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Speakers:

Mr. Deng Xiaogang, vice minister of agriculture and rural affairs

Mr. Chen Bangxun, director general of the Department of Development and Planning of the Ministry of Agriculture and Rural Affairs (MARA)

Mr. Pan Wenbo, director general of the Department of Crop Production of the MARA

Mr. Lei Liugong, director general of the Department of Market and Informatization of the MARA

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. 23, 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. Deng Xiaogang, vice minister of agriculture and rural affairs, to brief you on the performance of agriculture and rural economy in 2023, and answer your questions. Also present at today's press conference are Mr. Chen Bangxun, director general of the Department of Development and Planning of the Ministry of Agriculture and Rural Affairs (MARA); Mr. Pan Wenbo, director general of the Department of Crop Production of the MARA; and Mr. Lei Liugong, director general of the Department of Market and Informatization of the MARA. 

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

Deng Xiaogang:

Ladies and gentlemen, friends from the media, good morning. I would like to thank all friends from the media for their interest in and support for the work on agriculture, rural areas and rural people. Next, I will brief you on the performance of agriculture and rural economy in 2023.

In 2023, facing the complex and serious domestic and international economic situation as well as frequent and recurring natural disasters, departments of agriculture and rural affairs have thoroughly implemented General Secretary Xi Jinping's important remarks on work related to agriculture, rural areas and farmers as well as the guiding principles of his important instructions in this regard, and implemented the decisions and deployments of the Central Committee of the Communist Party of China (CPC) and the State Council. We have made all-out efforts to overcome difficulties and solve problems to maintain the momentum of steady performance in agriculture and rural development. The fundamentals of agriculture, rural areas and rural people have been further enhanced, providing strong support for economic recovery and solid progress in high-quality development.

First, China secured another bumper grain harvest, with supplies of important agricultural products well guaranteed. We overcame the negative impacts of natural disasters, including rare protracted rainfall during the harvest period in the Huang-Huai region, severe floods in some regions of North and Northeast China, and droughts in some areas of Northwest China. The country's total grain output reached 695.41 million metric tons in 2023, an increase of 8.88 million metric tons over the previous year, hitting another record high. This is the ninth consecutive year that China has registered a grain harvest higher than 650 million metric tons. Significant progress was also made in expanding the planting of soybean and other oil crops. The total soybean planting area reached 157 million mu (10.47 million hectares) in 2023, staying higher than 150 million mu for the second consecutive year. The soybean output hit a record high of 20.84 million metric tons in 2023. The total planting area of oil crops crossed the threshold of 200 million mu. Hog production remained stable. Pork output reached 57.94 million metric tons, up 4.6% year on year. Meanwhile, outputs of beef, mutton and poultry, milk, as well as aquatic products all increased and the supply of fruit and vegetables was sufficient. 

Second, achievements in poverty alleviation have been consolidated and expanded, ensuring that people do not sink back into poverty in large numbers. All localities improved monitoring and assistance mechanisms to prevent people lifted out of poverty from slipping back into it again, striving to spot trends early and intervene through support measures. The risk of slipping back into poverty was eliminated among over 60% of them, and support measures were implemented for all the others. We also put greater emphasis on providing assistance to develop local industries and boost employment. Among the central government funding for promoting rural revitalization, 60% was allocated for industrial development. Counties lifted out of poverty have developed a group of industries that leverage local strengths. A total of 33.969 million people who had been lifted out of poverty found employment, which is 3.777 million more than the annual target. 

Third, science, technology and equipment have provided greater support, with solid progress made in the development of modern agriculture. We built and upgraded 86.11 million mu of high-standard farmland, and the high-efficiency water-saving irrigation area reached 24.62 million mu. Initial success was achieved in invigorating the seed industry. We completed the largest national census of agricultural germplasm resources, collecting more than 530,000 crop germplasm samples. Pilot projects were successfully completed for the commercial production of genetically modified corn and soybean varieties. We also made breakthroughs in shoring up weak links in agricultural machinery equipment, with 320-horsepower tractors with a continuously variable transmission, corn planters for mountainous areas, and other needed machinery entering mass production. Large high-horsepower farm machinery and small agricultural machinery for hilly areas have been made accessible. 

Fourth, green agricultural development accelerated while the agricultural ecological environment continued to improve. We used fewer but more effective chemical fertilizers and pesticides. The comprehensive utilization rates of livestock and poultry manure and straw, and the agricultural film disposal rate exceeded78%, 88%, and 80%, respectively. The 10-year fishing ban on the Yangtze River led to significant achievements. The livelihoods of more than 230,000 affected fishermen were ensured, management of the waters under the fishing ban was generally stable, and the river's aquatic organism resources and diversity showed encouraging signs of recovery. Additionally, progress was made in agricultural production and the development of pollution-free, green, organic, and geographically indicated (GI) agricultural products. The number of newly certified and registered green and organic agricultural products, as well as those that are famous, special, novel, and high quality, reached 15,000. The percentage of agricultural products passing national quality and safety tests reached 97.8%.

Fifth, rural industries experienced strong growth, providing rural residents with increased job opportunities and income. The agricultural product processing sector advanced smoothly, hosting more than 90,000 companies above the designated size. Rural e-commerce also saw robust development, with its annual online retail sales reaching 2.49 trillion yuan. We enhanced the construction of modern agricultural parks, building 50 new national modern agriculture industrial parks, 40 special industrial clusters with competitive edges, 200 towns with agricultural strengths, and 100 agricultural modernization demonstration zones. Commercial agricultural services were provided for more than 1.97 billion mu of land and over 91 million small agricultural households. Driven by industrial development and employment, the growth of farmers' incomes was sustained. According to the National Bureau of Statistics, rural residents' per capita disposable income reached 21,691 yuan, marking a year-on-year increase of 7.6% in real terms.

Sixth, we summarized and popularized the experience of the Green Rural Revival Program, which was initiated in 2003. This program aimed to renovate about 10,000 incorporated villages in five years, transforming about 1,000 central villages into models of all-round moderate prosperity. This contributed significantly to creating a beautiful and harmonious countryside, desirable for living and working. Rural development initiatives were thoroughly implemented, focusing on inclusive and fundamental public services that ensure basic living standards, thus addressing rural public infrastructure challenges more rapidly. Living conditions in rural areas continued to improve, with more than 73% of rural households having access to sanitary toilets, over 40% receiving domestic sewage treatment, and domestic waste from more than 90% of villages being collected, transported, and treated. Rural governance capacity also improved steadily. A total of 100 national rural governance demonstration towns and 1,001 demonstration villages were newly recognized. Governance approaches, such as list-based and point-based systems, continued to expand. In-depth rural reforms were sustained, with steady progress on pilot projects extending second-round rural land contracts for another 30 years upon expiration, as well as trials for reforming rural residential land.

The agricultural and rural economic achievements in 2023 did not come easily. In 2024, agricultural and rural departments will fully implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee. We will thoroughly implement General Secretary Xi Jinping's important discourse on agriculture, rural areas, and rural residents. Following the deployments and requirements set at the Central Economic Work Conference and the Central Rural Work Conference, we will focus on building up China's strength in agriculture. Moreover, guided by the lessons and experiences from the Green Rural Revival Program, we will spare no effort to enhance agricultural production with an emphasis on food security. We will also advance rural revitalization in a coordinated manner, focusing on the construction and governance of rural development. This approach will promote sustained improvements in the work related to agriculture, rural areas, and rural residents. Thank you. My colleagues and I will now take your questions.

Xie Yingjun:

Thank you, Mr. Deng. The floor is now open for questions. Please identify the media outlet you represent before asking your questions.

21st Century Business Herald:

The Central Economic Work Conference and the Central Rural Work Conference in 2023 both made arrangements for studying and applying the experience of the Green Rural Revival Program, as well as for advancing all-round rural revitalization strongly and effectively. What are the priorities for this year's work on agriculture, rural areas, and rural residents? What specific arrangements will be made? Thanks.

Deng Xiaogang:

Thank you for your attention and questions regarding the work on agriculture, rural areas, and rural residents. The Central Economic Work Conference and the Central Rural Work Conference, held at the end of 2023, provided specific directives for this work, offering overarching guidance for us to perform well in related fields. The agricultural and rural departments will earnestly implement the decisive policies and arrangements of the Central Committee of the Communist Party of China and the State Council. We will make every effort to consolidate the foundation, stabilize production capacity, prevent risks, and stimulate vitality, advancing the work on agriculture, rural areas, and rural residents to achieve new improvements.

We will arrange our work by closely following two main tasks: advancing comprehensive rural revitalization and accelerating the building of China's agricultural strength. Two areas are priorities for our efforts. The first is agricultural production with a focus on food security, aiming to ensure a stable and secure supply of grain and other major agricultural products. The second is rural revitalization, emphasizing the construction and governance of rural development. This targets the consolidation and expansion of gains from poverty alleviation and creating a beautiful, harmonious countryside that is desirable for living and working.

We will adopt measures concentrating on the following "2+3+2" aspects and ensure their implementation.

The first "2" refers to two aspects: ensuring national food security and preventing any large-scale relapse into poverty. Regarding food security, we will launch a new round of actions to increase grain production capacity by 50 million metric tons and raise the per-unit crop yield of large-scale grain, oil, and other main crops nationwide. With such efforts, we will ensure the stable production of staple food, corn, and soybeans, continue to expand the planting area of oilseed rape, and increase per-unit crop yield, ensuring a grain output of over 650 million metric tons. We will prioritize work in several fields to consolidate and expand the gains from poverty alleviation. These include improving monitoring and assistance mechanisms to prevent any relapse into poverty, providing classified guidance to areas lifted out of poverty to develop supporting industries, stabilizing the employment of the workforce that shook off poverty, and pooling more resources to help areas and residents lifted out of poverty build their own momentum for growth.

The "Three Enhancements" aim to continuously promote rural industrial development, advance rural development initiatives, and improve rural governance. First, we will comprehensively promote the development of rural industries throughout the industrial chains, focusing on local specialty products. We will enhance the quality and competitiveness of rural industries with local features, develop and expand the industries that process agricultural products, and actively advance the integration of agriculture, culture, and tourism. This will facilitate the integrated development of rural areas' primary, secondary, and tertiary sectors. Second, we will advance rural development initiatives in a pragmatic way. Starting from farmers' most pressing needs, we will plan and promote key actions to ensure the widespread and inclusive availability of rural infrastructure and public services. These actions will have a substantial impact, starting from small-scale initiatives and expanding to cover a broader area. We will focus on building a beautiful and harmonious countryside that is desirable to live and work in. Third, we will continuously improve rural governance, and encourage a shift away from outdated social practices. We will implement practical and effective governance methods like checklists, point-based systems, and immediate response mechanisms, and increase the supply of cultural products that embody the charm and essence of rural areas.

The "Two Reinforcements" refer to strengthening technology development and deepening reform at the same time as well as reinforcing measures to increase farmers' income. The emphasis on technological innovation lies in its application-oriented approach, optimizing work mechanisms and enhancing the overall efficiency of the agricultural science and technology innovation system. At the same time, efforts will be made to develop high-quality farmland, accelerate the revitalization of the seed industry, and enhance research and development as well as the application of agricultural machinery and equipment. The focus of deepening rural reform is to prudently advance the pilot program of extending second-round rural land contracts by another 30 years upon expiration as well as developing new collective economies in rural areas based on local conditions. The key emphasis in increasing farmers' income is to create more channels for increasing rural incomes through industrial development, employment opportunities, and reforms, and allowing farmers to share more fruits of reform and development. Thank you.

Crnews.net:

In 2023, China achieved another abundant grain harvest, but the country still imports a considerable volume of grain. How does the MARA view this situation? Thank you.

Chen Bangxun:

The issue of grain is a matter of great concern for everyone, and the import and export volumes are also key focuses. As we all know, China is a populous country and a major grain consumer. The country's food security strategy is based on the principle of "prioritizing domestic production, relying on ourselves, ensuring production capacity, moderate imports, and technological support" to safeguard national food security. Appropriately utilizing international grain sources to fill the gap in production and demand for products in short supply and improve the variety structure has played a crucial role in ensuring the stability of grain supply and prices. According to data from the General Administration of Customs, China imported 160 million tons of grain in 2023, representing a year-on-year increase of 11.7%. In terms of structure, soybeans still dominate imports, accounting for over 60% of total grain imports. The total annual import volume of soybeans reached 99.41 million tons, a growth of 11.4% compared to the previous year. Importing such a large quantity of soybeans serves two purposes: meeting the demand for edible vegetable oil consumption and fulfilling the need for soybean meal in livestock and poultry feed.

Currently, China is deeply engaged in the international agricultural product market, both importing and exporting products. China's agricultural product imports rank first in the world, making it a major global market for agricultural products. Additionally, its agricultural product exports rank fifth in the world, as high-quality agricultural products such as fruits, vegetables, and aquatic products are exported to the international market. In 2023, China's agricultural product exports reached $98.93 billion, a 0.9% increase compared to the previous year.

How is the food security situation in China? It can be assessed from aspects such as production, structure, and inventory. First, there have been consecutive years of abundant harvests. China's grain production has remained stable at over 1.3 trillion jin (650 billion kilograms) for nine consecutive years, with a per capita grain availability exceeding 490 kilograms, surpassing the international food security standard of 400 kilograms per capita. Second, the variety structure has been optimized. The production of staple grains consistently exceeds demand, ensuring an absolute guarantee. The supply of high-quality rice and specialized wheat has increased. For corn, which has a high demand increment, there has been a significant increase in production, leading to a notable improvement in the supply-demand situation. The expansion of soybean cultivation has shown significant results, further improving self-sufficiency levels. Third, there is an ample grain inventory. Currently, China's grain inventory-to-consumption ratio is far higher than the safety level of 17% to 18% proposed by the Food and Agriculture Organization of the United Nations.

Therefore, it can be said that China's grain production has increased, the structure is optimized, and the reserves are sufficient, ensuring food security. In the next steps, we will further implement the strategy of sustainable farmland use and innovative application of agricultural technology for national food security, focusing on the key aspects of seeds and arable land, and strengthening supportive policies, so as to reinforce the foundations for food security on all fronts, and keep ourselves well-positioned for national food security. Thank you.

Sannongfabu:

Mr. Deng previously noted that China achieved record-high grain production last year. Could you provide an overview of the overall target for China's grain production in 2024? Additionally, what measures will be implemented to ensure the success of grain production? Thank you.

Pan Wenbo:

As you mentioned, achieving record-high grain production last year was no easy task for China, given the frequent occurrence of natural disasters. The central rural work conference, held at the end of last year, made it clear that annual grain output should continue to exceed 1.3 trillion jin (650 billion kg) this year. Focusing on this goal, the MARA will employ a two-pronged approach of stabilizing the cultivated land area and increasing yield per unit to ensure overall stability in the grain cultivation area, tap the potential and expand the cultivation area in regions where conditions permit, make steady progress in production, and strive to increase production while optimizing the structure of crop varieties and quality. As Mr. Deng mentioned earlier, specifically, this refers to the "Three Stabilities, One Expansion, and One Increase" approach. The "Three Stabilities" refer to stabilizing the production of staple grains, corn and soybeans. The "One Expansion" refers to expanding the cultivation area for oilseed rape. The "One Increase" focuses on increasing yield per unit. The key measures implemented will focus on the "One Foundation, Two Key Aspects."

The planting area is the foundation. First, we will make sure all parties fulfill their responsibilities. Under the requirements of the State Council, we will assign grain production objectives and tasks for 2024 to provincial governments. Together with other relevant departments, we will examine the farmland protection and food security-related work done by provincial Party committees and governments and see whether they fulfill their responsibilities. Second, we will offer more support and make sure of the lowest purchasing prices for wheat and rice as well as subsidies for corn, soybean, and rice producers. We will be more supportive of raising per-unit yields and encourage local governments and farmers to make more efforts related to grain production. 

One important approach is to increase per-unit yields in large areas. The MARA sees this as the top priority for grain production, and it involves two aspects. One is to focus on major counties for grain and oil production and thoroughly promote the main planting varieties, technologies, and equipment in an integrated manner so as to fully elevate per unit yields. The other is to boost the production of individual farmers or farming households operating on larger scales. We will foster skilled grain producers to inspire and motivate small and medium-sized farming households to achieve high production, thus evenly increasing production across large areas. 

Another important approach is to control losses through disaster prevention, mitigation, and relief. We will keep in mind that disaster mitigation leads to increased production, and preventive measures are more important than relief measures afterwards. We will do a good job in disaster mitigation to ensure agricultural production. The meteorological agency predicts that this year's meteorological situation is not looking good concerning agricultural production, so the task of disaster resistance and securing a bumper harvest will be strenuous. We will formulate disaster prevention plans and technical programs for different areas and crops, accelerate the construction of agricultural emergency disaster relief centers for both daily and emergency use, reserve supplies and prepare technologies beforehand, and implement other preventive measures. We will work on the frontline and be responsible for related work in different provinces and smaller regions, including coordination and offering guidance. We will assemble and deploy task forces and technical teams to work in disaster-stricken areas and offer guidance on implementing disaster mitigation measures in order to ease losses. Thank you.

China Media Group:

The bottom-line task of comprehensively advancing rural revitalization is to solidify and further the results of poverty alleviation and make sure no large groups of people sink back into poverty. What progress was made on this task last year? What's the next step? Thank you.

Deng Xiaogang:

I will answer these questions. As you said, as the bottom-line task of comprehensively advancing rural revitalization, the work to solidify and further the results of poverty alleviation is difficult and challenging. In 2023, the MARA coordinated different localities, government departments, and all sectors of society to earnestly implement the decisions and arrangements of the CPC Central Committee and State Council. We shouldered responsibilities, took a hands-on approach, and concretely advanced major tasks to solidify and further poverty alleviation results while promoting rural revitalization. The results of poverty alleviation have been solidified and furthered continuously. We secured the bottom line and prevented large groups of people from returning to poverty. In places that have shaken off poverty, farmers' revenue continued to grow at a faster pace than the average of all rural areas in the country. After being lifted out of poverty, people experienced continued improvements in living and production conditions, with the sense of gain, happiness and security continuing to grow. 

This year, the MARA will focus on securing the bottom line, creating momentum, and boosting development. In making sure no large groups of people return to poverty, we will allot more resources and strive to invigorate the internal driving forces of previously impoverished places so that people can better develop. 

First, we will monitor the situation and offer help to secure the bottom line. We will perfect dynamic monitoring, aid and support mechanisms to prevent poverty from reoccurring. We will expand the use of big data technology for predictions and early warnings to identify households that risk returning to poverty in a timely manner and put them onto a list for monitoring. For monitored households with the ability to work, we will take at least one development-oriented supportive measure and guide them to increase wealth through hard work. For monitored households without the ability to work, we will ensure their basic living standards. For farming households risking returning to poverty due to disasters, we will offer help to whoever is eligible and prioritize those who meet certain conditions. 

Second, we will boost industries and employment to create more momentum. This is key to solidifying the results of poverty alleviation and will help to invigorate the internal driving forces of previously impoverished areas and people's development in the long run. In terms of industries, central government funding will help maintain a stable proportion of rural revitalization subsidies used for the development of industries. We will offer differentiated guidance to facilitate the development of industries, with some being solidified, some upgraded, some revitalized, and some restructured in order to improve quality and efficiency and realize sustainable development. We will perfect the mechanism for rural industries to unite farmers and help them develop so as to let previously impoverished people enjoy more benefits of industrial added value. In terms of employment, we will deepen the efforts to boost employment and prevent reoccurring poverty. We will strengthen labor service cooperation between the eastern and the western regions and utilize channels such as employment support workshops, public-benefit job positions, and work relief to ensure 30 million job opportunities for previously impoverished persons. 

Third, we will boost development through policy implementation. We will assess the work of solidifying and furthering poverty alleviation results while promoting rural revitalization, monitor and evaluate the development of major counties receiving help to realize national rural revitalization strategies, and guide local governments to allocate more resources and energy to increase development capabilities. We will coordinate to utilize the resources such as east-west cooperation, targeted support by central authorities, resident working teams assigned to villages, and the private sector to offer support, creating a synergy to achieve better results. Meanwhile, we will study and design specific systems and arrangements for the post-transition period, explore how to align policies aimed at preventing reoccurring poverty and offering regular help to the rural low-income populations and move to establish a regular support mechanism for underdeveloped areas. Thank you.

Hong Kong Bauhinia Magazine:

A cold front has swept across the country recently, and the Spring Festival is coming. Given this, what is the current production and supply situation of "vegetable basket" products (non-staple foods) nationwide? What measures will be adopted to ensure supply? Thank you. 

Lei Liugong:

Thank you for your concern about the work related to "vegetable basket" products. Non-staple foods, I would say, have always been closely related to people's wellbeing. The supply of meat, eggs, milk, as well as aquatic products and fruit and vegetables, is something that the public is most concerned about, especially before the approach of the Spring Festival. In this regard, the general offices of the CPC Central Committee and the State Council have jointly released a circular to ensure well-coordinated work on all fronts for the New Year's Day and the Spring Festival break, emphasizing efforts to enforce the system whereby city mayors assuming responsibility for the "vegetable basket."

The CPC Central Committee has always attached great importance to the stable and secure supply of non-staple foods for people's livelihoods. Generally speaking, the supply of non-staple foods was sufficient in 2023, and the overall operation of the market was stable. Last year, total acreage and output of vegetables continued to grow. The total vegetable acreage was over 78 million mu as of late December, with its output reaching more than 21 million tonnes, an increase of over 800,000 mu and 600,000 tonnes year on year, respectively. Meat output, including pork, beef, mutton, and poultry, was more than 96.41 million tonnes, an increase of 4.5% year on year. Moreover, the output of aquatic products witnessed growth as well. The wholesale price index of non-staple foods, which is compiled on the basis of data collected from around 200 agricultural wholesale markets, stood at 124.91 in 2023, edging down from the same period in previous years. Moreover, the prices of some expensive fruits decreased as well. All municipalities directly under the central government, cities specifically designated in the state plan, and provincial capitals have attached great importance to the work related to the "vegetable basket," and have therefore made great efforts to ensure production, transportation, quality, and price stability. By doing so, the supply has been sufficient, diversified, and remained at steady prices.

We have an overall judgment on the supply of non-staple foods during the Spring Festival that you expressed concern about. I would say that the total supply of "vegetable basket" products will be guaranteed. Production capacity of meat, eggs, and milk was sufficient in the first quarter of 2024, according to monitoring data. In January, vegetable acreage witnessed a steady increase, laying a solid foundation for the supply of "vegetable basket" products. However, short episodes of freezing weather or snowstorms might be witnessed in some areas in winter and spring due to the influence of both El Nino and global warming, which would pose some risks and challenges to the provision of agricultural supplies. Given this, the MARA has made some arrangements to ensure the supply of non-staple foods during the Spring Festival. 

Going forward, we will make stepped-up efforts in the following five aspects. First, we will ensure that relevant parties shoulder their responsibilities. We will make sure that city mayors perform their due responsibilities for the "vegetable basket," and urge local governments, especially those of large and medium-sized cities, to improve their contingency plans for ensuring the provision of agricultural supplies. We will make sure that their response and measures adopted will be made based on different levels and categories. Second, we will ensure production stability. We will ensure the implementation of measures for preventing and mitigating disasters, as well as ensuring vegetable production according to different areas and categories. We will make coordinated efforts to ensure the production of pork, beef, mutton, poultry, and fresh milk, as well as aquatic breeding. Third, we will strengthen supervision. We will strictly fulfill our responsibilities for supervising the quality and safety of agricultural products and ramp up efforts to monitor risks in major areas, categories, and key links so as to ensure the quality and safety of agricultural products. Fourth, we will improve alignment. We will encourage local governments to implement the "green lanes" policy for fresh agricultural products transportation and help major producing areas establish stable cooperation with large and medium-sized cities. We will also improve trans-regional contingency mechanisms to ensure the provision of agricultural supplies and emergency response mechanisms for unsalable agricultural products. Fifth, we will make monitoring one of our top priorities. We will strengthen production scheduling for non-staple foods and market operation monitoring and release information concerning supply and demand in a timely manner to stabilize market expectations. Thank you. 

Reuters:

China has completed pilot projects for the commercialization of genetically modified (GM) corn and soybeans, as you mentioned previously. Does this suggest that China is opening up to commercial cultivation of GM soybeans and corn? Are there any limitations that remain? Moreover, what is the plan for the next step in the commercialization of GMO varieties? Thank you.

Pan Wenbo:

Thank you for your questions. The CPC Central Committee and the State Council have attached great importance to scientific research concerning biological breeding and its industrial application, making a series of important arrangements. Major progress has been achieved, and we also made a comprehensive introduction in this regard in August 2023. The Central Economic Work Conference in 2020 pointed out that efforts should be made to move forward with industrial applications of biological breeding in an orderly manner and on the basis of respecting science and providing strict supervision. The "No. 1 Central Document" for 2023 called for enhanced efforts to accelerate the industrial application of biological breeding, expand the pilot scheme in an orderly manner, and regulate planting management. In accordance with arrangements made by the CPC Central Committee, China launched projects focused on the industrialization of GM corn and soybeans in 2021, and these projects have been expanded to 20 counties in five provincial-level regions as of 2023, including Hebei, Inner Mongolia, Jilin, Sichuan, and Yunnan. A seed production program has also been launched in Gansu province. The results of the pilot program show that [the GM varieties] performed well in terms of increasing production, reducing costs, and improving efficiency compared to conventional varieties. The ministry has recently approved some GM corn and soybean varieties [for commercial production] in accordance with national bio-breeding industrialization arrangements, relevant laws, and regulations and issued licenses for 26 companies to breed and sell GM corn and soybean seeds. All the planting areas for these varieties must be in line with the national arrangements regarding bio-breeding industrialization.

Going forward, the MARA will earnestly implement the decisions and arrangements made by the CPC Central Committee and the State Council. We will thoroughly draw from the experience of pilot projects and improve supporting technologies and management measures so as to move forward with relevant work on the basis of strict supervision and guarding against risks in a stable, cautious, and orderly manner. We will improve technological reserves and institutional systems, strengthen supervision, and expand the scope of application in accordance with regulations in an orderly and regulated manner. Thank you. 

China Daily:

Last year, China imported large amounts of soybeans, mainly driven by the use of soybean meal for animal feed. What measures will be taken by the MARA to reduce soybean meal imports? And what is the current effect? Thank you.

Chen Bangxun:

China indeed imported large amounts of soybeans, which has attracted wide public attention. Soybean meal is an important protein source for feed. In recent years, with the increase in the number of livestock and poultry, the consumption of soybean meal has continued to rise, becoming a key factor for boosting soybean imports. Just as I mentioned, in 2023, China's soybean imports reached 99.41 million metric tons, up 11.4% over the previous year. At present, soybean meal accounts for a relatively large proportion of animal feed in China, and that could be further reduced based on the practice of large animal farming enterprises. In 2023, the MARA launched a three-year action plan on the reduction and substitution of soybean meal in animal feed, aiming to guide the sound use of feed in fish breeding and poultry raising, lower the use of soybean meal, and reduce consumption. This can be explained clearly in three points.

First, soybean meal reduction and substitution are sound and practicable. Soybean meal is a high-protein feed for animals to help supplement amino acids. According to relevant studies, livestock and poultry breeding actually do not require such a high level of protein consumption at present. According to the action plan on the reduction and substitution of soybean meal, we will promote the application of low-protein diet technology across the board. By adopting precise feed formulations and refined processing technologies, in combination with feed additives such as synthetic amino acids, we aim to meet the nutritional requirements of animals while reducing protein consumption. Practices have proved that application of this technology can reduce the consumption of soybean meal without affecting the efficiency of livestock and poultry production.

Second, besides reducing the use of soybean meal, we need to explore alternatives for it. In addition to soybean meal, there are also various resources, including byproducts of grain processing and microbial protein, which can be tapped into as feeds. We should make full use of these resources, expand alternative sources of protein feeds, and at the same time, try to increase the supply of high-quality forage to promote the "replacement of traditional feeds with forage" in cattle and sheep farming.

Third, soybean meal reduction and substitution have brought about conspicuous effects and will continue to be advanced. Since the launch of the action plan on the reduction and substitution of soybean meal, we have advanced the reduction of its use in animal husbandry, with its proportion in feed formulation dropping to 13%, down 1.5 percentage points compared with 2022. It is equivalent to a reduction of about 9 million metric tons of soybeans, calculated by annual consumption of feeds.

Next, the MARA will adopt a problem-oriented approach and work on both supply and demand sides. As well as consolidating and enhancing soybean production capacity, we will make efforts to reduce the consumption of soybean meal in animal feed. We will further advance the application of low-protein diet technology, explore and utilize resources of other protein feeds, increase the supply of high-quality forage, and continue to promote grain conservation and consumption reduction in livestock and poultry breeding. Thank you.

The Paper.cn:

We have noticed that pork prices are still low, and pig farming has suffered losses for a long time. How will this affect pig production? What measures will the MARA take to ensure the supply of pigs? Thank you. 

Lei Liugong:

Thank you for your attention. The market supply of pork was sufficient in 2023. According to the data of the National Bureau of Statistics, annual pork output stood at 57.94 million metric tons, up 4.6% year on year, reaching the highest level since 2015. On the other hand, pork prices have stayed at a low level for a long time. For consumers, they can have access to affordable pork, while for farmers, it has brought a tough time. In terms of revenues of pig farming, the average loss per head throughout the year was 76 yuan. This was also the first year since 2014 that the general ledger suffered a full-year loss. It should also be noted that the industry has been advanced in adversity. As estimated, over 68% of pig farming was carried out on a large scale in 2023, an increase of about 3 percentage points from 2022. The production efficiency of breeding sows continued to improve, laying a solid foundation for the sustained and healthy development of the pig industry.

In response to the overproduction of pigs and continued losses in pig farming, the MARA has guided localities to strengthen regulations regarding pig production, ensure stability in fundamental policies concerning land use, environmental protection, and finance, continue to improve information monitoring and early warning systems, and encourage farmers to adaptively reduce production capacity and sell pigs in a timely manner, in a bid to accelerate the return of supply and demand to equilibrium. According to the National Bureau of Statistics, at the end of December 2023, the number of breeding sow stocks reached 41.42 million, which was 2.5 million fewer than the highest point at the end of December 2022.

With regard to the future development trend, we recently organized experts, industry associations, and key enterprises to hold a discussion about it. In December 2023, the stocks of big pigs in large-scale breeding farms grew 3.7% year on year. These pigs will be ready for slaughter in one to two months, so it's expected that pig supplies will still be sufficient and that pig farming is likely to continue to suffer losses after the Spring Festival. Meanwhile, we should also see that as the number of breeding sows decreases, the number of newborn piglets will fall accordingly. According to our monitoring, since last October, the number of newborn piglets nationwide has fallen year on year, indicating that we have made progress in production capacity reduction. As the pig production capacity gradually returns to a reasonable level, the pig market is expected to be better in the second quarter than the same period last year.

Next, we will focus on three aspects to advance the steady development of pig production. First, we will step up monitoring. We will guide farmers to sell pigs in a timely manner, in case they blindly delay sales so that pig prices could not return to normal. We will keep a close eye on the changes in the stocks of breeding sows nationwide, issue early warnings at appropriate times, and guide farmers to reasonably arrange production. Second, we will optimize production capacity. We will improve measures to regulate pig production, see that local governments fulfill their responsibilities for ensuring stable production and sufficient supply of pigs, stabilize long-term supportive policies concerning land, environmental protection, and finance, and urge timely adoption of policies and measures including subsidies, credit, and interest discounts to ensure that pig production stays in a reasonable range. Third, we will work to prevent animal epidemics. We will enhance guidance on the prevention and control of swine diseases in spring, focus on the prevention and control of major animal epidemics, carry out the monitoring and investigation of epidemics, step up supervision over key links, including quarantine, transportation, and slaughter, and verify and respond to epidemics in a timely manner. Thank you.

Xie Yingjun:

The last two questions, please.

Science and Technology Daily:

We know that with the improvement of living standards, people want to eat well and eat healthily. What considerations does the MARA have in promoting healthy food consumption among urban and rural residents?

Lei Liugong:

As we all know, food is something we consume every day. Sufficient food supply and continuous improvement in nutrition are the material basis to ensure the people's happy life. Currently, China's per capita supply of energy, protein, and fat has exceeded the world's average, but nutritional imbalance and inadequacy are relatively common, which can be summarized as either excessive or inadequate intake. Excessive intake refers to excessive consumption of edible vegetable oil. Currently, China's per capita consumption of cooking oil exceeds 40% more than what is recommended. Meanwhile, inadequate intake refers to the insufficient intake of healthy foods such as milk and dairy products and soybeans and soy products. Currently, China's per capita consumption of dairy products is only one-third of the world average and one-half of the Asian average, far below the recommended dietary amount of 110-183 kg. The intake of soybeans and soy products is less than 59% of the recommended dietary amount, and there is considerable room for growth in both these aspects.

Next, the MARA will work with relevant departments to integrate the construction of a healthy China and the development of a strong agricultural nation, taking a series of measures to promote healthy consumption in order to meet the needs of people's high-quality lives and high-quality population development. First, we will further promote improvements in variety and quality as well as brand building and standardized production. By developing new types of soy products, cheese, and other healthy foods, we will increase the supply of green and high-quality products to enrich consumers' dining tables from a production perspective. Second, we will strengthen the supervision of quality, safe agricultural products, fully implement the standard certification system of edible agricultural products, and ensure safety control so as to reassure consumers about food safety from a regulatory perspective. Third, we will strengthen the publicity of food and nutrition knowledge on key topics such as reducing oil intake and increasing beans, and guide urban and rural residents to adjust their dietary habits and food structure. We aim to make sure that the general public will make informed choices, eat healthily, and maintain their well-being. Thank you.

CNR:

Rural development is closely related to the vital interests of farmers and has received widespread attention. What is the next step in creating livable, business-friendly, and beautiful rural areas? Furthermore, how can we motivate farmers and encourage them to participate more actively in rural development? Thank you.

Deng Xiaogang:

Thank you for your questions. I will answer them. Rural development is an important task in promoting comprehensive rural revitalization, directly impacting farmers' production and livelihoods. While recent efforts of various parties have yielded positive progress, there is still a considerable gap compared to farmers' expectations. In implementing the decisions and arrangements of the CPC Central Committee and the State Council, the MARA, alongside other relevant departments, will target the goal of "ensuring modern standards of living in rural areas." Taking the experience of the "Million Project" (Green Rural Revival Program) as a guide, we will focus on several issues that have a strong impact, can be effectively implemented within a few years, and can achieve visible results. The aim is to improve the level of rural development and gradually enhance the completeness of rural infrastructure, convenience of public services, and comfort of living environment. The main work can be summarized in three aspects:

First, we will coordinate the advancement of rural development. Adapting to the evolving situation in the rural permanent population, we will focus on the crucial concerns voiced by residents, such as paving village roads and ensuring a reliable supply of tap water. We will work to foster coordinated and intensive development efforts by leveraging the rural devleopment project database and task list. At the same time, we will improve the rural public service system and enhance the quality of public services, such as education, healthcare, and elderly care.

Second, we will take the lead in improving the rural living environment. We will continue the rural toilet revolution in a steady and sustainable manner, establishing long-term management and maintenance mechanisms, and ensuring that each toilet is upgraded to the highest standard possible. We will also coordinate the treatment of rural domestic sewage and garbage, enhance the appearance of villages, and carry out village clean-up campaigns in an orderly manner.

Third, we will continue to strengthen the support and guarantees for rural development. We will strengthen the scientific and technological R&D, integration demonstrations, and promotion and applications in key areas of rural development. We will also promote the formulation and revision of standards for planning, design, engineering construction, operation, and maintenance, etc. We will involve various parties in rural development through initiatives including "10,000 private enterprises revitalizing 10,000 villages."

In rural development, it is important to note that farmers are both beneficiaries and key participants. We should adhere to building rural areas for farmers and establishing implementation mechanisms for bottom-up and villagers' self-governance so that farmers have the desire to build, are willing to do it by themselves and have the ability to participate. We will focus on three key points: First, enhance participation mechanisms. We will improve the leading mechanism of rural grassroots party organizations and enhance mechanisms for promoting implementation, such as village committees, as well as mechanisms for consultation and promotion, such as villagers' meetings, and organize farmers to participate in decision-making. Second, diversify participation methods. We will guide farmers to contribute labor and materials and engage in construction through measures like building first, followed by subsidies and using rewards instead of subsidies. We will also adopt methods such as party member responsibility zones, street and alley chiefs, as well as policies like the "three responsibilities in front of the door" so as to encourage farmers to participate in management and maintenance. Third, strengthen participation guarantees. Farmers' awareness, participation rates, and satisfaction levels will serve as important criteria for implementing rural development projects. We will provide clear and concise information to stimulate farmers' motivation for participation. Thank you.

Xie Yingjun:

Thank you for the introductions, and thank you to all the journalists for your participation. That's all for today's press conference. Goodbye.

Translated and edited by Yang Xi, Wang Wei, Zhou Jing, He Shan, Liu Caiyi, Huang Shan, Wang Qian, Liu Sitong, Gong Yingchun, Zhang Rui, Xu Kailin, Yan Xiaoqing, 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.

.    Read in Chinese

Speakers:

Mr. Xin Guobin, 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 of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT

Chairperson:

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

Date:

Jan. 19, 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. Xin Guobin, vice minister of industry and information technology, who will brief you on the development of industry and information technology in 2023, and take your questions. We are also joined by Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), and Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT.

Now, I'll give the floor to Mr. Xin for a brief introduction.

Xin Guobin:

Ladies and gentlemen, friends from the media, good morning. Thank you for your continued interest in and support for the development of industry and information technology. Now, I'll brief you on the sector's general situation in 2023.

The year 2023 is pivotal for China, as it is the first year of fully implementing the guiding principles of the 20th National Congress of the Communist Party of China (CPC), a year of economic recovery and development after three years of COVID-19 prevention and control, and a significant milestone year in the country's industrial development. In September, the CPC Central Committee held a national meeting on promoting new industrialization, with General Secretary Xi Jinping providing key directives. This initiative sparked nationwide mobilization and arrangement meetings, igniting a wave of new industrialization efforts across the country. Under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MIIT, along with other departments and regions, conscientiously implemented the decisions and arrangements made by the CPC Central Committee and the State Council. The focus remained on maintaining stability while seeking progress, accelerating new industrialization and solidifying manufacturing. As a result, the industrial sector maintained an upward trend, and the information and telecommunications sector experienced accelerated growth, contributing to solid progress in high-quality development. In general, the progress in these areas can be characterized by five keywords: stability, innovation, strength, integration and enhancement.

First, by stability, we mean the stable growth momentum has been further solidified. In 2023, a series of policy measures targeted at stabilizing growth proved effective as the total value added of industrial enterprises above designated size grew by 4.6% year on year, or 1 percentage point higher than in 2022. Notably, the value added of manufacturing was up by 5% year on year. Over the past year, the industrial sector showed upward momentum while maintaining stability, with expansion across 10 major industrial provinces and 10 major industries, contributing to overall stable growth. The size of the country's manufacturing sector continued to lead globally for the 14th consecutive year.

Second, by innovation, we mean the new growth drivers were further enhanced. We continued to drive the development of a modern industrial system through technological innovation. We built 27 national manufacturing innovation centers, two manufacturing innovation centers through national and local partnerships, and accelerated the creation of 45 national-level advanced manufacturing clusters. We focused on strengthening the industries we excel in, such as the three new growth drivers of export, namely solar batteries, lithium-ion batteries and electric vehicles, which collectively surpassed an export value of over 1 trillion yuan ($139 billion) for the first time. The shipbuilding industry has continued to dominate the global market, maintaining the largest global share for 14 consecutive years. We have also nurtured other new growth drivers of the economy, such as emerging industries like new materials and robotics, which experienced rapid growth. We have also accelerated the commercialization of major technological breakthroughs. This includes significant advancements in fields like machine tools and key software technologies. Moreover, there have been major achievements in the production and application of large passenger airlines and high-end medical equipment.

Third, by strength, we mean the strong industrial foundation has been further solidified. We have accelerated the technological transformation and upgrading of traditional industries, intensified the promotion of intelligent manufacturing, and established 62 "lighthouse factories," accounting for 40% of the global total. We have built 421 national-level intelligent manufacturing demonstration factories and over 10,000 provincial-level digital workshops and smart factories. We have steadfastly promoted green and low-carbon transformation, with green emerging industries gradually growing stronger. The efficiency of comprehensive utilization of industrial resources has further improved, with the annual utilization of bulk industrial solid waste expected to exceed 2.2 billion metric tons. We continue to enhance the resilience and security of industrial and supply chains, coordinating efforts to address weaknesses and strengthen foundations. Industries such as electronics and software have shown strong resilience in their development.

Fourth, the trend of digital integration has further accelerated. We have vigorously promoted core industries of the digital economy. In 2023, the annual telecom service revenue grew by 6.2% year on year. The electronic information manufacturing industry has stabilized, the software industry has grown in terms of both volume and efficiency, and the internet industry has steadily recovered. Network infrastructure has been continuously strengthened, with service capabilities being continuously upgraded, and our total computing power ranks second globally. The integration of digital and physical systems has been deeply implemented, with 5G applications integrated into 71 of the 97 categories of the national economy, and the industrial internet covering all 41 industrial categories. Capabilities for ensuring network and data security have been continuously enhanced.

Fifth, by enhancement, we mean the business environment was further improved. We have deeply implemented 31 policy measures for the private sector, stimulating the vitality of various types of business entities. In collaboration with relevant departments, we have continuously worked to reduce the burden on enterprises. In the first 11 months of 2023, newly implemented tax cuts, fee reductions, refunds and deferred payments amounted to 1.8 trillion yuan. We have advanced the integration of industry and finance, with the national industry and finance cooperation platform providing up to 712 billion yuan in financing for enterprises. We have focused on supporting the growth of small and medium-sized enterprises (SMEs), cumulatively nurturing 103,000 innovative SMEs that use special and sophisticated technologies to produce novel and unique products, including 12,000 "little giant" enterprises with high growth potential. We have extensively listened to the opinions and suggestions of enterprises, established and improved a regular communication mechanism for manufacturing enterprises, and timely addressed and resolved critical issues.

In 2024, the industrial sector still faces a severe and complex internal and external environment. However, with a complete industrial system, a vast market scale, a well-developed information infrastructure as well as the strong momentum gathered for industrial development following the national meeting on promoting new industrialization, the long-term positive trend of China's industrial sector will not change. We will earnestly implement the arrangements of the Central Economic Work Conference and the national meeting on promoting new industrialization, resolutely fulfill the key task of achieving new industrialization, consolidate and reinforce the positive trend of the industrial sector, promote high-quality development in the information and telecommunications industry, and provide a solid material and technological foundation for building China into a great modern socialist country in all respects and advance the great rejuvenation of the Chinese nation on all fronts by pursuing Chinese modernization.

That concludes my introduction. Now, my colleagues and I are willing to answer your questions. Thank you.

Xing Huina:

Thank you. The floor is now open for questions. Please identify the media outlet you represent before raising your questions.

CCTV:

As Mr. Xin just mentioned, in 2023, the industrial economy witnessed the momentum of recovery, and the information and communications sector achieved a smooth and rapid growth. Please give an overview of the development of the industrial sector and the information and communications sector in 2023. Thank you.

Xin Guobin:

Thank you. 2023 has been an extraordinary year for China. The MIIT earnestly implemented the spirit of the Central Economic Work Conference and the national meeting on pushing forward new industrialization. In accordance with the arrangements and requirements of the CPC Central Committee and the State Council, we advanced our work while maintaining stability. The industrial economy steadily recovered despite fluctuations, showing greater development resilience. The five most prominent aspects are as follows: 

First, industrial production was stabilized and accelerated. In 2023, the added value of industrial enterprises above designated size grew 4.6% year on year. Key sectors showed an overall improvement in production. Out of the 41 major industrial categories, 28 maintained growth. Ten key sectors stabilized fundamentals and realized an average growth of more than 5%, higher than the national average growth of added value of industrial enterprises above designated size, providing strong support for the overall improvement of the industrial economy. Industries, such as electrical machinery and equipment and automobiles, realized double-digit growth in production, all surpassing 10%. The added value of industrial enterprises above designated size in the auto sector rose 13%. Traditional industries, such as steel, nonferrous metals, and petrochemicals, picked up in terms of speed of recovery. The electronics industry bottomed out and realized a 3.4% annual growth, which wasn't easy. 

Second, the industrial economy steadily recovered in most provinces. All regions paid great attention to the development of manufacturing. Guangdong promoted manufacturing as the backbone of development. Shandong prioritized the industrial economy. Most provinces saw year-on-year growth in industrial added value, with the proportion of provinces seeing a growth nearly 20% higher than in 2022. Ten major industrial provinces played a stronger leading role, and all realized year-on-year growth in production. In eight of the 10 major industrial provinces, the growth rate of added value of industrial enterprises above designated size was higher than the national growth rate. Provinces such as Jiangsu, Shandong, and Anhui saw growth of more than 7%. 

Third, the performance of enterprises steadily recovered. As of the end of November 2023, the proportion of industrial enterprises above designated size suffering losses continued to fall for eight straight months starting April; the growth rate of operating revenue of industrial enterprises above designated size rose for five consecutive months; and the profits of industrial enterprises above designated size realized growth for four months in a row starting August. This provided a strong support for enterprises to expand investment in innovation and realize reproduction. 

Fourth, industrial investment was stabilized and progress was made. Industrial fixed assets investment maintained growth, up 9% year on year, while China's total investment in fixed assets grew by 3%. The growth of investment in manufacturing has accelerated since August 2023. Investment in industries such as automobile, electrical machinery and equipment, chemical, and nonferrous metals, saw two-digit growth, all surpassing 10%. These investments will boost future development – today's investment will yield benefits tomorrow. 

Fifth, market expectations were stabilized and improved. As of the end of November 2023, the number of industrial enterprises above designated size reached 483,000, 32,000 more than that at the end of 2022. Business entities continued to expand and thrive. The manufacturing PMI (an index tracking production and operating activities) rose for three straight months since October 2023 and has always remained higher than 50-point mark throughout the year, showing manufacturers' steadily recovered confidence in development. 

Meanwhile, the information and communications sector also developed rapidly. In 2023, the telecommunication sector saw revenue up 6.2% year on year and an increased business volume of 16.8%, offering major support to empower economic growth. 

Network infrastructure continued to improve. A total of 3.377 million 5G base stations have been built. The number of gigabit network ports reached 23.02 million. The foundation of the Internet of Things (IoT) has been increasingly solidified. The mobile IoT end users accounted for 57.5% of all mobile network terminal connections. Tech industries developed innovatively. Customized 5G base stations and lightweight 5G technologies have been commercialized. We launched the world's first smartphone with a satellite calling function and our capacity for scientific and technological innovation in 6G, quantum communication, and artificial intelligence has been built up rapidly. 

The empowering effect became increasingly prominent. 5G technology has been applied in 71 major categories of the national economy. More than 10,000 programs saw the integration of 5G and the industrial internet. The pilot application in key areas such as culture and tourism, medical care, and education helped revive and boost consumption. 

Inclusive services were deepened. More than 80% of administrative villages in China have gained 5G access. A total of 2,577 websites and applications frequented by the elderly and the people with disabilities were renovated and upgraded. We intercepted 54 billion harassment calls during the year and publicly disclosed 1,861 illegal applications to continue to protect users' rights and interests. 

The ability to ensure cyber and data security was further enhanced. We continued to improve the capability to prevent major risks threatening the basic telecommunications network. The protection of industries' key infrastructure was enhanced significantly.

In 2024, the MIIT will take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, prioritize high-quality development, actively address internal and external risks and challenges, further enhance the momentum of recovery and improvement of the industrial economy, and further promote the high-quality development of the industrial sector and the communications sector. 

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

China Electronics News:

We have noticed that China's manufacturing sector is quite keen on digital transformation. What has the MIIT done to support this transformation? What are your considerations for the future? 

Tao Qing:

Thank you for your questions. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached high importance to the digital transformation of the manufacturing sector and made a series of instructions. The MIIT has conscientiously and solidly advanced all the major tasks, promoting the quick and high-quality digital transformation of the manufacturing industry. First, the digital infrastructure has been built to form strong support. We have built the world's largest optic fiber and mobile broadband network and had the world's second-largest scale in terms of computing power. The number of influential industrial internet platforms surpassed 340. Second, digital technologies and industrial supplies have been hugely improved. Technological innovation in cloud computing, big data, and other areas led the world. Industrial robots, industrial software, and other digital products and services continued to improve. More than 4,400 artificial intelligence enterprises emerged. System integration in steel, petrochemical, and lithium-ion battery sectors reached an internationally advanced level. Breakthroughs have been made in integrated chassis die-casting, precision manufacturing of battery cells, and flexible assembly of photovoltaic components. A comprehensive digital technological and industrial system started to take shape. Third, major sectors transformed at faster pace. As of the end of December 2023, we have incubated 421 national demonstration factories and more than 10,000 digital workshops and smart factories at provincial level. The demonstration factories of large aircraft, new energy vehicles, and high-speed EMUs shortened the research and manufacturing time by nearly 30% on average and improved production efficiency by around 30%. Intrinsic safety of demonstration factories in the steel, building material, and civil explosive sectors hugely improved, reducing carbon emissions by around 12%. The national service platform for the integration of informatization and industrialization served 183,000 industrial enterprises. The use of digital R&D and design tools in these enterprises reached 79.6%, and the numerical control rate of key production processes reached 62.2%. Fourth, the policy environment continued to improve. Different localities and government departments enhanced planning and policy guidance, innovated mechanisms, and provided stronger support, achieving many successes and creating models for others to follow.

Accelerating the digital transformation of manufacturing is imperative and in line with the trend of the new industrial revolution, enhancing the level of industrial modernization and building a modernized industrial system. Next, the MIIT will adhere to the deep integration of information technology and new industrialization as the main focus and prioritize the following four aspects:

First is to strengthen the foundation and accelerate the unified deployment and construction of bottom-level standard agreements, data flow rules, network infrastructure, and other key points and obstacles. Second is integrated advancement, constructing a work system that collaboratively promotes digital assessment, scenario cultivation, transformation demonstration, and widespread application. Third is the linkage of supply and demand, understanding enterprise transformation needs and barriers and adopting various methods, including opening scenarios on the demand side, joint tackling of challenges with a supply-demand competition mechanism, and nurturing high-quality solutions and service providers to enhance supply-demand matching, and improving the efficiency of digital transformation. Fourth is to implement targeted measures, cultivate specialized service provider teams in specific fields, adhere to enterprise-specific strategies, encourage enterprises with strong digital foundations to upgrade towards intelligence and accelerate the digitalization of key business processes in various industries. Thank you!

ThePaper.cn:

Last year, China's information and communication industry experienced steady and continuous growth, leading globally in 5G innovation. Could you please provide information on the current status and future focus of 5G infrastructure construction and applications in China?

Zhao Zhiguo:

Thank you for your question. The MIIT has been implementing the decisions and arrangements of the CPC Central Committee and the State Council, making solid progress in the innovative development of China's 5G. As of the end of 2023, the total number of 5G base stations in China reached 3.377 million, with a further consolidation of network infrastructure and continuous enrichment of internet applications. In general, the following four characteristics can be summarized.

First is innovation. The innovative capabilities of the 5G technology industry in terms of technical standards, network equipment, terminal devices, etc., have continuously strengthened. Lightweight 5G core networks and customized base stations have been commercially deployed. A batch of new terminal devices, such as 5G industrial gateways and inspection robots, have been successfully developed. Our global share of standard essential patent declarations for 5G exceeds 42%, maintaining a leading position worldwide.

Second is integration. The breadth and depth of integrated applications continue to expand, with 5G industrial applications integrated into 71 categories of the national economy, over 94,000 application cases, and more than 29,000 5G industry virtual private networks. 5G applications have been extensively promoted in industries such as manufacturing, mining, power, ports, and medicine. For example, in the medical industry, 5G applications have extended from remote diagnosis to remote precision treatment. In the power sector, 5G applications have expanded from unmanned inspections in the "transmission" stage to cover the entire process of "generation, transmission, transformation, distribution, and utilization."

Third is green. 5G networks are accelerating towards intensive, efficient, green, and low-carbon development. Existing station resources, public resources, and social pole and tower resources were fully utilized to build 5G base stations. The bidirectional sharing of communication pole and tower resources and social pole and tower resources was actively promoted. Currently, over 90% of base stations achieve co-construction and sharing. The energy consumption of 5G base stations continues to decrease, with a single-site energy consumption reduction of over 20% compared to the initial commercial stage.

Fourth is value creation. The continuous growth of 5G mobile phone users and rapid increase in 5G traffic consumption have promoted the vigorous development of emerging businesses such as glasses-free 3D and cloud phones, effectively expanding the development space of the mobile communication market. As of the end of last year, there were 805 million 5G mobile phone users, and 5G network access traffic accounted for 47%. According to research institutions, it is estimated that in 2023, 5G directly drove a total economic output of 1.86 trillion yuan, a 29% increase from 2022.

Next, the MIIT will work together with various parties in production, academia, research, and application, strengthen inter-departmental collaboration, continuously promote the large-scale development of 5G applications, and achieve new results to provide strong support for promoting high-quality economic and social development. First is to strengthen policy guidance. We will study and introduce policies for the continued development of 5G applications, fully play the role of policy guidance, and promote the high-quality development of the entire 5G industry chain. Second is to deepen network coverage. We will accelerate 5G network construction, promote deep coverage of mobile networks in key locations, advance the construction of the 5G industry's virtual private networks, and provide network support for industry transformation and development. Third is to accelerate application expansion. We will focus on key industry application scenarios, set up demonstration benchmarks, strengthen promotion and application, and promote the large-scale development of 5G applications. Fourth is to enhance innovation capabilities. We will strengthen the construction of the 5G integration application standard system, continuously promote technological evolution and product development of 5G-A and lightweight 5G, etc. We will accelerate the research of 6G technology, conduct technical experiments, strengthen technological reserves, and deepen exchanges and cooperation. Thank you.

Cover News:

In 2023, China's automotive industry made significant progress. Could you please introduce the relevant situation? What measures will be taken this year to promote the high-quality development of the industry? Thank you.

Xin Guobin:

The automobile industry is a crucial pillar industry in China, and its development in recent years has attracted attention both domestically and internationally. Last year witnessed numerous innovative products, especially some innovative products in new energy, which became trending topics on social media. With the collective attention of society, the automotive industry achieved remarkable highlights last year, presenting an excellent report card.

First, the production and sales volume of automobiles exceeded 30 million units for the first time. Last year's annual production and sales reached 30.161 million and 30.094 million units, with year-on-year growth of 11.6% and 12%, respectively, setting a historical record. While production reached 29 million units in 2017 and experienced a continuous decline in the following years, last year we surpassed the 30 million mark, maintaining the global leading position for 15 consecutive years. After breaking through 10 million units in 2009, it took us three to four years to exceed 20 million units. After more than a decade of development, breaking through to 30 million units indicates a significant achievement. The retail sales of automobiles reached 4.86 trillion yuan, accounting for 10.3% of the total retail sales of consumer goods. The added value of the automobile manufacturing industry above a designated scale increased by 13% year on year, making a significant contribution to the stable growth of China's economy.

Second, new energy vehicles continued to lead globally. In 2023, the production and sales of new energy vehicles reached 9.587 million and 9.495 million units, respectively, with year-on-year growth of 35.8% and 37.9%. The sales volume of new energy vehicles reached 31.6% of the total new vehicle sales, demonstrating a high penetration rate. Semi-solid-state batteries with an energy density of 360 watt-hours per kilogram were applied to vehicles last year, and this new product was exhibited to the public at the International Automobile and Manufacturing Technology Exhibition in April. Vehicle-grade large-scale computing chips significantly improved their performance, integrating various advanced technologies and becoming highly popular products at major auto shows such as the International Automobile and Manufacturing Technology Exhibition held in April last year in Shanghai, and the World New Energy Vehicle Conference held in Munich, Germany in September. They have received a positive response in Europe and in Germany. Many consumers, as well as many car companies and research institutions, paid close attention. At the exhibition, some professional technicians even spent a long time studying underneath the vehicles and relayed that China's innovative products are indeed advancing rapidly, with a high level of intelligence and good quality. Overall, they gave very positive evaluations. 

Third, China's exports have made further advancements. In the whole of last year, total exports of complete vehicles reached 4.91 million units, a year-on-year increase of 57.9%, with the prospect of leaping to the top spot globally for the first time. Among these, the export of new energy vehicles (NEVs) amounted to 1.203 million units, marking a year-on-year growth of 77.6%, thus offering global consumers a diverse range of consumption choices. The export of batteries reached 127.4 gigawatt-hours, a year-on-year increase of 87.1%. The "new three items" have added a new touch to China's manufacturing industry, boosting our confidence and burnishing China's image.

Apart from these accomplishments, it is essential to acknowledge various unfavorable factors stemming from the external environment. These include sluggish consumption demands and the misuse of trade remedy measures as protectionist actions in some countries and regions. In terms of the industry, this pattern has become a global consensus, although there are areas that still require coordination in the process. Many NEV companies, especially those primarily focused on the domestic market, have yet to achieve profitability. In terms of product sales, there are also some shortcomings in areas such as automotive chips. In addition, in the development of intelligent connected vehicles, the collaboration between vehicles and the road is not yet comprehensive. In the past, there were some traditional approaches that aimed to make the vehicle side an all-encompassing solution to every issue. China has proposed the implementation of a strategy for collaborative development between vehicles, roads, and the cloud: Issues that can be addressed by the vehicle are handled by the vehicle; those that can be resolved by the road infrastructure are addressed at the road level; and problems suitable for cloud solutions are tackled in the cloud. At the same time, there are instances of disorderly competitive practices, where certain regions and companies are initiating projects for NEVs without proper planning, leading to redundant constructions. These issues demand our highest attention, and decisive measures must be implemented to address them.

Xin Guobin:

It's fair to say that the development of NEVs last year was satisfactory. The sustainability of this momentum is a matter of great concern for everyone and holds significant importance for us. In the beginning of the year, we collaborated with industry institutions, research agencies, and industry associations to conduct thorough research, delving into the current development environment, constraints, and favorable factors for further development. Currently, the research findings from industry associations are optimistic. They anticipate that by 2024, there will be stable growth in production and sales within China's automotive industry, with NEVs maintaining a positive development trend. The current estimate for the overall scale suggests that it is expected to reach 31 million units in 2024, with a modest year-on-year increase of around 3%. The production and sales of NEVs are projected to reach approximately 11.5 million units, experiencing a growth of roughly 20%. Certainly, these data are projections made by relevant enterprises and research institutions, and we will conduct further validation of the findings. In general, I consider this assessment to be trustworthy.

For the next step, we will earnestly implement the arrangements made by the Central Economic Work Conference and the National Conference on Promoting the New Type of Industrialization. We will collaborate with relevant departments to further enhance macroeconomic guidance, strengthen industry management, and promote the high-quality development of the automotive industry.

First, we will implement favorable policies like reducing vehicle purchase taxes, thoroughly conduct pilot projects of electrification in public transport vehicles, and launch NEV campaigns in rural areas. These efforts aim to actively spur the consumption of NEVs and ensure the stable operation of the industry. Last year, we conducted six rounds of NEV campaigns in rural areas, tapping the market potential in these areas and promoting the development of charging and swapping infrastructure, further enhancing the consumption experience of rural consumers.

Second, we will support enterprises in collaborative innovation and intensify efforts in key technologies such as automotive chips, solid-state batteries, and advanced autonomous driving, further enhancing the market competitiveness of products.

Third, we will advance the implementation of pilot projects for the access and "vehicle-road-cloud integration" of intelligent connected vehicles. We will accelerate the construction of infrastructure, such as roadside perception and cloud control for connected vehicles; further improve the standard systems for on-vehicle, roadside, and network aspects; and continue to promote the commercial application of intelligent connected vehicles. Here's an invitation to all media friends: I recommend visiting Yizhuang in Beijing. As of now, the results of the vehicle-road-cloud collaboration experiments in Yizhuang are highly promising. The country has been actively advancing the comprehensive development of vehicle-road-cloud collaboration through the establishment of over 30 such pilot demonstration zones nationwide.

Fourth, we will further strengthen the coordinated layout of industrial development, guard against and resolve the risk of overcapacity, and maintain a fair and competitive market order. The automotive industry is a globalized sector, and in the development process this year, we will continue to promote internationalization and advocate for collaborative innovation and global development. We will work towards eliminating various forms of trade protectionist policies, creating a favorable international and domestic environment for industry development.

That's all from me. Thank you!

Xinhua News Agency:

Over recent years, the MIIT has actively promoted the empowerment of industrial digitization through the industrial internet. Could you please provide an overview of the current achievements in the innovative development of China's industrial internet? Additionally, what considerations are being made for the next step?

Zhao Zhiguo:

Thank you for your questions. Currently, China's industrial internet has entered a new phase featuring substantial and large-scale development. Here are three sets of data: in terms of industrial scale, it is expected that the core industry scale will reach 1.35 trillion yuan by 2023; in terms of coverage, industrial internet has integrated into 49 major categories of the national economy, covering all major industrial categories; in terms of development momentum, the "Hundred Cities, Thousand Parks Initiative" for industrial internet is thriving nationwide, facilitating the connection of over 10,000 enterprises in supply and demand, and driving investments exceeding 170 billion yuan. These accomplishments can be summarized in the following four aspects. 

First, significant progress has been made in developing new infrastructure that integrates the digital economy with the real economy. The identification resolution system has been comprehensively established, with the "5+2" top-level nodes operating stably, serving over 400,000 enterprises. There are over 340 industrial internet platforms with a certain level of influence, and the number of connected industrial devices exceeds 96 million sets. Meanwhile, a collaborative and efficient security system, integrating technology and management, has been established.

Second, further advancements have been made in achieving new breakthroughs in key technologies. We have accelerated the integration of information technology (IT), communication technology (CT), control technology (OT), and digital technology (DT), achieving notable breakthroughs in industrial-grade 5G chips, modules, and gateways. The cost of industrial-grade 5G modules has seen a reduction of 90% compared to the initial commercial stage, laying a solid foundation for widespread applications. In total, three international standards and 90 national ones have been released.

Third, the "new space" for its application is increasingly expanding. We have created the Chinese brand for 5G factories, releasing the directory of the first batch of 300 5G factories, with a total investment of nearly 10 billion yuan. The industrial internet has permeated various facets of the manufacturing sector, including research, production, supply, sales and services. It supports the development of national major projects, serves the green and low-carbon development, promotes consumption upgrades, and ensures safe production. This has effectively facilitated smart-technology upgrades, digital transformation and enterprise network connectivity.

Fourth, the "new ecosystem" of win-win cooperation is growing vigorously. Various types of market entities are advancing together. There are more than 2,500 member units in the Alliance of Industrial Internet, playing a crucial role in technological innovation, talent training and international cooperation. It has become the world's largest industrial ecosystem carrier in this field. The number of listed industrial internet companies has continued to grow for seven consecutive years, reaching a total of 300.

In the next step, we will collaborate with all parties to fully implement the guiding principles of the 20th CPC National Congress, act upon the decisions and arrangements of the CPC Central Committee and the State Council, and make every effort to promote the high-quality development and widespread application of the industrial internet. First, we will enhance policy guidance by issuing guidelines to promote the high-quality development of the industrial internet. We will facilitate "connectivity" of industrial internet identity, and issue new application guidelines for various industries within the industrial internet. Additionally, we will further improve the policy environment for industrial internet development and promote its extensive application. Second, we will expedite innovation-driven development, diligently implementing the innovative development project of the industrial internet. We aim to achieve breakthroughs in key technologies, accelerate the industrial application of various research and development achievements, and formulate and implement a new set of national, industry and group standards to strengthen the technological and industrial foundation for developing the industrial internet. Third, we will accelerate the cultivation of the industrial ecosystem and initiate a new round of the campaign to promote the application of the industrial internet in 1,000 industrial parks in 100 cities. We will select a group of high-level national "5G+ industrial internet" integrated application pilot zones, advancing the application of relevant policies, technologies, standards, products, and services in industrial parks, bases, and clusters. This will provide solid support for promoting the integration of digital technologies with the real economy and advancing new industrialization. Thank you.

China Daily:

New industrialization is characterized by green and low-carbon production. What achievements have been made in pursuing green and low-carbon production since last year? What are the key tasks and measures for the next stage? Thank you.

Tao Qing:

In 2023, the MIIT faithfully implemented Xi Jinping Thought on Ecological Civilization, made efforts to promote the transition to green and low-carbon industrial development in accordance with the arrangements of the national meeting on promoting new industrialization, and achieved positive results.

First, the industrial structure has constantly improved. The green and low-carbon transition and upgrading of industries are accelerating, leading to the further elimination of outdated production capacity in industries such as steel, electrolytic aluminum, petrochemicals, and building materials. A total of 78 steel enterprises have completed the full-process ultra-low emission transformation of their production capacity, totaling 390 million metric tons of crude steel. The intensity of key pollutants and carbon dioxide emissions in key industries continues to decline.

Second, green growth drivers have been further unlocked. We have continued to promote the building of a green manufacturing system, enhancing efforts to cultivate advanced models. By the end of 2023, a total of 5,095 green factories had been established at the national level, contributing to over 17% of the total output value of the manufacturing industry. A 16-megawatt offshore wind turbine with the world's largest single-unit generating capacity was successfully connected to the grid and commenced power generation. The production of key components in the photovoltaic industry has held the world's top position for several consecutive years. Coastal and inland river vessels are accelerating towards green and intelligent development. The country's first 10,000-ton-level green hydrogen demonstration project was completed and put into operation. The total output value of the environmental protection equipment manufacturing sector is expected to exceed 970 billion yuan.

Third, energy resource utilization is becoming more efficient. Energy efficiency in key energy-consuming industries continues to improve, with over 30% of production capacity reaching the energy efficiency benchmark level in industries such as ethylene. The annual reuse rate of industrial water in enterprises above the designated size is expected to exceed 93%. The energy efficiency of information infrastructure also continues to improve, with a total of 196 green data centers developed by the end of 2023.

Fourth, the comprehensive utilization system of industrial resources has further improved. Throughout the year, 239 enterprises specializing in recycling renewable resources, such as scrap steel, wastepaper, and used power batteries from new energy vehicles, were selected. The comprehensive utilization of used power batteries from new energy vehicles reached 225,000 metric tons, essentially achieving full recycling. The home appliance industry has attained a recycling rate of over 80% for products like refrigerators, washing machines, and air conditioners through easy-to-recycle and detachable designs.

In the next step, the MIIT will continue to promote the implementation of the plan for the green development of industrial sectors during the 14th Five-Year Plan period (2021-2025). We will consistently strengthen the "green" aspects of new industrialization and steadfastly pursue eco-friendly development.

First, we will actively and prudently promote carbon emissions reduction in the industrial sector. We will coordinate efforts to reach the carbon peak in the industrial sector and other key industries. We will also initiate pilot projects for digital carbon management within the industrial sector. The plan for 2024 is to formulate carbon footprint accounting rules and standards for approximately 100 key products. We will vigorously develop green and low-carbon industries like hydrogen energy and energy storage. Additionally, we will elevate the requirements for energy consumption and environmental protection concerning outdated production capacities and accelerate coordinated efforts to reduce pollution and carbon emissions.

Second, we will strive to establish a green manufacturing and service system. We will implement the green manufacturing project and aim to nurture 1,000 national-level green factories by 2024. We will enhance the green manufacturing and service system and introduce the "enterprise green code" on a pilot basis. We will fully leverage the role of the national industry-finance cooperation platform to actively create green consumption scenarios in areas such as new energy vehicles and green home appliances.

Third, we will focus on improving industrial energy and water efficiency. We will promote energy efficiency improvements in key industries and key energy-consuming equipment, such as motors and transformers. Additionally, we will expedite the construction of industrial green microgrids in key industries and sectors. We will introduce a catalog of recommended energy and water-saving technologies and equipment for the industrial sector in 2024 and continue to foster leading enterprises in energy and water efficiency.

Fourth, we will comprehensively promote the efficient utilization of resources. We will accelerate the establishment of a waste recycling system and encourage regions with favorable conditions to create "zero-waste industrial parks" and "zero-waste enterprises." We will promote the well-regulated development of the comprehensive utilization industry of renewable resources and strive to achieve a steady increase in the comprehensive utilization of major types of renewable resources. We will improve the utilization system for the solid waste of emerging industries and aim to achieve an annual comprehensive utilization of over 260,000 metric tons of waste power batteries. Thank you.

Phoenix TV:

General Secretary Xi Jinping emphasized once again in his important speech at the opening of a study session on boosting the high-quality development of the financial sector, attended by principal officials at the provincial and ministerial levels, that the fundamental principle that finance serves the real economy must be upheld. Can you please provide a detailed introduction to the relevant work of the MIIT in promoting the positive cycle of "technology-industry-finance"? Thank you.

Xin Guobin:

Thank you for your question. The central financial work conference was held at the end of last year. General Secretary Xi Jinping attended the conference and delivered an important speech, emphasizing the need to adhere to the fundamental principle of providing financial support for the real economy. Over the past year, the MIIT has taken the initiative and actively collaborated with the Ministry of Finance, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission to carry out exploratory work. This has further guided financial resources to better support major strategies, key areas, and weak links in the manufacturing industry. At present, we have engaged in strategic cooperation with 22 financial institutions nationwide, forming a preliminary pattern of industry and finance cooperation featuring departmental collaboration, vertical linkage between the central and local governments, and policy coordination and cooperation, with extensive participation from financial institutions. This collaboration has yielded positive results, with the outstanding medium- and long-term loans to the manufacturing sector growing around 30% for three consecutive years. And that was not an easy task. The scale of financing assisted by the national industry-finance cooperation platform increased 68% year on year and is still expanding.

To deepen the cooperation between industry and finance and support the industrial application of scientific and technological advances, we have led the implementation of a special pilot project called "Integration of Science, Technology, Industry, and Finance." We are actively exploring an integrated resource allocation path where "enterprises pose questions, the market provides answers, capital selects projects, and local governments assume responsibilities." Relying on the mechanism for evaluation of key and core technologies and cultivation of listed companies — jointly established with securities exchanges — as well as local policy support, we guide social capital to invest early, in small amounts, and in key and core technologies. This creates a sustained and stable mechanism for innovative investment to address weaknesses, enhance strengths, and strengthen foundational components. During the project-oriented stage, R&D needs are proposed by leading or competitive enterprises in the industrial chain, and an open competition mechanism is introduced to select the best candidates to undertake such projects. With these R&D projects included in the scope of key and core technologies, we encourage investment institutions to support them and local governments to provide further preferential policies .

In the industrial production and market application phase, corresponding policies such as preferential loans, industrial investment, and insurance compensation are implemented to help innovative achievements rapidly tap the market, facilitating market validation and technological iteration. Meanwhile, qualified enterprises are recommended for inclusion in the incubation system for listing. We will strengthen guidance on their expectations for listing, and encourage them to leverage the capital market to grow larger, better, and stronger. Last year, a multi-directional docking event for industry and finance cooperation, among industries, and for industrial and urban integration was held in Xiongan New Area. In four key sectors — aerospace information, artificial intelligence and robotics, biomedicine, and advanced new materials — a total of 58 early-stage projects involving core technologies participated in roadshows. Of these, 55 projects signed cooperation intention agreements with investment institutions or local entities, achieving a financing amount of 11 billion yuan. We pushed forward the establishment of the Beijing-Tianjin-Hebei Enterprise Incubator for the STAR Market in Xiongan, aiming to provide services from the very beginning to cultivate innovative high-tech enterprises that could list on the STAR Market. These are some of the innovative explorations in promoting integration.

This year, we will continue to deepen the cooperation between industry and finance and strengthen our collaboration with financial regulatory authorities. We plan to expand the scope of the "Integration of Science, Technology, Industry, and Finance" special project, and organize special roadshows for the transformation of scientific and technological achievements in universities and industrial parks. We will continue to establish the evaluation standards for key and core technologies in segmented fields and carry out evaluation work in this regard. Focusing on areas such as biomanufacturing, artificial intelligence, inland waterway vessels, and the low-altitude economy, we will explore early-stage projects involving core technologies, and guide financial, social, and industrial capital to continue investing. We will continue to collaborate with securities exchanges to promote the incubation of listed enterprises. We will make efforts to ensure smooth channels for capital exit and promote a further positive cycle of "technology-industry-finance," in a bid to advance the construction of a modern industrial system.

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

People's Posts and Telecommunications News:

Information and communication services touch every household and are closely related to people's daily lives. Could you please elaborate on the measures the MIIT took to better provide information and communication services for the public in 2023? What work will be carried out in the next step? Thank you.

Zhao Zhiguo:

Thank you for your question. The MIIT has taken practical measures to upgrade information and communication services, continuously empowering economic and social development and improving people's well-being.

Since last year, we have expanded internet coverage in more areas and in a better way, with 5G and gigabit optical networks continuously improved. We have realized "gigabit connectivity in all cities, 5G connectivity in all counties, and broadband connectivity in all villages." We initiated the implementation of a special action to upgrade internet services and improve the quality of mobile networks. We accelerated broadband development in border areas, helping to enrich locals and ensure stability there. Our services have also improved significantly. We upgraded telecommunications services, with over 80% of such services processed online and over 20 million users receiving video customer services. We issued and implemented the "Work Plan for Promoting the High-Quality Development of Digital Technology for Older Adults." Digital technology has been better applied for the convenience of older adults, with 2,577 websites and apps completing updates and barrier-free transformations to become more accessible to them. The "one-click call to human customer service" feature has served over 300 million older users. Communication guarantees have become more robust. We guaranteed communication services for major events such as the Chengdu Universiade and the Hangzhou Asian Games, as well as emergencies including the response to the flood disaster in the Beijing-Tianjin-Hebei region, and the Jishishan earthquake in Gansu. We have built a solid "lifeline, security line, and command line" for communication during major events and emergencies. We have addressed problems in a substantial way and achieved solid results. With a focus on strengthening the full-process and whole-chain governance of apps, we saw an increase of 20% in the pass rate of qualified apps on app stores. We have carried out in-depth governance of unsolicited electronic information, shutting down 4,212 illegal SMS port numbers, and the "call blocking" anti-harassment service has reached 620 million users. We continue to advance the prevention and control of telecom network fraud, intercepting nearly 5 billion calls and messages involving fraud and verifying and handling over 200 million high-risk internet accounts related to fraud.

Building a comprehensive information and communication service system that benefits the public is an unwavering pursuit of the entire industry and an important livelihood project. In the next step, our work will focus on the following aspects.

First, we must pay equal attention to supply and better experiences and deliver more digital benefits for the people. We need to optimize and upgrade new information infrastructures and applications, enhance universal telecommunications services, and strengthen network operation security and emergency communication support. We will accelerate the in-depth integration of digital technology with residents' consumption scenarios, and cultivate and promote new digital consumption formats and applications such as smart home services, digital health, and smart life, enriching people's digital lives. We will carry out the 2.0 upgrade of digital technology for the convenience of senior citizens, launch a group of new functions for the elderly and persons with disabilities, and promote the sharing of digital technology for senior citizens.

Second, we must adhere to equal emphasis on regulation and guidance to promote the healthy development of the industry. We will carry out in-depth campaigns to improve mobile internet application services, promote close collaboration between upstream and downstream industries such as development and operation, application distribution, and smart terminals, and create a healthy and orderly industry ecosystem. We will formulate compliance guidelines for telecommunications and internet services, release a series of standards and specifications such as personal information protection, and guide enterprises to protect user rights and interests throughout the entire production and operation process and each link. We will organize the selection of outstanding cases that are well received by users, carry out key internet service quality assessments, set fine examples, stimulate positive energy in the industry, and better meet the needs of users in all aspects.

Third, we need to insist on equal emphasis on good and joint governance to improve the effectiveness of comprehensive governance. We will accelerate the construction of public service platforms for mobile internet applications and actively use innovative technologies such as big data, artificial intelligence, and large language models to boost agile, precise, and efficient supervision. We will carry out in-depth rectification of unsolicited electronic messages and continuously improve the blocking of unwanted calls and provision of anti-harassment services for the protection of users' peaceful lives. We will strengthen the prevention and control of telecom and cyber fraud, enhance basic management such as the real-name registration, continue to deepen the anti-fraud technology system, and effectively safeguard the safety of people's property. We will intensify collaboration with relevant departments, social sectors, and relevant industry parties to build and improve a co-governance pattern of government regulation, corporate self-discipline, and public supervision. Thank you.

CMG Voice of China：

We have noticed that small and medium-sized enterprises (SMEs) are an important pillar for the resilience of China's economic development and are related to the overall economic and social development framework. What work has been done to optimize services for enterprises? What are the next specific measures?

Tao Qing:

Thank you for your questions. The high-quality development of SMEs is inseparable from high-quality and efficient services. In 2023, the MIIT insisted on paying equal attention to management and services, as well as assistance and development, and strived to improve the service system. In November, the MIIT issued the Guiding Opinions on Improving the Public Service System for Small and Medium-Sized Enterprises to further promote the incremental expansion, quality, and efficiency of public services for SMEs. We organized and carried out theme activities such as "Together Benefiting Enterprises," and "SMEs Service Month." Throughout the year, service agencies served a total of 12.47 million SMEs.

First, we served the innovative development of enterprises. We organized more than 3,000 "National Tours of Digital Empowerment, Scientific and Technological Achievements Intellectualization, and Quality Standards Brand Assignment to Small and Medium-sized Enterprises" activities, served more than 1.4 million enterprises, and promoted the transformation of technological achievements worth 29.06 billion yuan. The first solicitation and selection activity of "Famous Teachers and Excellent Courses" was launched to provide policies, technology, and management to SMEs.

Second, we served enterprises to expand their markets. We organized more than 700 integration activities titled "100 events and 10,000 enterprises" for small, medium, and large enterprises, reaching 12,000 intended deals. We cooperated with the State-owned Assets Supervision and Administration Commission of the State Council to carry out a common chain action for the integration and development of the industrial chain of state-owned enterprises (SOEs). The work of "releasing lists" by large enterprises for SMEs to select and undertake key projects has been carried out. In total, 409 technological innovation needs have been released, and more than 1,200 SMEs have jointly undertaken and tackled key problems, actively promoting the integration of innovative SMEs that use special and sophisticated technologies to produce novel and unique products into the industrial chain and supply chain of SOEs.

Third, we served corporate financing promotion. The MIIT organized and carried out the "one chain, one policy, and one batch" financing promotion activities for SMEs, cooperated with the National Financial Regulatory Administration to carry out the "Helping Thousands of Enterprises to Improve Confidence and Services" activity, and cooperated with the China Securities Regulatory Commission to promote the construction of 17 regional equity market boards, serving innovative enterprises that use special and sophisticated technologies to produce novel and unique products. The China SME Development Fund has established a total of 36 sub-funds. Innovative SMEs using special and sophisticated technologies to produce novel and unique products which were listed in 2023 account for 70% of newly listed A-share enterprises, becoming the main force among these listings.

Fourth, we served enterprises' external exchanges. The 18th China International Small and Medium Enterprises Fair and the APEC Small and Medium Enterprises Technology Conference and Fair were held, with more than 3,700 exhibitors attending and the intended deals exceeding 16 billion yuan. More than 100 cross-border exchange activities were held around the world, with over 10,000 SMEs from home and abroad participating.

Overall, the economic performance of SMEs picked up and improved in 2023. The value of industrial SMEs above designated size increased by 4.7% year on year, and the electricity consumption of small and micro-enterprises increased by 4.5% year on year. At the same time, we have also seen that due to the complicated and challenging external environment, some companies do face many problems, such as insufficient orders and high costs.

Tao Qing:

Going forward, the MIIT will work with various departments and localities in accordance with the decisions and plans of the CPC Central Committee and the State Council to create a good environment, further increase support, continue to improve the public service system for SMEs, and promote the high-quality development of SMEs.

First, we need to establish and strengthen public service agencies for SMEs. We will improve the service quality and efficiency of public service agencies at the provincial level and above, expand the coverage of city and county-level public service systems, extend the range of services, and improve service convenience.

Second, we need to accelerate the construction of "one network" services for SMEs across the country to provide enterprises with "one-stop" services. The China Small and Medium Enterprises Service Network was launched for trial operation on Jan. 1 this year. Everyone is welcome to provide their valuable feedback. We will continue to expand service functions and make our services broader, stronger, and more meticulous.

Thank you.

Xing Huina:

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

Translated and edited by Guo Yiming, Wang Qian, Liu Sitong, Wang Yanfang, Wang Ziteng, Zhang Rui, Qin Qi, Yuan Fang, Ma Yujia, Huang Shan, Xiang Bin, Wang Wei, Yan Bin, 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.

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:

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

Date:

Jan. 18, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited 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; and Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC, to brief you on the macroeconomic situation and policies, and to take your questions.

Now, let's give the floor to Mr. Liu for his introduction.

Liu Sushe:

Thank you, Ms. Xing. Friends from the media, good afternoon. I'm very pleased to attend this press conference together with two of my colleagues. 

Yesterday, the National Bureau of Statistics released the key indicators and data reflecting the national economic performance of 2023. Looking back at last year, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the Chinese economy withstood external pressure and surmounted internal difficulties, securing steady development and expansion amid challenges. Against the backdrop of global turbulence and change and lackluster economic growth, China's economy has shown steady progress and sustained momentum of growth. First, the national economy witnessed the momentum of recovery. The gross domestic product (GDP) exceeded 126 trillion yuan ($17.52 trillion) in 2023, an increase of 5.2% over the previous year. Employment and prices were generally stable. Foreign exchange reserves surpassed 3.2 trillion yuan by the end of 2023. The major expected targets for economic and social development in 2023 were well achieved. Second, the economic structure was further adjusted and improved. The leading role of internal circulation was markedly enhanced. Domestic demand contributed 111.4% to the nation's economic growth in 2023, of which final consumption contributed 82.5%, propelling economic growth by 4.3 percentage points. Substantial innovations continued to emerge, and the transformation from old to new growth drivers accelerated. The value added of equipment manufacturing increased 6.8% year on year. The investments in high-tech manufacturing and high-tech services grew 9.9% and 11.4%, respectively. Thirdly, steady progress was made in pursuing high-quality development. The number of granted invention patents reached 921,000. The construction of a unified national market was accelerated, and the business environment was further optimized. Newly created jobs were expected to exceed 12 million in urban areas in 2023, and resident incomes continued to increase. The total grain output reached 695 million metric tons in 2023, setting another record high and remaining above 650 million metric tons for nine consecutive years. Energy supply remained stable, and the foundation for secure development was further consolidated. 

The Central Economic Work Conference identified the overall requirements, policy orientation, and key tasks for this year's economic work. The NDRC will earnestly take onboard the decisions and arrangements made by the CPC Central Committee and the State Council, as well as their requirements for the development and reform work, and ensure faithful implementation. We will follow the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. Additionally, we will intensify macro regulation, make constant efforts to effectively upgrade the quality and appropriately expand the quantity of the national economy, and make new contributions to building China into a great modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts by pursuing Chinese modernization.

The NDRC's major tasks include economic analysis, policy study, making medium- and long-term as well as annual plans, investment management, project construction, reform and innovation, comprehensive coordination, and overall balance. In line with these functions, the NDRC will place greater emphasis on expanding effective demand and leveraging reform and innovation to enhance development vitality and momentum. It will also focus more on developing and expanding the real economy, enhancing people's well-being, and improving the effectiveness of macroeconomic policies. The NDRC will particularly commit itself to the work in the following seven areas.

First, the NDRC will encourage scientific and technological innovations to lead the development of a modern industrial system. Efforts will be made to advance greater self-reliance and strength in science and technology, vigorously promote new industrialization, and strengthen innovation capacity. In addition, the shift from old to new growth drivers will be sped up, the transformation and upgrading of traditional industries will be boosted, and greater efforts will be made to develop the digital economy.

Second, the NDRC will focus on expanding domestic demand and promoting the steady recovery and expansion of consumption. The leading role of government investment will be better leveraged. This involves intensifying efforts in and making more effective use of government investment, such as additional issuance of government bonds, investments from the central government budget, and local government special-purpose bonds. Furthermore, private investment will be stimulated, and effective investment will be actively expanded.

Third, the NDRC will comprehensively deepen reform and opening up. We will unswervingly consolidate and develop the public sector and unswervingly encourage, support, and guide the development of the non-public sector. Efforts will be made to continuously promote reform of key links, accelerate the development of a unified national market, as well as build and refine a high-standard socialist market economy. What's more, endeavors will be made to expand high-standard opening up and promote high-quality development of Belt and Road cooperation. We will make efforts to advance stable and well-structured foreign trade, attract and utilize more foreign investment, and improve the quality and level of outbound investment. 

Fourth, the NDRC will promote the integration of urban and rural areas and coordinate regional development. Rural revitalization will be advanced on all fronts, and achievements in poverty alleviation will be consolidated and expanded. Steady progress will be made in people-oriented new urbanization, and major regional strategies and coordinated regional development strategies will be implemented thoroughly.

Fifth, the NDRC will further promote ecological conservation and green and low-carbon development. We will enhance ecological conservation as well as pollution prevention and control, speed up energy-saving renovations, and expand renewable energy consumption. Also, we will transition from assessing the total amount and intensity of energy consumption to assessing the total amount and intensity of carbon emissions.

Sixth, the NDRC will work to both pursue development and safeguard security, step up efforts to guarantee security for food, energy resources, industrial chains, and supply chains, and continue to effectively prevent and diffuse risks in key areas.

Seventh, the NDRC will take practical measures to ensure and improve people's well-being, implement an employment-first strategy, improve public services and social security, work to ensure market supply and stable prices, and continue to seek growth while improving people's well-being.

That's all for my briefing. My two colleagues and I are ready to take questions. Thank you!

Xing Huina:

Thank you, Mr. Liu, for the introduction. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

CCTV:

The mid-term assessment report on the implementation of the 14th Five-Year Plan mentioned that, as we are halfway through the 14th Five-Year period, more than half of the tasks have been accomplished. How do you interpret this? What further measures will be taken to accomplish the objectives and tasks, especially concerning innovation-driven development, as well as self-reliance and strength in science and technology? Thank you.

Liu Sushe:

Thank you! The 14th Five-Year Plan is the first Five-Year Plan since we finished building a moderately prosperous society in all respects, achieved the first centenary goal, and embarked on a new journey toward the second centenary goal of fully building a modern socialist country. In line with the decisions and plans of the CPC Central Committee and the State Council, the NDRC, in collaboration with relevant parties, conducted a mid-term assessment of the implementation of the Outline for the 14th Five-Year Plan (2021-2025). In December 2023, the Seventh Session of the 14th NPC Standing Committee reviewed the mid-term assessment report on the implementation of the Outline for the 14th Five-Year Plan for Economic and Social Development and the Long-Range Objectives through the Year 2035.

In terms of major objectives and indicators, during the first half of the 14th Five-Year Period, major economic indicators have remained within an appropriate range. Notable progress has been made in innovation-driven development; the people's well-being has increasingly improved; remarkable progress has been achieved in green development; and the capacity for safeguarding security has been significantly enhanced. Sixteen out of 20 major indicators either have basically met or exceeded expectations.

Regarding major strategic tasks, major strategic tasks in 17 aspects have proceeded smoothly. Significant progress has been made in building our self-reliance and strength in science and technology; the development of the modern industrial system has accelerated; rural revitalization has gotten off to a good start; solid gains have been made in advancing coordinated regional development; the development of ecological civilization has gained greater momentum; and the capacity for safeguarding national economic security has been continuously enhanced.

In terms of major projects and programs, the NDRC, in collaboration with relevant departments, has adhered to the principles that projects should align with plans and that investment funds and other production factors should be allocated accordingly. Efforts have been strengthened in dispatch and monitoring, and the support of production factors has been increased. Of the 102 major projects and programs currently underway, 96 have progressed as expected, and six have basically met expectations, strongly supporting the implementation of tasks in relevant fields.

Taking all these factors into account, the implementation of the Outline for the 14th Five-Year Plan has generally achieved the milestone that "as half of the 14th Five-Year period has passed, half of the tasks have been accomplished." This has been achieved despite difficulties, including the severe impact of the COVID-19 pandemic, accelerated changes in the international landscape, and various risks and challenges. This achievement was not easily attained, and it is important to fully recognize its value.

With regard to the innovation-driven development you just mentioned, allow me to provide a brief introduction. Notable progress has been made since the launch of the 14th Five-Year Plan. The number of new types of R&D institutions has surpassed 2,400. China has maintained its second position in terms of the number of most cited papers. Enterprises' spending on R&D has accounted for over 70% of total R&D spending. Moving forward, we will ensure that innovation remains at the heart of China's modernization drive and will take solid steps to work on four key aspects. First, we will leverage the new system's advantages for mobilizing nationwide resources and making breakthroughs in core technologies in key fields. Second, we will make basic research more forward-looking, strategic, and systematic and increase funding support. Third, we will promote the application of scientific and technological advances and reinforce the principal role of enterprises in innovation. Fourth, we will improve the training mechanism, employ researchers, and develop policies to attract innovators with international competitiveness.

Next, the NDRC will resolutely implement the decisions and plans of the CPC Central Committee and the State Council. We are firmly committed to grasping the essence of Chinese modernization and its essential requirements, advancing high-quality development, pursuing both development and security, and placing a higher priority on ensuring stable growth. The NDRC will endeavor to unleash the potential of domestic demand, enhance innovation capacity, foster new growth drivers, and work hard to deepen reforms and open up further. We aim to stablize public expectations and enhance people's confidence in development. The NDRC will tirelessly work on implementing all the objectives and tasks of the Outline of the 14th Five-Year Plan (2021-2025) to provide strong support for setting the stage for building a modern socialist country in all respects. Thank you.

Zhonghongwang:

Regarding the overall performance of the Chinese economy this year, how should we understand the value of a 5.2% growth rate? What will be the performance of the Chinese economy in 2024? Meanwhile, what opportunities and challenges will we encounter this year, and how should we address them? Thank you.

Liu Sushe:

Thank you, I'll take this question. Yesterday, the National Bureau of Statistics released data on major economic indicators for 2023. It is fair to say that we had a tough year in 2023. The Chinese economy has withstood internal pressures and overcome domestic difficulties. It has generally been on an upward trajectory, achieving main projected targets and making steady progress in pursuing high-quality development. This demonstrates three features: "stability, progress, and an upward trend," as I introduced in my opening remarks. Compared with other major global economies and with our own past performance, China has achieved hard-won economic success in 2023. It's truly remarkable that such achievements were made, given the increasingly adverse impact of changes and chaos in the external environment, the intertwining of domestic structural and cyclical problems, and the ongoing efforts to prevent and defuse risks in key areas. 

Looking forward, China's economic development faces both challenges and opportunities in 2024. In terms of challenges, the external environment is becoming more complex, strict, and uncertain. Meanwhile, domestic demand remains insufficient, some industries face excess capacity, social expectations are relatively weak, risks and hidden troubles still exist, and domestic economic flow is not smooth. In terms of opportunities, the ongoing sci-tech revolution and industrial transformation are reshaping the global economic landscape. The country's high-standard socialist market economy continues to improve. Socialism with Chinese characteristics is demonstrating its advantages, including an increasingly solid material foundation, a further advanced industrial system, and ample policy space. Overall, favorable conditions outweigh adverse ones, as there are plenty of supporting factors to boost the Chinese economy toward stable and sound development.

Let me elaborate on that more specifically. First, the Chinese domestic market contains huge potential. To promote high-quality economic development, China has heavily invested in sci-tech innovation capacity, future industries, green transformation, and the shift from old to new growth drivers. Today's investment generates tomorrow's competitiveness. Second, continuous reform and opening-up, as well as innovation, enhance internal momentum. As reform and opening-up deepens, China is advancing both its digital industry and the digital transformation of traditional industries, accelerating the application and transformation of future technologies such as artificial intelligence and quantum technology. With increasingly enlarged development space, continuously expanding application scenarios, and an improving business environment, business entities of all types will surely become more proactive, initiative-driven, and innovative. Third, the international market is poised to unleash more opportunities. With increasing global demand for green and low-carbon products, China's exports of "the new three," namely, electric manned vehicles, lithium-ion batteries, and photovoltaic products, are growing rapidly. "The new three," among numerous Chinese products, are high-quality, high-efficiency, and cost-effective, forming new driving forces for economic growth and meeting the global market's needs.

Overall, the basic trajectory of China's economic recovery and growth over the long run remains unchanged. An open China will continue to bring more opportunities for cooperation to the world. We have full confidence in the bright future of the Chinese economy. Thank you.

ThePaper.cn:

In 2023, China's exports of "the new three," namely, electric manned vehicles, lithium-ion batteries, and photovoltaic products, maintained rapid growth. Could you give us an introduction to the current development of new energy vehicles (NEVs)? What measures will be taken to promote high-quality development in this area? Thank you.

Jin Xiandong:

Thank you for your questions. Last year, due to market demand, macro policy, and the joint efforts of the entire industry, China's NEV sector maintained a sound growth momentum, embodying the following three characteristics. First, the scale of production and sales hit a record high. In 2023, China's production and sales of NEVs exceeded 9.58 million and 9.49 million units, surging 35.8% and 37.9% year on year, respectively, and accounted for more than 60% of the world's total, seizing the top position for nine consecutive years. The exports of NEVs soared 77.6% to more than 1.2 million units in the past year, which also hit a record high. Second, the NEVs' market share grew steadily. Last year, NEVs accounted for 31.6% of the total auto sales, up 6 percentage points compared to 2022. By the end of 2023, there were 20.41 million NEVs in use, accounting for 6.1% of the country's total vehicle ownership, an increase of 2 percentage points year on year. Third, supporting facilities continued to improve. At the end of last year, China had built 8.59 million charging facilities, ranking first in the world. A positive cycle is being established nationwide where NEVs and their charging infrastructure mutually support each other's advancement.

Next, the NDRC will fully implement the deployment made by the Central Economic Work Conference on big-ticket item consumption, including NEVs. We will work with relevant departments to improve policies, actively expand NEV consumption, and advance high-quality industrial development. First, we will accelerate the optimization of policies and measures to boost NEV consumption, deepen NEV development in rural areas, and promote the electrification of vehicles in public transportation to keep the NEV market sound and stable. Second, we will boost sci-tech innovation in the NEV sector, strengthen the leading role of auto enterprises in innovation, and upgrade electrification and intelligent technologies to increase the competitiveness of the whole industry. Third, we will accelerate the building of a high-quality charging infrastructure system, especially in key regions, complete a well-structured charging network, and optimize its operation and services to vigorously support the development of the NEV industry. Thank you.

Hong Kong Bauhinia Magazine:

As a robust pillar to underpin continuously sound economic growth, the private economy is an indispensable foundation for high-quality development. What measures will the NDRC take in the new year to better motivate its growth? Thank you.

Yuan Da:

Thank you for your question. Supporting the development of the private economy has been the consistent policy of the CPC Central Committee. The NDRC earnestly implements the decisions and arrangements of the CPC Central Committee and the State Council, continuously promoting the development and growth of the private economy. On the first working day of this year, which was Jan. 2, the NDRC held a conference in the city of Jinjiang, Fujian province, to promote the high-quality development of the private economy by showcasing the "Jinjiang Experience" in innovation and development. During the conference, the national financing credit service platform was launched, and a platform for promoting projects to private capital nationwide was presented. Relevant departments and regions also put forward specific measures to promote the development of the private economy, encouraging and supporting private enterprises to have firm confidence and make progress. The NDRC continues to strengthen communication and exchange mechanisms with private enterprises. On Jan. 9, Mr. Zheng presided over another symposium with private entrepreneurs, carefully listening to their suggestions and demands, and continuously working to address the practical difficulties raised by private enterprises. Next, the NDRC, together with relevant parties, will take more pragmatic measures, continuously improve the development environment for the private economy, effectively address the development difficulties of private enterprises, boost their confidence, and make sure that they feel the benefits. The focus will be on four key areas.

First, we will continuously strengthen the institutional and legal safeguards for the development of the private economy. We will accelerate the legislative process of the Promotion of the Private Economy Law, establish an institutional guarantee system to promote the development of the private economy, and ensure equal treatment of state-owned and private enterprises in terms of institutions and laws. This includes promoting the equal use of production factors, fair participation in market competition and equal legal protection for all types of ownership. We will fully leverage the role of the rule of law in establishing a solid foundation, stabilizing expectations and ensuring long-term benefits.

Second, we will rigorously implement and execute various policies to promote the development of the private economy. We will improve the information dissemination mechanism for private enterprises, increase project promotion efforts, and encourage and attract more private capital to participate in major national projects and projects aimed at addressing shortcomings. We will support private enterprises in carrying out core technology research in key fields, and collaborate with relevant parties to cultivate leading private technology enterprises in key industries, small and medium-sized enterprises (SMEs) that use special and sophisticated technologies to produce novel and unique products, and characteristic industrial clusters with strong innovation capabilities among SMEs. We will support private enterprises in participating in major strategies such as rural revitalization, regional coordinated development, and new urbanization, as well as deeply engaging in high-quality joint construction of the Belt and Road Initiative (BRI). We will strengthen the consistency evaluation of policies related to the development of the private economy.

Third, we will continue to ensure smooth channels for private enterprises to voice their concerns and provide solutions to their problems. We will continuously improve the system of monitoring indicators for the private economy and strengthen comprehensive analysis of the development situation of the private economy. We will improve the multi-level mechanism for regular communication and exchange with private enterprises, facilitating smooth communication channels between the government and enterprises. We will continue to promptly identify issues that hinder the development of the private economy, both on an individual case basis and in a broader context, and strive to solve one specific category of problems, benefit a number of enterprises and support an entire industry when addressing issues on an individual case basis. We are genuinely committed to addressing the concerns and difficulties faced by private enterprises and entrepreneurs.

Fourth, we will actively create a favorable atmosphere for promoting the development of the private economy. We will strengthen coordination and collaboration among various parties, and consolidate policy and operational forces that drive the high-quality development of the private economy. We will summarize and promote good experiences and practices from different regions in promoting the development of the private economy. We will study and formulate policy measures that can be replicated and scaled, facilitating mutual learning and mutual reference among different regions. We will showcase a group of exemplary private entrepreneurs who are bold, innovative and actively engaged in reforms. We will nurture and promote an entrepreneurial spirit, continuously fostering an environment that creates a correct understanding, full respect and active concern for the development of private enterprises. Thank you.

Market News International:

In 2023, low food price inflation contributed to China's overall low level of CPI. For this year, what is the outlook for food price inflation? And what policies will the NDRC pursue to influence food prices? Thank you. 

Jin Xiandong:

Thank you for your questions. In 2023, overall price levels in China remained stable, with an increase of 0.2% in the consumer price index (CPI) for the whole year, which was narrower than the previous year. Looking at the main reasons, in 2022, certain non-economic and non-conventional factors led to a significant increase in international market prices for energy and food. However, in 2023, these prices experienced a noticeable decline, resulting in an overall decrease. In terms of specific categories, firstly, within China's CPI, energy prices, influenced by import factors, changed from an 11.2% increase in 2022 to a 2.6% decrease in 2023. The 2.6% decline in energy prices last year directly contributed to an overall 0.2 percentage point decrease in CPI for the entire year. Secondly, food prices were influenced by import factors, seasonal factors and cyclical factors. They changed from a 2.8% increase in 2022 to a 0.3% decrease in 2023. The 0.3% decrease in food prices last year directly contributed to an overall 0.06 percentage point decrease in CPI for the entire year.

From the perspective of food price changes you mentioned, when examining specific subcategories, we can see that grain and edible oil prices remained relatively stable with a slight increase. Fresh fruit prices increased by 4.9% compared to the previous year. However, pork prices experienced a cyclical decline, with a year-on-year decrease of 13.6%. Fresh vegetable prices also saw a year-on-year decrease of 2.6%. Taking all factors into account, China's agricultural product market has sufficient supply, smooth logistics, well-regulated market order and stable price operations.

Next, together with relevant departments, we will monitor market supply and demand, as well as changes in price trends. We will ensure all links are well managed. This includes overseeing production and supply, coordinating between production and sales, handling imports and exports, and adjusting storage throughput for essential commodities like food. We aim to guarantee ample market supply and stable prices. We anticipate that, with the gradual reduction of base and cyclical effects, the steady recovery of market demand, and the continuous effectiveness of policies benefiting farmers, there is a foundation for the stable operation of food prices. Thank you.

Xinhua News Agency: 

According to the Central Economic Work Conference, the consistency of macroeconomic policy orientation should be enhanced. As the department responsible for macroeconomic regulation and comprehensive economic work, what plans does the NDRC have for the year 2024 in this regard? How will it ensure that policies in various fields converge and form a concerted effort? Thank you.

Yuan Da: 

Thank you for your questions. Assessing the consistency of macroeconomic policy orientation is a significant innovation in macroeconomic regulation and an important means to strengthen policy coordination. I will briefly introduce the relevant work in this aspect.

In accordance with the decisions and arrangements of the Party Central Committee and the State Council, in 2022, the NDRC took the lead in establishing a policy document assessment mechanism. This mechanism involved assessments of the consistency of newly introduced policies with macroeconomic policy orientation. When issuing documents related to macroeconomic stability and market expectation stability, all departments under the State Council must submit them to the NDRC for a consistency assessment. The main elements of this assessment include whether the policy documents align with the guiding principles of the Party Central Committee, whether they might have a contractionary or inhibitory impact on the economy, and whether they might adversely affect societal expectations. The assessment also provides timely opinions to make policies work together more effectively. Since initiating the assessment work, with the support and cooperation of relevant departments, the synergy of various policies has significantly improved, and their consistency with the macroeconomic policy orientation has continually been enhanced. At the same time, it is necessary to recognize that current societal expectations are relatively weak, highlighting the importance of reinforcing policy coordination. The Central Economic Work Conference has called for enhancing the consistency of macroeconomic policy orientation, incorporating non-economic policies into assessments, and strengthening policy coordination to ensure concerted efforts and synergy.

Next, the NDRC will thoroughly act upon the guiding principles of the Central Economic Work Conference and conduct high-quality assessments for consistency with macroeconomic policy orientation. First, the NDRC aims to enhance the assessment mechanism. Building on a review of the work from the past two years, it will strengthen assessment requirements, define the assessment scope, refine the evaluation process, and assess the impact of policies, including non-economic policies, scientifically and accurately to better serve the overarching goal of high-quality development. Second, the NDRC will comprehensively and prudently assess policy effects. It will rigorously examine the impact of various policies on economic aggregates, structure, supply and demand, industries, regions, employment, and expectations. It will prioritize policies conducive to stabilizing expectations, growth, and employment, while cautiously introducing contractionary or inhibitory measures. Comprehensive and precise analyses of the cumulative effects of a set of policies will be made to further enhance policy coordination and work synergy and to effectively prevent the "composition fallacy." Third, the NDRC will strengthen consistency in the policy implementation process. It will guide relevant departments to assess changes in the situation scientifically, seize the timing of policy formulation, strengthen expectation management, solicit opinions and suggestions, set policy transition periods appropriately, and ensure the seamless linking up and orderly progress of various tasks. In addition, it will enhance the analysis and judgment of potential risks during the policy implementation process, prevent problems such as excessive policy steps and one-size-fits-all approaches, and ensure that the ultimate effect of the policies aligns with the decisions and intentions of the Party Central Committee.

At the same time, the NDRC will continue to enhance economic situation analysis, strengthen economic monitoring, forecasting, and early warning, and conduct preparatory research to maintain policy options for different eventualities. It will deploy a comprehensive set of macroeconomic policies, further enhancing the foresight, scientific nature, and effectiveness of macroeconomic regulation, continuously consolidating and enhancing the positive economic recovery trend. Thank you.

Nanfang Daily: 

According to the 14th Five-Year Plan for the Implementation of New Urbanization, key strategies like the coordinated development of the Beijing-Tianjin-Hebei region, the integrated development of the Yangtze River Delta, and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area will be enhanced, and the construction of world-class city clusters will be accelerated. As we know, a first-class business environment is essential for building first-class city clusters. Can you summarize the achievements in improving the business environment in various regions last year? What are the best practices for establishing a first-class business environment across different regions? Thank you.

Liu Sushe:

I'll answer your questions. The business environment is the foundation for the survival and development of enterprises and a crucial reflection of regional competitiveness. In recent years, the NDRC has earnestly implemented the decisions and arrangements of the Party Central Committee and the State Council, continuously deepening reforms in key areas of the business environment. To further promote the establishment of a market-oriented, law-based, and internationalized business environment in key regions, the NDRC has proactively guided these regions to strengthen reforms and innovations in the business environment.

First, the NDRC has enhanced top-level design and made targeted arrangements regarding the characteristics of each region. The NDRC has continuously introduced three-year action plans for business environment improvement in major regions. In 2022, the NDRC released an action plan for the Yangtze River Delta area. Focusing on integrated development, the plan has strengthened systems integration and coordination among various reform measures and further rolled out integration measures in more sectors and fields. So far, a total of 17 reform tasks in five aspects have seen proactive progress. The NDRC also introduced an action plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in 2023. Making the comprehensive alignment with high-standard international market rules as its priority, the plan aims to help the GBA create a unified, efficient, competitive, and orderly market environment, and make the area's government services more standard, convenient, open, and transparent. It also helps to advance the rule of law to facilitate fair, equitable, and sound development, and foster an open market featuring smooth economic circulation and win-win cooperation. The NDRC is currently working on the action plan for the Beijing-Tianjin-Hebei region. We will emphasize coordinated development and support the region to further deepen reform, promote innovation, and build synergy among key sectors in a bid to create a top-notch business environment for the region's efficient, coordinated development.

Second, the NDRC has strengthened innovation efforts at the primary level and encouraged local regions to develop more original measures in this regard. The aim of spearheading three-year action plans in these key regions is to make proactive attempts and develop effective innovation measures that meet the expectations of both enterprises and the public and further contribute to the improvement of the business environment nationwide. For example, the Yangtze River Delta region has deepened the reform measure that allows one company to set up branches after registering just once. The region is attempting to apply this reform measure to frequently-used operating business permits. It has also implemented innovative measures that streamline government inspection procedures via digital code and one-time joint inter-departmental administrative inspection. Another example in this regard is that the GBA is currently improving its new-type credit-based oversight mechanism. The GBA is also working to establish an independent review department on fair competition and exploring related concentrated and professional review mechanisms so as to make pilot efforts for rule alignment among the three localities involved.

Third, the NDRC has advanced institutional development and worked to establish long-term mechanisms applicable to other areas. Strengthening the institutional development of the business environment in key areas is a crucial prerequisite for ensuring the applicability of reform measures. The Yangtze River Delta region, namely Shanghai, Jiangsu, Zhejiang, and Anhui, has established a set of unified institutional arrangements in terms of government procurement, integrated customs working mechanism, and the criteria for law enforcement and judgment involving market supervision. Aligning with high-standard international economic and trade rules, the GBA also steps up stress tests and redoubled efforts to make more breakthroughs in institutional innovation. The three-year action plan for the Beijing-Tianjin-Hebei region will also make arrangements focusing on enhancing coordination mechanisms.

As stressed by General Secretary Xi Jinping, the improvement of the business environment is an ongoing process, and there is always room for things to become better. In accordance with the arrangements made by the CPC Central Committee and the State Council, the NDRC will keep working with related government bodies to continuously improve the business environment in key regions. We will work to provide more convenience and better services for the investment and business activities of all types of business entities and facilitate the implementation of major regional strategies. Thank you.

Red Star News:

Freezing cold is sweeping across the country these days, and we are currently experiencing a peak period for power use in winter. What are the key arrangements made by the NDRC to ensure energy supply? Thank you.

Jin Xiandong:

Thank you for the question. Since the beginning of the heating season, the NDRC has earnestly implemented the decisions and arrangements made by the CPC Central Committee and the State Council and took multiple measures to secure the energy supply and ensure heating services, together with member departments of the inter-departmental coordination mechanism to ensure the supply of coal, electricity, petroleum, natural gas. First, the NDRC has strengthened the supply capacity of coal, electricity, petroleum, and natural gas. The role of coal as a primary part of the energy supply has been leveraged, and the country's coal production has remained stable. Currently, the storage of coal at the country's power plants under unified national dispatch stands above 200 million metric tons, an increase of 30 million metric tons year on year. In the meantime, the capacity of electricity supply has also been enhanced with strengthened inter-provincial and inter-regional power dispatching systems. The NDRC has also seen to it that upstream natural gas suppliers increased production, ensured the application of imported energy resources, and kept the general natural gas and liquefied natural gas (LNG) reserves at a relatively high level before winter. Second, the NDRC has made all-out efforts to deal with natural disasters and other emergencies. In the face of impacts from earthquakes as well as freezing weather, sleet, and snowstorms, the NDRC promptly organized response efforts and ensured that risks and hazards were identified and emergencies were tackled. It also studied and made preparations in advance for the impact of the large-scale cold wave, strengthened resource allocation during the cold wave, and made every effort to improve power and natural gas supply capacity for peak use. In mid- to late-December last year, the country's highest daily power consumption hit a record 1.345 billion kilowatts, and the consumption of natural gas also saw an all-time high for eight consecutive days. Despite all this, the country's overall supply of coal, electricity, petroleum, natural gas, and transport services has remained stable, which effectively ensured a safe and warm winter for the people.

At present, China is in the "third and fourth nine-day period after the winter solstice," the peak time for energy consumption in winter. Thanks to the joint efforts of all parties, China's performance in the energy industry is generally stable. Next, the NDRC will continue to leverage the role of the coordination mechanism, and make every effort to ensure the heating energy supply, and make sure that people have a safe and warm winter and holiday period. First, energy production and supply will be guaranteed. We will adhere to the mechanism of daily dispatching and monitoring of energy in winter, maintain the high-level supply capacity of coal, electricity and natural gas, urge all parties to fulfill medium- and long-term energy contracts, and strengthen mutual complementarity and regional coordination of coal, electricity, oil and gas. Second, we will be well-prepared for low temperatures, rain, snow and disasters. We will closely follow the changing trend of extreme weather, organize major energy enterprises to prepare peak-shaving reserves in advance, strengthen the safe operation of the power grid and disaster maintenance, and make practical and detailed plans for power-load management and natural gas emergency supply. Third, we will ensure the energy supply for people's daily lives. We will urge all localities to fulfill the primary responsibility for ensuring energy use for people's daily lives, focus on weak links in energy supply such as replacing coal with natural gas and electricity in rural areas, and take decisive measures to solve individual and emerging problems. Thank you. 

National Business Daily:

According to the guiding principles of the Central Economic Work Conference, expanding domestic demand will remain a focus in 2024. What measures will the NDRC take to unleash the potential in consumption and investment growth? Thank you.

Yuan Da:

Thank you for your question. Consumption is the final demand; investment is both the current demand and the future supply. The purchase of goods or services can effectively drive increases in incomes and consumption, creating a virtuous economic cycle where demand drives supply, and in turn, supply leads and creates demand. At present and for some time to come, it is necessary to firmly implement the strategy of expanding domestic demand, further unleash consumption potential and expand effective investment so as to consolidate and strengthen the positive momentum of economic recovery. This year, we will focus on the following areas:

On the one hand, we will stimulate potential consumption. We need to make greater efforts to improve people's income expectations, and boost their capacity and willingness to spend. First, we will promote personal income growth through various channels. We will place a higher priority on pro-employment policies, ensure stable employment among key groups, actively expand channels for people to increase their incomes, enlarge the middle-income group, and strengthen measures to increase farmers' incomes. Second, we will make innovations in the supply of goods and services. Digital consumption, green consumption and health consumption will be encouraged. We will also foster new areas of consumption growth including smart home appliances, cultural and entertainment tourism, sports events and "China-chic" products, and promote spending on big-ticket items such as new energy vehicles and electronics. At the same time, we will encourage the replacement of old consumer goods with new ones which feature higher standards for technology, energy consumption and emissions. Third, we will improve the quality of goods and services consumption. We will continue to promote the quality grading of household appliances, children's products, textiles and garments as well as emerging consumer goods, strengthen the formulation of standards in relation to cultural tourism, sports, elderly care, housekeeping and other areas of services consumption, optimize consumption infrastructures in culture, tourism and sports, and improve the soft environment, so that people can consume with great satisfaction and peace of mind.

On the other hand, we will expand effective investment, which involves enlarging the scope for effective investment, continuously optimizing the investment environment, and effectively improving overall investment efficiency. First, we need to maximize government investment's driving and multiplier effects. Government investment should be focused more on infrastructure projects that lay the foundation, benefit the long term, and reinforce the foundation. This year, we will increase support for key core technologies and breakthroughs, new infrastructure, energy conservation, emission reduction, and carbon reduction, and accelerate the cultivation and development of new growth drivers. Second, we need to vigorously stimulate the vitality of private investment. We will enhance investment and financing mechanisms, as well as implement new government and social capital cooperation mechanisms. We will thoroughly review and compile a list of projects suitable for private capital participation and promote these projects through an online review, approval, and supervision platform. We will support social capital participation in areas such as the construction of new infrastructure. We will also address the obstacles, difficulties, and pain points that hinder private investment in terms of market access, factor acquisition, fair law enforcement, and protection of rights and interests. Third, we need to push for reducing investment and financing costs. We will improve the market-based interest rate formation, regulation, and transmission mechanisms to promote a steady and gradual reduction in society's comprehensive financing costs. Additionally, we will guide financial institutions to actively support private investment projects and encourage the development of venture capital and equity investment. We will implement and refine preferential tax and fee policies for small and micro enterprises and effectively reduce logistics costs for society as a whole. Fourth, we must continuously strengthen investment project services and ensure the necessary factors. We will enhance coordination and cooperation among departments and between the central and local governments. We will support key projects by accelerating preliminary work, strengthening guarantees for project funding, land and sea use, and environmental impact assessments, and expediting project approval procedures. We will promote the rapid construction of projects and commence physical work. Thank you.

Xing Huina:

The next question will be the last due to time constraints.

Phoenix TV:

The Central Economic Work Conference proposed "expanding high-level opening up." Could you please share with us the new measures the NDRC has taken to accelerate the construction of a new system for high-level opening-up and to attract and utilize foreign investment more effectively? Thank you.

Liu Sushe:

I will answer this question. In recent years, China has made significant progress in advancing high-level opening up. A series of policies and measures have been implemented to maintain stability in foreign investment, resulting in continuous improvements in the environment for foreign investment. Despite the global downturn in cross-border investment, China maintained a historically high level of actual foreign direct investment (FDI) utilization in the first 11 months of 2023, with the number of newly established foreign-funded enterprises increased by 36.2% year-on-year, and investment attraction in the high-tech manufacturing sector continued to grow. In line with the arrangements of the Central Economic Work Conference, the NDRC, in collaboration with relevant stakeholders, will prioritize institutional openness and focus on areas such as investment, trade, finance, and innovation. Efforts will be made to build a new system for a higher-level open economy, implement policies for liberalizing and facilitating high-level investment and trade, and continue to emphasize both attracting foreign investment and promoting outbound investment.

In terms of attracting foreign investment, we will continue to work on policies and services to promote the high-quality development of utilizing foreign investment. First, we will accelerate the issuance of policies. The national version of the negative list for foreign investment access will be revised, and all restrictions on foreign investment access in the manufacturing sector will be comprehensively lifted. We will accelerate introducing and implementing comprehensive policies to attract and utilize foreign investment. Through a package of practical measures such as increasing support and guarantee policies and aligning with high-standard international economic and trade rules, we will focus on solving the difficulties and bottlenecks faced by foreign-funded enterprises. Second, we will expedite the implementation of projects. In recent years, we have actively engaged special work teams for major foreign investment projects and have successively launched seven batches of such projects. The first six batches consist of 40 projects that have attracted a total investment of $73 billion, with 23 projects fully or partially put into operation. Some of these projects are the largest overseas investment projects or production bases of the relevant foreign-funded enterprises. The seventh batch, comprising 11 projects, has a planned total investment exceeding $15 billion, covering various fields such as biomedicine, automobile manufacturing, new energy batteries, and chemical engineering. Third, we will continuously optimize services. We will coordinate and resolve issues related to national-level land use, sea use, environmental impact assessments, and energy consumption for project implementation. We will also expedite the implementation of major foreign investment projects. Additionally, we will organize a series of international industrial investment cooperation events, establish platforms for investment docking between multinational companies and localities, improve the mechanism for direct contact with foreign-funded enterprises, and promptly address concerns, meet demands, and provide services.

In terms of promoting outbound investment, we will strengthen policy communication and coordination with relevant partner countries. We will deepen cooperation in capacity building for the Belt and Road Initiative, third-party market cooperation, infrastructure connectivity, and cooperation in livelihood projects. We will guide enterprises to continuously create high-quality, landmark projects and "small and beautiful" projects based on market principles and international norms. This approach aims to realize complementary advantages, mutual benefits, and win-win outcomes that will benefit people from all countries and make greater contributions to the development and prosperity of the global economy. Thank you.

Xing Huina:

Today's press conference ends here. Thank you to the three speakers and also to all of our media friends. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Wang Wei, Xu Kailin, Heshan, Lin Liyao, Ma Yujia, Liu Caiyi, Yuan Fang, Mi Xingang, Zhang Rui, Zhu Bochen, Zhang Tingting, Zhang Junmian, 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.

Read in Chinese

Speakers:

Mr. Rao Lixin, deputy commissioner of the State Taxation Administration (STA)

Mr. Huang Yun, spokesperson of the STA and director general of the General Office of the STA

Mr. Shen Xinguo, director general of the Taxpayer Service Department of the STA

Ms. Meng Yuying, director general of the International Taxation Department of the STA

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. 18, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we invited Mr. Rao Lixin, deputy commissioner of the State Taxation Administration (STA), to brief you on harnessing taxation to promote high-quality development, and answer your questions. Also present at today's press conference are Mr. Huang Yun, spokesperson of the STA and director general of the General Office of the STA; Mr. Shen Xinguo, director general of the Taxpayer Service Department of the STA; and Ms. Meng Yuying, director general of the International Taxation Department of the STA.

First, I will give the floor to Mr. Rao Lixin for his introduction.

Rao Lixin:

Thank you, Mr. Xie, and friends from the media. Today marks the Laba Festival according to the Chinese lunar calendar. As the saying goes, "After the Laba Festival, the Chinese New Year is just around the corner." I would like to take this opportunity to extend New Year wishes to you all on behalf of the STA. We sincerely express our gratitude to taxpayers, fee payers and all sectors of society for your concern, understanding and support for the work of the tax departments.

Reflecting on the recently concluded year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China's economy rebounded, with substantial progress made in high-quality development. The national tax system adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully implemented the guiding principles of the 20th CPC National Congress. We conducted an education campaign on the study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and conscientiously implemented the decisions and arrangements of the CPC Central Committee and the State Council. We steadfastly grasped the primary task of contributing to high-quality development, focusing on main responsibilities and core functions. We faithfully performed our duties, effectively leveraging taxation's fundamental, pillar and guaranteeing roles in national governance.

First, we organized tax and fee revenue collection in accordance with the laws and regulations, striving to establish a robust foundation for financial security. We upheld the sacred mission of "gathering wealth for the country and collecting taxes for the people," shouldering the responsibility of being the "main force" in safeguarding the country's financial resources. In 2023, the total tax and fee revenues for the year amounted to 31.7 trillion yuan ($4.41 trillion, after deducting export tax rebates; the amount before deduction was 33.5 trillion yuan), with 15.9 trillion yuan in tax revenue and 8.2 trillion yuan in social security fees.

Second, we implemented and detailed tax and fee preferential policies, striving to promote economic recovery. The tax authorities actively participated in the research and formulation of preferential tax policies, conscientiously fulfilling its main responsibility for implementing these policies. Since the State Council optimized and improved preferential tax policies in July 2023, the national tax system accurately communicated these policies to more than 670 million households (individuals), enhancing tax administration efficiency from "policy outreach" to "policy implementation." In 2023, the country's newly implemented tax refunds, as well as cuts and deferrals of taxes and fees, exceeded 2.2 trillion yuan, effectively stabilizing market expectations, boosting market confidence and stimulating market vitality.

Third, we continued to optimize tax payment measures, striving to enhance the tax business environment. We carried out the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs" for the 10th consecutive year, introducing a series of tax payment service measures for the public's convenience in five batches. Targeted service measures were launched, with a focus on private economic entities such as micro, small and medium-sized enterprises, aiming to continuously enhance the refinement, intelligence and personalization of tax services. Simultaneously, in collaboration with the All-China Federation of Industry and Commerce, we launched the "Spring Rain to Moisten Seedlings" special campaign, organizing the Service Month and Service Season activities for small and medium-sized enterprises. We conducted a total of over 10,000 other activities, soliciting suggestions throughout the tax payment process and tax service experiences.

Fourth, we effectively improved tax supervision capabilities, striving to maintain the order of the market economy. We continued to enhance the new tax supervision system based on a dynamic "credit plus risk" approach, and took action to address problems in high-risk industries. We fully leveraged the regular working mechanism of the eight departments — taxation, public security, courts, procuratorates, People's Bank of China, customs, market supervision and foreign exchange management — to crack down on tax-related crimes. We investigated and dealt with tax-related illegal cases such as tax evasion and fraudulent tax practices, recovering 181 billion yuan in tax losses of various types. We also increased the exposure of typical cases, effectively maintaining a fair and just economic and taxation order.

Fifth, we have accelerated the building of a smart taxation system and improved the efficiency of tax and fee governance. We have thoroughly implemented the Opinions on Further Deepening the Reform of Tax Collection and Administration issued by the General Office of the CPC Central Committee and the General Office of the State Council. New progress has been made in areas of accurate law enforcement, targeted services, precise supervision, and sincere co-governance. A total of 31 measures concerning the reform of tax collection and administration have been deepened and expanded. We have also promoted smart taxation in an integrated way. In particular, an electronic invoice service platform has been established and put into use across the country, fully digitized electronic invoice pilot projects have seen continuous development, and new electronic taxation bureaus have been launched and expanded. These outcomes showed that the digital upgrading and intelligent transformation of tax and fee collection and administration have moved up to a new level.

Sixth, we have deepened international taxation exchanges and cooperation and concentrated on supporting high-level opening up. We have thoroughly implemented General Secretary Xi Jinping's important discourses on opening up, strengthened the construction of multilateral taxation cooperation platforms, and constantly improved the Belt and Road Initiative Tax Administration Cooperation Mechanism. We hosted a high-level international symposium on the digitalization of taxation administration, built and officially launched "TaxExpress," a cross-border taxation service brand, and continued to expand China's taxation treaty network to 114 countries and regions, better contributing to the strategies of "going global" and "bringing in."

Next, tax departments across the nation will rally more closely around the CPC Central Committee with Comrade Xi Jinping at its core, continue to consolidate and expand the gains from theoretical study programs and advance high-quality taxation practices through a Chinese path to modernization, contributing more and greater strength to building China into a great modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts. Thank you.

Xie Yingjun:

Thank you. The floor is now open to questions. Please identify the media outlet you represent before raising your questions.

CCTV:

It was emphasized at the recently held Central Economic Work Conference that we should accelerate efforts to build a unified domestic market. Can you share what tax departments have done and will do next to help in this regard? Thank you.

Rao Lixin:

Thanks for your question and I will answer it. The construction of a unified domestic market is fundamental and essential for the building of the new development paradigm. The tax departments have deeply implemented the Guideline of the CPC Central Committee and the State Council on Accelerating the Establishment of a Unified Domestic Market and taken strong and effective measures to truly perform their duties, actively advancing the building of a unified domestic market.

First, we have strengthened tax and fee policy certainty. Since 2023, in line with the decisions and deployment of the CPC Central Committee and the State Council, the STA has worked together with the Ministry of Finance and other departments to issue documents in a timely manner to clarify 77 preferential tax and fee policies that have been extended, optimized, and improved. This helps further stabilize market expectations. We have also constantly improved the working mechanism for implementing preferential tax and fee policies, actively collected and replied to questions raised by taxpayers and fee payers, and responded to concerns from all respects in a timely manner. In 2023, focusing on the extended, optimized, and improved preferential tax and fee policies, the STA released a total of 115 replies to unify operations across different regions, enhancing the certainty in policy enforcement.

Second, tax law enforcement has been further standardized. We have revised and improved the Operation Specifications for Tax Collection and Administration, setting unified operation standards for taxation administration across the country. We have also dynamically updated the National Taxpayer Service Standard, providing basic taxation services in a unified way. Based on the system of benchmarks for administrative taxation penalty discretion by each province, we have promoted regional taxation authorities to jointly launch unified discretion benchmarks that are applicable to the whole region. The efforts cover regions such as the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the northeastern, southwestern, central-southern and northwestern regions of the country. Law enforcement information is shared and law enforcement results are mutually recognized, laying the foundation for the formulation of the unified national-level discretion benchmarks for administrative taxation penalties. Moreover, we have acted on fair competition review mechanisms and removed policy measures that hindered market unification and fair competition, working to create a fair and just taxation environment.

Third, we have enhanced the convenience of tax services. We have promoted tax-related services on an inter-provincial basis. Based on pilot programs in the Beijing-Tianjin-Hebei, Yangtze River Delta, Chengdu-Chongqing Economic Circle and other regions, we have implemented measures nationwide to facilitate tax services for corporate taxpayers applying for inter-regional (provincial) business relocation since April 2023. We have improved the handling procedures and cut the processing time to make it more convenient for enterprises to operate in different regions (provinces). We have developed an interactive service mechanism for tax administration with features including "precise information push, intelligent interaction, collaboration between inquiring and handling, and whole-process interaction." Channels for tax business handling and tax consulting services have been streamlined to ensure enterprises are able to receive intelligent, efficient, targeted and convenient services in a timely manner. In 2023, we provided taxpayers with interactive services a total of 10.91 million times. We used the internet to deliver video Q&A sessions, where we answered online, face to face taxpayers' questions on policies, procedures and other issues, achieving "one person answers questions for the benefit of many." In 2023, we held 2,324 video Q&A sessions and answered 267,000 questions. These sessions were watched nearly 6 million times.

Next, the tax authorities will thoroughly implement the arrangements and requirements of the CPC Central Committee and the State Council on accelerating the establishment of a unified domestic market, carry out administrative law enforcement in a strict, standardized, impartial and civilized manner, continue to improve the tax collection and administration system, strictly investigate and handle cases involving tax-related issues in investment promotion activities, and help boost the building of a unified national market that is efficient, standardized, open and allows fair competition. Thank you.

Yicai:

Taxation is a barometer of the economy. What highlights in the nation's high-quality economic development can be seen from the 2023 tax data? Thank you. 

Huang Yun:

Thank you for your question. We firmly adhere to the thinking that high-quality development is of paramount importance in the new era. The State Taxation Administration (STA) has utilized tax data to build a statistical indicator system on high-quality development. The relevant analysis shows that in 2023, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the country made new progress in promoting high-quality development. I would like to share with you 10 sets of figures:

First, enterprises continued to increase their investment in innovation, and enjoyed a 13.6% increase year on year in the amount of extra tax deductions for R&D expenses. Corporate income tax prepayment declaration data shows that in the first three quarters of 2023, businesses across the country applied for extra tax deductions for R&D expenses totaling 1.85 trillion yuan. Corporate taxpayers from the manufacturing sector benefited the most, claiming 58.9% of the total. The figure for the full year will be bigger, however it is still being calculated. 

Second, innovative industries grew at a faster pace, and the revenue of high-tech industries increased by 9.8% year on year in 2023. Value-added tax (VAT) invoice data shows that in 2023, the revenue of high-tech industries maintained rapid growth, with its proportion of the total revenue of Chinese enterprises rising by 0.5 percentage point from 2022. This momentum has been picking up, reflecting the remarkable output value of innovation-driven industries in recent years.

Third, innovations and breakthroughs were seen in the high-end manufacturing sector, and equipment manufacturing rose to 44.8% of the aggregate revenue of the manufacturing industry. VAT invoice data shows that in 2023, revenue from equipment manufacturing rose by 6.4% year on year, 2.9 percentage points higher than the average growth rate of manufacturing, and its ratio in overall revenue of manufacturing rose by 1.2 percentage points compared to 2022. Sales related to the "new three" products — electric passenger vehicles, lithium-ion batteries and solar cells — jumped 22.4% year on year.

Fourth, the digital economy's integration with the real economy is speeding up, with 12.1% of total sales revenue of the digital economy coming from its core industries. VAT invoice data shows that in 2023, the digital economy's core industries posted an 8.7% revenue increase, up 2.1 percentage points from 2022, while Chinese enterprises' digital procurement spending jumped by 10.1% year on year, an increase of 3.2 percentage points from 2022. The trends indicate that the integration of the digital and real economies has been spurring digital industrialization and industrial digitization.

Fifth, we have accelerated the building of a national unified market. The inter-provincial trade volume now accounts for 42.7% of the national total. Value-added tax invoice data shows that inter-provincial trade volume, an indicator of trade ties among provinces, grew by 5.9%. It also increased by 0.5 percentage point in its share of the national total trade volume compared to 2022. This represents continuous improvement year on year and a smoother domestic economic cycle.

Sixth, three major areas with impetus for growth have played a more important role in driving economic growth, with their sales revenue accounting for 54.1% of the national total. According to value-added tax invoice data, in 2023, the economies of the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta developed rapidly in general. Their combined sales revenue was up by 5.4% year on year, taking 0.3 percentage point more as a share of China's total revenue than in 2022.

Seventh, we have advanced the green transformation of industries, with the share of energy-intensive manufacturers in the manufacturing sector dropping to 30.7%. Value-added tax invoice data shows that in 2023, industrial enterprises increased their green investment at a faster pace, with a year-on-year increase of 17.7% in the purchase of environmental governance services. Additionally, the proportion of manufacturers with high energy consumption in the manufacturing sector fell by 1.5 percentage points from 2022.

Eighth, reinvestment of profit by foreign-invested enterprises has achieved steady growth, with the amount of reinvestment enjoying tax deferral reaching 141.2 billion yuan. Corporate income tax data shows that in 2023, reinvestment of profits of overseas investors increased by 0.8% year on year. Since the implementation of the preferential policy in 2018, which temporarily exempts profits obtained by overseas investors from withholding income tax, these investors have enjoyed a total of 660.3 billion yuan in reinvestments with deferred tax.

Ninth, efforts to unleash consumption potential have been successful, with both goods and services consumption growing at around 10%. According to value-added tax invoice data, in 2023, sales revenue from the consumption of goods and services increased by 11.4% and 9% year on year, respectively. Specifically, retail sales of clothing and cosmetics grew by 18.3% and 14.5% year on year, respectively. The theme park, accommodation, and restaurant sectors reported robust growth, increasing by 69.5%, 26.3%, and 19.6%, respectively.

Tenth, we have further improved social security benefits, with insurance premium income exceeding 8 trillion yuan. Data from the tax authorities shows that China's insurance premium income totaled 8.2 trillion yuan in 2023, with more than 1.3 billion people receiving payment services. This has significantly helped China build the world's largest social security system with distinct Chinese characteristics. Thank you!

Tide News under Zhejiang Daily:

The business environment concerning tax payments is a significant concern for taxpayers. In 2023, tax authorities launched the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs," rolling out a series of measures to simplify the tax payment process for taxpayers. How were these measures implemented and what are the next steps? Thank you.

Shen Xinguo:

Thank you for your questions. In 2023, the tax authorities conducted the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs" under the theme of "improving and modernizing services to benefit people." We introduced various service measures in a comprehensive effort to increase people's sense of gain and satisfaction. A taxpayer satisfaction survey conducted by a third party revealed that the score rose to 89.24 in 2023.

First, make sure policies deliver solid benefits. The tax authorities have utilized big data to match tax policies with appropriate recipients based on their industries, enterprise types, and individual information. This approach ensures that eligible enterprises receive timely policies tailored to their needs. The authorities have also provided specific information to legal representatives, financial officers, and taxpayers according to their roles and sent timely reminders before, during, and after the business process. Since July 2023, 1.49 billion pieces of information have been delivered to 670 million households and individuals. This strategy has helped achieve accurate policy delivery to the target groups and ensured that eligible enterprises quickly and directly benefit from preferential tax and fee policies.

Second, we have upgraded services and resolved problems. We have improved the system for meeting taxpayers' service expectations and effectively handled problems through coordination across different levels. In 2023, tax departments across the country resolved a total of 814 common demands from taxpayers or withholding agents. By addressing one problem, we achieved the effect of resolving one category of issue and upgraded related services. We have focused on the demands of enterprises facing unstable operations in their industrial and supply chains. On the premise of respecting these enterprises' wishes, we have utilized tax-related big data and provided platforms and opportunities, helping them to purchase and sell products worth 21.3 billion yuan last year. We have made great efforts to address the difficulties faced by small and micro enterprises in accessing financing, deepening and expanding the interaction between tax departments and the banking sector, and further lowering the thresholds for the participation of small- and medium-sized banks. We ensured small and micro enterprises received 8.928 million loans, totaling 2.84 trillion yuan, from banks in 2023.

Third, we have promoted smart tax services and improved the experience for all concerned. We have fully utilized IT-based approaches to upgrade tax services and ensure they are smarter. The e-taxation platform continues to innovate by advancing the "smart opening of new businesses" and promoting the electronic tax payment services on a cross-provincial basis. In 2023, 710,000 electronic interprovincial tax payments involving 84.4 billion yuan were completed, which greatly facilitates enterprises' production and operation. We have advanced non-resident cross-border online tax services. A total of 172 non-resident enterprises from more than 20 countries and regions accessed online tax services, such as convenient data collection, declaration, and payment. Taxpayers have experienced upgraded cross-border tax services.

Fourth, we have focused on clear priorities for bettering lives. Targeted measures have been rolled out to upgrade tax services in areas crucial to people's lives, such as the payment of social insurance premiums and the settlement of individual income tax. We encourage the online operation and payment of social insurance premiums. The online payment of social insurance premiums by enterprises and individuals exceeded 95% of the total. Over 3,800 tax service centers and government service centers nationwide offer one-stop services. The preferential tax rebate policy has been applied to the individual income tax settlement for comprehensive income. This ensures that taxpayers, especially those who have older adults or young dependents or are facing high medical expenses, can quickly receive the dividends of tax refunds. This policy has benefited 33.845 million people.

In 2024, taxation authorities will fully implement the guidelines issued by the State Council on further enhancing the quality and efficiency of government services, adapting to new situations, and meeting the new demands and expectations of the people. We will introduce more pragmatic, effective, and targeted services and measures based on the system for meeting public expectations related to tax services. We will intensify our efforts to improve convenience for the public. Thank you.

Phoenix TV:

We understand that the Central Economic Work Conference has attached high importance to support for scientific and technological innovation. In the field of taxation, the additional tax deduction for R&D expenses plays an important role in supporting innovation. Please introduce the related policy, its implementation, and its effects. Thank you.

Huang Yun:

Thank you for your question. In 2023, China continuously upgraded its preferential tax policy and encouraged enterprises to increase their R&D investment. The full and targeted implementation of the policy delivers real benefits to enterprises through tax and fee cuts, which effectively boosts their confidence in R&D investment and injects more momentum into their innovative development. This is mainly reflected in the following three aspects:

First, the policy has been pursued with intensified efforts to increase support. In March 2023, the additional tax deduction for R&D expenses for eligible enterprises was raised from 75% to 100%, which has been implemented as a long-term institutional arrangement. Building on that, we have focused on the high-quality development of the integrated circuit and machine tool industries, where the additional tax deduction for R&D expenses has been increased to 120%. In accordance with the deployments of the State Council, the State Taxation Administration, in coordination with the Ministry of Finance, added another opportunity for enterprises to access the additional tax deduction for R&D expenses in July when they declare tax prepayment. This is in addition to the existing two periods: declaring tax prepayment in October as well as making the final settlement. This guides enterprises to receive policy dividends earlier and more promptly.

Second, policy implementation has been more targeted. The tax departments have compiled the Implementation Guidelines for the Policy of Additional Deduction of Research and Development Expenses (Version 2.0), released two batches of 20 Q&As to explain policies and strengthened training and guidance in innovative ways to facilitate taxpayer benefits from the policies. At the same time, we used taxation big data to send policy notifications in a targeted way at different times and with different emphases, took multiple measures to achieve a targeted approach in connecting policies with individuals, and helped innovative enterprises promptly benefit from the policies.

Third, the policies have gradually taken effect. Currently, the annual enterprise income tax settlement for 2023 is being carried out in an orderly manner. Based on the enterprise income tax prepayment declaration for 2023, the total amount of additional deduction for R&D expenses of enterprises reached 1.85 trillion yuan, a year-on-year increase of 13.6%. Among it, manufacturing enterprises accounted for nearly 60%, with a total amount of 1.1 trillion yuan of additional deduction. Big data in tax administration also shows that enterprises benefiting from the preferential policy of additional deduction for R&D expenses have a profit margin of 7.4%, higher than the average level of all enterprises.

Next, the tax departments will follow the arrangements and requirements of the Central Economic Work Conference and conscientiously implement preferential tax policies to support scientific and technological innovation. Efforts will be made to continuously improve the level of facilitation of policies and better support high-level self-reliance and greater strength in science and technology, as well as innovation and development of enterprises. Thanks.

zhonghongwang.com:

We have noticed that the tax departments have launched the TaxExpress brand for cross-border tax services. TaxExpress has received wide attention from both Chinese companies going abroad and foreign companies in China. Could you brief us on the latest progress? Thanks.

Meng Yuying:

Thank you for your question. 2023 marked the 10th anniversary of the Belt and Road Initiative. The tax departments took this opportunity to integrate and innovate, launching the TaxExpress brand for cross-border tax services. It aims to provide taxpayers with more professional, standardized, and internationalized tax services.

First, we have established distinctive brands, and the service matrix has begun to take shape. Since the release of the TaxExpress, all provincial-level tax bureaus in the country have created their own TaxExpress sub-brands based on regional characteristics, and have conducted a series of policy promotion activities and cross-departmental collaborative services. For example, in Zhejiang, the sub-brand TaxExpress-In Zhejiang has optimized the Belt and Road tax service projects and held policy promotion activities specifically targeting the RCEP for ASEAN. In Shandong, the sub-brand TaxExpress-Tax Home has cooperated with the provincial overseas Chinese federation, commerce department, and the Foreign Affairs Office to release the Proposal for Cross-border Tax Service Alliance and introduced six service measures, including the establishment of innovative practice bases.

Second, we have set up expert teams to address difficulties and problems. The STA and provincial tax bureaus have set up cross-departmental expert teams to collect complex issues through field research and discussions with enterprises. And they actively resolved the tax-related demands of cross-border taxpayers. For example, in response to the tax-related certification requirements of Chinese companies for the U.S. FDA Medical Small Business Qualification and Certification, local governments have been encouraged and guided to innovate their working methods and optimize processing procedures. Yesterday, the STA held a seminar with foreign chambers of commerce in China to further collect tax-related demands of foreign enterprises and assist in resolving difficult issues.

Third, we have improved the service mechanism and ensured smooth channels of communication between the tax authorities and enterprises. A national 12366 cross-border tax service hotline has been launched, providing tax-related consultation services in both Chinese and English 117,000 times for both Chinese companies going abroad and foreign companies in China. We have launched an English intelligent voice system providing round-the-clock real-time customer services by online virtual agents. At the same time, we used information technology to send tax policies in a targeted way and delivered country (regional) specific investment tax guides and the statements of benefits of tax cut and fee reduction to over 130,000 cross-border taxpayers throughout the year.

Fourth, we have updated our knowledge products and are now providing one-stop services for cross-border investment. The service brand "Shuilutong" has introduced four cross-border investment and taxation knowledge products. These include investment and taxation information for 105 countries and regions, 99 overseas taxation items, 15 overseas taxation cases, and 34 frequently asked questions by cross-border tax and fee payers. These products are available on the official website of the State Taxation Administration and in the "Belt and Road" section of the WeChat account "Shuilutong Tax Services."

In 2024, tax departments will continue to expand the services of "Shuilutong," deepen research on tax policies of various countries and regions, assist enterprises with overseas business in utilizing tax policies and tools, implement preferential taxation policies for foreign-invested companies, and contribute to high-level opening up. Thank you.

Cover News:

In 2023, tax departments investigated and exposed a number of typical cases of tax evasion and achieved positive results. Could you provide details about these cases? Additionally, what is this year's plan for combating tax-related illegal activities? Thank you.

Huang Yun:

Thank you for your questions. The tax departments have been rigorously enforcing laws against tax-related crimes as an effective way to optimize the taxation and business environment. In 2023, the tax departments investigated and penalized 135,000 illegal taxpayers in accordance with the law, recovering 181 billion yuan in various types of tax losses. They also collaborated with public security departments to take compulsory measures against 8,228 suspects, resulting in 539 surrendering to the authorities. The tax departments have upheld orderly economic taxation based on the rule of law and justice.

First, we have cracked down on tax fraud through the issuance of false invoices. By focusing on tax-related illegal activities such as issuing false invoices from fake enterprises, falsifying export refund claims, and making deceptive declarations for tax preferences, we have worked with relevant departments to implement targeted measures. We investigated a batch of illegal companies and dismantled a number of criminal gangs. In 2023, we handled 5,042 cases of illegal tax breaks and investigated 2,599 companies suspected of defrauding export tax rebates, retrieving about 16.6 billion yuan in export tax refund losses.

Second, we stepped up efforts to regulate key industries and sectors. We launched a special campaign focusing on potential tax-related violations in major industries and fields, and we tightened our efforts to investigate a batch of major tax evasion cases. In particular, we enhanced taxation supervision in the cultural and entertainment fields, investigated typical tax evasion cases involving celebrities and livestreamers, regulated the taxation order in these industries, and promoted the healthy development of relevant sectors.

Third, we explored an integrated mechanism involving multiple departments to combat violations. In 2023, the Supreme People's Court and the General Administration of Market Regulation joined the regular mechanism for joint crackdown on tax-related violations, increasing the number of participating departments from six to eight. This mechanism covers the whole work process, including administrative law enforcement and criminal justice, enabling an integrated crackdown on tax-related illegal activities. The departments jointly launched the "Sharp Sword 2023" campaign, dismantling 127 tax-related organized criminal gangs, and arrested 1,619 criminal suspects through cross-regional and cross-departmental data sharing, as well as joint analysis and research.

Fourth, we continued to expose cases to enhance deterrence against illegal behavior. We increased the exposure of typical cases of tax violations, disclosing 243 cases throughout the year in accordance with the level and category of each case. Meanwhile, we strengthened the systems of incentives and punishments involving various departments and strictly implemented the blacklist system for tax violations. We disclosed 17,324 major cases of tax violations and dishonesty.

In 2024, tax departments will join relevant departments to combat all kinds of tax violations, especially professional and gang-style crimes and instigators and colluders. We will implement law-based and targeted measures, comprehensive governance, and expose them regularly and for a long-term, striving to build a more standardized and orderly taxation and business environment that showcases law-based governance and justice. Thank you. 

Xie Yingjun:

Due to time constraints, the last two questions, please.

21st Century Business Herald:

Promoting green and low-carbon development is crucial to high-quality development. I would like to ask what work the tax departments have done to support green and low-carbon development. What are the next plans? Thank you.

Shen Xinguo:

Thanks for your questions. In 2023, the tax departments fully studied and implemented Xi Jinping Thought on Ecological Civilization, actively advanced the building of a green taxation system and the implementation of policies, contributing to the strength of taxation to build a beautiful China.

Firstly, the green taxation system, featuring joint governance of various types of taxes, has played an effective role. The tax departments have adhered to the principle of tax administration in accordance with the law and fully implemented the green tax laws and regulations, including the Environmental Protection Tax Law and the Resource Tax Law, to help protect the ecological environment and promote the efficient and economical use of resources. For example, through the guiding mechanism that the volume of the discharged pollutants determines the amount of the tax, the Environmental Protection Tax forces enterprises to reduce pollution emissions, strengthen environmental governance, and develop a circular economy. In 2023, the annual tax revenue reached 20.5 billion yuan. As another example, the Resource Tax has developed a tax adjustment mechanism that is directly linked to the market price of resource products by establishing a method of taxation on an ad valorem basis to encourage enterprises to rationally develop and utilize resources. The annual tax revenue in 2023 stood at 307 billion yuan.

Second, a system of combined preferential policies has contributed to green development. The tax departments have efficiently implemented green tax breaks related to corporate income tax, value-added tax, and vehicle purchase tax to encourage enterprises to pursue green and high-quality development. For example, in 2023, tax reductions and exemptions for products involving comprehensive utilization of resources reached 16.7 billion yuan, while immediate collection and refunds of value-added tax for relevant products and services stood at 56.4 billion yuan, promoting both resource conservation and "turning waste into treasure." Moreover, new energy vehicles are exempted from vehicle purchase tax and vehicle and vessel tax, amounting to 121.8 billion yuan, and promoting carbon reduction and emission reduction in the automobile industry.

Third, a coordination mechanism for tax collection and administration featuring cooperation among different departments has built synergy for oversight. The tax departments have strengthened cooperation with relevant departments from ministries including ecology and environment, and natural resources, on joint control and administration, joint incentives, and joint punishment, providing strong support for green development. For example, the tax departments and ecology and natural resources department have established a coordination mechanism for environmental protection tax collection and administration featuring tax collection and administration, enterprise declaration, environmental monitoring, information sharing, cooperation, and joint governance. In 2023, the two departments exchanged about 40 million pieces of information, making improvements in both tax collection, administrative, and environmental protection capacities. 

Next, the tax departments will fully and faithfully apply the new development philosophy on all fronts and take proactive steps to advance a green and low-carbon development of taxation services from a higher position and with a broader vision and greater endeavors. Thank you.

Red Star News:

It has been three years since the implementation of the guidelines on further deepening reform of the tax collection and administration system issued by the General Office of the CPC Central Committee and the General Office of the State Council. What progress and achievements have been made by the tax departments in implementing the guidelines? Thank you.

Rao Lixin:

Thank you for your questions. Over the past three years, the tax departments have fully implemented the guidelines on further deepening reform of the tax collection and administration system issued by the General Office of the CPC Central Committee and the General Office of the State Council. Focusing on building a smart taxation system and advancing accurate law enforcement, refined services, precise supervision, and faithful co-governance, the tax departments have launched over 200 reforms and innovative measures, deepening and consolidating the reform of the tax collection and administration system. 

According to the mid-term review of the implementation of the guidelines organized by the State Taxation Administration in the fourth quarter of 2023, notable progress has been made in both the development of the smart taxation system and advancement of accurate law enforcement, refined services, precise supervision, and faithful co-governance. For example, as I just mentioned, with the application of the comprehensive digital electronic invoice service platform nationwide and the launch of a new, larger-scale e-tax bureau, we have gradually established a unified smart application platform that covers taxpayers, tax officers, and decision-makers. Most tax and fee data have been intelligently collected. We have established a mechanism for regular "head-to-head" data sharing with 24 departments, effectively promoting the digital transformation and upgrading of tax collection and administration. We have strengthened internal control and supervision of tax law enforcement, with all prevention and control measures for high-risk points embedded in the information system and running automatically, effectively regulating acts of tax law enforcement. We have improved a new dynamic supervision mechanism based on both credit and risk, driven by data and rules, and accurately targeted high-risk taxpayers, strongly improving the effectiveness of tax supervision. We have analyzed social and economic operations based on the regular tracking and monitoring of big data for tax and fees. This has further enhanced the capacity of taxation to serve state governance.

Overall, in the past few years, the comprehensive score of taxpayer satisfaction surveys has risen from 86.1 points in 2020 to 89.24 points in 2023, suggesting that significant progress has been achieved in deepening reform of the tax collection and administration system.

2024 is a year of consolidating and advancing the implementation of these guidelines. The tax departments will comprehensively carry out actions to further deepen the reform on tax collection and administration; give play to the effect of major transformations in technology, business, and organization in an integrated way; and strive to build a world-class smart taxation system with Chinese characteristics, opening a new page in taxation practices that will advance Chinese modernization in a high-quality manner. Thank you.

Xie Yingjun:

Thanks to the speakers for the introduction. Thank you to all the media for your participation. Today's briefing is hereby concluded. See you.

Translated and edited by Wang Yiming, Wang Wei, Zhou Jing, Zhang Junmian, Liu Sitong, Cui Can, He Shan, Wang Yanfang, Huang Shan, Yan Xiaoqing, Liu Jianing, Liu Qiang, Xu Kailin, 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.

Read in Chinese

Speakers:

Mr. Kang Yi, commissioner of the National Bureau of Statistics (NBS) 

Ms. Wang Guanhua, spokesperson of the NBS

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. 17, 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. Kang Yi, commissioner of the National Bureau of Statistics (NBS) and Ms. Wang Guanhua, spokesperson of the NBS, to brief you on China's economic performance in 2023, and to take your questions.

Now, let's give the floor to Mr. Kang for his introduction.

Kang Yi:

Thank you, Ms. Shou. Friends from the media, good morning. First, I would like to brief you on China's economic performance of 2023. 

In 2023, the Chinese economy showed positive recovery momentum and made steady progress in pursuing high-quality development. In 2023, faced with complex and grave international environment as well as arduous tasks to advance reform, promote development and maintain stability at home, 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, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to foster a new pattern of development, comprehensively deepened reform and opening up, strengthened macro regulation, and redoubled efforts to expand domestic demand, optimize structure, boost confidence and prevent and defuse risks. As a result, the national economy witnessed the momentum of recovery, supply and demand improved steadily, transformation and upgrades were advanced solidly, employment and prices were generally stable, people's well-being was robustly and effectively guaranteed, steady progress was made in pursuing high-quality development, and major expected targets were well achieved.

According to preliminary estimates, the gross domestic product (GDP) was 126,058.2 billion yuan in 2023, an increase of 5.2% over the previous year at constant prices. By industries, the value added of the primary industry was 8,975.5 billion yuan, up by 4.1% over last year, that of the secondary industry was 48,258.9 billion yuan, up by 4.7% and that of the tertiary industry was 68,823.8 billion yuan, up by 5.8%. By quarter, the GDP for the first quarter went up by 4.5% year on year, up by 6.3% for the second quarter, 4.9% for the third quarter and 5.2% for the fourth quarter. The GDP increased by 1.0% quarter on quarter in the fourth quarter.

1. Grain output reached another record high and production of animal husbandry grew steadily.

The total output of grain in 2023 was 695.41 million tons, an increase of 8.88 million tons over the previous year, or up by 1.3%. Of this total, the output of summer grain was 146.15 million tons, down by 0.8%, and that of early rice was 28.34 million tons, up by 0.8%. The output of autumn grain reached 520.92 million tons, up by 1.9%. By species, the output of rice was 206.60 million tons, down by 0.9%; wheat, 136.59 million tons, down by 0.8%; corn, 288.84 million tons, up by 4.2%; and soybean, 20.84 million tons, up by 2.8%. The output of oil-bearing crops was 38.64 million tons, up by 5.7%. The total output of pork, beef, mutton and poultry in 2023 was 96.41 million tons, up by 4.5% over the previous year. Of this total, the output of pork was 57.94 million tons, up by 4.6%; beef, 7.53 million tons, up by 4.8%; mutton, 5.31 million tons, up by 1.3%; and poultry, 25.63 million tons, up by 4.9%. The production of milk reached 41.97 million tons, up by 6.7% and that of eggs stood at 35.63 million tons, up by 3.1%. In 2023, 726.62 million pigs were slaughtered, up by 3.8%, and 434.22 million pigs were registered in stock at the end of the year, down by 4.1%.

2. Industrial production recovered steadily and equipment manufacturing grew fast.

The total value added of industrial enterprises above the designated size increased by 4.6% over the previous year. In terms of sectors, the value added of mining was up by 2.3%, that of manufacturing up by 5.0% and that of production and supply of electricity, thermal power, gas and water up by 4.3%. The value added of equipment manufacturing went up by 6.8%, 2.2 percentage points faster than that of the industrial enterprises above the designated size. In terms of ownership, the value added of the state holding enterprises grew by 5.0%, that of the share-holding enterprises up by 5.3%, that of the enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan increased by 1.4% and that of private enterprises up by 3.1%. By products, the production of solar cells, new energy vehicles and power-generating units (power-generating devices) grew by 54.0%, 30.3% and 28.5%, respectively. In December, the total value added of the industrial enterprises above the designated size grew by 6.8% year on year, or up by 0.52% month on month. In the first eleven months, the total profits made by industrial enterprises above the designated size were 6,982.3 billion yuan, down by 4.4% year on year, of which the profits in November grew by 29.5%, registering growth for four consecutive months.

3. Service sector registered fast growth and contact-and-gathering-based services improved notably.

The value added of services went up by 5.8% over the previous year. The value added of accommodation and catering, information transmission, software and information technology services, leasing and business services, transportation, storage and postal services, financial intermediation, and wholesale and retail grew by 14.5%, 11.9%, 9.3%, 8.0%, 6.8% and 6.2%, respectively. In December, the Index of Services Production went up by 8.5% year on year, specifically, that of accommodation and catering and that of information transmission, software and information technology services grew by 34.8% and 13.8%, respectively. In the first eleven months, the business revenue of service enterprises above the designated size grew by 8.5% year on year, of which the business revenue of culture, sports and recreation, information transmission, software and information technology services and leasing and business services went up by 18.9%, 12.8% and 12.7%, respectively.

4. Market sales recovered rapidly and services consumption grew fast.

In 2023, the total retail sales of consumer goods reached 47,149.5 billion yuan, up by 7.2% over the previous year. Analyzed by different areas, the retail sales in urban areas reached 40,749.0 billion yuan, up by 7.1%; and the retail sales in rural areas stood at 6,400.5 billion yuan, up by 8.0%. Grouped by consumption patterns, the retail sales of goods were 41,860.5 billion yuan, up by 5.8%; and the income of catering was 5,289.0 billion yuan, up by 20.4%. The sales of basic living goods grew steadily, with the retail sales of clothes, shoes, hats and textiles, and that of grain, oil and food by enterprises above the designated size growing by 12.9% and 5.2%, respectively. The sales of upgraded goods grew fast, with the retail sales of gold, silver and jewelry, sports and recreational articles and communication equipment by enterprises above the designated size growing up by 13.3%, 11.2% and 7.0%, respectively. The national online retail sales reached 15,426.4 billion yuan, growing by 11.0% over the previous year. Specifically, the online retail sales of physical goods were 13,017.4 billion yuan, up by 8.4%, accounting for 27.6% of the total retail sales of consumer goods. In December, the total retail sales of consumer goods went up by 7.4% year on year, or a month-on-month growth of 0.42%. The retail sales of services in 2023 grew by 20.0% over that of the previous year.

5. Investment in fixed assets scaled up and investment in high-tech industries witnessed a good momentum of growth.

In 2023, the investment in fixed assets (excluding rural households) reached 50,303.6 billion yuan, up by 3.0% over the previous year, or up by 6.4% after deducting price factors. Specifically, the investment in infrastructure went up by 5.9%, manufacturing up by 6.5% and real estate development down by 9.6%. The floor space of commercial buildings sold reached 1,117.35 million square meters, down by 8.5%. The total sales of commercial buildings were 11,662.2 billion yuan, down by 6.5%. By industries, the investment in the primary industry went down by 0.1%; that in the secondary industry up by 9.0%; and that in the tertiary industry up by 0.4%. The private investment went down by 0.4%. Deducting the investment in real estate development, the private investment grew by 9.2%. The investment in high-tech industries grew by 10.3%, 7.3 percentage points faster than that of the total investment. Specifically, the investment in high-tech manufacturing and high-tech services grew by 9.9% and 11.4%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicle and equipment, manufacturing of computers and office devices and manufacturing of electronics and communication equipment grew by 18.4%, 14.5% and 11.1%, respectively. In terms of high-tech services, the investment in services for transformation of scientific and technological achievements and in e-commerce services went up by 31.8% and 29.2%, respectively. In December, the investment in fixed assets (excluding rural households) grew by 0.09% month on month.

6. Imports and exports of goods was generally stable and trade structure continued to optimize.

In 2023, the total value of imports and exports of goods was 41,756.8 billion yuan, an increase of 0.2% over the previous year. The total value of exports was 23,772.6 billion yuan, up by 0.6%; the total value of imports was 17,984.2 billion yuan, down by 0.3%. The trade balance was 5,788.4 billion yuan in surplus. The imports and exports by private enterprises grew by 6.3%, accounting for 53.5% of the total value of imports and exports, 3.1 percentage points higher than that of the previous year. The imports and exports with the Belt and Road partner countries grew by 2.8%, accounting for 46.6% of the total value of imports and exports, 1.2 percentage points higher than that of the previous year. The exports of mechanical and electrical products grew by 2.9%, accounting for 58.6% of the total value of exports. In December, the total value of imports and exports of goods was 3,809.8 billion yuan, up by 2.8% year on year. Specifically, the total value of exports was 2,175.4 billion yuan, up by 3.8%; the total value of imports was 1,634.5 billion yuan, up by 1.6%.

7. Consumer price grew mildly and core consumer price index (CPI) was generally stable.

In 2023, the CPI went up by 0.2% over the previous year. Grouped by commodity categories, prices for food, tobacco and alcohol grew by 0.3%; clothing grew by 1.0%; housing kept at the same level; articles and services for daily use grew by 0.1%; transportation and communication dropped by 2.3%; education, culture and recreation grew by 2.0%; medical services and health care grew by 1.1%; and other articles and services grew by 3.2%. In terms of food, tobacco and alcohol prices, prices for pork went down by 13.6%, fresh vegetables down by 2.6%, grain up by 1.0%, and fresh fruits up by 4.9%. Core CPI excluding the prices of food and energy went up by 0.7%. In December, the CPI went down by 0.3% year on year, or up by 0.1% month on month. In 2023, the producer prices for industrial products went down by 3.0% over the previous year; in December, it went down by 2.7% year on year, or down by 0.3% month on month. The purchasing prices for industrial producers went down by 3.6% over the previous year; in December, it went down by 3.8% year on year, or down by 0.2% month on month.

8. Employment was generally stable and surveyed unemployment rate in urban areas went down.

In 2023, the surveyed unemployment rate in urban areas averaged 5.2%, 0.4% percentage point lower than that of the previous year. In December, the surveyed unemployment rate in urban areas was 5.1%. The surveyed unemployment rate of population with local household registration was 5.2% and that of population with non-local household registration was 4.7%, of which the rate of population with non-local agricultural household registration was 4.3%. The surveyed unemployment rate of the population aged from 16 to 24, from 25 to 29, and from 30 to 59 (excluding students) registered 14.9%, 6.1% and 3.9%, respectively. The urban surveyed unemployment rate in 31 major cities was 5.0%. The employees of enterprises worked 49.0 hours per week on average. In 2023, the number of rural migrant workers totaled 297.53 million, 1.91 million more than that of the previous year, or up by 0.6%. Specifically, local migrant workers totaled 120.95 million, down by 2.2%; outside migrant workers totaled 176.58 million, up by 2.7%. The average monthly income of migrant workers was 4,780 yuan, up by 3.6% over the previous year.

9. Resident income continued to increase and income of rural residents grew faster than that of urban residents.

In 2023, the nationwide per capita disposable income of residents was 39,218 yuan, a nominal increase of 6.3% over that of the previous year, and a real increase of 6.1% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 51,821 yuan, a nominal growth of 5.1% over that of the previous year and a real growth of 4.8% after deducting price factors. The per capita disposable income of rural households was 21,691 yuan, a nominal growth of 7.7% over that of the previous year and a real growth of 7.6% after deducting price factors. The median of the nationwide per capita disposable income was 33,036 yuan, a nominal increase of 5.3% over that of the previous year. Grouped by income quintile, the per capita disposable income of low-income group reached 9,215 yuan, the lower-middle-income group 20,442 yuan, the middle-income group 32,195 yuan, the upper-middle-income group 50,220 yuan and the high-income group 95,055 yuan. In 2023, the nationwide per capita consumption expenditure was 26,796 yuan, a nominal growth of 9.2% over the previous year, or a real growth of 9.0% after deducting price factors. The per capita consumption expenditure on food, tobacco and alcohol accounted for 29.8% of the per capita consumption expenditure (Engel's coefficient), 0.7percentage point lower than that of the previous year. The per capita consumption expenditure on services went up by 14.4%, accounting for 45.2% of the per capita consumption expenditure, 2.0 percentage points higher than that of the previous year.

10. Total population declined and urbanization rate continued to grow.

By the end of 2023, the national population was 1,409.67 million (including the population of 31 provinces, autonomous regions and municipalities and servicemen, but excluding residents of Hong Kong, Macao and Taiwan and foreigners living in the 31 provinces, autonomous regions and municipalities), a decrease of 2.08 million over that at the end of 2022. In 2023, the number of births was 9.02 million with a birth rate of 6.39 per thousand; the number of deaths was 11.10 million with a mortality rate of 7.87 per thousand; the natural population growth rate was minus 1.48 per thousand. In terms of gender, the male population was 720.32 million, and the female population was 689.35 million; the sex ratio of the total population was 104.49 (the female is 100). In terms of age structure, the population at the working age from 16 to 59 was 864.81 million, accounting for 61.3% of the total population; the population aged 60 and over was 296.97 million, accounting for 21.1% of the total population, specifically, the population aged 65 and over was 216.76 million, accounting for 15.4% of the total population. In terms of urban-rural structure, the permanent residents in urban areas were 932.67 million, an increase of 11.96 million over the end of the previous year; and the permanent residents in rural areas were 477.00 million, a decrease of 14.04 million. The share of urban population in the total population (urbanization rate) was 66.16%, 0.94 percentage point higher than that at the end of the previous year.

Generally speaking, with external pressure withstood and internal difficulties overcome in 2023, the national economy witnessed momentum of recovery, the high-quality development was advanced steadily, the major expected targets were well achieved, and solid strides were taken in building China into a modern socialist country in all respects. However, we must be aware that the external environment is increasingly complex, severe and uncertain, and the economic growth is still facing difficulties and challenges. At the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, fully implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee as well as the arrangements made by the Central Economic Work Conference, fully and faithfully apply the new development philosophy on all fronts, and accelerate efforts to foster a new pattern of development. Focusing on the primary mission of high-quality development, we must follow the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We must intensify macro regulation, coordinate expanding domestic demand with deepening supply-side structural reform, ensure both new urbanization and rural revitalization across the board, and secure both high-quality development and high-level security. We must effectively enhance economic vitality, prevent and mitigate risks, improve social expectations, consolidate and boost the sound momentum of economic recovery and growth, in a bid to effectively upgrade the quality and appropriately expand the quantity of the national economy.

Next, I'll brief you on the improvements to the system of age-based, surveyed urban unemployment rate.

Highly valuing the improvement of the labor force survey system and considering suggestions from the public, the NBS organized in-depth discussions among relevant departments and experts, studied international standards as well as foreign practices and experiences, conducted field investigations, and carefully examined and studied the statistical methods and criteria for unemployment rates. In order to better reflect the youth employment and unemployment situation more fully and faithfully, two adjustments have been made to the age-grouped unemployment rate statistics based on a thorough consideration of the national conditions. The first is releasing the surveyed unemployment rate of those aged 16 to 24, and the second is releasing that of those aged 25 to 29, both excluding students. There are two reasons for the adjustments:

The first is to monitor the employment and unemployment status of young people in a more targeted manner. For each month on average in 2023, among the urban population aged 16 to 24 in China, nearly 62 million were students, accounting for more than 60% of the total; and around 34 million were not students, making up over 30% of the total. Considering our national conditions, the primary task of students is learning rather than engaging in part-time work. Including students in age groups would blur the distinction between those seeking part-time employment and graduates searching for jobs, failing to accurately reflect the employment situation of young individuals entering society and actually looking for jobs. Calculating the age-based unemployment rate excluding students helps provide a more precise depiction of the employment conditions of young people entering the workforce. This approach enables the provision of more accurate employment services and the formulation of more effective and targeted employment policies for non-students aged 16 to 24.

The second is to reflect the employment and unemployment situation of young people spanning the period from graduation to attainment of stable employment. With the continuous increase in the length of schooling for young individuals in China, the nation's current gross enrollment rate in higher education stands at nearly 60%. At the age of 24, most young people have just graduated and are in the midst of navigating career choices, with some being unemployed or facing job instability. By the age of 29, the majority have passed through the phase of career decision-making, with their employment tending to stabilize. There is a deep public concern regarding the employment status of young people right after graduation and for some time after their graduation. Therefore, the NBS has added calculations and release of the unemployment rate for the labor force aged 25-29.

Going forward, the NBS will release the unemployment rates for groups aged 16 to 24, 25 to 29 and 30 to 59 each month, excluding students. The data can be accessed via the NBS's database.

That's all for my briefing. Now I'm ready to take your questions.

Shou Xiaoli:

Thank you, Mr. Kang. The floor is now open for questions. Please identify the news outlet you work for before raising questions. 

Beijing Youth Daily:

In 2023, we faced multiple challenges: the global economic recovery was sluggish; at home, we got through frequent natural disasters and took on strenuous tasks in advancing reforms, promoting development, and maintaining stability. How was China's general economic performance? Did we realize the main objectives and tasks last year? Thank you.

Kang Yi:

Thank you for your questions. We have just detailed the overall economic performance of the whole year. Generally speaking, China has accomplished the major targets set for 2023 and seen a solid rebound and improvements in economic performance. Last year, the national economy witnessed the momentum of recovery, and achieved good results through high-quality development, and this hasn't been easy. 

First, the economy sustained the momentum of recovery. Last year, in terms of economic growth, China's GDP surpassed 126 trillion yuan, with the growth rate 2.2 percentage points higher than 2022. The trend of improvement was further strengthened, showing a lower curve in the early months, rising in the middle of the year, and then remaining at higher levels for the rest of the year. As calculated at comparable prices, the economic increment exceeded 6 trillion yuan in 2023, equivalent to the economic aggregate of a medium-sized country. The per capita GDP increased steadily and reached 89,358 yuan in 2023, up 5.4% from the previous year. Employment improved across the board. The surveyed urban unemployment rate fell by 0.4 percentage points in comparison to the previous year. Employment of migrant workers saw a remarkable improvement. Overall, prices posted a modest growth. The yearly CPI rose by 0.2%, and the core CPI by 0.7%. In terms of international balance of payment, annual export goods increased by 0.6%, and the year-end foreign exchange reserves surpassed $3.2 trillion. 

Second, we achieved sound development. Last year, we coordinated efforts to effectively upgrade the quality and appropriately expand economic output. The whole country prioritized high-quality development and gained increasing economic advantages through restructuring, transformation, and upgrading. High-quality development has been consolidated. The strategy to drive development through innovation was implemented thoroughly. Investment in innovation steadily increased. According to preliminary calculations, the nationwide R&D spending reached 3.32782 trillion yuan in 2023, accounting for 2.64% of GDP, up 0.08 percentage points from the previous year. Throughout the year, we achieved many significant scientific and technological innovations, with the manufacturing sector steadily growing more advanced, intelligent, and eco-friendly. The economic structure was optimized and upgraded. The service sector and consumption played stronger roles as the main driver of growth. In 2023, the service sector's added value accounted for 54.6% of the GDP, up 1.2 percentage points from the previous year. Final consumption expenditure contributed to 82.5% of total economic growth, up 43.1 percentage points from the previous year. The foundations of secured development have been further consolidated. Grain yield increased 1.3% from the previous year, raw coal 2.9%, crude oil 2%, and natural gas 5.8%. We secured the bottom line to prevent systematic risks, safeguard financial and economic safety, and better ensure people's livelihoods. The per capita disposable income realized an year-on-year growth of 6.1% in real terms. 

Third, China's growth ranked top among major economies. To assess the economic performance of China, we should compare it not only to previous years but also to other countries. In 2023, China realized a 5.2% economic growth, higher than the 3% estimated global growth, and ranked top among major economies around the world. As the most significant driving force, China's economy is expected to contribute more than 30% of the global economic growth. Meanwhile, as global trade is predicted to decrease, we realized a small growth in exports, maintaining a stable global market share. The CPI rose mildly, a strong contrast to the high inflation rates worldwide and the fact that some other countries struggled to control inflation and maintain growth. 

Fourth, all this hasn't been an easy feat. You wouldn't know how difficult it was unless you were there. In 2023, the world economy was sluggish, the international situation was complicated and evolving, and many geopolitical conflicts broke out. The external environment was increasingly intricate, stern, and uncertain. Domestically, we endured many cyclical and structural problems and experienced frequent natural disasters. Considering this, it is truly remarkable that we made these achievements possible. We owe our achievements to the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and the concerted efforts of the Chinese people forging ahead with enterprise and fortitude. Our achievements are commendable and it is important to fully recognize their value. 

Looking ahead into 2024, we should also be aware of the complicated and challenging external environment, the lack of effective domestic demand, industries with overcapacity, weak public expectation, and many risks and hidden dangers. We still need to overcome some difficulties and challenges to further advance the recovery of China's economy. We will act upon the decisions and plans of the Central Economic Work Conference, take effective measures to cope with these difficulties and problems, and continue to make steady and sustained progress in the Chinese economy. Thank you.

Global Times: 

Could the speaker talk about how much the three major demands contributed to and drove economic growth in the fourth quarter and throughout 2023? Were there any new changes? And I would also like to know how the paradigm of "dual circulation" of domestic and international markets developed over the past year? Thank you.

Kang Yi: 

Thank you for your questions. Your questions concern two aspects. One concerns the three major demands, and the other is about "dual-circulation." First, I'll answer your first question about the contribution and the driving force of the three major demands. In 2023, China's final consumption expenditure, gross capital formation, and net exports of goods and services drove the economic growth by 4.3 percentage points, 1.5 percentage points, and -0.6 percentage point, respectively, and contributed 82.5%, 28.9%, and -11.4% to the economic growth, respectively. In the fourth quarter, final consumption expenditure, gross capital formation, and net exports of goods and services drove economic growth by 4.2 percentage points, 1.2 percentage points, and -0.2 percentage point and contributed 80%, 23.1%, and -3.1% to the economic growth.

The second question concerns the progress in "dual circulation" of domestic and international markets. It should be said that new progress has been made in building the new development paradigm in 2023. There are three features:

First, the role of domestic circulation as the mainstay has been reinforced. Based on the strategic underpinning of expanding domestic demand, and with the potential of a massive domestic market in China unleashed, domestic circulation has played an increasingly important role in driving economic growth. In 2023, China's total retail sales of consumer goods reached 47.1 trillion yuan, and fixed asset investment stood at 50.3 trillion yuan. Domestic consumption contributed 111.4% to economic growth, an increase of 25.3 percentage points from the previous year. We have been working hard to build a unified national market, open up the blockages in the domestic circulation, and smooth all links of production, distribution, circulation, and consumption, with the flow of factors becoming more active and the linkage between production and sales gradually getting better. In the fourth quarter, the industrial capacity utilization rate was 75.9%, a 0.2 percentage point increase on a year-on-year basis; the sales ratio of industrial enterprises above designated size remained stable at above 97%. The annual commercial freight volume increased by 8.2%, and the commercial passenger volume increased by 66.5% year on year.

Second, the quality and level of international circulation have been further enhanced. Faced with the negative influences of shrinking external demand, China has redoubled efforts to promote the stability, scale, and structure of foreign trade, with positive growth achieved in exports. Compared with other countries, China did better than major export-oriented economies, and the international market share remained generally stable. In 2023, the export volume of goods rose by 0.6% over the previous year, and the proportion of imports and exports of both general trade and private enterprises increased. At the same time, China has also been actively expanding international economic and trade cooperation and enhancing high-quality Belt and Road cooperation. China has become a major trading partner of more than 140 countries and regions, and international circulation has become wider and deeper. In 2023, the total volume of imports and exports between China and BRI partner countries increased by 2.8% over the previous year.

Third, the domestic and international markets have reinforced each other. The advantages of our supersized market have emerged, and expanding domestic demand has boosted imports. In 2023, the import volume of agricultural products, consumer goods, and energy products increased by 5%, 1.2%, and 27.2%, respectively, over the previous year. The advantages of a sound industrial system and stable production capacity have been brought into play. The steady increases in both the volume and quality of exports have also brought about the development of relevant domestic industries, contributing to a full economic recovery. In 2023, China's export volume of goods hit a record high. Among them, exports of mechanical and electrical products grew by 2.9% over the previous year. The export volume of the "new three" products, namely electric passenger vehicles, solar cells, and lithium-ion batteries, also topped the threshold of one trillion yuan for the first time, with an increase of 29.9%.

While positive progress has been made in "dual circulation" of domestic and international markets, we should also be aware that there are still impediments to domestic circulation. The global economy has been sluggish, and global industrial chains and supply chains have undergone profound changes, posing difficulties and challenges to circulation in the global economy. Next, we will take coordinated steps to expand domestic demands and deepen supply-side structural reform, pursue both high-quality development and high-level security, and promote both in-depth reform and high-level opening up to open up key bottlenecks restricting economic cycles and promote the mutual reinforcement between domestic and international circulations. Thank you.

Market News International:

Recent data shows that China's CPI was negative for the third consecutive month in December. What is the outlook for CPI and will the government take any measures to address the low-rate inflation? Thank you.

Kang Yi:

Thank you for your questions. The issue of prices is of great concern throughout society. Looking at the Overall, prices in China have maintained a moderate upward trend in 2023, with a 0.2% increase in annual CPI. As the reporter mentioned, CPI has fallen for three consecutive months. However, when analyzing this issue, it is crucial to consider not only the overall data but also the structural and cyclical aspects influencing the year-on-year decline in CPI over these months.

First, let's talk about structural aspects. Recently, the decline in prices is primarily due to the fall in food and energy prices. Excluding the impact of food and energy prices, the core CPI remains stable. This indicates that the decline in these prices is not universal or comprehensive but rather partial and structural. The decrease in food and energy prices is not solely a result of market supply and demand changes. Over the past two years, from 2022 to 2023, it has been influenced by non-economic and non-conventional factors. Let's talk about energy first. Energy prices, especially oil prices, have a relatively significant weight of in our country's CPI basket. In December 2023, energy prices dropped by 0.5%, while they increased by 5.2% in the same period the previous year. As everyone knows, energy prices were primarily affected by the Russia-Ukraine conflict, with a substantial increase in 2022 and a subsequent decline in 2023, resulting in a significant year-on-year downward pull. Let's turn to food next. In December 2023, food prices decreased by 3.7% compared to the same period in the previous year, when they increased by 4.8%. In December 2022, the main influence was the pandemic, causing disruptions in logistics and a general rise in food prices. As normal operations resumed, ample supply led to a natural decline in food prices compared with high levels in the previous year.

Second, the decline in CPI is temporary. Especially as China's economy continues to recover and improve, with steady income growth for residents and an expansion of total demand domestically, there is a foundation and conditions for the upward movement of commodity and service prices. With the approaching Spring Festival holiday, there is also an increase in food consumption demand. Service consumptions such as dining out, visiting relatives and friends, and tourism are increasing, which will all help to boost the seasonal rebound in CPI. From a monthly perspective, CPI rose by 0.1% in December 2023. In early January 2024, according to data, some food prices have maintained a stable and slightly rising trend. Besides supply and demand, prices are also influenced by expectations. Recent developments indicate a marginal recovery in both enterprise and resident confidence. In December, the manufacturing production and operation outlook index for activities reached 55.9%, and the non-manufacturing business operation outlook index reached 60.3%, both are in a relatively high range for prosperity. In the fourth quarter, the business prosperity index for enterprises above designated size was 109 points, an increase of 0.4 point from the previous quarter. The consumer confidence index in December increased by 0.6 point compared to the previous month.

Third, the low-level operation of prices also reflects issues such as insufficient effective demand. Insufficient effective demand is a phased phenomenon in our country as the economy gradually returns to a normal state after the three-year impact of the pandemic. Short-term insufficient demand can lead to a decline in prices. The central government attaches great importance to the issue of insufficient demand. The Central Economic Work Conference, while planning for the economic work in 2024, clearly emphasizes the need to focus on expanding domestic demand, promoting the shift of consumption from post-pandemic recovery to sustained expansion. It also specifies a series of concrete work directions. With the introduction and implementation of these policies from the Central Economic Work Conference, the issue of insufficient effective demand is expected to be gradually alleviated, and the stable rise of consumer prices is expected to stabilize and rebound accordingly. We predict that prices will rise moderately in 2024. Thank you.

CCTV:

High-quality development is the primary task in building a modern socialist country in all respects. How has China progressed in high-quality economic development, and what measures will be taken in the continuous promotion of high-quality economic development in the future? Thank you.

Kang Yi:

Thank you for your questions. High-quality development is a necessity in the new era and the top priority for building a modern socialist country in all respects. In 2023, various regions and departments have put great efforts into stabilizing economic operations, and there has been no relaxation in promoting high-quality development. China's economy has effectively achieved qualitative improvement and reasonable growth in quantity, making the path of high-quality development more resolute and robust. In summary, we can use five "furthers" to encapsulate the progress.

First, significant progress has been made in developing a modernized industrial system, accelerating the replacement of old growth drivers with new ones. A modernized industrial system is the essential foundation of high-quality development. All localities and government departments have modernized the industrial system through technological innovation and moved the manufacturing sector toward higher-end, smarter, and greener production. New drivers and strengths for development have been steadily fostered, and new progress has been made in building a modernized industrial system.

Second, we have deepened reform and opening up, unleashing new impetus for development. In 2023, China made every effort to build a unified national market and created a better development environment for private businesses. We continued to foster a world-class business environment that is market-oriented, law-based, and internationalized, giving fresh impetus and vitality to economic development. By the end of September 2023, there had been 181 million registered business entities across the country, including 122 million self-employed individuals. We also accelerated efforts to promote high-standard opening up, carried out international economic and trade exchanges and cooperation, pursued high-quality BRI cooperation, and successfully held a number of major trade events such as the China International Import Expo (CIIE), the China International Fair for Trade in Service, and the China Import and Export Fair. Imports and exports between China and other BRI countries increased by 2.8%. The annual intended turnover of the latest CIIE increased 6.7% compared to the previous edition.

Third, we have steadily advanced the transition to green, low-carbon development, which has resulted in further transformation of China's growth model. China has promoted economic development through green, low-carbon transformation, which accelerates the development of green production and a green lifestyle. We have actively built an energy sector that is clean, low-carbon, safe, and efficient, improving the energy consumption structure. Preliminary assessments indicate that in 2023, the proportion of non-fossil energy consumption to total energy consumption saw a 0.2 percentage point increase year on year. At the end of 2023, China's installed capacity of renewable power exceeded that of thermal power for the first time in history, accounting for more than 50% of the total installed capacity. The output of green and low-carbon products has increased rapidly. In 2023, the output of NEVs rose by 30.3% year on year. Both the output and the sales of NEVs ranked the top in the world. The exports of electric manned vehicles increased by 67.1%.

Fourth, robust and effective measures have been taken to ensure people's well-being and raise their living standards. Improving people's well-being is the fundamental goal of development. In 2023, the incomes of urban and rural residents grew steadily, public services and social security continued to improve, and weak links in areas important to people's lives were gradually shored up. All these efforts make the improvement of people's well-being a defining feature of high-quality development. Per capita disposable income grew by 6.1%. Transfer payments, including social relief and subsidies from the government, policy-backed living allowances, and policy-backed subsidies paid in cash to benefit farmers, increased by 10.3%. We have continued to increase inputs in areas important to people's well-being. Investments in the production and supply of electricity, heat, gas, and water increased by 23%, while agricultural investment increased by 9.3%. Both outpaced the growth of total investment.

Fifth, we have enhanced food and energy security to reinforce the foundation of China's development security. In 2023, China guaranteed safety through development and showed stronger performance on the basis of ensuring safety.

Of course, at the same time, we are also aware that China's economy is in a pivotal period in the transformation of its growth model, its structural improvement, and its shift to new growth drivers. There are still many difficulties and challenges to tackle on our way to promoting high-quality development. We will thoroughly implement the guiding principles of the Central Economic Work Conference and take high-quality development as what really matters in the new era. We will work to both pursue high-quality development and safeguard high-level security so as to effectively upgrade and appropriately expand China's economic output. By doing so, we will turn the grand blueprint of Chinese modernization into reality step by step. Thank you. 

Reuters:

I am also interested in the economic structure. My question is, how can China replace old growth drivers with new ones? I read in a report that sectors such as NEVs and solar cells have been growing rapidly. But how can you prevent possible overcapacity while making a big push to develop advanced manufacturing? Besides, in the face of insufficient domestic demand, will such rapid expansion of these sectors result in downward pressure on the prices and international trade friction? Thank you.

Wang Guanhua:

Thank you for your questions. I will respond from two perspectives.

First, regarding the transformation of growth drivers, high-quality development is characterized by the new development philosophy, with innovation being a priority among the five concepts. Upholding innovation-driven development and promoting the transformation of growth drivers are crucial tasks in achieving high-quality development. Regardless of the adjustment and transformation of traditional growth drivers, China will unswervingly press ahead with the transition of growth drivers. Mr. Kang highlighted the achievements of China's high-quality and innovation-driven development, and I would like to provide additional data. In 2023, the value added by the equipment manufacturing industry above designated size grew by 6.8%, playing a key role in the industry's steady recovery. According to a 2023 report by the World Intellectual Property Organization, China ranked 12th in the Global Innovation Index and is home to the world's largest number of the top 100 science and technology innovation clusters. New growth drivers have become an essential engine driving high-quality development. 

Second, last year witnessed the recovery of the national economy. Market demand and domestic demand recovered well, and we all gained firsthand experience of that. Demand played a greater role in driving economic growth, and the balance between supply and demand, as well as economic circulation, improved. I will provide you with several sets of data. In the fourth quarter, the product sales rate of industrial enterprises above designated size was over 97%, and in December, it was 98.4%. The capacity utilization rates in the four quarters of 2023 were 74.3%, 74.5%, 75.6%, and 75.9%, respectively, showing a recovering trend. This reflected improved market demand and capacity utilization. At the beginning of this year, ice and snow tourism and sports have gained popularity. This follows the trend of upgrading consumer spending and demonstrates the potential of domestic demand. Therefore, we are confident in the consumption market's recovery this year.

In general, China is still undergoing a crucial period of economic recovery, transformation and upgrading. Going forward, we will continue to act on the principles outlined at the Central Economic Work Conference, which are seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will consolidate and strengthen the momentum of economic recovery and promote the effective improvement of quality and reasonable economic growth. Thank you.

The Straits Times: 

Last year, we saw the impact of real estate on the macroeconomy. Can the real estate market remain stable this year? Thank you.

Kang Yi:

Thank you for your question. The real estate sector has garnered widespread attention. At last year's press conference, I was asked about the trends and future development of the real estate industry. From our observations, the real estate market is undergoing a period of adjustment and transformation after more than 20 years of development. Under these circumstances, all regions and departments have made timely adjustments and optimized real estate policies in accordance with the new situation where the relationship between supply and demand in the real estate market has profoundly changed. Currently, the real estate market has seen positive changes in the following two aspects.

First, there was a decrease in the rate of decline for indicators such as real estate investment and sales. In 2023, investment in real estate development decreased 9.6%, narrowing by 0.4 percentage point from the previous year. The amount of funds raised by real estate developers in China fell 13.6% in 2023, with the rate of decline narrowing by 12.3 percentage points compared to the previous year. The decline in sales of commodity housing substantially narrowed as well. In 2023, the floor space of commercial buildings sold and the total sales in China declined 8.5% and 6.5% year on year, respectively. These decline rates narrowed by 15.8 and 20.2 percentage points, respectively. The number of online signings and registrations for newly built commercial residential buildings has increased since August, up 20.2 percentage points from August to December. In 70 large- and medium-sized cities, the transaction volume of new and secondhand homes achieved a gentle rise. Second, the completed area of housing increased rapidly. Efforts have been made to ensure the timely delivery of pre-sale housing, and the results have been positive. In 2023, the completed floor area by real estate developers increased by 17% from the previous year.

How do we foresee future trends in the real estate market? China's real estate market has a solid foundation for long-term and healthy development for these reasons:

Firstly, there is ample room for improvement in both the quantity and quality of urbanization. As we just reported, the urbanization rate in 2023 was 66.16%, which, compared to the approximately 80% in developed economies, indicates a potential improvement of over 10 percentage points. China's urbanization is still in continuous development, with an average annual increase of 0.93 percentage point over the past five years. With more than 10 million rural residents migrating to cities each year, the substantial influx of new citizens will create a significant demand for new housing. In terms of existing housing stock, while the per capita housing area in our country is already substantial, many houses have impractical functions and structures, leading to an urgent need for improved housing. This demand serves as a crucial driving force for the real estate market. The demand for improved housing is particularly apparent in the 70 major and medium-sized cities currently under observation. This is evidenced by the fact that the transaction volume of second-hand houses in these 70 cities has already exceeded that of new houses.

Secondly, there is enormous potential to establish a new model of real estate development. The active construction of a new model for real estate development currently offers a fundamental solution to address development challenges and promote the sector's healthy growth. Initiatives such as the construction of government-subsidized housing, the construction of dual-use public infrastructure for normal and emergency situations, and the rebuilding of villages in cities are progressing rapidly. These projects, as they advance vigorously and systematically, will not only address pressing housing and living concerns for the people but also stimulate investment and consumption related to real estate, fostering the sector's healthy development.

China Daily:

Recently, various international and business institutions have raised their expectations for China's economic growth, saying that China will remain the largest contributor to the global economic growth engine. What is your perspective on this, and what trends do you anticipate for China's economy in 2024? Thank you.

Kang Yi:

Thank you for your question. The outlook for China's economic trajectory in 2024 is a matter of significant interest to everyone. 2024 marks the 75th anniversary of the founding of the People's Republic of China and is a crucial year for implementing the country's 14th Five-Year Plan (2021-2025). When forecasting this year's economic trends, it's crucial to acknowledge the potential challenges and difficulties. However, the predominant factors will lean towards favorable conditions and advantages. The fundamentals underpinning China's long-term growth remain unchanged, with factors supporting high-quality development accumulating and increasing. Therefore, we predict that China's economy will continue to rebound and improve in 2024, driven by five favorable conditions:

Firstly, positive momentum in economic growth. In the four quarters of 2023, GDP exhibited positive year-on-year and quarter-on-quarter growth, expanding quarter by quarter. This upward trend is quite favorable. In addition to the statistical accounting of economic aggregates, the NBS also monitors and compares various physical indicators. From the perspective of physical indicators, the absolute volumes of metrics such as electricity consumption, output of major industrial products, investment, and import-export significantly surpassed 2019 levels. Some physical volume indicators, mainly associated with the output indicators of the real estate-related sector, were lower than the pre-pandemic levels in 2019, as we mentioned earlier. This also indicates an overall improvement in our economic performance. International organizations have raised their forecasts for China's economic growth, with the International Monetary Fund increasing their predicted growth by 0.4 percentage point and the Organization for Economic Cooperation and Development raising theirs by 0.1 percentage point. This indicates optimism in the international community regarding China's economic development prospects in 2024.

Second, the Chinese economy has enormous resilience. Our country boasts a strong industrial foundation, being the only nation that possesses all industrial categories as classified by the United Nations. The complementary capabilities and integrated advantages of our industries remain prominent. The added value of our manufacturing sector accounts for nearly one-third of the world's total, and our goods exports make up approximately one-seventh of the global share. Meanwhile, our country's infrastructure networks, including transportation and communications, are becoming increasingly sophisticated. Weak links in areas such as education and healthcare are continuously being reinforced, and the supply quality of factors such as talent and funding is significantly improving. The assurance capabilities in key areas such as food and energy security, as well as industrial and supply chains have been greatly improved. These efforts have enhanced the resilience and flexibility of our country's economic development, providing the confidence for sustained and far-reaching economic stability.

Third, China's high-quality development is vibrant and dynamic. With new industries witnessing rapid growth, emerging formats displaying positive signals, accelerated nurturing of new models, constant optimization of economic structures, and ongoing upgrading of driving forces, there is an anticipated release of potential to further stimulate economic development. In 2023, the added value of the service industry accounted for 54.6 percent of the gross domestic product (GDP), contributing to economic growth with a rate surpassing 60 percent. Investment in the upgrading of manufacturing technologies increased by 3.8 percent, and high-tech industry investment grew by 10.3 percent, surpassing the overall growth rate of fixed asset investment. More importantly, China is consistently promoting innovation-driven development. The Chinese economy has been growing bigger and stronger as it accelerates the cultivation of new productive forces.

Fourth, China's reform and opening up has yielded substantial economic benefits for enterprises. Our country has upheld and further improved the basic socialist economic systems and worked unswervingly both to consolidate and develop the public sector and encourage, support and guide the development of the non-public sector. China has intensified its endeavors to establish a national unified market, advanced the development of high-standard market systems, and enhanced the business environment so as to create a favorable competitive environment for various types of enterprises. All these efforts are conducive to further stimulating the enthusiasm and creativity of different entities, including foreign-funded enterprises. In the first 11 months of 2023, the year-on-year increase in the number of newly established foreign-invested enterprises reached 36.2%, consistently unleashing the dividends of opening up. 

Fifth, China boasts ample room for implementing macroeconomic policies. The policy effects introduced in 2023, such as issuing additional national bonds, tax reduction, fee reduction, and adjustments to reserve requirements and interest rates, will continue to unfold throughout this year. This year, there will also be further optimization of some new measures in reserve. The combined efforts of these new incremental measures and existing policies will provide strong support for the stable operation of the economy. Currently, our country maintains a low level of government debt and inflation rate. The policy toolkit is continually being strengthened, providing considerable flexibility in fiscal, monetary, and other policies. There are conditions and room to vigorously implement macroeconomic policies.

Although we will likely encounter some difficulties and challenges in promoting the sustained recovery and improvement of the economy in 2024, the recent Central Economic Work Conference thoroughly analyzed those issues and proposed specific measures to address those difficulties and challenges. We must comprehensively implement the deployment of the Central Economic Work Conference, and continuously transform development advantages into development momentum. This year, the Chinese economy is certain to forge ahead despite difficulties and challenges, and achieve both effective qualitative improvements and reasonable growth. Thank you.

The Paper.cn:

In 2023, while the total retail sales of consumer goods showed a gradual recovery trend, China still faces the challenge of insufficient demand. What's your assessment of China's consumption market performance in 2023? Additionally, what are your expectations for 2024, and do you anticipate a sustained consumption recovery? Thank you.

Kang Yi:

Thank you for your questions. The first question pertains to the performance of China's consumption market in 2023, while the second one refers to expectations for the consumption market in 2024.

Please allow me to first introduce the performance of the consumer market in 2023. Generally speaking, it displayed an encouraging rebound momentum last year. In the previous three years, the consumer market was severely impacted by the COVID-19 pandemic, with significant restrictions on contact-and-gathering-based consumption. Since China optimized its pandemic response measures, the country's economic and social operations have returned to normal, and the consumption sector has experienced a positive rebound trend. Consumption, featuring numerous hotspots and highlights, became an important driving force in boosting the entire year's economic recovery. There were four notable characteristics. First, the scale of consumption reached a new high. In 2023, the total retail sales of consumer goods hit a record high to more than 47 trillion yuan. Second, consumption once again became the main force in promoting economic growth. In 2023, final consumption expenditure contributed 4.3 percentage points to the economic growth rate, up 3.1 percentage points year on year. It constituted 82.5% of economic growth, an increase of 43.1 percentage points year on year. This signifies that the fundamental role of consumption has become more significant. Third, services consumption recovered rapidly, another highlight of the consumption rebound. The retail sales of services in 2023 grew by 20% over the previous year, 14.2 percentage points faster than the retail sales of goods. The per capita consumption expenditure on services increased by 14.4%, accounting for 45.2% of per capita consumption expenditure, 2 percentage points higher than the previous year. Fourth, the structure of household consumption continued to upgrade. Thanks to improved living standards and steadily increasing incomes, the country's household consumption structure is currently in a period of rapid upgrading.

We predict that consumption will maintain decent growth in the next stage since there are a number of favorable conditions to support its recovery. The favorable conditions are as follows: First, the consumption potential is still vast. China's super-large market, with a population of over 1.4 billion, the coordinated development between urban and rural areas, the steady advancement of urbanization, and the upgrading of the consumption structure, all provide broad space for consumption growth. Additionally, the consumption potential in the medical and healthcare sectors is likely to be further unleashed. Second, the foundation of consumption is solidified. Income is both the precondition and the foundation of consumption. As the employment situation generally improves amid economic recovery, residents' incomes are likely to maintain steady growth, providing a solid foundation for the enhancement of people's consumption capacity. Third, bright spots in consumption continue to emerge, including digital consumption, green consumption, health consumption, entertainment consumption, as well as consumption in smart homes, tourism, sports events, and "China-chic" products. All of these are continually improving the quality and expanding the scale of the consumption market. Fourth, relevant policies have been initiated to stimulate consumption. Local governments and departments continuously prioritize recovering and expanding consumption. Policy incentives have been rolled out to stabilize and expand traditional consumption, cultivate new consumption, and improve the consumption environment, playing a positive role in stabilizing the consumption market and promoting consumption recovery. Overall, we remain optimistic about the consumption trend in 2024. Thank you.

21st Century Business Herald:

My question concerns the fifth national economic census. China formally commenced its fifth national economic census on Jan. 1, 2024. What is the current progress? What innovations does this census feature compared to the previous four, and how is its quality guaranteed? Thank you.

Kang Yi:

Thank you for your questions. The fifth national economic census is a significant survey of the country's overall situation and strength, conducted as the Chinese people embark on a new journey in a new era. It will determine the economic background of our country and keep track of the progress of high-quality development. At present, the unit inventory survey has been successfully completed, and the census has entered the stage of orderly implementation since the first day of this year. On Jan. 3, Chinese Vice Premier Ding Xuexiang set clear requirements for the ongoing census during an inspection in Beijing where he guided on-site registration of census and visited staff members at the community level. The related work is currently being promoted in an orderly manner. The registration part of the census, planned to be conducted from January to April, is of great significance for the entire census since it is vital to acquire high-quality economic data. 

The key innovations of the fifth national economic census primarily focus on supporting high-quality development, enriching the content, and introducing new methods. The fifth national economic census will comprehensively examine the development status, layout, and efficiency of China's secondary and tertiary industries. Building on this, we will expand the scope of statistical survey, enrich its content, and improve its system. These steps aim to foster a statistical monitoring system with high-quality development. The innovations include the following three aspects:

First, this is the first time we've carried out an input-output survey in a coordinated way. Previously, input-output surveys and economic census were conducted separately. The fifth national economic census combines these two, facilitating better data integration of both economic aggregates and structures.

Second, we will further improve the statistics of the "three new" economy. The newly added digital economy survey will more accurately depict the digitalization of China's economic development. The survey on the platform economy will be conducted in a systematic way, laying the groundwork for identifying the development of new industries, new business formats and new business models.

Third, the methods have been innovated. We have continued to improve the use of departments' administrative records, introduced a self-reporting method for collecting census data, developed a mobile mini-program for data collection for the first time, and established an electronic ledger for input-output statistics for the first time, improving the efficiency of the census.

The quality of data is the fundamental standard for determining the success of the census. Throughout the process, we will attach great importance to data quality, implementing a series of measures to ensure its integrity.

First, we have regulated data collection. This time, the census will combine on-site collection by enumerators, self-reporting and data submitted by departments, which will strictly control human interference in the data collection process to ensure the quality of the source data.

Second, we will use a variety of methods for data review and check. The data will be reviewed as soon as it is collected. We will comprehensively use big data and various analysis methods to carry out data review and verification, and conduct on-site inspections in a timely manner. After the census registration is completed, the economic census office will also organize another round of sampling check to comprehensively inspect the data quality.

Third, we will resolutely investigate and punish any instances of census falsification. We will conduct the census in accordance with the law, firmly resist all forms of interference with census data, strengthen examinations of statistical law enforcement, incorporate the fifth national economic census into our statistical supervision, punish any violation of law and discipline as soon as it is exposed, and hold the responsible parties accountable in accordance with the law and regulations.

At present, there are more than 2.1 million enumerators (including surveyors and assistants) who are going into businesses and communities to complete data collection, and the data is being reported in an orderly manner.

Here, I would like to thank all the census respondents for their support and the hard work of the census workers. I also hope that friends from the media will continue to support, report on, and supervise the census so we can jointly deliver a satisfactory report and ensure the high-quality execution of the fifth national economic census. Thank you.

Shou Xiaoli:

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

Cover News:

Recently, there have been media reports stating that China's total electricity consumption and power generation differed by 294.6 billion kilowatt-hours in the first 11 months of 2023. What are the reasons behind this data discrepancy? Thank you.

Kang Yi:

Thank you for your question. We have noted the discussions in the media regarding the data discrepancy between electricity consumption and power generation. Power generation and electricity consumption are two important indicators that reflect the operation of the power sector. The data discrepancy during the January-November period, as mentioned by the reporter, is primarily due to the distinct scopes of these two indicators. One represents the total electricity consumption across the country, while the other represents power generation from industrial enterprises above designated size. In addition to industrial enterprises above designated size, with the rapid development of solar and wind power, some small-scale industrial enterprises, residential buildings and commercial establishments also generate electricity. However, the electricity generated by these entities is not included in the power generation data of industrial enterprises above designated size during the January-November period.

To help you better understand, let me explain a little about these two indicators. They differ in terms of surveyed subjects, statistical standards and coverage. First, they have different statistical standards. Total electricity consumption is calculated from the perspective of electricity users, while power generation from industrial enterprises above designated size is calculated from the perspective of electricity suppliers. The scopes of these two statistics are different. Specifically, total electricity consumption represents the overall electricity usage, including both industrial and residential consumption, as well as self-consumption by power plants and line losses. On the other hand, the statistics for power generation from industrial enterprises above designated size only consider the electricity generated by industrial enterprises with annual main business revenue of at least 20 million yuan. Therefore, it does not include power generation from smaller industrial enterprises below this size, and does not represent the overall electricity generation across all sectors.

Second, the data discrepancy is partly due to the distributed generation of power. In recent years, China has seen rapid development in widely dispersed and relatively small-scale distributed solar and wind facilities, and a significant portion of them are distributed among residential properties, businesses and some industrial enterprises below designated size. These smaller power generation facilities do not meet the statistical standards for industrial enterprises above designated size, and some are even owned by businesses and residential properties, so they are not included in the monthly statistics of power generation from industrial enterprises above designated size. However, they will be included in the country's total power generation. As you know, our data is usually released in the middle of the following month. Therefore, the smaller-scale distributed power generation, scattered across various regions, will be included in the annual statistics, and the country's total power generation capacity will be released in the annual statistical reports. Generally speaking, power generation from industrial enterprises above designated size accounts for approximately 95% of the country's total electricity generation. There have been fluctuations recently. The country sees an increase in power generation from enterprises below designated size, while that from those above designated size is gradually decreasing. The decrease is not significant, and this proportion roughly represents the current situation. When talking about monthly power generation, it is essential not to overlook the mention of "industrial enterprises above designated size." Statistical indicators are rigorous, and it is important for users to pay attention to the meaning and scope of these indicators when utilizing them, thus enabling more accurate data usage. Thank you.

Southern Metropolis Daily:

I would like to ask about the employment situation in 2023. Have the targets and tasks been accomplished? Also, the number of graduates from universities and colleges in 2024 is expected to reach a new high. What can we expect in terms of employment trends? Thank you.

Kang Yi:

Thank you for your questions. Employment is also a matter of great concern to everyone because it is the most important livelihood issue. The CPC Central Committee and the State Council have consistently attached high importance to employment, taking the stability of employment to a strategic level and considering it comprehensively. All regions and departments have prioritized employment, optimizing and adjusting policies and measures to stabilize employment. In the past year, we have made every effort to stabilize the overall employment situation and the employment situation has improved. There have been several notable changes.

First, the surveyed unemployment rate has decreased, and new employment continues to increase. On a quarterly basis, the average surveyed urban unemployment rates across the country were 5.4%, 5.2%, 5.2%, and 5.0%, respectively, indicating a noticeable improvement in employment trends. From January to November, the number of new urban employment was 11.8 million, with an increase of 350,000 people compared to the same period last year.

Second, there has been strong employment support for key and vulnerable groups. A series of measures to stabilize and expand employment have been implemented effectively. The results of targeted assistance for employment difficulties among various groups, including migrant workers, youth, and individuals facing employment challenges, have been prominent. In 2023, the total number of migrant workers reached 297.53 million, an increase of 1.91 million from the previous year. The average surveyed urban unemployment rate for rural migrant workers decreased by 0.7 percentage point compared to the previous year, reaching 4.9%. From January to November, 4.75 million unemployed individuals in urban areas found new jobs, and 1.56 million individuals facing employment difficulties secured jobs.

Third, the scale of employment for individuals who have been lifted out of poverty has maintained a steady increase. Various regions and departments have fully utilized mechanisms such as east-west labor cooperation, paired assistance, and targeted support to provide targeted assistance to key poverty-stricken counties and for people relocated from inhospitable areas. As a result, the employment of people who have been lifted out of poverty has steadily increased. As of the end of November 2023, the number of employed individuals from poverty-stricken backgrounds reached 32.94 million, exceeding the target of 30 million.

The overall assessment of this year's employment situation is that there is still pressure, and structural contradictions in employment for certain groups and industries may remain prominent. However, with the recovery of the economy and the acceleration of industrial transformation and upgrading, the positive factors for stable employment are also accumulating. It is expected that China's employment situation will remain stable. There are several reasons for this.

First, the expansion of the economic scale leads to an increase in employment. Economic growth is the foundation for stable and expanded employment. In recent years, the continuous expansion of China's economic standing has been the key driver of employment growth. It is expected that the increment created by China's economy in 2024 will be greater than last year, which will provide strong support for expanding employment. Second, the population size exiting the labor market in 2024 will be larger than the population entering the labor market, providing more employment opportunities for job seekers. Third, upgrading the industrial structure expands employment capacity. Compared to other industries, the service industry, which has a higher labor intensity, has obvious advantages in job creation. Since last year, the service industry has shown good recovery momentum, and its share in GDP has been increasing. The share of the service sector in GDP has already exceeded pre-COVID-pandemic levels, and the employment-driving effect in industries such as catering, transportation, wholesale, and retail is relatively obvious. Looking ahead to this year, service consumption will be active, and the growth of the service industry will continue to be one of the main forces driving employment. At the same time, the vigorous development of new industries, new formats, and new business models has created many new job demands, which also contribute to expanding employment opportunities and improving employment quality. Fourth, stable employment policies continue to play their due roles and achieve the desired effect. The Central Economic Work Conference has also made arrangements for this, particularly emphasizing the need for policies that are conducive to stabilizing expectations, stabilizing growth, and stabilizing employment. Localities and departments will prioritize employment and increase support for key groups, while the release of policy dividends is expected to continue to provide a strong guarantee for employment stability. Thank you.

Shou Xiaoli:

Thank you to the two speakers, and thank you to all the participating journalists. Today's press conference ends here. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Liu Sitong, Wang Yanfang, Xu Kailin, Yang Xi, Wang Ziteng, Li Huiru, Li Xiao, Zhang Junmian, Liu Jianing, Huang Shan, Wang Qian, Qin Qi, Yuan Fang, Lin Liyao, Zhou Jing, Zhang Tingting, Liu Caiyi, Wang Wei, Zhang Rui, 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. 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:

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

Date:

Jan. 12, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data. 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 imports and exports in 2023 and answer your questions.

First, I will give the floor to Mr. Wang Lingjun for his introduction.

Wang Lingjun:

Friends from the media, ladies and gentlemen, good morning. Welcome to this press conference. Let me first inform you about China's imports and exports in 2023, and then my colleague and I will answer your questions.

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). It also witnessed China's economic recovery and growth after achieving a smooth transition in the three-year COVID-19 response efforts. Guided by the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China has navigated external pressures, surmounted internal challenges, deepened reforms in a comprehensive way, and intensified macro-control efforts. The economy has sustained a robust rebound, with solid progress made in high-quality development. The import and export of goods has exceeded expectations, achieving the objectives of promoting stability and enhancing quality. According to customs statistics, China's total imports and exports reached 41.76 trillion yuan ($5.88 trillion) in 2023, up 0.2% year on year. Specifically, exports grew 0.6% year on year to 23.77 trillion yuan, while imports edged down 0.3% to 17.99 trillion yuan. A detailed analysis reveals six key characteristics:

First, foreign trade operations maintained overall stable, with a notable improvement trend in the fourth quarter. The scale of import and export has grown consistently each quarter, surpassing 10 trillion yuan in the second, third and fourth quarters after reaching 9.69 trillion yuan in the first quarter. The fourth quarter demonstrated increasing strength month by month, achieving year-on-year growth rates of 0.8%, 1.3% and 2.8% in October, November and December, respectively. The country's foreign trade reached a record monthly high of 3.81 trillion yuan in December.

Second, business entities exhibited ample vitality, and the leading role of private enterprises was strengthened. In 2023, the number of foreign trade entities with import and export records exceeded 600,000 for the first time. Among them, 556,000 were private enterprises, collectively contributing 22.36 trillion yuan to total imports and exports, marking a 6.3% increase. This accounted for 53.5% of the total import and export value, reflecting an increase of 3.1 percentage points. During the same period, foreign-invested enterprises registered 12.61 trillion yuan in imports and exports, accounting for 30.2% of the country's total foreign trade; the imports and exports of State-owned enterprises reached 6.68 trillion yuan, making up 16% of the country's total.

Third, trading partners diversified and witnessed common progress, with Belt and Road Initiative (BRI) partner countries taking up a growing share. In 2023, China's trade with countries participating in the BRI climbed 2.8% year on year to 19.47 trillion yuan, accounting for 46.6% of China's total foreign trade, representing an increase of 1.2 percentage points from last year. Imports and exports with Latin America and Africa reached 3.44 trillion yuan and 1.98 trillion yuan, up 6.8% and 7.1%, respectively. With a rebound in the fourth quarter, the country's trade with the EU and with the U.S. reached 5.51 trillion yuan and 4.67 trillion yuan in 2023, accounting for 13.2% and 11.2% of China's foreign trade, respectively.

Fourth, our products demonstrated solid competitiveness, with a vibrant and active export momentum. In 2023, China's exports of mechanical and electrical products reached 13.92 trillion yuan, marking a 2.9% increase and constituting 58.6% of the total export value. Notably, the export of labor-intensive products reached 4.11 trillion yuan, representing 17.3% of the total export value. In electromechanical products, the combined exports of new energy vehicles (NEVs), lithium-ion batteries and solar batteries — commonly known as the "new three" — surpassed 1.06 trillion yuan. This milestone marks the first time their export value has exceeded the trillion-yuan threshold, showcasing a significant growth of 29.9%. Ship and household appliance exports also increased 35.4% and 9.9%, respectively. This export momentum reflected a shift from "Made in China" to "Created in China."

Fifth, domestic demand continued its recovery, with orderly expansions in the imports of bulk commodities and essential goods. In 2023, imports of energy, metal ores and grain increased 15.3%. Among them, the imports of energy products such as crude oil, natural gas and coal grew 27.2% to 1.158 billion metric tons; metal ores like iron and aluminum increased 7.6% to 1.458 billion metric tons. Agricultural product imports amounted to 1.64 trillion yuan, reflecting a 5% increase. Additionally, imports of consumer goods such as textiles, clothing, shoes and hats increased 5.6%, and imports of jewelry and watches climbed 63% and 17.2%, respectively.

Sixth, China made steady progress in high-level opening up, and new platforms and business models developed vigorously. In 2023, the number of China's free trade pilot zones expanded to 22, with a total import and export volume of 7.67 trillion yuan, up 2.7% year on year and accounting for 18.4% of the total imports and exports value. The construction of the Hainan Free Trade Port progressed further, marking its third consecutive year of double-digit growth in annual imports and exports. According to preliminary estimates, China's cross-border e-commerce logged total imports and exports of 2.38 trillion yuan in 2023, up 15.6% year on year.

In general, China's foreign trade in the past year weathered storms and achieved hard-won results of steady growth in scale and improved quality in development. When I first saw the latest released data, I was filled with emotion: pride in China's economic resilience, respect for those involved in the country's foreign trade, and confidence in China's future development. 

Looking ahead to 2024, we need to overcome some difficulties and make more efforts to promote the stable growth of foreign trade in an increasingly complex, severe, and uncertain external environment. Meanwhile, we should recognize that the trend of economic recovery and long-term growth has not changed, and factors supporting high-quality development are accumulating. As policies gradually begin to take effect and high-level opening up advances, China will foster new drivers of trade growth, further strengthen foreign trade and investment, and consolidate the foundations for steady growth, improved quality, and increased benefits from imports and exports.

Customs bears the duty of safeguarding borders and promoting development. We will uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, adhere to the important instructions of General Secretary Xi Jinping, and follow the guiding principles in his reply letter to all customs staff at the Khunjerab Pass. We will act on the decisions of the Central Economic Working Conference to optimize the port business environment, facilitate cross-border trade, and accelerate the development of intelligent customs and carry out the "Smart Customs, Strong Nation" initiative. With these efforts, we will strive to advance the modernization of socialist customs with Chinese characteristics, and contribute to the consolidation and reinforcement of the momentum of economic recovery. Thank you.

Shou Xiaoli:

Thanks, Mr. Wang, for your introduction. Now, we will open the floor for questions. Please state the name of your media organization before asking questions.

CCTV:

China's foreign trade achieved positive growth in 2023, surpassing expectations. What are the main reasons behind this? How did foreign trade contribute to the overall economy? Also, how do you evaluate China's foreign trade performance in the global context? What are your projections for China's foreign trade in 2024? Thank you.

Wang Lingjun:

Thank you. This is also the topic I would like to share with you. 

In 2023, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's economy overcame challenges and progressed steadily. Production and supply improved, market demand continued to rise, and the economy maintained a positive trend of recovery. As for foreign trade, imports and exports kept growing, providing a solid support for the economy. China is expected to remain the world's largest trader of goods for the seventh consecutive year. The following are some of the factors behind the stable growth of foreign trade:

First, policies to stabilize foreign trade continued to deliver in 2023. Local governments and departments across China carried out the work arrangements of the CPC Central Committee and the State Council on stabilizing and improving the quality of foreign trade. They took some solid measures to stabilize the scale and optimize the structure of foreign trade, expand the private economy, and accelerate the integrated development of domestic and foreign trade. Customs also introduced a number of targeted and specific support measures to optimize the business environment, advance the integrated development of the Beijing-Tianjin-Hebei region, and promote the sustained and high-quality development of processing trade. Various policies were implemented effectively, delivering benefits, stabilizing foreign trade, and stimulating new drivers.

Second, China boasts a vast market and competitive advantages in production capacity. Our country has the largest middle income group and the most promising market in the world. In 2023, China imported over 5 trillion yuan in bulk commodities, nearly 3 trillion yuan in electronic components, and almost 2 trillion yuan in consumer goods, providing a broad market space and cooperation opportunities for companies across the world. China's manufacturing industry ranks first in the world in terms of size. In 2023, China exported 23.51 trillion yuan in products from the manufacturing sector. As I mentioned before, China's total exports amounted to 23.77 trillion yuan, and products from the manufacturing sector reached 23.51 trillion yuan. From portable chargers to NEVs, China is able to meet the needs of different markets. The "China-Chic" boom has also helped more products go global, winning hearts of many consumers around the world.

Third, we should give appreciation to the genuine efforts made by entities engaged in foreign trade. In 2023, the number of foreign trade entities with export and import records reached 645,000, hitting a new record high. In response to the changes in international demands, foreign trade entities have risen to the challenge, forged ahead, actively expanded the market, attracted orders, and constantly opened up new space for development.

Regarding prospects of this year's foreign trade, I made a brief introduction just now. Hereby, I would like to elaborate more.

It's obvious that external demand remains subdued. Many international institutions have predicted that this year the global economic and trade growth will be below pre-pandemic levels. The rise of protectionism, escalating geopolitical conflicts, and many other uncertainties, such as the recent block of shipping lanes in the Red Sea, will hinder the development of trade.

However, we have to note that the Chinese economy has enormous resilience, great potential, and strong vitality. With strength in mobilizing resources for large tasks, China has a super-large market and strong production capacity that have been accumulated for a long time, as well as a number of pioneering and enterprising foreign trade entities. Therefore, China's comprehensive competitive advantages in foreign trade remain prominent, with new drivers of foreign trade gathering at a faster speed. Generally speaking, the favorable conditions for the development of foreign trade outweigh the unfavorable factors. According to a recent survey, more than three-quarters of China's key import and export enterprises expected their imports and exports to remain stable or achieve growth this year. We have the confidence, the conditions, and the ability to promote the development of foreign trade this year. Thank you.

Shanghai Securities News: 

We noticed that the growth rate of China's foreign trade slowed down significantly in 2023. I would like to ask, what's your opinion on China's export last year? How do you see China's export this year? What are your expectations in this regard? Thank you.

Wang Lingjun:

The achievements in exports last year were hard-won. It's fair to say that China's export fared well last year. Mr. Lyu will answer this question.

Lyu Daliang:

Thank you for your questions. Mr. Wang has introduced the general situation of China's foreign trade. I will elaborate on the country's exports performance.

Over the past year, the world economic recovery remained feeble, the overall performance of global trade stayed sluggish, and the weakness of external demand had a direct impact on China's exports. Judging from figures, the growth rate of China's exports is lower than that of previous years. However, we should also notice that China's exports have reached a new high on a high base, not only achieving a reasonable growth in volume, but also maintaining overall stability. It also achieved a qualitative and effective improvement in terms of growth momentum and regional dynamics, demonstrating strong resilience and comprehensive competitiveness. Specifically, it can be characterized by the following four aspects.

First, China's share of global exports remains stable at a high level, and the competitive advantage of China's manufacturing stay solid. According to the latest statistics released by the World Trade Organization, the international market share of China's exports is expected to remain at a high level of about 14% in 2023. Market share is a key indicator of market competitiveness. China's share stayed stable in 2023. Figuratively speaking, the "cake" did not get smaller, and our overall competitiveness remains solid.

Second, the export of independent brands has significantly increased, and the global influence of Chinese brands has expanded. In 2023, the export of products from our country's independent brands grew by 9.3%, with their share in the total export value increasing by 1.7 percentage points. In terms of the market, Chinese brand products have been exported to more than 200 countries and regions worldwide. Chinese brands are now present in every corner of the world.

Third, significant progress has been made in building a modernized industrial system, and the proportion of exports from the equipment manufacturing industry has increased. In 2023, the export value of the equipment manufacturing industry, reflecting industrial support and integration capabilities, reached 13.47 trillion yuan, up 2.8%. Its share in China's total exports increased to 56.6%. Notably, our country's automotive and shipbuilding industries have shown strong momentum, with record-breaking automobile production and sales volumes. China holds a leading position worldwide in terms of the quantity of completed ships, quantity of newly accepted orders and quantity of already placed orders . The export of products related to this sector has increased by 66%, contributing to a 1.5 percentage points rise in the overall growth of China's exports.

Fourth, coordinated regional development is advancing in an orderly manner, and a new pattern of regional openness is forming quickly. In 2023, the eastern region accounted for nearly 80% of China's total exports, with a growth rate 0.6 percentage point higher than the overall rate, making significant contributions to stabilizing the export market. China's northeast, the fastest-growing region, experienced export growth of 6.5%. The comprehensive revitalization of the northeast has yielded new results in foreign trade. Meanwhile, the central and western regions continued to play a positive role in undertaking the phased trans-regional relocation of processing trade and in promoting the sustained and healthy development of processing trade.

Regarding the export situation for this year, Mr. Wang provided some information earlier. Overall, the continued sluggishness of external demand remains the main factor constraining China's export growth. At the same time, factors such as protectionism and unilateralism also impact our exports, and we will face various difficulties. However, viewed from a different angle, thanks to policy support, industrial strengths, and the collective efforts of various stakeholders, China's exports are poised to further solidify their comprehensive competitive advantage. We are confident about our exports.

Thank you.

Market News International (MNI):

What is the main reason for the significant increase in China's automobile exports in 2023, and will this high growth momentum continue for this year? Thank you.

Lyu Daliang:

Thank you for your questions. In recent years, with the continuous advancement in building our country's modernized industrial system, the automotive industry in China has consistently pursued technological innovation and established complete industry and supply chains. Automobile production and sales in China have continually reached new highs, and correspondingly, the export scale has expanded. In 2021 and 2022, China's automobile exports surpassed 2 million and 3 million vehicles, respectively. In 2023, exports exceeded 5 million, reaching 5.221 million, representing a year-on-year increase of 57.4%.

It is worth noting that China is vigorously promoting the green and low-carbon transformation and upgrade of its automotive industry, with the export of NEVs adding a distinct bright spot to the sector. Currently, for every three cars exported from China, one is an electric passenger vehicle. With a total annual export of 1.773 million units, representing a 67.1% increase, this significantly contributes to the global green and low-carbon transformation.

Looking ahead, we believe that China's automotive industry still possesses strong overall competitive advantages and can continue to provide more and better innovative products to meet the needs of global consumers. Thank you.

Hong Kong Bauhinia Magazine:

In 2023, what supportive measures did the GACC introduce to stabilize foreign trade, and what achievements were made? This year, what new measures will the GACC implement to stabilize the fundamentals of foreign trade in line with the guiding principles of the Central Economic Work Conference? Thank you. 

Wang Lingjun:

Thank you for your questions. Last year, customs implemented various national policies and measures to stabilize foreign trade, focusing on promoting stability, enhancing quality and addressing enterprises' concerns. Within the customs' realm of responsibility, we introduced supportive measures including 16 ones to improve the business environment. Customs offices nationwide, in line with local conditions, refined nearly 1,000 specific measures, including national measures issued by the GACC that apply to all customs offices in China, regional measures tailored for specific economic regions, local measures released by individual customs offices that address issues within their jurisdiction, measures addressing different types of trade, measures addressing different regulatory zones, and measures addressing specific export products. This comprehensive, multi-layered approach spanned various perspectives and timeframes, creating a three-dimensional policy support framework. Based on our on-site research and feedback, improvements in the business environment, reductions in clearance times and the optimization of regulatory methods have been well-received by business entities.

First, expedited customs clearance for increased convenience has been implemented. Convenient measures for departure confirmation cover the Yangtze River Basin, saving one to two days in transit time. For imported iron ore, a streamlined supervision approach and seamless customs clearance have been adopted, allowing enterprises to achieve "inspection completion upon unloading," reducing clearance time by 65%. The green lanes for fresh and perishable goods have significantly reduced inspection time for agricultural and food products to less than three hours. The "cloud issuance" mode for export inspection and quarantine certificates has reduced the time for application from one to two days to as fast as 10 minutes. The controlled inspection mode for high-tech goods, such as vacuum packaging, can shorten clearance time by approximately 80%. The significance of these time reductions, whether a day or an hour, can be quantified as tangible benefits for enterprises, emphasizing the value of convenience in every day, hour and minute. 

Second, we have aided enterprises in overcoming difficulties to boost vitality. Stimulating the enthusiasm and creativity of businesses is a fundamental aspect of stabilizing foreign trade. In 2023, we released numerous targeted measures to assist enterprises in reducing burdens and increasing efficiency, thereby further igniting business vitality. For instance, we expanded the scope of the voluntary disclosure policy, resulting in nearly 200 million yuan in legally waived late tax payment fines for businesses throughout the year. We also introduced an objective quantification and allocation plan for inland waterway shipping fees, saving businesses nearly 100 million yuan in costs annually. The pilot exemption of submission of declaration forms and invoice information has improved the efficiency of tax refund process for enterprises. We intensified efforts in helping specialized and new enterprises maintain good credit records, helping them to overcome trade barriers and strengthen order management and market expansion.

Third, we have optimized services to enhance momentum. Vigorously nurturing new foreign trade dynamics and creating new drivers of growth for foreign trade are crucial aspects of customs' policies to stabilize foreign trade. Last year, we continued to optimize the business environment at ports, carried out policy interpretations by customs heads, and introduced 23 measures to promote the comprehensive reform for high-quality development of integrated bonded areas . We improved measures for return of goods in cross-border e-commerce, supported various modes of LCL (less than container load)exports in cross-border e-commerce and general trade, and actively supported the healthy and regulated development of market procurement and trading between border residents .

This year, customs will resolutely implement the spirit of the Central Economic Work Conference, continue to ensure the implementation and effectiveness assessment of existing policy measures, and focus on addressing difficulties, challenges and bottlenecks for enterprises. We will explore, prepare and timely introduce more targeted and effective new measures to accelerate the cultivation of new driving forces for foreign trade growth, stabilize the fundamentals of foreign trade and foreign investment, and contribute to consolidating and enhancing the positive economic recovery trend.

Thank you.

Beijing Youth Daily:

Regarding private enterprises, as was just mentioned in the overall situation overview, the pivotal role of private enterprises has strengthened, and their proportion in foreign trade has also increased. Could you please provide specific details on the positive changes in the import and export activities of private enterprises last year? Additionally, what has customs done to support the development of private enterprises? Thank you.

Wang Lingjun:

Thank you for your questions. Last year, the overall development of the private economy showed a stable and positive trend. In the field of foreign trade, private enterprises demonstrated remarkable performance in four aspects.

First, private enterprises have been China's largest foreign trade entities for five consecutive years. In 2023, imports and exports of private enterprises accounted for 53.5% of the country's total foreign trade value, contributing 3.2 percentage points to China's foreign trade growth. The number of private enterprises accounted for 86.2% of the total, hitting another record high. Their status as entities for stabilizing foreign trade has been further consolidated. 

Second, private enterprises have contributed 66.4% of domestic-owned brand product exports. Private enterprises have continuously promoted brand building, achieving tangible results in brand creation, brand management, and brand benefits to improve the popularity and reputation of the "Made in China" brand.

Third, private enterprises have contributed 68.1% of China's imports and exports of consumer products. The overall technological strength of private enterprises has continued to improve, and their share of high-tech consumer product exports has continued to grow year by year. They have played a leading role in imports of meat, edible aquatic products, vegetables, and fruits, and their role in serving people's livelihoods has become increasingly prominent. 

Fourth, private enterprises' imports and exports to economies involved in the Belt and Road Initiative increased by 9.2%, and imports and exports to traditional markets, such as the EU and the United States, increased by 2.3% and 2%, respectively. While continuing to explore emerging markets, private companies have remained resilient to traditional markets. 

Next, the GACC will attentively implement policies and measures of the CPC Central Committee and the State Council aimed at promoting the growth of the private sector and work unswervingly both to consolidate and develop the public sector as well as encourage, support, and guide development of the non-public sector. Focusing on market access, access to factors of production, fair law enforcement, and protection of rights and interests, we will pay visits to enterprises to enact policies , hear opinions, and solve problems to provide a good environment for private business, further stimulate their vitality, and strengthen the resilience of the private sector. Thank you. 

Bloomberg News:

I have a question about the Red Sea. You mentioned earlier that the issues in the Red Sea will affect China's exports and imports this year. Can you give us more details about your expectations for how the conflict in the Red Sea and the Suez Canal will affect Chinese trade, and what China will do to try to ameliorate the effects of this? Also, this morning the U.S. and UK started to attack the Houthis in Yemen. Do you think this is going to have a positive effect or will it make the situation even worse? Thank you. 

Wang Lingjun:

These are also problems we have been following up with and are concerned about. I invite Mr. Lyu to answer your questions. 

Lyu Daliang:

Thank you for your questions. As we all know, the Red Sea waters are important international freight lanes. The security and stability of the waters have great importance for global trade in goods and supply chains and are also critical to the interests of many enterprises around the world. Our customs is an important link between import and export chains, and we have been following up with the issue. At present, the regular sea passage has been affected to some extent, increasing unstable and uncertain elements on sea routes, global trade, and interests of enterprises. We are currently keeping an eye on it. If there are any relevant important updates, we will share them in due time. Thank you. 

The Paper.cn:

Jan. 1, 2024 marks the second anniversary of the launch of the Regional Comprehensive Economic Partnership (RCEP) agreement. Can you outline the trade that took place between China and RCEP members in 2023 and what key measures customs took to promote the RCEP work last year? Thank you. 

Wang Lingjun:

It is meaningful to review the results of RCEP on the occasion of its second anniversary. I invite Mr. Lyu to answer your questions. 

Lyu Daliang:

It has been two years since RCEP took effect. Over the past two years, costs of regional trade have been significantly reduced, industrial and supply chains are more closely linked, and trade links between RCEP members have become closer. According to statistics, trade between China and the 14 other RCEP member countries amounted to 12.6 trillion yuan ($1.77 trillion) in 2023, an increase of 5.3% compared to the period before the agreement came into effect in 2021. RCEP has continued to bring tangible dividends and benefits for member countries and enterprises. 

First, cooperation in industrial and supply chains has deepened. In 2023, China's exports to fellow RCEP member countries reached 6.41 trillion yuan, constituting 27% of its total exports. This marked a 1.1 percentage points increase from 2021. Notably, exports of equipment manufacturing expanded by 32.8%, contributing a 6.5 percentage points increase in its share of China's exports to other RCEP countries. Exports in lithium batteries, automotive components, and flat-panel display modules saw significant growth. In the same year, China's imports from other RCEP countries stood at 6.19 trillion yuan, accounting for 34.4% of the nation's total imports. Specifically, the import volume of energy products rose by 31.2% from 2021, comprising 32.4% of China's total energy product imports, a 2.5 percentage points increase.

Second, preferential tariffs have brought continuous benefits to related enterprises. RCEP , in conjunction with existing bilateral free trade agreements between China and other RCEP countries, allows companies to enjoy more favorable tariff terms. In 2023, relevant companies saved 2.36 billion yuan in taxes on 90.52 billion yuan of imports under RCEP, primarily in plastics and plastic products, machinery and parts, and organic chemicals, among others. They also saved 4.05 billion yuan in tax concessions on 270.07 billion yuan of preferential exports within RCEP, mainly including inorganic chemicals, clothing and clothing accessories, and plastics and plastic products, among others. Nationwide, 723 approved exporters independently issued 12,000 RCEP declarations of origin, amounting to a value of 10.18 billion yuan.

Over the past two years, the customs authority has steadfastly implemented the plans of the CPC Central Committee and the State Council regarding RCEP execution, maintaining high standards in customs procedures and trade facilitation. Additionally, it has bolstered international cooperation on animal and plant quarantine, as well as food safety, and ensured that the preferential rules of origin are effectively applied. Simultaneously, the customs authority has been attentive to the specific demands of enterprises, continuously improving the quality of public services provided within the RCEP framework.

Moving forward, we will strengthen international collaboration with customs authorities of other RCEP member countries. We will stay informed about the latest developments of the members and closely monitor the implementation of measures concerning trade facilitation and tariff preferences. Additionally, we plan to organize RCEP-related training to improve the overall execution standards of the RCEP agreement. This initiative aims to create new opportunities for the development of enterprises within the agreement and inject new energy into regional economic cooperation. 

Thank you.

21st Century Business Herald: 

Since last year, domestic demand has driven a steady recovery in consumption, yet imports have seen a slight decline. How should we interpret this situation? What are the expectations for imports this year? Furthermore, given the current volatility in international commodity prices, are there expected implications for China's future imports? Thank you.

Lyu Daliang:

Thank you for your questions. Now, let me provide a more detailed introduction regarding the import situation.

Import value is influenced by both import quantity and price. In 2023, China's import value experienced a slight decrease, with the import price dropping by 3.1% while the import quantity grew by 2.9%. In other words, the decrease in import value was due to the downward trend in goods prices. However, the rise in import quantity indicates a continued recovery in production and robust consumer demand in the country. Imports are essential in both domestic work and life, offering more opportunities for foreign companies to participate in the Chinese market.

Raw materials and key parts imports have increased to better satisfy domestic needs for steadily expanding production. In 2023, China's import quantities of crude oil, natural gas, and coal increased by 11%, 9.9%, and 61.8%, respectively. Imports of iron, copper, and aluminum ore rose by 6.6%, 9.1%, and 12.9%, respectively. Additionally, the import value of central processing components for computers, aircraft components, and audio-video equipment parts grew by 61.6%, 40.8%, and 11.5%, respectively. These imports have played a significant role in ensuring the safety and stability of the industrial and supply chains of the relevant domestic industries.

As for the import of consumer goods, this has enriched consumers' purchasing options. In 2023, China imported consumer goods such as specialty foods, maternity and baby products, and digital home appliances, with a total volume of 1.95 trillion yuan, an increase of 1.2%. In addition, China accelerated the fostering of import trade innovation demonstration zones and developed new formats and models such as cross-border e-commerce. According to preliminary statistics, China's cross-border e-commerce imports totaled 548.3 billion yuan in 2023, up by 3.9%. Convenient and flexible online shopping offers consumers broader and swifter access to imported goods.

China continues to expand its imports, and China's development is increasingly becoming an opportunity for the world to share. In 2023, China successfully hosted major exhibitions such as the China International Import Expo, the China International Consumer Products Expo, and the China Import and Export Fair, providing new opportunities for global businesses to enter the Chinese market. At the same time, China has continued to promote the entry of high-quality agricultural products and food. In 2023, imports of fresh durian and edible bird's nests from Vietnam, fresh pears from South Africa, dragon fruit from Ecuador, and avocados from Kenya showed a rapid growth momentum. This enables Chinese consumers to enjoy a greater variety of high-quality products from around the world, and China's large market is increasingly becoming a global market that is shared by all.

Regarding import trends for this year, China will try to expand domestic demand, stimulate potential consumption, and increase beneficial investments to create favorable conditions for further expanding imports. In addition, the advantage of China's huge market will continue to sustain import growth.

As for the impact of commodity prices on future imports, as I mentioned earlier, import volume is determined by both quantity and price. The current global supply and demand situation for commodities is complex, with many factors affecting both quantity and price trends. We will continue to monitor these factors closely. Thank you.

The Poster News APP: 

Last year marked the 10th anniversary of China's proposal of the Belt and Road Initiative. What are the characteristics of import and export trade between China and BRI partner countries? In addition, what new measures will China Customs take to promote the joint construction of the BRI? Thank you.

Wang Lingjun:

In October 2023, China successfully hosted the Third Belt and Road Forum for International Cooperation, during which President Xi Jinping announced eight major steps China would take to support high-quality Belt and Road cooperation. The joint construction of the BRI has entered a new phase of high-quality development. To mark the occasion, the GACC released the trade index between China and BRI partner countries. The index rose from 100 in 2013 to 165.4 in 2022, manifesting the achievements of trade between China and BRI partner countries over the past decade. In 2023, the trade between China and BRI partner countries continued to grow, maintaining a positive momentum. This is demonstrated in the three aspects as follows:

First, closer trade contacts. In 2023, China's trade with BRI partner countries reached 19.47 trillion yuan, growing by 2.8% year on year. This accounted for 46.6% of China's total foreign trade. Both the scale and proportion have reached the highest level since the launch of the BRI.

Second, smoother customs clearance. In 2023, China-Europe freight trains made 17,000 trips, transporting 1.9 million standard containers of cargo. This represents a year-on-year growth rate of 6% and 18%, respectively. The New Western Land-Sea Corridor transported 860,000 standard containers of cargo, increasing by 14%. Under the examination and release procedures by customs, the cargo transported through the China-Laos Railway reached 4.218 million tons, growing by 94.9%. The China-Laos Railway, a logistics "golden gateway" between China and Southeast Asia, is increasingly expanding its function. Fans of durian, for example, might have noticed that fruits from Southeast Asian countries became more abundant and fresh last year. This is attributed to the China-Laos Railway. After a direct fruit cold chain express train from Southeast Asia opened, fruit imports became smoother and more convenient. From Thailand to China's Kunming, the entire journey is conducted via a cold food chain, reducing the transportation period from five to seven days to just three days.

Third, mutual benefit and win-win cooperation have deepened further. Through trade cooperation, people's needs for a better life in various countries have been better met. China has imported fruits and dairy products from BRI partner countries and exported clothing and shoes. It has also actively supported the development of these countries' manufacturing and infrastructure sectors. In 2023, through foreign contracted projects, China's exports to BRI partner countries reached 86.1 billion yuan, marking an increase of nearly 30%.

Going forward, customs will adhere to the eight major steps announced by President Xi Jinping as the fundamental guideline. We will strengthen communication and coordination, advance cooperative mechanisms with corresponding departments of BRI partner countries, and implement the follow-up work of the signed cooperation documents on customs inspection and quarantine. We will deepen cooperation in areas such as port management, paperless plant quarantine certificates, and supply chain interconnectivity. This effort aims to facilitate trade security and smoothness with partner countries, and contribute to steady and sustained progress in high-quality BRI cooperation.

Thank you.

Shenzhen Satellite TV: 

Would you please provide an overview of China's imports and exports with ASEAN in 2023? What are your views on future trends? Thank you.

Lyu Daliang:

Thank you for your question. In 2013, President Xi Jinping proposed the establishment of a closer China-ASEAN community with a shared future. Through years of effort, economic integration between China and ASEAN has continued to deepen, and economic and trade cooperation has accelerated. In 2023, trade between China and ASEAN continued to grow. Let's take a closer look.

First, both sides are each other's largest trading partners. Since 2013, the average annual growth rate of trade between China and ASEAN has been 8.8%, which is 3.8 percentage points higher than China's overall average annual growth rate during the same period. In 2023, bilateral trade continued to grow, reaching 6.41 trillion yuan. ASEAN has maintained its position as China's largest trading partner for four consecutive years, and China has been ASEAN's largest trading partner for many years.

Second, the two sides' industrial and supply chains are further interconnected. China and ASEAN have leveraged their respective comparative advantages to deepen the integration and development of their industrial and supply chains. In 2023, China's imports and exports of intermediate goods with ASEAN reached 4.13 trillion yuan. ASEAN has remained China's largest trading partner for intermediate goods for many consecutive years. Cooperation between the two sides in industries such as green energy and consumer electronics continues to deepen. China's exports of lithium batteries and solar cells to ASEAN, as well as China's imports of audiovisual equipment components, have experienced rapid growth. At the same time, ASEAN is a major source of imports for China's agricultural and energy products. Almost all of China's palm oil imports come from Indonesia and Malaysia. Meanwhile, Indonesia and Myanmar are the largest sources of coal and tin ore imports for China, respectively.

Third, land border crossings for passengers and cargo are thriving. Following the shift in COVID-19 prevention and control strategies, the flow of passengers and cargo at land border ports has resumed in an orderly manner, leading to a significant increase in cross-border trade. The daily number of inbound and outbound personnel at Guangxi's Dongxing Port and Yunnan's Hekou Port exceeds 10,000 on average, restoring the bustling scenes of the past. In April 2023, the China-Laos Railway passenger service officially commenced, facilitating travel for people along the route. By the end of the year, customs had monitored and supervised 114,200 inbound and outbound personnel via the China-Laos Railway.

Looking to the future, as negotiations for the China-ASEAN Free Trade Area 3.0 accelerate, the scope of cooperation between the two sides will further expand, and bilateral trade will continue to maintain a positive development trend. In the next step, customs will implement various measures to facilitate customs clearance, steadily promote intelligent border port building along the China-Vietnam border, strongly support the high-quality development of the China-Laos Railway, actively support the construction of the New International Land-Sea Trade Corridor, and contribute to the greater development of China-ASEAN bilateral trade. Thank you.

Shou Xiaoli:

Everyone is very interested in the import and export situation, and many reporters are still raising their hands. Let's continue with the questions.

The Beijing News:

Last year, General Secretary Xi Jinping made a series of arrangements for coordinated regional development, and customs launched targeted measures such as 12 measures to support the coordinated development of the Beijing-Tianjin-Hebei region. What achievements have been made in this respect? From the perspective of foreign trade, what are the highlights of relevant regions across the country? Thank you.

Lyv Daliang:

Thank you for your questions. The GACC has resolutely implemented the decisions and arrangements of the CPC Central Committee on regional coordinated development, and regarded supporting and promoting regional coordinated development as an important leverage to serve high-standard opening up and high-quality development. In 2023, we introduced 12 key measures to support the coordinated development of the Beijing-Tianjin-Hebei region, and subsequently issued 15 key initiatives to support the accelerated construction of the New International Land-Sea Trade Corridor in the western region, and 16 measures to better support the high-standard opening up and high-quality development of the Yangtze River Economic Belt. These measures have primarily focused on the development of industries with regional features, promoting collaborative innovation and industrial cooperation, and have effectively driven regional high-standard opening up.

In 2023, imports and exports of the Beijing-Tianjin-Hebei region reached 5.03 trillion yuan, of which imports accounted for 20% of the country's total import value, accounting for more than half of China's grain, crude oil, natural gas and aircraft imports. Enterprises from the region accounted for two-thirds of the country's total imported automobiles. These measures played a crucial role in expanding imports, ensuring domestic supply, and meeting production and living needs.

2023 marks the fifth anniversary of the integrated development of the Yangtze River Delta as a national strategy. The region's imports and exports reached 15.17 trillion yuan for the whole year, an increase of 37.3% compared to five years ago, and its proportion in the total value of imports and exports of the country increased to 36.3%. The Yangtze River Delta region has played a prominent role in leading opening up.

In 2023, the imports and exports of the nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area reached 7.95 trillion yuan, an increase of 0.4%, accounting for 19% of the total value of imports and exports in the country. The proportion of high-tech product imports and exports in the region was 13.6 percentage points higher than the national average, highlighting its outstanding advantages in scientific research and industrial innovation.

In 2023, Northeast China actively expanded its "Belt and Road" market, and became the region with the fastest growth rate of exports to partner countries. The Chengdu-Chongqing Economic Circle witnessed the agglomerative effects of the cellphone and automobile industries, with the export value of related products reaching historic highs. The scale of imports and exports in Xiongan New Area has grown rapidly, with an average annual growth rate of 35.8% since 2020.

There have been many highlights in the expansion of opening up in various regions. This year, the GACC will continue to implement various support measures in accordance with the decisions and arrangements of the Central Economic Work Conference on promoting regional coordinated development. At the same time, we will study and formulate a new round of customs policies and measures to support the all-round revitalization of Northeast China in the new era, further promote the integrated development of the Yangtze River Delta, ecological protection and high-quality development in the Yellow River Basin, and make greater efforts to promote coordinated regional development and better serve high-quality development and high-standard opening up. Thank you.

Shou Xiaoli:

The last two questions.

International Business Daily:

New business forms such as cross-border e-commerce have become important forces in stabilizing foreign trade. What are the highlights of the development of cross-border e-commerce in 2023? What measures has the GACC taken to support the development of cross-border e-commerce?

Wang Lingjun:

Perhaps everyone present is involved in cross-border e-commerce. I'd like to invite Mr. Lyv to answer these questions.

Lyu Daliang:

Thank you for your questions. Cross-border e-commerce, closely related to consumers, has attracted widespread public attention. Currently, it has become an emerging powerhouse for global trade. With over 1 billion netizens, China is the largest online retail market, and its cross-border e-commerce is rapidly developing. According to initial estimates, in 2023, China's cross-border e-commerce imports and exports reached 2.38 trillion yuan, up 15.6% year on year. Exports totaled 1.83 trillion yuan, up 19.6% year on year, while imports stood at 548.3 billion yuan, up 3.9%. The number of consumers engaged in cross-border e-commerce imports has increased annually, reaching 163 million in 2023. The rapid development of cross-border e-commerce enables people to buy and sell anywhere, meeting domestic consumers' diverse and personal needs and contributing to the global reach of China's products, thus becoming an important growth driver for foreign trade.

In 2023, the GACC implemented specific measures in response to the trends and characteristics of cross-border e-commerce, advancing comprehensive reform in supervision, launching innovative trial reforms, and continuing to enhance the efficacy of supervision and service, thereby strongly supporting the sustainable and healthy development of cross-border e-commerce. First, in response to the demands of e-commerce enterprises, we introduced an online tax payment function and facilitated customs clearance, further helping enterprises reduce operational costs. Second, we piloted a program for the return of cross-border e-commerce retail import and export goods across customs zones and continued to improve return measures, effectively addressing enterprises' and consumers' concerns in this area. Returns, although undesirable, are sometimes unavoidable. Third, we have maintained a focus on food safety issues abroad, releasing early warning messages in a timely manner to ensure the safety of every bite of food consumed. Fourth, we have strengthened cooperation with cross-border e-commerce platform enterprises, enhanced the cultivation of enterprise credit, and guided enterprises to operate in compliance with rules and regulations, promoting the high-quality and healthy development of cross-border e-commerce.

The Central Economic Work Conference has proposed expanding cross-border e-commerce exports. In 2024, the GACC will resolutely implement the guiding principles of the CPC Central Committee. It will focus on the difficulties and problems hindering the development of cross-border e-commerce, continue to deepen reforms in this area, advance intelligent supervision over cross-border e-commerce, ensure the quality and safety of imported and exported products, facilitate customs clearance, and improve the efficacy of customs supervision as well as increase the sense of gains of relevant enterprises and consumers.

Thank you.

National Business Daily:

The Central Economic Work Conference has also emphasized the need to boost trade in intermediate goods. How did China's trade in intermediate goods perform in 2023? Moving forward, what actions will the GACC take to contribute to boosting trade in intermediate goods? Thank you.

Wang Lingjun:

Thank you for your questions. Since the Central Economic Work Conference emphasized the importance of boosting trade in intermediate goods, more people have become familiar with this relatively specialized concept. The goods in international trade are diverse. According to U.N. standards, they can be classified into three categories: capital goods, intermediate goods, and consumer goods. Intermediate goods include raw materials, semi-finished products, and components.

With the development of globalization and the international division of labor, intermediate goods have become a crucial part of global trade. Serving as a connection point for upstream and downstream industries in industrial chains, they account for over 50% of global goods trade and play a vital role in promoting the development of global trade and ensuring stability in global industrial and supply chains. China has deeply integrated into globalization, and the proportion of its import and export of intermediate goods in the global total continues to increase. Last year, the import and export of intermediate goods reached 25.53 trillion yuan, accounting for 61.1% of the total foreign trade value, which remains at a historically high level. Let's analyze intermediate goods in terms of exports and imports.

In terms of exports, intermediate goods play a significant role in promoting the development of industries worldwide. With a well-developed industrial system and strong supply capacities, China exports a large number of intermediate goods, meeting the industrial development needs of different regions globally. In 2023, China's intermediate goods exports reached 11.24 trillion yuan, accounting for 47.3% of the total export value. This includes 6.37 trillion yuan in mechanical and electrical products, up 1.9% year on year. In terms of specific markets, China's exports of automotive parts to Japan and Mexico, lithium batteries to the U.S. and Germany, and display modules for tablets to Vietnam and Indonesia all saw double-digit growth. During the same period, China exported over 1 trillion yuan of textile and plastic products, contributing to the industrial growth of ASEAN and African countries.

In terms of imports, intermediate goods significantly support domestic production and supply and provide a market for global enterprises. Last year, China's import of intermediate goods reached 14.29 trillion yuan, accounting for 79.4% of the total import value. This includes 4.41 trillion yuan in mechanical and electrical products, 3.2 trillion yuan in energy products, and 1.67 trillion yuan in metal ore sands. These products have played a positive role in satisfying domestic production demands. Additionally, China sources its imports from over 200 countries and regions across six continents, and its substantial market demand offers vast cooperation opportunities for enterprises worldwide.

The Central Economic Work Conference has identified boosting trade in intermediate goods as a key task for expanding high-quality opening up. This demonstrates China's commitment as a major country to deepen international cooperation on industrial and supply chains through concrete actions. In line with the arrangements made by the Central Economic Work Conference, the GACC will support the import of key components and important raw materials, ensure the stable supply of food, energy resources, and quality agricultural products, and improve the mechanism for efficient and smooth customs clearance. These efforts aim to create a better business environment at border ports and offer more convenient cross-border trade services, thereby boosting trade in intermediate goods. Thank you.

Shou Xiaoli:

Thanks to both speakers and also to our friends from the media for participating. Today's briefing is hereby concluded. Goodbye, everyone.

Translated and edited by Wang Wei, Wang Yiming, Xu Xiaoxuan, Liu Jianing, Liu Qiang, Qin Qi, Liu Caiyi, Zhou Jing, Wang Ziteng, Liu Sitong, Yang Xi, Zhang Rui, Mi Xingang, Li Huiru, Xu Kailin, Yuan Fang, He Shan, Xiang Bin, Ma Yujia, Huang Shan, 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. Lu Yingchuan, vice minister of culture and tourism

Mr. Du Jiang, vice minister of culture and tourism

Mr. Chen Binbin, director general of the Public Service Department of the Ministry of Culture and Tourism (MCT)

Mr. Gao Zheng, director general of the International Exchange and Cooperation Bureau of the MCT

Chairperson:

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

Date:

Dec. 14, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 31st briefing in the series "Embarking on the New Journey — A Government Perspective." The Ministry of Culture and Tourism (MCT) will brief you on accelerating the building of a leading country in culture and promoting the high-quality development of culture and tourism industries. Today, we have invited Mr. Lu Yingchuan, vice minister of culture and tourism; Mr. Du Jiang, vice minister of culture and tourism; Mr. Chen Binbin, director general of the Public Service Department of the MCT; and Mr. Gao Zheng, director general of the International Exchange and Cooperation Bureau of the MCT, to answer your questions.

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

Lu Yingchuan:

Friends from the media, ladies and gentlemen, good morning. I am delighted to speak with you on accelerating the building of a leading country in culture and promoting the high-quality development of culture and tourism industries.

Building a leading country in culture and promoting the high-quality development of culture and tourism industries are important strategic decisions made by the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core. The 20th CPC National Congress provided comprehensive directives in this regard. The MCT has diligently studied and implemented Xi Jinping Thought on Culture, fully implemented the guiding principles of the 20th CPC National Congress, and taken a series of targeted and effective measures. We have undertaken substantial groundwork with a focus on long-term efforts, resulting in positive steps toward the high-quality development of culture and tourism.

First, we adhere to the principles of cultural enrichment and empowerment, fostering the prosperous development of cultural undertakings and industries. We have increased support for stage arts and visual arts creation, implementing the New Era Series Art Creation project, organizing exhibitions of outstanding stage arts, and showcasing fine art. In the first 11 months of this year, the MCT hosted 27 exhibitions with 900,000 in-person visits and over 1.8 billion online views. Various stage productions, including the dance dramas "Wing Chun" and "Cavalry," the Yue opera "New Longmen Inn," and Chinese national opera "Daughter of the Party," have gained widespread popularity and acclaim. Progress has continued to be made in enhancing the quality and efficiency of urban and rural public cultural service systems, establishing innovative public cultural spaces, developing digital public cultural services, and implementing cultural projects that benefit the public. We have organized large-scale cultural events such as "village evenings" and square dance performances. In 2023, more than 20,000 "village evening" presentation events were held nationwide, with total participation of approximately 130 million instances. We have refined cultural economic policies, implemented a strategy to drive the development of the cultural industry through major cultural projects, actively fostered new business formats and models, launched a series of consumer promotion activities, and carried out specialized reforms in performance ticketing, scripted entertainment and other areas. The cultural industry has experienced rapid growth, with 342,000 commercial performances, box office revenue of 31.54 billion yuan and 111 million views in the first three quarters of this year, representing increases of 121%, 84.2% and 188.5%, respectively, compared to the same period in 2019.

Second, we adhere to the principles of upholding tradition while innovating, and maintaining confidence and self-strengthening. We have protected, inherited and promoted China's excellent traditions and culture. We have actively implemented major projects such as "A Comprehensive Study on the Origin and Early Development of Chinese Civilization" and "Chinese Archaeology," strengthening the protection and utilization of cultural relics and ancient books, advancing the fourth national cultural relics census, and implementing the ancient Chinese books protection plan. General Secretary Xi Jinping's inspection of the China National Archives of Publications and Culture, along with his important instruction on carrying forward Chinese culture in the era of national prosperity and social stability has strengthened our confidence and determination to promote the protection and utilization of ancient books. Innovations in exhibitions and the development of cultural and creative products aim to better meet the public's needs. The surge in popularity of museums and art galleries has emerged as a notable phenomenon and social trend. Significant strides are being made in the systematic protection of intangible cultural heritage (ICH), with progress in promoting the identification of the sixth batch of national representative inheritors of intangible cultural heritage and the announcement of 10 national-level cultural and ecological reserves. Activities such as International Museum Day, Cultural and Natural Heritage Day, and events such as "Sharing Tea and Cultural Heritage With the World" have been organized. We have actively promoted the inclusion of the Central Axis of Beijing and the Spring Festival as World Heritage, while efforts to list the "Cultural Landscape of Old Tea Forests of the Jingmai Mountain in Pu'er" on the World Heritage List have increased China's count of World Heritage Sites to 57.

Third, we maintained a people-centric approach to promoting tourism and met people's demands for better lives through tourism development. The general office of the State Council issued measures for releasing tourism consumption potential and achieving sound tourism development. The MCT also rolled out a series of policies and measures to enrich quality tourism products. We promoted tourism among the general public, promoted smart tourism and green tourism, and advocated for civilized tourist behavior. We compiled a directory of tourism resources at the highest grade in China, tried to incubate smart tourism projects that provide immersive experiences and organized promotional activities to encourage proper tourist behavior. We implemented a program to boost rural tourism and, as a result, eight villages have been listed as "best tourism villages" by the World Tourism Organization (UNWTO), highlighting a typical case of how the culture and tourism sector has empowered rural revitalization. We advanced public services for tourism, enhancing the construction and management of scenic paths and tourist toilets and improving roads, parking, telecommunications, and tour guide services, among other measures, to offer added convenience and benefits to the public. We carried out activities to celebrate China Tourism Day and promote domestic tourism as well as hosted expos such as the China International Travel Mart. We propelled the integrated development of culture and tourism, boosted intangible heritage tourism, tourism with educational purposes, city walks, and tourism performances, and established national demonstration areas for the integrated development of the cultural industry and tourism. 

Fourth, we stayed firmly rooted in Chinese culture while promoting exchange and mutual learning between different civilizations in order to widely spread Chinese culture and expand its influence. We implemented the Global Civilization Initiative (GCI) and organized art performances at the China-Central Asia Summit, the third Belt and Road Forum for International Cooperation, and other important state occasions. We organized year-round cultural and tourism activities to celebrate the 50th anniversary of diplomatic relations between China and Spain. We hosted the first Liangzhu Forum, the Silk Road Artists' Rendezvous, and performances to remember the Philadelphia Orchestra's visit to China 50 years ago. President Xi Jinping sent a congratulatory message to the forum and replied to letters from the participating artists. We established the Alliance for Cultural Heritage in Asia, hosted the World Tourism Alliance (WTA) Xianghu Dialogue, and actively took part in formulating international norms. We advanced the "Cultural Silk Road" program, hosted activities to celebrate the Spring Festival, and shared China's tea culture with people around the world, promoting Chinese culture and tourism resources all around. We resumed Chinese citizens' group tours to 138 countries operated by domestic travel agencies and online tourism enterprises. We carried out the "Nihao China" promotional campaign to boost China's tourism globally and drove the recovery of inbound and outbound travel. 

In the new era, we will strive to fulfill our new missions. We will thoroughly study and implement Xi Jinping Thought on Culture, fully implement the essence of the 20th CPC National Congress, and maintain stability while pursuing progress with our work. We will fully implement the new development philosophy, making no mistakes, quickly shape a new development paradigm and promote high-quality development. Guided by core socialist values, we will continue to enhance the creation of cultural artworks and the provision of outstanding cultural and tourism products to meet people's cultural needs with enriched products and boost their moral strength. We will promote the integrated development of culture and tourism, and widely spread Chinese culture and expand its influence with the aim to achieve more solid outcomes in enhancing China's cultural strength and spurring the sound development of the culture and tourism sector.

At this press conference, I'd like to express my gratitude to the journalists and concerned people who have long been supportive of our work in the culture and tourism sector. Now, my colleagues and I are ready to take questions. Thank you!

Chen Wenjun:

Thank you, Mr. Lu. The floor is open for questions. Please identify the news outlet you represent before raising questions. 

Xinhua News Agency:

The report to the 20th CPC National Congress called for the "production of more outstanding works that inspire the people." What measures has the MCT taken to encourage the creation and production of outstanding works? Thank you.

Lu Yingchuan:

The cultural and artistic achievements of an era are evaluated by the works created during that time. The MCT has always focused on enhancing the creation and production of artworks, fostering the creation of more outstanding works, and boosting the sound development of culture and art. Over the years, we have adopted a series of measures to cultivate more outstanding works of stagecraft. 

First, we have made more efforts regarding planning and guidance. To implement the art creation plan for the 14th Five-Year Plan period, we devised an action plan for stagecraft and artistic creation from 2023 to 2025 to better guide the selection of creative subjects and clarify priority tasks and objectives, covering the creation of new plays, old classics, and relatively short plays. Many outstanding stage artworks were created under the guidance of the action plan, which covers theater, traditional opera, music, stagecraft, quyi (Chinese folk performance arts), acrobatics, and many other art forms. 

Second, we have improved the promotion mechanism and strengthened our efforts in launching major projects. We launched a series of projects to promote the production of high-quality artworks in the new era. In particular, we focused on major topics and adopted various methods to stimulate the creativity of literary and art troupes, such as being directly responsible for those projects which get straight to the point, staying current with projects and providing guidance, and identifying great works and paying close attention to them. We also provided special support for key areas and weak links. This includes implementing a plan to support the creation of excellent stage productions, a project to promote the inheritance and development of Chinese national opera, a plan to support the creation of Chinese symphonies and national orchestral works, and projects to support the creation of scripts and fine arts. These measures aim to support projects that will have a demonstration effect and improve originality in art. A batch of new or revised artworks have been launched under these guidance plans, including the Peking Opera "The Protagonist," the opera "Minning Town ," the dance drama "Wing Chun," and the Kunqu Opera "The Peony Pavilion." These works have received praise from a wide range of audiences.

Third, we have strengthened policy guidance and leveraged the China National Arts Fund to support and sponsor a wide array of performances in various forms. The China National Arts Fund has been instrumental in supporting approximately 700 performances each year, encompassing art forms such as traditional opera, drama, dance, acrobatics, and activities related to communication, exchange, and talent development. Established a decade ago, the China National Arts Fund has provided support and funding for a total of 7,116 programs over the years. More than 80% of award-winning productions at prestigious events like the Splendor Award and the Best Works Award have received support from the China National Arts Fund, which has proved to be a great success. Besides the China National Arts Fund, over 20 provinces, autonomous regions, and municipalities across the country have established their own arts funds or special funds, contributing significantly to the creation of stage productions and fine arts.

Fourth, we have established platforms for communication and exchange. Producing excellent artworks is not enough; they also need to be effectively promoted. By organizing various performances and art events, we have extended the reach of stage artworks to both urban and rural areas, engaging the general public. In addition to promoting on-site performances, we have made progress in livestreaming these events online. To further the production and development of fine artworks, and to have them passed down from generation to generation in particular, we have intensified our efforts in talent development. By nurturing and cultivating talent, especially training a variety of leading figures in literature and art, including playwrights, directors, composers, and performers, we have ignited literary and art workers' creativity and passion. These measures have yielded significant results.

In the next step, we will continue to implement such policies and measures, working to introduce more high-quality works and present them to a broader audience. Thank you.

21st Century Business Herald:

Since the beginning of this year, the tourism industry has experienced rapid recovery, and the resurgence of the thriving tourism sector has been remarkable. What policies and measures will be taken to further unlock the potential of tourism consumption and promote high-quality development of the industry? Thank you.

Du Jiang:

China's tourism market has experienced a remarkable surge this year. In the first three quarters, figures showed that the domestic tourism sector recorded 3.67 billion visits and generated revenue of 3.7 trillion yuan. This represents year-on-year increases of 75% and 114%, respectively. The demand for tourism among residents has significantly increased, leading to a substantial rise in travel activities. This surge has not only stimulated consumer spending in the sector but also played a role in driving economic recovery.

Next, the MCT will fully implement the guiding principles of the 20th CPC National Congress, focusing on stimulating consumer spending in cultural and tourism sectors, improving people's well-being, and better meeting their needs. Efforts will be made in the following areas:

First, we will optimize the policy environment and address bottlenecks and challenges. In line with new developments in the tourism industry, we will implement the "Measures for Releasing Potential of Tourism Consumption and Promoting High-Quality Development of the Tourism Industr y" issued by the General Office of the State Council. We will take comprehensive actions from both the supply and demand sides to boost confidence in tourism investment and consumption. We are advancing a three-year action plan to improve domestic tourism. This involves enriching the supply of high-quality tourism products, enhancing tourism services, regulating the tourism market, strengthening tourism safety measures, and developing quality tourist destinations with a hospitable atmosphere. Additionally, the ministry is formulating a three-year plan to boost inbound travel, aiming to provide tourists visiting China with more high-quality tourism products and more convenient services.

Second, we will promote the integrated development of industries and improve the supply of new products. We will strive for the in-depth integration of the cultural sector and the tourism industry to improve cultural taste and nurture minds. We will foster new forms and models of consumer spending, launching more "small yet charming" projects for entertainment activities, as well as providing more appealing music events, such as music festivals and concerts. We will promote the healthy development of new business forms, such as scripted role-play games and tourism performances, and we will also make stepped-up efforts to promote the integrated development of tourism and various industries, such as the food, performance, sports, and wellness sectors, as well as traditional Chinese medicine. By doing so, tourists will have more opportunities to feel the charm of Chinese culture, cultivate their tastes, enjoy their lives, and improve their health. 

Third, we will ensure the establishment of platforms and policies to serve the people better. We will strive for the construction of new brands, including the national pilot cities for cultural and tourism consumption, the national-level tourist resorts and 5A-level scenic areas, as well as the national-level pilot cultural and tourism night consumption clusters. We will help local governments create more consumption scenarios and foster new forms and models of consumer spending. More policies to benefit the people will be put in place, and actions to provide financial support for cultural and tourism consumption will be implemented in around a hundred of cities and areas. We will continue to hold national activities to promote cultural and tourism consumption and strengthen promotions and marketing so as to stimulate people's willingness to spend on cultural and tourism products, which will ultimately boost market entities' recovery and development. Thank you.  

Yicai:

The domestic cultural and tourism market has been recovering rapidly this year, and people have a strong desire to travel. What measures has the MCT taken to meet the strong travel demand of the people? Thank you. 

Du Jiang:

The entire tourism market has entered a fast track to recovery and development since the beginning of this year. The MCT has continued to improve the quality of tourism products and innovated the supply of tourism products. We have strengthened supply-demand matchmaking and stimulated consumption potential in order to meet people's demand for diversified and high-quality travel needs and boost expanding domestic demand.

First, we have strengthened the implementation of policies and planning so as to provide a sound policy foundation for high-quality supply. We have implemented the development plan for the tourism sector during the 14th Five-Year Plan period (2021-2025), the Outline for National Tourism and Leisure Development (2022-2030), and the document on further unleashing the potential of tourism consumption and facilitating the high-quality development of tourism. We have worked with relevant ministries and commissions to jointly issue a series of policies and documents, such as the tourism development plan for northeast China, the plan to boost the integrated development of public transport services and tourism in urban and rural areas, the plan to promote the coordinated and innovative development of 5G plus smart tourism, and the plan for promoting the high-quality development of rural tourism with more financial support. Moreover, we have also made great efforts to advance the construction of the Beijing-Zhangjiakou sports, cultural, and tourism belt in a coordinated way. 

Second, we have made great efforts to improve the quality of tourism products in a bid to meet people's tourism demands with high-quality supply. We have improved the product ranges of "urban leisure" and "rural vacation" and promoted the balanced development of sightseeing tourism and leisure vacations through initiatives such as brand establishment, standard review, and pilot demonstrations. There are 14,900 A-level scenic areas, more than 700 national- and provincial-level tourist resorts, 111 national-level blocks serving tourism and leisure, 243 national-level night cultural and tourism consumption clusters, 142 national tourism demonstration industrial parks, and 1,597 key villages and towns for rural tourism across the country. Moreover, eight key villages and towns, such as Yucun village in Zhejiang province, as Mr. Lu mentioned previously, have been named the best tourism villages by the United Nations World Tourism Organization. In addition, solid gains have been made in pilot projects to promote the integrated development of red tourism. 

Third, we have made great efforts to ensure the supply of products in an innovative way, creating tourism demand with a new type of supply. We developed new tourism products and business forms featuring camping, ice and snow, and sports, as well as maritime tourism and art performances, establishing seven national-level ski resorts, 22 national 5C- and 4C-level self-drive campsites – the third batch of its kind – and 13 national-level demonstration bases for sports tourism, as well as 24 pilot programs to establish smart tourism sites, providing immersive experience services and 40 high-quality programs for art performances. We also unveiled a variety of themed tourist routes, including 10 national-level Yangtze River-themed routes, 10 routes for self-driving tourists in China, over 400 rural tourism routes, and "Reading Li Bai and Traveling across China" themed tourist routes, as well as themed tourist routes centered around Chinese tea culture and more. We organized activities to ensure a diversified supply to meet the demands of consumers. The MCT has worked with five other departments, including the Ministry of Transport, to jointly unveil the first group of 46 exemplars that have bolstered the integrated development of transport and tourism, which are designed to boost the development of new products and new business forms in transport and tourism sectors. Thank you.

China Media Group:

Last December, General Secretary Xi Jinping gave important instructions on the ICH protection. He urged solid efforts to advance systematic ICH protection. What achievements have been made so far in this regard? What considerations do you have for the next step to promote systematic ICH protection? Thank you.

Lu Yingchuan:

Thank you for your questions and your care regarding China's ICH protection and inheritance. The CPC Central Committee has attached great importance to this work, making a series of decisions and plans, and introducing a series of major policies and measures. First of all, I would like to introduce the ICH status in China. Currently, China has more than 100,000 ICH items at all levels, including 1,557 national-level ones, and has more than 90,000 ICH inheritors at all levels, including 3,056 national-level ones. So far, 43 items of the country have been added to UNESCO's Intangible Cultural Heritage list, making unique contributions to global cultural diversity. 

The CPC Central Committee has attached great importance to ICH protection and inheritance, and we have implemented a series of policies and measures and accomplished several important achievements in this regard.

First, a comprehensive system of ICH protection and inheritance has been established. An ICH listing system, an accreditation system, and an evaluation system have been built for both ICH items and ICH inheritors, effectively advancing ICH protection and inheritance.

Second, we have continued to find new channels and means to protect and inherit ICH. Apart from ICH items and ICH inheritors, there are ICH centers, ICH workshops, national (pilot) cultural reserves, and ICH protection through production pilots, etc. For instance, China has built more than 6,700 ICH workshops, some of which are located in counties lifted out of poverty and key counties receiving assistance for rural revitalization. This approach plays a very significant role in pursuing rural revitalization. Also, China has built 23 national (pilot) cultural reserves and 100 production pilots under state-level protection. These have vigorously promoted ICH protection and inheritance. 

Third, ICH innovative development has been robust. We all have a strong impression that there is a vibrant, rich, and varied market for ICH-inspired cultural and creative products. A market-based approach is the most effective way to inherit ICH. The development of new products has not only promoted the inheritance of fine craftsmanship but also given consumers better access to ICH.

Fourth, extensive activities have been launched to promote ICH. For example, we have held a variety of exhibitions and festivals to increase public awareness of ICH and arouse people's enthusiasm for ICH protection and inheritance. "Intangible Cultural Heritage in China," a program jointly produced by the MCT and China Media Group, has produced extensive social impact and effectively advanced ICH protection and inheritance.

Next, we will continue to implement these important measures. Following the requirement of systematic ICH protection, we will step up efforts to improve the policy and regulation system, ICH listing system, theoretical research system, talent pool system, and publicity and promotion system. More efforts will also be made to construct facilities for ICH inheritance and experience and conduct ICH protection through digitalization. By doing so, we will better protect and inherit ICH and make greater contributions to China's cultural prosperity and cultural strength. Thank you.

Phoenix TV:

What has been done by the MCT to implement the GCI and introduce Chinese culture abroad? What are the following considerations? Thank you.

Gao Zheng:

Thank you for your questions. The GCI, proposed by General Secretary Xi Jinping, has received positive responses from many countries. The work on cultural and tourism exchanges is a crucial part of practicing the GCI. The MCT mainly carried out work in three aspects.

First, we have promoted dialogue on civilizations and built international consensus. We held art performances at the China-Central Asia Summit and the third Belt and Road Forum for International Cooperation. We hosted the "Silk Road: Artists Rendezvous - Joint Exhibition by Renowned Arab and Chinese Artists" and the Sino-Arab Artists Salon in Egypt. In Spain, we held the opening ceremony of the China-Spain Year of Culture and Tourism, an exhibition of the legacy of the Qin and Han dynasties, and an exhibition of paintings from the Song Dynasty as part of the Great Collection of Chinese Paintings project, which have been very well received locally. We hosted the first Liangzhu Forum, organized lectures on China's stories at the China Cultural Center in over 40 countries, and invited scholars from over 40 countries to China to participate in the youth sinologists program. In addition, we signed the Joint Statement between the Ministry of Culture and Tourism of the PRC and the Secretariat General of the League of Arab States on Implementing the Global Civilization Initiative.

Second, we have employed cultural symbols to demonstrate the charm of civilization. In 2023, about 500 "Happy Chinese New Year" activities have been held in over 100 countries and regions globally, covering nearly 20 million people, with programs on the internet and TV reaching more than 5 billion people. The mascot "Lucky Bunny," introduced for the first time, has proven very popular. To celebrate the International Tea Day, we organized the "Tea for Harmony" Yaji Cultural Salon in 47 countries around the world, telling stories about the culture, science and technology, and industries behind Chinese tea. We organized a "Finest Cultural Gifts from China" cultural and tourism trade promotion activity, propelling products and services, including porcelain, musical instruments, and art performances, into international markets.

Third, we have deepened cooperation on art to foster closer bonds between peoples. At the beginning of this year, we hosted two concerts in the US themed "Echoes of Ancient Tang Poems." Fifteen youth singers from 10 countries performed together with the Philadelphia Orchestra and sang songs composed based on well-known poems in Chinese from the Tang Dynasty, achieving the perfect integration of Chinese elements with international expression. In November, the Philadelphia Orchestra came to China at our invitation to hold a concert celebrating the 50th anniversary of its first visit to China and performed with artists from many countries to interpret classic poems from the Tang Dynasty. We also held a tour of chamber concerts themed "Melody of the Orient" at the China Cultural Center in Brussels, Paris, and other overseas cities, and artists from European countries such as Belgium praised the Chinese spirit in the new era with music. Cooperating with the Egyptian tourism department, we held a China-Egypt music concert at the historical site of Giza Pyramids in Cairo, promoting closer ties between the peoples by singing. 

Next, we will continue to make every effort to implement the GCI, strengthen cooperation with UNESCO and the World Tourism Organization, and provide more and better public good to the international community. We will continue to implement the "Cultural Silk Road" program, and carry out training, seminars, joint creations, and other projects. We will promote cooperation on tourism with other countries, improve the facilitation of inbound tourism, and carry out the "Nihao China" national tourism image promotion campaign, attracting more foreigners to come to China to experience the charm of Chinese culture and cementing popular support for the implementation of the GCI. Thank you!

Hong Kong Bauhinia Magazine：

Public cultural services make up an important part of people's expectations for a better life. Since the 20th CPC National Congress, what work has been done by the MCT to develop modern public cultural services? Thank you.

Chen Binbin:

Thank you for your question. The report to the 20th CPC National Congress emphasized that we will improve the modern system of public cultural services and launch new public-benefit cultural programs. This year, the MCT has fully implemented the guiding principles of the 20th CPC National Congress, followed a people-centered approach, taken pursuing high-quality development as our overarching task, and made efforts to provide higher quality, more efficient, fairer, and more sustainable public cultural services. Our work mainly includes the following three aspects. 

Firstly, we have continued to promote the integrated development of urban and rural public cultural services. To narrow the gap between urban and rural areas, we have given priority to providing standardized and equal access to basic public cultural services, implemented national standards for basic public services, and continued to advance a headquarters-branch system for county-level cultural centers and libraries. There are now more than 100,000 branches and service centers at the community level. As you can see, in addition to traditional public cultural facilities, new types of public cultural spaces have also arisen, such as the "city study rooms" in Zhejiang and the "reading bars" in Guangdong. These new public cultural spaces are aesthetically pleasing and well-designed, and they feature many cultural elements as well as flexible operations. At present, the number of new public cultural spaces has surpassed 33,500, and these spaces have become the cultural living room for the people. This year, we launched a publicity week for public library and cultural center services, enabling greater public knowledge of and access to traditional cultural facilities and cultural organizations. We have, together with the Publicity Department of the CPC Central Committee and the National Development and Reform Commission, released 51 cases of high-quality public cultural services development at the community level.

Second, we have carried out a wide range of cultural activities to benefit the public. This year, in collaboration with the Ministry of Agriculture and Rural Affairs, we launched the "Songs of the Earth Rural Cultural Events Year." We organized 12 main events and over 80 demonstration activities nationwide. For example, the "Village Gala" used to be held during the Spring Festival, now it is held throughout the year, becoming the "Village Gala in Four Seasons" during the slack season of agricultural production. Another example is square dancing, the most popular cultural activity among Chinese people. According to statistics, more than 120 million people have participated. This year, we organized the National Public Square Dance Competition and held six regional shows based on performances from various locations. We also hosted the Square Dance Night event in Guiyang, Guizhou province. This led to more than 24,000 square dance events being held across the country, with over 110 million people participating both online and offline. Additionally, we launched the "Deep Love for the Earth" national tour of outstanding mass art performances and the Beijing showcase event, as well as the "Hometowns of Chinese Folk Art" exchange and exhibition activities. Nowadays, ordinary people play leading roles in mass cultural events. According to our statistics, the number of registered mass art teams has surpassed 460,000, and this number continues to grow.

Third, we have innovated the system and mechanisms for public cultural services. Public cultural services are no longer solely led or provided by the government. We actively promote an open and shared framework, supporting the extensive participation of social forces in public cultural services through government procurement and the establishment of supply-demand matching platforms. In collaboration with the National Ethnic Affairs Commission, we have innovatively launched the "Spring Rain Project" – cultural and tourism volunteers' trip to the border areas. We introduced 364 volunteer service projects, enabling a large number of high-quality cultural and tourism resources to flow to border areas and areas with large ethnic minority populations through voluntary and public welfare activities. We have implemented the national cultural digitization strategy, coordinating the development of the national smart library system and the construction of the public cultural cloud. This promotes the integrated development of excellent traditional Chinese culture and public cultural services. Furthermore, we have innovatively implemented the plan for the preservation of ancient books, issued guidelines for the classification of ancient books, formulated talent training programs for ancient books preservation, and strengthened the revitalization and utilization of ancient books.

Next, we will continue to improve the top-level institutional design for public cultural services. We will focus on constructing public cultural service platforms and promoting the extensive development of mass cultural activities. These efforts will lay a solid foundation for the common prosperity of people's intellectual and cultural lives. Thank you.

Economic Daily:

The CPC Central Committee and the State Council attach great importance to improving the business environment. We would like to ask what the MCT has done to improve the business environment and maintain market order? Thank you.

Du Jiang:

Thank you for your attention to the business environment and market order in the cultural and tourism sectors. This issue is of great concern to various parties as it directly affects the interests of businesses and consumers. In recent years, the MCT has fully implemented the decisions and plans of the CPC Central Committee and the State Council. We have continuously broadened market access, developed new ways of regulation and supervision, and worked to create a market-oriented and law-based business environment in keeping with international standards. These efforts stimulate the vitality of the cultural and tourism market and promote the industry's high-quality development. Specifically, we have undertaken the following work:

First, we have broadened market access and continuously unleashed policy dividends. We fully implement the negative list system and the system of fair competition review, delegating the power of government review on a batch of items and reasonably reducing the length of time for government approval. We have promoted the reform of security deposits for tourism service quality, providing travel agencies with more working capital. We have implemented the notification commitment system to establish travel agencies in free trade zones. We have promoted electronic licenses in cultural and tourism markets and fully implemented online administrative approval. We have ensured that more high-demand government services are accessible on cellphone applications and further promoted the government service evaluation system, aiming to streamline administrative procedures and enhance the quality of services.

Second, we have explored the formulation of inclusive and prudent policies for new business forms to boost market confidence. You may have noticed that over a certain period, a host of new business forms have emerged in culture and tourism. Adhering to a problem-oriented approach defined by prudent inclusiveness, we have introduced regulatory policies for new business forms such as script entertainment and esports hotels. These policies are tailored to the characteristics of the industries, incorporating a transition period to create an inclusive, stable, and predictable policy environment. This allows ample room for these new business forms to grow and thrive. We have optimized relevant policies and supported the development of new business forms such as new performance spaces, immersive performances, online shows, and tourism homestays. In this way, we have stimulated fresh consumption scenarios, expanded new consumption spaces, and enriched a new consumption experience. 

Third, we have innovated targeted and effective regulations to continually enhance regulatory effectiveness. Sticking to law-based administration, we have formulated and revised a number of policies and regulations on commercial performances, cultural and entertainment activities, and online tourism management. We have also adopted regulations for credit management in the culture and tourism market, and constantly refined related policies and regulations. We have innovated the targeted and effective management systems such as content source management and the list of prohibited cultural products. We have promoted cross-departmental supervision, "internet plus supervision", and credit supervision in order to continuously enhance regulatory effectiveness.

At the same time, we have attached great importance to the order of the culture and tourism market, responded promptly to the public complaints, and identified and addressed a number of issues in the culture and tourism market. We have launched a series of special law enforcement campaigns to maintain the market order effectively.  

First, we have deployed a series of targeted rectification campaigns to enhance law enforcement and regulation. In response to the rapidly recovering market, we have planned in advance a series of special law enforcement initiatives to address key issues such as ticketing in the performance market and forced shopping in the tourism market. Since the beginning of this year, we have successively carried out targeted rectification campaigns against problems concerning script entertainment, ticketing of commercial performances, and a hundred-day campaign to rectify the order of the tourism market, among others. Statistics show that in the first 11 months of this year, national comprehensive law enforcement agencies for the culture market deployed law enforcement personnel 9.988 million times, conducted 3.348 million inspections, and processed 41,000 cases, effectively upholding the culture and tourism market order.

Second, we have ensured key cases are handled in accordance with the law to create an effective deterrence. Targeted actions have been taken against cases such as e-commerce platforms facilitating ticket scalping for performances, commercial performance activities and art exhibitions containing illegal content, and the organization of minors to participate in performances detrimental to their physical and mental health, among others. In response to illegal business activities in the tourism market, including the designation of specific shopping places and operating travel agencies without a license, key provinces have been deployed to make concentrated efforts to address such cases. This focused approach has guided relevant regions to lawfully handle a number of significant cases with timely public disclosures. 

Since the beginning of this year, the MCT has guided local culture and tourism departments to deal with some typical cases in accordance with the law, including content violations, failure to meet performance obligations, forced shopping in tourist areas, tour guides threatening tourists, and travel agencies breaking contracts. The results of these cases were made public in a timely manner. This has increased legal awareness and deterred various kinds of illegal activities.

Going forward, the MCT will continue to strengthen comprehensive law enforcement and regulation in the culture and tourism market. We will take solid steps to advance a series of law enforcement actions and crack down on illegal activities to ensure an orderly culture and tourism market. Thank you.

China News Service:

The report to the 20th CPC National Congress explicitly outlines the implementation of a national cultural digitalization strategy . How has the MCT worked towards this goal, and what progress has been made? What's the next plans in this regard? Thank you.

Lu Yingchuan:

Thank you for your question. Implementing the national cultural digitization strategy is a major strategic plan proposed by the CPC Central Committee. It is of great significance for turning China into a country with a strong culture, building cultural confidence and strength, promoting high-quality development, and enhancing cultural soft power and the appeal of Chinese culture. The MCT has thoroughly implemented the major national strategy of the CPC Central Committee and the State Council, and has successively launched a series of important measures to promote the implementation of the cultural digitization strategy. Our work has mainly focused on the following aspects:

First, we have accelerated the pace of digitization of cultural resources and promoted its digital development and transformation. This includes cultural relics, classics and various types of artworks. For example, among the over 1.86 million cultural relics that are preserved by the renowned Palace Museum, 900,000 sets of them have been digitized, accounting for about 48% of the total. The National Museum of China has about 1.43 million items/sets, of which 700,000 have been digitized, accounting for about 49%. The National Art Museum of China has a collection of about 130,000 pieces/sets, of which almost 100,000 have been digitized, accounting for about 76.9%. The National Library of China has approximately 3.17 million volumes of ancient books, of which 610,000 have currently been digitized, accounting for approximately 19.3%. By vigorously advancing the digitization of cultural resources and the development and transformation of digital products, we can lay a solid foundation for better utilization and display of cultural resources.

Second, we have vigorously advanced the application of digital technology and cultivated and developed new business formats. For example, in the field of stage art, we have vigorously promoted the integration of online and in-person performances, and encouraged the use of internet and other digital technologies to create a "second theater." For example, the National Peking Opera Company's annual Spring Festival show "Dragon and Phoenix" has been held for three consecutive years, as well as the China National Opera and Dance Drama Theater's "Dancing in Spring" and the National Theater of China's special stage art digital products "The Age of Heroes" and "Literature and Arts During the War of Resistance Against Japanese Aggression." Through such methods, digital transformation has been achieved, which has greatly assisted cultural communication. Every year, our "Literary China" New Year special program is launched online and has received very positive responses. In addition to the field of stage arts, we have also strongly promoted the development of immersive experience formats in the field of tourism and cultivated new cultural and tourism formats, which have achieved very good results.

Third, we have strengthened the supply of digital content for public cultural services and enhanced the digital service capabilities of cultural services. This includes promoting the construction of smart library systems and public cultural cloud systems. At present, in addition to the national public cultural cloud, there are public cultural clouds in more than 200 places, with a total resource volume of more than 1,530 TB. This has played a very important role in promoting reading and popularizing art nationwide, and developing digital public cultural services.

Fourth, we have utilized digitization to improve the communication efficiency of culture and art and promote tourism development. We have used digital technology to empower the dissemination of culture and art, promoted continuous improvement of tourism service management, and actively promoted online exhibitions, such as "Digital Dunhuang" and "Digital Forbidden City," which have been well-received by the public. These measures have played an important role in promoting the implementation of the national cultural digitization strategy and achieved good results.

Going forward, we will continue to focus our work on the following four aspects:

First, we will continue to focus on the construction of digital cultural resources and accelerate the pace of digitization for these resources. Second, we will strengthen cultural originality, develop more digital products and continuously increase the supply of digital cultural content. Third, we will continue to promote the application of digital technology in cultural and artistic production, public cultural services, cultural heritage protection and inheritance, tourism services and management, and tourism development. Through digitization, we can foster new cultural formats, products and models to better meet and serve people's needs. Fourth, we will actively build a regulatory framework for digital culture. We will work to establish rules and regulations for market entry, market supervision, product certification, intellectual property protection and security in the digital cultural sector to ensure the implementation of the national cultural digitization strategy and promote the healthy development of digitization.

By promoting the implementation of the national cultural digitization strategy, we will definitely promote the continuous improvement, upgrading and efficiency of culture, art and tourism, thus contribute to high-quality development. Thank you.

Chen Wenjun:

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

Translated and edited by Yan Bin, Li Huiru, Xu Xiaoxuan, Liu Qiang, Xu Kailin, Yuan Fang, Li Xiao, He Shan, Gong Yingchun, Wang Yiming, Cui Can, Wang Wei, Ma Yujia, Liu Sitong, Wang Qian, Huang Shan, Liu Caiyi, 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

Speaker:

Mr. Liu Bingjiang, chief engineer of the Ministry of Ecology and Environment (MEE) and director general of the Department of Atmospheric Environment of the MEE

Chairperson:

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

Date:

Dec. 11, 2023

Xie Yingjun:

Ladies and gentlemen, good afternoon. Welcome to this regular policy briefing held by the State Council. Recently, the State Council issued the Action Plan for Continuous Improvement of Air Quality. To help you better understand the relevant details, we have invited Mr. Liu Bingjiang, chief engineer of the Ministry of Ecology and Environment (MEE) and director general of the Department of Atmospheric Environment of the MEE, to introduce the details of the action plan and answer your questions.

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

Liu Bingjiang:

Thank you. I would first like to express my gratitude for your concern and support for our work on the prevention and control of air pollution. I am very pleased to be here today to introduce the Action Plan for Continuous Improvement of Air Quality. The Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to air pollution prevention and control. General Secretary Xi Jinping has emphasized that the blue skies initiative is a priority in the battle against pollution. Focusing on key areas, including the Beijing-Tianjin-Hebei region and its surrounding areas, the Yangtze River Delta and the Fenwei Plain, we should strive for synergy between emissions reduction of pollutants such as volatile organic compounds (VOCs) and nitrogen oxides, and further reduce the concentration of fine particulate matter. We should take comprehensive measures to speed up the elimination of serious air pollution and protect our beautiful blue skies. To thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council, the MEE, in collaboration with 25 other departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Transport, jointly formulated the Action Plan for Continuous Improvement of Air Quality, which was issued by the State Council on Nov. 30. This marks the country's third action plan of this kind, following the Air Pollution Prevention and Control Action Plan and the Three-Year Action Plan to Win the Battle for a Blue Sky. The main content of this new plan can be summarized into "four clarifications."

First, the overall approach has been clarified. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the action plan rigorously implements the guiding principles of the 20th CPC National Congress, comprehensively applies Xi Jinping Thought on Ecological Civilization, and aligns with the directives set forth at the National Conference on Ecological and Environmental Protection. It adheres to the general principle of pursuing progress while ensuring stability. With this action plan, we will make concerted efforts to cut carbon emissions, reduce pollution, pursue green development and boost economic growth. Its core objectives are to improve air quality, address severe air environmental issues affecting people, and reduce PM2.5 concentrations. The action plan vigorously promotes the reduction of emissions of nitrogen oxides and VOCs, emphasizing precise, scientific and law-based pollution control. It includes both near- and long-term strategies for air pollution prevention and control, and solidly promotes green and low-carbon transitions in industry, energy and transportation, aiming to achieve a win-win situation for environmental, economic and social benefits.

Second, the improvement targets have been clarified. The action plan aligns with the requirements outlined in the national 14th Five-Year Plan and key policy directives such as the Opinions of the CPC Central Committee and the State Council on Intensifying the Pollution Prevention and Control Efforts. It states that by 2025, the concentration of PM 2.5 pollutants should decrease by 10% in cities at or above the prefectural level; the proportion of days with heavy pollution and worse conditions should be controlled to within 1%; and total emissions of nitrogen oxides and VOCs should both decrease by more than 10%. The action plan also optimizes and adjusts the key regions for air pollution prevention and control and sets improvement targets for each. It requires PM2.5 concentrations in the Beijing-Tianjin-Hebei region and its surrounding areas and the Fenwei Plain to decrease by 20% and 15% respectively, and for the Yangtze River Delta region to meet the overall standard. In Beijing, the PM2.5 concentration should be controlled within 32 micrograms per cubic meter.

Third, the key tasks have been clarified. The action plan identifies nine key tasks: optimizing the industrial structure to promote the green upgrading of industrial products; enhancing the energy structure for accelerating clean, low-carbon and efficient energy development; improving the transportation structure to develop a robust green transportation system; strengthening non-point source pollution control and refining management techniques; intensifying the reduction of multiple pollutants to significantly lower emission levels; enhancing institutional frameworks to better manage air quality; bolstering capacity building for rigorous enforcement and supervision; updating the legal and regulatory framework to support environmental economic policies; and engaging all stakeholders in a nationwide effort to fulfill these responsibilities.

Fourth, the allocation of responsibilities has been clarified. The action plan emphasizes the importance of strengthening organizational leadership, upholding and enhancing the Party's overarching leadership over air pollution prevention and control, and holding local governments at all levels accountable for air quality within their jurisdictions. Strict supervision and assessments will be carried out, with the completion of air quality improvement targets serving as an important indicator in evaluating the effectiveness of the battle against pollution. Nationwide action will be implemented, mobilizing all sectors of society to actively participate in air environmental protection and jointly improve air quality.

That concludes my overview of the action plan. I am now happy to answer questions you may have. Thank you.

Xie Yingjun:

The floor is now open for questions. Please identify the news agency that you work for before raising questions.

Beijing Youth Daily:

I have two questions. Since the 18th CPC National Congress in 2012, China has formulated and implemented ten measures for controlling air pollution as stipulated in the Air Pollution Prevention and Control Action Plan and the Three-Year Action Plan for Keeping Our Skies Blue. What experiences and insights on air pollution management can be gained from the implementation of these projects? In addition, compared with previous measures, how does the new action plan differ in terms of the current situation and pollution-management approach? In the focus and measures of the new plan, what are the changes as well as its distinctive features and innovations? Thank you.

Liu Bingjiang:

Thank you for your questions. Since the 18th CPC National Congress, we have successively introduced the Air Pollution Prevention and Control Action Plan and the Three-Year Action Plan for Keeping Our Skies Blue. These measures have indeed significantly improved the air quality, bringing tangible benefits to the people. Reflecting on our achievements of the past eight years, we have made structural adjustment in three sectors: industry, energy and transportation. We have also seized major opportunities in four aspects and have implemented five key strategies: reducing coal consumption, shutting down outdated production facilities, regulating vehicle emissions, managing pollution and controlling dust. The four major opportunities are particularly crucial.

The first opportunity relates to the twofold increase of China's annual natural gas consumption. The figure, which hit nearly 170 billion cubic meters in 2013, doubled by 2020. The massive amount of natural gas consumption presents a huge opportunity for improving air quality. Therefore, in collaboration with related government bodies, we have made adjustment in policies regarding natural gas use, with additional amounts of natural gas being allocated mainly for residential consumption in urban area, and to replace the use of coal. This measure is crucial. Over the past eight years from 2013 to 2020, we have concentrated resources and efforts on managing coal consumption, particularly targeting non-centralized and inefficient coal burning operations, such as coal-fired furnaces and industrial kilns, reducing their number by over 400,000 nationwide. Regarding non-centralized coal burning operations in rural areas, we have worked to replace them with natural gas and electricity, benefiting 25 million rural households and freeing them from smoke and pollution associated with coal use. During this period, coal consumption has been reduced by nearly 500 million metric tons, and carbon dioxide emissions have been cut by 1 billion metric tons. This summarizes our first opportunity.

The second opportunity relates to the national initiative on the de-escalation of overcapacity in the steel and coal industries. Specifically, the CPC Central Committee proposed supply-side structural reforms, and the State Council set targets to reduce steel production capacity by 150 million metric tons and coal production capacity by 500 million metric tons within three years. After eight years of implementation, steel production capacity nationwide has been reduced by 250 million metric tons, and coal production capacity has decreased by 1 billion metric tons. At the same time, nearly 140 million metric tons of substandard steel products have been eliminated, along with 400 million metric tons of outdated cement production capacity. Besides this, in the areas surrounding Beijing, Tianjin and Hebei province, 62,000 small, poorly-managed and heavily-polluting enterprises have been shut down or overhauled. Regarding Yangtze River conservation, more than 10,000 chemical industrial businesses in cities along the river have been relocated or upgraded to higher environmental standards. Over a thousand businesses have also been relocated as part of the initiative to relieve Beijing of functions nonessential to its role as the capital. These two measures have significantly contributed to reducing emissions related to air pollution.

The third opportunity relates to advancements in science and technology for air pollution management. Domestic scientists and researchers have independently developed large-scale and high-quality facilities to curb air pollution, which significantly enhanced the country's capacity in this field. For example, emissions from all coal-fired power plants in China now meet the same standards as those for natural gas. Initiatives have also been launched to upgrade steel enterprises, enabling them to achieve production with ultra-low emissions. In the meantime, our scientists and researchers have developed a world-class air quality forecast model, allowing us to monitor the progression of every polluting event. This also makes our pollution control efforts more scientific and targeted, enabling us to address long-distance and multi-regional air pollution. Moreover, scientists and researchers in China have independently developed a wide range of monitoring equipment, including "super stations," mobile monitoring vehicles as well as monitoring stations that measure the six key air quality pollutants. These stations have been deployed across both urban and rural areas nationwide, allowing us to accurately track the occurrence, development and dissipation of each polluting event. With the help of these stations, we can more effectively address consistent pollution issues to a certain extent, such as those caused by slash-and-burn actions in the spring, barbecues in the summer, straw burning in the autumn, non-centralized coal burning in the winter and solid waste burning year round.

The fourth opportunity relates to the establishment of a central environmental inspection mechanism. This mechanism has effectively translated policy into action. As a result, local government has truly taken full responsibility for improving air quality, and a closed-loop management system has been developed for the introduction, execution and enforcement of every measure. Over the past eight years from 2013 to 2020, every air quality management measure has been put into action with unprecedented rigor. To sum up, our experience in this field includes structural adjustments in three sectors, the utilization of four key opportunities and the implementation of five essential strategies: reducing coal consumption, shutting down outdated production facilities, regulating vehicle emissions, managing pollution and controlling dust. Each aspect of our work has its own distinctive features.

China is now the country with the fastest improvement in air quality in the world. The coal-derived pollution in our country has been basically resolved, but the turning point of quantitative-to-qualitative improvement in air quality has not yet arrived. This is characterized by the frequent occurrence of heavy pollution. In terms of the three major structures you are all familiar with, the industrial structure is biased toward heavy chemicals, the energy structure is biased toward coal and the transportation structure is biased toward roads, which have not been fundamentally improved.

The control of sulfur dioxide has been relatively thorough and successful, but the control of nitrogen oxides and VOCs is still ongoing. Current meteorological issues in particular, such as dust storms in spring, high temperatures in summer and El Nino in winter, have brought great uncertainties to the improvement of air quality. Facing these new tasks and new problems, and based on the summary of the past 10 years of air pollution control work, the recently introduced action plan continues the effective experiences and practices of the "Ten Measures for Air " and the Three-Year Action Plan for Winning the Blue Sky Defense Battle, mainly focusing on the five major paths of reducing coal, eliminating outdated capacity, controlling vehicles, preventing pollution and suppressing dust storms, which continue to be reflected in different chapters of the document.

First, we must highlight the priorities of the work and adhere to the improvement of PM2.5 as the main line. Currently, PM2.5 is still the main issue in terms of air pollution in our country, and we must clarify the reduction target for PM2.5.

Second, we must adhere to systematic pollution control and vigorously promote the adjustment of industrial, energy and transportation structures. In particular, we can see that the low-carbon green transformation in the transportation sector has the most quantitative indicators, which is a major highlight of this document, showcasing the coordinated emission reduction of multiple pollutants such as nitrogen oxides and VOCs.

Third, we must strengthen coordinated prevention and control, which has been a relatively successful experience in air quality governance in recent years. The Beijing-Tianjin-Hebei region and its surrounding areas have expanded from "2+26" cities to "2+36" cities. The Yangtze River Delta and Beijing-Tianjin-Hebei region have basically achieved coordination on addressing air pollution in the eastern region as a whole. Thank you.

CCTV:

We noticed that the key regions have been adjusted in the action plan. Previously, the "Ten Measures for Air" focused on the Beijing-Tianjin-Hebei region, Yangtze River Delta and Pearl River Delta. Later, it expanded to the Beijing-Tianjin-Hebei region and its surrounding areas, the Yangtze River Delta and the Fen-Wei Plains. And we see the coverage has been further expanded. Could you elaborate on this aspect? Thank you.

Liu Bingjiang:

Thank you. The Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution clearly stipulates that the relevant ecological environment department of the State Council, namely the MEE, shall determine the key regions for the prevention and control of atmospheric pollutants nationwide based on the zoning for major functions, pollution status, transmission characteristics and transmission paths, and report them to the State Council for approval. Your observation is very meticulous. The first "Ten Measures for Air" covered the Beijing-Tianjin-Hebei region, Yangtze River Delta and Pearl River Delta, involving 47 cities. The Three-Year Action Plan for Winning the Blue Sky Defense Battle covered the Beijing-Tianjin-Hebei region and its surrounding areas, Yangtze River Delta and Fen-Wei Plains, with a total of 80 cities. This time, it covers 82 cities. The notable change is that more adjustments have been made to the Beijing-Tianjin-Hebei region and surrounding areas, from the original "2+26" cities to "2+36" cities. Overall, there has not been a significant change in the total number of key cities for air pollution prevention and control nationwide, which has increased from 80 to 82 cities. Cities in the southern part of the Yangtze River Delta have basically achieved stable PM2.5 compliance and have therefore been excluded, based on the current status of air quality improvement and the characteristics of atmospheric transmission.

The expansion from "2+26" to "2+36" reflects a decade of sustained efforts. We have now found that in the border region between the Yangtze River Delta and the Beijing-Tianjin-Hebei region and its surrounding areas, cities in the intersection of Jiangsu, Anhui, Shandong and Henan provinces have PM2.5 concentrations almost equal to those in the Beijing-Tianjin-Hebei region and its surrounding areas and the Fen-Wei Plains, both around 45 micrograms per cubic meter, making it a region with a prominent pollution issue. During periods of pollution, this area often serves as the starting point, with pollutants spreading northward to the Beijing-Tianjin-Hebei region and southward to Jiangsu and Zhejiang provinces. Based on this characteristic, as well as years of monitoring, meteorological parameters and scientific research findings, this region has been included. Cities included in the key regions for national air pollution prevention and control will receive greater national support and face heavier tasks, thereby forming a concept of air basin in the overall region. Just as water basins have boundaries, as professionals, we know where the boundaries of atmospheric basins are. This allows the Beijing-Tianjin-Hebei region and its surrounding areas and the Yangtze River Delta to be integrated, enabling systematic and holistic solutions to air pollution issues. Thank you.

Cover News:

A decade ago, China declared war on air pollution, resulting in the most rapid air quality improvement globally. Has this progress now reached its limit? We recognize that the process of improving air quality through transformation is often a lengthy one. What challenges and persistent issues remain in air quality improvement? Does this suggest that the pace of air quality improvement could slow down or even reverse in the future? What key measures does the action plan outline to address these challenges? Thank you.

Liu Bingjiang:

Thank you for your good questions. The progress in air pollution control over the past 10 years is something everyone can perceive. In Beijing, PM2.5 levels dropped from 89.5 micrograms per cubic meter in 2013 to 30 micrograms per cubic meter last year. The number of heavy pollution days decreased from 58 to just two or three days annually. This represents a significant achievement that the public can readily appreciate. "Beijing Blue" has become the norm and has been recommended by the United Nations Environment Programme as the "Beijing Miracle" to countries worldwide. However, our country still has significant room for improvement. For instance, last year, the concentration of PM2.5 was 29 micrograms per cubic meter, five to six times higher than the World Health Organization's standard and two to four times that of developed countries. PM2.5 is among the most harmful pollutants to human health, and addressing this issue requires significant technological breakthroughs.

Our country is entering a critical period in air pollution control, a phase of advancing under heavy pressure and overcoming obstacles. The green transition requires sufficient time and can't be achieved overnight. Whether there will be stagnation or fluctuations in the coming years depends on various factors. For example, if we examine our first and second Air Pollution Prevention and Control Action Plans, what was the biggest opportunity from 2013 to 2020? During those eight years, our country's coal consumption steadily decreased year by year. By 2020, total coal consumption had decreased by about 5% compared with 2013. This reduction represented the most unprecedented opportunity for environmental improvement since our country began reform and opening up. As incremental increases in coal consumption diminished, we focused more on reducing emissions from existing sources, which naturally led to improved air quality. That particular opportunity seems to have waned, but another significant opportunity has emerged: the green and low-carbon transition in the transportation sector. This is reflected in the numerous quantifiable targets and key highlights in the latest action plan. PM2.5 pollution is now primarily driven by nitrogen oxides, a significant characteristic of this phase.

Additionally, various climatic factors have significantly influenced our country's air quality transformation. From 2013 to 2016, we experienced four consecutive El Nino years. From 2017 to 2019, it was a normal period, and from 2020 to 2022, during the pandemic, we experienced La Nina conditions. According to climate experts' predictions, our country is influenced by two cycles: a short cycle and a long cycle. The short cycle is defined by El Nino events, typically occurring every four to seven years. This year, we have entered another moderate to strong El Nino phase. On a larger scale, every 20 years, our country enters a period characterized by frequent and intense dust storms. From the early 1980s to 2003, there was one such 20-year period, and now we are in another. The prevalence of dust storms in the first half of this year has already become quite evident.

Third, our country is the world's largest manufacturer, with coal consumption, steel production, nonferrous metal production, crude oil processing capacity and electricity generation consistently ranking first globally. Our industrial structure remains dominated by heavy chemical industries. The energy structure still primarily relies on coal. Our transportation system continues to be centered on roads. These fundamental aspects have not undergone significant changes. In this context, you have observed some fluctuations in China's air quality this year. However, these fluctuations are normal and accurately reflect air pollution control's long-term and challenging nature. The battle for blue skies is both a tough and enduring struggle, requiring persistent and unwavering efforts.

Next, we will thoroughly implement the guiding principles of the 20th CPC National Congress and the National Conference on Ecological and Environmental Protection. We will adhere to precise, scientific and law-based approaches to pollution control and fully implement all the measures outlined in this action plan. We are confident in our ability to continue improving air quality. Thank you.

CRNTT:

Data shows that from January to October of this year, the average ratio of good air quality days in 339 cities at or above the prefectural level was 85.1%, down 1.2 percentage points compared with the same period last year, while the average ratio of days with heavy pollution and worse conditions was 1.6%, up 0.8 percentage points year on year, and the PM2.5 density went up 3.7% year on year. What is the reason for this situation? What is the MEE's prediction on the country's air quality status throughout the whole year and whether the annual target can be achieved? Thank you. 

Liu Bingjiang:

As you said, there have been some fluctuations in air quality across the country this year. Frankly speaking, being able to stabilize at this level has greatly enhanced our confidence in further improving air quality in the future. The significant reduction in socioeconomic activities during the pandemic, coupled with the three consecutive years of La Nina, resulted in a seven-microgram-per-cubic-meter decrease in PM2.5 concentrations in 2022 compared with 2019, which indeed improved the air quality. We have predicted that the PM2.5 density may rebound sharply this year. Our objective is that this year's PM2.5 density will increase by more than 10% compared to last year's density. But at the moment it has only increased by 3.6%, so we can say that the rate of increase has been stabilized. Therefore, we have become more confident in further improving air quality. 

When we say "stable," we mean that the PM2.5 density has only increased by 1 microgram per cubic meter year on year, which is basically the same as during the pandemic and down 12% compared with 2019. 2019 can be considered a normal year, but this year there has seen more extreme weather conditions. According to statistics from the China Meteorological Administration, there have been 17 rounds of dusty weather across the country this year, the most in the past decade and 50% higher than the average. More than five of these rounds were recorded as sandstorms or above in terms of intensity, which is about twice the average for the same period in the last decade. In particular, the strong sandstorm weather from March 19 to 23 affected more than 20 provinces, the density of PM2.5 and PM10 in many places in the north reached severe pollution levels, and the peak concentration of PM10 in Zhangjiakou exceeded 9,000 micrograms per cubic meter. Satellite observation statistics show that this year's dusty weather has affected an area of 5.29 million square kilometers in the country, more than half of China. As of the end of November, the dusty weather alone caused days marked with good air quality to decrease by 3.3 percentage points, causing the concentrations of PM2.5 and PM10 to increase by 1 microgram per cubic meter and 10 micrograms per cubic meter, respectively, making it the most impactful year in the past decade. After the pandemic, the increase in air pollutant emissions was also relatively large. For example, thermal power generation increased by 5.7%, output of ten non-ferrous metals increased by 7%, crude oil processing increased by 11.2% and road passenger and road freight transportation increased by 23.5% and 8.2%, respectively. The significant increase in economic activities led to an increase in pollutant emissions. Under the influence of these two factors, by the end of November, the country's concentration of PM2.5 rose only 3.6% year on year, or 1 microgram per cubic meter, which is better than this year's target and the timely progress outlined in the 14th Five-Year Plan (2021-2025), so we can say it's "stable." The concentration of PM2.5 is stable at this level, currently 29 micrograms per cubic meter. If there is no large-scale pollution by the end of the year, it is expected to be 30 micrograms per cubic meter, which means it is stable. 

Where is the "progress" in "steady progress"? In the three major regions of the country, the Beijing-Tianjin-Hebei region and its surrounding areas, the Yangtze River Delta region and the Fenwei Plain, the average concentration of PM2.5 has improved. This "steady progress" has strengthened our confidence, which is much better than predicted at the beginning of the year. The reason for the current situation is that since the beginning of this year, we have worked with relevant departments and localities to strengthen efforts to reduce emissions by means of updating facilities, adjusting industrial structures and energy structures as well as improving energy efficiency and saving energy consumption. At the beginning of this year, we believed that the uncertainty brought about by climatic anomalies would require more emission reductions to offset their impact. Because it is not the end of the year yet, all data has not yet been accumulated. For example, the ultra-low emission transformation of the steel industry has completed a total of 400 million tons nationwide, of which the amount completed this year is equal to the sum of the amounts completed in previous years. All the coke ovens below 4.3 meters in height within Shanxi province have been phased out this year, with a total production capacity reaching 23 million tons. This is a relatively large reduction in emissions. All long-chain steel production capacity in Shandong province's original "2+26" channel cities has been completely eliminated. For example, we are promoting clean heating in northern China, and have completed 2 million households this year. In terms of transportation structure adjustments, 65 key dedicated railway lines were built and have opened, and the national railway and water freight volume has increased by 6% year on year. A total of 24,000 new energy heavy trucks have been sold, an increase of 36.9% year on year. We have continued to carry out air supervision and assistance, establishing "online + offline" channels. This year, we have inspected 38,000 enterprises and targeted more than 11,000 prominent air-related environmental problems. Through the above measures, if there is no long-term, large-scale development in pollution within the next 20 days, the situation of seeking progress while maintaining stability is certain, which also strengthens our confidence in continuously improving air quality in the future. Thank you!

Reuters:

My question concerns two aspects. With regard to the action plan for the continuous improvement of air quality, you have mentioned three key regions. What I would like to ask is whether the State Council will implement coal consumption reduction targets for other regions in the future? In addition, will the State Council set a national target for reducing coal consumption? Thank you.

Liu Bingjiang:

According to Article 90 of the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, new construction, alteration or expansion of coal-fired projects in national key regions for prevention and control of atmospheric pollution shall implement coal substitution in an equivalent or reduced quantity. In the Beijing-Tianjin-Hebei region and surrounding areas, the Yangtze River Delta region and the Fenwei Plain region, newly-built coal-fired projects should implement coal substitution in an equivalent or reduced quantity. By doing so, increments can be stabilized. On this basis, many measures are proposed to reduce the number of coal-consuming users or enterprises. The concentration of fine particulate matter (PM2.5) in the Beijing-Tianjin-Hebei region and surrounding areas should be reduced by 20% and that in the Fenwei Plain region should drop by 15%. It is an effective measure to impose a cap on total coal consumption in these regions. This is based on the law on atmospheric prevention and control, requiring that by 2025 the coal consumption in the Beijing-Tianjin-Hebei region and surrounding areas should be reduced by 10% compared to 2020, the coal consumption in the Yangtze River Delta region should be reduced by 5% and the coal consumption in the Fenwei Plain region should achieve negative growth. As for the regions outside national key regions for air pollution prevention and control, there is no specific law requiring the control of total coal consumption. Thank you.

The Poster News App:

With the support of all sectors of society, China's air quality has been significantly improved. It is a key issue whether the general public can continue to give strong support to carry out air pollution prevention and control at the current stage. At present, some people have misunderstandings. They believe air pollution prevention and control may affect the economy or even people's livelihood. What's your view on this? Thank you.

Liu Bingjiang:

Fresh air is the most inclusive benefit to people's wellbeing and most equitable public good. Everyone desires to enjoy fresh air every day. The health and wellbeing of the people is closely related to air pollution. According to results of our scientific research, the implementation of ten measures on controlling air pollution as well as the three-year action plan for keeping our skies blue have significantly improved people's health in China, due to the improvement in air quality. The control of air pollution has fully demonstrated China's people-centered approach toward development. Continuous improvement of air quality means improvements to people's livelihoods. It can be said that, just as you mentioned, the improvement of air quality over the past decade has gained wide support from the people. When formulating ten measures on controlling air pollution in 2013, people were looking forward to improving air quality at an early date and clearing away the smog.

Actually, you raised a question about the relationship between air quality improvement and economic development. Some people say that air quality improvements impact economic development. Data shows that China's GDP has doubled over the past decade, but the concentration of PM2.5 has dropped by 57%. The air quality has improved significantly and with sound GDP growth. Therefore, air pollution control has brought economic, environmental and social benefits.

According to our preliminary statistics, air pollution control has directly and indirectly driven investment of about 4 trillion yuan as well as led to a GDP growth of 5 trillion yuan. That is a large number. Moreover, in order to improve air quality, many new technologies and new products that have been independently developed by China have been widely applied, which has effectively boosted the development of green, energy-saving and environmental protection industries such as environmental protection equipment manufacturing, comprehensive technical services, boiler renovation and new energy vehicles. Furthermore, this has created over 3 million non-agricultural jobs.

Let's take the steel industry as an example. Over the past decade, through easing overcapacity and ultra-low emission retrofitting, China's crude steel production has increased by 25% and the number of enterprises has simultaneously decreased by 29%, with the average size rising by 52%. At present, a total of over 400 million tons of crude steel have completed the ultra-low emission retrofitting. Steel enterprises have taken on an entirely new look. The director general of the World Steel Association has visited many Chinese steel enterprises that have completed the ultra-low emission retrofitting. After his visit, he said that the cleanliness of China's steel enterprises is at a level that no other country can reach, which is very shocking words in the steel industry. You can go and see by yourselves on the spot. At the same time, the ultra-low emission retrofitting has also attracted over 200 billion yuan in investments, which is a key marker of green development. Another example is clean heating. According to our statistics, Beijing, Tianjin and Hebei province have completed clean heating transition of 15 million rural households. At the beginning of the transition, a large amount of investment was needed to develop the power grid. The natural gas pipeline network was virtually nil and storage capacity was essentially non-existent. Weaknesses in energy infrastructure in rural areas needed to be shored up sooner or later. Addressing air pollution has solved this problem. The upgrading of energy infrastructure has driven more than 200 billion yuan of investment and has yielded good results. The examples I have raised are all vivid illustrations of coordinated advancements in high-quality development and high-standard protection. Air pollution prevention and control indeed does not affect the economy, but rather optimize and promote a green and high-quality development of the economy. Thank you.

United Daily News:

We have noticed that the action plan mentions strengthening international cooperation. In recent years, while the mainland has been continuing to tackle air pollution, due to factors like northeast monsoons, smog has affected not only the Chinese mainland but also neighboring regions in Asia. How do you plan to further enhance regional cooperation to jointly address air pollution in the future? Thank you. 

Liu Bingjiang:

Air pollution knows no borders. Under certain climatic conditions, air pollution can cross national borders and even continents. Each country falls victim to air pollution, and should start by reducing its own emissions, thus contributing to the improvement of regional air quality.

China is the country with the quickest improvements in air pollution reduction, contributing to improving regional air quality. Besides this, China has also actively participated in bilateral and multilateral environmental cooperation initiatives which have yield fruitful results, including those with Japan, South Korea and other countries in Northeast Asia and East Asia. Since 2019, China and South Korea have begun a cooperation program to protect the blue sky, signing and implementing lists of projects and major work arrangements under the program for five consecutive years. The two countries annually have exchanges on atmospheric environment policies and technologies, yielding practical results each year. The China-Korea Environmental Cooperation Center and the China-Korea joint environmental research laboratory have been launched, establishing platforms for both sides to cooperate on air pollution control. Under the framework of the Tripartite Environment Ministers Meeting among China, Japan and South Korea, air policy dialogues and a sandstorm joint research working group were established, providing platforms for the three countries to conduct atmospheric environmental management and scientific research. Each year, we participate in the meeting. As far as I know, South Korea has drawn on our pollution prevention and control measures for autumn and winter. Going forward, we will continue to perform well in reducing emissions and will let our experience be known through enhancing international cooperation, so as to make greater contribution to regional air quality improvements. Thank you. 

Southern Metropolis Daily:

We have noticed that the action plan places greater emphasis on green and low-carbon transformation of transportation. What measures does the action plan include for developing a green transportation system? Thank you. 

Liu Bingjiang:

You are very observant and have identified a highlight. Frankly speaking, from the Air Pollution Prevention and Control Action Plan in 2013 to the Three-year Action Plan for Blue Skies in 2018, we have been continuously exploring effective ways to address transportation-related pollution. While we have seen significant success in coal-related pollution control, pollution from mobile sources has become more prominent. Every time we experience smog, we have monitored that nitrogen oxides are a major factor driving the rapid increase in PM2.5. The annual report released by the MEE shows that mobile sources are the primary contributors to the emission of nitrogen oxides. 

For tackling transportation-related pollution sources, the action plan has much more quantified indicators compared to the Air Pollution Prevention and Control Action Plan and the Three-year Action Plan for Blue Skies. Previously, we have gathered experience and explored new paths in various aspects, and are now entering a phase of comprehensive management. The previous eight years of transportation structural adjustment has achieved fruitful results. In 2017, the Tianjin Port suspended the acceptance of coal that was transported by road, and then all ports halted coal transports by heavy trucks, marking a new national initiative to shift transportation from road to rail. Since then, rail freight volume had increased for six consecutive years. Our national rail freight volume is close to 5 billion tons, accounting for nearly 10%. That number is approximately 40% in developed countries, so we are still a long way off. 

Progress has been made in the promotion of zero-emission mobile sources. We can see that more and more buses in urban areas are becoming electric or new energy vehicles. From 2013 to 2022, the percentage of new energy vehicles in the country's 700,000 buses increased from 20% to nearly 80%. Many urban garbage trucks have also started to go green. More essentially, as we promote ultra-low emissions in steel enterprises, we require clean transportation. The annual application of hydrogen-powered and electric heavy-duty trucks has grown from zero to tens of thousands. Addressing air pollution provides application scenarios for new energy heavy-duty trucks, which results in breakthroughs. 

Emissions of motor vehicles have been reduced significantly. During the past eight years, China's motor vehicles' emission standards have aligned with international ones, and around 40 million old vehicles have been phased out. Special campaigns have been launched for non-road machinery. There have been 19 recalls involving 17 companies and 3.25 million motor vehicles due to emissions. These are concrete actions that we have taken for environmental protection. 

Breakthroughs have been made in the electrification of non-road mobile machinery. Sales of electric forklifts now account for 60%, and 94% of those under 3 tons are electric. The electrification of other non-road machinery, such as machinery at airports and ports, is also being advanced extensively. 

Given the high proportion of nitrates in PM2.5, being the primary contributor, the newly issued plan places the greatest emphasis on low-carbon and green transformation in the transportation sector. this section has the highest number of quantitative indicators and the most detailed and specific measures. We believe that the coming years will present a significant opportunity. Among these, there are several key points:

First, the adjustment of the freight transport structure is more focused on key sectors. In the coal sector, the plan strengthens requirements for medium- and long-distance transport of coal and coke from major coal-producing regions, aiming to increase the proportion of railway transportation to 90%. Meanwhile, the plan prioritizes clean transportation in the approval and supervision of coal and related industry projects, aiming to achieve "upstream supervision" of the transport process. The plan expands the scope for constructing dedicated railway lines in key industrial sectors. It specifies construction requirements for facilities handling over 1.5 million tons of annual freight, including logistics parks, industrial and mining enterprises, coal storage bases, coal mines, steel plants, thermal power stations, non-ferrous metal facilities, coking plants and coal chemical industries. In the port sector, the plan extends clean transportation targets to major coastal ports in the Guangdong-Hong Kong-Macao Greater Bay Area, aiming for 80% of iron ore and coke shipments to use clean transport methods.

Second, clean development of motor vehicles places greater emphasis on new energy. We will focus on public vehicles and heavy-duty trucks, with the aim of significantly enhancing their level of cleanliness. The plan mandates that new energy vehicles comprise no less than 80% of new acquisitions in the public sector within key regions. It also requires the development of zero-emission fleets for medium- and heavy-duty trucks, particularly in the previously mentioned industries.

Third, the plan strengthens comprehensive management of non-road mobile machinery, detailing specific and achievable requirements for both the transition to new energy alternatives and the elimination of outdated machinery.

Fourth, the plan emphasizes the full chain supervision of refined oil quality. The plan establishes a mechanism for refined oil quality supervision, requiring relevant departments to oversee the entire supply chain from imports and production to storage, sales, transportation, and usage. This oversight aims to ensure quality standards are met and to crack down on the sale of substandard oils as engine fuel. We will also intensify law enforcement efforts in this area.

Next, we'll concentrate on implementing each measure and achieving all specified targets. Thank you.

Red Star News:

The 2023 fiscal budget report shows the central government has allocated 33 billion yuan for air pollution control, emphasizing support for clean heating in northern regions during winter. Could you please provide an update on the progress of the initiative? Given rising heating costs, how can we ensure the long-term and stable operation of the initiative? What are the specific plans for the next steps? Thank you.

Liu Bingjiang:

The clean heating initiative has been underway for many years. The issue of phasing-out dispersed coal use for heating in rural households, in particular, is truly groundbreaking, involving many challenging issues. It's a topic that comes up every year. From its initial conception to its current scale of implementation, the project has transformed 37 million rural households as of the end of last year. This year, an additional 2 million households are expected to be added, reaching a total of over 39 million households. Such a large-scale project is unprecedented worldwide; it's not just an environmental project but also a livelihood improvement initiative. Currently, 88 cities have been included in the central government's financial support for clean heating, with the central fiscal budget increasing annually, reaching 33 billion yuan this year. The funds allocated for clean heating amount to half of the total, totaling 100.88 billion yuan. This initiative has achieved significant results in the revolution of energy consumption: reducing coal consumption by over 70 million tons, cutting carbon dioxide emissions by more than 100 million tons, and enabling people to bid farewell to coal heating. The way rural areas consume energy has fundamentally changed.

You mentioned that costs have increased, and stabilizing them is indeed an issue we are currently facing. Our considerations are in several main aspects: First, we will use financial funds every year to subsidize the operation of clean heating in rural areas, with subsidies from the national, provincial and municipal levels. Overall, the cost of electricity and natural gas after subsidies should not, in principle, be higher than the cost of coal. Since 2020, subsidies for clean heating have been included in the funds for air pollution prevention and control. Second, there is the issue of preferential pricing for natural gas and electricity. Urban residents receive national subsidies for gas usage, and now rural clean heating also benefits from subsidies, providing rural areas with more favorable gas prices. However, some places are not currently implementing this very well. There are also peak and off-peak electricity prices, which are well utilized. Energy needs to be stored at night and the heat released during the day, so the price is relatively low. Previously, the off-peak period was quite short, but it has now been extended. Third, there is the issue of guaranteeing the clean energy supply. This is our focus every year, coordinating with relevant departments to ensure the supply of natural gas and electricity. Fourth is supervision and assistance. The MEE inspects newly added clean heating households in rural areas every year, checking whether contracts have been signed and if they are guaranteed. For rural households that have stably adopted clean heating, if we find any issues, we will promptly coordinate and communicate with the local government to resolve them quickly.

The focus of the clean heating work has shifted from increasing the proportion of clean heating on a large scale to consolidating existing resources and adding new ones in an orderly manner. The work we are currently doing and planning to do next includes: First, we will effectively ensure the continuous operation of clean heating, consolidate the achievements of clean heating, continuously improve the long-term mechanisms of clean heating, ensure that there is management of the operations, continuation of support policies, security of heating supply, and prevention of the resurgence of isolated coal burning. Second, we will implement new clean heating transformations in an orderly manner. In areas currently rolling out clean heating, we will orderly advance according to established implementation plans; while in areas not yet being transformed, we will adhere to practical conditions and tailor measures to local circumstances to prudently implement new clean heating transformations. Third, during the transformation process, we will adhere to consistent principles, prioritize keeping people warm in winter, base transformations on gas availability, determine demand based on supply, and ensure a stable energy supply. We will establish new heating facilities before demolishing old ones. We will not remove existing coal heating facilities if the new ones do not yet have safe and stable gas supply conditions or have not undergone a year of practical operational testing. Additionally, we will persist in choosing diversified clean heating methods that are suitable for local conditions to lay a foundation for the sustainable operation of clean heating.

With the joint efforts of all departments, local governments, and all sectors of society, we are confident in continuously carrying out this significant project for the people's well-being and winning the hearts of the public, ensuring that the people's needs for a safe, clean, and warm winter are met in practice. Thank you.

China News Service:

To improve air quality and succeed in the efforts to keep the sky blue, it is necessary to introduce policy combinations in law, market, technology and policy, especially by strengthening policy support in finance, taxation and pricing. Could you please elaborate on the measures outlined in the action plan to coordinate efforts across various sectors? Thank you.

Liu Bingjiang:

The improvement in air quality we see today is felt by the public, and the cooperation between various departments has been exemplary. Frankly speaking, whenever documents needed to be signed by over 20 ministries and commissions, everyone was able to sign off quickly, which itself demonstrates support for the work. Over the past decade, concerted efforts in air pollution control have yielded excellent results, and the collaboration between departments has been very effective. Using legal, market, technological and policy measures to continuously improve air quality has been a very successful and effective "policy combination." After 10 years of effort, "breathing together, striving together" has become a norm across society, and this "policy combination " is still retained and further strengthened in the latest Action Plan for Continuous Improvement of Air Quality.

First, we leveraged the guiding role of fiscal and financial policies. Over the past decade, central government funding for air pollution prevention and control has consistently increased each year, reaching a total of over 200 billion yuan. This funding has been especially critical in addressing the difficult challenge of implementing clean heating in rural areas. The Ministry of Finance has employed a competitive evaluation method, an innovative approach that proved essential. Without this funding, initiating clean heating in these areas would not have been possible. At the same time, there has been an increase in credit financing support in related fields, promoting green finance and guiding substantial investments from social capital.

Second, we leveraged pricing policies. The implementation of pricing policies for desulfurization, denitrification, dust removal and ultra-low emission electricity has propelled China to become the world's largest clean coal-fired power generation base, with emission levels from coal-fired units as high as those from natural gas. Additionally, as I just mentioned, clean heating electricity and natural gas are offered at discounted prices. Discounts are also provided for shore power facilities at ports, and we are currently improving the mechanism for flexible adjustment of railway transportation prices. After the shift from "highways to railways," railway transportation prices will also be discounted.

Third, we will leverage the regulatory role of taxation. Every year, the country collects over 20 billion yuan in environmental protection taxes, with more than 80% coming from the atmospheric domain. By implementing preferential tax policies when companies complete ultra-low emission upgrades, we provide strong support for enterprises undertaking these improvements. Currently, environmental protection taxes primarily target particulate matter, sulfur dioxide and nitrogen oxides. Moving forward, we will strengthen tax policy support, improve the environmental protection tax collection system, and accelerate efforts to expand the tax scope to include VOCs. This will enhance taxation's role in providing incentives and constraints, encouraging companies to reduce VOC emissions by ensuring that those who emit more pay more, and those who emit less pay less.

Fourth, we will improve the legal and regulatory standards system. Energy consumption and air pollutant emission standards for key industries have already been clearly defined. Moving forward, we will continue to strengthen the legal and regulatory framework, research and revise relevant laws, and initiate studies on revising air quality standards and related technical specifications.

Fifth, we will enhance technological support. Technological advancements have played a significant role in air pollution prevention and control. Currently, scientists are tackling challenging issues and making promising progress, particularly in areas such as composite pollution control, understanding air pollution transmission mechanisms, precise pollutant tracing and smart regulation.

In summary, this comprehensive approach has been highly successful over the past decade and will continue to be effective in achieving future air quality improvement goals. Thank you.

Farmers' Daily, farmer.com.cn: 

"Building beautiful villages" is a crucial part of creating a "Beautiful China." How does the action plan ensure sustained air quality improvement in rural areas? Thank you.

Liu Bingjiang:

Thank you for your question. Air quality improvement efforts are applied equally across all areas. However, several issues in rural areas warrant extra attention, such as pollution spreading to rural areas. We've mandated strict project approval processes to prevent this spread of pollution. We require consistent environmental impact assessments for new projects in key air-polluting industries within 20 kilometers of provincial borders. We're also addressing several specific issues in rural areas.

First, let's consider the example of rural coal use, where significant progress has been made. This has directly addressed indoor air pollution for rural residents, ending the era of smoke-filled homes. Previously, both outdoor and indoor pollution were major concerns, with indoor PM2.5 levels often exceeding 200 micrograms per cubic meter when coal was used for cooking. Thanks to effective coal control measures, this issue has been largely resolved. However, outdoor pollution persists in certain areas, particularly in rural farming, animal husbandry and agricultural product processing, where coal is still widely used. Activities like tobacco curing, mushroom cultivation and grain processing often involve burning coal directly without emissions controls. To address this, we've mandated comprehensive measures to curb these polluting practices. Successful examples already exist, such as Henan's "coal-to-electricity" project for tobacco curing, which has improved product quality while effectively eliminating direct pollution emissions. Moving forward, we'll prioritize replacing coal, small boilers and small kilns with electricity where feasible in rural farming, animal husbandry and agricultural processing.

Second, for the first time, we are focusing on reducing atmospheric ammonia emissions from rural animal husbandry. While sulfates, nitrates, primary particulate matter and VOCs are well-established sources of PM2.5, ammonium salts have emerged as a significant concern. These salts stem from ammonia released during nitrogen fertilizer application and emissions from livestock farming. The action plan introduces measures to adjust feed composition and optimize nitrogen fertilizer use. It targets a 5% reduction in atmospheric ammonia emissions from large-scale livestock and poultry farms in the Beijing-Tianjin-Hebei region and surrounding areas. Environmental and agricultural departments are also developing policies and launching pilot programs to address this issue effectively.

Third, the widespread use of high-emission farm equipment during planting and harvest seasons poses a significant challenge. These machines often fail to meet emission standards and lack pollution controls, representing a weakness in our pollution management efforts. Additionally, rural pollution also includes other issues, such as straw burning. While pollution transport is a concern, rural production and lifestyle practices also contribute to inherent air quality issues. We hope everyone will join forces to effectively address these challenges, ensuring rural areas live up to their envisioned image of fresh air and picturesque landscapes. Thank you.

Xie Yingjun:

Today's policy briefing concludes here. Thank you, Mr. Liu, and thanks to all media representatives.

Translated and edited by Wang Yiming, Wang Qian, Zhu Bochen, Zhang Rui, Wang Ziteng, Yuan Fang, Liu Caiyi, Zhou Jing, Yang Xi, Ma Yujia, Xu Kailin, Huang Shan, Liu Jianing, Liu Sitong, Yang Chuanli, Li Huiru, Qin Qi, 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:

Ms. He Rong, minister of justice

Ms. Liu Changchun, director general of the Secretariat of the Office of the Commission for Overall Law-Based Governance of the CPC Central Committee

Mr. Zhang Yaoming, director general of the First Bureau of Legislation of the Ministry of Justice (MOJ)

Mr. Tian Xin, director general of the Bureau of Lawyers' Work of the MOJ

Ms. Du Yaling, director general of the Bureau of International Cooperation of the MOJ

Chairperson:

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

Date:

Nov. 23, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 30th press conference in the series "Embarking on the New Journey — A Government Perspective." We have invited Ms. He Rong, minister of justice, to brief you on strengthening the rule of law to support high-quality development, and to take your questions. Also present at today's press conference are Ms. Liu Changchun, director general of the Secretariat of the Office of the Commission for Overall Law-based Governance of the CPC Central Committee; Mr. Zhang Yaoming, director general of the First Bureau of Legislation of the Ministry of Justice (MOJ); Mr. Tian Xin, director general of the Bureau of Lawyers' Work of the MOJ; and Ms. Du Yaling, director general of the Bureau of International Cooperation of the MOJ. 

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

He Rong:

Ladies and gentlemen, friends from the media, greetings to you all. I would like to express my sincere gratitude to you for your care and support for the work of justice and administration.  

In recent years, the MOJ has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, comprehensively implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC), thoroughly practiced Xi Jinping Thought on the Rule of Law, and earnestly performed relevant duties of the Office of the Commission for Overall Law-Based Governance of the CPC Central Committee at the MOJ. We have coordinated our efforts to fulfill the tasks related to the overall law-based governance, and taken solid steps to advance such areas as legislation, law-based government administration, punishment execution, public legal services, and foreign-related rule of law. The report to the 20th CPC National Congress lays out specific deployments of promoting the rule of law, and underlines advancing the rule of law in domestic and foreign-related affairs in a coordinated manner. Today, I will focus on how in recent years, and especially this year, the MOJ has performed its functions of advancing foreign-related rule of law to promote high-quality development and high-standard opening up. This is mainly presented in the following aspects:

First, based on our duties, we have implemented the major deployments made by the CPC Central Committee for foreign-related rule of law in a coordinated manner. We aim to accelerate the development of a strategic layout of foreign-related rule of law and the establishment of a system of laws that is applicable beyond the national jurisdiction, improve the judicial capacity of foreign-related law enforcement, and enhance talent training regarding foreign-related rule of law. To this end, we have stepped up research and coordination, and formulated and issued related guidelines, thoroughly implementing the decisions and deployments made by the CPC Central Committee based on our functions. 

Second, we have expedited establishing a well-conceived system of foreign-related laws and regulations. Following the arrangements of the CPC Central Committee and the State Council, we have implemented the legislation work plans made by the Standing Committee of the National People's Congress (NPC) and the State Council, and endeavored to improve the quality and efficiency of foreign-related legislation. We have worked with relevant departments in researching, drafting, reviewing and revising important and fundamental laws and regulations such as the Law on Foreign Relations, Law on Foreign State Immunity and Regulation on Consular Protection and Assistance. The MOJ is leading the revision of the Arbitration Law to further refine an arbitration system with Chinese characteristics and providing more open foreign-related arbitration services. It is fair to say that China's foreign-related legal system has been constantly improving. Currently, a group of foreign-related legislation projects including the Anti-Money Laundering Law are gaining significant momentum. 

Third, we have deepened exchange and cooperation on the rule of law. The MOJ takes responsibility for conducting international cooperation on the rule of law and serves as the international department (central government organ) of judicial assistance as per the treaties on international judicial assistance. This September, we held the 10th Meeting of the Shanghai Cooperation Organization (SCO) Ministers of Justice and General Secretary Xi Jinping sent a letter of congratulations to the meeting. The meeting witnessed the signing of a joint statement among participating parties and secured fruitful outcomes. We have intensified exchanges with other countries and international organizations such as the United Nations Office on Drugs and Crime, and deepened pragmatic cooperation in such fields as fighting cross-border crime, providing legal services and judicial assistance, and transferring sentenced persons. We have also bolstered our efforts to advance the signing of and compliance in judicial assistance treaties in international criminal, civil and commercial matters, playing an active role in guaranteeing economic growth as well as social safety and stability of different countries through the rule of law. Currently, China has signed bilateral judicial assistance treaties with 86 countries, and treaties on the transfer of sentenced persons with 17 nations. On average, more than 300 judicial assistance requests in international criminal matters and over 3,000 requests in civil and commercial matters have been handled annually.

Fourth, we have sped up to improve foreign-related legal services, which is an issue of common concern. Recently, at the 2023 Asia-Pacific Regional Arbitration Group (APRAG) Conference, we pledged support for accelerating the building of international commercial arbitration centers in Beijing, Shanghai, Guangdong, and Hainan. Meanwhile, we have enhanced foreign-related legal work such as work of lawyers, notarization, and commercial conciliation, jointly conducted overseas notarization via video link with overseas embassies and consulates, fostered commercial conciliation organizations, and coordinated all kinds of foreign-related legal resources. All these facilitate Chinese people and enterprises to go global. We have fully leveraged the role of the Belt and Road International Lawyers Association, established legal cooperation platforms for countries and regions along the Belt and Road, and provided higher-quality legal services on international trade, cross-border investment, and maritime affairs. At present, Chinese law firms have set up 180 branches in 35 countries and regions, with over 12,000 foreign-related lawyers. We will stay committed to fostering more foreign-related lawyers of high caliber. Since this year, more than 2.5 million cases of foreign-related notarization have been handled across China, with notarial documents sent to more than 180 countries and regions. In addition, more than 3,000 arbitration cases related to over 100 countries and regions have been handled in such areas as finance, construction, contracts, intellectual property rights, and digital economy. The total value handled amounted to over 100 billion yuan. 

Fifth, we have stepped up the cultivation of high-caliber talent for handling foreign-related matters as well as Hong Kong-and-Macao-related legal cases. We have formulated "Opinions on Strengthening Legal Education and Legal Theory Research in the New Era" with relevant departments, which was issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council. The "Opinions" document sets out a curriculum regarding the study of foreign-related law and the cultivation of foreign-related legal talent. At present, we are expediting the building of national-level foreign-related research bases on law-based governance and improving our abilities to conduct theoretical research on and the application of international laws. In cooperation with the Ministry of Education, we have hosted programs in some colleges to cultivate foreign-related lawyers and postgraduates who majored in international arbitration. We enhanced the cultivation of foreign-related lawyers, formed a national list of 1,000 talented foreign-related lawyers, and constructed a talent pool on foreign-related arbitration, thus providing legal talent support for Chinese modernization. We have prolonged a program for another three years to enable law practitioners from Hong Kong and Macao to practice law in nine cities of the Guangdong-Hong Kong-Macao Greater Bay Area. Some of our friends from the media at present today come from Hong Kong and Macao. The measure has been welcomed by law practitioners in Hong Kong and Macao and other fields of society, promoting them to further engage in national development. 

That's all for my introduction. We will answer your questions. Thank you. 

Chen Wenjun:

Thank you, Ms. He. The floor is now open for questions. Please identify the media outlet you represent before posing your questions.

CCTV:

What measures has the MOJ taken in building a market-oriented, law-based, and internationalized business environment? Thank you. 

He Rong:

I will answer the question. It's a good and important question. The market economy is a law-based credit economy. Law-based governance guarantees the consolidation of a foundation, stabilization of expectations, and benefit of long-term goals, which are crucial for high-level opening up. We have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council and taken pragmatic measures to improve the business environment. 

On the aspect of legislation aimed at improving the business environment, we have made efforts to equally protect the legitimate rights and interests of various entrepreneurs and enterprises under all forms of ownership according to the law, by formulating and revising laws and regulations. This includes state-owned, private, and foreign enterprises. We have provided and implemented equitable and law-based protection to all kinds of enterprises, including domestic and foreign, state-owned and private, large, medium, small, and micro businesses so as to facilitate the optimization of the systems and regulations related to property rights protection, market access, fair competition, and social credit. This year, the Regulation on the Supervision and Administration of Private Investment Funds has been formulated and issued, and the revision of other important laws concerning public bidding, accounting, insurance, and anti-unfair competition have been accelerated. At the same time, we also beefed up our work to remove provisions in administrative regulations that disobey equity. Since the beginning of this year, the MOJ carried out a special campaign to concentrate on removing such provisions in all the 602 administrative regulations. We have already published two batches of results to the public and will publish a third batch as soon as possible. Last month, 33 kinds of fines were abolished or adjusted involving various fields and business entities, which effectively eased the burden of business entities and served the building of a fair, transparent, predictable, and law-based business environment.

For another example, on the aspect of enforcing the law in a strict, procedure-based, impartial, and non-abusive way, we have launched a three-year campaign to improve the quality of administrative law enforcement and deepened the initiative of "less certificates, more convenience." We have intensified the supervision of enterprise-related administrative law enforcement and corrected wrongdoings according to the law, such as failing to fulfill duties, acting arbitrarily, behaving uncivilly, or enforcing the law in a way that was not based on procedure. At the same time, we have prepared the implementation of the newly revised Administrative Review Law, which will come into effect on Jan. 1, 2024. We will give full play to administrative review as the main channel in resolving administrative disputes, enhancing coordination and cooperation with people's courts, and jointly promoting law-based government administration.

What's more, concerning the provision of high-quality legal services for market entities, we have integrated multiple functions, including lawyers, notarization, arbitration, and mediation; provided legal services like compliance management, risk prevention, and dispute resolution for enterprises; and supported the chamber of commerce to carry out individual mediation. At present, more than 11,000 professional mediation committees have been established in various enterprises, and over 3,100 mediation organizations have been established via the chamber of commerce, both of which have played important roles in practice. Since last year, more than 1.5 million enterprise-related dispute cases have been resolved. Meanwhile, we have provided legal publicity for enterprises in the context of the eighth five-year plan on improving legal awareness 2021-2025, involving the participation of numerous journalists. Our goal is to promote the concept of the rule of law and the spirit of contracts, striving to create a market environment and atmosphere advocating integrity, honesty and adherence to honoring agreements. Thank you. 

Cover News:

The report to the 20th CPC National Congress said that building a law-based government is a key task and a major part of comprehensively advancing law-based governance. What has the MOJ done to holistically promote law-based governance, and what results have you achieved? Thank you.

Zhang Yaoming:

Thank you for your question. The MOJ has earnestly implemented a series of major policy decisions and deployments by the CPC Central Committee and the State Council to build a law-based government, and we have achieved remarkable results in this endeavor. In particular, we have adopted a two-pronged approach involving responsibility supervision and creation of demonstration items to coordinate the construction of a law-based government. Responsibility supervision places emphasis on strengthening accountability, ensuring the timely identification and resolution of problems to establish a closed-loop system of responsibility. The work to create demonstration items focuses on setting good examples and motivating others to follow suit. I would like to provide you with some details of our work to create demonstration items.

In recent years, we have organized two rounds of national campaigns to create demonstration items for the building of a law-based government, creating a strong atmosphere of striving for excellence in the construction of a law-based government. It's proven that such campaigns have played a significant role in accelerating the overall improvement of the construction of a law-based government.

First, such campaigns have served as a robust starting point for coordinating the development of a law-based government at the primary level. The foundation and emphasis of building a law-based government are rooted at the primary level. The targets of the campaigns for creating demonstration items are local city and county governments. By establishing the criteria for creating exemplary, law-based governments at city and county levels, we focus on evaluating key aspects such as decision-making by city and county governments in accordance with the law, the strict and standardized enforcement of laws in a fair and civilized manner, and the level of rule of law literacy among government officials. Through this evaluation process, we can identify gaps, address weaknesses, and work diligently to encourage city and county governments to enhance their administration according to the law.

Second, through these campaigns, our aspiration to build a law-based government that satisfies the public has been shown clearly. Building a law-based government is for the people and by the people. We have consistently adhered to the concept of people-centered development, focusing on optimizing public services and involving the public in policymaking, as well as strengthening law enforcement in key areas that directly impact the interests of the people. We have regarded people's experiences as an important evaluation criterion and responded to their concerns in a timely manner. Simultaneously, we have conducted extensive evaluations through third-party professional organizations to measure people's satisfaction with the construction of law-based local governments, fully reflecting people's sense of progress in building a law-based government.

Third, we have set good examples of building a law-based government in the new era. To date, a total of 90 comprehensive demonstration areas and 83 individual demonstration projects have been selected across the country. Local authorities have consistently enhanced their publicity and promotional efforts, fully capitalizing on the driving force of designated demonstration areas and projects. This has provided guidance for elevating the overall level of law-based government construction in local areas and provided a strong legal guarantee for promoting local economic and social development.

Currently, we are organizing a third round of national campaign to create more demonstration items for law-based government construction. All regions have shown great enthusiasm to participate, and a tentative list of comprehensive demonstration areas and demonstration projects will be selected in the second half of next year. Thank you.

Hong Kong Bauhinia Magazine:

This year marks the 10th anniversary of the Belt and Road Initiative (BRI). What measures has the MOJ taken to provide services and support for the BRI, and what achievements have been accomplished? Thanks.

Tian Xin:

Thank you for your questions. We have fulfilled our duties and firmly advanced our work to provide legal guarantees for BRI cooperation, making significant progress. 

First, we have deepened international exchanges and cooperation regarding law-based governance. Under the BRI, we launched a program to foster legal service professionals and strived to establish a comprehensive platform for legal services. These outcomes were included in a list of practical cooperation deliverables formed at the third Belt and Road Forum for International Cooperation. We have continued to deepen international exchange and cooperation in the realm of law-based governance by collaborating with organizations such as the U.N. Commission on Crime Prevention and Criminal Justice. We have signed exchange and cooperation plans, memoranda of understanding, and other bilateral cooperation documents with the justice departments of nearly 30 BRI partner countries, effectively improving mutual trust in the field of justice.

Second, we have ensured that legal services provide as much support as possible. We have encouraged Chinese lawyers to help Chinese enterprises operating overseas strengthen their compliance management, and establish and improve mechanisms for preventing and addressing overseas investment risks, thus providing high-quality and efficient legal services for BRI cooperation. Chinese law firms have established 63 branch offices in 24 BRI partner countries, while law firms from seven BRI partner countries have set up 24 representative agencies in China. A number of international commercial mediation organizations have been established in locations such as Shanghai, Guangdong, and Hainan to serve BRI development. We have strived to create a database of laws and regulations from major countries worldwide. This database includes relevant legal articles from 80 BRI partner countries, enabling law-based governance to support BRI cooperation.

Third, we have encouraged the Belt and Road International Lawyers Association (BRILA) to fully fulfill its roles. Founded by the All China Lawyers' Association, BRILA provides a platform for exchange among lawyers from BRI partner countries. At present, BRILA has more than 2,600 members at home and abroad, spanning 54 countries and regions. With nine special committees and 34 working groups dedicated to specific countries and regions, BRILA has played a positive role in deepening exchange and cooperation among lawyers from BRI partner countries and enhancing the provision of legal services. Thank you.

Nanfang Metropolis Daily:

We have observed that to get notarization services, people have to provide a plethora of documents and endure a relatively lengthy waiting period, among other issues. So, what measures has the MOJ taken to streamline notarization for the public? Thank you.

Liu Changchun:

Thank you for the question. In recent years, the MOJ has prioritized notarization-related issues that are of the greatest concern to the public and has implemented a number of measures accordingly. These measures include the adjustment of lists of documents required for notarization, with the aim of enhancing law-based governance and better satisfying the public.

First, we have continued to trim the lists of documents needed for notarization. Since the public often finds it burdensome to provide numerous documents for notarization and has developed strong sentiments on this matter, the MOJ thoroughly sorted the document lists compiled by local authorities, eliminating unnecessary items. Documents that can be independently verified by notary offices or accessed through government information-sharing systems are no longer required to be provided by the public. If the facts are clear and the legal relationship is simple, the supplementary documents needed for notarization need not be original copies. Following the revision of the previous lists, we issued the List of Supporting Documents for Notarial Matters (2023 Edition), which covers 81 notarial matters in 33 categories, in June, eliminating 116 unnecessary documents, amounting to a reduction of 29.3%. With this, we solved the problem of repetitive and unnecessary efforts, gaining widespread recognition from the public.

Second, we have continuously optimized our notarization services. To ensure the well-being of the people and enhance the business environment in key areas, the MOJ has instructed local authorities to expand the scope of one-stop handling of all notarization matters, fully implementing the one-time notification system. We have established a collaborative mechanism between notarization and consular authentication, achieving "one application, one-window acceptance, and coordinated processing," thus overcoming the "last-mile challenge" in the notarization and authentication process. We have also launched the "Internet Plus Notarization" initiative and promoted the "cross-provincial handling" of certain notarization matters. We have selected 295 notarization institutions to collaborate with overseas embassies and consulates in conducting remote video notarization, meeting the notarization service needs of Chinese citizens abroad.

Third, we have successfully reduced the burden on the public for notarization. We have enhanced the mechanism for determining notarization service prices, clearly identifying basic notarization services crucial to people's livelihoods. We have also offered guidance to local authorities to waive or reduce notarization fees for special groups, such as low-income individuals and older adults, in accordance with regulations. Since the beginning of this year, we have processed over 11,000 will notarizations for elderly individuals free of charge. Thank you.

Red Star News:

As a legislative department, what specific measures has the MOJ taken to provide high-quality legislative services to ensure the overall work of the Party and the country? Thank you.

Zhang Yaoming:

Thank you for your attention to legislative work. The MOJ has resolutely implemented the major decisions and arrangements made at the 20th CPC National Congress and has thoroughly implemented Xi Jinping Thought on the Rule of Law. We have consistently provided high-quality legislative services to ensure the development of the Party and the country, and we have carried out various tasks related to administrative legislation in an orderly and effective manner. Since the beginning of this year, we have completed 41 legislative projects urgently needed for reform and eagerly anticipated by the public. For example, we have submitted draft laws to the Standing Committee of the National People's Congress for review, including the draft of The Tariff Law, the revised draft of The Law on the Protection of Cultural Relics, the revised draft of The Law on Prevention and Treatment of Infectious Diseases, and the revised draft of The Food Security Law. We have also submitted regulations to the State Council, such as the Regulations on the Supervision and Administration of Private Investment Funds, Regulations on the Protection of Minors in Cyberspace, Regulations on the Administration of Social Insurance, and Interim Regulations on the Management of Unmanned Aerial Vehicles.

Our specific approach are as follows: First, we adhere to highlighting priorities and addressing urgent needs, always keeping in mind the responsibility of serving matters of national significance. We have prioritized major legislative projects and significant legislative tasks assigned by the CPC Central Committee. We have improved the institutional systems urgently needed for national governance, essential for meeting the people's ever-growing needs for a better life, and crucial for safeguarding national security. We have actively promoted legislation in key areas, emerging fields, and foreign-related domains. Regarding legislation in foreign-related domains, as Ms. He mentioned, we have amended the arbitration law. We have actively drawn on the UNCITRAL Model Law on International Commercial Arbitration and international experiences and practices in our work. We have aligned with internationally accepted rules, enabling both domestic and foreign enterprises to resolve disputes fairly and in accordance with the law within our country. All these efforts have provided legal guarantees for nurturing world-class arbitration institutions, advancing the construction of the international commercial arbitration center, and creating a new pinnacle for international dispute resolution and legal services.

Second, we strengthened communication and coordination and took decisive action on focal points of conflicts. To comprehensively advance the implementation of the legislative plan of the Standing Committee of the 14th NPC and the annual legislative work plan of the State Council, we proactively enhanced communication and coordination with the drafting departments of major legislative projects with tight timelines. We intervened proactively when necessary, accelerated the progress, and established cross-departmental and high-level task forces to coordinate efforts and concentrate on implementation. We also intensified consultation, study, judgment, supervision, and guidance, employing various means to foster consensus among all parties and facilitate the smooth completion of legislative projects.

Third, we coordinated the formulation, revision, abolition, and interpretation of laws to provide legal support for major national reforms. We are committed to advancing reforms within the framework of the rule of law and enhancing the rule of law in the process of reform. We have offered legal safeguards for initiatives such as the pilot cross-provincial marriage registration program for mainland residents, the development of the Hainan Free Trade Port, and the establishment of National Ecology Day. Additionally, we introduced reform measures to advance exploring and piloting efforts in an orderly manner. Thank you.

CNR:

General Secretary Xi Jinping emphasized that developing the rule of law should not only focus on addressing existing issues but also preventing potential problems. What achievements have been made in people's mediation, and what measures will be taken next? Thank you.

Liu Changchun:

I will take this question. Throughout this year, judicial and administrative authorities at all levels have diligently implemented the important instructions of General Secretary Xi Jinping and the decisions and arrangements of the Party Central Committee. Following the "Fengqiao model," we have steadfastly advanced the mediation work, fully leveraging its foundational role in resolving conflicts and disputes. On Oct. 8, the MOJ and the Supreme People's Court jointly convened a national conference on mediation, outlining plans for thoroughly studying and implementing General Secretary Xi Jinping's important instructions and ensuring effective mediation in the new era and on the new journey. Specific achievements include:

First, the network of mediation organizations has been continuously strengthened. Nearly 700,000 people's mediation committees have now been established nationwide, forming a comprehensive organizational network covering urban and rural areas, key sectors, and units.

Second, the number of people's mediators continues to grow. China has nearly 3.2 million people's mediators, including over 410,000 full-time mediators. The composition of mediators has been further optimized and their capabilities have been enhanced.

Third, the mediation system and mechanism have seen continuous improvement. The methods of mediation have become more convenient and efficient, and the institutionalization and standardization of the mediation work have been further strengthened.

Fourth, the effectiveness of mediation has been consistently enhanced. From January to September this year, 11.8 million conflicts and disputes were mediated, of which a significant portion were resolved at the grassroots level and before reaching litigation.

In the next phase, judicial and administrative organs will further strengthen the standardized construction of people's mediation organizations, improve the grassroots network of these organizations, and enhance and standardize mediation teams in fields closely related to people's production and life, such as medical care, road traffic, and labor disputes. The training of high-caliber people's mediators will be accelerated, and the building of a full-time mediator team will be vigorously strengthened. Our focus will remain on resolving conflicts and disputes at the grassroots level and in key areas, enhancing the coordination between litigation and mediation, and continually achieving new results in people's mediation. Thank you.

CGTN: 

Would you please introduce the MOJ's work regarding international exchange and cooperation, as well as its involvement in shaping international rules? Thank you.

Du Yaling:

Thank you for your question. As is widely recognized, law-based governance is an important achievement of human political civilization and serves as the shared foundation for international communication and cooperation. Fulfilling its duties in the administration of justice, the MOJ has been actively engaged in international exchange and cooperation on the rule of law, as well as the formulation of international rules. Here are our main work carried out this year:

First, we have promoted the establishment of the mechanism of the Meeting of the SCO Ministers of Justice. As Ms. He just introduced, the ministry successfully hosted the 10th Meeting of the SCO Ministers of Justice in September. The justice ministers signed a joint statement during the meeting, agreeing to enhance cooperation in legal services and promote law-based governance among SCO member states. Additionally, the MOJ signed an annual cooperation framework with its counterpart in Russia and a cooperation plan with its counterpart in Kyrgyzstan, injecting strong momentum into regional and foreign-related rule of law.

Second, we have carried out high-level diplomacy regarding the rule of law. We participated in the country's major foreign affairs activities, including the seventh China-Germany inter-governmental consultation, the eighth meeting of the China-Russia law-enforcement and security cooperation mechanism, and the fourth China-Germany high-level security dialogue. We reached consensus on strengthening exchanges and cooperation on the rule of law with foreign guests such as the prosecutor general of Russia, the minister of public security of Vietnam, the minister of justice and internal affairs of Mongolia, and the director-general of the United Nations Office at Vienna and executive director of the U.N. Office on Drugs and Crime. We conducted exchanges with Germany, France, Finland, and Singapore under existing bilateral mechanisms, and implemented the outcomes of the bilateral meetings between Chinese and Belarusian leaders during the SCO Samarkand Summit, continuously expanding our network of friends in the realm of law-based governance.

Third, we have actively participated in cooperation on multilateral platforms, including at the U.N. The MOJ holds a leading position as the national department responsible for crime prevention and criminal justice within the U.N. framework. We have proactively organized and taken part in relevant meetings of the U.N. Commission on Crime Prevention and Criminal Justice while strengthening collaborations with international organizations like the U.N. Office on Drugs and Crime. By doing so, we have been actively engaged in international governance and rulemaking.

Fourth, we have carried out international judicial assistance in an orderly manner. International judicial assistance is an important component of global governance. The MOJ is committed to being in contact with overseas parties, and manages judicial assistance and prisoner transfer cases in compliance with the law and relevant agreements. This year, we processed 206 requests for criminal judicial assistance and more than 2,200 requests for civil and commercial judicial assistance. In addition, we have approved the transfer of convicted individuals to 32 countries, continuously enhancing mutual trust and cooperation in judicial matters and improving the legal basis for international collaboration.

Fifth, we have effectively advanced the legal review of treaties. Since the 20th CPC National Congress, we have completed legal reviews of 16 treaties, including the WTO Agreement on Fisheries Subsidies, the Reference Paper on Services Domestic Regulation, the Protocol on Iran's SCO Membership, and the U.N. Protocol Against the Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition. We have requested the State Council to promulgate the Measures for the Administration of Conclusion of Treaties, enhancing the level of law-based governance and standardization in international treaty conclusion work. We have actively participated in major treaty negotiations such as the WTO Investment Facilitation Agreement and the Digital Economy Partnership Agreement. Additionally, we have conducted research on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, thereby providing legal assurance for China's participation in and leadership of international rulemaking. Thank you.

Phoenix TV:

We have been closely monitoring the development of the Guangdong-Hong Kong-Macao Greater Bay Area. Could you please provide an overview of the measures taken by the MOJ to support lawyers from Hong Kong and Macao in their participation in the Greater Bay Area's development? What achievements have been made so far? Thank you.

Tian Xin:

Thank you. Just now, Minister He mentioned that the development of the Greater Bay Area has received considerable attention from lawyers in Hong Kong and Macao. Let me briefly introduce the relevant situation. In recent years, the MOJ has diligently implemented the decisions and plans of the CPC Central Committee and the State Council. We have successively issued a series of policies and measures, including ones on the establishment of representative offices on the Chinese mainland by Hong Kong and Macao law firms, partnerships between mainland and Hong Kong and Macao law firms, participation of Hong Kong and Macao residents in mainland legal professional qualification exams and their applications for legal practice, and the engagement of Hong Kong and Macao lawyers as legal consultants in mainland law firms. These policies and measures fully harness the professional capabilities of Hong Kong and Macao law firms and lawyers, promoting better integration of the legal profession in Hong Kong and Macao into the overall development of the country and yielding significant results.

In particular, to implement the decisions and plans of the central government regarding the development of the Greater Bay Area and to support the participation of lawyers from Hong Kong and Macao in the Greater Bay Area's development, the MOJ actively promotes the pilot work of mainland practice by lawyers from Hong Kong and Macao in the Greater Bay Area. We have organized policy promotion, legal knowledge training, exam organization and implementation while also guiding the Department of Justice of Guangdong Province to ensure lawyer practice permits and management services, providing favorable conditions for lawyers from Hong Kong and Macao to practice in the nine mainland cities of the Greater Bay Area.

Through the collaborative efforts of all relevant parties, the pilot work has achieved results. Currently, three lawyer practice exams for the Greater Bay Area have been successfully conducted, with over 1,500 lawyers from Hong Kong and Macao registering for these exams. Among them, 372 lawyers have obtained lawyer practice licenses in the Greater Bay Area. Leveraging their expertise in Hong Kong and Macao laws, as well as in relevant foreign laws, and their proficiency in mainland laws, lawyers in the Greater Bay Area have played a professional role in handling legal affairs with foreign involvement or the involvement of Hong Kong or Macao in such areas as civil and commercial litigation and arbitration, investment, and intellectual property. They have provided high-quality and efficient legal services to support the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area.

This year, the MOJ promptly recommended extending the pilot period for lawyers from Hong Kong and Macao practicing in the Greater Bay Area and revising the pilot measures accordingly, and drafted relevant proposals and documents. Then the Standing Committee of the National People's Congress adopted a decision on this matter, whereby the General Office of the State Council revised the pilot measures. With these moves, the pilot period for lawyers from Hong Kong and Macao practicing in the mainland cities of the Greater Bay Area has been extended by three years. The entry requirements for the exam have also been appropriately lowered, and the coverage of the pilot policies has been expanded, generating enthusiastic responses in the legal communities of Hong Kong and Macao.

In the future, the MOJ will continue to refine policies to open up the mainland legal service sector to Hong Kong and Macao firms and lawyers. We will explore and develop supportive measures and mechanisms for the pilot mainland practice of lawyers from Hong Kong and Macao in the Greater Bay Area, providing additional opportunities and platforms for them to practice on the mainland. We welcome more law firms and lawyers from Hong Kong and Macao to develop their businesses and careers here, actively participating in the promotion of the rule of law in the country and contributing their expertise and strength to the advancement of Chinese-style modernization. Thank you.

Chen Wenjun:

The last two questions, please. 

ThePaper.cn:

We have observed that China's foreign-related legal services have experienced rapid development in recent years. What specific measures has the MOJ taken to protect the legitimate rights and interests of Chinese citizens and enterprises? Could you please provide more details on the achievements that have been made in this regard? Thank you.

Tian Xin:

I will address your questions. The MOJ has consistently prioritized foreign-related legal affairs, implementing various measures and vigorously promoting the growth of foreign-related legal services to support China's high-quality opening-up.

First, we have advanced the development of foreign-related legal service institutions, promoted the growth of world-class law firms, and collaborated with relevant departments to enhance policies and measures to enable more Chinese lawyers to enter the global stage. Compared to 2018, the number of overseas branches of Chinese law firms has increased by 47.5%. These branches have played a positive role in boosting Chinese and foreign economic and trade relations, as well as international cooperation, by enhancing legal services across multiple fields, including investment, energy, basic infrastructure, intellectual property rights, and tax matters. The MOJ has supported nine domestic arbitral institutions in participating in the Supreme People's Court's "one-stop" diversified international commercial dispute settlement mechanism. Additionally, the ministry has advocated for the China International Economic and Trade Arbitration Commission to establish branches in North America and Europe.

Second, we have expedited the training of talents in foreign-related legal services. The ministry has introduced relevant training measures and adopted a multi-method, multi-tiered, and field-based approach to facilitate the development of high-quality lawyers in foreign-related legal services. The ministry has conducted three senior training sessions for foreign-related lawyers and 10 training sessions for talent in foreign-related legal services. Compared to 2018, the number of foreign-related lawyers nationwide has surged by more than 4,800, representing a 67.8% increase.

Third, we have deepened international cooperation in legal services. During the 10th Meeting of the Shanghai Cooperation Organization Ministers of Justice, we convened the International Legal Services Forum themed on "Deepening cooperation in legal services to boost regional economic and trade development," promoting international exchanges to achieve practical results. The ministry has also held legal services exhibitions at the China International Fair for Trade for three consecutive years, inviting 139 foreign-related legal service institutions to participate in the fair to further enhance the global presence of Chinese foreign-related legal service agencies.

Fourth, we have steadily promoted the opening-up of the legal service industry. The ministry has supported foreign law firms in establishing representative offices in China and conducted pilot programs allowing Chinese law firms to recruit foreign legal advisors and assign lawyers to serve as legal advisors to overseas counterparts and vice versa. To date, a total of 158 overseas law firms from 20 countries have established 208 representative offices in China. Overseas arbitral institutions are allowed to conduct foreign-related arbitration business in designated areas, with the WIPO Arbitration and Mediation Center having established its branch institution in the Shanghai Pilot Free Trade Zone. Thank you.

Legal Daily:

Talents are one of the driving forces for the development of various industries. Could you please provide information on the measures the MOJ has taken to strengthen the training of legal professionals specializing in foreign-related matters? Thank you.

Liu Changchun:

Let me respond to your question. The cultivation of legal professionals specializing in foreign-related matters is foundational to the development of foreign-related rule of law. In this regard, our efforts have primarily focused on the following initiatives.

First, based on our responsibilities, we have implemented the "Opinions on Strengthening Legal Education and Legal Theoretical Research in the New Era" issued by the General Office of the CPC Central Committee and the General Office of the State Council. This involves enhancing the macro-guidance of the Secretariat of the Office of the Commission for Overall Law-Based Governance of the CPC Central Committee on legal education and the guidance of the State Council's education authorities and judicial administrative departments on legal education in colleges and universities. We have also deployed a series of key tasks in the construction of the law school system, legal education system and legal theory research system. This includes improving the professional setting of foreign-related law disciplines and strengthening the construction of international law disciplines. The Secretariat of the Office of the Commission for Overall Law-Based Governance of the CPC Central Committee has coordinated the implementation of the opinions and worked closely with relevant departments to promote the implementation of the tasks.

Second, we have strengthened the construction of training bases for legal professionals specializing in foreign-related matters. In collaboration with relevant departments, we have identified a number of national-level foreign-related rule of law research bases, and jointly deployed and carried out the construction of innovative bases for collaborative training of legal professionals specializing in foreign-related matters. This initiative is centered around addressing the national strategic needs in foreign-related rule of law, and accelerating the training of legal professionals specializing in this domain.

Third, we have strengthened the development of legal service teams specializing in foreign-related matters. In collaboration with the Ministry of Education, we have implemented two professional master's degree graduate training law programs for foreign-related lawyers and international arbitration at selected universities, recruiting and training 1,157 postgraduates of law for foreign-related lawyers and 427 postgraduates of law in international arbitration. We established a "Belt and Road Initiative" cross-border lawyer talent pool, which included 143 domestic and foreign law firms and 205 domestic and foreign lawyers. Through selection, we have formed a talent list of thousands of foreign-related lawyers across the country covering cross-border investment, international trade, civil and commercial litigation and arbitration, and other fields. We created a high-quality and professional foreign-related arbitration talent team through such methods as establishing an expert committee for foreign-related arbitration talent training and conducting certificate education in foreign-related arbitration projects.

Fourth, we have established a foreign-related legal talent reserve in the judicial administration system. Regular training courses for legal professionals specializing in foreign-related matters in the national judicial administration system are organized to cultivate talents who are familiar with international legal regulations and are adept at handling foreign-related legal affairs. Thank you.

Chen Wenjun: 

Thank you, Ms. He, all the speakers, and friends from the media. That concludes today's briefing. 

Translated and edited by Xu Xiaoxuan, Li Huiru, Wang Qian, Yuan Fang, Zhang Junmian, Wang Yiming, Yan Bin, Zhou Jing, Wang Wei, Liu Jianing, Lin Liyao, Zhang Rui, Yan Xiaoqing, Liu Sitong, Liu Caiyi, He Shan, Wang Ziteng, Qin Qi, Ma Yujia, 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. Wang Gang, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC)

Mr. Yan Jinhai, deputy secretary of the CPC Xizang Autonomous Regional Committee and chairman of the People's Government of the Xizang Autonomous Region 

Mr. Wang Haizhou, a member of the Standing Committee of the CPC Xizang Autonomous Regional Committee and director general of the Publicity Department of the CPC Xizang Autonomous Regional Committee

Mr. Xu Zhitao, vice chairman of the People's Government of the Xizang Autonomous Region 

Chairperson:

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

Date:

Nov. 10, 2023

Shou Xiaoli:

Ladies and gentlemen, good morning. Today, the State Council Information Office (SCIO) has organized this press conference to release a white paper titled "CPC Policies on the Governance of Xizang in the New Era: Approach and Achievements." We have invited Mr. Wang Gang, deputy director of the Publicity Department of the Central Committee of the Communist Party of China (CPC) to release and interpret the white paper. Also present today are Mr. Yan Jinhai, deputy secretary of the CPC Xizang Autonomous Regional Committee and chairman of the People's Government of the Xizang Autonomous Region; Mr. Wang Haizhou, a member of the Standing Committee of the CPC Xizang Autonomous Regional Committee and director general of the Publicity Department of the CPC Xizang Autonomous Regional Committee; and Mr. Xu Zhitao, vice chairman of the People's Government of the Xizang Autonomous Region. They will brief you on the white paper and take your questions.

First, I'll give the floor to Mr. Wang to release the white paper. 

Wang Gang:

Ladies and gentlemen, friends from the media, good morning. Xizang is a border area mostly inhabited by ethnic minorities. The CPC Central Committee has attached great importance to the development of Xizang and focused its attention on the people in the region. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has placed significant emphasis on ensuring the long-term stability, prosperity, and development of Xizang. The CPC Central Committee held the sixth and seventh national meetings on Xizang in 2015 and 2020, respectively, offering comprehensive guidance for the work in Xizang in the new era. These meetings have outlined a clear direction for promoting enduring stability, fostering high-quality development, meeting the people's aspirations for a better life, and realizing socialist modernization in the region. Xizang has successfully addressed numerous long-standing challenges, and reached significant milestones that were previously unattainable. It has witnessed comprehensive progress and historic accomplishments across various sectors, and ensured and realized moderate prosperity together with the rest of the country, marking a new crucial phase in achieving long-term stability and driving high-quality development.

The seventh National Meeting on Xizang included a comprehensive review of the Party's successful experience in governing Xizang and ensuring its stability. It clearly outlined 10 guidelines on the governance of Xizang in the new era. Today, the State Council Information Office (SCIO) is releasing the white paper "CPC Policies on the Governance of Xizang in the New Era: Approach and Achievements."

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the white paper fully implements the guiding principles of General Secretary Xi Jinping's important speeches at the seventh National Meeting on Xizang and during his visit to Xizang. With a focus on the 10 guidelines for governing Xizang in the new era, the white paper extensively covers Xizang's advancements in various aspects, including politics, economy, culture, ethnicity, religion, society, and environment. Through concrete examples and detailed data, the white paper thoroughly illustrates Xizang's remarkable achievements in eradicating poverty, realizing moderate prosperity, enhancing social stability, fostering economic and cultural prosperity, improving the environment, and enhancing the quality of life for its people. The white paper also demonstrates the implementation of the Party's policies on religion, the ongoing fight against secessionism, the continued progress in guiding Tibetan Buddhism in adapting to socialist society, and the people's growing sense of national identity. It vividly portrays the remarkable journey of striving toward a united, prosperous, civilized, harmonious, beautiful, and modernized socialist Xizang. The progress made in Xizang serves as compelling evidence that the CPC policies on the governance of Xizang in the new era are absolutely correct.

The white paper is structured into three sections: the foreword, the main body, and the conclusion. The main body, the text encompasses six key aspects, namely full implementation of the new development philosophy, notable achievements in cultural and ethical development, solid progress in ethnic and religious undertakings, sustained and stable social development, stronger eco-environmental security barrier, and strengthening democracy and the rule of law.

First, full implementation of the new development philosophy. In practicing the CPC guidelines on the governance of Xizang in the new era, we adhere to a people-centered approach to development and fully and faithfully apply the new development philosophy on all fronts. We focus on improving people's lives and strengthening unity in promoting comprehensive and rapid economic and social progress. Consistent support has been extended to facilitate the development of Xizang. In 2022, Xizang's GDP reached 213.364 billion yuan, an increase by a factor of 2.28 compared with that in 2012 at constant prices. Xizang has witnessed significant enhancements in infrastructure construction, a historic eradication of absolute poverty, and notable advancements in common prosperity. These improvements have ensured that people of all ethnic groups in Xizang have greater senses of gain, fulfillment, and security. Nyima Tsering, a leading performer of Tibetan Opera, said, "In the old days, we performed Tibetan Opera to please the serf owners. Today, we do it to showcase the better life we are living now."

Second, notable achievements in cultural and ethical development. The CPC guidelines on the governance of Xizang in the new era advocate being guided by core socialist values, actively promoting China's fine traditional culture, fostering the growth and development of an advanced socialist culture, and continuously encouraging the preservation and innovative development of ethnic cultures. Xizang has effectively safeguarded its historical and cultural heritages, ensuring the protection and development of Tibetan medicine and the proper preservation of Tibetan classics. The study and use of the Tibetan language and script are guaranteed by law. In 2013, the country launched a priority cultural project – "Library of Chinese Classics: Tibetan Volume." According to the plan, the project would take 15 years to collect and publish important Tibetan classical works from the period between the Tubo Kingdom (618-842) and the peaceful liberation of Xizang in 1951. This is a landmark project in protecting and promoting traditional Tibetan culture. Furthermore, Xizang's public cultural endeavors are thriving, with a flourishing cultural industry and a vibrant and diverse spiritual and cultural life enjoyed by people of all ethnic groups.

Third, solid progress in ethnic and religious undertakings. The CPC policies on the governance of Xizang in the new era uphold the principle that religions in China must be Chinese in orientation. The guidelines actively provide guidance to religions so that they can adapt to the socialist society, and promote interactions, exchanges and integration among all ethnic groups. The guidelines require that the region's development serves to benefit ethnic unity and progress and to safeguard national unity and oppose separatism. Under the sound guidance of the CPC guidelines for governing Xizang in the new era, the region has fully guaranteed the freedom of religious beliefs, further enhanced the systems and mechanisms for law-based management of religious affairs, and deepened the "five identifications" (identifying with the great motherland, the Chinese nation, Chinese culture, the Communist Party of China, and socialism with Chinese characteristics). These guidelines have consistently fortified ethnic unity and progress, and strengthened the sense of Chinese identity. At the national level, 140 groups and 189 individuals in Xizang were honored by the State Council as models of ethnic solidarity and progress.

Fourth, sustained and stable social development. The CPC policies on the governance of Xizang in the new era have emphasized the importance of accurately understanding the present work in Xizang, coordinating development and security, strengthening social governance, and safeguarding national security, social stability, and the people's wellbeing. By following those policies, Xizang has embarked on a high-quality development path that aligns with its specific realities and circumstances. The social governance capacity and modernization level of Xizang have undergone significant improvements. Comprehensive systems, including a modern education system, a housing support system, a public health service system, and an inclusive social security system, have been effectively established throughout the region. Notable achievements have been made in building a safe Xizang. The public's satisfaction and support for the Party and the government continued to increase. Lhasa has made the list of the "Happiest Cities in China" seven times. The safety index of people of all ethnic groups in the region has stayed above 99% for years.

Fifth, stronger eco-environmental security barrier. The CPC policies on the governance of Xizang in the new era require the region to prioritize ecological conservation, and firm up the concept that lucid waters and lush mountains are invaluable assets and so are ice and snow. The policies also stress the importance of following a holistic approach to coordinating conservation and development, resolutely pursuing green and sustainable development, and striving to build a beautiful Xizang where human beings and nature coexist in harmony. Through consistent efforts, the construction of Xizang's nature reserve system has entered a new stage. The number and the total area of nature reserves have significantly increased; biodiversity on the plateau has gradually improved; the eco-environmental governance system has continued to optimize; and people's living environment has kept getting better. Xizang's rich eco-environmental resources are becoming the "real estate for a happy life" that the local people can see and keep. The development of the green and low-carbon industry has opened up a beautiful path toward prosperity and happiness, which enhances not only the quality of life for the people but also the border security. From 2016 to 2022, 8.32 million mu (554,666 hectares) of forests were planted in Xizang, and 537,700 eco-environmental conservation jobs were created on average each year.

Sixth, strengthening democracy and the rule of law. The CPC policies on the governance of Xizang in the new era emphasize that, to ensure the work on Xizang is carried out well, the CPC leadership, socialism with Chinese characteristics, and the system of regional ethnic autonomy must be upheld to provide the fundamental guarantee for Xizang's long-term stability, prosperity, and development. In the new era, Xizang has made continuous progress in advancing socialist democracy and fully implementing the system of regional ethnic autonomy. Democracy has been translated into extensive, pragmatic, and vivid actions at the grassroots; marked progress has been made in the governance of Xizang according to law; and anti-corruption efforts have been intensified. The CPC's overall leadership over Xizang has continued to strengthen, and the right of all people of all ethnic groups to be masters of the region and the country has been effectively ensured.

That's all for my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang. Next, let's give the floor to Mr. Yan Jinhai for his introduction.

Yan Jinhai:

Ladies and gentlemen, friends from the media, good morning. I'm very glad to be here with you to jointly witness the release of the white paper titled "CPC Policies on the Governance of Xizang in the New Era: Approach and Achievements." On behalf of the Party committee and government of the Xizang Autonomous Region, as well as the over 3.6 million people of various ethnic groups in the region, I would like to express our heartfelt gratitude to friends from all walks of life who have shown longstanding care and support for Xizang's development.

Looking back, we have accomplished remarkable achievements. General Secretary Xi Jinping has shown the utmost support and placed high hopes on the Xizang Autonomous Region. He has made three inspection trips to Xizang and presided over two national meetings on Xizang. By doing so, he has steered the region in the right direction and outlined the CPC policies on the governance of Xizang in the new era. Since the 18th CPC National Congress, we have borne in mind General Secretary Xi Jinping's expectations, and shouldered the responsibilities for maintaining stability, facilitating development, protecting the eco-environment and safeguarding the borders. These four main tasks define the role of the autonomous region in big-picture terms, putting forward comprehensive requirements and providing whole-process guidelines for us to work hard with an enterprising spirit and achieve all-round progress and historic success in various undertakings. To be specific, we have made achievements in the following aspects:  

First, since the new era, Xizang has adhered to the people-centered development philosophy, presenting a new outlook for living a peaceful, prosperous, and happy life. All 628,000 registered impoverished people have been lifted out of poverty, and all 74 impoverished counties have shaken off poverty. It can be said that we have secured a historic success in eradicating absolute poverty, which is remarkable considering the extremely challenging conditions of the snowy plateau. The per capita disposable income of all residents has ranked first nationwide for eight consecutive years. Xizang has been a pioneer in providing 15 years of free education, from kindergarten to high school, and ensuring that all schools have heating facilities. In terms of healthcare, we have achieved the goal of ensuring that minor ailments are treated at the county level, moderate ailments at the prefecture level, and major ailments at the autonomous region level. The average life expectancy has increased to 72.19 years, and everyone, whether in urban or rural areas, has access to medical insurance. The participation rate in basic pension insurance remains above 96%, significantly improving the living standards of people of all ethnic groups.

Second, since the new era, Xizang has followed the comprehensive national security concept, presenting a new outlook of unity, harmony, stability, and peace. We have continued to strengthen the sense of community for the Chinese nation, formulating and implementing regulations and plans to build model areas for ethnic unity and progress. We have achieved ethnic unity and progress at all levels, from regions, cities, and counties to townships, villages, and even households and individuals. We have made consistent efforts to adapt Tibetan Buddhism to China's realities, and conduct education on "national identity, civic responsibility, and rule of law awareness." For the first time in the 1,000-year history of Tibetan Buddhism, all our ordained monks and nuns have access to medical insurance, pension insurance, social assistance, accident insurance, and health check-ups. For the first time they have been entitled to old-age pensions. We have continued to accelerate the construction of a law-based Xizang and a peaceful Xizang. For many years, there have been no major politically motivated, collective, or violent terrorist incidents. The sense of security and satisfaction among people of all ethnic groups has consistently ranked among the highest in the country. To be frank, if you have the opportunity to visit Lhasa, Xizang, and take a stroll along the bustling Barkhor Street, you will hardly see any thieves.

Third, since the new era, Xizang has implemented the new development philosophy in full, to the letter and in all fields, presenting a new outlook of prosperity and progress. Xizang's GDP has been growing at an average annual growth rate of 8.6%, ranking among the top in the country. From January to September this year, its GDP growth rate reached 9.8%, ranking first nationwide. All rural residents have access to safe drinking water. However, Xizang has a high altitude and a cold climate. Although we basically solved the issue of safe drinking water during the poverty alleviation period, there were some seasonal water shortages in areas above 4,500 meters, especially for farmers and herders. The Party committee and government of the autonomous region gave high priority to this issue. Last year, we launched a major project to improve people's livelihood and effectively solved this problem. The four "power corridors" of Qinghai-Xizang, Sichuan-Xizang, central Xizang, and Ngari electric transmission lines have connected all 74 counties in the region. The mileage in highways open to traffic has exceeded 120,000 kilometers. By the end of this year, there will be seven airports in operation, with 154 civil aviation routes linking 70 cities. The passenger throughput has exceeded 6 million. The Fuxing bullet train has reached the plateau. All the 5,400 administrative villages across the region have fiber-optic broadband and 4G signals. The average living space in rural and pastoral areas has reached over 40 square meters per person. The people of all ethnic groups have experienced tremendous historical changes in their lives, moving from water buckets to tap water, from oil lamps to electric lights, from dirt roads to paved roads, and from traditional tents to modern buildings.

Fourth, since the new era, Xizang has given high priority to ecological protection and green development, creating a beautiful landscape of blue skies, green land, and clear waters. Ecological protection has been constantly strengthened. We have vigorously implemented the Law of the People's Republic of China on Ecological Conservation on the Qinghai-Tibet Plateau and Regulations on Developing National Eco-Civilization Model in the Xizang Autonomous Region. Xizang is the first region in China to have local regulations on ecological protection. The forest coverage rate in the entire region has increased to 12.31%. Xizang has the highest volume of standing timber in the world and the tallest tree in Asia, which is 102 meters high and located in Nyingchi. Nyingchi also has a giant cypress tree that is 3,200 years old, and walnut trees that are over a thousand years old can be found in many of its counties of Nyingchi. The coverage of grassland vegetation has reached 47.14%. The ecological environment has been constantly improved. Nature reserves cover 36% of the total area of the region, and the ecological "red lines" account for over 50% of the total area. The air quality is excellent for over 99% of the days. Especially in Lhasa, the air quality is among the best in China. In Lhasa, you can wear a white shirt for a week without washing it, and your leather shoes will stay shiny for a week without polishing them. The Second Comprehensive Scientific Expedition to the Qinghai-Tibet Plateau has made remarkable discoveries, and the plateau has now achieved overall carbon neutrality. The Qinghai-Tibet Plateau is leading the way in China's environmental protection. Our ecological protection efforts continue to pay off. The installed capacity of clean energy, both completed and under construction, has reached 24 million kilowatts. Xizang is endowed with abundant clean energy resources, including hydropower, solar, wind, and geothermal energy. Overall, Xizang ranks first in the country in terms of clean energy resources. Xizang produces more than 9.8 billion kilowatts of solar energy, making it an important source for China's clean energy in the future. The added value of the digital economy has exceeded 20 billion yuan, and people of all ethnic groups have become the guardians of a good ecological environment and beneficiaries of the idea that "Lucid waters and lush mountains are invaluable assets." As Mr. Wang just mentioned, there are over 500,000 jobs every year for managing and protecting the environment, and the average annual benefit per person is 3,500 yuan.

Fifth, since the new era, we have adhered to the strategy that stability in Xizang is paramount in the governance of the border areas and the country as a whole, strengthening border defense and maintaining border security. We have made coordinated plans to build public service facilities such as schools, hospitals, and cultural and sports facilities in border areas. In 21 border counties, the economy and residents' income both maintained rapid growth, and standardized water supply plants and domestic garbage landfills are being built. A total of 624 villages realized moderate prosperity. All border counties have been connected to tarred roads; all border towns, townships, and villages can be reached by road; main power networks have covered all border towns and townships; and all villages have gained broadband access and 4G coverage. Different ethnic groups have thrived in high-altitude border areas like galsang flowers. 

Sixth, since the new era, we have adhered to and enhanced the overall leadership of the Party, pooling strength and fostering an atmosphere of integrity. There are 446,100 Party members and more than 23,000 primary-level Party organizations in Xizang. We have overwhelmingly won the anti-corruption battle and continued to reinforce the results so that the foundations of the Party's governance in Xizang are cemented. We have always upheld the system of socialism with Chinese characteristics and the system of regional ethnic autonomy, and have been committed to the Party's leadership, the people's position as masters of the country, and the rule of law of the governance of Xizang. Tibetan and other ethnic minorities account for 89.2% of the deputies to people's congresses at different levels in Xizang and 85.7% of members of the Chinese People's Political Consultative Conference (CPPCC) at different levels in Xizang. The majority ethnic group makes up 87% of the population in Xizang. These high proportions demonstrate that the exercise of rights conferred to all ethnic groups in Xizang is fully guaranteed.

Xizang has experienced huge changes, standing out as a vivid example of the monumental achievements and historical transformations achieved by the Party and the country in the new era. General Secretary Xi Jinping's important instructions regarding Xizang-related work and the Party's policies on the governance of Xizang in the new era offer the foundation, guidance, and strength for Xizang's development in the new era. Going forward, we will continue to center around the Party's policies on the governance of Xizang in the new era, keeping the big picture in mind and coordinating efforts. We will focus on maintaining stability, facilitating development, protecting the eco-environment, and safeguarding the borders. We will strive to establish model communities of ethnic unity and progress, build pilot areas for high-quality economic development in the plateau, develop a national eco-civilization model, and build a demonstration region for safeguarding, developing, and bringing prosperity to border areas. Through these efforts, we will write a new chapter in realizing modernization in Xizang through the Chinese path. 

China has a saying that seeing is believing. Not long ago, we convened the third China Xizang Trans-Himalaya Forum for International Cooperation, with more than 130 political dignitaries and journalists from nearly 40 countries in attendance. The attendees found the Xizang trip a memorable one, noting that people's satisfaction testifies to good governance and efforts in promoting prosperity in the region. Many foreign statesmen, diplomats, and journalists visited villagers in Nyingchi, where houses are equipped with modern comforts and people live in happiness. They found what they saw is hugely different from what they had been told and is not like what they had heard. So they urged people not to be beguiled by false information, and instead go visit and experience Xizang in person. "Distance cannot separate true friends who remain close even when thousands of miles apart." You are welcome to visit Xizang to experience the natural scenery and ethnic culture and feel the social solidarity and the spirit of striving to break new ground, and then help present to the world a new socialist Xizang in all dimensions, objectively and truthfully. 

This is my briefing. Thank you all!

Shou Xiaoli:

Thank you, Mr. Yan. Next is the Q&A session. Please state the news outlet you represent before raising questions. The floor is now open for questions. 

Economic Daily:

As of the end of 2019, 74 counties and districts and 628,000 people documented as impoverished in Xizang were lifted out of poverty, according to reports. How has Xizang consolidated and furthered the results of poverty alleviation efforts while promoting rural revitalization in the more than three years thereafter? Thank you. 

Yan Jinhai:

Mr. Xu will answer this question. 

Xu Zhitao:

Thank you for the question. We all know that Xizang used to be the only provincial-level contiguous poor area. However, through strenuous efforts, Xizang has realized moderate prosperity together with other regions of the country. Like Mr. Yan just mentioned, it is really difficult to eradicate absolute poverty in a place like Xizang, where you have to endure many hardships. After shaking off poverty, Xizang turned its focus to facilitating all villagers, promoting rural revitalization by boosting its industries, human resources, culture, eco-environment, and organizing ability in order to drive development. In recent years, we have been practical and made efforts in the following aspects:

First, we have improved mechanisms and stabilized policies. We reshuffled rural revitalization agencies at three levels, i.e. the autonomous region, city (prefecture), and county (district). We also formed a working mechanism in which the leading group for rural work takes the helm, offices of rural work at different levels coordinate efforts, work is divided between different task forces, and different sectors and departments fulfill their own functions. We made sure that even though poverty had been eliminated, all of the related responsibilities, policies, support, and oversight remained in place. We also issued more than 30 succeeding policies concerning industrial development, employment, and people's basic living needs to ensure access to compulsory education, basic medical services, and safe housing. 

Second, we have adopted a bottom-line mindset to cement previous successes. We have improved the dynamic monitoring and assistance mechanism to prevent people from slipping back into poverty. We have ensured that all dropouts from compulsory education from families who had shaken off poverty have returned to school. For subsistence allowance recipients and low-income populations in urban and rural areas, the proportion of their self-paid expenses covered by medical assistance reached 95% and 90%, respectively. In farming and pastoral areas within the autonomous region, we conducted housing examinations for 481,000 households to identify safety hazards and continued to enhance dynamic monitoring of drinking water safety. 

Third, we have advanced development and increased residents' incomes. The autonomous region integrated and coordinated the use of government funds of 15.3 billion yuan and 14.8 billion yuan for rural development in 2021 and 2022, respectively, ensuring financial support for rural revitalization. We have strengthened the follow-up asset management of poverty alleviation projects and upgraded those projects. The per capita net income of people lifted out of poverty was 13,800 yuan in 2022, and its average annual growth rate was higher than that of the per capita disposable income of residents in the region's farming and pastoral areas.

Fourth, we have boosted rural revitalization in a fast yet steady manner. Since 2021, we have built 300 beautiful and livable villages and certified 505 demonstration ones. We launched a program to cultivate new customs and habits among farmers and herders, promoted the application of the scoring system in rural governance, and conducted various activities to form village rules, promote fine culture, and beautify villages.

We also implemented an outreach work system for rural revitalization among provincial-level officials. I'm now responsible for relevant work regarding a small village named Zhaxiding in Shigatse, Xizang, where the land is fertile, the scenery is pleasant, and the residents are diligent. More than half of the working-age population works outside the village, with their per capita income higher than the average for the whole region. Currently, in accordance with the requirements to build a beautiful and harmonious countryside, the village is implementing projects to harden roads, separate livestock from housing, and upgrade industries. I believe that in a few years, the village will become more beautiful, harmonious, and lively. Thank you.

CCTV:

Mr. Wang just introduced the remarkable development and achievements of Xizang in recent years. In terms of respecting and protecting human rights, what changes have the CPC policies on the governance of Xizang in the new era brought to people of all ethnic groups there? Thank you.

Wang Gang:

Thank you for your question. Human rights in Xizang have long attracted attention. We believe that the rights to subsistence and development are primary human rights. Development leads to happier lives, so living a happy life is the greatest manifestation of human rights. In our view, the people's wellbeing is the primary human right. As mentioned in the white paper, Xizang residents, who once suffered under feudal serfdom, now live safe and happy lives with substantial improvements in living standards. Mr. Yan just introduced the lives of Xizang residents in the past decade of the new era, covering various aspects, including economic indicators, personal incomes, and daily necessities.

First, we have ensured the rights of Xizang residents to subsistence and development over the past 10 years. More than 3 million Xizang residents have entered a moderately prosperous society along with the rest of the 1.4 billion Chinese people and embarked on a new journey to build a modern socialist country in all respects. One can tell whether Xizang residents are living a happy life from their facial expressions and economic indicators. We have ensured their rights to subsistence and development, eradicated absolute poverty in 2019, and lifted nearly 630,000 registered poor residents and 74 counties out of poverty. It's thus clear that Xizang residents have enjoyed the benefits of reform and opening-up and economic development along with the rest of the Chinese people.

Second, we are more concerned about whether we have ensured the rights of Xizang residents in various aspects, to be specific, in the economic, social, education, cultural and other fields. To my understanding, the white paper has given a positive answer to this, as the people's wellbeing is the foremost human right. The rights to subsistence and development include the right to receive education and other rights in various fields. Xizang is the first provincial-level region in China to establish a government-funded public education system covering 15 years of education. More preferential policies have been implemented in Xizang to ensure local people's rights and interests in employment. According to my knowledge, in the past five years, 600,000 farmers and herders found non-agricultural jobs each year. Medical insurance and services now cover all townships and towns. That's not an easy task to complete in Xizang which has a population of over 3 million, as the region covers over 1.2 million square kilometers and many of its areas are at high altitudes. In spite of that, we achieved full coverage of medical insurance and services there. Hence, nowadays Xizang residents have access to education, employment, livable housing, and medical and elderly care. A well-rounded, multi-tiered social insurance system covering all ages has been established, which has guaranteed the quality of life of Xizang residents in all aspects.

Third, I want to talk about the civil and political rights of Xizang residents. Xizang has always been committed to ensuring the people's position as masters of the country, promoting law-based governance, and upholding the system of regional ethnic autonomy to address development issues in ethnic regions. All efforts have ensured the rights of Xizang residents, as conferred by the Constitution and laws, to govern national and regional affairs, as well as their rights to be masters of the region and the country. I want to note two points. First, Xizang has 772 "homes of deputies to people's congresses," covering the whole region. Second, among all the CPPCC members in the whole region, 85.7% are from ethnic minorities.

Last but not least, religious believers in Xizang enjoy freedom of religious belief, which is also of great concern. The central government has always formulated and implemented policies on freedom of religious belief suitable for Xizang according to its local conditions. Religious believers of all ethnic groups enjoy the freedom to hold religious activities under the protection of the Constitution and laws. Here, I would like to share some data with you. There are more than 1,700 sites for religious activities across Xizang, and over 1,700 religious and folk activities have been hosted to fully satisfy the needs of all religious believers.

If you want to learn more, please read the white paper. It will help you get to know the real Xizang. And if you want to know more about human rights in Xizang, you can visit Xizang. Mr. Yan has just sent out his invitation. You can ask the residents of Xizang and get answers by yourselves. Thank you for your question.

Beijing Youth Daily:

My question concerns education in Xizang. Given the vast landscape and widely dispersed population of Xizang, what measures has the government of the Xizang Autonomous Region taken to better address the educational issues faced by children of farmers and herders? Thank you.

Wang Haizhou:

Thank you for your question and your concern about education in Xizang. Xizang has always prioritized improving the quality of rural education, especially ensuring equal access to quality education for children of farmers and herders. We have taken the following major measures to achieve this goal.

First, we have comprehensively improved the conditions of schools in farming and pastoral areas. As Mr. Yan previously introduced, we have launched projects to provide safe drinking water for schools in these areas and ensure heating supply for schools in the alpine and high-altitude areas. Meanwhile, we have vigorously promoted the application of information technology by launching an education cloud platform and achieved the full coverage of an optical fiber-based broadband network in all schools. All primary and secondary schools across the region have access to 100 megabits per second (Mbps) fiber-optic broadband network services, forming an open educational environment where people can learn whenever and wherever they want. All teachers and students can access quality educational resources without leaving home, effectively narrowing gaps in education conditions and quality between different schools, regions, and urban-rural areas.

Second, we have basically achieved balanced development of compulsory education across the region. Since 2012, we have launched projects to realize balanced compulsory education in counties, investing 7.83 billion yuan and implementing 2,167 school projects under the poverty relief program. By 2021, all 74 counties and districts across the region had passed the evaluation for basically balanced development of compulsory education.

Third, we have fully promoted the high-quality development of senior secondary school education. We have intensified efforts to universalize senior secondary education, and built, rebuilt or expanded a number of schools providing this level of education. Each prefecture-level city in the region has been equipped with a specialized secondary vocational school to cultivate technicians and skilled workers. Meanwhile, the integration of secondary and higher vocational education helps teenagers longing for skills master one practical skill and ensure all students enjoy an equal opportunity to thrive and achieve their full potential. In addition, we have opened up more channels for children of farmers and herders in the annual college enrollment: We implement the national special program for students in poverty-stricken areas and the special program for students in remote, impoverished and ethnic minority areas, thereby ensuring more of them can have access to higher education.

Fourth, we have comprehensively weighted teacher resources toward farming and pastoral areas. We have implemented the plan to strengthen the workforce of teachers in rural areas and targeted training programs for rural teachers, making efforts to improve rural teachers' social status and raise their salaries, encourage teachers to teach in rural schools, and give preference to teachers in rural schools and schools in high-altitude areas in cases of applying for professional titles. Since 2016, a total of 2,096 rural teachers have been awarded for their 20 years of teaching efforts, and 677 have been honored with a lifetime achievement award for teaching over 25 years in the region's rural areas.

Fifth, we have fully implemented various measures to ensure that children of farmers and herders can attend school without worries or concerns. We have established a 15-year public-funded education system from kindergarten to senior high school and a student financial assistance system. Mr. Wang previously shared the overall situation with us. Since the 18th National Congress of the CPC, we have raised the education subsidy standard eight times. Currently, under the Three Guarantees policy for education in Xizang, which provides food, accommodation and school expenses for preschool to senior high students from farming and herding households and impoverished urban families, the average subsidy has amounted to 4,200 yuan per student per year. So far, we have spent 22.067 billion yuan on supporting this education policy, benefiting 6.5508 million students. Meanwhile, we have launched national and local pilot schemes to implement the nutrition improvement program for students under compulsory education in farming and pastoral areas and increased subsidies twice. Currently, the annual average subsidy per student has reached 1,000 yuan, with a total of 3.252 billion yuan spent to benefit 4.1766 million students. A total of 42 student financial aid policies have been rolled out to ensure comprehensive assistance to everyone who needs it. We can say with great pride that today in Xizang, no child drops out of school due to financial difficulties. The vast majority of children have changed their own and their families' fates through education and are living happy lives.

The tremendous changes in Xizang's education sector would have been unimaginable 70 years ago. Progress in education, especially for children of farmers and herders, stands as a testament to the successful implementation of the CPC policies on the governance of Xizang in the new era. It has also fully demonstrated that it is only under the leadership of the CPC, within the embrace of the big family of the motherland, and only by firmly following the path of socialism with Chinese characteristics, that people of various ethnic groups can fully enjoy the right to education. Thank you.

People's Daily:

Since the 18th National Congress of the CPC, the Party has striven to develop whole-process people's democracy. I would like to ask, what major measures has the region taken to advance whole-process people's democracy in the new era? Thank you.

Yan Jinhai:

Thank you for your question. I will take it. General Secretary Xi Jinping said that only the wearer knows if the shoes fit or not. The remark indicates the choice of development path. Democracy works the same way; there is no standardized answer or criteria for democracy. Each country has its own model of democracy. 

First, since the 18th CPC National Congress, two elections have been held in Xizang to elect the regional people's congress, in which over 90% of eligible voters have participated in direct elections at the county and township levels. In some areas, the participation rate reached as high as 100%. The People's Congress of the Xizang Autonomous Region has established a dual-contact system in which members of its standing committee maintain direct contact with community-level deputies who in turn maintain direct contact with people in their constituencies. A total of over 770 "homes of deputies to people's congresses" have been established, covering all cities/prefectures, counties/districts, and townships/towns/sub-districts in the region. Some villages have set up deputies' functional centers. These facilities enable deputies to perform their duties on a more regular basis in the intersessional period, which has helped regulate and institutionalize the dual-contact system.

Second, we have promoted the important role of socialist consultative democracy. We have strengthened the overall leadership of the Party in the work of the Chinese People's Political Consultative Conference (CPPCC), supporting it in improving political consultation, democratic supervision and participation in political affairs. The CPPCC is open to representatives from all social sectors and ethnic groups, including those of religious circles, intellectuals who are not CPC members, and people from New Social Groups, emphasizing the inclusiveness and representativeness of its members. The 12th CPPCC Committee of the Xizang Autonomous Region consists of 440 members, of which 59.3% are not CPC members. CPPCC organizations have been established in all 74 counties or districts of the region, with over 8,000 CPPCC members at all levels, of whom 85.7% are from ethnic minorities.

Third, we have enhanced the building of the legal framework in Xizang. Since the 18th CPC National Congress, the practice of the system of regional ethnic autonomy in Xizang has continuously deepened. It has played an important role in strengthening ethnic unity, promoting exchanges and integration among all ethnic groups, enhancing the cohesion of the Chinese nation, and promoting economic and social development and progress. This further highlights the exemplary nature of the CPC policies on the governance of Xizang in the new era. The People's Congress of the Xizang Autonomous Region and its Standing Committee had formulated and implemented 160 local regulations and statutory resolutions and decisions of a regulatory nature, ensuring that social management, people's livelihoods and well-being, and other aspects operate within the framework of the rule of law.

Fourth, we have fully developed grassroots democracy. The system of villagers' representative meetings has been established in rural areas, while community residents' congresses or residents' committees have been instituted in urban areas, providing satisfactory organizational guarantees for grassroots self-governance. The rights of local people to be informed, to participate in deliberations and the decision-making process and to scrutinize the exercise of power have been effectively protected. The democratic management system, with the staff deputy congress as its basic form, has been improved. Workers in enterprises and public institutions fully exercise their democratic rights in major decision-making and matters concerning the vital interests of workers. There are 8,821 grassroots trade unions in the entire region, with more than 607,000 members. Thank you.

Phoenix TV:

Media reports have claimed that a large number of boarding schools have been established in Xizang, and that many Tibetan children are being forced to attend these schools located far away from their families. Can you confirm if this is true? Thank you.

Xu Zhitao:

Thank you for your interest in the education situation in Xizang. According to the Compulsory Education Law of the People's Republic of China, people's governments at county level shall set up boarding schools as needed to ensure that school-age children and adolescents living in scattered areas receive compulsory education. This policy aims to ensure equal access to education for all citizens. It not only solves the problem of long travel distances and difficulties facing parents in taking care of their children, but also maximizes equal educational opportunities and promotes the fair personal development of individuals, thereby advancing the national education cause and the comprehensive development of individuals. Therefore, "boarding plus day schooling" schools have been established, not only in Xizang but also in every province in China, to cater to all school-age children. Boarding schools have become a primary form of schooling in China, especially in rural and pastoral areas. This is a natural choice based on long-term educational practices in various regions, aligning with China's basic national conditions, the geographical realities in rural and pastoral areas, and the educational needs of the people. I believe that some Chinese journalists and staff present today may have attended boarding schools and benefited from them.

As for the reports in foreign media of the so-called situation of children in Xizang being forced to attend boarding schools, I believe it is a deliberate attempt to defame and discredit us. We are well aware that in certain areas of Xizang, where the population is widely dispersed because of the high altitude, it is particularly inconvenient for children, and especially those from herding communities, to commute to school. The scattered nature of these communities makes it challenging to ensure an adequate number of teachers and maintain teaching quality. Therefore, the establishment of "boarding plus day schooling" schools is necessary to guarantee children's right to education and ensure equal access to high-quality educational resources. In Xizang's boarding schools, a "three guarantees" policy has been implemented, which covers the costs of meals, housing and tuition. The region places great importance on involving students' families in school education by inviting parents to participate in the management and planning of boarding life through parent committees and open days. The choice to attend boarding or day schools is made entirely by the students and their parents.

China's boarding school system education is fundamentally different from the "colonial-era residential schools" established by some Western countries in the last century. China's boarding education is diverse, humane and dynamic. It serves as a positive means to advance the education sector and improve accessibility to education. It fully embodies the public welfare nature of education and strives to meet the people's demand for quality educational resources. Boarding schools provide an excellent learning and growth environment for children, particularly those in remote areas, and serve as a "golden key" for them to pursue better lives. Thank you.

China News Service:

We have noticed that the white paper mentions "adapting religion to China's realities" and "to socialist society." I am wondering whether this will affect people's freedom of religious belief. How does the regional government respect and protect people's freedom of religious belief? Thank you.

Xu Zhitao:

Regarding the first question, the adaptation of religion to China's realities and socialist society is determined by the development law of religion itself. From a historical perspective, Tibetan Buddhism itself is the product of adapting Buddhism to China's realities. And by continuing to adjust and reform itself at various historical stages of China, Tibetan Buddhism has managed to better meet the needs of the people and society, and been passed down to this day and gained such a great influence. From a practical perspective, the adaptation of Tibetan Buddhism to China's realities is an ongoing process that has never been suspended. In a socialist society, Tibetan Buddhism should naturally include content that is compatible with it. At present, as we have ushered in a new era of socialism with Chinese characteristics, our call to continue to adapt religion to China's realities and guide Tibetan Buddhism in adapting to the socialist society will further enable Tibetan Buddhism to better adapt to the Chinese context and keep pace with the development of the times. This way, we will ensure better inheritance and development of Tibetan Buddhism in China as well as better protection of people's freedom of religious belief.

Regarding the second question, as Mr. Wang Gang also just introduced, the government of the Xizang Autonomous Region actively promotes the implementation of policies on freedom of religious belief in Xizang. The main efforts are as follows:

First, we respect citizens' freedom of religious belief and protect normal religious activities. Second, we treat all religions equally and without discrimination. Third, we manage religious affairs involving national and public interests in accordance with the law, but do not interfere in the internal affairs of religious groups. Fourth, in handling relations with religious groups, we adhere to the principle of "uniting and cooperating politically, and respecting each other's beliefs ," and work together to achieve the rejuvenation of the Chinese nation. Fifth, religious believers enjoy the same political, economic, social, and cultural rights as other citizens. Representatives of religious groups can participate in political activities through legal channels.

Thank you!

China Daily:

We all know that Xizang boasts a time-honored history and culture, and Tibetan culture is splendid. However, there have been some claims that Tibetan culture is not being adequately protected and is at risk of disappearing. What are your thoughts on this issue? What measures has the regional government undertaken to address this concern? Thank you.

Wang Haizhou:

Thank you for your questions. Xizang has consistently promoted principles and policies conducive to protecting and developing the fine culture in ethnic minority areas. Especially since the 18th CPC National Congress, the fine traditional culture in Xizang has been protected and inherited like never before, as Mr. Wang Gang and Mr. Yan Jinhai briefed just now. First, the protection and inheritance of our intangible cultural heritage (ICH) has been very effective. Let me share a set of data to illustrate this. Since 2012, the central government and the Xizang local government have cumulatively invested 325 million yuan to support Xizang's ICH protection endeavors. Gesar , Tibetan opera, and the Lum medicinal bathing of Sowa Rigpa of Xizang have been registered on the United Nations Representative List of the Intangible Cultural Heritage of Humanity. Now, Xizang, with a population of only over 3.6 million, has 2,800 ICH items at all levels with 1,668 bearers. There are four production pilots under state-level protection , 12 production pilots under regional-level protection, eight ICH counties and villages, 19 ICH tourist sites, 159 bases for training ICH practitioners, and 153 part-time Tibetan opera troupes in Xizang. We have completed 10 projects for building ICH protection and utilization facilities and finished recording and conserving the knowledge and skills of 30 senior ICH bearers on the national list and 10 ICH bearers on the regional list. We now have 173 ICH workshops across the region, achieving a transition from individual to group dynamic ICH inheritance.

Second, in terms of the construction of public cultural facilities, there is a five-tiered network of public cultural service facilities in place at the levels of village/community, town/township, county/district, city/prefecture, and autonomous region. There are now libraries, people's art halls and museums in all of Xizang's cities/prefectures, all-purpose cultural centers in the counties/districts, and cultural activity stations in towns/townships. Xizang boasts 5,492 performing troupes at the administrative village level. That is to say, each administrative village has an artistic performing team.

Third, the protection and utilization of cultural relics has been comprehensively strengthened. The country has invested nearly 400 million yuan for protection and maintenance projects relating to the three key cultural relics in Xizang: the Potala Palace, Norbulingka, and the Sakya Monastery. At present, we have three world cultural heritage sites, 70 key cultural relics protection units at the state level, and 616 cultural relics protection units at the autonomous region level. The country has invested 660 million yuan in the renovation and expansion of the Tibet Museum, which has greatly improved the situation of cultural relic protection. Our museum, if not the best in China, should be one of the best. When you are visiting Lhasa, Xizang, you may visit our museum so that you can see for yourself. 

Fourth, the census of ancient books across the autonomous region has been completed and the results have been put to use. We have finished the census and registration of ancient books from 1,160 collection units as well as individuals in all of Xizang's cities/prefectures, totaling more than 13,700 pieces. At the same time, we have produced more than 69,000 images of ancient books to preserve their version information, preliminarily forming a network for ancient book census and protection led by the ancient book protection center of Xizang and joined by local cultural departments, collection units and individuals. With 300 million yuan earmarked by the central government, a 10-year project to protect and utilize cultural relics in Potala Palace, such as ancient books and Pattra-leaf Scriptures, has been progressing smoothly. Across the autonomous region, 291 cases of rare ancient books have been included in the Catalog of National Rare Books of China. Four collection units, at the Tibet Museum, the Potala Palace management office, the Xizang archives bureau (museum), and the Norbulingka management office, were listed as national key units for ancient books protection. Thank you.

CRNTT:

Some overseas institutions claimed that Xizang forced farmers and herdsmen to receive vocational training and seek employment in other areas. Can you tell us about the true situation? Thank you.

Xu Zhitao: 

Thank you for your question. First of all, I would like to say that the word "force" is purely a smear. The Chinese government has always attached great importance to the protection of citizens' work rights. The Labor Law of the People's Republic of China stipulates that workers enjoy the right to equal employment and career choices and workers shall fulfil their labor tasks and improve their vocational skills. In recent years, the government of the autonomous region has implemented proactive employment policies and adhered to the principles of workers choosing jobs independently, adjusting employment according to the market, as well as promoting employment via government policies so as to boost employment among farmers and herdsmen through multiple channels. The main measures are as follows:

First, we have attached equal importance to adjusting the industrial structure and creating jobs. Through multidimensional ways, such as developing industries that can take advantage of local strengths, as well as government-invested projects, we have promoted employment for farmers and herdsmen and vigorously developed ecological industries and the carbon sink economy, thus encouraging people to find jobs and start their own businesses in green sectors. The surveyed urban unemployment rate was lower than the national average level, and zero-employment families continued to be a dynamic zero.  

Second, we have attached equal importance to improving employment services and strengthening vocational education and training. We have implemented an urban-rural unified registration system for employment and entrepreneurship and included all rural and pastoral workers in the urban employment registration, providing free services such as labor exchange, career guidance, and job registration. We have actively implemented a vocational skill training system, targeting urban and rural workers over the age of 16 who are willing to find jobs and need training. When formulating training and employment plans, we fully respect the aspirations and needs of the people, and the training programs, methods, and institutions were independently chosen by urban and rural workers.

Third, we have encouraged farmers and herdsmen to start their own businesses and find jobs by themselves. In order to help them find jobs nearby, we encouraged local enterprises to employ local farmers and herdsmen and carried out targeted skill trainings based on job requirements and workers' actual conditions. At the same time, by relying on the employment service stations established in other provinces, cities/prefectures in Xizang have also helped the surplus labor force from agricultural and pastoral areas go out to work in an orderly manner. They also actively engaged with the needs of farmers and herdsmen in food, accommodation, transportation, and protection of rights and interests, and effectively helped them solve worries at home.

All these practices have been praised by the workers. Thank you.

Shou Xiaoli:

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

Hong Kong Bauhinia Magazine:

From the speakers' briefings, we learned that great progress has been made in various undertakings in Xizang in recent years. How will you continue to implement the CPC policies on the governance of Xizang in the new era in order to achieve new achievements? Thank you.

Yan Jinhai:

Thank you for your question, I'll answer this one. The CPC policies on the governance of Xizang in the new era is the root and soul to deliver a solid performance in all areas of work in the region. Centering on the "four main tasks" of ensuring stability, facilitating development, protecting the eco-environment and strengthening the borders stated by General Secretary Xi Jinping, we proposed "four creatings" strategic goals at the 10th CPC Xizang Autonomous Regional Congress, namely, creating a model region for national ethnic solidarity and progress, a pilot region for high-quality development of plateau economy, a national ecological civilization highland and a demonstration region for safeguarding, developing and bringing prosperity to border areas. First, this is to ensure that General Secretary Xi Jinping's important instructions on Xizang and the decisions and arrangements made by the CPC Central Committee are implemented and yield results in the region through project-based, carrier-based and list-based approaches. Second, it is also to meet the people's ever-growing needs for a better life and continuously enhance their sense of fulfillment, happiness and pride. As we all know, to fulfill the people's aspiration for a better life is our goal, and Mr. Wang just mentioned that the happiness of the people is the greatest human right. Third, it is to comprehensively implement the new development philosophy, consciously consider and promote Xizang from an overall perspective in the work of the CPC and the country, and actively integrate the region into the domestic and international circulation .

Xizang's economic and social development has its own special characteristics. General Secretary Xi Jinping has pointed out that protecting the ecology of the Qinghai-Tibet Plateau is the greatest contribution to the survival and development of the Chinese nation, and that the greatest value, responsibility and potential of the Qinghai-Tibet Plateau lie in its ecology. In such an environment, to maintain high-quality economic development, it is indeed necessary for us to deeply understand the Party Central Committee's guiding principles, combine them with Xizang's realities, and promote them according to local conditions.

The "four creatings" and their corresponding targets -- to lift the region into a pioneer in promoting national ethnic solidarity and progress, high-quality development of plateau economy, ecological civilization, and in safeguarding, developing, and bringing prosperity to border areas -- represent the goal proposed based on the actual situation in Xizang and the summary of years of development experience. They are a concrete manifestation of actively researching new situations, solving new problems and exploring new mechanisms. They are an organic and effective carrier for achieving high-quality development in Xizang, and they are also a path that is in line with Xizang's actual development and has been explored through practice. We will elevate our political position, unify our thinking, and consciously study and comprehend the guiding principles of the 20th CPC National Congress, especially the important instructions of General Secretary Xi Jinping. In practical work, we will continuously promote the deepening of the "four main tasks." Currently, positive results have been achieved in the "four main tasks" and the "four creatings." Xizang enjoys political stability, social stability, economic development, ethnic unity, religious harmony and the people's well-being. The whole society presents a thriving development scene.

At the same time, we have deeply recognized that the "four creatings" is a long and challenging process. It is crucial that we firmly establish a correct perspective on political achievements, focusing on both the present and the future. We must prioritize laying a solid foundation and pursuing long-term benefits, while guarding against formalism, bureaucracy and the temptation of hasty results. We consider the "four main tasks" and the "four creatings" as concrete endeavors to secure the happiness and welfare of the people in Xizang. Our aim is to continuously enhance their sense of fulfillment, happiness and security, ensuring that they actively partake in the fruits of reform and development. By doing so, we can genuinely realize the strategic objectives of long-term stability and high-quality development in Xizang. Thank you.

CGTN:

Balancing environmental protection and economic development is a global challenge, especially in ecologically fragile plateau regions. I would like to ask how has the Xizang Autonomous Region addressed this issue? What experiences can you share with us? Thank you.

Xu Zhitao:

Thank you for your interest in environmental protection in Xizang. As we all know, the Qinghai-Tibet Plateau serves as an eco-environmental security barrier and the "Asian water tower," meaning it has highly significant ecological status. The Xizang Autonomous Region is resolutely implementing Xi Jinping Thought on Ecological Civilization and adhering to the bottom line of ecological security. Several measures have been taken to enforce the strictest system for environmental protection, including:

First, we have firmly established the concept of prioritizing ecological conservation. The Xizang Autonomous Region has made significant deployments to build a national eco-civilization highland, create a national eco-civilization construction demonstration region, and accelerate the construction of a beautiful and prosperous Xizang. More than 10 local environmental protection regulations, including the "Regulations on the Construction of the National Ecological Civilization Highland in the Xizang Autonomous Region," have been promulgated and implemented, consciously promoting green, circular and low-carbon development.

Second, we have improved the ecological conservation system. We have implemented an industrial access negative list, water resource management, redline for farmland, and requirements for basic grassland preservation. We strictly prohibit the projects with high pollution, energy consumption and emissions from entering Xizang. We have implemented a "one-vote veto" system for environmental protection. Moreover, we have instituted systems for evaluating and assessing the objectives of ecological civilization construction, conducting audits of natural resource assets upon departure from office, carrying out inspections on ecological environment protection, and ensuring accountability for ecological and environmental damage.

Third, we have strengthened ecological projects. We have carried out the "Two Rivers and Four Streams" afforestation project and eradicated the problem of treeless households and villages in suitable areas. We have initiated action plans to prevent and control air, water and soil pollution. We have intensified efforts to combat soil erosion, desertification and wetland degradation in key areas. We have implemented projects to return marginal farmland to forest, return grazing land to grassland and re-plant grass. We have comprehensively promoted green and clean production, advanced the ecological transformation and industrialization of key sectors, and fostered the development of ecological and carbon sequestration economies.

When it comes to sharing experiences, my personal understanding is that for thousands of years, the Xizang people have developed a mindset and way of life that reveres, respects and lives in harmony with nature on the Qinghai-Tibet Plateau, known as the "roof of the world." Since the 18th CPC National Congress, the Party Central Committee has prioritized ecological conservation in the plateau and identified environmental protection as one of the "four main tasks" in Xizang. In simple terms, our experience lies in cherishing our valuable traditions and serving the overall interests of the nation.

Thank you.

Shou Xiaoli:

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

Translated and edited by Xu Xiaoxuan, Li Xiao, Liu Caiyi, Liu Qiang, Liu Sitong, He Shan, Liu Jianing, Wang Wei, Qin Qi, Zhang Junmian, Zhang Rui, Li Huiru, Yan Bin, Yuan Fang, Zhang Tingting, Wang Ziteng, Zhou Jing, 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. Lei Haichao, vice minister of the National Health Commission (NHC)

Mr. Wang Hesheng, vice minister of the NHC and administrator of the National Disease Control and Prevention Administration

Ms. Yu Yanhong, a member of the Leading Party Members Group of the NHC and commissioner of the National Administration of Traditional Chinese Medicine

Ms. Wang Bin, director general of the General Office of the NHC

Chairperson:

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

Date:

Nov. 1, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 29th briefing in the series "Embarking on the New Journey — A Government Perspective." Today's conference is about promoting high-quality development of health undertakings and protecting people's health. We have invited Mr. Lei Haichao, vice minister of the National Health Commission (NHC); Mr. Wang Hesheng, vice minister of the NHC and administrator of the National Disease Control and Prevention Administration; Ms. Yu Yanhong, a member of the Leading Party Members Group of the NHC and commissioner of the National Administration of Traditional Chinese Medicine; and Ms. Wang Bin, director general of the General Office of the NHC. They will answer your questions.

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

Lei Haichao:

Friends from the media, good morning. I am delighted to share with you the updates on our health initiatives and report to those who hold our health projects in high regard. First, I would like to express my gratitude to all sectors of society and the media for your sustained interest in China's health endeavors, and the acknowledgment and support you have extended to us.

Health affects the happiness of every family and plays a significant role in shaping the future of our nation. General Secretary Xi Jinping has highlighted that health is an important indicator of socialist modernization. Since the beginning of this year, we have implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 20th National Congress of the Communist Party of China (CPC). We have engaged in in-depth thematic education and transitioned into a regular COVID-19 response phase, applying prevention and control measures for Class B infectious diseases. We have fast-tracked the Healthy China Initiative, launched 49 regional medical center projects, begun the development of 81 integrated urban medical groups, and championed the high-quality development of public hospitals. Our efforts extended to the comprehensive establishment of closely-knit county-level medical communities. We have initiated a three-year campaign to improve medical services and patient experience, while actively advancing the development of the rural medical and healthcare service system. A total of 82.7% of public hospitals at the second tier and above now offer appointment-based medical services, and the per capita subsidy for basic public health has reached 89 yuan. We have seen marked enhancements in the accessibility, fairness and quality of our basic public health services. We remain committed to the guiding principles of the 20th CPC National Congress and are resolute in advancing the high-quality progression of the health and wellness sector. In doing so, we have considered the following aspects:

First, we aim to delve deeper into the Healthy China Initiative and the patriotic health campaign. Our goal is to mitigate the primary health risks faced by citizens. We advocate lifestyles centered around civility, health and eco-friendliness, while pushing forward the development of clean, health-focused cities. We have rolled out national nutrition strategies and encouraged balanced diets. We have also launched special initiatives focusing on the prevention and treatment of major chronic diseases, such as cardiovascular disease and cancer. Additionally, we have ramped up our approach to mental health care and occupational disease management, with the goal of drastically reducing and eventually eliminating the risks of major health threats.

Second, we have emphasized enhancing healthcare services at the grassroots level and have consistently deepened reforms in public hospitals with public welfare as our guiding principle. We have improved the tiered diagnosis and treatment system, ensuring that quality medical resources are distributed more equitably and expanded to grassroots and lower-tier medical facilities. We have been pushing forward with the construction of national medical centers and regional medical centers. During the 14th Five-Year Plan period, there has been support for the establishment of no fewer than 750, 5,000 and 10,000 key clinical specialties at the national, provincial and city/county levels, respectively. We aim for medical facilities in cities with larger populations to reach the standards of Grade 3A hospitals. Across the nation, at least 1,000 county-level hospitals have been targeted to reach the standards of Grade 3 hospitals. Also, we have emphasized elevating 1,000 central township health centers to Grade 2 hospital standards. Building on these efforts, we have fostered a developmental framework that combines urban with rural settings, creating a cohesive bond between counties and villages. We have enhanced medical services and quality management, and have perfected a medical emergency system that balances routine and urgent care with rapid response capabilities. National-level emergency medical rescue teams have now been established in every province.

Third, we have built a robust public health shield to ensure the well-being of our citizens and support socio-economic growth. We have continued to manage the prevention and control of outbreaks such as COVID-19, influenza and mycoplasma pneumonia in children, and have continually strengthened the prevention and control of major infectious diseases like AIDS, tuberculosis, hepatitis, as well as regional disease control efforts. We have systematically advanced the reform and high-quality development of the disease control system, enhancing professional capabilities in areas such as surveillance and early warning, emergency response, laboratory testing and epidemiological investigation. We have promoted the coordination and integration of medical and preventive care, and have essentially built a powerful public health system that meets the nation's public health needs.

Fourth, we will continue to improve health service provision for older people and children to promote high-quality population development. We will improve policies supporting childbirth and support the program of childcare services for the benefit of all. Additionally, we will strengthen daily health management and services for older people over the age of 65, especially those who have lost or are nearly losing their ability to take care of themselves. We will work to foster the development of national and regional centers for gerontology and geriatric hospitals, ensuring that the proportion of gerontology departments in Grade II general hospitals and above reaches over 60%. Moreover, we will implement the new action plan to guarantee maternal and infant safety, as well as the plan to safeguard children's health, aiming to achieve a screening rate of over 98% for genetically metabolic diseases in newborn babies.

Fifth, we will make greater efforts to promote the preservation and innovative development of traditional Chinese medicine (TCM), aiming to make these services more convenient and accessible. We will implement initiatives to revitalize and develop TCM and establish pilot zones to advance comprehensive TCM reforms. Additionally, we will also launch pilot programs to promote the preservation and innovation of TCM. Furthermore, we will launch major projects to promote TCM culture, and to train talents in both TCM and the integration of TCM and Western medicine.

Sixth, we will provide coordinated supportive services to promote the high-quality development of the health sector. We will uphold the leadership of the CPC in health-related work and strengthen the system in which hospital directors bear overall responsibility under the leadership of the Party Committee. We will also improve the legal system for safeguarding people's health and governance capacity. Moreover, we will improve the supervision and response system for biological security and fire safety. We will make greater efforts to improve medical science and technology research and innovation to meet demand and ensure practical application. We will promote reform in medical education and advance the training of medical talent, enhancing the training and staffing of medical personnel at the grassroots level. By doing so, we aim to establish a reliable medical team at the grassroots level. In addition, we will advance the Health Silk Road initiative and actively participate in international health governance.

That concludes my introduction. Next, my colleagues and I would be happy to answer your questions. Thank you.

Chen Wenjun:

The floor is now open for questions. Please identify the media outlet you represent before posing your questions.

Beijing Youth Daily:

China's medical and health service has witnessed progress in recent years, and public hospitals are playing a major role in offering such services. Going forward, what measures will be adopted to promote the high-quality development of public hospitals? Thank you.

Lei Haichao:

Thank you for your question. The reform and high-quality development of public hospitals directly affect people's access to medical care services and their sense of gain as well.

Statistics show that approximately 5.11 billion medical visits were made to health institutions nationwide from January to September of this year. Specifically, there were 1.59 billion visits in the first quarter, 1.75 billion in the second quarter, and 1.77 billion in the third quarter. The data from the first three quarters show an increasing trend in the number of medical visits. The total number of medical visits made throughout the first three quarters increased by 12.4% compared with the same period in 2019, and it also experienced a 6% increase compared with the same period last year.

Regarding inpatient care services, some 220 million patients were discharged from medical and health institutions in the first three quarters of this year. Some 70 million patients were discharged from hospitals in the first quarter, while the number was 80 million in the second quarter. In the third quarter, some 70 million patients were discharged from hospitals. The number of discharges in the first three quarters increased by 16.7% compared with the same period in 2019, while it witnessed an increase of 18.9% from the same period in 2022. 

The bed utilization rate in hospitals nationwide reached 80.2% in the first nine months of this year, marking an increase of 6.4 percentage points compared with the same period in 2022. The bed utilization rate at medical service centers reached 51.4%, which represents an increase of 7.6 percentage points from last year. Meanwhile, the rate at township-based health institutions was 54.9%, up by 4.8 percentage points compared with last year's level.

This data, when compared with the same period of last year or before the outbreak of the COVID-19 pandemic in 2019, clearly demonstrates that people's needs for medical services are being met more effectively. Additionally, medical and pharmaceutical services are being provided more efficiently. All these facts collectively reflect a strong performance at the macro level.

We will adhere to the new development philosophy and make concerted efforts to ensure reform and high-quality development.

First, we will fully implement a dean responsibility system under the leadership of the CPC Party committees and capitalize on the role of public hospitals' Party committees in controlling the direction, managing overall plans, making decisions, promoting reforms, and guaranteeing implementation. 

Second, we will further expand high-quality medical resources toward the community level and promote their balanced distribution, as well as build a resilient and high-quality medical services system with complementary functions. We will expedite the building of national and regional medical centers and promote the distribution of medical resources and priority of our work toward the community level so that people have easier access to medical care services. 

Third, we will advance the high-quality development of talents, technology, and disciplines, as well as management in public hospitals. Focusing on empowering specialist capacity, we will accelerate the transformation and utilization of medical scientific and technological innovations, promote the in-depth integration of medical services and management, and leverage information technologies to support and facilitate our efforts. By forming urban medical groups and closely connected county medical communities, as well as providing mobile medical services from tertiary and secondary hospitals and dispatching resident professionals, we will help primary-level medical and sanitary institutions improve service ability, quality, and management.

Fourth, we will work with relevant departments to deepen the price reforms of medical services, make dynamic adjustments to the prices of medical services, optimize medical institutions' balance of payments, and coordinate reforms regarding modes of payments, human resources, and remuneration systems. We will intensify performance assessments and comprehensive supervision to promote the high-quality development of medical institutions, especially public hospitals, in a bid to provide better services to our people. Thank you. 

Hong Kong Bauhinia Magazine: 

Building national demonstration zones for the comprehensive reform of TCM is a crucial measure for advancing innovative TCM inheritance and development. What progress and achievements have been made in exploring approaches to and accumulating experience for the construction of the demonstration zones? Thank you. 

Yu Yanhong:

Thank you for your interest in the construction of demonstration zones. In December 2021, together with the National Development and Reform Commission (NDRC), the NHC, the Ministry of Industry and Information Technology, and the National Medical Products Administration, the National Administration of Traditional Chinese Medicine approved the establishment of national demonstration zones for the comprehensive TCM reform in seven provincial-level regions of Shanghai, Zhejiang, Jiangxi, Shandong, Hunan, Guangdong, and Sichuan. For more than a year, the development of demonstration zones has shown a sound momentum with strong moves taken across the board, breakthroughs achieved in many areas, and further progress made in the following four aspects. 

First, organization and guidance have been enhanced, and TCM is now playing a more prominent role in facilitating overall economic and social development. All demonstration zones have established leading groups led by heads of provinces and municipalities. Concerted efforts have been made in the construction of demonstration zones, which have been included in Party congress reports, work priorities of commissions for further reform, and government work reports. Construction plans have been formulated, specifying reform tasks and creating blueprints. 

Second, we have enhanced coordination to form synergy in pursuing the comprehensive TCM reform in a more systematic, holistic, and coordinated way. All departments have enhanced their support and guidance. Comprehensive reforms of demonstration zones have been coordinated as a whole. All provincial departments have enhanced coordination, made a series of specialized reform plans, and encouraged prefectures and cities to carry out pilot projects around various themes, thus making further changes through pilot efforts. 

Third, we have made breakthroughs in key areas and links by upholding a problem-oriented approach and staying committed to reform and innovation. Shanghai has enhanced its TCM services in communities and established TCM departments in all community healthcare centers. Through digitalization reforms of TCM prescriptions, Zhejiang province has advanced the systematical reform of, and whole-process supervision over, clinical treatment, research, and services. Shandong and Hunan launched payment reforms based on curative effects for treating diseases for which TCM has demonstrated advantageous effects. The advantages of TCM hospitals have been enhanced, and average hospitalization costs have been significantly reduced. Jiangxi and Sichuan have intensified their efforts to form a standardization system, increasingly scaling up the cluster effect of TCM industry. 

Fourth, demonstration zones have been more active in serving national strategies and facilitated higher-level regional coordinated development. All demonstration zones have proactively promoted high-quality TCM development to integrate into Belt and Road cooperation and constructed 13 overseas TCM centers and nine national-level international TCM cooperation bases. With a focus on building a "highland" for TCM in the Greater Bay Area, Guangdong has promoted joint contribution and sharing of TCM resources in the area. Coordinative efforts have been made to encourage TCM doctors in Hong Kong and Macao to work in mainland public medical institutions, streamline the mainland's registration and approval procedures for traditional TCM medicines that have already been sold in Hong Kong and Macao for external use, and promote preparations made in the Guangdong Provincial Hospital of Chinese Medicine to be approved and used in Macao. 

Next, we will focus on key problems concerning the preservation and innovative development of traditional Chinese medicine. We will take advantage of local resource endowment and unique strengths, further stimulate the initiative of reform and innovation, and deepen institutional and mechanistic reforms so as to promote the coordinated development of traditional Chinese medicine. Achievements and successful practices in reform will be proactively promoted and applied, benefiting more regions and more people.

Cover News:

Early detection, reporting, and treatment are important principles in response to new and sudden outbreaks of infectious diseases. What progress has been achieved in upgrading the monitoring system and direct online reporting system for infectious diseases? What achievements have been made in strengthening the capacity for major epidemic prevention, control, and emergency response? What measures will be taken next? Thank you.

Wang Hesheng:

Thank you for your questions. Monitoring, early warning, and emergency response are all key factors in infectious disease prevention and control. We have developed a smart, multi-point triggered monitoring and early warning system, increasingly improving our capacity in major epidemic prevention, control, and emergency response. In terms of monitoring and early warning, we have focused our efforts on improving quality, expanding coverage, and strengthening effectiveness.

First, we have improved the quality of information reporting. We improved our online direct reporting system for infectious diseases and adjusted early warning indicators in order to detect, investigate, and deal with abnormal signals in time. We issued a list of responsibilities for the prevention and control of infectious diseases, launched pilot programs for establishing a disease-control supervisor system, and ensured that all those involved assumed their full responsibilities to report information on infectious diseases. Also, we promoted the development of an information platform for infectious diseases monitoring, early warning, and emergency command and realized step-by-step automatic data exchanges between medical institutions at or above the secondary level and the disease-control information system. By doing so, infectious disease monitoring has changed from a passive system to an initiative.

Second, we have created more channels for infectious disease monitoring. We established and improved monitoring systems targeting fever clinics, monitoring station hospitals, virus variants, and city sewage. We explored and carried out trials to monitor various acute respiratory infection pathogens and created a multi-channel monitoring system that covers both normal operation and emergency response, inbound and domestic cases, cities and the countryside, and the general public and key population groups. 

Third, we have strengthened interdepartmental coordination. We promoted monitoring data and information sharing among departments and held regular interdepartmental consultation sessions to jointly conduct epidemic risk assessments.

In terms of emergency response, we have focused our efforts on establishing mechanisms, strengthening team-building, and enhancing capacity. To address new and sudden outbreaks of infectious diseases and major infectious diseases, we have continued to improve infectious disease emergency planning system and intensified emergency response exercises, bolstering our capacity to respond to emergencies and conduct epidemiological investigations. Also, we accelerated the building of national-level infectious disease emergency response teams. So far, 20 national teams have been established for the prevention and control of acute infectious disease emergencies. This year, the central government has provided greater fiscal support to build another five national teams as well as infectious disease emergency response units at the prefecture and county level all over the country.

We will further enhance interdepartmental coordination, collaboration between hospitals and institutions for disease prevention and control, and multi-channel connectivity. We will improve monitoring mechanisms and establish a multi-point triggered, responsive, authoritative, and highly effective infectious diseases monitoring and early warning system supported by national and provincial-level regional platforms for infectious disease monitoring, early warning, and emergency command, so as to enhance the country's capacity for infectious diseases emergency response. Thank you.

The Poster News APP:

The report to the 20th CPC National Congress said that by giving priority to prevention, we will strengthen the health management of major chronic diseases and enhance the capacity for disease prevention and treatment as well as health management at the community level. What are the priorities for enhancing the capacity for disease prevention and treatment as well as health management at the community level? What will you do to better meet the public's needs for community-level medical services? Thank you.

Wang Bin:

Thank you for your questions. The guidelines for the Party's health work in the new era give high priority at the community level. Health work at the community level, as one of the basic public services, meets people's needs for basic medical and health services. The NHC has continued to improve the community-level medical and health care service system in urban and rural areas, and focused its efforts on the following areas:

First, we have improved infrastructure at community-level medical care institutions. By launching a campaign to provide quality medical care services at the community level and building community hospitals, we have guided community-level medical care institutions to shore up points of weakness and improve our health service capacity. Currently, more than 7,100 community-level medical care institutions meet the recommendation standards, accounting for 68% of those all over the country. More than 3,800 community hospitals have been built, giving great convenience to the public.

Second, we are focusing on rural areas and communities to strengthen our team of medical and health professionals. To better address people's needs, we are enhancing the recruitment of talents in general practice, rehabilitation, nursing, and other fields. We are also providing on-the-job training for personnel, aiming to improve medical workers' basic medical service capabilities and health management skills at the community level. We are organizing urban hospitals and retired doctors to support and assist communities. Additionally, we have implemented the "College Students Rural Doctor Special Program," which means that an increasing number of college students are able to serve the rural population. We are promoting the policy of exercising county-level management of medical professionals working at the township level as well as township-level recruitment of medical professionals working at the village level to enhance the attractiveness of community positions, allowing more outstanding medical professionals to stay and be effectively utilized at the community level. In 2023, over 5,000 college students have been recruited as rural doctors, and this number will continue to increase in the future. Furthermore, more than 4,800 medical students have completed standardized residency training for doctors free of charge under a program to train medical workers for rural areas and have entered positions at the township level.

Third, we are steadily promoting the high-quality development of family doctor contract services. We are promoting family doctor contract services for key populations, such as the elderly and individuals with disabilities, while also expanding the scope of these services. For example, we are encouraging specialists, in addition to general practitioners, and private medical institutions, alongside public ones, to provide services as a way of guiding multiple parties to participate in contract services through community-level healthcare institutions as platforms, and continuously enrich the content of services and optimize service delivery methods. As of the end of June this year, the coverage rate of contract services for key populations had exceeded 70%. Local authorities are also pushing for the expansion of contract services to a broader range of people based on their specific circumstances.

Fourth, we are continuously improving the level of equalization in basic public health services. The per capita fiscal subsidy for basic public health services has steadily increased in recent years, reaching 89 yuan per capita in 2023. We are gradually improving these services in light of the health needs of people. Data show that 89.88 million individuals aged 65 and above, 110 million hypertensive patients, and 37.63 million type 2 diabetes patients enjoyed basic public health management services in the first half of 2023. These figures represent increases of 40%, 3.3%, and 6.9%, respectively, compared to the same period in 2022.

Thank you.

China News Service:

People are also concerned about major infectious diseases, and I would like to ask about the specific major infectious diseases that currently affect the health of people. What achievements has our country made in containing major infectious diseases? Thank you.

Wang Hesheng:

Thank you for your question. The Party Central Committee and the State Council attach great importance to the prevention and control of major infectious diseases. Currently, the major infectious diseases that impact the health of our people primarily include AIDS, tuberculosis, hepatitis, and parasitic diseases.

Currently, China has basically halted the transmission of HIV through blood transfusions and blood products. The transmission of the virus from mother to child and through injection drug use has been effectively controlled. The coverage rate of antiviral therapy has surpassed 90%, and the success rate of treatment has also exceeded 95%. Overall, AIDS in China is at a low prevalence level. The national tuberculosis prevention and control service system has been progressively strengthened, with new diagnostic technologies and tools being gradually promoted and applied nationwide. The incidence rate of tuberculosis has steadily declined, with a mortality rate of 2.1 per 100,000, comparable to that of developed countries. The success rate of patient treatment remains above 90%. Innovations continue in the prevention and control service model for viral hepatitis. Blood safety and infection prevention and control in hospitals have been comprehensively strengthened. A significant decrease has been seen in newly infected individuals and a continuous decline in the total number of infections. The capacity and level of hepatitis treatment have significantly improved. Patients with hepatitis B receiving standardized treatment can be clinically cured, while 95% of hepatitis C patients achieve successful treatment outcomes, further interrupting the transmission of the viruses. Control and elimination goals for some key parasitic diseases have been achieved. Currently, all 452 schistosomiasis-endemic counties in China have met the criteria for transmission interruption, with three-quarters of these counties reaching the elimination criteria. China has achieved its goal of eliminating malaria, receiving certification from the World Health Organization. This marks an important milestone in China's public health history and the global eradication of malaria.

Next, we will uphold the principle of prioritizing prevention, while integrating prevention and treatment. We will persistently enhance the prevention and control working mechanism led by the Party and the government and featuring coordination across various departments, mobilization of all sectors of society, and public participation. We will integrate and coordinate treatment and prevention, strengthen the foundation for the prevention of multiple diseases at the community level, and continually enhance the building of the major infectious disease prevention and control system. We will continue to optimize prevention and control strategies, innovate technical means for prevention and control, solidify and amplify the effectiveness of our prevention and control efforts, and further diminish the health threats posed by major infectious diseases. Thank you.

Southern Metropolis Daily:

Improving patient experience and satisfaction with medical services is the most direct and practical measure to protect people's health and enhance their well-being. What arrangements have the NHC made in this regard? And what are your plans going forward? Thank you.

Lei Haichao:

Thank you for your questions. Let me elaborate on this. The NHC places great significance on people's healthcare experience and improving the quality of medical services, and has continuously implemented action plans to improve medical services. Since this year in particular, we have launched a three-year initiative themed "improving patient experience and satisfaction with medical services" along with relevant theoretical study programs. The themed initiative covers hospitals at all levels and the vast number of urban and rural primary medical and health institutions, improving our medical services throughout the entire chain, all areas and procedures. Here, I will give you a brief introduction.

First, we have focused on the entire service process to make medical treatment more convenient and make people feel more comfortable. From the patients' perspective, we promoted the implementation of 20 measures in six aspects in a comprehensive manner before, during and after diagnosis. Our goal is to achieve significant progress in 20 aspects in the next three years, that is, by 2025. Statistics show that 82.7% of public hospitals at or above the level of grade two currently provide medical appointment services, and the average ratio of scheduled patients to the total daily visits at tertiary hospitals across the country has reached 49.2%. In the past, people were not accustomed to making appointments for medical treatment. However, in recent years, with the help of the media, the guidance of medical institutions and the active participation of the public, the proportion has increased to 49.2%. Of course, we still have a long way to go and need to make further improvements.

In addition, the time required for taking outpatient numbers, paying fees and printing reports, was shortened, and flexible time arrangements for outpatients to shorten waiting times were encouraged. We have noticed that in some big cities, such as Beijing, the situation whereby the number of doctors being overly scheduled on Monday and Friday mornings has been significantly improved by adjusting the number of doctors on duty in mornings and afternoons at outpatient clinics. Now, when patients visit some medical institutions in Beijing, they can see more expert doctors in the afternoon. On the one hand, this plays the role of shifting peak load in doctor arrangement. On the other hand, it also plays a role in relieving traffic congestion around large hospitals in cities. Most importantly, it helps save people's time spent queuing and improve efficiency. In addition, we rely on the healthcare consortiums to improve the continuity of medical services and strengthen post-diagnosis management and post-illness follow-up services.

Second, we meet diverse medical needs. More than 5,500 comprehensive hospitals at or above the level of grade two across the country have implemented the "one-stop" comprehensive service model. The multidisciplinary diagnosis and treatment service model has been extended to more than 2,000 of these hospitals, which has been welcomed by the public. A total of 2,767 hospitals at or above the level of grade two have at least one new type of outpatient clinic, such as anesthesia, pain, pharmacy and health management, which means that the content and methods of outpatient services have been further improved and enriched.

Third, we have improved the accessibility and equal access to medical services and brought high-quality medical services to the people. We have set up 13 national medical centers of different categories and national regional medical centers for children, carried out 125 regional medical center projects, launched the development of compact urban medical groups in 81 cities, and the construction of county-level medical alliances in 827 counties. This year, we will also expand the development of county-level medical alliances to more provinces and counties to increase coverage. In addition, more than 2,700 internet hospitals have been established.

Fourth, we have taken measures to offer services that benefit and provide convenience to people at the community level, making it easier for them to access basic medical and health services close to home. Since the beginning of this year, we have developed and issued 10 specific measures for medical and health institutions at the community level to offer services that benefit and offer convenience to the public for the 2023-2025 period. Medical and health institutions nationwide are currently advancing the implementation of these measures. These mainly include facilitating outpatient appointments, especially ensuring that outpatient appointments for specialists at Grade II and Grade III hospitals are open and more accessible to people at the community level. Additionally, township clinics and community health service centers have arranged for physicians with intermediate or senior professional titles to be on duty in outpatient departments to solve more health problems at the community level. At the same time, urban community health service centers have extended outpatient service hours, which in some cities have been extended by one to three hours, allowing office workers to access medical care after work. Services for the registration and delivery of scarce medicines have also been provided. In addition, some township clinics and community health service centers offer convenient services such as weekend vaccination, enabling parents to bring their children to get promptly vaccinated in their spare time.

Fifth, we have focused our efforts on enhancing our capacity to serve people throughout the whole process of medical service improvement. Grade II and higher hospitals have established systems for healthcare social workers and volunteers. Increasingly, hospitals have improved patients' medical experiences by providing better dietary services, enhancing the quality of cleaning services, improving parking conditions for patients, and offering access to wireless networks and reading materials in public areas.

Next, we will swiftly compile the successful practices and experiences from various localities in enhancing medical services and apply them broadly, ensuring a better medical experience for the public and fostering more positive interactions between doctors and patients. Thank you.

Health News:

Maternal and child health is the cornerstone of the health of all people and is conducive to improving the population's health overall. What arrangements will China make to enhance its maternal and child healthcare service system and advance the high-quality development of maternal and child health? Thank you.

Yu Yanhong:

Thank you for your attention to the work on the health of women and children. Since the launch of the 14th Five-Year Plan, we have focused on implementing the Law on Maternal and Infant Health Care, the Law on the Protection of Women's Rights and Interests, and the China Program for the Development of Women and Children. We have consolidated and improved the service system, continued to optimize health services, and carried out a series of action plans for maternal and child safety, child health, and the development of TCM for maternal and child healthcare. Women and children are increasingly feeling the benefits, and their health continues to improve.

In 2022, China recorded a maternal mortality rate of 15.7 per 100,000, and the mortality rates for infants and children under 5 were 4.9 per thousand and 6.8 per thousand, respectively, all dropping to record lows and placing China at the forefront among middle- and high-income countries.

We will continue to ensure safety, solve difficulties, and promote development, and take effective measures to protect the health rights of women and children. We will give priority to the major health problems of women and children on the demand side, continue to optimize maternal and child health services, and consolidate and improve the system for safeguarding maternal and child safety, securing the bottom line of maternal and child safety. We will carry out a number of practical and effective special campaigns focusing on challenging issues such as myopia in children, obesity, birth defects, cervical cancer, and breast cancer, and improve the model of health services throughout the life cycle to advance the comprehensive development of maternal and child health.

We will also focus on enhancing the development of the maternal and child healthcare service system. We aim to advance the upgrading of the maternal and child healthcare service system, coordinate resources from multiple parties, address inadequacies, shore up weak points, and move faster to achieve the goal of ensuring at least one standard government-funded maternal and child healthcare institution in each administrative region at provincial, prefectural, and county level. We will improve the system for treating pregnant, delivery and postpartum women and newborns with severe or critical conditions, optimize the birth defects prevention and control network, advance the application of telemedicine platforms for maternal and child healthcare, and make quality medical resources more accessible at the community level to better safeguard maternal and child health. Thank you. 

Red Star News:

In 2022, China recorded 9.56 million newborns, of which 38.9% were second children and 15% were third children or children after third. In recent years, there has been considerable attention paid to supporting measures for childbirth. What specific arrangements has the NHC made? Thank you.

Wang Bin:

Thank you for your questions. The CPC Central Committee has attached great significance to the population work. The 20th Central Commission for Financial and Economic Affairs held its first meeting in May and proposed to advance Chinese modernization with the high-quality development of the population and improve the relevant policy system to provide better services for births. As the leading departments of this work, the NHC and NDRC have strengthened coordination among departments and enhanced research on the relevant policy system, with a focus on tackling difficulties and obstacles in providing supporting measures for births. We have also advanced the "Maternal and Children's Health" project, strengthened the five systems for maternal and child safety, safeguarded the health rights and interests of women and children, and improved services for sound childrearing. We have coordinated with relevant departments to roll out a series of supporting policies in such areas as education, taxation, housing, employment, and medical care. Many places across China have actively tried new methods. Some provinces, cities, and counties have introduced policies to offer subsidies for child care and housing, operation subsidies for childcare institutions, and social security subsidies for employers. This work has progressed smoothly.

We will work closely with relevant departments to link the high-quality development of the population with the high-quality life of the people. We will continue to support the development of childcare service institutions and model cities of sound infant care services. We will also promote the evaluation of employers that provide sound childcare services, encourage secondary and higher vocational schools and higher vocational colleges to offer infant care-related majors, and involve medical institutions in supporting childcare services. Moreover, we will improve the relevant policies, standards and regulations, and increase the service supply for childcare services to further enhance population-related policies. Thank you. 

Phoenix Satellite Television:

As we know, TCM is deeply rooted in local communities and among the public. What new measures have been taken to expand TCM services at the community level? Thank you. 

Yu Yanhong:

Thank you for your questions. The National Administration of Traditional Chinese Medicine has always prioritized improving TCM services at the community level, adhered to addressing weak links and strengthening its foundation, and strived to offer people convenient and doorstep TCM services. To date, China has established a TCM service system covering provinces, cities, counties, and townships, better meeting the needs of urban and rural residents for relevant services.

First, we have accelerated the building of a community-level TCM services network, promoted the full coverage of county-level TCM medical institutions, expanded the coverage of TCM centers in all community health service centers and medical centers in townships, and supported the setting up of TCM cabinets in community health service centers and village clinics where conditions permit. As of the end of 2022, the coverage rate of county-level TCM medical institutions had reached 87.78%, and a total of 40,674 TCM medical centers had been established across the country, giving 99.5% of community health services centers and 99.4% of township-level medical centers access to TCM services.

Second, we have intensified our efforts to nurture TCM talents at the community level. To implement the talent training plan, we have applied the policy of free training of compulsory rural service-oriented students, strengthened personnel training in TCM centers, and advanced relevant programs such as the building of a workshop team for renowned and experienced TCM doctors at the community level to make TCM services more accessible. To date, the number of TCM practitioners (assistants) in primary-level medical and health institutions stands at 205,000, accounting for 19.65% of the total across China.

Third, we have focused on enriching the content of TCM. During the 14th Five-Year Plan period (2021-2025), we planned to support all county-level TCM hospitals to build two priority specialties with TCM characteristics and one county-level promotion center for TCM-appropriate technologies. To date, we have completed the construction work of 593 county-level TCM hospitals. We have guided the standardized implementation of more than 10 TCM-appropriate technologies in six categories in TCM centers, and more than six TCM-appropriate technologies in four categories in TCM cabinets. We have also launched a health information platform for TCM centers, employing advanced technologies such as big data and artificial intelligence to provide auxiliary diagnoses for medical workers to improve service capacity.

For the next step, we will work with relevant departments to take the implementation of the major project for the revitalization and development of TCM as a starting point. We will advance the action plan for the project to improve TCM services at the community level during the14th Five-Year Plan period, expand the effective supply of TCM talents at the community level, promote pairing-up assistance programs between urban and rural areas in TCM services, improve the standardization of TCM services at the community level, and continue to make TCM services more accessible, fairer, and convenient. Thank you. 

China Youth Daily:

Vaccination is the most economical and effective way to prevent infectious diseases. Could you please provide an update on the progress of China's national immunization program, and what are the future plans? Thank you. 

Wang Hesheng:

Thanks for your questions. The immunization program plays an important role in China's disease prevention and control efforts, demonstrating significant effectiveness and wide-ranging influence. The vaccination coverage rate among eligible children under the national immunization program remains above 90%, and the incidence of various infectious diseases has been reduced to historically low levels thanks to the availability of vaccines. We have thoroughly implemented the Vaccine Administration Law, continuously improved policies under the national immunization program, stepped up our efforts to establish a robust vaccination service system, and ensured the sound, standardized, and orderly progress of the program.

With the central government allocating over 30 billion yuan annually for this purpose, the range of vaccines provided free of charge to residents under the national immunization program has expanded to cover 14 vaccines against 15 diseases. Many provinces are diversifying the vaccines included in the program in light of local needs. In addition, some regions offer free flu vaccines to specific groups such as the elderly and young children. Currently, a comprehensive immunization monitoring and regulation system has been established at the national, provincial, city, and county levels, as well as a vaccination service network at the county, township, and village levels. This has forged alignment between the national and provincial vaccination program information systems, as well as between provincial information systems and the national platform for coordinated vaccine tracing, which has further upgraded the quality and efficiency of vaccination efforts.

We will continue to reinforce the standardized management of vaccination and leverage information technology to promote cross-regional data connectivity and sharing. We will also pilot the launch of online vaccination certificates, aiming to ensure "data travels more and people travel less" to enhance the accessibility and convenience of vaccination services. Thank you.

Chen Wenjun:

The last two questions, please.

China Daily:

During the 14th Five-year Plan period (2021-2025), what are the specific measures to consolidate and improve the national system of essential medicines, enhance national medicine policies, and promote the high-quality development of medicine supplies? Thank you.

Wang Bin:

Thank you for your question. During the 14th Five-Year Plan period, we continue to refine the medicine policy system and advance the high-quality development of medicine supplies. For instance, we have realized effective coordination and integrated development in various fields, such as encouraging drug research and development and innovation, ensuring production and supply, and promoting rational drug use.

First, we have comprehensively improved the national essential medicines system. We have revised and refined the catalog management methods, optimized the selection and adjustment procedures, and dynamically updated the National Essential Medicines List. Through institutional support for these adjustments, we have emphasized the leading role of essential medicines, consistently improved the supply and quality of essential drugs, and facilitated their prioritized provision and use.

Second, we have improved the mechanism for ensuring the availability and stable pricing of medicines in short supply. To meet the public's urgent medication needs, we have utilized the national-provincial synergy mechanism, strengthened coordinated monitoring, comprehensive analysis, and tiered responses to drugs in short supply, and improved interdepartmental coordination.

Third, we have refined the mechanism for ensuring the supply of pediatric and generic medicines. Considering their clinical value and demand, we have updated the List of Encouraged Pediatric Medicines for R&D and Declaration, with fourth batches of such medicines already released. Medications on this list receive priority in evaluation and approval. Simultaneously, we have formulated the Catalogue of Encouraged Generic Medicines, aiming to incentivize enterprises to engage in research and production of these drugs. This is achieved through increased scientific research support, prioritized assessment and approval, and expedited licensing for reimbursement under the basic medical insurance scheme.

Furthermore, we have continually improved pharmaceutical services in medical institutions and intensified national and provincial monitoring of drug use. We have enhanced the mechanism for comprehensive clinical drug evaluation, and the application of technical standards. We have further strengthened analysis, monitoring, and the application of evaluation results. By taking these extensive measures, we have further updated the national system of essential medicines.

Thank you. 

Xinhua News Agency:

Carrying out patriotic health campaigns in the new era and furthering the Healthy China Initiative are two important approaches to promoting healthy lifestyles and building a healthy China. How will you coordinate the work in these two fields? Thank you.

Lei Haichao:

Thank you, I will answer your question. Rolling out the patriotic health campaigns is a great innovation and successful practice of the Party in which the mass line is effectively applied in healthcare and disease prevention. The campaigns have actively improved people's living environments, health awareness and health condition. We will continue to carry out the campaigns, using our advantages in management capacity and the ability to mobilize people, and drawing lessons and inspirations from past practices. The patriotic health campaigns have been carried out for more than 70 years, and have always played a very important, positive role despite the changing times. Following the COVID-19 outbreak, the campaigns, in conjunction with the Healthy China Initiative, made remarkable contributions to mobilizing and organizing the public to engage in epidemic prevention and control. Going forward, we plan to proceed from the following aspects:

First, we will make comprehensive efforts to transform the living environment in urban and rural areas. We will improve environmental hygiene in urban and rural areas through intensive efforts. The focus will be on farm produce markets and small restaurants, as well as old residential areas, urban villages, urban-rural fringe areas, and back alleys. We also plan to step up efforts to improve public sanitary facilities. Yunnan province has set a good example in this regard. After the epidemic broke out, Yunnan installed washbasins in popular public places across the province, such as tourist sites, so that visitors could wash their hands more often. Such amenities have been helpful even in small remote towns. This is a good practice combined with the patriotic health campaigns. 

Second, we will promote healthy lifestyles and further improve the public's health awareness. We will expand efforts to build public's health knowledge. We will promote healthy lifestyles that call on people to follow sensible diets, do exercise, quit smoking, limit drinking, and maintain a balanced mind. We will also help people improve their abilities and knowledge regarding maintaining their health.

Third, we will explore new methods of social health management and step up the building of a healthy China. The standards and procedures for the selection of national healthy cities and towns will be optimized, along with a long-term dynamic management mechanism. The selection results of healthy cities and healthy towns can be revised after periodic review and reexamination, with underperformers being disqualified. The work related to fostering national healthy cities and towns will be enhanced to achieve sound development. Villagers committees and residents committees will make more efforts to build public health committees. So far, after two years of efforts, more than 90% of villagers committees and residents committees nationwide have set up their own public health committees, with even distribution across different provinces and regions. We will form a comprehensive system to continue to create a healthy China, healthy families, healthy campuses, healthy communities, healthy townships, healthy counties and healthy cities. As we proceed with this work, we aim to fully integrate the pursuit of good health into our policies, which is crucial to implementing the Party's strategy for promoting medical care and health in the new era.

Fourth, we will innovate our work methods and encourage public participation. The general public are the main force in furthering the patriotic health campaigns and building a healthy China. We will improve legal guarantees, public education, organization, mobilization, policy research and technical support, implement the patriotic healthy campaigns in a more scientific, systematic and thorough manner, and increase public participation to better conduct our work. Thank you.

Chen Wenjun:

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

Translated and edited by Wang Yiming, Wang Qian, Gong Yingchun, Ma Yujia, Liu Jianing, Li Xiao, Zhang Rui, Liu Caiyi, Yuan Fang, Yan Bin, Zhang Junmian, Xu Kailin, Liu Sitong, Qin Qi, Liu Qiang, Xu Xiaoxuan, Li Huiru, He Shan, 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. Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA)

Mr. Zhao Fengtao, vice chairman of the CIDCA

Mr. Deng Boqing, vice chairman of the CIDCA

Mr. Tang Wenhong, vice chairman of the CIDCA

Mr. Zhong Haidong, vice chairman of the CIDCA

Chairperson:

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

Date:

Oct. 31, 2023

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 28th briefing in the series "Embarking on the New Journey — A Government Perspective." Today, we will brief you on the topic of continuously promoting global development cooperation and foreign assistance. Present today are Mr. Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA), along with Mr. Zhao Fengtao, Mr. Deng Boqing, Mr. Tang Wenhong and Mr. Zhong Haidong, vice chairmen of the CIDCA.

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

Luo Zhaohui:

Thank you, Ms. Shou. Friends from the media, we are living in an era of prosperity, but the world is far from peaceful. Regional conflicts are on the rise, major power competitions are intensifying, and the post-pandemic economic recovery is challenging. In contrast, China's development is remarkable. Developing countries have significantly raised expectations for us. Not long ago, I accompanied Chinese leaders on a visit to Indonesia, and we took a test ride on the Jakarta-Bandung High-Speed Railway. I was deeply impressed by the genuine gratitude and joy of the local people.

Since the 18th National Congress of the Communist Party of China (CPC), President Xi Jinping has assessed the global situation, led the trend of the times, and proposed new ideas and strategies, including building a global community of shared future, the Belt and Road Initiative (BRI), and the Global Development Initiative (GDI). He advocates for the greater good and shared interests, the principles of sincerity, real results, affinity, good faith, mutual benefit and inclusiveness, and contributes to global common development by offering Chinese solutions, wisdom and strength. China's global development cooperation and foreign assistance are keeping pace with the times, excelling in both internal and external aspects, presenting a new outlook and achieving new development.

First, we have improved the foreign assistance mechanism and system. In 2018, the CPC Central Committee made significant adjustments to the foreign assistance mechanism and system, establishing the CIDCA directly under the State Council. This agency is responsible for international development cooperation and foreign aid work.

Second, we have continuously increased capital investment. China's foreign assistance budget has been increasing year by year. Within the framework of the GDI, the CIDCA, for the first time, mobilized a special fund of $12 billion from domestic and foreign financial institutions this year. It represents a significant breakthrough in our global development cooperation financing model, as our previous development assistance primarily relied on government funds. This time, it involves financing from both domestic and foreign financial institutions. In addition to fully utilizing traditional forms of foreign assistance, such as grants, interest-free loans and concessional loans, we have launched reforms in foreign aid methods, such as debt swaps and a combination of foreign aid with trade and investment.

Third, we continue to advance and upgrade our foreign assistance toward global development cooperation. We adhere to the distinctive Chinese foreign assistance model while aligning with international practices. We are gradually shifting from traditional foreign assistance, which primarily relies on government-to-government bilateral, one-way "blood transfusion" assistance with government resources, toward a transformation and upgrading of international development cooperation that involves more multilateral or bilateral approaches, multiple participating entities, multi-directional synergy, and increased resource inputs. For this reason, five years ago our agency was named the China International Development Cooperation Agency, rather than the China Foreign Assistance Agency.

Fourth, we have strengthened the supervision and evaluation of foreign assistance. When the CIDCA was established, we created a supervision and evaluation department to ensure the quality of foreign assistance projects through supervision and evaluation, as well as the responsible allocation of every dollar of foreign assistance funds. Last week, we held the Second Sunshine Forum on International Development Cooperation to promote clean foreign assistance.

Under the guidance and leadership of President Xi Jinping, the past 10 years has been China's most active, effective and biggest contributing decade in leading and shaping international development cooperation and foreign assistance, and fully participating in global governance.

First, we have been leading global cooperation against the COVID-19 pandemic. Faced with a once-in-a-century pandemic, under the direct command of President Xi Jinping, the CIDCA initiated the largest and longest-lasting emergency humanitarian relief effort since the founding of the People's Republic of China. In nearly three years, we provided substantial pandemic relief supplies to 153 countries and 15 international organizations, dispatched medical expert teams to 34 countries, and supplied over 2.3 billion vaccine doses to more than 110 countries and four international organizations. In the five years since our agency's establishment, three years were particularly dedicated to this work. We contributed a large number of vaccines and pandemic relief supplies; especially, the number of vaccine doses we donated even exceeded the total provided by all other countries in the world.

Second, we have been promoting high-quality BRI cooperation. The BRI covers both land and maritime regions, spanning from east to west, connecting the past and present, and benefiting generations to come. Over the past decade, we have implemented more than 2,000 assistance projects in over 120 BRI partner countries, established over 80 economic and trade cooperation zones, mobilized nearly $1 trillion in investment, trained over 100,000 professionals in various sectors, and lifted nearly 40 million people out of poverty.

Third, we have been fully implementing the GDI. In 2021, President Xi Jinping introduced the GDI, and later launched 32 major implementation measures. This initiative is a significant enhancement and expansion of the BRI and has received support from over 100 countries, as well as various international organizations including the United Nations (U.N.). Under our agency's coordination, the GDI's project and funding pools are now operating smoothly, with over 200 small-yet-smart projects implemented. This July, we hosted the inaugural high-level conference of the Forum on Global Action for Shared Development , with more than 150 countries and international organizations participating. President Xi Jinping sent a congratulatory letter to the event.

Fourth, we have made every effort to promote "small yet smart" livelihood d programs. In Cambodia, Myanmar, Zimbabwe, Djibouti, and other countries, we have carried out a variety of such programs, including drilling wells, building houses and rural roads, as well as offering medical care, which have proven to be highly effective and delivered more benefits to local people. Recently, Mr. Tang completed his visit to Africa. Earlier this year, he announced the launch of the Juncao project in Fiji, which is regarded as a regional center in the South Pacific, to promote technology that uses grass to grow mushrooms. This program has significantly improved the living standards of the local people. These signature "small yet smart" foreign assistance projects, including Juncao technology for mushroom farming, hybrid rice growing, the use of artemisinin, providing access to satellite TV to a total of 10,000 villages, and the Brightness Action program, have earned wide recognition from the international community. Furthermore, we have shared the Chinese model of modernization with other countries. We have established the Institute of South-South Cooperation and Development at Peking University. Over the past seven years, more than 400 officials from over 70 countries have obtained their master's or doctor's degrees from this institute, with many of them becoming officials at or above the deputy ministerial level. The Confucius Institute and Luban Workshop have trained a large number of professionals to be proficient in Chinese. Hundreds of overseas demonstration villages for poverty alleviation and agricultural demonstration centers have also put into practice China's successful experience in poverty relief and agricultural development.

Fifth, we have actively carried out humanitarian aid. Over the past 10 years, we have provided emergency aid on more than 1,000 occasions to more than 70 countries. During the recent Palestine-Israel conflict, we have provided humanitarian aid in the first place, with additional supplies already en route. We were the first to extend an all-around relief to quake-hit Turkey and Syria. We made considerable efforts last year to assist Pakistan in coping with devastating floods. Since last year, we have provided emergency food assistance to more than 30 countries. 

Sixth, we have focused on enhancing multilateral and trilateral cooperation. Entering the new era, we have worked with more than 20 international organizations, including the United Nations Development Programme (UNDP), to carry out third-party cooperation on poverty alleviation, food security, public health, climate change, and environmental protection. More than 130 projects have been launched in over 60 countries, benefiting over 30 million people.

As the saying goes, when you give others roses, their fragrance lingers on your hand. By promoting global development cooperation and foreign assistance, developing countries mutually support one another, fostering benefits for all parties involved. We don't ask for returns, yet we have forged profound friendships with developing countries and their people.

That concludes my opening remarks. Next, my colleagues and I will answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Luo. The floor is now open to questions. Please identify the media outlets you represent before raising your questions. 

Hong Kong Bauhinia Magazine:

Foreign assistance is one of the pillars underpinning high-quality Belt and Road cooperation. China recently successfully held the third Belt and Road Forum for International Cooperation. What work has the CIDCA done to promote the BRI? Thank you.

Deng Boqing:

Thank you. The past decade has been a journey of fruitful outcomes. Foreign assistance has played an instrumental role in Belt and Road cooperation, which can be summarized in the following way:

We have strengthened strategic planning. We have synergized development plans and strategies with the BRI participating countries and provided extensive technical consulting services. Our focus has been on areas such as infrastructure connectivity, the standardization of international production capacity and equipment manufacturing, trade facilitation, and technical standardization. In addition, we have designed signature foreign assistance projects and "small yet smart" livelihood programs.

We have supported global anti-pandemic cooperation. In the battle against COVID-19, the most serious pandemic in a century, China provided a substantial amount of anti-pandemic materials and vaccines to nearly all major BRI partners. China has implemented an action plan to support anti-pandemic cooperation with neighboring countries and established the China-South Asia Emergency Supplies Reserve. On the basis of effectively controlling the spread of the COVID-19 pandemic in neighboring countries, we have worked diligently to prevent both imported cases and domestic resurgences. Additionally, the China-aided Africa Centers for Disease Control and Prevention has become the largest public health institution in Africa. China has supported various countries in the construction of medical facilities and laboratories, provided medical equipment, and offered medical assistance in the prevention and control of malaria, schistosomiasis, and poliomyelitis.  

We have promoted major projects. China has focused on six corridors, six connectivity routes, and multiple countries and ports, as well as supported the construction of major strategic projects along key trunk lines and junctions. China has supported the building of the New Gwadar International Airport, the Gwadar Eastbay Expressway, and a desalination plant in Pakistan, along with the roads, bridges, and tunnels in Bangladesh, Myanmar, Laos, and Cambodia. We have also worked on the resettlement village and railway vocational technical college for the construction of the China-Laos Railway, the road and infrastructure restoration projects in Kyrgyzstan and Tajikistan, and the upgrading and expansion of airports and ports in countries in Africa and Latin America. These achievements are the result of the efforts and hard work of Chinese people engaged in global assistance initiatives.

We have built a brand matrix. Global forums like the Forum on Global Action for Shared Development, the China-Indian Ocean Region Forum on Development Cooperation, and the Sunshine Forum on International Development Cooperation have become crucial platforms for fostering extensive consensus and promoting shared development, gaining significant global influence. Notable foreign assistance programs related to Juncao technology for mushroom farming, the use of artemisinin in treating malaria, hybrid rice growing, and the Institute of South-South Cooperation and Development have garnered widespread recognition worldwide. Furthermore, we have released a book titled "Rose Stories Along the Belt and Road,” which provides an authentic and amicable perspective on stories about the assistance China has provided to countries along the Belt and Road. These books have been widely appreciated and shared by many countries.

The third Belt and Road Forum for International Cooperation was successfully convened, yielding over 30 outcomes related to foreign assistance, including 1,000 small-scale livelihood assistance projects. We are committed to diligently implementing these outcomes and continuing to make unique contributions to high-quality Belt and Road cooperation. Thank you.

CCTV:

At the 20th CPC National Congress, it was explicitly emphasized that China is prepared to invest more resources in global development cooperation . This reflects the high importance that China attaches to global development cooperation. What specific plans will the CIDCA consider for the next steps? Thanks.

Luo Zhaohui:

It is a big and good question. I will answer it. In the Report to the 20th CPC National Congress, President Xi Jinping clearly stated that China is prepared to invest more resources in global development cooperation. It is committed to narrowing the North-South gap and supporting and assisting other developing countries in accelerating development. This commitment is not only a firm pledge to persistently advance China's global development cooperation and foreign assistance, and to uphold the concept of a community with a shared future for mankind, but it also marks the continuation of China's trajectory in foreign assistance during the first decade of the new era, garnering widespread acknowledgment from the international community.

Not long ago, a fifth-grader from a Lao primary school wrote a letter to our state leader, expressing his gratitude for China's assistance. He said a railway built with China's assistance passed through his hometown, bringing about significant changes. There are many similar stories. Just now, Mr. Deng mentioned a book titled "Rose Stories Along the Belt and Road," which we compiled.

In the face of a grand era and a broader perspective, we must adopt new concepts and take new actions. As China develops further, it assumes greater international responsibilities, faces higher expectations from other developing countries, and experiences increased pressure concerning issues related to Taiwan, maritime territory, and human rights. Accordingly, it needs more support from its friends. Against this backdrop, the irreplaceable and unique role of China's global development cooperation and foreign assistance will become increasingly prominent.

As we enter the second decade of the building of a community with a shared future for mankind, we are committed to deeply implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 20th CPC National Congress. We aim to drive China's international development cooperation in this new era toward new progress.

First, we will spare no effort to serve head-of-state diplomacy and China's diplomatic strategies. Despite changes in an evolving global environment, head-of-state diplomacy will help set the direction and lead the navigation. Therefore, China's international development cooperation will certainly witness greater achievements and contributions. We will further implement the GDI and major foreign assistance measures proposed by President Xi Jinping at multilateral and bilateral meetings, making greater efforts in areas such as poverty alleviation, climate change, food security, digital economy and connectivity, and advancing "small yet smart" programs. Meanwhile, we will better tell China's stories of foreign assistance, continue to publicize and introduce Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and expound on the core values of Chinese modernization and its significance to the world.

Second, we will focus on advancing the common development of the Global South. Naturally a member of the Global South, China will maintain its position as a developing country, strengthen theoretical guidance for South-South cooperation, and promote synergy between the GDI and other major initiatives. The Forum on Global Action for Shared Development will be held regularly, the roles of the GDI project pools and fund pools will be fully utilized, and the experience of Chinese modernization will be shared to align with the development strategies of other countries and regions. At the same time, we must resolutely oppose decoupling and the disruption of supply chains and work to resolve regional conflicts, contributing to a favorable environment for the common and shared development of the world.

Third, we will continue to enhance governance in international development cooperation. We must adhere to genuine multilateralism and continue to stimulate the transformation and upgrading of international development cooperation. With the implementation of the GDI as our primary task, we will intensify synergy and cooperation with multilateral institutions such as the U.N., focus on the two major development bottlenecks of projects and funds, and solidify the international development cooperation pattern with North-South cooperation as the main channel and South-South cooperation as a supplement. We will fulfill our "common but differentiated responsibilities" and expand tripartite and multi-party cooperation. The GDI is an initiative that also includes developed countries. We should urge developed countries to take the lead in fulfilling their commitments to development assistance and climate financing, and we will carry out development cooperation with them in the fields on which we agree.

Fourth, we will facilitate the creation of a new development pattern. While providing assistance to partner countries for their economic growth and livelihood improvement, we should effectively promote the global reach of China's high-quality products, advanced technologies, and industrial standards. We will act on our commitment to invest more resources in global development cooperation, fully utilize the leveraging and guiding role of foreign assistance, and pool more efforts to synergize foreign assistance with investment and trade, contributing to high-quality growth and opening-up. Thanks.

Associated Press of Pakistan:

Please brief us on the cooperation between the CIDCA and Pakistan and other neighboring countries in poverty reduction and people's livelihood development and consolidating the foundation of economic development. What of those have been achieved, and what are the plans for the next step? Thank you.

Luo Zhaohui:

Although I am the former Chinese ambassador to Pakistan, I prefer to defer this question to Mr. Deng, who is more familiar with this area.

Deng Boqing:

Thank you, my Pakistani friend. Your questions have prompted me to recall something. Previously, also at this venue, we held a press conference during a critical time in the fight against the pandemic. Before asking questions, a Pakistani friend first thanked the Chinese government’s on-time assistance to Pakistan. Seeing you here, I am filled with a sense of familiarity and warmth. China and Pakistan are all-weather strategic cooperative partners. Our bilateral development and cooperation have yielded numerous heartwarming stories, as well as many “firsts,” and here I would like to give you some examples.

We established the first mechanism for social and livelihood cooperation. Over the past five years, the two countries have engaged in pragmatic and efficient cooperation in six areas including agriculture, education, medical treatment, poverty alleviation, water supply, and vocational education, advancing 27 priority projects in an orderly manner.

We signed the first memorandum to implement the GDI, which has charted the right course for bilateral development and cooperation. Additionally, we constructed the first subway line in Pakistan, which has not only greatly improved travel efficiency for residents in Lahore, but also mostly alleviated traffic congestion in the surrounding urban area.

As I mentioned earlier, following the outbreak of the COVID-19 pandemic, we immediately provided anti-pandemic materials and vaccines to Pakistan, dispatched medical groups to the country, and supported Pakistan in establishing isolation hospitals. Mr. Luo served as Chinese ambassador to Pakistan during that time and holds deep affection for the country. Many initiatives were carried out under his direct command.

Last August, when Pakistan experienced a severe flood disaster, China immediately provided emergency humanitarian assistance through sea, land, and air channels. The cooperative development between China and Pakistan serves as the epitome of the CIDCA’s efforts to implement the concepts of China’s neighborhood diplomacy, as proposed by Chinese President Xi Jinping. Over the past decade, China has actively practiced the principle of amity, sincerity, mutual benefit, and inclusiveness, and pursued friendly and cooperative relations with neighboring countries. Significant efforts have been made to boost cooperation in poverty alleviation and other areas important to the people’s lives, which has improved people’s well-being and achieved fruitful results.

Extending a helping hand in critical moments demonstrates the principle of amity. After the outbreak of the COVID-19 pandemic, we immediately provided free vaccines and other anti-pandemic materials including masks and breathing machines to neighboring countries. According to preliminary statistics, we have provided more than 600 million doses of vaccines to ASEAN countries.

We believe in sincerity and honor commitments, which embodies the principle of sincerity. China's assistance goes beyond simply giving a fish; we aim to show people how to fish. We share governance experience and practical agricultural techniques, establish Luban Workshops, and help train vocational and skilled personnel.

Tangible achievements in bilateral cooperation showcase the principle of mutual benefit. Former Cambodian Prime Minister Hun Sen once noted that the prosperous development of projects such as the Sihanoukville Special Economic Zone and the Phnom Penh-Sihanoukville Expressway not only enhances the country’s infrastructure but also boosts its tourism, commerce, and agriculture sectors.

Expanding trilateral cooperation widely reflects the principle of inclusiveness. We collaborate with over 20 international organizations, including the World Food Programme (WFP), the UNDP, the United Nations Children’s Fund (UNICEF), and the United Nations High Commissioner for Refugees (UNHCR). Additionally, we have promoted numerous “small yet smart” livelihood programs in neighboring countries. According to preliminary statistics, these programs have already benefited millions of people.

Next, the CIDCA will continue to actively support neighboring countries in enhancing infrastructure and connectivity, and provide assistance in poverty alleviation and livelihood improvement, all in an effort to contribute to the building of a community with a shared future among neighboring countries. Thank you.

Yicai:

This year marks the mid-term evaluation period for the U.N. 2030 Sustainable Development Goals, and this is also a time when the cause of global development is facing tremendous challenges. As a specialized government organ dedicated to foreign assistance, as well as international cooperation and development, what actions has the CIDCA taken to implement the U.N. 2030 Agenda for Sustainable Development and the GDI? Thank you.

Luo Zhaohui:

This’s also a good question, and Mr. Zhao will answer.

Zhao Fengtao:

Thanks for your question. In 2021, Chinese President Xi Jinping proposed the GDI, which closely aligns with the implementation of the U.N. 2030 Agenda for Sustainable Development and makes a strong call for focusing on development and enhancing cooperation. The GDI is a Chinese initiative, a global public development platform, and an extension of the Belt and Road Initiative. In the two years since the GDI’s introduction, the CIDCA has undertaken extensive work, resulting in numerous achievements.

We have expanded our development partnerships and enhanced our cooperative mechanisms. The Group of Friends of the GDI was launched by China’s Permanent Mission to the U.N., drawing participation from more than 70 countries. We established a GDI promotion group to accelerate the implementation of various measures. The CIDCA has fostered close connections with more than 30 countries and international organizations, as well as Chinese financial organizations, the Asian Infrastructure Investment Bank, and the Bill & Melinda Gates Foundation, resulting in the signing and implementation of related cooperation documents. Additionally, the Global Development Promotion Center was established within the CIDCA, attracting 44 countries and regional and international organizations to take part in its network.

We have raised plenty of development resources to promote pragmatic cooperation, such as upgrading the Global Development and South-South Cooperation Fund and increasing its funding to $4 billion, establishing pools of global development projects and its funds, releasing guidelines for the project pool and its financing, and attracting participation of multiple entities from the government and society through joint investment, targeted donations, beneficiary financing, etc. Just as our chairman mentioned, we have also raised a special fund of $12 billion to support the implementation of GDI projects. At the same time, we follow a market-oriented approach and flexibly use multiple models to combine free assistance with the $12 billion special fund to accelerate the creation of new development assistance demonstration projects.

We have built a consensus on development and set up action platforms. The CIDCA will organize the Forum on Global Action for Shared Development in an institutionalized manner since the first edition held in July of this year, and will host the Sunshine Forum on International Development Cooperation and China-Indian Ocean Region Forum on Development Cooperation under the framework of GDI. In April and September of this year, we held a briefing on the promotion of the GDI and a high-level meeting on the GDI cooperation achievement demonstration at the UN headquarters, establishing international platforms for promoting GDI implementation.

We have enhanced development capacities and promoted common prosperity. Under the GDI framework, a total of 100,000 training opportunities have been provided to support the post-pandemic economic recovery in developing countries. So far, 30,000 people have been trained, covering all countries of the Group of Friends of the GDI. An innovation training base of the Global Development Promotion Center has been set up in Xiamen and offered offline training classes for students from 36 countries this year.

Although the journey ahead may be long and arduous, with sustained actions, we will eventually reach our destination. Only when we walk together can the development path become broader and smoother. We expect to join hands with all parties that aspire to join in global development, further leverage the role of GDI as a treasure house, catalyst, and accelerator, and make more contributions to the implementation of the GDI and 2030 Agenda for Sustainable Development. Thank you!

CGTN:

Over a long period, China has offered assistance to African, Latin American, and Caribbean countries, and countries in the South Pacific region, playing a positive role in advancing development in the above-mentioned regions. Could you please briefly introduce China’s aid in those regions? Thank you.

Luo Zhaohui:

This is a very good question. Let’s give the floor to Mr. Tang Wenhong, who’s in charge of the work. He has just completed a visit to three countries in Africa. 

Tang Wenhong:

I just came back to Beijing from Africa the day before yesterday, and I went to the South Pacific region in the first half of this year. Through my experience, I truly felt that China is a good partner, friend, and brother of African, Latin American, and Caribbean countries, and countries in the South Pacific region in pursuing common development. In recent years, under the framework of the Forum on China-Africa Cooperation, we have conducted cooperation with African countries on poverty reduction, rural work, hygiene and health, food security, digital innovation, green development, and other areas. For example, just as Mr. Luo mentioned, we helped drill over 1,000 wells in Zimbabwe, enabling people there to drink clean and sweet well water and resolving the water safety issue that has bothered local people for generations. We helped build the headquarters of the Africa Centers for Disease Control and Prevention to improve the general capacity of disease control in Africa. We helped build Bobo-Dioulasso University Hospital Center in Burkina Faso and aided the renovation and expansion of Masaka Hospital in Rwanda , making it easier for local people to access medical treatment. We carried out photovoltaic aid projects based on local conditions, bringing light and warmth to tens of thousands of households. We carried out a batch of information and communication projects in Africa, helping African countries develop digital industries, narrow digital gaps, and embrace the digital era. We implemented the Riverside Green Development Project in Ethiopia, offering local people a good place for leisure and sightseeing. China-aided projects in Africa demonstrate the profound friendship between China and Africa, bringing health, happiness, knowledge, and employment to the African people.

We have cooperated in implementing nearly 100 complete projects, material and technical assistance projects in Latin America, the Caribbean and the South Pacific, strongly supporting local economic and social development and improvement of people's livelihood. Specifically, we have helped those countries to address natural disasters like hurricanes and tsunamis and helped recipient countries rebuild homes and resume production. At the beginning of 2022, the volcanic eruption in Tonga triggered a tsunami and other severe secondary disasters. China immediately launched a multi-dimensional rescue operation, winning high praise from the international community. In March this year, Vanuatu was twice hit by strong hurricanes, and most of its islands were severely affected, with many residences and public facilities destroyed. We quickly provided humanitarian aid and helped the Vanuatu government and people carry out disaster relief, and post-disaster reconstruction.

In the next phase, we will accelerate the advancement of high-quality Belt and Road cooperation, actively implement the GDI, deepen international development cooperation, and make more contributions to improving people’s well-being in developing countries. Thank you.

China Daily:

Currently, due to the impact of geopolitical conflicts, extreme weather, food and energy crises, humanitarian crises are occurring with high frequency. Could you please brief us on China’s efforts to provide emergency humanitarian aid? Thanks.

Luo Zhaohui:

This is a good question. Indeed, we have done a lot of work in this respect and enjoy a high reputation internationally. Let’s give the floor to Mr. Zhong Haidong, who’s in charge of the work. 

Zhong Haidong:

Thank you for your question. Mr. Luo Zhaohui has already briefed us on our emergency humanitarian assistance and global anti-pandemic cooperation in his opening remarks. I would like to give more details.

Currently, the Israeli- Palestinian conflict continues. China has provided emergency humanitarian cash assistance of $1 million dollars to the Palestinian government and the United Nations Relief and Works Agency for Palestine Refugees in the Near East each. China will also provide 15 million yuan in emergency humanitarian supplies to the Gaza Strip through Egypt to help alleviate the humanitarian situation in Gaza.

All nations in the world live in the same global village and belong to a community with a shared future. When other countries suffer from a humanitarian crisis, China is always ready to provide help. China has upheld the spirit of internationalism and humanitarianism , put life first, and provided emergency humanitarian assistance to address the urgent needs of recipients. From 2018 to 2022, China provided over 800 foreign emergency humanitarian aid projects worth more than 15 billion yuan to countries in Asia, Africa, Latin America, the South Pacific, and Europe.

Since the beginning of this year, China has provided cash and emergency humanitarian supplies to countries like Türkiye, Syria, Libya, Morocco, and Afghanistan, which have suffered from earthquakes, floods, and other natural disasters. These have effectively alleviated the humanitarian crisis in the disaster-stricken countries and provided strong support for local resettlement, production resumption, and home reconstruction. These actions have been praised by recipient countries and the international community.

China's emergency humanitarian assistance has been a vivid reflection of solidarity and mutual assistance between China and other countries and a vivid practice of China's efforts to build a community with a shared future for mankind. It not only demonstrates China's responsibility as a major country but also injects positive energy and stability into the world.

Next, the CIDCA will continue to resolutely implement the decisions and arrangements of the CPC Central Committee, try its best to provide emergency humanitarian assistance, and make new contributions to building a peaceful world. Thanks!

CRNTT:

As just mentioned, Chinese foreign aid has launched "small yet beautiful" projects, such as those related to Juncao , artemisinin, and hybrid rice. Could you introduce how Chinese foreign aid implements and promotes these aid projects? Thanks.

Tang Wenhong:

In 2021, at the third symposium on the development of the BRI , President Xi Jinping pointed out that "small yet beautiful" projects should be a priority for foreign cooperation. Mr. Luo Zhaohui has already introduced this in his opening remarks. The CIDCA has deeply understood President Xi's important instructions, strengthened overall planning, and made key arrangements for promoting "small yet beautiful" projects. Since 2021, a large number of such projects have been set up and implemented. Among them, projects related to Juncao, artemisinin, hybrid rice, the Luban workshop, etc., have become high-quality aid projects and models of "small yet beautiful" projects. For example, Juncao technology replaces wood with grass, which can be used as livestock feed, used to grow edible and medicinal mushrooms , or used in sand prevention and sand fixation, etc. It has been promoted to over 100 countries and is praised as "happiness grass" and "fortune grass" by the local people. It has also solved issues relating to local women's employment. Artemisinin was the first special antimalarial drug discovered and successfully extracted by China. It is a gift of traditional Chinese medicine to the world. We have provided artemisinin technical assistance to Comoros, helping the local malaria incidence rate to drop by 98%, and there have been zero deaths. Hybrid rice technology is a monument in the history of agricultural science and technology in China and has made an important contribution to solving the global food shortage. With the use of this technology, the rice yield per hectare in Mozambique increased from 1.5 tons to 8 tons. Finally, the Luban workshop is a brand project for international cooperation in vocational education created by China. It has trained a large number of professional and technical talents for partner countries. Relevant assistance projects have been implemented in Kazakhstan, Uzbekistan, and other Central Asian countries. Nowadays, "small yet beautiful" has become a frequently used phrase when it comes to China's international development cooperation.

Next, the CIDCA will continue to increase assistance to the "small yet beautiful" projects, implement the 1,000 small-scale livelihood assistance projects announced by President Xi Jinping, and support developing countries in achieving green, universally beneficial, and inclusive development. Thanks!

Red Star News:

China's foreign aid and international development cooperation focuses on combining soft and hard aid , especially in helping developing countries build their capacity. What progress has China made in human resources development of foreign aid?

Zhao Fengtao:

You raised a good issue. As we know, science, technology, and management are the basic driving forces for the development of human society, and talent is fundamental in the development of all countries. China's foreign aid and international development cooperation include not only hard aid — "give people fish and you feed them for a day," — but also soft aid that promotes the idea of "teach people how to fish and you feed them for a lifetime." Over the past 70 years, China has vigorously promoted cooperation on human resources development and unreservedly shared advanced technology, management experience, and development concepts, making China's contribution to the development capacity of developing countries.

Human resources development programs are also typical "small yet smart" programs, as Mr. Tang just mentioned. Over the past 70 years, our areas of cooperation have become increasingly abundant. China's human resources development cooperation now spans 17 fields and over 100 majors. In addition to traditional areas of strength such as agriculture, forestry, animal husbandry, and fisheries, we have continued to expand cooperation into emerging fields, including 5G communication, the Beidou Navigation Satellite System, and mobile payments. We have also organized over 500 sessions of special training focused on governance. The experience of Chinese modernization has been shared overseas, and the book "Xi Jinping: The Governance of China" has been read by political leaders in many countries.

The forms of cooperation have become increasingly varied. We have engaged in both bilateral and multilateral cooperation, integrated online and offline channels, and conducted cooperation in various forms, including short- and medium-term training programs in China, higher education degree and diploma programs, overseas experts and consultants, and young volunteers. At the same time, we have initiated tripartite cooperation with developed countries such as Germany and Japan, as well as international organizations, including the UNDP and the ECOSOC, to jointly assist developing countries in enhancing their capacity.

Our cooperation has achieved increasingly significant progress. Over the past 70 years, we have organized about 15,000 training sessions for more than 180 countries and organizations worldwide, training over 400,000 professionals across various fields. This has effectively enhanced the capacity for development in relevant areas of these countries. The students, coming from multiple levels and fields around the world, have played crucial roles in building their countries and coordinating international affairs.

We believe that a single flower does not make spring; human society needs to develop and thrive together. China will expedite the establishment of a comprehensive and multidimensional cooperation system for international human resources development across various fields, contributing China's strength to advancing global development with the development philosophy and experience of Chinese modernization. Thank you.

Shou Xiaoli:

The last question, please.

Cover News:

This spring, northern China experienced large-scale sand and dust weather, significantly affecting the country's air quality. According to the data, the sand and dust primarily originated from outside China. What efforts have been made in environmental cooperation with the relevant countries, and what are the future plans? Thank you.

Luo Zhaohui:

You've raised excellent questions, all closely related to the quality of people's lives. This spring, everyone felt as though the sand and dust weather, which we hadn't seen for many years, had come back again. In fact, we have been practicing Xi Jinping Thought on Ecological Civilization and have made notable progress in expanding afforestation and curbing desertification. Therefore, experts generally believe that the sandstorm reemerging in northern China this spring originated from outside China. When the leaders of Mongolia visited China at the end of last year, they sincerely proposed that they hoped China could support their "Plant a Billion Trees" Plan. They received an immediate positive response from Chinese leaders. China and Mongolia have long been friendly neighbors. During the fight against COVID-19, Mongolia offered a donation of sheep to China, and China reciprocated with tea, which has become a widely shared touching story. Mongolia, China, and Japan, as well as South Korea in Northeast Asia, are all victims of desertification. Therefore, desertification control and afforestation serve the current and long-term interests of all countries in the region and their people, and conform to our commitment to the United Nations Convention on the Prevention and Control of Desertification and Xi Jinping Thought on Ecological Civilization. Therefore, within a short time, the CIDCA arranged for the Mongolian delegation to visit Ningxia and Inner Mongolia to learn about expanding afforestation and curbing desertification. Last month, the CIDCA and the National Forestry and Grassland Administration formed a group to visit Mongolia, signed a framework document on desertification control and afforestation cooperation, and attended the unveiling ceremony for the China-Mongolia Desertification Prevention and Control Cooperation Center. Decisions were made to construct three ecological protection and restoration demonstration areas and seven monitoring stations for sandstorm prevention and control, and to carry out 10 sessions of training programs, with the first session completed recently.

Indeed, for flagship projects in ecological conservation and restoration jointly initiated by China and Mongolia, the efforts of Mongolia alone are not enough; cooperation between China and Mongolia, as well as the collective efforts of neighboring countries and relevant U.N. agencies, are indispensable. We always say that solving cross-border issues requires multinational cooperation. In the past, Japan and South Korea have engaged in tripartite cooperation in the Gobi Desert region in the southern part of Mongolia. When I visited Mongolia in September this year, representatives from the UNDP, IFAD, and international financial institutions such as the AIIB were all present, and they all showed great interest and enthusiasm in assisting Mongolia with desertification control and afforestation.

Next, we will act upon the important consensus reached between our two presidents, as well as the consensus on specific cooperation between the two sides, and act promptly to keep our skies blue. Thank you!

Shou Xiaoli:

Thanks to Mr. Luo and all the speakers, as well as the participation of friends from the media. Today's briefing is hereby concluded. Goodbye!

Translated and edited by Zhang Rui, Wang Wei, Cui Can, Zhou Jing, Liu Sitong, Lin Liyao, Wang Yanfang, Mi Xingang, Huang Shan, Yan Xiaoqing, He Shan, Wang Qian, Xu Kailin, 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. Wang Zhizhong, vice minister of public security

Mr. Yang Xin, director of the Research Office of the Ministry of Public Security (MPS)

Mr. Qiu Baoli, director general of the Bureau of Public Security Management of the MPS

Mr. Li Jiantao, director general of the Bureau of Food and Drug Crime Investigation of the MPS 

Chairperson:

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

Date:

Oct. 24, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 27th briefing in the series "Embarking on the New Journey — A Government Perspective." Today, we have invited Mr. Wang Zhizhong, vice minister of public security, to brief you on the topic of "safeguarding public safety to ensure high-quality development," and take your questions. Also joining us today are Mr. Yang Xin, director of the Research Office of the Ministry of Public Security (MPS); Mr. Qiu Baoli, director general of the Bureau of Public Security Management of the MPS; and Mr. Li Jiantao, director general of the Bureau of Food and Drug Crime Investigation of the MPS.

Now, I will give the floor to Mr. Wang Zhizhong.

Wang Zhizhong:

Thank you, Mr. Chen. Ladies and gentlemen, friends from the media, good morning. I would like to express my gratitude for your interest in and support for the work concerning public security. I will now brief you on the related progress we have made.

Since the beginning 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, the public security system across the nation has focused closely on the main task of implementing the guiding principles of the 20th CPC National Congress and striving for the modernization of public security work. It has worked to both pursue development and safeguard security and adhered to a holistic approach to national security. It has also adhered to the general principle of pursuing progress while ensuring stability, and spared no effort to prevent risks, safeguard security, ensure stability and foster growth. As a result, a safe and stable political and social environment has been created, setting the stage for the building of a modern socialist country in all respects.

First, the MPS has comprehensively strengthened absolute Party leadership over the public security work. The MPS has arranged training sessions on the public security system across the country to study and implement the guiding principles of the 20th CPC National Congress and develop a strong sense of loyalty. In accordance with the general requirement of "grasping guiding principles, enhancing Party consciousness, emphasizing practices and making new progress," the MPS has taken a holistic approach to advance theoretical study, carry out investigation and research, promote development, conduct inspections and rectifications, and introduce regulations. It has also delivered more substantial and concrete outcomes from the theoretical study programs on implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The MPS has strictly implemented the "top agenda" system which prioritizes the study of General Secretary Xi Jinping's important remarks and instructions, and put into practice regulations such as the system for requesting instructions and submitting reports, in a bid to ensure unimpeded implementation of policies and decisions. The MPS has formulated a five-year plan for the inspection arrangements of its Party committee, improved its system of political inspection and investigation, and ensured absolute Party leadership over every aspect and process in the public security work.

Second, the MPS has resolutely safeguarded the country's political security. It has made coordinated efforts in operations against infiltration, subversion and cults, while carrying out related online operations, in a bid to resolutely safeguard the security of China's state power, systems and ideology. The MPS has also launched fights against terrorism and separatism in accordance with the law, continuously advanced management efforts at the source, and strengthened international counter-terrorism cooperation. As a result, the country has seen growing momentum in countering terrorism and separatism. 

Third, the MPS has spared no effort to maintain social stability. The MPS launched a campaign in the summer to ensure public safety, and has taken legal actions to crack down on criminal activities that are of greatest concern to the public, such as those involving guns, explosives, pornography, gambling, drugs, food, medicine, the environment, theft, robbery and fraud. The MPS has carried out campaigns to combat and root out organized crime in a regular manner, with 1,169 mafia-like organizations and criminal groups broken up and 11,381 suspects arrested. The MPS has cracked down on telecom and cyber fraud, with 689,000 cases handled. It has also resolutely combated and curbed serious violent crime, and the homicide clearance rate has remained at 99.9%. In addition, the MPS has been fighting cybercrime in accordance with the law, handled 55,000 related cases, and created a safe and clean cyberspace. From January to September, the number of public security cases and criminal cases nationwide saw year-on-year decreases of 1.9% and 1.2%, respectively.

Fourth, the MPS has strengthened public security management in an all-round manner. The MPS has launched a campaign to create demonstration cities for crime prevention and control systems, and continued to enhance the safety and strengthen risk prevention efforts on transportation routes such as railway lines, civil airlines, maritime transport, subway lines and bus routes. The MPS has further carried out a special program targeting transport accidents, reducing the number of deaths while preventing and controlling the number of severe accidents. As a result, the number of road accidents and fatalities fell by 9.8% and 21.7% year on year, respectively, and there have been no major accidents for 45 consecutive months.

Fifth, we have stepped up efforts to ensure high-quality economic and social development. Taking the building of a high-standard socialist market economy as our priority, we have committed to cracking down on all kinds of economic crimes. We investigated 114,000 cases of economic crimes from January to September, with 18.37 billion yuan of economic losses being recovered. We have also advanced "National Sword" actions to investigate more than 4,600 smuggling cases, with a total value of 112.99 billion yuan being involved. In the effort to build a beautiful China, we investigated 53,000 criminal cases concerning environmental and resource protection, with more than 4,800 cases related to illegally occupying farmland. In order to better serve major strategies of the Party and the country, we also formulated a series of measures to ensure high-quality development and put in place a batch of new policies to better serve the public and enterprises, benefiting hundreds of millions of people. Over 20 billion yuan has been saved for individuals and enterprises in terms of traffic management thanks to such convenient measures. Moreover, the MPS continued to implement the Internet Plus Government Services initiative, ensuring that 58.2% of matters can be dealt with in person without the need for a second trip, while 36.9% can be totally resolved online. 

Sixth, we have advanced the building of a public security team with ironclad conviction, commitment, competence, and discipline. We have stepped up efforts to implement the strategy of strengthening the police force through reform and advanced development of grassroots infrastructure. Moreover, we accelerated the building of an smart public security system and advanced a three-year action plan to strengthen the police force through technology so as to significantly improve the efficiency of the public security organs. We also strengthened management of our team, and made consistent and sustained efforts in improving its conduct. Stepped-up efforts have been made to intensify supervision and discipline enforcement, and education and rectification campaigns have been carried out among officials in a coordinated manner. We intensified police force training under combat conditions on a regular basis, and implemented various supporting measures to improve cohesiveness and morale of the police team. 

Moreover, the MPS has implemented the important instructions made by General Secretary Xi Jinping, including the guiding principles of promoting well-coordinated environmental conservation and avoiding excessive development, and further promoting the high-quality development of the Yangtze River Economic Belt to better support and serve Chinese modernization. As such, I'd like to share with you the positive results we have achieved to crack down on illegal fishing and sand mining in the Yangtze River basin. The MPS set up a leading group for the well-coordinated protection of the Yangtze River, and launched a three-year campaign in 2020 to crack down on illegal fishing crimes in the Yangtze River basin and to ensure a peaceful Yangtze River. We have dealt with over 20,000 criminal cases related to illegal fishing and seized more than 900,000kg of catches and over 3,500 vessels. By doing so, a healthy trend is gathering steam in the recovery of aquatic biological resources in the Yangtze River. We also further advanced the special campaign to crack down on illegal sand mining in the Yangtze River and improved the sand mining management cooperation mechanism in the river, which has effectively curbed large-scale illegal sand mining crimes.  

Going forward, the public security organs across the nation will follow 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. We will remain true to our original aspiration and founding mission, have the courage to take on responsibilities, and work hard to promote the modernization of work related to public security. We will step up efforts to advance the Peaceful China Initiative and build the rule of law in China so as to safeguard China's new development pattern with a new security architecture and ensure high-quality development with a high level of security.

That's all for my introduction. Thank you.

Chen Wenjun:

Thank you. The floor is now open for questions. Please identify the media outlet you represent before asking your questions.

Cover News:

In August, the MPS issued several measures for the public security organs to ensure high-quality development. There are 26 specific items, involving public security, household administration, and entry and exit services. What progress has been made in the implementation of these measures over the past two months? Thank you.

Yang Xin:

Thank you for your attention to our work. Since the release of the 26 measures in August for public security organs to ensure high-quality development, the MPS has organized public security organs across the nation to refine and implement these measures in an effective and orderly manner. So far, 23 out of the 26 measures have been put in place, and the remaining three are steadily progressing. Some of the measures achieved initial success as soon as they were adopted, while others have developed into detailed and effective institutional arrangements. 

First, we have made more efforts to increase institutional supply to better serve the major strategies of the Party and the country. Localities have been urged to further lower requirements for permanent residency registration, improve the points-based household registration system, and explore a unified household registration admission system for city clusters. By doing so, we have sped up work on granting permanent urban residency to people originally from rural areas and help them better integrate into new environments. Based on actual needs, we have issued port visas and multiple entry visas to foreign persons who came to China for business and trade talks, exchanges and visits, investment and start-ups, among other activities. 

Second, we have further streamlined administration, simplified procedures, and increased efficiency to better serve the public and start-ups. We have advanced public security administrative services, such as one-stop field services, one-stop online services, and inter-provincial services. Procedures related to the processing of driver's licenses and passport documents have been managed using a unified national system, based on which all types of household registration transfers can be handled in non-native places among 29 provinces, autonomous regions, and municipalities. Since August, more than 500,000 transfers have been delivered on an inter-provincial basis. A WeChat mini-program named "Ping'an Chuhai" (literally, safe voyage) was put into use, making work and life of over 9 million seafarers more convenient.

Third, we have refined public security and traffic management services to better meet people’s transport needs. Measures have been launched to offer improved services, such as easier access to license and certificate applications, simplified vehicle registration and transactions, better management of bus lanes in cities, time-limited parking spaces, and the fast handling of minor traffic accidents via online videos. More than 10 million people have enjoyed these services since August. Among them, 1.2 million people took improved motorcycle examinations, 280,000 new vehicles from 33 automobile manufacturers were tested in 36 cities, and 205,000 minor traffic accidents in 116 pilot cities were dealt with in a faster way via videos. Meanwhile, we have attached importance to the construction of institutions and mechanisms, introducing specifications for public security departments to receive and file cases in a more standard way and to efficiently deal with complaints from the enterprise's reporting platform.

Next, public security departments will continue to ensure coordination between security and development, vitality and order, as well as service and supervision. We will make concrete efforts to fulfill the major political responsibility of advancing and ensuring high-quality development through better services. Striving for new efforts, new undertakings, and new achievements, the public security departments will continue to contribute to serving and ensuring high-quality development and sustaining the miracles of fast economic growth and long-term social stability. Thank you.

Nanfang Metropolis Daily:

The recently concluded summer crackdown campaign by the public security departments has indeed garnered significant attention. Can you give an introduction as to its achievements? Will this summer campaign become regular in the future? Thank you.

Qiu Baoli:

I'll take your questions. From June 25 to Sept. 30 this year, the MPS organized a nationwide summer campaign to crack down on illegal and criminal activities of all types and deal with outstanding problems concerning social security. This action, referred to as the "summer campaign," was implemented by all public security forces across the country. All policemen nationwide were dispatched to work on the campaign, taking regular patterns and characteristics of cases often found in summer into consideration. Our primary targets have been outstanding criminal activities and places with serious public security problems. We have concentrated on "two unifications, large campaigns, thorough investigation, and dynamic zeros," which refers to the unification of crackdowns on major cases, unification in public security inspection and publicizing activities during summer nights, promoting large campaigns in accordance with local conditions, thoroughly investigating all individuals and items that need to be investigated, and achieving dynamic zero risks and hidden dangers. By implementing these comprehensive measures, we have made remarkable progress. During the campaign, the ministry successively deployed three cluster battles, three rounds of centralized and unified inspections and publicizing activities during summer nights, and seven large regional campaigns. All police forces nationwide were coordinated to promote the actions in a comprehensive way. Consequently, more than 566,000 criminal cases were uncovered, 2.042 million cases of public security offenses were tackled, and 975,000 suspects were captured in the campaign. We also resolved 2.846 million disputes and eliminated 865,000 hidden dangers. Reported crimes and public security offenses received by the 110 hotline fell by 13.8% and 5.2%, respectively, achieving our expectations.

In the next step, the MPS will summarize and consolidate the valid practices gathered from last year and this year’s summer campaigns, further enhancing the analysis and research on the patterns, characteristics and situation of social security during summer, and always staying responsive to the call of the people. While cracking down hard on all kinds of illegal and criminal activities, we will also organize public security organs across the country to address prominent criminal behaviors and public security problems that seriously affect social stability and public peace, making every effort to safeguard the safety of people's lives and property, so as to ensure overall social stability. Thank you.

The Poster News APP:

Lucid waters and lush mountains are invaluable assets. As a main force in safeguarding ecological security, what achievements have been made by public security departments in cracking down on environmental pollution crimes? This work requires coordination and cooperation between various departments and localities. What valuable practices and experiences can be shared with us? Thank you.

Li Jiantao:

I will answer your questions. The report to the 20th National Congress of the CPC has made major strategic deployments to promote green development and harmonious coexistence between humanity and nature while pursuing modernization. Public security departments have thoroughly learned and implemented Xi Jinping Thought on Ecological Civilization and the Rule of Law, upheld the concept that “lucid waters and lush mountains are invaluable assets,” adhered to the strictest systems and the most rigorous rule of law to protect the ecological environment, cracked down on all kinds of environmental pollution crimes in accordance with the law, and helped win the battle against pollution.

First, we have conducted special campaigns to crack down on crimes. We have organized the "Kunlun" operation for five consecutive years, with environmental pollution crime as the focus of the crackdown. From January to September this year, public security organs across China have filed and investigated more than 2,400 cases of environmental pollution crimes, representing a year-on-year increase of 19.7%.

Second, we have made great efforts in investigating key cases. We have tackled minor crimes at an early stage while simultaneously fighting major crimes, focusing on environmental pollution crimes that are severely harmful and despised by the public, and targeting the organizers, profiteers, and operators within the criminal chain. The MPS has supervised the handling of more than 70 major cases. A number of major cases, such as the inter-provincial disposal of waste lead batteries by 26 people led by Li in Wuqing district, Tianjin, and the inter-provincial disposal of aluminum ash via internet by 49 people led by Cai in Taizhou, Zhejiang province, have been successfully solved across the country.

Third, we have actively engaged in early-stage management. We integrated preventive and regulatory measures with actual crackdowns, and timely informed relevant administrative departments about the hidden problems, discovered while investigating cases, such as the illegal dumping of hazardous waste using oil field facilities, and the unlawful transfer and disposal of specific types of hazardous waste across provinces, thus to work in collaboration to address problems at the source.

Given the often cross-regional and cross-departmental characteristics of environmental pollution crimes, public security organs have vigorously strengthened coordination and cooperation mechanisms to promote collaborative governance. In terms of enhancing inter-departmental cooperation, we have worked with relevant departments to improve interaction between administrative law enforcement and criminal law enforcement, continuously organized special actions to crack down on environmental violations and crimes involving hazardous waste, and conducted cross-departmental special rectification on fraud crimes by third-party environmental protection service agencies, to generate synergy and work together. Regarding cooperation among regions, we have guided regions such as the Beijing-Tianjin-Hebei Region, Yangtze River Delta, Yellow River Basin, and Chengdu-Chongqing area to establish and improve cross-regional and cross-basin police cooperation mechanisms and have solved a number of cross-provincial cases such as the illegal disposal of oily mud led by Wu in Yongchuan District of Chongqing.

A sound ecological environment is a universal wellbeing. In the next phase, the public security organs will thoroughly learn and implement the guiding principles of the Party's 20th National Congress, shoulder political responsibilities, innovate thinking and ideas, crack down and maintain high pressure on crimes of environmental pollution, and introduce hard measures to offer legal guarantee for building a beautiful China. Thank you.

The Paper:

With the rapid development of the internet, we've noted that telecom and cyber fraud has become more rampant, and the general crime situation is still grave and shows new changes and characteristics. My question is, what measures have public security organs taken in anti-fraud, especially in cracking down on telecom and cyber fraud this year, and what achievements have been made? Thank you.

Wang Zhizhong:

It's a good question. Let me respond. Indeed, the current situation of telecom and cyber fraud remains challenging. The Party committee of the MPS has placed emphasis on curbing, implemented the decisions made by the CPC Central Committee and organized public security organs to grasp the new characteristics and patterns of telecom and cyber fraud. We've undertaken specific research, formed special teams, tackled specific cases, and leveraged technologies. We have strengthened internal synergy and fostered external synergy to strengthen crackdown, prevention, and control measures and taken management work to new heights. Since August this year, the number of telecom and cyber fraud cases and the property losses caused by fraud have dropped by 24% and 20.5%, respectively, year on year.  

First, we've stuck to cracking down on the fraud. Following the unified deployment of the MPS, public security organs across China have strengthened the crackdown and launched a number of special campaigns, including those to hunt fugitives via cloud services and platforms, freeze the SIM cards and bank accounts used by suspects, intercept domestic recruitment by criminal groups operating from abroad, and pursue the heads and key members of criminal groups. By the end of September this year, we had arrested a total of 387 heads and key members of telecom and online fraud groups, hitting hard at the egregious deeds of fraudsters, jointly handled a batch of major cases with the Supreme People's Procuratorate, and exposed a series of typical cases, forming a powerful deterrence. We organized regional combats, specific case strikes, and clustered combats domestically, enhanced cooperation with all departments to beat the criminal deeds related to the promotion of criminal groups, money laundering, and technological development, cut off key chains of crimes and deterred the rampant situation of telecom and online fraud crimes.

Second, we have enhanced preventive and protective measures. Efforts on crime prevention should be initiated at earlier stages by various measures to guard against being deceived to the greatest extent. We have guided public security organs to establish graded and classified early warning and dissuasion mechanisms and promoted the implementation of the "Xiamen experience" across the nation. Since the beginning of this year, we have sent 310 million alarm instructions to localities, and local public security organs have sent 130 million alarm messages to mobile phone users. Together with the Ministry of Industry and Information Technology, we've established an auto-system that can send dissuasion messages after the user receives suspected fraud calls, with a total of 640 million reminder messages already sent. Through cooperation with the Cyberspace Administration of China, we've set up and promoted an app entitled National Anti-fraud Center, with 15.785 million warning instructions already sent.

Third, we have held anti-fraud publicity campaigns. Together with the Publicity Department of the CPC Central Committee, we launched a month-long anti-fraud publicity campaign themed "Never Neglect Precaution and Dissuasion Words and Pay High Attention to Property Safety." During the event, the National Anti-fraud Center released the 2023 edition of the telecom and cyber fraud precaution brochure. We also united with relevant departments to supervise financial institutions, teleservice operators, internet service providers to carry out anti-fraud campaigns targeting employees and clients, jointly hold a national senior citizen anti-fraud knowledge competition with the China National Committee on Ageing, launched anti-fraud publicity campaigns in schools in cooperation with the Ministry of Education, and screened anti-fraud films in rural areas and primary and middle schools through cooperation with the China Film Group Corporation so as to enhance public participation.

That's all. Thank you.

CCTV:

Recently, General Secretary Xi Jinping chaired a symposium on further promoting the high-quality development of the Yangtze Economic Belt, stressing that the "10-year fishing ban" on the Yangtze River should firmly be implemented, and the achievements already made be consolidated. What specific measures will be adopted by public security organs to consolidate the gains made in cracking down on illegal fishing in the Yangtze River basin? Thank you.

Qiu Baoli:

Let me answer this question. The MPS will fully implement the guiding principles of General Secretary Xi Jinping's speech at the symposium on further promoting the high-quality development of the Yangtze Economic Belt, stay true to the Party's founding mission, boldly take on responsibilities, and concentrate on the central task of economic development, serving the overall interests of the country. We will give full play to the functions and advantages of public security organs, and keep up the pressure against illegal fishing in the Yangtze River so as to effectively protect aquatic biosecurity in the Yangtze River, strive for a peaceful Yangtze River and safeguard the high-quality development of the Yangtze Economic Belt.

Firstly, the work will be advanced on a regular basis. During the 10-year fishing ban period, the MPS will organize a special campaign called "Peaceful Yangtze River," focusing on combating illegal fishing and criminal activities in the Yangtze River annually, continue to take stronger combat, prevention, management, control, and construction measures, and firmly prevent illegal fishing activities from re-emerging once dealt with. At the same time, the MPS will keep the regular operation of its special work group for well-coordinated protection of the Yangtze River and ensure that its mechanism, standards, and efforts will be maintained.

Secondly, long-term mechanisms will be consolidated. We will improve the police cooperation mechanism in the Yangtze River basin, actively advance the application of information and smart technologies of the water policing in the Yangtze River basin, and strengthen the dispatch, grasp, comprehensive analysis, and unified command when cracking down on prominent illegal and criminal activities. We will continue to advance law enforcement cooperation mechanisms with departments of agriculture and rural affairs and others and improve information sharing and resource integration so as to foster stronger synergies effectively.

Third, coordinated governance will be advanced. In response to the loopholes in regulation over the sector found in work, we will advance relevant departments to strengthen comprehensive regulations and continue to ramp up regulatory measures at the source to combat the illegal production and sale of fishing nets and gear and the illegal trade of fishing catches. At the same time, we will work with the departments of agriculture and rural affairs to introduce documents to standardize law enforcement and guide localities in a scientific manner to give equal emphasis to education and punishment, ensuring that law enforcement is effective. Thank you!

People.cn:

Recently, a proposed list of the third batch of national "Fengqiao-style police stations" was released to the public. Can you talk about that in detail? In addition, can you talk about how the public security organs will carry forward the "Fengqiao experience," and how will they innovate and develop the "Fengqiao experience"? Thank you.

Qiu Baoli:

I will answer this question. The "Fengqiao model" was originally developed at the community level by public security organs. The report to the 20th CPC National Congress categorically stated that we should apply and further develop the "Fengqiao model" for promoting community-level governance in the new era. The Party Committee of the MPS has always taken the application and development of the "Fengqiao model" as a crucial task, organized police stations nationwide to be committed to combining concrete work with the mass line, adopted proactive and preventive policing, and made efforts to prevent and defuse various problems and risks, effectively maintaining social harmony and stability. We have mainly adopted three measures. 

Firstly, we have launched campaigns to build "Fengqiao-style police stations" on a regular basis. Since 2019, the MPS has nominated a batch of 100 "Fengqiao-style police stations" every two years. In November this year, the third batch of police stations will be selected and nominated. Currently, public security organs at ministerial and provincial levels have nominated 1,313 "Fengqiao-style police stations," which has yielded good results in the building of 1,000 demonstration police stations and making improvements to 10,000 police stations and has led police stations to work on and deliver solid progress in sorting out and diffusing problems and adding more substance to the mass line. About 6 million cases of social problems and disputes have been addressed annually, and the number of cases that developed into criminal cases from civil cases triggered by problems and disputes has fallen over four consecutive years.

Second, we have implemented the "Police Officers Visit Households" campaign in police stations nationwide, which involves visiting households, addressing people's concerns, resolving conflicts, and preventing risks. On average, we have visited over 52 million households of various types each year and handled more than 12 million requests for assistance from the public.

Third, we have organized the "Five Prevention" community outreach campaign, which involves in-depth engagement with the local communities to promote awareness and the prevention of theft, fraud, drug abuse, conflicts and disputes, and public security incidents. As a result, the number of criminal and public security cases nationwide reported to the 110 emergency hotline has been declining, achieving a favorable situation of joint efforts between the police and the public in creating a safe and secure environment.

Next, the national public security organs will apply and develop the "Fengqiao model" in the new era, further deepen the establishment of "Fengqiao-style police stations," and promote governance with laws and regulations, systematic and comprehensive measures, and an emphasis on addressing problems at the source. We will strive to resolve conflicts and disputes in a timely manner at the community level and nip them in the bud, actively advancing social harmony and stability. Thank you.

China News Service:

Drug safety is closely related to the daily lives and physical health of the general public, and it has consistently received extensive attention from various sectors of society. Could you please share the achievements made and measures taken by the public security organs in combating drug-related crimes?

Li Jiantao:

I will brief this question. Since the 20th CPC National Congress, the public security organs have focused on combating prominent drug-related criminal activities that have been strongly reported by the general public. We have taken decisive actions, striking hard and swiftly, and maintained a high-pressure crackdown to effectively ensure the safety of medication for the people.

First, target actions have been taken. We have extensively organized the "Kunlun" targeted action to strike drug-related crimes. In response to prominent issues concerning drug safety, we have deployed targeted actions in accordance with the law to vigorously crack down on the manufacturing and selling of counterfeit and substandard drugs. In collaboration with 11 departments, including the State Administration for Market Regulation, we have taken targeted actions to address outstanding issues in the medical aesthetics industry. From January to September this year, public security organs have successfully solved over 4,600 drug-related criminal cases.

Second, efforts have been made to strengthen breakthroughs in solving cases. In 2023, the MPS has listed 55 major drug-related cases for special supervision. In collaboration with the Supreme People's Procuratorate and the National Medical Products Administration, 10 cases have been jointly listed for special supervision. We have adopted a comprehensive approach to combat cross-regional drug-related crimes online, targeting "all aspects, all elements, and the entire chain" with a resolute determination to dismantle criminal networks. Localities have successfully solved a series of major cases, including the Yibin, Sichuan, "Feb. 25" case, involving the production and sale of counterfeit traditional Chinese medicine containing chemical powder, the Guangdong "Mar. 15" case involving the production and sale of counterfeit Angong Niuhuang Wan, the Chongqing case involving the production and sale of counterfeit botulinum toxin by Sheng and others, and the Shanghai "Aug. 29" case involving the illegal production and sale of counterfeit anticancer drugs.

Third, the interdepartmental collaboration has been deepened. We have cooperated with the Supreme People's Court and the Supreme People's Procuratorate to revise and issue the "Interpretation on Several Issues Concerning the Application of Laws in Handling Criminal Cases Endangering Drug Safety." This has provided a more powerful legal weapon for the strict enforcement of drug-related crimes. In conjunction with the National Medical Products Administration and other departments, we have formulated and implemented the "Administrative Law Enforcement and Criminal Justice Coordination Measures for Drug-related Offenses," further improving the coordination mechanism between administrative and criminal enforcement in the field of pharmaceuticals and enhancing joint efforts to combat and rectify such offenses.

With the continuous intensification of crackdown and governance, the overall situation of drug safety in our country has improved and remained stable. However, influenced by various factors, there are still numerous negative factors that breed drug-related crimes, especially the prominent issues of illegal production and sale of drugs in black workshops and dens. In the next step, the public security organs will always adhere to the principle of putting the people first, focus on prominent issues in the pharmaceutical field, and carry out targeted actions to crack down and rectify in-depth in collaboration with relevant departments, ensuring drug safety. At the same time, efforts will be made to increase the exposure of cases and promote legal awareness, guiding the general public to enhance their ability to identify counterfeit and substandard drugs. Here, I would like to once again urge everyone to obtain drugs through legal and compliant channels. Do not easily believe in so-called "miracle drugs" or "elixirs" that claim to cure all diseases but lack proper registration and approval. If you discover any clues of illegal activities, please actively report them to public security organs and relevant departments. Thank you!

Phoenix TV:

My questions are about food safety crimes. We've seen repeat occurrences of food safety crimes in recent years. How does the MPS view the offenses? What measures has the ministry taken to fight against them? Thank you. 

Li Jiantao:

I'll answer these questions. The report to the 20th CPC National Congress includes a section on food safety being added into the public safety system and emphasizes tightening supervision over food and drug safety. The public security authorities, after thoroughly studying the guiding principles of the 20th CPC National Congress, have acted on them and adopted a series of strict measures to crack down on and rectify food contamination, aiming to resolutely ensure that people's every bite of food is safe. 

First, we have stuck to a strict fighting approach in alignment with the law and carried out in-depth, transparent, and targeted campaigns. The MPS has deployed public security organs across the country to conduct the "Kunlun 2023" special operation to take down crimes in the areas of food and medicine safety. Efforts have been pooled to deal with high-profile crimes regarding the excessive use of additives and illicit addition of toxic or harmful non-edible substances to food. We have cracked down on more than 5,300 criminal cases involving illegal additions to internet-famous food, abuse of clenbuterol, and the production and sale of fake beef and mutton, arresting over 6,300 criminal suspects.

Second, we have always taken proactive actions and constantly enhanced our crime-battling capabilities. To address the issue of numerous hard-to-find and hidden food-related cases, we have mobilized more than 500 food and drug rapid testing laboratories nationwide built under public security organs to proactively sample and test food products with a high incidence of issues, timely identifying a number of issue-related clues. Currently, the self-discovery rate of case leads stands at 60%. In response to growing food-related crimes on the internet, we have intensified online inspections, conducted cross-regional coordinated operations, and sundered a number of online crime chains. Facing the problem of changing criminal forms of illicit addition, we have cooperated with scientific research institutions to tackle technological challenges and joined departments involved to develop testing standards and methods, rendering the battle more effective and efficient. 

Third, we have been committed to collaborative governance and contributed to improving the overall management of food safety. In fulfilling our crime-fighting responsibilities, we have collaborated with relevant departments to shift post-incident handling to incident prevention in food safety regulation. A coordinated mechanism with administrative authorities has been set up to proactively report major food safety issues and jointly address the hidden risks. We have conducted in-depth field trips and visits for the benefit of the public and enterprises, carefully heeded their views and suggestions, and encouraged the public to report food safety offenses. We have also strengthened the publicity of typical cases, timely issued risk warnings, and fostered a positive public opinion environment.

At present, China's food safety has achieved stable and positive performance. However, driven by economic interests and other factors, food-related crimes remain frequent and recurrent, making combating them a daunting task. Going forward, the public security organs will fully implement the "four most stringent" requirements (most rigorous standards, strictest supervision, most severe punishment, most serious accountability), focus on the public's concerns regarding food safety, and continue to crack down on related crimes with a zero-tolerance approach. By doing this, we aim to upgrade food safety regulations and ensure that the public can eat safer and healthier food with greater reassurance.

Thank you!

Chen Wenjun:

The last two questions, please.

Beijing Radio & Television Station:

We have noticed that in terms of public security reform, the concept of public security organs at the city level being mainly responsible for combating problems and police stations at the county level working on prevention is gaining increasing traction. Could you give a detailed explanation of this approach as well as the experiences and achievements obtained so far? Thank you.

Yang Xin:

I'll answer this question. In August 2022, the MPS held a meeting to advance comprehensive public security reform. It underscored how we should follow the principles of Party committees exercising leadership, ministerial-level authorities heading the overall work, provincial-level departments taking the major responsibility, city and county-level organs in charge of combating, and police stations responsible for prevention, and focusing on expediting the institutional reform that can adapt to, align with, and complement that in the police force. The goal is to promote system integration, seamless synergy, and efficient coordination in varied police security reforms, thus driving the high-quality development of police security work. Following the MPS's deployments and requirements, the public security organs across the country have regarded combat capability as the criterion, acted on the demands under combat conditions, honed professionalism, and advanced flat management. They have actively facilitated the reform of streamlining departments and police categories in the public security organs at the city and county levels and improved the integrated mechanism of "intelligence-command-action." Additionally, they have deepened the reform of establishing one comprehensive command room and two teams of police officers working in the communities and as law enforcers and promoted the full coverage of one police officer responsible for one village (grid). For example, public security organs in Beijing, Tianjin, Inner Mongolia, Jiangsu, Zhejiang, Hubei, and other regions have made valuable explorations in accordance with the principles of provincial-level departments taking the major responsibility, city and county-level organs being in charge of combating, and police stations being responsible for prevention. It also emphasizes the improvement of the organizations, police categories, grassroots structures, and foundations. They have made notable progress in such areas as optimizing responsibilities, improving police force operational mechanisms, and channeling police resources toward lower levels. 

Next, the MPS will continue to advance police reform, promote grassroots infrastructure development, and persistently implement policies and measures that prioritize the grassroots level. These efforts are geared towards effectively bolstering the capabilities of grassroots units, stimulating vitality at the grassroots level, and enhancing their combat capabilities.

That's a brief overview. Thank you.

Hong Kong Bauhinia Magazine:

Strengthening intellectual property rights protection is an inherent requirement for promoting the development of an innovative nation and driving high-quality growth. May I ask what measures public security authorities have taken to enhance the protection of intellectual property rights? Thank you.

Wang Zhizhong:

I will answer this question. The report to the 20th CPC National Congress has made significant arrangements regarding "strengthening the rule of law protection for intellectual property rights and establishing a fundamental institutional framework to support comprehensive innovation." The MPS has provided guidance to all public security organs nationwide to further enhance their sense of responsibility, vigorously crack down on infringement and counterfeiting crimes in accordance with the law, effectively safeguard the legitimate rights and interests of the masses and enterprises, and promote the construction of an innovative country while providing high-quality development services.

First, we carried out special operations. We have deepened the "Kunlun" special operation, focusing on driving innovation and intensifying efforts to combat various intellectual property crimes, including infringement of technological innovation achievements. From January to September this year, public security organs successfully investigated and cracked down on 28,000 cases of intellectual property infringement and the production and sale of counterfeit goods, effectively safeguarding the legitimate rights and interests of consumers and enterprises, and protecting and enhancing the ecosystem of technological innovation.

Second, we protect according to the law and ensure equality. Adhering to the rule of law fosters the best business environment, and we uphold a property protection system based on the principle of fairness. We provide equal protection under the law for the legitimate intellectual property rights of various market entities, including state-owned enterprises, private enterprises, domestic and foreign enterprises, and enterprises of different sizes - large, medium, and small. We have continuously investigated and resolved several criminal cases related to intellectual property rights, contributing to the establishment of a market-oriented, law-based, and international business environment. In response to these efforts, foreign institutions in China, multinational corporations, and private enterprises have expressed their gratitude through letters to public security organs. During the fourth and fifth Summits on Rule of Law Construction in the Private Economy, public security organs executed the "Kunlun" special operation to combat infringement and counterfeiting crimes in accordance with the law. This initiative was subsequently recognized as one of the "Top 10 Events" for strengthening the development of the rule of law within the private economy in the new era, and also as one of the "Top 10 Escort Actions" for the development of the rule of law within the private economy in 2023.

Third, we are promoting the principles of collaboration, participation, and shared benefits. We have significantly strengthened our cooperation and coordination with relevant departments, reinforced the connection between law enforcement actions, and forming a collaborative force. We are continuously conducting research and engaging in activities under the theme of "benefiting the people and supporting enterprises" to understand and address prominent issues, establish channels for reporting clues, and actively respond to the concerns of the public and businesses. We are guiding Tianjin, Jiangsu, Sichuan, and other regions to explore the establishment of "Intellectual Property Mobile Police Stations," "Intellectual Property Protection Service Outposts," "Intellectual Property Cloud Police Offices," and other initiatives, aiming to promote the improvement of the social governance framework and safeguard the smooth operation, secure management, and sustainable development of enterprises.

Next, public security organs will thoroughly implement the guiding principles of the 20th CPC National Congress, closely monitor various criminal activities that infringe upon the legitimate rights and interests of market entities and consumers, continue to advance "Kunlun" operation and other special operations, and continuously increase efforts to combat intellectual property rights infringement crimes, effectively contributing to high-quality development. Thank you.

Chen Wenjun:

Thank you to all the speakers and friends from the media. Today's press conference is now concluded. Goodbye.

Translated and edited by Zhu Bochen, Wang Qian, Gong Yingchun, Li Xiao, Zhou Jing, Yuan Fang, Qin Qi, Liu Sitong, Mi Xingang, Yang Xi, Xu Kailin, Wang Yanfang, Wang Ziteng, Ma Yujia, Xu Xiaoxuan, Wang Yiming, Liu Caiyi, 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. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT) 

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

Chairperson:

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

Date:

Oct. 20, 2023

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), and Ms. Tao Qing, MIIT spokesperson and director general of the Operation Monitoring and Coordination Bureau of the MIIT, to introduce the development of industry and information technology in the first three quarters of 2023 and answer your questions.

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

Zhao Zhiguo:

Ladies and gentlemen, friends from the press, good afternoon. Thank you for your long-term interest in and support for the industry and information technology sector. Now, I will brief you on the sector's development in the first three quarters.

Since the beginning of the year, the MIIT has adhered to the guiding principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and earnestly put into practice the decisions and deployments made at the Central Economic Work Conference. Adhering to the general principle of pursuing progress while ensuring stability, all regions and departments united and collaborated, working together toward the common goal of continuously advancing quality and promoting reasonable growth within the industrial economy. In the first three quarters, industrial and informational development remained stable, with ongoing optimization of the industrial structure. New momentum and advantages were continually gathered and strengthened, consistently releasing energy for innovative growth. Positive outcomes were achieved in high-quality development.

First, the industrial economy is on a positive recovery trajectory. By implementing a series of growth-stabilization policies issued by the State Council, we have steadily fortified the momentum of industrial economic recovery. Major economic indicators show the following characteristics: Stable growth in industrial production. In the first three quarters, the added value of China's industrial enterprises above designated size increased by 4% year on year, with the growth rate accelerating by 0.2 percentage points compared to the first half of the year. The proportion of manufacturing added value to GDP remained essentially stable, with manufacturing investment continuously growing, and the growth rate gradually accelerating since July. Corporate profits have been recovering at a faster pace, with industrial enterprises above designated size seeing a 17.2% year-on-year increase in profits in August, and both operating income and profits turning positive.

Second, the manufacturing industry has made solid strides toward high-quality development. We have actively encouraged the fast-paced development of advanced manufacturing. In the first three quarters, investment in high-tech manufacturing grew by 11.3% year on year, with the growth rate surpassing general manufacturing investment by 5.1 percentage points. We accelerated the development of new products, industries and business models, leading to rapid growth in sectors like new energy vehicles, photovoltaic products and aerospace equipment. The three major indicators of China's shipbuilding industry, namely shipbuilding output, new orders and holding orders, continued to lead the way globally. The digital transformation process has accelerated, leading to the expansion and elevation of smart factory construction, with nearly 10,000 digital workshops and smart factories being established. New scenarios, solutions and models for intelligent manufacturing have been developed. Significant achievements have been made in improving industrial quality and efficiency.

Third, the information and communication sector continued to grow steadily. We have consistently leveraged and consolidated our strengths in this sector, supporting high-quality economic and social development. In the first three quarters, telecommunications business revenue grew by 6.8% year on year, and total business volume increased by 16.5% year on year. Network infrastructure has been continuously strengthened, with a total of 3.189 million 5G base stations built as of the end of September, and gigabit broadband users reaching 145 million. Network service capabilities continued to improve, with total computing power reaching 197 EFLOPS, and mobile network IPv6 traffic accounting for 58.4%. Innovations and integrated applications have deepened significantly, with 5G applications integrated into 67 major economic categories. Nationwide, there are more than 7,000 "5G + Industrial Internet" projects, and the number of mobile IoT terminals has reached 2.22 billion. The level of benefits to the public has steadily improved, with 1,924 commonly used websites and apps, and over 140 million smartphones and smart TVs, being updated to make them senior-friendly.

Fourth, small and medium-sized enterprises (SMEs) achieved remarkable progress. We strengthened policy support by implementing measures to ensure the stable growth of micro, small, and medium enterprises, adjust their structure, and enhance their capacity. In the first three quarters, many key indicators for the economic operation of SMEs recovered and improved. We have strengthened service support. We carried out targeted programs for SMEs, and also named a specific month to provide intense services for them. Digital transformation was enhanced. We selected and announced the first 30 pilot cities pioneering the digital transformation of SMEs so as to deeply integrate the digital economy into the real economy. We put a focus on fostering excellent enterprises and now have a total of 103,000 SMEs that use special and sophisticated technologies to produce novel and unique products, 12,000 "little giant" SMEs, and 200 featured industrial clusters. These SMEs have contributed their part to shoring up weak links in the industrial and supply chains .

From an overall perspective, despite facing difficulties, such as insufficient demand, the fundamentals sustaining the long-term growth of China's industrial economy have remained solid. The successful convening of the national meeting on promoting new industrialization has injected strong impetus for the development of the industrial economy. Hence, we are confident of its further recovery and progress. Going forward, the MIIT will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 20th CPC National Congress, and act on the arrangements made at the national meeting on promoting new industrialization. We will stay confident in pursuing development, expand demand, strengthen the driving force, and hold the bottom line, making every effort to ensure the stable growth of industries so as to provide strong support for overall economic recovery. 

That's my introduction. Next, my colleagues and I would like to answer your questions.

Xing Huina:

The floor is now open for questions. Please identify the media outlet you represent before asking questions.

CCTV:

The CPC Central Committee and the State Council have attached great importance to the real economy, especially the development of the industrial economy. In the first three quarters, industrial production saw a steady recovery, and enterprises gained profits at a faster pace. How do you evaluate the development of the industrial economy over the first three quarters of this year? Thank you.

Zhao Zhiguo:

I will answer your question; thank you for asking. Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have upheld the general principle of pursuing progress while ensuring stability and taken concrete measures to implement the State Council's policies to ensure stable growth. We have concentrated on 10 major industries and collaborated with relevant departments to formulate and implement working plans on ensuring stable growth from 2023 to 2024. These industries included the steel and non-ferrous industries, which are of a large scale and are strong driving forces to growth. With the concerted efforts of all areas and all departments, industrial production has witnessed stable growth. In the first three quarters, the value-added of industries above designated size grew by 4% year on year, 0.2 percentage point faster than the growth rate in the first half of the year.

An overall stable performance was maintained in major industries, and the industrial structure has continued to be optimized. In the first three quarters, 27 of 41 major industrial categories retained a year-on-year growth in their added value. Among them, the equipment manufacturing industry saw faster growth. In the first three quarters, its value-added registered a rise of 6% year on year, 2 percentage points higher than the industrial growth in general. It contributed to an increase of 1.9 percentage points in growth for industries above designated size. In September, in particular, four sectors, including electrical machinery, chemical industry, electronics, and automobiles, contributed to nearly 60% of the industrial growth in general. Raw material manufacturing also accelerated its output. In the first three quarters, its added value rose by 6.5% year on year, 1.3 percentage points faster than the growth rate in the first half of the year. Of all raw material manufacturing sectors, chemical and non-ferrous industries enjoyed improvements in their needs and registered faster growth.

A higher growth rate was kept in the output of products related to new driving forces. In the first three quarters, the output of solar cells and charging stations rose by 63.2% and 34.2%, respectively. The output of electronics has also increased steadily, with a continuous rise in the output of smartphones since the beginning of the third quarter. According to statistics from the China Association of Automobile Manufacturers, in the first three quarters, the output and sales of new energy vehicles reached 6.313 million and 6.278 million, a year-on-year rise of 33.7% and 37.5%, respectively.

The industrial sector has shown a steady recovery in most of China's provinces and equivalent administrative units. In the first three quarters, industrial added value increased year on year in 28 out of the 31 provincial-level regions. Twenty provinces saw faster growth or a reduced decrease than in the H1. Growth rates rose in eight out of the top ten provinces that have notable industry output compared to those in the H1. Six provinces saw a higher growth rate than the national average, namely Jiangsu, Shandong, Sichuan, Hebei, Hubei, and Zhejiang.

Positive factors have been gradually cumulated. In the first three quarters, investment in the manufacturing sector continued to increase. Investment in high-tech manufacturing, in particular, grew 11.3% year on year, maintaining double-digit growth for 36 consecutive months. Meanwhile, the decrease in exports narrowed in the industrial sector. In September, the manufacturing purchasing managers' index (PMI) bounced back to the expansion zone. The producer price index (PPI) edged up on a monthly basis for two consecutive months. Enterprises made month-on-month progress. The decline in profits of industrial enterprises above designated size lessened for six consecutive months. The supply and demand of industrial products gradually improved. Industrial enterprise expectations and confidence strengthened. 

Next, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles from the 20th CPC National Congress. We will strive to accomplish tasks arranged at the national meeting on promoting new industrialization and pursue high-quality development throughout the whole process. Seizing the opportunities for economic recovery and industrial transformation, we will step up efforts to increase demand, strengthen growth drivers, and safeguard the bottom line so as to ensure stable growth in the industrial sector. Thank you.

The Poster News APP:

Could you please elaborate on the development of the new-energy vehicle (NEV) industry in the first three quarters of 2023? A newly released work plan for promoting stable growth of the automobile industry (2023-2024) set a target for annual sales. What measures will the MIIT take next to promote high-quality development in this sector? Thank you.

Tao Qing:

Thank you for your questions. In the first three quarters of 2023, China's NEV industry maintained a robust growth momentum, with joint efforts made by all relevant parties. First, the scale of the production and sales have further expanded. As Mr. Zhao just said, the production and sales of NEVs surged 33.7% and 37.5% in the first three quarters, respectively. The sales of new NEVs accounted for 29.8% of all new automobiles. Second, technology improved rapidly. The single-unit energy density of mass-produced power batteries reached 300 Wh/kg. The average battery range of pure electric passenger cars exceeded 460 kilometers. L2 and above self-driving vehicles accounted for more than 40% of total passenger cars. Third, brand competitiveness surged. In the first three quarters, new energy passenger cars of domestic brands accounted for 80.2% of such cars sold in the domestic market. China's NEV exports reached 825,000 units, up 110% year on year. Fourth, the supporting environment continuously improved. A total of 6.278 million charging piles and 3,460 battery swapping stations were built. More than 10,000 power battery recycling service outlets were set up. Over 20,000 kilometers of roads were designated for testing intelligent connected vehicles (ICVs), and the total test mileage exceeded 70 million kilometers.

Next, we will fully implement the decisions and plans of the CPC Central Committee and the State Council, as well as a 2021-2035 plan for the development of the NEV industry. Meanwhile, we will improve work measures and strengthen interdepartmental coordination so as to promote the high-quality development of the NEV industry.

First, we will improve mechanisms and strengthen coordination. We will act upon the spirit of this year's State Council executive meeting, leverage the role of the inter-ministerial coordination mechanism for the new energy vehicle industry's development, and coordinate the advancement of technological breakthroughs, widespread adoption, and infrastructure construction. We will accelerate the development of electrification, connectivity, and intelligence.

Second, we will continue to expand the domestic market. We will expedite formulating and adjusting technical requirements for tax exemptions and reductions when purchasing new energy vehicles. Initiatives will include launching pilot projects in public areas for comprehensive vehicle electrification and starting pilot programs for the access and on-road testing of intelligent connected vehicles. Additionally, we will aggressively promote the use of new energy vehicles in rural areas, solidifying the foundation of our domestic market.

Third, we will strengthen the development of supporting infrastructure and foster environmental support. We will put into practice the guiding opinions issued by the General Office of the State Council on building a high-quality charging infrastructure system, ensuring it aligns with the charging requirements of new energy vehicles. City-level demonstrations will be undertaken for "vehicle-road-cloud integration." Moreover, we will cultivate a robust system for the recycling and utilization of power batteries, amplifying our ability to safeguard vital resources.

Fourth, we will establish a comprehensive assurance system. We will expedite the formulation and revision of standards for electric vehicle and power battery safety, autonomous driving, operating systems, and other areas. We will reinforce production access management and oversee both in-process and post-process stages, guaranteeing the fundamental safety of new energy vehicles. This will inspire confidence in consumers to purchase and utilize them. Thank you.

Cover News：

Since the beginning of this year, the information and communication sector has maintained a steady and rapid growth momentum, and its empowering effect has steadily emerged. Could you please introduce the specific achievements that have been made? Additionally, I would like to know the key arrangements for accelerating the development of the information industry in the future. Thank you.

Zhao Zhiguo:

I will answer this question. Thank you for your question. This year, the Ministry of Industry and Information Technology has continued to implement strategies aimed at building up China's strength in manufacturing, cyberspace, and the digital field. We have consistently pushed to empower economic and social development through information and communication technologies, achieving positive results. I have highlighted the growth of the information and communication sector earlier in my introduction, and I will now delve into the empowering role of the sector from three perspectives.

First, the industry has driven the transformation and upgrade of the real economy by improving quality and enhancing efficiency. As a sign of accelerated application breakthroughs, new-generation information technologies, represented by the industrial internet, have been integrated into 45 major sectors of the national economy. This integration has propelled the digital, internet-powered, and intelligent upgrading of the real economy. The number of industrial internet platforms that span across industries and domains has reached 50. These are commonly referred to as "dual-cross" platforms and connect nearly 90 million sets of equipment. The widespread use of digital technologies has profoundly altered the production methods and forms of traditional industries, effectively promoting comprehensive data circulation and flow. According to a survey, 85% of surveyed enterprises have witnessed a significant boost in production efficiency, demonstrated by a 20% reduction in production line time.

Second, the industry has facilitated the building of a digital society, characterized by universal and convenient services. Technologies such as 5G, artificial intelligence, and the Internet of Things have been deeply integrated into education, healthcare, and other fields, leading to a significant improvement in the digitization of public services. We have launched 109 pilot projects for "5G + smart education," consistently introducing digital application scenarios, including smart classrooms, smart teaching and research, and distance education. Supply of remote diagnosis, online consultations, and smart medical devices has been continuously enriched, enabling the widespread access to efficient and convenient smart healthcare services. The construction of digital rural areas has been accelerated, with the internet penetration rate in rural regions surpassing 60%. Consequently, the gap in internet penetration between urban and rural areas has been steadily decreasing.

Third, the industry has enhanced people's sense of happiness and fulfillment by delivering innovative applications. Digital technologies, such as ultra-high-definition video, digital rendering, and holographic interaction, have swiftly proliferated and found widespread applications in fields such as sports broadcasting, culture, and tourism, delivering premium and novel experiences to the public. The recently concluded 19th Asian Games in Hangzhou showcased innovative applications such as 8K ultra-high-definition video live streaming, VR spectating, transparent mega screens, ground projections, massive video interactions both inside and outside the venue, and 360-degree replays. These features provided an immersive and multi-perspective visual spectacle for audiences worldwide.

Going forward, we will continue to implement the decisions and plans of the CPC Central Committee and the State Council, coordinate development and security, strengthen strategic planning, and improve approaches and measures to inject new driving forces into high-quality economic and social development. First, we will accelerate the development of internet infrastructure. We will coordinate the development of "dual-gigabit" internet, which features a 5G network and a gigabit optical network. We will expand the deployment of 5G, the gigabit optical network, the mobile internet of things and Internet Protocol version 6 (IPv6), amid efforts to accelerate the building of "dual-gigabit" cities. We will launch signal upgrade initiatives to improve 5G network coverage and service quality in key industries and major application scenarios. Second, we will accelerate the industry's innovative development. We will prioritize applications and the complete equipment manufacturing to seek breakthroughs in core communication chips and key RF devices, and accelerate the lightweight 5G technology evolution, product development, and industrialization abilities to strengthen the support of industries. Third, we will step up efforts to unleash the empowerment effects of applications. We will promote the close synergy between the industrial internet and key industrial chains and promote the transformation of the industrial internet from useful to effective usages to empower the upgrading of the real economy. We will also promote applications of the "dual-gigabit" network in information consumption and areas that are important to people's lives to ensure that the fruits of information technology development can benefit all people fairly. Fourth, we will continue to improve the environment for our industrial development. We will deepen the reform of the market access system, promote applications of electronic licenses and certificates for telecommunications business operations, improve the multi-level legal systems for market supervision, expand the opening up of the telecommunications market in an orderly manner, and strive to create a market-oriented, law-based and internationalized business environment. Thank you.

People's Posts and Telecommunications News:

2023 is the last year of the three-year (2021-2023) action plan for promoting 5G applications. What has been achieved in China's 5G development? What are the priorities for the next step?

Zhao Zhiguo:

Thank you for your questions. Representing a new generation of information and communication technology, 5G has become an important driving force for high-quality economic and social development. The MIIT has conscientiously implemented the decisions and plans of the CPC Central Committee and the State Council, continued to promote the in-depth integration of 5G into all fields of economic and social development, and achieved positive results in the innovative development of 5G applications. 

First, the development environment has continuously improved. We have fully implemented the three-year action plan, organized all parties of the industry to speed up the network construction, expand integrated applications, and promote application innovation and innovative development of mobile communications. According to incomplete statistics, over 900 related policies and measures have been rolled out across the country, forming strong synergies featuring multi-departmental cooperation, coordination between central and local governments, and industrial collaboration. 

Second, the digital foundation has been continuously strengthened. By the end of September, China had built 3.189 million 5G base stations, covering all prefecture-level cities and county seats, and there were 22.6 5G stations per 10,000 Chinese people. Over 90% of 5G base stations have been jointly built and shared, and progress has been made in promoting the intensive, efficient, green, and low-carbon development of 5G networks. The number of virtual private networks in the 5G industry has exceeded 20,000, providing stable, reliable, and secure network facilities for the industry.

Third, the empowerment effect has been increasingly prominent. 5G applications have covered the 67 major categories of the national economy, with the number of application cases exceeding 94,000. Applications of 5G in vertical industries, such as industry, mining, the power sector, and ports, have been widely replicated, helping enterprises improve quality, reduce costs, and increase efficiency. New applications based on 5G, such as Ultra HD videos and AR/VR, have further integrated into production and people's lives to improve user experience. 

Fourth, innovation capability has continuously improved. We have actively promoted the formulation of 5G international standards. By the end of September this year, China's 5G standard essential patent (SEP) declarations accounted for 42% of the world's total, providing its solutions to promoting global 5G development. We issued a notice on promoting the evolution of 5G lightweight (RedCap) technology and application innovation and development and have jointly promoted the innovative development of lightweight 5G base stations, chips, and terminal industries. We have given full play to the advantages of wide coverage and strong penetration of low-frequency bands, refarming 800MHz and 900MHz bands for 5G public mobile communication systems to better utilize spectrum resources.

The next step will be to focus on three aspects, including construction, application, and research, using 5G to empower the real economy and providing strong support for high-quality economic development. First, we will further develop the networks. The development of the 5G networks will be steadily stepped up, enhancing supply capacities for 5G and raising service standards. Second, we will accelerate and promote its application. We will enhance 5G integrated applications, promote individual and industrial applications simultaneously, push forward the development of the 5G+industrial internet driven by innovation and facilitate 5G application on a large scale. Third, we will deepen technological research. We will strengthen 5G industrial support and systematically push forward the R&D and industrialization of 5G chips, modules, terminals, and other key devices, supporting the industrial evolution and upgrades. We will target the key point of 6G technological R&D, strive to make key technological breakthroughs, and enhance technological reserves, laying a solid foundation for its standard establishment and industrial development. Thanks. 

Nanfang Metropolis Daily:

Now a new generation of AI technology is growing rapidly across the world and playing a vital role in more and more fields. My question is, how will the MIIT boost the innovative development of the new generation of AI industry and better empower the real economy? 

Tao Qing:

Thank you for your question. The development of AI, represented by large language models, features rapid technological innovation, strong application potential and fierce international competition. The deep integration of AI and the manufacturing sector is accelerating, which has deeply changed the production mode and economic form of the manufacturing sector. That shows a strong empowering effect of AI. 

The MIIT has fully implemented the policy decisions and plans of the CPC Central Committee and the State Council, focuses on the integration of AI and the real economy, accelerates the cultivation and development of the AI industry, and facilitates the advancement of new industrialization. With the joint efforts of various departments and people from all walks of life, the core industry of AI in China has been growing in scale, with the number of related enterprises exceeding 4,400. Innovations related to smart chips, development frameworks, and general large-scale models are emerging. The synergetic development of cloud computing, intelligent computing, and supercomputing is supporting China's computing power to ensure it remains the second strongest globally. Mega projects such as “East Data, West Computing” which will channel more computing resources from the eastern areas to the less developed western regions, have been accelerated. The deep integration of AI and the manufacturing sector has effectively promoted the digital, intelligent, and green transformation of the real economy, with nearly 10,000 digital workshops and smart factories being built.

The next step will be to target key fields and strive to digitalize manufacturing and innovate the AI application. The efforts will be made in the following four aspects. First, we will lay a solid technological foundation for AI development. Major science and technology innovation programs will be launched to boost basic research and original innovation to achieve technological breakthroughs in large-scale model algorithms and frameworks, strengthen the computing power of smart chips, unlock data values, and enhance the R&D of "root" technologies. Second, we will promote the intelligent upgrade of key industries. We will promote the entire process of manufacturing to be intelligent, and the integrated application of AI technology in the whole process, largely raising the intelligent level of R&D, pilot-scale experiment, production, services, management, and other links. We will promote the AI pilot demonstration projects, expand special application scenarios, accelerate upgrading the manufacturing sector with digital and smart technologies, form real productivity, and improve quality and effectiveness of development of the manufacturing sector. Third, we will promote the development of intelligent products and equipment. We will leverage large-scale models featured with strong cognitive ability, strong interaction, and strong generative power to promote the upgrading and iteration of high-end equipment, key software and smart terminals, and improve the intelligent level of key products and equipment. Fourth, we will enhance the construction of the supporting service system. We will accelerate the cultivation of leading enterprises and innovative SMEs that use special and sophisticated technologies to produce novel and unique products, and establish innovation consortia. We will deepen international exchanges and cooperation in technological R&D, standard setting, ethical governance, and talent cultivation and make synergetic efforts to build a sound industrial ecosystem of artificial intelligence. Thanks.  

Hong Kong Bauhinia Magazine:

There has been significant social attention paid to the state of information and communication services. May I ask, how is the progress in this field at present? What are the considerations for the next steps? Thank you.

Zhao Zhiguo:

Thank you for your questions. Information and communication services are closely related to the immediate interests of the general public and can be felt directly. The MIIT upholds a people-centered approach for development and implements practical measures to improve people's livelihoods. In the first three quarters of this year, we focused on optimizing and enhancing service provision, user experience, and responsiveness, and enriched service applications. The number of available apps reached 2.61 million, accompanied by 7 million mini-programs. The mobile internet sector continues to expand service areas and scenarios. A total of 1,924 websites and apps commonly used by the elderly, along with over 140 million smartphones and smart TVs, have undergone elderly-friendly transformations and upgrades, ensuring that elderly and disabled individuals can fully enjoy the benefits of a digital life. User experience has been enhanced by promoting online and remote handling of telecommunication services and enhancing mobile internet application services. Key internet applications improved user experience throughout the whole process of service and continued to standardize services. In addition, the responsiveness to user demands has become more efficient, with widespread utilization of video customer services by enterprises offering basic telecommunications services, enabling smoother user interaction. Furthermore, mechanisms related to the internet information service complaint platform have been improved to facilitate timely responses to user demands.

Next, we will focus on the following areas of work.

First is to optimize services to enhance user experience. We will deepen efforts to enhance mobile internet application services, promote and publicize exemplary cases, and improve user experience through enhanced services. We will provide more convenience for domestic and international users through high-quality and globally-oriented digital services. We will develop and implement action plans related to the elderly-friendly adaptation of digital technologies, promoting 5G, artificial intelligence, big data, and other information technologies to fully expand accessibility of information services and ensure equal and full participation of elderly individuals and other groups with special needs in digital life.

Second is to intensify comprehensive regulation to safeguard the legitimate rights and interests of the people. We will continue to regulate services such as software installation and uninstallation, operation and interaction, service renewal, and complaint handling, addressing prominent issues that have received strong public feedback. We will promote coordination and collaboration among the mobile internet application industry's upstream and downstream sectors, including application stores, SDK, and mobile terminals, to enhance overall service quality and standards. We will persistently combat spam messages, implement the "card cutting campaign," strengthen the 12381 warning system, and offer one-stop registration query services, effectively safeguarding people's property security and legitimate rights and interests.

Third is to establish a sound long-term mechanism to create a healthy service environment. We will improve policies, measures, and standards and norms, research and develop compliance guidelines for telecommunications and internet services, and release a series of compliance standards for app development and operation. These efforts will provide clearer guidance for enterprises to conduct their business activities. We will fully leverage the foundational role of credit supervision, improve the credit scoring mechanism in the information and communication industry, and promote enterprises to operate in accordance with the law and with integrity. We will provide guidance to relevant industry stakeholders in areas such as technical support, testing and certification, and compliance and audits, fostering a pattern of society-wide co-governance. Thank you.

Phoenix TV:

The new materials industry is an important strategic emerging industry in our country, with significant implications for promoting technological innovation and manufacturing industry optimization and upgrades. Could you please provide an overview of the current development of the new materials industry? And what do you plan to do next? 

Tao Qing:

Thank you for your questions. New materials represent a strategic, foundational, and leading industry that is integral to the comprehensive establishment of a modernized economy. The CPC Central Committee places significant emphasis on the innovative development of new materials.

China's new material industry has grown and developed rapidly in recent years. First, the scale of the sector continues to expand. According to relevant statistics, the total output value of the new material industry from January to September this year exceeded 5 trillion yuan, maintaining double-digit growth. Second, the innovation capabilities of the industry continue to improve. Seven national manufacturing innovation centers in new materials and 35 key platforms for new materials in three categories have been established, forming a relatively complete innovation support system. A number of major key materials have made breakthroughs, and cutting-edge technologies, such as high-temperature superconducting materials and perovskite solar cell materials, have emerged. Third, the strength of enterprises has gradually increased. There are more than 20,000 new material companies above the designated size, including 1,972 specialized and sophisticated "little giant" companies and 248 manufacturing enterprises that are champions in their individual categories, accounting for 22% and 25% of its kind, respectively. Several leading companies in key fields have been cultivated. The collaborative development environment for enterprises of all sizes is taking shape. In the field of new materials, seven national advanced manufacturing clusters have been fostered, serving as an "accelerator" for regional economic growth.

Next, the MIIT will carefully study the principles from General Secretary Xi Jinping's important instructions, implement the deployment of a national meeting on pushing forward new industrialization, and focus on addressing weak links, enhancing strengths, exploring frontiers, and optimizing the ecosystem. We will continue to make efforts to promote the innovation and development of the new material industry, building it into a new growth engine. First, we need to accelerate breakthroughs in key areas. Focusing on deficiencies in people's livelihoods and the significant requirements of establishing China as a manufacturing leader, we will support collaborative innovation and breakthroughs in industrialization through partnerships between industry, academia, research, and application. Our goal is to enhance the resilience and security of our industrial and supply chains. Second, we will focus on developing areas of advantage. Targeting cutting-edge materials with a foundation for industrialization and key materials with a strong basis for innovation, we will support scenario exploration, promotion, and application, adopting a materials-centered approach. Third, we aim to optimize and bolster the innovation ecosystem. By improving the framework of the new material standard system, guiding various forms of nongovernmental capital to invest more in the sector, and stimulating the energy of different market entities, we hope to cultivate a favorable environment for the new material industry. Thank you.

Yicai:

I would like to ask the MIIT: How has the development of China's software industry progressed this year? What plans does the MIIT have to promote high-quality development in the software industry? Thank you.

Tao Qing:

Thank you for your questions. Software is the very soul of next-generation information technology. It serves as an important foundation for the development of the digital economy and is a key pillar in strengthening China's capacities in manufacturing, cyberspace, and digital development. The software industry, as a whole, showcases stable growth, controllable risks, enhanced efficiency, and increased vitality. Its comprehensive strength has reached a new level.

In the first three quarters of this year, China's software and information technology service industry demonstrated steady performance, with software business revenue maintaining rapid growth. From January to August, the software sector's business revenue surpassed 7.5 trillion yuan, marking a year-on-year increase of 13.5%. This growth has been sustained in double digits for 10 consecutive months. The influence of industrial clusters is evident as software business revenue from China's renowned software cities contributes to approximately 80% of national software business revenue. Acceleration in key software innovation is evident, software application promotion continues to deepen, and the nurturing of emerging business models has yielded positive outcomes.

Going forward, we will thoroughly implement the guiding principles of the 20th CPC National Congress. We'll steadily advance the implementation of the national software development strategy. By adhering to the industrial development principles of application-led growth, innovative drive, and ecological cultivation, we aim to accelerate the software industry's high-quality development. We are committed to achieving the following tasks:

First, we will enhance the top-level design. We will implementing policies to promote the high-quality development of the integrated circuit industry and software industry in the new era and accelerate the implementation of relevant measures represented by the 14th Five-Year Plan for the Development of Software and Information Technology Service Industries, and intensify efforts in its follow-up work and relevant evaluations. 

Second, we will accelerate the application of software. We will adhere to an application-driven approach, promote institutional innovations, focus on the needs of typical application scenarios, and enhance the alignment of software supply and demand, so as to create a virtuous cycle featuring supply-demand synergy and iterative self-consistency.

Third, we will step up efforts to achieve technological breakthroughs. We will uphold innovation-driven concepts, concentrate our strengths, innovate models, and work on making technological breakthroughs in core technologies of key software. This will involve shoring up weak links, cultivating advantages, and improving the technological supply competence of key industries.

Fourth, we will build open-source systems. We will reinforce the top-level design of open-source development. We will accelerate the construction of open-source foundations and rally a wide array of open-source forces. This effort aims to promote the development of platforms, communities, and agreements in open source, cultivate a batch of quality open-source projects, explore the commercial use of open-source products, and create a sound open-source cultural atmosphere. 

Fifth, we will optimize the industrial environment. We will build a cluster of high-quality software cities and parks across China and promote the development and upgrading of the software industry. We will also build a batch of specialized demonstrative software colleges at a high level to cultivate talents urgently needed in key software fields, strengthen the leading role of standards, improve the value of software, and enhance the protection of software intellectual property rights. Thank you.

21st Century Business Herald:

As the digital economy has achieved robust development, especially with the emergence of large scale models, computing power, as a fundamental cornerstone, has received wide attention from all walks of life as a basic support. I would like to ask, how is the development of the computing power industry of China? Recently, the MIIT has jointly launched the Action Plan for High-quality Development of Computing Power Infrastructure with multiple departments. I would like to ask, what concrete measures will be taken to ensure the implementation of the plan? Thank you.

Zhao Zhiguo:

Thank you for your questions. Recently, the action plan jointly issued by the MIIT and relevant departments has received wide attention. The MIIT has actively organized relevant parties to ensure the effective implementation of the plan. As a new type of key productive force, computing power has become a key driver affecting the development of the national digital economy. The ministry has thoroughly implemented the decisions and deployments made by the CPC Central Committee and the State Council, expedited the infrastructure construction of computing power, facilitated the transition and upgrading of industries, built a modernized infrastructure system, and achieved positive results. 

First, we have strengthened our top-level design. We introduced an action plan to promote the high-quality development of computing power infrastructure. In light of the latest situation of computing power development, we have created a rational layout of national computing infrastructure, featuring the orientation of improving resource utilization, promoted the optimization of computing structure with intelligent computing power as the focus, facilitated the coordinated development of computing, network, storage and application with integrated development as the main line, and strengthened the collaboration between departments and industries to encourage major fields such as industry, finance, medical care, education, and energy to create a number of new computing business, new models, and new forms of business.

Second, we have consistently enhanced the capability of basic infrastructure of computing power. The data centers across China now house over 7.6 million standard racks, with a total computing power capacity of 197 EFLOPS. The computing power structure has been continuously optimized, and the scale of intelligent computing power has increased by 45% year on year. We have also accelerated the construction of the national computing hub, adding about 130 new trunk optical cables to enhance the layout of data center clusters. In addition, high-speed, long-distance transmission technology has effectively improved the quality of cross-regional data transmission. The artificial intelligence reasoning and training chips have accelerated the iterative optimization process, greatly improving their performance. 

Third, we have further enhanced the role of computing power in empowering various sectors. The application of computing services has expanded from the internet field to equipment manufacturing, transportation, and other industries, gradually forming a dual-wheel drive in ToC and ToB markets. The featured application of computing power has achieved initial results. Real-time computing services such as intelligent driving, financial technology, and virtual reality are now widely used, and some regions have developed a number of computing applications with local characteristics centering around cloud services, animation rendering, and so on.

Next, focusing on 25 tasks from six aspects according to the action plan, we will carry out our work on advancing the development of computing power in the following three aspects. Firstly, we will work to ensure the implementation of the action plan, strengthen monitoring of indicators such as utilization rate of data centers, guide the construction of computing power infrastructure in an orderly manner, and build a gradient architecture for computing power infrastructure systems. With the support of relevant infrastructures, such as national new-type internet exchange centers and internet backbone access points, we will promote connectivity of computing power among multiple parties. Secondly, we will organize an open competition mechanism to select the best candidates to lead research on computing power infrastructure, speed up our efforts to make breakthroughs in signature technology products and plans, and accelerate the application of new technologies and products. We will work with all parties to actively advance the development of an AI computing architecture and software ecosystem. Thirdly, in response to market demand, led by application scenarios, and taking the application innovation contest as a driving force, we will advance the integrated development of computing power and traditional industries, enhance the implementation of computing power applications with novel models and distinct features, and give full play to the role of computing power in driving the growth of the digital economy. Thank you.

Xing Huina:

The last question, please.

China Electronics News:

The electronic information manufacturing industry plays a crucial role in supporting the recovery and development of the industrial economy. How is the performance of the electronic information manufacturing industry at present? Next, what specific measures will be adopted by the MIIT to advance the high-quality development of the industrial sector? Thank you.

Tao Qing:

Thank you for your questions. As you have mentioned, the electronic information manufacturing industry plays a significant role in supporting the recovery and development of the industrial economy, which has attracted wide attention from the public. Since the beginning of this year, the development of China's electronic information manufacturing industry has maintained resilience, and its performance has steadily recovered. To be specific, there are the following four characteristics. Firstly, production has rebounded and steadily grown. From January to September, the added value of computer, communication, and other electronic equipment manufacturing industries above the designated size rose by 1.4% year on year, up 1.4 percentage points from the first half of this year. Secondly, the output of products has been generally stable. From January to September, the output of mobile phones in China reached 1.09 billion, up 0.8% year on year, with a year-on-year increase of 11.8% in September. The output of solar cells stood at 384 gigawatts, up 63.2% year on year. Thirdly, fixed-asset investment has remained at a high level. From January to September, fixed-asset investment in the industry increased by 10.2% year on year, 7.1 percentage points higher than the growth rate of national fixed-asset investment and up 0.8 percentage point from the first half of this year. Fourth, there has been a trend-bucking surge of growth in the export of some products. Since the beginning of this year, the export of televisions has been on the rise, with a year-on-year increase of 15.1% in export value from January to September. Based on the sustained rapid growth over the past few years, lithium-ion batteries and solar cells this year still maintained growth momentum, with an increase of 48% and 5.1%, respectively, in export value from January to September.

Next, the MIIT will fully implement the decisions and plans of the CPC Central Committee and the State Council, staying true to the general principle of pursuing progress while ensuring stability, consolidating the foundation for industrial development, and moving faster to foster new growth drivers to promote the high-quality development of the electronic information manufacturing sector.

Firstly, the MIIT will work to accelerate the recovery of the consumer market. The implementation of relevant policies and initiatives, such as the work plan to promote the steady growth of the electronic information manufacturing industry from 2023 to 2024, will be sped up. The MIIT will make use of innovation in technologies and product modalities to boost traditional electronics consumption, including mobile phones, computers, and televisions, and enhance publicity, promotion, guidance, and regulation for smart sports and smart health and elderly care. The MIIT will work to stabilize consumer market expectations and take active steps to foster new growth drivers for the industry.

Secondly, the MIIT will further give play to the role of investment in driving growth. The MIIT will move faster to carry out major projects, provide guidance for the rational layout of the industry, and advance the launch of the construction of projects in key areas, such as integrated circuits, new-type displays, communication equipment, smart hardware, and lithium-ion batteries, in an orderly manner.

Thirdly, the MIIT will foster new drivers of growth for industrial development at a faster pace. The MIIT will adhere to innovation-driven development and advance integration and synergy of innovation, industrial, capital, and talent chains. We will work on developing a new round of follow-up policies to support the development of the audiovisual industry, fully implement policies in the area of BDS application and smart photovoltaics, and move faster to encourage industries with weak links to make up deficiencies, as well as further develop industries with strong advantages, upgrade traditional industries, and build industrial chains in emerging industries.

Fourthly, the MIIT will keep enhancing openness and cooperation. The MIIT will expand diversified development spaces, open up wider, uphold win-win cooperation, actively participate in the multilateral and bilateral meetings in the area of electronic information, continue to improve the business environment for foreign investors, and create a market environment that ensures the free flow of resources and production factors and fair and well-ordered competition. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thanks to the speakers and friends from the media. See you!

Translated and edited by Wang Yiming, Wang Qian, Zhou Jing, Yang Xi, Li Xiao, Liu Caiyi, Yuan Fang, Zhang Junmian, Wang Yanfang, Huang Shan, Wang Ziteng, Liu Sitong, Yan Bin, Qin Qi, Li Huiru, Xu Kailin, Zhou Jing, 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

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:

Oct. 18, 2023

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have our routine release of economic data, and we are very pleased to invite Mr. Sheng Laiyun, deputy commissioner of the National Bureau of Statistics (NBS), to brief you on the national economic performance of the first three quarters of 2023, and to take your questions. 

Now, let's 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 here again. As usual, first, I'll brief you on the national economic performance of the first three quarters of 2023, and then I'll answer your questions. 

In the first three quarters, the national economy maintained an encouraging momentum of rebound and secured steady, high-quality development. In this period, faced with grave and complex international environment and challenging tasks in promoting reform, development and stability at home, 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 pursuing progress while ensuring stability, and fully applied the new development philosophy on all fronts. All regions and departments accelerated efforts to foster a new development pattern, took solid steps to promote high-quality development, implemented macroeconomic policy regulation in a precise and robust way, and made efforts to expand domestic demand, boost confidence, and fend off risks. As a result, the national economy sustained the momentum of recovery and improvement with positive factors amassing, as production and supply increased steadily, market demands continued to expand, employment and prices generally improved, and quality of development enhanced steadily.

According to the preliminary estimates, the gross domestic product (GDP) in the first three quarters reached 91,302.7 billion yuan, a year-on-year increase of 5.2% at constant price. By industry, the value added of the primary industry was 5,637.4 billion yuan, up by 4.0% year on year; that of the secondary industry was 35,365.9 billion yuan, up by 4.4%; and that of the tertiary industry was 50,299.3 billion yuan, up by 6.0%. By quarter, the GDP for the first quarter increased by 4.5% year on year, for the second quarter 6.3%, and for the third quarter 4.9%. The quarter-on-quarter GDP for the third quarter increased by 1.3%.

1. Agricultural production was generally good and production of animal husbandry grew steadily.

In the first three quarters, the value added of agriculture (crop farming) went up by 3.6% year on year. The total output of summer grain totaled 146.13 million tons, 0.9% lower than that of last year, ranking the second highest in history; that for early rice was 28.34 million tons, up by 0.8%. The autumn grain generally grew well with the sown area being stable with an increase, and another bumper harvest is expected for the year. In the first three quarters, the output of pork, beef, mutton and poultry was 69.74 million tons, up by 3.9% year on year. Specifically, the output of pork, beef, mutton and poultry was up by 3.6%, 5.0%, 5.2% and 4.0%, respectively; that of milk went up by 7.2% and eggs up by 2.1%. At the end of the third quarter, the number of pigs registered in stock was 442.29 million, down by 0.4% year on year. For the first three quarters, 537.23 million pigs were slaughtered, up by 3.3%.

2. Industrial production saw accelerated recovery and equipment manufacturing grew fast.

In the first three quarters, the total value added of industrial enterprises above the designated size grew by 4.0% year on year, 0.2 percentage points higher than that of the first half year. In terms of sectors, the value added of mining increased by 1.7% year on year, manufacturing went up by 4.4% and the production and supply of electricity, thermal power, gas and water grew by 3.5%. The value added of equipment manufacturing went up by 6.0%, 2.0 percentage points faster than that of the whole industrial enterprises above the designated size. An analysis by types of ownership showed that the value added of state holding enterprises was up by 4.6% year on year; that of share-holding enterprises was up by 4.8%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 0.5%; and that of private enterprises was up by 2.3%. In term of products, the output of solar cells, charging piles and new-energy vehicles went up by 63.2%, 34.2% and 26.7%, respectively. In September, the total value added of industrial enterprises above the designated size increased by 4.5% year on year, the same as that of last month, 0.8 percentage points faster than that of July; or a month-on-month growth of 0.36%. In the first eight months, the total profits made by industrial enterprises above the designated size went down by 11.7% year on year, a decline narrowed by 5.1 percentage points compared with that in the first half year. Specifically, that for August went up by 17.2% year on year. In September, the Manufacturing Purchasing Managers' Index stood at 50.2%, 0.5 percentage points higher than that of last month and the Production and Operation Expectation Index was 55.5%.

3. Service sector maintained fast recovery and contact-and-gathering-based services and modern service industries played a stronger driving role.

In the first three quarters, the value added of services went up by 6.0% year on year. Specifically, the value added of accommodation and catering, information transmission, software and information technology services, leasing and business services, transport, storage and postal services and financial intermediation grew by 14.4%, 12.1%, 9.5%, 7.5% and 7.0%, respectively. In September, the Index of Services Production increased by 6.9% year on year, 0.1 percentage points higher than that of last month, and the growth rate kept picking up for two months in a row. Specifically, the Index of Services Production of accommodation and catering, information transmission, software and information technology services and transport, storage and postal services went up by 17.7%, 11.3% and 9.3%, respectively. In the first eight months, the business revenue of service enterprises above the designated size grew by 7.2% year on year. In September, the Business Activity Index for Services stood at 50. 9%, 0.4 percentage points higher than last month; and the Business Activity Expectation Index was 58.1%. Specifically, the Business Activity Index for water transportation, postal services, telecommunication, broadcast, television and satellite transmission services, Internet, software and information technology services and monetary and financial services stayed within the high expansion range of 55.0% and above.

4. Market sales was getting active and consumption of services grew fast.

In the first three quarters, the total retail sales of consumer goods reached 34,210.7 billion yuan, up by 6.8% year on year. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 29,641.0 billion yuan, up by 6.7% year on year, and that in rural areas reached 4,569.7 billion yuan, up by 7.4%. Grouped by consumption patterns, the retail sales of goods were 30,500.2 billion yuan, up by 5.5%; the income of catering was 3,710.5 billion yuan, up by 18.7%. The sales of goods for basic living saw steady growth, with the retail sales of clothes, shoes, hats and textiles and of grain, oil and food by business above the designated size up by 10.6% and 5.3%, respectively. The sales of upgraded goods went up rapidly. The retail sales of gold, silver and jewelry, sports and recreational articles, and cosmetics by business above the designated size were up by 12.2%, 8.3% and 6.8%, respectively. The online retail sales reached 10,819.8 billion yuan, up by 11.6% year on year. Specifically, the online retail sales of physical goods were 9,043.5 billion yuan, up by 8.9%, accounting for 26.4% of the total retail sales of consumer goods. In September, the total retail sales of consumer goods went up by 5.5% year on year, 0.9 percentage points higher than that of last month, and the growth rate kept increasing for two months in a row; or up by 0.02% month on month. In the first three quarters, the retail sales of services went up by 18.9% year on year.

5. Investment in fixed assets continued to scale up and investment in high-tech industries sustained fast growth.

In the first three quarters, the investment in fixed assets (excluding rural households) reached 37,503.5 billion yuan, up by 3.1% year on year, or 6.0% year on year after deducting price factors. Specifically, the investment in infrastructure was up by 6.2% year on year; that in manufacturing up by 6.2%, and that in real estate development down by 9.1%. The floor space of commercial buildings sold was 848.06 million square meters, down by 7.5% year on year; the total sales of commercial buildings were 8,907.0 billion yuan, down by 4.6%. By industry, the investment in the primary industry went down by 1.0% year on year, that in the secondary industry up by 9.0%, and that in the tertiary industry up by 0.7%. The private investment was down by 0.6%, or up by 9.1% year on year after deducting the investment in real estate development. The investment in high-tech industries grew by 11.4% year on year. Specifically, the investment in high-tech manufacturing and high-tech services grew by 11.3% and 11.8%, respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicle and equipment and in manufacturing of medical equipment, measuring instruments and meters grew by 20.7% and 17.0%, respectively. In terms of high-tech services, the investment in services for transformation of scientific and technological achievements and in professional technical services went up by 38.8% and 29.6%, respectively. In September, the investment in fixed assets (excluding rural households) went up by 0.15% month on month.

6. Imports and exports of goods was generally stable and trade structure continued to optimize.

In the first three quarters, the total value of imports and exports of goods was 30,802.1 billion yuan, down by 0.2% year on year. Specifically, the total value of exports was 17,602.5 billion yuan, up by 0.6%; the total value of imports was 13,199.6 billion yuan, down by 1.2%. The trade balance was 4,402.9 billion yuan in surplus. The imports and exports by private enterprises grew by 6.1%, accounting for 53.1% of the total value of imports and exports. The imports and exports with the Belt and Road partner countries grew by 3.1%, accounting for 46.5% of the total value of imports and exports. The exports of mechanical and electrical products grew by 3.3%, accounting for 58.3% of the total value of exports, 1.5 percentage points higher than that of the same period last year. In September, the total value of imports and exports was 3,742.5 billion yuan, a decline of 0.7% year on year, with the month-on-month growth increasing for two months on end. Among that, the total value of exports was 2,150.6 billion yuan, down by 0.6% year on year; the total value of imports was 1,591.9 billion yuan, down by 0.8%.

7. Consumer price increased mildly and decline of producer prices for industrial products continued to narrow.

In the first three quarters, the consumer price index (CPI) grew by 0.4% year on year. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 1.1%; clothing up by 0.9%; housing down by 0.1%; articles and services for daily use up by 0.2%; transportation and communication down by 2.4%; education, culture and recreation up by 1.9%; medical services and health care up by 1.1%; and other articles and services up by 3.2%. In terms of food, tobacco and alcohol prices, prices for pork went down by 6.8%, fresh vegetables down by 3.1%, grain went up by 1.2%, and fresh fruits up by 6.0%. The core CPI excluding the prices of food and energy grew by 0.7% year on year. In September, the CPI maintained the same level year on year, or up by 0.2% month on month.

In the first three quarters, the producer prices for industrial products went down by 3.1% year on year. Specifically, the prices in September went down by 2.5% year on year, with the decline narrowed by 0.5 percentage points compared with that of the previous month, or up by 0.4% month on month. In the first three quarters, the purchasing prices for industrial producers went down by 3.6% year on year. Specifically, the prices in September went down by 3.6% year on year, with the decline narrowed by 1.0 percentage point compared with that of the previous month, or up by 0.6% month on month.

8. Employment was generally stable and surveyed urban unemployment rate declined.

In the first three quarters, the surveyed urban unemployment rate averaged 5.3%. In September, the surveyed urban unemployment rate was 5.0%, 0.2 percentage points lower than the previous month, falling for two months in a row. The surveyed unemployment rate of population with local household registration was 5.1%; that of population with non-local household registration was 4.9%, among which, the rate of the population with non-local agricultural household registration was 4.7%. The surveyed urban unemployment rate in 31 major cities was 5.2%, 0.1 percentage points lower than the previous month. The employees of enterprises worked 48.8 hours per week on average. By the end of the third quarter, the number of rural migrant workers totaled 187.74 million, up by 2.8% year on year.

9. Residents income increased steadily and income of rural residents grew faster than that of urban residents.

In the first three quarters, the nationwide per capita disposable income of residents was 29,398 yuan, a nominal growth of 6.3% year on year; the real growth was 5.9% after deducting price factors, 0.1 percentage points faster than that of the first half year. In terms of permanent residence, the per capita disposable income of urban households was 39,428 yuan, a nominal growth of 5.2% year on year and a real growth of 4.7%; the per capita disposable income of rural households was 15,705 yuan, a nominal growth of 7.6% year on year and a real growth of 7.3%. In terms of income source, the nationwide per capita salary income, net business income, net property income and net income from transfers grew by 6.8%, 6.7%, 3.7% and 5.8% in nominal terms, respectively. The median of the nationwide per capita disposable income of residents was 24,528 yuan with the nominal growth of 5.4% year on year.

Generally speaking, in the first three quarters, the national economy sustained the momentum of recovery and improvement with solid progress in high-quality development, which has laid a strong foundation for achieving the annual development targets. However, we should be aware that the external environment is becoming increasingly complex and grave while the domestic demand remains insufficient and the foundation for economic recovery and growth needs to be further consolidated. At the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the general principle of pursuing progress while ensuring stability, and fully implement the new development philosophy. We need to focus on the top priority of high-quality development and the strategic task of fostering a new development pattern by expanding effective domestic demand, stimulating the vitality of market players and implementing and delivering the introduced policies more effectively to continuously enhance the economic performance, boost the endogenous driving force, improve the public expectations, and defuse risks and hidden dangers, so as to achieve the annual targets of economic and social development.

The data provided above represent the main indicators of China's economic performance in the first three quarters of this year. I'm now ready to take your questions.

Shou Xiaoli:

Thank you, Mr. Sheng. Now the floor is open for questions. Please identify the media outlet you represent before asking questions. 

Yicai:

What is your comment on the GDP growth rate in the third quarter? What are the highlights and positive changes in the economic performance during this period of time? Thank you.

Sheng Laiyun:

Thank you for your questions. 2023 marks the first year of China's economic recovery following a three-year period of pandemic-induced setbacks. Based on the economic data in the first three quarters released earlier, the national economy has withstood external risks and challenges, as well as the downward pressure from multiple intertwined domestic factors. As a result, the national economy has sustained a recovery momentum. Such momentum was more prominent, especially in the third quarter, as positive changes have taken place in multiple fields and indicators. These changes are mainly seen in the following aspects:

First, economic growth has experienced a steady recovery. As mentioned earlier, the GDP in the first three quarters saw a 5.2% year-on-year increase, with that of the third quarter growing 4.9% year on year, which is slower than the second quarter. This is mainly attributed to an increased economic aggregate when compared to the same period last year. As we know, the pandemic dealt a relatively heavy blow to the country in the second quarter of 2022, resulting in a GDP growth rate of only 0.4%. Nevertheless, the economy rebounded with a 3.9% growth rate in the third quarter. Therefore, after deducting economic aggregate factors, the average two-year growth rate of GDP in the third quarter of this year reached 4.4%, 1.1 percentage points higher than the second quarter. In this sense, we need to consider both year-on-year and month-on-month figures when evaluating economic recovery. From a month-on-month perspective, GDP grew by 1.3% in the third quarter of this year, 0.8 percentage points higher than the second quarter, demonstrating a consistent momentum of economic recovery. China's economic growth rate, be it the year-on-year figure or the aggregated figure for the first three quarters, ranks top among major economies in the world. This signifies a positive change.

Second, employment has improved. As I said earlier, the urban surveyed unemployment rate averaged 5.3% in the first three quarters, 0.3 percentage points lower than the same period last year, and the unemployment situation has been gradually improving month by month. The surveyed unemployment rate averaged 5.2% in the third quarter and stood at 5% in September. The improving employment situation is a significant indicator of economic recovery. This represents another positive change.

Third, prices have been kept generally stable. In September, China's CPI saw a month-on-month increase of 0.2% and remained unchanged compared with the same period last year. The figure grew by 0.4% year on year in the first three quarters of this year. The decline in the country's producer price index (PPI) has slowed down for three consecutive months. Specifically, the PPI in September dropped 2.5% year on year. The decline narrowed by nearly 3 percentage points, from the lowest point in June. This suggests that domestic demand is growing steadily.

Fourth, foreign trade has showcased better-than-expected growth. According to data released by the General Administration of Customs (GAC), in the first three quarters of this year, the total value of foreign trade experienced a 0.2% year-on-year decrease, remaining basically consistent with figures from the same period last year. This year, the world economy has been experiencing downward fluctuations with a decline in external demand. In addition, China's foreign trade sustained a high growth rate in previous years, and the total value remains relatively huge. Given this, concerns had previously arisen regarding how the foreign trade volume would experience a significant decline this year. However, based on the actual performance, the decline in the third quarter has significantly slowed down and exceeded expectations. This has provided crucial support for a steady economic recovery.

Fifth, the Chinese market has witnessed an increase in activity among market players. As mentioned earlier, there was a recovery in both the total retail sales of consumer goods and the consumption of services in the first three quarters of this year. During the Mid-Autumn Festival and the National Day holidays, there was a strong growth momentum in passenger flow, tourism spending, and revenues in the hotel and catering industries. This shows that the Chinese market is experiencing a higher level of activity, showcasing the potential and vitality of market consumption.

Sixth, business expectations have improved. The purchasing managers' index (PMI) for China's manufacturing sector was published recently, and the figure in September came in at 50.2%. Despite continuous declines in previous months, the PMI reading has once again stayed above the threshold, indicating economic expansion. This points to a sound recovery of China's real economy.

Seventh, the agricultural sector has posted a sound momentum. Despite a slight decline in summer grain production caused by unfavorable natural conditions, the prospects of the country's autumn grain production are promising, with a slight increase in grain acreage. Moreover, the increase in rainy weather is also generally conducive to the production of autumn grain. Preliminary estimates indicate that the annual grain output could potentially reach another historic high. In addition, the country's livestock industry has experienced steady growth, and the supply of agricultural products remains sufficient. This also lays a solid foundation for a continued and steady economic recovery.

Eighth, high-quality development has achieved concrete progress, and the quality of economic development has improved. From the perspective of innovation, the investment in high-tech industries grew rapidly, and the volume in the first three quarters of this year grew by 11.4%. The new energy vehicles, lithium batteries, and photovoltaic cells maintained fast growing momentum. According to statistics released by Customs, the export of these three goods in the first three quarters of this year rose by 41.7%, a relatively high figure. Another indicator is personal income. The incomes of both urban and rural residents grew steadily, and in the first three quarters of this year, China's personal income increased by 5.9% year on year in real terms, higher than GDP growth. The growth of enterprises' profits was ameliorated. From January to August, the growth of profits of industrial enterprises with an annual revenue of 20 million yuan or above from their main business operations was negative, but the drop rate was 3.8 percentage points less than the figure from January to July. In addition, in August, the growth of the business income of industrial enterprises turned from negative to positive, and the profits of enterprises grew by 17.2%.

The above-mentioned positive changes in eight respects show that the Chinese economy has shown an encouraging rebound momentum and demonstrates great resilience, potential, and vitality, which proves that the macro-economic policies made by the CPC Central Committee are powerful and effective. Of course, we need to be acutely aware that the economy is still in recovery, and some of the positive changes are preliminary. Whether some positive changes can be sustainable still needs observation. The challenges from the external environment and inadequate internal demand during the process of economic operation has not been relieved fundamentally. The basis for a steady economic recovery needs to be consolidated. In the next phase, we should take concrete actions to enhance the basis.

Kyodo News:

Currently, the real estate industry and the international economic situation are complex. What do you predict regarding the economic situation in the fourth quarter of this year? Will the growth rate reach the expected target of 5%? Thank you.

Sheng Laiyun:

Thank you for your question. People are concerned about the economic trends in the fourth quarter of this year and whether the whole-year target and tasks could be accomplished. In the first three quarters of this year, the GDP grew by 5.2% year on year, laying a solid foundation for the completion of the whole-year expected target – 5%. According to our estimations, if the growth rate in the fourth quarter of this year can reach 4.4% or above, we will achieve the whole-year expected target of around 5%. From this perspective, we are very confident that we can accomplish the whole-year expected target.

First, as for the economic trends in the fourth quarter of the year, economic operations will maintain an encouraging rebound momentum. Figures in the first three quarters of this year show that production and demand, as well as expectation and operation of the real economy are all recovering. While economic operations show inertia, we believe that the trend of steady growth will continue in the fourth quarter.

Secondly, previously released policies and measures to ensure stable growth will continue to take effect. With their step-by-step implementation, more positive effects will be unleashed.

On the basis of the above-mentioned judgment, we conclude that the economy in the fourth quarter will continue to recover and maintain a general trend of rebounding. We are very confident that we will meet the expected target of 5%. Thank you.

Market News International:

How much does service consumption currently contribute to economic growth? How do you anticipate the performance of service consumption in the fourth quarter of this year? In terms of future service consumption data, are there any further plans to better reflect the changes in Chinese residents' consumption? 

Sheng Laiyun:

Thank you for your questions. So as to comprehensively show the changes in the consumer market, the NBS recently adjusted and improved its trade economic statistical methods and rules. Apart from improving the statistical approach on the total retail sales of consumer goods, a service consumption market statistical supervision system was established. In August, for the first time, we released the growth rate of service retail sales in the first seven months of this year. The total retail sales of consumer goods mainly reflect the situation regarding physical commodity retail sales and part of the service consumption in accommodation and catering. However, with social and economic development, especially industrial upgrading and consumption upgrading, service consumption is accelerating, and its proportion to consumption is increasing. So as to demonstrate the changes in the consumption market, we also added service retail sales for release.

Both merchandise and service retail sales maintained rapid recovery in the first three quarters of this year. In January-September, total retail sales of consumer products and services increased by 6.8% and 18.9% year on year. The rapid growth of services retail sales was mainly related to the development environment in the past two years. Last year was severely affected by the COVID-19 pandemic, which had a great impact on the contact-based service sectors, including accommodation, catering, and transportation. Since China optimized its pandemic response measures, the country's economic operations have returned to normal, and the service industry, especially the contact-based segments, has benefited the most. People have traveled more frequently, and the catering sector has become increasingly popular. Service consumption has recovered quickly. 

Another indicator is per capita service consumption expenditure. In the first three quarters of this year, per capita service consumption expenditure increased by 14.2% year on year, accounting for 46.1% of the total per capita consumption expenditure. This was an increase of 2 percentage points compared with the same period last year. We can see that the economy is on a recovery track. Spurred by a series of consumption-stimulating policies, China's consumption market, especially service consumption, has rebounded and recovered well.

We will further improve the statistical survey system of service consumption and the entire consumption market. Currently, we only release statistics on cumulative growth rates of service retail sales, and we will release more data after the statistical methods and system are further improved. Detailed accounting data on the contribution rate of service consumption to GDP are not available at present. The contribution rate of consumption to economic growth reached 83.2% in the first three quarters of this year, a significant increase over the same period last year. Service consumption, with a relatively high growth rate, played an important role in driving economic growth.

CCTV:

China has introduced a series of measures to bolster the private economy recently. What has been the effect? Thank you. 

Sheng Laiyun:

Thank you for the question. The private economy plays an important role in the economic system, contributing more than 50% of tax revenue, more than 60% of GDP, and more than 80% of urban employment. It is an important foundation for the national economy and an important foundation for high-quality economic development. The CPC Central Committee and the State Council have attached great importance to the development of the private economy. The report to the 20th CPC National Congress stressed that China will work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide the development of the non-public sector. This year, the CPC Central Committee and the State Council issued a guideline on boosting the growth of the private economy. All related departments and localities have introduced many policies and measures to promote the development of the private economy in accordance with the deployment and requirements of the CPC Central Committee and the State Council. With the meticulous implementation of those measures and policies, the private economy has seen positive changes, showing an overall recovery momentum. 

From the perspective of investment, private fixed assets investment fell by 0.6% in the first three quarters year on year. Although growth was still negative, the decline was 0.1 percentage point narrower than that from January to August, which is an important change. Real estate investment accounted for more than one-third of private investment. If real estate investment is excluded, private investment increased by 9.1%, 0.1 percentage point faster than that from January to August. From the perspective of foreign trade, the imports and exports of private enterprises increased by 6.1% year on year in the first three quarters. Compared with the slight drop in the country's total trade volume, imports and exports of private enterprises maintained growth, accounting for 53.1% of the national total, a continuously higher proportion over the same period last year. Moreover, the NBS conducted a survey of 59,000 small and micro-enterprises. The survey shows that the production and order index and the overall business situation of these enterprises have generally improved, and their business prosperity index rose by 1.5 percentage points month on month. These statistics indicate that the private sector has shown an encouraging recovery momentum with the support of relevant policies.

We have also realized that the private economy, especially small and micro-businesses, has been greatly affected by the epidemic over the past three years, so business recovery requires a process. The PMI of large enterprises was above the boom-bust line of 50 in September, and the reading for small enterprises came in at 48. Therefore, it is necessary to continue to fully implement the policies and measures introduced by the CPC Central Committee and the State Council to boost the private economy, and intensify efforts to consolidate the foundation for the development of the private sector. Thank you. 

21st Century Business Herald:

We've noted the recent announcement from the NBS regarding their decision to conduct a nationwide sample survey on population changes in 2023. What are the primary reasons behind this survey? Additionally, how do you view the current population dynamics in China?

Sheng Laiyun:

Thank you for your questions. I've noted the media coverage on this topic, which indeed shows the public's attention to China's population trends. The 2023 sample survey on population changes is part of our standard procedural arrangements. According to our statistical survey system, we conduct a full census every decade, specifically in years ending in zero. For example, in 2020, we carried out the seventh national census. Mid-decade, typically in years ending in five, we conduct a 1% population sample survey, often termed a "mini-census." Therefore, by 2025, a 1% sample will be undertaken. In the intervening years, we execute a 1‰ (per mille) sample annually. Due to the associated costs, comprehensive censuses and larger sample surveys aren't feasible annually. Each year, we conduct a sample survey of population changes, collecting and reflecting the current total population, structural shifts, including birth and death rates, as well as fundamental demographic features. The primary objective is to scientifically and accurately capture population fluctuations, providing a solid statistical basis for the central government and relevant departments to formulate population policies.

Data collected from the seventh national census and the population sampling over the past two years reveal significant shifts in China's demographic structure, in line with socio-economic progress. These shifts include a declining birth rate, accelerated aging, and overall population changes. Last year, we observed a decline in the total population for the first time. However, it's crucial to note that our overall population remains substantial, especially with a working-age populace nearing 900 million. Furthermore, the educational attainment of our population is on the rise. The latest figures show that the average length of education for the working-age group is 10.93 years, which is nearly 11 years. Additionally, we have approximately 240 million individuals with higher education. Therefore, despite a numerical decrease, the quality of our population has seen a more rapid improvement, providing a valuable resource for the high-quality development of China's economy.

The 2023 sample survey will include about 500,000 households, roughly 1.4 million individuals. The household survey will commence on Nov. 1, our standard reference date, and will last about two weeks, ending on Nov. 15. I appeal to and earnestly request the households participating in our survey to actively cooperate with the population change sample survey and to provide the necessary information truthfully and accurately. In accordance with statistical laws, we will strictly maintain the confidentiality of the information provided by everyone. We also hope that all sectors of society, including the journalists present here, will actively support and oversee this process. Thank you.

Bloomberg News:

Could you give us some insights on the growth contribution in the third quarter from capital formation, consumption and net exports? Thank you.

Sheng Laiyun:

Thank you for your question. The contributions of the three major components to GDP growth are indeed a concern for many. In the first three quarters, final consumption expenditure accounted for 83.2% of economic growth, propelling a 4.4 percentage point increase in GDP. Gross capital formation contributed 29.8%, driving a 1.6 percentage point increase in GDP. Meanwhile, net exports of goods and services detracted from growth by 13.0%, pulling GDP down by 0.7 percentage point. In the third quarter, due to the continuous rebound in consumption, a decline in exports, and a slowdown in investment growth, the economic growth engines saw a slight change in their impact pattern. The contribution of final consumption expenditure to economic growth increased, accounting for 94.8%, and boosting GDP growth by 4.6 percentage points. Gross capital formation contributed 22.3% to economic growth, increasing GDP by 1.1 percentage points. Net exports of goods and services had a contribution rate of -17.1%, pulling down GDP by 0.8 percentage point. These figures represent the contributions of the three major drivers of economic growth. Thank you.

Nanfang Daily, Nanfang Plus:

The National Day holiday, often dubbed the "Golden Week" holiday, has just ended, and consumption data from all parties have been released. We have noted that domestic tourism has increased compared with its level before the epidemic struck, which has led to an increase in consumption of catering, attractions, accommodation and other services. Do we expect a continuing rise in consumption in the fourth quarter? Will there be any policies to promote consumption in the near future? Thank you.

Sheng Laiyun:

I can assure you that consumption in the fourth quarter will continue to recover from that of the first three quarters.

First, in the first three quarters, the consumption of both goods and services, as well as household spending, continued to stabilize and revitalize. In this period, retail sales of services increased by 18.9% year on year, and the proportion of residents' per capita expenditure on services in per capita consumption expenditure rose by 2 percentage points year on year.

Second, the effects of consumption policies have become more evident. This year, efforts to stabilize growth and expand consumption have been prioritized. Relevant departments have introduced a series of policy initiatives to boost consumption, and local governments have stepped up their implementation. The impacts of these policies are expected to continue to unfold.

Third, the personal consumption base has been consolidated. Consumption is ultimately supported by income. The employment situation has generally improved this year. Personal income increased by 5.9% in the first three quarters, maintaining stable growth. This has laid a solid foundation for sustainable recovery and the growth of consumption in the future.

Fourth, the baseline for consumption-related indicators was low due to the impact of the epidemic in the fourth quarter of last year. For example, total retail sales of consumer goods fell by 2.7% year on year in the fourth quarter of last year, making the base effect conducive to an improvement in consumption data this year.

Based on these four reasons, I can assure you that household consumption will continue to recover in the fourth quarter. China possesses significant consumption potential and a large population. In addition, the country is at a critical stage of upgrading its consumption patterns. As the Chinese economy has shown encouraging signs of rebounding, overall consumption trends are expected to be positive. Of course, we need to emphasize that cultivating consumption capacity is crucial. We must continue to promote economic stability and growth, increase people's incomes, and fully leverage the basic role of consumption and the advantages of scale. Thank you.

CNR:

I have noted that the recovery of the industrial sector further quickened in the first three quarters. What do you think of its current performance? And what future steps will be taken to restore growth in this sector? Thank you.

Sheng Laiyun:

Thank you for your questions. The industrial sector is the cornerstone of our real economy. To assess whether the foundation for economic recovery is solid and whether the growth can be sustained, the industrial sector is a very important aspect for us to observe. Judging from the performance in the first three quarters of this year, the industrial sector has maintained an encouraging and stable momentum of recovery. In the first three quarters, the total value-added of industrial enterprises above the designated size increased by 4%, and in the third quarter, it rose by 4.2%. In August and September, the total value-added of the industry continued to grow month on month. In September, the total value-added of industrial enterprises above the designated size grew by 4.5% year on year. Thus, it can be seen that economic conditions are recovering for the better.

By the way, in addition to the rebound in industrial growth, there have been some positive changes in a series of related business indicators. For instance, general economic conditions have improved, and the manufacturing purchasing managers' index (PMI) has returned to above the tipping point for the first time, reaching 50.2% in September. This is a leading indicator that can demonstrate entrepreneurs' optimism about the market.

The second positive change was that China's producer price index (PPI) narrowed its decline for three consecutive months, indicating demand for industrial products by economic entities was picking up.

The third positive change was that the profits of industrial enterprises turned positive in August, which was of great significance. As market demand improved and prices recovered, revenues for August were positive, and profits for the month increased by 17.2%. Although cumulative profits were still negative, they turned positive that month, which was a positive sign.

The fourth positive change is that both the industrial capacity utilization rate and the production-to-sales ratio are improving. Let me expound on two more figures: In the first three quarters, the national industrial capacity utilization rate was 74.8%, 0.4 percentage point higher than that in the year's first half. The production-to-sales ratio of industrial enterprises above the designated size was 96.8%, registering a rise of 0.6 percentage point compared with that in the first half of the year. Moreover, the production-to-sales ratios of industrial enterprises for July, August, and September all exceeded 97%, which shows that the overall market environment and corporate operations are improving. Therefore, we remain optimistic about the continued recovery of the industrial sector. Thank you.

Cover News:

Recently, many regions issued a series of policies to boost the real estate sector. However, industry data showed that the real estate market has not yet been reinvigorated as expected. How do you see this phenomenon, and what are your predictions for future trends in the real estate sector? Thank you.

Sheng Laiyun:

Thank you. Everyone is very concerned about the development and recovery of the real estate sector. Real estate is indeed an essential pillar of the national economy, and its industry chain is relatively long, making it significantly influential on economic growth and operation. As for the real estate economy and its development, I would like to stress several points.

First, we need to recognize that adjustments in the real estate sector are conducive to the industry's transformation toward high-quality development. In China, real estate has maintained high growth for nearly 20 years, starting from the housing commercialization reform in 2003 and through to 2020. I would like to share some data with you. During the 2003-2020 period, we saw an average annual growth of 19.9% in real estate investment, 10.8% in sales area of commercial housing, and 20.3% in commercial housing sales. The data show that the real estate industry sustained high-speed growth from 2003 to 2020. Some scholars have even noted that, in terms of real estate development, China achieved what developed countries took over a century to do in less than 20 years. Therefore, the sustained high-speed expansion of the real estate industry made important contributions to the rapid and medium-high growth of China's economy in that period. However, like other industries, real estate cannot always sustain high growth. After a certain stage, such adjustments are normal and beneficial for eliminating outdated production capacity and optimizing structure, especially for high-quality development of the real estate industry. So, the current adjustment is beneficial for future development.

Second, there has been solid support for high-quality development of the real estate sector. In terms of China's development stage, we are still in the phase of economic transformation, upgrading, and high-quality development. Our per capita GDP has just surpassed $12,000. The urbanization rate of the permanent population is 65.2%, while that of the registered population is only 47.7%. Therefore, there is significant room for improvement in both the quantity and quality of urbanization. This means that our rigid and improvement-oriented housing demands are still significant. Additionally, we have achieved a comprehensively well-off society, with a per capita housing area of around 41 square meters. However, they are mostly small and medium-sized housing types, and as people's living standards improve, there is significant potential for improvement-oriented housing demand. So, based on these fundamentals, we believe that there is still solid support for high-quality and sustainable development of the real estate sector. It's not reasonable that people would lose confidence when the real estate is adjusted. That is also not in line with the changes in China's economic development stage.

Thirdly, since last year, the CPC Central Committee and the State Council have attached great importance to the sector and introduced a series of optimized policies to stabilize the real estate market. Just now, the reporter also mentioned the many policies in place, and their implementation will take a while. The initial implementation has made some positive effects. I will give you some more details. As for the real estate investment situation I just mentioned, it's clear that real estate investment continues to decline. September data show a month-on-month improvement. For example, the sales area of commercial housing had a negative growth rate of 10.2% in September, but it improved by 2 percentage points compared to August. The new construction area in the real estate sector also saw a narrowing of the decline in September, and it was a significant narrowing. Also we have data on the transaction volume of commercial housing in 70 large and medium-sized cities in September. The total transactions of new homes and second-hand housing turned positive in September, with a month-on-month increase of 2.8%. It marks the first time that they showed positive growth since April, after five consecutive months of decline. Therefore, based on these data, we believe that the optimized policies will have a continuous positive effect on the real estate sector. Of course, it still takes a while to see how these policies work, since the real estate industry is generally in a stage of adjustment. Therefore, we must better implement the policies at a later stage. Thank you.

Jiemian News:

We have seen that China's CPI stayed flat compared with a year earlier, and the core CPI has been relatively low. Does that mean weak demands have not yet improved? How does the NBS view the inflation situation in the fourth quarter? Thank you.

Sheng Laiyun:

Thank you for your questions. China's CPI in September remains unchanged from a year earlier, but I need to stress that CPI in September increased on a month-on-month basis, with an increase of 0.2%. That the CPI in September stayed flat year on year is due to the comparison base last year, affected by the tail effect. The month-on-month data would be a very good way to review the short-term changes in prices. As of September, the CPI has been rising month on month for three consecutive months. The year-on-year decline in PPI has been narrowing significantly for three consecutive months. PPI in June dropped by 5.4% year on year, a low point in the year. PPI in September decreased by 2.5%, narrowing by 2.9 percentage points from June. It illustrates that prices have rebounded from a low level, signaling the recovery of the aggregate demand of society.

Secondly, changes in China's price indexes, especially in CPI, demonstrate clear structural features, and the core CPI was relatively stable. In the year to date, the CPI has dropped year on year. However, according to the performance of the food price index, in the first quarter, food prices rose by 3.7% year on year, while the price increase fell back to 1.2% in the second quarter. However, the year-on-year sharp decline in hog prices in the third quarter led to a decrease in the food price index, which had a significant impact on the performance of the CPI. In the price index for industrial consumption products, the prices of crude oil, especially the fluctuation of international crude oil prices, also exerted an important influence on the performance of prices. The core CPI, excluding the influence of food and energy prices, was generally stable. The core CPI in the first three quarters of this year rose by 0.7% year on year, with minor monthly fluctuation.

Thirdly, changes in China's prices are different from international trends. Recently, global commodity prices have risen sharply, and global inflation remains high. In spite of the U.S.'s rate hikes, the CPI in the U.S. increased by 3.7% in September year on year, and the CPI in the eurozone rose by more than 4%. Therefore, high inflation has become a crucial factor in influencing economic recovery and development. However, China has maintained generally reasonable and sufficient liquidity, and its price trends stand in sharp contrast to international price trends. From the perspective of macro regulation, China's prices are a highlight when looked at from a global context. Surely, it is not the case that the lower the price, the better. With the recovery of aggregate demand and the economy, prices will rise moderately. Thank you.

Shou Xiaoli:

Thanks to Mr. Sheng and friends from the media. Today's briefing is hereby concluded. See you!

Translated and edited by Xu Xiaoxuan, Li Huiru, Wang Qian, Zhu Bochen, Mi Xingang, Yuan Fang, Yang Xi, Zhang Junmian, Wang Yiming, Li Xiao, Yan Bin, Zhou Jing, Xiang Bin, Wang Wei, 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. Cong Liang, vice chairman of the National Development and Reform Commission 

Ms. Guo Tingting, vice minister of commerce 

Mr. Li Kexin, director general of the Department of International Economic Affairs of the Ministry of Foreign Affairs

Chairperson:

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

Date:

Oct. 10, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference. Today, the State Council Information Office (SCIO) has organized this press conference to release a white paper titled "The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future."

In line with the guiding principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the white paper systematically lays out the historic origin, concepts and vision, realistic pathways, practical achievements and global significance of the Belt and Road Initiative (BRI). It also comprehensively introduces the fruitful outcomes of BRI cooperation since its inception 10 years ago, and sets forth China's determination and actions to promote high-quality BRI collaboration and jointly build a global community of shared future. 

The white paper is around 28,000 Chinese characters long. Its main body consists of five sections: "Proposed by China but Belonging to the Whole World," "Paving the Way Towards Shared Development and Prosperity," "Promoting All-Round Connectivity in Multiple Fields," "Injecting Positive Energy into World Peace and Development" and "Pursuing Steady and Sustained Progress in High-Quality BRI Cooperation."

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and Foreign Languages Press. It is available at Xinhua Bookstores across the country. 

To help you better understand the document, we have invited Mr. Cong Liang, vice chairman of the National Development and Reform Commission (NDRC); Ms. Guo Tingting, vice minister of commerce; and Mr. Li Kexin, director general of the Department of International Economic Affairs of the Ministry of Foreign Affairs, to attend today's press conference. They will brief you on and interpret related contents of the white paper, and then take your questions.  

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

Cong Liang:

Friends from the media, good afternoon. I'm very glad to join my colleagues from sister departments at today's press conference, as we release and interpret the white paper titled "The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future."

The white paper systematically lays out the principles, concepts, objectives and practices over the past decade of BRI cooperation. It exemplifies the thorough implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Xi Jinping Thought on Economy, and Xi Jinping Thought on Diplomacy. I hope the release of the document will help people from all walks of life and the international community to understand BRI collaboration in a deeper and more comprehensive manner.

This year marks the 10th anniversary of President Xi Jinping's proposal of BRI cooperation. In 2013, President Xi Jinping creatively proposed jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road based on his acute insights into the unprecedented global changes unseen in a century. BRI collaboration is rooted in history, responsive to reality and oriented towards the future. Promoting the BRI is not a solo endeavor by China, but a collaborative effort involving all stakeholders. The initiative has provided a critical platform for building a global community of shared future.

Over the past decade, under President Xi Jinping's personal planning, deployments and advancement, joint construction of the BRI has consistently adhered to the principles of extensive consultation, joint contribution and shared benefits, and upheld concepts of open, green and clean cooperation. In line with the initiative's objectives of high standards, sustainability and better lives, solid historic results have been achieved. These outcomes can be summarized in the following four respects:

In terms of "hard connectivity" in infrastructure, a number of signature projects including the China-Laos Railway, Jakarta-Bandung High-Speed Railway, Hungary-Serbia Railway and Piraeus Port have been built and put into operation. The China-Europe Railway Express service has provided a new Eurasian land transport route. The Silk Road Maritime Network has extended across the globe. A connectivity framework comprising "six corridors, six routes, and multiple countries and ports" has taken shape.

In terms of "soft connectivity," we have deepened cooperation with other BRI partner countries on establishing rules and standards. The Regional Comprehensive Economic Partnership (RCEP) agreement has come into effect among its 15 participating countries. China has signed 21 free trade agreements with 28 countries and regions, 107 standardization cooperation agreements with standardization bodies and international organizations in 65 countries, and conventions for the avoidance of double taxation (including arrangements and agreements) with 112 countries and regions.

In terms of "people-to-people connectivity," we have deepened cooperation in education, culture, sport, tourism, and archaeology with participating countries. We have signed agreements with 45 BRI partner countries and regions on the mutual recognition of higher education degrees and cultural and tourism cooperation documents with 144 BRI partner countries. We have carried out a series of "small but beautiful" brand activities, such as the establishment of the Chinese Government Scholarship - Silk Road Program, Luban Workshops, the Brightness Journey program, and the Juncao program. 

In terms of trade and investment, we have collaborated with other BRI partner countries to foster a mutually beneficial trade and investment partnership. The fifth China International Import Expo (CIIE) was successfully convened. We have advocated the establishment of the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund, creating a long-term, stable, sustainable, and risk-controlled investment and financing system. From 2013 to 2022, the cumulative value of imports and exports between China and BRI partner countries reached $19.1 trillion, with an average annual growth rate of 6.4%. The cumulative two-way investment between China and other BRI partner countries reached $380 billion, including $240 billion from China.

In the past decade, the BRI has transitioned from concept to action and from vision to reality. It has led to the creation of a new form of global connectivity, pioneered a new path towards development and prosperity for all, and explored new methods for the reform of a global governance system. The BRI has facilitated the smooth flow of goods, fostered political stability and social harmony, achieved mutual benefits and win-win cooperation, and promoted development for all. It has become a popular international public goods and international cooperation platform. More than 150 countries and 30 international organizations joined the BRI family, increasing the sense of gains and happiness among the people in the BRI partner countries. It is a remarkable innovation that benefits all of humanity.

Looking ahead, the future of BRI cooperation holds great promise. China remains committed to working with other BRI partner countries to forge stronger partnerships in health, connectivity, green development, opening up, innovation, and clean government. Together, we will promote high-quality BRI cooperation in a sound and sustained manner, gathering stronger momentum and vitality to accelerate the building of a global community of shared future.

That concludes my introduction. Next, my colleagues and I will answer your questions. Thank you!

Chen Wenjun:

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

Nanfang Daily, Nanfang Plus:

Since the initiation of the BRI, a large number of infrastructure connectivity projects have been implemented. Could you provide an update on the present status of the facility connectivity? Additionally, what impact have these projects had on the local areas? Thank you.

Cong Liang:

In March of 2015, the NDRC, the Ministry of Foreign Affairs, and the Ministry of Commerce released the Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road. It put forward the building of six major international economic cooperation corridors, which are the China-Pakistan Economic Corridor, the New Eurasian Land Bridge, the China-Indochina Peninsula Economic Corridor, the China-Mongolia-Russia Economic Corridor, the China-Central Asia-West Asia Economic Corridor, and the Bangladesh-China-India-Myanmar Economic Corridor. In recent years, these economic corridors have achieved significant progress, especially the building of international arterial routes with BRI partner countries and an infrastructure network that connects subregions in Asia as well as the continents of Asia, Europe, and Africa. The white paper elaborated on this in detail in the third chapter titled "Promoting All-Round Connectivity in Multiple Fields."

The first case is the China-Laos Railway. Since it began operation in December 2021, the China-Laos Railway has improved both the quality and quantity of passenger and cargo transport. As of early September, it had handled over 20.9 million passenger trips and transported over 25.36 million tons of goods. This railway, as a "Golden Channel" for local people, is making contributions to the economic and social development of not just Laos, but also ASEAN countries.

In terms of economic and trade cooperation, 25 provinces in China have opened international freight trains on the China-Laos Railway and transport services covering Laos, Thailand, Myanmar, Malaysia, Cambodia, and Singapore, greatly boosting economic and trade exchanges between China and Laos and strengthening economic and trade cooperation between China and ASEAN countries. In terms of connectivity, the China-Laos Railway has truly turned Laos into a land-linked hub, ensuring the convenient and fast transport of more products between China, ASEAN countries, and European countries.

In terms of people's well-being, since it began operations, the China-Laos Railway has recruited more than 3,500 Laotian staff and indirectly created over 100,000 jobs in various industries, including logistics, transportation, commerce and trade, and tourism. The railway has also provided new opportunities for ASEAN countries to better utilize new advantages brought by the entry into force of the RCEP agreement and created closer regional industrial and supply chains.

The other case is the Jakarta-Bandung High-Speed Railway. Some time ago, the Jakarta-Bandung High-Speed Railway was opened to the public for free trials, and the train was full nearly every time. I watched a video online in which a reporter made a coin stand on its edge on a table of the train, and it remained steady as the train traveled at speeds of up to 350km/h. This video went viral, and relevant comments demonstrated the wide acclaim received for the Jakarta-Bandung High-Speed Railway from all sectors of Indonesian society. In fact, not only has the Jakarta-Bandung High-Speed Railway greatly facilitated the travel of people along the railway line, it has also created 51,000 jobs for local people, trained 45,000 Indonesian staff, cultivated a batch of technicians and workers for high-speed railway construction and operations, and continues to deliver real and tangible benefits to local people.

Next, we will continue to adhere to the principles of extensive consultation, joint contribution and shared benefits, synergize our policies, mechanisms, and projects with BRI partner countries, and keep building quality landmark projects so as to improve the outcomes of cooperation and benefit people of BRI partner countries. Thank you.

National Business Daily:

Economic and trade cooperation is a crucial part of the BRI cooperation. Over the past decade, what achievements have been made in economic and trade cooperation under the BRI framework? What will be done to further advance the cooperation in the future? Thank you. 

Guo Tingting:

Over the past 10 years, the Ministry of Commerce has fully implemented the guiding principles of President Xi Jinping's speeches on the BRI cooperation and worked with relevant parties to deepen practical cooperation in the fields of economics and trade with BRI partner countries, jointly promoting mutual benefits for all countries and effectively advancing open cooperation at the global level. The achievements are mainly demonstrated in the following three aspects. 

First, both the quantity and the quality of trade cooperation have been improved. Just as the white paper points out, from 2013 to 2022, China's trade in goods with BRI partner countries has reached $19.1 trillion, with an annual growth rate of 6.4%, which is higher both than the overall growth rate of China's foreign trade and that of the global foreign trade over the same period. China is the main trading partner of over 110 BRI partner countries and has signed 14 free trade agreements with 20 BRI partner countries, with trade liberalization and facilitation continuing to be advanced.

Second, fruitful outcomes have been made in two-way investment. From 2013 to 2022, the two-way investment between China and BRI partner countries has totaled over $380 billion. Direct Chinese investment in BRI partner countries has topped $240 billion, covering diverse areas concerning social and economic development. China has also worked with BRI partner countries to build a series of economic and trade cooperation zones. As of the end of 2022, the total accumulated investment had exceeded $60 billion. At the same time, BRI partner countries also actively made investments in China and shared China's development opportunities. Over the past decade, the cumulative investment in China has exceeded $140 billion, and about 67,000 new enterprises have been set up in China. 

Third, construction projects have witnessed steady progress. From 2013 to 2022, the average annual turnover of China's contracted projects in BRI partner countries reached around $130 billion. We have witnessed the construction of a host of landmark projects, including the China-Laos Railway, the Jakarta-Bandung High-speed Railway, and the Mombasa-Nairobi Railway, effectively improving the infrastructure conditions of their host countries and significantly reinforcing connectivity. Moreover, we have launched a series of small and beautiful projects, including the cooperation project involving Juncao, a Chinese-invented technology using grass to grow mushrooms, to benefit people's lives. We have also stepped up efforts to promote cooperation in green and digital development. In the first eight months of this year, the value of newly signed project contracts with BRI partner countries related to energy conservation and environmental protection increased 22% year on year. 

In addition, we have made continuous efforts to set up trade and investment platforms to promote BRI cooperation. We successfully held the China International Import Expo, the China Import and Export Fair (Canton Fair), the China International Fair for Trade in Services (CIFTIS), the China International Fair for Investment and Trade (CIFIT), and the China International Consumer Products Expo (CICPE), as well as a host of regional exhibitions. All of these have provided a strong boost to economic and trade cooperation among BRI partner countries.

Going forward, we will strictly implement the decisions and deployments made by the CPC Central Committee and the State Council and ramp up our efforts to deepen and substantiate Belt and Road economic and trade cooperation in the following four aspects.

First, we will make efforts to form a new structure of opening up. We will expand and facilitate the import and export of quality goods, ensure the success of major exhibitions, and deepen trade cooperation with BRI partner countries. We will take multiple measures to foster the Invest in China brand and make greater efforts to attract foreign investment. We will continue to improve the structure of outbound investment and improve the quality and efficiency of investment cooperation with BRI partner countries. We will build pilot free trade zones and free trade ports of higher standards and align domestic rules with international economic and trade rules by high standards.

Second, we will raise industrial and supply chain cooperation to a new level. We will further improve the efficiency of China-Europe freight trains and accelerate the construction of the New International Land-Sea Trade Corridor. We will work with BRI partner countries to set up more working mechanisms to facilitate and ensure unimpeded trade, investment cooperation, and trade in services, make more effort to promote policy communication and strategy synergy and ensure stable and unimpeded industrial and supply chains for the Belt and Road cooperation.

Third, we will foster new drivers of economic growth. We will advance key projects as well as small and beautiful projects in a coordinated manner to help reinforce the development basis for BRI partner countries and improve their people's well-being. We will promote investment, construction, and operations in a comprehensive manner and build a host of high-quality engineering projects. Moreover, we will establish a pilot zone for Silk Road e-commerce cooperation and host the Global Digital Trade Expo successfully, sharing various development dividends with other countries.

Fourth, we will explore new spaces for economic and trade development. We will actively endeavor to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement (DEPA), as well as ensure the high-quality implementation of the RCEP. We will speed up the alignment of rules, regulations, and standards. We will also support enterprises from Hong Kong and Macao to participate in BRI cooperation and build an important functional platform for the BRI. We will promote cooperation in green development and the digital economy with BRI partner countries and achieve sustainable development together.

Thank you. 

Bloomberg: 

What are the newly focused regions for BRI going forward to increase and build projects? Secondly, what are the plans for development of BRI in the Central Asian nations specifically? How might it be different in any way? And also I'd like to ask, how does China see the competition from similar initiatives such as the India-Middle East-Europe Economic Corridor (IMEC)? And just one last add-on to that: Do you have the dates for the forum next week? Can you tell us what those might be? Thank you so much.

Guo Tingting:

In the 10 years since the introduction of the BRI, we have signed BRI cooperation agreements with more than 150 countries, including those in Central Asia, and over 30 international organizations. We have always upheld the principles of extensive consultation, joint contribution and shared benefit, stayed committed to achieving mutual benefits, win-win outcomes and common development, and continuously deepened economic and trade cooperation with participating countries. From 2013 to 2022, our total direct investment in participating countries exceeded $240 billion.

Moving forward, we will continue to strengthen the alignment of development strategies and market demands with BRI participating countries. Stressing enterprises' role as the main players, market orientation, government guidance and compliance with international rules, we aim to inspire the enthusiasm of all parties to actively participate in BRI cooperation, elevate the level of cooperation in areas such as trade and investment, promote poverty eradication, increase employment and improve people's livelihoods. We endeavor to ensure that the benefits of the BRI are more widely shared among the peoples of all participating countries. Thank you.

Li Kexin:

Infrastructure plays a crucial role in promoting global economic growth and advancing the well-being of people in various countries. Since President Xi Jinping introduced the BRI in 2013, Laos has converted itself from a "landlocked" to a "land-linked" nation; the Maldives has inaugurated its first cross-sea bridge; Indonesia has stepped into the high-speed rail era; and East Africa now takes pride in its first transnational electrified railway – the Addis Ababa-Djibouti Railway. All these have contributed to substantial improvements in the lives of local people.

In recent years, under the impetus of the BRI, global focus on infrastructure development has intensified. This resonates with the prevailing trends in global economic development and aligns with the immediate aspirations of numerous developing countries. China invites all parties to increase their investments in infrastructure in developing countries and promote projects that genuinely benefit the people. We are willing to cooperate with all parties on a foundation of openness, inclusivity, equality and mutual benefit, jointly advancing global connectivity, and providing the world with more high-quality international public goods.

Regarding the question about the upcoming BRI forum, China will host the third Belt and Road Forum for International Cooperation in Beijing this October. Not only will this be a most grandiose event commemorating the 10th anniversary of the BRI's inception, but it will also serve as a vital platform for all parties to discuss high-quality cooperation under the Belt and Road framework. As of now, representatives from more than 130 countries and over 30 international organizations have confirmed their participation. The activities during the forum will include an opening ceremony, three high-level forums on connectivity, green development and the digital economy, as well as six themed forums on unimpeded trade, people-to-people bonds, think-tank exchanges, Clean Silk Road, local collaboration and maritime cooperation. An entrepreneurs' conference is also on the agenda. The exact dates of the forum will be announced in due course. Thank you.

CNBC:

I have two sets of questions. First, what is the situation of railway operations under the BRI? What are the situations for both freight and passenger transport? How does the current situation differ from that of five and 10 years ago? Second, the Boston University Global Development Policy Center estimated that China reduced loans to Africa in 2021 and 2022. What are the reasons for this reduction? Considering the slow growth of the global economy, how will China's loans to foreign governments be impacted? Are there any changes expected in China's existing or future loan terms? Thank you.

Cong Liang:

Thank you for your questions. In terms of railway operations, our enterprises have built and operated a number of railway projects in collaboration with other BRI countries over the past decade. Notable examples include the Mombasa-Nairobi Railway and the Hungary-Serbia Railway. The opening of these railways has provided more convenient travel experiences for local people and injected new and strong impetus into economic and social development along the routes. I would like to share a specific example: the China-Europe Railway Express, a significant outcome of BRI cooperation. Since its opening, it has consistently maintained safe, stable, and smooth operations. This has made positive contributions to the economic and social development of countries along its routes, earning widespread participation and recognition from the international community.

Firstly, it has fostered a new model of international transport between Asia and Europe. The China-Europe Railway Express has improved the land transportation network spreading across Asia and Europe, opening up a new logistics channel running across the two continents that is characterized by all-weather accessibility, high volume, environmental sustainability, low carbon emissions, safety, and smooth operations. This has resulted in a spatial layout that connects sea and land transport and extends in multiple directions. By the end of September, the China-Europe Railway Express had reached 217 cities in 25 European countries, completing over 78,000 trips and transporting more than 7.4 million TEUs. The cargo transported by these trains has increased from 1.5% of the total China-Europe trade volume in 2016 to 8% in 2022. 

Second, we have ensured the stability of international industrial and supply chains. Characterized by safety, stability, and resilience, the China-Europe Railway Express has significantly expanded the variety of goods transported. Initially focusing primarily on digital products, it now handles more than 50,000 types of goods across 53 categories. In particular, during the COVID-19 pandemic, the China-Europe Railway Express achieved trend-bucking growth, with an average annual increase of 26.3%, defying disruptions to global logistics systems. It transported nearly 15 million pieces of pandemic-related materials and was recognized as a "lifeline" for international pandemic cooperation.

Third, the China-Europe Railway Express has promoted economic and social development among BRI partner countries. This express service has established a new platform for economic and trade cooperation along its route, facilitating the transportation of over $300 billion worth of goods. New business formats such as "cross-border e-commerce trains," "postal trains," as well as combinations such as "trains + parks" and "trains + ports," have continued to emerge, bringing numerous development opportunities for partner countries across various sectors, including industry, trade, investment, and employment, among other aspects.

In September this year, the first China-Europe Railway Express International Cooperation Forum was held, and attended by national representatives from 29 countries, resulting in 48 cooperation agreements. It provided a significant platform for deepening the development of the China-Europe Railway Express. In the future, we will adhere to the approach of consultation and cooperation for shared benefits, collaborating with BRI partner countries to develop and preserve this important global public asset, injecting fresh vigor and vitality into the world's economic recovery. Our emphasis will be on establishing the "four major systems."

First, we need to build an efficient transportation system. We will intensify our efforts to strengthen the alignment of strategic planning, accelerate the improvement of multilateral and bilateral inter-governmental cooperation mechanisms for the China-Europe Railway Express, coordinate and resolve issues at ports, customs clearance, transportation routes, and other junctures, and continuously consolidate the foundation for international cooperation.

Second, we need to establish a robust safety governance system. Our focus will be on strengthening safety risk management along the China-Europe Railway Express route, deepening information exchange and law enforcement cooperation, collectively enhancing emergency response capabilities, and proactively shaping an international transportation safety model.

Third, we need to build a multi-channel system. In addition to constructing and efficiently utilizing existing transportation routes, we will jointly explore new international transportation channels and accelerate the development of a diversified China-Europe Railway Express transportation network. We will continue to leverage various investment and financing channels to provide relevant support for channel construction.

Fourth, we need to innovate the development system. We will collectively advance the informatization, digitalization, and intelligent construction of the China-Europe Railway Express, actively explore and develop new models such as "people-to-people express" and "tourism express" services, and expedite the adoption of green and environmentally friendly technologies to ensure that the China-Europe Railway Express brings greater benefits to the people along its routes.

Regarding your concerns about loans, China, as a responsible major developing country, will remain committed to the principles of extensive consultation, joint contribution and shared benefits. We will adhere to international conventions, market principles, and debt sustainability principles. We will collaborate with relevant countries to consistently enhance a long-term, stable, sustainable, and risk-controllable investment and financing system, actively innovate investment and financing models, expand investment and financing channels, improve the stability, transparency, and quality of our capital guarantee system, and make positive contributions to promoting the common development of all countries.

Thank you. 

CRNTT:

Silk Road e-commerce has become a prominent aspect of BRI cooperation. What advantages does Silk Road e-commerce offer for the development of China and BRI partner countries, and what are its future prospects? Thank you.

Guo Tingting:

After more than six years of development, international cooperation through "Silk Road e-commerce," an essential measure for BRI implementation, has become a new platform for multilateral and bilateral economic and trade cooperation as well as a new highlight for the high-quality joint pursuit of the BRI. Currently, bilateral e-commerce cooperation memorandums have been signed with 30 countries. At the same time, tangible achievements have been made through e-commerce cooperation dialogues between China and Central and Eastern European countries, as well as with five Central Asian countries. Tangible progress has also been made in e-commerce cooperation under the Shanghai Cooperation Organization, BRICS and other mechanisms. The achievements can be summarized as "three joint efforts."

The first joint effort is to seize market opportunities together. We have assisted "Silk Road e-commerce" partner countries in expanding sales channels for high-quality featured products with a series of activities, including online shopping festivals featuring quality African products, "Buy BRICS," and the promotion of premium ASEAN products. These activities have received positive feedback from governments and businesses in their respective countries. Additionally, we encourage domestic enterprises to "go global," thereby accelerating the growth of e-commerce markets and industries in partner countries.

The second joint effort is to promote digital development together. We have offered practical and tailored training courses for partner country governments and businesses to enhance their capability to develop e-commerce. Through our "online classrooms," we have conducted widely-welcomed livestreaming training courses for over 80 countries.

The third joint effort is to advance regulatory connectivity together. We have consistently prioritized connectivity of regulations and norms. We have hosted over 100 meetings to promote government-enterprise dialogue and cooperation among enterprises. We have shared our experience in e-commerce development through these engagements. Furthermore, we encourage enterprises to facilitate the "soft connectivity" of technologies and standards through industrial chain cooperation.

Going forward, we will align with global digital economic development trends and leverage "Silk Road e-commerce" to enhance economic and trade cooperation in the digital field with our partner countries. On the one hand, we will consistently optimize the cooperation platform, actively support partner countries' aspirations, and promote deeper collaboration through platforms such as the Global Digital Trade Expo. We will also expedite the establishment of the "Silk Road e-commerce" cooperation pilot zone and explore new measures and approaches for cooperation. We will also continuously expand the scope of our cooperative fields as well as strengthen policy dialogue, industrial connection, sub-national cooperation, and capacity building. We will also accelerate the development of emerging sectors, including digital payment and intelligent logistics. With these endeavors, we hope to foster digital development and share these opportunities with partner countries. Thank you.

Phoenix TV:

The third Belt and Road Forum for International Cooperation is about to commence, and there has been a significant amount of discussion about the BRI recently. Some commentators have suggested that China's promotion of the BRI is driven by geopolitical considerations. May I ask if there is any response regarding this point from China? Thank you.

Li Kexin:

The BRI is an international economic cooperation initiative. We adhere to the principles of openness, inclusiveness, cooperation, and win-win outcomes and advocate for achieving shared growth through consultation and collaboration. We welcome the participation of all like-minded partners. Over the past decade, the BRI has achieved fruitful results and expanded its network of friends. This fully demonstrates that the BRI is not about creating closed and narrow cliques but goes beyond the outdated mindset of geopolitical competition. It has pioneered a new paradigm for international cooperation and has truly become a "development belt" and a "road to happiness" that benefits people in all countries. On Sept. 26, the Chinese government released a white paper titled "A Global Community of Shared Future: China's Proposals and Actions." The BRI is a significant practice and successful endeavor in building a community with a shared future for mankind, together with the international community.

Thank you.

ThePaper.cn:

International economic cooperation corridors are among the important carriers of BRI cooperation. How has the development of major international economic cooperation corridors been? What progress has been made in building the China-Pakistan Economic Corridor (CPEC)? Thank you.

Cong Liang:

Thank you for your questions. I just introduced the vision of developing six major international economic cooperation corridors. This year marks the 10th anniversary of the CPEC. I will give an overview of its development over the past decade.

Through joint efforts and close coordination between China and Pakistan, the "1+4" cooperation structure proposed by President Xi Jinping, with the Economic Corridor at the center and the Gwadar Port, energy, infrastructure, and industrial cooperation being the four key areas, has evolved from an inspiring blueprint into reality. On the one hand, the foundation for achieving further development has been consolidated. The Gwadar Port, as the CPEC's flagship project, has become fully functional, with the work of attracting investment in the start-up area of its Free Zone basically completed, and support facilities constantly improved. Fourteen energy projects with an installed capacity of approximately 8.02 million kilowatts have entered commercial operation, serving as CPEC's source of power. An increasingly improved comprehensive and multi-dimensional transport connectivity network has become the CPEC's transport arteries. Several signature projects, including the Karakoram Highway Phase II and the Lahore Orange Line Metro, have been built and opened to traffic. We have also promoted industrial cooperation under the CPEC in an orderly manner. The Framework Agreement on Industrial Cooperation under the CPEC has been signed. Good progress has been made to attract investment in the Rashakai Special Economic Zone after it was launched as a priority under the CPEC. On the other hand, our cooperation has been continuously expanded to new areas. Exchanges and cooperation in agriculture and science and technology have been continuously deepening. Cooperation in the information technology sector is also booming. The two countries also help each other with sincerity in areas that are important to people's lives and are further strengthening international coordination and security cooperation so as to enrich the content of CPEC cooperation.

The achievements under CPEC are the epitome of the overall development of the six major international economic cooperation corridors in the past decade. From this new starting point, aiming to achieve high standards, sustainability, and improve people's lives, we will continue to bolster the quality and efficiency of developing the six corridor economies and further unlock their potential for development, making them a demonstration project of the high-quality BRI cooperation. Thank you.

Cover News:

Cooperation mechanisms are essential to safeguarding the steady and sustained progress of BRI cooperation. The past decade witnessed many achievements under BRI cooperation. What progress has been made in establishing international cooperation mechanisms? Thank you.

Li Kexin:

In the past decade, China has worked in collaboration with partners to establish a composite international cooperation architecture, which is led by the Belt and Road Forum for International Cooperation and supported by various bilateral, trilateral, and multilateral cooperation mechanisms. The cooperation has yielded fruitful results.

First, the Belt and Road Forum for International Cooperation has played a leading role. China hosted the first and second Belt and Road Forum for International Cooperation in 2017 and 2019. During the two forums, participants had in-depth exchanges and reached extensive consensus on the direction for and key areas of BRI cooperation. The third Belt and Road Forum for International Cooperation will be held in Beijing this month.

Second, bilateral cooperation mechanisms have been strengthened. With the global partnership network of the BRI expanding annually, China has signed BRI cooperation agreements with more than 150 countries and 30 international organizations. The BRI aligns with the development strategies of more than 30 countries and the UN 2030 Agenda for Sustainable Development, and it synergizes with the development plans of ASEAN, the African Union, the Eurasian Economic Union, and other regional organizations.

Third, multi-sector and multilateral cooperation platforms have been upgraded. Over the past 10 years, China has worked with other parties to establish more than 20 multilateral cooperation platforms under the BRI framework, covering sectors such as energy, taxation, finance, culture, and green development. These platforms have advanced coordinated policy communication and practical cooperation. It's worth noting that these multilateral mechanism platforms have endured the challenges posed by the COVID-19 pandemic, with dozens of international conferences being held annually. This resilience and vitality have allowed them to further build international consensus for BRI cooperation.

Generally, jointly building the Belt and Road has realized all-round and balanced progress in cooperation philosophy, mechanisms and practical actions. Through hosting the Third Belt and Road Forum for International Cooperation, China, in collaboration with all parties, is committed to delivering new accomplishments of high-quality BRI cooperation, contributing more to the development and prosperity of all countries and building a community with a shared future for mankind. Thank you!

Chen Wenjun: 

The last two questions. 

International Business Daily: 

Unimpeded trade cannot be possible without the construction of trade channels. The Ministry of Commerce is the main department responsible for the collaborative construction of the New International Land-Sea Trade Corridor. Could you please provide an update on the progress of this construction and the benefits it has brought to the participating countries?

Guo Tingting: 

Thank you for your question. General Secretary Xi Jinping has placed great emphasis on the construction of the New International Land-Sea Trade Corridor and has provided crucial instructions multiple times, offering guidance for our work. The Ministry of Commerce has followed this spirit and implemented the cooperation plan for the corridor in collaboration with related departments. By steadily advancing the project, we have facilitated the opening up and development of central and western China, and created more development opportunities for relevant countries. Since its launch in 2018, the New International Land-Sea Trade Corridor has become an important bond of cooperation between China and other participating countries after five years of development. It possesses the following three distinctive features:

First, it encompasses a wide range of countries and regions. With Chongqing and Singapore serving as two major hubs, the New International Land-Sea Trade Corridor uses key western Chinese cities including Nanning, Chengdu, Kunming, and Guiyang as multiple domestic fulcrums, and provides access to 465 ports in 120 countries and regions, thus becoming a pivotal gateway connecting central and western China with the rest of the world.

Second, it offers multiple logistic modes. The New International Land-Sea Trade Corridor thrives through the development of multi-modal transport, encompassing several logistic modes such as rail-sea freight trains, cross-border highway regular lorry services, and international railway express services. Furthermore, services like the Air Corridor and customized trains also help improve regional cargo transport capacity.

Third, its business is experiencing rapid growth. In 2022, the trade volume of the New International Land-Sea Trade Corridor, with Chongqing as the embarkation and destination port, increased by 147% compared to that of 2019. This signifies that trade cooperation has been taken to new height between China's central and western regions and the countries along the corridor.

Next, the Ministry of Commerce, in accordance with the policy decisions and plans of the CPC Central Committee and the State Council, will work closely with relevant departments and localities to solidly promote the construction of the New International Land-Sea Trade Corridor and create a benchmark for high-quality cooperation in the joint construction of the BRI. First, we will encourage more ASEAN countries to participate in the corridor's construction, constantly enhancing its resilience and vitality. Second, we will implement the RCEP to a high quality, accelerate negotiations for the China-ASEAN Free Trade Area 3.0, and promote mutual reinforcement and common development between the corridor and trade. Third, we will expedite the implementation of cooperation plans, striving to establish a multi-dimensional modern network of interconnectivity that is efficient, open, secure and stable by 2035.

Thank you.

CCTV:

Building the digital Silk Road is an important area of cooperation in the joint construction of the BRI. What achievements have been made in this area? How will we expand digital cooperation in the future? Thank you.

Cong Liang:

In recent years, we have implemented President Xi Jinping's important initiative to build the digital Silk Road and actively promoted cooperation regarding digital economy and other related areas to achieve new progress and achievements. On one hand, policy exchanges have been continuously deepened. Initiatives such as the Initiative on Jointly Building a Community with a Shared Future in Cyberspace and the Belt and Road Digital Economy International Cooperation Initiative have been launched, fostering sustained cooperation with countries involved in the BRI in areas such as digital infrastructure construction, digital technology innovation and digital transformation of industries. Memorandums of understanding to strengthen cooperation in the construction of the digital Silk Road (digital economy) have been signed with 20 countries, providing an avenue for aligning development strategies, enhancing policy coordination and promoting practical cooperation among enterprises.

On the other hand, pragmatic cooperation is steadily advancing. Cooperation between China and ASEAN countries in the construction of smart cities is deepening. The construction of smart cities between Shenzhen and Singapore is continuously expanding. The online Silk Road cooperation between China and Arab countries is steadily progressing in Ningxia. At the same time, cooperation in digital infrastructure construction is continuously improving connectivity efficiency, enabling a variety of high-quality goods, technologies and products to go global. Cross-border e-commerce has become a new engine driving the growth of goods trade. In 2022, China's cross-border e-commerce import and export volume reached 2.11 trillion yuan. Chinese enterprises have provided greater convenience for people across the globe through cloud platforms and other services as well as projects such as those offering satellite TV services in remote African villages. 

Moving forward, we will continuously strengthen exchanges with other BRI countries in the field of digital economy and expand pragmatic cooperation, with the aim to share development dividends with people in different countries. To achieve this goal, we will deepen efforts in three aspects: First, deepening international consensus on digital economy. We will rely on bilateral and multilateral cooperation mechanisms to promote exchanges and cooperation in the field of digital economy. Actively participating in negotiations on digital economy issues within multilateral mechanisms and international organizations, we will promote accession to the DEPA. Within frameworks such as the World Trade Organization and the RCEP, we will drive the establishment of rules for digital economy governance and foster broad consensus on development. Second, deepening international cooperation in the digital industry. Building on the existing mechanisms of the digital Silk Road construction and cooperation, we will strengthen collaboration with other countries participating in the BRI in areas such as network infrastructure and digital industries. We will continuously expand the breadth and depth of international cooperation in the digital industry. Third, deepening efforts to make sure the benefits of digital economy are shared by all. We will pragmatically promote exchanges and cooperation in the digital economy, encouraging high-quality collaboration between Chinese and foreign enterprises in areas such as e-commerce, mobile payments, smart cities, telemedicine, digital education and digital transformation of industries. We will leverage digital technologies to drive high-quality economic development, improve people's livelihoods and enable people in BRI countries to better share in the dividends of digital economy development. Thank you.

Chen Wenjun:

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

Translated and edited by Wang Qian, Xu Xiaoxuan, Li Huiru, Zhang Rui, Yuan Fang, Yang Xi, Yan Bin, Liu Caiyi, Cui Can, Xu Kailin, Gong Yingchun, Zhang Junmian, Zhang Tingting, Liu Sitong, Wang Ziteng, Mi Xingang, Li Xiao, 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: 

Ms. Cao Shumin, deputy director of the Publicity Department of the Communist Party of China Central Committee and minister of the National Radio and Television Administration (NRTA) 

Mr. Zhu Yonglei, vice minister of the NRTA

Mr. Yang Guorui, vice minister of the NRTA

Chairperson:

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

Date:

Sept. 28, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 26th briefing in the series "Embarking on the New Journey — A Government Perspective." Today, we will brief you on the topic of supporting high-quality development of radio, television, and online audio and video, striving to secure new successes in developing socialist culture with Chinese characteristics. Present today are Ms. Cao Shumin, deputy director of the Publicity Department of the Communist Party of China (CPC) Central Committee and minister of the National Radio and Television Administration (NRTA), as well as Mr. Zhu Yonglei and Mr. Yang Guorui, both vice ministers of the NRTA.

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

Cao Shumin:

Ladies and gentlemen, good morning. I'm delighted to meet with you all here. On behalf of the NRTA, I'd like to express my heartfelt gratitude to members of the media and all sectors of society for their long-standing interest in and support for the development of radio, television, and online audio and video.

Next, I'd like to briefly introduce how the NRTA has thoroughly implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 20th CPC National Congress in its efforts to promote high-quality development of radio, television, and online audio and video. I will address this from six aspects:

First, we have focused on themed promotion and the timely release of authoritative information. Radio and television media, as well as online audio and video platforms, have centered their efforts on promoting Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 20th CPC National Congress. They have rolled out a series of influential news reports and theory-based programs, including "Xi Jinping's Cultural Story," "Chinese Practice with Chinese Wisdom" and "New Thought: Along China-Laos Railway." During major conferences and events like the "Two Sessions" (the annual sessions of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference), the Chengdu Universiade and the Hangzhou Asian Games, radio and television media have undertaken promotion and reporting work, and staff members have shouldered responsibility for broadcast and transmission. This has ensured the safe, high-quality delivery of broadcast signals to countless households.

Second, we have fostered the creation of high-quality content to enrich the intellectual and cultural lives of our people. China has become a major producer of radio, television, online audio and video, and cultural programs. We boast 56,000 program production and operation institutions. Our annual TV drama production output ranks first worldwide, and our documentaries, animations and cultural programs also rank among the top globally. In the first half of this year, a diverse range of works were produced and released, including 70 television dramas, 112 online series and 272 online micro or short video series. Many excellent works have emerged, including TV and online series like "The Knockout," "Three-Body" and "The Long Season," animations such as "Yao-Chinese Folktales," cultural programs like "China Through Its Intangible Heritage," and online audiovisual works like "Infinity and Beyond 2023" and "Here Comes! Beijing Central Axis." Some have been enthusiastically received.

Third, we have enhanced our broadcasting system to ensure that the public can readily access and enjoy our content. China has built the world's most extensive radio and television transmission network with cable, wireless, satellite and other technical means. There are 200 million cable TV users and 150 million direct-broadcast satellite households. At the same time, we have over 300 million internet protocol television (IPTV) users, an average of over 270 million monthly active users of over-the-top (OTT) TV platforms, and 1.04 billion users on online video platforms. Last year, the national revenue of the radio, television, and online audio and video industry surpassed 1 trillion yuan ($137.28 billion). To ensure that people in old revolutionary base areas, areas with large ethnic minority populations, border regions and economically disadvantaged areas can access premium broadcasts, we have implemented several key public-benefit projects during the 14th Five-Year Plan period (2021-2025). These include the integrated enhancement of municipal-level broadcasting in the "Most Impoverished Three Regions and Three Prefectures," the building of emergency broadcasting systems at the county level in old revolutionary base areas, areas with large ethnic minority populations, border regions and economically disadvantaged areas, and the promotion and popularization of high-definition interactive digital cable TV set-top boxes in areas with large ethnic minority populations.

Fourth, we have advanced scientific and technological innovations to provide better audiovisual experiences. Television is rapidly progressing from Standard Definition (SD) to High Definition (HD) and Ultra High Definition (UHD). There are 1,099 HD channels nationwide, including 10 UHD channels. By the end of 2025, HDTV will become the basic broadcasting standard. We have expedited the development of new broadcasting networks. The "cable + 5G" integrated transmission pattern has primarily taken shape, with number of mobile subscribers surpassing 18 million, through the integration of cable television networks nationwide and the simultaneous development of 5G infrastructure for broadcasting. We have also independently developed a smart TV operating system (TVOS), with the number of deployed terminals totaling more than 38 million. Currently, new technologies such as 5G, big data, virtual reality/augmented reality, and artificial intelligence have been widely applied across all sectors of radio, television, and online audio and video content, including gathering and editing, production, broadcasting, transmission, and reception. This has advanced the digital upgrade of the industry at a faster pace, enabling high-quality and diverse audiovisual content and services.

Fifth, we have engaged in international exchanges to enhance global reach and influence. This year marks the 10th anniversary of the Belt and Road Initiative (BRI). We have coordinated activities among BRI partner countries to broadcast each other's programs. We've carefully selected a hundred excellent audiovisual works and presented and promoted these works in countries and regions along the Belt and Road routes. We have also selected over 60 excellent works from 30 Belt and Road countries and showcased them in China. Not too long ago, we launched the "TV China Theater" on BRICS TV in South Africa, around the time when General Secretary Xi Jinping was in the country to attend the BRICS Summit. We also organized the "Seeing China" Africa Broadcasting event. Recently, we hosted the Shanghai Cooperation Organization (SCO) TV Festival in Nanjing, where over 150 delegates from 10 SCO member states participated. The TV festival featured a series of exchange events, including focused dialogues and exhibitions of TV programs and TV technologies. In recent years, a large number of domestic works, including a feature program presenting China's historic achievements and transformation achieved under the leadership of the Party as well as TV dramas "Three Body" and "Minning Town," have been broadcast overseas, vividly demonstrating China's visions, image, and culture.

Sixth, we have strengthened industry regulations to maintain a sound business environment. Responding to the public's concerns, we have implemented comprehensive measures to address problems in the culture and entertainment sector. These measures include tackling excessive payments to entertainers, abnormal aesthetic standards, vulgarity, kitsch, and other negative trends. We have also taken resolute action against various violations of regulations, such as the illegal display of ads. Currently, in response to pressing public concerns regarding difficulties and troubles in watching television, we are undertaking targeted actions to address problems related to multiple charges and complicated operations. As the result, over 20 million users in Beijing and other pilot areas are now able to directly access live TV channels as soon as they turn on their TVs. We are committed to continually improving radio, television, and online audio and video services by creating a clean and ethical business environment.

That concludes my introduction. Next, my colleagues and I are happy to answer your questions. Thank you!

Chen Wenjun:

Thank you. The floor is now open to questions. Please identify the media outlet you represent before raising your questions.

China Media Group:

Just now, Ms. Cao provided a detailed introduction about the development of China's radio, television, and online audio and video services since the 20th CPC National Congress. What are the plans of the NRTA for their future development? Thank you.

Cao Shuming:

Thank you for your question. As part of a thematic education campaign launched this year, we have carried out in-depth investigations and research while systematically planning approaches and measures to achieve high-quality development in radio, television, and online audio and video content. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the NRTA is committed to fully implementing the guiding principles of the 20th CPC National Congress. We are diligently studying and implementing the new ideas, viewpoints, and theories of General Secretary Xi Jinping on cultural progress, as well as his significant remarks and directives regarding radio, television and online audio and video content. We will better shoulder our new cultural mission and make great efforts to open new ground for the development of broadcasting in the new era. Next, I will introduce this work in the following three aspects.

First, we will adhere to the defined functions of broadcasting. Since its inception, broadcasting has carried the mission of making the Party's voice heard and serving the people's best interest. The defined functions of broadcasting can be summarized with three numbers "two, three, and four". "Two" refers to the two main businesses of broadcasting: radio and television, and online audio and video services. The two constitute a comprehensive system of audiovisual media, from traditional radio and television to online content. "Three" refers to the three roles of broadcasting: it is a means of disseminating culture and thoughts, a sector of public service, and an industry evolving with technological innovation. As a means of disseminating culture and thoughts, broadcasting should let the Party's voice better heard whiling building on cultural strength. As a sector of public service, broadcasting should better serve people's interest, better meet customers' demands, and provide good content, products, and services for the public. As a technology-driven industry, broadcasting should follow the laws guiding tech industry development and drive growth through advanced technology. "Four" refers to the four business modes of broadcasting or four carriers of broadcasting services. These include radio and television networks; IPTV networks, or internet protocol television, transmitted by telecom operators; internet TV, known as OTT; and the internet. The first three services all require the access to a television set, while the internet business mode operates on various devices with smaller screens like mobile phones. The four layers of business mode are developed through the technological iteration of the internet and the mobile internet, as we promote the integration of telecommunications networks, cable television networks and the internet. In this new stage of development, we will make solid effort to fulfil our mission, adhere to the defined functions of broadcasting, and systematically promote the high-quality development of radio and television as well as online audio and video services.

Second, we will identify the future direction of our work. We will prioritize our efforts in the following aspects: First, consolidating and improving traditional radio and TV media, which means ensuring the public enjoys satisfying and enriching TV services. We will take a series of measures, including enhancing services, improving the viewing experience, offering better TV programs, increasing the popularity of high-definition TV, and accelerating the development of ultra-high-definition TV. Additionally, we will work on reducing the number of redundant channels and focus on enhancing their quality. We will utilize radio and television media as a platform to provide more services to the audience, including government services, social services, and family services. Second, we will explore and promote media integration. We will build new types of mainstream radio and TV media while fostering new media formats, such as online audio and video platforms. Third, integrating resources for collaborative development. We will address the issue of fragmented and dispersed resources within the industry and integrate resources such as content, communication, technology, and data. By doing so, entities within the industry can collaborate to develop, share, and utilize these resources with a view to achieving shared benefits and applications through joint efforts, having a greater magnet effect, achieving scale benefits, and creating synergy.

Third, we will highlight key areas of our work, which are in the following aspects: First, we will expand the influence and reach of mainstream public opinion. Our dedicated efforts will center on promoting Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and constructing a comprehensive media communication system to shape a new landscape of mainstream public opinion. Second, we will elevate the quality of our work. By adhering to the principles of "accurate topic selection, effective storytelling, and high-quality production" in major thematic creations, our aim is to promote outstanding traditional Chinese culture and showcase modern Chinese civilization. Third, we will harness technology to drive innovation within the broadcasting and TV industry. Our goal is to leverage cutting-edge technology to facilitate development across various aspects of the industry. Fourth, we will enhance management within the radio and TV industry. We will make efforts to improve the legal and policy framework while enhancing overall governance in the cultural and entertainment sectors. The objective is to foster a clean and upright industry ecology. Fifth, we will improve safety and security measures. We will systematically advance safety and security efforts to ensure safe and high-quality radio and TV services for the public. Sixth, we will strengthen international communication. We will further deepen international exchanges and cooperation in the field of radio and TV to effectively tell China's stories and promote China's voice.

Thank you.

China Youth Daily:

The theme song of the theory-based TV program "Chinese Practice with Chinese Wisdom" has recently gained popularity on Weibo. This theme song is a unique blend of traditional Chinese music and rap, featuring ancient Chinese sayings that reflect Chinese wisdom, including phrases like "regarding people as the foundation of a nation" and "pursuing the common good for all" in its lyrics. It's quite surprising how a theme song from a theory-based program can be so inspiring and innovative. I would like to hear your thoughts on this phenomenon. Thank you.

Cao Shumin:

Thank you; I will address your question. Our program, "Chinese Practice with Chinese Wisdom," has garnered widespread attention from television and internet users since its release in June. Since the 20th CPC National Congress, the national radio and TV system has launched a series of excellent radio and TV programs to promote and explain the Party's innovative theories. The "Chinese Practice with Chinese Wisdom" program you just mentioned is based on 10 keywords from the report to the 20th CPC National Congress, such as "pursuing the common good for all" and "regarding the people as the foundation of the state." It conveys the "cultural code" of "why China" through storytelling, scenario interpretation, outdoor visits, and song and dance performances. It reveals the significance of integrating the basic tenets of Marxism with China's specific realities and fine traditional culture, especially integrating the basic tenets of Marxism with China's fine traditional culture. This is also a theory-based TV program that implements the guidelines from the important speech made by General Secretary Xi Jinping at a meeting on cultural inheritance and development on June 2. It was indeed a very impressive TV program. The program was broadcast on all satellite TV channels and seven major online audio and video platforms. The theme song you mentioned is also highly captivating, especially among young people. Here, I highly recommend it to everyone once again.

Radio and TV, as prominent players in mainstream media, play a crucial role in deepening the understanding and dissemination of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th CPC National Congress. Their objective is to make the Party's innovative theories accessible to the general public by using engaging narratives and easy-to-comprehend language. Serving as bridges, radio and TV connect the Party's innovative theories with the public. Through the implementation of the "Innovative Theory Promotion Project," we have facilitated the production of theory-based programs that are both content-rich and well-received by the public. For example, programs like "Philosophy Shining China" and "Philosophy Shining the Journey" delve into grassroots communities across the country. They use ordinary people's stories to unveil the profound truths behind them. Programs such as "This is China" and "Voice of China" address current hot topics head-on and provide clear explanations of the strengths of the China's system, theories, Chinese path, and culture. These programs help to boost the confidence of young people. The documentary "Thousand Villages Demonstration and Ten Thousand Villages Renovation," currently in production, will showcase the significance of Xi Jinping Thought on Eco-Civilization through the transformation of numerous villages in Zhejiang province.

Radio and television should be the recorders of the great era. Radio and television has always been on the frontline to record the footnotes of the progress of the times, from the critical moments represented by the 70th anniversary of the founding of the People's Republic of China (PRC), the 100th anniversary of the founding of the CPC, the 20th CPC National Congress, the Beijing 2022 Winter Olympic Games, to the processes of major national causes such as poverty alleviation, rural revitalization, invigorating the country through science and technology, and innovation-driven development. During this summer, many places in China were hit by extreme natural disasters such as typhoons and heavy rainfall, and a large number of radio and television journalists went to the frontlines to carry out reports and recorded the spiritual strength of unity in various communities. Over the past few days, in the lead-up to the 19th Asian Games Hangzhou, we adopted a series of measures to ensure the Games could reach most of the public. Notably, over 100,000 staff involved in radio and television across the country have worked on the frontlines to edit, produce, and broadcast programs, making their contributions to create a splendid event. 

Thank you.

Sansha Satellite TV:

The last few years have seen many excellent new Chinese TV dramas. TV series such as "The Age of Awakening" and "Minning Town," which we mentioned before, and "The Knockout," "Three-Body," and "Meet Yourself," all broadcast this year, have gained great popularity among the people and generated a huge response across the society. I would like to ask: What experience has been accumulated by NRTA in promoting the creation of premium TV projects? What exceptional TV dramas are set to release next?

Zhu Yonglei:

I will answer these questions. Over recent years, the original ability of domestic-made TV series has been significantly enhanced. High-quality masterpieces have emerged constantly; realistic and revolutionary-themed TV drama projects have especially reached a new level. Chinese TV drama projects have also gone to the global stage. For example, the export of Chinese TV series numbered 803, spanning 140,000 episodes in 2022.

We have explored many practices to promote the creation of premium TV drama projects. Most importantly, we should adhere to the main line of "identifying topics, telling good stories, and producing premium projects"; focus on the major strategies, major deployments, and critical moments of the CPC and the country, and gather the strength across the whole industry to create top-quality TV drama products. We have established a relevant system to encourage creators to go to the masses, organized scriptwriters, directors, and actors from TV series such as "Minning Town" and "Bright Future" to go to the grassroots level to conduct in-depth research and experience local life for extended periods. We have promoted premium TV projects to the home page of key online audio and video platforms and broadcast those projects during prime time on satellite TV. Starting this year, TV series such as "The Knockout," "Three-Body," "Meet Yourself," and "The Long Season" have been broadcast during prime times on important platforms and further promoted the enjoyment of TV series across the country. We have also established cooperation mechanisms with the Chinese Writers Association and the Chinese Academy of History to vigorously promote excellent literary works and the history of Chinese civilization to become a treasure house of resources for the creation of premium projects. We have also established a mechanism for unveiling and listing topics and encouraged the participation of all film and television institutions across the country, which has greatly stimulated the vitality of innovation and creation in the industry. We have formulated and released the Production Standards for Master Tape of TV Series, the Production and Operation Standards for TV Series and Online Series Crews (trial), and the Model Text of the Actor Employment Contract (trial). We have also set up national laboratories for innovation in TV series production technology to promote innovative breakthroughs in production technology, production standards, and production norms. All of these efforts mentioned above have created a sound environment and provided important support and guarantees for the creation of premium TV projects.  

Recently, centering on the 70th anniversary of the victory in the War to Resist U.S. Aggression and Aid Korea, we have launched a new TV drama, "Winter and Lion." Many other TV series, such as "Battle of Shangganling" and "Scout Hero," will be aired soon. We will also roll out an array of TV series, such as " Kun Peng Ji Lang" (The Roc Breaking the Waves), "Wen Cang Mang" (Questioning the Boundless), and "Yu Xue Rong Guang" (The Blood-soaked Glory) to commemorate the 130th anniversary of the birth of Mao Zedong. Centering on the topics that include the 75th anniversary of the founding of the PRC, the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression, and the 90th anniversary of the victory of the Red Army's Long March, we have accelerated the production progress of key TV projects, such as "Wei Da De Chang Zheng" (The Great Long March), "Zui Wan Qiang De Di Kang" (The Toughest Resistance), and "Feng Yu Baoqingli." We have also focused on the planning and guidance of Belt and Road-themed TV series, such as "Welcome to Milele Village," "Born to Be Alive," " Bloom Life," and "Ri Guang Zhi Cheng" (City of Sunshine) as well as the themed TV series "Snow World," to display the comprehensive revitalization of Northeast China and constantly meet the diverse and high-quality spiritual and cultural needs of the people.

Thank you.

Beijing Youth Daily:

The issue of repeated television charges has always been of great concern to all. The NRTA has started a rectification campaign regarding this issue. Could you please detail the plans for the campaign and how the work is progressing? Thank you.

Cao Shumin:

Thank you for your questions. It's indeed an issue of great concern to all. Mr. Yang will answer these questions.

Yang Guorui:

I will answer your questions. Both the central government and the people are highly concerned about the rectification campaign against the issue of repeated television charges. The NRTA thoroughly implements a people-centered governance philosophy, makes a resolute decision, and harnesses the strength of the entire industry to address the issue as a mandatory initiative, a heartfelt project, and a systematic endeavor. At present, we have formed three major systems: cable TV transmitted through cable TV networks, IPTV transmitted through the private network of telecom operators, and the OTT TV transmitted through the internet. On the one hand, this has greatly satisfied the diverse needs of the people. On the other hand, it has caused the issue of repeated charges due to the involvement of various kinds of market players and brought trouble to the people.

We have recently established a working group to address outstanding issues of strong public concern, such as the excessive number of subscription options, the diversity of fee-charging entities, and the lack of transparency in charges. The working group has inspected all seven OTT TV integration platforms, 22 TV manufacturers, and IPTV and cable TV services in 31 provinces, autonomous regions and municipalities. Nearly 10,000 subscribers have completed a questionnaire. We have been in communication with relevant departments, including the Cyber Administration of China, the Ministry of Industry and Information Technology (MIIT), the State Administration for Market Regulation, and the China Consumers Association, while also listening to the opinions of all parties involved in the industry chain and considering their advice. Based on the information collected, we aim to address these issues through overall planning, starting with easy tasks and then moving to difficult ones, with each step forward led by pilot programs. And this work will be completed through three stages:

In the first stage, we will gradually reduce the number of subscription options by 40% and enhance transparency for consumers within the year. In the second stage, we will set norms for TV services and charges in the first half of next year. In the third stage, we will enhance the long-term management mechanism for three major business systems, including cable TV, IPTV, and OTT by the end of next year, to effectively prevent repeated and irregular charges and their resurgence.

Currently, we have launched our first-stage work and selected seven pilot units, including Beijing Gehua CATV Network, Shandong Network, Shanghai Branch of China Mobile, Guangdong Branch of China Telecom, Jilin Branch of China Unicom, Xiaomi TV, and Hisense TV, all of which are involved in the three major business systems. We have provided guidance and facilitated the implementation of concrete measures in these enterprises to reduce or combine subscription options, enhance subscription management pages, and improve the free-of-charge section. Among these, Gehua CATV has reduced 14 options to five, while Guangdong Telecom IPTV has reduced the original 10 film and TV subscription options to just one. New Xiaomi TV sets and Hisense TV sets no longer come preloaded with pre-installed APKs.

We anticipate that by the end of October, the pilot units will have reduced subscription options by more than 40%. In November and December, we will launch a nationwide campaign to achieve an overall 40% reduction, effectively preventing repeated and irregular charges. Moving forward, we welcome everyone to actively participate, tune in to their TVs, and monitor our efforts.

Thanks. 

Changjiang Daily:

In recent years, it has become increasingly difficult to operate the TV. Many people believe that there are too many remote controls and buttons, often causing them to be unable to find the live channels and programs they prefer. This is particularly unfriendly for the elderly. My question is whether the NRTA has any measures to improve these matters.   

Cao Shumin:

Thank you for your question, which reflects the thoughts of our audience. We are actively addressing this issue, and Mr. Zhu is responsible for this matter. He will provide an answer to your question.

Zhu Yonglei:

I will address the question. At times, people have reported that it is difficult to locate live channels due to several different remote controls and confusing buttons. Moreover, there are too many cables connecting the TV and set-top box. The NRTA places significant importance on addressing these issues of public concern, seeing it as part of people's wellbeing and making every effort to improve the situation. Based on our investigations and research, we have introduced a specialized improvement plan and collaborated with the MIIT to issue relevant circulars and implement a series of measures.

For example, we have launched a pilot project to upgrade the software of cable TV and IPTV set-top boxes, ensuring that people can directly watch a live channel when they turn on the box. Additionally, we are working on positioning the window for live channels prominently on the interactive page. Across the country, over 20 million cable TV and IPTV set-top box subscribers can now directly watch a live channel when they turn on the TV and box. Among them, more than 5 million cable TV subscribers are in the pilot city Beijing. By the end of this year, 80% of cable TV subscribers and 85% of IPTV subscribers will be able to directly watch a live channel when they switch on the TV. We also encourage cable TV and IPTV operators to simplify the replay operation. Certain advanced smart set-top boxes can also quickly awaken from standby mode, reducing boot-up time.

We have collaborated with the MIIT and encouraged TV manufacturers to research and develop smart TV sets that can automatically prioritize live channels when powered on. Additionally, we have convened R&D institutions and manufacturers to streamline and reduce remote controls, exploring various methods to integrate the functions of TV sets and set-top boxes into a single remote control, and ultimately creating all-in-one receiving devices.

At the same time, we also actively organized and guided cable TV and IPTV platforms to increase the supply of free high-quality content. For example, Beijing Gehua Cable recently launched a free "classics" section. Viewers in Beijing can watch top classic TV series such as "The Water Margin," "Romance of the Three Kingdoms," "A Dream of Red Mansions" and "Journey to the West," which have been restored in high-definition on the Gehua Cable platform. 

Next, we will continue to promote the specialized improvement plan, take concrete actions to address the problem of complicated TV viewing operations and continuously improve the viewing experience for the users.

Thank you.

Science and Technology Daily:

What progress and achievements have been made in domestic high-definition (HD) and ultra-high-definition (UHD) television? What are the next considerations in promoting the development of UHDTV? Thank you.

Zhu Yonglei:

HDTV and UHDTV is a hot topic nowadays. In recent years, we have taken the promotion of HDTV and UHDTV development as an important measure for the high-quality and innovative development of the radio, television, and online audio and video industry, and has achieved certain results.

In terms of policy support and guidance, last year the NRTA issued Guidelines on Further Accelerating the Development of HDTV and UHDTV, which stipulated that by the end of 2025, TV stations at and above the prefecture level and qualified county-level TV stations should fully complete the transition from standard-definition to high-definition, basically shut down standard-definition channels, HDTV should become the basic TV broadcast format, and UHDTV channels and program supply should take shape. This sends a clear message to the industry with an explicit timetable, which effectively promotes the supply of HD and UHD content, network construction and availability of terminals. The development of domestic HDTV and UHDTV has effectively promoted relevant industrial development. According to statistics, the scale of China's HDTV and UHDTV industry exceeded 3 trillion yuan last year.

In terms of UHDTV content production, eight 4K resolution channels and two 8K resolution channels have been launched across the country. The UHD production and broadcasting system has been basically established. Some radio and television production and transmission institutions have produced and reserved tens of thousands of hours of UHD programs. Major online audio and video platforms have opened both 4K and 8K sections, providing UHDTV series, variety shows and other programs.

In terms of HD and UHD program transmission, we have carried out the construction of a national network of cable TV and fiber-optic and IP-based upgrades, accelerated the replacement and intelligent updates of UHD set-top boxes, and increased the coverage of IPTV UHD set-top boxes. China's direct-to-home (DTH) platform has developed rapidly in HD, and has provided 31channels of HD programs to DTH users across the country.

In terms of key technology research and development, we are actively promoting independent research and development of UHD key technology, standards, and independent production of equipment. China has made important breakthroughs in key technical fields such as high dynamic range, three-dimensional sound, UHD smart TV operating systems, and high-efficiency video coding, and has put them into industrial operation.

Going forward, the NRTA will encourage TV stations at all levels, and film and TV production institutions to actively use the UHDTV format to produce programs, support TV stations in launching UHD channels, improve the transmission coverage of UHD programs, and better meet the people's new needs and expectations for a better life.

Thank you.

Phoenix TV:

In June 2022, China Broadnet held the launch ceremony for 5G network services. Over the past year, how has the development of 5G broadcasting progressed? Also, what are the key areas of focus for the next steps in the integration of national cable TV networks and the integrated development of 5G broadcasting? Thank you.

Cao Shumin:

Thank you for the questions. It has been more than a year since China Broadnet launched 5G services, and there has been considerable interest from various parties. I would like to invite Mr. Yang to answer the questions.

Yang Guorui:

Thank you to the reporter for your interest. Promoting the integration of national cable TV networks and the integrated development of 5G broadcasting is one of the key tasks outlined in the 14th Five-Year Plan. By the end of 2020, China Broadnet successfully completed the integration of 23 non-listed and one listed provincial network companies, achieving new results in unifying networks nationwide. On June 27, 2022, China Broadnet officially launched 5G services, establishing a new development pattern of China's broadcasting networks that integrates cable services and 5G technology.

This past year, the development of 5G broadcasting has started well. There has been ongoing deepening of the "co-construction and sharing" strategic cooperation with China Mobile. Through this collaboration, a total of 578,000 700MHz 5G base stations have been built, and the total number of usable base stations (including 700MHz base stations and 5G/4G base stations shared with China Mobile) now exceeds 3.8 million. This achievement has enabled continuous coverage in administrative regions at and above the township level and effective coverage in rural areas. The number of China Broadnet's 5G users has surpassed 18 million. By the end of June 2023, China Broadnet had opened and launched three nationwide basic business network platforms: the fixed voice service network, the internet backbone network and the content integration platform. This has further enhanced the communications model integrating cable services and 5G technology. 

Next, the NRTA will guide China Broadnet to pursue a path of characteristic and differentiated development, focusing on the following five areas:

First, strengthening our foundation and upgrading networks. We will guide China Broadnet to continue deepening cooperation with China Mobile in co-construction and sharing, continuously optimizing the urban and rural 5G broadcasting network coverage, accelerating the transformation and upgrading of the cable TV network, enhancing the deep integration with cloud computing, data centers and edge computing, improving the end-to-end performance of the cable TV network, and creating a new type of broadcasting network.

Second, achieving fixed-mobile convergence and building a comprehensive business operation system. We will guide China Broadnet to coordinate the utilization of the four major business network platforms — namely the 5G service network, fixed voice service network, internet backbone network, and content integration and broadcast control platform — and to develop a comprehensive business model integrating cable TV, 5G technology, broadband network, and voice service with everything possible, to better cater to people's diverse and multi-level spiritual and cultural needs.

Third, upholding tradition while innovating and cultivating distinctive advantages in content. We will guide China Broadnet to strengthen construction of the dedicated national cultural network, focus on gathering various content resources, reconstruct the process of content dissemination and distribution, and innovate product forms. By using unique content to drive business upgrades, the aim is to build a new communications pattern that spans screens, domains, networks and terminals. 

Fourth, optimizing services and improving customer service efficiency. We will guide China Broadnet to continuously improve the combination of online and offline channels and customer service systems, further enhance the quality of broadcasting network products, improve capabilities to provide better services, enhance the precision and intelligence of services, and strive to elevate the user service experience.

Fifth, deepening integration and optimizing the operation pattern of a unified network. We will guide China Broadnet to further unify networks at both national and provincial level, and improve the operational management system based on "unified construction, unified management, unified standards and unified branding" to achieve scale and efficiency and thus realize high-quality development.

Thank you.

China Daily：

A few days ago, the SCO TV Festival was held in Nanjing. The NRTA has organized a lot of activities related to international exchanges. Can you provide details regarding the NRTA's upcoming plans and initiatives for furthering international exchanges in the field of radio and television? Thank you.

Yang Guorui: 

Thank you for your attention. This year's popular TV series, "Three-Body" and "The Knockout," which many of you may have watched, have ignited a television series craze and received positive reviews as they were broadcast overseas. This serves as a testament to the globalization of domestic audiovisual productions. In recent years, the NRTA has continued to promote friendly exchanges and pragmatic cooperation between China and other countries in the field of audiovisual services.

First, we have established mechanisms and platforms. We have organized a series of multilateral meetings, such as the "China-Arab States Forum on Radio and Television Cooperation" and the "China-Africa Media Cooperation Forum," initiated such brand activities as "Audio-Video China, Global Screening," "Sino-foreign Audiovisual Week," and "Sino-foreign Short Video Competition," and signed 179 cooperation agreements or memorandums with more than 90 countries, thus setting up platforms for policy communication and pragmatic cooperation.

Second, we have been better at telling China's stories. In recent years, numerous domestically produced audiovisual productions have been broadcast abroad, with the influence of realistic-themed dramas steadily growing. For example, the TV series "Minning Town" has resonated widely with international audiences, showing the tenacity and confidence of the Chinese people in eradicating poverty and striving for a better life. Through these audiovisual works, we have presented a China that is credible, appealing, and respectable.

Third, we have promoted industrial cooperation. Through facilitating dialogues between Chinese and foreign industries, improving incentive policies, supporting the development of export hubs, and participating in famed international film and television festivals and exhibitions, we have consistently enhanced the scale and quality of China's international audiovisual cooperation. As a result, China has become an important force in the global audiovisual industry.

Fourth, we have made more international friends. Our circle of international media friends is constantly expanding. In recent years, over 6,000 media professionals from more than 150 countries and regions have come to China for exchanges and discussions. Additionally, more than 700 groups of media organizations from countries along the Belt and Road have shot programs in China. These exchanges have allowed participants to immerse themselves in the vibrant atmosphere of China in the new era, helped strengthen people-to-people connectivity, and solidified the public support and social foundation for people-to-people exchanges and audiovisual cooperation between China and other countries.

Fifth, we have deepened mutual learning among civilizations. We have adhered to the dual principle of "bringing in" and "going global," actively introducing outstanding TV programs from around the world. This year marks the 10th anniversary of the BRI, and the NRTA is organizing activities on overseas audiovisual programs under the theme "Colorful Audiovisual Shows, Shared Silk Road," selecting more than 60 excellent audiovisual programs from over 30 countries, including TV series, animations and documentaries, for exhibition to celebrate the diversity and mutual appreciation of civilizations.

Next, we will continue to actively expand our circle of friends within the global media, continuously enhance China's influence in the audiovisual field worldwide, and contribute more towards building a global community of shared future and promoting a new form of human advancement.

Guangming Daily:

Tomorrow is the Mid-Autumn Festival. As we know, Henan Radio and TV Station consistently presents the "Chinese Festival" series of programs each year to celebrate the festival. Among them, "Night Banquet in Tang Dynasty Palace" and "Flying Apsaras in Longmen Grottoes" are beloved by viewers and have become internet sensations. With the approaching Mid-Autumn Festival and National Day holiday, could you please highlight the programs on offer? What measures will the NRTA implement to promote the development of radio, television, and online audio and video programs? Thank you.

Cao Shumin:

As the Mid-Autumn Festival and National Day holiday approaches, people eagerly anticipate the programs that will be broadcast. I would like to invite Mr. Zhu Yonglei to provide insights into this matter.

Zhu Yonglei:

Thank you. Henan Broadcasting System is scheduled to broadcast the highly anticipated show "Magical Trip on Mid-Autumn Festival" during this year's Mid-Autumn Festival. The station has presented the "Chinese Festivals" series during important festivals for several years. With the upcoming Mid-Autumn Festival and National Day holiday, radio, television, and online audio and video programs have become a cultural feast anticipated by the public. China's radio and television stations, as well as online audio and video platforms, have arranged various programs for viewers during the holiday. In addition to the previously mentioned program by Henan Broadcasting System, China Media Group, along with major satellite TV channels, will also deliver exciting shows such as the "Mid-Autumn Traditional Opera Gala," "Mid-Autumn Traditional Music Concert," and "A Thousand Years in Chang'an." During the National Day holiday, major satellite TV channels and online audio and video platforms will present a variety of entertainment programs, documentaries, and animated films, including "The City of Museums," "Time Concert," "The Chinese Restaurant," "Melodies Across Time and Space," and "Journey through China: The Yellow River." National radio, television, and new media organizations will collaborate on "Splendid China," a large-scale integrated livestreaming event, allowing the audience to experience the landscapes and prosperity of the country without leaving their homes during the holiday.

Since the 18th CPC National Congress, radio, television, and online audio and video service providers have thoroughly implemented General Secretary Xi Jinping's important discourse on the development of literature and art. They have increased the supply of programs with high-quality content, providing people with richer cultural nourishment. They have already launched various variety shows such as "Chinese Poetry Conference," "China in Classics," "Everlasting Classics," and "Chinese Festivals," as well as documentaries like "Ling Hang," "Faith Makes Great," "The Place of Birth," "Me and My New Era," and "Rooting." Additionally, there are animated films like "Yao-Chinese Folktales" and "Da Yu." These cultural products have been warmly received by audiences.

Indeed, the current supply of high-quality content on radio and television remains insufficient, and this issue is prominent. We must further strengthen the supply. Next, we will deepen the structural reform on the supply side of content and strive to present more outstanding works. First, we will emphasize cultural inheritance. We will adhere to creative transformation and innovative development and introduce works such as "Exploring China through Ancient Documents," "Poetry and Painting of China: Eternal Masterpieces," "Great Jiangnan," and "Festivals with National Colors." These programs will promote fine traditional Chinese culture and showcase the modern Chinese civilization. Second, we will carry forward our revolutionary traditions and heritage. Programs like "Chairman Mao Zedong" and "The Revelation of the War to Resist U.S. Aggression and Aid Korea" will be launched, allowing people to reminisce about the revolutionary years through audiovisual presentations. Third, we will focus on depicting the vibrant aspects of life. We will introduce programs centered around people's lives, such as "Say Hello to Life," "Countryside on the Tip of the Tongue," "Here We Are in the Sunshine," and "The Happiness of Hardworking Individuals." Fourth, we will showcase the beauty of China. Programs like "Grand Canal," "Mount Tai," and "Our National Parks" will be presented to display the amazing landscapes of our country and showcase the achievements of ecological conservation, depicting a harmonious coexistence between humans and nature. 

Thank you.

Chen Wenjun:

One last question, please.

Xinhua News Agency:

Promoting media convergence and enhancing the development of new media have been prominent topics in recent years. I would like to inquire about the efforts made by the NRTA in these domains.

Cao Shumin:

As you know, with the advancement of 5G technology in China, mobile phones have emerged as the primary means to access information and enjoy cultural lives. Therefore, it is paramount to develop new media and promote media convergence. The NRTA has adopted a dual approach, improving traditional radio and television services while advancing the innovative development of new media. These efforts encompass new media of traditional radio and television service providers, as well as numerous online audio and video platforms. Deepening the convergence of traditional and new media and improving the all-media communication system are a strategic deployment made by the CPC Central Committee. In recent years, under the leadership of the Publicity Department of the CPC Central Committee, the NRTA has pushed the radio and television broadcasting's main force to launch relevant initiatives.

First, we have focused on playing a demonstrative and leading role in promoting the in-depth integration of radio and television media. Over the past five years, we have conducted activities to promote the selection of new brands in national radio and television media integration, forming a number of influential and distinctive new media platforms such as yangshipin.cn (CCTV), Mango TV, BesTV, and ZJSTV. We have guided eight radio and television organizations in regions such as Beijing-Tianjin-Hebei, Shanghai, Jiangsu, Zhejiang, Hunan, Hubei, Shaanxi, and Suzhou to set up radio and television media integrated development and innovation centers to conduct theoretical research, model exploration, technology application, and project incubation. In addition, we have paved new paths and broken new ground for the integrated development of radio and television media. We have held China radio and television media integrated development conferences on a regular basis in order to promote successful practices and experiences regarding integrated development. To foster collaboration and synergy in the industry, we have established the national radio and television new media alliance in June of this year. This alliance aims to unite the strengths of various media outlets to create a 'united fleet of radio and television' for online publicity. A total of 42,000 new media accounts were opened by national radio and television media, forming a new media matrix group. With such a large number of accounts, if they were operated separately, the broadcasting power would be limited. So, how can we aggregate these accounts? In order to better leverage the potential and collective strength of these resources, we have selected 100 radio and television new media brands, such as CCTV, Beijing Time, and Shanghai Kankan News, and formed the national radio and television new media alliance, which currently has a total of nearly 2 billion followers. By combining the content advantages of radio and television content with the advantages of internet communication and strive to build the alliance into a platform for thought leadership, public opinion guidance, collaboration and sharing, and development empowerment, using input from high-end think tanks. Since its establishment on June 28 of this year, the alliance has published a total of 550 articles, accumulating over 3.5 billion readings.

Here are two examples. Recently, in order to celebrate the sixth China Farmers' Harvest Festival, the radio and television new media alliance launched a large-scale integrated media live broadcast titled "Harvest." The broadcasting stations of five major grain-producing provinces, including Heilongjiang, Henan, Hebei, Shandong, and Anhui, took turns to broadcast live, showing their harvests and the modernization of agriculture. The correspondents walked into the fields and took the audience on an immersive journey to experience the magnificence of China's immense grain reserves and the joy of harvesting, capturing rice fields stretching for miles and abundant fruits and vegetables. In addition, the 100-member organization of the national radio and television new media alliance simultaneously livestreamed the event across various platforms, including their apps and official accounts on Douyin, Kuaishou, Weibo, Bilibili, WeChat, etc. The hashtag #Harvest quickly climbed up the trending topics list, with each livestream attracting millions of viewers. The total viewership exceeded 200 million. The second example will be carried out soon. During the National Day holiday, the NRTA will introduce a large-scale integrated media live broadcast program called "Prosperous China, Beautiful Homeland." In addition to providing a wonderful daily live broadcast, a "slow live broadcast" will also be available on new media platforms, showcasing Chinese festival scenes in real-time, presenting the audience with magnificent mountains and rivers, and capturing the atmosphere of a prosperous China. We are looking forward to this and hope that everyone will tune in during the National Day holiday.

At the same time, we have been actively promoting the construction of an all-media communication system. This involves pioneering innovative coordination mechanisms to establish a development pattern that integrates large and small screens, encourages interaction between long and short videos, and promotes collaboration between traditional radio and television media and online audio and video platforms. Our aim is to jointly enrich a deeply integrated and mutually beneficial audio and video ecosystem. This specifically relates to the cooperation between traditional radio and television and their new media counterparts, the coordination between long videos such as TV dramas and documentaries and short videos on the internet, and the collaboration between traditional radio and television media and commercial platforms such as iQIYI, Youku, and Tencent, etc., so that they can work in unison.

Next, we will continue to focus on "establishing an all-media communication system that prioritizes content development, is supported by advanced technology, and is secured by innovative management.' We will systematically plan and promote the construction of all-media communication systems in the fields of radio, television, and online audio and video, thereby shaping a new mainstream media pattern.

Tomorrow is the Mid-Autumn Festival, and the National Day holiday is also approaching. I would like to take this opportunity to wish all media friends and the audience in front of their televisions a happy holiday. I also hope that everyone will continue to pay attention to and support the work of radio, television, and online audio and video in the future. Thank you. 

Chen Wenjun:

Thank you, Ms. Cao. Thank you to Mr. Zhu and Mr. Yang and friends from the press. I would like to join Ms. Cao by wishing you a good festival and holiday! Goodbye.

Translated and edited by Zhang Rui, Wang Wei, Xu Kailin, Liu Sitong, Cui Can, Yang Xi, Qin Qi, Wang Yanfang, Yan Bin, Huang Shan, Liu Caiyi, Zhang Tingting, Yuan Fang, Wang Ziteng, Zhang Junmian, Yan Xiaoqing, 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. Wang Yi, member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and minister of foreign affairs

Mr. Guo Yezhou, deputy director of the International Department of the CPC Central Committee

Mr. Cong Liang, vice chairman of the National Development and Reform Commission

Mr. Li Qun, vice minister of culture and tourism and administrator of the National Cultural Heritage Administration

Mr. Zhao Fengtao, vice chairman of the China International Development Cooperation Agency

Moderator:

Mr. Sun Yeli, deputy director of the Publicity Department of the CPC Central Committee and minister of the State Council Information Office

Date:

Sept. 26, 2023

Sun Yeli:

Ladies and gentlemen, good morning. Welcome to this press conference.

Today, the State Council Information Office has organized this press conference to release a white paper titled "A Global Community of Shared Future: China's Proposals and Actions," and will now introduce and explain its main content. 

The white paper thoroughly implements Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Xi Jinping Thought on Diplomacy. It systematically lays out the general context, rich implications, practical pathways and global significance of establishing a global community of shared future. The white paper showcases China's proactive actions and contributions in fostering a global community of shared future, and further calls upon the rest of the world to promote the common values of humanity, jointly build a global community of shared future and strive for a better world.

At around 22,000 Chinese characters, the white paper consists of a preface, main body and conclusion. Specifically, the main body is divided into five sections: "Humanity at a Crossroads," "An Answer to the Call of the Times and a Blueprint for the Future," "Deep Roots in History and Cultural Traditions," "Direction and Path" and "China's Action and Contribution."

The white paper is published in eight languages — Chinese, English, French, Russian, German, Spanish, Arabic and Japanese — by the People's Publishing House and Foreign Languages Press. It is available at Xinhua Bookstores across the country.

To help you better understand the document, we have invited Mr. Wang Yi, member of the Political Bureau of the CPC Central Committee and minister of foreign affairs; Mr. Guo Yezhou, deputy director of the International Department of the CPC Central Committee; Mr. Cong Liang, vice chairman of the National Development and Reform Commission; Mr. Li Qun, vice minister of culture and tourism and administrator of the National Cultural Heritage Administration; and Mr. Zhao Fengtao, vice chairman of the China International Development Cooperation Agency, to attend today's press conference. They will brief you on related information and then take your questions.

First, I'll give the floor to Mr. Wang Yi to introduce the white paper.

Wang Yi:

Distinguished guests, colleagues and friends:

It gives me great pleasure to join you today to witness the release of the white paper "A Global Community of Shared Future: China's Proposals and Actions."

The white paper is a significant document that systematically lays out the theoretical base, practice and development of a global community of shared future. It also serves as an important measure to thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Xi Jinping Thought on Diplomacy. I hope the release of the document can enable people from all walks of life and the international community to grasp the significance of a global community of shared future in a more comprehensive manner, and help them further understand the profound objectives of major-country diplomacy with Chinese characteristics.

Dear friends, this year marks the 10th anniversary of President Xi Jinping's proposal of a global community of shared future. Ten years ago, in face of the profound question raised by the world, by history and by the times of "What has happened to the world and how should we respond?" President Xi Jinping creatively proposed the establishment of a global community of shared future using his broad strategic vision, extraordinary political wisdom and strong sense of mission as a leader of a major country and Party. The proposal has charted the correct path for the world at a major historical turning point, and built strong consensus for international cooperation during turbulent times.

Over the past decade, through the personal involvement and advocacy of President Xi Jinping, the development of a global community of shared future has been transformed from a concept into actions. Seeing growth in strength, the proposal has adhered to the right path forward amid shifting global dynamics, and forged ahead with resolve despite challenges and risks. It has achieved remarkable practical progress and demonstrated a pioneering thought with the power of truth.

Over the past decade, the conceptual attributes of a global community of shared future have been gradually improved. From state visits to multilateral summits, President Xi Jinping has systemically elaborated on this major concept at multiple international events, and deepened the international society's understanding of it. As a result, a well-conceived theoretical system based on the Global Development Initiative (GDI), the Global Security Initiative (GSI) and the Global Civilization Initiative (GCI) has been developed. The proposal's general objectives are to build a world of lasting peace through dialogue and consultation; a world of common security for all through joint efforts; a world of common prosperity through win-win cooperation; an open and inclusive world through exchanges and mutual learning; and to make our world clean and beautiful by pursuing green and low-carbon development. It pursues the common values of humanity, follows the fundamental path of fostering a new type of international relations, and uses the Belt and Road Initiative (BRI) as a practical platform.

Over the past decade, China has made significant achievements in diplomatic practices aimed at building a global community of shared future. China has established various forms of a community of shared future with dozens of countries and regions, whether bilateral or multilateral, regional or global. The Global Development Initiative and the Global Security Initiative have garnered support from over 100 countries. The Global Civilization Initiative received positive feedback from several countries shortly after its proposal. In responding to significant global challenges in fields such as health, climate change, and cybersecurity, President Xi Jinping has also presented the Chinese solution of building a global community of shared future, contributing wisdom and strength to address global challenges properly and improve global governance.

Over the past decade, the international consensus on building a global community of shared future has been growing. The vision of a global community of shared future has been included in U.N. Assembly Resolutions for six consecutive years and incorporated into the resolutions and declarations of multilateral mechanisms such as the Shanghai Cooperation Organization (SCO) and BRICS. It has garnered the international community's understanding and support, especially among developing countries. More and more countries and people realize that this vision reflects the pursuit of peace, justice, and progress, creates the greatest synergy for building a better world , and holds great significance in promoting unity and cooperation among countries to create a better future for humanity.

Friends, what was sown in spring will yield rich fruits in autumn. The successful practices of the past decade have once again proven that building a global community of shared future is an essential choice that aligns with the general trend of history and promotes human development. As world history unfolds into the 21st century, humanity is increasingly breaking down the boundaries of geography, ethnicity, and culture, residing in the same global village. With our interests and security so closely intertwined, the world has forged a community of shared interests, responsibilities, and future. Despite recent challenges such as trade wars, the COVID-19 pandemic, and geopolitical crises, globalization continues to advance amid twists and turns. The world economy remains an ocean, refusing to retreat into isolated lakes and rivers. People from all nations recognize that, in the face of the deepening global crisis, no country can prosper in isolation or meet all challenges independently . Like passengers aboard the same ship, only through solidarity can we steer clear of the historical cycles of war and peace, rise and fall, order and chaos.

Building a global community of shared future is the right direction to align with the current trend of the times and improve global governance. All epoch-making theories must adapt to the needs of the development and progress of the times. The old thinking of hegemonism and power politics has long been unable to adapt to the new reality of the 21st century. The international community strongly recognizes that in order to avoid a new Cold War and escape the dilemma of a clash of civilizations, we must make breakthroughs in theories of international relations. The vision of building a global community of shared future departs from traditional international relations theories, advocating that peaceful development should prevail over conflict and confrontation, common security should replace absolute security, and mutual benefit should replace zero-sum games. It calls for preventing clashes between civilizations through exchanges and mutual learning and protecting our planet through ecological progress. This vision has constructed a new model for theories of international diplomacy and contributed Chinese wisdom to the reform of global governance.

Building a global community of shared future is integral to our efforts to adhere to peaceful development and remain committed to win-win cooperation. The vision of a global community of shared future originates from the best of traditional Chinese culture, such as pursuing the common good and peace for all, and embodies the Chinese nation's longing for a fine human society since ancient times. Currently, promoting the construction of a global community of shared future has been enshrined in China's Constitution and the Constitution of the Communist Party of China, making it one of the essential requirements of Chinese modernization . This fully demonstrates that China is committed to pursuing a modernization path that is different from traditional Western powers and regards peaceful development as our strategic choice. In the process of promoting the construction of a global community of shared future, China will integrate its own development into the common development of all countries, closely linking its own future with the future of humanity. It will continue to provide new opportunities for the world with its own new development and inject stronger impetus into and make greater contributions to humanity's peace and development.

The world today is undergoing profound changes unseen in a century. Geopolitical competition is becoming increasingly fierce, the Cold War mentality is reemerging, the bullying acts of powers are becoming more harmful, and non-traditional security challenges such as terrorism, cyber-attacks, transnational crimes, and biosecurity continue to rise. Humanity is once again at a crossroads, facing a consequential choice for its future. What kind of world should we build, and how should we build this world? These are questions we must answer correctly. The lessons of two hot (world) wars and a cold war are not distant memories. There is no future for bloc confrontation and zero-sum games. The future of people worldwide lies in building a global community of shared future. Light will not come automatically; we need to work together to create the future.

We should forge greater synergy to achieve lasting peace. The key lies in respecting the sovereignty and territorial integrity of all countries, acknowledging each other's core interests and major concerns, and recognizing the development paths and social systems independently chosen by the people of different countries. We should actively embrace genuine multilateralism, developing a more equitable and orderly process of global multipolarity. We should reject camp-based confrontation and exclusive cliques, opting for an approach to international relations characterized by "dialogue over confrontation, partnership over alliance."

We should develop a conducive environment for common security. The key lies in promoting a common, comprehensive, cooperative, and sustainable security outlook. Therefore, we should embrace the approach of addressing differences and disputes between countries through dialogue and consultation, give due consideration to each other's legitimate security concerns, and oppose the arbitrary expansion of military alliances and the encroachment on the security space of other nations. We should also make more efforts to coordinate and uphold security in both traditional and non-traditional domains, with the aim of expediting dialogues and cooperation in areas such as biosecurity, cybersecurity, data security, and artificial intelligence security, working together to mitigate risks.

We should instill greater confidence in common development. The key lies in steering and adhering to the correct course of globalization, opposing any attempts towards decoupling, supply chain disruption, or "small yard, high fence." We should also resist protectionism and unilateral sanctions. With such efforts, we can develop a fair, reasonable, and transparent international economic and trade regulatory system. There is a need to prioritize development-related issues at the core of the international agenda, better integrating developing countries into the global division of labor and ensuring that people from all nations can access the benefits of development in an equitable manner. Next month, China will host the third Belt and Road Forum for International Cooperation, and we view it as an opportunity to engage in discussions and pursue common development with all parties.

We should provide sustainable driving forces for mutual learning among civilizations. The key lies in adhering to the principles that no civilization is superior to others and that values should not be used as political tools or weapons of confrontation. We should champion equality, mutual learning, dialogue, and inclusiveness between civilizations and advocate for peaceful coexistence and harmonious development of different civilizations. We should reject the so-called binary opposition of "democracy versus authoritarianism" and the imposition of one's own values and models on others. By doing so, we can work hand in hand to achieve the creative development of civilization, solidify public support for our relations, and promote mutual understanding and friendship among people of all countries.

We should take more actions to protect the ecology. The key lies in embracing the concept of harmonious coexistence between humanity and nature, recognizing the significance to respect, adapt to, and safeguard the environment. We should strive to make green development resonate with the public to achieve a sustainable global ecological conservation that leads to a brighter future. We must continue to pursue low-carbon, circular, and sustainable development, collaborating to construct a fair and equitable system of global climate governance for mutually beneficial cooperation. In doing so, we can collectively work to protect our planet for the sake of human existence.

Dear friends,

In two days, we will celebrate the Mid-Autumn Festival, a traditional Chinese holiday. As such, I would like to extend my best wishes to all of you. The full moon on this festival symbolizes reunion and harmony, reflecting the Chinese belief in a world where "all under heaven are one family," and highlighting the spirit of our times – harmonious coexistence in a global community with a shared future. We are ready to work together with all parties, promoting unity and cooperation, and adhering to the vision of building a global community with a shared future. Together, we aim to build an open, inclusive, clean and beautiful world that enjoys lasting peace, universal security, and common prosperity. Thank you.

Sun Yeli:

Thank you, Mr. Wang. The floor is now open to questions. Please identify the media outlet you represent before raising your questions.

CCTV:

It is a major concept proposed by President Xi Jinping to build a global community of shared future with a focus on the future of the world. We have learned that President Xi Jinping has also put forward the principles of amity, sincerity, mutual benefit, and inclusiveness in forging China's relations with neighboring countries, and has emphasized pursuing the greater good and shared interests with other developing nations. These principles offer a well-conceived and comprehensive framework for diplomatic efforts across various domains. How do you interpret the guiding role of Xi Jinping Thought on Diplomacy in the new era? Thank you.

Sun Yeli:

I would like to invite Mr. Wang Yi to answer your question.

Wang Yi:

You raised quite an important question. Building a global community of shared future is a key part of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and also a core concept of Xi Jinping Thought on Diplomacy. The vision of building a global community of shared future leads the trend of the times and directs human progress; the principles that we follow to develop ties with our neighboring countries — amity, sincerity, mutual benefit, and inclusiveness — are part of this vision, and so is our commitment to taking the right approach to friendship and interests to strengthen cooperation with other developing countries. These principles and initiatives that President Xi Jinping has put forward so far are the country's consistent pursuit, all demonstrating that the Chinese Communists always maintain a global vision and the Chinese nation takes it as its mission to pursue a common good for all.

Building a global community of shared future is China's answer to the call of the times. As human society develops, nations have seen their individual markets merged into a global one, their respective experiences combined into world history, and the international community turned into a global village. Meanwhile, many may ask: Should we yield to the position of strength of a country or uphold the principles of the UN Charter? Is the international order defined by individual countries safeguarded by all? Is modernization the privilege of a few countries or the legitimate rights of all? To build a global community of shared future is to address such universal and fundamental questions. We need to make it clear that all countries, big or small, are equal members of the international community and should bear their due responsibilities and enjoy equal rights. Human society should be a global community of shared future featuring peaceful coexistence, equity and justice, and win-win cooperation.

Building a global community of shared future has become the unwavering overall goal of China's major-country diplomacy. This important vision has been well reflected in the country's major-country diplomacy, including the GDI, the GSI, the GCI, and the BRI. All indicate that China is willing to strengthen solidarity and cooperation with other countries, especially developing countries, and work together with them to contribute more to human progress and modernization. We believe that guided by the vision of building a global community of shared future — like a banner that leads a bright future — China will have an increasing number of friends and partners and contribute a lot more to the world. Thank you.

The Straits Times:

A question from The Straits Times. So, China's Belt and Road Initiative has been previously accused of causing ecological damage and outsourcing pollution. So, as the BRI enters the next decade, how do you plan to address these concerns while prioritizing green development? 

Cong Liang:

Thank you for your question. Since the BRI was proposed 10 years ago, our principle of extensive consultation and joint contribution for shared benefits has gained broader support. We have achieved significant progress in policy, infrastructure, trade, financial, and people-to-people connectivity and have seen more cooperation in new fields. The BRI has become a popular global public good and cooperation platform provided by China to the world.

Following President Xi Jinping's important instructions of "pursuing a way of life and work that is green, low-carbon, circular, and sustainable," we have put green development first while advancing BRI cooperation. In terms of a policy system, we have formulated policies concerning green BRI cooperation, eco-environmental protection, and energy cooperation, and no more new coal power projects have been allowed to be built overseas. In terms of partnerships, we have launched the Initiative  for Belt and Road Partnership on Green Development and implemented the Green Silk Road Envoys Program and other cooperation plans. As for practical cooperation, Chinese enterprises have invested in a large number of clean energy projects, such as the Zhanatas wind power project in Kazakhstan, and set up wildlife passages and other facilities during the construction of the Mombasa-Nairobi Railway in Kenya. Such efforts have played an important role in promoting harmony between humanity and nature in BRI countries.

BRI projects are carried out in accordance with the principle of extensive consultation and joint contribution for shared benefits. Whether they are committed to green development, I believe that those BRI countries have a clearer understanding, and the local people are the best judges. Facts are always more persuasive than words. Faced with tangible construction achievements, the noise from attempts to slander and smear the Green Silk Road is not worth addressing, and schemes to tarnish and disrupt BRI projects under the guise of environmental protection will not succeed. We will continue to promote the construction of the Green Silk Road with all participating countries, better protect the environment, advance development, and benefit the people. We will focus on three aspects: First, we will comprehensively strengthen the foundation for green development cooperation, promote greater alignment between the Green Silk Road and the U.N. 2030 Sustainable Development Agenda, and ensure the effective implementation of major cooperation projects. Second, we will expand the space for cooperation in green development, enhance platforms like the BRI International Green Development Coalition, and collaborate on green development in key areas such as infrastructure, energy, transportation, finance, science and technology, standards, and climate change. Third, we will continually enhance the capacity for green development, maintaining the promotion of a comprehensive green transformation of economic and social development as a long-term policy. We will increase support for BRI green development and help participating countries continuously build internal momentum for green development. Thank you.

China Daily:

In recent years, the International Department of the CPC Central Committee has organized a number of global high-level party meetings and also a wide range of regional party exchanges and bilateral party dialogues. I would like to ask what achievements the CPC has made in party diplomacy, and what will you do next to further these efforts? Thank you.

Guo Yezhou:

Thank you for your questions. As you have observed, entering the new era, the CPC is actively engaged in foreign exchanges, emphasizing the crucial role of political parties, particularly ruling parties, in both national political life and international relations. This demonstrates that political parties are indispensable in advancing human civilization and progress, as well as in constructing a global community of shared future.

We are committed to leading the way and gathering party strength for building a better world. General Secretary Xi Jinping has convened and participated in various global party meetings, including the CPC in Dialogue with World Political Parties High-Level Meeting. He has engaged in extensive discussions with leaders of political parties from other countries and made sincere appeals for their participation in the construction of a global community of shared future. These efforts have ignited a sense of mission and responsibility among political parties of all kinds in different countries, inspiring them to collaborate in the pursuit of a better world.

We are committed to forging broader and closer friendships and harnessing the strength of political parties to create a new pattern of international exchanges. While deepening our relations with political parties in neighboring and developing countries, we consistently advance institutionalized exchanges with political parties in developed countries in a pragmatic manner. We also engage in innovative exchanges and cooperation among political parties within existing regional and international frameworks, actively promoting bilateral and multilateral political party activities at all levels. In doing so, the CPC's "circle of friends" has expanded. Foreign political party leaders and public figures from all sectors of society have, through various means, expressed a shared aspiration to advance the progress of human civilization and create a global community of shared future.

We are committed to deepening practical cooperation and harnessing the strength of political parties to promote global development and prosperity. Through exchanges and cooperation between political parties, we consistently advance practical collaboration in areas such as pandemic prevention and control, economic recovery, poverty reduction, food security, green development, and the digital economy. Additionally, we establish mechanisms for extensive consultations among political parties with BRI countries, promote exchanges between political parties, and create dialogue platforms between business communities across countries to achieve common prosperity.

We are committed to exchanging thoughts and ideas, pooling the strength of political parties to promote mutual learning and exchanges among civilizations. In this process, we actively respond to the expectations of political parties in different countries and promote both "welcoming in" and "going global" initiatives. We introduce Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era comprehensively and systematically, share experiences in party and state governance, and learn from the beneficial achievements of human political civilization, in order to jointly improve leadership and governance capabilities. We are committed to promoting cultural and people-to-people exchanges organized by social groups under the leadership and influence of political parties, so as to achieve high-level development of people-to-people connectivity under the BRI.

On our new journey to build a stronger nation and realize the rejuvenation of the Chinese nation, we will collaborate with political parties from all countries worldwide to further enhance inter-party exchanges and mutual learning. Together, we aspire to become the guiding leaders in national development, pioneers in forging new paths toward modernization, and advocates and practitioners of the vision of a global community of shared future. Thank you!

Papua New Guinea Post-Courier: 

Poverty is an obstacle to global development and many third-world countries' populations are living in poverty still. So, what is China's approach to helping alleviate poverty in these countries? Thank you.

Zhao Fengtao:

Thank you. Eradicating poverty is a shared ideal of humanity and is also the primary goal of the United Nations' 2030 Agenda for Sustainable Development. President Xi Jinping has always been dedicated to the global poverty alleviation cause, and the Global Development Initiative places poverty reduction at the forefront of its eight key areas. China has consistently aligned its own development with broader global development, consistently serving as an active advocate, robust promoter, and enduring contributor to the global effort to reduce poverty. We have focused our efforts on four main areas:

First, we have actively implemented demonstration projects to improve people's well-being and promoted poverty reduction experiences. China has assisted numerous developing countries by executing over 6,000 projects to improve people's well-being, effectively enhancing their local sustainable development capacities. We have introduced hybrid rice to nearly 70 countries across five continents. Meanwhile, Juncao technology has taken root in over 100 countries. Agricultural technology demonstration centers have been established and are operational in more than 30 countries. Poverty reduction demonstration cooperation projects have paved the way for impoverished rural areas to embark on the path to prosperity.

Second, we have strengthened transportation infrastructure construction to promote poverty reduction in the regions along the transportation facilities. "If you want to get rich, build a road first" is an essential aspect of China's poverty alleviation experience. Enhancing connectivity and promoting economic and social development are key priorities of the BRI. Over the past 10 years, the initiative has galvanized nearly $1 trillion of investment, and helped lift about 40 million people out of poverty. The China-Pakistan Economic Corridor has many highlights. Ethiopia now boasts the first expressway in East Africa, and the Maldives' cross-sea bridge has turned what was once considered an insurmountable barrier into a thoroughfare, fulfilling a century-old dream of the local people.

Third, we have extensively mobilized development resources to promote poverty reduction through development. President Xi Jinping proposed the Global Development Initiative and announced the integration of the Global Development and South-South Cooperation Fund, with total funding amounting to $4 billion. Under this initiative's framework, Chinese financial institutions have provided a dedicated fund of $10 billion. Furthermore, we have collaboratively established a high-quality global development project pool, accumulating over 200 projects, thereby significantly boosting global poverty alleviation efforts.

Fourth, we have shared governance experiences and promoted poverty alleviation through education. China believes "it is more important to teach people how to fish than to simply give them fish." Through education, training, and think tank exchanges, we have shared the Chinese modernization approach to poverty alleviation with other developing countries. Over time, we have trained nearly 20 million personnel for more than 160 countries. Notably, the Luban Workshop, which focuses on vocational education, has trained many new craftspeople in over 20 countries.

Dear journalists, when the world prospers, China can prosper, and when China thrives, the world becomes an even better place. China will invest more resources in global development cooperation, to accelerate the implementation of the UN 2030 Agenda and make a fresh contribution to building a global community of shared future. Thank you!

Phoenix Satellite Television:

We've noticed that recently, a batch of overseas cooperation projects has been completed and put into operation, receiving widespread acclaim from people in the related countries and regions. Can you tell us about the progress of China's overseas cooperation projects over the past decade? What roles have they played in promoting local economic and social development? What are the next steps to further promote overseas project cooperation? Thank you.

Cong Liang:

Over the past 10 years, we have adhered to Belt and Road cooperation as the main focus, followed market principles and international practices, given full play to the main role of enterprises, and jointly made positive progress in overseas cooperation projects. For example, the China-Laos Railway has been operating safely and stably for 21 months, handling more than 20.9 million passenger trips and transporting more than 25.36 million metric tons of cargo, and has been connected with the China-Europe Railway Express. Another example is the opening of the Jakarta-Bandung High-Speed Railway , which makes travel more convenient for more and more Indonesian residents and will greatly unleash local economic development potential. For another example, with investment from China Ocean Shipping Company, the cargo handling capacity of the Piraeus port in Greece increased from 880,000 TEUs in 2010 to over 5 million TEUs in 2022, and its comprehensive indicators returned to the top 10 shipping hubs in the world. For another example, since the launch of the China-Pakistan Economic Corridor, the Karakoram Highway Phase Two project has been progressing smoothly, and significant progress has been made in the joint construction of Gwadar Port. At the same time, we have jointly built hospitals, schools, water supply facilities and other livelihood projects with various countries, which have also been widely welcomed by local people.

Overseas cooperation projects have brought effective investment to host countries, promoted economic growth, spread technologies, created jobs and improved people's living standards. For example, the China-Laos Railway project has provided employment for 110,000 people in Laos, helped locals build nearly 2,000 kilometers of roads and canals, and trained a large number of technical and management professionals. For another example, Chinese investment in the Piraeus port in Greece has created 13,000 jobs and directly contributed 300 million euros to the local economy every year. For another example, the construction of the China-Pakistan Economic Corridor has laid a solid foundation for Pakistan's infrastructure connectivity and industrialization, and directly created 155,000 jobs for local people. At the same time, China has signed third-market cooperation documents with 14 countries to jointly promote the development of industries and improve people's livelihoods in third countries.

Going forward, the NDRC will continue working with relevant departments to strengthen policy, mechanism and project docking with relevant authorities of the countries we cooperate with, adhering to Belt and Road cooperation as the main focus, upholding extensive consultation and joint contribution for shared benefits, and pursuing high-standard cooperation to promote sustainable development and improve people's lives in the process. Continuous efforts will be made to build high-quality landmark projects and promote "small but beautiful" projects, and to deepen cooperation in key areas such as infrastructure and people's livelihood projects. We aim to achieve complementarity of strengths and win-win results so that the results of cooperation can better benefit the people of all relevant countries. Thank you.

Pakistan City News Network:

First of all, I would like to express my heartful thanks to the MFA for this valuable opportunity to participate into this press conference. My first question is what role does cultural exchange play in building a community with shared future of mankind? The second question is what challenges are there for building such a community? Thank you so much.

Li Qun:

Thank you for your questions. You may have noticed that at the recently concluded 45th UNESCO World Heritage Committee session, China's "Cultural Landscape of Old Tea Forests of the Jingmai Mountain in Pu'er" was inscribed on the UNESCO World Heritage List. This is also the first time that an intangible cultural heritage with the theme of Chinese tea culture has been included on the UNESCO World Heritage List. Of course, this is also the latest case of China's active participation in international cultural exchanges and contribution of Chinese wisdom.

Building a global community of shared future is the core idea of Xi Jinping Thought on Diplomacy , and enhancing people-to-people exchanges is an important way to build it. People-to-people exchanges put value in caring for and respecting people, which is a vital gene in China's fine traditional culture, and highly consistent with the philosophies of other countries and nations around the world. Therefore, people-to-people exchanges, together with political mutual trust and economic and trade cooperation, constitute important pillars of China's foreign policy. However, with the world now experiencing unprecedented changes, marked by a complex and fast-changing international environment and a once-in-a-century pandemic, the deficits in peace, security and governance have all hindered and posed challenges to international people-to-people exchanges.

President Xi Jinping has attached great importance to international people-to-people exchanges. He proposed the GCI and advocated the building of a global network for inter-civilization dialogue and cooperation to promote mutual understanding and friendship among people of all countries and jointly advance the progress of human civilization. China has actively participated in people-to-people exchanges. The country has signed cooperation agreements with 157 countries in the fields of culture, cultural heritage, and tourism, and signed bilateral agreements on the prevention of illegal entry and exit of cultural relics with 25 countries. Over the past decade, China has partnered with countries worldwide to organize more than 500 exhibitions showcasing cultural relics. Chinese experts have undertaken cultural relics preservation and restoration projects in 11 sites across six countries, including the ancient city of Khiva in Uzbekistan and Angkor Wat in Cambodia. Furthermore, 44 joint archaeological endeavors have been conducted with 24 countries, resulting in the repatriation of over 1,800 lost cultural relics to China. This year, China established the Alliance for Cultural Heritage in Asia, launched the Asian Fund for Cultural Heritage Conservation, hosted global cultural events such as "Happy Chinese New Year" and "Tea for Harmony" Yaji Cultural Salon, and carried out the "Nihao China!" tourism promotion event and the Cultural Silk Road program . All these efforts have significantly enhanced international communication in the realms of culture, cultural relics, and tourism, ultimately promoting socioeconomic development.

Chinese civilization is uninterrupted, innovative, unified, inclusive, and peaceful. The Chinese government has been committed to conducting international people-to-people exchanges, making a positive contribution to promoting diverse global cultures and fostering more inclusive and sustainable global socioeconomic development. Looking ahead, the Ministry of Culture and Tourism and the National Cultural Heritage Administration will actively implement the GCI, strengthen cooperation in cultural exchanges, and take necessary steps to promote world peace, cooperation, and the inheritance and development of human wisdom and civilization. Thank you.

Sun Yeli:

Thank you, Mr. Li. Due to limited time, we will have one more question. 

Bloomberg:

The United States will be hosting the APEC leaders' summit very soon in San Francisco in November. Will Chinese President Xi Jinping be attending? What will that suggest about the role and importance of multilateral advancement and how China carries out its head-of-state diplomacy?

Wang Yi:

As a responsible country, China consistently participates in significant multilateral forums. Regarding the arrangement of the APEC Economic Leaders' Meeting, we are maintaining close contact with relevant parties and will release information at an appropriate time.

You mentioned multilateral diplomacy, which is an important approach for China to engage in global governance and advance the building of a global community of shared future. It is also an essential platform for head-of-state diplomacy. President Xi Jinping has attached great importance to multilateral diplomacy, and China is playing an increasingly significant role in global governance.

We champion and practice genuine multilateralism in global governance. To build a global community of shared future, we must oppose all forms of unilateralism, camp confrontation, and power politics, firmly uphold the authority and status of the United Nations, and remain committed to the vision of global governance characterized by extensive consultation and joint contribution for shared benefits. Global affairs must be discussed by all, and the benefits of governance must be shared by all.

APEC is the highest-level and most influential economic cooperation mechanism covering a wide range of fields in the Asia-Pacific region. The 30th APEC Economic Leaders' Meeting, scheduled for the end of this year, should serve as a platform for cooperation rather than a stage for confrontation. As the world's largest developing country and a crucial member of APEC, China is willing to meet the international community's expectations and play a pivotal role in ensuring the success of this year's APEC meeting. Together with all parties, we anticipate that the U.S., as the host country, will assume its responsibilities and showcase openness, fairness, inclusiveness and responsibility to create more favorable conditions for the meeting to run smoothly. Thank you.

Sun Yeli:

Thank you, Mr. Wang. Thanks to all the speakers and friends from the media. Today's briefing is now concluded.

Translated and edited by Wang Qian, Zhou Jing, Wang Wei, Li Huiru, Zhang Rui, Yuan Fang, Yang Xi, Zhu Bochen, He Shan, Lin Liyao, Yan Bin, Liu Jianing, 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. Pan Xianzhang, vice minister of the Taiwan Work Office of the Communist Party of China (CPC) Central Committee

Mr. Cong Liang, vice chairman of the National Development and Reform Commission

Mr. Luo Dongchuan, deputy secretary of the CPC Fujian Provincial Committee

Chairperson:

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

Date:

Sept. 14, 2023

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). The Working Guidance of the CPC Central Committee and the State Council to Support Fujian in Exploring New Pathways for Promoting Integrated Development between the Two Sides of the Straits and Build a Demonstration Zone for Integrated Cross-Straits Development has been released. Today, we are joined by Mr. Pan Xianzhang, vice minister of the Taiwan Work Office of the Communist Party of China (CPC) Central Committee; Mr. Cong Liang, vice chairman of the National Development and Reform Commission (NDRC); and Mr. Luo Dongchuan, deputy secretary of the CPC Fujian Provincial Committee. They will brief you on the guidance and take your questions.

Now, I'll give the floor to Mr. Pan.

Pan Xianzhang:

Friends from the media, good morning. You have received a copy of the guidance which Xinhua News Agency was authorized to issue. Here, I will brief you on the background of the document's issuance and explain its significance.

Sitting across the sea, Fujian and Taiwan enjoy geographical proximity and a close affinity. This offers Fujian unique advantages and favorable conditions to engage in activities related to Taiwan. General SecretaryXi Jinpingand the CPC Central Committee highly value the distinctive role played by Fujian in the overall work related to Taiwan, and have pursued a strategy of national rejuvenation amid global changes of a magnitude not seen in a century . The initiative to support Fujian in exploring new pathways for promoting integrated development between the two sides of the Straits and to build a demonstration zone for integrated cross-Straits development has been taken as a key measure to "deepen integrated development of the two sides and cement the foundation for peaceful reunification."

At the Meeting Marking the 40th Anniversary of the Issuance of the Message to Compatriots in Taiwan held in January 2019, General SecretaryXi Jinpingproposed to "deepen integrated development of the two sides and cement the foundation for peaceful reunification" and put forward other key policies. In March 2019 and March 2021, respectively, General SecretaryXi Jinpingmade important instructions on supporting Fujian in exploring new pathways for promoting integrated development between the two sides of the Straits. He also emphasized the need for Fujian to take exemplary actions on promoting integrated cross-Straits development. During his inspection trip to Fujian in March 2021, General SecretaryXi Jinpinghighlighted the importance of enhancing integration with Taiwan through increased connectivity, favorable policies and cultivating affinity. He further urged Fujian to make greater strides in exploring new pathways for integrated cross-Straits development. In the report to the 20th CPC National Congress, General SecretaryXi Jinpingfurther underscored that "we will continue to promote economic and cultural exchanges and cooperation across the Strait, advance our integrated development in all fields."

Following the guidance ofXi JinpingThought on Socialism with Chinese Characteristics for a New Era, the Taiwan Work Office of the CPC Central Committee, the NDRC and related government bodies, and Fujian province have thoroughly grasped and implemented the guiding principles of the 20th CPC National Congress, fully implemented the Party's overall policy for resolving the Taiwan question in the new era, and earnestly carried out General SecretaryXi Jinping's important discourse on Taiwan-related work and key instructions on Fujian-specific initiatives. In accordance with related arrangements outlined in the 14th Five-Year Plan, the three parties have taken a strategic perspective in deepening integrated cross-Straits development and promoting progress toward national rejuvenation, thoroughly understood and accurately grasped Fujian's unique advantages and related pilot requirements, and formulated the guidance.

The formulation of the guidance has clarified Fujian's roles, responsibilities and objectives in implementing the Party's overall policy for resolving the Taiwan question in the new era. It aligns with the prevailing public sentiment on both sides of the Straits, which calls for peace, development, communication and cooperation. The goal is to basically build a demonstration zone for integrated cross-Straits development across Fujian, and fully highlight Fujian's role as the first stop for Taiwan compatriots and enterprises returning to the mainland. The key is to support Fujian in leveraging its unique advantages and pioneering position in engaging activities with Taiwan, while continuously improving policy measures promoting integration between Fujian and Taiwan. Fujian will take the lead in providing Taiwan compatriots and enterprises with equal treatment with mainland residents, continue enhancing the well-being of Taiwan compatriots, and ensure they experience the benefits of integration and the deep connectivity between Fujian and Taiwan.

That concludes my introduction. Thank you.

Shou Xiaoli:

Thank you, Mr. Pan. Next, Mr. Cong will have the floor.

Cong Liang:

The Xinhua News Agency was authorized to issue the guidance, and I will now further elaborate on its main content. The guidance serves as a significant measure to implement General SecretaryXi Jinping's important discourse on work related to Taiwan and the guiding principles of the 20th CPC National Congress. The guidance has put into practice the conviction that we are all of the same family . It follows the approach of always respecting, caring for and benefitting Taiwan compatriots, and fully leverages Fujian's unique advantages and pioneering role in Taiwan-related work. It highlights the efforts to promote integration through increased connectivity, favorable policies and cultivating affinity. It also properly utilizes resources from all aspects to improve institutional arrangements and policies that help enhance the well-being of Taiwan compatriots, and strives to build a demonstration zone for integrated cross-Straits development across Fujian. The specific arrangements are focused on three aspects and six key points.

To promote integration through increased connectivity, first, we will proactively build transportation, logistics and infrastructure projects as appropriate. We will strengthen support in factors such as funding, and increase infrastructure connectivity between Fujian and Taiwan as much as possible. We will establish a multilayered and comprehensive transportation hub that connects Taiwan, improve connectivity between Fujian, Taiwan and the rest of the mainland, and complete a regional logistic distribution system. Second, we will further optimize and expand passenger and cargo transportation routes between the coastal areas of Fujian and Taiwan island as well as the islands of Kinmen and Matsu . This initiative aims to create more convenient conditions and a more reassuring environment for compatriots on both sides to travel between Fujian and Taiwan, as well as for Taiwan compatriots residing in and visiting Fujian. It also seeks to encourage more Taiwan compatriots who have yet to visit the Chinese mainland to explore Fujian and gain an understanding of its actual development.

To promote integration through favorable policies, first, we have introduced a series of policies that support Taiwan compatriots to pursue education, study, and secure jobs, as well as to facilitate their lives in local areas and enhance their social engagement and participation. We welcome more students, teachers, medical workers and professional personnel from Taiwan to come to Fujian to explore better career opportunities and achieve greater life aspirations. Second, we will continue improving the business environment related to Taiwan. We support more Taiwan enterprises to engage in Fujian-Taiwan industrial and sci-tech innovation cooperation. In particular, we welcome Taiwan's agricultural, fishery and small and medium-sized enterprises to develop and thrive in Fujian and share the opportunities offered by the mainland's development.

To promote integration through forging closer bonds. First, we will deepen people-to-people exchanges and cooperation between Fujian and Taiwan. We will support NGOs, think tanks, and religious groups to conduct regular communication, and encourage compatriots on both sides of the Taiwan Straits to carry forward excellent traditional Chinese culture. Additionally, we aim to continuously expand the circles of friends and business partners shared by youths of Fujian and Taiwan. Second, we will support regions in Fujian to fully leverage their advantages of communication and cooperation with Taiwan. We will encourage the in-depth integrated development of Xiamen, Fuzhou, Kinmen, and Matsu. Furthermore, we will expedite the opening up and development of the Pingtan Comprehensive Pilot Zone and promote other regions in Fujian to engage in integrated cross-Straits development.

Moving forward, based on the current cross-Straits development and the realities of the integrated development between Fujian and Taiwan, we will adopt a problem-oriented and steady approach. We will roll out and implement supporting policies step by step, prioritize pilot programs and empower more practices. Our goal is to further promote innovation in policies and mechanisms, aiming to release more policy dividends. Thank you.

Shou Xiaoli:

Thank you. Let us invite Mr. Luo for an introduction. 

Luo Dongchuan:

I will introduce to you how Fujian province has promoted the integrated development of Fujian and Taiwan. Fujian and Taiwan face each other across the sea, with the shortest distance between the two regions being just 68 nautical miles. Furthermore, Fujian is the ancestral home for the majority of Taiwan compatriots, as approximately 80% of Taiwan people trace their ancestral roots back to Fujian. Relevant documents and historical records indicate that people from Fujian, particularly from the cities of Quanzhou, Zhangzhou, and Xiamen, moved to Taiwan during the Ming and Qing dynasties (1368-1911). As a result, there exists a profound connection between the people of Fujian and Taiwan, characterized by shared blood ties and a deep sense of affinity. People on both sides of the Taiwan Straits are considered one family, and those hailing from Fujian and Taiwan are among the closest within this extended family. When he served as a senior official in Fujian, General SecretaryXi Jinpingattached great importance to cross-Straits exchange and the integrated development of Fujian and Taiwan. He took charge of work on the integrated development of Fujian and Taiwan and advanced a series of major initiatives related to Taiwan.

In recent years, Fujian province has firmly implemented the Party's overall strategies for addressing Taiwan question in the new era, promoted in-depth people-to-people exchanges across the Straits, and established the "first home" for Taiwan residents and enterprises to settle down on the Chinese mainland. All of these efforts have laid a solid foundation for building a demonstration zone for the integrated development across the Straits.

Fujian has become the most active region for cross-Straits people-to-people exchanges. Each year, it hosts over 200 cross-Straits exchange activities for connecting clan relatives and promoting folk traditions, affinity, folk beliefs, history, and culture. The Straits Forum, the largest platform for folk exchanges, has convened 15 sessions, drawing the participation of 340,000 individuals. The Straits Youth Festival is highly popular among young people from both sides of the Straits, bringing people from across the Straits even closer.

Second, Fujian is becoming the warmest home for people from both sides of the Straits. Fujian introduced its first list of 225 equal treatment measures for Taiwan compatriots and Taiwan-funded companies, thereby establishing a complete policy framework that benefits Taiwan. Tens of thousands of Taiwan compatriots have built businesses, pursued education, and resided and settled down in Fujian. Furthermore, the province has been providing water to Kinmen for five years, with the total water supply amounting to approximately 30 million metric tons and the daily water supply exceeding 20,000 metric tons. The promising prospects of the integrated development between Xiamen and Kinmen have taken root in the minds of Kinmen's residents. Pingtan has implemented a strategy to transform itself into an international tourism island, featuring two gateways for Fujian and Taiwan cooperation and national opening up, as well as three industrial sectors focusing on emerging industries, high-end services, and livable communities. With the implementation of a new round of overall development plans, Pingtan aspires to create a homeland where people on both sides of the Straits can lead happy lives.

Third, Fujian has constructed the most convenient channels between two sides of the Strait. Fujian maintains direct sea routes with Taiwan's major ports and operates 17 regular air and sea routes, providing up to 430 weekly flights at peak levels. Fujian has established highly convenient and cost-effective sea and air routes, including connections between Kinmen and Matsu and coastal areas of Fujian, roll-on/roll-off passenger ship routes, and direct air routes.

Fourth, Fujian is consolidating the foundation for close economic and trade cooperation across the Strait. Fujian province hosts more than 10,000 Taiwan-funded enterprises, with an actually utilized Taiwan capital exceeding $32 billion. The accumulated trade volume between Fujian and Taiwan has surpassed 1.4 trillion yuan. Each year, Fujian ranks high among Chinese provinces in terms of the amount of actually utilized Taiwan capital and the number of newly added Taiwan-invested enterprises. A total of 18 national cross-Straits industrial cooperation parks across Fujian have promoted the integration of industrial and supply chains between Fujian and Taiwan in sectors such as electronic information, petrochemicals, and precision machinery.

For the next step, Fujian will earnestly study and implement the important guiding principles of General SecretaryXi Jinpingfor the work related to Taiwan and act on the decisions and arrangements of the CPC Central Committee and the State Council. Treating the implementation of the guideline as a significant political task and assuming greater responsibility, we will boldly act as pioneers, advancing practical progress in the demonstration zone for integrated cross-Straits development. We will gradually turn the blueprint outlined by General SecretaryXi Jinpinginto reality. We will fully leverage Fujian's advantages, shoulder our responsibilities, and contribute to exploring new pathways for the integrated development across the Straits. Thank you.

Shou Xiaoli:

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

CCTV:

During his inspection of Fujian in March 2021, General SecretaryXi Jinpingmade important instructions for making greater strides in exploring the integrated development of both sides across the Straits. He also emphasized integrated development through connectivity, preferential policies, and relationships. How does the document reflect the important guiding principles put forward by General SecretaryXi Jinping? Thank you.

Pan Xianzhang:

In studying and drafting the guideline, the Taiwan Work Office of the CPC Central Committee, the NDRC, relevant departments, and Fujian province have earnestly studied and understood the guiding principles but forward by General SecretaryXi Jinping. Building upon the previous achievements made by Fujian in the work related to Taiwan, we will ensure the implementation of the guiding principles put forward by General SecretaryXi Jinpingacross all sectors and throughout the entire process.

First, we have made greater strides in boosting connectivity between Fujian and Taiwan. In recent years, we have firmly advanced the interconnectivity of water, electricity, and gas, along with constructing a bridge linking Kinmen and Matsu to the coastal areas of Fujian. The guideline further proposes advancing infrastructure interconnectivity between Fujian and Taiwan and exploring cooperation mechanisms between Xiamen and Kinmen for jointly building infrastructure. The guideline supports the Pingtan Comprehensive Pilot Zone in expediting the construction of a well-rounded openness framework for Taiwan, while encouraging joint efforts from industries, academia, research institutes, and companies across the Straits in formulating policies and measures, including industrial standards. This will make it convenient for Taiwan compatriots and businesspeople to travel to and from Fujian and facilitate their lives and work in Fujian.

Second, we have made significant progress in implementing measures that benefit Taiwan and its residents. The guidance has fully integrated effective policies and measures implemented over the years. Based in Fujian, it introduces stronger and more open equal treatment policies. This includes guidelines for special measures to relax market access, expand the recognition of Taiwan professional qualifications, and provide more convenience for Taiwan farmers and fishermen in land use, financing, and domestic market development. We also extend support to residents in Kinmen and Matsu, ensuring they receive the same treatment as local residents in Xiamen and Fuzhou. Additionally, we are launching pilot programs allowing Taiwan businesses to invest in and establish radio and television production and operation companies in Fujian. In summary, all these policies aim to create an environment where Taiwan compatriots feel welcomed, find comfortable in staying, and easily integrated and thrive.

Third, we have made significant progress in deepening people-to-people exchanges. Fujian and Taiwan share deep roots in terms of kinship, fellow villagers, in-laws, and folk beliefs. The guidance proposes establishing a global center for Minnan culture exchanges and promoting integrated development with Penghu. This will be achieved by leveraging the advantages of Quanzhou and Zhangzhou, both Minnan-dialect-speaking regions and the main ancestral places of Taiwan compatriots. We also support Longyan and Sanming in utilizing their advantages as Hakka ancestral lands to drive innovation in cross-Straits Hakka cultural exchanges. Additionally, the guidance proposes to launch traceability projects for Fujian and Taiwan history exhibitions and carry out activities such as matching Fujian and Taiwan genealogy, tracing roots, and paying homage to ancestors. We encourage compatriots on both sides of the Taiwan Straits to work together to promote Chinese culture, as well as the protection, inheritance, and innovation of China's excellent traditional culture.

Yesterday, I came across a media comment that described the guidance as brimmed with friendship, valuable insights and confidence. We firmly believe that putting this guidance into practice will improve the policy framework for integrated cross-Straits development, facilitating more convenient personnel exchanges between Fujian and Taiwan. It will also foster smoother trade and investments while broadening exchanges and cooperation across wider areas and greater depth. This consensus acknowledges that people on both sides of the Straits are part of one family, and the ties between Fujian and Taiwan continue to strengthen. Thank you.

Zhonghongwang.com:

The business environment serves as an important reflection of the governance system and capabilities, and it also garners extensive attention from Taiwan companies. Could you kindly share insights into the progress of Fujian's business environment development and explain the strategies for involving Taiwan compatriots and businesses in Fujian's business environment construction in the future? Thank you.

Luo Dongchuan:

Thank you for your questions. In recent years, Fujian province has earnestly studied and put into practice General SecretaryXi Jinping's important remarks regarding improving the business environment. The province has focused on creating an efficient market, effective government, profitable enterprises, and enhancing the people's sense of fulfillment, happiness, and security. Fujian is committed to creating a first-class enabling business environment characterized by market-oriented operations and the rule of law while continuously improving services for businesses and the public.

In terms of services for businesses, Fujian province has fully implemented a market access negative list system. It has taken the lead in conducting market access performance evaluations, introduced regulations aimed at optimizing the local business environment, accelerated the construction of the Maritime Silk Road Central Legal District, and launched a digital monitoring and supervision mechanism for the business environment. The province has made significant efforts to dismantle hidden barriers, creating an equal, transparent, predictable, and competitive investment environment for various types of business entities, including those with investments from Taiwan. Currently, the time required to register a business has been reduced to one working day on average, and the number of enterprises of all ownership forms in Fujian province has increased from 1.4 million at the end of 2012 to 7.47 million.

In terms of services for the public, Fujian province has leveraged the achievements of digital Fujian construction. It has focused on strengthening the digital support capabilities of the business environment by building a five-tiered unified online government service platform that covers the province, city, county, township, and village levels. This effort is aimed at promoting the transition of government services from a "one-stop access" model to a more efficient "one-stop completion" model, making government services easily accessible online. Currently, 98.5% of government service items in Fujian province can be handled online. The province has accelerated the reform of "one-click" integrated services to provide one-stop online government services. The self-service model of e-government services has been promoted nationwide, leading to the establishment of 24-hour self-service areas for government services and 15-minute convenient service circles.

Thanks to the favorable business environment and the resilient spirit of the Fujian people, known for their determination to excel, Fujian has achieved new economic and social development milestones. In 2022, its GDP reached 5.3 trillion yuan, ranking it eighth in the country. Looking ahead, we will continue to guide Taiwan compatriots and businesses to actively participate in building a first-class enabling business environment characterized by market-oriented principles and the rule of law. We will enhance the coordination and linkage mechanism to safeguard the rights and interests of Taiwan compatriots and businesses, while also establishing and improving government-enterprise communication channels. We sincerely hope that more Taiwan compatriots and businesses will choose Fujian with confidence, actively contributing to the modernization of the governance system and governance capability. Together, we can elevate the business environment and create a world-class business environment.

Thank you. 

GDToday app Nanfang Plus: 

The "mini three links," which refers to direct trade, postal and transport services launched in 2001 between Kinmen and Matsu islands and some cities in Fujian province, were established as early as 2001, providing much convenience for Taiwan compatriots traveling to the mainland. What considerations are being taken into account to promote maximum connectivity between Fujian and Taiwan and to facilitate smoother passage for Taiwan compatriots? Thank you.

Cong Liang:

Let me address this question. Thank you for your question. The "mini three links" have indeed played a positive role in promoting people-to-people exchanges between the two sides. The guidance has put forward considerations in four aspects regarding promoting maximum connectivity between Fujian and Taiwan and facilitating smoother passage for Taiwan compatriots.

First, in terms of enhancing economic and trade cooperation, we will continue to strengthen the layout and construction of major logistics infrastructure, including logistics hubs. Our focus is on improving the fundamental support for economic and trade cooperation between Fujian and Taiwan. We will introduce specific measures to ease market access for industries that hold significant influence over the integrated development of both sides. Additionally, we will formulate a set of policies and measures aimed at optimizing market access. We will also encourage the Fujian Pilot Free Trade Zone to expand pilot programs for exchanges and cooperation. Furthermore, we will provide further support for the innovative development of small-scale trade with Taiwan and actively explore institutional and policy measures to promote smooth economic and trade cooperation between the two regions.

Second, in terms of transport infrastructure connectivity, Fujian has been actively promoting transportation infrastructure planning and construction in recent years. It has built comprehensive three-dimensional transportation networks and developed the engineering and technical capabilities to connect expressways between Fujian and Taiwan. This forms a solid foundation for promoting transport infrastructure connectivity across the Straits. There has long been anticipation among various sectors on both sides for direct connectivity of infrastructure. We should work together to realize the dream of people from both sides to effortlessly cross the Straits by high-speed rail. This will facilitate the transportation of more Taiwan products to European and Asian markets via China-Europe freight trains, ultimately benefiting people on both sides of the Straits.

Third, regarding energy and resource connectivity, the mainland has built the world's largest energy system, with the achievements in green transformation of energy attracting worldwide attention. The scale of our hydropower, wind power, and photovoltaic power generation has ranked first in the world for many years, while the mainland also has the world's most advanced wind and photovoltaic power production capacity and long-distance power transmission and transformation capacity. In particular, clean energy is developing rapidly in Fujian province, and the shoals of the outer beaches in southern Fujian are suitable for the development of offshore wind power and have the conditions necessary for large-scale transmission of green electricity to Taiwan. We are willing to strengthen cross-Straits energy cooperation and jointly promote the energy transition with Taiwan.

Fourth, regarding common industry standards, in recent years, we have stepped up efforts to set up shared standards, compiled 99 cross-Straits common standards in cold chain logistics, elderly care, and food safety, providing multi-functional services and "one-stop" standardized services for micro, small, and medium-sized enterprises in Taiwan. The guidance proposed "building a service platform for common cross-Straits standards, and encouraging industries, universities, research institutes and enterprises on both sides of the Straits to jointly formulate common industry standards." We will focus on areas concerning people's wellbeing across the Straits and further strengthen the sharing and exchange of common standards and standardized information so as to provide more accurate, efficient, and standard information services for enterprises across the Straits. Thank you.

United Daily News:

Xiamen and Kinmen are at the forefront of cross-Straits exchanges. What is the plan outlined in the guidance to integrate development between the two areas? Also, Fuzhou, Pingtan, and Quanzhou have their respective features in exchanges with Taiwan. How does the guidance encourage these areas to participate in the integrated development with Taiwan? Thank you.

Cong Liang:

Thank you for your questions; I will answer them. The guidance proposed making Fujian a demonstration zone for cross-Straits integrated development. We will guide areas with good conditions and outstanding advantages, such as Xiamen, Fuzhou, as well as the Pingtan Comprehensive Pilot Zone, to take the lead in the pilot programs and encourage other regions of Fujian to participate in the practice of cross-Straits integrated development in light of their own conditions. Specifically, there are four major measures.

First, we will deepen the integrated development between Xiamen and Kinmen. We will support Xiamen in carrying out a comprehensive pilot reform, empower the city to have greater autonomy over the reforms in key areas and key links, comprehensively deepen reform and opening-up, promote high-quality development, and deepen exchanges and cooperation between Xiamen and Kinmen. The two areas enjoy geographical proximity, and Kinmen residents living in Xiamen can enjoy the same treatment as local residents. We will take the lead to support equal access to inclusive and convenient basic public services, creating the "pair-city living circle." Efforts will also be made to explore a model for Xiamen-Kinmen joint infrastructure development, facilitating the supplies of electricity and gas and the construction of bridges from Xiamen to Kinmen, and support Kinmen in using Xiamen's new airport.

Second, we will support the integrated development between Fuzhou and Matsu. Fuzhou and Matsu have had very close exchanges and held many Fuzhou-Matsu consultations, reaching a series of consensus. We will create a "Fuzhou-Matsu living circle" and entitle Matsu residents living in Fuzhou to the same treatments as local residents. We will set up a Fuzhou-Matsu industrial cooperation park to facilitate the innovative cooperation of the cities in cultural tourism and marine fisheries, and to attract Taiwan compatriots and enterprises to participate in the digital economy development in Fuzhou. We will continue to promote the supplies of water, electricity, and gas and the construction of bridges from Fuzhou to Matsu.

Third, we will give support to the Pingtan Comprehensive Pilot Zone in accelerating opening up to Taiwan. In recent years, the area focused on the strategic position featuring "one island, two windows, and three areas" to facilitate exchanges and in-depth integration, and has comprehensively strengthened social, economic and cultural exchanges and cooperation with Taiwan. Support will be given to the Pingtan Comprehensive Pilot Zone in accelerating all-round opening up to Taiwan, building more convenient transportation facilities across the Straits, gradually establishing a policy system to boost trade and investment liberalization and facilitation in Taiwan, broadening cross-border trade in services, advancing the construction of the pioneering zone for cross-Straits common market, deepening people-to-people exchanges, as well as cooperation on community-level governance. Besides, we will study to liberalize market access for Taiwan's information services, as well as issue relevant measures concerning speeding up the opening up of education.

Fourth, we will promote practices of integrated development across Fujian. Each county in Fujian has a very close relation with Taiwan. We will encourage Quanzhou and Zhangzhou, both Minnan-dialect-speaking regions and the main ancestral home of Taiwan compatriots, to develop themselves into a global center for Minnan culture, and to carry out integrated development practices with Penghu. We will also leverage the advantages of Fujian as the hometown of the Hakka people and the sea goddess Mazu to support Longyan in innovating Hakka cultural exchanges across the Straits, support Sanming in setting up a pilot zone for integrated rural development across the Straits, support Putian in building a cross-Straits industrial cooperation zone for biotechnology and medical health, support Nanping in deepening ecological, cultural, tourism, and industrial cooperation with Taiwan, and support Ningde in expanding cooperation with Taiwan in the fields of new energy and marine aquaculture industry.

Fujian and Taiwan enjoy geographical proximity, a similar climate, and close affinity. I hope that more Taiwan compatriots can come and visit Fujian, experience the charm of Fujian, pass down the friendship between Fujian and Taiwan, and map out common future development with a view to forging even closer bonds with each other. Thank you.

People's Daily:

Fujian province is the main ancestral home of our Taiwan compatriots. In the future, what convenience will be brought to Taiwan compatriots to study, work, start business, and live in Fujian so as to promote the atmosphere that people on both sides of the Taiwan Straits are of one family, and Fujian-Taiwan bond even closer? Thank you.

Luo Dongchuan:

Thank you for the question. I will address this matter. The recently issued guidance by the CPC Central Committee and the State Council places great emphasis on respecting, caring for, and benefiting our Taiwan compatriots. It highlights the significance of improving policies related to their education, employment, and livelihoods in Fujian. Regarding the province, we are committed to implementing more effective and pragmatic measures to ensure the implementation of these policies.

First, our commitment is to support Taiwan students coming to Fujian for study and research. Currently, Fujian has opened admissions for Taiwan students in 36 universities and colleges. It is also the only province on the Chinese mainland that pilots independent enrollment examinations for Taiwan students and admits them based on their scores of the Joint College Entrance Examination for Technological and Vocational Education (JCEE). At present, full-time Taiwan students studying in Fujian constitute one-sixth of the national total. More than 70 universities and colleges in Fujian have established cooperation agreements with over 110 universities and colleges in Taiwan, leading to the implementation of more than 200 cooperative education programs and joint training for over 24,000 technical and skilled professionals. According to the guidance, Fujian will further support Taiwan students in coming to the province for study and research, particularly by implementing a welcoming policy that promises equal treatment, and encourages enrollment based on proximity for Taiwan students studying in Fujian. In Fuzhou and Xiamen, I have heard Taiwan compatriots mention that their children often attend the best primary schools. I have personally witnessed Taiwan compatriots' children studying in a primary school in Fuzhou. Efforts will be made to further support Fujian's universities, colleges and research institutes in expanding the enrollment of Taiwan students. I have also inquired with some universities; this year's admission numbers have exceeded those of previous years. Furthermore, support will be provided for high-standard learning institutions and programs jointly run by institutions across the Straits and diversified cooperation among them, along with measures such as establishing several cross-Straits youth research and study bases.

Second, our focus is on supporting the employment of Taiwan compatriots in Fujian. Currently, Fujian has recognized 45 professional qualifications from Taiwan, attracting over 40,000 Taiwan compatriots, including both young and elderly people, to come to Fujian for internships, employment, and entrepreneurship. Building on this foundation, measures will be implemented to encourage enterprises, particularly those invested by Taiwan business people, to hire more Taiwan employees. Additionally, efforts will be made to recruit Taiwan teachers in vocational schools, expand the recognition of professional qualifications from Taiwan, facilitate the practice of Taiwan physicians in Fujian, and gradually broaden the scope of practice for Taiwan residents who have obtained national legal professional qualifications in Fujian. These measures are designed to provide greater opportunities for Taiwan compatriots and young people to find employment in Fujian.

Third, our objective is to facilitate the livelihood of Taiwan compatriots in Fujian. Equal treatment for Taiwan compatriots and enterprises has been implemented, alongside the enhancement of public service platforms. Measures have been taken to provide access to old-age insurance, basic health insurance, housing provident funds, and affordable housing for Taiwan compatriots. These measures aim to improve their sense of gain, happiness, and security. According to the guidance, additional initiatives will include the removal of temporary residence registration requirements, and allow Taiwan compatriots to freely settle and register their residence. The application scope of the residence permit for Taiwan residents will be expanded to ensure equal convenience with Chinese mainland resident identity cards. We are currently studying how to align the residence permit for Taiwan residents with the Chinese mainland resident identity cards, both in terms of application scenarios and convenience. Institutional guarantees for Taiwan compatriots in employment, healthcare, housing, old-age services, and social assistance will be enhanced, with the goal of incorporating Taiwan compatriots in Fujian into the Chinese mainland social security system in accordance with laws and regulations.

Thank you.

TVBS:

The report to the 20th CPC National Congress includes the promotion of economic and cultural exchanges and cooperation across the Straits, as well as the advancement of integrated development in all fields. My question is, what plans does the guidance propose in terms of deepening cross-Straits integrated development in Fujian? Thank you.

Pan Xianzhang:

Thank you for the question. The report to the 20th CPC National Congress states that we will continue to promote economic and cultural exchanges and cooperation across the Straits and advance our integrated development in all fields . Supporting Fujian to explore a new path and build itself into a demonstration zone for cross-Straits integrated development is the specific measure to implement the decisions of the 20th CPC National Congress.

The key highlight of the guidance is the objective for integration. It aims to provide institutions and policy support for the comprehensive integration of Taiwan compatriots and enterprises in Fujian. It also includes advancing the integration of key regions such as Xiamen-Kinmen and Fuzhou-Matsu , and facilitating seamless connectivity and deep integration between Fujian and Taiwan.

The guidance proposes supporting the establishment of cooperative alliances between Fujian and Taiwan enterprises. It encourages Taiwan farmers and fishermen to participate in the integrated development of Fujian's primary, secondary, and tertiary industries in rural areas, thus contributing to rural revitalization. The circular also proposes to create a platform to support the application of scientific and technological achievements in ecology and the environment across the Straits, with the goal of encouraging Taiwan compatriots and enterprises to engage in the development of the green economy. These policy measures are intended to empower Taiwan compatriots to seize development opportunities on the Chinese mainland.

The guidance articulates the importance to leverage the spiritual bond of folk beliefs like Mazu and conduct diverse religion and folk custom exchanges. It advocates for the establishment of more cultural industry cooperation platforms and encourages Taiwan cultural enterprises to invest in and open offices on the Chinese mainland. The guidance calls for amalgamating cultural and entertainment resources from both sides of the Straits, fostering a cross-Straits pop culture center, and assisting compatriots from both sides in jointly celebrating and preserving traditional Chinese culture.

The guidance recommends supporting Taiwan compatriots in their deep involvement in the development of local communities and grassroots governance in Fujian province. It endorses the nomination of Taiwan compatriots for honors and awards at various levels in line with national regulations. The document encourages Taiwanese individuals to take on roles as arbitrators, mediators, jurors, supervisors, prosecutorial liaisons, and judicial auxiliary personnel, thereby actively contributing to the advancement of the rule of law in Fujian. It encourages Taiwan compatriots to pursue home ownership and property investments in Fujian. The guidance seeks to enhance institutional guarantees for Taiwan compatriots in areas such as employment, medical care, housing, retirement, and social assistance in Fujian. In accordance with the law and regulations, it aims to integrate Taiwan compatriots residing in Fujian into the mainland's social security system, among other measures. This effort is designed to broaden the participation of Taiwan compatriots in Fujian society and facilitate their lives in the province.

In addition, we are advancing the integration of key regions like Xiamen-Kinmen and Fuzhou-Matsu, introducing supportive policy measures to accelerate the integrated development between Xiamen and Kinmen, and deepen the integrated development between Fuzhou and Matsu.

The implementation of the guidance will offer the broadest space, best conditions, and strongest guarantees for Taiwan compatriots studying, working, and living in Fujian. It allows them to invest, settle down, and pursue their careers in the most familiar and amiable environment, relishing a sense of participation, gain, happiness, and security as if they were at home. Thank you.

China Daily:

Fujian and Taiwan share the same roots. May I inquire about the specific measures and plans in place to enhance social and cultural exchanges between Fujian and Taiwan, foster youth interactions, and promote cultural integration? Thank you.

Luo Dongchuan:

Thank you for your question. Fujian and Taiwan are bonded by deep historical connections and shared lineage. We have vibrant interactions in the realms of culture, youth exchange, and cultural integration. The guidance further bolsters support in these areas.

First, we have been expanding Fujian-Taiwan social and cultural exchanges. Sharing bonds among local village communities, engaging in rapport-building conversations, and visiting ancestral temples have always been cherished practices among the people of both Fujian and Taiwan. There are 280 pairs of villages in Fujian and Taiwan sharing the same names and origins. In Taiwan, there are more than 2,000 temples dedicated to deities like Mazu, Kaizhang Shengwang, Baosheng Emperor, and Guandi, having their ancestral temples located in Fujian. Fujian has consistently held events such as the Straits Forum and other people-to-people exchange events to facilitate visits, ancestral worship, and kinship interactions for Taiwan compatriots coming to Fujian. Since the start of this year, over 20,000 Taiwan compatriots have come to Fujian for visits, exchanges, and ancestral pilgrimages. The guidance actively responds to the aspirations of Taiwan compatriots to resume civil religion and folk custom exchanges. Its proposes support for normalized exchanges between various non-governmental organizations from both sides, and stresses the need to implement projects that trace the historical roots of Fujian-Taiwan relations and conduct Fujian-Taiwan family tree alignments, and a variety of religion and folk custom exchange activities. Recently, Alex Tsai from Taiwan discovered that his family tree in Taiwan matches exactly that in Quanzhou, Fujian province. We also encourage religious figures and other people from Taiwan to come to Fujian for short-term study. Moreover, we support exchanges and cooperation between Buddhist and Taoist communities in Fujian and Taiwan.

Second, we have been promoting exchanges and interactions between young people from Fujian and Taiwan. There are an increasing number of exchanges between the young generations of both sides, with more and more young people from Taiwan choosing to develop their careers on the mainland. Focusing on the needs of Taiwan's youths, Fujian has launched flagship exchange events such as the Straits Youth Day and the Straits Youth Forum. This year, we have also organized baseball and cycling competitions, street dance and basketball events, and other engaging, interactive, and enjoyable activities popular among the youth from both sides. We support exchanges and mutual learning between young people from Fujian and Taiwan. The guidance focuses on providing a broad platform for young people from both sides to showcase their talents and co-create their future. It encourages young people from Taiwan to come to Fujian for exchanges, proposes the establishment of regular exchange channels between youth groups from various fields and industries in Fujian and Taiwan, promotes cooperation in youth-specific sports like baseball and softball, strengthens the construction of employment and entrepreneurship platforms for the youth from both sides of the Taiwan Straits, and supports Taiwan's youth in seeking, pursuing, and realizing their dreams in Fujian so that young people of both sides grow closer, foster bonds, and strengthen ties through these exchanges.

In our work, we've encountered many admirable young individuals from Taiwan. Notably, these young people have spent years participating in the rural revitalization endeavor on the Chinese mainland, contributing to significant transformations in some relatively underdeveloped villages. The local villagers treat these young people from Taiwan as their own children. It's touching for Taiwan youths that when they hear familial terms like "Ah Ma" that sound quite familiar to them. These young individuals from Taiwan are incredibly resilient and hard-working, setting an example for the mainland youths.

Third, we have promoted integrated cultural development. The cultures of Fujian and Taiwan have shared lineage. During the Ming and Qing dynasties, a large number of people from Fujian migrated to Taiwan. Taiwan's attire, food, customs, and popular culture, such as Nanyin and Gaojia Opera, all have their roots in Fujian. I have read historical records saying that after Fujian became a province, the first contingent of soldiers that was dispatched to Taiwan hailed from Quanzhou and Zhangzhou in Fujian. In recent years, anchored by the shared cultural legacy of Fujian and Taiwan, Fujian has organized events like the Hakka Mid-Autumn Festival Gala, Hokkien Song Contest, and various cultural and academic exchange activities, consistently broadening and deepening the cultural integration between Fujian and Taiwan. The guidance encourages compatriots from both Fujian and Taiwan to jointly promote Chinese culture, safeguard its inheritance, and stimulate its innovative development. The guidance proposes the creation of more platforms for cultural industry cooperation, encourages Taiwan's cultural entrepreneurs to invest and establish businesses, looks to create pilot programs allowing Taiwan enterprises to set up radio and television program production and operation companies in Fujian, supports the joint production of films and TV programs. The guidance also encourages Taiwan compatriots to apply for the title — provincial-level inheritors of intangible cultural heritage in Fujian, jointly undertake actions to protect intangible cultural heritage, and spare no effort to promote the integrated development of culture across the Strait. In Fuzhou, many young Taiwanese have already been recognized as inheritors of intangible cultural heritage. I believe that there is immense potential in these policy measures, which will offer a stage for Taiwan compatriots, including young people, to give full play to their talents.

In conclusion, I believe that the aforementioned exchanges will be welcomed by compatriots from both sides of the Straits and are bound to yield positive outcomes. Thank you.

CRNTT:

The guidance has drawn wide attention from both sides of the Straits following its release. How will you now promote the effective implementation of the guidance? Thank you.

Pan Xianzhang:

Thank you for your question. The guidance is the first document jointly issued by the CPC Central Committee and the State Council specifically designed to deepen integrated cross-Straits development. With the deployment in place, the key now is implementation. The Taiwan Work Office of the CPC Central Committee and the NDRC will resolutely implement the decisions and deployments made by the CPC Central Committee and the State Council, take solid steps, and make sure the guidance is implemented to the letter. Specific arrangements have been made in the three following respects:

The first is to improve the implementation mechanism. The Taiwan Work Office of the CPC Central Committee and the NDRC will play a leading and coordinating role, formulate overall plans, form a dynamic optimization mechanism, and advance policy implementation, evaluation, and adjustment, and summarization and large-scale application, among other work. Within the framework of the guidance, relevant departments of the central government and state organs will take additional, new measures, strengthen policy support, and go all-out to support Fujian in exploring new mechanisms, pathways, and models for promoting integrated cross-Straits development. Fujian will better assume its principal responsibilities, set up a mechanism for coordinated implementation, leverage the roles of multiple parties involved, and introduce new methods so that the measures set out in the guidance are carried out in an innovative manner. At the same time, an expert committee will be established to help Fujian explore new channels for integrated cross-Straits development, and policy research on deepening Fujian-Taiwan integrated development will be carried out.

The second step is to consolidate the foundation of legal guarantees. We will ensure effective legal support to build a demonstration zone for integrated cross-Straits development. Certain policies and measures outlined in the guidance entail adjustments to the application of existing laws or administrative regulations, and they will only be implemented after being authorized by the Standing Committee of the National People's Congress or the State Council in accordance with the statutory procedures.

The third step is to provide financial assistance. The central government will support Fujian in conducting economic cooperation and people-to-people exchanges with Taiwan via existing financial channels. The central budget will increase its investment support for major projects in Fujian that explore new ways of cross-Straits integration.

The guidance covers various aspects of the economy and society. Promoting its effective and result-oriented implementation calls for concerted efforts of the whole Party and society, as well as the joint participation of the compatriots across the Straits. The Taiwan Work Office of the CPC Central Committee and the State Council will utilize existing working mechanisms and coordinate with related departments and Fujian province to promote policy implementation, evaluation and adjustment, summary and promotion, issuance of supporting documents, and implementation of special tasks. By doing so, we aim to foster deeper integrated cross-Straits development throughout the rest of the Chinese mainland and cement the public support for facilitating national reunification. Thank you.

Shou Xiaoli:

Due to the time limit, we'll have one last question.

SETV: 

Currently, the Chinese mainland, including Fujian, is expediting the construction of a modernized industrial system, and, with a strong industrial and innovation base, offers vast opportunities for further growth. How will the guidance support our Taiwan compatriots' and enterprises' participation in the integration of Fujian-Taiwan industrial, supply, and innovation chains? Thank you.

Cong Liang:

Thank you for your question. The mainland has now gradually developed a complete, full-fledged, and highly competitive industrial system, with industrial scales of electronic information, petrochemicals, machinery and equipment, textiles, and other light industries leading the world. In recent years, we have issued supportive policies equally applicable to our Taiwan compatriots and enterprises, encouraging them to participate in Fujian's development of electronic information, advanced equipment manufacturing, petrochemicals, modern textiles and clothing, new materials, new energy, new medicine, and other industries. In addition, we have sped up the building of a Straits regional innovation platform to open up broader prospects of development for our Taiwan compatriots and enterprises.

Going forward, we will follow the guidance and boost the integrated development of Fujian-Taiwan industrial, supply, and innovation chains by supporting manufacturing, collaborating on technology research, building collective brands, expanding market together, and partnering on capital. Measures will be taken in the four following respects.

The first is to strengthen Fujian-Taiwan industrial cooperation. We will focus our efforts on developing the Gulei petrochemical base in Zhangzhou city and the power battery cluster in Ningde city into an industrial base and advanced manufacturing cluster that pool cross-Straits production factors and resources as well as boast a global competitive edge. This aims to make the industrial and supply chains across the Straits safer and more resilient. 

The second is to innovate models of cross-Straits non-governmental capital collaboration. We will promote the establishment of a cross-Straits fund for integrated industrial development, support the innovation and upgrading of the Taiwan Equity Exchange under the Haixia Equity Exchange , and enhance the cooperation and alignment with the National Equities Exchange and Quotations. We will help more eligible, high-quality Taiwanese enterprises located in Fujian to go public and encourage more Taiwanese companies to participate in the development of the mainland's financial market. 

The third is to help Taiwan's agriculture and fishing industries, as well as small and medium-sized enterprises, develop in Fujian. We will encourage Taiwan's farmers and fishermen to participate in the integrated development of the primary, secondary, and tertiary industries in Fujian's rural areas and make it more convenient in terms of land use, financing, and domestic market expansion. Furthermore, we will support broader Fujian-Taiwan cooperation in such fields as trade in services, future industries, fashion and creative industries, and tourism resource development.

The fourth step is to cement Fujian-Taiwan cooperation on sci-tech innovation. We will encourage enterprises and research institutions in Fujian and Taiwan to jointly build platforms for generic technology R&D and make the Taiwan enterprises in Fujian more digitalized, intelligent, and internet-based. We will support Fuzhou and Xiamen to establish distinctive, complementary, and synergistic platforms for pooling talents. We will set up platforms for applying sci-tech achievements regarding the cross-Straits ecological environment and support our Taiwan compatriots' and enterprises' participation in the development of the green economy.

We hope that our Taiwan compatriots and enterprises will join us in working toward Chinese modernization and boosting Fujian's high-quality development on all fronts and jointly modernize cross-Straits industrial systems to strengthen the national economy and secure greater development for themselves. 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 Xu Xiaoxuan, Wang Qian, Liu Jianing, Zhu Bochen, Yang Xi, Zhang Tingting, Huang Shan, Wang Ziteng, He Shan, Zhang Rui, Li Huiru, Liu Qiang, David Ball, Jay Birbeck, and Tom Arnsten. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Li Guoying, minister of water resources

Mr. Zhang Xiangwei, director general of the Department of Planning and Programming of the Ministry of Water Resources (MWR)

Mr. Chen Mingzhong, director general of the Department of Rural Water and Hydropower of the MWR

Mr. Yao Wenguang, director general of the Department of Flood and Drought Disaster Prevention of the MWR

Chairperson:

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

Date:

Sept. 13, 2023

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 25th briefing in the series "Embarking on the New Journey — A Government Perspective." Today, we have invited Mr. Li Guoying, minister of water resources, to brief you on making solid progress in water management and comprehensively upgrading the country's capacity to ensure national water security, and to take your questions. In addition, we are also joined today by Mr. Zhang Xiangwei, director general of the Department of Planning and Programming of the Ministry of Water Resources (MWR); Mr. Chen Mingzhong, director general of the Department of Rural Water and Hydropower of the MWR; and Mr. Yao Wenguang, director general of the Department of Flood and Drought Disaster Prevention of the MWR. 

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

Li Guoying:

Ladies and gentlemen, friends from the media, good afternoon. I'm very grateful to friends from the media for your long-term concern and strong support for the development of water resources management.

The 20th National Congress of the Communist Party of China (CPC) has set forth clear requirements for enhancing disaster prevention, reduction and relief capabilities, as well as coordinating the management of water resources, water environment and water ecology. This has provided guidance and direction for the management of water resources in the new era. The MWR has thoroughly studied and implemented the principles of the 20th CPC National Congress, diligently putting into practice General SecretaryXi Jinping's principles of "prioritizing water conservation, balancing spatial distribution, taking systematic approaches and giving full play to the roles of both government and market" and his important expositions on water management. We have made substantial progress in promoting the high-quality development of water resources management in this new stage. This progress has provided a robust guarantee for water security as we strive to build a modern socialist country and achieve the great rejuvenation of the Chinese nation.

First, we have been making every effort to prevent floods and droughts. We prioritize the safety of people's lives and property, with the goal of ensuring "no casualties, no reservoir collapses, no breaches in important embankments and no impact on vital infrastructure." We are fully committed to ensuring the safety of urban and rural water supply and dealing with severe floods and droughts. In particular, during this year's "23-7" super large flood in the Haihe River Basin, we conducted daily analysis of rainfall, strengthened forecasting and warning measures, and effectively managed the basin's flood control engineering system. A total of 84 large and medium-sized reservoirs stored 2.85 billion cubic meters of floodwater. We efficiently managed river systems to disperse floods, utilizing eight national flood storage and detention areas to store an impressive 2.53 billion cubic meters of floodwater. There were no dam collapses or breaches in important embankments. Flooding was reduced in 24 cities and towns, and 7.51 million mu of cultivated land was protected. We were able to avoid the displacement of 4.623 million people, thus ensuring the safety of people's lives and property to the greatest extent possible.

Second, we have implemented major national water network projects. We are diligently carrying out the Outline of National Water Network Construction Plan and striving to build a comprehensive national water network that is complete, safe, reliable, efficient, green and intelligent, with smooth circulation and orderly regulation. We have accelerated the implementation of several major national water network projects, including the central route of the South-to-North Water Diversion Project (transferring water from the Danjiangkou Reservoir to Tuancheng Lake in Beijing's Summer Palace), Beibu Gulf Rim Water Resources Allocation Project, and the second phase of the Huaihe River Waterway into the Sea Project. Additionally, we are expediting the construction of water networks at the provincial, municipal and county levels. We are also revising flood control plans for major river basins such as the Yangtze River, Yellow River, Huaihe River, Haihe River, Pearl River, Songhua River, Liaohe River and Taihu Lake. Furthermore, we are enhancing the basin flood control engineering system, which primarily consists of reservoirs, rivers, embankments, and flood storage and detention areas. We are also working to improve rural water supply systems and promote the integration of urban and rural water supply, large-scale centralized water supply, and standardized construction and management of small water supply projects based on local conditions. From January to August this year, China invested a total of 985.6 billion yuan in the construction of water conservancy facilities. We initiated 23,600 new water conservancy projects and invested 736.1 billion yuan in the completion of water conservancy construction, both of which set historical records for the same period. The construction of water conservancy projects created 1.971 million jobs, providing strong support for economic recovery.

Third, we have been revitalizing the ecological environment of rivers and lakes. We are strengthening the supervision of ecological flow in rivers and lakes, implementing ecological water replenishment measures, and undertaking restoration efforts for 88 key rivers. Building upon the historic reconnection of the Beijing-Hangzhou Grand Canal last year after a centurylong hiatus, we have facilitated its reconnection once again this year. The water in the Yongding River continues to flow. We are comprehensively managing the overexploitation of groundwater in North China and 10 key areas, including the Sanjiang Plain and Liaohe Plain. We have also initiated deep groundwater replenishment projects. We are making every effort to ensure the water quality safety of the Danjiangkou Reservoir and its upstream basin, as well as the central route of the South-to-North Water Diversion Project. Additionally, we are actively promoting water and soil erosion controls in key areas such as the upper and middle reaches of the Yangtze and Yellow rivers, and the black soil area in Northeast China.

Fourth, we have stepped up efforts to promote the construction of the digital twin system for water resources management. In a systematic and well-organized manner, we have completed the top-level design of digital twins of river basins, water networks, and the project, carrying out 94 pilot programs and promoting the construction of digital twins of irrigated areas in 48 locations. The system has helped to make predictive, scientific, and safe decisions this year in terms of flood and drought disaster prevention, optimized allocation of water resources, and management and protection of water environments. 

Fifth, we have set up and improved the water conservation policy system. We have implemented a comprehensive conservation strategy, imposing rigid constraints on water use, and followed the principle of taking water availability as a determining factor in urban and industrial development, agriculture, and population distribution. We have stepped up efforts to carry out nationwide water-saving campaigns to promote water conservation in agriculture, industry, and urban areas in order to raise efficiency, reduce emissions, and cut water losses, respectively. We have made great efforts to control the total amount and intensity of water consumption and accelerated water allocation of rivers and lakes that cross provinces. Supervision and management of water drawing and water use have been strengthened. We have stepped up efforts to ensure that every unit with an annual water consumption of more than 10,000 cubic meters in the Yangtze River Economic Belt has adopted the planned water use management, while the compulsory water quota management system has been adopted in the Yellow River Basin. Moreover, we have ensured that water-receiving areas in the eastern and middle routes of the South-to-North diversion project have adopted the water conservation policy. All these efforts have been helpful in raising water use efficiency and benefits.

Sixth, we have strengthened management systems and mechanisms according to the law. The Yellow River Protection Law was launched and took effect on April 1 this year. We have also enhanced the study, publicity, and implementation of the Yangtze River Protection Law and the Yellow River Protection Law and stepped up efforts to put follow-up systems in place. The MWR, together with the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of Justice, launched a special law enforcement campaign to protect rivers and lakes. We have also worked with the Supreme People's Procuratorate to carry out a special campaign to protect water resources in the Yellow River Basin. Moreover, we have deepened the reform of water conservancy investment and financing systems and improved the system to manage the operation of water conservancy projects. More efforts have been made to strengthen the river and lake chief system and enhance the overall planning, regulation, distribution, and management so that we are able to regulate and manage water resources in a better way. 

That's my introduction. Now, my colleagues and I would like to answer the questions that you're concerned about. Thank you. 

Shou Xiaoli:

Thank you, Mr. Li. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

CGTN:

What measures has the MWR adopted to restore the ecological environment of rivers and lakes? Could you please share with us some practices and experiences in this regard? What measures will be put in place to help make more rivers and lakes benefit the people? Thank you.  

Li Guoying:

In recent years, the MWR has implemented the philosophy of innovative, coordinated, green, open, and shared development, and resolutely delivered on the guidance of General SecretaryXi Jinping's water management concept of "prioritizing water conservation, balancing spatial distribution, taking systematic approaches, and giving full play to the roles of both government and market." We have also promoted the comprehensive and systematic management of river basins and accelerated our efforts to restore the ecological environment of rivers and lakes, ensuring healthier rivers and lakes.

First, we have stepped up efforts to restore the rivers that do not flow and lakes that have shrunk or dried up. We have taken steps to replenish rivers and lakes in north China and the Beijing-Hangzhou Grand Canal. A total of 48 rivers and lakes spanning seven river systems in the Haihe River Basin were replenished in 2022, with around 7 billion cubic meters of water being replenished. By doing so, most of the rivers in North China are now clean and able to flow freely. More and more rivers are restoring life and regaining vitality. The Beijing-Hangzhou Grand Canal was fully connected for the first time in a century. As many as 88 rivers were restored in the campaign to better protect "mother rivers." We have put in place a river- and lake-targeted distribution policy to optimize the allocation of water resources. All these efforts have been significant in recovering connectivity between rivers and lakes and restoring damaged ecosystems as well.

Second, we have made great efforts to ensure the ecological flow of rivers and lakes. We have set up ecological flow targets for 171 major cross-provincial rivers and lakes, as well as those for 415 intro-provincial rivers and lakes. Given this, we have adopted a series of measures, including a unified distribution of water resources in the river and lake basins, strict control of the total amount of water drawing and water use, enhanced dynamic monitoring and early warning systems, and strict supervision and assessment in order to ensure all the aforementioned targets can be realized. In 2022, over 90% of the key rivers and lakes nationwide realized their ecological flow target, and more than 41,000 small hydro-power stations in the country basically followed the principles of "releasing and monitoring waters according to water level measurement results." All these practices have played an important role in restoring river connectivity and reviving the ecological environment of rivers and lakes.

Third, we have made more efforts to manage and protect rivers and lakes. We have strengthened the river-and-lake-chief responsibility system. We have appointed 300,000 river and lake chiefs at the levels of provinces, municipalities, counties, and townships, while at the village level, as many as 900,000 river and lake chiefs have been appointed. A joint meeting mechanism for river and lake chiefs at the provincial level over the seven major river basins have been set up, and we have enhanced the overall planning, regulation, distribution, and management of these areas. By doing so, we are able to establish a management and protection system for rivers and lakes featuring a coordinated synergy between upstream and downstream areas, left and right banks, as well as trunks and tributaries. We have tightened the control over shoreline space around the rivers and lakes and regulated the management of river and lake sand mining. We have taken advantage of such technologies as satellite remote sensing and drones to strengthen daily supervision and patrol, which will improve the efficiency of supervision over rivers and lakes. In 2022, we rectified 29,000 problems related to rivers and lakes, including indiscriminate occupation, unauthorized excavation, inappropriate dumping, and unlawful construction. These efforts have improved flood carrying and storage capacities of rivers and lakes. The environment and ecosystems of rivers and lakes have been improved as well. 

Fourth, we have expedited our approach to addressing the overexploitation of groundwater. We have expedited the establishment of dual control indicators for the total amount of groundwater extraction and the water level, ensuring strict control over the intensity of groundwater exploitation. Using measures such as "reducing, replacing, controlling, replenishing, and managing," we continuously promote the comprehensive treatment of excessive groundwater extraction in northern China. We have improved the mechanism for reporting changes in groundwater and strengthened our groundwater supervision. In 2022, the amount of groundwater extracted in the Beijing-Tianjin-Hebei region decreased by about 4 billion cubic meters compared to 2018. This led to a reduction in excessive groundwater extraction by 2.6 billion cubic meters. The proportion of groundwater supply decreased to 35% from 51% in 2018. Consequently, the groundwater level in the treatment area has achieved an overall recovery.

Fifth, we have promoted comprehensive control of soil erosion. Through measures such as strengthening the prevention of soil erosion, strictly regulating human-induced soil erosion in accordance with the law, and accelerating the treatment of soil erosion in key areas, we have made steady progress in controlling soil erosion nationwide and have steadily improved the quality and stability of the ecosystem. The country's soil erosion area was reduced to 2.6534 million square kilometers in 2022, a decrease of 83,500 square kilometers compared to 2018.

In subsequent phases, the MWR will persist in promoting the execution of crucial tasks. These include the rejuvenation of the "mother rivers," ecological preservation and restoration of rivers and lakes, comprehensive mitigation of groundwater overexploitation, and all-encompassing soil erosion control. Our goal is to ensure the health of rivers and lakes and work towards their sustainable utilization. Thank you.

Bloomberg:

Despite existing mitigation efforts, China was struck by severe flooding again this year. Climate change promises to bring more extreme weather in years to come. What new and enhanced measures is China taking to protect its people and prevent flood damage to its economy, including sectors like agriculture? Thank you.

Li Guoying: 

Thank you for your attention to China's flood disaster prevention. This year, the Haihe River Basin experienced the worst basin-wide flood since 1963. I would like to invite Mr. Yao to answer your question.

Yao Wenguang: 

Thank you for your question. Since ancient times, China's fundamental water situation has been marked by summer floods and winter droughts, with a scarcity of water in the north and an abundance in the south. Water resources are extremely unevenly distributed, both temporally and spatially. Water-related disasters, such as floods and droughts, are frequent. As a result, the development of water conservancy and flood disaster prevention has always been crucial for the country's security and stability. In addressing various flood and drought disasters, we have consistently adopted a people-centered development philosophy and implemented a range of preventative measures. In recent years, we have managed challenges like autumn floods on a rarely seen scale of the Yellow River since 1949 and the most severe meteorological and hydrological drought in the middle and lower reaches of the Yangtze River since 1961. Especially during this year's flood season, when faced with the worst flood in the Haihe River Basin since 1963, the water conservancy departments prioritized the safety of people, emphasizing the importance of life and property. Aiming for "no casualties, no dam collapses, no breaches in vital embankments, and no impact on key infrastructure," we have fulfilled our responsibilities and carried out preventive measures with meticulous care. Through these efforts, we have achieved commendable results in disaster prevention and mitigation.

First, we have carried out consultations and deployments in advance. During the occurrence and development of floods and the process of prevention and protection, consultation opinions and dispatch instructions are sent directly to the frontline of flood control and drought relief. This year, in response to the extremely severe flooding in the Haihe River Basin, the MWR activated a level-III emergency response to flooding in the Beijing-Tianjin-Hebei region on July 28, and upgraded it to level II on July 30. At the same time, 26 working groups were dispatched to the frontline to guide flood control in the region.

Second, we have strengthened measures for forecasting, early warning, and emergency planning and preparedness. We have increased the frequency of monitoring, set up emergency monitoring sections in central areas of heavy rain and vital flood discharge channels, and delivered important information directly to the front line. At the same time, we have released flood forecasts on a rolling basis, issued river flood warnings to the public, and promptly sent forecasts to the relevant provinces, cities, and units. This year, in response to the extremely severe flooding in the Haihe River Basin, water conservancy departments in the cities of Beijing and Tianjin and the provinces of Hebei, Shanxi, and Henan issued a total of 11,900 county-level flash flood warnings, alerting local governments to evacuate 139,800 people from risk areas. Authorities in Hebei, Tianjin, and Henan also activated contingency plans to relocate nearly 1 million people from flood storage and retention areas in advance.

Third, we have meticulously managed our water projects. Guided by the principle of being systematic, scientific, orderly and safe, we've regulated water projects scientifically. To address the rare autumn floods in the Yellow River in 2021, we precisely deployed the Xiaolangdi, Sanmenxia, Wanjiazhai, Guxian, and Hekou reservoirs, among others. By consistently controlling the flow at the Huayuankou hydrology station to around 4,800 cubic meters per second, we effectively avoided the need for relocating 1.4 million people in the downstream area and saved a total of 3.99 million mu of farmland. To counter the unusual drought in the upper and middle reaches of the Yangtze River in 2022, we organized and implemented two rounds of joint reservoir group water supply operations within the Yangtze River basin. We accurately deployed a total of 75 reservoirs, including those within the upper reach of the Yangtze River, centered around the Sanxia Reservoir, as well as the Dongting Lake and Poyang Lake. As a result, a total of 6.16 billion cubic meters of water was supplied downstream, ensuring irrigation for around 183 million mu of autumn grain crops along the water supply line. In dealing with this year's heavy floods in the Haihe River Basin, we scientifically managed 84 large and medium-sized reservoirs in the Beijing-Tianjin-Hebei region. Additionally, we utilized eight flood storage and detention areas to divert, store, and control the floods, giving full play to the role of the river basin flood control engineering system in flood control and disaster relief. This proactive approach minimized the damage caused by flooding, ensuring the safety of both people's lives and their property.

Fourth, we have strengthened efforts in inspection and prevention. The water conservancy departments have made full use of technological advantages, dispatching experts to the front lines to combat floods, droughts and other dangers and to provide guidance on identifying hidden dangers and carrying out rescue operations in a scientific way. In dealing with the heavy floods in the Haihe River Basin this year, the Beijing-Tianjin-Hebei region deployed over 220,000 inspections of dikes, addressing 131 dangerous dike and reservoir situations. Thanks to the joint efforts of multiple parties, no reservoirs or dams collapsed, no major dikes failed, and there were no mass casualties during the heavy floods in the Haihe River Basin.

For the next steps, the MWR will collaborate with relevant departments and local governments to step up efforts for the improvement of the river basin flood control engineering system. We will expedite the construction of flood detention reservoirs as well as embankments and flood control facilities in flood storage and detention areas, bolster the management of key river channels, and advance the management of small and medium-sized rivers and mountain flood ditches. Concurrently, we'll hasten the establishment of "three lines of defense" for rainwater monitoring and forecasting. We will advance the construction of digital twins for river basins and the capacity building for forecasting, early warning, and emergency planning and preparedness. We will improve systems, mechanisms, and law-based governance in this regard, strengthen the management of flood storage and detention areas and the spatial control of river channels, and comprehensively enhance our capacity to prevent floods, droughts and other disasters. Thank you.

Beijing Youth Daily:

We all know that food security is among the country's most fundamental interests. Irrigation areas remain a basic guarantee of food security. What efforts have been made by the MWR to build and upgrade irrigation areas? Thank you.

Li Guoying:

Mr. Chen Mingzhong, director general of the Department of Rural Water and Hydropower, will answer your question. 

Chen Mingzhong:

Thank you for your question. Water conservancy is the lifeblood of agriculture. The climatic characteristics and the basic water situation of our country determine that bumper harvests cannot be guaranteed without irrigation. The MWR will accelerate the construction of modern irrigation areas and the transformation of existing ones, strengthen institutional innovation, and give full play to the role of irrigation areas as the "main force" and "ballast stone" in the production of grain and other important agricultural products. As of now, China has an irrigated area of 1.055 billion mu, accounting for 55% of the country's total arable land and producing 77% of the country's grain and more than 90% of cash crops. We have mainly implemented measures from the following several aspects.

First, enhancing the irrigation and drainage engineering system. We have constructed over 7,300 large and medium-sized irrigation areas, creating a comprehensive engineering network system which can help to store, divert, lift, deliver and drain water. During the 14th Five-Year Plan period (2021-2025), we will carry out the renovation and modernization of more than 1,200 large and medium-sized irrigation areas across the country. Once completed, it is expected to increase or restore the irrigated area by 17.8 million mu, improve the irrigated area by 117 million mu, and raise grain production capacity by nearly 10 billion kilograms. This year, the central government plans to invest 16.6 billion yuan to renovate 581 large and medium-sized irrigation areas, marking an increase of 7 percentage points over the investment in 2022. As of now, the projects have been generally going smoothly. In collaboration with agricultural and rural departments, we will prioritize transforming large and medium-sized irrigation areas into high-standard farmland. We will address the final significant challenges in the construction of irrigation and drainage for farmland, and establish an irrigation and drainage system that extends from the water source and backbone river channels right to the end of the field.

Second, further expanding the irrigated area. We will collaborate with relevant departments to expedite the formulation of the National Farmland Irrigation Development Plan. With a focus on functional zones for grain production, major agricultural product protection areas, and areas with distinctive agricultural products, we will enhance the analysis of land and water resources and construct several water-saving and ecological irrigation areas in coordination with water source projects and water transmission and distribution projects in the national water network. During the "14th Five-Year Plan" period (2021-2025), we will construct 30 large-scale irrigation areas. It is expected to expand the irrigated area by 15 million mu, improve the existing irrigated area by 9.8 million mu, and increase grain production capacity by approximately 3.5 billion kilograms.

Third, sparing no effort to ensure water supply for irrigation. We conduct precise analysis and dynamic prediction regarding the structure of crop planting, water demand periods, and the volume of water required. To meet the water needs of crops, we bolster flood control and water storage operations in major rivers and key reservoirs, reserving water sources in case of drought. We take a targeted approach to combatting drought. Based on the water source and incoming water situation in irrigation areas, we make every effort to ensure the seasonal irrigation water supply for crops with precise scope, targeting, timing, and measures. This year's spring and summer irrigation provided a total of more than 250 billion cubic meters of water, achieving the goal of "full irrigation" and offering robust water conservancy support for the bumper harvest of wheat, corn, rice and other crops.

Fourth, innovating systems and mechanisms. We will start with the deepening of comprehensive agricultural water price reform. We are initiating the first batch of 21 modern irrigation areas and county-level pilot projects nationwide in accordance with the principles that promote efficient and sustainable use of water resources, encourage the modernization of irrigation areas by attracting social capital, and avoid adding to the burdens on farmers in grain production. We have categorized water pricing, optimized policy support, and encouraged social capital involvement, implementing a dual approach to build a group of modern irrigation areas that are technologically advanced, water-efficient, well-managed, and environmentally friendly. Thank you.

China News Service:

The CPC Central Committee and the State Council have issued the Outline of National Water Network Construction Plan, offering explicit instructions and requirements for accelerating the establishment of the national water network. I would like to ask about the current progress and achievements of the national water network construction project.

Zhang Xiangwei:

The MWR has faithfully implemented the deployment of the Outline of National Water Network Construction Plan, and, in conjunction with relevant departments and local authorities, has accelerated the development of the national water network, achieving significant results. This is mainly manifested in four aspects:

First, the core structure and aorta of the national water network have improved at a faster pace. The initial phase of the South-to-North Water Diversion Project's Central Route has cumulatively transferred 65.4 billion cubic meters of water, directly benefiting a population of 176 million. At the same time, we have actively promoted the high-quality development of follow-up projects for the South-to-North Water Diversion, and in 2022, construction began on the Middle Line Diversion from the Yangtze River to the Han River, marking the start of the high-quality development for the follow-up projects of the South-to-North Water Diversion Project. This project connects two important nodes of the national water network: the Three Gorges and Danjiangkou reservoirs, both of which are strategically important water sources for our country. It will increase the annual water transfer capacity of the South-to-North Water Diversion Central Route from 9.5 billion cubic meters to 11.5 billion cubic meters, further enhancing the integrated allocation capacity of water resources in the Yangtze River, Han River, and the North China Plain.

Second, a number of cross-basin and cross-region major water diversion projects have been completed, yielding substantial benefits. The first phase of the Yangtze River-to-Huaihe River Diversion Project achieved successful trial water diversion and navigation at the end of last year. This historic "handshake" between the Yangtze River and the Huaihe River will generate significant comprehensive benefits in terms of urban and rural water supplies, the development of the Yangtze-Huaihe River shipping route, and the enhancements to the ecological environment, benefiting a population of 51 million people in 15 cities in Anhui and Henan provinces. In addition, the Hanjiang-to-Weihe River water diversion project in Shaanxi started diverting water, bringing together the waters of the Yangtze River and the Yellow River in the Guanzhong Plain, benefiting more than 14 million people in the Guanzhong and northern Shaanxi regions. Furthermore, the Ebei North Water Resources Project in Hubei has achieved full water supply, benefiting over 4.8 million people and more than 3.8 million acres of farmland in northern Hubei.

Third, the construction of key projects in the national water network has accelerated significantly. While speeding up the progress of a number of ongoing projects such as the Dianzhong Water Diversion, East Zhuang in the Yellow River Basin, and Datengxia in the Pearl River Basin, we have also started construction on several strategically important backbone projects last year, including the second phase of the Yangtze River-to-Huaihe River Diversion Project, the Guangdong Water Resources Allocation Project in the Beibu Gulf region, and the second phase of the Huaihe River Estuary Waterway. This year, we have also started construction on key projects like the Jilin Water Network Backbone Project and the Xiongan Canal of the South-to-North Water Diversion Central Route. These projects will play a crucial role in ensuring water security for the implementation of key national strategies and the promotion of high-quality regional development.

Fourth, the planning and construction of water networks at provincial, municipal, and county levels are advanced in a coordinated manner. Last year, the MWR initiated the construction of the first batch of seven provincial-level water network pilot zones, forming a set of exemplary practices in terms of organization, project advancement, digital twin water network construction, and institutional mechanism innovation. Guided by these pilot zones, various provinces have actively promoted the construction of water networks at the provincial, municipal, and county level, focusing on connecting the "last mile" of water networks.

Next, the MWR will focus on the overall objective of comprehensively enhancing national water security. We will put into action the requirements of the Outline of National Water Network Construction Plan, vigorously promote the high-quality development of follow-up initiatives for the South-to-North Water Diversion Project, expedite the groundwork of several major water projects to facilitate prompt commencement of construction. At the same time, we will guide localities in actively promoting the planning and construction of water networks at provincial, municipal, and county level and accelerate the improvement of the overall framework of the national water network. Thank you.

China Daily:

The report of the 20th CPC National Congress has put forward that we will implement a comprehensive conservation strategy, conserve resources of all types and use them efficiently. Could you please share what achievements the MWR has made in implementing the guideline of "prioritizing water conservation" and the national water conservation actions? What are the upcoming initiatives? Thank you.

Chen Mingzhong:

Thank you for your questions. In April 2019, following a review by the Central Commission for Comprehensively Deepening Reform, the National Development and Reform Commission (NDRC) and the MWR jointly released a national action plan for water conservation. Since the introduction of this plan, the MWR has adhered to and implemented a guideline of "prioritizing water conservation," collaborating with 20 State Council departments to establish a water conservation coordination mechanism. Together with the NDRC, we have issued detailed plans for specific departmental responsibilities. Furthermore, we have directed 31 provinces, autonomous regions, and municipalities to create provincial-level plans. These plans promote six primary actions: dual control of the total amount and efficiency of water usage, agricultural water-saving and efficiency enhancement, industrial water-saving and emission reduction, urban water-saving and loss reduction, water-saving and exploring new water sources in key areas, and a focus on technological innovation. Related systems and mechanisms have been deeply refined and various tasks were implemented and produced positive results.

By implementing the national action plan for water conservation, China has significantly enhanced its water-use efficiency and brought more beneficial results, leading to a marked improvement in societal awareness about water conservation. In 2022, water consumption per 10,000 yuan of GDP decreased by 33%, and water consumption per 10,000 yuan of industrial added value decreased by 50% compared to 2015. The effective utilization coefficient of irrigation water in farmlands increased from 0.536 in 2015 to 0.572. The country's total water consumption was maintained at under 600 billion cubic meters, fully meeting the primary annual objectives outlined in the plan. This has yielded notable social, economic, and ecological benefits, paving the way for broader developmental opportunities through water conservation. 

Going forward, we will carry out a comprehensive conservation strategy, fully implementing the inter-departmental coordination mechanism for water conservation. We will strengthen coordination among departments and localities, continuously implement the national action plan for water conservation, establish and refine water-saving policies and regulations, enhance supervision and management of water conservation, develop water-saving industries and technologies, raise the public's awareness of water conservation, and vigorously promote water-saving across society. Thank you.

ThePaper.cn: 

Issued by the CPC Central Committee and the State Council, the overall plan for building a digital China proposes constructing a smart water conservancy system centered on digital twin watersheds. Please explain the profound significance of building such a smart water conservancy system for ensuring national water security. Additionally, how is the MWR advancing smart water conservancy? Thank you.

Li Guoying:

I appreciate your keen interest and attention regarding this issue. The MWR has been diligently studying and implementing General SecretaryXi Jinping's thought on boosting China's strength in cyberspace and his key remarks on the management of water resources. We rigorously enact the decisions and arrangements of the CPC Central Committee and the State Council. We consider the smart water conservancy as one of the six sensible ways for improving water conservancy as we enter a new stage. We adhere to the principles of demand-driven, practical-first, digital empowerment, and capability enhancement and utilize the new generation of information technology, in order to systematically establish a digital twin water conservancy system and provide forward-looking, science-based, precise, and secure support for water conservancy decision-making and management.

The digital twin water conservancy system is a measure for advancing smart water conservancy. When carrying out this work, we focus on three main aspects:

The first concerns the development of digital twin watersheds. With the primary goal of providing comprehensive support for unified watershed planning, governance, coordination, and management, our focus is on strengthening watersheds' resilience against floods and droughts, promoting the efficient conservation and utilization of water resources, optimizing water resource allocation, and better preserving water ecosystems. And we achieve this by enriching data, optimizing algorithms, and enhancing computing power to accelerate the digital mapping, intelligent simulation, and forward-looking rehearsal of all elements within watersheds and the comprehensive processes of water conservancy governance and management.

The second involves building digital twin water networks. Our main objective is to create a well-developed system that is safe and reliable, intensively managed and efficient, and green and intelligent, as well as featuring smooth circulation, and orderly regulation and control. Our efforts are concentrated on ensuring the safety of projects, water supply, and water quality. We do solid work in the planning, design, construction and full life cycle management of projects to achieve synchronized simulation operation. This facilitates interaction between the virtual and real components, ensuring iterative optimization.

The third is building digital twin projects. With the aim to ensure the safety of water conservancy projects and maximize their benefits, we rapidly advance the application of Building Information Modeling (BIM) technology throughout the entire lifecycle of water conservancy projects. This enables projects-related online monitoring, scenario rehearsals, problem identification, optimized coordination, and safety guarantees. Thank you.

Cover News:

This year, the General Office of the CPC Central Committee and the General Office of the State Council released opinions on strengthening water and soil conservation in the new era. May I inquire about the effectiveness of the work in this field and how the regulation over human-induced water loss and soil erosion will be enhanced in next steps? Thank you.

Li Guoying:

The issue of water and soil loss is closely related to systematic watershed governance. Mr. Yao Wenguang, please answer the questions.

Yao Wenguang:

Thank you for your questions. Since the issuance of the opinions, the MWR has diligently implemented the decisions and arrangements of the CPC Central Committee and the State Council. We have promptly formulated implementation plans, clarified implementation measures, outlined the division of responsibilities, and specified work requirements to facilitate the execution of various tasks. According to the latest monitoring results from the MWR, the national soil erosion area decreased to 2.6534 million square kilometers in 2022, a reduction of 83,500 square kilometers compared to 2018. The situation of soil erosion in China has been reversed step by step, and ecosystems improved steadily .

First, we have prioritized protection and employed the strictest regulations and most rigorous rule of law to safeguard water and soil resources and strictly control any increase in human-induced soil erosion. We have comprehensively implemented the Soil and Water Conservation Law and strengthened ongoing and ex post oversight. Using tools like satellite remote sensing, we have achieved complete coverage of remote sensing supervision for soil and water conservation in production and construction projects, allowing us to promptly detect and address relevant violations in accordance with laws and regulations.

Second, we have persisted in systematic governance and adopted a scientific approach to comprehensively address soil erosion, aiming to rapidly reduce existing erosion. We have prioritized regions such as major rivers' upper and middle reaches, the black soil region in northeastern China, the karst region in southwestern China, the water source areas of the South-North Water Diversion Project, and the Three Gorges Reservoir area. We have implemented national key soil and water conservation projects tailored to local conditions while ardently promoting the construction of ecologically clean small water basins.

Third, we have persisted in reform and innovation, strengthening the management capabilities and standards of soil and water conservation while enhancing the quality of soil erosion control. We have established a system for soil and water conservation rates, encompassing the national, provincial, city, and county levels. We have advocated for creating inter-ministerial coordination mechanisms and a responsibility system for soil and water conservation targets. These measures will help expedite the development of a soil and water conservation framework in which Party committees exercise leadership, the government assumes responsibility, departments coordinate, and the public from all sectors participate.

Regarding strengthening the supervision of human-induced soil erosion, we will focus on the following three aspects:

First, we will establish a comprehensive supervision system for soil and water conservation that encompasses the entire chain and process. We will implement soil and water conservation plans for production and construction projects in accordance with the law and enhance comprehensive supervision at every stage. The standards for preventing and controlling soil and water erosion during production and construction activities will be improved. We will also set differentiated and targeted requirements based on the unique characteristics of different regions and industries, facilitating the implementation of classified and precise regulations.

Second, we will establish a precise and efficient regulatory mechanism. We will adopt a new regulatory framework that relies primarily on remote sensing supervision, complemented by key regulatory measures and based on credit supervision. Comprehensive and regular remote sensing oversight for soil and water conservation will be carried out. Illegal activities will be strictly investigated and addressed in accordance with the law. We will implement a full-scale credit evaluation for soil and water conservation, minimizing interference with compliant enterprises while focusing our intensive regulatory efforts on non-compliant enterprises and high-risk projects. We will enhance tracking and early warning for human-induced soil erosion risks, and aim to make our regulatory measures more precise and intelligent.

Third, we will strengthen inter-departmental coordination in supervision and law enforcement. We will establish mechanisms to ensure that administrative law enforcement aligns with criminal justice and collaborates with public interest litigation led by prosecutorial authorities to fully leverage the role of judicial oversight. Through strengthened collaborative regulation, we will ensure enterprises fulfill their responsibilities in soil and water conservation. Thank you.

Nanfang Daily:

The report to the 20th CPC National Congress made the deployment to optimize the layout, structure, functions, and system integration of infrastructure with the aim of constructing a modern infrastructure system. In line with this deployment, how is the water conservancy infrastructure being developed? Could you shed light on the progress made to date and the considerations for the next steps? Thank you.

Zhang Xiangwei:

Thank you for your question. Water conservancy is a vital component of the modern infrastructure system. The MWR adheres to a systematic planning approach, considering the short-term, medium-term, and long-term perspectives. We have accelerated efforts to optimize the layout, structure, functions, and system integration of water conservancy infrastructure, striking a balance between existing infrastructure and new developments to enhance network efficiency.

In terms of the layout, the CPC Central Committee and the State Council issued the Outline of National Water Network Construction Plan, making top-level designs and strategic deployments on the national water network based on overall and spatially balanced allocations of water resources in drainage basins. Following the requirements of the guideline, the MWR has done the following work alongside related departments and local governments. First, we have actively promoted the revision of the master plan for the South-to-North Water Diversion Project and expedited the improvement of the core framework and vital arteries of the national water network. Second, we have initiated the planning for regional water networks and aim to complete the formulation and approval of provincial-level water network plans this year. We will design a sound layout for water networks at the provincial, municipal, and county levels and establish a holistic national water network step by step. Third, we have begun to revise the flood-prevention plans for the drainage basins of China's seven major river basins, aiming to foster a new landscape in drainage basin flood prevention and disaster mitigation.

In terms of the structure, we have optimized the water network structure with a focus on building connections, improving the network, and strengthening links based on the three elements of "backbones, links, and knots." First, we have strived to build the backbones of the national water network. On the basis of the main streams of large rivers as well as major rivers and lakes, we have accelerated the planning and construction of a number of major water diversion projects represented by the eastern, central, and western routes of the South-to-North Water Diversion Project. We have also worked to make sure the dykes along the main streams of large rivers meet standards. Second, we have worked to expand the links of the national water network. We have proactively advanced the construction of a number of key water network projects at the provincial level, including the second phase of the central Yunnan water diversion project, the water conservancy project that diverts the Dadu River into the Minjiang River in Sichuan, and the water resource allocation project in diverting water from the Yellow River to Xining in Qinghai. Through these projects, we aim to realize the interconnectivity of critical water resource allocation projects at the national, regional, and provincial levels, improve the water networks across the provincial, municipal, and county levels, and develop a water network system featuring integration and interconnectivity between urban and rural areas. Third, we have made efforts to fasten the knots woven into the national water network. We have moved faster to implement a group of water conservancy and key water source projects, such as the Guxian water control project and Heishan Gorge water conservancy project along the Yellow River, the Yangxi water conservancy project in Guangxi, and the Huatanzi reservoir project in Guizhou, as well as sped up the building of key floods storage areas. 

In terms of the function, after taking into consideration multiple functions, including flood prevention, water supply, irrigation, shipping, power generation, and ecological conservation, we have strengthened the joint management of water projects in drainage basins to better regulate water resources. We have leveraged the functions of the projects in a holistic manner to systematically address the issues concerning water resources, ecosystem, environment, and disasters so as to secure economic, social, ecological, and safety benefits simultaneously.

In terms of system integration, we have synchronized the building of digital twin basins, digital twin water networks, and digital twin water projects, enhanced the forecasting, early warning, preview, and contingency plan functions of water network regulation and operation management so as to render the construction, operation, and regulation of water networks more digitalized, internet-based, and intelligent.

Going forward, we will vigorously implement key national water network projects, improve flood prevention projects in drainage basins, and restore the ecological environment of rivers and lakes at a faster pace. We will also promote the digital twin water projects. We will introduce and upgrade water-saving systems and policies, strengthen the management of water conservancy systems and mechanisms under the rule of law, and promote the high-quality development of water resources in the new development stage so as to ensure water security for advancing a Chinese path to modernization. Thank you.

CNR:

Rural water supply affects the work and life of hundreds of millions of rural residents. What are the developments in the construction of China's rural water supply projects and management systems? What measures has the MWR taken to boost rural water supplies? Thank you.

Chen Mingzhong:

As you said, rural water supply affects the work and life of hundreds of millions of rural residents. Knowing well that ensuring rural drinking water safety is a key indicator of consolidating our achievements in poverty alleviation and advancing rural revitalization, the MWR has taken a variety of measures to ensure rural drinking water safety at a faster pace. 

First, we have prioritized advancing the integration of urban and rural water supplies and a large-scale construction of centralized water supply. In accordance with the principle of "building large networks, integrating the medium-sized, and reducing the small-sized," we have promoted the interconnection and integration of urban and rural water supply networks, connected, expanded, and integrated networks where possible, and facilitated the realization of unified water sources, networks, quality standards, services, and regulations for urban and rural water supplies in areas with suitable conditions. We have leveraged the roles of the government and market in tandem and raised funds through multiple channels, including local government special bonds, bank loans, and private capital, while increasing government investments. In the first eight months of the year, investments in rural water supply projects among all localities reached 98.88 billion yuan, including 38.33 billion yuan in special local government bonds, 27.35 billion yuan in bank loans, 15.85 billion yuan in private capital, and 17.35 billion yuan in government funds at all levels. A total of 73.65 billion yuan has been used to launch the construction of 15,692 rural water supply projects, with 9,029 having been completed, improving water supplies for 38.25 million rural residents. 

Second, we have further carried out a special campaign to improve the quality of water supplied in rural areas. As we all know, the health standard for drinking water was implemented on April 1 of this year. That is a new standard. In accordance with the new standard, we have improved the implementation plan and worked with ecology, environment, and health departments to accelerate the designation of protection zones or areas for sources of rural drinking water. We have provided water purification and disinfection equipment, regulated the daily inspection of the water quality from water supply units and the patrol of the water quality by regional water quality testing centers, and moved faster to build and improve a system to ensure source-to-tap water quality.

Third, we have enhanced the capacity of small and miscellaneous water supply projects in securing the supply of drinking water. We have promoted the standardized construction and renovation of small water supply projects in accordance with local conditions in places where people have no access to centralized water supply networks to reduce the number of people who get their drinking water from water cellars and tanks in rural areas. We have intensified the comprehensive investigation and dynamic monitoring of rural drinking water conditions and discovered and handled problems in rural water supplies as soon as they emerged to ensure problems are solved in a timely manner. We have spared no effort to maintain drinking water safety in the fight against floods and droughts to ensure the basic drinking water needs of the people. We have worked with the Ministry of Finance to allocate 3 billion yuan in subsidies from the central government to renovate and maintain rural water supply projects, with 4.25 billion yuan allocated from local governments for the renovation and maintenance of rural water supply projects. Over 68,000 rural water supply projects have been renovated and maintained this year, providing services for 146 million people in rural areas.

Fourth, we have sped up advancing the specialized management and maintenance of rural water supply projects. We have actively taken steps to advance the unified management of water supplies within counties or regions. Water supply projects with a daily supply of over 1,000 tons of water to more than 10,000 people, and projects with a daily supply to over 1,000 people have adopted commercialized and specialized management systems. We entrust small projects to specialized companies for unified and improved management. We have enhanced the standardized management of centralized rural water supply projects and advanced the construction of digital twin systems for rural water supply projects. We have improved the mechanism for the setting and charging of water prices to ensure the long-term operation of rural water supply projects. So far, a total of 6.78 million rural water supply projects have been established, serving 870 million people. Tap water coverage in rural areas has reached 88%, and the proportion of rural population covered by urban-rural integration and large-scale water supply projects stands at 57%. Thank you.

Shou Xiaoli:

Due to time constraints, the last question, please.

Phoenix Satellite Television:

The law on the conservation of the Yellow River was passed at the standing committee session of the National People's Congress on Oct. 30, 2022 and took effect on April 1 of this year. It has become a new milestone in the protection and governance of the Yellow River. What measures will be taken by the MWR next to advance relevant work? Thank you.

Li Guoying:

The promulgation of the law on the conservation of the Yellow River provides legal protection to promote ecological conservation and high-quality development in the Yellow River basin. The MWR will resolutely perform duties in accordance with the law and work on the six aspects to ensure the implementation of the law on the conservation of the Yellow River. 

First, we will give priority to the development of supporting institutions. We will review the requirements concerning the development of supporting institutions, speed up developing relevant supporting institutions, improve the system of institutions and standards for water conservancy in the Yellow River basin, and advance the orderly linking up, coordination, and unification of laws, institutions, and rules.

Second, we will improve the water conservancy planning system for the protection and management of the Yellow River. We will work to review the implementation of and revise plans concerning the Yellow River basin and give play to the guiding and binding role of plans. At present, we have approved and implemented the plan for the protection and utilization of important river courses and shorelines and initiated the revision of the plan for flood prevention in the Yellow River basin across the board.

Third, we will enhance security in water and sediment regulation and flood prevention of the Yellow River. We will improve the water and sediment regulation system and accelerate the establishment of a system of flood prevention projects in the Yellow River basin, mainly consisting of reservoirs, river courses, embankments, and flood storage and detention space. We will move faster to initiate and construct flood-control reservoir projects and develop flood prevention projects in the lower reach of the Yellow River and ensure the embankments in its upper reach meet standards. We will improve the plan for water and sediment regulation in the Yellow River basin and enhance the unified coordination and management within the basin. 

Fourth, we will promote the economical and intensive use of water resources in the Yellow River basin. We will uphold the guideline of "prioritizing water conservation," impose rigid constraints on water resources, control both the amount and intensity of water withdrawal and use, and strictly implement water resource assessments and the permit system for water withdrawal to make solid progress in the battle to further save water in the Yellow River basin.

Fifth, we will strengthen the conservation and restoration of water ecosystems in the Yellow River basin. We will enhance the management and control of the ecological flow and water level of the Yellow River's mainstream and tributaries. We will focus on the prevention and control of soil erosion in key areas, tighten the regulation of human-induced soil erosion, and continue to take comprehensive measures to control the over-abstraction of groundwater.

Sixth, we will improve our capacity and level of river basin management. We will establish and improve joint meeting mechanisms for river and lake chiefs at the provincial level. We will step up collective law enforcement, enhance the development of mechanisms for joint case handling, clue transfer, and coordination across river basins, and continue to make law enforcement more effective. We will work with the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of Justice to launch a special law enforcement campaign to protect the security of rivers and lakes. We will collaborate with the Supreme People's Procuratorate to initiate a special campaign to protect water resources in the Yellow River basin, build a coordination platform for procuratorial public-interest litigation in the basin, and take practical measures to improve the governance and management capacities of the river basin. Thank you. 

Shou Xiaoli:

Thanks to all the speakers and friends from the media. Today's briefing is hereby concluded. See you.

Translated and edited by Wang Yiming, Wang Qian, Gong Yingchun, Zhou Jing, Huang Shan, Qin Qi, Wang Wei, Xiang Bin, Li Huiru, Zhang Rui, Liu Sitong, Liu Caiyi, Yuan Fang, Xu Xiaoxuan, Yang Xi, 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.

Read in Chinese

Speakers:

Mr. Tang Dengjie, minister of civil affairs

Mr. Zhan Chengfu, vice minister of civil affairs

Mr. Li Baojun, spokesperson of the Ministry of Civil Affairs (MCA) and director general of the General Office of the MCA

Mr. Liu Xitang, director general of the Department of Social Assistance of the MCA

Mr. Yu Jianliang, director general of the Department of Elderly Service of the MCA

Chairperson:

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

Date:

Sept. 12, 2023

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 24th briefing in the series "Embarking on the New Journey — A Government Perspective." Today, we have invited Mr. Tang Dengjie, minister of civil affairs, to brief you on promoting the high-quality development of civil affairs work, and to take your questions. Also present today are Mr. Zhan Chengfu, vice minister of civil affairs; Mr. Li Baojun, spokesperson of the Ministry of Civil Affairs (MCA) and director general of the General Office of the MCA; Mr. Liu Xitang, director general of the Department of Social Assistance of the MCA; and Mr. Yu Jianliang, director general of the Department of Elderly Service of the MCA.

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

Tang Dengjie:

Ladies and gentlemen, friends from the media, my colleagues and I are very glad to meet you today and share with you the MCA's work in the first year of fully implementing the guiding principles of the 20th National Congress of the Communist Party of China (CPC). First, on behalf of the MCA, I'd like to express my sincere gratitude to you for your continued care and support for the civil affairs work. 

Civil affairs work relates to people's livelihoods and resonates with their sentiments. It ensures that public services can secure the basic living standards of those most in need and meet essential needs. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to civil affairs work, and the CPC Central Committee and the State Council have made a series of important deployments. As a result, historic achievements and transformations have been secured in the undertaking of civil affairs, greatly contributing to the nation's reform, development and stability.

The 20th CPC National Congress drew up an inspiring blueprint of building China into a modern socialist country in all respects, made the deployment of advancing the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization, and set up the major tasks of improving the people's well-being and raising their quality of life. The civil affairs departments hence undertake such glorious responsibilities and missions along the new journey toward building a stronger nation and realizing national rejuvenation. Since the beginning of this year, all levels of civil affairs departments have thoroughly implemented the decisions and deployments made by the 20th CPC National Congress, and held themed educational activities for the in-depth study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. In accordance with the general requirements of studying the Thought, enhancing Party consciousness, emphasizing practices and making new achievements, the civil affairs authorities have strived to forge inner strength, enhance intelligence, improve conduct and advance their work through learning, so as to break new ground on the new journey toward the high-quality development of civil affairs work in the new era. Our work is reflected in the following respects:

We have earnestly fulfilled our responsibilities of ensuring the basic living standards of extremely vulnerable groups, and continued to improve people's well-being and promote common prosperity. We have borne in mind General Secretary Xi Jinping's expectations of "giving special attention, care and support to extremely vulnerable groups," and upheld the principles of meeting basic needs, helping those most in need, providing timely help to those in urgent need and ensuring sustainability. We have continued to improve the multi-tiered and categorized social assistance system that prioritizes basic living assistance, targeted social assistance and emergency social relief and is supplemented by social assistance forces, with the aim of ensuring the basic livelihoods of extremely vulnerable groups. This year, we have focused on expanding the reach of the subsistence allowance policy and bolstering support for those just outside the margin of eligibility and those facing expenditure-related hardship. We have advanced the provision of local temporary relief for people with urgent or special needs, established effective mechanisms for coordinating government assistance and charitable support, and promoted a holistic assistance approach that combines material aid with services. We have improved measures to support orphans and de facto orphans, and enhanced the service capabilities of child welfare institutions. We have strengthened targeted management in providing living allowances for people with disabilities in need and paying nursing costs for people with severe disabilities. Through a multi-pronged approach and strengthened accountability, we have woven a tight and robust safety net to provide a cushion for those most in need.

We have thoroughly implemented a proactive national strategy in response to population aging and strived to develop elderly care programs and services to improve the quality of life for elderly people. At the 20th CPC National Congress, major plans were made for pursuing a proactive national strategy in response to population aging and making basic elderly care available to the entire elderly population. This year, the reform of Party and state institutions has strengthened the MCA's responsibilities for coordinating, supervising, guiding, organizing, and promoting elderly care work. The civil affairs authorities at all levels have fully implemented the decisions and plans of the CPC Central Committee and focused their work on meeting elderly people's needs for basic elderly care. We have accelerated the establishment of a sustainable basic elderly care system that covers the entire elderly population, with clearly defined rights and responsibilities and appropriate levels of support so as to ensure a stronger sense of fulfillment, happiness, and security for our elderly people. This year, our focus is on the implementation of institutional reform plans. We have improved the systems and mechanisms for elderly care work, guided all localities to formulate and improve a list of basic elderly care services, and supported all localities in improving at-home and community elderly care services. We have also carried out age-friendly home renovation projects for elderly people with special difficulties, guided and supported elderly care institutions to increase their supply of nursing beds, formulated policies and measures to develop elderly care services in rural areas, and stepped up training of elderly care personnel.

We have actively improved social governance and public services involving civil affairs work to better serve high-quality development. In terms of social organization management, we have continued improving a system to support, guide, supervise, and manage social organizations. We provided guidance for social organizations to pair up with and provide support for 160 key counties that were designated to receive assistance for rural revitalization and provide support for the employment of college graduates. Also, we encouraged industry associations and chambers of commerce at all levels to ease burdens on enterprises, launched special actions to crack down on illegal social organizations, and further leveraged the active role of social organizations in serving the people, enterprises, industries, and society. In terms of the development of charity, we held the 12th China Charity Awards ceremony, improved policies and measures to promote the development of public interest activities and charity, and provided guidance for more enterprises, social organizations, and individuals who have the desire and ability to participate in charitable and public-interest initiatives. In terms of public services, we actively streamlined and improved the government review and approval process as well as related procedures, expanded pilot programs for inter-provincial marriage registration, carried out actions to manage rural geographical names, and ensured more government services are handled at one-stop service locations, accessible online, or via cellphone applications so as to bring more convenience and benefit to the people and enterprises.

On the new journey, the civil affairs authorities at all levels will 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 firmly uphold Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Party Central Committee's authority and its centralized, unified leadership. We will enhance cohesion and forge inner strength with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles of General Secretary Xi Jinping's important instructions on civil affairs work and the decisions and plans of the CPC Central Committee and the State Council. Always keeping the country's most fundamental interests in mind, we will pursue the high-quality development of civil affairs work and make our contribution to building a modern socialist country in all respects.

That concludes my introduction to our civil affairs work. Next, my colleagues and I are happy to communicate with you and answer your questions. Thank you.

Chen Wenjun:

Thank you, Mr. Tang. Now, you are welcome to raise questions. Please identify the news organization you represent before asking your questions.

Nanfang Metropolis Daily:

This March, the plan on reforming of Party and state institutions specified efforts to improve the elderly care work mechanism, and strengthened the MCA's responsibilities for promoting elderly care programs. My question is, as the problem of population aging becomes more serious, what are the MCA's considerations for the next step for promoting the development of both elderly care programs and elderly care services? Thank you.

Tang Dengjie:

Thanks for your question. Population aging is a problem facing most countries in the world, and also a major issue we must tackle in advancing Chinese modernization. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to the work related to population aging. It profoundly expounded the importance of addressing population aging from a strategic perspective, systematically clarified the principles and approaches to tackle this problem, and fully deployed the tasks and measures to promote related work, thereby providing sound guidance and strong guarantee for improving our response to population aging in the new era. The 20th CPC National Congress stressed that "we will pursue a proactive national strategy in response to population aging, develop elderly care programs and services, and provide better services for elderly people who live alone. By doing so, we can ensure that basic elderly care is accessible to the entire elderly population." These remarks pointed out the direction and tasks of our efforts in the new era. This year, China released a plan on reforming Party and state institutions, and efforts were specified to improve the elderly-care work mechanism, with such functions as formulating and coordinating the implementation of policies and measures to address population aging transferred to the MCA. This is a major decision made by the CPC Central Committee to pursue a proactive national strategy in response to population aging. The MCA has earnestly implemented the task of institutional reform, and deepened understanding of its mission. We will make good use of the important window of opportunity during the 14th Five-Year Plan period (2021-2025), and make efforts to boost elderly care programs and services in the following three aspects. In doing so, we will blaze a new path for responding to population aging in a way that is suited to the realities of China and features Chinese characteristics.

First, the MCA will strengthen the Party's overall leadership over the work on population aging and further improve the related work mechanism. We must ensure that the Party fully exert its core role in providing overall leadership and coordinating the efforts of all sides. We will improve the work mechanism on addressing populating aging to form a strong synergy, featuring the Party committees' leadership, law-based government administration, close coordination among departments, and active participation of people's organizations. The General Office of the China National Committee on Aging will strengthen its functions of coordinating, supervising, guiding, organizing, and advancing the development of elderly care programs. A multi-faceted framework will be formed to guarantee the work to tackle population aging at all levels will be done, elderly people's issues will be managed, and their difficulties will be resolved. The elderly-care work will be included in the economic and social development plans at all levels, on the agenda of local Party committees and governments, in the performance evaluation system of relevant departments at all levels, and in the working list to address the people's practical concerns. All of these will provide a strong guarantee for the development of elderly care programs.

Second, the MCA will fully implement the decisions and deployments on addressing population aging made by the CPC Central Committee and the State Council and work continuously to make new progress to ensure care, medical services, social participation, education, and recreation for the elderly. We will continuously improve the social security system and basic old-age insurance system, develop a multi-tiered and multi-pillar old-age insurance system, and institute an insurance system to support long-term care. The health support system will be optimized to constantly improve health management and services for elderly people. We will work faster to build a system of domestic, community, and institutional elderly care services to meet different medical and health care needs. Basic, domestic, and community elderly care services will be promoted, including catering and age-friendly home renovation for elderly people. We will also improve county-level, township-level, and village-level elderly care service networks in rural areas and optimize the comprehensive regulatory system for elderly care services.

Third, the MCA will continuously guide and mobilize the whole of society to join our efforts and promote the concept of healthy and active aging throughout economic and social development. More aging-related education initiatives will be carried out to guide the whole of society to take a positive view of population aging, the elderly, and aging lives so as to pool broad consensus and joint efforts to address population aging. Policies will be improved and implemented to encourage elderly people to participate in social activities, and support them to play an active role in society. Thank you.

Phoenix TV:

The report to the 20th CPC National Congress states the need to improve the basic public services system to raise public service standards. My question is, what policies has the MCA taken to strengthen basic public services and improve the level of convenience and benefits for the people?

Tang Dengjie:

Thank you for your question. Civil affairs work relates to people's livelihoods and their production and daily lives. The 20th CPC National Congress called for improving the basic public services system, adopting more measures that deliver real benefits to the people and win their approval, and working hard to resolve the pressing difficulties and problems that concern them most. In recent years, all levels of civil affairs departments have consistently improved and optimized management services, increased efforts to provide convenience and benefits to the people and enterprises, and focused on enhancing the level of services for the people.

Regarding this matter, Mr. Zhan will provide a detailed introduction.

Zhan Chengfu:

As Mr. Tang mentioned, in recent years, all levels of civil affairs departments have strengthened the convenience and benefits for the people and enterprises. In other words, we have delivered a series of convenient services, which have achieved their initial effects.

In the field of social assistance, we have implemented a "one-stop acceptance and coordinated processing" approach to streamline the application process for the public. In the field of elderly care services, we have carried out home adaption for households facing specific elderly care challenges, thereby enhancing the safety and convenience of their home life. In the field of services for individuals with mental health issues, we have launched a program to better cater to their rehabilitation needs within the community, facilitating their reintegration into family life and society. In the field of services for disabled individuals, we have launched activities for the leasing of rehabilitation aids, making these resources more accessible to those in need. In the field of marriage registration management, we have significantly expanded the scope of the pilot program for "interprovincial marriage registration" for Chinese mainland residents this year. The program has been extended from seven to 21 provinces, covering 78.5% of China's total population. It can be said that this meets the needs of the majority of the people who require marriage registration in different provinces. In the field of the disability welfare, we have implemented the "interprovincial application" process for two disability subsidies, as well as introduced the same approach for orphans and children without parental care. At the same time, we have launched the "rural renaming action" and promoted "internet + place naming services" to facilitate travel and transportation for the public, thereby contributing to rural revitalization. We have also launched targeted initiatives in collaboration with industry associations and chambers of commerce to alleviate the burden on enterprises. This involves rectifying unlawful and irregular fees charged by these organizations and comprehensively standardizing legal and reasonable fee structures. According to our preliminary statistics, these measures have lightened the financial burden on enterprises by approximately 1.8 billion yuan, effectively helping alleviate difficulties faced by many market entities.

General Secretary Xi Jinping pointed out that what the CPC pursues is to improve people's livelihoods. What we have done is still some distance away from the requirements made by General Secretary Xi Jinping and the expectations of the people. For the next step, we will further optimize various civil affairs services for the people to improve their sense of gain. We are open to supervision, criticism, and encouragement from all media friends who are present here. Thank you.

China News Service:

We have noticed that, for the first time, the report to the 20th CPC National Congress has taken advancing the rule of law as a separate section and made arrangements accordingly. Some people believe this fully shows that the CPC Central Committee has attached great importance to exercising law-based governance on all fronts. I would like to ask, regarding the law-based governance in the field of civil affairs, what progress has been made by the MCA? What considerations and plans does the MCA have for the next step? Thank you.

Tang Dengjie:

Thank you for your questions. Further studying and implementing Xi Jinping Thought on the Rule of Law and earnestly implementing the major arrangements on advancing the rule of law made by the 20th CPC National Congress remain important requirements for us to ensure the high-quality development of civil affairs services and guarantee the basic rights and interests of the people utilizing our civil affairs services. Mr. Li will elaborate on your questions.

Li Baojun:

As widely recognized, the rule of law works as a safeguard to consolidate the foundation, stabilize expectations, and deliver long-term benefits. In recent years, the MCA has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, comprehensively implemented the guiding principles of the 20th CPC National Congress, deeply studied and meticulously practiced Xi Jinping Thought on the Rule of Law, and achieved noticeable progress. Next, I will outline our progress from the following three aspects: legislation, law enforcement, and law popularization.

Regarding legislation, centering around our responsibilities to ensure people's basic livelihood, community-level social governance, and basic social services, the MCA has promoted the formulation and revision of six laws and regulations, including the Civil Code, the Law on the Protection of Minors, the Regulations on the Management of Administrative Divisions, and the Regulations on the Administration of Geographic Names. The MCA has also led the drafting of four formulation or revision drafts of laws and regulations, including the Law on Social Assistance, the Regulations on the Registration and Management of Social Organizations, and the Regulations on the Management of Funeral and Burial. The MCA has also, separately or jointly with relevant departments, formulated and revised six departmental regulations including management measures for elderly care institutions and child welfare institutions. So far, China has launched a total of nine laws and 18 administrative regulations to standardize the functions of civil affairs departments. The MCA has also issued 45 regulations and rules and more than 170 administrative regulatory documents. In addition, local governments have rolled out over 800 local laws and regulations. It's fair to say that we have generally achieved law-based governance in the work of civil affairs. Meanwhile, in certain areas, there is still a lack of fundamental laws, and some policies and regulations fail to meet the requirements of the new era. Promoting legislation in these areas will be our focus for the next step.

In terms of law enforcement, the MCA has streamlined procedures relating to administrative licensing and canceled certification-associated matters made by departmental regulations and regulatory documents. In response to the prominent problems strongly reflected by the public, we have continuously carried out concentrated rectifications to address issues in rural subsistence allowances and cracked down on pension fraud and illegal social organizations. We have handled administrative reviews, responded to lawsuits in accordance with the law, and effectively promoted law-based governance in the field of civil affairs. For the next step, in accordance with the requirements of the report to the 20th CPC National Congress to steadily advance law-based government administration, we will adopt a more vigorous approach in exercising law-based governance, in alignment with the practical aspects of civil affairs. We will fully implement the lists of powers and obligations, improve the law-based decision-making mechanisms, upgrade administrative law enforcement procedures, and enhance the administrative law enforcement capacity.

Regarding the publicity of law, over the last few years, the MCA has implemented the seventh five-year plan on enhancing legal awareness across the national civil affairs system and formulated the eighth one. We have also held oath-taking ceremonies for newly appointed officials to pledge allegiance to the Constitution and carried out publicity activities centering around the Constitution, the Civil Code, the Charity Law, the Law on the Guarantee of the Rights and Interests of the Elderly, and the Law on the Protection of Minors, which have achieved noticeable results. For the next step, we will continue to step up efforts to popularize the law. We will concentrate on issues of great concern, such as the protection of the rights and interests of the elderly, the disabled, and minors while guiding cadres and staff across our system to respect and abide by the law. We will intensify efforts to popularize the law in a timely and precise manner, promote public welfare through law popularization, and strive to achieve better results. Thank you.

Cover News:

Social organizations play an important role in China's modernization efforts. To our knowledge, there are nearly 900,000 social organizations in China to date. How has the MCA promoted the high-quality development of social organizations? Thank you.

Tang Dengjie:

Thank you for your question. This is a very good question. Social organizations are an important force in driving China's socialist modernization. Over recent years, we have strengthened the Party's overall leadership over these organizations, steering and supporting them to achieve well-regulated and orderly development and play a positive role. Concurrently, we have prevented and resolved risks and potential dangers related to social organizations. All these measures aim to continuously advance their high-quality development. For more information, I would like to invite Mr. Zhan Chengfu to give a more detailed introduction.

Zhan Chengfu:

Okay. As the reporter just said, there are currently nearly 900,000 social organizations in our country, encompassing every facet of the economy and society. To be more specific, among these, there are over 370,000 social groups, upwards of 510,000 non-enterprise private entities, such as privately-run kindergartens and schools, and approximately 10,000 foundations. These entities employ over 11 million people and have over 580 billion yuan in assets. Social organizations have made important contributions to the building of a moderately prosperous society in all respects, especially in our critical battle against poverty.

Since the beginning of this year, civil affairs departments at all levels have thoroughly implemented the guiding principles of General Secretary Xi Jinping's important instructions on social organization work and the major decisions and plans of the 20th CPC National Congress. With a key focus on promoting high-quality development as our primary objective, optimizing structural layout as the key approach, and serving the country and society as the mission, we have taken a series of measures to propel social organizations of all types and at all levels to make new contributions to the building of a stronger nation and national rejuvenation. The specific steps can be summarized as "five measures."

First, offering a correction direction. We remain committed to achieving unity in thinking, will, and action with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We have upheld and strengthened the overall leadership of the Party over social organizations, and made coordinated efforts to promote Party building and the effective coverage of Party initiatives in social organizations, so that they follow the Party and its guidance and make steady and continuous progress along the development path with Chinese characteristics.

Second, ensuring institutional guarantees. We have worked with relevant departments to increase the implementation of policies with regard to government purchase of services, tax and fee incentives, and human resources to stimulate the internal vitality and driving force of social organizations.

Third, giving full play to the roles of social organizations. We have mobilized industry associations and chambers of commerce to help improve our economic development and modernization. We have encouraged academies and research societies to boost China's scientific and technological innovation, invigorate the country through science and education, and improve workforce development. We have mobilized social service agencies to bolster support to ensure people's basic living needs and provide services. We have also mobilized environmental protection social organizations to help build a beautiful China. We have encouraged charity organizations to vigorously develop philanthropic undertakings on the new journey. Recently, we have organized some national and local social organizations in eastern China to pair up with 160 key counties receiving rural revitalization assistance across the country, which has achieved very good social effects and has been welcomed by all parties. Many journalists present here have covered the relevant news.

Fourth, enforcing rigorous supervision and management. We have enhanced the construction of social organization credit information platforms and continued to improve the transparency and credibility of social organizations. We have faithfully performed various administrative duties such as registration, annual inspection, evaluation, credit management, and law enforcement supervision of social organizations. We have promoted social organizations to consciously improve their internal governance mechanisms and continuously elevate their self-discipline and self-regulation.

Fifth, focusing on creating a favorable environment. We have identified a group of advanced social organizations to serve as models for high-quality development. We coordinate development and security, and take an unequivocal stance to continuously eliminate 'zombie' social organizations. We have taken strong measures to crack down on and rectify various illegal social organizations, thereby purifying the ecological space of social organizations.

The above summarizes the measures we have taken since this year. Thank you.

Red Star News:

The report to the 20th CPC National Congress proposed to improve the multi-tiered and categorized social assistance system. I would like to know what new measures the MCA, as an important department responsible for ensuring people's basic living needs, has implemented to strengthen efforts in this regard. Thank you.

Tang Dengjie:

Thank you for your question. I would like to invite Mr. Liu to answer it.

Liu Xitang:

In recent years, the MCA has thoroughly studied and implemented the important instructions of General Secretary Xi Jinping. Following an approach that classifies on the basis of difficulty levels, categorizes assistance content, and enforces dynamic monitoring and early warning systems, the MCA has collaborated closely with relevant departments to enhance the social assistance system, including the subsistence allowance program. Efforts have been directed toward bolstering the dynamic monitoring of low-income populations and providing consistent assistance and support. The ministry has also expedited the establishment of a comprehensive and efficient social assistance system, consisting primarily of subsistence allowances, targeted social assistance, and emergency social relief, and supplemented by public participation. The objective is to achieve all-encompassing, tiered, classified and efficient pattern of assistance, all while advancing high-quality development in this field. There are four main facets:

First, we are enhancing the basic living assistance system, which includes the subsistence allowance program. We have established and reinforced proactive identification mechanism, focusing on identifying and supporting individuals and families who cannot apply for assistance themselves. We have conducted comprehensive assessments of families just outside the margin of eligibility, and we've separately included individuals with severe illnesses or disabilities from these families in the subsistence allowance program. Our objective is to ensure that our social safety net extends assistance and support to all those in need. We have promptly adjusted the assistance standard in line with economic and social development levels. As of the end of June this year, the standard urban and rural subsistence allowances have increased by 4.8% and 8.5%, respectively, compared to the same period last year. From January to June this year, a total of 126.5 billion yuan has been spent nationwide for subsistence allowances, assistance for the severely impoverished persons, and temporary assistance, effectively guaranteeing the basic livelihoods of individuals in need.

Second, we are strengthening the construction of the national dynamic monitoring information platform for low-income populations. We have included recipients of minimum subsistence allowances, individuals from families just outside the margin of eligibility, severely impoverished individuals, individuals from families facing difficulties with essential expenditures, individuals on the verge of poverty who can fall back in again easily, and other individuals identified by local governments as in need within the scope of dynamic monitoring. We have also established a mechanism for sharing information with various departments, such as those responsible for education, healthcare, housing and urban-rural development, and rural revitalization, as well as trade unions and local federations serving people with disabilities. This aims to enhance monitoring and early warning capabilities and provide support for the establishment of a tiered and classified social assistance system.

Third, we are enhancing the comprehensive assistance and support mechanisms. In collaboration with relevant departments, we have conducted in-depth research to further clarify assistance and support policies for families just outside the margin of eligibility for subsistence allowances and families facing difficulties with essential expenditures. Following the principles of tiered targeting, categorized assistance, comprehensive coverage, and efficient coordination, we have enhanced the relevant assistance policies to continuously improve accessibility and coverage. We have implemented temporary assistance in the places where emergencies and difficulties happened, providing increased support to individuals facing temporary hardships. Additionally, we have strengthened the effective connection between the government's assistance and charitable support, guiding and supporting the involvement of public welfare and charitable organizations in social assistance. The MCA has recently issued documents and made relevant arrangements concerning these efforts.

Fourth, we are continuously deepening the reform of the social assistance system. With the goal of achieving common prosperity, we have improved social security directed to poverty elimination and strengthened theoretical research on social assistance policies. We have conducted pilot experiments in areas such as service-oriented social assistance, applications for subsistence allowances based on places of one's habitual residence, coordinated allocation of assistance resources, and enhancing service capabilities. We have promptly summarized and promoted exemplary practices and experiences at the local level. We have also promptly issued policy and institutional measures, continually improving the tiered and classified social assistance system. We aim to ensure that individuals in need have a greater sense of benefit, happiness, and security. Thank you.

Yicai:

The Opinions on Advancing the Construction of a Basic Old-age Service System were officially released in May of this year. What progress has been achieved thus far, and what new measures are planned to be implemented? Thank you.

Tang Dengjie:

Thank you for your questions; these are very good questions. Previously, I introduced China's active efforts to address population aging and provided an overview of both elderly care programs and elderly care services. The basic old-age service system aims to provide all elderly people with inclusive, general and guaranteed old-age services. Mr. Yu Jianliang will elaborate on the specific situation.

Yu Jianliang:

The report to the 20th CPC National Congress urged to "ensure that basic elderly care is accessible to the entire elderly population." In May of this year, the General Office of the CPC Central Committee and the General Office of the State Council released the Opinions on Advancing the Construction of a Basic Old-age Service System. Also, they released the list of national basic elderly care services. This marked a fresh step in China's efforts to comprehensively develop its basic old-age service system. Since the beginning of this year, the MCA has mainly focused on the following aspects and made new progress.

First, we encouraged local authorities to expedite the development of basic old-age service systems. With an emphasis on issuing implementation plans and lists of local basic elderly care services, we guided local governments to accelerate their efforts in designing their basic old-age service systems. At present, most provinces have released their implementation plans, while the remaining provinces are in the process of finalizing their plans. Some localities have also continually made breakthroughs and innovations by tailoring the content and standards of basic elderly care services in accordance with local conditions.

Second, we have been consistently enhancing the capacity of basic elderly care services. In collaboration with the National Development and Reform Commission, we launched projects to proactively address population aging in 2023, and arranged investments from the central budget to support the development of elderly care service facilities. We have also partnered with the Ministry of Finance to improve at-home and community-based elderly care services, which includes providing home-based care facilities and door-to-door services for qualified individuals facing special difficulties and incapacitated seniors. Additionally, in coordination with the Ministry of Housing and Urban-Rural Development, we have been promoting the simultaneous construction of elderly care service facilities in newly built residential areas and optimizing the layout of such facilities in communities.

Third, we have ensured the implementation of projects related to basic elderly care services. We have urged local governments to make renovation of home environment to make life easier for the elderly facing special difficulties. We have also improved welfare and subsidy policies for the elderly and implemented programs such as advanced-age allowances and old-age service allowances. We have guided local governments to accelerate the implementation of visit and care services, actively delivering services to seniors' homes to identify and preemptively address risks associated with at-home elderly care.

Next, the MCA will continue to strengthen the implementation of the abovementioned Opinions. First, we will urge and guide local governments that have not yet issued provincial-level implementation plans to introduce these plans before the end of this year. Second, we will strive to carry out the projects listed in the national basic elderly care services program, ensuring that the care and support from the CPC Central Committee reach the elderly as swiftly as possible. Third, we will continuously improve the basic old-age services supply, guarantee, supervision, and dynamic adjustment mechanism, while promoting the unified collection, mutual recognition, and open sharing of information related to both eligible recipients of basic old-age services and service guarantee, with the goal of ensuring that all elderly people can more effectively access basic old-age services.

Thank you! 

Hong Kong Bauhinia Magazine:

The report to the 20th CPC National Congress underscores the importance of safeguarding women's and children's legitimate rights and interests. Could you please provide information on the measures the MCA has implemented to ensure children's welfare and the accomplishments achieved in this regard? Thank you.

Zhan Chengfu:

General Secretary Xi Jinping is deeply committed to the welfare of children. He has issued multiple important instructions, emphasizing the need to support and assist children from disadvantaged families, especially orphans and those with disabilities, ensuring every child enjoys a joyful and fulfilling childhood. The report to the 20th CPC National Congress explicitly states the vital task of "protecting the legitimate rights and interests of women and minors." Civil affairs departments at all levels have diligently studied and implemented the directives of General Secretary Xi Jinping and the major decisions and arrangements from the 20th CPC National Congress. Adhering to the principle of prioritizing children's interests and based on their administrative responsibilities, we've taken a series of effective measures to protect the rights and interests of children in various challenging circumstances, achieving significant results. These achievements are evident in the following four areas.

First, we continuously elevate their standard of living support. The basic living support standards for orphans and de facto orphans have been consistently improved. We have included groups like orphans and uncared-for children within the scope of our support, integrating them into the linkage mechanism of social assistance and protection standards tied to price increases. This ensures these children have sufficient food and clothing, lead content lives, and fully exhibits the strengths of the system of socialism with Chinese characteristics.

Second, we have enhanced medical rehabilitation services. Through the lottery public welfare fund, we organized and launched the Tomorrow Plan for the Rehabilitation of Disabled Orphans. We successfully carried out numerous surgical treatments and rehabilitation services, alleviating the medical conditions of these children and significantly aiding their healthy development.

Third, we have strengthened educational support. We implemented a program to support school education for orphans through the lottery public welfare fund, providing scholarships to orphans who have been admitted to junior colleges and higher education institutions, ensuring that they can pursue their studies and attend school with peace of mind.

Fourth, we are advancing the optimization and transformation of child welfare institutions. In collaboration with the State Commission Office for Public Sector Reform, the National Development and Reform Commission, and other departments, we jointly advocate for optimizing and enhancing quality and innovative transformation of child welfare institutions. By holistically addressing children's upbringing, education, medical care, rehabilitation and psychological health, we are setting improved conditions for their development.

Next, building upon our existing achievements, we will focus on the following three areas of work.

First, we will place greater emphasis on precise protection. Guided by the aim of safeguarding the basic rights and interests of children in difficult situations, such as orphans and de facto orphans, we will target our efforts and implement precision-guided policies. We will coordinate solutions to address both group needs and individual requirements, continually enhancing the sense of gain, happiness, and security for children in various challenging situations.

Second, we will place a heightened emphasis on holistic development. While ensuring their basic livelihoods, our focus will extend to the mental and emotional well-being, personal growth, and talent actualization of children facing adverse conditions. We will refine and bolster measures tied to education, psychological well-being, self-confidence, and self-improvement, aiming to promote these children's comprehensive development in moral, intellectual, physical, aesthetic, and work-related aspects.

Third, we must accord heightened emphasis to professional services. We will organize and carry out quality improvement initiatives for child welfare institutions, centering on precise management and meticulous services. This involves refining care services, enhancing specialized rehabilitation capabilities, optimizing special education services, and delivering expert social work services to better guarantee children's healthy and secure development within these institutions.

Here, I also wish to call upon the media representatives in attendance to leverage your expansive reach and call upon kind-hearted volunteers to visit children's welfare institutions to see and understand their situations. Everyone is welcome to become a volunteer for the cause of children's welfare and help these children thrive. Thank you.

Sansha Satellite TV:

Place names are fundamental public information in society. Last year, the State Council introduced a revised rule on the management of place names. May I ask what actions the MCA has taken to implement this rule? And what are the next steps or measures planned? Thank you.

Tang Dengjie:

Thank you for your questions and concern about our civil affairs work. I'd like to invite Mr. Li Baojun to answer your queries.

Li Baojun:

Let me outline the implementation of the Rule on the Management of Place Names. Initially issued by the State Council in 1986, significant changes have occurred in the scope, objectives, tasks, methods, and environment of place name management in the past 30 years. The CPC Central Committee and the State Council have attached great importance to place name management. The State Council revised the Rule, which came into effect on May 1 of last year. Following the promulgation of the Rule, the MCA has steadily advanced implementation work, striving to enhance scientific and standardized management of place names under the rule of law. We have primarily focused on three aspects:

First, we've enhanced the place name management systems and mechanisms. We've introduced and published the Measures for the Administration of Place Name Filing and Announcement (Trial) and actively promoted the formulation and revision of regulations, national standards and industry standards related to place names, including the Implementation Measures for the Rule on Place Name Management. We've also improved a system featuring unified supervision and management, and assignment of responsibility to different levels and categories, enabling relevant departments and local authorities to perform their respective duties.

The second aspect is the ongoing improvement of place name management services. We've exercised strict control over the naming and renaming of places, improved naming guidelines, standardized work procedures, encouraged the development of place name plans, implemented the filing and announcement system, and established a unified national platform for filing and announcing. We've advanced the standardization of place names, regularized non-standard place names, and standardized the spelling and translation of place names. Continuous updates and enhancements have been made to the China National Geographical Names Information Database. We've launched a special action in rural areas, taking the opportunity to collect place names and add them to the map, driving projects related to the naming and standardizing of rural place names, cultural promotion and preservation, and place name information services in order to support the development of beautiful, livable, and business-friendly rural areas. We've actively participated in the session of the United Nations Group of Experts on Geographical Names, raising awareness of our geographical names work and promoting international exchanges and cooperation in geographical name management.

The third aspect is our commitment to preserving and protecting place name culture. With a clear value orientation and a reflection of the spirit of the times, we advocate the incorporation of core socialist values, outstanding Chinese traditional culture, revolutionary culture, and advanced socialist culture into place naming, effectively enhancing the cultural significance of newly designated place names. We've implemented relevant provisions on the cultural protection of place names in the revised Rule, intensifying research on the cultural protection system of place names, fostering a place name protection list, and safeguarding old place names with historical and cultural significance. In collaboration with China Media Group, we produced and broadcasted the TV show China Place Names Conference, organized various place name cultural promotion activities, and actively promoted place name culture.

In the next phase, we'll continue to rigorously implement the Rule on the Management of Place Names. We aim to further enhance place name management services, deepen our efforts in place name culture preservation and promotion, contribute to rural revitalization, support economic and social development, and continue the legacy of China's outstanding traditional culture.

Thank you!

Chen Wenjun:

The last question, please.

CCTV:

In recent years, there has been an increasing level of attention to charitable activities in society. Could you please share the next steps the MCA will take to promote the high-quality development of charity in China? Thank you.

Thank you for your question. Public welfare and charity undertakings are moral practices with wide public participation. It is a crucial mark for social civility and progress. Just as you mentioned, society has been paying more attention to and increasing participation in charitable and public-interest initiatives. According to the statistics, there are now over 13,000 charity organizations registered in China. Charitable donations have been steadily on the rise. Charity systems have been continuously improved. The culture of public welfare and charity has taken deeper roots in the hearts of the people. The force of public welfare and charity has played an active role in many areas, such as poverty alleviation, epidemic prevention and control, rural revitalization, education, science, culture, health, ecological conservation, and emergency response and rescue. This Sept. 5 marked China's 8th Charity Day. We held the 12th gathering for the China Charity Awards at the Great Hall of the People, praising a group of charity programs, models, enterprises, individuals, and teams. Many media friends present here covered the gathering, receiving a positive response from the general public. Here, I would like to express thanks to you all.

The report to the 20th CPC National Congress has put forward that China will build an institutional framework under which primary, secondary, and tertiary distributions are well coordinated and mutually complementary, and emphasized that China will provide guidance and support for enterprises, social organizations, and individuals who have the desire and ability to actively participate in charitable and public-interest initiatives, pointing the direction for the development of public welfare and charity undertakings. Next, we will continue to earnestly study and put into practice the guiding principles of the 20th CPC National Congress and advance the high-quality development of charity with Chinese characteristics. We will prioritize the work in the following three aspects:

Firstly, we will continue to ensure a right direction for charity development. We will uphold and strengthen the overall leadership of the Party, follow a people-centered approach, and guide public welfare and charity forces to answer the call of the Party and play an active role, and ensure it continues in the right direction. We will keep focusing on those who run into special difficulties and are most in need of help and promote public welfare and charity resources to benefit all sorts of people in difficulty in a timely and accurate manner and contribute to achieving common prosperity. We will step up institution building, prioritize revising the Charity Law and improving supporting policies, and advance the coordination and mutual complementarity of tertiary distribution institutions with the primary and secondary distribution institutions.

Secondly, we will provide guidance and support for enterprises, social organizations, and individuals who have the desire and ability to actively participate in charitable and public-interest initiatives. We will advocate for the traditional virtues of the Chinese nation, including mutual assistance in times of adversity and helping the needy. We will make good use of important festivals and charity awards to give play to the exemplary role of role models so as to further inspire the passion of the whole of society to support and engage in charitable and public-interest initiatives. We will encourage all localities to diversify and broaden their ways and channels of participation, facilitate the application of digital technology in charity, and move faster to develop an environment in which everyone can engage in charity at any time.

Thirdly, we will strengthen the regulation of charity and work to improve its transparency. We will strengthen Party leadership and Party building within charity organizations. We will standardize internal governance and industry self-discipline of charity organizations and establish and improve a modern system for charity organizations. We will launch the Sunshine Charity project and encourage the general public and media to supervise charity. We will facilitate all kinds of charity organizations to disclose true information in a comprehensive and accurate way. We will strengthen the whole-process regulation of charity activities to improve the transparency and credibility of charitable and public-interest initiatives.

That's all for my answer to the question briefly. I would like to take this opportunity to express my heartfelt thanks to our friends from the media for your long-term attention and support for civil affairs work, especially the development of civil affairs undertakings.

Chen Wenjun:

Thanks to Mr. Tang and all the speakers and friends from the media. Today's briefing is hereby concluded. 

Translated and edited by Xu Xiaoxuan, Wang Wei, Li Xiao, Zhang Junmian, Lin Liyao, Wang Ziteng, Li Huiru, Qin Qi, Yuan Fang, Yan Bin, Liu Caiyi, Wang Yanfang, Zhang Tingting, Huang Shan, Zhang Rui, Zhou Jing, Wang Yiming, Xu Kailin, David Ball, 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. Guo Lanfeng, a member of the Communist Party of China (CPC) Leadership Group of the National Development and Reform Commission

Mr. Sun Yuning, vice minister of the General Administration of Customs of China

Mr. Sun Zhiyang, vice governor of the People's Government of Guangdong Province

Mr. Chan Kwok-ki , chief secretary for administration of the Hong Kong Special Administrative Region Government

Mr. Qin Weizhong, deputy secretary of the CPC Shenzhen Municipal Committee and mayor of the Shenzhen Municipal People's Government

Ms. Lin Xin, a member of the CPC Leadership Group of the Ministry of Science and Technology (MOST) and secretary-general of the MOST

Chairperson:

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

Date:

Sept. 5, 2023

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office. Recently, the State Council issued a plan for the Shenzhen park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (HTCZ ). Today, we have invited Mr. Guo Lanfeng, a member of the Communist Party of China (CPC) Leadership Group of the National Development and Reform Commission (NDRC); Mr. Sun Yuning, vice minister of the General Administration of Customs of China (GACC); Mr. Sun Zhiyang, vice governor of the People's Government of Guangdong Province; Mr. Chan Kwok-ki, chief secretary for administration of the Hong Kong Special Administrative Region (SAR) Government; Mr. Qin Weizhong, deputy secretary of the CPC Shenzhen Municipal Committee and mayor of the Shenzhen Municipal People's Government; and Ms. Lin Xin, a member of the CPC Leadership Group of the Ministry of Science and Technology (MOST) and secretary-general of the MOST, to brief you on the plan and take your questions.

Now, I'll give the floor to Mr. Guo Lanfeng for a brief introduction.

Guo Lanfeng:

Good afternoon, friends from the media. Thank you very much for your interest in and support for the HTCZ. The cooperation zone plays a crucial role in the development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). I would like to take this opportunity to express my sincere gratitude to all those from various sectors of society who care about and support the development of the GBA.

The CPC Central Committee with Comrade Xi Jinping at its core has attached great attention to the construction of the HTCZ. On July 1, 2017, General Secretary Xi Jinping witnessed the signing of the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the GBA between the NDRC and the governments of Guangdong, Hong Kong and Macao, which explicitly called for the joint development and construction of the HTCZ. On Oct. 14, 2020, General Secretary Xi Jinping delivered an important speech at the celebration of the 40th anniversary of the establishment of the Shenzhen Special Economic Zone, clearly stating the need to plan and build the HTCZ. The Outline Development Plan for the Guangdong-Hong Kong-Macao GBA issued by the CPC Central Committee and the State Council also made specific requirements for the coordinated development of Hetao by Shenzhen and Hong Kong.

In recent years, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we have worked together with Guangdong province, the Hong Kong SAR, Shenzhen city, and relevant departments to study and formulate the plan for the Shenzhen park of the HTCZ. A few days ago, this plan was officially released by the State Council.

The plan serves as a foundational document for advancing the development and construction of the HTCZ. I will provide you with a brief interpretation. Its main content can be summarized as: three key positionings, two-stage objectives, four dimensions of layout, four major tasks, and various safeguard measures.

The three key positionings are: serving as a pioneering zone for Shenzhen-Hong Kong science and technology innovation and cooperation, serving as a testing ground for international advanced science and technology innovation rules, and acting as a hub for pilot-scale tests and transformation in the GBA.

The two-stage objectives are set for the years 2025 and 2035, concerning the scientific and technological innovation system and the flow of innovative elements, among others.

The four dimensions of layout are: regional coordination, spatial layout within the zone, regional supervision, and the layout of major infrastructure.

The four major tasks are mainly as follows. First, promoting international scientific and technological innovation in coordination with Hong Kong. Specifically, promoting the coordinated development of the Shenzhen and Hong Kong parks, supporting the elevation of Hong Kong and Macao universities' strengths in key disciplines, and jointly establishing world-class scientific and technological innovation platforms. Second, building an internationally competitive base for industrial pilot-scale tests and transformation, with a focus on advancing breakthroughs in the new generation of information technology industries, supporting innovative applications in advanced biomedicine technology, and accelerating the development of cutting-edge fields in artificial intelligence and the digital economy. Third, constructing an international scientific and technological innovation system and mechanism. To be specific, facilitating the movement of researchers, implementing segmented management of goods, supervising the cross-border flow of research-related funds in an innovative way, exploring the safe and orderly cross-border flow of international internet data, accelerating the establishment of a higher-level intellectual property protection system, creating a tax environment aligned with Hong Kong, implementing international employment and social security policies, harmonizing with global research management systems and mechanisms, and establishing a highly convenient market access system. Fourth, creating a scientific and technological cooperation platform that attracts global talent, with a focus on deepening international exchanges and cooperation, building an international talent hub for innovation, enhancing comprehensive research services, and shaping an international, high-quality research community.

The introduction of the plan will enable Shenzhen to innovate in its management mechanisms for science and technology, align its policies with internationally accepted innovation rules, initiate internationally coordinated innovation, and transform itself into a modern, international, and innovative city. Furthermore, it will facilitate the in-depth alignment of Hong Kong's advantages in scientific and technological innovation and financial openness with the comprehensive industrial chains of the Pearl River Delta. This will advance Hong Kong's efforts in building an international innovation and technology center and aid in the planning and development of Hong Kong's Northern Metropolis. Additionally, it will enrich the practice of "one country, two systems," assisting Hong Kong in integrating into China's overall development, fostering the high-quality development of the Guangdong-Hong Kong-Macao GBA, and creating world-class innovation platforms and growth areas.

Next, we will rigorously implement the decisions and arrangements of the CPC Central Committee and the State Council. Alongside relevant departments, we will enhance communication and coordination and provide diligent follow-up services. We remain committed to supporting Guangdong province and Shenzhen city in partnership with Hong Kong SAR. This collaboration aims at proficiently rolling out the plan and ensuring the steady and sustained advancement of the HTCZ's development and construction.

Thank you!

Shou Xiaoli:

Thank you. Now, the floor is open for questions. Please identify your news outlet before raising a question.

CCTV:

We have seen that in recent years, the CPC Central Committee has issued a series of supporting policies and initiatives concerning major cooperation platforms among Guangdong, Hong Kong and Macao, such as Hengqin, Qianhai and Nansha. As mentioned, specific arrangements have been made concerning the development of the HTCZ. What are the differences in the functions and positions of these four platforms? What are the considerations when developing the key tasks in the plan? Thank you.

Guo Lanfeng:

I will answer your questions. When we develop regional policies, we always emphasize leveraging the respective strengths and local features of different regions, and provide targeted support to empower them in specific domains. The reporter just now asked very good questions. Let me give a brief introduction about the characteristics of the major platforms, including Hengqin, Qianhai, Nansha, and Hetao, along with some supporting policies.

Over the years, the CPC Central Committee has issued the General Plan for Building the Guangdong-Macao In-depth Cooperation Zone in Hengqin. As you all know, Hengqin Cooperation Zone is located in Hengqin, Zhuhai city, and covers an area of 106 square kilometers. The CPC Central Committee has issued the Plan for Comprehensively Deepening Reform and Opening-up for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. Qianhai cooperation zone is situated in Shenzhen, which has grown expansively from its initial 15 square kilometers to now encompass 120 square kilometers. Furthermore, the State Council has issued the Master Plan of Guangzhou Nansha on Deepening Comprehensive Cooperation between Guangdong, Hong Kong, and Macao with a Global Perspective. Each of these plans has made specific arrangements for the construction of major cooperation platforms. Now, the State Council has issued the plan for the Shenzhen park of the HTCZ. The framework for the system of major cooperation platforms focusing on Hengqin, Qianhai, Nansha, and Hetao in the Guangdong-Hong Kong-Macao GBA has been further refined and improved.

Based on the names of the four platforms, you can figure out their primary areas of focus. In terms of strategic position, these four platforms have distinctive focuses and distinct features.

For example, the cooperation zone in Hengqin focuses on the original goal of promoting the moderately diversified economic development of Macao. It's positioned to serve Macao and promote the integrated development of both Hengqin and Macao. The cooperative mechanism of mutual discussion, joint construction, joint administration, and shared benefits between Guangdong and Macao is a major breakthrough. In other words, the 106 square kilometers of Hengqin Cooperation Zone mainly serve the moderately diversified development of Macao's economy. Surely, there is a major institutional breakthrough, known as the mutual discussion, joint construction, joint administration and shared benefits, which we refer to as the "four joints" in our operations.

Qianhai Cooperation Zone, on the other hand, centers on the modern service sector – a prominent industry in Hong Kong. It bolsters the deepened collaboration between Shenzhen and Hong Kong in Qianhai, aiming jointly to pioneer a testing ground for thorough reform and innovation and a portal for high-level opening-up. That is to say, Qianhai Cooperation Zone mainly cooperates with Hong Kong to develop the modern service industry.

Nansha Cooperation Zone has a relatively broad space, focusing on two key points: "comprehensive cooperation between Guangdong, Hong Kong, and Macao" and a "global perspective." We have developed a batch of industrial programs cooperating with Hong Kong and Macao. We have also established public service facilities serving Hong Kong and Macao and worked together with both regions to expand opening up.

HTCZ is the smallest platform among the four, covering an area of 3.89 square kilometers across two industrial parks in Shenzhen and Hong Kong. However, it boasts distinctive scientific and technological innovation features. It has strengths in straddling the boundaries between Shenzhen and Hong Kong, with its "one zone, two parks" consisting of two portions in Shenzhen and Hong Kong. The area of the Hong Kong section is smaller. It houses an array of Shenzhen-Hong Kong tech innovation resources. It is pivotal in fostering a collaborative innovation hub and robustly supporting the building of the GBA into an international center for technology and innovation.

Based on the distinct missions of these four platforms, we have also implemented differentiated designs in the research, planning, task arrangement and policy measures. It can be said that we have tailored our approach specifically for each platform. For instance, as mentioned earlier, during the development of the plan for the Shenzhen park of the HTCZ, we have consistently adhered to "three commitments."

First, we are committed to giving importance to both technological and institutional innovation. On one hand, we have clearly implemented the "first sub-line" area and "second sub-line" area management for the flow of personnel and goods in customs supervision areas with specific closed management to promote the efficient and convenient flow of innovative elements and create a highly interconnected research and institutional environment with Hong Kong and the international community. On the other hand, we have supported interdisciplinary basic research and technological breakthroughs in the Shenzhen-Hong Kong cooperation zone, continuously generating a series of technological innovations and industrial achievements.

Second, we are committed to the coordinated development of the Shenzhen and Hong Kong parks. We have supported the strengthening of connectivity between the development timelines, key areas and major projects of the Shenzhen and Hong Kong parks. This includes promoting infrastructure interconnectivity, sharing of services and fostering collaborative innovation. By doing so, we have actively supported Hong Kong's strategy for technological innovation development and provided strong support for the planning and construction of Hong Kong's northern Metropolis.

Third, we are committed to the global leverage of world-class scientific and technological innovation resources. We aim to build a more open innovation ecosystem, promote the sharing of scientific and technological resources, and attract top global talent for research collaboration. We have fully leveraged Hong Kong's role as a "super-connector" to establish internationally leading clusters of scientific research facilities, actively integrating into the global innovation network.

Next, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we will work with relevant departments and local authorities to support major platforms such as the HTCZ in exploring and accumulating experience in key areas and critical aspects. This will lead and drive comprehensive deepening of cooperation among Guangdong, Hong Kong and Macao. Thank you.

Shenzhen Special Zone Daily:

The plan for the Shezhen park of the HTCZ explicitly states that the Shenzhen park should collaborate with Hong Kong to promote international technological innovation and the construction of an internationally competitive base for industrial pilot-scale tests and transformation. What measures has MOST taken in promoting collaborative technological innovation with Hong Kong, and what achievements has it made? Thank you.

Lin Xin:

Thank you for the question, and for your interest in the field of science and technology. Hong Kong possesses strong scientific and technological capabilities, which serve as a foundation for its prosperous development and are an essential component of the national strategic technological force. MOST attaches great importance to scientific and technological cooperation between the mainland and Hong Kong. Since 2004, the two sides have established the Science and Technology Co-operation Committee mechanism to conduct joint research and consultations. A series of practical measures have been adopted in terms of scientific and technological policy convergence and scientific and technological projects.

First, we have supported the integration of Hong Kong's scientific and technological strength into the national innovation system. 23 fundamental and frontier research projects under the National Key R&D Program and the Excellent Young Scientists Fund of the National Natural Science Foundation are available to Hong Kong. Support has been provided to Hong Kong in establishing several national key laboratories in disciplines and fields where it has strengths. Additionally, a number of scientific and technological cooperation platforms have been planned in key places such as Qianhai, Hetao and Xili Lake, to reinforce cooperation among industries, universities, and research institutes between Hong Kong and the mainland.

Second, we have promoted the introduction of policies to facilitate scientific and technological cooperation between Shenzhen and Hong Kong. Central government funding for scientific and technological research has been transited to support technological development in Hong Kong. Pilot programs have been implemented to facilitate the transit of human genetic resources to Hong Kong for the purposes of scientific research. Efforts have been made to facilitate the sharing of over 130,000 large-scale scientific research instruments and equipment with Hong Kong.

Third, we have carried out personnel exchanges between the Chinese mainland and Hong Kong in the field of science and technology. Support has been provided for scientists in Hong Kong to participate in national science and technology policies, planning, consultations and project reviews. Currently, more than 1,000 scientific experts from Hong Kong have been included in relevant expert databases. Activities such as the Mainland Exchange Program of Hong Kong Youth Entrepreneurship have also been organized, providing a platform for outstanding scientific and technological personnel from Hong Kong to make innovations and start their own businesses.

Moving forward and seizing the plan's release as an opportunity, the MOST will implement the plan and arrangements and beef up efforts to support the cooperation zone to boost overall regional sci-tech innovation. Focusing on the country's needs and giving full play to the advantages of Hong Kong and Shenzhen, the ministry will support them to develop in-depth cooperation in sci-tech projects, talent cultivation, startup incubation, sci-tech finance, international technology transfer, and other aspects. We will introduce major sci-tech projects and achievements to the zone and encourage high-level scientific research institutions and their members to work there. We will support scientific research in fundamental and cutting-edge areas, as well as in major industries, and work to create a cradle of new technologies that are original, innovative, and significant. We will spearhead the implementation of sci-tech policies and act on preferential policies issued by the central government for Hong Kong. We will eliminate bottlenecks and impediments that restrict the flow of sci-tech factors, ensuring that our guidelines are aligned with both Hong Kong's standards and globally advanced scientific research rules to create a policy environment friendly to sci-tech innovation. We will construct a more open innovation system, focus on first-class global sci-tech resources, pool top global sci-tech talent, create a more global-oriented research environment, and strive to build a world hub for sci-tech innovation. With these efforts, we will provide vigorous sci-tech support for the high-quality development of Shenzhen and Hong Kong, the Guangdong-Hong Kong-Macao GBA, and our country.

Thank you.

Shenzhen Satellite TV:

Since taking office, John Lee Ka-chiu, chief executive of the Hong Kong SAR, has paid great attention to sci-tech and innovation-related work. What efforts have been made by Hong Kong in promoting the development of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone? As this zone continues to develop, what will be Hong Kong's next steps to advance sci-tech cooperation with Shenzhen? Thank you.

Chan Kwok-ki:

Thank you for your questions. The Hong Kong SAR government has expressed its enthusiasm regarding the release of the Plan on Promoting High-Quality Development of the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone . In its 14th Five-Year Plan (2021-2025), China has set targets to make itself a country of innovators and build greater scientific and technological strength. Part of this vision involves transforming the GBA into an international innovation and technology center. In addition to giving support to Hong Kong to develop an international innovation and technology hub, the 14th Five-Year Plan has also included the Hetao zone in the GBA's four primary cooperation platforms.

The Hong Kong SAR government is very thankful for the strong support from the central government and the Shenzhen Municipal People's Government for developing the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone. The zone is located on both sides of the Shenzhen River and was built under the concepts of "one river, two banks" and "one zone, two parks." It includes the Shenzhen park, covering an area of approximately 300 hectares, and the Hong Kong park, 87 hectares.

A series of measures have been put forward in the Plan on Promoting High-Quality Development of the Shenzhen Park, including advancing international sci-tech and innovation in collaboration with Hong Kong. This move will inject new impetus into and bring about new development for the cooperation between Hong Kong and Shenzhen.

The Hong Kong SAR government will continue to actively cooperate with Shenzhen and promote the advantages of the Hetao zone under the concept of "one zone, two parks" underpinned by the principle of "one country, two systems." These include trying out exclusive cross-border policies to ensure a smooth flow of labor, materials, and data to make the zone a gateway to in-depth innovation and technology cooperation. Meanwhile, we will give full play to Hong Kong's distinctive advantages of enjoying solid support from the motherland and close connection with global markets. In doing so, Hong Kong will contribute its part to the development of the GBA international innovation and technology center.

President Xi Jinping paid a visit to Hong Kong last year when we marked the 25th anniversary of Hong Kong's return to the motherland. He reiterated the central government's firm support for Hong Kong to build an international innovation and technology center. He expressed his keen hope for Hong Kong to contribute to national science and technology development. This fully demonstrates that our country attaches great importance to and acknowledges the innovation and technology development of Hong Kong. This has also given us tremendous confidence and greatly inspired us to develop innovation and technology in Hong Kong.

In October 2022, the chief executive of the Hong Kong SAR proposed in his policy address to study expediting the development of the Hong Kong park, namely the Hong Kong-Shenzhen Innovation and Technology Park , of the cooperation zone and optimizing its functions. 

Initial planning for the first phase of the park has been completed, covering a total area of 10 million square feet. The park is designed to host various specialized sectors, including life and health technology, industry-academia-research cooperation, artificial intelligence and data science, new technology and advanced manufacturing, as well as accommodation for talent, commercial spaces and other supporting amenities. The goal is to build the park into an ecosystem featuring diversity and establish a lively and environmentally friendly community. 

The first three buildings within the Hong Kong-Shenzhen Innovation and Technology Park are on track to be inaugurated by the end of 2024. Meanwhile, we will leverage the market to draw business and investment, enhancing construction quality and speed and establishing high-quality research and industrial facilities. 

Over the past several years, Hong Kong and Shenzhen have yielded fruitful results in the development of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone . Last year, the Hong Kong Science and Technology Parks Corporation launched the "GBA InnoExpress " program, providing business development services for innovative and technological enterprises from Hong Kong and the Chinese mainland. In addition, operations at the Hong Kong Science Park Shenzhen Branch have been progressively commencing. 

Looking ahead, the Hong Kong SAR will actively integrate itself into the country's overall development and jointly advance the construction of the cooperation zone with Shenzhen. By doing so, we will promote the high-quality growth of innovation and technology in the GBA and build the cooperation zone into a world-class innovation platform. Thank you. 

People's Daily:

The Shenzhen park of the HTCZ stands as an essential platform for scientific and technological innovation in the Guangdong-Hong Kong-Macao GBA. Could you shed light on the efforts made in the construction of Shenzhen park so far and their outcomes? Moreover, what future plans have been made to deepen Shenzhen-Hong Kong cooperation using the HTCZ? Thank you.

Qin Weizhong:

Thank you for your questions; I will answer them. You asked about the progress of the work related to Shenzhen Park and its future planning. The plan for the Shenzhen park of the HTCZ issued by the State Council fully demonstrated the care from the CPC Central Committee with Comrade Xi Jinping at its core and its great support for Shenzhen to build itself into a pilot demonstration area of socialism with Chinese characteristics. The CPC Shenzhen Municipal Committee and the Shenzhen Municipal People's Government bear in mind the tasks that General Secretary Xi Jinping has given in the new era. In line with the decisions and arrangements of the CPC Central Committee and the State Council, we are pooling the strength of various parties in the city to advance the construction of the cooperation zone. We are supported by the NDRC, the MOST, the GACC, the People's Government of Guangdong Province, and the Hong Kong SAR government.

First, we've amassed a wealth of scientific and technological innovation resources. At present, we have established high-end research institutes such as the Quantum Science Center of the GBA and the BRICS Institute of Future Networks at the Shenzhen park of the HTCZ. Currently, five renowned Hong Kong universities have established 10 innovative R&D platforms in Shenzhen park. The park also hosts research facilities for five Global Fortune 500 companies, and five headquarters and research centers for unicorn companies, gathering 12 domestic and foreign academicians and more than 3,000 research professionals. 

Second, a raft of measures for opening-up and innovation have been introduced. The governments of Shenzhen and Hong Kong have jointly launched a package consisting of 28 policies. We have put into action five pilot policies to facilitate the cross-border flow of innovative elements, including simplifying the entry and exit procedures for scientific research samples. The Shenzhen Data Exchange has officially opened, executing the country's first cross-border data transaction. Currently, it leads the country in terms of trading volume.

Third, a group of science and innovation parks have been established. Over the last three years, we have completed 11 specialized projects, such as the Shenzhen-Hong Kong International Science Park and the International Biomedical Industrial Park, offering a total research space of 800,000 square meters. Mr. Chen Guoji noted that the Shenzhen Branch of the Hong Kong Science Park will officially open this Thursday.

Going forward, we will focus on the following key tasks.

First, we will work hard to stimulate the vitality of the cross-border scientific and technological innovation system and mechanism. We will align with the innovation standards of Hong Kong and the international community, and adopt globally advanced scientific research management mechanisms such as the peer review system, the project manager system, and the fund contract system. We will launch global competitions for major scientific and technological issues. Furthermore, we'll introduce a "whitelist" filing management system for scientific research institutions and enterprises and accelerate the development of special channels for international data.

Second, we will connect with the global network of scientific and technological innovation. We'll accelerate the integration of top-notch innovation resources from Hong Kong and beyond. Our goal is to build more than 20 high-level scientific research collaboration platforms between Shenzhen and Hong Kong by 2025 and form more than five international industry and standards organizations.

Third, we will develop emerging industries and create new drivers for growth. We'll concentrate on cutting-edge fields such as next-generation information technology, biomedicine, general artificial intelligence, and the digital economy. We aim to build various R&D service platforms and industrial bases for the trial and application of scientific breakthroughs, with the goal of ensuring that the most advanced and cutting-edge technologies are tested and successfully transformed here.

Fourth, we will promote the coordinated development of "one zone, two parks." We will enhance the planning integration between the two parks, accelerate the rebuilding of the Huanggang Port, and hasten the construction of the international talent community and other infrastructure and public service platform projects. By 2025, more than 1.5 million square meters of science and innovation space will be completed.

In all, Shenzhen will fully implement the plan for the Shenzhen park of the HTCZ, collaborate more closely with Hong Kong, and contribute more and better to building a key node of the international sci-tech innovation center in the Guangdong-Hong Kong-Macao GBA and developing a world-class sci-tech hub. Thank you.

Hong Kong Bauhinia Magazine:

The plan for the Shenzhen park of the HTCZ proposes building special customs systems like the "Administration Divided by Sub-lines " system and clarifies the management positioning of the "first sub-line" area and "second sub-line" area. What specific measures has the GACC taken to better promote the orderly cross-border flow of innovation elements between Shenzhen and Hong Kong? Thanks.

Sun Yuning:

Thank you for your question and your interest in our work. According to the plan, we will implement the "Administration Divided by Sub-lines" management mechanism within the cooperation zone, which is the core of this plan. This is designed to streamline the cross-border movement of scientific research personnel, materials, and transportation methods between the Shenzhen and Hong Kong parks of the HTCZ. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the GACC has been committed to actively supporting the construction of the HTCZ. The plan specifies that the Shenzhen park of the HTCZ will leverage the existing management facilities and conditions of the Shenzhen Futian Bonded Zone, and introduce a "whitelist" system for specific industries, institutions, and individuals. To further simplify the cross-border movement of individuals and commodities, we will implement both a port management system and a channel management system. These will be applied respectively in the "first sub-line" area (marking the boundary between the customs-supervised area and the Hong Kong SAR) and the "second sub-line" area (delineating the border between the customs-supervised area and the rest of the Chinese mainland).

The plan defines special supervision models of the Shenzhen park, and also puts forward higher requirements for customs work. Before the release of the plan, the GACC focused on promoting orderly cross-border flows of innovation factors between Shenzhen and Hong Kong and guided Shenzhen Customs to develop innovative ideas and models to actively support the construction of the cooperation zone. The work has mainly been carried out in the following aspects: first, we have strengthened information sharing and mutual recognition with relevant regulatory authorities, facilitated the cross-border passage of relevant science and innovation personnel and vehicles, and provided easy access to scientific research personnel and equipment to the cooperation zone. Second, we have continuously improved supervision models for customs oversight and supported the rapid production, research, and development of imported equipment, materials, and accessories of high-tech enterprises. Third, tailored policies for complete sets of equipment have been rolled out to simplify inspections. 

In the next step, the GACC will focus on functional orientations of the HTCZ, hear the opinions and suggestions of all sectors, improve existing facilitation measures, continue to improve the business environment, and strengthen collaboration with relevant departments in accordance with requirements of the plan to ensure enhanced compliance oversight, opening-up, and smooth customs clearance. 

Currently, the GACC is carrying out the Smart Customs Campaign, which has entered a critical stage. We will take supervision models of the Shenzhen section as an important application scenario for the construction of smart customs, carry out overall planning, and steadily advance. This will help promote orderly cross-border flows of innovation factors and contribute our wisdom and strength to building new heights of scientific and technological innovation and promoting the high-quality development of the Guangdong-Hong Kong-Macao GBA. Thank you. 

Hong Kong Commercial Daily:

The HTCZ is the fourth cooperation platform deployed by the central government in the Guangdong-Hong Kong-Macao GBA after those in Hengqin, Qianhai, and Nansha. How will Guangdong province strengthen overall planning and accelerate the implementation of the plan for the Shenzhen park of the HTCZ? Thank you.

Sun Zhiyang:

Your question involves Guangdong province, so I will answer it. First of all, thank you for the question. Guangdong province has firmly implemented the decisions and deployments of General Secretary Xi Jinping and the CPC Central Committee. Huang Kunming, secretary of the CPC Guangdong Provincial Committee, and Wang Weizhong, governor of Guangdong province, convened several meetings on studying and accelerating the construction of the HTCZ. Next, we will actively seize opportunities upon the release of the plan, focus on the central task of promoting international scientific and technological innovation in collaboration with Hong Kong, provide qualified resources, offer preferable conditions, build good platforms, and ensure the implementation of various tasks and targets. In my opinion, the work mainly involves three aspects:

First, we will launch campaigns to study, publicize, and implement the plan. We will strengthen organization and leadership and carefully plan province-wide promotion campaigns that combine the study of General Secretary Xi Jinping's important speeches during his inspection in Guangdong and his important instructions. Meanwhile, we will also combine accelerating the construction of the Guangdong-Hong Kong-Macao GBA and the Shenzhen Pilot Demonstration Zone for Chinese Socialism and the three major cooperation platforms in Hengqin, Qianhai, and Nansha. We will build a clear understanding of the strategic deployment and intention of the CPC Central Committee, have a profound and accurate understanding of relevant principles and requirements, and concentrate on fully implementing the principles and requirements. We will closely follow, in both thought and action, the decisions and arrangements of the CPC Central Committee and ensure that we advance all our initiatives in an effective and orderly way.

Second, we will accelerate the development of the high-standard implementation system. We will sort out relevant reform tasks, construction projects, policies, and measures outlined in the plan, quicken our steps in working out provincial-level key task lists and lists of responsibilities, do our work according to plans, schedules, and requirements, carry out dynamic and close-loop management, and faithfully implement the decisions and arrangements of the central government. Meanwhile, we will guide Shenzhen in accelerating the introduction of implementation plans and special plans related to space, scientific research, transportation, and so on, and actively make our efforts in delegating administrative powers of provinces and cities to lower levels to grant more autonomy in reforms to the cooperation zone. We will also strengthen coordination and communications with state ministries and commissions and make greater efforts to ensure that detailed rules and regulations of major policies related to "whitelists," line-division management, and fiscal and tax incentives can be implemented in Hetao as soon as possible. 

Third, we will solidly advance the implementation of a number of landmark cooperation projects. We will take the initiative to enhance coordination in planning and infrastructure alignment with the Hong Kong park, jointly build a cluster of world-class scientific research and experimental facilities, accelerate the overall reconstruction of Huanggang Port and the continued transformation of the Futian Port area, and bring the Shenzhen branch of the Hong Kong Science Park into operation as soon as possible. With a focus on key research and development areas such as information, materials, life science and technology, we will actively introduce and deploy a number of advantageous disciplines and key research projects in universities of Hong Kong and Macao, support scientific research institutions in Guangdong, Hong Kong and Macao to jointly undertake major national and provincial science and technology special projects and key research and development plans, and jointly build a hub in the GBA for pilot-scale industrial testing and transformation. Efforts will be made to create a highly open international scientific research system environment, support the BRICS Institute of Future Networks and other international scientific and technological organizations to settle in Hetao, and create a scientific and technological cooperation platform that gathers global wisdom. Thank you.

China Daily:

Building an international scientific and technological innovation system and mechanism involves personnel entry and exit, cargo management, the cross-border flow of funds and data, as well as intellectual property protection, and many other fields that touch on deep-seated differences in the legal, institutional, and regulatory aspects between Shenzhen and Hong Kong. What specific arrangements has Shenzhen made in promoting the implementation? In addition, what key projects will be implemented on the Shenzhen side? Thank you.

Qin Weizhong:

Thank you for your questions. As this involves some of the earlier arrangements in Shenzhen and the subsequent key projects, I will answer these questions. The plan for the Shenzhen park of the HTCZ puts forward a set of clear requirements for building an international scientific and technological innovation system and mechanism. Next, with support and guidance from national ministries and commissions such as the NDRC, MOST and GACC, as well as the People's Government of Guangdong Province, we will fully implement the tasks outlined in the plan, continue to free our minds, innovate with courage and strive to accelerate the formation of a flexible, efficient and risk-controllable cross-border scientific and technological innovation system and mechanism. The GACC has just briefed us on the entry and exit of personnel and cargo. To put it simply, administration is divided by sub-lines in the customs supervision area of the Shenzhen park. In the first sub-line, the control of goods will be more flexible, while in the second sub-line control will be effectively implemented. And the goods enjoy free movements within the park. The purpose is to speed up the preparation and opening up of special cross-border ports in the cooperation zone. We have implemented "whitelist" filing management for scientific research institutions and enterprise exploration. In terms of the cross-border flow of scientific research funds, we have devised supportive policies to facilitate the cross-border flow of scientific research funds for enterprises in the Shenzhen park, promoted the establishment of an early-stage dual-currency Fund of Funds(FoF) and a series of sub-funds in the HTCZ, and directed more funding into the field of scientific and technological innovation. In terms of cross-border data flow, we have started construction of dedicated international data channels, and are exploring the construction of international information and communications facilities, including the Administration of International Communications Gateways . In terms of intellectual property protection, we will improve the intellectual property protection system to align with international standards, and build a whole-chain intellectual property protection system that expedites acceptance, authorization, confirmation and rights safeguarding in a timely manner. We are establishing a high-level scientific and technological achievements and intellectual property trading center. This trading center has already been established and is currently located at the Shenzhen Stock Exchange.

Regarding the major project developments that you inquired about, as I just introduced, this Thursday we will hold a contract signing activity for projects in the Shenzhen park of the HTCZ. We have also done some preparatory work in the early stage. Around 40 projects have been signed and are now moving in. In addition, as I also just mentioned, the Shenzhen branch of the Hong Kong Science Park will officially open. Next, we will also step up efforts to build a large number of sci-tech innovation and industry projects such as the Shenzhen-Hong Kong Science and Technology Comprehensive Service Center, the Shenzhen-Hong Kong Open Innovation Center, and the International Collaborative Innovation Zone. These efforts will bring together a cluster of Hong Kong and international key laboratory in advantageous disciplines, as well as high-level research centers and top enterprise R&D centers to create major synergy projects that support each other with the functions of the Hong Kong park and are closely related to the field. This will lift the development and construction of the HTCZ to a new level. Thank you.

Xinhua News Agency:

The plan puts forward that major issues related to the Shenzhen park should be addressed in a coordinated way under the leadership of the central leading group for coordinated regional development. Could you brief us on this central leading group? Furthermore, what is its connection with the leading group for the construction of the Guangdong-Hong Kong-Macao GBA? Thank you.

Guo Lanfeng:

I'll take these questions. You have noticed the difference, and this perceptive observation suggests that you have carefully reviewed the plan. Thank you for posing these questions.

As we know, since the 18th CPC National Congress, General Secretary Xi Jinping has personally made development plans, deployments, and decisions regarding major regional strategies. These include the well-known strategies like the coordinated development of the Beijing-Tianjin-Hebei region, the integrated development of the Yangtze River Delta, the development of the Yangtze River Economic Belt, the ecological conservation and high-quality development in the Yellow River basin, the construction of the Guangdong-Hong Kong-Macao GBA, and the Hainan Free Trade Port, to name just a few. After the 20th CPC National Congress, the CPC Central Committee decided to merge the leading groups responsible for these major strategies into one "central leading group for coordinated regional development." In my opinion, this move aims to ensure the Party's leadership over all endeavors and institutionalize and specify such leadership on regional economic development. The move also helps to make plans for these major regional strategies at a higher level, and with a strategic perspective and a holistic approach, and further coordinate key policies related to these strategies in a systemic manner.

The major function of this central leading group, which, of course, contains those of the leading group for the construction of Guangdong-Hong Kong-Macao GBA, is to examine key decisions, plans, policies, projects, and annual work arrangements related to major strategies. It will also coordinate efforts to address key issues and oversee the implementation of key tasks. Regarding major issues related to the Guangdong-Hong Kong-Macao GBA, we have also invited the chief executives of the Hong Kong and Macao SARs to participate. In the meantime, in accordance with major issues and tasks, we have also set up special work teams and inter-departmental joint meeting mechanisms under guidance of the central leading group in a bid to concentrate efforts and carry out specific tasks within defined timeframes. This concludes my response to your first question.

We have all attached great importance to the Guangdong-Hong Kong-Macao GBA, as it is one of China's three growth drivers, alongside the Beijing-Tianjin-Hebei region and the Yangtze River Delta. General Secretary Xi Jinping has also recognized the significance of this strategy and has delivered a series of significant speeches and instructions accordingly. This year, during an inspection tour in Guangdong, General Secretary Xi Jinping stressed that the Guangdong-Hong Kong-Macao GBA should be developed into a strategic hub for the new development pattern, a demonstration zone for high-quality development, and a pioneering area for Chinese modernization. This summarizes General Secretary Xi Jinping's guiding instructions on steering the development of the Guangdong-Hong Kong-Macao GBA from a holistic and strategic perspective. This also adds new key dimensions to the area's development and sets additional higher requirements for all efforts.

The office of the leading group is set within the NDRC. Members of the leading group office will thoroughly study and implement General Secretary Xi Jinping's important instructions and the decisions of the CPC Central Committee. In accordance with the arrangement of the leading group, the office will also collaborate with relevant parties, continue implementing major regional strategies such as that relating to the Guangdong-Hong Kong-Macao GBA, promptly solve difficulties and issues and make concrete efforts to develop the area into a strategic hub for the new development pattern, a demonstration zone for high-quality development, and a pioneering area for Chinese modernization. Thank you.

Shou Xiaoli:

We have time for two more questions.

CRNTT: 

The HTCZ was under the principle of "one zone, two parks ," as it consists of Shenzhen park and Hong Kong park. As the plan for the Shenzhen park has already been issued, when will the plan for Hong Kong park be released? How will Hong Kong park synchronize its development, construction, and science and technological industrial chain with Shenzhen park? What influence will Shenzhen park's plan have on the other park? Thank you.

Chan Kwok-ki:

Thank you for your questions. The cooperation zone plays a crucial role in Hong Kong's future innovation and technology development. Abiding by the "one country, two systems" principle, the construction of the "one zone, two parks" enables Hong Kong to leverage its advantages of enjoying strong support from the motherland and remaining connected to the world, and helps Hong Kong contribute to the national strategy of building strength in science and technology. The Hong Kong SAR government promulgated the Hong Kong Innovation and Technology Development Blueprint last year to establish a clear development path and formulate systematic strategic planning for Hong Kong's innovation and technology (I&T) development over the next five to 10 years, charting Hong Kong in moving towards the vision of an international I&T center . The blueprint sets out strategies for enhancing the I&T ecosystem, actively integrating it into the national development agenda, and serving as a bridge between the Chinese mainland and the rest of the world . Considering Hong Kong's strategic advantages, the blueprint also suggests focusing on developing life and health scientific technology, artificial intelligence (AI), and data science, as well as advanced manufacturing, new energy technologies, and other industries.

To actively align with national development, the Hong Kong SAR government will make efforts to build the Hong Kong-Shenzhen Innovation and Technology Park . At the same time, it will also actively explore other innovative growth models and accelerate the development of the San Tin Technopole in the Northern Metropolis to provide critical support for promoting the expansion of Hong Kong's science and technology industry.

Upon assuming office last year, Hong Kong SAR Chief Executive John Lee Ka-chiu prioritized the accelerated development of the Hong Kong park while also emphasizing the optimization of the park's functions. Currently, the first phase of land use planning and layout has been basically completed. The strategies and development directions set out in the Hong Kong Innovation and Technology Development Blueprint indicate that different sections will be dedicated to different industries. We will further advance the development of facilities in the park and release more details in the next few months. 

To ensure alignment between Shenzhen park and Hong Kong park, close communication has been maintained between the joint task forces at the government level. Moreover, Hong Kong-Shenzhen Innovation and Technology Park 's board of directors, which includes members nominated by Shenzhen, has maintained close contact with its Shenzhen Park counterpart, especially on matters concerning park development and industrial chain arrangements. Such contact will continue moving forward.

The plan for the Shenzhen park is about the development orientation of intermediate tests between research achievements and their real-world applications . The plan highlights information technology, biomedicine, AI, and the digital economy, which align with the points set out in the blueprint and industries the Hong Kong park will focus on. 

Hong Kong boasts the advantages of international influence and a solid I&T foundation. It's home to five of the world's top 100 universities and testing facilities accredited by both domestic and international institutions. It can pool the innovation resources of the GBA and the world at large. Furthermore, it can provide services in science and technology R&D, intellectual property trading, financing, legal mediation, and other services for the mainland. 

Furthermore, a slew of measures favorable to Hong Kong's scientific and technological development have been issued over recent years, facilitating the effective flow of innovation factors between Hong Kong and the mainland. In March, the Hong Kong SAR government signed the Mainland and Hong Kong Arrangement on Accelerating the Development of Hong Kong into the International Innovation and Technology Centre with the MOST. This is a significant stride towards promoting the transformation of Hong Kong into an international I&T center. The Hong Kong SAR government will continue to work with the MOST and other ministries and commissions in policy formulation. This collaboration aims to foster enhanced exchanges between mainland and Hong Kong departments on issues like I&T policies and resources. The objective is to rationalize the policies and arrangements involved. Since personnel, research materials, and funding are important innovation resources, forging deep-rooted exchanges and collaborations is critically important.

In general, in the light of the development plan for the Shenzhen park, the Hong Kong SAR government will continue to maintain close contact and strengthen cooperation with the Shenzhen Municipal People's Government. Particularly, on the basis of the "one zone, two parks ," we will strive to implement measures to promote the cross-border flow of various innovation elements in the software field. This aims to bring together the advantages of both Shenzhen and Hong Kong in the cooperation zone to turn it into a bridgehead for deep cooperation in innovation and technology.

Nanfang Daily:

The plan clarifies that, by 2035, a pattern of collaborative innovation with the Hong Kong park will be fully established to create a world-class scientific research hub, which will strongly support the construction of the Guangdong-Hong Kong-Macao GBA international innovation and technology center and the Guangzhou-Shenzhen-Hong Kong science and technology innovation corridor . So, how will Guangdong province leverage the cooperation zone to promote in-depth cooperation between Guangdong and Hong Kong and better support the development of the GBA international innovation and technology center? Thank you.

Sun Zhiyang: 

First of all, thank you for your question. I will take this question. As mentioned earlier in Mr. Guo's introduction, the HTCZ is currently the only major cooperation platform in the GBA with a focus on science and technology innovation. It also plays an important role within the spatial layout of the "two points, two corridors " of the GBA international innovation and technology center. The Shenzhen park and Hong Kong park are adjacent to each other, separated only by a river. The conditions for cross-border cooperation are particularly favorable, fostering a vibrant atmosphere for science and technology innovation. The potential for collaboration between the two parks is huge. Promoting the planning and construction of the HTCZ is beneficial for giving full play to the leading role of the cooperation platform. It is also conducive to building an innovation ecological chain that encompasses the entire process of "basic research + technological breakthroughs + achievement commercialization + scientific and technological finance + talent support." During this process, Guangdong will continue to focus on work in three aspects:

First, in terms of regional collaborative innovation, we will accelerate the establishment of a Shenzhen-Hong Kong pilot area for open cooperation in science and technology innovation. We will use the unique advantages of the Shenzhen park as a "platform" and a "channel," enhance the synergy with the planning of the Hong Kong park, strengthen the overall development and utilization of "one river, two banks " and "one zone, two parks," and jointly foster a number of major collaborative projects with mutually supportive functions and closely related fields. At the same time, we need to establish an efficient Shenzhen-Hong Kong collaborative mechanism for science and technology innovation, carry out high-level cooperation and efficient collaboration, and jointly participate in major international scientific programs and projects. Additionally, we also need to focus on global high-end innovation elements and resources and connect with international science and technology innovation networks. By working collaboratively, we aim to establish a new benchmark for Shenzhen-Hong Kong science and technology innovation cooperation and create an international hub for science and technology innovation. 

Second, in terms of institutional and mechanism innovation, we will speed up the building of a pilot zone for international advanced science and technology innovation rules. Under this framework, we will introduce new rules. On the one hand, we will continue to improve the allocation of scientific research resources. In terms of scientific research project evaluation, research funding expenditure, and process management, we should learn from the advanced research management systems of Hong Kong and international sources. We will also speed up the establishment of a flexible, efficient, and risk-controllable cross-border science and technology innovation system and mechanism. In addition, we will promote the implementation of policies such as "line-division customs management " and "whitelists," build a highly open special supervision system, and promote the efficient and convenient cross-border flow of personnel, materials, technology, and data. Furthermore, we will establish an internationally competitive mechanism for attracting talented personnel and creating an international innovative talent port.  

Third, in terms of industrial technology innovation, we will accelerate the development of the intermediate testing and industrial transformation cluster in the GBA. We will continue to adhere to the "four orientations," focus on conducting cutting-edge basic research and original innovation, making breakthroughs in core technologies in key areas, building a world-class intermediate testing service platform, and accelerating efforts to yield a series of science and technology achievements with great leveraging and driving force. In addition, we will strengthen the principal role of enterprises in science and technology innovation and foster more innovative enterprises with independent intellectual property rights and core competitiveness. We will also constantly improve the transformation and industrial application of science and technology achievements, and inject strong impetus into the construction of a modern industrial system with high-quality science and technology supply at the source. 

Thank you.

Shou Xiaoli:

Thanks to all the speakers and friends from the media. That's all for today's press conference.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Liu Jianing, Zhang Junmian, Zhu Bochen, Wang Wei, Liu Caiyi, Ma Yujia, Yang Xi, Yan Bin, Yuan Fang, Liu Qiang, Xu Kailin, Huang Shan, He Shan, Zhang Rui, Li Huiru, Zhou Jing, Wang Yanfang, Yan Xiaoqing, David Ball, Jay Birbeck, and Tom Arnsten. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

Read in Chinese

Speakers:

Mr. Pei Jinjia, minister of veterans affairs

Mr. Ma Feixiong, vice minister of veterans affairs

Mr. Yu Jingsen, director general of the Department of Employment and Entrepreneurship of the Ministry of Veterans Affairs (MVA)

Mr. Li Guiguang, director general of the Department of Commendation and Commemoration of the MVA

Chairperson:

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

Date:

July 28, 2023

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 23rd briefing in the series "Embarking on the New Journey — A Government Perspective," and the theme of this briefing is "comprehensively advancing the high-quality development of veterans affairs in the new journey of the new era." Today, we are glad to have invited Mr. Pei Jinjia, minister of veterans affairs. Mr. Pei will brief you on related information and take your questions. Also joining us today are Mr. Ma Feixiong, vice minister of veterans affairs; Mr. Yu Jingsen, director general of the Department of Employment and Entrepreneurship of the Ministry of Veterans Affairs (MVA); and Mr. Li Guiguang, director general of the Department of Commendation and Commemoration of the MVA.

Now, I will give the floor to Mr. Pei Jinjia.

Pei Jinjia:

Ladies and gentlemen, friends from the media, good afternoon. It is my pleasure to meet with you here today. First, on behalf of the MVA, I would like to express to you my heartfelt gratitude for your long-term interest and support toward the work concerning veterans affairs.

The 20th National Congress of the Communist Party of China (CPC) has drawn up an inspiring blueprint for building China into a modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts along a Chinese path to modernization. It has also made definite arrangements for the work concerning veterans affairs, and stressed the needs to "improve our national defense mobilization capacity and the development of our reserve forces " and "better motivate service personnel and their family members through military honors and do more to protect their rights and interests, provide better services and support to ex-service personnel, and consolidate and boost unity between the military and the government and between the military and the people. " The MVA has resolutely implemented the decisions of the 20th CPC National Congress, and grasped the far-reaching strategic considerations of General Secretary Xi Jinping's personal planning, directing and promoting of the establishment of veterans affairs management and support institutions. To ensure that the military profession and veterans are respected by the whole of society and better contribute to socioeconomic development and the cause of national defense and military forces, the MVA has upheld fundamental principles and broken new ground, made solid steps and strived to promote the high-quality development of veterans affairs.

First, the MVA has strengthened theoretical and political guidance. The MVA has taken uniting and leading veterans to follow the instructions and guidance of the Party and feel gratitude towards it as key political responsibilities. The MVA has improved the work mechanism of veterans' theoretical and political issues, and formulated regulations concerning veterans' theoretical and political education in the new era. It has promoted the regular, systematic and consistent learning and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era among veterans. The MVA has also launched a practical and educational series that strengthens the Party's leadership and promotes the guiding principles of the 20th CPC National Congress among veterans. It has also worked to timely communicate General Secretary Xi Jinping and the CPC Central Committee's care toward veterans, and develop veterans of the new era who embody firm beliefs, patriotism, dedication, enterprise, integrity and observance of the law.

Second, the MVA has proactively advanced reform and innovation. The MVA has improved the organization and management system, the workflow process, as well as policy and institutional arrangements. It has created the new occupation of "veterans affairs officer." It has also formulated regulations for the construction of veterans service centers and stations, and made notable progress in building such centers and stations covering six levels from the national-level to villages and communities. The MVA has thoroughly implemented opinions on improving the administration of veterans affairs in the new era , fully implemented legislation such as the Veterans Law , and carried out arrangements on supporting veterans for the 14th Five-Year Plan period. The MVA has also introduced a series of effective and practical legislation and regulations, and further eliminated long-standing institutional barriers and policy issues that previously hindered progress.

Third, the MVA has made comprehensive plans for the cause of veterans affairs. In accordance with the needs and characteristics of veterans, the MVA has strengthened employment training, ensured unimpeded employment information, expanded career channels, and led efforts to utilize related policies, in a bid to help veterans find jobs. It has also innovated and optimized resettlement policies for ex-service personnel, and worked to ensure the resettlement of military officers and veterans, encouraging them to contribute to socioeconomic development in all sectors of society. Focusing on the goals for the centenary of the People's Liberation Army in 2027 , the MVA has issued a guideline about serving for war preparedness and combat capabilities . It has also established and improved a quick response mechanism for emergencies and wartime within the nationwide military-civilian mutual support system as well as the military-civilian dual list system . The MVA has also completed the resettlement of veterans and soldiers with injuries, illnesses or disabilities, and strengthened the reform and development of military supply stations, glory hospitals and special care hospitals. The MVA has also made efforts to ensure the resettlement of military personnel's family members by providing job opportunities and schooling for their children, in a bid to better contribute to national defense and the development of military forces.

Fourth, the MVA has worked to create an environment where the public values veterans' contributions. The MVA has carried out publicity work based on role models, and inspires and encourages the public with the meritorious deeds of military heroes, soldiers, ex-service personnel and civilians who support the military. As the remains of Chinese People's Volunteers (CPV) martyrs have gradually been brought back to China from the Republic of Korea, the MVA has organized events to locate the relatives of these martyrs. It has also launched red education programs centered around the martyrs' memorial facilities, and held a nationwide narrator competition for martyrs' stories, in a bid to pass down the revolutionary genes to the younger generation. The MVA has organized an array of military-civilian mutual support activities, in order to consolidate the tight bonds between the military and the government and between the military and the people. The MVA has also enhanced preferential treatment for ex-service personnel and their family members. It has increased government subsidies for entitled groups for five consecutive years and issued preferential treatment certificates for those involved. The MVA has also launched activities to provide care and support for veterans, visiting and assisting veterans in need, with the aim of promoting a profound sense of respect and honor.

Fifth, the MVA has played the role of motivator and guide. The MVA has continued to regard veterans as an important force in the Party's governance of the country. We have rallied and guided them to take the lead in consolidating the achievements of poverty alleviation, rural revitalization, grassroots governance, stability in border regions and other major national strategies, thereby contributing to the glory of the Party and military with practical actions. Currently, there are more than 3.5 million veterans volunteering nationwide. Faced with various difficult and dangerous tasks, they respond promptly and take actions, building a Great Wall of steel to protect and serve the people, and displaying unwavering loyalty to the Party and country.

Ladies and gentlemen, friends from the media, the huge number of veterans have once dedicated themselves to national defense and armed forces building, making great sacrifices and contributions in safeguarding our national security. Following their military service, they have actively participated in the country's socioeconomic development, and are an important force in promoting the Chinese path to modernization. We will thoroughly implement the decisions and arrangements of the 20th CPC National Congress, and implement General Secretary Xi Jinping's important discourse on the work concerning veterans affairs. We will serve and guarantee the legitimate rights and interests of the huge number of veterans, give full play to their important role as valuable human resources and talents, and actively contribute to the construction of a strong country and national rejuvenation through the work concerning veterans affairs.

With Army Day approaching, on behalf of the veterans affairs system, I would like to extend warm regards and profound respect to all veterans. I wish you all good health, successful work and family happiness. Thank you.

Chen Wenjun:

Thank you, Mr. Pei. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

Legal Daily:

The Veterans Protection Law of China is a fundamental law in the field of veterans affairs. With its implementation, what changes have taken place in the field of veterans affairs? Could you provide insights into the new initiatives and arrangements planned with regards to improving the complementary legal and regulatory framework in the upcoming stages? Thank you.

Pei Jinjia:

Thank you for your questions, let me elaborate on this. The formulation and implementation of the Veterans Protection Law of China was a significant decision made by the CPC Central Committee. It is a concrete embodiment of the implementation of Xi Jinping Thought on the Rule of Law and provides a comprehensive legal basis for the work concerning veterans affairs in the new era. Since the implementation of the Veterans Protection Law, departments for veterans affairs at various levels have diligently studied, promoted and put the law into practice, resulting in positive achievements in the legal construction of work concerning veterans affairs.

First, we have further refined the policy and regulatory framework. Taking the enactment of the Veterans Protection Law as a catalyst, we have facilitated the development of a series of policies, regulations and systems. Over 100 policy documents related to veterans affairs have been successively issued, providing excellent policy and legal support for our various tasks. In particular, in line with local situations, various complementary measures have been introduced, enabling the preliminary formation of a coherent and coordinated policy and regulatory framework that connects different levels of veterans' work.

Second, we have safeguarded the legitimate rights and interests of veterans. We have taken a series of innovative measures to address key issues of concern among veterans, such as employment and resettlement, education and training, assistance for those in need, commendation for martyrs, and preferential treatment and compensation. These efforts have led to veterans enjoying more of the fruits of reform and development, and a resolute correction of behaviors that violate policy and regulatory provisions. We have also firmly investigated and punished various illegal conducts that infringe upon the honor of heroes and martyrs.

Third, we have improved administrative efficiency. The promulgation of the Veterans Protection Law, as well as the formulation of various policies and regulations, have established a fundamental framework guiding our work in veterans affairs. We have successively carried out initiatives such as the Year of Implementing Legal Policies, On-Site Inspections and extensive research efforts, which have further promoted the implementation of legal policies. At the same time, we have regarded the Veterans Protection Law as an important benchmark for administrative decision-making, management and supervision. We have developed a list of administrative law enforcement matters related to the work concerning veterans affairs, standardized the criteria for administrative discretion, and promoted strict, standardized, civilized and fair law enforcement.

Fourth, we have united our efforts. The Veterans Protection Law clearly stipulates that caring for and showing love to veterans is a shared responsibility of the whole of society. Since the promulgation of the law, through extensive publicity, various sectors of society have become increasingly concerned with the work on veterans affairs, and have actively worked to help solve practical difficulties facing veterans and other service personnel. It can be said that a positive situation has gradually formed, in which the Party, government, military and civilian sectors are jointly promoting veterans affairs.

Next, we will continue to uphold Xi Jinping Thought on the Rule of Law and adhere to General Secretary Xi Jinping's important discourse on the work concerning veterans affairs, and further improve various policies and regulations. Since the promulgation of the Veterans Protection Law, there are still several regulations and policies that need to be improved. In particular, we need to accelerate the formulation and revision of regulations and policies in the near-term, such as regulations on the commendation of martyrs, the placement of veterans and the preferential treatment of service personnel. We need to further improve the corresponding implementation measures and promote the implementation of various laws and policies. At the same time, we will guide all regions to creatively tailor the comprehensive implementation of laws and policies to local conditions. Thank you.

CCTV:

Demobilized military personnel are a valuable talent pool. What work has the MVA done to leverage the role of veterans? What have been the results of this work? What plans are there for the work going forward? Thank you.

Ma Feixiong:

Veterans are invaluable assets for the Party and the country. To give play to their role is an important responsibility entrusted to the veterans affairs system by the Party and the government. In recent years, we have been dedicated to making progress in three aspects:

First, to ensure that veterans remain a solid force in upholding the Party's people-centered principle. This involves recognizing model veterans and models of civil-military cooperation through high-profile commendations. We have continuously carried out publicity work based on role models, and launched a practical and educational series that strengthens the Party's leadership. We rolled out serial activities to consolidate veteran communities and let them know and understand Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the essence of the 20th CPC National Congress, among others, guiding veterans to better align with and follow the Party's leadership.

Second, to ensure that veterans remain an important force in socioeconomic development. For those who meet the conditions of employment, we place them in most suitable positions to fulfil their talents. For those who find jobs on their own , we provide policy support such as professional skills training and academic education so they can find desirable jobs or start their own businesses. For veterans from rural areas or urban veterans wishing to contribute to rural development, we encourage them to make contributions to rural revitalization and primary-level governance. At present, officials with a veteran background constitute 10.5% of the total number of rural Party secretaries, with 348,000 outstanding veterans worked in Party branch committees in villages and communities, as well as villagers committees and community residents committees.

Third, to ensure that veterans serve as backbone forces in emergency response efforts and crisis management. We have established volunteer service teams. In recent years, more than 3 million individuals have dedicated themselves to frontline emergency rescue and response work, especially in epidemic prevention and control. Right now, as we host this press conference at this afternoon, many veterans are tirelessly working in prevention and mitigation of typhoons, floods, and other disasters. They are truly admirable and respectable and should be held dear.

Going forward, we will provide more help for veterans to fulfil their talents. First, we will issue regulations regarding resettlement of veterans and employment and entrepreneurship of veterans, to provide policy support for them to put talents to use. Second, we will expand the functions of primary-level service centers for veterans to provide more support. Third, we will ensure that role-model veterans are included in local chronicles, invited to important occasions and provided with regular sanative recovery services, to make them feel their values are recognized and they are cared about. Thank you.

China Veterans:

As we are all aware, the CPC and the government hold deep concern for veterans and have provided them with special care and support. However, some individuals still face difficulties. What work has the MVA done in assisting veterans in need, and what arrangements will be made in the next step? Thank you.

Ma Feixiong:

As we all know, General Secretary Xi Jinping emphasized the need to care for veterans, who have made contributions to protecting our country. Now, some among them have encountered difficulties such as serious illness, domestic misfortune, and unemployment, and are currently facing the most difficult time of their lives and are in most need of help. Our country has a large population and weak foundations for development. This makes it financially difficult to take very good care of veterans. But still, we should prioritize their basic livelihoods and employment. Based on this understanding, we have mobilized the whole system to take practical steps and solve their problems with our heart and soul. Our work has focused on several aspects:

First, we conducted a thorough assessment, registered veterans in need and made regular visits to offer support. In the first half of this year alone, more than 2 billion yuan was invested across the country, and 7.49 million visits were made to help veterans in need.

Second, we made full use of existing policies, and earnestly ensured that basic living needs were met. For laid-off and unemployed veterans, we made sure they caught up on payment of basic pension insurance and medical insurance, benefiting more than 2.85 million veterans. For veterans having difficulty finding employment, we arranged training, built platforms, secured special posts for them and helped more than 2 million veterans find jobs. For those veterans facing difficulty in accessing medical services, we established a comprehensive support mechanism involving insurance, subsidies, assistance and preferential treatment.

Third, we mobilized social forces, including the China Veterans Support Foundation, and encouraged the society to care for and help veterans. We continued to carry out a program with the aim to warm their hearts by providing surgeries for veterans with cataracts and assistance to those with other diseases, especially hearing aids for those with hearing impairments. We also provided medical assistance to the children of veterans with congenital heart diseases. To prevent certain veterans' children from dropping out of school, we provided such help as student grants. 

The difficulties faced by veterans have always been our greatest concern and utmost care. Next, our focus will be on speeding up, expanding coverage, and maintaining sustained efforts. Speeding up refers to simplifying approval processes, reducing turnaround time, and ensuring timely assistance for veterans in need. Expanding coverage involves integrating resources from various sectors and mobilizing forces from all sides, enabling more veterans in need to benefit from a wider range of programs and higher standards of support. Sustained efforts involve exploring the establishment of institutionalized and standardized funding source mechanisms to ensure a more secure guarantee for assistance and relief work for veterans. Thank you.

Red Star News：

To our knowledge, the issuance of preferential treatment certificates for veterans has basically been completed, but there are differences in the content of preferential treatment in different places. With August 1's Army Day approaching, I would like to raise a question on behalf of the vast number of veterans. Does the MVA have any good news regarding expanding the usage scenarios and improving the sense of satisfaction for certificate holders? Thank you.

Yu Jingsen：

This question is very important. The use and issuance of preferential treatment certificates are related to the sense of gain and honor of veterans, and veterans are extremely concerned about it. The ministry's leading Party members group attaches great importance to this matter, and the Department of Support and Preferential Treatment of the ministry has actively responded to these concerns. We have met with the media earlier, and we would like to express our gratitude to all the journalists for their vigorous publicity and reporting. Recently, we have primarily accomplished two aspects of work. On the one hand, we have made efforts to enhance the value of the preferential treatment certificate. We have collaborated with 20 major enterprises, including the Industrial and Commercial Bank of China, China UnionPay, CNPC, and China Unicom. Additionally, we are working to continuously expand the scope of cooperation, mobilizing and encouraging enterprises and organizations that actively support and serve veterans to provide priority access and discounts in the areas of tourism, dining, shopping, and more for veterans and other entitled beneficiaries nationwide. Currently, we have already covered over 1,600 A-grade or above scenic spots. On the other hand, we have been focusing on improving the convenience of the preferential treatment certificate. We are actively developing an electronic preferential treatment certificate. Once the electronic preferential treatment certificate is launched, holders can download and use it on their phones. The electronic preferential treatment certificate consolidates various pieces of information, such as the content and items of the preferential treatment. This enables users to independently access and enjoy the benefits.

It should be noted that due to uneven development among different regions in our country, there are differences in the preferential policies and the extent of benefits offered. We hope that veterans can understand and support this situation. We firmly believe that with the development of the economy and society, through joint efforts of various regions and departments, the number and scope of preferential treatment programs will increase, and the standards of preferential treatment will also rise. Thank you.

Hong Kong Bauhinia Magazine:

Employment is pivotal to people's wellbeing and a core concern for veterans. May I ask what measures the MVA has taken to assist in the employment of veterans? What considerations are being made for the next steps? Thank you.

Pei Jinjia:

Thank you for your questions. As you just mentioned, employment is pivotal to people's wellbeing. General Secretary Xi Jinping attaches great importance to the employment of veterans. During his inspection trip to Inner Mongolia in June of this year, he specifically emphasized the need to focus on promoting employment for groups such as college graduates, veterans, and migrant workers. Earnestly implementing the important instructions of General Secretary Xi Jinping, the leading Party members group of the MVA has convened several specialized sessions to study and deploy related work. In line with this year's unique circumstances, a series of policy measures have been introduced, and various methods have been taken to promote the employment of veterans. Currently, the overall employment situation for veterans remains stable. We have primarily undertaken the following initiatives:

First, we have focused on employment training. We consider employment training as a fundamental task to improve the quality of employment. We have selected over 4,000 distinctive training institutions nationwide to organize various adaptive and skills training programs to enhance the employment capabilities of veterans.

Second, we have streamlined access to employment information. We have launched a special campaign called the Special Action for Employment Services for Veterans and established a dedicated website to promptly and accurately announce job vacancies, providing employment information to veterans. In total, we have organized over 7,000 job fairs, offering recommendations for 4.5 million employment positions.

Third, we have expanded employment channels. Veterans, who have received specialized education, training, and major tests in the military, are valuable human resources. We promote outstanding veterans to join village committees and Party branches and become part of the teaching staff in primary and secondary schools. Additionally, we have a special recruitment program for veterans in firefighter recruitment. We also encourage veterans to start businesses in their hometowns, creating employment opportunities for other veterans through their entrepreneurial endeavors.

Fourth, we have provided guidance to veterans to make good use of employment policies. With joint efforts from the Ministry of Education, we have opened channels for the elevation of veterans' academic qualifications. At the same time, we have also introduced some preferential tax policies together with relevant departments. These policies encourage veterans to engage in self-employment and more enterprises to hire veterans, which effectively promotes their re-employment rates.

At present, the international economic environment is grim and complex, and domestic demand is quite insufficient, so more efforts need to be made this year. Next, we will work with dedication to implement the guidance and requirements made by General Secretary Xi Jinping, especially to reinforce training programs to help veterans become better equipped. Meanwhile, we will ensure smooth access to employment information and broaden employment channels to provide more jobs for ex-service members. We also advise that retired service members transform their career mindsets, continue to demonstrate their hard-working and persevering spirit from the military, take root in all walks of life, shine in their new posts, and make substantial contributions to socialist modernization. Thank you.

China News Service:

Recently, the CPC Central Committee and the State Council released a set of guidelines aimed at boosting the growth of the private economy. What actions has the MVA taken to support veteran-led start-ups? Thank you.

Yu Jingsen:

General Secretary Xi Jinping attaches great importance to developing private economy. After the CPC Central Committee and the State Council issued the "31 measures" document, the leading Party members group of the ministry earnestly studied, deployed, and put forward task requirements for promoting the development and growth of self-employment and enterprises founded by ex-service members. We have done the following work:

One area of focus is developing a clear picture. Currently, there are 4.96 million enterprises established by ex-service members and self-employed individuals across the country. These include 2.59 million enterprises, of which 46,000 are above designated size , and more than 370 are listed enterprises. Collectively, they have created 5.86 million jobs for ex-service members. Last year, the output value of enterprises founded by ex-service members exceeded 1 trillion yuan, contributing more than 300 billion yuan in taxes. Enterprises founded by ex-service members have significantly contributed to economic and social development.

Second, we have enhanced policies related to entrepreneurship and start-ups. In collaboration with over 20 ministries and departments, including the National Development and Reform Commission, we have jointly issued guidelines to support entrepreneurship and innovation among ex-service members. This initiative provides policy support for those qualified and willing to launch their own businesses.

Third, we have built platforms for entrepreneurship. We have gathered and promoted the experiences from Guangdong province and other places to integrate various social resources to incubate enterprises founded by ex-service members. We have guided various locations to develop supportive platforms, resulting in the creation of 1,988 business incubation centers. In Shaanxi province, the first National Veterans Entrepreneurship and Innovation Exhibition and Fair was held, featuring more than 800 projects and products. The event attracted over 20 million online page views, and the on-site turnover exceeded 3 billion yuan.

Fourth, we have strengthened services related to entrepreneurship. Together with six ministries and departments, including the Ministry of Human Resources and Social Security, we launched a month-long campaign to strengthen services for private businesses. Additionally, in collaboration with 13 ministries and departments, including the State Administration for Market Regulation, we launched another month-long campaign to strengthen services for self-employed individuals. We hope to boost confidence among ex-service members to establish enterprises and those self-employed through these measures. Thank you.

The Cover.cn: 

This year marks the 70th anniversary of the victory of the War to Resist U.S. Aggression and Aid Korea (1950-1953). Could you provide an update on the handover, return and burial of the remains of the Chinese People's Volunteer Army martyrs from the Republic of Korea (ROK), as well as the progress in locating the martyrs' relatives? Thank you.

Li Guiguang:

The work of welcoming back and burying the remains of the martyrs of the Chinese People's Volunteers in the ROK is related to the national image, the national sentiment, and the glory of the martyrs. The Party and the country have attached great importance to this work. Since the establishment of the MVA, we have thoroughly studied and implemented the important instructions of General Secretary Xi Jinping on commending martyrs, coordinated actively with the ROK side, worked closely with relevant military and civilian institutions, and welcomed back and buried a total of 324 martyrs for four consecutive years. In the process of welcoming back the remains of the CPV martyrs, we have continued to optimize the etiquette arrangements and adopted various means to express respect for martyrs from all walks of life. To be specific, the handover task was performed by the honor guards of the People's Liberation Army. The aircraft carrying the remains of the martyrs were welcomed with a water salute, the highest mark of respect in aviation, to pay tribute to heroes and martyrs. The remains of the CPV martyrs were carried by Y-20 transport aircraft and escorted by J-20 stealth fighter jets. The motorcade carrying the remains of the CPV martyrs was escorted by police motorcycles. Gun salutes, with the highest regulation of etiquette, were fired at the burial ceremony. We have also launched online and offline publicity and education activities themed on "welcoming back the heroes" to promote the great spirit of the War to Resist U.S. Aggression and Aid Korea.

This year marks the 70th anniversary of the signing of the Korean armistice agreement. More attention has been paid to the work concerning the handover, repatriation, and burial of the remains of the CPV martyrs in the ROK. We are actively making preparations and keeping close communication and negotiations with the ROK side to make arrangements for relevant work. We will disclose the follow-up progress to society in a timely manner. Meanwhile, we would also like to invite friends from the media to keep following the work on the handover, repatriation, and burial of the remains of the CPV martyrs in the ROK and jointly make good organization and publicity of this event. 

With the repatriation and burial of the remains of the CPV martyrs in the ROK, we have actively carried out activities to search for relatives of martyrs by extracting DNA information from the remains of 913 martyrs' remains returned over the past nine consecutive years, combined with clues providing pertinent information, such as seals in the relics returned, military records, military files, and related information. Authorities then looked for relatives, and conducted a comparison of DNA information to confirm their identities. With joint efforts, we have identified the identities of 10 CPV martyrs whose remains have been returned to China, and their relatives have been found. In the process of testing and comparison, we have continued to make breakthroughs in technologies and achieved major advances in identifying the possible relatives of martyrs and complicated kinship, and extracting DNA from the remains of martyrs wounded in war and buried for a long time.

Next, we will continue to carry out the work of searching for relatives of martyrs returned from the ROK, with an effort to find family members of additional CPV martyrs who have returned to China and identify more unknown martyrs. Thank you.

People.cn:

We know that memorial halls and martyrs' cemeteries serve as the repositories of the revolutionary legacy of the Party and the country, playing a critical role in fostering unity, and providing guidance in governance and educating the people. Could you please brief us on the latest updates concerning the work of protecting and managing memorial facilities for martyrs and commending martyrs? Thank you.

Li Guiguang:

Memorial halls, martyrs' cemeteries, and other memorial facilities for martyrs are a living history, a vivid teaching material, and, as you mentioned, the 'gene pool' of the revolutionary traditions of the Party and the country. At present, there are over 250,000 memorial facilities for martyrs, including the martyrs' tombs, more than 1,600 specialized protection and management institutions, and over 300 overseas memorial facilities from more than 50 countries. These are all important bases for carrying out programs promoting education on the history of revolution. We have been working on the protection and management of these memorial facilities with care, love, and various other efforts. We have mainly done the following work:

First, we have advanced the upgrading and renovation of memorial facilities for martyrs. We have worked with the National Development and Reform Commission to incorporate the upgrading and renovation projects of memorial facilities for martyrs above the city level into the program to support the social service facilities construction projects in the 14th Five-Year Plan period. We have worked with the Publicity Department of the CPC Central Committee and the Ministry of Finance to launch a special campaign to renovate, manage, and protect memorial facilities for martyrs at the county level and below. Since the latter part of last year, we have completed renovating and protecting over 200,000 memorial facilities for martyrs. At the same time, we have continued to optimize the exhibition and interpretative content of memorial halls, adding new research results of historical documents that embody the spirit of the current times to continuously strengthen the foundation for publicity and education on the history of revolution. 

Second, we have given play to the role of memorial facilities for martyrs in education on the history of the revolution. This year, we are organizing the third national competition for narrators in memorial facilities for heroes and martyrs with the theme of "Studying Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and Paying Tribute to Heroes and Martyrs" and promote the heroic deeds at different stages of China's revolution, development, and reform, leading the whole of society to jointly follow the footprints of General Secretary Xi Jinping to visit 'red sites' and understand his deep love and respect for heroes. At the same time, the institutions responsible for protecting memorial facilities for martyrs have continued to adopt detailed supporting measures and optimize services such as services for families of martyrs who travel to the burial place of martyrs to perform tomb sweeping rituals, tomb-sweeping services for those who are not able to visit the cemetery in person, as well as online tomb-sweeping services, and continued to promote patriotic publicity and education. We have carried out publicity and education activities to celebrate the fifth anniversary of the implementation of the Law on Protection of Heroes and Martyrs and actively encouraged people from all sectors of society to go to nearby martyrs' cemeteries during important festivals and holidays, such as the Qingming Festival and the Martyrs' Day, to honor and pay tribute to martyrs.

Third, we have strengthened the management and protection of overseas memorial facilities for martyrs. In August last year, we formed a delegation with the Ministry of Foreign Affairs to visit Zambia and hold a commissioning ceremony for the Tanzania Zambia Railway Memorial Park attended by Zambian President Hakainde Hichilema. In June this year, we organized a delegation to visit Laos and Myanmar to hold a commissioning ceremony for the memorial facilities for Chinese martyrs. With all these efforts, we have worked to foster a strong atmosphere of honoring martyrs and paying tribute to heroes and raised a profound love for the country from the people both at home and abroad.

Next, we will continue to advance our work in this regard and give better play to the role of memorial facilities for martyrs in commending martyrs and educating young people. Thank you!

China Review:

Last year, the new profession of veteran affairs officers was officially included in China's reference book for occupational classifications. Can you brief us on that? Thank you.

Ma Feixiong:

The new profession represents an initiative to implement General Secretary Xi Jinping's important instructions on establishing and improving veteran service and support systems. This new profession is specifically designed for those who work to offer service and support for veterans and falls under the management of the MVA. Veteran affairs officers mainly deal with routine work related to the ideological and political work of ex-service personnel, policy consultation and communication, benefits and settlement services, employment and entrepreneurship support, assistance to those in difficulty, reception of public complaints, and protection of rights and interests.

The veteran affairs officer is a totally new position and different from other professions. There are no previous examples for us to choose from or experiences to refer to. Therefore, we organized our best staff and spent over a year to formulate vocational standards, compile training courses, and form the first group of teaching staff. We have also launched pilot schemes in six prefectures and cities in provinces in the eastern, central, and western regions of the country earlier this month.

Promoting this profession helps improve veteran service and support efficiency, steadily increase community-level personnel, and enhance the competence and ethics of service providers to better serve veterans and develop high-quality veteran affairs work.

For the next step, we will prioritize three aspects of our work. First, we will focus on carrying out pilot programs. We will establish procedure-based mechanisms for training, evaluation, and incentives so as to gain successful experience at an early date and promote the mechanisms across the board. Second, we will fulfil our duties and tasks. We will build a large contingent of specialized and professional personnel to serve and support veterans. Third, we will ensure the quality of services. We will provide "one-stop" services that are more accessible, standardized, and caring. Thank you.

China Daily:

The 14th Five-Year Plan for Services and Support for Veterans is China's first national plan for veterans. It outlines plans and arrangements for the work on veteran affairs during the 14th Five-Year Plan period. How is it implemented? What are the next steps for this year? Thank you.

Pei Jinjia:

Thank you for your questions. Since the 18th CPC National Congress, General Secretary Xi Jinping has made a series of key remarks on veterans affairs, addressing fundamental questions of what to do, how to do it, and who will do the work. Following General Secretary Xi Jinping's major speeches, the plan comprehensively lays out how veterans affairs will be conducted during the 14th Five-Year Plan period. The leading Party members group of the MVA has prioritized and ensured the plan's implementation and taken three main initiatives.

First, we have made overall arrangements to promote the plan's implementation. We have formulated work allocation plans, made a specific roadmap and timetable, and identified responsible units and persons. Second, we have leveraged the strengths of exemplar practices. Under the coordination of the MVA leadership, suitable places have been encouraged to play an exemplar role in pioneering new practices based on local features. As a result, we have explored and summarized good practices worth promoting nationwide. Third, we have strengthened follow-up oversight to see real results. Based on our survey and research, we have launched targeted visits, formed inspection teams and visited local communities to learn about the plan's implementation and ensure that all tasks are fulfilled.

Recently, we have been organizing the mid-term assessment to comprehensively review the implementation of the 14th Five-Year Plan for Services and Support for Veterans. Next, we will summarize some good practices, especially those that could be copied and promoted nationwide, and promote and apply these practices. Second, in response to the problems identified in the assessment, we will adopt concrete measures to reinforce weak links and solve these problems. Third, we will work to build synergy. To implement the plan, we need to collaborate with all relevant departments and parties at both national and local levels. We will work with them and the military units to create a synergy for advancing the plan's implementation and ensure that all tasks are successfully completed. Thank you.  

Chen Wenjun:

Thanks to Mr. Pei and all the speakers. Thanks to friends from the media. Today's briefing is hereby concluded. See you.

Translated and edited by Zhu Bochen, Wang Qian, Liu Caiyi, Li Huiru, Yan Bin, Liu Sitong, Yuan Fang, Huang Shan, Xu Kailin, Wang Yanfang, Liu Qiang, 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. Li Qun, vice minister of culture and tourism and administrator of the National Cultural Heritage Administration (NCHA)

Mr. Jin Ruiguo, spokesperson of the NCHA and director general of the Department of Policies and Regulations of the NCHA

Mr. Deng Chao, director general of the Department of Cultural Relics and Historic Sites of the NCHA

Mr. Yan Yalin, director general of the Department of Archaeology of the NCHA

Mr. Liu Yang, director general of the Department of Museums and Social Relics of the NCHA 

Wen Dayan, director general of the Department of Communication and Cooperation of the NCHA 

Chairperson:

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

Date:

July 28, 2023

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 22nd press conference in the series "Embarking on the New Journey — A Government Perspective." We have invited Mr. Li Qun, vice minister of culture and tourism and administrator of the National Cultural Heritage Administration (NCHA), to brief you on strengthening heritage conservation to carry forward Chinese civilization. He will also be available to answer your questions. 

Also joining us today are Mr. Jin Ruiguo, spokesperson of the NCHA and director general of the Department of Policies and Regulations of the NCHA; Mr. Deng Chao, director general of the Department of Cultural Relics and Historic Sites of the NCHA; Mr. Yan Yalin, director general of the Department of Archaeology of the NCHA; Mr. Liu Yang, director general of the Department of Museums and Social Relics of the NCHA; and Mr. Wen Dayan, director general of the Department of Communication and Cooperation of the NCHA.

Now, I'll give the floor to Mr. Li Qun for a brief introduction.

Li Qun:

Thank you, chairperson. Hello, friends from the media! First, on behalf of the NCHA, I would like to express my heartfelt gratitude to all our media friends for your continued care, support and help for China's cultural heritage development. Today, my colleagues and I will share with you what we have done in strengthening heritage conservation to carry forward Chinese civilization.

Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has attached unprecedented importance to cultural heritage work. General Secretary Xi Jinping has given more than 160 important instructions, and presided over three group study sessions of the Political Bureau of the CPC Central Committee which focused on the latest archaeological discoveries in China and their significance; further advancing the project on tracing the origins of Chinese civilization; and putting resources related to the Party's heritage to great use and sustaining the Party's revolutionary legacy. Since the beginning of this year, the general secretary has participated in a meeting on cultural inheritance and development, and delivered an important speech; visited the Sanxingdui Museum, the Pingjiang Historic and Cultural Block, and the Yuncheng Museum; and sent congratulatory letters to the General Assembly of the Alliance for Cultural Heritage in Asia, the first Forum on Building up China's Cultural Strength, the third Dialogue on Exchanges and Mutual Learning among Civilizations and the first World Conference of Sinologists.

The NCHA prioritizes the study, promotion, and implementation of General Secretary Xi Jinping's important expositions and instructions on cultural heritage work, alongside the guiding principles of the 20th CPC National Congress. We have made solid efforts to promote the high-quality development of China's cultural heritage cause, mainly focusing on the following six aspects:

First, the NCHA has strengthened the protection of cultural relics and heritage. We have always safeguarded precious cultural heritage as we cherish our own lives. We advanced the revision of the Law on the Protection of Cultural Relics, and have made great progress in various aspects, such as cultural relic protection, the utilization of the value of cultural relics, retrieval and return of lost cultural relics, and combating cultural relic-related crimes. The NCHA has established the first batch of demonstration zones for the protection and utilization of revolutionary cultural relics, joined hands with relevant departments to introduce the three-year action plan for protecting covered bridges, and promoted the protection and utilization of historic sites like the Mogao Grottoes, the Wooden Pagoda in Yingxian County, and the Dazu Rock Carvings. The NCHA has been actively promoting and preparing for the fourth national census of cultural relics and the development of China's national tourism routes themed on cultural heritage. The NCHA and other relevant departments have jointly issued the construction and protection plan for the Yellow River National Culture Park, significantly strengthening the protection and management of over 300,000 immovable cultural relics in nine provincial regions along the Yellow River. This has further improved the level of protection and inheritance of cultural relics and heritage along the Yellow River. The NCHA has maintained a strong stance on cracking down on cultural relic-related crimes. Since launching another round of special operations to prevent and crack down on cultural relic-related crimes in October last year, we have solved more than 700 cases, arrested over 1,700 criminal suspects, and recovered over 110,000 cultural relics. The NCHA has conducted special inspections and rectification actions to address major risks and hidden hazards in the cultural relic sector, and prevented over 16,000 fire risks and potential accidents.

Second, the NCHA has deepened archaeological research on cultural relics. We strive to achieve a comprehensive framework, broad perspectives, and significant development for Chinese archaeology in the new era. The NCHA has continued to advance the project on tracing the origins of Chinese civilization, and 18 major initiatives under the Archaeology China program, including the study on Xia dynasty (2070 -1600 B.C.) culture. We've also launched 268 proactive archaeological projects and held a special exhibition on the origins and early development of Chinese civilization, continually promoting in-depth research into the history of Chinese civilization. The successful overall salvage of the Yangtze River Estuary No. 2 Ancient Vessel and the relocation of the ship into the dock in its entirety adopts the world's most advanced technology which uses arc beams for non-contact migration of cultural relics. This showcased China's innovative capabilities in cultural heritage protection science and technology. China has made significant breakthroughs in deep-sea archaeology. We discovered large ancient sunken ships in waters of the South China Sea and established a permanent underwater surveying base point in the southwest corner of the shipwreck site, marking a new stage in underwater archaeology. The fourth batch of national archaeological site parks has been announced, bringing the total number of such parks in China to 55. We've implemented the important system of "archaeological research before transfer of land for major urban construction" in 23 provincial regions. Archaeological work has been carried out in advance and steadily during the development of initiatives such as Beijing's sub-center, the Xiong'an New Area and new urbanization projects. The archaeological efforts at the Luxian ancient city site and the Shuomen ancient port ruins site have become new models for cultural heritage protection in urban and rural construction.

Third, the NCHA has promoted the popularity and influence of cultural relics. Enjoying exhibitions at museums has become a new lifestyle activity for people. Especially, there is a significant increase in public demand for museums during summer holidays and other holidays and festivals. The NCHA has prioritized efforts to develop museums so as to educate the public. China is now home to 6,565 museums, with over 90% offering free admission. The NCHA also carried out a national campaign to promote China's top ten museum exhibitions as well as themed exhibitions that promote fine traditional culture and socialist core values. The Alliance for Cultural Heritage in Asia was established, and the Xi'an Declaration was published to promote cultural heritage protection in Asia. The NCHA has improved the system for authenticating cultural relics and strengthened the regulation of cultural relics trade. Efforts have also been made to explore the possibility of expanding the range of tax preferences for imported cultural relics. The NCHA organized a series of events to celebrate International Museum Day and China's Cultural and Natural Heritage Day, among others. In addition, excellent cases of the high-quality development of cultural relics-related work were selected and promoted. The NCHA cooperated with the China Media Group on producing documentaries and worked with China's cyberspace regulator to launch themed activities online. The "Civilization in Archaeology," a digital art exhibition exploring the origins of Chinese civilization, was held at the headquarters of the United Nations. All these efforts have helped to increase the popularity of cultural relics.

Fourth, the NCHA has strengthened the protection and utilization of revolutionary cultural relics. We completed the project on the protection and use of revolutionary cultural relics. This project was carried out from 2018 to 2022. The list of second batch of revolutionary cultural relics was approved and announced by 31 provinces (autonomous regions, municipalities) and the Xinjiang Production and Construction Corps. China has more than 36,000 immovable revolutionary cultural relics and over one million pieces (sets) of movable ones. A number of important revolutionary sites, such as the National Mongolian and Tibetan School, were restored and opened to the public. A joint initiative themed around revolutionary cultural relics was launched to promote the moral, intellectual, and civic development of the public.

Fifth, the NCHA has strengthened technological innovation in cultural relics-related work. It has supported the quality development of cultural relics-related work with the help of scientific and technological innovation. It has formulated guidelines on strengthening scientific and technological innovation in cultural relics-related work and revised standardized measures for regulating cultural relics protection. A guideline on establishing standards for cultural heritage protection during the 14th Five-Year Plan period was released, delineating how to establish groups of standards in seven major areas. The NCHA has selected the eighth batch of key research bases. China now has 40 S&T bases for cultural relics. The NCHA has carried out 17 online cultural projects that are based on digital and information technology, including one that promotes Beijing's central axis. Efforts have also been made to protect the cultural relics at the Yungang Grottoes and promote studying the Yungang Grottoes.

Sixth, the NCHA has advanced the building of a professional team of talent. It has stepped up efforts to address insufficient staff for cultural heritage protection. With the strong support of the central and local authorities, we have increased staff allocation for cultural heritage protection and archaeological institutions at all levels and raised the allowance standard for field workers in such institutions. The NCHA upgraded the national vocational skills competition in the cultural relics sector to a first-class national event. It has also improved the structure of cultural relics protection related educational programs and increased the enrollment quota for doctoral students in archaeology by 57% in 13 universities that cultivate high-caliber talents the country needs. We have also made progress in setting up academic degrees in cultural relics and S&T of cultural relics. Efforts have also been made to prepare for the establishment of a university for cultural heritage. 

That's all for my opening remarks. Next, my colleagues and I are ready to answer your questions. Thank you.

Xing Huina:

Thank you, Mr. Li. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

CNR: 

We need to bring alive cultural relics to leverage their role in promoting historical and cultural values. What specific work has been done to spread the value of cultural relics and foster a source of strength that inspires all of society? Thank you.

Jin Ruiguo:

Thank you for your question. We follow a people-centered approach to explore the rich value of cultural relics. Continuous efforts have been made to promote Chinese cultural relics through all media forms. The NCHA has strived to build a comprehensive system to mobilize all parties to promote cultural relics through all types of publicity and all media forms, thus bringing more cultural relics and cultural heritage to life and providing the entire society with historical and cultural strength. We have carried out work in the following aspects: 

First, the NCHA made efforts in cultural relics related publicity. We have thoroughly implemented the guiding principle from the Party's 20th National Congress, as well as the new theories and instructions of General Secretary Xi Jinping on the work relating to cultural heritage. In a timely manner, we have released important information regarding the Archaeology China program, protection and use of revolutionary cultural relics, and the establishment of the Alliance for Cultural Heritage in Asia. We held nine press conferences and carried out more than 20 themed activities to promote the guidelines for cultural relics related work in the new era, the newly revised Regulations Concerning the Management and Protection of Underwater Cultural Relics, major progress in deep-sea archaeology, protection of grottoes and stone carvings, and the development of museum industry, etc. The NCHA has established its news center and opened an official video account that ranks among the top in terms of first-day visits, likes, and fan growth among central ministry video accounts in recent years. From January to June this year, the NCHA's official WeChat page has seen a year-on-year increase of 46% in visits, which demonstrates the public's interest in cultural heritage. We have worked with nearly 200 cultural institutions and museums nationwide to foster a new media matrix, which will soon be launched to tell the stories of the cultural relics.

Second, themed activities have been organized to expand the circle of friends for the inheritance of cultural heritage. We have leveraged the advantages of cultural heritage resources and media platforms and continued to launch fine works that interpret and spread the value of cultural relics. Together with the Cyberspace Administration of China, we have promoted 100 fine new media works themed on cultural relics, including the video series "Heritage Conservation in Action." We have jointly conducted an online themed promotion campaign, "The Splendid China: The Making of Zhongguo" organized 10 key state news websites and new media to carry out a series of themed promotion activities, and coordinated the cyberspace and heritage departments of 12 provinces to launch both online and offline publicity activities. We have carried out, along with China Daily, the all-media communication and presentation activity "Common Heritage, Shared Future," and planned and issued, together with the People's Bank of China, a set of commemorative gold and silver coins featuring five of China's treasured artifacts. We have, for the first time, selected and promoted cases of high-quality development of cultural heritage, demonstrating the typical scenes of applying concepts of innovation, coordination, green development, openness, and sharing in heritage-related work. During International Museum Day and Cultural and Natural Heritage Day, more than 10,000 services involving exhibitions, education, publicity, and identification of cultural relics were launched at various local levels, further expanding the channels of interpreting and publicizing their value. 

Third, fine programs have made cultural heritage more accessible. We have co-produced with China Media Group a 10-episode mini-documentary series, "Xi Jinping's Cultural Story," which was collectively viewed more than 6.6 billion times on the internet. We have co-produced the series "Xun Gu Zhong Guo" ("Seeking Antiques in China"), with the episodes of "Story of the Ancient Shu Kingdom," "Story of the Ancient Dian Kingdom," and "Story of Jade" already aired, explaining the origin and early development of Chinese civilization. The global tour of the co-launched digital exhibition "Journey Through Civilizations" started at the United Nations Headquarters and has enjoyed a high reputation overseas. "Interpreting the 24 Traditional Chinese Solar Terms Through Cultural Heritage" and other cultural works that we have co-produced with Xinhua News Agency have been widely praised. In addition, documentaries of "Civilization Grows Here" and "China Before China" as well as other programs will be launched in the near future. Cultural heritage has stepped out of the "inner chambers," connected with audiences, traveled through time, and integrated into the present, motivating all of society to strengthen their historical consciousness and boost cultural self-confidence. Thank you.

Hong Kong Bauhinia Magazine:

Museums are important sites to protect and inherit human civilization. What are the developments of museums in China? How to better stimulate the vitality of museums and promote their innovative development while upholding fundamental principles? Thank you.

Liu Yang:

Thanks for your questions. Over the years, the NCHA has earnestly implemented a series of important museum-related remarks and instructions made by General Secretary Xi Jinping, intensified the reform efforts, optimized the systems and layouts, and improved service efficiency. As a result, a modern museum system featuring a great variety of museums, diverse themes, benefits for all, and equal access to such services has been basically established. China saw 322 museums newly registered last year, with the total number of such museums hitting 6,565. Despite the Covid-19 pandemic, we held 34,000 offline exhibitions and nearly 230,000 education sessions last year, receiving 578 million visits. At the same time, we launched nearly 10,000 exhibitions and more than 40,000 education sessions online, which received nearly 1 billion views on the internet and more than 1 million views on new media platforms. Museums are increasingly becoming an important part of people's better lives. Looking ahead, we will always work to stimulate vitality through reforms, lead developments with innovation, help museums innovate while upholding fundamental principles, and promote the improvement of their quality and efficiency so as to better meet people's ever-growing intellectual and cultural needs. Our efforts will be mainly taken from five respects.

First, we will innovate institutions and mechanisms. We will further improve the mechanism for the opening of museums and continue to push forward some key reform tasks regarding museums. At the same time, we will actively explore building joint certification, construction, and management mechanisms with industrial and university museums so as to bring more museums under the management scope and boost more dynamic development of museums.

Second, we will optimize systems and layouts. We will continue to promote the establishment of world-class museums with Chinese characteristics and key national-themed museums, support the distinctive development of museums at the level of provinces and important prefectures and municipalities, and initiate the pilot project to improve small and medium-sized museums. At the same time, we will intensify efforts to regulate and support non-state-owned museums and coordinate the development of diverse museums with varied attributes at various levels and across different places. 

Third, we will consolidate the development foundation. We will review the registration of first-class cultural relics in museum collections and cement the foundation of collections protection and management. We will promote the implementation of key projects to conserve and make use of cultural relics in museum collections to better protect them. We will advance the digitalization of museum collections and make basic information more transparent and accessible. 

Fourth, we will improve the efficiency of services. We will continue to promote the selection of "Top 10 National Museum Exhibitions" and the themed exhibitions on "Carrying Forward Fine Traditional Chinese Culture and Fostering Core Socialist Values," and organize celebrations of traditional festivals and anniversaries in museums so as to continuously provide more high-quality services. We will guide local museums to optimize the ticket reservation system based on their conditions and better regulate and guide the staff responsible for museum interpretation to improve the reception service.

Fifth, we will enhance communication and exchanges. We will strengthen cooperation with the media, produce and release a series of quality programs to tell stories about cultural relics well, and disseminate our history and culture. We will formulate documents on improving outbound exhibitions, strengthening overall planning and improving curation so as to continuously increase the international influence of the Chinese civilization. Thank you.

China Media Group:

The world's cultural and natural heritage is an important outcome of human civilization's progress and natural evolution and an important carrier to promote exchanges and mutual learning among different civilizations. China is one of the four major ancient civilizations in the world, with a vast territory, a long history, a profound culture, and rich natural landscapes. What major progress has been made in the bidding for and protection of world cultural heritage in China since the 20th CPC National Congress? Thank you.

Li Qun:

Thank you for your question. Since the 18th CPC National Congress, the NCHA has thoroughly implemented the important instructions of General Secretary Xi Jinping on the bidding for world cultural heritage. He required that we uphold three principles in the bidding process, that is, it should be conducive to highlighting the value of the Chinese civilization, history, and culture; manifesting the spiritual pursuit of the Chinese nation; and presenting a panoramic and true view of ancient and modern China to the world. In accordance with his requirements, we have comprehensively pushed forward the bidding efforts.

First, in terms of the bidding for world cultural heritage. Since the 18th CPC National Congress, we have successfully inscribed eight cultural sites on the UNESCO World Heritage List, including "Archaeological Ruins of Liangzhu City," "Kulangsu, a Historic International Settlement," and "Quanzhou: Emporium of the World in Song-Yuan China." The Liangzhu site has exemplified the 5,000-year history of the Chinese civilization. Kulangsu has demonstrated the history of cultural exchanges and integration between China and the rest of the world as well as the deep roots and strong foundation of the Chinese civilization. Quanzhou has witnessed the important role of China in maritime business activities in the ancient world. A few years ago, we successfully inscribed "Silk Roads: the Routes Network of Chang'an-Tianshan Corridor" on the list. It not only has demonstrated the history of exchanges and mutual learning between the Chinese civilization and other civilizations but also is an important measure to implement the Belt and Road Initiative. We have made significant achievements in inscribing elements on the World Heritage List in the past decade.

Second, in terms of the protection of world cultural heritage. The NCHA has urged and guided all localities across the country to earnestly fulfill their obligations under the World Heritage Convention and improve the protection and display. This year, the NCHA has organized national working conferences on the protection of the cultural relics of the Grand Canal and the Great Wall, systematically assigning recent tasks. We have organized all localities to start the renovation, display, and interpretation of a number of world cultural heritage sites, such as the Mogao Grottoes, the Great Wall, and the Grand Canal, strengthened monitoring and early-warning work at world heritage sites and explored to establish a system incorporating systematic protection, scientific management, and comprehensive display.

Third, in terms of international exchanges and cooperation concerning world cultural heritage. The NCHA has strengthened cooperation with countries including Indonesia and Malaysia, guided Hong Kong and other Chinese cities to join the City Alliance for Maritime Silk Road Heritage Conservation and World Heritage Nomination, and actively promoted the joint bidding of countries along the Maritime Silk Road. Last year, the NCHA and the Cultural Affairs Bureau of the Macao Special Administrative Region Government jointly held the Maritime Silk Road International Cultural Forum to promote cultural exchanges among countries along the route and increase the influence of the Maritime Silk Road bid. At the same time, the NCHA has also actively engaged in developing the international governance system and capacity of world cultural heritage and voiced China's opinions on major issues such as climate change and heritage protection as well as the revision of the Operational Guidelines for the Implementation of the World Heritage Convention, thereby upholding the cultural interests of our country.

In the next step, the NCHA will continue to do a good job in the bidding for world cultural heritage. This year, we will strive for the successful bidding of "Ancient Tea Plantations of Jingmai Mountain in Pu'er." The site is located in Pu'er city, Yunnan province, and now we are making all-out efforts in our preparations. We are also working with the Beijing Municipal Government in the bidding and protection of "The Central Axis of Beijing." We will also update the tentative list of world heritage in China, and sort out and cultivate potential elements by following General Secretary Xi Jinping's important instructions and meeting the selection criteria for world heritage sites. Through the update, we will go further to construct a system of Chinese civilization identifications that exemplify the Chinese civilization and the spirit of the Chinese nation and showcase both ancient and modern China. Thank you.

China Education Television:

We have noticed the media recently reported that climate change is having some impacts on the Mogao Grottoes in Dunhuang. Some media even quoted some people as saying that mountain floods, cave collapses, and humidity spikes are already taking place. My question is: Have the cultural relics protection authorities noticed the potential dangers that these problems might bring? Also, how can we respond effectively to these factors of climate change? Thank you.

Deng Chao:

Thank you for your question. We have observed the recent media reports. First, I assure you that the alleged phenomena of surging humidity, mountain torrents, and cave collapses, as reported by the media, do not exist in the Dunhuang Mogao Grottoes. The Dunhuang Mogao Grottoes are located in the arid regions of northwest China. The cultural relics there, made from special materials, are extremely sensitive to climate change. The Dunhuang Academy continues to monitor and study the climatic changes in the area where the Mogao Grottoes are located. Over 30 years of monitoring data indicate that the average annual precipitation in the area where the Mogao Grottoes are located is around 40 millimeters. The region predominantly experiences light to moderate rainfall, with only six instances of heavy and torrential rainfall. The regional climate is generally warm and dry. In recent decades, there have been no cave collapses.

Second, the preservation efforts of the cultural relics in the Dunhuang Mogao Grottoes have delivered remarkable results. Since the 18th CPC National Congress in 2012, the NCHA has approved and implemented 51 protective initiatives, such as the protection of the main body of the Mogao Grottoes, reinforcing the cliff body, and improving the environment. To date, the Dunhuang Academy has completed the comprehensive protection and repair of 86 caves. They have established a complete set of key technical systems for ancient murals protection, gravel rock cave cliffs reinforcement, comprehensive protection against wind and sand disasters, and grotto monitoring and early warning. We've also established the National Engineering Technology Research Center for the Protection of Ancient Murals and Earthen Sites. As for the specific climate change response measures, on the one hand, the issue of rainwater infiltrating the caves has been thoroughly resolved through the reinforcement of thin-roofed caves and the installation of cave doors. This mitigates the impact of external climate change on the micro-environment within the caves. On the other hand, through comprehensive monitoring, changes in cave temperature and humidity can be detected promptly, and dynamic operation management has been implemented to ensure that the micro-environment within the caves remains within the safety threshold in the long term. Simultaneously, we collaborated closely with the meteorological department to establish a robust storm and flood warning system and an emergency command platform for flash floods. This allows us early access to meteorological change data, predict adverse weather events effectively, and implement contingency plans and protective measures in a timely manner.

Next, we will continue to do a good job in the preservation of the Mogao Grottoes. We will guide the Dunhuang Academy in revising the Dunhuang Mogao Grottoes Protection Master Plan, implement the Medium- and long-term Work Plan for the Preservation of Murals and Colored Sculptures at the Mogao Grottoes, and concentrate on enhancing our comprehensive protection capabilities for the caves. We will carry out the third phase of the Mogao Grottoes flood control project to minimize the threat of floods to the safety of the Mogao Grottoes' cultural relics under extreme weather conditions. We will accelerate the construction of smart cave doors and improve our ability to control the micro-environment within the caves. The Mogao Grottoes serve as an example in this regard. We have implemented many measures to tackle climate change in the field of ancient ruins and cave temples. The NCHA, in collaboration with the Chongqing Municipal People's Government, will hold the first international forum on cave temple preservation in Dazu district, Chongqing, on August 19. The forum will center on the protection of cave temples in the face of climate change. We welcome our media friends to participate. Thank you all.

Beijing Radio Television Station:

General Secretary Xi Jinping stressed the integral role of archeology in understanding the rich and profound Chinese culture during his visit to the China National Archives of Publications and Culture and the Chinese Academy of History on June 2 this year. He underscored the significance of conducting research and offering interpretations concerning the origins of Chinese civilization through major programs such as the Comprehensive Research of Origin and Early Development of Chinese Civilization program and Archaeology China program. Could you provide an overview and discuss the value of the Archaeology China program? Thank you.

Yan Yalin:

Thank you for your question. The Archaeology China program is a significant archaeological research initiative established by the NCHA. Its purpose is to conduct comprehensive research with a focus on China's million-year-long human history, its 10,000-year cultural history, and over 5,000 years of civilization history. The program aims to continually deepen our understanding of the long history of the Chinese nation and Chinese civilization through consistent and systematic archaeological endeavors.

In 2018, we initiated three pilot projects to explore the civilization process in the Hetao Irrigation Area and the lower and middle reaches of the Yangtze River. Building on this previous work, in 2020, the NCHA issued Guidelines for the Application and Management of Major Programs within the Archaeology China Program (2020-2035). These guidelines systematically deploy research programs in five key areas and 11 key research directions, including the origins of early and modern humans; early societies; the onset of civilization and early states; the bronze civilizations of the Xia, Shang, and Zhou dynasties, and the early dynastic states; the forms and development of unified multi-ethnic states and settlements; and urban archaeology, underwater archaeology, and more. To date, we have established 18 major projects, such as Xia culture research and cave temple archaeology, and approved the implementation of 427 active archaeological projects. These projects involve 153 sites across 24 provinces, including autonomous regions and municipalities, throughout the country, with 110 archaeological teams from 93 archaeological institutions. Important discoveries have been made at sites such as Liangzhu in Zhejiang province, Shimao in Shaanxi province, Sanxingdui in Sichuan province, Erlitou in Henan province, Xiadacuo in the Tibet Autonomous Region, and Kyak Kuduk Beacon in the Xinjiang Uygur Autonomous Region, providing brand new physical evidence for China's history of civilization spanning more than 5,000 years.

Through the implementation of the Archaeology China program, several outcomes have been achieved: first, we have made progress and breakthroughs in major fields and key issues. Our research into the processes of regional civilization has been comprehensively advanced, strengthening weaker areas and obscure fields of archaeology. Second, we have promoted the development of archaeological capabilities and disciplines. Archaeology has closely cooperated with the natural sciences, the humanities, and the social sciences. Awareness of research topics and technology has significantly increased, and the breadth and depth of research have been continuously expanded. Third, we have strengthened the archaeological community. High-level scientific research platforms have been established through cooperation between central and local governments, schools and local governments, and provinces. Through collaborative research, many young and middle-aged scholars have emerged. Consequently, the professional and scientific capabilities of the archaeological workforce have been continually improved. Fourth, we have achieved significant results in educating the public about history. The Archaeology in China platform has published 75 important discoveries, enabling the public to promptly understand the latest archaeological discoveries and historical research results. These publications have received widespread attention and praise.

In the future, we will be committed to developing archaeology in a broader vision, aiming for a more expansive and broad development of Chinese archaeology. We will continue to implement the project on tracing the origins of Chinese civilization and the Archaeology China program, shaping a unique and distinctive Chinese archaeological style. We plan to delve deeply into and interpret the five defining characteristics of over 5,000 years of Chinese civilization, which is uninterrupted, innovative, unified, inclusive and peaceful, striving to make new and substantial contributions to the development of modern Chinese civilization. Please continue to pay attention to China's archaeological endeavors. Thank you.

China News Service:

As you mentioned earlier, the General Assembly of the Alliance for Cultural Heritage in Asia was held this year. Could you please brief us on the conference and detail its accomplishments? In addition, can you outline the further measures that the NCHA intends to implement in terms of international cultural heritage exchanges and cooperation? Thank you.

Li Qun:

Please allow Mr. Wen to answer these questions.

Wen Dayan:

Thank you for your questions. A total of 150 representatives from 21 Asian countries and three international cultural heritage organizations, including UNESCO, attended the General Assembly of the Alliance for Cultural Heritage in Asia. This attendance included 16 ministerial-level officials and ambassadors, and heads of three international organizations. The Alliance for Cultural Heritage in Asia was officially established, and the total number of member and observer countries grew from 10 at its inception to 18, with China elected as the first chair of the alliance. The conference released the Xi'an Declaration on Cultural Heritage Protection in Asia, launched the Asian Fund for Cultural Heritage Conservation, and established the Collaborative Research Center for Archaeology of the Silk Roads. The Alliance for Cultural Heritage in Asia is the first international organization in the field of cultural heritage to be established under China's leadership. It is the only specialized international organization in the cultural heritage field in the Asian region. From its initial design to implementation, the alliance embodies the core essence of the Global Civilization Initiative put forward by President Xi Jinping and the vital concept of cultural exchange and mutual learning between China and other civilizations.

Shortly after the general assembly, President Xi Jinping witnessed the signing of a government-to-government agreement between China and Kyrgyzstan. This agreement aims to prevent theft, looting, and the illegal import and export of cultural property, marking an important achievement in the cultural heritage field during the China-Central Asia Summit. Since the 20th CPC National Congress, particularly this year, we have actively implemented the Global Civilization Initiative. We've maintained deep cooperation with countries rich in cultural heritage and ancient civilizations, such as France, the United States, the United Kingdom, Italy, Greece, Egypt, Tunisia, Cyprus, Iran, Saudi Arabia, Uzbekistan, and South Africa. Our collaboration includes signing agreements, joint archaeology, world heritage, underwater archaeology, museum exchanges, personnel training, and prevention of illegal import and export of cultural relics, becoming a vivid facet of our major-country diplomacy with Chinese characteristics. We have fostered friendships through international platforms like UNESCO, BRICS, the Shanghai Cooperation Organization, and ASEAN, participated in the international governance of cultural heritage, and voiced China's perspectives. This year marks the 10th anniversary of President Xi Jinping's proposal of the Belt and Road Initiative. We have vigorously promoted people-to-people connectivity along the Belt and Road by protecting and restoring historical sites in countries such as Cambodia, Nepal, Myanmar and Uzbekistan. In the second half of this year, we will also hold an exhibition on cultural relics and archaeological cooperation along the Belt and Road.

Moving forward, the NCHA will continue to implement the guiding principles of President Xi Jinping's congratulatory letter to the General Assembly of the Alliance for Cultural Heritage in Asia and his significant speech delivered at the symposium on cultural inheritance and development. We will act on the Global Civilization Initiative, continue to add more substance to the Alliance for Cultural Heritage in Asia, enhance and improve the secretariat, and coordinate internal and external affairs. We will make good use of international platforms, fully harness the unique role of cultural heritage in bridging differences and uniting people, and adopt multiple measures to achieve the high-quality development of cultural heritage diplomacy. This approach will effectively extend the reach and appeal of Chinese civilization. We invite our media friends to continue to pay attention to and support our work. Thank you.

The Cover.cn:

In recent years, the popularity of museums has been on the rise, and it's difficult to make reservations for some museums. How do you view this phenomenon, and what are the proposed solutions? Thank you.

Liu Yang:

Thank you for your question. The issue you mentioned is one that the NCHA has also been paying close attention to. Indeed, in recent years, the "museum fever" has continued to heat up, and the public's enthusiasm for visiting museums is rising. This is especially the case during the winter and summer holidays and other holidays, when it can be difficult to book tickets to some museums.

Recently, we conducted a survey on this issue, selecting 45 large and medium-sized museums across the country, including national first-grade museums, provincial museums across 31 provinces, autonomous regions and municipalities directly under the central government, as well as some distinctive local museums. We found that the difficulty in booking mainly occurs at large, popular museums, which underscores the gap between the growing needs and the unbalanced and inadequate offerings of refined cultural products. At the same time, some ticket scalpers buy up and stockpile tickets, interfering with the normal operation and order.

In response, the NCHA acted promptly and undertook a series of measures. On July 14, we issued a notice on providing better museum services during holidays and many museums across the country have acted accordingly. A lot of museums extended opening hours and visiting capacity. The Palace Museum and Sichuan Museum have opened fast-booking and check-in channels for minors, the elderly, the disabled and other groups in special need, shortening queue times. In terms of rules-based management, many museums have introduced special guidelines to regulate third-party docents and prohibit commercial filming, improving the visitor experience. The National Museum of China recently teamed up with the Beijing public security authority to crack down on ticket scalpers who resell free tickets. In terms of publicity and information service, many museums release ticket information in a timely manner and update real-time visitor numbers in exhibition halls. Meanwhile, many museums have issued statements advising visitors to jointly resist "ticket agents" and other behaviors that disrupt the order of visits.

Here, I would also like to take this opportunity to express my heartfelt thanks to the hardworking frontline museum staff. Next, we will continue to strengthen efforts in the following aspects: First, we will expand service offerings to meet people's needs. We will promote museums that are less well-known yet worth visiting to provide the public with more choices. Museums will be guided to upgrade their services by launching more top-quality and diverse exhibitions and educational activities. Second, we will better cooperate with other departments to form a joint regulatory force. For example, we will move forward in cooperation with public security authorities. Together, we will devise specific measures to crack down on ticket scalpers to intensify regulation. Third, museums should innovate and improve booking services. They will be advised to do so by setting time slots and arranging flexible ticket releases, as well as upgrading reservation systems. With extended opening hours, increased visitor capacity and other measures, museums will be able to accommodate more visitors. At the same time, a blacklist system will be established to counter malicious ticket purchases, ticket stockpiling, and no-shows by increasing the costs for doing so. Finally, it is necessary to strengthen the qualification and certification for third-party docents, maintain the order of visits and optimize visitor experience. Thank you.

Science and Technology Daily:

The report to the 20th CPC National Congress proposed stepping up the protection of cultural relics and cultural heritage, and emphasized the protection and inheritance of historical culture in urban and rural development. What role have cultural relics played in historical culture protection and urban and rural development ? Thank you.

Deng Chao:

Thank you for your question. General Secretary Xi Jinping has emphasized that protecting our cultural relics is also part of the role the government should play, and said we should find a suitable way to effectively protect cultural relics and let their values be realized while promoting socioeconomic development. In recent years, the NCHA has made efforts in this regard, making our unique cultural heritage an integral part of the balanced urban and rural development. The work in this area can be summarized in the following aspects:

First, we have enhanced the protection of cultural relics in the process of urban and rural development by adapting laws and regulations. We have made substantive efforts in revising the Law on the Protection of Cultural Relics and increased requirements for the identification, original site protection and regional evaluation of ungraded immovable cultural relics. We have included immovable cultural relics protection into the planning of territorial space, rigorously protecting cultural relics and other historical and cultural heritage. We also curbed large-scale demolition and construction in urban and rural development, and prohibited pulling down authentic cultural heritage sites and then replacing them with fake ones. In our capital's core function areas, cultural relics are under protection with their values being gradually explored. And the cultural relics under protection of the central government have been well preserved.

Second, the protection and utilization of cultural relics have been linked to our new urbanization initiative. Backed by the central government's special funds for cultural relics, many renowned historical and cultural cities, such as Zhengding, Chengde, Pingyao and Qufu, have been preserved in a holistic way. We made efforts to protect and repair key cultural relic sites and historical and cultural blocks, and improved the overall environment of these places, to redefine their value and redraw the cultural context. Recently, we jointly issued the notice on providing better tourism routes with cultural relic themes, along with the Ministry of Culture and Tourism and the National Development and Reform Commission. Through this effort, we gave them a new lease of life in the new era while providing an opportunity to learn about the Chinese culture. We have issued guidelines on rational use of cultural relics, as well as advice and typical cases on opening cultural heritage buildings to visitors, encouraging cities like Beijing, Shanghai, Guangzhou and Suzhou to innovate and find better ways to hosting visitors at such facilities. Cultural relics and monuments have become important cultural landmarks and tourist destinations, with World Cultural Heritage Sites receiving more than 300 million visitors annually, and national archaeological site parks 34.6 million.

Third, we have emphasized the importance of protecting cultural relics in rural areas, thereby contributing to the rural revitalization strategy. We have researched on the theme of "Leveraging protection and utilization of cultural relics for rural revitalization," focusing on protecting cultural relics in rural areas and summarizing the experiences, actions, and typical cases in protecting and utilizing these relics. Together with the Ministry of Housing and Urban-Rural Development and other departments, we have released the sixth batch of the Traditional Chinese Villages list. Recently, we have also collaborated with the Ministry of Agriculture and Rural Affairs to protect fishery culture, guiding local governments to launch a series of projects for safeguarding and restoring cultural relics, including ancient rural residences, ancestral shrines, and historic stages. We have continued the action to "save old houses" and explored adaptive renovation of ancient architecture in Songjiang, Zhejiang province, and other places. In these endeavors, our intention has been to retain cultural roots and memories while also enhancing the quality of life for local people. We have guided Sichuan province to launch a pilot project on building rural grotto cultural parks to explore the coordinated path between the preservation of ancient grottoes and the enhancement of people's wellbeing. We have advanced the project of rural heritage hotels and built rural museums and archaeological site parks, expecting cultural relics in rural areas to play a key role in offering resources to support rural revitalization. Thank you!

Xing Huina:

Due to time constraints, the last question, please.

CNR News:

Having just discussed the advancements of the Archaeology China program, I would also like to inquire about the progress of the project on tracing the origins of Chinese civilization, which has now entered its fifth stage. Could you kindly provide an overview of the project's primary aims and relevant progress at this fifth stage? Thank you.

Li Qun:

Certainly, I will answer your question. The full title of the project on tracing the origins of Chinese civilization you just mentioned is the Comprehensive Study of the Origin and Early Development of Chinese Civilization. It was initiated in 2001 and has now entered its fifth stage. Centered on Chinese history, with particular emphasis on the origin of Chinese civilization, this project is a nationally supported undertaking that involves interdisciplinary collaboration. The project entered the fifth stage of research and commenced in December 2020. At this stage, the project continues to employ a multidisciplinary and collaborative approach. The current research team comprises over 500 researchers from 29 scientific research institutions nationwide. The project focuses on eight subjects and will be advanced as a whole. Over the past two years, progress has been made in the following five aspects.

First, new progress has been made in field archaeology concerning core sites. The earliest prehistoric urban site in the lower reach of the Yellow River region has been uncovered in the Jiaojia ruins in Shandong province. It dates back over 5,000 years. A large-scale building complex consisting of nine stylobates has been found at the No.1 site of the Niuheliang ruins. The "goddess temple" discovered earlier at the Niuheliang ruins also sits on a group of stylobates, marking an important archaeological discovery. Stone carved decorations on the corners of large buildings and tombs arranged in rows have been uncovered at the Shimao ruins in Shaanxi province. A method of land utilization that combines ponds and terraces has been discovered at the Shijiahe and Chenghe ruins in Hubei province. The Baodun ruins in Sichuan province demonstrate a settlement pattern where dwelling areas are surrounded by farmlands, dating back 4,500 years. The multi-grid layout of a capital city has been discovered at the Erlitou ruins in Henan province. Six sacrificial pits have been newly unearthed in the moats of the sacrificial area at the Sanxingdui ruins in Sichuan province, with over 12,000 artifacts uncovered. These discoveries collectively represent the new progress that has been made in the field of field archaeology.

Second, breakthroughs have been made in dating methods. The research team utilized the carbon-14 dating to determine the age of the white lime at the F6 site of the Shimao ruins in Shaanxi province, filling a gap in dating techniques for white lime remines in China. Major breakthroughs have also been made in dating techniques, and lime testing has proved that ancient people could also use lime. At the same time, researchers adopted Bayesian statistics and Kernel Density Estimation to comprehensively analyze dating results, providing fresh insights by exploring the critical time of major ruins. This has led to each historical period becoming more accurate and precise. In particular, a breakthrough has been made in dating the sacrificial pits of the Sanxingdui ruins. Most of the dating data range from 1131 B.C. to 1012 B.C. The ages for pits No.3, No.4, No.7, and No.9 are the same, generally placing them within the late Shang dynasty.

Third, the reconstruction of the ancient environment has been conducted in a refined way. Research on the ancient environment has further revealed the basic features of the prehistoric environment and the influence of major environmental events on the progress of civilization. A comprehensive study and analysis have been carried out concerning the impact of major environmental incidents on the development of regional culture. This includes the seismic activity dating back 5,300 years at the Shuanghuaishu ruins in Henan province, the large-scale floods in the lower reach of the Yangtze River dating from 4,600 to 4,300 years ago, the cold and dry climate around 4,200 years ago that led to the spread of rice-cultivating agriculture at a faster speed to the western region, and the increases in precipitation in the western region dating back 5,200, 3,800, and 2,800 years ago. This research has primarily revealed the role of the natural environment in influencing the origin and early development of Chinese civilization.

Fourth, research on the subsistence economy in ancient times has advanced. The research findings have shown that the specialized and large-scale development of the handicraft economy is a common feature in the formation of complex societies across all regions. First, the cross-regional integration of resources and technologies was important in forming complex societies across a wider region, from the Longshan culture to Erlitou culture. The Taosi ruins in Shanxi province, dating back 4,300 years, had primarily been able to access social resources across regions. People living at the Erlitou ruins, dating back to the Xia dynasty, had strengthened the control and management of jade, metals, and special pottery in different regions. Second, the Central Plains region demonstrated a distinct mixed agricultural production system, with foxtail millet as the major crop and broomcorn millet, soybeans, and rice as supplements. Third, the development of rice-cultivating agriculture was the major reason behind the formation of a complex society and regional differences in the middle and lower reaches of the Yangtze River. Different models of rice-cultivating agriculture also coexisted with early complex social structures.

Fifth, the research on archaeological theories has continued to advance. The research team of the project on tracing the origins of Chinese civilization – through archaeological excavation and in combination with the records of ancient histories – has developed theories on civilization and presented a comprehensive description of the formation process of Chinese civilization. The research group has analyzed the exchanges and interactions between Chinese and foreign civilizations from a global perspective and furthered research on important theories. These include the "regional systems and cultural types" model, the "Multi-Petaled Flower" model (which views the Central Plains as the center of the flower and cultural traditions in surrounding areas as layers of petals), and the "Chinese interaction sphere" model. This work has expanded the understanding of the development process of Chinese civilization's pluralistic and integrated pattern.

Next, we will further the research in the project on tracing the origins of Chinese civilization and utilize more archaeological findings to provide additional concrete evidence. This will support the five prominent attributes of Chinese civilization put forward by General Secretary Xi Jinping, namely, continuity, innovation, unity, inclusiveness, and peace. Thank you.

Xing Huina:

Today's briefing is hereby concluded. Thanks to all the speakers and friends from the media. Goodbye, everyone.

Translated and edited by Zhang Rui, Zhang Junmian, Cui Can, Liu Sitong, Xu Xiaoxuan, Wang Wei, Zhang Jiaqi, Li Xiao, Yan Bin, Liu Qiang, Liu Caiyi, Huang Shan, Xu Kailin, Li Huiru, 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

Speaker:

Mr. Huang Runqiu, minister of ecology and environment 

Chairperson:

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

Date:

July 27, 2023

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 21st briefing in the series "Embarking on the New Journey - A Government Perspective." Today, we have invited Mr. Huang Runqiu, minister of ecology and environment, to brief you on strengthening eco-environment protection for a Beautiful China, and to take your questions.

Now, I'll give the floor to Mr. Huang Runqiu for an introduction.

Huang Runqiu:

Thank you, Ms. Xing. Friends from the media, ladies and gentlemen, good morning. I'm very glad to meet you here. On behalf of the Ministry of Ecology and Environment (MEE), I like to begin every press conference by expressing gratitude to friends from the media and today is no exception. You have supported ecological conservation and eco-environment protection over the years. Thank you for your hard work. This morning, I'll brief you on strengthening eco-environment protection for a Beautiful China.  

Protecting the eco-environment will benefit generations to come. On July 17 and 18, after five years, the Central Committee of the Communist Party of China (CPC) held the National Conference on Ecological and Environmental Protection again in Beijing. General Secretary Xi Jinping attended the conference and delivered an important speech, demonstrating that the CPC Central Committee with Comrade Xi Jinping at its core has always paid high attention to eco-environment protection and ecological conservation. This conference is of great importance. It took place in the first year when we fully implemented the guiding principles of the 20th CPC National Congress and at a critical time as China embarked on a new journey to build itself into a modern socialist country. It can be said that it is a new important milestone in the field of ecological conservation.

The conference has explored new ways of developing Xi Jinping Thought on Ecological Civilization, provided well-conceived answers to a series of important theoretical and practical questions on ecological conservation on the new journey of the new era, and systematically outlined major tasks and strategic measures for comprehensively building a Beautiful China. It has again declared to the world China's firm determination to pursue a model of sound development featuring improved production, higher living standards and healthy ecosystems.  

General Secretary Xi Jinping's important speech at the conference represents a new interpretation and development of Xi Jinping Thought on Ecological Civilization, and serves as a program of action and sound guideline as the Party comprehensively advances the building of a Beautiful China on the new journey of the new era. The main contents of the speech can be summarized as four major transformations, five major relationships, six major tasks and one major requirement.  

The four major transformations fully sum up the remarkable ecological conservation achievements secured in the new era. Since the 18th CPC National Congress, significant transformations from remediation of major areas to systematic governance, from passively responding to ecological issues to taking proactive actions to address them, from a participant to a leader in global environmental governance, and from practical-exploration-based conservation to the one with theoretical guidance have been secured in ecological conservation. The achievements are impressive and have become a significant symbol of the historic achievements and changes the Party and the country have made in pursuit of its cause. These accomplishments have been made under the guidance of Xi Jinping Thought on Ecological Civilization and in turn, have enriched and improved the Thought, which has fully reflected the decisive significance of establishing Comrade Xi Jinping's core position on the CPC 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.

The five major relationships signify that the Party's understanding of the laws regarding ecological conservation has been further deepened and improved. A new stage and new situation call for the fulfilment of new tasks. In order to continue to advance ecological conservation, we must properly handle the relationships between high-quality development and high-level protection, between tackling key challenges and coordinated governance, between natural rehabilitation and artificial restoration, between external pressure and internal motivating power, and between the dual carbon reduction goals and our independent decisions. The five major relationships are both summaries of practical experience and theoretical generalizations, containing rich values and methodologies and full of profound philosophical thinking, as well as providing a powerful ideological tool for promoting the country's modernization featuring harmony between humanity and nature through the building of a Beautiful China. 

The six major tasks are comprehensive strategic deployments to conserve the ecology and build a Beautiful China. The next five years are critical to building a Beautiful China. We will go deep in a bid to prevent and control pollution, accelerate the green and low-carbon transformation of our development mode, make efforts to improve the diversity, stability and sustainability of the ecosystem, actively and steadily promote carbon emissions peaking and carbon neutrality, hold the security bottom line of building a Beautiful China, and improve the support system for building a Beautiful China. These six major tasks are significant strategic arrangements made to implement the major strategic deployments of the 20th CPC National Congress and aim to achieve the building of a Beautiful China by 2035 and related goals in the next five years.

The one major requirement is to uphold and strengthen the Party's overall leadership in the field of ecological conservation. The previous practices have shown that the Party's leadership is the fundamental guarantee for making greater progress in eco-environment protection and ecological conservation. Facing the new situations, issues and challenges regarding the ecological conservation on the new journey, we must continue to enhance the Party's overall leadership and firmly shoulder the political responsibility in this regard.

Friends from the media, as the country's economic and social progress has entered a phase of ever-accelerating green and low-carbon high-quality development, ecological conservation is still under multiple pressures and has a lot of difficulties to overcome. The eco-environment departments will take studying, publicizing and implementing the important speech of General Secretary Xi Jinping and the guiding principles of the conference as a major political task. We will further gain a deep understanding of the decisive significance of establishing Comrade Xi Jinping's core position on the CPC 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. We will also uphold Comrade Xi Jinping's core position on the CPC Central Committee and in the Party as a whole and uphold the Central Committee's authority and its centralized, unified leadership, firmly implement Xi Jinping Thought on Ecological Civilization, and open a new chapter in eco-environment protection on the new journey to build China into a great country and to achieve national rejuvenation.

That's all for my introduction. Thank you.

Xing Huina:

Thank you, Mr. Huang. The floor is now open to questions. Please identify the media organization you represent before asking questions.

People's Daily:

General Secretary Xi Jinping stressed the importance of properly handling several key relationships when continuing our efforts in ecological conservation at the National Conference on Ecological and Environmental Protection. The first is the relationship between high-quality development and high-level protection. Mr. Huang, how should we understand this relationship? What has the Ministry of Ecology and Environment done in this regard, and what will be done in the future? Thank you. 

Huang Runqiu:

Thank you for your questions. In my view, reconciling the relationship between development and protection in the ecological environment field is a difficult and permanent global issue. General Secretary Xi Jinping emphasized that development plans must be made on the basis of a harmonious coexistence between humanity and nature. High-level environmental protection should help China continuously create new driving forces and new strengths for development. High-quality development and high-level protection reinforce each other. Ecological protection should be integrated into implementing the new development philosophy, building a new development paradigm, and promoting high-quality development. First, high-level protection underpins high-quality development and is integral to high-quality development. Development that does not incorporate environmental protection does not align with the new development philosophy or high-quality development. Second, high-level protection can guarantee high-quality development, upholding the security bottom line through various measures, such as a more region-specific approach to environmental management and environmental impact assessment. Third, by synergizing the reduction of pollution and carbon emissions and improving environmental standards, high-level protection can press for the transformation and upgrading of industrial, energy and transportation structures, and thus boost high-quality development. Moreover, high-quality development through policy tools like increased fiscal investment, the development of green finance, and compensation mechanisms for ecological conservation can accelerate the construction of ecological protection programs and the development of environmental protection industries, thereby boosting high-level protection. 

In recent years, the Ministry of Ecology and Environment has made efforts in the following aspects to advance high-quality development and high-level protection. 

First, we have enhanced ecological pollution prevention at the source. We have advanced a region-specific approach to environmental management, establishing about 40,000 units for environmental management, thereby setting a bottom line for high-quality development. As we improve our services for environmental impact assessment for various projects to boost socio-economic development, we carry out strict management on eco-environmental access, holding the security bottom line of high-quality development. We improved the laws, regulations, and standards regarding the ecological and environmental protection, enhanced supervision and law enforcement, and maintained a tough stance on cracking down on projects with high energy consumption, high emissions, and low efficiency. By the end of 2022, China had eased excess capacity and closed down outdated production facilities equating to about 300 million metric tons of steel, 400 million metric tons of cement, and 150 million weight cases of plate glass.

Second, we have focused on synergizing the reduction of pollution and carbon emissions. We have made efforts to improve the integration of environmental quality enhancement and carbon emission reduction, adjusting industrial structures to reduce emissions. The number of coal-fired boilers and furnaces across the country has been reduced from around 500,000 to less than 100,000 currently. Consequently, coal consumption has been reduced by over 400 million metric tons. Coal for non-industrial sectors has been replaced with cleaner energy in the power supply to around 37 million households in north China's rural areas, saving more than 70 million metric tons of coal for non-industrial sectors. Coal-fired power plants with a total capacity of 1.03 billion kilowatts have achieved ultra-low emissions. Meanwhile, 680 million metric tons of steel production capacity is in the process of achieving or has already achieved ultra-low emissions. We have also removed over 30 million old and high-emission vehicles from the roads.

Third, we have launched major programs for ecological and environmental protection. We have intensified our efforts to enhance the construction of environmental infrastructure, established pilot projects focused on the eco-environment-oriented development (EOD) mode, and fostered environmental protection industries. Last year, the revenue of national environmental protection industries reached 2.22 trillion yuan, proving these industries to be a crucial component of the green economy. We also expedited the treatment of foul-smelling and polluted bodies of water in urban areas, restored urban water ecosystems, and eradicated such bodies of water in cities at or above the prefectural level. These improvements enhanced not only the ecological environment but also the quality of urban life, thereby helping us achieve high-quality development.

Fourth, we have fostered new pacesetters for green development. We have advanced the ecological and environmental protection for implementation of major regional development strategies, including the integrated development of the Beijing-Tianjin-Hebei region and the development of the Yangtze River Economic Belt. Efforts have been made to improve regional coordination and establish a joint control mechanism to ensure synchronized protection and control. We have promoted ecological progress through examples. For instance, we have designated 468 ecological civilization demonstration zones in six rounds and 187 innovation bases for practicing the principle that lush mountains and lucid waters are invaluable assets. We continue to encourage various regions to explore innovative approaches to green, low-carbon and high-quality development.

Going forward, we will further implement the guiding principles from important speeches by General Secretary Xi Jinping and effectively deal with the relationship between high-quality development and high-level protection. We will coordinate industrial structural adjustment, pollution control, environmental protection, and climate change mitigation. We will prioritize ecological conservation, advance green and low-carbon development, and promote the efficient and intensive use of resources, so as to support high-quality development with a high-quality ecological environment. Thank you.

21st Century Business Herald:

The report to the 20th CPC National Congress noted that the goal of building a Beautiful China will be largely accomplished by 2035. What good practices and experiences have been promoted across the country in advancing the building of a Beautiful China? What measures will be taken in this regard? Thank you. 

Huang Runqiu:

Thank you for your questions. "Beautiful China" was a buzz phrase in news reports about the 20th CPC National Congress. The phrase was first mentioned in the report to the 18th CPC National Congress, articulated as "working hard to build a beautiful country." The 19th CPC National Congress included the vision in a two-step strategic plan for building China into a great modern socialist country in all respects by the middle of this century. The 20th CPC National Congress further laid out that we will make notable progress in building a Beautiful China in the next five years, and largely accomplish the goal by 2035.

General Secretary Xi Jinping has attached great importance to the issue and stressed the need to build a Beautiful China with blue skies, green lands and clear waters on multiple occasions. He always discusses local practices for building a Beautiful China during his inspection tours. This includes related initiatives made by Hainan, Qinghai, Hebei, Hunan and Jiangsu provinces and Ningxia Hui autonomous region. At the National Conference on Ecological and Environmental Protection, General Secretary Xi launched an initiative to comprehensively promote the building of a Beautiful China and accelerate the modernization of harmonious coexistence between humanity and nature.

Following the arrangements of the CPC Central Committee, the MEE has resolutely taken on the political task of ecological and environmental protection and worked to continuously promote the building of a Beautiful China.

In terms of policy research and arrangement, the MEE has strengthened strategic planning and top-level design. We have continued to study the indicator system for building a Beautiful China. To achieve the goal of completing the building of a Beautiful China by 2035, the MEE has developed a set of phased strategic arrangements. This plan incorporates strategies to overcome difficulties during the 14th Five-Year Plan period (2021-2025), continuously consolidate achievements during the 15th Five-Year Plan period (2026-2030), and strive for comprehensive improvements during the 16th Five-Year Plan period (2031-2035).

In terms of promoting exemplary cases, the MEE highlights the importance of a beautiful natural environment. It adopts an approach that integrates a systemic eco-environmental solution, satisfying the people's needs for a beautiful eco-environment, and promoting the realization of the value of eco-products. The MEE works to protect beautiful rivers and lakes with clear waters, green shores and abundant bio-diversity resources, as well as beautiful bays featuring a clean environment, rich bio-diversity resources, and harmonious coexistence between humanity and nature, and promotes successful experiences, practices, and exemplary cases in this regard. Since last year, the MEE has identified and showcased 18 such rivers and lakes, as well as eight bays, as exemplary cases. For example, the Maozhou River in Shenzhen has turned from a heavily polluted river into one with clear waters, a white beach, and abundant bio-diversity resources. The ecological corridor along the river is now filled with tourists. In this sense, such transformations have recreated a beautiful natural environment and garnered public support.

Regarding local practices, the MEE has issued guidelines on promoting the building of a Beautiful China. Provinces like Zhejiang, Fujian, Shandong, Guangdong, Jiangsu, Sichuan and Hebei have all made efforts to explore models to achieve this goal. For example, Fujian proposed a five-layered system that focuses on creating beautiful urban environments, rural areas, rivers and lakes, bays and countryside. Sichuan emphasized both the spatial and cultural aspects of this initiative. Cities like Hangzhou, Shenzhen and Qingdao have all set more ambitious requirements and targets for creating beautiful urban environments.

The next five years will be crucial for building a Beautiful China. The MEE will strive to ensure clear skies and restore the beautiful environment of lakes, rivers, bays, and mountains. It will expedite efforts to establish pioneering areas for the initiative and create beautiful provinces, cities, and countryside. The MEE will act according to local conditions and gradually implement the initiative across the country to jointly build a Beautiful China with shared benefits, and embark on a new journey in this endeavor. Thank you.

CCTV:

Mr. Huang mentioned that since the 18th CPC National Congress, China's role in global environmental governance has shifted from participation to leadership. Can you provide us with more information on this topic? Thank you.

Huang Runqiu:

Thank you for your question. I'm glad to give you additional information about China's transformation from participation to leadership in global environmental governance.

The Earth is the only home where we humans can survive. General Secretary Xi Jinping pointed out, "We only have one Earth. Protecting the ecological environment and pushing sustainable development are our joint obligations." Since the 18th CPC National Congress, China has paid close attention to the trend of the times with a global perspective. It has fulfilled its responsibilities as a major country and achieved the transformation from participation to leadership in global environmental governance. From my perspective, China has made the following achievements.

First, China has been deeply engaged in global climate change governance. President Xi Jinping has constantly expounded China's proposition on global climate change governance on major international occasions. This has injected strong momentum into global efforts to tackle climate change. China upholds multilateralism and the principle of equal, common, but differentiated responsibilities and respective capabilities. It has been working to ensure the formulation, signing, enforcement, and implementation of the Paris Agreement and has become a crucial force in guiding global climate actions. China also announced the target of reaching peak carbon emissions by 2030 and achieving carbon neutrality by 2060. It also pledged to stop building new coal-fired power projects overseas and initiated and steadily developed the world's largest carbon market. These efforts have showcased China's dedication as a responsible major country.

Second, China has taken the lead in global biodiversity governance. As the host country, China successfully held the 15th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP15). It also facilitated the adoption of the Kunming-Montreal Global Biodiversity Framework. This historic document is not only ambitious but also practical and balanced. The move has opened a new chapter in global biodiversity governance, widely recognized by the international community. As one of the first countries to sign and ratify the Convention on Biological Diversity, China has achieved great progress in biodiversity conservation, quite better than the global average. About 18% of China's total land territory is designated as nature reserves, and over 30% is marked as ecological protection "red line" zones. The country has seen a steady increase in wild populations of more than 300 rare and endangered wild animals and plants. China also took the lead and allocated 1.5 billion yuan to establish the Kunming Biodiversity Fund in a bid to support developing countries in their efforts to protect biodiversity.

Third, we have promoted global green and low-carbon development. In recent years, China has vigorously promoted the advancement of renewable energy. The total installed capacity of renewable energy power generation has exceeded 1.3 billion kilowatts, surpassing coal power. The installed capacities of hydropower, wind power, solar power, and nuclear power under construction rank as the largest in the world. The production and sales of new energy vehicles have topped global rankings for eight consecutive years, with a fleet of 16.2 million vehicles. Over half of the world's new energy vehicles are driven in China. China supplies 50% of the world's wind power equipment and 80% of photovoltaic component equipment. It is precisely due to the technological advancements and widespread application of renewable energies such as wind and photovoltaic power in China that the utilization cost of renewable energy has significantly decreased worldwide. In 2021, the cost of solar photovoltaic installation was approximately 82% lower compared to 2010, and the cost of wind power installation had decreased by 35% to 40%. This has not only propelled China's green and low-carbon development but also contributed significantly to global emissions reduction.

Fourth, we have been jointly building the Green Belt and Road. We have signed cooperation agreements with over 30 countries and international organizations along the Belt and Road and launched the Belt and Road Green Development Partnership Initiative with 31 countries. We spearheaded the establishment of the Belt and Road International Green Development Alliance, which now boasts more than 150 cooperation partners from 43 countries. We've developed the Belt and Road Ecological and Environmental Big Data Service Platform, implemented the Green Silk Road Envoy Program, and trained over 3,000 environmental management personnel, experts, and scholars from over 120 countries. We have engaged in South-South cooperation on climate change response along the Belt and Road and inked cooperation agreements with 39 partner countries. We have assisted them in enhancing their capabilities to address climate change through the provision of meteorological satellites and photovoltaic power systems.

Fifth, we have strengthened environmental management for overseas projects. We have published guidelines for ecological and environmental protection in foreign investment and cooperation initiatives, thereby setting explicit environmental protection requirements for project execution. Chinese enterprises have embraced advanced environmental protection philosophies in the process of undertaking overseas projects. For instance, during the construction of the container terminal project in Ghana, a Tortoise Breeding Center was established, resulting in the hatching and release of more than 10,000 baby sea turtles. In the course of the China-Laos railway construction, tunnels were extended, and roads were replaced with bridges several times to safeguard the habitat of the local elephant population.

Next, we will continue to uphold the concept of a community with a shared future for mankind, and actualize the Global Development Initiative, Global Security Initiative, and the Global Civilization Initiative. We will actively engage in global environmental governance, diligently fulfill international conventions, and make larger contributions to fostering sustainable development for humanity and constructing a clean and beautiful world. Thank you.

Cover News:

Hello Mr. Huang, we have noticed that PM2.5 concentration increased by 6.2% in the first half of this year. What is the reason for this increase? What measures will be taken in the next step to further protect the blue sky? Thank you.

Huang Runqiu:

Thank you for your questions. The issue of air quality frequently features in our press conferences, and I appreciate you bringing it up today. Since the 18th CPC National Congress, China has waged war on air pollution with unprecedented efforts, and we have achieved historic improvements in air quality. From 2013 to 2022, despite our GDP doubling, China's average PM2.5 concentration has decreased by 57%, and the number of heavy pollution days has reduced by 93%. This improvement has made China the country with the most rapid enhancement in air quality globally. In 2013, Beijing's average PM2.5 concentration was 89.5 micrograms per cubic meter, but it dropped to 30 micrograms per cubic meter last year. Moreover, the number of heavy pollution days decreased from 58 to just three, a feat recognized by the United Nations Environment Programme as the "Beijing miracle."

As you mentioned earlier, national air quality deteriorated in the first half of this year, with a 6.2% increase in PM2.5 concentration and a 3.2 percentage point decrease in the proportion of good air quality days compared to the same period last year. Through our analysis, we believe there are three main reasons for this deterioration:

First, the base for the same period last year was low. Over the past three years, due to factors such as COVID-19, China's atmospheric pollutant emissions have significantly decreased. In the first half of last year, the national PM2.5 concentration was 32 micrograms per cubic meter, the lowest in the same period in nearly eight years. Second, this year's meteorological conditions have been extremely unfavorable. Influenced by the periodic activity of the Asian winter monsoon, sand and dust weather processes have increased significantly throughout the country. There were 37 occurrences in the first half of the year, including 15 large-scale sand and dust weather events, the most in the same period in 15 years. These weather conditions have resulted in a 5.4 percentage point decrease in the proportion of good air quality days nationwide and a 1.4 percentage point increase in heavy pollution days. At the same time, it is predicted that China will experience a moderate to strong El Ni?o event, and extreme heat may become the new normal for several years to come. In June of this year, there were 5.2 more high-temperature days in northern China than usual, resulting in an exceptionally high number of days exceeding ozone standards. Third, emissions have increased. As economic activities gradually recover following COVID-19, the production of some high-energy-consuming and high-emission industries, such as metallurgy, building materials, and petrochemicals, has seen a year-on-year increase, leading to increased pollutant emissions. For instance, in the first half of this year, the output of 10 non-ferrous metals in the country increased by 8% year on year. However, I want to emphasize that even considering these factors, China's PM2.5 concentration has still decreased by 15% and the proportion of good air quality days has increased by 1.3 percentage points compared with the same period in 2019, before COVID-19. Air quality has clearly improved overall.

Next, we will thoroughly implement the guiding principles from the 20th CPC National Congress and the National Ecological and Environmental Protection Conference, adhere to precise, scientific, and law-based pollution control, and expedite the introduction of the "Action Plan for Continuous Improvement of Air Quality." Our efforts will be concentrated on the following three aspects:

First, we will stringently control the increase in emissions. We will adhere to the coordinated reduction of pollution and carbon emissions to boost efficiency, expedite the development of green and low-carbon industries, and decisively curb the blind development of "two high and one low" (high energy consumption, high emissions, and low efficiency) projects. We will hasten the low-carbon transformation of energy, vigorously develop new and clean energy sources, and advance the development of a green transportation system. For bulk commodities such as coal and ore, we will prioritize the use of railways and waterways for long-distance transportation.

Second, we will reduce existing emissions. We will accelerate the clean heating transition in northern regions, encourage ultra-low emissions transformation in key industries, comprehensively manage volatile organic compounds, and undertake major projects such as the shift from road to rail and from road to waterway. These initiatives aim to achieve significant emission reductions and offset the uncertainties triggered by extreme meteorological conditions.

Third, we will continue to intensify our efforts in supervision and support. Since the beginning of this year, we have dispatched more than 2,400 law enforcement personnel from ecological and environmental departments nationwide to key areas and cities struggling with air quality issues. We've organized them into two teams, "the expert group" and "the general group," and established online and offline platforms to oversee and assist efforts to improve air quality. Concentrating on large emitters and specialized tasks in key areas, we have conducted in-depth investigations and research, identifying a total of 32,000 gas-emitting problems. As a result, 26,000 issues have been rectified, effectively reducing pollutant emissions and enhancing environmental governance capabilities. Moving forward, we will continue to supervise and provide support in key areas, promoting the implementation of crucial tasks.

Media friends, the blue sky protection campaign cannot be accomplished in a single action, nor can it be realized solely through the efforts of ecological and environmental departments. It requires the cooperation of the entire society, and the combination of law-based governance, market forces, science and technology, and policies, particularly with heightened support from finance, taxes, and pricing. We will continue to make relentless efforts to control air pollution and protect the beautiful blue sky for the people. Thank you.

ThePaper.cn:

The National Conference on Ecological and Environmental Protection convened recently and proposed to further leverage the sword-wielding role of central government environmental inspection. How were the problems found during the first two rounds of inspections rectified? When is the third round expected to take place, and how will it be different from the previous two rounds? Thank you.

Huang Runqiu:

Thank you for your questions. As we all know, central government environmental inspection is a major institutional innovation and reform measure personally planned, deployed and promoted by General Secretary Xi Jinping. Since the commencement of the pilot project in Hebei province in 2015, two rounds of inspections had been completed by June 2022, covering 31 provinces, autonomous regions, municipalities and the Xinjiang Production and Construction Corps. We have also re-inspected 20 provinces and autonomous regions and inspected two departments under the State Council and six centrally-administered enterprises.

During the inspections, we adhered to a strict tone and problem-oriented approach, directly tackling the most challenging issues. We resolved a significant number of prominent eco-environmental issues and achieved remarkable results, earning "recognition from the central government, praise from the people, support from all social sectors, and the resolution of many problems." Of all the 3,294 tasks specified in the plan for the first round of supervision and rectification, over 97% have been completed by June 2023. Over 64% of the 2,164 tasks specified in the plan for the second round of supervision and rectification have been completed. The two rounds of inspections have handled 287,000 public complaints of problems related to environmental matters, with 286,000 of these complaints either fully resolved or having achieved progress toward resolution. We have made notable progress in the rectification of prominent problems. For example, the Qilian Mountains in Gansu province have curtailed illegal acts such as unauthorized mining and construction and are gradually regaining their pristine waters and lush mountains, transitioning from chaos to governance. The Helan Mountains in Ningxia Hui autonomous region have effectively curbed disorderly mining activities, with the scars left over by history gradually being healed. In Yunnan province, all illegal buildings in the Grade-I and II protection areas of Dianchi Lake in Changyao Mountain have been entirely demolished, restoring green to the earth.

Over the past few years, I have further understood the inspection work, which can be specified in the following aspects.

First, General Secretary Xi Jinping has attached great importance to our inspection work. Thanks to the high attention and kind care of General Secretary Xi Jinping, we have achieved what we have today. Regarding this aspect, General Secretary Xi Jinping has given more than 90 important instructions, making clear requirements for us to fearlessly conduct investigations, expose cases, make rectifications, and enforce the accountability system. The final decisions and encouragements made by General Secretary Xi Jinping, especially in critical moments, have always been the source of our confidence and the driving force to further promote inspection work. In his speech at the National Conference on Ecological and Environmental Protection, General Secretary Xi Jinping repeatedly required us to further leverage the sword-wielding role of central government environmental inspection.

Second, we have addressed issues in a targeted manner. We have adhered to a target-oriented and scientific approach, upheld the rule of law in supervision, and focused on the concerns of the central government, society, and the people. Over the past few years, we have concentrated on prominent problems emerging during the implementation of major regional strategies such as joint efforts in conservation and no large-scale development in the Yangtze River Economic Belt, the 10-year fishing ban in the Yangtze River, and setting up urban development, land use, human activities and industrial development based on the local water system and conditions in the Yellow River Basin. We have rigorously controlled the initiation of projects featuring high energy consumption, high pollution, and low quality. We have also paid attention to the implementation progress of projects, aiming to reduce excess capacity and address major problems, including significant ecological damage and environmental pollution. We've seized on the main contradictions and the main aspects of those contradictions, striving to accurately profile individuals or entities under supervision and gain a clear understanding of their situation. We will thoroughly research and investigate issues across the country and make a strong start in the second half of the rectification campaign.

Third, we have implemented an accountability mechanism. Major problems and typical cases identified by inspectors were handed over to local authorities in accordance with relevant regulations, discipline and law. After two rounds of inspections, we transferred 667 accountability-related cases and held 9,699 people accountable for their misconduct, including 1,335 departmental/bureau-level cadres and 4,195 cadres of section rank. This has effectively demonstrated the deterrent role of inspectors.

Fourth, we have focused on building our talent team. We have enhanced practical exercises and professional training for our personnel, helping them achieve political strength, great skills, impeccable conduct, and a strong sense of responsibility. Moreover, we aim to equip them with the capabilities to fully utilize new technologies and improve their ability to identify problems accurately and efficiently. For example, during the filming of the warning videos for the Yangtze River and the Yellow River, our personnel collaborated with CCTV staff, investigating and filming on-site for over seven months each year, covering more than 600,000 kilometers. They made full use of new technologies such as satellite remote sensing, UAV aerial photography, and infrared rays, ensuring our work's orderly and efficient development.

This year marks the first year of the third round of inspections. We will uphold the implementation of Xi Jinping Thought on Ecological Civilization as a major political task, step up efforts to promote the key tasks of promoting green, low-carbon, and high-quality development, and win the critical battle against pollution prevention and control. Additionally, we will map out the new round of inspections. We will wield the sharp sword of inspection, taking action against anyone who breaks the law. Furthermore, we will urge the inspected entities to effectively shoulder the major political responsibility for constructing a Beautiful China and contribute to accelerating the modernization of harmony between humanity and nature. Thank you!

CNR News:

We have observed that the MEE attaches great importance to the work of keeping waters clear, and has made great efforts in this regard. Recently, it launched a pilot project for water ecological assessment in the Yangtze River basin. How will the MEE coordinate the governance of water resources, water environment and water ecology in the future? Thank you.

Huang Runqiu:

Thank you for your question. You raised a question that we are thinking deeply about, which is how to further consolidate and enhance the effectiveness of keeping our waters clean. Human beings have always preferred to live close to water bodies, and civilizations have flourished near water bodies. Since the 18th CPC National Congress, the Party Central Committee with Comrade Xi Jinping at its core has emphasized the protection of the water ecological environment as a priority in promoting ecological progress. This has spurred transitional changes in China's water ecological environment protection. Through a series of major initiatives such as the investigation and rectification of sewage outfalls into seas and rivers, the remediation of black and malodorous water bodies in cities, and the eradication of inferior Class V surface water, our clean water defense campaign has achieved noteworthy results. I will not list them one by one, but just talk about the results. By last year, the proportion of Class I-III surface water sections nationwide had reached 87.9%, approaching the level of developed countries. The main channel of the Yangtze River has maintained Class II water quality for three consecutive years, and the main channel of the Yellow River has attained Class II water quality for the first time. Black and malodorous water bodies in built-up areas of cities at the prefecture level and above have been basically eliminated, and the level of drinking water safety has been improved.

Next, we will thoroughly implement the spirit of the 20th CPC National Congress and the National Conference on Ecological and Environmental Protection, and continue to win the battle of keeping waters clear. We will adhere to a three-pronged coordination of water resource protection, water environment management, and water ecological restoration. Our overall strategy is to concentrate on the protection and restoration of water ecology while consolidating and enhancing the quality of the water environment. In this respect, we will focus on three aspects of our work.

First, we will focus on consolidating and improving the quality of the water environment. We will direct our efforts towards addressing sewage outfalls into rivers, effectively resolving prominent problems such as illegal overflow and direct discharge of sewage along rivers, and efficiently controlling the discharge of pollutants into rivers. Last year, the General Office of the State Council issued guidelines on strengthening the supervision and management of sewage outfalls into rivers and seas. These guidelines call for a comprehensive approach to investigation, measurement, traceability, treatment, and management in this area, aiming to ensure comprehensive rectification of various pollution sources in urban and rural areas. Over the next few years, the investigation and rectification of sewage outfalls will continue to be a key feature of our work. We will endeavor to complete the rectification of sewage outfalls of the entire Yangtze River basin as well as those of the main channels and important tributaries of the Yellow River and other basins by the end of 2025. Second, we will further promote water pollution control in industrial parks within the Yangtze River Economic Belt and initiate a special campaign for water pollution control in industrial parks along the Yellow River.

Second, we will focus on water ecological protection and restoration. Biodiversity is an essential indicator for assessing the water ecological restoration of the Yangtze River. We will focus on the Yangtze River basin to promote the pilot project of water ecological assessment. This past June, we jointly issued the detailed rules for evaluating indicators of water ecology in the Yangtze River basin (trial version) in collaboration with relevant departments. The rules clearly stipulate that from 2022 to 2024, a pilot assessment will be carried out in 17 provinces within the Yangtze River basin to determine the assessment base and conduct the first evaluation in 2025. We will conduct water ecological assessments to guide local governments to fulfill their responsibilities for water ecological protection and restoration, and strive to improve the diversity, stability, and sustainability of the water ecosystem in the Yangtze River basin.

Third, we will focus on promoting the implementation of water ecological environment protection plans for key river basins. First, we will formulate a list of crucial tasks and measures for implementing the plans, strengthen unified supervision across river basins, improve the working mechanism for identifying and addressing major issues, and solidify the primary responsibilities of local governments. Second, we will vigorously advance the protection and construction of beautiful rivers and lakes. Following the Reference Index for the Protection and Construction of Beautiful Rivers and Lakes (Trial) that has been issued, we aim to transform over 2,700 water bodies into picturesque rivers and lakes with clear water and verdant banks by 2035. Third, we will strive to make solid progress in the fight against black and malodorous water bodies. We will consolidate and improve the effectiveness of the treatment of black and malodorous water bodies in cities at the prefecture level and above, and strengthen supervision of the 2,863 remediated black and malodorous water bodies to ensure long-term cleanliness. We will intensify the rectification of black and malodorous water bodies in county-level cities and aim to complete the rectification by 2025. Thank you.

Zhonghongwang.com:

Nuclear safety is the lifeline of nuclear power development. What measures has the MEE taken to ensure nuclear and radiation safety? What are the next steps? Thank you.

Huang Runqiu:

Thank you for your questions. Nuclear safety regulation is an important function of the MEE. Nuclear safety is the lifeline of the nuclear industry and constitutes a significant part of national security. China is a major player in the utilization of nuclear energy and nuclear technology. There are 77 nuclear power units in operation and under construction in the Chinese mainland, placing us second in the world. Over the years, China's nuclear and radiation safety measures have been well implemented, and there have been no incidents or accidents rated at or above Level 2 under the International Nuclear and Radiological Event Scale (INES). Last year, the World Association of Nuclear Operators conducted a comprehensive index ranking of 387 operating units worldwide, and there were 74 units scoring full marks, of which 37 units were located in the Chinese mainland. At this year's Conference of the Parties to the Convention on Nuclear Safety, all parties agreed that China has achieved and maintained a high level of nuclear safety with impressive performance.

China's good nuclear safety performance is the result of the considerable attention of the Party Central Committee. Nuclear safety has been integrated into the national security system, elevated to a national security strategy, and the development of the nuclear industry has always been based on safety. At the Nuclear Security Summit, President Xi Jinping proposed a rational, coordinated, and balanced nuclear safety strategy, placing equal emphasis on development and safety. At this year's National Conference on Ecological and Environmental Protection, General Secretary Xi Jinping once again set forth clear requirements for implementing a holistic approach to national security and taking robust measures to ensure nuclear and radiation safety. Thanks to years of efforts, we have developed a distinctly Chinese approach to nuclear safety.

First, an effective system of policies and regulations has been established. We have promulgated the Nuclear Safety Law, and published the white paper entitled "Nuclear Safety in China." We've formulated and implemented medium- and long-term plans for nuclear safety every five years to coordinate work. We have formed a set of regulations and standards that conform to both international standards and China's domestic conditions. These include two laws, seven administrative regulations, 26 departmental rules, 100 safety guidelines and over 1,000 technical standards, holding high and strict standards.

Second, strict and effective nuclear safety supervision has been carried out. We adhere to the principles of independence, transparency, the rule of law, rationality and effectiveness. We have established a three-in-one nuclear safety supervision system consisting of administrative organs, dispatched agencies, and technical support units. We have strictly reviewed and released licenses throughout the entire nuclear industry chain, awarding the world's first reactor licenses for models such as the AP1000 and Hualong One. We have ensured thorough supervision over the site selection, construction, operation, and decommissioning of nuclear facilities, implementing 24-hour on-site supervision for key nuclear facilities. We have adhered to a problem-oriented approach, promoted risk-oriented supervision, and maintained zero tolerance for illegal operations and dishonesty. At the end of last year, we completed a three-year campaign to address nuclear and radiation safety hazards, conducting 6,141 inspections, keeping detailed accounts of identified problems and urging item-by-item rectifications.

Third, we have stepped up our capability to provide basic safeguards for nuclear security. We have set up a national radiation and environment quality monitoring network, a supervisory monitoring system for key nuclear facilities, and an emergency monitoring network with 1,835 monitoring spots to promptly obtain and publish radioactive environmental data. The emergency response system for nuclear and radioactive accidents has been upgraded, with three quick response teams formed to handle nuclear accidents promptly and effectively. We have constructed a national nuclear safety regulatory technology research and development base and conducted key research initiatives. Moreover, The Longhe disposal site has been built to deal with low-level radioactive waste in China's nuclear power plants.

Next, we will strictly fulfill our responsibility for nuclear safety, comprehensively improve nuclear safety supervision, and strengthen scientific and technological innovation in nuclear safety, to ensure that nuclear safety is foolproof. 

Thank you.

Red Star News:

Hello Mr. Huang! My questions are: Control of new pollutants is an indispensable part of the battle against pollution. Why are they called "new pollutants?" Why is it difficult to control them? How do you plan to tackle this issue in the future? Thank you.

Huang Runqiu:

Thank you for your questions. You have raised a highly contemporary issue in the environmental field. The control of new pollutants is an important deployment made by the CPC Central Committee and the State Council. It is essential to public health and reflects the new requirements for expanding the depth and breadth of pollution prevention and control efforts.

The term "new pollutants" is a concept relative to the traditional pollutants we are familiar with, such as sulfur dioxide, nitrogen oxides, and PM2.5. New pollutants generally refer to environmentally persistent, bio-accumulative, and bio-toxic chemicals. The environmental and health risks of such substances are not easily detectable. Even if they enter the environment at a low dose, they may pose risks and hidden dangers to our physical health, environmental health, and environmental safety. 

In May last year, the General Office of the State Council issued the action plan for new pollutants control. The MEE, together with other relevant departments, has been actively promoting the implementation of new pollutants control and has achieved substantial results.

First, we've taken stock of the whole picture. We selected more than 4,000 types of chemical substances that are highly hazardous and commonly detected in the environment. We investigated their production and usage, and gradually gained an understanding of their distribution. Second, we've assessed environmental risks. Chemicals banned or restricted internationally but not in China have been included in our assessment plans as a priority, and will go through full lifecycle environmental risk assessments. Third, we strictly maintain a bottom line principle regarding risks. Working with relevant departments, we released the list of key new pollutants under control (2023 version), which outlines control measures, such as prohibitions, restrictions, and emission limitations, for 14 new pollutants that pose prominent environmental risks. For example, short-chain chlorinated paraffin - used to produce school bags, plastic running tracks, and children's toys - is set to be phased out by the end of this year. This year, we will also eliminate two categories of perfluoro chemicals that have drawn international attention and restrict the use of perfluorooctanoic acids, banning their use in waterproof and oil-proof clothing, baking paper, gastroscopy tubes, and so forth. Fourth, we have stepped up supervision and law enforcement. In conjunction with market authorities, we conducted enforcement inspections and investigated and dealt with 15 cases of illegal production of persistent organic pollutants used in building insulation last year. Fifth, we've elevated our guidance and support. Currently, 31 provinces and the Xinjiang Production and Construction Corps have issued provincial-level work plans for managing new pollutants.

At the same time, we realize that new pollutants, with a wide range of sources, involve numerous industries and long industrial chains, so it is difficult to develop technologies for their treatment, and interdepartmental and intersectoral collaboration are required for the control of such substances. Also, the control of new pollutants in China is still in its early phase, facing shortcomings such as a thin foundation, insufficient resource allocation, and serious capacity insufficiency.

Next, the MEE will work with relevant departments to fully implement General Secretary Xi Jinping's important instructions and the guiding principles from the National Conference on Ecological and Environmental Protection. On the one hand, we will enhance technological support, prioritize the treatment of new pollutants in our national basic research and sci-tech innovation agenda, and secure breakthroughs in core technologies in this field. On the other hand, we will effectively prevent the environmental and health risks of new pollutants. Exercising full life-cycle management of environmental risks, we will further modernize the system and capacity for new pollutants treatment. We will make every effort to maintain a safe eco-environment and protect public health. Thank you.

Xing Huina:

The last two questions, please.

Hong Kong Bauhinia Magazine:

Good morning, Mr. Huang. Tightening the supervision of ecological conservation is an important measure for ensuring national ecological security. So far, what has been done to strengthen the supervision of ecological conservation? Moreover, what measures will be taken in the future to improve the diversity, stability and sustainability of the ecosystem? Thank you.

Huang Runqiu:

Thank you for your questions. The natural ecosystem is like a living organism. At the National Conference on Ecological and Environmental Protection, General Secretary Xi Jinping stressed that efforts should be made to improve the diversity, stability, and sustainability of the ecosystem, to protect it in an intensified manner, and effectively strengthen the supervision of ecological conservation and restoration, so as to leave a beautiful ecological environment for future generations.

In recent years, the MEE has carried out its duties of guiding, coordinating, and supervising ecological conservation and restoration efforts. We have strengthened external supervision with unified policy planning and standards-setting, unified monitoring and evaluation, unified supervision and law enforcement, and unified inspection and accountability. The highlights of our work are found in the following three areas:

First, we have made extensive efforts to build an ecological conservation supervision system. A series of documents were issued, including the Opinions on Strengthening the Supervision of Ecological Conservation, the Plan for Ecological Conservation Supervision During the 14th Five-year Plan Period, the Provisional Measures for Ecological Environment Supervision of Nature Reserves, and the Measures for Ecological Environment Supervision of Ecological Conservation Red Lines (for Trial Implementation). A basic ecological conservation supervision system has been established. The system conducts monitoring and evaluation at five levels, including the whole nation, key regions, and ecological conservation red lines. The system ensures the enforcement of central government environmental inspections and adherence to the Guiding Catalogue for Integrated Administrative Law Enforcement in Ecological and Environmental Protection. It also supervises ecological conservation red lines and nature reserves. It also includes the "Green Shield" campaign, aiming to strengthen supervision of nature reserves. Furthermore, we are developing an oversight platform for ecological conservation red lines and building demonstration areas for ecological conservation.

Second, we have made great efforts to improve our capability to detect problems. By fully utilizing satellites, manned and unmanned planes, and both fixed and mobile monitoring systems on the ground, we have established a space-ground integrated network to monitor eco-quality. We have also conducted eco-quality supervision and monitoring, focusing on nature reserves, ecological conservation red lines, and key ecosystem service zones to improve our capability to preemptively identify problems. Up to now, we have identified more than 5,000 key problems in national nature reserves and 79 cases of ecological damage in five provinces piloting the supervision of ecological conservation red lines.

Third, we have made significant efforts to urge the rectification of these problems. On the one hand, through two rounds of central government environmental inspections, we released 87 representative cases of ecological damage that hinder sustainable development. We made a documentary series that revealed 226 instances of ecological damage along the Yangtze Economic Belt and in the Yellow River basin. All these efforts have pushed for the resolution of many acute ecological problems. For example, the illegally constructed villas at the northern foot of the Qinling Mountains were demolished, and public parks are now built on the site. Moreover, in the Karamaile Mountain Nature Reserve in northwest China's Xinjiang Uygur autonomous region, Przewalski's horse - a species once extinct in this area - has been reintroduced into its native habitat. On the other hand, the "Green Shield" campaign helped to solve 94.24% of the key problems found in national nature reserves. The number of critical issues, as well as areas intensely impacted by human activities, have decreased within nature reserves. The encouraging progress achieved in recent years essentially represents a reversal of previous encroachments and environmental damage within nature reserves.

Next, we will act upon the arrangements and requirements set forth by the National Conference on Eco-environmental Protection. We will strengthen unified regulation over owners, developers, and even regulators, working collaboratively to protect and restore ecosystems, thereby acting as guardians of the ecological environment. First, we aim to enhance the mechanism for coordinating ecological conservation oversight. This will involve bolstering communication and cooperation among departments and improving information-sharing and case-transferring mechanisms. Second, we will rigorously fulfill the responsibilities of ecological conservation. To accomplish this, we will further refine the regulatory system for protecting and restoring ecosystems and continue to give play to the role of central inspection on eco-environmental protection. Third, we will take stern measures to address activities that damage the environment, ensuring we root out pointless formalities in protecting and restoring ecosystems. Thank you!

Nanfang Metropolis Daily:

In recent years, the MEE has strengthened law enforcement efforts. Notably, since 2020, the MEE, together with the Supreme People's Procuratorate and the Ministry of Public Security, has launched a special campaign over four consecutive years to crack down on illegal and criminal activities that pose a threat to the environment, particularly those related to hazardous waste and the falsification of automatic monitoring data by key pollutant-discharging units. How effective has this special campaign been? Furthermore, what are the priority tasks moving forward? Thank you.

Huang Runqiu:

Thank you for your questions. The last questions indeed carry significant weight. Protecting the eco-environment with the strictest regulations and laws is the crucial principle of Xi Jinping Thought on Ecological Civilization. General Secretary Xi Jinping has emphasized that we must bolster systematic and holistic oversight, showing no leniency towards actions that damage our eco-environment. He insists that severe punishments should be levied for eco-environmental violations.

The MEE has thoroughly studied and put into practice Xi Jinping Thought on Ecological Civilization. To address the problems of the illegal transfer, dumping, utilization, and disposal of hazardous waste, as well as the frequent violations such as the forgery of automatic monitoring data by key pollutant-discharging units, we have collaborated with the Supreme People's Procuratorate and the Ministry of Public Security to launch a special campaign to crack down on these types of unlawful activities. Over the past four years, ecological and environmental authorities nationwide have investigated and addressed a total of 19,982 legal violations related to hazardous waste and automatic monitoring data, transferring 3,667 cases of suspected criminal activity to public security agencies.

Over the years, my colleagues and I have led teams to many provinces in China. We have conducted spot checks following the principles of no prior notice, not accepting reports, no escorts or receptions, and immediate field inspections at the primary level. We traveled directly to businesses to monitor pollution control, uncovering serious issues with fraudulent monitoring data at some enterprises. For instance, some enterprises tampered with or covered the sampling probe, used running water or clear water as samples, manipulated equipment computing parameters, installed hacking programs to alter data remotely, or even falsified data records. These activities of data forgery were usually conducted deliberately by pollutant-discharging enterprises that colluded with third-party service agencies. The means of forgery they adopted were diverse and highly professional, posing great challenges to investigations. These practices were very serious and had harmful consequences. They crossed the bottom line and violated criminal law. As such, they must be investigated and prosecuted severely and cracked down on resolutely without leniency.

After carrying out this special campaign for four consecutive years, we have made achievements in the following three aspects. 

First, we have maintained a tough stance and handled a number of prominent cases in accordance with the law. We have publicized 10 batches of 80 typical cases of violations concerning hazardous waste and fraudulent automatic monitoring data. For instance, in 2022, the ecology and environment authorities in Taizhou, Zhejiang province, resolved a case of environmental pollution. In this case, 49 people were implicated in the cross-provincial disposal of aluminum ash through online platforms. Six prefecture-level cities in Jiangsu, Shandong, and Zhejiang provinces were involved, with 8,226 tons of aluminum ash disposed of. Eighteen people received prison sentences, ranging from a minimum term of seven months to a maximum term of five years, forming an effective deterrent to environmental violations.

Second, we have taken joint actions with multiple departments and continued to intensify coordination between administrative law enforcement and criminal justice. We have gradually developed joint-action mechanisms such as joint meeting mechanisms, two-way consultation and reporting, and expert assistance in handling cases. We have pursued multi-dimensional cooperation in case investigation, forensic assessment, evidence preservation, and compulsory execution. To deal with difficult and complex major cases committed by organizations, we have assembled competent personnel to establish a joint special investigation team, thus creating synergy in addressing challenging cases. In January of this year, we collaborated with the Supreme People's Procuratorate and the Ministry of Public Security. We jointly supervised the handling of three major cases where third-party service agencies were involved in falsifying environmental impact assessment reports, acceptance monitoring, and motor vehicle inspections. We have investigated and prosecuted a batch of cases involving the forgery of environmental impact assessments, exemplified by the case of Shandong Jinhua Environmental Technology Company. This was the first criminal case involving an environmental impact assessment that was investigated, prosecuted, and sentenced, further intensifying the deterrent effect.

Third, we have seen that local governments assume responsibility for rectification and promote the standardized management of the industry. To address the salient problems identified during examinations of law enforcement, relevant provincial governments have given them great attention, established leading groups for rectification, and held supervisory meetings to arrange and advance rectification efforts, leading to a thorough resolution of significant issues. At the same time, we have gleaned lessons from past experiences and organized multiple departments to launch joint inspections, preventing the recurrence of similar problems. During the special campaign, local governments have traced the origins of and broadened their investigations into suspected illegal and criminal activities. This has effectively severed illegal interest chains, applied pressure on the industry to standardize whole-chain management, and gradually strengthened the industry's consensus on self-discipline.

Next, the MEE will continue to strengthen supervision and law enforcement and promote inter-departmental coordination. The MEE will maintain our firm stance, focusing on key regions and industries and rigorously clamping down on illegal activities that violate environmental protection laws. With the utmost determination and the most effective measures, we will advance the rectification of issues. We will ensure the goals and tasks of environmental protection are implemented and deliver results.

Thank you!

Xing Huina:

Today's briefing is hereby concluded. Thanks to Mr. Huang and our friends from the media. See you!

Translated and edited by Xu Xiaoxuan, Li Xiao, Liu Jianing, Zhang Junmian, Zhu Bochen, Wang Wei, Liu Caiyi, Ma Yujia, Qin Qi, Yang Xi, Yan Bin, Yuan Fang, Liu Sitong, Liu Qiang, Xu Kailin, Huang Shan, Li Huiru, David Ball, Jay Birbeck, and Tom Arnsten. 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

Speaker:

Ms. Wang Chunying, deputy administrator and spokesperson of the State Administration of Foreign Exchange (SAFE)

Chairperson:

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

Date:

July 21, 2023

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Ms. Wang Chunying, deputy administrator and spokesperson of the State Administration of Foreign Exchange (SAFE). Ms. Wang will brief you on China's foreign exchange receipts and payment data in the first half of 2023 and take your questions.

Now, I will give the floor to Ms. Wang.

Wang Chunying:

Good morning. Welcome to today's press conference. I will start by introducing China's foreign exchange receipts and payment data in the first half of 2023 and then take your questions.

In the first half of 2023, the global economic recovery faced significant challenges amid a complex and difficult global financial market and geopolitical landscape. Under the strong leadership of the Central Committee of the Communist Party of China (CPC), China has focused on the primary task of pursing high-quality development, and has seen an upturn in the domestic economy. The country's foreign exchange market demonstrated resilience in several aspects. Notably, expectations of the RMB exchange rate remained stable; cross-border capital flows sustained in a stable and orderly manner; the supply and demand of foreign exchange market remained balanced; and both cross-border receipts and payments by non-banking sectors as well as the foreign exchange settlement and sales by banks registered a surplus.

For cross-border receipts and payments by non-banking sectors, in U.S. dollar terms, banks registered $3.0259 trillion in foreign-related receipts and $2.9792 trillion in foreign-related payments for customers, which represented a surplus of $46.7 billion. Or in yuan terms, banks handled foreign-related receipts of 20.9746 trillion yuan and payments of 20.6526 trillion yuan for customers, recording a surplus of 322.1 billion yuan. According to data on foreign exchange settlement and sales by banks, in the first half of 2023, in U.S. dollar terms, banks settled $1.1325 trillion and sold $1.1307 trillion, representing a surplus of $1.8 billion. Or in yuan terms, banks settled 7.8482 trillion yuan and sold 7.8338 trillion yuan, recording a surplus of 14.3 trillion yuan.

In the first half of 2023, China's foreign exchange receipts and payments have demonstrated the following characteristics:

First, cross-border capital flows remained stable with net inflow momentum. In the first half of 2023, the total amount of cross-border receipts and payments by non-banking sectors exceeded $6 trillion, which was the second highest level in history during the same period. In terms of the balance, foreign-related receipts and payments have seen a surplus. Specifically, the surplus of foreign-related receipts and payments reached a seasonal high in January 2023. This can be attributed to factors such as enterprises rushing to collect foreign exchange before Spring Festival. During the February-May period, the amount of foreign-related receipts and payments remained basically the same. The size of surplus rebounded to $12 billion in June. Based on quarterly data, we have also seen a surplus for two consecutive quarters.

Second, foreign exchange settlement and sales by banks recorded a small surplus, and the supply and demand of the overseas foreign exchange market remained basically balanced. In the first half of the year, the overall foreign exchange settlement and sales by banks recorded a surplus, and the supply and demand of foreign exchange sustained a basic balance upon consideration of other factors in this regard. According to quarterly data, foreign exchange settlement and sales by banks recorded a small deficit in the first quarter and this turned into a surplus in the second quarter. Particularly in June, despite the increasingly complex external environment, foreign exchange settlement and sales by banks recorded a surplus of $8.2 billion, which was significantly higher than the monthly average in the previous months.

Third, the foreign exchange sales rate increased, and the foreign exchange financing by enterprises remained stable. In the first half of 2023, the sales rate, a measure of customers' willingness to buy foreign exchange, which is the ratio of foreign exchange purchased by customers from banks to foreign-related foreign exchange payments made by customers, stood at 69.2%, up 3 percentage points over the same period in 2022. In terms of foreign exchange financing, as of the end of June 2023, the outstanding domestic foreign exchange loans of market participants, such as Chinese enterprises, amounted to $274.9 billion, an increase of $3.7 billion from the end of 2022. The balance of foreign currency financing under international trade, such as import refinancing and forward letter of credit, stood at $67.4 billion, declining $9.4 billion from the end of 2022.

Fourth, the foreign exchange settlement ratio steadily increased, and the balance of enterprises' foreign exchange deposits declined. In the first half of 2023, the foreign exchange settlement ratio, a measure of customers' willingness to settle foreign exchange, which is the ratio of foreign exchange sold by customers to banks to customers' foreign-related foreign exchange receipts, reached 67.5%, up by 0.5 percentage point over the same period in 2022. As of the end of June 2023, domestic foreign exchange deposits held by Chinese enterprises and other market participants totaled $606.1 billion, declining $28 billion from the end of 2022. This suggests that the general willingness among market entities to hold foreign exchange remains stable.

Fifth, the volume of China's foreign exchange reserves remained basically stable. By the end of June 2023, China's foreign exchange reserves totaled $3.1930 trillion yuan, $65.3 billion more than the end of 2022, mainly due to the combined effects of currency translation, asset price changes and other factors.

Moving forward, SAFE will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. It will pursue progress while ensuring stability, uphold fundamental principles and break new ground. SAFE will pursue further reform and opening-up in the foreign exchange sector and prevent risks associated with external influences. It will ensure the security and circulation of foreign exchange reserves, while maintaining and increasing their value. It will also keep enhancing the capacity of foreign exchange management and leverage its enabling role in facilitating a new development paradigm and fostering high-quality development.

That concludes my introduction about the main statistics concerning China's foreign exchange receipts and payment data in the first half of 2023. Now, I'm happy to take questions from the media.

Xie Yingjun:

Everyone is welcome to pose questions. Before doing so, please let us know which news organization you represent.

CCTV:

Since the beginning of this year, the global economic recovery has seemed rather challenging. May I ask if China's current account has been impacted in any way? How do you view the future trend of China's current account? Thank you.

Wang Chunying:

Thank you for your questions. Since the beginning of this year, there have indeed been some changes in the global economy. These changes are now reflected in certain items of China's current account, primarily through a gradual return to normal levels. Overall, China's current account is still showing resilience, consistent with our prior evaluations. In the first quarter, the current account surplus amounted to $81.5 billion, a figure relatively high compared to the same period in history. The ratio of the current account surplus to GDP during the same period was 2%, which remains balanced and reasonable.

Preliminary statistics suggest that the current account surplus exceeded $50 billion in both April and May of this year. Given these figures, we anticipate that the current account surplus for the first half of the year will remain high. As for future trends, our assessment is that the reasonable surplus in China's current account will remain unchanged in the medium to long term.

Normally, the analysis of the current account focuses on two key items: goods and services. From the perspective of goods, new growth points for China's goods exports continue to surface, contributing to the stabilization of export volume and optimization of the export structure. In the first half of this year, external demand decreased, yet within this context, China's traditional export products, such as electromechanical and labor-intensive products, have remained stable. Also, exports of the frequently mentioned "three new products" (electric vehicles, lithium batteries and solar cells) have seen a fast year-on-year growth rate, reaching 51%. We also see that recently, the import of some intermediate goods for consumer electronics has demonstrated positive trends, and future exports of related finished products are expected to perform well. Therefore, from the perspective of major products, we have new growth points, the traditional base remains stable, and some imported intermediate goods show potential for future exports. Globally, China's export is generally better than that of most countries. From January to April, China's share of global exports still increased year on year. These are the main trends in goods trade.

In terms of service trade, due to COVID-related restrictions being lifted and various guarantees being restored, China's cross-border travel has shown signs of recovery, and related travel expenditures have also increased year on year but remain lower than pre-pandemic levels. The impact on the current account is controllable. 

I believe that this issue can also be evaluated from the perspective of the medium- to long-term determinants of the current account. The trend of the current account is determined by a country's manufacturing level and economic structure. From this viewpoint, we posit that China has a solid foundation to sustain a reasonable balance in its current account.

First, promoting high-quality development in manufacturing will continuously enhance the international competitiveness of Chinese products, providing a new thrust for China's foreign trade. Concurrently, the development of manufacturing and services will become integrated. In this process, the advancement and improvement of manufacturing will stimulate an increase in related productive service trade income.

Second, the economic structure serves as the long-term determinant of the current account. The current account mirrors the relationship between savings and investment. The fact that China sustains a surplus in the current account reflects that savings exceed investment. In recent years, China's economic structure has been continually adjusted, leading to a rise in the role of consumption within the national economy. However, China's savings rate remains relatively high on a global scale. Thus, from this perspective, our economic structure still contributes to maintaining a reasonable surplus in the current account.

So, in response to your questions, I would like to address it from the two aspects mentioned above. We analyze the prospects of the current account from the perspective of its composition. Also, we examine it based on the medium- to long-term determinants, such as manufacturing level and economic structure. China has a solid foundation for maintaining a reasonable surplus in its current account, and this pattern is expected to persist in the medium to long term.

That's my response to your questions. Thank you.

MNI:

I would like to ask whether the current significant spread between Chinese and U.S. interest rates is intensifying capital outflow pressure. Additionally, what kind of scenario might we expect in the Chinese bond market for capital investment in the second half of the year? Thank you!

Wang Chunying:

Regarding your questions, I provided a brief overview earlier. Now, I will explain it in more detail.

In the first quarter of this year, China's international balance of payments demonstrated a surplus in the current account and a deficit in the capital account, resulting in a self-balanced situation. The deficit in the capital account has continued its trend of stabilization since the second half of last year, and the total amount of various overseas investments has already recovered to net inflows. Looking at the first half of this year, cross-border capital flows have been relatively stable, and supply and demand in the foreign exchange market are essentially balanced. This answers your first question.

Your second question mentioned the future trend of capital investment in China's bond market. With regard to investment in bonds, despite the downturn in the global cross-border bond market since the beginning of this year, foreign investment in China's bond market has generally improved. Let's look at some data. If we don't take into account maturing bonds, foreign net purchases of domestic bonds amounted to nearly $79 billion in the first half of this year, reversing the trend of net sales last year. Especially in the second quarter, foreign net purchases of domestic bonds reached $58.5 billion, which was a relatively high quarterly level. If we take into account maturing bonds, foreign holdings of domestic bonds have increased for two consecutive months, while the net increase in foreign holdings of domestic bonds surpassed $11 billion in June. At the same time, in terms of holders, overseas central banks are still the major foreign-funded institutions investing in China's bond market. Overseas financial institutions have also played an active role in China's bond market. These factors fully show the value of Chinese bonds in investment and medium- and long-term asset allocation, which is demonstrated by current data.

Looking ahead, overseas investors will continue to steadily increase their holdings and allocation of RMB-denominated assets. This is because RMB-denominated assets still maintain advantages in investment diversification. The reason for that is China's monetary policy mainly serves the domestic economy and the trends in the RMB bond market differ from the bond markets in developed and emerging countries. Meanwhile, China is still the world's second largest bond market and has good liquidity, facilitating the diversified asset allocation of investors. This makes China's bond market attractive.

From the data, we can see that China's bond market has become an important option for global investment by overseas investors. As of the end of June, over 1,100 institutions from more than 60 countries had entered the interbank bond market. The level of transaction activity by overseas institutions has been rising and turnover has totaled over $2 trillion, a more than eight-fold increase since China significantly opened up its bond market in 2016. In addition, the scope of investment targets for foreign-funded institutions has been expanded. In addition to treasury bonds, policy financial bonds and interbank certificates of deposit, foreign-funded institutions have now gradually started investing in Chinese credit bonds such as short-term financing bonds and medium-term notes as well as asset backed securities and other investment targets.

In terms of policies, China has taken steady steps to advance the opening-up of the bond market, facilitating investment by overseas investors. It has launched the Bond Connect program and promoted the integration of Bond Connect with multiple channels, including QFII, RQFII and direct investment. The launch of the Swap Connect program this May is conducive to managing interest rate risks for overseas investors. Next, China will further optimize the opening-up of the bond market and continue to advance product and service innovation.

Overall, China will further open up the bond market in a gradual and controlled manner, striking a balance between efficiency and safety. This will leave room for stable and sustainable growth of foreign investment in China's bond market. That is all from me in response to your questions. Thank you.

Yicai:

According to the report to the 20th CPC National Congress, science and technology must be regarded as the primary productive force. What has SAFE done to support the financing of sci-tech innovation enterprises? What achievements have been made? What measures will be taken next? Thank you.

Wang Chunying:

Thank you. SAFE has fully implemented the decisions and plans of the CPC Central Committee and the State Council concerning the financial sector serving the real economy, further advanced the reform of foreign exchange management and adopted preferential policies for enterprises, effectively serving the scientific and technological innovation of enterprises, facilitating cross-border financing and lowering financing costs for enterprises. Most sci-tech enterprises, especially micro, small and medium enterprises (MSMEs), are still at the initial stage of their business ventures with relatively small or even negative net assets. The macro-prudential management of cross-border financing is based on the net assets of enterprises and allows enterprises to borrow money at their own discretion according to a certain coefficient. MSMEs, especially sci-tech ones, usually have small or even negative net assets and face difficulties in cross-border financing. In response, we have introduced a series of policies since 2018 and launched cross-border financing facilitation pilot programs in nine provinces and cities, facilitating high-tech enterprises to borrow foreign debt at their discretion up to a certain amount. The basic limit is $5 million, within which high-tech companies in pilot areas can receive foreign debt financing at their discretion.

In May 2022, we expanded the scope of pilot programs to include specialized and sophisticated enterprises that produce new and unique products and increased the number of pilot areas from nine provinces and cities to 17 provinces and cities, covering 80% of high-tech enterprises and specialized and sophisticated enterprises that produce new and unique products nationwide. At the same time, we raised the limit in the original nine provinces and cities to $10 million and set the limit to $5 million in the eight newly added pilot areas. So far, the average amount of foreign debt borrowed by eligible enterprises has reached $5.96 million, with an average interest rate of 2.64%, significantly lowering the financing costs of enterprises.

Next, SAFE will further expand the pilot programs on facilitating cross-border financing, bring more benefits to more enterprises, promote cross-border financing facilitation policies across the country, and raise the limits in all areas where early pilot programs have been launched to $10 million. That's our first consideration. Second, we will ramp up support for sci-tech SMEs and make cross-border financing facilitation policies available to support their innovative development. 

That is all from me in response to your questions. Thank you.

The Paper:

At present, the market believes that the U.S. Federal Reserve is likely to continue raising interest rates, but that it will soon come to an end. In this context, what are your expectations for the trend in China's foreign exchange market in the second half of this year?

Wang Chunying:

Your judgment is the same as ours. That is, the Federal Reserve is likely to continue raising interest rates but that this is coming to an end. Concerning the future trend in the foreign exchange market, to get a comprehensive overview, we should make observations and analysis based on both internal and external circumstances. That is also the characteristic of our foreign-related economy.

In terms of the economic fundamentals, China's economy will sustain its recovery momentum, providing stronger support for the foreign exchange market. Economic fundamentals have been playing a decisive role in influencing the trend of China's foreign exchange market. Since the beginning of this year, the Chinese economy has gradually emerged from the shadow of the pandemic and returned to normal. In the first half of this year, GDP increased by 5.5%. In the future, China will implement macro policies in a targeted and scientific manner, work hard to expand domestic demand, and promote unimpeded flow in the economy, so as to effectively upgrade the quality and appropriately expand the output of our economy. With the slowdown in global growth, the Chinese economy will play a greater role in supporting the foreign exchange market.

From the perspective of the foreign exchange market, the adjustment capacity and adaptability of China's foreign exchange market have significantly improved, effectively mitigating the risk of external shocks. The foreign exchange market has made substantial progress in recent years, making vast improvements and developments in transaction subjects, product transaction types, transaction models, and transaction scale. This progression aptly meets the diversified needs of the market. The flexibility of the RMB exchange rate has increased, and the market understanding of the two-way fluctuations of the RMB exchange rate, along with the concept of exchange rate risk neutrality, is improving. An increasing number of companies are able to better manage exchange rate risks. At the same time, in cross-border transactions, RMB payments now account for about 50%, reducing the risk of currency mismatch. All of these developments have further solidified the internal stability of China's foreign exchange market.

From an external standpoint, the Fed's tightening monetary policy is coming to an end, thereby weakening its spillover effect on the global economy. In recent years, the monetary policies of developed economies, led by the Fed, have been loosened and then tightened, which has induced substantial volatility in the international financial market and intensified adjustments within the international financial market. At present, inflation in the United States has declined from its previous peak, and the high interest rates may add to the rising risks of an economic recession. The market consensus is that the Fed's interest rate hikes are coming to an end, the momentum for the continued strengthening of the U.S. dollar has waned, and the external environment will marginally improve.

Over the years, the foreign exchange management department has successfully and steadily handled multiple rounds of external shocks. During this process, we have accumulated experience and continuously enriched and improved market regulation measures and methods. Therefore, we have the foundation, strength and confidence to maintain the stable operation of China's foreign exchange market. We will firmly guard against the risk of sharp fluctuations in the exchange rate and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

That's all. Thank you.

South China Morning Post:

As you pointed out, RMB assets are attractive to foreign capital, but the RMB exchange rate has significantly fluctuated recently. We note that macro-prudential adjustment parameters for cross-border financing were raised yesterday. Will China continue to take measures to stabilize confidence and prevent a sustained and excessive fall in the exchange rate? Thank you.

Wang Chunying:

In recent years, the People's Bank of China and SAFE have established and improved the macro-prudential management of cross-border financing. Yesterday, we raised the macro-prudential adjustment parameters. The market has offered various analyses and interpretations, many of which I believe are accurate. This time, our primary adjustment was raising the parameter from 1.25 to 1.5. This change has increased the upper limit of the risk-weighted balance of cross-border financing for domestic financial institutions and enterprises, directly expanding access for enterprises to obtain financing from overseas, including banks. As previously mentioned, corporate cross-border financing is based on net assets, while banks are based on core capital. After the coefficient's increase, the expansion of overseas financing capacity will increase the source of cross-border financing, expand capital inflows, and help boost domestic liquidity, especially foreign currency liquidity. This change will balance supply and demand in the foreign exchange market and play a role in stabilizing foreign exchange market expectations. This policy has been well-received by the market. I notice that many companies are very interested in it, and they are also happy to see the coefficient increase.

We've discussed many issues related to the exchange rate. Whether viewed from the perspective of cross-border capital flows, foreign exchange settlement and sales data, the balance of payments, or even the maturity of the foreign exchange market and our policies, the RMB exchange rate has the potential to remain basically stable at a reasonable and balanced level moving forward. In the past, we have managed multiple rounds of external shocks, accumulated experience and improved our regulatory tools and measures. Not long ago, the PBC stated at a press conference that tools are meant to be utilized. We will adhere to comprehensive policies, focus on stabilizing expectations, and adopt different measures according to actual conditions to provide the market with a stable environment and expectations. This approach will facilitate foreign-related economic entities conducting business and investment activities. Thank you.

Yicai:

The current U.S. dollar interest rate remains at a high level, and there is a certain interest rate gap between the interest rates of China and the U.S. Against this background, could you tell me about any changes in China's foreign debt in the first half of the year? Thank you.

Wang Chunying:

Impacted by the Fed's interest rate hike, last year's external debt data experienced a slight deleveraging. However, the overall trend has stabilized since the beginning of this year. At the end of the first quarter, the total external debt balance stood at $2.5 trillion, representing an increase of $38.2 billion or 1.6% over the figure at the end of the previous year. China's external debt is anticipated to remain relatively stable in the first half of the year.

Looking at the composition of foreign debt, there are active and passive types of foreign debt. Different types of foreign debt demonstrate various characteristics of change, but these changes are relatively stable and moderate.

Let me talk about active foreign debt first. In recent years, cross-border financing of domestic entities has remained rational, with increases and decreases in active foreign debt being more moderate. Broadly speaking, cross-border loans obtained by enterprises, trade financing such as usance letters of credit, direct investment financing between affiliated enterprises, and interbank lending are all active foreign debts in which domestic entities actively use overseas resources. When the Fed's monetary policy was lax in the initial stages, these active foreign debts did not significantly increase leverage, so the adjustment pressure was relatively minor when the policy was tightened later. The balance of active external debt decreased by 6% last year and remained essentially stable in the first half of this year. During the previous round of external debt deleveraging in 2015, the balance of active external debt fell by 29%. Specifically, among the active foreign debts this year, only cross-border loans obtained by enterprises have declined, while the balance of other active foreign debts has moderately rebounded or remained basically stable.

Examining passive external debt, since the beginning of this year, overseas entities have been more proactive in allocating RMB-denominated assets, and passive external debt has remained basically stable. Passive external debt refers to foreign investors investing in domestic bonds and non-residents depositing in domestic banks. Recently, foreign investors have increased their holdings of bonds for two consecutive months, and the situation is improving month by month. Furthermore, the balance of deposits of non-residents from overseas rebounded in the first half of the year, reversing the decline of last year. This overall stability of the passive external debt balance reflects the long-term investment value of RMB-denominated assets. 

Additionally, the structure of China's external debt has further improved, and the risk is generally manageable. In terms of the types of debt, in recent years, the growth of external debt has been driven by overseas investors investing in domestic bonds, most of which have had medium to long-term maturities. The share of external debt used for the purpose of financing, such as cross-border deposits and lending, fell to 53%. In terms of maturity, the proportion of medium and long-term external debt is rising, while short-term external debt is mainly being driven by cross-border financing and credit. These are the essential financial tools widely used by import and export companies to conduct international trade. The use of trade credit, whether it is received in advance or deferred, is a good indicator of the competitive edge of Chinese export companies' products, as well as import companies' choices for overseas suppliers. In terms of currency, the proportion of RMB-denominated external debt reached a historical high. At the end of 2022, the debt payment rate, debt rate, liability rate and the ratio of short-term external debt to foreign exchange reserves were all within the international safety zone. This means that China's foreign debt is safe. Also, China is a net creditor nation, and the synergy between external assets and liabilities is strong. 

Overall, the ratio of China's external debt to GDP has remained at 14% to 16% in recent years. Cross-border financing is generally in line with the development of the real economy, and China's external debt is expected to remain stable in the future. 

That is all from me in answer to your questions. Thank you.

Hong Kong Bauhinia Magazine:

Facing the fluctuations in the RMB exchange rate this year, what work has SAFE done to help companies manage their exchange rate risks? Do you have any suggestions? Thank you. 

Wang Chunying:

Thank you. SAFE sees serving companies in managing exchange rate risks as a long-term and fundamental task. We strive to carry out our work in the following aspects: 

First, SAFE has been working to promote the enterprises' exchange rate risk-neutral business philosophy through various channels and methods. Last year, we issued guidelines for enterprises to manage exchange rate risks, with the aim of helping enterprises establish effective exchange rate risk management mechanisms. Recently, SAFE has compiled a collection of past cases, which uses cases to popularize how to use derivative products to manage exchange rate risks in different scenarios. We have published last year's cases on our official website, and this year's cases will be published on the website once they are completed. In addition, we promoted the enterprises' exchange rate risk-neutral business philosophy through various channels such as the "china-forex" official WeChat account, and promoting the self-discipline mechanism. This has been one of our major works.

Second, SAFE has guided banks to establish a long-term mechanism for exchange rate risk management service. As banks provide services to customers directly, SAFE has guided banks to increase their promotion of RMB and foreign exchange derivatives, and encouraged banks to diversify their product types, to provide more convenient online channels for trading derivative products. Efforts have also been made to improve credit-granting activities and margin management related to derivative products, and enhance banks' ability to provide services at the grassroots level. In the first half of the year, SAFE conducted a special assessment of bank services for enterprises to manage exchange rate risks, aimed at encouraging and guiding banks to summarize and learn from past best practices and implement them in their business operations and service. In terms of serving customers to manage exchange rate risks, we hope that banks can adopt a more systematic approach and make institutional arrangements. This is the work we are doing with banks, which we will continue in the future. 

Third, the exchange rate hedging of micro, small, and medium-sized enterprises has always been one of our priorities. We have continuously improved the management of exchange rate risks and services for these companies. This work does require consistent effort. Since the beginning of this year, SAFE has continued to expand cooperation between government departments, banks, and enterprises and to improve the cost-sharing mechanism for hedging. We must first know if there are risks, then know how to use hedging tools, and finally have the ability to use them. In our survey, we found that micro, small, and medium-sized enterprises are more concerned about hedging costs, so we have done a lot to improve cost sharing. We have encouraged banks to reduce fees and concede interest, continued to guide the China Foreign Exchange Trade System to make these companies exempt from handling fees for hedging derivatives in the interbank foreign exchange market, and reduced their hedging costs through various means. At the same time, we have supported banks to use big data to facilitate the granting of credit for derivatives to these companies. 

You also asked about my suggestions just now. In general, no matter how the market changes, we all hope that enterprises can bear risk neutrality in mind, adopt a rational view towards exchange rate fluctuations, focus on their main business, and avoid engaging in speculation. These are basic principles that foreign-related companies should always follow. 

We have conducted a lot of research recently, and we are glad to see that the surveyed enterprises have developed a better understanding of risk neutrality and that they are capable of using derivative products and tools to manage exchange rate risks, strictly implementing hedging operations, and scientifically evaluating hedging effects. We hope to see more enterprises with such risk management capabilities and will adopt various measures together with banks and relevant government departments to help enterprises develop similar capabilities and conditions. Thank you.

Xie Yingjun:

Due to time constraints, there will be one last question.

Beijing Radio and Television Station:

Since the beginning of this year, the international financial market has continued to fluctuate, and the RMB exchange rate has generally weakened. How would you evaluate the situation of China's foreign exchange market in the first half of this year? Thank you.

Wang Chunying:

Since the beginning of this year, we have faced a complex and challenging external environment, yet China's foreign exchange market has demonstrated robust stability and resilience in terms of capital flow, market transactions, and market expectations. Here are some specific characteristics.

First, China's cross-border capital flow has remained relatively stable, and the supply and demand in the foreign exchange market have been basically balanced. In the first half of this year, foreign-related income and expenditure, as well as bank settlement and sales of foreign exchange, both registered a surplus. Notably, in the second quarter, the surplus figures were $12.5 billion and $17 billion, respectively. The main items of the balance of payments have significantly contributed to the surplus. Data shows that the surplus of trade in goods from January to May was basically unchanged from the same period last year, a high level in history. This continues to play a primary role in stabilizing cross-border capital inflow. At the same time, foreign capital flows have continued to exhibit favorable trends, turning from a net outflow in the second half of last year to a net inflow. In the first quarter, foreign capital net inflow logged $23.5 billion.

Second, transactions of foreign exchange market entities have been generally rational. In recent years, more and more market players have become adaptable to RMB exchange rate fluctuations, choosing appropriate times for foreign exchange settlements and purchases mainly according to international trade and investment practices. The numbers have borne it out. For example, in January and March this year, when the RMB appreciated, there was an increase in foreign exchange purchases, and the surplus of foreign exchange settlement and sales fell, even creating a deficit. However, the surplus in June was significantly higher than in previous months, as there were more foreign exchange settlements in June amid the depreciation of the yuan. The rational transactions of market entities have further stabilized the exchange rate.

Third, expectations for the RMB exchange rate have remained basically stable. To better understand expectations, we usually refer to the risk reversal index in the foreign exchange options market for the RMB. It reflects bearish and bullish outlooks for the RMB and transaction preferences in the market. A bearish outlook means expecting the depreciation of the RMB, so the increase of the index indicates higher expectations in the market that the RMB will depreciate, while a decline indicates higher sentiment expecting appreciation. Since the beginning of this year, the risk reversal index of the one-year options market has generally shown a downward trend and remained relatively low, indicating that the market has not developed a consistent and sustained expectation for the depreciation of the RMB. Recently, through surveys conducted among banks, companies, and other market players, we found they hold a rational and objective view that there is a basis for the RMB to remain stable over the long term.

On the whole, the foreign exchange market this year has remained stable and effectively adapted to the adjustments and changes in the external environment. It has demonstrated that China's foreign exchange market is maturing and more resilient. That's all I would like to say. Thank you.

Xie Yingjun:

Thanks for the introduction by Ms. Wang and the participation of our media friends. Today's briefing is now concluded. Goodbye!

Translated and edited by Wang Qian, Zhu Bochen, Liu Sitong, Liu Caiyi, Liu Qiang, Xu Kailin, Yan Bin, Huang Shan, Cui Can, Zhang Rui, Zhang Jiaqi, Li Huiru, David Ball, Jay Birbeck, and Tom Arnsten. 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

Mr. Zhu Bing, director general of the Department of Foreign Investment Administration of MOFCOM

Chairperson:

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

Date:

July 19, 2023

Shou Xiaoli:

Friends from the media, good afternoon. Welcome to this press conference 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 operations in the first half of 2023 and to take your questions. We also have with us 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 Mr. Zhu Bing, director general of the Department of Foreign Investment Administration of MOFCOM. Now, I'll give the floor to Ms. Guo for a brief introduction.

Guo Tingting:

Thank you. Friends from the media, good afternoon. I want to begin by expressing my gratitude for your continued interest in and support for our commerce work. It is a pleasure to have you all here today at this press conference. Now, let me give you a brief overview of our business operations in the first half of this year.

Since the beginning 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, MOFCOM has fully implemented the guiding principles of the 20th CPC National Congress, focused on promoting various tasks in the business field, and promoted the introduction of a series of policies and measures. In the first half of the year, business operations generally showed a trend of recovery, and high-quality business development made steady progress.

First, domestic consumption experienced a relatively swift recovery. We organized a series of initiatives under the 2023 "Year of Consumption Promotion" campaign, introducing policies and measures to stimulate household consumption and actively promote its expansion. As a result, the total retail sales of social consumer goods reached 22.8 trillion yuan, marking a year-on-year increase of 8.2%. Notably, contact-based consumption experienced a significant rebound, with catering income surging by 21.4%. Furthermore, sales of upgraded products flourished, including a 44.1% increase in the sales of new energy vehicles (NEVs), while sales of gold, silver and jewelry, and sports and entertainment products above designated size increased by 17.5% and 10.5%, respectively. Online shopping also surged, with online retail sales of physical goods growing by 10.8%, accounting for 26.6% of the total social retail sales.

Second, foreign trade maintained its growth momentum. Despite challenges such as weak international demand, we diligently implemented guidelines for stabilizing the scale and optimizing the structure of foreign trade. We have assisted enterprises in expanding markets and securing orders. In the first half of the year, imports and exports of goods totaled 20.1 trillion yuan, an increase of 2.1%, and exports increased by 3.7%, with a surplus of 2.8 trillion yuan, an increase of 17.4%. China's exports accounted for 14% of the international market in the first quarter, a rise of 0.3 percentage point from the previous year. Notably, our trade with emerging markets surpassed that with Europe and the United States, with a 5.4% increase in imports and exports to ASEAN, 7% increase to Latin America and 10.5% increase to Africa. Meanwhile, exports to the EU grew by 1.9%, while exports to the United States declined by 8.4%. Private enterprises displayed considerable resilience in their import and export activities, achieving an 8.9% increase, and their share rose by 3.3 percentage points to 52.7%. The "three new products" (electric vehicles, lithium batteries and solar cells) gained significant momentum, leading to a remarkable 61.6% increase in total exports, thus becoming a new driving force for trade growth. Additionally, there was a notable 6.3% increase in the export of mechanical and electrical products. Trade in services also experienced rapid growth, with imports and exports of services in the first five months reaching 2.6 trillion yuan, representing a 10.2% increase. Specifically, the import and export of travel services saw a remarkable surge of 67%.

Third, the absorption of foreign capital remained stable. Since the beginning of this year, we have dedicated ourselves to a series of "Year of Investment Promotion" activities to attract and utilize foreign capital more effectively. The number of newly established foreign-funded enterprises saw a rapid increase. In the first half of the year, 24,000 foreign-invested enterprises were established, marking a significant rise of 35.7%. The actual utilization of foreign capital decreased by 2.7%, reaching 703.65 billion yuan. Investment from developed countries continued to grow in China, with France, the United Kingdom, Japan and Germany witnessing increases of 173.3%, 135.3%, 53% and 14.2%, respectively. The quality of foreign investment also improved, particularly in high-tech industries, which experienced a 7.9% increase, accounting for 39.4% of the total foreign investment, rising by 3.9 percentage points. Foreign investment in high-tech manufacturing specifically rose by 28.8%. The role of leading opening-up areas in driving investment is evident, as the 21 pilot free trade zones attracted 129.66 billion yuan of foreign capital, representing an increase of 8.2%, and accounting for 18.4% of the country's total foreign investment.

Fourth, foreign investment and cooperation steadily progressed. We continued to enhance the quality and level of foreign investment and cooperation while further advancing the high-quality development of the joint construction of the Belt and Road Initiative (BRI). In the first half of the year, China's non-financial outbound direct investment totaled 431.61 billion yuan, registering an increase of 22.7%. We expanded cooperation in new areas like the green, digital and blue economies. During this period, we inked new memorandums of cooperation with four countries, including Brazil, and signed a total of 41 investment cooperation memorandums in related fields. We also saw improvements in the quality and efficiency of overseas contracted projects, achieving a 7% increase in turnover to 490.1 billion yuan, while the construction and operation of key projects steadily moved forward.

Fifth, bilateral and multilateral cooperation continues to deepen. We continue to expand the global network of high-standard free trade zones (FTZs) and the comprehensive implementation of the Regional Comprehensive Economic Partnership (RCEP). We held negotiations on version 3.0 of China-ASEAN Free Trade Area (FTA) and the ministerial meeting with signatories of the Digital Economy Partnership Agreement, and actively promoted our accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In the first half of the year, China signed a free trade agreement (FTA) with Ecuador, completed substantive negotiations on the FTA upgrade with Singapore, and put into effect the early achievements of FTZ negotiation with Nicaragua. We firmly upheld the multilateral trading system and actively participated in WTO reform. China has played a key role in concluding negotiations on the text of the Investment Facilitation for Development agreement, and completed the domestic ratification process of the Agreement on Fisheries Subsidies. A total of 14 Chinese proposals were made in fields such as trade and the environment. We continue to deepen bilateral economic and trade cooperation. A series of events were held, including the Fifth Meeting of the Council of China-France Entrepreneurs, the Sino-German Entrepreneurs Roundtable, China-Central Asia Economic and Trade Ministers' Meeting, China-Africa Economic and Trade Expo, and the China-Central and Eastern European Countries (CEEC) Expo.

Next, MOFCOM will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the decisions and plans made by the CPC Central Committee and the State Council. We will work to perform the important role of commerce development in three aspects. Efforts will be intensified to ensure stable performance in foreign trade and investment, as well as to promote consumption, providing strong support for sustaining China's economic recovery.

That concludes a brief overview of our work. Next, my colleagues and I are happy to answer your questions. Thank you.

Shou Xiaoli:

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

CCTV:

It was recently proposed at a State Council executive meeting that when conditions allow, policy measures should be introduced promptly and implemented in a timely manner, while also expanding the toolkit of policy options to maximize their combined effects. What policies will be introduced to ensure steady economic growth in the future? Thank you.

Guo Tingting:

Thank you for your question. This is indeed a question that is of concern to all sectors of society, and represents the common expectations of the market.

Since the beginning of this year, MOFCOM has fully implemented the decisions and plans of the CPC Central Committee and the State Council. As I just mentioned, we have taken multiple measures to stabilize foreign trade and investment and promote consumption, to fully unleash the effect of multiple policies. Our work in the first half of the year has mainly been in the following aspects: first, many policy measures were introduced and implemented. Some of them aim to stabilize the scale and improve the structure of foreign trade; some encourage the establishment of foreign-funded R&D centers; some are pilot measures for aligning with international rules and promoting institutional opening-up in qualified FTZs and ports; and some are policy documents for bolstering the consumption of home furnishings and green and smart home appliances and improving and diversifying home services. Second, we have launched several campaigns, including events for boosting consumption and attracting investment that will run through the year. In the consumption boosting events, we collaborated with local governments and industry associations to improve consumption expectations and the consumption environment. And with the help of the investment promotion events, we promoted both inbound and outbound investment. Third, a series of significant expos were held, including the third China International Consumer Products Expo and the 133rd China Import and Export Fair.

A State Council executive meeting recently called for fully unleashing the effect of multiple policies. MOFCOM will continue to implement the policies that have been introduced and accelerate the rollout of policy measures that are ready to but not yet be introduced. Furthermore, we will carry out in-depth investigations and research, reinforce policy options, and fully implement a combination of policies to ensure commerce development, providing support for China's economic recovery. In terms of foreign trade, we will develop measures to help NEVs expand their international markets, upgrade processing trade, provide more convenience for business people to apply for visas, and resume and increase international flights. Efforts will also be made to organize significant expos, such as the China International Import Expo (CIIE), China Import and Export Fair, and China International Fair for Trade in Services (CIFTIS). In terms of foreign investment, we will introduce policies to further optimize the business environment for foreign investment and promote continuing to shorten the negative list for foreign investment. We will continue to hold roundtable discussions with overseas enterprises and maintain regular exchanges and communications with foreign-funded enterprises. In terms of consumption, we will continue carrying out campaigns that promote consumption, boosting consumption of imported products and consumption in summer holiday and autumn season. We will also roll out measures to increase the consumption of automobiles, promote sound development of the catering industry, and encourage the use of digital technology to improve life services, among others.

We will keep you updated on the progress of related work through various channels, including MOFCOM's press conferences. Your continued interest and support are greatly appreciated. Thank you.

Zhonghongnet:

The Central Economic Work Conference proposed giving priority to restoring and expanding consumption. What work has been carried out in the first half of the year to promote consumption, and what have been the results? Thank you.

Xu Xingfeng:

Thank you for your interest in the consumption work. Consumption is the ultimate demand and the enduring driving force for economic growth. Since the beginning of the year, MOFCOM has fully implemented the decisions and plans of the CPC Central Committee and the State Council about giving priority to restoring and expanding consumption. We have introduced policies, launched campaigns, improved consumption environment, and stabilized supply. The consumption market in the first half of the year showed a steady recovery. Ms. Guo just briefed us on the related work. Our work has mainly been in the following aspects:

First, we stabilized consumption in key areas, consolidating consumption fundamentals. As we said before, automobiles, home appliances, home furnishing and catering are four major fields of consumption. We introduced multiple policy measures to encourage consumer spending on big-ticket items. In terms of automobiles, measures were made to improve electric vehicle battery charging facilities and tap the rural market for NEVs. Recently, we rolled out two campaigns to boost automobile sales in various cities and spur NEVs consumption in counties and towns. We also launched a nationwide secondhand car information inquiry platform, aimed at creating a positive and reassuring experience for people when buying secondhand cars. In the first half of the year, the auto sales and the growth of NEV consumption were very pleasing. As Ms. Guo said earlier, used vehicle sales in China surged 15.6%, showing a steady recovery. In terms of home appliances, we stepped up efforts to support the consumption of green and smart home appliances. In the first half of the year, major e-commerce platforms saw a 67% and 12.7% increase in sales of replacement home appliances and green and smart home appliances sold in rural areas, respectively. In terms of home furnishing, we already provided information in this respect yesterday. In terms of the catering sector, a series of gourmet events were held to promote the recovery and development of the catering industry.

Second, we focused on creating a consumer-friendly environment through activities. As Ms. Guo mentioned, the consumption boosting events will run through the year with seasonal themes, monthly exhibitions and weekly attractions, with the aim to create many consumption booms. In the first half of the year, we held four themed events for boosting spring consumption, national consumption, green consumption and international consumption. We also held major expos, such as the China International Consumer Products Expo and the China International Silk Expo. A number of major events were held, including consumption promotion activities for cotton and textile products, time-honored brands and online-shopping. We are grateful to the media for their coverage of these events and for making them known to the public. Additionally, we encouraged local governments nationwide, including in Shanghai, Beijing, Tianjin, Hebei, Chongqing and Guangxi, to carry out various consumption promotion events with local characteristics.

Third, we have improved the environment to encourage consumption. As you all know, China is developing five international consumption centers in the cities of Shanghai, Beijing, Guangzhou, Tianjin and Chongqing. In this regard, we have stepped up efforts and held the second International Consumption Center City Forum to promote exchanges and mutual learning among cities. Meanwhile, we have also promoted renovating existing commercial pedestrian streets and upgrading business formats across the country. We have designated 12 national demonstration smart business areas to enhance urban commerce. A total of 2,057 "15-minute community life circles" have been built in 80 regions nationwide to address weak links in community businesses. We have promoted the development of county-level commercial systems and improved rural commercial outlets. According to the National Bureau of Statistics, retail sales of consumer goods in urban areas increased by 8.1% from January to June, while those in rural areas grew by 8.4%.

Fourth, we have ensured supplies meet basic public consumption needs, which has always been a focal point of our efforts. Focusing on daily necessities such as grain, oil, meat, eggs, milk, fruits and vegetables, we have maintained the market monitoring and warning system. We have strived to improve commodity circulation and ensure supply of daily necessities. In the first half of the year, 6,200 pieces of market monitoring information concerning daily necessities were released via a business forecast platform, attracting significant attention from certain enterprises and local governments. Moreover, we have also made active efforts to deal with the impact of natural disasters on the market, such as earthquakes in Luding county of Sichuan province and Shaya county of Xinjiang Uygur autonomous region, flooding in Henan province and Guangxi Zhuang autonomous region, and the recent rainstorm in Chongqing. We have ensured emergency supplies of daily necessities in disaster areas. Moreover, according to the trend of the pork market, we purchased and stored pork in time to guide pork prices back to reasonable. That's all. Thank you.

Phoenix TV:

In recent years, the scale of China's foreign investment has continued to rise, but the actual amount of foreign investment used in the first half of this year has decreased. What's your opinion about that? Thank you.

Zhu Bing:

Thank you for your attention to foreign investment data. In recent years, MOFCOM has implemented the policy decisions and plans of the CPC Central Committee and the State Council. We have worked with local governments and other departments to ensure stable performance in foreign investment. We have achieved continuous expansion of the scale of foreign investment in China, with the investment structure having been improved continuously. These efforts have positively contributed to promoting economic and social development and building a new development pattern. In 2022, despite a 12% decline in global transnational investment, foreign investment in China grew by 6.3%. China's actual use of foreign investment hit a record high, reaching 1.2 trillion yuan ($189.13 billion), representing an increase of 8% and ranking second globally. Since the beginning of this year, the world economy's recovery has slowed, and global transnational investment has been sluggish. The recent UNCTAD World Investment Report 2023 shows that global foreign direct investment continues to face downward pressure this year due to multiple factors. Given this impact, compounded by the high base in the same period of 2022, the actual use of foreign capital in China in the first half of this year showed a slight year-on-year decline of 2.7%, but the overall scale remained stable. 

We believe that the short-term fluctuation will not affect the continued optimism of foreign investors in China's growth, and the overall trend of expanding investment in China has not changed. Recently, we've observed a continuous stream of visits to China by senior executives from multinational companies. Their aim is to conduct comprehensive, in-depth assessments of China's business environment and to explore new opportunities for investment and cooperation. Multinationals widely agree that the Chinese market, which contains enormous development opportunities, is not an "option" but a "must." They will continue to increase investment in China and explore the Chinese market. As Ms. Guo just mentioned, in the first half of this year, the number of new foreign-invested enterprises in the country increased by 35.7% year on year, which also fully proves this point. 

We believe that with the concerted efforts of all parties, the effects of foreign investment policies and measures will gradually emerge. With an improved business environment, China will remain a favored foreign investment and business destination. Thank you!

Reuters: 

China's accession to the CPTPP requires the support of all current members, but some of them may face potential political constraints that prevent them from supporting the Chinese application. How does China plan to overcome current CPTPP members' concerns that their trade relationship with the U.S., the world's largest economy, could be at risk if China were to join the bloc? Thank you. 

Guo Tingting:

Thank you for your question. It is true that China has been proactively working toward its accession to the CPTPP. Let's have Mr. Yang Tao give the details.

Yang Tao: 

Thank you for your question. China applied to join the CPTPP in September 2021, and is now actively working to accelerate the accession process. We have conducted comprehensive and in-depth analysis, evaluation and research on all CPTPP provisions and identified possible measures and laws and regulations that need to be amended. Currently, China is communicating and negotiating with the members, following the procedures for joining the CPTPP. China has advocated building open, transparent, mutually beneficial and win-win regional free trade arrangements and promoted trade and investment liberalization and facilitation. Going forward, China is willing to maintain communication and exchanges with the members on China's accession to the CPTPP. Thank you!

MNI: 

In view of weak external demand, it is expected that China's export outlook faces difficulties in the second half of the year. How will MOFCOM support export enterprises in the second half?

Li Xingqian:

Thank you for your question. The decline in international market demand represents a significant factor influencing the development of foreign trade. If we look further back, global trade is returning to its pre-epidemic trends. The average annual growth rate of global trade during the three years of the epidemic was 9.7%, clearly higher than the average yearly growth rate of 2.4% from 2010 to 2019 before the epidemic. We believe that such high growth during the epidemic was temporary and unsustainable.

Looking forward to the second half of the year, foreign trade faces many uncertain, unstable and unpredictable factors. With economic and non-economic factors interacting, the situation is extremely difficult, which can be seen in two ways. On the one hand, global economic and trade growth is weak. The three driving forces of production, consumption, and investment are sluggish. The global manufacturing PMI has been below the 50-point mark for nine consecutive months. Inflation in major economies is still at a high level, and the recovery in commodity consumption has been relatively slow. On the other hand, non-economic interference is on the rise. Some countries have pushed for "decoupling," "chain disruption," and so-called "de-risking," putting up artificial obstacles to impede regular economic and trade exchanges. Enterprises say that some countries' politicization of trade issues has led to the forced transfer of orders and production capacity, harming the economic interests of both suppliers and buyers.

Despite facing these difficulties and challenges, we remain confident. China's foreign trade industry and supply chains are resilient. China's foreign trade enterprises, which have become strong competitors in the international market, have inherent innovation ability. Recently, we have followed up on key foreign trade industries and enterprises and noticed some positive changes. For example, cross-border transactions are becoming smoother, and the number of international flights is steadily recovering. The share of enterprises with flat or growing new contracts is picking up. For the electronic information industry, which is under pressure, the import of intermediate goods is on the rise, which means there may be a favorable turn in the year's second half. In addition, China's competitive products, such as electric vehicles, solar cells and lithium batteries, will continue to grow rapidly. Multilateral and bilateral trade cooperation, including the BRI and free trade agreements, are also unlocking the potential for trade growth.

In the second half of this year, MOFCOM will continue to adopt a problem-oriented approach and cooperate with localities and government departments to create synergy, fully promoting the stability and improvement of foreign trade. We will focus on three aspects. First, more efforts will be made to help enterprises keep orders stable and expand markets and ensure the success of a number of major expos, including the CIIE, the China Import and Export Fair, and the CIFTIS. We will support enterprises to participate in overseas exhibitions to market their products and services. Faster visa processing will be promoted, and efforts will be made to facilitate the resumption and addition of more flights to international routes. Second, we will safeguard the stability of industrial and supply chains. Efforts will be made to improve processing trade, dynamically adjust the catalog of maintenance products in comprehensive bonded zones, step up monitoring and early warning of trade risks, and help enterprises cope with unreasonable trade restriction measures. Meanwhile, we will be more proactive in expanding imports. Third, we will further innovate the development of foreign trade. We will support the continuous upgrading of the country's distinctive and competitive products, guide cross-border e-commerce brand cultivation and standard development, and promote the development and application of trade document digitalization. At the same time, training involving new models, green and low-carbon trade, and free trade agreements will be held in different sectors, helping enterprises enhance trade capacity. Thanks.

21st Century Business Herald:

This year marks the 10th anniversary of the establishment of China's pilot FTZs. My question is, in the first half of this year, what has MOFCOM done with regard to implementing the strategy of upgrading the pilot FTZs and tap into their roles as pilot platforms for comprehensive reform and opening up? Thanks. 

Guo Tingting:

Thank you for your question. As you said, this year marks the 10th anniversary of the establishment of China's pilot FTZs. We have some considerations regarding this landmark. Mr. Yang will explain the details. 

Yang Tao:

Thanks. The pilot FTZ construction is a major strategic measure adopted by the CPC Central Committee with Comrade Xi Jinping at its core to further reform and open up in the new era. As you said, this year marks the 10th anniversary of China's pilot FTZ construction. From the new start, MOFCOM has continued to thoroughly study and put into practice the important instructions on pilot FTZ construction given by General Secretary Xi Jinping and firmly implemented the pilot FTZ upgrading strategy in accordance with the key plans made at the 20th CPC National Congress. Our work has focused on three aspects:

First, we have prioritized connections with high-standard international economic and trade rules amid efforts to promote institutional opening-up. Recently, we submitted a circular to the State Council for release on deepening reforms in some eligible pilot FTZs and the Hainan Free Trade Port to align with high-standard international economic and trade rules amid efforts to boost institutional opening up. The circular focuses on pilot policies and measures and risk prevention and control approaches in six major fields, including trade in goods and services, the temporary entry of business personnel, digital trade, business environment, and risk control, and supports the five eligible FTZs in Shanghai, Guangdong, Tianjin, Fujian, and Beijing and the Hainan Free Trade Port to take the lead in the pilot work. This will help explore the path for comprehensively deepening reform and expanding opening up, providing practical support for joining high-standard economic and trade agreements.

Second, we have worked to expand the application of a new batch of institutional innovations to unleash greater reform dividends. We recently submitted to the State Council for release a circular on expanding the application of the seventh batch of reform experiences tested in China's pilot FTZs nationwide or in special regions, involving 24 reform measures in total. This is expected to further unleash the dividends of the reform and opening-up policies of pilot FTZs, and help improve the business environment and build a higher-level open economy. 

Third, we have adopted a to-do list to guide our efforts in the next three years, and advance differentiated exploration. The list nails down 164 major tasks relevant pilot FTZs plan to handle independently in the next three years amid efforts to strengthen categorized guidance and help pilot FTZs deepen reform and practical innovation in accordance with their local conditions. 

High-level institutional innovations have effectively stimulated the vitality of pilot FTZs. Statistics show that in the first half of this year, utilized foreign investment in 21 pilot FTZs reached 129.66 billion yuan, a year-on-year increase of 8.2%. The growth of utilized foreign investment by high-tech industries reached 21.2% year on year. Overall, pilot FTZs cover less than 0.4% of national land and attracted 18.4% of total foreign investment in the country. 

Moving forward, MOFCOM will continue to fully implement the guiding principles of the 20th CPC National Congress and focus on three improvements, which are: improving the alignment with high-standard international economic and trade rules, market access, and systemic integration of reform. Efforts will be made to fully implement the strategy to upgrade pilot FTZs and other relevant policies and measures, and tap into their roles as pilot platforms for comprehensive reform and opening up, making continuous contributions to the high-level opening up. Thanks.  

CNBC:

I have two questions. First, in the first half of this year, how many executives from foreign companies have visited China, especially those from the US and Europe? Second, what kind of achievements has the "Invest in China Year" series of investment promotion activities made in the first half of the year, and how does MOFCOM plan and expect to attract foreign investment in the second half of this year?  

Zhu Bing:

Thank you for your questions. Since the beginning of this year, many executives of transnational corporations have come to China to evaluate the investment environment and search for new opportunities, which speaks volumes about their strong willingness to invest in China and optimism about China's prospects. MOFCOM warmly welcomes investors of various countries. Chinese Commerce Minister Wang Wentao met with visiting executives of transnational corporations more than 20 times this year, detailing our new policies and measures for attracting and utilizing foreign investment, and holding deep conversations about consolidating existing cooperation and further exploring potential cooperation. Recently, on the basis of our regular communication mechanisms, MOFCOM established a roundtable meeting mechanism with foreign companies to expand the communication channels between the Chinese government and foreign companies, which has helped to enhance communication, respond to enterprises' concerns in a timely manner, coordinate efforts to resolve the difficulties and problems foreign businesses face in their operations, and offer more effective and relevant services.   

According to the preliminary information, more executives of transnational corporations plan to visit China in the second half of this year. We will try our best to facilitate their evaluation of the investment environment, their efforts to align development strategies, and their negotiation of cooperation projects. China will become more and more open. Transnational corporations are welcome to continue their investment in China and share China's huge market and the dividends of open development.  

The second question was about the "Invest in China Year" series of investment promotion activities. I will brief it now. Implementing the decision and plan made by the CPC Central Committee and the State Council on making greater efforts to attract and utilize foreign investment, MOFCOM hosted for the first time the "Invest in China Year" series of investment promotion activities with the theme of "Invest in China, Working Together for a Bright Future of Openness and Prosperity." These events cover the country's east, central, west, and northeast regions and comprehensively display the business environment and investment opportunities in different localities, confirming the reliability of investing in China. So far, a total of 14 events of three categories have been held. 

The first category is comprehensive events. This March, we hosted the launch ceremony of "Invest in China Year" in Guangzhou, which Chinese Vice Premier He Lifeng attended and addressed with a keynote speech. In the presence of almost 100 transnational corporations, he reiterated China's determination to enhance opening-up, helping to strongly boost the confidence of foreign investors in China. 

The second category is "bringing in" activities. We held special local promotions in Guangdong, Chongqing, Tianjin and other places, and a national-level economic and technological development zone promotion event in Jiangsu province. We organized and carried out a series of activities, such as the "Multinational Corporations in Heilongjiang and Inner Mongolia" and "CIIE Enters Jilin and Yunnan." In line with the actual development and industrial characteristics of various regions, we actively promoted opening-up policies, investment environment and projects, and vigorously supported investment attraction around the country, especially in the central, western and northeast regions.

The third category is "going global" activities. We visited the Gulf countries to carry out special promotions, which attracted the participation of more than 70 local companies, and promoted the positive progress of many investment projects in China. We held the launch ceremony for the "Year of Investment Promotion — Germany Station" activity in Germany, in which more than 100 German companies and business associations participated, and many companies put forward investment plans. During the Year of Investment Promotion series of activities in the first half of the year, various regions continued to increase their efforts to attract investment. According to incomplete statistics, more than 2,900 foreign investment projects are currently being discussed in various regions.

Next, we will focus on promoting the implementation of policies and measures in various foreign investment fields, and continue holding the Year of Investment Promotion series of activities. We aim to better guarantee foreign investment services, strive to create a market-oriented, law-based and internationalized first-class business environment, help foreign-funded enterprises deepen their presence in the Chinese market, and share the dividends of China's development. Thank you.

The Paper:

Affected by factors such as shrinking external demand, China's foreign trade imports and exports were under pressure in the first half of the year. How does MOFCOM evaluate the situation of foreign trade imports and exports in the first half of the year? In addition, we've noticed a significant decline in the growth rate of imports and exports in May and June. What is the reason behind this? Thank you.

Li Xingqian:

Thank you for raising these two important questions. Your first question is about the import and export performance in the first half of the year. Since the beginning of this year, the external challenges facing foreign trade have indeed increased significantly. The State Council has issued policy measures in a timely manner to fully support foreign trade enterprises in exploring markets. Overall, in the face of a severe and complex external environment, foreign trade in the first half of the year withstood the pressure and demonstrated strong resilience. There have been outstanding performances in three areas:

First, the overall scale of trade has remained stable, and the volume of trade has continued to grow. From January to June, China's imports and exports of goods exceeded 20 trillion yuan, with a year-on-year increase of 2.1%. When compared with the same period before COVID-19, that is, the first half of 2019, it increased by 36.7%. We continue to maintain our position as the world's largest trading nation in goods, and our market share is steadily increasing. According to the latest data from the World Trade Organization (WTO), in the first quarter, global exports fell by 1.6% year on year, while China's export market share in the international market was 14%, an increase of 0.3 percentage point compared with the first quarter last year. Our monitoring also shows that in the second quarter, China's export share in the international market still maintained a steady and rising trend. Against the backdrop of overall sluggish global demand, our neighboring countries and regions have generally experienced double-digit declines in exports. China's export market is diverse, and its products are rich, effectively offsetting the impact of weak external demand and the cyclical decline of some products. The current performance of China's foreign trade is in line with expectations.

Second, the quality of trade has been continuously improved. From January to June this year, the share of emerging markets in imports and exports increased by 1.8 percentage points compared with the same period last year, reaching 63.5%. Our imports and exports to FTA partners increased by 2.4%, and to countries along the Belt and Road grew by 9.8%, both higher than the overall export growth rate. The quality of exported products is improving, and high-quality, high-tech and high-value-added products are growing strongly. In the first half of the year, electric passenger vehicles, solar cells and lithium batteries together boosted the overall export growth rate by 1.8 percentage points. The model of foreign trade is also being innovated and developed. We have replicated and promoted 30 excellent practice cases of new foreign trade models nationwide. In the first half of the year, cross-border e-commerce exports increased by 19.9%, maintaining a fast development momentum.

Third, foreign trade has effectively served the overall economic development. Foreign trade has continued to drive the recovery of the national economy, directly and indirectly employing 190 million people. Last year, we canceled the registration requirement for foreign trade operators, further stimulating the enthusiasm of market entities. From January to June, there were 35,000 new foreign trade enterprises with import and export records compared to the same period last year. In terms of ensuring supply in the domestic market, we actively expanded imports of grain, energy and resource products, and high-quality consumer goods to meet domestic production and living needs. In terms of opening-up, we promoted the comprehensive implementation of the RCEP among the 15 signatory countries, so that the internal and external circulations flow more smoothly.

Your second question is about the decline in the growth rate of China's imports and exports in May and June. This is actually a direct reflection of the weak recovery of the world economy in the field of trade. Specifically, there are four main reasons for the decline. First, overall external demand remains weak. Major developed countries are still adopting austerity policies to cope with high inflation, and some emerging markets have significant fluctuations in their exchange rates and insufficient foreign exchange reserves, which has significantly suppressed import demand. Second, the electronics and information industry is in a cyclical downturn. Consumer electronics products are one of China's leading export products, but this field has an "Olympic cycle" and is currently in a low for the four-year period. Affected by this, the export growth rate of computers, integrated circuits and cellphones, which account for more than 30% of our country's exports, has declined by double digits. Third, the import and export base in the same period last year was significantly raised. From May to June last year, the average monthly import and export volume was 3.57 trillion yuan, which was 430 billion yuan higher than the average monthly volume of 3.14 trillion yuan in the preceding four months. Fourth, import and export prices are declining. Currently, international commodity prices have been weakening. In May, China's import prices fell by 4.5%, and in June, they fell by a further 8.5%. The export prices also turned negative year on year from May, indicating a shift from positive to negative.

However, we should also note that foreign trade is accumulating new vitality despite declining import and export growth in May and June compared to the same period last year. The month-on-month growth rate has remained positive. The foreign trade cargo and container throughput at China's ports monitored by the transportation department is also growing, and the actual flow of goods in and out is still rather active. Therefore, we remain optimistic about the prospects of foreign trade in the second half of the year. Thank you.

Economic Daily:

What were the new achievements and highlights of Belt and Road economic and trade cooperation during the first half of 2023? What efforts will be taken to promote high-quality Belt and Road cooperation? Thank you.

Guo Tingting:

Thank you for your questions. I'd like to address them. Since the start of this year, MOFCOM has fully implemented the important instructions of General Secretary Xi Jinping on jointly promoting Belt and Road Initiative and the decisions and arrangements of the 20th National Congress of the CPC. We've worked with all related parties to steadily advance Belt and Road economic and trade cooperation. New achievements have been made on various fronts. 

First, the foundation of trade and investment has been continuously strengthened. We secured a steady growth of trade volume and an increasingly optimized trade structure. Over the past six months, our goods trade with Belt and Road countries reached 6.89 trillion yuan, marking a 9.8% year-on-year increase. This is 7.7 percentage points higher than the nation's overall growth in goods trade during the same period. Our exports of NEVs, machine tools, and household appliances to Belt and Road countries rose by 163.3%, 49.7% and 26.2%, respectively. Meanwhile, our imports of quality specialty products, including agricultural products from Belt and Road countries, grew by 17.9%, and fertilizers by 71.7%. We also noted the rapid growth in bilateral investment. In the first half of the year, our non-financial direct investment in Belt and Road countries reached 80.1 billion yuan, an increase of 23.3%, and we received 55.95 billion yuan of actualized investment from Belt and Road countries, a 23.7% increase.

Second, we have strengthened connectivity. On the one hand, we have advanced the "hard connectivity" of infrastructure. In the past six months, the turnover of Chinese enterprises' contracted projects in Belt and Road countries totaled 277.72 billion yuan, an increase of 11.5%. Key projects like the Cambodia Sihanoukville Special Economic Zone and the China-Laos Railway commenced operation smoothly. We made new progress in constructing the New International Land-Sea Trade Corridor, a joint endeavor between China and Singapore. Based on industrial park cooperation agreements, China and some ASEAN countries took steps to jointly develop demonstration zones for innovative economic and trade development. On the other hand, we facilitated the "soft connectivity" of economic and trade rules and standards. RCEP took effect in 15 member countries, and the version 3.0 China-ASEAN FTA negotiations were held. We also signed a free trade agreement with Ecuador. Most importantly, we deepened the "connectivity of the heart." Several "small but beautiful" programs aimed at enhancing education, healthcare and poverty alleviation were carried out in Belt and Road countries, greatly improving local people's livelihoods. We also advanced nine programs of China-Africa cooperation.

Third, the building of mechanisms and platforms has been improved. We established working groups to facilitate trade with two countries and promote investment with five countries. In terms of cooperation in emerging sectors, we signed eight memorandums of cooperation with six countries on green development, the digital economy, the blue economy, e-commerce, and trade in services. To fully utilize cooperation platforms, we successfully hosted the third CEEC Expo & International Consumer Goods Fair and the third China-Africa Economic and Trade Expo.

Following the guidance of the CPC Central Committee and the arrangements of the State Council, MOFCOM will continue to enhance economic and trade cooperation with Belt and Road countries and expand cooperation spaces to make new contributions to high-quality Belt and Road cooperation with more win-win results. Thank you.

Macau Monthly:

The United Nations Conference on Trade and Development (UNCTAD) offered an analysis of global multinational investment in its recent report. What is your take on the trend of China's attractiveness to foreign investment in the second half of 2023? What measures will be taken to attract and make use of foreign investment? Thank you.

Zhu Bing:

Thank you for your questions. As you noted, the UNCTAD report indicates that global multinational investment declined by 12% last year, with further downward pressure being projected for this year. The external environment for attracting investment is severe as global investment is experiencing a downturn, and competition for investment introduction is becoming increasingly intense. Nevertheless, it's important to remember that the fundamentals of the Chinese economy, characterized by its strong resilience, enormous potential, and long-term growth, remain unchanged. China's vast open market presents numerous opportunities for foreign enterprises. Our overall advantages in attracting investment, created by a complete industrial system, impeccable infrastructure, abundant human resources, and a continuously improving business environment, are constantly being reinforced. Under the strong leadership of the CPC Central Committee and the State Council, we are both determined and confident in our ability to successfully attract and utilize foreign investment this year. We will coordinate with all localities and government departments, prioritizing the following four aspects of work.

First, we will push for a higher standard of opening up. The negative list for foreign investment access will be appropriately shortened, and restrictions will be either eased or removed entirely. To advance the comprehensive pilot program for service sector opening, we will implement a number of trial measures, drawing on the rules, regulations, standards, and management models stipulated in high-standard economic and trade agreements, thereby steadily advancing the institutional opening of the sector. We will also revise the Measures for Strategic Investment by Foreign Investors in Listed Companies to further relax restrictions in this area.

Second, we will strengthen policy support for foreign investment. MOFCOM has directed localities to conscientiously implement special policies for foreign-invested research and development centers, foreign investment in manufacturing, and the catalog of encouraged foreign investment industries. More foreign investment has been directed toward advanced manufacturing, with its introduction to high-tech manufacturing increasing by 28.8% in the first half of 2023. While diligently implementing existing policies, we will redouble efforts to address foreign enterprises' common calls for fair competition, trade facilitation, and supply of production factors. New policies and measures will be adopted to enhance the business environment and attract foreign investment. We will collaborate closely with all localities and government departments to ensure effective policy implementation and bolster foreign enterprises' sense of gain. 

Third, we will continue to host the Year of Investment Promotion series of activities. As I just said, in the first half of the year, we organized 14 major events, effectively promoting our investment environment and policies, encouraging multinational companies to better understand and invest in China. In the second half of this year, we plan to host nine key events in conjunction with major economic and trade exhibitions. This includes a Year of Investment Promotion keynote forum during the China International Fair for Investment and Trade (CIFIT), a specialized session for the service industry at the CIFTIS, a dedicated promotion for China's central region during the Expo Central China, and a Year of Investment Promotion summit during the CIIE. We hope these events can bolster local governments in attracting investments, fostering project collaborations, and bringing in more promising foreign investment projects for China.

Fourth, we will elevate the level of service support for foreign investment. This year, we have fully utilized the foreign trade and investment coordination and service mechanism, and the specialized team for key foreign investment projects, strengthened regular exchanges with foreign-funded enterprises and foreign business associations, and upgraded and established a roundtable conference system for foreign-funded enterprises to carry out multiple forms of exchange activities at various levels. Recently, Minister Wang Wentao has presided over roundtable meetings with foreign-funded enterprises in the pharmaceutical industry and Japanese enterprises, listening to their feedback and addressing their concerns. Next, we will continue to leverage the roundtable system and develop it into an vital platform for the Chinese government to connect with, serve and support foreign-invested enterprises. Should any enterprise encounter difficulties or problems related to their investment or operations, they can directly contact the designated team for foreign investment under MOFCOM.

Thank you.

Yicai:

According to recent data, in the first half of the year, China's consumer market achieved a stable and rapid recovery. However, the rebound in big-ticket items such as home furnishings and appliances remains insufficient. What measures will be taken in the next step? Thank you.

Xu Xingfeng:

Thank you for your question. The topic is a common concern for many people. In the first half of this year, total retail sales of consumer goods increased by 8.2% year-on-year. Everyone has high expectations regarding how to sustain the positive momentum in consumption and stabilize the demand for big-ticket item such as household appliances, home furnishings, and automobiles. The meeting of the Political Bureau of the CPC Central Committee emphasized that restoring and expanding demand is key to maintaining and motivating the current economic recovery. Next, MOFCOM will diligently implement the deployments and decisions made by the CPC Central Committee and the State Council, continue to integrate the strategy of expanding domestic demand with deepening supply-side structural reform, and enhance policy coordination and working collaboration, deepening the level of implementation. We will focus on the following four aspects:

First, we will focus on optimizing the consumption environment and implementing more detailed policies. As I introduced earlier, the State Council and related departments have issued a series of policies around promoting consumption, so the next step is to "cultivate and flourish." This means that these policies that have been issued can actually be transformed into results. As you mentioned just now, the household consumption policy covers a wide range, including home appliances, furniture, home decorations, home textiles and housekeeping. Yesterday, we held a policy briefing here to introduce the relevant implementation considerations.

In addition, as discussed and reviewed by the executive meeting of the State Council last year, MOFCOM and 17 other departments have issued policies and documents on boosting the circulation of automobiles and expanding automobile consumption, many of which are currently in progress. Responding to the issue of "mileage anxiety" concerning NEVs, MOFCOM, based on its own responsibilities, is working with other departments to actively improve the charging infrastructure. For example, on the premise of ensuring safety, we are encouraging the installation of charging facilities in gas stations and parking lots of shopping malls, supermarkets, shopping centers and so on where conditions allow. These policies form a cohesive approach to stabilize and expand automobile consumption. In addition, we will carry out in-depth investigations and studies, enlarge policy reserves and enrich our policy toolkit in light of changes to the current consumer market, and promote the introduction of policies at the appropriate times.

Second, we will focus on cultivating a vibrant consumption atmosphere by continuously organizing engaging consumer events. The Year of Consumption Promotion which we just introduced has now entered its second half when policies should be implemented with further precision and various activities should be conducted well and effectively. Nationwide, the "Home Refresh Consumption Season" will serve as a major promotion to harness people's enthusiasm toward all kinds of household furnishings. On July 12, we launched the "Summer Consumption Season" in Chongqing, which is now in full swing. In September, we plan to launch the "Golden Autumn Shopping Festival." Subsequently, there will be the CIFTIS and the CIIE, which everyone is aware of, following one after another. At the local level, we will continue to mobilize the enthusiasm of local governments to initiate tailored and captivating consumption promotion activities in accordance with local conditions, to build a unique "one place, one product" brand and enhance the effectiveness and influence of activities.

Third, we will focus on improving consumption conditions and refining the business system. The business system affects the convenience of consumption, and we will start with both urban and rural areas. In cities, we will cultivate and construct international consumption hubs, revitalizing and elevating pedestrian streets, developing smart shops and business circles, expanding the coverage of "15-minute community life circles," and promoting the development of distinctive neighborhoods. In rural areas, we will implement a three-year plan for county-level commerce, cultivating a batch of leading commercial counties at national level, upgrading and renovating a number of township business centers and establishing new rural convenience stores.

Fourth, we will prioritize innovative consumption scenarios and cultivate consumption hot spots. At present, various new forms and models of the consumer market are flourishing. It is vital to guide innovative development, as laid out in the "three integrations." The first integration involves merging business models. The boundaries between specialty stores, professional stores, shopping malls and supermarkets have become less clear now, and shopping centers now offer diverse elements and functionalities. The second integration revolves around cross-border collaboration. By synergizing business, travel, culture, sports and health, we aim to create more immersive, experiential and interactive consumption scenarios. The third integration focuses on merging online and offline aspects of commerce. We will support the healthy development of "instant retail" and livestream e-commerce to extend and expand into the offline world. This approach aligns with current trends and aims to promote the provision of digital and intelligent services among traditional businesses.

That's all from me. Thank you.

Shou Xiaoli:

Thank you, Mr. Xu for your answers, and thank you to everyone from the press for attending. That's all for today's press conference, goodbye.

Translated and edited by Wang Qian, Wang Yiming, Liu Sitong, Cui Can, Duan Yaying, Yuan Fang, Wang Yanfang, Liu Qiang, Liu Caiyi, Ma Yujia, Li Huiru, David Ball, 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. Fu Linghui, spokesman of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

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

Date:

July 17, 2023

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to today's press conference held by the State Council Information Office (SCIO). This is a regular briefing on economic data. We are delighted to be joined by Mr. Fu Linghui, spokesman of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS, to brief you on the national economic performance of the first half of 2023, and to take your questions.

Now, I'll give the floor to Mr. Fu for an introduction.

Fu Linghui:

Thank you, Ms. Shou. I'm very glad to attend today's press conference. I'll first brief you on the main economic data of the first half of this year and then take your questions.

In the first half of this year, the Chinese economy has shown encouraging recovery momentum. In the first half of this year, faced with a complex and grave international environment as well as arduous tasks to advance reform and development, and ensure stability at home, 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 working guideline of making progress while maintaining stability, fully and faithfully applied the new development philosophy on all fronts, accelerated the efforts to foster a new development pattern, focused on promoting high-quality development, better balanced domestic and international imperatives, coordinated the work of COVID-19 prevention and control with economic and social development, ensured both development and security, and gave priority to ensuring stable growth, employment and prices. As a result, market demand gradually recovered, production supply continued to increase, employment and prices were generally stable, and residents' income grew steadily. The national economy showed a good momentum of recovery.

According to preliminary estimates, the gross domestic product (GDP) in the first half of the year reached 59,303.4 billion yuan, up by 5.5% year on year at constant price, 1.0 percentage point faster than that in the first quarter of 2023. By industry, the value added of the primary industry was 3,041.6 billion yuan, up by 3.7% year on year; that of the secondary industry was 23,068.2 billion yuan, up by 4.3%; and that of the tertiary industry was 33,193.7 billion yuan, up by 6.4%. By quarter, GDP grew by 4.5% year on year in the first quarter and 6.3% in the second quarter. GDP in the second quarter was up by 0.8% quarter on quarter. 

1. Agricultural production was stable and animal husbandry grew steadily.

In the first half of 2023, the value added of agriculture (crop farming) witnessed a year-on-year increase of 3.3%. The summer grain had another harvest. The total output of summer grain was 146.13 million metric tons, 1.274 million metric tons less than that of the previous year, or down by 0.9%, but still the second highest amount in history. In the first half of the year, the output of pork, beef, mutton and poultry was 46.82 million metric tons, up by 3.6% year on year. Of this total, the outputs of pork, beef, mutton and poultry increased by 3.2%, 4.5%, 5.1% and 4.3%, respectively. The output of milk was up by 7.5% and that of eggs grew by 2.9%. At the end of the second quarter, the number of pigs registered in stock was 435.17 million, up by 1.1% year on year; and in the first half of the year, 375.48 million pigs were slaughtered, up by 2.6%.

2. Industrial production recovered gradually and equipment manufacturing grew quickly.

The total value added of industrial enterprises above designated size grew by 3.8% year on year in the first half year, or 0.8 percentage point faster than that in the first quarter. In terms of sectors, the value added of mining increased by 1.7% year on year, that of manufacturing increased by 4.2%, and that of the production and supply of electricity, thermal power, gas and water increased by 4.1%. The value added of equipment manufacturing increased by 6.5%, 2.7 percentage points faster than that of the industrial enterprises above designated size. Analysis by types of ownership showed that the value added of state holding enterprises rose by 4.4% year on year; that of share-holding enterprises was up by 4.4%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 0.8%; and that of private enterprises was up by 1.9%. In terms of products, the production of solar cells, new-energy automobiles and industrial control computers and systems increased by 54.5%, 35.0% and 34.1%, respectively. In June, the value added of industrial enterprises above designated size grew by 4.4% year on year, or up by 0.68% month on month. In June, the Manufacturing Purchasing Managers' Index stood at 49.0%, and the Production and Operation Expectation Index was 53.4%.

3. The service sector grew quickly and services involving contacts and gatherings improved significantly.

In the first half of the year, the value added of services went up by 6.4% year on year, 1.0 percentage point faster than that in the first quarter. Specifically, the value added of accommodation and catering, information transmission, software and information technology services, leasing and business services, financial intermediation, and wholesale and retail grew by 15.5%, 12.9%, 10.1%, 7.3% and 6.6%, respectively. In June, the Index of Services Production increased by 6.8% year on year. Specifically, the Index of Services Production of accommodation and catering, information transmission, software and information technology services, and leasing and business services went up by 20.0%, 15.4% and 9.3%, respectively. In the first five months, the business revenue of service enterprises above designated size grew by 8.5% year on year. In June, the Business Activity Index for Services stood at 52.8%, and the Business Activity Expectation Index was 60.3%. Among these, the Business Activity Index for industries like air transportation, express mail services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services, and insurance were within the high expansion range of 60.0% and above.

4. Market sales registered good momentum of growth and sales of upgraded goods accelerated.

In the first half of the year, the total retail sales of consumer goods reached 22,758.8 billion yuan, up by 8.2% year on year, 2.4 percentage points faster than that of the first quarter. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 19,753.2 billion yuan, up by 8.1% year on year, and that in rural areas was 3,005.6 billion yuan, up by 8.4%. Grouped by consumption patterns, the retail sales of goods were 20,325.9 billion yuan, up by 6.8%; and the income of catering was 2,432.9 billion yuan, up by 21.4%. Goods for basic living enjoyed stable growth, with the retail sales of clothes, shoes, hats and textiles and of grain, oil and food by enterprises above designated size up by 12.8% and 4.8%, respectively. The sales of upgraded goods grew quickly. The retail sales of gold, silver and jewelry, of sports and recreation goods, and of cosmetics by enterprises above designated size went up by 17.5%, 10.5%, and 8.6%, respectively. Online retail sales reached 7,162.1 billion yuan, up by 13.1% year on year. Specifically, the online retail sales of physical goods were 6,062.3 billion yuan, up by 10.8%, accounting for 26.6% of the total retail sales of consumer goods. In June, the total retail sales of consumer goods increased by 3.1% year on year, or up by 0.23% month on month.

5. Investment in fixed assets continued to increase and investment in high-tech industries grew quickly.

In the first half of the year, the investment in fixed assets (excluding rural households) reached 24,311.3 billion yuan, up by 3.8% year on year. Specifically, the investment in infrastructure grew by 7.2%; that in manufacturing grew by 6.0%; and that in real estate development fell by 7.9%. The floor space of commercial buildings sold reached 595.15 million square meters, down by 5.3%; and the total sales of commercial buildings were 6,309.2 billion yuan, up by 1.1%. By industry, investment in the primary industry went up by 0.1%, that in the secondary industry was up by 8.9%, and that in the tertiary industry was up by 1.6%. Private investment dropped by 0.2%. Investment in high-tech industries grew by 12.5%, of which investment in high-tech manufacturing and high-tech services grew by 11.8% and 13.9%, respectively. In terms of high-tech manufacturing, investment in manufacturing of medical equipment, measuring instruments and meters and manufacturing of electronic and communication equipment grew by 16.8% and 14.2%, respectively. In terms of high-tech services, investment in professional technical services and in services for transformation of scientific and technological achievements grew by 51.6% and 46.3%, respectively. In June, investment in fixed assets (excluding rural households) grew by 0.39% month on month.

6. Imports and exports of goods continued to grow and the trade structure continued to be optimized.

In the first half of the year, the total value of imports and exports of goods was 20,101.6 billion yuan, an increase of 2.1% year on year. The total value of exports was 11,458.8 billion yuan, up by 3.7%. The total value of imports was 8,642.9 billion yuan, down by 0.1%. The trade balance was 2,815.9 billion yuan in surplus. The imports and exports of general trade increased by 4.0%, accounting for 65.5% of the total value of imports and exports, 1.2 percentage points higher than that of the same period in the previous year. The imports and exports by private enterprises grew by 8.9%, accounting for 52.7% of the total value of imports and exports, 3.3 percentage points higher than that of the same period in the previous year. The imports and exports with countries along the Belt and Road grew by 9.8%. In June, the total value of imports and exports was 3,488.3 billion yuan, down by 6.0% year on year. The total value of exports was 1,989.8 billion yuan, down by 8.3%; and that of imports was 1,498.5 billion yuan, down by 2.6%. 

7. Consumer price rose year on year and producer prices for industrial products dropped year on year.

In the first half of the year, the consumer price index (CPI) rose by 0.7% year on year. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 2.1%. Clothing prices increased by 0.8%. Housing prices dropped by 0.2%. Prices for articles and services for daily use rose by 0.5%. Transportation and communication prices fell by 2.3%. Prices for education, culture and recreation grew by 1.7%. Prices for medical services and health care went up by 1.0%. Prices for other articles and services increased by 2.9%. In terms of food, tobacco and alcohol prices, fresh fruit prices went up by 7.9%, pork prices increased by 3.2%, grain prices rose by 1.6%, and fresh vegetable prices dropped by 2.7%. The core CPI excluding food and energy prices grew by 0.7% year on year. In June, the country's CPI maintained the same level year on year and dropped by 0.2% month on month.

In the first half of the year, the producer prices for industrial products went down by 3.1% year on year. Specifically, the prices in June dropped by 5.4% year on year, or down by 0.8% month on month. In the first half of the year, the purchasing prices for industrial producers went down by 3.0% year on year. Specifically in June, the prices dropped by 6.5% year on year, or down by 1.1% month on month.

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

In the first half of the year, the urban surveyed unemployment rate averaged 5.3%, down by 0.2 percentage point over that of the first quarter. In June, the surveyed unemployment rate in urban areas was 5.2%, the same as that of the previous month. The surveyed unemployment rate of population with local household registration was 5.1% and that of population with non-local household registration was 5.3%, of which, the rate of population with non-local agricultural household registration stood at 4.9%. Specifically, the surveyed unemployment rates of population aged 16-24 and 25-59 were 21.3% and 4.1%, respectively. Among the population aged 25-59, the surveyed unemployment rates of the population with junior secondary school education or below, with senior secondary school education, with junior college education, and with university education or above were 4.4%, 4.4%, 3.9% and 3.2%, respectively. The urban surveyed unemployment rate in 31 major cities was 5.5%, the same as the previous month. The employees of enterprises worked 48.7 hours per week on average. By the end of the second quarter, the number of rural migrant workers totaled 187.05 million, up by 3.2% year on year.

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

In the first half of the year, the nationwide per capita disposable income of residents was 19,672 yuan, a nominal growth of 6.5% year on year, 1.4 percentage points faster than that of the first quarter; the real growth was 5.8% after deducting price factors, 2.0 percentage points faster. In terms of permanent residence, the per capita disposable income of urban households was 26,357 yuan, a nominal growth of 5.4% year on year and a real growth of 4.7%; the per capita disposable income of rural households was 10,551 yuan, a nominal growth of 7.8% year on year and a real growth of 7.2%. 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%, 7.0%, 4.7% and 6.1% in nominal terms, respectively. The median nationwide per capita disposable income of residents was 16,393 yuan, with a nominal growth of 5.4% year on year.

Generally speaking, in the first half of the year, as economic and social development has fully returned to normal and macro policies have come into effect, the national economy showed a good momentum of recovery and high-quality development was advanced steadily. However, we must be aware that the international political and economic situation is intricate and complicated, and the foundation for sustained economy recovery at home is not yet solid. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the general principle of pursuing progress while maintaining stability, fully and faithfully apply the new development philosophy on all fronts, focus on the top task of high-quality development and strategic task of creating a new pattern of development, comprehensively deepen reform and opening up, accelerate the modernization of the industrial system, promote smooth economic flow, and make more efforts to change the growth model, improve the economic structure and gather new growth momentum, so as to effectively enhance the quality and reasonable growth of quantity in the economy. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. The floor is now open for questions. Please identify the media organization you work for before asking your questions.

CCTV:

Judging by the data just released, China's economy has continued to recover in the second quarter of this year. How would you evaluate the economic trends of the first half of this year? In addition, what are the characteristics of our country's economic performance? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, as the economy and society have fully resumed normal operations, policies aimed at stabilizing growth, employment, and prices have gradually taken effect. Market demand has gradually recovered, production and supply have consistently increased, and employment has remained generally stable. People's livelihoods have been effectively guaranteed, the quality of development has continued to improve, and the national economy is on a path of recovery. The characteristics are primarily as follows: 

First, overall economic growth has picked up. In the first half of this year, China's gross domestic product (GDP) grew by 5.5% year on year, significantly outpacing the 3% growth rate for the entirety of last year and the 4.5% growth rate in the first quarter. Since the beginning of this year, the world has experienced a sluggish economic recovery and relatively high inflation, and contractionary monetary policies in major economies have resulted in significant spillover effects. Faced with a complex and challenging external environment, China's economic growth has been notably faster than that of the world's major developed economies, exhibiting strong resilience.

Second, domestic demand has continued to expand. Various policies and measures aimed at stimulating domestic demand have taken effect, continuously releasing its potential. Notably, consumer spending has significantly boosted economic growth. In the first half of this year, total retail sales of consumer goods grew by 8.2% year on year, maintaining a relatively rapid growth rate. The contribution of final consumption expenditure to economic growth reached 77.2%, significantly higher than that of last year. Investment has continued to grow, and investment in key areas has increased swiftly, playing an effective role in optimizing the supply structure. In the first half of this year, fixed-asset investment grew by 3.8% year on year, with infrastructure and manufacturing investments up by 7.2% and 6%, respectively.

Third, industrial development has been strengthened. Driven by a series of policies and measures to ensure stable agricultural production, increase production, and boost the real economy, the primary, secondary, and tertiary industries have continued to recover, and the foundation for development has been consolidated. Agricultural production has remained stable. A bountiful summer grain harvest has been achieved, and the market supply of vegetables, fruits, meat, poultry, eggs, and milk has generally been sufficient. In the first half of this year, the output of pork, beef, mutton, and poultry increased by 3.6% year on year. Industrial production has continued to recover. In the first half of this year, the value-added of industrial enterprises above designated size increased by 3.8% year on year, a 0.8 percentage point faster than the first quarter. The service sector has grown rapidly. In the first half of this year, the value-added of the service sector grew by 6.4% year on year, outpacing economic growth, with the growth rate of service industries featuring frequent contact or clustering of people, such as wholesale and retail, accommodation and catering, and transportation, picking up significantly.

Fourth, the economic mix has been adjusted and optimized. The industrial structure has continued to improve. In the first half of this year, the value-added of the service sector accounted for 56% of GDP and contributed 66.1% to economic growth, higher than that of the secondary industry. The value-added of the equipment manufacturing industry accounted for 32.3% of the value-added of industries above designated size, an increase of 1.4 percentage points over the same period last year. The structure of consumer spending and investment has improved. In the first half of this year, the retail sales of gold, silver, and jewelry, as well as sports and entertainment goods by enterprises above designated size, increased by 17.5% and 10.5%, respectively, and investment in high-tech industries increased by 12.5%, significantly faster than the growth of total investment.

Fifth, the driving force for innovation has continued to grow. New industries have grown and expanded. In the first half of this year, the value-added of aerospace vehicle and equipment manufacturing above designated size, as well as lithium-ion battery manufacturing above designated size, increased by 22.9% and 29.7%, respectively. The value-added of information transmission, software, and information technology services increased by 12.9%. New forms of business have continued to flourish. In the first half of this year, the online retail sales of physical goods increased by 10.8% year on year, accounting for 26.6% of the total retail sales of social consumer goods.

Sixth, employment and people's livelihoods have been ensured. With the economy recovering, the policy of stabilizing employment has continued to show effects, and the employment situation has gradually improved. In the first half of this year, the average surveyed urban unemployment rate registered at 5.3%, down a 0.2 percentage point from the first quarter, and the figure for June logged at 5.2%, indicating a downward trend since the beginning of the year. Personal income has grown rapidly. In the first half of this year, per capita disposable income rose by 5.8% in real terms, considerably faster than the growth rate for all of last year. The income gap between urban and rural residents has narrowed. In the first half of this year, the ratio of per capita disposable income between urban and rural residents decreased by 0.05 compared with the same period last year.

On the whole, our economy has shown a robust momentum of recovery and solid progress in transformation and upgrading. However, it's important to recognize the complex international political and economic situation, the sluggish global economic recovery, and, consequently, the necessity for intensified efforts to achieve sustained economic recovery. Moving forward, we will thoroughly implement the decisions and arrangements of the Central Committee of the Communist Party of China (CPC), adhering to the general principle of pursuing progress while ensuring stability. With our primary focus on high-quality development, we will implement macro policies in a systemic and targeted way, intensify efforts to expand domestic demand, comprehensively deepen reform and opening up, accelerate the cultivation and strengthening of new economic drivers, and invigorate business entities. The aim is to promote overall economic improvement, strive to realize the effective enhancement of economy's quality and achieve a reasonable growth in quantity.

Kyodo News:

Economic growth in the second quarter of 2023 was relatively faster than the same period last year, which was hit by COVID-19, but the international economic situation remains complex. What do you think of the economic growth prospects in the second half of this year? How will you achieve the economic target set for the whole year? Thank you.

Fu Linghui:

Thank you for your questions. In the first half of this year, the Chinese economy overall was in recovery and displayed an encouraging rebound momentum. As the economy and society have returned to normal operations, key indicators have generally improved, new growth drivers have gained strength, the quality of development has steadily risen, and the living conditions of the populace have continued to improve. All these factors have established a solid foundation for achieving the economic and social development targets set for the whole year.

Looking forward to the next stage, despite the complex and challenging external environment and pressures on domestic economic development, the economic fundamentals that will sustain long-term growth remain unaltered. The economy retains its strong resilience, substantial potential, and immense vitality, and the conditions supporting high-quality development remain robust. With the accumulation of positive factors that promote development, the economy is expected to maintain the encouraging momentum of rebound.

First, consumer spending will continue to boost economic growth. Since the beginning of this year, all sectors have actively supported the recovery and increase in consumer spending, gradually unlocking its potential. Consumer spending has played a significant role in boosting economic growth and contributing to the overall recovery. In the first half of this year, final consumption expenditure contributed to 77.2% of economic growth, significantly higher than that of last year. In the next stage, the employment situation will continue to improve further, and personal income will continue to increase, which will help increase people's purchasing power and willingness to spend. Policies aimed at stimulating spending in new energy vehicles and green smart home appliances are expected to have a positive impact on consumption and further support economic recovery.

Second, the service sector will develop better. As the economy and society have fully resumed normal operations, the growth of the service industry has gained significant momentum. Service industries involving direct interaction among people, such as wholesale and retail, accommodation and catering, and transportation, have experienced a notable rebound, substantially contributing to overall economic growth. In the first half of this year, the service sector contributed to more than 60% of economic growth. Looking ahead, there will be an increased demand for services such as cultural tourism, fitness, and sports, as well as producer services such as research and development, design, and business conventions and exhibitions. These factors will drive the service sector to maintain rapid growth and contribute to stable economic performance. The business activity index for the service sector, which registered 52.8% in June, has consistently indicated expansion for six consecutive months.

Third, new growth drivers will become stronger. China has been actively implementing the strategy of innovation-driven development and strengthening its strategic scientific and technological capabilities. Technologies such as modern information technology, artificial intelligence, and big data have been widely applied. Innovative outcomes have continued to emerge, and new industries and new products have grown at a good pace. Since the beginning of this year, significant milestones have been achieved, such as the maiden commercial flight of China's self-developed C919 large passenger aircraft and the successful installation of the world's first 16-megawatt offshore wind turbine. These advancements highlight the ongoing empowerment of high-quality development through scientific and technological innovation. Moreover, the growth of consumer spending on smart products has been expanding, driving the growth of related manufacturing. In the first half of this year, the value-added of equipment manufacturing related to smart product spending increased by 12%. At the same time, in terms of breaking through technological bottlenecks in key fields, the manufacturing sector related to semiconductor-related industries grew relatively fast, and the value-added of manufacturing special equipment for semiconductor devices increased by 30.9%. As for specific products, the output of some new materials and intelligent products has also seen robust growth, with a 23.3% increase in aerospace aluminum production and a 34.1% increase in industrial personal computer (IPC) and system production in the first half of this year. Looking ahead, innovation will provide a stronger boost and inject new impetus into economic development.

Fourth, efforts in green transformation have been significantly rewarded. With a faster pace towards green energy development, we are making progress in promoting green production and lifestyles, and achieving a harmonious coordination between green transformation and economic growth. In the first half of this year, the output of new energy vehicles, solar cells, and charging piles increased by 35%, 54.5%, and 53.1%, respectively. Moreover, there was a 61.6% increase in the export of lithium batteries, solar cells, and electric vehicles. In the upcoming phase, we expect to continue the sound progress of green development, which will contribute to transforming the driving forces of economic growth while improving the quality of economic development.

Furthermore, all localities and departments have been committed to high-quality development, implementing macro policies in a systemic and targeted way, and working hard to expand domestic demand and ensure smooth economic circulation. This endeavor will provide a strong guarantee for stable economic performance. In general, since the beginning of this year, China's economy has gradually shaken off the impact of COVID-19, returned to the track of normal operation, and shown a good recovery momentum. Throughout this year, despite pressure and challenges, our economy will steadily recover, and its development quality will continue to improve as employment improves, personal income increases, domestic demand grows, supply structure adjusts and improves, and new growth drivers become stronger. Therefore, we have the confidence, conditions, and ability to meet the economic and social development targets set for the whole year. Thank you.

Reuters:

Could you please tell us if economic growth in the second quarter was faster or slower than expected? What are the factors behind it? Thank you.

Fu Linghui:

Thank you for your questions. Since the start of this year, the Chinese economy has gradually returned to regular operation. It had a good start in the first quarter and continued its recovery in the second quarter. Generally speaking, the Chinese economy has shown a trend of recovery and improvement in the first half of this year. Regarding the economic performance of other countries, overall economic growth worldwide has accelerated following the adjustment of epidemic prevention and control measures. However, due to different national conditions, stages of development, and the international environment, the pace of their rapid economic growth differs significantly.

Regarding China's economic performance, since the country has fully resumed regular social and economic operations this year and production demand has gradually recovered, sectors like consumption and services, which were greatly impacted by the epidemic earlier, have accelerated their recovery and played a larger role in driving economic growth. The overall stability of agriculture and industry has provided strong support for economic recovery. In general, economic operations have gradually rebounded from the impact of the pandemic and are now back on a growth track. China's GDP grew by 5.5% year on year in the first half of this year, and by 6.3% in the second quarter. China's GDP growth rate of 5.5% is significantly faster than last year's growth rate of 3%, and also faster than the average annual growth rate of 4.5% over the past three years, indicating a notable recovery in economic growth. China's growth rate of 5.5% in the first half of the year is high in both valuation and quality.

First, China's GDP growth rate of 5.5% is faster than many other countries globally. Since the beginning of this year, worldwide economic growth has been sluggish, with major economies struggling to maintain positive growth. However, China has maintained relatively rapid economic growth, providing substantial support for global economic development. Major international organizations have recently increased their expectations for global economic growth. One of the key reasons behind this is that China has maintained its economic recovery. According to statistics released by major economies, in the first quarter of this year, GDP in the United States, the eurozone, Japan, and Brazil grew by 1.8%, 1%, 1.9%, and 4%, respectively. Even considering the situation in the second quarter, China's economic growth rate in the first half of the year remains the fastest among major economies.

Second, China's GDP growth rate of 5.5% results from structural improvement and optimized driving forces. In terms of demand, the economic growth, which was primarily driven by investment and exports last year, is now fueled by consumption and investment. In particular, consumption has played a significantly larger role in driving the economy. In the first half of 2023, final consumption expenditure contributed to over 70% of China's GDP growth. Regarding production, while the economy depended mainly on the industrial sector last year, it is now powered by a combination of the service sector and industry, with the share of the service sector growing considerably. In the first half of this year, the service sector contributed to over 60% of China's economic expansion.

Third, China's 5.5% growth was propelled by innovation and a shift in its development mode. As the innovation-driven development strategy was further implemented, new growth drivers continuously emerged, lending strong support to high-quality development. In the first half of this year, investment in high-tech industries rose 12.5% year on year, the added value of information transmission, software, and information technology services increased 12.9%, and online retail sales of physical goods grew 10.8%. Meanwhile, China's efforts toward green transformation have yielded significant results, considerably bolstering economic growth.

Judging from the environmental quality data in the first half of the year, the percentage of days with good air quality remains at a relatively high level. Among the national surface water sections monitored by the state, the proportion of sections with excellent and good water quality increased by 2.1% year-on-year. In the first half of the year, the output of new energy vehicles and solar cell products increased by 35% and 54.5%, respectively. Energy efficiency also continued to improve, with energy consumption per unit of GDP decreasing by 0.4% year on year in the same period.

Fourth, China's 5.5% growth stems from a high level of opening up and improved trade structure. Despite a sluggish global economic recovery and a slowdown in global trade and investment, China has actively enhanced its high-level opening up and fostered an upgrade in its trade structure. The nation has also strengthened economic and trade exchanges with other countries worldwide, grounded in principles of mutual benefit and win-win cooperation, leading to further progress. In the first half of the year, China's total goods imports and exports rose by 2.1% year on year, in which the proportion of general trade, carrying higher added value, in the total import and export value increased to 65.5%. The development of trade has diversified. China's trade in goods with nations along the Belt and Road Initiative in the first half of 2023 grew by 9.8% year on year, and the total imports and exports to Latin America and Africa increased by 7% and 10.5%, respectively. Cross-border e-commerce and other new foreign trade business models are rapidly evolving.

Fifth, China's 5.5% growth is driven by expanding employment and improvements in people's livelihoods. So far this year, China's urban surveyed unemployment rate decreased to 5.2% in June, mirroring the pre-pandemic level. Rising employment has resulted in higher resident income. In the first half of the year, China's per capita disposable income of both urban and rural residents grew by 5.8%, markedly faster than last year. The economic recovery has incited a higher propensity among consumers to spend, subsequently leading to an increase in consumer spending. In the first half of the year, China's per capita consumption expenditure rose by 7.6%.

Sixth, China's 5.5% growth is characterized by consolidated food and energy security. Since the start of this year, all parties have dutifully contributed to grain production. Even in the face of heavy rain during the harvest period, a plentiful harvest was secured, with the grain output achieving the second-highest in history. This laid a solid foundation for "Chinese people to hold their rice bowls firmly in their own hands." Greater efforts have been exerted to ensure energy supply. In the first half of the year, primary energy production grew by 2.7% year on year, with the output of raw coal, crude oil, and natural gas increasing by 4.4%, 2.1% and 5.4%, respectively. This effectively ensured the energy supply for production and daily life. Thank you.

Cover News:

Statistics show that China's CPI came in flat in June compared with the same period last year, and the producer price index (PPI) fell by 5.4% year on year. Does this mean that deflation is coming? What's your assessment of the price issue at present? Thank you.

Fu Linghui:

Many people have paid considerable attention to the price issue, and there is a lot of discussion about deflation. As I have said at previous press conferences, generally speaking, deflation is not currently apparent in China and is not expected to emerge in the next stage. Even though prices are temporarily operating at a low level, in terms of economic growth and money supply indicators, China's economy is not currently in a state of deflation as it does not meet the necessary conditions.

Examining price itself, in the first half of the year, the sluggish global economic recovery and falling international energy prices led to a drop in domestic energy prices. Additionally, domestic car manufacturers have lowered their prices to increase sales, and pork prices have decreased. Coupled with the high base from the same period last year, the growth of China's CPI slowed down in the first half of the year. China's CPI increased by 0.7% year on year, a 0.6 percentage point lower than the previous quarter. The main characteristics are as follows. First, the growth of food prices declined. In the first half of the year, food prices rose by 2.5% year on year, 1.2 percentage points lower than the first quarter of the year. Among them, the prices of fresh fruits and poultry rose rapidly, up 7.9% and 6.4%, respectively. Due to sufficient hog production capacity, pork prices dropped in May compared to last year, with an average increase of 3.2% in the first half of the year. Second, energy prices fell. Due to a drop in international energy prices, China's energy prices fell by 3.5% in the first half of the year, with gasoline and diesel prices falling by 7.3% and 8%, respectively. Third, service prices rose slightly. Driven by the recovery of service consumption, the growth of service prices has expanded. In the first half of the year, service prices rose by 0.9% year on year, a 0.1 percentage point higher than the first quarter of the year, with prices for flight tickets, hotel accommodation, and tourism rising by 20.2%, 8.6%, and 7.1%, respectively. Fourth, the core CPI increased steadily. In the first half of the year, the core CPI, excluding food and energy, rose by 0.7% year on year, a 0.1 percentage point lower than the first quarter.

China's CPI remained flat in June compared to the same period last year, transitioning from a 0.2% increase in the previous month to year-on-year stability, which has also drawn widespread attention. Generally speaking, a modest increase in CPI is due to a combination of international and domestic factors and is temporary. Since this year, China has fully resumed normal socio-economic activities, market demand has gradually expanded, and production supply has continued to increase. The Chinese economy has demonstrated an encouraging momentum of recovery. In terms of supply, during the epidemic, China intensified efforts to alleviate difficulties for enterprises, thereby preserving the survival of many businesses. Post-epidemic, with its complete industrial system and robust production capacity, China swiftly augmented market supply and improved employment, showing an impressive recovery in production supply. Regarding demand, impacted by the epidemic over the past three years, residents' income and corporate revenue were both affected to some extent. The recovery of corresponding market demand takes some time. The asynchronous recovery between supply and demand has led to a low level of CPI at present to a certain extent.

Imported pressures and the high base from the same period last year have also led to a temporary drop in CPI growth. Looking forward, with the recovery of China's economy, growing market demand, and smooth economic circulation, the supply-demand relationship will gradually ease. Regarding food prices, China's grain output is generally stable, which helps stabilize food prices. The seasonal increase in pork consumption demand will also spur prices to rise. Concerning manufactured goods prices, the influence of international energy prices may persist, but the impact of short-term price reductions and promotions by car manufacturers is expected to fade. In terms of service prices, as demand for services steadily expands, service prices will maintain a stable increase. In the second quarter of the year, service prices rose by 0.9% year on year, a 0.1 percentage point higher than the first quarter. Given the above factors, and as the high base factor from the same period last year gradually diminishes, price increases will progressively return to a reasonable level. Thank you.

Market News International:

The growth rate of real estate development investment declined recently. With the continuous relaxation of real estate policies, what is the trend of real estate investment in the second half of the year?

Fu Linghui:

Thank you for your question. The real estate market is an area that people are concerned about. Since the beginning of this year, all localities and government departments have followed the principle that houses are for living in, not for speculation, and implemented city-specific policies to support the rigid and upgraded demand for housing. We have actively worked to ensure the delivery of presold housing, people's livelihoods and stability. The backlog of demand for house purchases in the first quarter was released, which led to an improvement in the real estate market. In the second quarter, the real estate market gradually returned to normal operation. In the first half of the year, the overall real estate market showed a trend of stabilization. The major indicators such as real estate market sales, development investment, and in-place funds for real estate development enterprises have all improved compared to last year. In the first half of the year, the country's commercial housing sales decreased 5.3% year on year in terms of floor area, and grew 1.1% in terms of value, both significantly better than the whole of last year. The decline in sales area was significantly smaller, and the sales revenue turned from a decrease to an increase. In the first half of the year, real estate development investment decreased 7.9% year on year, and the in-place funds of real estate development enterprises fell 9.8% compared to last year, with the decline narrowing to varying degrees compared with the whole of last year.

The trend shows that as the economy sees an overall recovery and the policies for the healthy development of the real estate market take effect, this sector will gradually stabilize. On the demand side, thanks to the policy that houses are for living in, not for speculation, speculative demand for housing has been gradually repressed, while inelastic demand and demand for upgraded housing have been released in an orderly manner, which will continue to drive the development of the real estate sector. On the supply side, the business models of some real estate companies based on high leverage, high debt and high turnover are unsustainable, and supply in the real estate market is undergoing temporary adjustments. As the adjustments gradually take effect, market supply will also gradually tend toward stability. From a medium to long-term perspective, China's real estate market is transitioning from rapid development in the past to stable development, which is determined by changes in the development stages of the real estate market and adjustments to market supply and demand.

In the next stage, we must adhere to the principle that houses are for living in, not for speculation. We need to accelerate the establishment of a housing system with multiple types of suppliers and support channels that encourages both renting and buying. We will implement a long-term mechanism to promote the stable and healthy development of the real estate market, continue to support the rigid and upgraded demand for housing, regulate the development of the housing rental market, promote stability in the real estate market, and ensure people's livelihood needs are met.

Regarding your concerns about real estate investment, currently, the sector still sees a decline in the gross floor area of new projects and an increase in completed real estate space, resulting in an overall decrease in construction area. Going forward, real estate investment is expected to remain at a low level. However, as the real estate market gradually adjusts, we anticipate that real estate investment will gradually return to a reasonable level. Thank you.

CMG Voice of China:

In the first half of the year, the service sector including accommodation and catering achieved rapid growth. What are the reasons for this? How do you view the development trends of the service sector going forward? Thank you.

Fu Linghui:

Thank you for your questions. The service sector was an outstanding highlight of economic growth in the first half of the year. Since the beginning of this year, China has fully resumed normal order in its social and economic activities. With the effective implementation of policies to stabilize growth, employment and prices, the recovery of its service sector has gathered pace significantly. The modern service industry has seen overall sound development, with new growth drivers developing rapidly, and the expectations of service enterprises have been generally stable. In the first half of the year, the added value of the service sector increased 6.4% year on year, which was significantly higher than the same period last year as well as the whole of last year.

First, the contact-based service industry grew rapidly. With an increase in residents going out to shop, dine and travel, related service industries have accelerated recovery. In the first half of the year, the added value of the accommodation and catering industry, wholesale and retail industry, transportation, warehousing and postal industry increased 15.5%, 6.6% and 6.9% year on year, respectively, all maintaining a rapid growth.

Second, the modern service industry has shown a robust growth trend. Digital development continues to deepen, and the demand for information services is expanding, driving growth in related industries. In the first half of the year, the added value of the information transmission, software and information technology services industry increased 12.9% year on year. Business activities have accelerated recovery, and the demand for services such as exhibitions and tourism has increased, leading to fast growth in related service industries. In the first half of the year, the added value of the leasing and business services industry increased 10.1% year on year.

Third, the new drivers for the development of the service sector have been strengthened. With technological innovation driving growth, the high-tech service industry has seen rapid development. During the January-May period, the revenues of the technology service industry and high-tech service industry increased 12.4% and 11.9% year on year, respectively. In the first half of the year, fixed-asset investment in the high-tech service industry increased 13.9% year on year.

Fourth, the expectations of service enterprises have been generally stable. In June, the Services Business Activity Index stood at 52.8, which has remained in the expansion range for six consecutive months. As for market expectations, the expected index of business activities in the sector was 60.3, 0.2 percentage point higher than the previous month, indicating that service enterprises are optimistic about market prospects.

The service sector has recovered rapidly for several reasons. First, the country has fully resumed normal order in its social and economic activities, creating favorable conditions for the development of the service sector, especially for contact-based services and services involving social gathering. Second, economic activities such as the flow of people and logistics have become more active, significantly driving the growth of related service industries. This year, there has been a significant increase in the tourism and travel activities of residents, and the box offices of cultural performances and films have expanded rapidly. Third, the service sector has seen remarkable innovative progress, with new business forms and models developing rapidly. Technological innovation has significantly driven the growth of the high-tech service industry such as research and development, and the integration of online and offline business activities has accelerated. New service models such as online retail and livestreaming have grown rapidly, injecting new impetus into the development of the service sector. Overall, the service sector has been on track for a sound recovery, which is favorable for boosting production, improving people's livelihoods, expanding employment, and promoting stable economic growth. In the next stage, as domestic demand potential is gradually released and market confidence strengthens, the service sector will continue its good momentum of steady growth. Thank you.

Red Star News:

How was the employment situation in the first half of the year? Will it be possible to achieve the annual target for new jobs? As it is currently graduation season, have there been improvements in the employment prospects for young people? Thank you.

Fu Linghui:

Thank you for your questions. Employment is a matter of concern to many people. This year, driven by the overall improvement of the Chinese economy, the job market has been generally improved. Specifically, as the economy sustains sound recovery and the policies for stable employment continue to take effect, the labor market is becoming more active and the overall employment situation is improving.

First, the scale of employment steadily expanded. In the first half of the year, 6.78 million new jobs were created in urban areas nationwide, an increase of 240,000 year on year. The labor force participation rate of the urban population aged 16 and above has steadily increased. In June, the number of employed people in urban areas increased significantly compared with the same period of the previous year. Among them, the number of people employed in industries such as wholesale and retail, accommodation and catering, and transportation increased significantly.

Second, the surveyed urban unemployment rate decreased. In the second quarter, the average surveyed urban unemployment rate was 5.2%, down 0.3 percentage point from the first quarter. In June, the surveyed urban unemployment rate was 5.2%, 0.3 percentage point lower than the same period last year. The unemployment rate for the main employment groups was at a relatively low level. In June, the unemployment rate for the urban labor force aged 25-59 was 4.1%, which is already lower than the level before COVID-19, and the basic employment situation remained stable.

Third, the overall employment situation for migrant workers improved. In June, the unemployment rate for migrant workers with agricultural household registration was 4.9%, which is at a relatively low level since the beginning of this year. We also saw that at the end of the second quarter, there were 187.05 million rural laborers working outside their hometowns, up 3.2% year on year. This indicates that with the economic recovery, the country's workforce has shown a greater willingness to enter the labor market and land jobs.

The main reasons for the overall improvement in employment are as follows. First, the economy is recovering. In the first half of the year, China's GDP increased 5.5% year on year, a significantly faster growth rate than last year. The expansion of the economy inevitably leads to an increase in market demand, which in turn leads to an increase in labor demand from enterprises and an overall improvement in employment. Second, the service sector is growing rapidly. As mentioned earlier, the service sector involves a variety of industries, hence providing a wide range of employment opportunities. Since the beginning of this year, contact-based service industries such as transportation, accommodation, catering and tourism have shown good recovery momentum, which has significantly boosted employment. Third, the policies for stable employment have taken effect. Since the beginning of this year, the CPC Central Committee has attached great importance to employment, and all localities and government departments have implemented the employment-first policy in a detailed and effective manner. We have implemented various measures to stabilize existing employment, expand job opportunities, improve the quality of employment, and ensure basic employment needs. We have provided stronger support for enterprises to stabilize employment, improved public employment services and enhanced vocational training. All these efforts have created favorable conditions for maintaining stable employment. In addition, as the country has fully resumed normal order in its social and economic activities, offline recruitment and job hunting are becoming more convenient, which is conducive to matching the employment supply and demand, and driving employment growth.

However, we must notice the pressure brought by a huge workforce and related structural issues, as well as the dual problems of young people facing difficulties finding a job and some industries facing difficulties hiring qualified workers. Therefore, we should continue intensifying our efforts to stabilize employment. Young people's employment is important not only to the growth and accomplishment of young people themselves, but also to the development and future of our country. The CPC Central Committee has attached great importance to youth employment, emphasizing that we must give greater priority to boosting employment and business startups of young people, especially college graduates. The executive meetings of the State Council have made important decisions and requirements for ensuring employment; relevant government departments have introduced a series of policies to promote the employment of college graduates and other young people; all localities are taking swift action to ensure that the relevant policies are implemented to the fullest extent and down to the last detail. In the next stage, the employment is expected to remain generally stable due to the continuous economic recovery, the growing labor demand and the effective policies to stabilize employment. As young graduates gradually enter the workforce during the graduation season, the youth unemployment rate is expected to gradually decline. Thank you.

CNBC:

I have three questions. First, is the youth unemployment rate expected to fall next month? Second, the decline in real estate investment has expanded. How will it affect the growth of the real estate industry? Third, what is the sales volume of e-commerce live streaming in the first half of this year, and what is the year-on-year growth, and how much it accounts for in retail consumption? Thank you.

Fu Linghui:

Thank you for your question. With regard to the youth unemployment rate, from a seasonal and historical perspective, the youth unemployment rate will rise during the graduation season as college graduates gradually enter the labor market. Judging from this year's situation, in June, the youth unemployment rate was 21.3%, an overall increase compared with the previous month. Due to the mass influx of young graduates and young people entering the labor market we're likely to see next month, there may be an increase. Generally, as the graduation season passes, young people will gradually find employment. From a historical perspective, after August, the number will gradually decline. This is about youth employment.

The second question is about real estate. As I mentioned in the first question, in general, although the real estate market is still in the adjustment stage this year, the real estate market is gradually showing a stable trend compared with last year. In terms of investment, sales, and corporate funds, they have all improved to different degrees compared with last year. In the next stage, as the real estate market is gradually adjusted in place, the real estate market will gradually stabilize, and real estate investment will gradually return to a reasonable growth level.

The third question is about e-commerce livestreaming sales. I don't have the relevant information yet. You can contact the Information Office of the NBS after the conference to obtain relevant information. Thank you.

Nanfang Daily:

How do you view the performance of the domestic consumer market in the first half of the year, and how does consumption play a role in driving the economy? What is the expected trend in the next stage? Thank you.

Fu Linghui:

Thank you for your question. Consumption is also a matter of great interest to everyone. In the first half of the year, domestic consumption recovery was gaining steam. Since the beginning of this year, as the economy and society have fully returned to normal, economic recovery has improved, consumption scenarios have expanded, consumption promotion policies have taken effect, residents' consumption has steadily expanded, and market sales growth has accelerated. In the first half of the year, the total retail sales of social consumer goods exceeded 20 trillion yuan, reaching 22.8 trillion yuan, a year-on-year increase of 8.2%, growing much faster than last year. From the perspective of per capita consumption expenditure of residents, the national per capita consumption expenditure in the first half of the year saw a nominal year-on-year growth of 8.4%, 5.9 percentage points faster than the same period of the previous year. It mainly has the following features.

First, service consumption grew rapidly, and travel and contact consumption grew relatively well. With the recovery of various service consumption scenarios, residents' service consumption expenditures have increased, and catering, transportation, and tourism consumption have grown rapidly. In the first half of the year, the national residents' per capita service consumption expenditure increased by 12.7% year on year, which was significantly faster than the growth rate of all consumption expenditures, among which, transportation expenditure increased by 12.9%. In the first half of the year, the national catering revenue increased by 21.4% year on year and the operating passenger traffic increased by 56.3% year on year. During the Dragon Boat Festival this year, the number of domestic tourists and tourism revenue increased by 32.3% and 44.5%, respectively.

Second, the sales of commodities grew steadily, and the sales of upgraded goods grew rapidly. While service consumption is recovering rapidly, commodity consumption is expanding steadily, with sales of commodities that meet the developmental needs of residents growing remarkably. In the first half of the year, retail sales of goods increased by 6.8% year on year, and 80% of retail sales of enterprises above designated size maintained growth. Among them, the retail sales of upgraded commodities, such as gold-silver jewelry, sports and entertainment products, increased by 17.5% and 10.5% year on year, respectively. Consumption of bulk commodities, such as automobiles, continued to grow. In the first half of the year, the retail sales of automobiles above designated size increased by 6.8% year on year.

The third is the growth of new drivers of consumption and the expansion of green consumption and digital consumption. With the change in residents' consumption concept, the policy of promoting consumption upgrading has delivered, and consumption has continued to gather new momentum. Sales of green smart products grew rapidly. In the first half of the year, sales of new energy passenger vehicles exceeded 3 million, a year-on-year increase of 37.3%. Retail sales of low-energy household appliances and audio-visual equipment for units above the designated size increased by more than 20% year on year. Big data monitoring shows that during the 6.18 shopping festival, the turnover of smart home appliances and audio-visual equipment grew much faster. With the promotion of new business models such as live streaming sales and instant retail, online retail sales have grown rapidly. In the first half of the year, online retail sales of physical goods increased by 10.8% year on year.

Fourth, the potential in cultural and entertainment consumption has been released, and the rural market is picking up. With the orderly recovery of offline consumption scenarios, sports events, concerts, theater performances, and other recreational and sports activities have increased, driving the expansion of consumption. In the first half of the year, national per capita cultural and entertainment expenditure of residents increased by 38.5% year on year in nominal terms. The national box office increased by 52.9% year on year, and attendance increased by 51.8%. At the same time, rural revitalization is advancing steadily, and the rural consumer market remains active. In the first half of the year, the retail sales of consumer goods in rural areas increased by 8.4% year on year, faster than that in urban areas, and the retail sales of cosmetics and gold-silver jewelry in units above designated size in rural areas also grew faster than urban areas. The development of rural e-commerce is accelerating. Big data monitoring shows that the growth rate of online retail sales in rural areas during the 618 (June 18) shopping festival was faster than that of all online retail sales.

In general, the consumption potential was gradually released in the first half of the year, and the recovery of consumption showed positive results, which promoted economic development and improvement of people's livelihood. From the perspective of the whole year, there are many favorable conditions to support the growth of consumption, and consumption is expected to continue to expand. One is the huge consumption potential. At present, China is experiencing a rapid upgrade in its consumption structure. With the steady advancement of urbanization, effective implementation of rural revitalization, and continuous improvement in consumption-related infrastructure, all these factors are conducive to the release of consumption potential. The second is the gradual increase in consumption capacity. Since the beginning of this year, the economic recovery and the employment situation have improved, and residents' income has continued to increase, which is conducive to enhancing residents' consumption capacity and willingness to consume. Third, the consumption environment continued to improve. The economy and society have fully returned to normal. Consumption scenarios have continued to expand, and new ones have continued to emerge, bringing vitality to the recovery of consumption. At the same time, various regions and departments are actively promulgating and implementing policies to promote consumption and maintain a good consumption order, which is conducive to enhancing consumer confidence. It should also be noted that the new consumption growth points represented by green consumption and smart product consumption are gradually forming, which will help promote positive developments in consumption.

In the next stage, to further release the consumption potential, we must do everything possible to increase the income of urban and rural residents, continue to implement consumption promotion policies, optimize the consumption environment, increase the supply of high-quality consumption products, cultivate and expand emerging consumption, and promote stable, sustainable, and healthy economic development. Thank you.

Global Times:

Since the beginning of this year, the growth rate of investment has continued to slow down. What is the main reason behind this? What do you think of the investment data in the first half of the year? And what is the outlook for future investment growth? Thank you.

Fu Linghui:

Thank you for your question. Investment is an important field for expanding domestic demand. Since the beginning of this year, due to the adjustments to the real estate market, the growth rate of fixed asset investment has slowed down, but all regions and departments have implemented the plans and arrangements of the Party Central Committee to actively expand effective investment, optimize the investment structure, promote major infrastructure construction, support enterprises to increase investment in innovation, and maintain sustainable growth of fixed asset investment. In the first half of the year, the fixed asset investment increased by 3.8% year on year, the investment structure continued to be optimized, and investment in key areas continued to strengthen.

First, infrastructure investment grew rapidly. Concerted efforts have been made to promote major infrastructure construction, such as transportation and water conservancy, and the results became more evident. In the first half of the year, infrastructure investment increased by 7.2% year on year, of which investment in railway transportation and water conservancy management increased by 20.5% and 9.6%, respectively. The construction of new infrastructure moved forward steadily, laying a good foundation for long-term economic and social development. In the first half of the year, investment in new infrastructure construction increased by 16.2% year on year, of which investment in new information infrastructure such as 5G and data centers increased by 13.1%, and investment in new integrated infrastructure such as industrial internet and smart transportation increased by 34.1%.

Second, manufacturing investment continued to grow. The manufacturing industry is showing strong momentum in upgrading and development, and investment in capital and technology-intensive industries is growing rather rapidly. In the first half of the year, manufacturing investment increased by 6% year on year, of which investment in equipment manufacturing increased by 14.4%, playing a significant role in supporting the growth of investment in manufacturing. The pace of green transformation of the manufacturing industry has accelerated, and investment in new energy vehicles, lithium battery manufacturing and other industries has maintained rapid growth. In the first half of the year, investment in automobile manufacturing and electrical machinery and equipment manufacturing increased by 20% and 38.9%, respectively, year on year.

Third, the innovation investment demonstrated good growth momentum. Investment in innovation represented by high-tech industries and technical services, continued to increase, and its role in supporting investment growth was enhanced. In the first half of the year, investment in high-tech industries increased by 12.5% year on year, significantly faster than the growth of total investment. Enterprises' growing demand for technical services drives the continuous increase of investment in related industries. In the first half of the year, investment in professional technology and technological achievements transformation increased by 51.6% and 46.3% year on year, respectively.

Fourth, investment in emerging fields expanded. As the digital transformation of the economy continues to deepen, related investments have maintained rapid growth. In the first half of the year, investment in electronics and communication equipment manufacturing and e-commerce services increased by 14.2% and 22.2%, respectively. The green transformation of energy has accelerated, and investment in clean power has increased. In the first half of the year, investment in clean power increased by 40.5% year on year, of which investment in solar and wind increased by 84.4% and 16%, respectively.

All these show that although investment growth has slowed this year due to multiple factors, the investment structure has continued to be optimized, and its support for future development has gradually increased. In the next stage, we will continue to give full play to the role of government investment and policy incentives and guidance, effectively stimulate private investment, continue to optimize the investment structure, and improve investment efficiency to promote high-quality economic development. Thank you.

China Financial and Economic News:

China will launch the fifth national economic census this year. Could you please provide an update on the current progress of the census? Thank you.

Fu Linghui:

Thank you for your question and your interest in the economic census. The fifth national economic census is a significant survey of our country's economic situation and strength as China embarks on a new journey of comprehensively building a modern socialist country. On July 7, the State Council held the first plenary meeting of the Leading Group for the Fifth National Economic Census, along with a nationwide teleconference. During these meetings, new plans for implementing and deploying the economic census work were discussed, resulting in further comprehensive mobilization. All regions and relevant departments have diligently adhered to the guiding principles of these meetings, working closely together to advance all aspects of the fifth national economic census.

In the next stage, the focus of the economic census work will be on conducting the inventory survey for various units. This survey aims to gather information on the basic situation and distribution of various legal entities engaged in economic and social activities within China, including industrial activity units, as well as self-employed individuals engaged in secondary and tertiary industry activities. The main object is to accurately identify and categorize the subjects for the fifth national economic census, clarify the registration responsibilities of local census agencies and relevant departments, ensure precise definition and coverage of the types of subjects to be surveyed, and avoid duplication or omission of units for the census. These efforts will lay the foundation for subsequent economic census activities.

The unit inventory survey is an essential foundational task that ensures the smooth implementation of census registration. Based on the results of the unit survey, the census unit list and the sample list of self-employed individuals can be compiled. This aids in clarifying the types of census forms to be filled out by census subjects. The quality of the survey work is directly related to the success of the census initiative.

The subjects of the unit inventory survey encompass all legal entities engaged in economic and social activities within China, including industrial activity units and self-employed individuals involved in the secondary and tertiary industries. The primary method involves county-level census agencies organizing census enumerators to conduct "door-to-door" surveys using handheld electronic devices, collecting information, and filling out census forms based on different categories. The survey work primarily includes selecting and training census enumerators, dividing census areas, compiling of census registers, conducting "door-to-door" surveys and verifying data. These activities will take place from June to December of this year, with a specific emphasis on the "door-to-door" survey primarily conducted from August to October. During this period, census personnel wearing Census Enumerator Certificates and Census Supervisor Certificates will come to collect information for the census forms.

I would like to take this opportunity to request the full cooperation of all survey subjects in supporting the door-to-door survey work. Please prepare relevant certificates and documents in advance and provide timely and accurate information, which will be used solely for the census purposes. All levels of census agencies and personnel are committed to maintaining the confidentiality of the provided information. Let's work together to complete the unit survey successfully. I would like to extend our heartfelt gratitude for everyone's immense support towards the economic census work. Thank you.

National Business Daily:

Despite the risk of shrinking external demand, China's foreign trade volume in the first half of this year reached a record high of 20.1 trillion yuan. Could you please analyze the reasons behind this? Also, how does the NBS foresee the trend of foreign trade for the second half of the year? Thank you.

Fu Linghui:

Thank you for your questions. Foreign trade is something that everyone is paying close attention to as well. Since the beginning of this year, the global economic recovery has been weak, and major economies have tightened monetary policies to curb high inflation, which has aggravated the contraction in global demand. The global manufacturing PMI's new export orders index has consistently remained in the contraction zone, and sluggish global trade has inevitably affected China's import and export growth. However, China's foreign trade operation remains robust and dynamic despite these pressures. Thanks to various measures to stabilize foreign trade, China's import and export volume exceeded 20 trillion yuan in the first half of the year. The total value of goods imports and exports reached 20.1 trillion yuan, setting a new historical record for the same period and showing a year-on-year growth of 2.1%. Exports grew by 3.7%, and China's share in global exports remained relatively stable. In the next stage, despite continuous pressure from shrinking external demand, China's foreign trade is expected to withstand the challenges and progress toward the goal of stability and quality improvement.

First, China's production and supply capabilities are relatively robust. China has a comprehensive industrial system with well-developed supporting industries, strong organizational capabilities, and a resilient supply chain. This provides a solid foundation for foreign trade development. Looking at the situation in the first half of the year, China's traditional export products continued to grow. In the first half of the year, China's exports of mechanical and electrical products increased by 6.3% year on year.

Second, the results of high-level opening-up are continuously manifesting. China remains steadfast in opening wider to the outside world, expanding economic and trade exchanges with countries around the world based on mutual benefit and win-win cooperation. This includes advancing Belt and Road cooperation, promoting the development of free trade zones, and expanding the growth space for foreign trade. In the first half of the year, China's imports and exports with countries along the Belt and Road increased by 9.8%. Additionally, exports and imports with Africa and Latin America grew by 10.5% and 7%, respectively.

Third, new drivers for foreign trade growth are gradually emerging. As China's industrial upgrading continues, the steady improvement of market competitiveness for new products has become a new highlight driving foreign trade growth. In the first half of the year, exports of "three new major export products," namely electric passenger cars, lithium batteries, and solar cells, increased by 61.6% year on year. Simultaneously, new forms of foreign trade, such as cross-border e-commerce, are developing rapidly, creating favorable conditions for improving the quality and expanding the scale of foreign trade.

It's also worth noting that various localities and departments have taken proactive measures to ensure stable and well-structured foreign trade. These measures have helped foreign trade entities actively cope with the contraction of external demand, seize market opportunities, and stabilize import and export trade. In the first half of the year, imports and exports by private enterprises grew by 8.9% year on year, playing a positive role in stabilizing foreign trade.

Overall, while foreign trade is experiencing growth pressures, there are also many favorable conditions. Going forward, we need to effectively implement various policies to stabilize foreign trade and strive to achieve our goal of promoting stability and improving the quality of foreign trade. Thank you.

Bloomberg:

My question is about wages. So, wage growth is about 5.8%, I think, which is slightly faster than GDP but is still not back to the pre-pandemic levels of above 8% expansion. How will that affect the sustainability of any consumption recovery? And how do you expect that consumption will grow faster than GDP when wages are basically only growing as fast as GDP? Thank you.

Fu Linghui:

Thank you for your questions. The wage growth you mentioned likely refers to the real increase in residents' income. In the first half of the year, the nationwide per capita disposable income of residents saw real growth of 5.8% and nominal growth of 6.5% year on year, maintaining a relatively rapid growth rate. About the pre-pandemic levels of 8% expansion that you mentioned, I believe that was nominal rather than real growth. As for the situation this year, China's economy has shaken off the impact of the pandemic, demonstrating a momentum of recovery, and is gradually picking up. Residents have witnessed expanding employment channels and steadily increasing incomes. In the first half of the year, per capita disposable income of residents grew 5.8% year on year, 2 percentage points faster than that of the first quarter. This is the real growth rate, taking into account price factors, which indicates a steady rise in residents' incomes and its positive role in boosting consumption. As production, allocation, circulation, consumption, and other aspects of economic activity gradually improve, income growth will further stimulate and support consumption.

Overall, final consumption expenditure accounted for 77.2% of economic growth in the first half of the year, and it is expected to continue to be a driving force in the upcoming period. China's consumption structure is undergoing rapid evolution and development. The increase in incomes and the enhancement of the consumption environment are conducive to the sustained expansion of consumption, and they will play an increasingly critical role in facilitating the transition toward high-quality economic growth. Thank you.

Shou Xiaoli:

We will have one last question.

ThePaper.cn:

In the first half of this year, the profits of China's industrial enterprises above designated size continued to fall by double digits. When can these enterprises bear less pressure? What does the NBS expect the trend to be in the year's second half? Thank you.

Fu Linghui: 

Thank you for your questions. Since the beginning of this year, the overall performance of the industrial sector has seen a stable recovery. The progress of the industrial sector and corporate performance are intimately connected. As market demand gradually recovered during the first half of the year, and the measures put in place to strengthen and improve the real economy as well as promote industrial transformation and upgrading took effect, overall industrial production maintained stable growth. Moreover, the structure was optimized, the new growth momentum was steadily gathered, and the development quality improved steadily.

First, industrial production has experienced a gradual recovery. The total value added by industrial enterprises above designated size grew by 3.8% year on year in the first half of the year, which is 0.8 percentage point faster than in the first quarter. Among the 41 major industrial sectors, 26 maintained growth in the year's first half, accounting for 63.4% of the total. 331 out of 620 major industrial products saw production growth. In other words, more than 50% of them achieved growth.

Second, steady progress has been made in industrial upgrading. The technological intensity of industrial production continues to improve. In the first half of the year, the value added by equipment manufacturing increased by 6.5% year on year, 2.7 percentage points faster than that of industrial enterprises above designated size. It contributed to 53.9% of the growth of all industrial enterprises above designated size and effectively supported the recovery of industrial production. Specifically, the value added of electrical machinery and equipment manufacturing saw a year-on-year increase of 15.7%, and that of auto manufacturing grew by 13.1% year on year.

Third, advanced manufacturing has experienced relatively rapid growth. With the growth momentum of the aviation and aerospace sectors, and the commercial operation of China's self-developed large passenger aircraft, the enabling role of advanced manufacturing has become increasingly prominent. In the first half of the year, the value added by aircraft, spacecraft, and equipment manufacturing saw a year-on-year increase of 22.9%. All sectors have strengthened efforts to make breakthroughs in key fields and links concerning semiconductors, and related production has grown rapidly. In the first half of the year, the manufacturing of special equipment for semiconductor devices and electronic and electromechanical components increased by 30.9% and 46.5% year on year, respectively.

Fourth, the green transformation of industries has witnessed notable improvement. The new energy vehicle (NEV) sector has shown sound momentum and helped drive the growth of related products. In the first half of the year, NEV output increased by 35% year on year, and that of lithium-ion batteries and charging piles surged 46.4% and 53.1% year on year, respectively. Products related to clean energy also saw rapid growth. In the first half of the year, the output of photovoltaic cells, wind turbines, and hydroelectric generators increased by 54.5%, 48.1%, and 32.3% year on year, respectively.

Fifth, the production of intelligent products and new materials has picked up. Intelligent consumer goods have experienced rapid production growth. In the first half of the year, the manufacturing of smart consumer equipment increased by 12%. Specifically, the manufacturing of intelligent vehicle equipment and unmanned aerial vehicles grew by 36.3% and 12.5%, respectively. The supply of new materials also increased. In the first half of the year, the output of ultra-clear glass, polysilicon, and monocrystalline silicon for the solar energy industry increased by 89.1%, 86.4%, and 54.1%, respectively.

Regarding the profits of industrial enterprises mentioned in your question, we believe that the sustained recovery of industrial production has laid a solid foundation for improving enterprise profits. From January to May, the decline in profits of industrial enterprises above designated size narrowed by 1.8 percentage points compared to that from January to April. This trend constitutes an improvement for three consecutive months. First, the profits of equipment manufacturing and other manufacturing sectors continued to recover. During the January-May period, various policy measures designed to bolster manufacturing took effect. The decline in profits in the manufacturing sector narrowed by 3.3 percentage points compared to that in the first four months. This reduction resulted in a decline in the profit decrease of industrial enterprises above designated size by 2.5 percentage points, which played a significant role in improving the profits of industrial enterprises. Among them, the profits of equipment manufacturing in May saw a year-on-year increase of 15.2%, maintaining double-digit growth for two consecutive months. Second, profits in the electricity, gas, and water-related sectors grew rapidly. From January to May, profits from the production and supply of electricity, heat, gas, and water increased by 34.8% year on year, 0.7 percentage point faster than during the January-April period. This growth has continuously driven the profit increase of industrial enterprises.

Although industrial production is currently recovering steadily and the quality of development continues to improve, the level of connection between industrial production and sales still needs to be enhanced. Despite anticipated challenges, China is expected to see an increasingly solid foundation for the recovery of the industrial economy and experience continuous improvements in the profitability of industrial enterprises. This positive outlook can be attributed to factors such as economic recovery, increased market demand, enhanced capacity for innovative development, the emergence of new growth drivers, and the implementation of policies and measures aimed at strengthening the industrial sector. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu and friends from the media. Today's press conference is hereby concluded. Goodbye.

Translated and edited by Xu Xiaoxuan, Wang Yiming, Zhang Jiaqi, Zhang Rui, Cui Can, Ma Yujia, Liu Caiyi, Wang Wei, Yan Bin, Liu Qiang, Li Huiru, Zhu Bochen, Zhou Jing, 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. Liu Guoqiang, deputy governor of the People's Bank of China (PBC)

Ms. Ruan Jianhong, spokesperson of the PBC and director general of the Statistics and Analysis Department of the PBC

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

Chairperson:

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

Date:

July 14, 2023

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Liu Guoqiang, deputy governor of the People's Bank of China (PBC). Mr. Liu will brief you on China's financial statistics in the first half of 2023 and take your questions. Also joining us today are Ms. Ruan Jianhong, spokesperson of the PBC and director general of the Statistics and Analysis Department of the PBC; and Mr. Zou Lan, director general of the Monetary Policy Department of the PBC.

Now, I will give the floor to Mr. Liu Guoqiang.

Liu Guoqiang:

Friends from the media, good morning. Since the beginning of this year, the PBC has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and resolutely implemented the decisions of the Central Committee of the Communist Party of China (CPC) and the State Council. It has remained committed to the general principle of pursuing progress while ensuring stability, made prudent monetary policy more targeted and effective, strengthened counter-cyclical regulation, and worked to improve the overall economic performance. Throughout the first half of this year, the financial data saw a notable increase in the first quarter, followed by a slowdown in April and May, and a subsequent rise in June. In general, the financial sector remains stable with reasonably ample liquidity and a constantly improving credit loan structure. The financing costs of the real economy have fallen steadily, and the financial sector's enabling role for economic growth has continued to strengthen.

In terms of the total amount, we have maintained a proper and adequate level of liquidity and stabilized financial support to bolster the real economy. In the first half of this year, the PBC cut the reserve requirement ratio (RRR) for financial institutions by 0.25 percentage point. The move has unleashed long-term liquidity, enhanced the stability and sustainability of the growth of credit loans, and effectively served the real economy. At the end of June, the broad measure of money supply (M2), the existing amount of aggregate financing for the economy, and RMB loans had increased by 11.3%, 9% and 11.3% year on year, respectively. In the first half of the year, the additional amount of aggregate financing for the economy amounted to 21.55 trillion yuan, 475.4 billion yuan more than the previous year; and RMB loans increased by 15.73 trillion yuan, 2.02 trillion yuan more than the previous year.

In terms of structure, the composition of credit loans keeps improving, which has enhanced the growth momentum of economic development. Since the beginning of this year, the PBC has fully leveraged the dual functions of its monetary policy's aggregate and structure. Its structural monetary policy is well focused, reasonably allocated, and properly implemented. The PBC continues to introduce inclusive loans granted to micro and small enterprises (MSEs) and the loan support scheme which ensures the delivery of housing projects. The PBC will keep strengthening support for key areas and weak links in the national economy, including inclusive financing, sci-tech innovation, green development and infrastructure. At the end of June, the balance of medium and long-term loans granted to the manufacturing sector surged 40.3% over the previous year, 29 percentage points higher than the growth rate of various loans; that granted to the infrastructure sector increased by 15.8% year on year, 4.5 percentage points higher than various loans; and that granted to small and medium-sized enterprises (SMEs) that produce new and unique products increased by 20.4% year on year, 9.1 percentage points higher than various loans. The balance of inclusive loans granted to MSEs increased by 26.1% year on year, 14.8 percentage points higher than various loans. The number of entities granted such inclusive loans reached 59.35 million, close to the 60-million-threshold, up 13.3% year on year. In the first half of the year, the total amount of personal housing loans granted increased by 516.4 billion yuan year on year.

In terms of interest rate, the financing costs of the real economy have dropped steadily. In the first half of the year, the PBC kept fine-tuning market-oriented interest rate formation as well as the transmission mechanism for interest rates, and optimized its policy interest rate system. The PBC leveraged the reform effect and guiding role of the loan prime rate (LPR), and lowered the one-year and five-year LPR by 10 base points, which resulted in a steady decline in the costs of enterprises' financing activities and residents' credit loans. In the first half of the year, the weighted average interest rate of newly issued enterprise loans was 3.96%, 25 base points lower than the same period last year; and that of personal housing loans was 4.18%, 107 base points lower than the same period last year.

Moving forward, the PBC will keep implementing a prudent monetary policy in a targeted and effective manner. It will make good use of cross-cyclical adjustments and fully leveraging the effectiveness of monetary and credit policies. The PBC will coordinate efforts to promote the continued improvement in economic performance, consistently enhance the growth momentum, improve public expectations, defuse risks and hidden dangers, and facilitate a positive economic cycle.

Thank you.

Xing Huina:

Thank you, Mr. Liu. Now the floor is open for questions. Please identify the media organization you work for before asking your questions.

Asahi Shimbun:

China's economy has continued to recover since the beginning of this year, yet experts have pointed out the recovery has been slower than anticipated. How does the PBC perceive the speed of recovery for the second half of this year? What financial measures should be introduced during this period?

Thank you for your questions. Currently, the macroeconomic data is experiencing a slowdown, which has sparked heated discussion. Indeed, we should not evade questions that truly exist. At the same time, we also believe that analyzing the macroeconomy requires not only a question-oriented approach, but also a systemic mindset, and we need to give attention to the positive side. For example, financial data has seen a significant rebound with multiple highlights, and the overall macroeconomic performance has also achieved an upturn. First, the financial sector continues to serve as a crucial contributor to infrastructure project investment. At the end of June, medium- and long-term lending to the infrastructure sector increased 15.8% year on year, which has effectively facilitated the construction of major projects. Over 70% of the 739.9 billion-yuan policy-backed and developmental financial instruments have been allocated. The purchasing managers' index (PMI) for the construction sector remained high in June, at over 55%. Second, residents' loans experienced reasonable growth with a steady decline in costs, which has contributed to a steady recovery in consumption. In the first half of this year, short-term personal loans grew by 300.9 billion yuan, a year on year increase of 401.9 billion yuan. The mortgage rates for personal housing loans was 4.11% in June, a decrease of 0.51 percentage point year on year. The demand for big-ticket consumer goods continues to be unleashed. Online consumption saw rapid growth, and the consumption of services keeps picking up. Since July, the passenger flow by railway and air amid the summer travel rush increased significantly compared with the same period of 2019. Third, targeted support for key areas, such as private MSEs and the manufacturing sector, has been strengthened, while both the overall export and private enterprises have stayed resilient. At the end of June, the balance of inclusive loans granted to MSEs increased by 26.1% year on year. The balance of medium and long-term loans allocated to the manufacturing industry surged 40.3% compared with the previous year. As the momentum of the global economic recovery wanes and the global trade volume registers negative growth, many countries are seeing a decline in exports, with some experiencing a drastic drop. Despite the situation, China's dollar-denominated exports of goods still achieved positive growth in the first half of this year. Notably, the exports of private business brands increased by 11.5%.

The fundamentals driving China's long-term growth remain robust, and we should have unwavering confidence in achieving high-quality development. The challenges confronting the current economy are normal phenomena in the post-pandemic recovery process. Globally, both consumption and economic recovery are expected to be gradual, with a general belief that it takes about a year for normality to be restored. Meanwhile, in China, the stable transition from the pandemic has spanned approximately six months, with positive trends already evident in economic cycles, residents' incomes, and consumer spending. While the global political and economic situation remains complex, China remains robust domestic development potential. Additionally, overall market expectations remain steady, effectively navigating external environmental shifts. From a long-term perspective, the economy is increasingly leaning towards high-quality development. The impetus from technological innovation continues to strengthen, green transformation progresses steadily, the consumer market gradually heats up and upgrades, and the momentum for high-quality development keeps accumulating. This presents a good opportunity for structural adjustments in the economy.

Against the backdrop of high external economic inflation, prices in China have remained relatively stable. Over the recent months, we have noticed a downward trend in prices, although deflation has not occurred. The year-on-year increase in the Consumer Price Index (CPI) has shown fluctuations and is projected to continue its decrease into July. This is primarily attributable to temporary factors such as lag in demand recovery and base effects. Our macroeconomic environment is witnessing a steady recovery, with M2 experiencing sustained growth, setting it apart from typical deflationary periods in history. Therefore, it can be affirmed that deflation is not currently taking place, and there is no risk of deflation in the second half of the year. Our monetary conditions are reasonable and moderate, and residents' expectations remain steady. As policy measures continue to yield results, the gap between supply and demand will narrow further, and the CPI is projected to ascend gradually after August. The overall trend of the CPI for the entire year is expected to follow a U-shaped pattern. Prices are likely to decline initially and then rise throughout the year, approaching 1% by the end of the year.

In accordance with the arrangements of the CPC Central Committee and the State Council to intensify macroeconomic policy regulation, stimulate effective demand, and enhance policy reserves, a prudent monetary policy will persist in being precise and potent. There remains ample policy space to address unexpected challenges and changes. Concerning overall quantity, we will reasonably manage the pace and intensity in response to changing circumstances, bolster countercyclical adjustments, and create a favorable monetary and financial environment for continuous economic recovery and improvement. Regarding prices, we will strive for steadily decreasing financing costs for the real economy, effectively supporting the expansion of potential demand. Structurally, our focus will be on key areas, adopting a reasonable and moderate approach, and discerning the appropriate timing for advancement or withdrawal. Financial support for key sectors such as small- and micro-sized private enterprises, green innovation, and others will continue to grow. The 16 supportive measures intended to ensure the steady development of the real estate sector have been definitively extended. Previously introduced policy measures are starting to take effect, and we need to exhibit patience and confidence in achieving sustained and stable economic growth. Thank you.

Cover News:

How would you comment on the credit supply situation in the first half of the year? Which sectors have received the majority of credit allocations? What changes are expected in terms of the overall quantity and structure of credit in the next steps? Thank you.

Ruan Jianhong:

Thank you for your questions. In the first half of the year, financial institutions saw a 15.73 trillion yuan increase in total loan issuance, which represents a year-on-year increase of 2.02 trillion yuan. This indicates that the financial system has further reinforced its support for the real economy.

In the first half of the year, the primary drivers of loan growth were enterprises and public institutions. Loans to these entities increased by 12.81 trillion yuan, a year-on-year increase of 1.42 trillion yuan, accounting for 81.5% of total credit growth. Meanwhile, household loans rose by 2.8 trillion yuan, a year-on-year increase of 572.3 billion yuan. This growth in household loans was largely due to increases in personal business loans and short-term consumer loans. Specifically, personal business loans increased by 2.3 trillion yuan, marking a year-on-year increase of 759.3 billion yuan, and personal short-term consumer loans increased by 300.9 billion yuan, a year-on-year increase of 401.9 billion yuan.

When examining the distribution of loans by industry, it's clear that the bulk of the increased loans were primarily directed toward key sectors such as manufacturing and infrastructure. The real estate industry also demonstrated a sustained recovery in loan growth, contributing to further optimization of the loan structure. Specifically:

The growth rate of medium- to long-term loans in the manufacturing sector has stayed at a relatively high level. By the end of June, these loans in the manufacturing sector had grown by 40.3% year on year, 10.7 percentage points higher than the same period last year and 22.3 percentage points higher than the growth rate of such loans in all industries as a whole. In the first half of the year, loans to the manufacturing sector increased by 2.15 trillion yuan, a year-on-year increase of 821.9 billion yuan. Among these, medium- to long-term loans in the high-tech manufacturing sector grew by 41.5% year on year, an increase of 11.5 percentage points compared to the same period last year. In the first half of the year, medium- to long-term loans in the high-tech manufacturing sector increased by 483.5 billion yuan, a year-on-year increase of 184.7 billion yuan.

Looking at the infrastructure industry, medium- to long-term loans have grown rapidly. By the end of June, medium- to long-term loans in the infrastructure industry increased by 15.8% year on year, which was 3.3 percentage points higher than the same period last year. In the first half of the year, there was an additional 3.25 trillion yuan in loans, with a year-on-year increase of 1.1 trillion yuan.

The growth rate of medium- to long-term loans in the real estate industry continues to rise. By the end of June, these loans in the real estate industry increased by 7.1%, a 0.2 percentage point rise from the previous month and up 8.5 percentage points from the same period last year. This marks the 11th consecutive month of increasing growth rates. In the first half of the year, the real estate industry saw an increase of 628.7 billion yuan in medium- to long-term loans, a year-on-year increase of 459.0 billion yuan.

Next, the People's Bank of China will continue effectively utilizing the dual functions of monetary policy tools, focusing on the total quantity and structural aspects. The aim is to maintain a reasonable and steady growth of credit, while consistently enhancing support for key sectors and addressing weak areas in the national economy, so as to contribute to further improving the operation of the real economy.

Thank you!

Market News International: 

Recently, many banks have cut deposit rates again. What is the impact of the reduction in deposit rates on households' fixed-term deposits and their medium- and long-term loans? And what is the future trend of these two items? Thank you. 

Zou Lan:

Thank you for your questions. In April 2022, under the guidance of the People's Bank of China, members of the interest rate self-regulatory mechanism formed a market-based adjustment mechanism for deposit rates. This mechanism guides banks to adjust deposit interest rates reasonably based on changes in market interest rates. Following this mechanism, banks conducted the first round of independent adjustments to deposit interest rates from September 2022 to April 2023. In recent months, there has been a significant increase in RMB deposits, accompanied by a continuous decline in market interest rates. However, the shift towards fixed-term and long-term deposits has increased the costs of liabilities of the banks, causing a net interest margin narrowing to around 1.7%. In response, state-owned commercial banks and joint-equity commercial banks have proactively lowered certain term deposit rates, according to changes in market supply and demand, interest rate trends, and their own business conditions. This proactive adjustment by banks demonstrates the effectiveness of the market-based adjustment mechanism for deposit rates, signifying that deposit rates are more market based.

After the proactive cut on deposit interest rates by banks, these rates have continued to exhibit a slight downward trend. In June 2023, the weighted average interest rates for demand deposits were recorded at 0.23%, marking a decrease of a 0.09 percentage point year on year. Meanwhile, the weighted average interest rates for time deposits stood at 2.22%, down a 0.12 percentage point year on year. This trend contributes to strengthened control over liability costs, creating favorable conditions for reducing loan interest rates for enterprises and enhancing banks' capability and sustainability to support the real economy. Concurrently, under the coordination of the self-disciplinary mechanism for setting interest rates, all types of banks have orderly adjusted their deposit interest rates. Despite these changes, deposits in banks continue to increase, and their distribution remains largely stable, effectively preserving a sound competitive order.

Next, the PBC will persist in deepening market-based interest rate reforms. It will continue to utilize the critical role of the market-based adjustment mechanism for deposit interest rates, guide the self-disciplinary mechanism for setting interest rates to maintain competitive order in the deposit market, promote stable bank liability costs, and enhance its ability to provide sustained financial support for the real economy. Concurrently, the PBC will encourage commercial banks to facilitate over-the-counter sales and transactions of treasury and local government bonds. They will also provide bilateral quotations to customers selling long-term bonds to ensure the ease of selling off these bonds at any time and increase the range of financial products featuring security, profitability, and liquidity available for choice. Thank you.

CCTV:

On June 30, the PBC decided to raise the quotas for re-lending and additional subsidized loans to support agriculture and small enterprises by a total of 200 billion yuan to ramp up financial support for agriculture, rural areas, and farmers, small and micro businesses, and private enterprises. Since the beginning of this year, what measures have been taken to provide financial support for small and micro businesses and private enterprises? How effective have these measures been? Thank you.

Zou Lan:

I will take your questions. Since the start of this year, the PBC has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. We have fully grasped the guiding principles of the 20th CPC National Congress and the Central Economic Work Conference. In doing so, we have earnestly worked to implement the commitment to consolidating and developing the public sector while also encouraging, supporting, and guiding the development of the non-public sector. Our top priority has been to provide financial support for the development of micro and small businesses and private enterprises, which has yielded positive results.

First, the PBC has employed a variety of policy instruments to fully support the development of micro and small businesses and private enterprises. The PBC has continued to augment support for re-lending. On June 30, the PBC increased the quotas for re-lending and additional subsidized loans to support agriculture and small enterprises by a total of 200 billion yuan. The PBC has continued to leverage instruments to support inclusive loans to micro and small businesses (MSBs), providing locally incorporated financial institutions with 39.8 billion yuan in funds and increasing inclusive MSB loans by 2.2 trillion yuan. Recently, the PBC has extended the term for the implementation of instruments to support inclusive loans to micro and small businesses from the end of June this year to the end of 2024, and made some improvements and adjustments, continuing to encourage banks to support the financing of micro and small businesses.  

Second, the PBC has continued to implement the project to enhance its capacity to provide financial services for micro, small and medium enterprises (MSMEs). The PBC has guided financial institutions to optimize their resource allocation and internal policy arrangements, enhanced technological applications, and advanced the establishment of a sustainable mechanism for promoting the confidence, willingness, ability, and professionalism of banks in issuing loans. Currently, national commercial banks offer a discount of no less than 0.5% in funds transfer pricing for MSB loans, and the weight of inclusive finance in the integrated performance evaluation of the branches and subsidiaries of banks is no less than 10%.

Third, the PBC has opened up diversified financing channels to ensure that enterprises have easier access to financing. The PBC has promoted the CRC Receivables Financing Service Platform and supported MSMEs to secure funds 28,000 times from January to June this year, amounting to 863.6 billion yuan. It has actively leveraged the functions of the supply chain bill platform to support enterprises in obtaining financing through bank discounting from January to June this year, amounting to 12.8 billion yuan. The PBC has upgraded and expanded the instruments for supporting bond financing for private businesses and has supported private enterprises to issue bonds totaling 28.4 billion yuan since the expansion was launched in November 2022. The PBC has increased the sources of credit support for small businesses from banks and, from January to June, has supported commercial banks to issue special financial bonds worth 124 billion yuan for MSBs.

Through the joint efforts of all parties, the financing of micro and small businesses and private enterprises has seen increases in volume, expanded coverage, and reduced prices. As of the end of June 2023, the outstanding inclusive MSB loans reached 27.7 trillion yuan, marking a year-on-year increase of 26%. A total of 59.35 million MSBs received these inclusive loans, reflecting a year-on-year increase of 13.3%. In May, the weighted average interest rate for newly issued inclusive MSB loans was 4.57%, marking a relatively low historical level. 

Next, the PBC will thoroughly study and implement the guiding principles of the 20th CPC National Congress. We will resolutely work to consolidate and develop the public sector while encouraging, supporting, and guiding the development of the non-public sector. We will continue to do a good job in providing financial support for the development of micro and small businesses and private enterprises. On one hand, the PBC will continue to promote the implementation of instruments supporting inclusive MSB loans, leverage the role of re-lending for small businesses, and guide financial institutions to expand loans to micro and small businesses and private enterprises. On the other hand, we will further carry out the project to enhance the capacity to provide financial services for MSMEs, continue to strengthen synergy among relevant departments, and improve supporting mechanisms for sharing enterprise credit information and financing guarantees. This will enhance the willingness, ability, and sustainability of financial institutions to provide services for micro and small businesses and private enterprises.

Thank you!

CNBC: 

How is the demand for loans from real estate developers? In particular, how has the demand been affected following the introduction of the policy extending support for the stable and healthy development of the real estate market?

Zou Lan:

As you all know, some real estate developers long operated under the conditions of "high leverage, high debt, and high turnover." Unlimited expansion of assets in terms of land, ongoing construction projects, and a diverse range of operational assets has resulted in high levels of debt. When we break down the sources of their debts, we find that nearly 70% comes from advanced personal housing payments and project funding from upstream and downstream enterprises. Financial liabilities only account for 31%, with less than half of this constituted by bank loans.

In terms of the real estate credit structure of banks, the outstanding real estate loans stand at over 50 trillion yuan, with outstanding individual housing loans approaching 40 trillion yuan. Most people purchase homes for personal use and depend on household incomes to repay their loans monthly, with the non-performing loan ratio remaining consistently below 0.5%. Regarding individual housing loans for pre-sold homes with delayed delivery, due to existing laws, priority is given to safeguarding the interests of homebuyers. These loans might face certain risks, but they constitute a relatively small proportion of the total amount and their risks are under control. Outstanding real estate development loans amount to about 13 trillion yuan, among which the outstanding property development and government-subsidized housing development loans reach approximately 6 trillion yuan and their repayment is ensured. The loans to real estate developers amount to about 6 to 7 trillion yuan. As some of these real estate developers encounter financial problems, the non-performing loan ratio has increased slightly, but the loans to real estate enterprises account for a very small proportion of total bank loans.

Since the latter half of 2021, in accordance with the arrangements of the Party Central Committee and the State Council, financial authorities have collaborated with relevant departments to provide stronger support for the timely delivery of pre-sold homes. They have maintained stability in major financing channels for real estate enterprises and accelerated efforts to defuse risks in the real estate sector.

First, financial authorities have ramped up financial support to ensure the timely delivery of pre-sold homes, providing two batches of special loans totaling 350 billion yuan. They've established a program that offers special loans worth 200 billion yuan to ensure the timely completion of pre-sold housing projects. In addition, they guided commercial banks to proactively provide supporting financing to effectively drive the resumption of construction for local projects.

Second, financial authorities have maintained the stability of major financing channels such as bonds and equity. Since November last year, we have utilized the instruments for supporting bond financing for private businesses, providing credit enhancement support for private real estate enterprises to issue bonds totaling 26 billion yuan. Since the China Securities Regulatory Commission optimized policies for real estate enterprises to go public, numerous enterprises have benefitted from equity financing support.

Third, financial authorities have spearheaded the transformation and development of the real estate sector. The PBC and the National Administration of Financial Regulation have formulated the "Opinions on Financial Support for the Development of the Housing Rental Market," providing diversified, full-life-cycle financial services for home rentals. Financial authorities have taken steady strides in advancing the 100 billion yuan special loan program to support home rentals, and have piloted the program in cities including Jinan and Zhengzhou.

The real estate market has shown a stable trend since the beginning of this year, but it will still take some time to gradually digest the risks accumulated by some real estate companies. Given the current situation in the real estate market, the PBC and the National Financial Regulatory Administration recently issued a joint notice, extending the expiration dates of two policies with applicable periods in the "16 Financial Measures" to the end of December 2024. This aims to guide financial institutions to continue providing refinancing to real estate enterprises and to increase financial support for project completion and delivery. Simultaneously, to meet the needs of completing and delivering projects, the deadline for the 200 billion yuan loan support plan has been extended to the end of May 2024.

Next, the PBC will thoroughly implement the decisions and arrangements made by the CPC Central Committee and the State Council. We will adhere to the principle that "houses are for living in, not for speculation," and cooperate with relevant departments and local governments to solidly carry out the work of completing and delivering housing projects, ensuring people's livelihoods and maintaining stability. We will meet the reasonable financing needs of the industry, and continue to create a favorable financial environment for the orderly disposal of industry risks. Given the profound changes in the supply-demand relationship in China's real estate market, there is marginal room for optimizing the policies introduced during the past's long-term overheating stage. The financial sector will actively cooperate with relevant departments to strengthen policy research, adopt targeted measures based on different cities, improve policy precision, better support people's demand for buying their first home or improving their housing situation, and promote stable and healthy real estate market development. Thank you!

Southern Metropolis Daily:

The PBC recently released data on the scale of social financing in the first half of 2023. Could you please explain the characteristics of the current structure of social financing? Thank you.

Ruan Jianhong:

Thank you for the question. As of the end of June, the balance of the social financing scale stood at 365.45 trillion yuan, marking a year-on-year increase of 9%. This is a 0.5 percentage point lower than the end of the previous month and 1.9 percentage points lower than the same period last year. In the first half of the year, the increase in the social financing scale was 21.55 trillion yuan, which is 475.4 billion yuan more than the same period last year. From a structural perspective, we can observe the following characteristics:

First, there has been a surge in RMB loans issued to the real economy. In the first half of the year, RMB loans issued to the real economy increased by 15.6 trillion yuan, a rise of 1.99 trillion yuan compared to the same period last year.

Second, off-balance sheet financing has recovered, with significant increases in trust loans and undiscounted bank acceptance bills. In the first half of the year, off-balance-sheet financing rose by 182.3 billion yuan, an increase of 739.6 billion yuan compared to the same period last year. Among them, trust loans grew by 22.8 billion yuan, and undiscounted bank acceptance bills increased by 85.2 billion yuan, a rise of 398 billion yuan and 261.9 billion yuan, respectively, compared to the same period last year.

Third, there has been a decrease in net financing for government bonds. In the first half of this year, net financing for government bonds stood at 3.38 trillion yuan, a decrease of 1.27 trillion yuan compared to the same period last year. Among these, net financing for national bonds was 930.5 billion yuan, an increase of 303.7 billion yuan compared to the same period last year, whereas net financing for local government bonds was 2.45 trillion yuan, a decrease of 1.58 trillion yuan compared to the same period last year. The decrease in net financing for local government bonds is primarily related to the pace of issuance. The issuance of local government bonds was faster during the same period last year, thus resulting in a higher base.

Fourth, there has been a significant decrease in direct financing by enterprises, primarily due to a drop in net financing for corporate bonds. In the first half of the year, net financing for corporate bonds was 1.17 trillion yuan, a decrease of 788.3 billion yuan compared to the same period last year. Meanwhile, domestic stock financing for non-financial enterprises amounted to 459.6 billion yuan, a decrease of 43.2 billion yuan compared to the same period the previous year. However, a marginal improvement in market financing was observed in June. In that month, net financing for corporate bonds was 222.1 billion yuan, a decrease of 12.5 billion yuan compared to the same period last year. The extent of the reduction was notably reduced. At the same time, domestic stock financing for non-financial enterprises reached 70 billion yuan, showing an increase of 11.1 billion yuan compared to the same period last year. Thank you.

Bloomberg:

I have two questions. What's your outlook on the currency? We've seen stronger than expected yuan fixing since late June. Has China reintroduced the counter-cyclical factor again and is the PBC going to use other tools like cutting the FX RRR to prevent wild swings in the currency? Secondly, will you take more steps to address the ongoing weakness in the property market? If yes, what specific steps? Will this focus on city level policies or broader macro level policies? And just quickly, deputy governor Liu, you just said it's common wisdom that the economy will take one year to recover from the pandemic and we're only half a year in. That seems a lot more pessimistic than how the government was talking about the economy in March at the NPC or since then. Is it the common wisdom of the PBC that recovery will take another six months? Thank you. 

Liu Guoqiang:

Thank you for the questions. Let me answer your last question first. Generally speaking, there is an economic recovery process following a pandemic, but it varies from country to country. From China's perspective, the post-pandemic recovery has been relatively robust, although certain adjustments and adaptation processes are still ongoing. Hence, it is quite typical to observe fluctuations in certain indicators. Nonetheless, the trend is positive. I am highly confident and certain about this. As previously stated, our financial indicators aptly illustrate this situation.

Regarding the exchange rate, the RMB has experienced some fluctuations lately, and there's widespread interest in its changes and future trends. We have repeatedly reiterated that the exchange rate is neutral and cannot be manipulated arbitrarily. Doing so would yield no benefits and could potentially harm both us and others. The long-term trend of the RMB exchange rate hinges on the economy's fundamentals, whereas its short-term trend is unpredictable. Taking a comprehensive view of both the long and short terms, China is a large open economy, and various factors influence the exchange rate, leading it to appreciate or depreciate. However, it will not deviate excessively in either direction. Over the past few years, the RMB exchange rate against the U.S. dollar has broken the "7" threshold three times and subsequently returned to within "7" three times. Recently, the RMB has broken the "7" mark against the U.S. dollar for the fourth time since 2019. Yet, as you can see, it has already begun to rebound considerably in the past few days. China is both a major exporter and importer. The saying "no sweetness at both ends of the sugar cane" illustrates that an excessively high or low exchange rate is not beneficial. China operates a market-based, managed floating exchange rate system guided by market supply and demand and referencing a basket of currencies. This mechanism is effective and should continue to be maintained. In other words, the exchange rate is primarily market-determined, with both market and governmental interventions playing their respective roles, resolutely avoiding excessive exchange rate fluctuations.

Currently, although the RMB exchange rate has depreciated to some extent, it has not deviated from the fundamentals. The PBC has also implemented comprehensive measures to manage expectations. The foreign exchange market is operating stably, and the actions of financial institutions, enterprises, and residents regarding foreign exchange transactions are rational and orderly. Market expectations are generally stable. As the saying goes, the current foreign exchange market has neither "big mothers" nor "whales." From the perspective of the macroeconomic situation, the fundamentals for China's long-term positive economic development have not changed. With smooth economic cycles and breakthroughs in high-quality development, China's overall economic performance will continue to improve. From the perspective of the international balance of payments, China's current account surplus is maintained at a moderate level of around 2%, and cross-border capital flows are essentially balanced. Recently, overseas funds have continued to flow into domestic bonds. From the perspective of reserve holdings, China's foreign exchange reserves are ample, and the balance remains the world's largest, exceeding 3 trillion U.S. dollars. Overall, with these "three balances" as support and with the market-oriented exchange rate formation mechanism, the RMB exchange rate will not experience a "one-way market" but will continue to exhibit two-way fluctuations and dynamic equilibrium.

Ensuring that the RMB exchange rate is kept generally stable at an adaptive, balanced level is the policy goal, and also what we expect to happen. The PBC has gained a lot of experience dealing with external shocks in recent years, and has ample policy tools. As such, we are committed and will not be hands off. We have the confidence as well as the conditions and capability to deal with any shocks and maintain the stability of the foreign exchange market. We will make use of policy tools in a reasonable manner according to circumstances. Policy tools are meant to be used, and we will use them if and when necessary. We must be guided by realities when deciding which policy tool will be adopted.

Going forward, the PBC will follow the deployments made by the CPC Central Committee and the State Council, and remain committed to ensuring that the RMB exchange rate is kept generally stable at an adaptive, balanced level. We will take the management of market expectations as our priority, and adopt a holistic approach to stabilize expectations. We will correct pro-cyclical and one-sided market behaviors when necessary to prevent drastic swings in the exchange rate. 

I'd like to invite Mr. Zou to share more information regarding the question about the real estate market.

Zou Lan:

I spoke about the policy adoption and future plans regarding the real estate market during my answer to an earlier question. Now, I'd like to share some more information about real estate credit in the first half of the year. 

The PBC, following deployments made by the CPC Central Committee and the State Council, has worked with relevant departments and local governments to step up efforts on both the demand and supply sides, in order to stabilize the property market. The property market showed stable development in the first half of the year. Real estate has gradually moved to regular operation since April, as the pent-up housing demand of consumers was unleashed at a faster pace in the first quarter, as well as under the influence of seasonal factors. Credit data from the real estate sector also shows such development of the real estate market. 

Real estate development loans have been mainly issued for housing projects, which are usually issued at the beginning of a project, and repaid when the project is completed. The outstanding loans are correlated to commercial housing projects under construction. Developers used to repay the loans with prepayments coming from sales. With increasingly restrictive non-financial liabilities since last year, demand for development loans has increased remarkably. Commercial banks have therefore increased their issuance of development loans. More than 420 billion yuan of development loans was issued in the first half of the year, an increase of 200 billion yuan year on year. This allows developers to complete their projects at a faster pace, and also ensures the delivery of projects. 

Issuance of loans to individual homebuyers correlates with the sales of commercial housing in the same period, while repayment depends on the income of borrowers or the adjustment of other assets. China issued 3.5 trillion yuan in individual housing loans during the first half of the year, an increase of more than 510 billion yuan compared with the level of the same period of last year. It has offered greater support for housing sales, but statistical data shows that the amount of outstanding loans to individual homebuyers is slightly smaller. This is due to the fact that the relation between yield rates of wealth management and interest rates of housing mortgages has changed, and more residents, therefore, decided to use their deposit or reduce other investments to pay off their mortgages early. However, such circumstances do not affect the demand for housing, instead it is actually a kind of adjustment of residents' allocation of assets. The loan prime rate (LPR) fell by 0.45 percentage point, but the margin of mortgage rate rises is fixed for the duration of a contract, leaving those mortgages rates for existing housing issued over the past few years at high levels. This leads to the remarkable increase in early repayment of loans, which has affected the income of commercial banks. We support and encourage commercial banks to alter contract agreements with borrowers through independent consultation, or replace the existing loans with new ones. All of these should be in line with market rules and laws. 

Thank you. 

Yicai.com:

Given the economic recovery, could you please share some more details regarding the monetary policies that the PBC will adopt in the coming period? Is there any room for further reserve requirement ratio (RRR) reduction and interest cuts? Also, will the PBC adopt new structural monetary policies? Thank you. 

Zou Lan:

Mr. Liu has actually already introduced some general information regarding your questions. I'd like to add some more information in this regard. 

China's economy is still on track for recovery after the adjustment of the pandemic prevention and control measures. The real economy is a dynamic circular system in terms of production, distribution, circulation and consumption, so the recovery of such a system requires some time, just as Mr. Liu has said. But we should be confident and patient for this. Moreover, the internal power of the economy is still a little weak, as the country is currently in an important period of economic recovery, transformation and upgrading, where the role of the old growth drivers, such as real estate and infrastructure, are weakening, while the new growth drivers, including sci-tech innovation, green development and modern industrial systems, are gathering momentum. As such, perception of the economic outlook may vary when it comes to different market entities. 

Since the beginning of the year, a prudent, targeted and effective monetary policy has supported the economic recovery. Just now, Mr. Liu has elaborated on economic aggregation, price levels and structures. In general, during recent years, China has upheld a prudent and normal monetary policy and therefore has ample policy space and rich policy tools to meet new challenges and changes. Going forward, according to economic development and price levels, as well as decisions and plans made by the CPC Central Committee and the State Council, the PBC will enhance macro regulation, and ensure a prudent, targeted and effective monetary policy. By leveraging various monetary policy tools including required reserve ratio, medium-term lending facility and open market operations, the PBC will maintain reasonably ample liquidity of the banking system, maintain appropriate increases of monetary credit, and advance a steady decrease of lending costs for enterprises and individuals. 

Meanwhile, the PBC will continue to give full play to the guiding role of structural monetary policies. The PBC will ensure the implementation of 200-billion-yuan increased relending and rediscount quota for the agriculture sector and small enterprises, continue to prolong instruments to support inclusive loans to micro and small enterprises (MSEs), instruments to lower carbon emission, as well as targeted relending for clean, efficient coal use, so as to strengthen efforts to support major sectors such as MSEs and green development. We will implement an action plan to support financing for technology-based enterprises, and increase efforts to support technological innovation. Loan programs to support the delivery of pre-sold housing projects will be continued. We will further advance targeted lending for real estate enterprises to solve their difficulties, as well as rental housing loan support plans, so as to promote steady and healthy development of the real estate market. For policy tools whose implementation periods have expired, the existing balance will continue to be effective. We will maintain support of the banking industry for relevant sectors, and create new policy tools if necessary, in a bid to provide targeted financial support for key areas and weak links in the stage of high-quality development. Thank you.

Xing Huina:

Due to the limited time, we will have the last two questions. 

21st Century Business Herald:

Recently, a State Council executive meeting deliberated and adopted an action plan to support financing for technology-based enterprises. What are the measures to support financing for technology-based enterprises and what progress has been made so far? Thank you. 

Liu Guoqiang:

I will answer these questions, thank you. Currently, the Chinese economy has entered a new development stage, where technological innovation serves as strategic support for implementing the new development philosophy and fostering a new development pattern. Financial regulatory departments including the PBC have earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, prioritized providing sound financial services for technological innovation, continued to advance construction of markets and mechanisms, enriched financial support tools and methods, and channeled more financing support to technology-based enterprises. China's loans to technology-based enterprises have maintained a high growth rate and the quality and efficacy of loan services have improved significantly. By the end of June 2023, outstanding loans for specialized and sophisticated SMEs that produce new and unique products amounted to 2.72 trillion yuan, up 459.8 billion yuan, representing a growth rate of 20.4% year on year, and maintaining a growth rate of over 20% for 14 consecutive months. The weighted average interest rate of outstanding loans was 4.09%, down 39 basis points year on year. The outstanding loans for technology-based SMEs totaled 2.36 trillion yuan, up 472.7 billion yuan year on year, with a growth rate of 25.1%. The weighted average interest rate of the outstanding loans was 4.5%, down 39 basis points year on year. 

Going forward, the PBC will work with relevant departments to implement the deployment and requirements of the CPC Central Committee and the State Council, further enrich monetary tools, develop the financial market and improve support policies, in a bid to channel more financial resources to technology-based enterprises, and provide targeted, high-quality and effective financial services for such enterprises. The focuses will be in the following areas: 

First, we will increase credit services ability for the technological field. We will guide development and policy banks to focus on their main responsibilities and businesses and increase their efforts to serve the national strategy for technological innovation. We will encourage commercial banks to further increase loan extensions for technology-based enterprises. With a focus on constructing a professional risk evaluation system, we will optimize mechanisms for performance assessment and due diligence exemption, as well as improve organizational structures and product services that meet financing needs of technology-based enterprises.

Second, we will improve the direct financing ability of the multi-level capital market. In the bond market, we will further enrich bond products, enhance market cultivation and expand the issuance of bonds for technology-based enterprises. As for equity financing market, we will leverage the role of government investment funds in supporting the financing of technology-based enterprises, expand sources of funds and exit channels for venture capital and private equity investments, and strengthen middle and long-term capital supply for technology-based enterprises in their early stages. 

Third, we will promote the risk-sharing role of insurance and financing guarantee institutions. Relevant departments will be encouraged to innovate business forms for guaranteeing financing for technology-based enterprises. Pilot policies will be fine-tuned regarding insurance compensation mechanisms for trial application of first major technological equipment and first batch of key new materials. The supply of technological insurance products will be enhanced to share and disperse risks in innovation and entrepreneurship. 

Fourth, we will enhance the external financial support for technological innovation. We will support technology-based enterprises in raising funds through international capital markets under the prerequisite of ensuring safety and compliance. We will build a regular mechanism for responding to the financing needs of technology-based enterprises, and promote sharing of public technological information, and advance the pilot program for the financial reform of technological innovation in a steady and orderly manner. 

Fifth, we will coordinate financial support of technological innovation with preventing financial risks. We will urge financial institutions to strengthen their risk management practices and promote a sound internal risk control mechanism for government investment funds. We will promote the role of the market in regulating financing of technology-based enterprises such as bond credit rating and intellectual property valuation, to avoid hasty investments and accumulated risks. Thank you. 

Xing Huina:

The last question.

Securities Times:

Earlier, a lot of information has been presented regarding the real estate market. I would like to ask the PBC to provide an overview of the financing of the real estate industry in the first half of the year, as well as the current status of real estate credit supply and early repayment of mortgage loans. Thank you. 

Zou Lan:

The relevant information has already been explained quite clearly. Ms. Ruan has introduced the general situation regarding real estate loans. While outstanding loans are often mentioned in statistics, the support for real estate market loans is more evident in loan issuance data. The issuance of property development loans increased by around 200 billion yuan year on year, and personal housing loans have increased by more than 510 billion yuan year on year. As for early repayment of mortgage loans, there has been a substantial increase due to interest rate considerations, which is expected to continue for a quite long time. Although the issuance of loans has maintained a significant growth rate, the early prepayment of loans is also increasing. Judging only from the number of outstanding loans may lead to the misconception that credit issuance is insufficient. However, it is crucial to analyze the data structure when studying the current situation. 

Regarding early prepayment of mortgage loans, as I mentioned, 99% of housing mortgage loans are in line with a floating interest rate mechanism. On the basis of the loan prime rate, a spread is determined based on market conditions at the time of contract signing. The spread is fixed during contract periods, be it a 20- or 30-year contract. We announce the loan prime rate periodically, which are sometimes lower or higher. Since last year, the loan prime rate has declined by 45 basis points. Therefore, according to contracts, interest rates of loans have automatically decreased by 0.45 percentage point. However, the spread is fixed. That is why people may find that interest rates of loans issued in previous years are higher than those of recently issued loans. The early repayment of mortgage loans is not driven by one single factor, but also by other elements such as investment yields. The practice of breaking the rigid redemption of investment products and some cases of trading below net asset value at the end of last year prompted people to adjust their allocation of assets, as they perceived it to be more beneficial. Deposits, and especially fixed-term deposits, have been increasing. Families weigh up their choices, and a lot of people choose to make early mortgage repayment. Though the support in credit issuance has increased further, the impact on outstanding loan balances remains relatively small. Thank you. 

Xing Huina:

That concludes today's press conference. Thank you to all the speakers and friends from the media. 

Translated and edited by Zhu Bochen, Wang Qian, Zhang Rui, Huang Shan, Xu Kailin, Xiang Bin, Wang Yiming, Gong Yingchun, Zhou Jing, Liu Jianing, Li Huiru, 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

Speaker:

Lyu Daliang, spokesperson of the General Administration of Customs of China (GACC) and director general of the Department of Statistics and Analysis of the GACC

Chairperson:

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

Date:

July 13, 2023

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Lyu Daliang, spokesperson of the General Administration of Customs of China (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 half of 2023 and answer your questions.

Now, I'll give the floor to Mr. Lyu for a brief introduction.

Lyu Daliang:

Ladies and gentlemen, friends from the media, good morning. Thank you for attending today's press conference despite the rain. It's a great pleasure to meet you again. I will begin by introducing China's import and export performance in the first half of this year and then answer your questions.

In the first half of this year, in the face of a complex and severe external environment, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China adhered to the general principle of pursuing progress while ensuring stability and pursued high-quality development. The overall economic performance is witnessing a recovery and improvement, and the quality of foreign trade is steadily improving in line with our expectations. According to statistics from the GACC, China's total goods imports and exports expanded 2.1% year on year to 20.1 trillion yuan (about $2.81 trillion). Exports accounted for 11.46 trillion yuan, showing a 3.7% year-on-year growth, while imports totaled 8.64 trillion yuan, indicating a decrease of 0.1% year on year. Specifically, there were five main features which I will now outline.

First, the scale of foreign trade has grown steadily. China's goods imports and exports exceeded 20 trillion yuan in the January-June period for the first time. The goods imports and exports in the first and second quarters reached 9.76 trillion yuan and 10.34 trillion yuan, respectively, with both registering year-on-year growth. Imports and exports recorded in the second quarter were 6% higher than that of the first quarter. Both May and June registered 1.2% month-on-month increases.

Second, the import and export scale of private enterprises continued to expand. In the first half of the year, China's private enterprises recorded imports and exports worth 10.59 trillion yuan, representing 8.9% year-on-year growth. This accounted for 52.7% of the country's total, marking a 3.3 percentage point rise over the previous year. During the same period, foreign-invested enterprises conducted imports and exports worth 6.16 trillion yuan, while state-owned enterprises engaged in imports and exports worth 3.29 trillion yuan, accounting for 30.7% and 16.4% of the country's total, respectively.

Third, the growth rate of imports and exports related to the Belt and Road Initiative (BRI) exceeded that of overall trade. In the first half of this year, the total value of China's imports and exports with the Association of Southeast Asian Nations (ASEAN), the country's largest trading partner, reached 3.08 trillion yuan, marking a 5.4% year-on-year increase and accounting for 15.3% of the total. Imports and exports with the European Union amounted to 2.75 trillion yuan, reflecting a 1.9% increase and accounting for 13.7% of the total. The country's trade in goods with the United States declined 8.4% year on year to 2.25 trillion yuan, accounting for 11.2% of China's total. Meanwhile, during the same period, China's trade in goods with countries along the Belt and Road jumped 9.8% year on year in the first half of the year, 7.7 percentage points higher than the country's overall trade growth and accounting for 34.3% of the total, achieving a year-on-year increase of 2.4 percentage points. Additionally, the value of China's trade in goods with other members of the Regional Comprehensive Economic Partnership (RCEP) rose 1.5% year on year.

Fourth, there has been a notable rise in the proportion of exports in the mechanical and electrical products sector. In the first half of this year, China's exports of mechanical and electrical products reached 6.66 trillion yuan, representing a 6.3% year-on-year increase and accounting for 58.2% of the total export value, a 1.4 percentage point increase compared to the previous year. Among these, the exports of electrical equipment, automobiles and their spare parts, and general mechanical equipment amounted to 636.06 billion yuan, 621.19 billion yuan and 200.44 billion yuan, respectively, marking increases of 27.7%, 58.5% and 12.2%, respectively. Concurrently, the export of labor-intensive products reached 1.97 trillion yuan, indicating an increase of 0.04%. Notably, the exports of clothing and clothing accessories, plastic products, and shoes and boots amounted to 516.94 billion yuan, 343.42 billion yuan and 172.93 billion yuan, respectively, reflecting increases of 0.7%, 3.2% and 0.4%, respectively.

Fifth, there has been rapid growth in the import of bulk commodities and consumer goods. In the first half of this year, China's imports of bulk commodities such as energy, mineral ores and grain witnessed a significant increase of 17.1% year on year. Specifically, imports of energy products, including crude oil, natural gas and coal, reached 561 million metric tons, marking an increase of 33.2%. Additionally, imports of iron, aluminum and other metal ores amounted to 710 million metric tons, reflecting an 8.3% increase. During the same period, imported consumer goods amounted to 974.84 billion yuan, demonstrating a growth rate of 6.6%. Notably, the imports of meat and edible aquatic products experienced increases of 9.5% and 30%, respectively.

Overall, in the first half of the year, China's foreign trade achieved new breakthroughs in terms of scale, while the structure was newly optimized, showcasing strong resilience. At present, the global economy's recovery is sluggish, with global trade and investment experiencing deceleration. Risks such as unilateralism, protectionism and geopolitics are on the rise, and the direct impact of weakened foreign demand on China's foreign trade continues to persist. However, it is crucial to recognize that China's economy has strong resilience and huge potential, and its long-term sound fundamentals remain unchanged. With the ongoing enhancement of China's economic performance, the implementation of pragmatic and effective measures, and the reinforcement of the vigor of foreign trade operators, we believe that we can achieve the goal of steadily improving the scale and quality of foreign trade.

Next, following the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the GACC will comprehensively study, understand and implement the guiding principles of the 20th CPC National Congress and resolutely implement the decisions and plans of the CPC Central Committee and the State Council. Adhering to the general principle of pursuing progress while ensuring stability, we will fully and faithfully apply the new development philosophy on all fronts and effectively carry out themed activities. By speeding up the construction of smart customs, we will strive to contribute to the great cause of building China into a great country. We will also continue to implement all work to steadily improve the scale and structure of foreign trade, make efforts to safeguard borders and advance development, and contribute to fostering a new development pattern, promoting high-quality development, and comprehensively advancing Chinese modernization. 

Next, I would like to answer the questions that concern you. Thank you.

Xie Yingjun:

Now you are welcome to raise questions. Please identify the news organization you represent before asking your questions.

CCTV:

Just now, you gave an introduction to the foreign trade data for the first half of the year. What's your view on the overall performance of China's foreign trade in H1? What were the highlights and positive changes during this period? And what are your expectations for H2? Thank you.

Lyu Daliang:

Thank you for your questions. In the first half of 2023, global economic recovery remained sluggish, the spillover effects of contractionary policies adopted by major developed economies were becoming more evident, and various factors increased instability and uncertainty in the international market. Under the strong leadership of the CPC Central Committee with comrade Xi Jinping at its core, China's economic performance picked up on the whole. We faced up to that pressure and steadily improved the scale and quality of foreign trade. The overall performance met the projected target. In specific, there are positive changes in three aspects:

First, China's foreign trade vitality became stronger. In H1, there were 540,000 foreign trade enterprises in China involved in exports and imports, an increase of 6.9% year on year. Among them, the number of private enterprises rose by 8.3%, most of which were micro, small, and medium-sized enterprises full of vitality. The foreign trade entities showed more business dynamism. During the same period, private enterprises, a main contributor to China's foreign trade, witnessed a growth rate that was 6.8 percentage points higher than the foreign trade in total. Their combined value represented 52.7% of the country's total and drove the overall foreign trade growth by 4.4 percentage points.

Second, China's foreign trade structure improved. In terms of trade methods, general trade, which involves longer industrial chains and higher added value, recorded a higher growth rate than foreign trade in total. The value of general trade accounted for 65.5% of the country's total, up by 1.2 percentage points. All these show that our capability of independent development of trade has been steadily strengthened. In terms of regional distribution, the central and western regions and the three northeastern provinces accelerated the pace of opening up, with their imports and exports in H1 increasing by 2.8% and 4.5%, respectively, 0.7 and 2.4 percentage points higher than the country's overall growth. Their combined value accounted for 21% of the country's total, achieving a more balanced regional development.

Third, new drives for foreign trade were generated. Faced with the pressure on foreign trade, China has made great efforts to explore emerging markets, build platforms for high-standard opening up, and cultivate and expand competitive industries so as to constantly generate new drives for foreign trade. In H1, China's trade with countries along the Belt and Road jumped nearly 10% year on year. The total value accounted for 34.3% of the country's total. During the same period, China's trade with Latin America and Africa rose 7% and 10.5%, respectively, from a year earlier. All these show that Chinese enterprises are diversifying their markets overseas. The imports and exports of pilot free trade zones and the Hainan Free Trade Port grew by 8.6% and 26.4%, respectively, fully leveraging their role as platforms for opening up. The total export value of China's "Three New Flagship products" – electric vehicles, lithium-ion batteries and solar batteries – soared 61.6%. Together they contributed 1.8 percentage points to the overall export growth, showing the great dynamics of China's green industry.

As for foreign trade in the second half of this year, we feel both pressure and confidence. At present, inflation in major developed economies remains high, geopolitical conflicts persist, and short-term external demand recovery is insufficient. We are still facing much pressure to maintain stable growth of foreign trade. But at the same time, we should also see that the fundamentals of the Chinese economy, characterized by strong resilience, enormous potential, and long-term sustainability, remain unchanged. As a series of policies and measures continue to take effect, we have the confidence, the foundation, and the conditions to achieve the goal of stabilizing and improving the quality of imports and exports. Thank you. 

China News Service:

We noticed that the growth rate of foreign trade has dropped significantly in the recent two months, with negative growth in exports. How do you see this change? Thank you. 

Lyu Daliang:

Thank you for your question. We noticed that people have paid attention to the recent changes in the year-on-year growth rate of foreign trade and there are also some voices of concern on the internet. We believe that the development of China's foreign trade remains stable on the whole. Although the year-on-year growth has slowed its pace, the month-on-month growth rate has increased steadily. China's foreign trade has increased in the second quarter compared with the first quarter. Month-on-month growth was also recorded for the last two consecutive months. So there are foundations for the stable development. Meanwhile, the stable development is also reflected in the following aspects:

First, in terms of scale, China's foreign trade has maintained growth, and it has grown significantly. The country's foreign trade has maintained growth in the first half of the year, with its scale hitting a new high of 20.1 trillion yuan (about 2.81 trillion U.S. dollars). It is the first time China's goods imports and exports exceeded 20 trillion yuan in the January-June period, which is a landmark new breakthrough. The breakthrough has been achieved amid a complicated, grim external environment, the slowdown in global trade and investment, and fading driving factors, such as anti-epidemic supplies and stay-at-home economy products. This is really not easy. The total value of China's imports and exports increased by more than 400 billion yuan year on year in the first half of this year, which is equivalent to the total value of over 3 million vehicles exported from the country throughout last year.

Second, in terms of the foundation, China's foreign trade has increased in volume and enjoyed more solid growth. Price and volume are two apparent factors that affect the scale of foreign trade. According to calculations, both China's imports and exports have decreased compared with the same period last year. In the second quarter, the imports and exports have both increased compared with the same period last year, with imports growing 5.9% and exports growing 2%. Imports of energy products and exports of automobiles grew by more than double digits year-on-year. The increase in trade volume has led to the growth of trade scale, which means that the country's foreign trade has a solid foundation and has enjoyed real growth. 

Third, the advantage of China's foreign trade has consolidated, and its proportion has increased from a global perspective. The WTO forecast that the volume of global goods trade will grow by 1.7% this year, much lower than the average of 2.6% over the past 12 years. A slowdown in the growth of world trade is a common challenge for all economies, and the difficulties are more global. Compared with those neighboring economies who have released their statistics, China's foreign trade has demonstrated its strong resilience, and its competitive edge has stabilized and strengthened. According to our calculations based on the latest WTO statistics, in the first four months, the proportion of China's exports in the international market has increased slightly, which means that the country's foreign trade has shown stronger competitiveness. 

As I just mentioned, China's foreign trade is facing pressure, fluctuations, and challenges. However, as a Chinese saying goes, "The journey ahead may be long and arduous, but we will eventually reach our destination if we keep going." The fundamentals underpinning China's long-term economic growth remain robust. China has a good industrial system and complete production capacity. The country's foreign trade has great resilience and vast room for maneuver. Meanwhile, China remains committed to opening up to the outside world and actively promotes international economic and trade cooperation. It has rolled out a series of policies and measures to stabilize foreign trade, and a combining effect has continued to emerge. So there is still a solid foundation for stabilizing the scale and improving the structure of foreign trade. We are confident that we will continue to consolidate our market share throughout 2023 to maintain our position as the world's largest trader of goods. Thank you. 

Nanfang Daily:

The GACC launched 16 initiatives to optimize the country's business environment on June 12, which have been implemented for one month. Could you brief us on the effect of these initiatives? What measures will the GACC take to stabilize the scale and improve the structure of foreign trade amid weakening external demands? Thank you. 

Lyu Daliang:

Thank you for your questions. Since the beginning of this year, the GACC has implemented the decisions and arrangements of the CPC Central Committee and the State Council for stabilizing the scale and improving the structure of foreign trade, and continued to ensure the implementation of those measures to stabilize foreign trade launched last year. Last month, we launched the 16 initiatives to optimize the country's business environment. All these efforts are aimed at further stabilizing social expectations and boosting foreign trade. 

Stabilizing business entities of foreign trade is the foundation for steady increases in both the volume and quality of imports and exports. Measures aimed at providing more convenience, enhancing vitality, improving services, and reducing costs have been included in the 16 initiatives to address those issues foreign trade enterprises are most concerned about, to help them reduce costs, stabilize orders, and expand market shares. We held a press conference on the 13th of last month to interpret the 16 initiatives in detail so that enterprises could understand and know them as early as possible.

In the past month, we have fully implemented policies and measures to ensure they benefit enterprises at a faster pace. Customs offices nationwide have introduced detailed support measures, tailored to local conditions, ensuring that 16 initiatives are effectively implemented at the grassroots level. For example, based on current information, Qingdao Customs introduced 30 specific support measures and initiated six targeted campaigns to enhance industrial upgrading, improve business environment evaluations, and assist in mitigating enterprises' difficulties while stabilizing market operations. Guangzhou Customs rolled out 20 detailed measures in five areas: enhancing the smooth operation of cross-border logistics, expanding goods imports and exports, facilitating cross-border trade, reducing companies' burdens while improving efficiency, and promoting innovative development of foreign trade. Nanjing Customs rolled out and implemented 26 detailed measures and introduced a package of supporting policy measures, such as "resolving enterprise problems," "automatic delivery of preferential policies," "support measures for technology trade," "customized benefits of free trade agreements," "one-on-one Authorized Economic Operator (AEO) guidance," and "IP protection by customs." Furthermore, customs officials at all levels were invited to the front lines to promote policies, listen to enterprise feedback, and help address their issues, thereby more effectively gathering feedback and implementing policies and measures.

A series of policy measures continue to take effect, benefiting more businesses. For example, electronic payment services for cross-border e-commerce taxes have been piloted by Huangpu Customs, Chengdu Customs, and Chongqing Customs, among others, to simplify tax payments for businesses involved in cross-border e-commerce transactions. The method for inspecting high-tech goods in vacuum packaging has been adopted nationwide. According to businesses in the Beijing Economic and Technological Development Area, customs officials conduct door-to-door inspections of imported high-tech equipment in vacuum packaging, and goods can be delivered to the factory and inspected within six hours of port arrival. Nanchang Customs actively piloted the "departure confirmation" facilitation measure. Each shipment can save at least one to two days of transit time, saving an average of about 100 yuan in logistics costs per container, according to relevant companies. Shantou Customs took the initiative in collaborating with a petrochemical company's key projects and implemented measures of import equipment such as "declaration in advance" and "inspection upon arrival." The time between inspection and release of goods by customs was shortened from days to hours.

In general, relevant policies continue to take effect, and enterprises are gaining more tangible benefits. Moving forward, we will fully leverage the advantage of customs to address enterprise concerns and continue to implement the 16 initiatives and other policies and measures to stabilize foreign trade. We will work to enhance our support measures and monitor the implementation of such measures. Furthermore, in line with the development of China's foreign trade and the practical needs of enterprises, we will further expand our policy toolkit and strive for a stable volume and improved structure of foreign trade. Thank you.

CNBC:

I have two questions. How did cross-border e-commerce imports and exports perform in the second quarter of 2023 and this June? Also, with the upgrading of China's manufacturing industry, what influence does it have on China's imports and exports to Southeast Asia? Thank you.

Lyu Daliang:

Thank you for your questions. I will first answer your question about cross-border e-commerce. In mid-June, we detailed the growth of China's cross-border e-commerce in last year at the 2023 China Langfang International Economic and Trade Fair and released relevant data. Preliminary customs statistics show that in the first half of 2023, China's cross-border e-commerce continued to showcase its strength and potential in “buying globally and selling globally.” The import and export value of cross-border e-commerce grew by 16% year on year to 1.1 trillion yuan. Exports rose by 19.9% to 821 billion yuan, and imports increased by 5.7% to 276 billion yuan, reflecting steady growth, improved structure, and enhanced competitiveness.

On this occasion, I'd like to clarify that the data sources and compilation methods for cross-border e-commerce statistics differ significantly from those used for traditional foreign trade. Currently, there is no international statistical rules on cross-border e-commerce. China is one of the first countries to develop such statistics. We have improved our statistical system and methods through multiple pilot surveys. According to the latest statistical survey system for cross-border e-commerce, we publish our statistics on a semi-annual and annual basis.

In response to your second question, the ASEAN is China's largest trading partner. In the first half of 2023, China's imports and exports to ASEAN increased by 5.4% year on year to reach 3.08 trillion yuan. This represents 15.3% of the country's total imports and exports during the same period, an increase of half a percentage point compared to the same period last year. The highlights are in three areas as follows:

First, bilateral cooperation has become closer. Since the beginning of this year, China has expanded its economic and trade cooperation with ASEAN. The second and third rounds of negotiations for version 3.0 of the China-ASEAN Free Trade Area were held in Thailand and China in April and June, respectively. The RCEP entered into force for the Philippines on June 2, 2023, marking the pact's implementation by all 15 members, and providing a significant boost to regional economic integration. In the first half of 2023, the proportion of China's imports and exports with ASEAN in its total imports and exports with other RCEP members increased to 50.5%.

Second, the role of cross-border channels has become more pronounced. According to the China State Railway Group Co., Ltd., in the first half of the year, the rail-sea intermodal trains along the New International Land-Sea Trade Corridor in western China transported a total of 424,000 TEUs of goods, a rise of 10.5%. During the same period, customs supervised and inspected a total of 2.146 million metric tons of imported and exported goods on the China-Laos Railway, up by 194.4% on a yearly basis. These two cross-border channels have continued to expand China's trade reach with ASEAN, driving rapid growth of imports and exports to ASEAN in regions along the new routes. In the first half of the year, imports and exports of regions along the routes to ASEAN reached 438.65 billion yuan, an increase of 21.4%.

Third, the scale of China's imports of agricultural products from ASEAN continues to expand. Agricultural cooperation is a key area of China-ASEAN economic and trade relations, and an increasing number of agricultural products from ASEAN countries have entered the Chinese market. In the first half of the year, China imported 125.08 billion yuan of agricultural products from ASEAN, a rise of 7.5%, which was 6.4 percentage points higher than the overall growth rate of China's imports from ASEAN. The import performance of some specific agricultural products was impressive; for example, fruit imports amounted to 40.54 billion yuan, a 24.1% increase, with fresh durian and pineapple imports rising by 65% and 24.1%, respectively. Palm oil imports reached 10.91 billion yuan, a surge of 120.5%.

As each other's largest trading partners, China and ASEAN share a solid foundation for cooperation and substantial development potential. With regional economic integration deepening, cooperation areas continuing to expand, and trade exchanges becoming closer in the future, bilateral trade is expected to continue maintaining a favorable trend. Thank you.

Phoenix TV:

We've noticed that while the global economy is relatively sluggish, the import and export data released by the GACC shows a significant difference in trend compared to various related domestic and foreign economic indicators. For instance, domestic export delivery value or foreign exchange receipts and payments, along with some foreign trade data, all exhibit substantial trend differences. I would like to ask how customs views this issue. Thank you.

Lyu Daliang:

Thank you for your question. Customs statistics are the official statistics of China's import and export goods trade. For a long time, we have strictly implemented the Customs Law, Statistics Law, Regulations on Customs Statistics, regulations on the administration of statistical work in customs, and other associated laws, regulations, and administrative rules. We also adhere to international trade statistics standards. Based on administrative records of customs declarations, we truthfully, objectively, and completely record China's foreign trade import and export activities. In other words, with the backing of the law, rules, standard statistical methods, and administrative records, these two aspects collectively provide customs statistics with full legal assurance and a robust, reliable methodological foundation.

We have also noticed some perspectives on the issue of discrepancies between different economic indicators. Various economic indicators document the process and status of China's economic development from diverse perspectives. The connotations of indicators, statistical calibers, and collection methods vary, leading to both similarities and differences.

Take the export delivery value and export value you just mentioned as examples. Even though both indicators use the term "export," they indeed differ in several ways. First, they have different statistical objects. The former primarily records the value of products that industrial enterprises above designated size self-export, entrust agencies for export, or export through foreign trade departments, while the latter captures the actual value of goods exported by all enterprises. Second, the timing of these statistics is different. The former is based on the actual sales time of industrial enterprises above designated size, while the latter is based on the date of customs clearance. In addition to some other differences, over a longer period, these two types of values generally trend together, but deviations in individual months throughout history are not uncommon.

Statistics on trade in goods in the balance of payments and statistics on customs trade in goods are indeed both important macroeconomic indicators reflecting foreign trade in goods. However, these two types of indicators do differ. First, they follow different statistical standards. The former adopts the statistical standards of the International Monetary Fund, while the latter uses U.N. standards for trade in goods. Second, they have different scopes. The former determines the scope of statistics based on whether ownership of goods has been transferred between residents and non-residents, while the latter determines the scope based on whether goods cross borders. Of course, there are some other differences. For example, take the mobile phone we use. If it's a phone sold domestically after processing with supplied materials, the former would count the total value of the domestically sold phone, while the latter would measure the value of the imported materials.

Regarding the statistical difference between China's imports and exports and its trading partners, the international trade statistics, which can theoretically verify the figures of each, are actually more complicated. Therefore, China has conducted international cooperation on trade statistics with relevant countries and regions and compared the data. This has been an important aspect of our work. In practice, most countries and regions in the world have adopted the statistical standards recommended by the United Nations, with imports calculated based on the countries (regions) of origin and exports on the countries (regions) of destination. In the case of third-party re-exports, the statistical discrepancy between the trading partner countries will lead to relatively big data differences, which is the prime reason for the disparity in bilateral trade statistics. At the same time, the difference between the price statistics also plays a role. For example, exports are calculated at FOB, and imports at CIF. In addition, exchange rate fluctuations, different statistical time, and other objective factors can also lead to statistical differences. 

It is the statutory duty of the customs authorities to compile and publish the statistics on the import and export of goods. We are continuously improving the legal base, standards, and IT application of the statistical systems and methods of the customs authorities, constantly consolidating the cornerstone of the statistical work, and ensures that the data is comprehensive, reliable, and internationally comparable so as to provide better information services for data users. Thank you. 

The Poster News APP:

China's circle of friends has constantly expanded over the recent years, and the markets have been further diversified. Could you please brief us on this respect? What have the customs authorities done in this regard? Thank you. 

Lyu Daliang:

Thank you for your question. Promoting the diversity of the trading market is an inherent requirement and a distinctive feature of China's stable trade development. Over the recent years, Chinese foreign trade enterprises have taken the initiative, responded to the changes in the international market, upheld the pioneering spirit, and broke new grounds. While stabilizing the economic and trade exchanges with developed economies, these enterprises have also expanded markets in developing countries and regions like ASEAN, making positive progress in diversifying the trading market. Just as you said that China's circle of friends is expanding, the circle of friends of China's foreign trade is also continuously expanding. 

Here are some examples. As the economic and trade cooperation between China and ASEAN goes deeper, ASEAN has remained China's largest trading partner for three consecutive years since 2020. China's trade with Latin America exceeded three trillion yuan in 2022, registering positive growth for six years in a row. Recently, the five Central Asian countries have become a new growth driver of China's foreign trade, with the growth rate of China's trade with the five countries 38 percentage points higher than the overall growth rate in the same period. Not long ago, the China-Africa Trade Index was released at the third China-Africa Economic and Trade Expo. The index climbed to 990.55 points in 2022 from a benchmark of 100 points in 2000, which has comprehensively reflected the fast development of China-Africa trade. 

Since the beginning of this year, the in-person foreign exchanges at various levels in China have been fully restored, and a number of major diplomatic events have been hosted. This has fostered a more favorable environment for developing multilateral economic and trade relations, expanding all-round economic and trade cooperation, and promoting the diversity of the trading market. In the first half of this year, China's trade with ASEAN, Latin America, Africa, and the five Central Asian countries increased by 5.4%, 7%, 10.5%, and 35.6%, respectively, year on year, all higher than the overall growth rate in the same period. 

While advancing trade diversity, the customs authorities have actively performed their responsibilities and duties and fully served national diplomacy, securing a series of positive outcomes. For example, we have actively participated in the China-Central Asia Summit and contributed to securing seven outcomes during the summit. We have helped establish a mechanism for meetings among the heads of customs of China and Central Asian countries. Ten bilateral documents were signed in the presence of President Xi Jinping and the heads of state of the five Central Asian countries, meaning that we signed bilateral documents with all attending countries during the diplomatic event at home. Under the framework of the third China-Africa Economic and Trade Expo, we hosted the China-Africa Sanitary and Phytosanitary (SPS) Cooperation Forum, where a joint statement on the SPS cooperation was issued, an information website on the SPS cooperation was launched, and agricultural and food product market access agreements were signed with representatives from Zimbabwe and Madagascar. After China and Honduras established diplomatic relations in March, China's customs authorities have actively responded to Honduras' demands for exporting agricultural products to China. In the presence of President Xi Jinping and Honduran President Iris Xiomara Castro Sarmiento, the two sides, based on a scientific assessment of risks, signed protocol documents for exporting Honduran aquaculture products, unprocessed coffee beans, fresh bananas, and other products to China. The two sides also signed two memorandums on import and export inspection and quarantine.

Going forward, Chinese customs will continue to strengthen communication and coordination with customs inspection and quarantine departments of all countries. We will deepen cooperation in areas such as further enhancing trade facilitation and optimizing the business environment at ports, and continuously smooth international supply chains. This will help China expand diversified international markets and develop pluralistic and stable international economic and trade relations. Thank you.

N Video from Nanfang Metropolis Daily:

May I ask about the trade between China and countries along the Belt and Road in the first half of this year? How do you view the prospects of China's future trade with the Belt and Road countries? What work has the Chinese customs done recently to promote trade cooperation along the Belt and Road? Thank you.

Lyu Daliang:

Thank you for your questions. In the second half of this year, the third Belt and Road Forum for International Cooperation will be held, and there is great interest in topics related to the BRI. Over the past decade since the initiative was proposed, China's imports and exports with countries along the Belt and Road have increased from 6.46 trillion yuan in 2013 to 13.76 trillion yuan in 2022, a cumulative growth of 1.1 times. This year, we have continued to experience rapid growth, with China's imports and exports with Belt and Road countries reaching 6.89 trillion yuan in the first half of the year, a year-on-year increase of 9.8%, surpassing the overall growth rate of the country's foreign trade by 7.7 percentage points. The main characteristics are as follows:

First, industrial cooperation is closer. In the first half of the year, China's exports of intermediate products to Belt and Road countries increased, such as by 39.3% for automotive components, 34.3% for lithium batteries, and 28.9% for automatic data processing equipment accessories. During the same period, imports of energy products and agricultural products from Belt and Road countries also increased by 5.7% and 17.9%, respectively.

Second, the impact of connectivity is significant. In recent years, efforts have been made to enhance connectivity through initiatives such as the China-Europe Railway Express, new land-sea transit routes for the western region, and the China-Laos railway. The level of connectivity between China and Belt and Road countries has improved significantly. In the first half of the year, China's imports and exports with Belt and Road countries via railway transportation increased by 23.8%, surpassing the overall growth rate of imports and exports with Belt and Road countries by 14 percentage points. This double-digit growth has been sustained for 12 consecutive months. Imports and exports with Belt and Road countries via road transportation increased by 63.6%, outperforming the overall growth rate by 53.8 percentage points. The growth rate has exceeded 30% for five consecutive months.

Third, the performance of the central and western regions is even more impressive. In the first half of the year, the import and export growth between the central and western regions and countries along the Belt and Road increased by 23.2%, accounting for 21.2% of the total import and export value between China and countries along the Belt and Road during the same period. This marks a 2.3 percentage points increase compared to the previous year. Among them, the three autonomous regions of Guangxi, Xinjiang, and Inner Mongolia have all experienced import and export growth rates exceeding 50% with countries along the Belt and Road.

The Chinese customs have thoroughly studied and implemented the principles outlined in the important speeches of General Secretary Xi Jinping, with a key focus on providing services for high-quality Belt and Road cooperation and vigorously promoting its implementation. This year, the following work has been actively carried out: The first aspect is the active promotion of the import of high-quality agricultural food products. In the first half of the year, 44 customs inspection and quarantine cooperation documents were signed with countries involved in the BRI, including 30 agreements on access to agricultural food products. The second aspect is the continued enhancement of trade facilitation cooperation. A memoranda of understanding on single-window document processing for international trade cooperation was signed with Iranian customs, while arrangements for Authorized Economic Operator (AEO) mutual recognition were signed with the Philippines, Costa Rica, and Uzbekistan. The third aspect is strengthening the hardware and software capabilities of ports, optimizing the information sharing and exchange platform for customs along the Belt and Road, and ensuring the stable operation of the Customs-Train Operators Partnership for Secure and Expedited Clearance of CR Express Carried Goods (C-TOP) between China and Kazakhstan. The fourth aspect is active participation in the preparations for the third Belt and Road Forum for International Cooperation and the thematic forum on trade connectivity.

Next, the customs will continue to upgrade and develop multilateral and bilateral cooperation mechanisms with countries involved in the BRI. We will vigorously promote cooperation in areas such as trade security and facilitation, inspection and quarantine. The Chinese customs will make new contributions to broadening the Belt and Road as a "path of happiness" benefiting the whole world. Thank you.

ThePaper.cn:

At the first meeting of the Central Commission for Comprehensively Deepening Reform this year, it was pointed out that supporting the development of the private economy is a consistent policy of the CPC Central Committee. Since the beginning of this year, the private economy has continued to serve as the main force in China's foreign trade. Could you please tell us about the major highlights of the private economy's imports and exports in the first half of the year? Thank you.

Lyu Daliang:

Thank you for your question. The private economy has always played an essential role in promoting China's economic development and social stability. It is characterized by the features represented by the term "Five-Six-Seven-Eight-Nine," which signifies its contributions of over 50% of tax revenue, over 60% of GDP, over 70% of technological innovation achievements, over 80% of urban employment opportunities, and over 90% of the total number of enterprises. Now, in terms of foreign trade, we can add another "Five" to this list. By 2022, the proportion of imports and exports contributed by private enterprises exceeded 50% of China's total. In the first half of this year, the share of imports and exports by private enterprises further increased to 52.7%, maintaining their position as the main force in foreign trade. Specifically, it demonstrates the following characteristics:

First, the number of enterprises and the scale of trade have shown steady growth, playing a significant role in stabilizing the overall situation. In the first half of the year, the number of private enterprises with import and export performance increased by 8.3% compared to the previous year, reaching 459,000, accounting for 85.1% of enterprises with import and export performance during the same period. Private enterprises have become a stabilizer for foreign trade, with their imports and exports totaling 10.59 trillion yuan in the first half of the year, an increase of 8.9%, driving China's foreign trade growth by 4.4 percentage points. Among the 31 provinces, autonomous regions and municipalities, 25 of them witnessed growth in the import and export value of private enterprises.

Second, efforts in innovative development have significantly paid off, and high-quality exports have made outstanding contributions. In the first half of the year, private companies exported 1.24 trillion yuan's worth of high-tech products, representing a 5.4% increase. Their share in China's total exports of high-tech products increased by 5.7 percentage points, reaching 44.7%. During the same period, private companies were the primary driving force behind the export growth of China's electric manned vehicles, lithium-ion batteries, and solar cells, with a total export value of 346.3 billion yuan, an increase of 64.6%. They contributed as much as 66.8% of China's total exports of these products. Additionally, the export value of private companies' proprietary brands reached 1.6 trillion yuan, an increase of 11.6%. Their share in China's total proprietary brands increased by 0.4 percentage points to reach 22.6%.

Third, the imports of essential livelihood products and resource products have grown rapidly, and efforts to ensure supply and stabilize prices have yielded substantial rewards. In the first half of the year, the import value of agricultural products by private companies increased by 21.9%, which was 5.7 percentage points higher than the growth rate of China's total imports of agricultural products; among them, the import value of grain and meat increased by 24.2% and 13.1%, respectively. During the same period, their import value of medicinal herbs and drugs increased by 24.8%, 4.2 percentage points higher than the growth rate of China's total imports of these products. Furthermore, their imports of metal ore and coal increased by 33.9% and 148.8%, respectively, 25.6 and 55.8 percentage points higher than the growth rate of China's total imports of the respective products.

So to speak, private companies have made great contributions to China's foreign trade in terms of scale, structure, and quality. Moving forward, the customs authority will thoroughly implement the guiding principles of the 20th CPC National Congress and General Secretary Xi Jinping's important remarks on the development of the private economy and work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector. We will also implement the 16 measures to optimize the business environment to ensure their intended outcomes, offer targeted services to benefit companies and alleviate their difficulties, thereby stimulating the development potential of various business entities, including private companies. Thank you.

Xie Yingjun:

Due to time constraints, there will be one last question.

Red Star News:

My question is: Could you brief us on China's imports and exports to other RCEP members in the first half of this year, and what is your outlook for China's trade with other RCEP members in the future? What has the customs authority done recently to promote the implementation of RCEP? Thank you.

Lyu Daliang:

Thank you for your questions. The full entry into force of the RCEP marks a significant milestone in the process of regional economic integration in the Asia-Pacific. In the first half of the year, China's imports and exports to the other 14 RCEP members totaled 6.1 trillion yuan, an increase of 1.5% year on year and contributing more than 20% to China's foreign trade growth. China's trade with most RCEP members registered an increase, among which trade with Singapore, Laos, Australia, and Myanmar increased by 27%, 25.8%, 16.4%, and 15.2%, respectively. RCEP brings continuous tangible benefits to Chinese companies, which can be observed in two main aspects:

On one hand, regional industrial chain cooperation has become closer. The gradual release of the market potential within RCEP will effectively facilitate the free flow of production factors in the region, contribute step by step to a more prosperous market featuring regional integration, and create new space for companies to expand their international industrial cooperation and enhance economic and trade exchanges. In the first half of the year, China's exports of intermediate products to other RCEP members amounted to 1.72 trillion yuan, accounting for 54.4%, or more than half, of China's total exports to RCEP members. Among them, the exports of auto parts and electrical equipment increased by 17.6% and 22.4%, respectively. During the same period, China imported 376 million metric tons of iron ore and 178 million metric tons of energy products from other RCEP members, marking a 4.7% and 70.4% increase, respectively.

On the other hand, tariff preferences have brought continuous benefits. The RCEP, combinable with existing bilateral free trade agreements already in force between China and other members, allows companies to enjoy more favorable tariff preferences and effectively reduce costs. In the first half of this year, Chinese companies enjoyed 1.07 billion yuan of tax concessions for 40.36 billion yuan of preferential imports within the RCEP framework, mainly covering plastics and plastic products, as well as machinery and parts; Chinese companies also enjoyed 1.91 billion yuan of tax concessions for 126.95 billion yuan of preferential exports within RCEP, mainly covering clothing and clothing accessories, inorganic chemicals, and plastics and plastic products. Across the country, 590 approved exporters independently issued 4,844 RCEP declarations of origin, amounting to a value of 4.34 billion yuan.

The full entry into force of the RCEP will further promote opening up and cooperation among its member states in a wider scope, at a higher level, and in a more in-depth manner, and provide a strong boost to China's high-level opening up. The customs authority will resolutely implement the plans of the CPC Central Committee and the State Council for the implementation of RCEP to ensure that RCEP plays its role in stabilizing foreign trade and foreign investment, promoting cooperation in the industrial chain and supply chain, and facilitating high-quality development. We will focus our efforts on the following areas: First, we will prioritize customs inspection and quarantine rules related to RCEP, improve relevant rules and regulations, upgrade the information technology-driven customs operating system, standardize and streamline customs procedures, and continuously optimize the customs clearance process to improve efficiency and reduce the cost of customs clearance for companies. Second, during international exchanges and cooperation with other RCEP members, we will pay close attention to their customs clearance procedures, inspection and quarantine rules, trade facilitation measures, and measures to implement their tariff preference commitments. By staying updated on the latest developments among RCEP members, we will be able to learn about and coordinate solutions to difficulties and problems encountered by Chinese companies both domestically and abroad. Third, we will intensify efforts to publicize RCEP policies and regulations, establish a targeted service system for technical trade measures within the RCEP framework, guide companies to fully understand and benefit from RCEP policies, and assist them in further exploring the RCEP market. Thank you.

Xie Yingjun:

Thanks for the introduction by Mr. Lyu and the participation of our media friends. Today's briefing is now concluded. Goodbye!

Translated and edited by Wang Yiming, Wang Qian, Ma Yujia, Li Xiao, Yang Xi, Liu Qiang, Cui Can, Wang Yanfang, Liu Caiyi, Zhou Jing, Xu Xiaoxuan, Zhang Rui, Zhang Jiaqi, Li Huiru, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.