphasis is on breaking through some systemic and institutional obstacles that constrain the high-quality development of central SOEs and encouraging enterprises to genuinely operate in accordance with market-oriented mechanisms. The second task pertains to functional reform. It mainly involves the mission and responsibilities assigned by the new journey, focusing on the country's major needs. The goal is to continuously enhance the core functions and improve the core competitiveness of enterprises, effectively leveraging their roles of technological innovation, industrial control, and security support in the construction of a modern industrial system and the establishment of a new development pattern. 

The CPC Central Committee has made top-level designs for the new round of SOE reform, officially issuing the guidelines last year. The State Council has established a specialized work coordination mechanism and convened mobilization and deployment meetings to ensure comprehensive planning. Various regions, departments, and SOEs across the country have regarded the deepening and enhancement of reform as a vital political task. They are actively concentrating on practical measures, organizing support, and initiating the new round of reform with a commitment to a high standard and quality.

Currently, various regions and central enterprises nationwide have developed relevant implementation plans for the reforms. Related work is progressing steadily according to the schedule, and the effects are gradually becoming evident.

For example, in terms of optimizing the layout, over the past year, central SOEs have advanced strategic restructuring through market-oriented approaches, and have established a batch of new enterprises. Some 29 companies signed contracts for specialized integration projects in areas such as ecological and environmental protection, biotechnology, and intelligent connected vehicles. We have further promoted the optimization of resource allocation in this regard, as mentioned by Mr. Li just now. 

For instance, in the establishment of the modern enterprise system with Chinese characteristics, there has been further improvement in the operational standards of corporate boards. The development of external director teams has continued to strengthen, and the enforcement of managerial term limits and contractual management has been enhanced. The expansion and deepening of world-class initiatives such as "Dual Demonstration," "Scientific and Technological Innovation Action," and "Double Hundred Action" are underway, with exemplary enterprises effectively showcasing their leading role in these efforts.

In addition, in terms of improving supervision, we have revised the performance assessment methods for leaders of central SOEs. Specialized differential assessment methods have also been formulated for enterprises engaged in scientific research and design, heavy equipment manufacturing, grain reserves, and other areas. Furthermore, for companies aiming to strengthen technological research and development, promote the transformation of achievements, and develop strategic emerging industries, we have introduced a slew of targeted and effective support policies, striving to create a favorable environment for the high-quality development of enterprises.

This year is a crucial year for implementing deepened and enhanced reform actions, signifying the consolidation of past endeavors and the initiation of new challenges. SOEs will coordinate progress, ensure effective implementation, and strive to make breakthroughs in key and challenging areas. The key areas include the following aspects:

We will deepen reforms to optimize resource allocation. Focusing on serving major national strategies, we will further channel state-owned capital into crucial industries and key sectors vital for national security and the foundational aspects of the national economy. This entails concentration on public services, emergency capabilities, and areas of public welfare essential to the national economy and peoples' well-being. Furthermore, we will broaden our focus to cutting-edge strategic emerging industries. In our work, we will persist in implementing strategic restructuring and specialized integration, refine the budgetary allocation of state-owned capital, intensify efforts in the development of new industries and new tracks, promote the fundamental transformation of traditional industries, and increase the resilience and security of the industrial chain.

We will deepen reforms to enhance institutional mechanisms. On one hand, we will accelerate the refinement of a modern corporate governance system tailored to the characteristics of Chinese SOEs. This includes categorizing and optimizing the "pre-listed matters" of CPC committees (CPC leadership groups) to promote the scientific, rational, and efficient building of the board of directors so as to converting institutional advantages into developmental strengths. On the other hand, we will further improve market-oriented operational mechanisms, enhance the quality and scope of managerial term limits and contractual management, establish a precise, efficient, and orderly income distribution mechanism, and expedite the establishment of modern new SOEs.

We will deepen reforms to strengthen institutional guarantees. We will further clarify the rights and responsibilities of investors in regulatory matters, promoting centralized and unified supervision of operational state-owned assets, and better leverage the advantages of specialized, systematic, rule-of-law, and efficient supervision. We will further optimize the assessment system by implementing tailored evaluations for each enterprise and industry, and improving the precision, scientific basis, and consistency of policy provision. We will establish a coordinated and efficient system for supervising state-owned assets, effectively enhancing regulatory efficiency, safeguarding the security of state-owned assets, and fostering a favorable environment for the reform and development of enterprises.

Thank you.

Xie Yingjun: 

Thank you to all the speakers for the introductions, and also, thank you to all participating media friends. Today's press conference concludes here.

Translated and edited by Zhang Rui, Wang Qian, Xu Kailin, Yuan Fang, Li Xiao, He Shan, Liu Caiyi, Huang Shan, Wang Mengru, Zhang Junmian, Wang Ziteng, Liu Sitong, Zhang Tingting, Liu Qiang, Yan Bin, Wang Yiming, Guo Yiming, Qin Qi, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.